What is an organization?
- An organization is a social unit in which two or more people interact to achieve a common goal (Stonner 1995).
- An organization is defined as a collection of people working together in a division of labor to achieve a common purpose (Schermerhon).
Types of organizations.
Formal organization - Two or more people who are involved in a mutual effort with formal authority to achieve common objectives -> organization chart.
Informal organization - Two or more people involved in a mutual effort without deliberate structures of authority.
What is management?
- As the art of getting work done through other people.
- To manage is to make decision work done through other people.
- To manage is to make decision.
Importance of effective management.
- Understand many events, challenges & skills that will give meaning to our future work experience & careers.
- Become effective managers through effective utilization if its human & material resources.
- Will be able to detect & locate problems to be solved that results in good decision making.
- Enable to assess the future & make plan for it.
- Will be responsible & accountable for ensuring that the work effort of our employees are directed towards the accomplishment of organizational objectives.
What is management function?
- It comprises the activities of planning, organizing, leading & controlling for achieving organizational goals/missions.
Planning - Includes defining goal, establishing strategy & developing plans to coordinate activities.
Organizing - Determining the task to be done, who is to do them, how tasks are to be grouped, who reports to whom & where decisions are to be made.
Leading - Includes motivating subordinates directing others, selecting the most effective communication channel, resolve conflicts among individuals/groups & teams.
Controlling - Monitoring activities to ensure that they are being accomplished as planned & correcting any deviations.
Levels of management.
First line management - the lowest level of management in which individuals are responsible for the work of others - manage operating employees only. : Retail supervisor -> floor operation / clerical supervisor -> large office / production supervisor -> manufacturing plant.
Middle management - the level whereby managers would direct the activities of lower level managers & sometimes, also direct the operating employees - to direct the activities that implement the organization's policies - to balance the demand of their superiors with the capacity of their subordinates.
Top management - the top managers are responsible for the overall management of the organization - establishes long term strategies& policies. : Director / CEO / Senior Vice President / Chairman.
Technical skills - ability to use the procedures, techniques & knowledge of a specialized field. : Surgeon / accountants / engineers / technician.
Human skills - the ability to work with, understand & motivate other people as individual/group.
Conceptual skills - the ability to coordinate & integrate all of organization's interest & activities.
- 1st line manager needed more technical skills.
- Middle manager needed more human skills.
- Top level manager needed more human skills & conceptual skills.
Interpersonal roles - interacting with others, external/internal the organization. - help the manager in the organization smoothly. : Figurehead / Leader / Liaison.
Informational roles - gathering/obtaining of information for decision making - assist the manager in receiving & communicating information to make the right decision. : Monitor / Disseminator / Spokesperson.
Decisional roles - allocating of resources - it assist managers in making decision that solve problem/analyze & take advantage of opportunities. : Entrepreneur / Disturbance handler / Resource Allocator / Negotiator.
Source : Principles and Practice of Management (Text book).
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What is an organization?