TOPIC 1

INTRODUCTION TO MANAGEMENT

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What is an Organization?
A group of people working together in a

structured and coordinated fashion to

achieve a set of goals.
A social unit in which two or more people
interact to achieve common goal or a set of
goals.
Collection of people working together in a
division of labor to achieve a common
purpose.
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How Do Managers Achieve

the
Organizational
Goals?

By coordinating & combining various

resources.
There are 4 various resources:- human
- financial
- physical
- information

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How Do Managers Combine and

Coordinate the Various Kinds of
Resources?
The following slide Figure 1.1 illustrates
how managers* combine and coordinate
the various kinds of resources:

*a person in an organization who is responsible for the

work or performance of one or more persons
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Figure 1.1: Management in

Organizations

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Measuring Managerial
Performance

Managers performance can be measured by

looking at two criteria:
Performance efficiency
Performance effectiveness

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Effectiveness vs.
Efficiency
Effectiveness
Effectiveness is achieved when the organization

pursues appropriate goals.

the right thing.

This means doing

Efficiency
Efficiency is achieved by using the fewest inputs

(e.g., people and money) to generate a given

output. This means doing things right.
The end result of effective and efficient

management is organizational success.

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Performance
Effectiveness
E.g:if the demand for market for cars is for
small, compact and economical cars,
but the manager chooses to produce
and manufacture big, luxury and
expensive cars, the manager is
considered to be ineffective

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Performance Efficiency
E.g:a company practicing multi tasking rather than
single tasking a staff performing various jobs.
a Customer Service staff also being a
receptionist of a company.
* 2 functions can be performed at one time. A

manager is using fewest resources (only one staff)

to do many job functions. Financially save!!
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What Is Management?
The Classic Definition:-

The art of getting things done through people.

(Mary Parker Follet)

A Broader Definition:-

The process of administering and coordinating

resources effectively, efficiently, and in an effort to
achieve the goals of the organization.
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What Is Management?
A set of activities

(including planning
and decision making,
organizing, leading,
and controlling)
directed at an
organizations
resources (human,
financial, physical,
and information), with
the aim of achieving
organizational goals
in an efficient and
effective manner.
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The Four
Functions of Management

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Planning & Decision

Making
Setting the organizations goals and deciding
how best to achieve them.
Setting goals and defining the actions

necessary to achieve those goals.

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Organizing
The process of determining the tasks to be

done, who will do them, and how those tasks

will be managed and coordinated.
Determining how best to group activities and

resources.

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Leading
The capacity to lead the members of work

groups toward the accomplishment of

organizational goals.
Influencing the behaviors of others.
Motivating members of the organization
Requires a number of skill sets including:
Understanding individual/group behavior
dynamics
The ability to motivate employees
Be effective communicators
Able to envision future and share that vision
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Controlling
Monitoring the performance of the

organization and the progress in

implementing strategic and operational
plans.

Identifying deviations between planned

and actual results.

Taking corrective action

Ensuring that the organization is moving

toward the achievement of its goals.

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The Management Process

Involves four basic activities/functions.
Logically, the process must be in

sequence, i.e. planning & decision making,

followed by organizing, leading and finally
controlling.
However, practically most managers
involve in more than one activities at one
time.

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The Management Process

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OUTCOME OF EACH
MANAGERIAL
FUNCTION

PLANNING
- organizations strategy.
ORGANIZING - organization structure.
LEADING
- high level of motivation and
commitment from
organizational
members.
CONTROLLING- an organization in which it is
possible to measure
performance
accurately and
regulate its efficiency
and
effectiveness.
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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.

