Management is the co-ordination of an organisation’s resources. Any time individuals are working together to achieve a common goal, some decisions must be made regarding who will have which job, and how and when other resources are to be used. Management hierarchy means a structure with 3 levels. Top management have the most power and responsibility. Middle management have somewhat less power and responsibility and implement the broad goals set by top management. Operating management co-ordinate the work of those who are not mangers. Managerial skills fall into 3 basic areas:
1. Technical skills are needed to perform the mechanics of a particular job and include also administrative skills = ability to make schedules and read computer printouts.
2. Human relation skills are needed to understand other people, to interact effectively with them, and to get them to work as a team.
3. Conceptual skills are needed to understand the relationship of the parts to the whole. It is ability to imagine the long-range effects of their decisions. The 4 functions of management are:
1. Planning involves the establishment of objectives for the organisation and the attempt to determine the best ways to accomplish them. For all plans, the starting point is establishing the goals and objectives. The goals must reflective with the company’s mission. 2. Strategies or long-range plans are for 2 – 5 years ahead. They are set by top management. It involves a mission, indicating what business the firm is in, a statement of tactical objectives and operational objectives, which become the company’s policies.
Tactics or short-range plans are made by middle and operating management. Plans are very specific and include procedures (telling employees exactly what steps to take in a given situation), practices (methods for handling specific problems) and rules (procedures covering one situation only) budget ( a plan that expresses in numerical terms how the resources of a firm can be distributed to attain a desired profit).
3. Organising is the process of arranging the firm’s resources (primarily people) to carry out its plans. Managers determine a division of labour best suited to accomplishing the organisation’s objectives and then proceed with staffing the positions (finding and selecting workers).
Getting people to work effectively and willingly involves the directing.