2. Management

Management is the process undertaken by one or more persons to coordinate the activities of other persons to achieve high-quality results. We believe the job of managing is one of the most exciting and personally rewarding positions a person can possibly hold. The manager's job is critically important because managers make a difference in how our society functions and in the standard of living we enjoy. Each organization can be represented as a three-story structure. Each story corresponds to one of the three general levels of management: top managers, middle managers, and first-line managers. At the basic level of this pyramid there are operating employees.

Top managers are upper-level executives who guide and control the overall activities of the organization. They are President, Vice President, Chief Executive Officer.

Middle managers develop tactical plans, policies, and standard operating procedures and they coordinate and supervise the activities of first-line managers.

A first-line manager is a manager who coordinates and supervises the activities of operating employees.

Operating employees are qualified and non-qualified persons working for the organization. For their labour or services they get salaries or wages. They represent the work force of the organization. Managers at every level of the organization do planning. Through their plans, managers outline what the organization must do to be successful.

An organizational structure can also be divided more or less horizontally into areas of management. The most common areas are finance, operations, marketing, human resources, and administration. Also may include research and development or risk management.

The horizontal classification can be displayed the following way: a financial manager, a marketing manager, an operating manager, a human resources manager, an administrative manager.

A financial manager is primarily responsible for the organization's financial resources. An operating manager creates and manages the systems that convert resources into goods and services. A marketing manager is responsible for the exchange of products between the organization and its customers or clients. A human resources manager is in charge of the organization's human resources programs. An administrative manager provides overall administrative leadership. An administrative manager coordinates the activities of specialized managers in all these areas of the company.

Managers must carefully diagnose situations, use their abilities, skills, and knowledge to weigh all facts. Managers can't give “maybe” answers. They usually have to say yes or no and then defend their response. A good manager has to have such categories of skills as: conceptual, decision making, analytic, administrative, communicational, interpersonal and technical. For example, decision making skills are the ability of a manager to choose the best course of actions of two or more alternatives.

A manager must decide the following:

• What objectives and goals must be reached?

• What strategy must be implemented?

• What resources must be used and how must they be distributed?

• What kind of control is needed?

Conceptual skills are very important for top managers because they help them plan “super goals”. The job of managing and working with people is difficult. But few careers are as stimulating as of a manager.

Questions:

1. What are the levels of management?

2. What are the common titles associated with top management?

3. Who is the bottom of the management?

4. What are the most common areas of management?

5. What is a financial manager responsible for?

6. What is an operating manager traditionally equated with and what are the changes in recent years?

7. What is a marketing manager responsible for?

8. What does an administrative manager coordinate?

9. What categories of skills do you know?

10. Explain the types of skills that managers need to achieve their goals.