Management Notes 2023 – 2024
1. What is management?
What is management?
Watch videos of management
- Skills needed to be a manager
- Leadership with core skills, business vision, and the ability to bring people
together,
- You only get success through your people, and employees (you can’t do it alone)
Introduction: nuclear fail
- CEO to blame or the managers?
o Managers were fired and the CEO had to resign due to a lack of leadership,
communication, motivation, and supervision = improper management
o Not enough investment in training
- Managers to blame
o Poor organization, lack of people skills, no motivations, poor
communication, control, decision making, job design, leadership and lack
of strategy
Mary Parker Follet ~ ’Management is the art of getting things done through people’
- First female professor in management
So what is management?
- Getting things done through people to achieve organizational objectives. How? –
coordinating and overseeing the work activities of others (planning, organizing,
leading, controlling)
- Managers want success therefore their activities are efficient and effective
- Efficiency vs Effectiveness
o Efficiency = doing things right → getting the most output for the least
inputs
o Effectiveness = doing the right things → reaching organizational goals
(success)
,What do managers do? - The universality of Management means all managers
performing all 4 management functions: POLC
- P: Planning - setting goals and maintaining them
- O: Organizing - assign responsibility for task management
- L: Leading - Use leadership to motivate employees
- C: Controlling - Monitor activities and make corrections
o POLC is constantly happening and has to be managed.
o Different levels
Levels
- Top managers: CEO, vice president, high guys
o Mostly planning
- Middle managers: head of business units and departments (product-related)
o Planning, organizing, controlling, and leading.
- First-Line managers: lowest managers, direct contact with staff (employees)
o Leading, and solving conflicts.
Staff vs. Line Functions
- Staff functions managers help ‘line functions’ managers.
- Staff: support the line people (people working behind the scenes)
- Line: people that touch/make the product (on the line)
Roles managers play
- Information roles
o 75% of the time communication
- Interpersonal roles
o Dealing with people, relations
- Decisional roles
Skill they need:
Katz theory: a good manager
has 3 skills.
- Conceptual skills =
diagnostic (analyse),
conceptual (synthesis),
proactively, ambition
- Human skills = communication, relation shills, inspiring
- Technical skills = goal efficiency, understanding facts and figures
,Cognitive Intelligence (IQ)
- Abilities such as logic, reasoning, reading, writing, analysing, and prioritizing.
Emotional Intelligence (EQ)
- Ability to recognize, understand, and manage our own emotions and emotions of
others, broader than empathy. EQ can be learned,
o Self-awareness = reading one’s own emotions and recognizing their
impact while using gut feeling to guide decisions
o Self-management = involves controlling emotions and impulses and
adapting to changing circumstances
o Social awareness and empathy = ability to sense, understand, and react
to other’s emotions
o Relationship management = ability to inspire, influence, and develop
others while managing conflict
Is it always fun to be a manager?
Stressors (especially for starting)
- Increased workload
- Challenge of supervising former peers
- Headache of responsibility for other people (hiring, firing,..)
- Caught in the middle
- Bad work-life balance
What is an organization?
Examples: companies, hospitals, universities, families, student assembles => all about
people with a similar purpose they want to accomplish
- Common characteristics
o Distinct purpose
o Composed of people
o Have a deliberate structure
Management of Small businesses and non-profit organizations
Small business
- Less hierarchy
- Less specialization
- Less resources for things outside the core
- ‘entrepreneurship
, Non-profit
- Less tangible added value
- Accountability
- Different culture and values
Why study management?
Management is needed in:
- All organization levels: bottom <-> top
- All organization areas: manufacturing <-> marketing, human resources <->
accounting, information systems… etc
- All sizes of organizations: small <-> large
- All types of organizations: profit <-> non-profit
Study: does management matter?
McKinsey & London School of Economics
- Management matters, poor management = poor results
- 3 parts: organization, manufacturing practice, HR
o Interviewed people working in companies (different countries)
o For each practice a scorecard for performance (18 cards), to calculate
management scores
- Management scores
o Average management score and
▪ ROCE (Return on Capital Employed)
▪ TFP (Total Factor Productivity) – efficiency
▪ Higher sales per employee
▪ Higher stock market valuations
Management matters, no management = no things done
1. What is management?
What is management?
