Introduction to

Management

What Is Management?
Management involves coordinating
and overseeing the work activities of
others so that their activities are
completed efficiently and effectively.
Manage Men Tactfully

12

Management Defined
Management
The process of getting things done,
effectively and efficiently, through
and with other people
Efficiency
Means doing the thing correctly; refers to
the relationship between inputs and outputs;
seeks to minimize resource costs

Effectiveness
Means doing the right things; goal
attainment
13

What Is Management?
Management
The planning, organizing, leading, and controlling
of human and other resources to achieve
organizational goals effectively and efficiently.

Managers
The people responsible for supervising the use of
an organizations resources to meet its goals.

Resources are organizational assets

People
Skills Knowledge Information
Raw materials Machinery Financial capital

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Management Key Concepts

Organization
People working together and coordinating
their actions to achieve specific goals.

Goal/objective
A desired future condition that the
organization seeks to achieve.

Strategy
A cluster of decisions about what goals to
pursue, what actions to take, and how to use
resources to achieve goals.
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Organizations
Organization
A systematic arrangement of people brought
together to accomplish some specific
purpose; applies to all organizationsforprofit as well as not-for-profit organizations.
Where managers work (manage)

Common characteristics
Goals
Structure
People
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Common Characteristics of Organizations

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EXHIBIT 1.1
17

What Is Management?
Managerial
Concerns
Efficiency
Doing things right
Getting the most
output for the least
inputs

Effectiveness
Doing the right
things
Attaining
organizational goals
18

Exhibit 13 Effectiveness and Efficiency in

Management

19

Efficiency, Effectiveness, and Performance in an

Organization

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110

Figure 1.1

Efficiency and Effectiveness

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EXHIBIT 1.3
111

Organizational Performance
Organizational Performance
A measure of how efficiently and effectively
managers are using organizational resources to
satisfy customers and achieve goals.

To do the things right!

Efficiency

A measure of how well or productively resources

are used to achieve a goal.

To get the right things done!

Effectiveness

A measure of the appropriateness of the goals

an organization is pursuing and the degree to
which they are achieved.
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Why Study Management?

Proper management directly impacts
improvements in the well-being of a
society.
Studying management helps people
to understand what management is
and prepares them accomplish
managerial activities in their
organizations.
Studying management opens a path
to a well-paying job and a satisfying
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113

Why Study Management?

We all have a vested interest in improving
the way organizations are managed.
Better organizations are, in part, the result of
good management.

You will eventually either manage or be

managed
Gaining an understanding of the management
process provides the foundation for developing
management skills and insight into the
behavior of individuals and the organizations.
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Managerial Functions
Henri Fayol
First outlined the four managerial
functions in his book General Industrial
Management.
Managers at all levels in all
organizations perform each of the
functions of planning, organizing,
leading, and controlling.

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Four Functions of Management

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116

Figure 1.2

Management
Process
Activities

Management process:
planning, organizing,
leading, and controlling
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EXHIBIT 1.4
117

Planning
Identifying and selecting appropriate
goals and courses of action for an
organization.
The planning function determines how
effective and efficient the organization is and
determines the strategy of the organization.

Three Steps in the Planning Process:

Deciding which goals to pursue.
Deciding what courses of action to adopt.
Deciding how to allocate resources.
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Organizing
Structuring working relationships in a way
that allows organizational members to work
together to achieve organizational goals.
Organizational Structure
A formal system of task and reporting
relationships that coordinates and motivates
organizational members.
Creating organizational structure:
Grouping employees into departments according to
the tasks performed.
Laying out lines of authority and responsibility for
organizational members.
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119

Leading
Articulating a clear vision to follow,
and energizing and enabling
organizational members so they
understand the part they play in
attaining organizational goals.
Leadership involves using power,
influence, vision, persuasion, and
communication skills.
The outcome of leadership is highly
motivated and committed organizational
members.

