Chapter 1

INTRODUCTION
TO MANAGEMENT
AND
ORGANIZATIONS
© Prentice Hall, 2002 1-١
Learning Objectives

You should learn to:

1. Explain what a manager is and how the
role of a manager has changed
2. Define management
3. Distinguish between efficiency and
effectiveness
4. Describe the basic management
functions and the management process
5. Identify the roles performed by managers

© Prentice Hall, 2002 1-٢

Learning Objectives (cont.)

You should learn to:

1. Describe the skills managers need
2. Explain what managers do using the
systems perspective
3. Identify what managers do using the
contingency perspective
4. Describe what an organization is and how
the concept of an organization has
changed
5. Explain the value of studying management

© Prentice Hall, 2002 1-٣

Who Are Managers?

Manager

someone who works with and through
other people by coordinating their work
activities in order to accomplish
organizational goals

changing nature of organizations and work
has blurred the clear lines of distinction
between managers and non- non-managerial
employees
© Prentice Hall, 2002 1-٤
Who Are Managers? (cont.)

Managerial Titles

First--line managers - manage the work of non
First non--
managerial individuals who are directly involved with
the production or creation of the organization’s
products

Middle managers - all managers between the first-first-
line level and the top level of the organization

manage the first-
first-line managers

Top managers - responsible for making organization
organization--
wide decisions and establishing the plans and goals
that affect the entire organization

© Prentice Hall, 2002 1-٥

 Organizational Levels

Top
Managers

Middle
Managers

First-line
Managers

Non-managerial Employees

© Prentice Hall, 2002 1-٦

What Is Management?

Management

the process of coordinating work activities so
that they are completed efficiently and
effectively with and through other people

elements of definition

Process - represents ongoing functions or
primary activities engaged in by managers

Coordinating - distinguishes a managerial
position from a non-
non-managerial one. It helps to
avoid conflict and duplication.
© Prentice Hall, 2002 1-٧
What is Management? (cont.)

Management (cont.)

elements of definition

Efficiency - getting the most output from
the least amount of inputs

“doing things right”

concerned with means

Effectiveness - completing activities so
that organizational goals are attained

“doing the right things”

©concerned
Prentice Hall, 2002 with ends 1-٨
Efficiency and Effectiveness in Management
Efficiency (Means) Effectiveness (Ends)

Resource Goal
Usage Attainment

Low Waste High Attainment

Management Strives For:

Low resource waste (high efficiency)
High goal attainment (high effectiveness)

© Prentice Hall, 2002 1-٩

 Management Functions and
Processes

.Henri Fayol, a French
industrialist from the early part
of the 1900s,
1900s, proposed that
managers perform five
management functions: POCCC
(plan, organize, command,
coordinate, control).

1-# ١٠
© Prentice Hall, 2002 1-١٠
What Do Managers Do?

Management Functions and Process

most useful conceptualization of the manager’s job

Planning - defining goals, establishing strategies
for achieving those goals, and developing plans to
integrate and coordinate activities

Organizing - determining what tasks are to be
done, who is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are made

Leading - directing and motivating all involved
parties and dealing with employee behavior issues

Controlling - monitoring activities to ensure that
©they
Prentice are going as planned
Hall, 2002 1-١١
What Do Managers Do? (cont.)

Management Functions and Process (cont.)

Management process

set of ongoing decisions and work
activities in which managers engage as
they plan, organize, lead, and control

managerial activities are usually done in a
continuous manner

© Prentice Hall, 2002 1-١٢

What Do Managers Do? (cont.)

Management Roles

specific categories of managerial behavior

Interpersonal - involve people and duties that
are ceremonial and symbolic in nature

Informational - receiving, collecting, and
disseminating information

Decisional - revolve around making choices

emphasis that managers give to the various
roles seems to change with their organizational
level
© Prentice Hall, 2002 1-١٣
EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES

© Prentice Hall, 2002 1-١٤

What Do Managers Do? (cont.)

