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Role of A Manager

Role of manager in managerial economics

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0% found this document useful (0 votes)
386 views12 pages

Role of A Manager

Role of manager in managerial economics

Uploaded by

rajdas000211
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Role of a manager

A manager is a person in the organization who directs the activities of others. The
managers perform their work at different levels and they are called by different names. The
first line managers are usually called supervisors or in a manufacturing they may be called
foremen. Middle level mangers include all levels of management between the supervisory
level and the top level of the organization.
These managers may be called functional managers, plant heads, and project managers.
Near the top of hierarchy, there may be top managers who are responsible for making
organizational decisions and setting policies and strategies that affect all the aspects of the
organization. These persons may be called vice-president, managing director, chief executive
officer or chairman of the board etc.
Managerial Functions:
A manager has to perform functions like planning, organizing, staffing, directing and
controlling. All these functions are essential for running an organization smoothly and
achieving enterprise objectives. Planning is required for setting goals and establishing
strategies for coordinating activities.
Organization helps in determining what tasks are to be done, how to do them, how to
group the tasks and where decisions are to be made. Staffing function is essential for
employing various types of persons and performing various activities like training,
development, appraisal, compensation, welfare etc.
The directing function requires giving instructions and motivating sub-ordinates to
accomplish their goals. A manager has to perform the controlling function for monitoring
activities to ensure that they are being accomplished as planned and correcting any significant
deviations.
Managerial Skills:
A manager has to perform a number of jobs. It necessitates that a manager should have
proper skills to perform different jobs.
Henry Fayol put the qualities required by managers into the following categories:
(i) Physical – health, vigour, address.
(ii) Mental – ability to understand and learn; judgement, mental vigour and adaptability.
(iii) Moral – energy, firmness, willingness to accept responsibility, initiative, loyalty, tact,
dignity.
(iv) Educational – general acquaintance with matters not belonging exclusively to the function
performed.
(v) Technical – peculiar to the function.
(vi) Experience – arising from the work proper.
Robert L. Katz conducted research during early 1970’s and found that managers need
three essential skills or competencies; technical, human and conceptual. He also found that the
relative importance of these skills varied according to the manager’s level within the
organization.
Technical Skills:
A manager must have the necessary technical skills or the ability to work with the
resources, tools, techniques, procedures etc. First line managers as well as many middle
managers have involved in technical aspects of the organization’s operations. Technical skills
include knowledge of and proficiency in certain specialized such as engineering, computers,
finance or manufacturing. Even though the need for technical skills is less when a manager
moves higher in hierarchy but still technical proficiency helps in taking decisions.
Human Skills:
It is the ability to work well with other people both individually and in a group.
Managers with human skills can get best out of the people working with them. They know
how to communicate, motivate, lead and inspire enthusiasm and trust. These skills are needed
by managers at every level but top managers need them the most.
Conceptual Skills:
Conceptual skills are the ability to integrate and coordinate various activities. Managers
must have the ability to think and to conceptualize about abstract solutions. They must be able
to see the organization as a whole and the relationships among its various subunits and to
visualize how the organization fits into its broader environment. Conceptual skills are helpful
in decision-making. Since all managers have to take decisions so these skills are essential for
all managers but these become more important as they make up the organizational hierarchy.
These skills can be depicted in a diagram:
Qualities of a Manager:
A manager has to undertake a number of functions from planning to controlling. He has
to take decisions for every type of activity. The decisions of the manager influence the working
of an organization.
He should have the following qualities so for performing his work properly:
1. Education:
A manager must have proper educational background. These days managers are
supposed to have management education, besides other educational qualifications. Education
not only widens mental horizon but also helps in understanding the things and interpreting
them properly. The knowledge of business environment is also important for dealing with
various problems the organization may face.
2. Intelligence:
A manager has to perform more responsibilities than other persons in the organization.
He should have higher level of intelligence as compared to other persons. Intelligence will
help a manager in assessing the present and future possibilities for the business. He will be
able to foresee the things in advance and take necessary decisions at appropriate time.
3. Leadership:
A manager has to direct and motivate persons working in the organization. He will
provide leadership to subordinate. The energies of the subordinates will have to be channelize
of properly for achieving organizational goals. If a manager has the leadership qualities then
he can motivate subordinates in improving their performance and working to their full capacity
for the benefit of the organization.
4. Training:
A manager has to acquire managerial skills. These skills consist of technical skills,
human skills and conceptual skills. These skills have to be acquired through education,
guidance, experience etc. These skills are needed for all levels of managers.
5. Technical Knowledge:
A manager should have technical knowledge of production processes and other
activities undertaken in the enterprise. He will be in a better position to inspect and guide if he
himself has a knowledge of those activities.
6. Maturity:
A manager should have mental maturity for dealing with different situations. He should
be patient, good listener and quick to react to situations. He has to take many awkward
decisions which may adversely affect the working if not taken properly. He should keep calm
when dealing with subordinates. All these qualities will come with mental maturity.
7. Positive Attitude:
Positive attitude is an asset for a manager. A manager has to deal with many people
from inside as well as from outside the organization. He should be sympathetic and positive
to various suggestions and taken humane decisions. He should not pre-judge the things and
take sides. He should try to develop good relations with various persons dealing with him. He
should understand their problems and try to extend a helping hand.
8. Self-confidence:
A manager should have self- confidence. He has to take many decisions daily, he may
analyse the things systematically before taking decisions. Once he takes decisions then he
should stick to them and try to implement them. A person who lacks self-confidence will
always be unsure of his decisions. This type of attitude will create more problems than solving
them.
9. Foresight:
A manager has to decide not only for present but for future also. There are rapid changes
in technology, marketing, consumer behaviour, financial set up etc. The changes in economic
policies will have repercussions in the future. A manager should visualize what is going to
happen in future and prepare the organization for facing the situations. The quality of foresight
will help in taking right decisions and face the coming things in right perspective. In case the
things are not rightly assessed then the organization may face adverse situations.

