MGT162 Chapter 1 Power Point

Why do we study management?
•To understand the skills, challenges, expected problems, etc. for

future use in our career.
•Help us to become effective manager. To achieve high level of
performance through better utilization of human and material

resources.
•To equip us with effective management theories and practices.
•Learn to detect problems and solve them (good decisions).
•Enable to access future and make plan for it (good planner).
•Awareness of responsibilities and are accountable.
•For our own consumption.
management: 1
rahman886@salam.uitm.edu.my
What is management?
 “The art of getting things done through

people” ….. Mary Parker Follet
 “Management is the systematic organization of

economic resources” …. Peter Drucker
management: 2
What is management?
 “To manage is to forecast and plan, to organize, to
command, to co-ordinate and to control”…. Henry
Fayol (1916)
 “Management is a process … the process consists of

planning, control, co-ordination and motivation” ….
E.F.L Brech (1957)
 “Managing is an operational process initially best

dissected by analyzing the managerial functions;
planning, organizing, staffing, directing, leading and
controlling” …. Koontz & O’Donnel (1984)
management: 3
What is management?
 Essentially … Management is about:
 organizing people
 organizing resources
 productively to the mutual benefit
both of the organization as a whole

and the individual employees.
 The manager should see him/her as
facilitating this process.

management: 4
What is management?
 The “Ms” of Management…..
 Money
 Machinery
 Manpower
 Materials
 Morale
 Method
 The Goal of management is – to achieve specific

objectives
management: 5
What is management?
• A set of activities:
• planning and decision making, organizing, leading,
and controlling.
• directed at an organization’s resources:
• human, financial, physical, and information.
• with the aim of achieving organizational goals

in an efficient and effective manner.
management: 6
Why is management important?
 It is essential for the success of a business of
enterprise.
 “….. Without management there would be only a
mob rather than institution.” … Peter Drucker.
 The manager is the dynamic, life giving element in
every organization. Without his leadership, the
resources of production remain resources and never
become production.
 In a competitive economy, above all, the Quality &
Performance of managers determine the success of
business … indeed they determine SURVIVAL!
 Quality + Performance of managers is the effective
advantage of organization.
management: 7
Successful management..
 Besides doing all the functions, managers have to be
able:
 To look ahead and assess future realistically.
 To have imagination.
 Be able to make decisions based on sound understanding
and judgment of the available data.
 Able to communicate effectively with their subordinates,
superiors and peers.
 To motivate, inspire and guide their staff so that everyone
works together to achieve the organization’s goals and
targets.
management: 8
Management success
 The most effective manager is the one who is
concerned with both people and production.
 Effective management should be measured by:
 What he/she achieves not what is done!
 EFFICIENT – capable, able to perform duties

well.
 EFFECTIVE – having an effect, able to bring
result intended.
management: 9
Management success
Peter Drucker says……….
“Effectiveness is the key to an

organization’s success. Before we can
focus on doing things efficiently, we need
to be sure we have found the right things
to do”
management: 10
Management success
Efficiency
versus
Effectiveness
management:
Source: Van Fleet, David D., Contemporary Management, Second 11
Edition. Copyright © 1991 by Houghton Mifflin Company. Used with
permissions.
Basic Purpose of Management
 EFFICIENCY
 “doing things right”
 The ability to do things right

 Using resources wisely and in a cost-effective way
 Is an ‘input – output’ concept
 An efficient manager is one who achieves outputs or
results that measures up to the inputs (labor, materials
and time) used to achieve them.
 Managers who are able to minimize the cost of the
resources needed to achieve goals are acting efficiently.
management: 12
Basic purpose of management
 EFFECTIVENESS
 ‘doing the right things’
 Making the right decisions and
successfully implementing them
 A manager who selects an appropriate goals
(say) producing mainly large cars when the

