ATGB3684 Principles of Management

Lecture 1
Management & Organizations

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Learning Outcomes
Explain why managers are important to
organization
Describe the basic function of
management
Identify where in an organization
managers are located
Describe the functions, roles and skills of
managers

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What is Management ?
Mary Parker Follet :
“the art of getting things done through people”

Peter Drucker :
“the job of managers is to give direction to their
organization, provide leadership and decide how to
use organizational resources to accomplish goals”

Management is the attainment of the

organizational goals in an effective and
efficient manner through planning, organizing,
leading and controlling organizational resources
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What is Management ?
Management :
■ Taking place within a structured organizational
setting and with prescribed roles
■Directed towards the attainment of aims and
objectives
■Achieved through the efforts of other people
■Using system and procedure

Good management is working through others to

accomplish the tasks that help fulfill
organizational objectives as efficient as possible
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Who are Managers ?
Someone who coordinates and oversees
the work of other people so that
organizational goals can be accomplished
Not about personal achievement-it’s about
helping others do their work

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Why are managers important?
Organizations need their managerial skills
and abilities to ensure the organization
serves its basic purpose – the efficient and
effective production of goods or services
To design and maintain the stability of the
operations of the organization - the quality of
the employee/supervisor relationship is the
most important variable in productivity and
loyalty.
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Why are managers important?
To take charge of strategy-making and adapt
the organization in a controlled way to changes
in its environment - managers play an
important role in identifying critical issues and
crafting responses.
To serve as the key informational link between
the organization and the environment.
A formal authority to operate the organization’s
status system.

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Levels of Management

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Classifying Managers
First-line Managers
■ Responsible to manage the work of
non-managerial employees who are directly
responsible for producing a company’s goods and
services.
■ First-line managers may be called supervisors,
shift managers, district managers, department
managers or office managers

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Responsibilities of First-Line
Managers
Manage the performance of
entry-level employees

Encourage, monitor, and reward

the performance of workers

Teach entry-level employees how to do their jobs

Make detailed schedules and operating plans

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Classifying Managers
Middle Managers
■ Individuals who manage the work of first-line
managers.
■ Responsible for setting objectives consistent with
top management’s goal and for planning and
implementing subunit strategies for achieving
those objectives
■ May have titles such as regional managers,
project leader, store manager or division manager

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Responsibilities of Middle
Managers
Plan and allocate resources to meet objectives

Coordinate and link groups,

departments, and divisions

Monitor and manage the performance

of subunits and managers who report to them

Implement changes or strategies

generated by top managers
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Classifying Managers
Top Managers
■ Individuals who are responsible for making
organization-wide decisions and establishing
plans and goals that affect the entire organization.
■ Individuals with titles such as executive vice
president, president, managing director, chief
operating officer or chief executive officer
Not all organizations have a traditional pyramidal
form. Whatever the structure, someone needs to
fulfill the roles.
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Responsibilities of Top
Managers
Creating a context for change

Developing commitment
and ownership in employees

Creating a positive organizational

culture through language and action

Monitoring their business environments

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Example :

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Where do managers work?
Organization – A deliberate arrangement
of people assembled to accomplish some
specific purpose/goal (that individuals
independently could not accomplish
alone).
Common characteristics of Organizations
■ Have a distinct purpose (goal)
■ Are composed of people
■ Have a deliberate structure
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Characteristics of Organizations

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What do managers do?
Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.
Efficiency refers to getting the most output
from the least amount of inputs (do things
right).
Effectiveness is described as ‘doing the right
things’ ie. work activities that help
organization reach its goals 19
Efficiency and Effectiveness in
Management

(Robbins et al 2012) 20
Management Functions
Managers must capable to :
■ recognize the performance problems and
opportunities,
■ make good decision
■ take appropriate action

These can be done through planning,

organizing, leading and controlling the use of
resources to accomplish performance goal.
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Four Functions of Management

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The Four Management
Functions
Planning - Defining goals, establishing
strategies to achieve goals, and
developing plans to integrate and
coordinate activities.
Organizing - Arranging and structuring
work to accomplish organizational goals.
Leading - Working with and through
people to accomplish goals.
Controlling - Monitoring, comparing, and
correcting work.
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Planning
Takes place at multiple levels in an organization
Planning is used by senior managers to develop
overall strategies for an organization (strategy –
an action that managers take to attain the goals
of an organization)
Strategizing – the process of thinking through on
a continual basis what strategies an organization
should pursue to attain its goal
Examples : budgeting, plans for building new
factories, implementing new information system,
launching new marketing campaigns and so on 24
Organizing
Organizing typically involves dividing the
enterprise into subunits based on functional
tasks – procurement, R&D, production,
marketing, sales, customer service, human
resources, account and finance – decide how
much decision-making authority to give each
subunit

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Leading
An important aspect of leading is developing
employees
Developing employees refer to the task of hiring,
training, mentoring and rewarding employees in
an organization, including other managers
It is often said that people are the most important
asset of an organization
Peter Drucker – hiring and promoting the right
people are among the most important tasks
because they have lasting consequences and are
difficult to reverse 26
Controlling
Also linked to planning, strategizing and organizing.
Drafting plans is first step in controlling an
organization.
Controlling requires managers to compare
performance against the plans to monitor how
successful an organization is at implementing a
strategy.
An important aspect in controlling is creating
incentives that align the interests of individual
employees with those of the organization.
An incentive is a factor, monetary or nonmonetary, 27

that motivates individuals to pursue a particular

Management Roles
Refers to specific actions or behaviours
expected of and exhibited by a manager
Henry Mintzberg identified 10 roles
grouped around interpersonal
relationships, the transfer of information,
and decision making.

