CHAPTER 1

Introduction to
Management

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SUBTOPIC
1.1 Definition of management

1.1.1 What is Management?

1.1.2 Why Study Management?

1.2 Essential Managerial Tasks

1.2.1 Planning

1.2.2 Organizing

1.2.3 Leading

1.2.4 Controlling

1.3 Levels and Skills of Manager

1.3.1 Levels of Management

1.3.2 Managerial Skills

1.4 Challenges for Management in Global Environment

1.4.1 Building Competitive Advantage

1.4.2 Maintaining Ethical and Socially Responsible Standards

1.4.3 Managing a Diverse Workforce

1.4.4 Utilizing New Technologies

1.4.5 Practicing Global Crisis Management

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 1.1 Definition of management

1.1.1 What is Management?

1.1.2 Why Study Management?

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 What Is Management?

Organizations
Organizations are collections of people who
work together and coordinate their actions
to achieve a wide variety of goals or desired
future outcomes.
All managers work in organizations.
Managers
Managers are the people responsible for
supervising the use of an organization’s
resources to meet its goals.

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 What Is
Management?
• Management
• Management includes the
planning, organizing,
leading, and controlling of
human and other resources
to achieve organizational
goals effectively and
efficiently.
• What difference can a
manager make? Satya
Nadella, Microsoft CEO

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What Is Management?

Resources
• Include assets such as:
1. People and their skills, know-how, and experience.
2. Machinery.
3. Raw materials.
4. Computers and information technology.
5. Patents, financial capital, and loyal customers and
employees.

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 • Organizational performance:
• A measure of how efficiently and
Achieving effectively managers use
High available resources to satisfy
Performance: customers and achieve
organizational goals.
A Manager’s • At SurveyMonkey, Zander Lurie’s
Goal goal is to continue with cutting-
edge technology (A I), to
promote innovation, and to grow
the global market.

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 Achieving High Performance:
A Manager’s Goal
Efficiency:
A measure of how well or how
productively resources are used to
achieve a goal.
• Wendy’s fat fryers use less oil and are quicker.

Effectiveness:
A measure of the appropriateness of the
goals an organization is pursuing and the
degree to which the organization achieves
those goals.
• McDonald’s all-day breakfast success.

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 Figure 1.1 Efficiency, Effectiveness, and
Performance in an Organization
High-performing organizations are efficient and effective.

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 Individuals generally
learn through
personal experience
or the experiences
Why Study of others.
Management?
• By studying management
in school, you are
exposing yourself to the
lessons others have
learned.

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 Why Study
Management?
• The economic benefits of becoming a good
manager are also impressive. In the United
States, general managers earn a median
wage of $99,310 with a projected growth
rate in job openings of 5 % to 9% between
now and 2026.

• Learning management principles can help

you make good decisions in nonwork
contexts.

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 1.2 Essential Managerial Tasks

1.2.1 Planning
1.2.2 Organizing
1.2.3 Leading
1.2.4 Controlling

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Figure 1.2 Four Tasks of
Management

Jump to Appendix 2 for description

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 1) Deciding which goals the organization will
pursue

2) Deciding what strategies to adopt to attain

Steps in those goals

the
Planning 3) Deciding how to allocate organizational
resources.
Process
Managers identify and select appropriate
organizational goals and develop strategies
for how to achieve high performance.

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 Organizing

• Organizing
• Structuring working
relationships so
organizational members
interact and cooperate to
achieve organizational goals

• Managers deciding how best to

organize resources, particularly
human resources

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 Organizing
• Organizational structure
• A formal system of task and
reporting relationships that
coordinates and motivates
organizational members so
that they work together to
achieve organizational goals
• ER director Daley works
closely with team,
increasing efficiency and
improving customer
satisfaction

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 Leading

• Leading
• Articulating a clear vision and
energizing and enabling
organizational members so they
understand the part they play in
achieving organizational goals
• An organization’s vision is a
short, succinct, and inspiring
statement of the
organization’s future state.
• Involves managers using their
power, personality, influence,
persuasion, and communication
skills to coordinate people and
groups

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 Controlling

• Controlling
• Evaluating how well an
organization is achieving
its goals and taking action
to maintain or improve
performance

• Managers monitor performance of

individuals, departments, and the
organization as a whole to determine if
they are meeting performance
standards

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 The outcome of the control
process is the ability to measure
performance accurately and
Controlling
regulate organizational
efficiency and effectiveness.

