2011-05-03

1

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

Basics of Management

Classes for Bachelor Studies in Finance

J

anusz Marek Lichtarski, PhD.

E-mail:

[e-mail]

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Management can be seen as:
art – means that management require special characteristics, skills and

attitudes. Manager as an artist sometimes should base on his intuition and
talent

practice – means that it is practical activity - it was long before became a

science. It also means that the more experience you have the better manager
you are

science – means that there are various scientific theories, concepts, methods

and tools which help managers in their day to day activity. Those theories are
based on numerous empirical studies and findings

2011-05-03

2

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

What is Organization?

Organization is a group of people, who collaborate in coordinated way to achieve

established set of goals

R.W. Griffin

Organization is a collectivity with a relatively identifiable boundaries, a normative

order (rules), ranks of authority (hierarchy), communication systems and

membership coordination systems (procedures); this collectivity exists on a

relatively continuous basis, exists in an environment, and engages in activities

that are usually related to a set of goals; the activities have outcomes for

organizational members, for organization itself, and for society

R.H. Hall

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Model of Organization

STRUCTURE

STRUCTURE

SYSTEMS

SYSTEMS

STAFF

STAFF

SHARED

VALUES

SHARED

VALUES

STYLE

STYLE

STRATEGY

STRATEGY

SKILLS

SKILLS

STRUCTURE

SYSTEMS

STAFF

SHARED

VALUES

STYLE

STRATEGY

SKILLS

The manner in which

organization components –

its departments, divisions,

boards, committees, or any

other subunits – are designed

and interrelated

Complex tools which

support production

and management

systems, e.g. Quality

Management System,

motivation system,

control system etc.

All people in organization

(managers and workers) with

their knowledge, skills and

attitudes

A way of managerial behavior

Relationship between

manager and subordinates

Ways of bahaviour, norms

and values shared by

organizational members

A long-therm plan

of organization’s

activity

Organizational skills

and knowledge –

unique technology,

know how, patents,

etc.

2011-05-03

3

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Organization as an Open System

INPUTS

OUTPUTS

TRANSFORMATION

PROCESS

SYSTEM

(ORGANIZATION)

ENVIRONMENT

The

main

inputs

in

business

organizations are materials, labor
(people), money and knowledge

Transformation process means
change of raw materials into the
final

products

using

proper

methods and tools

The outputs of business
organizations

are

final

products or services

Organizational environment can be defined as all elements which do not belong to

interior of organization (are outside) but have a huge impact on organization activities

and performance

R.J. Aldag, T.M. Stearns

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Organizational Environment (PEST)

ORGANIZATION

SUPPLIERS

COMPETITORS

CUSTOMERS

OTHER

INSTITUTIONS

FINANCIAL

INSTITUTIONS

GOVERMENT

AGENCIES

CLOSER ENVIRONMENT

micro

FURTHER

ENVIRONMENT

macro

ECONOMIC

SITUATION

SOCIOCULTURAL

LEGAL AND

POLITICAL

TECHNOLOGICAL

2011-05-03

4

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

What is Management?

The process of planning, organizing, directing, and controlling of individuals

activities and other organizational resources focused on achieving common goals

R.W. Griffin

Planning

Defining goals and

establishing

action plans

Controlling

Monitoring activities

to ensure that they

are achieving

results

Leading

Guiding and

motivating all

involved parties

Organizing

Determining what

needs to be done, in

what order, and by

whom

Effective

Management

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Who Are Managers?

Managers are individuals who are responsible for completing tasks that require

the supervision of other members or organizational resources

R.J. Aldag, T.M. Stearns

By managers we mean all individuals who:
are responsible for planning, organizing, directing, and controlling others’

activities,

lead other organizational members,
make decisions in organization.

2011-05-03

5

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Manager vs Leader

Managers

Versus Leaders

May Have

Managerial

Authority and

Influence Others

Appointed and

Have Formal

Authority

Managers

Leaders

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Levels of Management

Top

Managers

Top

Managers

Middle Managers

Middle Managers

First-line Managers

First-line Managers

Employees or Members

Employees or Members

2011-05-03

6

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Levels of Management

First-line managers – situated at the lowest level in organizational hierarchy.

They deal with day-to-day tasks, correct current errors, and solve problems
directly related with production of goods or services.

Middle managers – responsible for implementing policies and plans within

functional units or divisions. They fulfill more various, multifunctional tasks,
and have wider range of authority.

Top managers – situated on the top in organizational hierarchy have large.

They formulate organizational vision, mission and strategic goals, and are
responsible for overall performance.

