CHAPTER 1

Introduction to Management
 Management Defined
The process of administering and
coordinating resources effectively and
efficiently in an effort to achieve the
goals of the organization.
Why management is considered as an
art?
• Management must posses vision
• Management must use judgemental skill
• Management is influenced by contingency
factors
• However not all management authors agree
that mgt is an art.Some consider management
as a science.In fact most management authors
consider mgt as both an art and a science.
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 James Stoner
Definition of
management
• Management is a process of
planning, organizing, leading and
controlling the effort of the
organizational members and using
all other resources in order to
achieve the organizational goals
efficiently and effectively.
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 Elements in Stoner’s definition

• 1.Management is a process
• 2.Management must use all
organizational resources
• 3.Management must establish
goals
• 4.management must be both
efficient and effective
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 Management is a process of
administering and coordinating
resources efficiently and effectively to
achieve the organizational goals.
( Lewis and others)

An organization consists of two or more

people working together towards
accomplishing common goals.
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What Do All Organizations Have in
Common?
They are made up of people, and the
efforts of these people must be
coordinated if the organization is to
accomplish its goals.

MANAGERS!
Managers are the people who plan, organize,
lead, and control the activities of the
organization so that its goals can be achieved.
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 Why organizations are needed
• 1. Serve the society
• 2. Accomplish objectives
• 3. Preserve knowledge
• 4. Provide careers

Explain management in terms of:

• A) The management process
• b) Managerial responsibility
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Effectiveness vs. Efficiency
Effectiveness is achieved when the
organization pursues appropriate
goals. This means “doing the right
thing.”

Efficiency is achieved by using fewer

inputs (e.g., people, money) to
generate a given output. This means
“doing things right.”
 What Is An Organization?
An organization is a group of individuals
who work together toward common goals.

What Do All Organizations Have in

Common?
They are made up of people, and the efforts
of these people must be coordinated if the
organization is to accomplish its goals.
 The Four Functions of
Management
Slide 1 of 3

Planning Organizing

Organizational
goals

Leading Controlling
 The Four Functions of
Management
Slide 2 of 3
• Planning
– Setting goals and defining the actions
necessary to achieve those goals.
• Organizing
– The process of determining the tasks to be
done, who will do them, and how those tasks
will be managed and coordinated.
 The Four Functions of
Management
Slide 3 of 3
• Leading
– Motivating and directing the members of the
organization so that they contribute to the
achievement of the goals of the organization.
• Controlling
– Monitoring the performance of the
organization, identifying deviations between
planned and actual results, and taking
corrective action when necessary.
 Planning
• A process of establishing objectives and
designing strategies to achieve the objectives.

Steps in planning
• 1. Establishing goals
• 2. Define the present situations.
• 3. Determine aids and barriers
• 4. Developing action programs

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 Organizing
• A process of arranging and allocating works and
authority.
• A process of determining what is to be done, who is
responsible and how the tasks will be managed and
coordinated.
Steps in organizing
• 1.Detailing of work
• 2.Division of work
• 3.Aggregation of work
• 4.Coordination of work
• 5.Review of performance
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 Leadership
• A process of influencing and directing other
people to perform organizational tasks.

Elements in leadership
• 1. Leadership involves other people
• 2.Leadership involves unequal distribution of
power
• 3.Leaders may influence others using different
sources of power
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 Controlling
• A process managers ensure that actual
activities conform with planned objectives

Steps in the control process

• 1.Establishing standards
• 2.Measure actual performance
• 3.Compare actual with standards
• 4.Take corrective actions

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 Managerial Responsibilities
• 1.Work with and through others
• 2.Act as a communication channel
• 3. Responsible and accountable
• 4. Balance competing needs
• 5.Think analytically and conceptually
• 6.Managers as politician
• 7.Managers as diplomat
• 8.Managers as symbols
• 9.Make difficult decisions
• 10.Managers as mediators
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 The role of time

• 1.Time provide the context for

studying mgt
• 2.Mgt is a process of building the
future using the present and the past
• 3.Mgt is practice and reflective of a
particular era

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 The role of human relationship

• Mgt is a two-way process

• Mgt action affects other people
• Mgt must juggle multiple
relationship at the same time

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 Managerial performance

• A measure of how well managers are

doing their jobs.
• Managerial performance can be
measured using two factors :
• A) Efficiency
• B) Effectiveness

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 Efficiency
• Is an input-output concept
• managers ability to reduce costs,
materials and saves time
• e.g Perodua is considered as efficient
because it is able to produce lower
cost auto
• doing things right
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 Effectiveness

• Doing the right things

• ability to achieve target or goals
• e.g a salesman is considered as
effective if he is able to achieve his
sales quota.

