CHAPTER 1: INTRODUCTION TO

MANAGEMENT
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
Definitions of Management,
Organization, & Managers

Measuring managerial
performance

Management functions

Managerial levels

Management skills

Managerial roles
◦ “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)
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” (Stone)

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)
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 country’s history we can go
to the museum
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
 Planning

Organizing

Communication
GOAL
Leading

Controlling
 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
 High

Effective but not efficient. Effective & efficient.

Some resources are Goals are achieve &
Goal Attainment
(Effectiveness)

wasted. resources are well utilized,

area of high productivity
A B
C D
Neither effective nor Efficient but not effective.
efficient, goals are not No wasted resources, but
achieved, resources wasted goals not achieved.
in the process.

Low
Poor Good
Resource Utilization
(Efficiency)
 Management is a process that contains several functions. It
comprises of the activities of Planning, Organizing, Leading &
Controlling (POLC).

Includes defining goals, establishing strategy & developing

PLANNING 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 &
ORGANIZING where decisions are to be made.

Includes motivating subordinates, directing others,

LEADING selecting the most effective communication channels, &
resolving conflicts.

Monitoring activities to ensure that they are being

CONTROLLING accomplished as planned & correcting any significant
deviations.

LEADS TO

ACHIEVING THE ORGANIZATION’S STATED PURPOSE

(GOALS/ MISSION)
  There are 3 levels of management:

Establish objectives, policy &

Top strategy, make long-term
3 levels of management

decisions. E.g.: CEO, President

managers
Interpret top management
directives into operating
Middle plans, make implementation
managers decision. E.g.: Marketing
Manager, H.R. Manager
Direct & support work on
First-Line non-managerial
managers/ Lower personnel, make short-
Level Manager term operating decision.
E.g.: Clerk
Non- managerial Perform variety of task
personnel activities, using technical
skills. E.g.: Driver
 Manager

By the range of
By their level organization Responsible for
in the organization activities they are a single area of
Responsible for a
responsible activity. E.g.:
single area of
Finance
activity. E.g.:
manager,
Finance manager,
Marketing
Marketing
manager
manager
Top managers Functional manager

Middle manager General manager

Responsible for
more complex
units that include
many functional
areas of activity.
First-line manager E.g.: Plant
manager
 There are 3 basic skills required by managers:

3 Basic skills

Technical skills Conceptual skills

Human skills (H)
(T) (C)

Ability to use the Is a skill that gives a They are mental capabilities
procedures, techniques, & manager the ability to that help managers see the
knowledge of a work effectively with whole enterprise as well as the
specialized field. E.g.: other people. It includes relationships that exist among
accountant, a heart the ability to motivate, the various parts in the
surgeon, & a civil engineer understand, lead & organization. This skill gives
has a special knowledge communicate, which a the manager the ability to
relating to the specialize manager needs coordinate & integrate the
field. throughout his work. organization’s interests &
activities.
 Top H T C

H C
Middle
T

C
Lower H T

Technical Conceptual
H Human T skill C skill
skill
 According to Henry Mintzberg, managers
perform ten 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.
WALLAHUA’LAM