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Distribution of Manager’s Time

2011-05-03

7

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Managerial Roles

Mintzberg’s

Managerial Roles

Interpersonal

Decisional

Informational

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Mintzberg Managerial Roles

Interpersonal Roles

Figurehead.

Performs symbolic duties: bestows honors, make speeches, etc.

Leader.

Hire, train, promote and motivate subordinates.

Contact Maker (Liason).

Maintains relationships within organization and with environment

Informational Roles

Monitor.

Observes and reviews. Collects data and information.

Disseminator.

Transmit information and judgments about environment into organization.

Spokesman.

Speaks for organization. Lobbies and defends. Engages in Public Relations.

Decisional Roles

Entrepreneur.

Initiates changes and introduces innovations. Sets goals and make plans.

Disturbance Handler.

Handles conflicts and complaints. Counters actions of competitors.

Resource Allocator.

Approve budgets, schedules, and promotions. Sets priorities.

Negotiator.

Works out agreements with customers, suppliers, and other organizations.

2011-05-03

8

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

Managerial Profile

PERSONAL

CHARACTERISTICS

PERSONAL

CHARACTERISTICS

HARD SKILLS

HARD SKILLS

KNOWLEDGE

KNOWLEDGE

THE IDEAL

MANAGER

THE IDEAL

MANAGER

SOFT SKILLS

SOFT SKILLS

WORK

EXPERIENCE

WORK

EXPERIENCE

ATTITUDE

ATTITUDE

PERSONAL

CHARACTERISTICS

HARD SKILLS

KNOWLEDGE

THE IDEAL

MANAGER

SOFT SKILLS

WORK

EXPERIENCE

ATTITUDE

BASICS OF MANAGEMENT

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

Managerial Skills

Organizational

level

Skills

Top management

conceptual

human

technical

Middle management

conceptual

human

technical

First-line

management

conceptual

human

technical

BASICS OF MANAGEMENT

2011-05-03

9

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Defining Teams

Two or more interacting and interdependent individuals who cooperate to

achieve a set of goals

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Teams vs Groups

Collective

performance

Share information

Individual

and mutual

Positive

Neutral

Complementary

Individual

Random and varied

Accountability

Synergy

Goal

Skills

2011-05-03

10

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

BASICS OF MANAGEMENT

Effective Team

Effective Team

Clear Goals

Relevant

Skills

Mutual Trust

Good

Communication

Unified

Commitment

Negotiating

Skills

Internal
Support

Effective
Leadership

External
Support

Projekt współfinansowany z Unii Europejskiej

w ramach Europejskiego Funduszu Społecznego

Team Role

Contributions

Strengths

Allowable Weaknesses

PLANT

Creative, imaginative,

unorthodox. Solves difficult

problems.

Genius, imagination, intellect,

knowledge

Up in the clouds. Ignores

incidentals. Too pre-occupied to

communicate effectively.

COORDINATOR

Mature, confident, a good

chairperson. Clarifies goals,

promotes decision-making,

delegates well.

Broad outlook, respect,

professionalism

Can often be seen as

manipulative.

MONITOR

EVALUATOR

Sober, strategic and discerning.

Sees all options. Judges

accurately.

Judgement, discretion , hard-

headedness

Lacks drive and ability to inspire

others. Not creative.

IMPLEMENTER

Disciplined, reliable,

conservative and efficient.

Turns ideas into practical

actions.

Organising ability, hard

working, self-discipline

Somewhat inflexible. Slow to

respond to new possibilities.

BASICS OF MANAGEMENT

2011-05-03

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Team Role

Contributions

Strengths

Allowable Weaknesses

COMPLETER

FINISHER

Painstaking, anxious. Searches

out errors and omissions.

Delivers on time.

Reliable, working on the

highets standards

Inclined to worry unduly.

Reluctant to delegate.

RESOURCE

INVESTIGATOR

Extrovert, enthusiastic,
Explores opportunities.

Vital, communicative, curious

Over - optimistic. Loses interest

once initial enthusiasm has

passed.

SHAPER

Challenging, thrives on

pressure. Motivation

Dynamic, outgoing, effective

Prone to provocation. Offends

people's feelings. Nervous.

TEAMWORKER

Socially oriented, mild, and

diplomatic. Listens and builds,

Supportive, integrative,

sensitive

Indecisive in crunch situations.

SPECIALIST

Single-minded, self-starting.

Provides knowledge and skills

in rare supply.

Knowledge, technical skills,

dedicated

Contributes only on a narrow

front. Dwells on technicalities.

BASICS OF MANAGEMENT