Organisation

Group of people working for a common goal FedEx on time package delivery service at the lowest prevailing price. Sony- Create innovative cameras Dell computer- produce PCs Overall goal increasing profits and market share

Intro. to Organizations
Management environment is rapidly changing Cost focus changing to Quality focus Autocratic systems of organisation giving way to consensus forms Globalisation and competitive pressures Technology as an enabling force (eg. Internet) Social change focusing on people

Intro. to Organizations
The relevance of your technical capability will decline The relevance of your managerial capability will increase. The crossover point is generally less than 5 years

Intro. to Organizations
Industrial Revolution
Workers brought together and required some kind of organization; Prior fixed positions of labouring class versus ruling class gave way to a kind of social Darwinism Adam Smith (1776) founded economics with The Wealth of Nations

Intro. to Organizations
The Wealth of Nations ( 1776) The source of wealth is the labour of people, and improvement comes from specialization; Division of labour implies greater task familiarity; Labour is a commodity rather than an activity A worker is a machine of production; Individuals will maximize their self-interest; Well-being of workers depends on economic growth.

The rise, decline and rebirth of Ford

Henery Ford, Started with nothing in 1903, had built fifteen years later the worlds largest and most profitable manufacturing enterprise The Ford Motor Company, in the early twenties, dominated and monopolized the American automobile market and held a leadership position in most of the other important automobile markets of the world of the world It had amassed, out of profits, cash reserves of a billion dollars or so

Contd..
Only a few years later, by 1927, this business empire was in shambles.Having lost its leadership position and barely able to stay a poor third in the market, it lost money almost every year for twenty years In 1944 the founders grandson, Henery Ford II, then only twenty six years old and without training or experience, ousted two years later his grand fathers cronies in a palace Coup, brought in a totally new management team and saved the company

Management
Management is the process of planning, organizing leading and controlling the resources of an organization in the efficient and effective pursuit of the specified organizational goal The process of working with and through others to achieve organizational objectives in a changing environment. Management entails the effective and efficient use of limited resources.

Efficiency Effectiveness Matrix

R E S O U R C E use
Efficient Most resources contribute to production
Not reaching goals and not wasting resources Reaching goals and not wasting resources

Inefficient Few resources contribute to production

Not reaching goals and wasting resources

Reaching goals And wasting resources

Ineffective Little progress toward organisational goals

Effective Substantial progress towards organisational goals

Goal accomplishment

Management environment
Task environment Clients Competitors Suppliers Regulators Labour

Internal environment Board of directors Employees Process Culture Climate

Nature and characteristics of management

Management is goal oriented Management is universal Management is multidisciplinary Management is a continuous process Management is an art as well as science

Managerial roles
Interpersonal roles Figurehead role Leader role Liaison role Informational role Monitor role Disseminator role Spokesperson role Decision maker Negotiator role Resource allocator Disturbance handler Entrepreneurial

Functions in the Management Process

Managerial skills
Technical skills Human skills Conceptual skills

Functional managers
Marketing managers Operational managers Human resource managers Administrative managers Finance manger Line managers & staff managers

Functions of top level management

To make corporate plan for the entire organisation To decide corporate goals To design structure of organisation, creating various positions To exercise overall managerial control through the process of reviewing overall financial and operating results To select key officials and executives for the company To formulate basic policies and principles

Functions performed by middle managers

To prepare departmental plan covering all activities of the department within the basic framework of the corporate plan To establish departmental goals To issue detailed orders and instruction to lower level managers Explain and interpret policy decisions

Supervisory level management

To get things done by core group workers To prepare plan for their activities To issue necessary orders and instructions to the workers To guide, assist and help the workers by explaining work procedures To motivate them and to maintain a team spirit among them To arrange, material, machines and tools for the workers and provide training to them