Модуль6. Основы управления. Менеджер и его роль. Виды управления. Управление на железнодорожном транспорте Text1. About Management

Management is the process of coordinating material, financial, information and human resources to achieve the goals of the organisation. Material resources are physical resources used by the organisation. Financial resources are the funds the organisation uses to meet its obligations to investors and creditors. Information resources refer to information on what is changing and how it is changing. The most important resources are human resources. The way the employees are developed and managed may have even bigger impact on the organisation than other things such as marketing, sound financial decisions, production or technology.

The basic management functions are planning, organising, leading, motivating, and controlling. Let’s consider them in detail.

1. Planning is establishing the organisation's goals and deciding how to accomplish them. There are different kinds of planning. Strategic planning is the process of establishing major goals and objectives and allocating resources to achieve them.

A goal is an end result that the organisation is expected to achieve over a one- to ten-year period. An objective is a specific statement detailing what the organisation intends to accomplish over a shorter period of time. Goals and objectives may deal with such things as sales, company growth, costs, and customer satisfaction. Goals are set at every level of the organisation from the CEO down to the operation employees.

The company’s strategy is the broadest set of plans, developed as a guide for major policy settings and decision making.

A strategic plan is set by the Board of Directors and top management.

A tactical plan is a small-scale plan developed to implement a strategy. It is developed for a 1-3 year period, and updated as information becomes available or conditions change.

An operational plan is a type of plan designed for a year or less to implement tactical plans.

A contingency plan is a back-up plan that outlines alternative courses of action if the organisation’s original plans are disrupted or become ineffective.

2. Organising is grouping the resources and activities to accomplish some end result in an efficient and effective manner. The work of the entire organisation is divided into separate parts and these parts are assigned to the certain positions within the organisation. Various positions are grouped into departments, and responsibility and authority are distributed among them. Then it is necessary to determine the number of subordinates who will report to each manager and to establish the chain of command – who has direct authority and who is in a support role.

3. Leading is the process of influencing people to work towards a common goal.

4. Motivating is providing reasons for people to work: money, status, career development, and so on.

5. Directing is the combined process of leading and motivating.

6. Controlling is evaluating and regulating ongoing activities to ensure that goals are achieved. It includes three steps: setting standard performance, measuring actual performance and comparing it to the standards, and taking corrective action. These steps must be repeated periodically until the goal is achieved.

Answer the questions:

1. What is management?

2. What are the functions of management?

3. What is planning?

4. What kinds of plans do organisations develop?

5. What does the strategic plan refer to?

6. What does the tactical plan introduce?

7.Why are operational and contingency plans necessary for the organisation?

8. What does organising as a function of management mean?

9. Why is motivating important?

10. What steps does controlling include?

Text 2. Business Management and Public Administration

Every modern society is made up of business and public organisations such government departments, unions, hospitals, libraries and the like. They are essential to our existence and help to create the standards of living and to improve the quality of life. In all these organisations there are people carrying out the work of a manager though they may not have this title. Thus, the mayor of the town, the vice-chancellor of the university, the president of the local trade union or the chief librarian are all mangers. They have a responsibility to use the resources of their organisations effectively and economically to achieve the goals. Are there certain activities common to all managers? A French industrialist Henri Fayol gave a classic definition of a manager's role which is still actual. He said that to manage is to forecast and to plan, to organise and to command, to coordinate and to control.

Time has passed and people have collected a lot of data of how to carry out and manage routine operations to gain maximum productivity. The principals of scientific business management were taken as the model for the proper management of government. Nowadays public administration may be regarded as a field of business because management of all organisations in both private and public sectors involves planning the activities and establishing the goals, organising, staffing and training as well as directing, decision making and budgeting to assure that work activities fully correspond to fiscal planning, accounting and control.

As for the term administration it is much wider than management. Administration takes place at factories, schools, hospitals, insurance companies and welfare agencies whether these organisations are public or private. That is why researchers and scientists trend to use a new term of business and public administration.

However, the difference between administration of business and administration of public organisation is obvious. Thus, studying public administration one should take into account not only subjects equal for both private and public organisations but also those specific surroundings or the mix of administration, policy making and politics in which public servants have to work. Besides, public organisations are more dependant on government allocations, political influences and law. These differences should be taken into consideration as well applying business management techniques to government agencies and municipal organisations.

Answer the questions:

1. What is the modern society made up of?

2. Why are public and private organisations important to people?

3. What type of functions do public administrators usually carry out?

4. What activities are common to all managers and administrators?

5. Who gave the first definition of a manager's role ?

6. What principles were taken as a model for the proper management of government.

7. Why is the term administration wider than the term management?

8. What collocation defining administration functions do modern scientists use nowadays?

9. What should one take into consideration studying public administration?

10. Why is public administration more dependent than business management?

Text 3. Managers and their Responsibilities

Management is the art of getting things done through other people. It includes the personnel who has the right to make decisions that influence a company’s affairs. Decision making is the most important responsibility of any manager. It can be divided into recognizing the problem, defining and analysing the problem, evaluating alternative solutions, with choosing the most favourable ones and implementing the approach chosen.

Managers must carefully diagnose situations; use their abilities 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. It’s very important to remember that successful management is a skill of choosing from the alternatives and it is based on three basic elements: leadership, motivation and communication.

The main functions of management are planning, organising, directing, controlling, staffing and innovating. All these functions are implemented at three levels of the organisational structure. They are 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 organisation. They are Presidents, Vice Presidents, Chief Executive Officers and Members of the Board.

Middle managers develop tactical plans, policies and coordinate the activities of first-line managers. They are department managers, plant managers, etc.

First-line managers are managers who coordinate and supervise the activities of operating employees. They are supervises, foremen, etc.

Operating employees are not managers. They are qualified and non-qualified persons working for the organisation.

An organisational structure can also be divided horizontally into areas of management. The most common areas are finance, operations, human resources and administration. Also it may include research and development or risk management. A financial manager is primarily responsible for the organisation’s financial resources. An operating manager creates and manages the system that converts resources into goods and services. A marketing manager is responsible for the exchange of products between the organisation and its customers. A human resources manager is in charge of the organisation’s human resources programmes. An administrative manager provides overall administrative leadership and coordinates the activities of specialized managers in all these areas.

Managers of every level and area of the organisation should have management skills because effective management is the key to business success.

Answer the questions:

1. What is management?

2. What is the most important responsibility of any manage?

3. What management functions can you name?

4. What are the main levels of management?

5. What is top management responsible for?

6. What are the duties of first-line managers?

7.Who are operating employees?

8. What are the most common areas of management?

9. What is a financial manager responsible for?

10. What is a marketing manager responsible for?