Session 01

Introduction to Organization
and Management

MC9010 – Management & Case Studies

Ms. Jasintha Nirojan
Faculty of Management studies & Commerce
Department of Human Resource Management
University of Jaffna
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 Intended Learning Outcome
After studying this chapter, you should be
able to:
• Describe the organization and business organization
• Describe the four management functions and the type of
management activity associated with each.
• Explain the difference between efficiency and effectiveness and
their importance for organizational performance.
• Define the skills and ten roles that managers perform in
organizations.
• Understand the personal challenges involved in becoming a new
manager.

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 Management can be practiced in
different contexts

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 Session 01 - Contents

 Organization
 Management
 Managers
 Management and the New
Work Place
 Organizational Environment

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 What is an Organization

?
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 An Organization - Definitions
 A group of people who work together in a structured
way for a shared purpose
(Cambridge Advanced Learners Dictionary)

 An organization is a two or more people who work

together in a structured way to achieve a specific goal
or set of goals.
(Stoner and Freeman,2009)

 An organization is a deliberate arrangement of people

to accomplish some specific purpose.
(Robbins and Coulter, 2007)
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 Other Perspectives on
Understanding an Organization

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 An Organization is

 “ a socio-economic entity”.
This perspective views that organizations are
entities which engaged in social as well as
economic activities.

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 An Organization is
 “a social sub-system”.
This perspective views an organization as a sub-
system of the society.

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 Organizations as Social
Sub-systems

 What is a system?

 How can we identify an organization

as a system?

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 What is a System ?
A system is an assemblage of interacting
and interdependent components working
together to achieve a common goal.

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 Main Features of a System

 Set of interacting components

 Integrated as a whole
 Operates within a certain boundary
 Work together to achieve a common goal

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 Organization as a “System”

System perspective views the

organization as a unified, purposeful
system composed of interrelated parts.

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 Why we need Organizations?

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 What is a Business ?

A business is an any economic activity

carried out to satisfy human needs and
wants.

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 Business Organization

A business organization is a collection of

individuals and deliberately structured entity
which produces goods and/or services utilizing
limited resources to achieve its specific goals
and objectives.

Apply to all organizations: for profit, non-profit and not-for -

profit.

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 Bases for Classification of
Business Organizations
 Objective (Profit/ Non Profit/ Not for profit)
 Product (Goods/ Services)
 Ownership (State/ Private)
 Scale (Small/ Medium/ Large)
 Technology (Capital/ Labour)
 Market ((Local/ International)
 Etc.

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Objectives of Business Organizations

 What is an objective?
Objectives are those end results toward which the
organizational activities are directed.
(Koontz and Donnel)

 Classification of objectives
Objectives can be classified based on the level of
significance and time horizon.

 Multiple objectives of an organization

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 Multiple Objectives of a Business
Organization

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 Whose objective/s should be
served by a business?

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 Trade
Stakeholders of Unions
Political
Parties

an organization
Customers

General Media Debtors

Community Employees

Business
Competitors Organizations Suppliers

Educational
Owners
Institutions
Government Creditors

Customers

Trade
Associations
Financial
Institutions

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 Key result areas
 Market Standing
 Innovation
 Productivity
 Physical and Financial Resources
 Profitability
 Manager Performance and Development
 Worker Performance and Attitudes
 Public Responsibility
(Peter Drucker)
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 Management

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 Management in Business Organizations

Business

Organisation Management

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 What is Management???

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 Different Definitions of
Management

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 Management Definitions
Definition – 1
Management is the art of getting things done through
other people.
Mary Parker Follet (1868-1933)

Definition – 2
Management is the art of getting things done through
and with people in formally organized group.
(Koontz)

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 Management Definitions
Definition – 3
Management is the process of planning, organizing,
commanding, coordinating and controlling.
(Fayol,1930)

Definition – 4
Management is the process of planning, organizing, leading
and controlling, the efforts of organization members and of
using all other organizational resources to achieve
organizational goals.

(Stoner and Freeman,2009)

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 Management Definitions
Definition – 5
Management is the attainment of organizational goals in
an effective and efficient manner through planning,
organizing, leading and controlling organizational
resources.
(Daft,2012)

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 Hence, Management can be broadly defined as:

“A process of planning, organizing, leading and

controlling the limited resources efficiently and
effectively to achieve predetermined goals and
objectives in an ever changing business environment.”

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 Management in Organizations
Environment

Planning Organizing

Inputs from the environment

• Human resources Goals Attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading

(Source: Adapted from Van Fleet, David D., Contemporary Management, Second Edition.)

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 Core Concepts of Management
 Resources
 Efficiency
 Effectiveness
 Productivity
 Process
 Goals/Objectives
 Environment
( Core Concept is a notion or an idea, and in this context it refers to the key terms used
to define and understand what management is?)
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 Limited Resources

Money Information

Minutes
Machines
Men

Material

Methods
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 Resources
An organization's resources include,
 Human Resources
 Financial Resources
 Physical Resources
 Information Resources
(Griffin,2012)

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 Effectiveness & Efficiency

Efficiency:
The degree to which limited resources
are optimally used.

