Management and Organization

Although management is recognized as a vital activity in virtually all organizations, it is in fact very difficult to obtain agreement about the precise definition of what management is. At the most basic level, it is sometimes referred to as the art of getting things done through other people. This emphasis the fact, that managers achieve results by getting others to perform certain tasks.

Definition:

"Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently act selected aims"

Also;

• Management applies to any kind of organization
• Management can take place at variety of organizational levels.
• The aim of all managers is the same: to create surplus
• Managing is concerned with productivity

Functions of Management

A manager performs 5 functions in an organization. They are;

• Planning
• Controlling
• Organizing
• Coordinating
• Commanding

Planning: All managers constantly plan for the future planning will generally include the following steps or stages.

• Setting objectives
• Developing alternatives to achieve objectives
• Evaluating the alternatives
• Selecting the best alternative
• lmplementing
• Review of success

Controlling: The function of monitoring the actual event and if there are any changes from the plans, taking action to correct them.

Organizing: Dividing the work among different individuals providing the relevant resources and seeing to that the different individuals are working towards the designated tasks.

Coordinating: There may be a large number of organizations performing variety of activities if the organization is to be successful, they have to work together and there should be coordination.

Commanding: According to Fayol (Fayol is an author) a manager issues commands which are followed by others. This term commanding through suitable in Fayol's times may not be applicable to the modern work force. A modern manager should be regarded as playing the following roles instead of commanding.

• Leading Communicating
• Motivating ' Decision Making

Information Systems Related Roles and Positions

IT Director/Chief information officer (CIO)
As a member of the board of directors, the IT director is responsible for all IS/IT activities within an organization. The role of the CIC is almost identical to that of the lT director. However he/she is also responsible for servicing the information requirement of the board of directors as well as controlling information flows and ensuring that adequate information is available across the organization.

IT Manager
The individual who is responsible for all aspects of information technology and related services within an organization. His/her functions include; formulation of long term IS strategies, appraisal of systems, communicating with the board, ensuring timely update of organizational computer systems, IT staff recruitment, etc.

Database Administrator (DBA)
The individual responsible for managing an organizations database systems. His/her functions include; setting up database systems, monitoring database operations, periodic backup taking, database maintenance activities, maintenance of the data dictionary, etc.

Systems Analyst
Is responsible for studying the existing system within an organization by means such as observation, interviews, etc. He / she is also responsible for documenting and making recommendations to systems designers.

Systems Designer
Is the individual who obtains the analysis report from the systems analyst and then uses this recommendation to construct a design for a new system. The functions performed by the systems designer include : Design of information flows, process planning, design of file structures, screen design, etc.

Application Programmer
Is the individual who is responsible for converting paper designs of the new system into a set of working applications. His/her role is often termed as the individual who is responsible for converting ideas into reality in a software systems context. The tasks performed include coding, screen design and testing.

Web Designer
A relatively new role to emerge in the IT industry. a web designer is usually referred to in context of small firms. He 1 she is usually responsible for or involved in analyzing, designing, developing and implementing a web based solution such as a web site for a client. Creativity and skill are of the essence for such individuals.

Maintenance Staff
These are the individuals who are responsible,for carrying out hardware and software maintenance activities with respect to information systems within an organization. Their main tasks include : upgrading hardware devices, upgrading software applications, troubleshooting, repairing damaged machines, dealing with viruses and other similar security breaches.

Data Entry Operator
Traditionally a data entry operator was considered to be an individual who read through hard copies of data and then keyed in (typed) the data as input to computers for later processing. The role at present is taken to be one, which is involved with performing repetitive tasks such as the work done by cashiers at supermarket terminals.

Organization Structure

All organizations have some form of structure which should facilitate the implementation of strategy and the achievements of objectives. In simple terms an organization structure can be defines as an established pattern of relationships among -the individuals, groups and departments within it. Although this pattern can be changed from time to time, the structure of the organization is relatively static framework within which process such as communication, leadership and decision making takes place. organization structure is concerned within which the way work is divided up and allocated, and how coordinated to achieve objectives is described as an organization's basic structure and in some organizations it will be illustrated in the form of a chart.

Types of Organizational Structures

Entrepreneurial Structure

A small organization is likely to have little in the way of formal structure, because the owners or managers can deal with most things on a personal face to face basis. It might be said to have an entrepreneurial structure, whereby everything revolves around one or a few central decision makers.

Functional Structure

The most common form of structure adopted when an organization has outgrown the entrepreneurial one is the functional structure. This divides the organization up into its main activities or functions (production, Sales, accounting and so on) and places manager in charge of each function under the overall control of the owner or a senior manager' This form of organization has a number of potential advantages, including: efficient use of specialized resources; and a career structure that enables people to advance within their functional specialism.

