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Explain the management process, classify the levels of management and describe

categories of managerial roles.


Management Process
Process is a planned way of carrying out a task. Management is defined as a process as all
managers are involved in activities that are interconnected, with the aim of accomplishing set
objectives. This process will be divided into several separate sections or functions which form
the overall process. The management functions can be classified into the following: planning,
organizing, leading and controlling. Each function is elaborated in the following subtopics.
Planning
Planning is the first step which is basically a logical thinking process that decides what needs
to be done in order to achieve organization's goals and objectives. It focuses on the broader
perspective of the business as well as taking into consideration, the tactical methods to get the
desired results.
Steps in the Planning
Deciding which goals the organization will pursue.
Deciding what courses of action to adapt to attain those goals.
Deciding how to allocate organizational Resources.
Organizing
Organizing is about setting up and maintaining the internal organizational structure in
accordance with objectives mentioned in planning stage. It also involves assigning tasks to
various individuals for the larger goal of organization's missions and objectives.
Involves grouping people into departments according to the kinds of job-specific tasks
they perform.
Managers lay out lines of authority and responsibility.
Decide how to coordinate organizational resources.
Staffing is the process of choosing right people for organization. It can be associated with
human resource management and involves recruitment, hiring, training and compensating the
workforce.
Leading
Leading means the managers direct and influence their subordinates to carry out the tasks
assigned so that goals can be achieved. By creating a conducive work environment, managers
encourage their subordinates to be fully committed.
Controlling
Controlling is defined as the process whereby managers ensure that the organization is moving
towards achievement of set objectives. Controlling is the process of monitoring-comparing
results-correcting. If there is some deviation from the set objectives, the task of a manager is
to identify the cause and take corrective action as needed.
Levels of Management
In any organization, particularly a large organization, there are several layers of management,
each of which has its own area of authority. As such, managers in an organization represent
various levels in the organizational hierarchy, which in turn differentiates their levels. These
levels of managers are first-line managers, middle managers and top managers.

First-line Managers
Individuals who manage the work of non-managerial employees.

Middle Managers
Individuals who manage the work of first-line managers.

Top Managers
Individuals who are responsible for making organization-wide decisions and establishing plans
and goals that affect the entire organization.
MANAGERIAL ROLES
Managers play different roles. The closest example of a manager is yourself as you also play
several roles. Sometimes, you play the role of a son/daughter to your parents; you are also a
parent to your child; or a spouse. Henry Mintzberg, in 1973, postulated that managers have 10
roles which can be classified into three groups: interpersonal roles; informational roles and
decisional roles,

Interpersonal Category
The managerial roles in this category involve providing information and ideas.
1) Figurehead As a manager, you have social, ceremonial and legal responsibilities.
You're expected to be a source of inspiration. People look up to you as a person with
authority, and as a figurehead.
2) Leader This is where you provide leadership for your team, your department or
perhaps your entire organization; and it's where you manage the performance and
responsibilities of everyone in the group.
3) Liaison Managers must communicate with internal and external contacts. You need
to be able to network effectively on behalf of your organization.

Informational Category
The managerial roles in this category involve processing information.
1) Monitor In this role, you regularly seek out information related to your organization
and industry, looking for relevant changes in the environment. You also monitor your
team, in terms of both their productivity, and their well-being.
2) Disseminator This is where you communicate potentially useful information to your
colleagues and your team.
3) Spokesperson Managers represent and speak for their organization. In this role you're
responsible for transmitting information about your organization and its goals to the
people outside it.

Decisional Category
The managerial roles in this category involve using information.
1) Entrepreneur As a manager, you create and control change within the organization.
This means solving problems, generating new ideas, and implementing them.
2) Disturbance HandlerWhen an organization or team hits an unexpected roadblock, it's
the manager who must take charge. You also need to help mediate disputes within it.
3) Resource Allocator You'll also need to determine where organizational resources are
best applied. This involves allocating funding, as well as assigning staff and other
organizational resources.
4) Negotiator You may be needed to take part in, and direct, important negotiations
within your team, department, or organization.
Do you know the levels of management in your organization?