Managers must decide which

goals to measure.

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Example: Mercy Medical Center

Erin Daley is the ER director for Mercy

Medical Center in Massachusetts.
Improving ER department efficiency and
quality of care while keeping costs within
budget can be daunting.
Managers like Erin Daley must develop
strategies and processes where hospitals
can move patients through the system faster
while improving patient satisfaction.

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 1.3 Levels and Skills of Manager

1.3.1 Levels of Management

1.3.2 Managerial Skills

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 Levels and Skills of Managers

• Department
• A group of managers and
employees who work
together and possess
similar skills or use the
same knowledge, tools,
or techniques
• Example: the
manufacturing,
accounting, engineering,
or marketing department

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Figure 1.3 Levels of Management

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Levels of Management

First-line managers (often called supervisors)

• Responsible for the daily supervision of the
nonmanagerial employees
• Paint foreman overseeing a crew of painters at a University

Middle managers
• Supervises first-line managers
• Responsible for finding the best way to use
resources to achieve organizational goals
• High school principal or a marketing manager

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Levels of Management

Top managers
• Responsible for the performance of all
departments
• Establish organizational goals
• Decide how different departments should
interact
• Monitor how well middle managers in each
department use resources to achieve goals
• President of a university

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 Conceptual skills

• The ability to analyze and diagnose a

situation and distinguish between cause
and effect

Human skills
Managerial • The ability to understand, alter, lead,
Skills and control the behavior of other
individuals and groups

Technical skills

• Job-specific skills required to perform a

particular type of work or occupation at
a high level

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Levels and Skills of Managers
Figure 1.4 Relative
Amount of Time
Managers Spend
on the Four
Managerial Tasks

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Figure 1.5: Types and
Levels of Managers

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Core Competency

Core competency
• Specific set of departmental skills, abilities,
knowledge and experience that allows one
organization to outperform its competitors
• Skills for a competitive advantage
• Google’s core competency, research and development,
allows them to develop innovative products and services
(computerized glasses, self-driving cars).

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 1.4 Challenges for Management in Global
Environment

1.4.1 Building Competitive Advantage

1.4.2 Maintaining Ethical and Socially
Responsible Standards
1.4.3 Managing a Diverse Workforce
1.4.4 Utilizing New Technologies
1.4.5 Practicing Global Crisis Management

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 Building a competitive advantage

Challenges Maintaining ethical and socially

responsible standards
for
Management Managing a diverse workforce
in a
Global
Utilizing new technologies
Environment

Practicing global crisis management

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 Competitive advantage

• Ability of one organization to

outperform other organizations
because it produces desired
goods or services more
Building efficiently and effectively than
its competitors
Competitive
Advantage Innovation

• The process of creating new or

improved goods and services or
developing better ways to
produce or provide them

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Figure 1.6 Building Blocks of
Competitive Advantage

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Turnaround Management

Turnaround management
• Creation of a new vision for a struggling
company using a new approach to planning
and organizing to make better use of a
company’s resources to allow it to survive and
eventually prosper
• Apple’s Steve Jobs excelled at turnaround management.
https://brownandjoseph.com/blog/11-turnaround-success-
stories/

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Maintaining Ethical and
Socially Responsible Standards
Managers are under considerable pressure
to make the best use of resources.
Too much pressure may induce managers to
behave unethically and even illegally.
• Wells Fargo Scandal “Eight is great”

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 • To create a highly trained and motivated
Managing a workforce, managers must establish human
resource management (HRM) procedures that
Diverse are legal and fair and do not discriminate against
organizational members.
Workforce
• Accenture uses a diverse workforce to its
advantage.

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 • An efficient and effective IT system may improve an
organization’s performance.

Utilizing New • UPS uses ORION

Technologies • A GPS system that optimizes

drivers’ routes

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 • Create teams to facilitate
rapid decision- making
and communication.
• Establish the
organizational chain of
command and reporting
relationships necessary
to mobilize a fast
response.
• Recruit and select the
right people to lead and
work in such teams.
• Develop bargaining and
negotiating strategies to
Practicing Global manage the conflicts that
arise.

Crisis Management
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