demand for small cars are soaring, is an
inefficient manager, even if the large cars
produced with the maximum efficiency.
management: 13
What is a Manager?
 Someone whose primary responsibility is to
carry out the management process.
 Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.
management: 14
Kinds of Managers by Level and Area
Levels of Management
Top managers
Middle managers
First-line managers
s
ns
n
g
ce
e
io
er
ti n
nc
tio
ur
at
th
ke
na
ra
tr
so
O
ar
is
pe
Fi
re
in
M
dm
an
um
Areas of Management A
H
management: 15
Kinds of Managers by Level
 Top Managers
 The relatively small group of executives who manage the
organization’s overall goals, strategy, and operating
policies.
 Middle Managers
 Largest group of managers in organizations who are
primarily responsible for implementing the policies and
plans of top managers. They supervise and coordinate the
activities of lower-level managers.
 First-Line Managers
 Managers who supervise and coordinate the activities of
operating employees.
management: 16
Kinds of Managers by Area
 Marketing Managers
 Work in areas related to getting consumers and clients to
buy the organization’s products or services.
 Financial Managers
 Deal primarily with an organization’s financial resources.
 Operations Managers
 Concerned with creating and managing the systems that
create organization’s products and services.
management: 17
Kinds of Managers by Area (cont’d)
 Human Resource Managers
 Involved in human resource planning, recruiting and
selection, training and development, designing
compensation and benefit systems, formulating
performance appraisal systems.
 Administrative Managers
 Generalists who are familiar with all functional areas of
management and who are not associated with any particular
management specialty.
 Other Kinds of Managers
 Specialized managerial positions directly related to the
needs of the organization
management: 18
Management in Organizations
management process …..
Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources
Controlling Leading
management: 19
The Management Process
 Process to emphasize that all managers regardless of their
particular aptitudes or skills, engage in certain interrelated
activities in order to achieve their desired goals.
Planning and
Decision Making Organizing
Determining how
Setting the organiza-
best to group
tion’s goals and
activities and
deciding how best
resources
to achieve them
Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization
management: 20
The Management Process (cont’d)
 Planning and Decision Making
 Setting an organization’s goals and selecting a course of
action from a set of alternatives to achieve them.
 Organizing
 Determining how activities and resources are grouped.
 Leading
 The set of processes used to get organizational members to
work together to advance the interests of the organization.
 Controlling
 Monitoring organizational progress towards goals.
management: 21
What is an organization?
 “ …. is a social unit in which two or more
people interact to achieve a common goal or
set of goals” --- Stoner
 “…. is a collection of people working together
in a division of labor to achieve a common
purpose” --- Schermerhorn
 “ …. is the structure of relationships that exists
when two or more people mutually cooperate
to pursue common objectives” --- Holt
management: 22
Common characteristics of organization
 Each organization has a distinct purpose.
 Each is composed of people.
 All organizations develop a systematic
structure that defines and limits the behavior
of its members, including:
 Creating rules and regulations.
 Identifying some members as managers and give
the authority over other members.
 Writing job descriptions so that members know
what they are supposed to do.
management: 23
Why do we need organization?
 To accomplish objectives
 Examples? Private/public/non-profit organization.
 To preserve knowledge
 Examples? Educational organizations, museum,
archive, etc.
 To serve society
 Examples? Private/public/non-profit organization.
 To provide careers/employment
management: 24
Types of organization
 Formal Organization
 Consists of two or more people who are
involved in a mutual effort with formal
authority to achieve common
goals/objectives; or
 Is the system of jobs, authority
relationships, responsibility, and