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Three Types of Roles
Interpersonal Roles
■ Are one that involve people (subordinates &
persons outside the organization) and other
duties that are ceremonial and symbolic in
nature
Informational Roles
■ Involve collecting, receiving and
disseminating information
Decisional Roles
■ Entail making decisions and choices 29
Managerial Roles
Why are managerial roles important?

Because managers are leaders that lead

followers. How can you lead if you are not
credible in the eyes of your followers?
Mintzberg’s Managerial Roles
Interpersonal Roles
Figurehead
Leader
Liaison

Information Roles
Monitor
Disseminator
Spokesperson

Decisional Roles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator 31
Interpersonal Roles
Figurehead role – represents the
organization in matters of formality, involved
in ceremonial & symbolic activities
Leader role – encompasses relationships
with subordinates including motivation,
communication, guidance & influence
Liaison role – maintains horizontal
relationships with individuals and groups
outside their own unit or outside the; use
e-mail, phone calls , meetings 32
Informational Roles
Monitor role – seeking and receiving
information from many sources to stay informed
internal or external ; formal or informal
Disseminator role – transmitting external
information through the liaison role into the
organization and internal information through
leader role between the subordinates; send
memos & reports; make phone calls
● Spokesperson role – formal authority in
transmitting information to people outside the
unit through speeches, reports & memos 33
Decisional Roles
Entrepreneurial role – initiate and planned
controlled change through exploiting opportunities
or solving problems and taking action to improve
the existing situation
Disturbance handler role – involves the manager
in reacting to involuntary situations and
unpredictable events eg. resolving conflicts
Resource allocator role – decisions about how to
allocate people, time, equipment, money & other
resources to attain desired outcomes
Negotiator role – participate in negotiation activity
with other individuals or organization 34
Studies on Managerial Roles
❑ Studies supports the idea that managers
regardless of the type of organization or level in
the organization perform similar roles
❑ Emphasis that managers give to various roles
changes with organizational level
• At higher levels – the roles of disseminator,
figurehead, negotiator, liaison & spokesperson
are more important
• The leader role is more important for
lower-level managers than for middle or
top-level managers 35
Management Skills
• Technical skills
– Job specific knowledge and techniques needed
to proficiently perform work tasks
– Tend to be more important for first-line
managers and team leader
• Human skills
– The ability to work well with other people both
individually and in a group
– Equally important to all levels of management

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Management Skills
• Conceptual skills
– The ability to see the organization as a whole,
understand how the different parts affect each
other and recognize how the company fits into
or is affected by its external environment
– Most important to top managers

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Skills Needed at Different Managerial
Levels

The relationships of conceptual, human, and

technical skills to managerial levels.
Other Important Managerial
Skills
The First Year Management
Transition
Managers’
After Six Months ❖ No longer
After a Year
Initial ❖ As
Initial
a Manager “doer”
As a Manager
Expectations expectations
❖ Be the boss ❖ Communication
were wrong
❖ Formal ,
❖ Fast pace listening,
authority
❖ Heavy positive
❖ Manage tasks reinforcement
workload
❖ Job is not ❖ Learning to
❖ Job is to be
managing adapt
problem-solver
people and control
&
troubleshooter stress
❖ Job is people
(Chuck 2011) 40

development
 Changes Facing Managers

Some of the
most important
changes facing
managers.
Focus on the Customer
• Without customers, most organizations
would cease to exist
• Managing customer relationships is the
responsibility of all managers and
employees
• Consistent, high-quality customer service
is essential
Focus on Technology
• Managers must get employees on board
with new technology
• Managers must oversee the social
interactions and challenges involved in
using collaborative technologies
Focus on Social Media
• Social media: forms of electronic
communication through which users
create online communities to share ideas,
information, personal messages, and other
content
Focus on Innovation
• Innovation: exploring new territory,
taking risks, and doing things differently
Focus on Sustainability
• Sustainability: a company’s ability to
achieve its business goals and increase
long-term shareholder value by
integrating economic, environmental, and
social opportunities into its business
strategies
Focus on the Employee
Treating employees well is not only the
right thing to do, it is also good business
Why Study Management?
The Value of Studying Management
■ The universality of management
Good management is needed in all organizations.
■ The reality of work
Employees either manage or are managed.
■ Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.

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Universal Need for Management

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 Rewards and Challenges of Being a
Manager
Rewards Challenges

Create a work environment in which Do hard work

organizational members can work to the best
of their ability
Have opportunities to think creatively and use May have duties that are more clerical than
imagination managerial
Help others find meaning and fulfillment in Have to deal with a variety of personalities
work
Support, coach, and nurture others Often have to make do with limited resources

Work with a variety of people Motivate workers in chaotic and uncertain

situations
Receive recognition and status in community Blend knowledge, skills, ambitions, and
and organization experiences of diverse work group
Play a role in influencing organizational Success depends on others’ work performance
outcomes
Receive appropriate compensation in the form Blank cell
of salaries, bonuses, and stock options
Good mangers are needed by organizations Blank cell