Basics of Management MANAGEMENT
• planning, organising, leading and controlling of human and other resources to achieve organisational goals effectively and efficiently (Fayol)
• Sir Richard Branson, manager of the multinational Virgin Group, which includes the airline Virgin Australia
MANAGER
• person responsible for supervising the use of an organisation’s resources to meet its goals
THE FOUR PRINCIPAL MANAGERIAL FUNCTIONS
1. PLANNING
• process of identifying and selecting appropriate goals and courses of actions
i. decide which goals to pursue ii. decide what courses of action
to adopt
iii. decide how to allocate resources
2. ORGANISING
• process of establishing a structure of working relationships in a way that allows organisational members to work together to achieve organisational goals
3. LEADING
• articulating a clear vision to follow
• energising and enabling organisational members so they understand the part they play in attaining organisational goals
• involves using power, influence, vision, persuasion and communication skills
• results in highly motivated and committed organisational members
4. CONTROLLING
• evaluating how well an organisation is achieving its goals
• taking action to maintain/improve performance
• results in the ability to measure performance accurately and regulate efficiency and effectiveness
• in 2011, industrial action was taken by three unions representing various employees of Qantas, regarding pay and conditions
• the manager of Qantas Alan Joyce announced that all domestic
employees involved would be locked out and the fleet grounded
• this costed Qantas $70 million in damages
• this can be viewed as poor use of the four functions
ORGANISATIONAL PERFORMANCE
• measure of how efficiently and effectively managers use
organisational resources to satisfy customers and achieve goals
EFFICIENCY
• measure of how well or productively resources are used to achieve a goal
• an efficient organisation makes the most productive use of its resources
EFFECTIVENESS
• measure of the appropriateness of the goals an organisation is pursuing
• the degree to which they are achieved
• an effective organisation pursues appropriate goals and achieves them by using its resources to create goods/services the customer wants
TYPES OF MANAGERS
first line managers
• responsible for day to day operations
• supervise people performing activities required to make goods/services middle managers
• supervise first like managers
• find the best way to use departmental resources to achieve goals
top managers
• responsible for the performance of all departments
• cross-departmental responsibility
• establish organisational goals
• monitor middle managers
CHALLENGES POSED BY THE EXTERNAL ENVIRONMENT
• emergence and growth of global organisations that provide the same goods at a fraction of the cost (China)
• building and maintaining a competitive advantage
• behaving ethically towards people within and outside of the organisation
• staying up to date on technological advancements
• managing a diverse workforce
MINTZBERG TEN MANAGERIAL ROLES
Informational assumed by managers to provide direction and supervision to both
employees and the organisation
• monitor: seek and receive information, maintain interpersonal contacts, scan reports
• disseminator: forward information to others, make calls
• spokesperson: represent the unit to outsiders (Alan Joyce representing Qantas to the media)
Interpersonal assumed by managers to provide direction and supervision to both
employees and the organisation
• figurehead: perform ceremonial & symbolic duties, receive visitors
• leader: direct
and motivate subordinates, train, advise
• liaison: maintain
information links in and beyond the organisation
Decisional associated with methods
managers use in planning strategy and
utilising resources
• entrepreneur: initiate new projects, spot
opportunities, identify areas of development
• disturbance handler: take corrective action during crises, resolve staff
conflicts, adapt to external changes
• resource allocator:
allocates resources, schedule, budget
• negotiator: defends interests represents department to
unions/suppliers (Alan Joyce with the unions)