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Types of Managers by
Levels
Top Managers

Small group of
executives who manage
the overall organization.
i.e. CEO, President,
Director

Middle Managers
A large group that
implement the strategies
developed at the top.
i.e. Marketing Manager,
Production Manager, HR
Manager

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Types of Managers by
Levels
First-Line Managers
(Lower Level
Managers)
Responsible for putting

into operation the

plans of higher and
middle management
Supervise and
coordinate the
activities of operating
employees.
i.e. foremen,
production supervisor,
technical supervisor
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Types of Managers by Areas

Functional managers

Responsible for work groups that are segmented

according to function or a single area of activity.
Managers who are responsible for managing a work
unit that is grouped based on the function served.
i.e. finance manager, marketing manager, operations
manager

General managers

Managers who manage several different departments

that are responsible for different tasks
Responsible for more complex units that include many
functional areas of activity
i.e. the manager of a supermarket is responsible for
managing all departments within the store

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Types of Managers by
Level and Area

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Type of Managers

(by level &

areas)
Manager

By their level

By responsibilities/
activities

First line manager

Functional manager

Middle manager

General manager

Top Manager

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Basic Managerial Roles and

Skills
Regardless of level
or area within an
organization, all
managers must
play certain roles
and exhibit certain
skills in order to be
successful.

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BASIC MANAGERIAL ROLES

(by Henry Mintzberg)
Interpersonal : Involve people and
other duties that are ceremonial
and symbolic in nature
Figurehead
Leader
Liaison, Coordinator
Informational : involve receiving,
collecting and disseminating info.
Monitor
Disseminator
Spokesperson
Decisional : Revolve around making
choices
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator

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The Three Interpersonal

Roles
Figurehead
Department head/representative
performing ceremonial duties
i.e. greeting visitors,, signing
legal documents, cutting-ribbon
ceremony
Leader
Responsible for hiring/staffing,
training and motivating
subordinate
Liaison, Coordinator
A person who perform and
interacts with other people
outside the organization
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The Three Informational

Roles
Monitor

Seeks and receives wide variety of

internal and external info to

develop thorough understanding of
organization and environment
i.e. reading periodicals and report,
maintaining personal contacts

Disseminator
Transmits info received from

outsiders or from subordinates to

members of the organization
Holding info meetings; making
phone calls to pass information

Spokesperson
Transmit info to outsiders on

organizations plan, policies,

actions, results, etc
Holding board meeting; giving info
to media

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The Four Decisional Roles

Entrepreneur
Search for opportunities, new ideas,
improvement and initiate changes
i.e. organizing strategy and review sessions
to develop new programs
Disturbance Handler
Responsible for corrective action when
organization faces important, unexpected
disturbances
organizing strategy and review session that
involve disturbances and crises
Resource Allocator
Responsible for allocation of the resources
in the organization
i.e. scheduling, requesting authorization
and budgeting
Negotiator
Responsible for representing the
organization at major negotiations
i.e. participating in union contract
negotiations

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Managerial Skills
In addition to

fulfilling roles,
managers also need
a number of specific
skills.
The most
fundamental
management skills
are:
Technical
Conceptual
Human

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Technical Skills
Necessary to accomplish

or understand the specific

kind of work being done.

The ability to utilize the

knowledge of tools,
techniques, and
procedures that are
specific to a particular
field.

These skills are especially

important for first line

managers.

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Conceptual Skills
A managers ability to

think in the abstract.

The ability to process a

tremendous amount of
information about the
internal/external
environment of the
organization and
determine implications of
that information.

The mental capacity to:

Understand organizational
goals and its environment.
How the organization is
structured.
Viewing the organization
as system.

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Human Skills
The ability to work with, understand, and motivate

other people, both individually and in groups.

Most people are technically proficient, but
interpersonally incompetent.
Managers must have good human skills to
communicate, motivate, and delegate.