Role of the Manager:


A role is concerned with the behaviour pattern of a manager within an organization.
Henry Mintzberg did a careful study of five chief executives at work in the late 1960’s. He
discovered that the role of a manager is quite different from the notions held at that time. For
instance, the prominent view at that time was that managers were reflective thinkers who
carefully and systematically processed information before taking decisions.
Mintzberg found that his managers were engaged in a large number of varied, un-
patterned, and short-duration activities. There was little time for reflective thinking because
managers encountered constant interruptions. Mintzberg provided a categorization scheme for
defining what managers do based on actual managers on the job. He concluded that managers
perform ten different but highly interrelated roles. The term management roles refer to specific
categories of managerial behaviour. Table gives the ten different roles of the manager.
Table. Mintzberg’s Different Managerial Roles
Interpersonal Roles:
A manager has to perform some duties as a figurehead. He may receive the guests from
outside or preside over a social function of employees. He may have to sign some legal
documents as head of the organization. These are the roles played as figurehead. He has also
to act as leader when he has to sort out the activities of subordinates. He has not only to
motivate the employees but is also involved in hiring, firing and discipline employees. The
third role in interpersonal roles is of liaisoning. He has to contract outside agencies for
collecting business related information. The outside information providers may be individuals
or groups.
Informational Roles:
All managers are required to perform informational roles. They have to collect
information from organizations and institutions outside their own. Managers also play the role
of disseminators when they supply information to subordinates in the organization. This
information is factual as well as with interpretations for the benefit of users. A manager acts
as a spokesperson when he represents the organization to outsiders.
Decisional Roles:
According to Mintzberg, a manager performs four decisional roles. He initiates and
oversees new projects for the improvement of organizational performance, this is the
entrepreneurial role played by him. As disturbance handler, manager takes corrective actions
in response to previously unforeseen problems. He also acts as resource allocation when he
assigns and monitors the allocation of human, physical, and monetary resources. He acts as a
negotiator when he discusses and bargains with other groups to gain advantage for his own
unit.
Environment and Managers Roles:
The word environment is a collectively of all factors within the control of business and
beyond the control of the individual business. Environment is a macro concept and a business
unit is a macro business. A business operates within the given environmental factors. The
environment may be external as well internal.
The external and internal environments have been explained below:
External Environment:
External environment greatly influences the working of every business.
External environment may have the following components:
1. Economic
2. Technological
3. Social
4. Political
5. Ethical
1. Economic Environment:
Economic environment constitutes of factors like capital, labour, suppliers, customers
and consumers.
(a) Capital:
Capital consists of owner’s funds and borrowed funds. Borrowed funds are supplied by
investors and creditors. Business needs for funds arise for purchaser of plant and machinery,
land and building, equipment, materials, payments to labour and other day to day expenses.
These needs are met both from internal sources and external sources. A manager has to remain
in touch with investors and creditors for meeting financial needs of the business at the time of
need.
(b) Labour:
The labour normally comes from nearby surroundings. Labour unions try to regulate
labour supply. A manager has to assess his labour requirement, its quality and price etc. He
has to maintain contacts with trade unions and see that the unit is not adversely affected by
labour supply.
(c) Suppliers:
The suppliers are an important element of external environment. The supplier includes
those of raw materials, equipment’s, machinery etc. There is a need to have regular liaison
with suppliers to know the latest quality of goods available in the market and to ensure supplies
as per requirements.
(d) Customers and Consumers:
The customers and consumers are the backbone of a business. Manager should know
the needs and preferences of these people through market segment. The goods and services
are produced as per the likings of customers and consumers. New products and services are
also brought out to keep the tempo of marketing efforts. While keeping inter-personal relations
with customers, the manager keep himself abreast about the competitors also.
2. Technology:
The state of technology greatly influences the operations of an enterprise. It is concerned
with inventions and techniques. The technological changes may give birth to new products as
well as new industries. One has to keep a watch on the developing situation of technology and
think of the ways for making its use. The manager has to keep himself abreast of the
technological developments particularly in product improvement and new opportunities.
3. Social Environment:
A business is directly influenced and affected by prevalent social environment. Society
provides labour force to the business and has consumers for the products and services. In a
democratic set up, as at present, a manager comes in contact more than often with the people
in all walks of life, various social organizations, educational institutions etc. All these contacts
are useful and essential for the business because it depends upon the society for various inputs
as well as outputs. The very survival of business depends upon society.