Watch videos of management
- Skills needed to be a manager
- Leadership with core skills, business vision, and the ability to bring people
together,
- You only get success through your people, and employees (you can’t do it alone)
Introduction: nuclear fail
- CEO to blame or the managers?
o Managers were fired and the CEO had to resign due to a lack of leadership,
communication, motivation, and supervision = improper management
o Not enough investment in training
- Managers to blame
o Poor organization, lack of people skills, no motivations, poor
communication, control, decision making, job design, leadership and lack
of strategy
Mary Parker Follet ~ ’Management is the art of getting things done through people’
- First female professor in management
So what is management?
- Getting things done through people to achieve organizational objectives. How? –
coordinating and overseeing the work activities of others (planning, organizing,
leading, controlling)
- Managers want success therefore their activities are efficient and effective
- Efficiency vs Effectiveness
o Efficiency = doing things right → getting the most output for the least
inputs
o Effectiveness = doing the right things → reaching organizational goals
(success)
,What do managers do? - The universality of Management means all managers
performing all 4 management functions: POLC
- P: Planning - setting goals and maintaining them
- O: Organizing - assign responsibility for task management
- L: Leading - Use leadership to motivate employees
- C: Controlling - Monitor activities and make corrections
o POLC is constantly happening and has to be managed.
o Different levels
Levels
- Top managers: CEO, vice president, high guys
o Mostly planning
- Middle managers: head of business units and departments (product-related)
o Planning, organizing, controlling, and leading.
- First-Line managers: lowest managers, direct contact with staff (employees)
o Leading, and solving conflicts.
Staff vs. Line Functions
- Staff functions managers help ‘line functions’ managers.
- Staff: support the line people (people working behind the scenes)
- Line: people that touch/make the product (on the line)
Roles managers play
- Information roles
o 75% of the time communication
- Interpersonal roles
o Dealing with people, relations
- Decisional roles
Skill they need:
Katz theory: a good manager
has 3 skills.
- Conceptual skills =
diagnostic (analyse),
conceptual (synthesis),
proactively, ambition
- Human skills = communication, relation shills, inspiring
- Technical skills = goal efficiency, understanding facts and figures
,Cognitive Intelligence (IQ)
- Abilities such as logic, reasoning, reading, writing, analysing, and prioritizing.
Emotional Intelligence (EQ)
- Ability to recognize, understand, and manage our own emotions and emotions of
others, broader than empathy. EQ can be learned,
o Self-awareness = reading one’s own emotions and recognizing their
impact while using gut feeling to guide decisions
o Self-management = involves controlling emotions and impulses and
adapting to changing circumstances
o Social awareness and empathy = ability to sense, understand, and react
to other’s emotions
o Relationship management = ability to inspire, influence, and develop
others while managing conflict
Is it always fun to be a manager?
Stressors (especially for starting)
- Increased workload
- Challenge of supervising former peers
- Headache of responsibility for other people (hiring, firing,..)
- Caught in the middle
- Bad work-life balance
What is an organization?
Examples: companies, hospitals, universities, families, student assembles => all about
people with a similar purpose they want to accomplish
- Common characteristics
o Distinct purpose
o Composed of people
o Have a deliberate structure
Management of Small businesses and non-profit organizations
Small business
- Less hierarchy
- Less specialization
- Less resources for things outside the core
- ‘entrepreneurship
, Non-profit
- Less tangible added value
- Accountability
- Different culture and values
Why study management?
Management is needed in:
- All organization levels: bottom <-> top
- All organization areas: manufacturing <-> marketing, human resources <->
accounting, information systems… etc
- All sizes of organizations: small <-> large
- All types of organizations: profit <-> non-profit
Study: does management matter?
McKinsey & London School of Economics
- Management matters, poor management = poor results
- 3 parts: organization, manufacturing practice, HR
o Interviewed people working in companies (different countries)
o For each practice a scorecard for performance (18 cards), to calculate
management scores
- Management scores
o Average management score and
▪ ROCE (Return on Capital Employed)
▪ TFP (Total Factor Productivity) – efficiency
▪ Higher sales per employee
▪ Higher stock market valuations
Management matters, no management = no things done