Divisional Structure

Example: Product base division:
This is a name, a sign or a symbol which helps to identify a product from other similar products. A manager is appointed in charge of a product or a brand and he & his subordinates are responsible for their products and brand performance.

Advantages:

• Better communication and co-ordination.
• Clear responsibility for the performance of products and markets.
• Specialization can be developed. (A sales person who is handling a particular type of hardware can develop knowledge in technical side and deliver a better service)

Disadvantages:

• There may be too many managers increasing the organization cost.
• There may not be a proper coordinated approach with regard to targeting customers. The same customer may be approached by different sales people of the company.

Geographical Based Structure

A manager is appointed for each region and he/his subordinates are responsible for all the organizations activities in that region.

Advantages:

• Large organization needs such a structure to operate in many areas successfully
• TransPort cost are minimized
• Better controi over pedormance
• Very fast & good decision making
• Regional taste and preferences can be effectively carried

Disadvantage:
Cost will be high due to high degree of duplication of activities (Example: more sales reps, accounts executives, show rooms, etc.)

Matrix Structure

Matrix structure seeks to add flexibility and co.ordination to traditional vertical hierarchy. One way of doing this is to create project teams made up of members drawn from a variety of different functions or divisions: each individual then has a dual role, as he/she maintains functional/divisional responsibilities. As well as memberships of the project. The matrix structure is sometimes appropriate for large multi- product companies which have significant interrelationships between their various operating units. If implemented this form of structure can:

• Help to improve decision making by bringing a wide range of expertise to problems
• Improve lateral communrcation and co-operation between specialists
• Most suitabie for IT Projects

Classification of Organizations - (Flow of Information) Lecture 03

Flow of information within an organization can be divided in to two groups.

1. Vertical flow (top-down or bottom up)
2. Horizontal flow

Vertical flow

This is where two or more individuals at different levels of the corporate hierarchy communicate with one another. At such a point one would automatically become the superior while the other becomes the subordinate.

Example:

A line manager reports to the production manager.

Horizontal flow

This is where two or more individuals at the same level of the corporate hierarchy communicate with one another. At such a point neither there is a superior nor subordinate.

Example: 

A marketing manager discusses a marketing plan with the production manager.

Classification of Organizations - (Stakeholder Groups) Lecture 02

Stakeholder
A stakeholder is someone who could affect or tends to be influenced by the activities of a business organization. A stakeholder could be an individual, an organization, a group of people or any other such entity.

Internal Stakeholders

• Shareholders, Investors (such as banks & financial institutions)
• Managers
• Employees
• Contract staff

External Stakeholders

• Suppliers
• Creditors (people who we owe money to)
• Customers
• The government and local authorities general community / Cause / Pressure groups

Shareholders

These are the people who have invested in the equity (seed) capital of the business. They are considered to be the owners of the business entity and hence take a great risk on their investment. It is natural that they also expect high returns. Their expectations include : capital gains and returns on investment in the form of dividends.

Their expectations include:

• Capital gains on sale of shares
• Adequate returns on investment in the form of dividends
• Security of their investment (confidence that their investment is safe)
• The right to participate in annual general meetings
• Their comments to be heard and considered by the BOD

Financial Institutions

These are organizations such as banks and debt providers who have provided loans to the firm.

Their expectations include:

• Timely payment of interest and capital repayment
• Security for their investment

Managers

These are the top most individuals in a firm. Comprising of the BOD, the MD and the senior managers they would tend to be one group which would be greatly affected by the affairs of a business. Similarly they are capable of exerting a significant influence on all business activates.

Their expectations include :

• An industrially competitive remuneration package
• Promotional prospects
• Job security
• Adequate training and personality development
• A suitable and stress free work environment
• Adequate authority to perform their job functions

Employees

These are the ordinary workers, office staff and other full time employees of the organization. The group as a whole is considered as the workforce of an organization and they tend to exept their influence through trade unions and other employee groups.

Their expectations include:

• Reasonable wages
• Promotional prospects
• Job security
• Safe and secure work environment
• Adequate training
• Jobs free from discrimination

Contract Staff

This group of individuals are similar to employees, however they have limited ability to influence business decisions as they work on a contract basis. Contracts usually require renewal and could be cancelled at short notice. They are likely to have lesser statutory entitlements than employees. However recent regulations in the EU devotes greater attention to the needs of such staff .

Suppliers

These are the providers of. raw materials and other support good and services to an organization.

Their expectations include:

• Adequate orders
• Timely settlement of debts
• Steady rise in orders
• Reasonable requests that could be compiled with
• Reasonable prices for their products and services

Creditors

These are individuals and organizations who are owed money by the organization.