Managers are organizational members who are responsible for the work performance of
other organizational members. Managers have formal authority to use organizational resources
and to make decisions. In organizations, there are typically three levels of management: top-
level, middle-level, and first-level. These three main levels of managers form a hierarchy, in
which they are ranked in order of importance. In most organizations, the number of managers
at each level is such that the hierarchy resembles a pyramid, with many more first-level
managers, fewer middle managers, and the fewest managers at the top level. Each of these
management levels is described below in terms of their possible job titles and their primary
responsibilities and the paths taken to hold these positions. Additionally, there are differences
across the management levels as to what types of management tasks each does and the roles
that they take in their jobs. Finally, there are a number of changes that are occurring in many
organizations that are changing the management hierarchies in them, such as the increasing use
of teams, the prevalence of outsourcing, and the flattening of organizational structures.

TOP-LEVEL MANAGERS
Top-level managers, or top managers, are also called senior management or executives. These
individuals are at the top one or two levels in an organization, and hold titles such as: Chief
Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO),
Chief Information Officer (CIO), chairperson of the Board, President, Vice president, and
corporate head.

Often, a set of these managers will constitute the top management team, which is composed of
the CEO, the COO, and other department heads. Top-level managers make decisions affecting
the entirety of the firm. Top managers do not direct the day-to-day activities of the firm; rather,
they set goals for the organization and direct the company to achieve them. Top managers are
ultimately responsible for the performance of the organization, and often, these managers have
very visible jobs.

Top managers in most organizations have a great deal of managerial experience and have
moved up through the ranks of management within the company or in another firm. An
exception to this is a top manager who is also an entrepreneur; such an individual may start a
small company and manage it until it grows enough to support several levels of management.
Many top managers possess an advanced degree, such as a Masters in Business Administration,
but such a degree is not required.

Some CEOs are hired in from other top management positions in other companies. Conversely,
they may be promoted from within and groomed for top management with management
development activities, coaching, and mentoring. They may be tagged for promotion through
succession planning, which identifies high potential managers.
MIDDLE-LEVEL MANAGERS
Middle-level managers, or middle managers, are those in the levels below top managers.
Middle managers' job titles include: General Manager, Plant manager, Regional manager, and
Divisional manager.

Middle-level managers are responsible for carrying out the goals set by top management. They
do so by setting goals for their departments and other business units. Middle managers can
motivate and assist first-line managers to achieve business objectives. Middle managers may
also communicate upward, by offering suggestions and feedback to top managers. Because
middle managers are more involved in the day-to-day workings of a company, they may
provide valuable information to top managers to help improve the organization's bottom line.

Jobs in middle management vary widely in terms of responsibility and salary. Depending on
the size of the company and the number of middle-level managers in the firm, middle managers
may supervise only a small group of employees, or they may manage very large groups, such
as an entire business location. Middle managers may be employees who were promoted from
first-level manager positions within the organization, or they may have been hired from outside
the firm. Some middle managers may have aspirations to hold positions in top management in
the future.

FIRST-LEVEL MANAGERS
First-level managers are also called first-line managers or supervisors. These managers have
job titles such as: Office manager, Shift supervisor, Department manager, Foreperson, Crew
leader, Store manager.

First-line managers are responsible for the daily management of line workersthe employees
who actually produce the product or offer the service. There are first-line managers in every
work unit in the organization. Although first-level managers typically do not set goals for the
organization, they have a very strong influence on the company. These are the managers that
most employees interact with on a daily basis, and if the managers perform poorly, employees
may also perform poorly, may lack motivation, or may leave the company.

In the past, most first-line managers were employees who were promoted from line positions
(such as production or clerical jobs). Rarely did these employees have formal education beyond
the high school level. However, many first-line managers are now graduates of a trade school,
or have a two-year associates or a four-year bachelor's degree from college.
Observe the managers in your organization. Are they playing their roles effectively?

The primary challenge faced by organizations and managers today is to creatively solve
business problems. The principles of management are guidelines using which managers can
tackle business challenges.