4. Political Environment:
The political system prevailing in a country influences business decisions. In a
democratic set up, the ideology of the ruling party influences economic and business policies.
A business manager has to cope with the thinking of the ruling party in following economic
policies. The rules, regulations and laws of the country affect the day to day activities of the
enterprise. A business has to comply with sales and excise laws, labour laws, taxation laws
etc. A manager should be well conversant with prevailing political environment and try to
benefit from various schemes and programmes of the government.
5. Ethical Environment:
A manager has to keep in mind the ethical environment prevailing in business while
running his unit. Ethics are generally accepted and practiced standards expected from business
managers. These ethics are influenced by the expectations of society, employees, government
etc. from the business. A manager should aim at fair dealings with everyone coming in contact
with business. There should be a clear perception about what is to be done and what is not to
be done. A manager should not only be aware of business ethics but should ensure their proper
implementation also. This will create confidence in employees and public about the fair
dealings of the business.
Internal Environment:
Internal environment is concerned with the day to day working of the organization. A
manager plays a vital role in the organization. He provides leadership to others, coordinates
the activities of employees, delegates authority to subordinates, takes important decisions,
looks after human relation activities, acts as a spokesman for the organization etc. All these
roles make the job of a manager very important for harmonious working. Important roles of a
manager are as follows:
As a Leader:
An organization comprises of a number of persons working for different jobs. These
persons need the guidance and direction for working towards a common goal. A manager plays
the role of a leader while defining the activities and objectives of various persons in the
organization. He helps in creating right type of atmosphere and homogeneity within the work-
group. The quality of leadership will influence the actions and performance of the group led
by him.
As a Coordinator:
As a coordinator, a manager puts various resources, physical as well as human, together
for achieving organizational goals. He mobilizes various resources, brings about intelligent
understanding and goodwill among employers for completing enterprise work. Proper co-
ordination will be possible with the help of effective communication. A manager should create
good communication system so that various activities are properly coordinated.
Delegator of Authority:
Delegation of authority means giving important work to the subordinates. A manager
cannot undertake every work himself. He will have to rely on subordinates by assigning them
responsibilities and by delegating requisite authority to can them out. The subordinates will
gain confidence when they undertake some work independently and will be readied for higher
responsibilities. A manager has an important role in encouraging subordinates to take up
suitable work as per their capabilities and expertise and prepare the next line of executives. He
will have to create proper communication system so that subordinates are able to get regular
guidance and response for the activities taken up by them.
As a Decision-Maker:
Decision-making is one of the important functions of a manager. He has to take
decisions for various activities. Decision-making requires broad vision, imagination,
experience and knowledge. A decision has to be taken after discussing various aspects of the
problem, analysing them, developing possible alternatives and selecting the appropriate one.
The timing is also an important element of decision-making.
A decision made at a right time will bring good results. A manager has to develop
consistency, firmness and conviction in his decisions. A manager changing his decisions
frequently may leave his subordinates in doubt. A decision-making skill and ability to take
correct decision at appropriate time will become a guideline for the subordinates.
Human Relations Practitioner:
A manager has to handle personnel problems of the employees. Management tries to get
maximum out of the employees and efforts are made to improve productivity in the
organization. The employees also face problems and have grievances against their superiors
or the management.
A manager should have an insight into the problems and grievances of employees and
redress them in such a way that they feel satisfied and motivated. He should encourage
participation of subordinates in decision-making process. Human relations problems can also
be tackled timely if proper communication system is maintained with all the employees
working in the organization.
As a Spokesman of Organization:
A manager acts as a spokesman for the organization. He deals with outsiders and
provides them with requisite information required by them. He also maintains proper relations
with all interest groups including shareholders, employers, customers, suppliers, government
etc. For performing the role of a spokesman, a manager should have an understanding of
principles of creating public understanding and the benefits of keeping the public informed A
spokesman helps in creating a good image of the organization not only among employers but
also among outsiders.
Modern Challenges for Managers:
Every business has to cope with the external environment prevailing at different times.
This environment provides a set of outside challenges that is difficult to control. These factors
may have an important impact on how well a manager performs. To ensure survival,
organizations must respond to environmental developments with speed and effectiveness. We
are discussing here some key challenges such as information technology, globalization and
intellectual capital which have an impact on the job of managing.
