Table of Contents

Topic 1: Introduction to Management .................................................................................... 3

1.1 Definition of management and managers ................................................................ 3

1.1.1 Definition of manager ............................................................................................ 3

1.1.2 Definition of management ..................................................................................... 4

1.2 Functions of management ........................................................................................... 4

1.2.1 Planning ................................................................................................................ 4

1.2.2 Organizing............................................................................................................. 4

1.2.3 Leading ................................................................................................................. 4

1.2.4 Controlling ............................................................................................................. 4

1.3 Managerial levels......................................................................................................... 5

1.3.1 Top manager......................................................................................................... 5

1.3.2 Middle manager .................................................................................................... 5

1.3.3 First line manager ................................................................................................. 5

1.3.4 non-managerial employee / Operational employees .............................................. 6

1.4 Managerial skills ..................................................................................................... 6

1.4.1 Conceptual skill ..................................................................................................... 6

1.4.2 Human skill ...................................................................................................... 6

1.4.3 Technical skill .................................................................................................. 6

1.5 Managerial roles .......................................................................................................... 6

1.5.1 Interpersonal roles ................................................................................................ 7

1.5.2 Informational roles................................................................................................. 7

1.5.3 Decisional roles ..................................................................................................... 8

1.6 History of management.............................................................................................. 10

1.6.1 Classical/Traditional Perspective......................................................................... 10

1.6.2 Humanistic perspective ....................................................................................... 13

Assumptions .................................................................................................................... 15

1.6.3 Contemporary Perspective .................................................................................. 15

Topic 1: Introduction to Management

LEARNING OUTCOMES

1. Explain why managers are important to organizations

2. Tell who managers are and where they work
3. Describe the functions, roles, and skills of managers
4. Describe the factors that are reshaping and redefining the manager’s job
5. Explain the value of studying management

Introduction

- Organizations need their managerial skills and abilities more than ever in these uncertain,
complex, and chaotic times.
- Managerial skills and abilities are critical in getting things done.
- The quality of the employee/supervisor relationship is the most important variable in
productivity and loyalty.

1.1 Definition of management and managers

1.1.1 Definition of manager

Someone who coordinates and oversees the work of other people so that organizational goals
can be accomplished.

1.1.1.1 What do managers do

Management involves coordinating and overseeing the work activities of others so that their
activities are completed efficiently and effectively.
1.1.2 Definition of management

Management can be defined as process of planning, organizing, leading and controlling of an

organization in order to achieve established goals

1.2 Functions of management

There are four (4) functions of management

1.2.1 Planning

Defining goals, establishing strategies to achieve goals, and developing plans to integrate and
coordinate activities.

1.2.2 Organizing

Arranging and structuring work to accomplish organizational goals.

1.2.3 Leading

Working with and through people to accomplish goals.

1.2.4 Controlling

Monitoring, comparing, and correcting work.

1.3 Managerial levels

1.3.1 Top manager

Individuals who are responsible for making organization-wide decisions and establishing plans
and goals that affect the entire organization.

1.3.2 Middle manager

Individuals who manage the work of first-line managers.

1.3.3 First line manager

Individuals who manage the work of non-managerial employees.

1.3.4 non-managerial employee / Operational employees

Employees who are involved in the day-to-day physical or “hands-on” operation, for example
produce the products, handling customer requirements, and so on.

1.4 Managerial skills

1.4.1 Conceptual skill

- Definition: The ability to coordinate and integrate all of an organization’s interest and
activities.
- It involves seeing the organization as a whole and how various parts in organization fit
together.
- Conceptual skills are extremely important to top managers.
- Example of conceptual skill is the ability to develop culture for the organization.

1.4.2 Human skill

- Definitions: The ability to work effectively with other people.

- This skill is utilized equally by all levels since no level in any organization operating without
interacting and communicating with each other.
- Example of human is the ability to serve as liaisons and interact with team members and
other members in the organization.

1.4.3 Technical skill

- Definition: Ability to use specific knowledge, procedures and techniques in

performing work.
- It is important to first-line manager.
- Technical skills are developed through experienced and education.
- Examples of professions that require technical skills are surgeons, engineers, and musician
have technical skills.

1.5 Managerial roles

Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of

information, and decision making.
1.5.1 Interpersonal roles

An interpersonal role is the manager’s responsibility for managing relationships with

organizational members and other constituent.

Interpersonal roles can be divided into 3 roles:

1.5.1.1 Figurehead
Duties that are symbolic or ceremonial in nature.
Example of figurehead is manager signing legal documents and appears at community
function.

1.5.1.2 Leader
Involves directing and coordinating the activities of subordinates.
Example of leader is motivating, hiring, training and promoting.

1.5.1.3 Liaison
Involves performing and interacting with other people outside the organization. Example: a
college dean must interact with individuals all over the campus.

1.5.2 Informational roles

An informational role is the manager’s responsibility in ensuring that the people with whom
they work have sufficient information to do their jobs effectively.

Informational roles can be categorized into 3 roles:

1.5.2.1 Monitor
Manager continuously seek information of internal and external environment that can be used
to advantage.
Example: When manager reading periodicals and reports to get information on the industry
sales.

