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FUNDAMENTALS OF

MANAGEMENT
(MGT 162)

CHAPTER 1: INTRODUCTION TO
MANAGEMENT

Learning Objectives
After completing this chapter, students
should be able to:
Define what management is
Identify and explain the basic managerial
functions
Understand the roles that managers play
Describe the three levels of managers in
terms of the skills that they need and the
activities in which they are involved

INTRODUCTION TO MANAGEMENT

DEFINITION OF MANAGEMENT
The process of administering and coordinating resources effectively,
efficiently, and in an effort to achieve the goals of the organization
(Lewis)
The process of planning, organizing, leading, & controlling that
encompasses human, material, financial & information resources in
an organizational environment (Holt)
The process of planning, organizing, leading & controlling the efforts
of an organization members & of using all other organizational
resources to achieve stated organizational goals (Stoner)

DEFINITION OF ORGANIZATION & MANAGER


Organization
A group of individuals who work together toward common goals
(Lewis)
The structure of relationships that exits when 2 or more people
mutually cooperates to pursue common objectives (Holt)
An organization is a social unit in which 2 or more people interact
to achieve a common goal or a set of goals (Stoner)

Manager
An organizational member who is responsible for planning, organizing,
leading, and controlling the activities of the organization so that its goals are
achieved (Lewis)

WHY DO WE NEED AN ORGANIZATION?


Accomplish objectives
To help us to achieve our objectives
e.g. You come to UiTM to study & obtain a diploma
Preserve knowledge
Organization is also needed because it is a place where knowledge/
information is preserved

e.g. To know about our countrys history we can go to the


museum

WHY DO WE NEED AN ORGANIZATION?


Serve society
Organization is also needed to serve society
e.g. We can always go to hospitals or clinics if we are not feeling
well or if we have certain illnesses
Provide careers
Organization also provide us with career opportunities. Some of
us work in banks, others in some other organizations. Those
organizations provide individuals a place to go for work & earn
salary every month

Cont'd

GOALS

MEASURING MANAGERIAL PERFORMANCE


Performance can be measured by looking at 2 criteria:
Performance efficiency (doing things right)
The ability to do the things right. An efficient manager is a manager
who can achieve outputs/ results as expected. Managers who are able
to utilize & minimize the cost of resources such as staff, finance,
equipment & raw materials
Performance effectiveness (doing the right things)
The ability to choose the right goals
e.g. If the demand in the market for cars is form small, compact &
economical cars, but the manager chooses to produce & manufacture
big, luxury & expensive cars, the manager is considered to be
ineffective

PERFORMANCE EFFECTIVENESS & PERFORMANCE


EFFICIENCY AS FOUNDATIONS FOR PRODUCTIVITY
& MANAGERIAL SUCCESS
High

Efective & efficient.


Goals are achieve
& resources are
well utilized, area of
B high productivity

Goal Attainment
(Efectiveness)

Efective but not


efficient. Some
resources are wasted.

Neither efective
nor efficient, goals
are not achieved,
resources wasted in
the process.

Low
Poor

Efficient but not


efective. No
wasted resources,
but goals not
achieved.

Resource
Utilization
(Efficiency)

Good

THE MANAGEMENT PROCESS

Management is a process that contains several functions. It


comprises of the activities of Planning, Organizing, Leading &
Controlling (POLC).
PLANNING
ORGANIZING
LEADING
CONTROLLING

Includes defining goals, establishing strategy


& developing plans to coordinate activities.
Determine what tasks are to be done, who is
to do them, how the task are to be grouped,
who reports to whom & where decisions are
to be made.
Includes motivating subordinates, directing
others, selecting the most efective
communication channels, & resolving
conflicts.
Monitoring activities to ensure that they are
being accomplished as planned & correcting
any significant deviations.

LEADS TO
ACHIEVING THE ORGANIZATIONS STATED PURPOSE
(GOALS/ MISSION)

MANAGERIAL LEVELS
There are 3 levels of management:

3 levels of
management

Establish objectives, policy &


strategy, make long-term
decisions. E.g.: CEO,
President
Interpret top management
directives into operating plans,
make implementation
decision. E.g.: Marketing
Manager, H.R. Manager

Direct & support work on


non-managerial personnel,
make short-term operating
decision. E.g.: Clerk
Perform variety of task
activities, using technical
skills. E.g.: Driver

Type of Managers

Responsible
for a single
area of
activity. E.g.:
Finance
manager,
Marketing
manager

Responsible
for more
complex units
that include
many
functional
areas of
activity. E.g.:
Plant manager

MANAGEMENT SKILLS
There are 3 basic skills required by
managers:

RELATIVE SKILLS NEEDED FOR EFFECTIVE


PERFORMANCE AT DIFFERENT LEVELS OF
MANAGEMENT

H
H

Human
skill

Technical
skill

Conceptual
skill

MANAGERIAL ROLES
According to Henry Mintzberg, managers
perform ten (10) different inter-related roles in
the organization.
Interpersonal roles (help manager in managing
the organization smoothly)
Figurehead- A department head performing
ceremonial duties like greeting visitors, signing legal
documents.
Leader- A person who is responsible for hiring,
training & motivating subordinates in the organization.
Liaison- A person who perform & interacts with other
people outside the organization.

Informational roles (assists the manager in receiving &


communicating the information to make the right decision)

Monitor- Manager continuously seeks information that


can be used to advantage.
Disseminator- Information received internally or
externally will be transmitted to the subordinates.
Spokesperson- Information will be transmitted to people
outside the organization or unit.

Decisional roles (assists managers in making decisions


that solve problem or analyze & take advantage of
opportunities)
Entrepreneur- Manager tries to improve the unit &
initiate the changes.
Disturbance handler- Manager is responsible for
corrective actions when the organization faces
important, unexpected disturbances.
Resource allocator- Manager is responsible in
allocating the resources of the organization.
Negotiator- Manager is responsible for representing the
organization at major negotiations.