Management Skills

Technical - knowledge of and proficiency in a
certain specialized field

Human - ability to work well with other people
both individually and in a group

Conceptual - ability to think and to
conceptualize about abstract and complex
situations

see the organization as a whole

understand the relationships among subunits

visualize how the organization fits into its
©broader environment
Prentice Hall, 2002 1-١٥
EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

© Prentice Hall, 2002 1-١٦

What Do Managers Do? (cont.)

Managing Systems

System - a set of interrelated and interdependent
parts arranged in a manner that produces a unified
whole

provides a more general and broader picture of what
managers do than the other perspectives provide

Closed system - not influenced by and do not interact
with their environment

Open system - dramatically interact with their
environment

organizations - take in inputs from their environments

transform or process inputs into outputs

outputs are distributed into the environment

© Prentice Hall, 2002 1-١٧

The Organization As An Open System
Environment

System

Inputs Transformation Outputs

Raw materials Employee’s work Products and services
Human resources activities Financial results
Capital Management Information
Technology activities Human results
Information Technology and
operations methods

Feedback

Environment
© Prentice Hall, 2002 1-١٨
What Do Managers Do? (cont.)

Managing Systems (cont.)

managers must

coordinate various work activities

ensure that interdependent parts
work together

recognize and understand the
impact of various external factors

decisions and actions taken in
one organizational area will affect
other areas and vice versa
© Prentice Hall, 2002 1-١٩
What Do Managers Do? (cont.)

Managing in Different and Changing Situations

require managers to use different approaches and
techniques

Contingency perspective - different ways of
managing are required in different organizations and
different circumstances

The contingency perspective,
perspective, sometimes called the
situational approach, is a view that the organization recognizes
and responds to situational variables as they arise.

stresses that there are no simplistic or universal rules

contingency variable

© Prentice Hall, 2002 1-٢٠

EXHIBIT 1.8: POPULAR CONTINGENCY
VARIABLES

© Prentice Hall, 2002 1-٢١

What Is An Organization?

Organization
a deliberate arrangement of people to accomplish
some specific purpose

elements of definition
1. each organization has a distinct purpose
2. each organization is composed of people
3. all organizations develop some deliberate
structure

today’s organizations have adopted:
1. flexible work arrangements
2. open communications
© Prentice Hall, 2002 1-٢٢
3. greater responsiveness to changes
EXHIBIT 1.10:
10: THE CHANGING ORGANIZATION

© Prentice Hall, 2002 1-٢٣

Why Study Management?

Universality of Management

management is needed

in all types and sizes of organizations

at all organizational levels

in all work areas

management functions must be performed
in all organizations

consequently, have vested interest in
improving management
© Prentice Hall, 2002 1-٢٤
EXHIBIT 1.11:
11: UNIVERSAL NEED FOR
MANAGEMENT

© Prentice Hall, 2002 1-٢٥

Why Study Management? (cont.)

The Reality of Work

most people have some managerial
responsibilities

most people work for a manager

Challenges of Being a Manager

-being a manager is hard work
-- must deal with a variety of personalities
-- must motivate workers in the face of uncertainty

© Prentice Hall, 2002 1-٢٦

Why Study Management? (cont.)

Rewards and challenges of Being a Manager
 Challenges
 a. Managers may find it difficult to effectively blend the
knowledge, skills, ambitions, and experiences of a diverse group of
employees.
 b. A manager’s success typically is dependent on others’ work
performance.
 Rewards
 a. Managers get to create a work environment in which
organizational members can do their work to the best of their ability and
help the organization achieve its goals.
 b. Receiving recognition and status in the organization and the
community, playing a role in influencing organizational outcomes, and
receiving appropriate compensation.
 c. Satisfaction from knowing that efforts, skills, and abilities are
needed by the organization.

© Prentice Hall, 2002 1-٢٧