Information Technology (IT):
There is a revolution in information technology. There are computers, internet, intranets,
telecommunications, and infinite range of software applications available to get for getting the
things done in a better way. A manager has to make a choice for using the best technology
available. Many concerns have employed specialists for making a proper selection of hardware
and software available at that time.
Managers must use technology to perform their work and achieve desired results. The
selection of IT must be made by keeping in view the end user and work to be completed.
Managers must learn how to work with IT specialists to determine the most effective
technologies for the work to be achieved and then consider the best way to implement those
technologies. Managers have to determine the best way to network an organization’s system,
also deciding about what network information will be available to whom and what types of
security are necessary to protect the network.
Information technology will be successfully implemented only if the employees are
properly trained to use it. Effective managers ensure that employees are associated at the time
of selection and implementation of technology. The IT challenge that modern managers face
is likely to continue unabated. Personal computers (PC) started about 26 years earlier and
internet was started about 10 years back. All these developments have greatly influenced the
work place.
The use of this technology has improved the work performance of employees. IT adept
managers will have a bright future. Some may start working for more than one organization
without leaving their home office. Managers must remain aware of the opportunities and
threats posed to the organizations by the unabated technology revolution.
Globalization:
The communication revolution has brought the whole world closer. The use of satellites
for information communication has improved the things fast. The major component of
globalization of business, culture and economics is the ability and freedom to connect to almost
anyone, anytime, anywhere. The communication revolution has helped the development of
global trading blocks and world trade agreements.
The trading blocs such as North American Free Trade Agreement (NAFTA), Latin
America’s MERCOSUR, Asia’s ASEAN and European Union (EU) have originated in the
past twenty years. It does not look strange that European countries which were fighting the
wars during World Wars have now joined hands for economic interests. The creation of World
Trade Organization (WTO) has facilitated the opening of markets for world trade.
The multinational companies have started shifting their manufacturing activities to
those countries where cheap and trained labour is available. This has helped these companies
in reducing the costs of the products. The opening up of Indian markets to multinational
companies has changed the complexion of markets. The Indian producers are now trying to
improve the quality of products and supplying goods at competitive rates. The consumers are
the happiest lot in globalized marketing.
A manager has to plan his business strategies by keeping in view the world economy.
He has to prepare the organization for facing the new competition. Managers must find ways
to beat foreign competition on price and quality as consumer choices widen. The globalization
trend is not likely to change in future; the best thing is to face it. Modern managers should be
mentally prepared to face the global competition in the future.
Intellectual Capital:
Intellectual capital is relatively recent term that has been coined to reflect that principal
asset of modern organizations lie in the minds of their workers rather than in machinery, bricks
and mortar. Thomas Stewart has defined intellectual capital as the “intellectual material-
knowledge information, intellectual property, experience-that can be put to use to create
wealth. It is the sum of everything everybody in a company knows that gives it a competitive
edge.” During 19th century and early part of 20th century the main profession used to be
agriculture. Most of the people were directly or indirectly engaged in agriculture.
During the second and third decades of 20th century people started shifting from
agriculture to manufacturing. The World War II gave Phillip to manufacturing industries
because of war requirements of the countries. In the second half of 20th century information
revolution was felt. During 1970’s manager began to discover that they could gain efficiencies
and competitiveness by making use of information technology. The service sector expanded
rapidly during this period.
The application of information technology put additional burden on workers. They had
to first learn the use of this technology and then constantly make efforts for improving their
work. The highly educated workers were required to make full use of information technology.
The Knowledge Worker is quite different from the worker of F.W. Taylor. The knowledge
worker is expected to think of new and better things for improving his work and performing
the job in a best possible way.
In Taylor’s system, ‘one best way of doing the things’ was suggested by the supervisor
but the knowledge worker is supposed to determine his own best way of doing the things.
Today’s workers are also supposed to keep abreast with the new changes in the technology
and make use of it. They are expected help in improving the overall productivity of the
organization. Such workers are the intellectual capital that is the most important asset of the
modern organization.
Modern managers have to use techniques for capturing and using the knowledge
generated in the organization. In order to stay competition managers, have to use the
knowledge of workers which has been stored in their minds. They have to use techniques
which can help the best possible use of knowledge of workers for the betterment of the
organization.

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