MANAGEMENT AS A RESOURCE IN AN ORGANIZATION (ORGANIZATIONS EMPLOY VARIOUS RESOURCES IN ORDER TO ACHIEVE OBJECTIVES.

DISCUSS THE ROLE OF MANAGEMENT IN AN ORGANIZATION AND ASSESS THE RELATIVE IMPORTANCE OF MANAGEMENT AS A RESOURCE

INTRODUCTION Definitions Organization

An organization is a social group which distributes tasks for a collective goal. Robbin, defined an organization as a consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a desired goal or set of goals. In this presentation we define organization as groups of people who must co-ordinate their activities in order to meet organizational objectives. The co-rdination function requires a strong communications and clear understanding of the relationships and interdependencies among people. Farnham and Horton defined organizations as social constructs created by groups in society to achieve specific purposes by means of planned and coordinated activities. These activities involve using human resources to act in association with other inanimate resources in order to achieve the aims of the organization. Organizations come in different forms, shapes and sizes and can also be formal or informal. Business Dictionary.com, defines an organization as a social unit of people systematically structured and managed to meet a need or to pursue collective goals on continuing basis. All organizations have a management structure that determines relationship between functions and positions and authority to carry out defined tasks. Organizations are open systems in that they are affected by environment beyond their boundaries. Resource On the other hand it is an economic or productive factor required to accomplish an activity or as means to undertake an enterprise and achieve desired outcomes. Basic resources include energy, entrepreneurship, information management and time resource management.

Objective A goal or objective is a desired result that a person or organization envisions, plans and commits to achieve. Although organizational goals may vary, the most basic goals include: i. ii. iii. iv. Profit maximization Cost minimization Increase shareholders wealth Corporate social responsibility

According to business dictionary, an objective is an end that can be reasonably achieved within an expected time frame and with available resources. In general an objective is broader in scope than a goal and may consist of several individual goals. Objectives are a basic tool that underlay all planning and strategic activities. Objectives serve as the basis for policy and performance appraisals. Objectives emphasize aims and are stated as expectations. They are set out more specifically, the goals of organization, the aims to be achieved and the desired end results. Role Its a set of specific tasks that a person(s) is expected to perform in the position they hold.

Management Richard L. Daft describes management as an attainment of organizational goals in effective and efficient manner through planning, organizing, leading and controlling organizational resources. Mary parker described management as the art of getting things done through people.

According to Harold Koontz, Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals According to F.W. Taylor, Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. *****In this presentation we define management as It is the act of getting people together to accomplish desired goals and objectives using available resources effectively and efficiently. It is the human action including design to facilitate the production of useful outcomes from a system. This view opens the opportunity to manage oneself a prerequisite to attempting to manage others. It is the organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives.

It is the act of things done through and with people in a formally organized group (Haimann T.) It is the coordination of all resources through the process of planning, organizing, directing, delegating and controlling in order to attain a given stated objective (Fayol H.1916 and Koontz and ODonnel 1926).

Resource management It is the efficient and effective deployments of organization resources when they are needed. Such resources include inventory, human skills, production resources or information technology. Techniques used include resource leveling whose aims at smoothing the stock of resources on hand reducing both excess inventories and shortages. Goal is to achieve 100 percentage utilization, but is very unlikely.

According to business dictionary.com, its the process of using a companys resources in the most efficient way possible. These resources can include tangible resources such as goods and equipment, financial resources and labour resources such as employees. Resource management can include ideas such as making sure one has enough physical

resources for ones business but not an overabundance so that products wont get used or making sure that people are assigned to tasks that will keep them busy and not have too much downtime. Management functions Stakeholders:

MANAGEMENT ROLES In the above section we have defined various that define the roles of management in varied organizations. In this section we shall consider roles of management during industrial error and post industrial organization. In broader sense, the role of managers is to guide the organization towards attainment of its goals and objectives. Most if not all organizations exist for certain purpose and managers are responsible for combining and using organizational resources to ensure that their organizations achieve their purposes.

Mintzberg described ten management roles as complete set of behaviors or roles within a business environment. According to Mintzberg, people who manage have formal authority
over the unit they command and this leads to a special position of status in the organization. Management can be broadly be categorized into three i. ii. iii. Interpersonal Roles. Informal Roles. Decisional Roles.

Refers to specific categories of managerial behavior associated with position. According to Mintzberg, people who manage have formal authority over the unit they command and this leads

to a special position of status in the organization. As a result of this formal authority and status, managerial activities can be seen as asset of roles divided into. 1. Interpersonal Roles. 2. Informal Roles. 3. Decisional Roles. Interpersonal roles These are relations with other people arising from the managers status and authority. They include Figurehead role

This is the most basic and simple of managerial roles. A manager is a symbol and represents the organization in matters of formality. The manager is involved in matters of a ceremonial nature such as signing of documents, participation in as a social necessity and being available for people who insist on access to the top. He/she determines the direction or mission of the organization. Leader role

Its among the most significant of roles and it permeates all activities of a manager. By virtue of the authority vested in the manager there is a responsibility for staffing and for motivation and guidance of subordinates. Managers train, coach, counsel and mentor subordinates to reach their full potential. Liason role

This involves the manager in horizontal relationships with individuals and groups inside their own unit or outside the organization. The manager is the link between organization and the environment. He/she must be able to network effectively on behalf of the organization. Informational roles This involves processing of information. This role relates to the sources and communication of information arising from managers interpersonal roles.

