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Management an Introduction
Chapter 1 – Managing in Organisations
Introduction
People draw resources from the external environment, manage their transformation into outputs that they hope are of greater value. They pass these back to the environment and hope to get value in return (money, reputation) to attract new resources to continue in business.
Managing to add value to resources
An organisation is a social arrangement for achieving controlled performance towards goals that create value. Managers build organisations with resources and competences to satisfy the people’s needs. Tangible resources are the physical assets of an organisation such as plant, people and finance. Intangible resources are non-physical assets such as information, reputation and knowledge. To transform resources into valuable goods people work together to develop effective ways of working. These competences are the skills and abilities which an organisation uses to deploy resources effectively – systems, procedures. Value is added to resources when they are transformed into goods or services that are worth more than their cost
Meanings of management
Management is a universal human activity that occurs whenever people take responsibility for an activity and consciously try to shape its progress and outcome. A manager is someone who gets things done with the aid of people and other resources. Management is the activity getting things done with the aid of people and other resources. Management as a distinct role emerges when external parties gain control of a work process that people used to complete themselves. A role is the expectation that others have of someone occupying a position. Therefore it expresses the specific responsibilities and requirements of a job.
Specialisation between areas of management
Functional specialisation
- General managers are responsible for the performance of a distinct unit of the organisation
- Functional managers are responsible for the performance of an area of technical or professional work
- Line managers are responsible for the performance of activities that directly meet customers’ needs
- Staff managers are responsible for the performance of activities that support line managers
- Project managers are responsible for managing a project, usually intended to change some element of an organisation or its context
- Entrepreneurs are people who see opportunities in a market, and quickly mobilise the resources to deliver the product or service profitably
Management hierarchies
Influencing through the tasks of managing
Organisations depend on people in the external environment being willing to value their outputs. Planning includes forecasting future trends, assessing resources, and developing performance objectives. Organising moves abstract plans closer to reality by deciding how to allocate time and effort. Leading is the task of generating effort and commitment – influencing, motivation and communication – with individuals or in teams. It is directed at the tasks of planning, organising, and controlling. Controlling is the task of monitoring progress, comparing it with plan, and taking corrective action.
Influencing through shaping the context
Managers aim to create context that will support their objectives Internal context represents the immediate context of the manager’s work. Historical context – history influences as the source of the structure and culture within which they work, affecting how people respond to proposals. External context includes the immediate competitive (micro) environment and a general (macro) environment. These affect performance and managers’ work is to identify, and adapt to external changes.
Managers and their context
Managers use one of three theories between context and their action Determinism is the assumption that factors in the external context determine an organisation’s performance. Managers adapt to external changes and have little independent influence on the direction of the business Choice is the assumption that people influence and shape their context. Interaction expresses the idea that people are influenced by, and themselves influence their context.
Thinking critically
Critical thinking
…enables people to see more possibilities. It identifies the assumptions behind ideas, relates them to their context, imagines alternatives and recognises limitations. ‘Treating everything and everyone with suspicion and doubt’
- Identifying and challenging assumptions – looking for assumptions that underlie ideas, beliefs and values, and questioning their accuracy
- Recognising the importance of context – looking for ideas and methods that seem suitable for the context
- Imagining and exploring alternatives – raising awareness of realistic alternatives, and so increases the range of ideas which they can adapt and use.
- Seeing limitations – alerts people to the limitations of knowledge and proposals. Being open to new ideas, but only when supported by convincing evidence and reasoning.
Integrating themes
Sustainability refers to economic activities that meet the needs of the present population while preserving the environment for the needs of future generations. Internationalisation – how to lead in an international environment, and the implications of an increasingly dispersed business for planning, organising and controlling the organisation. Corporate governance is concerned with ensuring that internal controls adequately balance the needs of those with a financial interest in the organisation, and that these are balanced with the interest of other stakeholders.
