Management
Part 1 – Organisations and managers
- What is an organisation
o Teamwork by people
o Shared goal
o Goal: continuity of the organisation (long-term survival)
o Based on synergy (1+1 = 3)
= working together produces a better result than working
alone: combined effort -> more value than the sum of their
individual efforts.
o Benefiting from a scale effect
- Organisation must
o Respond to the needs of today’s society
o Make both short-term and long-term decisions
o Aim for continued existence
- Two Main Goals
o Financial profit
o Social profit
Company vs organisation vs corporation vs enterprise
- Organisation: Not necessarily a company or enterprise. Focus is
often on social profit.
- Company: Produces goods or services to sell (can focus on social
profit and/or financial profit).
- Corporation: Owned by shareholders.
- Enterprise: Focus on risk-taking.
Key concepts
Resources:
- Financial resources
- Human resources
- Commodities/materials
Efficiency
= achieving as many goals as possible with very few resources
Example as inefficiency:
- Wasting materials
, - Too many employees for little output
Synonyms:
- Wastefulness
- Unproductiveness
- Poor use of resources
Effectiveness
= Reaching your goals
A competent manager:
- Reaches as many goals as possible
- With limited inputs
Efficiency = doing things right (using few resources).
Effectiveness = doing the right things (achieving goals).
Organisation: works in a system withing an environment (influences each
other)
1. Inputs (resources needed to function)
2. Transformational process
= inside the organisation, inputs are transformed into outputs
through:
Example: in a cookie factory, ingredients and labour are turned into
cookies
3. Outputs
, These can be desired outputs (profit, satisfied customers) and
undesired outputs (waste, pollution)
4. Feedback
Output information is used to improve and adjust system
performance
Part 1 – Organisations and managers
= a manager is someone who works with and through others by
coordinating their tasks in order to achieve company’s goals.
Three level of management
1. Top management
o Focus: long term
o Defines company goals
o Makes decisions that affect the whole organisation
o Has financial responsibility
o Develops strategic plans
o Main skill: conceptual skills
2. Middle management
o Focus: medium term
o Acts as intermediary between top and operational
management
o Leads and coordinates lower-level managers
o Responsible for communication within the organisation
o Develops tactical plans
o Main skill: human skills
3. Operational (Lower) Management
o Focus: Short term
o Leads and coordinates employees
o Divides work and oversees daily activities
o Develops operational plans
o Main skill: Technical skills
Hierarchy: uninterrupted chain of command from top management
to lower levels. It shows who reports to whom.
Management functions (general)
1. Planning
o Setting objectives and strategies
, o Developing plans to coordinate activities
2. Organising
o Deciding what must be done
o Determining how it should be done
o Assigning tasks to the right people
3. Leading
o Motivating and guiding employees
o Solving conflicts
o Steering the organisation
4. Controlling”
o Monitoring activities
o Ensuring everything follows the plan
o Making corrections if necessary
These functions together form the management process:
=> All decisions and tasks managers perform while planning, organising,
leading and controlling, in order to achieve the company’s objectives.
Management Theories
- Robert Katz → Management skills (conceptual, human, technical)
- Henry Mintzberg → Management roles
Robert Katz – Management Skills
1. Technical skills (hard skills)
Practical, job-specific knowledge and expertise in a specific field.
Examples:
- Working with accounting software or MS Office
- Legal knowledge
- Speaking and writing in foreign languages
- Conducting interviews
- Doing market research (e.g. with SPSS)
Part 1 – Organisations and managers
- What is an organisation
o Teamwork by people
o Shared goal
o Goal: continuity of the organisation (long-term survival)
o Based on synergy (1+1 = 3)
= working together produces a better result than working
alone: combined effort -> more value than the sum of their
individual efforts.
o Benefiting from a scale effect
- Organisation must
o Respond to the needs of today’s society
o Make both short-term and long-term decisions
o Aim for continued existence
- Two Main Goals
o Financial profit
o Social profit
Company vs organisation vs corporation vs enterprise
- Organisation: Not necessarily a company or enterprise. Focus is
often on social profit.
- Company: Produces goods or services to sell (can focus on social
profit and/or financial profit).
- Corporation: Owned by shareholders.
- Enterprise: Focus on risk-taking.
Key concepts
Resources:
- Financial resources
- Human resources
- Commodities/materials
Efficiency
= achieving as many goals as possible with very few resources
Example as inefficiency:
- Wasting materials
, - Too many employees for little output
Synonyms:
- Wastefulness
- Unproductiveness
- Poor use of resources
Effectiveness
= Reaching your goals
A competent manager:
- Reaches as many goals as possible
- With limited inputs
Efficiency = doing things right (using few resources).
Effectiveness = doing the right things (achieving goals).
Organisation: works in a system withing an environment (influences each
other)
1. Inputs (resources needed to function)
2. Transformational process
= inside the organisation, inputs are transformed into outputs
through:
Example: in a cookie factory, ingredients and labour are turned into
cookies
3. Outputs
, These can be desired outputs (profit, satisfied customers) and
undesired outputs (waste, pollution)
4. Feedback
Output information is used to improve and adjust system
performance
Part 1 – Organisations and managers
= a manager is someone who works with and through others by
coordinating their tasks in order to achieve company’s goals.
Three level of management
1. Top management
o Focus: long term
o Defines company goals
o Makes decisions that affect the whole organisation
o Has financial responsibility
o Develops strategic plans
o Main skill: conceptual skills
2. Middle management
o Focus: medium term
o Acts as intermediary between top and operational
management
o Leads and coordinates lower-level managers
o Responsible for communication within the organisation
o Develops tactical plans
o Main skill: human skills
3. Operational (Lower) Management
o Focus: Short term
o Leads and coordinates employees
o Divides work and oversees daily activities
o Develops operational plans
o Main skill: Technical skills
Hierarchy: uninterrupted chain of command from top management
to lower levels. It shows who reports to whom.
Management functions (general)
1. Planning
o Setting objectives and strategies
, o Developing plans to coordinate activities
2. Organising
o Deciding what must be done
o Determining how it should be done
o Assigning tasks to the right people
3. Leading
o Motivating and guiding employees
o Solving conflicts
o Steering the organisation
4. Controlling”
o Monitoring activities
o Ensuring everything follows the plan
o Making corrections if necessary
These functions together form the management process:
=> All decisions and tasks managers perform while planning, organising,
leading and controlling, in order to achieve the company’s objectives.
Management Theories
- Robert Katz → Management skills (conceptual, human, technical)
- Henry Mintzberg → Management roles
Robert Katz – Management Skills
1. Technical skills (hard skills)
Practical, job-specific knowledge and expertise in a specific field.
Examples:
- Working with accounting software or MS Office
- Legal knowledge
- Speaking and writing in foreign languages
- Conducting interviews
- Doing market research (e.g. with SPSS)