Their expectations include:

• Timely settlement of debts.
• Adequate interest if delayed.

Customers

These are the individuals or organizations who purchase the products of the business.

Their expectations include:

• Quality products
• Reasonable prices
• Good after sales service
• Availability and range to choose from

Government and Local Authorities

The government takes an interest in business organizations due to several reasons.

These include:

• Taxation (a source of revenue for the government)
• When planning subsidies and assistance schemes
• Checking compliance with legal and state policies
• Assessing corporate ethical behavior

General Community

The general community would be concerned with the impact a business organization has on it's surrounding environment. For instance they maybe concerned about pollution, noise, disturbance, etc while at the same time show positive responses towards the creation of job opportunities and assistance to regional entities such as schools.

Cause / Pressure Groups

Focus on a particular issue and attempt to influence business activities in this respect.

Examples: 

• Animalwelfare
• Employment
• Anti smoking pressure groups

Classification of Organizations - Lecture 01

For most of our lives we are members of one organization or another - college sports team, a musical group, religious organization, a branch of armed forces or a business. Some organizations, like the army and large corporations, are structured very formally. Others, like a neighborhood basketball team, are more casually structured. But all organization, formal or informal are put together and kept together by a group of people who see that there are benefits available from working together towards some goal. So a basic element of any organization is a goal or purpose (the purpose that an organization strives to achieve; or organization often have more than one goal; goals are fundamental elements of an organization)

Objectives of Organizations

• Provision of a service
• Profit maximization
• Growth (expansion of market share)
• Support other organizations
• At times of hardship - Survival

Classifications of organizations

1. By ownership
2. By scale
3. By objectives
4. By sector
5. Other classifications

Organizations - Classified by Ownership

• Sole trader (1 owner)
• Partnership (2-20 partners)
• Limited liability company
• Private limited company (Pvt)
• Public limited company (PlC)

Sole Trader
A sole trader business is a private business which is set up and managed by a single individual. He/she makes the entire investment, enjoys the benefit of all returns and takes all risks relating to the business activities'

Example: Mark starts a hardware shop by his own

Partnership
A partnership business is one which is set up and operated by 2-20 partners. Usually coming from different specializations, they pool their strengths towards the development of the combined entity. The advantage of attracting a relatively larger amount of capital exists however it too is constrained by the unlimited liability of owners.

Example: Fred and David starts a software development company

Limited Liability Company
This is where several individuals invest and create a separate legal entity which functions without the assistance of it's owners. A board of directors is appointed by the shareholders to carry out the business activities on their behalf. The main benefits being that it's easy to raise a larger amount of capital as well as the benefit of limited liability.

Example: McFloyed Technologies (Pvt) Ltd

Organizations - Classified by Scale

• Multinational Companies (MNCs)
• Holding Companies

Multinational Companies
A multinational company is considered to be a large scale company which operates in both a local country and several foreign countries with at least a single production plant being in operation in a foreign country.

Holding companies
These are companies that usually avoid conducting ordinary business activities. Instead they hold on to controlling interest of other companies (both private and/or public) and investments. They obtain returns from these investments which they in turn distribute among their own shareholders.

Organizations Classified by Objectives

• Provision of a service (Government Sector)
• Profit maximization
• Expansion of market share
• Survival

Provision of a Service
Most government sector organizations (till recent times) placed more emphasis on providing required services for the benefit of the general public with less emphasis being placed on making profits. Sports clubs are yet another form of organization which focus on the provision of a service.

Profit Maximization
Most private sector companies attempt to maximize sales revenue while at the same time reducing costs and focusing on more effective and efficient operations. Thus generating greater profits which may either be re-utilized or returned to investors in the form of dividends.

Example: Most private sector organizations.

Expansion of Market Share (Growth)
Certain private and public sector companies maybe willing to forego current excess returns and instead reinvest these in improvement measures in order to gain more market share and thus potential increased returns in future.

Survival
This becomes the main objective of most firms at times of hardship such as recession, downturn of individual business, etc. They realize that they would not be able to make profits but instead focus on covering operational costs in an attempt to survive (avoid closure) until market conditions improve.

Organizations Classified by Sector

• Public sector (managed by the government)
• Private sector (owned and managed by individuals and other private companies)

Public Sector
The public sector refers to organizations that are owned by the state and run by the government or appointed management teams. The main objective of such organizations is to provide a service which is either desired or needed by the general community.

Private Sector
The private sector refers to business organizations that are owned and managed by either individuals or other private sector organizations. Their main objective is usually to maximize shareholder wealth and thus provide high returns to it's investors.