Effectiveness:
The degree to which the intended results
are achieved.
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 High performing organizations are
effective and efficient

(John R. Schermerhorn)
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 Productivity
Productivity is the relationship between the
output generated by a production or service
system and the input provided to create this
output.

Productivity = Efficiency + Effectiveness

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 How to improve Productivity

Decrease Increase
Input Output

Increase Increase
Efficiency Effectiveness
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 Management – as a Process

Planning

Controlling Organizing

Leading

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 Four Functions of Management

(Jones and George, 2008)

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 Characteristics of management
Management is a continuous process
Management is an art as well as science
Management aims at achieving predetermined
objectives
Management is a factor of production
Management is decision-making
Management is needed at all levels
Management aims at maximum profit
 Management

Is it a Science or an Art?

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 Management as a Science
Science is a body of knowledge pertaining to a specific field of
study. It contains theories, principles and facts.

 Management as an Art
Art implies the application of knowledge and skills to bring
about the desired results.

Management is both a science as well as an art.

Science(theory) and art (practice) are both essential for
the success of management.
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Functional areas of management
1) Production
Purchasing
Materials management
Research and Development
2) Marketing
 Advertising
Marketing research
Sales management
Con…..
3) Finance and accounting
Financial Accounting
Management Accounting
Costing
Investment Management
4) Personnel
Recruitment and Selection
Training and Development
Wage and Salary Administration
 Why Management?

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 Manager

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 Who is a Manager?

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 Manager/s
 The people responsible for directing the efforts aimed at
helping organizations achieve their goals.
(Stoner, Freeman and Gilbert, 2008)

 Someone who coordinates and oversees the work of other

people so that organizational goals can be accomplished.
(Robbins and Coulter, 2012)

 Someone whose primary responsibility is to carry out the

management process.
(Griffin,2012)

In general we can define a manager as someone who performs

management functions in an organization.

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 Types of Managers
 The Level of Authority (Managerial Levels)
First line managers
Middle managers
Top managers
 Scope of the Activities
Functional managers
General managers

 Responsibility of the Activities

Line managers
Staff managers

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 Classification of Managers by the
Managerial Level

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 Types of Managers based on the Scope
of Activities in an Organization
General
Manager

Production Marketing Finance HR

Manager Manager Manager Manager

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 Classification of Managers by the
Responsibility
General
Manager

Production Marketing Finance HR

Manager Manager Manager Manager
Direct Responsibility Indirect Responsibility

Line Staff
Managers Managers
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 Managerial Skills
Managerial skills is generally a pre-requisite for
management success. (Certo and Certo 2009)

What type of skills do managers need?

Robert L. Katz proposed that managers need three
critical skills in managing an organization.
 Conceptual skills
 Human skills
 Technical skills

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• Conceptual skills: refer to the ability to see the “big
picture,” understand how the various parts of the
organization affect each other, and conceptualize how those
parts can be organized to improve the performance of the
overall organization. (Essential to Top level Managers)

• Technical Skills enable managers to perform specific

activities involving methods, processes, or techniques.
(Essential to Low level Managers)

• The human skills that managers need include the abilities

to communicate, persuade, manage conflict, motivate,
coach, negotiate, and lead. (Essential to all level Managers)

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 Relative Skills Needed for Effective Performance
at Different Levels of Management

Conceptual
Skills
Top
Level

Middle Human
Relation Skills
Level

Technical
Lower Level Skills

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 What Managers Do?

Henry Mintzberg’s Managerial Roles

Managerial roles refers to specific actions or behaviors

expected of and exhibited by a manager.
(Robbins and Coulter, 2011)

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 Key Managerial Roles (Mintzberg)
Key Management
Roles

Informational Decisional
Interpersonal Roles
Roles Roles
 Figurehead  Monitor  Entrepreneur
 Leader  Disseminator (Innovator)
 Liaison  Spokesperson  Disturbance
Handler
 Resource Allocator
 Negotiator

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 To be an effective and efficient manager, we need

Knowledge Skills Positive Attitudes

Know-what Know-how Positive attitudes on work

Positive attitudes on people

General Skills Specific Skills Positive attitudes on environment

Conceptual Positive attitudes on self

Skills

Technical Skills

Human Skills

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 Management and the New Work
Place

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 The New Workplace
New workplace Old workplace

 Forces
technology digital mechanical
markets global local, domestic markets
workforces diverse homogeneous
pace change, speed stability, efficiency
events turbulent calm, predictable

 Characteristics
resources information, knowledge physical assets
work flexible, virtual structured, localized
workers empowered loyal

 Management competencies
Leadership dispersed, empowering autocratic
doing work by teams by individuals
relationships collaboration conflict, competition
design experimentation, learning top down control

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 Challenges faced by Modern-day Managers

 Managing global competition.

 Facing the competition through superior efficiency,
quality, innovation, and responsiveness.
 Increasing performance while being an ethical manager.
 Balancing the interests of different stakeholders.
 Managing a diversified workforce.
 Adopting new technologies.
 Managing creativity, innovation and continuous change.

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End

Q’s and Clarifications if any

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