accountability designed by management to
get the work done.
management: 25
Types of organization
 Informal Organization
 consists of two or more people involving in a
mutual effort without a deliberate structures of
authority or the necessity of common objectives.
 is considered as shadow organization.
 exists in every organization.
 it is not planned.
 it just happened based on friendship and contacts
both on and off the job.
 it is a network of personal and social relationships
that may have nothing to do with formal authority
relationships.
management: 26
Managerial skills
 Skills and the Manager
management: 27
Managerial skills
 Technical
 Skills necessary to accomplish or understand the specific
kind of work being done in an organization.
 Interpersonal or Human
 The ability to communicate with, understand, and motivate
both individuals and groups.
 Conceptual
 The manager’s ability to think in the abstract.
 Diagnostic
 The manager’s ability to visualize the most appropriate
response to a situation.
management: 28
Managerial skills
 Communication
 The manager’s abilities both to convey ideas and
information effectively to others and to receive ideas and
information effectively from others.
 Decision-Making
 The manager’s ability to recognize and define problems
and opportunities correctly and then to select an
appropriate course of action to solve the problems and
capitalize on opportunities.
 Time-Management
 The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.
management: 29
Management Skill Mixes at Different
Organizational Levels
management: 30
Management: Science or Art?
 The Science of Management
 Assumes that problems can be approached using rational,
logical, objective, and systematic ways.
 Requires technical, diagnostic, and decision-making skills
and techniques to solve problems.
 The Art of Management
 Decisions are made and problems solved using a blend of
intuition, experience, instinct, and personal insights.
 Requires conceptual, communication, interpersonal, and
time-management skills to accomplish the tasks associated
with managerial activities.
management: 31
Managerial Roles (Mintzberg)
management: 32
a) Interpersonal Role
1) Figurehead
 Symbolic head; obliged to perform a number of routine
duties of a legal or social nature such as greeting visitors,
signing legal documents, etc.
2) Leader
 Responsible for the motivation and activation of
subordinates
 Responsible for staffing, training and associated duties
 Performing virtually all activities that involve
subordinates.
management: 33
 Interpersonal Role (contd.)
3) Liaison
 Maintains self-developed network of outside
contacts and informers who provide favors and
information.
 Acknowledge mail; doing external board work
and performing other duties that involve
outsiders.
management: 34
b) Informational Role
4) Monitor
 Seeks and received wide variety of special
information (much of it current) to develop
through understanding of organization and
environment
 Emerges as nerve centre of internal and external
information about the organization.
 Activities: reading periodicals and reports;
maintaining personal contacts.
management: 35
 Informational Role (contd.)
5) Disseminator
 Transmits information received from other subordinates
to members of organization.
 Activities; holding informative meetings; making phone
calls to relay information.
6) Spokersperson
 Transmits information to outsiders on organization’s
plans, policies, actions, results, etc.
 Serves as expert on organization’s industry.
 Activities; holding board meeting; giving information to
the media, etc.
management: 36
c) Decisional Role
7) Entrepreneur
 Searches organization and its environment for
opportunities and initiates ‘improvement projects’ to
bring about change.
 Activities; organizing strategy and review sessions to
develop new programs.
8) Disturbance Handler
 Responsible for corrective action when organization
faces important, unexpected disturbances.
 Organizing strategy and review sessions that involve
disturbances and crisis.
management: 37
 Decisional Role (contd.)
9) Resource Allocator
 Responsible for the allocation of organizational resources
of all kinds – in effect, the making or approval of all
significant organizational decisions.
 Activities; requesting authorization; performing any
activity that involves budgeting and programming of
subordinates work.
10) Negotiator
 Responsible for representing the organization at major
negotiations
 Activities; participating in union contract negotiations.
management: 38
Fayol’s 14 Principles of Management
1. Division of work
 Specialization of tasks (necessary for greater
efficiency and productivity)
2. Authority
 The right to give orders and responsibility
3. Discipline
 Outward marks of respect in accordance with
formal or informal agreements between firms
and its employees.
management: 39
4) Unity of command
 Employees should receive orders from only one superior.
5) Unity of direction
 One head and one plan for a group of activities with the
same objective (entire organization should be moving
toward a common objective, in a common direction).
6) Subordination
 The interest of one individual or one group should not
prevail over the general good. This is difficult area of
management; i.e. the interest of one person should not
take priority over the interest over the interests of the
organization as a whole.
management: 40
7. Remuneration
 Pay should be fair to both the employee and the
employer.
8. Centralization/Decentralization
 The extent to which authority is concentrated or
dispersed.
9. Scalar Chain
 The line of authority from the top to the bottom of the
organization (hierarchy).
10. Order
 The arrangement of things and people (the right man at
the right place).
management: 41
11. Equity
 Combination of kindness and justice towards employees.
12. Stability Tenure
 Employees need to be given time to settle into their jobs,
even though this may be a lengthy period in case of
managers.
13. Initiative
 All staff are encouraged to show their initiative.
14. Esprit de corps
 Team spirit and morale built by the management
(harmony is a great strength to the organization).
management: 42

MGT162 Chapter 1 Power Point

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MGT162 Chapter 1 Power Point

Uploaded by

Copyright:

Available Formats

Why do we study management?

•To understand the skills, challenges, expected problems, etc. for

performance through better utilization of human and material

•Learn to detect problems and solve them (good decisions).

•Enable to access future and make plan for it (good planner).

•Awareness of responsibilities and are accountable.

•For our own consumption.

 “The art of getting things done through

 “Management is the systematic organization of

 “Management is a process … the process consists of

 “Managing is an operational process initially best

 productively to the mutual benefit

both of the organization as a whole

facilitating this process.

 The Goal of management is – to achieve specific

• with the aim of achieving organizational goals

 EFFICIENT – capable, able to perform duties

Peter Drucker says……….

“Effectiveness is the key to an

 The ability to do things right

(say) producing mainly large cars when the

management process …..

relationships, responsibility, and

You might also like