Monitor roles.

This roles Identifies the manager in seeking and receiving information. This information enables the manager to develop an understanding of the working of the organization, its environment and its relevant changes. Information may be external or internal, formal or informal. The manager monitors the team in terms of both their productivity and well being. Disseminator roles.

In this the manager transmits external information through the liason role and internal information through the leader roles to the subordinates. Information may be factual or may contain value judgment .He/she is the nerve centre of information, which influences workers attitudes and behavior. If the manager feels unable to or chooses not to pass on information this can present difficulties in delegation. Spokesman role

The manager is the formal authority in transmitting information to the people outside the unit such as directors, general public, customers, press, and also the people inside the organization so as to respond to it positively. Decisional roles. This involves the making of strategic organizational decisions on the basis of the managers status, authority and access to information and its transmission. This is to help achieve organization goals and utilizing the resources. Entrepreneur role

In this the manager decides which projects or programmes to initiate and how to invest resources to increase organizational performance. Also plans controlled change through exploiting opportunities or solving problems and taking action to improve the existing situations. Managers may play a major role in seeking improvement or may delegate responsibility to junior staff. Disturbance handler

This involves the manager reacting to involuntary situations and unpredictable events that threaten the organization access to resources. When the unexpected disturbance occurs, the manager must take action to correct the situation and also mediates dispute within the organization. A manager is the figure head and leader in seeking improvement or may delegate to junior staff. Resource allocator

The manager uses formal authority to determine where organizations resources are best applied and also decides the programming of work and maintains control by authorizing decisions before implementation to increase the organizations performance. Negotiator role

This involves participation in negotiation activity with other individuals and organization e.g. an agreement with trade union or government in the best interest of the organization. Because of managers authority, credibility, access to information and responsibility to resource allocation, negotiation is therefore an important part of the job within the team, department and organization.

Formal authority And status

Interpersonal roles Figurehead Leader Liason

Informational roles Monitor Disseminator Spokesperson

Decisional roles Entrepreneur Disturbance Handler Resource Allocator Negotiator

Mintzberg emphasizes that these roles are somewhat arbitrary division of managers activities. They are not isolated in practice but form an integrated whole. If any role is removed this affects the effectiveness of the managers overall performance .this is a realistic approach to classifying activities of management. IMPORTANCE OF MANAGEMENT It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates.

Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.

Essentials for Prosperity of Society - Efficient management leads to better economical

production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society. 1. Encourages initiative Management encourages the staff to do the right thing at the right time without being told or influenced by the superiors. The employees are encouraged to make their own plans and also to implement these plans. This gives satisfaction to employees a thus success of the organization. 2. Encourages Innovation Management also encourages innovation in the organisation. Innovation brings new ideas, new technology, new methods, new products, new services, etc. This makes the organisation more competitive and efficient. 3. Facilitates growth and expansion Management makes optimum utilisation of available resources. It reduces wastage and increase efficiency. It encourages team work and motivates employees. It also reduces absenteeism and labour turnover. All this results in growth, expansion and diversification of the organisation. 4. Improves life of workers

Management shares some of its profits with the workers. It provides the workers with good working environment and conditions. It also gives the workers many financial and non-financial incentives. All this improves the quality of life of the workers.

5. Improves corporate image If the management is good, then the organisation will produce good quality goods and services. This will improve the goodwill and corporate image of the organisation. A good corporate image brings many added benefits to the organisation.

6. Motivates employees Management motivates employees by providing financial and non-financial incentives. These incentives increase the willingness and efficiency of the employees. This results in boosting productivity and profitability of the organisation.

7. Optimum use of resources Management brings together the available resources. It makes optimum (best) use of these resources. This brings best results to the organisation.

8. Reduces wastage Management reduces the wastage of human, material and financial resources. Wastage is reduced by proper production planning and control. If wastage is reduced then productivity will increase.

9. Increases efficiency Efficiency is the relationship between returns and cost. Management uses many techniques to increase returns and to reduce costs. Higher efficiency brings many benefits to the organisation.

10. Improves relations Management improves relations between individuals, groups, departments and between levels of management. Better relations lead to better team work. Better team work brings success to the organisation.

11. Reduces absenteeism and labour turnover Absenteeism means the employee is absent without permission. Labour Turnover means the employee leaves the organisation.

Labour absenteeism and turnover increases the cost and causes many problems in the smooth functioning of the organisation. Management uses different techniques to reduce absenteeism and labour turnover in the organisation.

12. Encourages Team Work Management encourages employees to work as a team. It develops a team spirit in the organisation. This unity bring success to the organisation

References
http://managementinnovations.wordpress.com/2008/12/03/role-importance-of-management/ http://www.managementstudyguide.com/management_importance.htm