The role of management is to add value to resources
- Explain that the role of management is to add value to resources
Managers create value by transforming inputs into outputs of greater value: they do this by developing competencies within the organization that, by constantly adding value (however measured) to resources, are able to survive and prosper. The concept of creating value is subjective and open to different interpretations. Managers work in an infinite variety of settings.
2. Give examples of management as a universal human activity and as a distinct role
Management is an activity that everyone undertakes to some extent as they manage their lives. In another sense management is an activity within organizations, conducted in varying degrees by many people. It is not exclusive to those called ‘managers’. People create a distinct role when they separate the work itself from the management of that work and allocate the tasks to others. The distinction between management and non-management work is fluid and the result of human action.
3. Compare the roles of general, functional, line, staff and project managers, and entrepreneurs:
General managers are responsible for a complete business or a unit within it. they depend on functional managers who can be either in charge of line departments meeting customer needs, such as manufacturing and sales or in staff departments such as finance that provide advice or services to line managers. Project managers are in charge of temporary activities usually directed at implementing change. entrepreneurs create new businesses, or new ventures in existing ones, to exploit opportunities.
- Explain how managers influence others to add value to resources through:
- The processes of managing. rosemary Stewart drew attention to the fragmented and interrupted nature of management work, while Mintzberg identified ten management roles – grouped as informational, interpersonal and decisional. Luthans and more recently Moser found that successful managers were likely to be those who networked widely with people inside and outside of the organization.
- The tasks (or content) of managing. Planning develops the broad direction of an organization’s work, to meet customer expectations, taking into account internal capabilities. Organizing is the activity of deciding how to deploy resources to meet plans, while leading seeks to ensure that people work with commitment. Control monitors activity against plans so that people can adjust either if required.
- The contexts within which people work. The internal context consists of eight elements that help or hinder the manager – objectives, technology, business processes, finance, structure, culture, power and people. The historical context also influences events, as does the external context of competitive and general environments.
- Explain the elements of critical thinking and understand how to use these to develop your networking skills:
- Critical thinking is a positive approach to studying, as it encourages people to develop the skills of identifying and challenging assumptions, recognising the importance of context, imagining and exploring alternatives and seeing the limitations of an idea.
- Developing networking skills is likely to be more effective if a manager questions the assumption that networking is always appropriate, and whether or not their context encourages the practice or not. They are also likely to benefit more if they seek alternative ways to network, and are conscious of the possible limitations of the practice.
- Integrating themes
- Entrepreneurship. research by Shaw (2006) shows that entrepreneurs depend very heavily on a network of informal contacts to get things done.
- Sustainability. Adding value has traditionally been measured primarily in economic terms, but can also be measured by ‘the triple bottom line’ – profit, people, planet.
- Internationalisation is a pervasive theme in discussing management, and affects eachaspect of the management role.
- Public criticism of corporate scandals and failures has increased interest in corporate governance methods, which are intended to oversee the activities of management.