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Controlling
Evaluating how well an organization is
achieving its goals and taking action to
maintain or improve performance.
Monitoring individuals, departments, and the
organization to determine if desired
performance standards have been reached.
Taking action to increase performance as
required.
The outcome of control is the ability to measure
performance accurately and to regulate the
organization for efficiency and effectiveness.
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121

Management Process
Planning
Includes defining goals, establishing strategy,
and developing plans to coordinate activities

Organizing
Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made
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Management Process
Leading
Includes motivating employees,
directing the activities of others,
selecting the most effective
communication channel, and resolving
conflicts

Controlling
The process of monitoring performance,
comparing it with goals, and
correcting any significant
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deviations
rights reserved.

Who Are Managers?

Manager

Someone who coordinates and

oversees the work of other people so
that organizational goals can be
accomplished.

124

What Managers Do
(Mintzberg)
Actions
thoughtful
thinking
practical doing

125

Being a Manager
High
HighVariety
Variety

Fragmentation
Fragmentation

Managerial
Managerial
Problems
Problems

Brevity
Brevity

Compensation to be a manager
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Levels of Management

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Figure 1.3

Classifying Managers
First-line Managers
Individuals who manage the work of nonmanagerial 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.
128

People Differences
Operatives
People who work directly on a job or
task and have no responsibility for
overseeing the work of others

Managers
Individuals in an organization who direct
the activities of others

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What Managers Do?

Three Approaches
Functions they perform.
Roles they play.
Skills they need.

130

Is The Managers Job

Universal?
Level in the organization
Do managers manage differently based on where they
are in the organization?

Profit versus not-for-profit

Is managing in a commercial enterprise different than
managing in a non-commercial organization?

Size of organization
Does the size of an organization affect how managers
function in the organization?

Management concepts and national borders

Is management the same in all economic, cultural, social
and political systems?
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Relative Amount of Time That Managers

Spend on the Four Managerial Functions

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Figure 1.4

Distribution of Time per Activity by

Organizational Level

Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll,

The Job(s) of Management, Industrial Relations 4, No.2 (1965), p.103.

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133

EXHIBIT 1.6

What is required out of a m

anager

Management Roles
Interpersonal
roles
Leade
Figurehe
r
ad
Negotiato
Manageri
Monito
r
r
al roles
Resourc
e
Allocato
Disturbanc
r
e handler
Spokesperso
Informational
n
Entreprene
Decisional
roles
ur

roles

Mintzbergs Managerial Roles

Interpersonal
Figurehead
Leader
Liaison

Decisional

Informational
Monitor
Disseminator
Spokesperson

Entrepreneur
Disturbance hander
Resource allocator
Negotiator

Source: Adapted from The Nature of Managerial Work (paperback) by H. Mintzberg, Table 2, pp.9293.
Copyright 1973 Addison Wesley Longman. Reprinted by permission of Addison Wesley Longman.

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EXHIBIT 1.5

IT and Managerial Roles

Information Technology (IT) is
increasingly used to help managers
adopt a cross-departmental view of
their organization.
Managerial Role
The set of specific tasks that a person is
expected to perform because of the
position he or she holds in the
organization.

Roles are defined into three role

categories (as identified by Mintzberg):
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137

Decisional Roles
Roles associated with methods managers use
in planning strategy and utilizing resources:
Entrepreneurdeciding which new projects or
programs to initiate and to invest resources in.
Disturbance handlermanaging an unexpected
event or crisis.
Resource allocatorassigning resources
between functions and divisions, setting the
budgets of lower managers.
Negotiatorreaching agreements between other
managers, unions, customers, or shareholders.
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138

Informational Roles
Roles associated with the tasks needed to
obtain and transmit information in the
process of managing the organization:
Monitoranalyzing information from both the
internal and external environment.
Disseminatortransmitting information to
influence the attitudes and behavior of
employees.
Spokespersonusing information to positively
influence the way people in and out of the
organization respond to it.
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Interpersonal Roles
Roles that managers assume to provide
direction and supervision to both
employees and the organization as a whole:
Figureheadsymbolizing the organizations
mission and what it is seeking to achieve.
Leadertraining, counseling, and mentoring
high employee performance.
Liaisonlinking and coordinating the activities
of people and groups both inside and outside
the organization/department.

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Importance of
Managerial Roles
in Small and
Large Businesses

Source: Adapted from J. G. P. Paolillo, The Managers Self Assessments of Managerial Roles:
Small vs. Large Firms, American Journals of Small Business, JanuaryMarch 1984, pp.6162.

