1 The Concept of Management Jan06 The Concept

1 ﻓﺼﻞ ﻣﺪیﺮیﺖ چیﺴﺖ؟ The Concept of Management Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 1

General Framework: POLC: planning, organizing, leading, and controlling l Three underlying themes carried through all this course: l – Strategic thinking, – Entrepreneurial thinking, – active management. l The triple bottom line (For performance Appraisal): – financial, – social, – environmental The Concept of Strategy Jan-06 Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 2

What is Management l Management (or managing) is the administration of an organization, whether it is: – a business, – a not-for-profit organization, – A government body. l Management includes the activities of: – setting the strategy of an organization – coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. l From an individual's perspective: – management does not need to be seen solely from an enterprise point of view – management is an essential function to improve one's life and relationships – Management is therefore everywhere and has a wider range of application. Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 3

What is Management is what managers do! l In profitable organizations, l – management's primary function is the satisfaction of a range of stakeholders. • • • l making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), providing great employment opportunities for employees. In nonprofit management – + the importance of keeping the faith of donors. l In most models of management and governance, – shareholders vote for the board of directors, – the board then hires senior management. – other methods: (such as employee-voting models) of selecting or reviewing managers, but this is rare Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 4

Definition l James A. F. Stoner (1989): – “Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals” l Mary Follet (1868 -1933): – “The art of getting things done through efforts of other people” l Fayol 1841 -1925: – The principles of management are the activities that “plan, organize, and control the operations of the basic elements of [people], materials, machines, methods, money and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise. ”. l Managers are required in all the activities of organizations: – budgeting, designing, selling, creating, financing, accounting, and artistic presentation Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 5

Functions l Management involves: – identifying the mission, objective, procedures, rules – manipulation of the human capital of an enterprise – to contribute to the success of the enterprise. l Implies effective communication: – an enterprise environment (as opposed to a physical or mechanical mechanism) Implies human motivation l Implies some sort of successful progress or system outcome. l Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 6

Components, Functions l Two main aspects of management: – Communication – A positive endeavor ( )ﻣﺠﺎﻫﺪﺕ l Necessary components? ? – l One may view management functionally, such as: – – – l Plans, measurements, motivational psychological tools, goals, and economic measures (profit, etc. ) measuring quantity, adjusting plans, meeting goals. Henri Fayol (1841– 1925): consist of six functions: – – – Jan-06 forecasting planning organizing commanding coordinating controlling The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 7

Management Roles (Mintzberg) Professor Henry Mintzberg The Nature of Managerial Work (New York: Harper & Row, 1973). l Enduring influence of his theory l changes since that time: l – the shift to an empowered relationship between top managers and other managers and employees, – obvious changes in technology, – the exponential increase in information overload Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 8

Management Roles (Mintzberg) Interpersonal l Figurehead – Top manager represents the organization in all matters of formality. legally and socially to those outside of the organization. – The supervisor represents the work group to higher management and higher management to the work group. l liaison role: – the top manager interacts with peers and people outside the organization, to gain favors and information, – the supervisor uses it to maintain the routine flow of work. l Leader role: – the relationships between the manager and employees Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 9

Management Roles (Mintzberg) Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 10

Levels of Managers (Traditional View) l l Management Team: those people who manage an organization. Managers do not spend all their time managing and Some employees perform only part of the functions described as managerial Larger organizations typically organized in a hierarchial, pyramid structure. Top managers are responsible for: – – l Top Level: – – – l Senior managers, such as members of a Board of Directors Chief Executive Officer (CEO) President Duties: – – l developing the organization’s strategy being a steward for its vision and mission. set the strategic goals of the organization make decisions on how the overall organization will operate. Senior managers are generally executive-level professionals, and provide direction to middle management who directly or indirectly report to them. Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 11

Levels of Managers (Traditional View) l Mid Managers: functional, team, and general managers. – – l Traditionally diistinctions made between line and staff managers. – – l l Functional managers : responsible for the efficiency and effectiveness of an area, such as accounting or marketing. Supervisory or team managers : responsible for coordinating a subgroup of a particular function or a team composed of members from different parts of the organization. A line (or product or service) manager leads a function that contributes directly to the products or services the organization creates A staff manager, in contrast, leads a function that creates indirect inputs A project manager has the responsibility for the planning, execution, and closing of any project. A general manager is someone who is responsible for managing a clearly identifiable revenue-producing unit Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 12

Levels of Managers l Middle managers, include – – l l l Duties: provide direction to front-line managers. Middle managers communicate the strategic goals of senior management to the front-line managers. Lower managers, such as: – – – l branch managers, regional managers, department managers section managers, supervisors front-line team leaders, Duties: oversee the work of regular employees (or volunteers) and provide direction on their work. In smaller organizations, an individual manager may have a much wider scope. Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 13

Traditional/Conemporary View: Mang. Levels l S. Ghoshal and C. Bartlett, The Individualized Corporation: A Fundamentally New Approach to Management (New York: Collins Business, 1999). l Traditional View: – hierarchical relationship among layers of management and managers and employees, l Contemporary view – l top managers support and serve other managers and employees (through a process called empowerment), just as the organization ultimately exists to serve its customers and clients. Empowerment: – the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways. Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 14

Traditional/Conemporary View: Mang. Levels and Tasks Jan-06 The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 15

Management Degrees l Social scientists study management as an academic discipline, investigating areas such as: – social organization – organizational leadership. l Some people study management at colleges or universities; major degrees in management include: – – – Jan-06 Bachelor of Commerce (B. Com. ) Master of Business Administration (MBA. ) Master of Public Administration (MPA) degree for the public sector. Doctor of Management (DM), Doctor of Business Administration (DBA), Ph. D in Business Administration or Management (to become management specialists or experts, management researchers, or professors) The Concept of Strategy Aero. Eng. Dept. Karim Mazaheri Sharif Univ. of Tech. 16