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Factors contributing towards excellent
in management
• 1.Bias for action
• 2.Staying close to the customer
• 3.Autonomy and entrepreneurship
• 4.Productivity through people
• 5.Hands on value driven
• 6.Stick to the knitting
• 7.Simple form lean staff
• 8.Simultaneous loose tight properties.
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 Managers
Managers are the people who plan,
organize, lead, and control the
activities of the organization so that its
goals can be achieved.
 The Classification of managers
• Managers can be classified in two ways :
• I) According to the scope of activities :
General manager and Functional manager
• II) According to the level in the organizational
hierachy : Top manager, middle manager and
first line manager.

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 Functional Managers
• Responsible for only one functional area such
as marketing, production or finance.

General Managers
• Oversees a complex unit such as a company, a
subsidiary or an operating division
• Responsible for all activities of that unit e.g a
plant manager, a supermarket manager
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 Functional Manager
Chief Executive
General Parts Inc.

VP of VP of
Production Finance

Plant Service Account Payroll

Manager Manager Manager Manager

A functional manager is a manager

responsible for a work group
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 General Manager

General Manager
Supermarket, Inc.

Produce Grocery Bakery

Manager Manager Manager

A general manager is a manager

responsible for several different work
groups segmented by task.
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 Top Managers

• Composed of a comparatively small

group of people
• Also called “executives”
• They are “planners”
• Typical titles: C.E.O , President, vice
president

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 Middle Managers
• Can include more than one level
• Direct the activities of lower level managers
and sometimes those of operating workers as
well
• Principles activities are : A) Direct activities
that implement the organization objectives
• B) Balance the demands of their superiors
with the capacities of their employees

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 First-Line Managers

• The lowest mgt level

• Direct non mgt employees
• Do not supervise other manager
• E.g Foremen, supervisor, a school
principle and the manager of a
football team.

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 Management Skills (Robert Kartz)
1.Technical Skill
• The ability to use the procedure
techniques and knowledge of a
specialized field.
• E.g surgeons and engineers have
technical skills in their respective
fields.
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 2. Human Skills
• The ability to work with, understand and
motivate other people.

3. Conceptual skills
• The ability to coordinate and integrate all of
an org.interest and activities.
• Involves seeing the organization as a whole or
in totality

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 Skills Needed at Different
Levels of Management
Slide 1 of 3
First-line Middle Top-Level
Management Management Management

Conceptual Conceptual
Conceptual

Human

Human
Human
Technical
Technical
Technical
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 Mintzberg’s Managerial Roles
Slide 1 of 4

Interpersonal Informational Decisional roles

roles roles • Entrepreneur
• Figurehead • Monitor • Disturbance
handler
• Leader • Disseminator
• Resource allocator
• Liaison • Spokesperson • Negotiator

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 1.Interpersonal roles
• A)Figurehead-a manager performing
ceremonial duties like greeting visitors and
entertaining clients.
• B)Leader-Responsible for hiring, training
and motivating subordinates
• C) Liaison -a manager establish working
relationship both inside and outside the
organization

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 Informational Roles
• A)Monitor-Checking about market
info.and other environmental influences
• B)Disseminator-Distributes info to other
employees
• C)Spokesperson-Communicates with
people outside the org.

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 Decisional Roles

• 1.Entrepreneur
• 2.Resource allocator
• 3.Disturbance handler
• 4.Negotiator

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 The Challenges in Management
• 1.Globalization-The need to expand operation
overseas
• 2.Quality and TQM -The need to improve products
quality
• 3.Ethics and social responsibility –The need to do
what is right and contribute to the society
• 4.Reengineering-The need to improve operational
efficiency
• 5.Empowerment-The need to delegate
responsibilities
• 6.Organizational restructuring and consolidation.
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 Hyperchange
A condition of rapid, dramatic, complex, and
unpredictable changes that has a significant effect
on the ways in which organizations are managed.

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 Managing in the 21st Century:
Organizational Changes
The Changing Increasing
Chief Executive Diversity in the
Officer Workplace

From Hierarchy A New

to Self-Managed Organizational
Teams Model

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 The Contemporary Manager
Slide 1 of 2

• The New Manager Profile

– Managers will no longer think of themselves as
“the boss,” but will view themselves as sponsors,
team leaders, or internal consultants.

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 The Contemporary Manager
Slide 2 of 2

• Competencies of Tomorrow’s Managers

– The great communicator
– The team player
– The technology master
– The problem solver
– The foreign ambassador
– The change maker
– The 21st-century leader

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