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EXHIBIT 1.7

Managerial Skills
Conceptual Skills
The ability to analyze and diagnose a situation and distinguish
between cause and effect.
A managers mental ability to coordinate all of the
organizations interests and activities

Human Skills
The ability to understand, alter, lead, and control the behavior
of other individuals and groups.
A managers ability to work with, understand, mentor,
and motivate others, both individually and in groups

Technical Skills
The specific knowledge and techniques required to perform an
organizational role. A managers ability to use the tools,
procedures, and techniques of a specialized field
Political skills
A managers ability to build a power base and establish the right connections
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Skill Types Needed by Managerial

Level

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Specific Skills for Managers

Behaviors related to a managers
effectiveness:
Controlling the organizations environment
and its resources.
Organizing and coordinating.
Handling information.
Providing for growth and development.
Motivating employees and handling
conflicts.
Strategic problem solving.
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Utilizing Information Technology (IT)

and E-commerce
Benefits of IT and E-commerce
Makes more and better information about
the organization available to outsiders
Empowers employees at all organizational
levels
Helps managers carry out their roles more
effectively and efficiently
Increases awareness of competitive
opportunities
Makes the organization more responsive
to its customers
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 The Top Ten Characteristics Of

Excellent Leaders -The Mental
Game Of Business

Bill Cole, MS, MA

Founder and CEO
William B. Cole Consultants
Silicon Valley, California

And they are

The ability to learn from themselves and others, no matter the
situation.
A humbleness that is inspiring.
Integrity, honesty and a strong moral compass
Mental toughness and resilience under adversity.
Capacity for love, compassion, sensitivity and understanding.
Ability to breach the dichotomy between big vision and the
smallest detail.
Sincere respect for human dignity and genuine concern for others.
Taking responsibility for themselves and their behavior.
Inspiring words, actions and emotions that propel others to go
beyond their preconceived limits.
The ability to renew themselves and others through story, humor,
perspective and reflection.

Management Charter Initiative

Competencies for Middle
Managers
6. Develop teams,
1. Initiate and implement
change and improvement
in services, products, and
systems
2. Monitor maintain, and
improve service and
product delivery

individuals, and self to

enhance performance
7. Plan, allocate, and
evaluate work carried out
by teams, individuals and
self

3. Monitor and control the

use of resources

8. Create, maintain, and

enhance effective
working relationships

4. Secure effective resource

allocation for activities
and projects

9. Seek, evaluate, and

organize information for
action

5. Recruit and select

personnel

10.Exchange information to
solve problems and make
decisions
EXHIBIT 1.8

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How Much Importance Does The

Marketplace Put On Managers?
Good (effective) managerial skills are a
scarce commodity.
Managerial compensation packages are one
measure of the value that organizations place
on them.
Management compensation reflects the market
forces of supply and demand.
Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses,
interest-free loans, performance incentive packages,
and guaranteed contracts.
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Fortunes worlds admired

Companies 2016

Apple
Google
Amazon
Berkshire Hathaway
Walt Disney
Starbucks
Southwest Airlines
FEDEX
Nike
GE

Challenges for Management

in a Global Environment

Increasing Number of Global

Organizations.
Building a Competitive
Advantage.
Maintaining Ethical Standards.
Managing a Diverse Workforce.
Utilizing IT and E-commerce.
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Building a Competitive
Advantage
Increasing Efficiency
Reducing the quantity of resources used to
produce goods and services.

Increasing Quality
Introducing Total Quality Management (TQM) to
improve quality.

Increasing Speed, Flexibility, and Innovation

Adapting to bring new products to market faster.

Increasing Responsiveness to Customers

Empowering employees to deal with customers.
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Building Blocks of Competitive Advantage

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Figure 1.5

Maintaining Ethical
Standards

Factors Influencing Behaviors:

External pressures from
stockholders/stakeholders for
increased organizational financial
performance.
Internal pressures from top
management to lower-level managers
to increase the organizations
competitive performance and
profitability.
Societal, cultural, and environment
demands on the organization.

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Managing a Diverse
Workforce
The Increasing Diversity of the
Workforce
Non-Discriminatory Employment
Practices
Performance-Enhancing Benefits of a
Diverse
Workforcefor specialization
The opportunities

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