SCRIPT

Subject: Management
Chapter 1: INTRODUCTION TO MANAGEMENT
Topic 1: The goal and concept of management

Slide Content

Hello everyone,
Welcome to Chapter 1, Introduction to Management. By the end of this chapter,
you will be able to effectively use English to:
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➢ Explain the goal and concepts of management.
➢ Differentiate between the tasks and roles of managers.
➢ Identify and differentiate among the three levels and skills of managers.
In this chapter, we will cover three main topics:
1. The goal and concepts of management.
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2. Managerial tasks and roles.
3. Levels and skills of managers.
Let's begin with the first topic: The goals and concepts of management. After
studying this topic, you will be able to:
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➢ Explain the goals of management.
➢ Describe the concept of management.
The first goal is to clarify the purpose of management. Management aims to provide
goods and services that customers value and desire. To achieve this, managers are
responsible for efficiently and effectively utilizing an organization's resources to
5 accomplish its goals. Efficiency and effectiveness are the two key measurements
of organizational performance and management’s main goals. To fully
understand organizational performance, effectiveness, and efficiency, let's explore
their meanings.
 What is organizational performance?
Organizational performance involves analyzing how well an organization has
performed in relation to its objectives and goals. In other words, it measures the
actual results or outputs achieved compared to the intended outputs. It reflects
how efficiently and effectively managers have utilized available resources to satisfy
customers and achieve organizational goals. Typically, the analysis focuses on three
main outcomes: shareholder value performance, financial performance, and market
performance.
Let's say a company set a goal to increase its annual revenue by 10% over the
previous year. At the end of the year, the company's financial statements show that
6 its revenue has actually increased by only 5%. This would indicate that the company
has not fully achieved its intended output.
To analyze the organizational performance, the company's management team
would need to assess the factors that contributed to the shortfall, such as changes in
the market, internal operational issues, or external factors beyond their control.
They would then need to identify areas for improvement, such as revising sales
strategies, improving production processes, or investing in new technology.
By conducting this analysis, the company's management team can gain insights into
how well they have utilized resources and strategies to achieve their goals. They
can then use this information to make informed decisions and take corrective action
to improve organizational performance in the future.
What is effectiveness?
Effectiveness measures the appropriateness of the goals selected by managers for
the organization and the degree to which those goals are achieved. In simple terms,
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effectiveness measures the alignment between the intended and actual goals of
an organization. An organization is considered effective when managers choose
appropriate goals and successfully achieve them.
 Let's say a retail company has set a goal to increase its market share in the fashion
industry by 5% over the next year. The company's management team conducts
market research and identifies that there is a demand for eco-friendly clothing
among consumers.
The company decided to align its goal with this trend and launched a new line of
eco-friendly clothing. The line is well-received by consumers, and the company's
market share in the fashion industry will increase by 6% over the next year,
exceeding its original goal.
In this case, the company has demonstrated effectiveness in its goal-setting and
goal-achievement process. The management team identified an appropriate goal
based on market research and aligned it with a relevant trend for consumers. The
company achieved its goal and even exceeded it, indicating that the chosen goal
was appropriate and well-aligned with its strategic direction.
What is efficiency?
Efficiency refers to the level of performance that describes achieving the highest
output using the least amount of input. In other words, it signifies how well
resources are utilized to accomplish a goal. An organization is deemed efficient
when managers minimize the consumption of input resources (such as raw
materials, money, time, energy, and effort) while maximizing output (such as goods
or services).
8 Let's say a manufacturing company produces a certain product that requires a
specific raw material. The company's management team analyzes the production
process and identifies an opportunity to reduce the amount of raw material used
without compromising the quality of the product.
The team implements a new production method that reduces the amount of raw
material used by 20%, while still maintaining the same level of output. As a result,
the company is able to produce the same amount of product using fewer raw
materials, reducing its input costs and improving its bottom line.
 In this case, the company has demonstrated efficiency in its production process by
achieving the same output using fewer input resources. The management team
identified a way to minimize the consumption of raw materials and still maintain
the quality of the final product, resulting in cost savings and improved performance.
To clarify the concepts of efficiency, effectiveness, and performance in an
organization, let's illustrate them through the following example:

Efficiency and effectiveness are crucial as they help managers control and evaluate
organizational performance. To understand their importance, let's consider the
following example:
For example:
A manager has 12 rolls of fabric. He hands them over to 4 people. Each one has 3
10 rolls, and he wants every person to make up 100 T-shirts within 5 hours.
End result
Person A has made up 100 T-shirts within 6 hours.
Person B has made up 100 T-shirts within 5 hours.
Person C has made up 80 T-shirts within 6 hours.
Person D has made up 102 T-shirts within 4 hours.
 Based on the example, we can observe the following:
Person A achieves effectiveness but lacks efficiency.
11 Person B achieves efficiency but lacks effectiveness.
Person C fails to achieve both effectiveness and efficiency.
Person D achieves both effectiveness and efficiency, resulting in high performance.
Hence, effectiveness refers to the degree of goal achievement, while efficiency
represents the degree of resource consumption in achieving those goals.
Effectiveness means "doing the right thing," whereas efficiency means "doing
things right."
12 In conclusion, the goal of management is to achieve both effectiveness and
efficiency, which measure organizational performance. By striving for these goals,
management assists managers in controlling and evaluating an organization's
performance, ultimately enhancing overall performance. Now, let's move on to the
second section of this topic: understanding the concept of management.
Management encompasses various concepts. Firstly, Frederick Taylor, the father of
scientific management, defined management as "an art of knowing what needs to
be done and ensuring it is done in the best possible manner." Secondly, Henri Fayol,
considered the father of modern management, stated that "management involves
forecasting, planning, organizing, commanding, coordinating, and controlling
activities of others." Thirdly, Peter Drucker, a renowned management consultant
13 and educator, in his book "The Practice of Management," described management
as a multipurpose function that handles the business, managers, workers, and work
itself. Lastly, Gareth Jones defined management as the process of planning,
organizing, leading, and controlling human and other resources to achieve
organizational goals efficiently and effectively.
Thank you for your attention, and we will delve into the next topic in the next
session.