BFI PAKISTAN

ESSENTIALS OF MANAGEMEN

After studying this chapter, students should be able to understand the following:

􀂃 Concepts and Essential of Management
􀂃 Management and its relationship with HRM

A. Concepts and Essential of Management
i. What is Management?
Management is the process of working with different
Resources to accomplish organizational goals. Good managers
Do those things both effectively and efficiently. To be effective
Is to achieve organizational goals. To be efficient is to achieve
Goals with minimum waste of resources, that is, to make the
Best possible use of money, time, materials, and people.
Some managers fail on both criteria, or focus on one at the
Expense of another. The best managers maintain a clear
Focus on both effectiveness and efficiency.
ii. The Functions of Management
a. Planning
Planning is specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve
Those goals. Planning activities include analyzing current situations, anticipating the future, determining
b. Organizing
Organizing is assembling and coordinating the
human, financial, physical, informational, and
other resources needed to achieve goals.

c. Leading
Leading is stimulating people to be high performers. It is directing, motivating, and communicating with
employees, individually and in groups.

d. Controlling
Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth
functional controlling, monitors progress and implements necessary changes. When managers implement their
plans, they often find that things are not working out as planned. iii. Effectiveness & Efficiency
Productivity = Efficiency x Effectiveness
a. Efficiency is the ratio of outputs to inputs.
b. Effectiveness is the degree to which the
organizations output correspond to the need
and wants of the external environment that
include customers’ suppliers’ competitors
and regulatory agencies.
iv. Manager
The member of the organization who participates in the management process by planning, organizing, leading,
or controlling the organization's resources.
v. Types of Mangers
There are three types of mangers…
1. Strategic Manager: Strategic managers are the senior executives of an organization and are responsible for its overall management. Major activities include developing the company's goals and plans. Typically strategic managers focus on long-term issues and emphasize the survival, growth, and
overall effectiveness of the organization.
2. Tactical Managers:

Tactical managers are responsible for translating the general goals and plans

􀂄 Efficiency: A measure of how well resources
are used to achieve a goal
“Doing Things Right”
􀂄 Effectiveness: A measure of the
appropriateness of the goals chosen (are these
the right goals?), and the degree to which they
are achieved
“Doing the Right Things Right”
3. Operational Managers:

Operational managers are lower-level managers who supervise the
operations of the organization. These managers often have titles such as supervisor or sales manager.
a. Technical Skills
The skills that include knowledge of and proficiency in a certain specialized field Managers need to be technically
competent. They need to know how to plan, organize lead and control. Line managers need this skill the most
while top manager will need minimum of technical skills.
b. Interpersonal Skills/Human Skills
Interpersonal skills include the ability to work well with
other people both individually and in a group.

c. Conceptual Skills
Conceptual skills include the ability to think and to
conceptualize about abstract and complex situations, to see
the organization as a whole, and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. Conceptual skills include analytical ability, logical thinking, concept formation, and inductive reasoning.

1. First-line managers are the lowest level of management.
They’re often called supervisors
2. Middle managers include all levels of management between
the first-line level and the top level of the organization.
3. Top managers include managers at or near the top of the
organization who are responsible for making organization wide
decisions and establishing the plans and goals that affect the
entire organization.
Manager’s Roles:
a. Interpersonal roles
• Figurehead—duties that are ceremonial and symbolic in nature
• Leadership—hire, train, motivate, and discipline employees
• Liaison—contact outsiders who provide the manager with information. These may be individuals or groups
inside or outside the organization.
b. Informational roles
• Monitor—collect information from organizations and institutions outside their own
• Disseminator—a conduit to transmit information to organizational members
• Spokesperson—represent the organization to outsiders
c. Decisional roles
• Entrepreneur—managers initiate and oversee new projects that will improve their organization’s performance
• Disturbance handlers—take corrective action in response to unforeseen problems
• Resource allocators—responsible for allocating human, physical, and monetary resources
• Negotiator role—discuss issues and bargain with other units to gain advantages for their own unit
All managers are mostly concerned with following activities:
• Staffing
• Retention
• Development
• Adjustment
• Managing change
HR Professionals’ Responsibilities:
Line manager
Authorized to direct the work of subordinates—they’re always someone’s boss. In addition, line managers are
in charge of accomplishing the organization’s basic goals.
Staff manager
Authorized to assist and advise line managers in accomplishing these basic goals. HR managers are generally
staff managers
B. Management and its relationship with HRM
There are five basic functions that all managers perform: planning,
organizing, staffing, leading, and controlling. HR management involves
the policies and practices needed to carry out the staffing (or people)
function of management.