The principles of management have been categorized into the four major functions of planning,
organizing, leading, and controlling popularly known as the P-O-L-C framework.

The P-O-L-C Framework

Defining Organization Vision & Mission


Setting Goals & Objectives
Planning
Strategizing
Plan of Action to Achieve Goals

Formulate Organizational Structure


Organizing Resource Allocation
Job Design

Leadership & Direction


Leading Motivation
Coordination & Communication

Process & Standards


Controlling Review & Evaluation
Corrective Action

Planning
Planning is the first and the most important function of management that involves setting
objectives and determining a course of action for achieving those objectives. Planners are
essentially the managers who are best aware of environmental conditions facing their
organization and are able to effectively analyze and predict future conditions. It also requires
that managers should be good decision makers.
Planning involves selecting missions and objectives and the actions to achieve them, it requires
decision making, i.e. choosing future courses of action from among alternatives.
Planning means determining what the organizations position and situation should be at some
time in the future and deciding how best to bring about that situation. It helps maintain
managerial effectiveness by guiding future activities.

Planning as a process typically involves the following steps

Selection of goals for the organization.


Establishment of goals for each of the organizations sub-units.
Establishment of programs for achieving goals in a systematic manner.

Types of Planning

Strategic planning involves analyzing competitive opportunities and threats, as well as


the strengths and weaknesses of the organization. It also involves determining how to
position the organization to compete effectively in their environment.

Tactical planning is creating the blueprint for the lager strategic plan. These plans are
often short term and are carried out by middle-level managers.

Operational planning generally covers the entire organizations goals and objectives
and put into practice the ways and action steps to achieve the strategic plans. They are
very short terms usually less than a year.

Organizing

Once a manager has created a work plan, the next phase in management cycle is to organize
the people and other resources necessary to carry out the plan. Organizing should also consider
the resources and physical facilities available, in order to maximize returns with minimum
expenditure.

Organizing may be referred to as the process of arranging and distributing the planned work,
authority and resources among an organizations members, so they can achieve the
organizations goals.

Organizing involves the following steps

Creating the organizational structure The framework of the organization is


created within which effort is coordinated allocating human resources to ensure the
accomplishment of objectives. This structure is usually represented by an
organizational chart, which is a graphic representation of the chain of command within
an organization.

Making organizational design decisions Decisions are made about the structure of
an organization.

Making job design decisions Roles and responsibilities of individual jobs, and the
process of carrying out the duties is defined.

Organizing at the level of a particular job involves how best to design individual jobs so as to
most effectively utilize human resources. Traditionally, job design was based on principles of
division of labor and specialization, which assumed that the more narrow the job content, the
more proficient the individual performing the job could become.

Leading

Organizations as they grow, develop complex structures with an increasing need for co-
ordination and control. To cope and manage such situations, leadership is necessary to
influence people to cooperate towards a common goal and create a situation for collective
response.

Leading entails directing, influencing, and motivating employees to perform essential tasks. It
also involves the social and informal sources of influence to inspire others. Effective managers
lead subordinates through motivation to progressively attain organizational objectives.
Personality research and study of job attitudes in Behavioral Science provides important
insight on the need for coordination and control. Thus it becomes important for leadership to
create harmony among individual efforts to collectively work towards organizational goals.

Controlling

Managers at all levels engage in the managerial function of controlling to some degree. Two
traditional control techniques are budget and performance audits. An audit involves a physical
examination and verification of the organizations records and supporting documents. A
budget audit provides information about where the organization is with respect to procedures
followed for financial planning and control, whereas a performance audit might try to
determine whether the figures reported are a reflection of actual performance.

Controlling involves measuring performance against goals and plans, and helping correct
deviations from standards. As a matter of fact, controlling facilitates the accomplishment of
plans by ensuring that performance does not deviate from standards.

Controlling is not just limited to organizations financial state, but also spans across areas like
operations, compliance with company policies and other regulatory policies, including many
other activities within the organization.

The management functions thus most effectively cover the broad scope of a managers duties
and responsibilities. Though the nature and complexities faced by businesses have undergone
a vast change over the years, the functions of management remain the same.

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