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 Describe the three levels of managers in terms of the skills that they need and the activities in which they are involved Understand the roles that managers play

Definitions of Management, Organization, & Managers Measuring managerial performance

Management functions

Managerial levels

Management skills

Managerial roles

 The art of getting things done through people.

-Mary Parker Follett 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 The process of administering and coordinating

resources effectively, efficiently, and in an effort to achieve the goals of the organization Lewis-

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 countrys 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

 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. Some resources are wasted. A Neither effective nor efficient, goals are not achieved, resources wasted in the process. B

Goal Attainment (Effectiveness)

Effective & efficient. Goals are achieve & resources are well utilized, area of high productivity C D
Efficient but not effective. No wasted resources, but goals not achieved.

Low Poor Resource Utilization (Efficiency) Good

 Management is a process that contains several functions. It comprises of the activities of Planning, Organizing, Leading & Controlling (POLC).

Source: Management, Challenges for Tomorrows Leaders, International Student Edition, 2007, pp.7.

PLANNING

Setting goals and defining the actions necessary to achieve those goals. ORGANIZING

The process of determining the task to be done (who will do them, and how those tasks will be managed and coordinated.)

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 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 effective 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)

Manager

By their level in the organization

By the range of organization activities they are responsible

A functional manager is responsible for a work group segmented by function.

Top managers

Functional manager

Middle manager

General manager
A general manager is responsible for several functional work groups.

First-line manager

 There are 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

3 levels of management

Top managers Middle managers First-Line managers/ Lower Level 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

Non- managerial personnel

 There are 3 basic skills required by managers:

3 Basic skills

Technical skills (T)

Human skills (H)

Conceptual skills (C)

Ability to use the procedures, techniques, & knowledge of a specialized field. E.g.: accountant, a heart surgeon, & a civil engineer has a special knowledge relating to the specialize field.

Is a skill that gives a manager the ability to work effectively with other people. It includes the ability to motivate, understand, lead & communicate, which a manager needs throughout his work.

They are mental capabilities that help managers see the whole enterprise as well as the relationships that exist among the various parts in the organization. This skill gives the manager the ability to coordinate & integrate the organizations interests & activities.

 One-To-One With Subordinates A manager who is responsible for managing a work unit

that is grouped based on the function served.

Supervise the individuals who are directly responsible for

producing the organizations product or delivering its service

Technical skills enable managers to use their knowledge of the tools, techniques and procedures that is specific to their particular field.

 Two basic activities involve are

1.

Managing individual performance:

Motivating Disciplining Monitoring Providing feedback Improving communications

 2. Instructing subordinates
Training
Coaching Instructing employees on how to do their job

Examples:

Supervisor at the floor operations, team leader, secretaries, auto workers

 Linking Groups A manager who supervises the first-line managers or staff departments. They interpret top management directives into operating plans; Implement decisions made. Responsible to allocate resources effectively Human skills enable managers to coordinate the efforts of members of ones work group as well as coordinate with other work groups withing the organization.

 Posses strong human skills:

Manage group dynamic Encourage cooperation Resolve conflict Listen and be tolerate to the others opinion Communicate the needs or ideas of their team to other member and conveying information from others back to their unit

 3 basic activities

1. Planning and allocating resources Setting target date for project completion Estimate resource requirement Developing valuation criteria to measure groups performance 2. Coordinating interdependent groups Reviewing the work plans of the managers unit and other groups Setting priorities for activities

3.

Managing group performance

Define areas of responsibility for the managerial personal Monitor the performance of the group members and provide them feed back Examples: Production Managers, Marketing Managers

 An Eye on the Outside Provide

the strategic direction in light of organizational resources, assets, skills, the opportunities and threats that exist in the external environment.

Examples: BOD-CEO, CFO, Vice-president

 Posses strong Conceptual skills: Process a tremendous amount of internal and external information of the organization environment and determine the implication of that information Enable to look at organization as a whole, separate work group and department related and effect each other Develop a distinctive personality/ culture for their organization

Source: Management, Challenges for Tomorrows Leaders, International Student Edition, 2007, pp.11.

Managerial Level
Top Management

Main Skill
Conceptual

Activities
Monitoring the organization environment Planning and allocating resources

Middle Management

Human

First-Line

Technical

Use appropriate tools, techniques and procedures

 According to Henry Mintzberg, managers perform ten

different inter-related roles in the organization.

Source: Management, Challenges for Tomorrows Leaders, International Student Edition, 2007, pp.8.

 Interpersonal roles

(The role of a manager that involves relationships with organizational members and other constituents)
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

(The managers responsibility for gathering and disseminating information to the stakeholders of the organization)
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

(The role in which a manager processes information and reaches conclusions)

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.