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Relationship of Managerial
Skills to Management Level
TOP MANAGERS

MIDDLE
MANAGERS

Human Skills

Human Skills

Technical Skills

Technical Skills

Conceptual Skills

Conceptual Skills

FIRST-LINE
MANAGERS

Human Skills

Technical Skills

Conceptual Skills

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1. Economic influences

relate with management of

resources/inputs during scarcity

2. Social influences

management of diverse culture

that influence interpersonal relationship

3. Political influences

government regulations,
rules and laws influencing an organization

4. Technological influences

advances in
communication, transportation, information technology
influencing the conduct of business

5. Global influences

pressures to improve quality,

productivity and cost in order to complete globally
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1. Classical Approach
2. Behavioral Approach
3. Contingency Approach

Evolution of Management Thought:

Approaches

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The Classical Approach

The Classical Approach:
Ideas of the early 20th century theorists and

managers
This perspective actually includes two
different viewpoints:
scientific management and
administrative management.

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The Classical Approach:

Scientific Management
Concerned with

improving the
performance of
individual workers.

1.Frederick Taylor
2.Lillian Gilbreth
3.Frank Gilbreth

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The Classical Approach:

Scientific Management
Frederick W. Taylor

developed this system,

which he believed
would lead to a more
efficient and productive
work force.
Three areas of focus
Task Performance
Supervision
Motivation

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Task Performance
Scientific management incorporates

several basic expectations of management,

including:
Development of work standards
Selection of workers
Training of workers
Support of workers

Supervision
Taylor felt that a single supervisor

could not be an expert at all tasks.

As a result, each first-level

supervisor should be responsible

only workers who perform a
common function familiar to the
supervisor.

Motivation
Taylor believed money was the way to

motivate workers to their fullest

capabilities.

He advocated a piecework system in

which workers pay was tied to their

output.
Workers who met a standard level of

production were paid a standard wage rate.

Workers whose production exceeded the

standard were paid at a higher rate for all of

their production output.

The Classical Approach:

Scientific Management
Frank Gilbreth
-Specialized in time-and-

motion studies to determine

the most efficient way to
perform task.
-Tested on the work of
bricklayers.
-Reduced the number of
motions from 18 to 5,
resulting in 200%
productivity increase.
-Known as therblig.

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The Classical Approach:

Scientific Management
Lillian Gilbreth
-Better working conditions

as a way to improve
efficiency and productivity.
-Favored standard days of
working, scheduled lunch
break, rest time for workers.
-Removal of unsafe working
conditions &child labor.

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The Classical Approach:

Administrative Management
Administrative

management focuses
on managing the
total organization.
Introduced by Henry

Fayol.
Fayols managerial
functions of planning,
leading, organizing and
controlling are routinely
used in modern
organizations.
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Scientific vs
Administrative
Scientific management focused on employees
within organization and on ways to improve
Management
their productivity.
Administrative management focused on total

organization and on ways to make it more

efficient and effective.

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Evolution of Management Thought:

The
Behavioral
Approach
Focuses
on the importance
of human behavior
in determining/shaping managerial style.
1.Mary Parker Follet
2.Elton Mayo
3.Douglas McGregor
4.Chester Barnard

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Evolution of Management Thought:

The
MaryBehavioral
Parker Follet Approach
-A key to effective management was coordination
-Managers need to coordinate and harmonize group effort

rather than force and coerce people.

-Managers should give a chance to employees to make
decisions because they are the closest to the situation
employees happy.

Elton Mayo
-Made an experiment called Hawthorne Effect.
-Individuals performance will improve if attention was given to

them (because they feel satisfied and motivated).

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Evolution of Management Thought:

Douglas
McGregor Approach
The
Behavioral

-formulated Theory X and Theory Y (it is the assumptions

about employees behavior)

Theory X
Assumes that employees dislike work, lack ambition, avoid

responsibility, and must be directed and coerced to perform.

Managers must use authoritarian style of management.

Theory Y
Assumes that employees like work, seek responsibility, are

capable of making decisions, and exercise self-direction and

self-control when committed to a goal.
Managers must use participative style of management.
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Evolution of Management Thought:

The
Approach
alsoContingency
known as situational
approach
it says that organizations are different, face

different situations (contingencies) and

require different ways of managing
There is no one best way to manage
organizations can vary by size, technology,
environment uncertainty and individual
differences

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