1.5.2.2 Disseminator
Information received internally or externally will be transmitted to the subordinates.
Example of disseminator is manager making phone calls to relay information.
1.5.2.3 Spokesperson
Transmits information received to outsiders.
Example: manager giving information to the media or press conference

1.5.3 Decisional roles

A decisional role is manager’s responsibility for processing information and reaching

conclusions.

Decisional roles can be divided into 4 major roles:

1.5.3.1 Entrepreneur
Searches opportunities and initiate improvement of organization.
Example of entrepreneur is manager designing new product.

1.5.3.2 Disturbance Handler

Responsible for corrective action when organization faces important, unexpected
disturbances.
Example: when manager negotiating with uncooperative supplier and intervening in a dispute
between employees.

1.5.3.3 Resource Allocator

Responsible on allocating the resources of organization.
Example: manager preparing schedules and programming of subordinates’ work.

1.5.3.4 Negotiator
Responsible for representing the organization at major negotiation.
Example: when manager negotiate with suppliers and customers.
1.6 History of management

Development of Management Thought

Scientific management theory / Approach

Classical/Traditional
Administrative Management
Perspective

Bureaucratic Management

Human relations movement

Humanistic Perspective
Human resources perspective

Behavioral sciences approach

System approach
Contemporary
Perspective
Contingency approach

1.6.1 Classical/Traditional Perspective

Scientific management theory / Scientific Approach

Definition: A management approach that sought to determine scientifically, the best method
of doing job → concentrated on everyday problem of work force which include problems
of training, selecting and motivating workers.

It focuses on productivity of the individual worker.

The greatest contributor to scientific management is Frederick W. Taylor → also known as

father of management.
There are three main areas that Frederick W. Taylor had contributed towards productivity of
the individual workers:

A. Task Performance
Taylor believed that there was the best way to perform each separate work task.

In finding an ideal way of performing each task, Taylor incorporates basic ideas of
scientific management which includes:

The development of work standard – Developed standard method for performing

each job within the organization.
Selection of workers – Selected workers with appropriate abilities for each job.
Training of workers – Trained workers in standard methods.
Support of workers – Supported workers by planning their work.

B. Supervision
In area of supervision, Taylor felt that a supervisor could not be an expert of all
tasks.

This is because most supervisors were promoted once they show high levels of skill in
performing a particular function.

Taylor suggested that each supervisor should be assigned to each work area, with
each having a separate responsibility (specialization).

C. Motivation
Taylor felt that money was the way to motivate workers.

He developed a compensation system involving the payment of higher wages to more

efficient workers, which is called differential rate system.

Taylor believed that such financial incentives would induce workers to produce
more so that they might earn more money.

Contribution of scientific management:

a) Increases productivity and efficiency.
b) Demonstrated the importance of compensation for performance.
 c) Demonstrated the importance of personnel selection and training.
d) Initiated the careful study of tasks and jobs.

Limitations of scientific management:-

a) Did not appreciate the social context of work and higher needs of workers.
b) Did not acknowledge differences among individuals.
c) Tended to regard workers as uninformed and ignored their ideas and suggestion.

Administrative Management

Definition: A management approach that focused on managers and the functions they
perform.

Unlike scientific management who concerned with the job of supervisor, administrative
principles interested in the job of manager.

The most well-known contributor of administrative management approach is Henry Fayol.

Fayol then developed 14 principles of management which are:

i.Division of labor – specialization increases output by making employees more efficient.
ii.Authority - Managers must give orders so that they can get things done.
iii.Discipline – Employees must obey and respect the rules that govern the organization.
iv.Unity of command – Each employee should receive orders from only one manager.
If employee reported to many managers, conflict in instruction would result.
v.Unity if direction – One manager using one plan should direct those operations within
the organizations with the same objective.
vi.Subordination of individual’s interest to the general interest – The interest of one
employee should not take precedence over the interest of organization as a whole.
vii.Remuneration – Workers must be paid fairly.
viii.Centralization – Task is to find the optimum degree of centralization for each situation.
ix.Scalar chain – The line authority from the top management to the lowest rank.
x.Order – People and materials should be in the right place at the right time.
xi.Equity – Manager should be kind and fair to their subordinates
xii.Stability of Staff – High employee turnover is inefficient.
xiii.Initiative – employees should be given freedom to carry out their plans even though some
mistake may result.
 xiv.Esprit de corps – promoting team spirit will build harmony and unity within the
organization.

Bureaucratic Management

Definition - A system characterized by division of labor, a clearly defined hierarchy,

detailed rules and regulations and impersonal relationships.

Bureaucratic organization was introduced by Max Weber.

Elements of bureaucracy:
1. Division of labor – Labor is divided with clear definition of authority and responsibility.
2. Authority of hierarchy – position is organized in hierarchy.
3. Formal selection – All members are selected based on knowledge and skills.
4. Formal rules and regulations – Managers must depend on formal organizational rules to
ensure standardization.
5. Impersonality – Personal favoritism is avoided in the operation of the organization.
6. Employee selection and promotion – All employees are selected in the basis of technical
competence and are promoted based on their job related performance.

1.6.2 Humanistic perspective

A. Human relations approach.

1. Definition of human relations: Refers to how manager interact with their
subordinates.
2. Human relations concentrated on the social environment.
3. The human relations approach grow out of famous series of studies known as
“Hawthorne Studies” – Hawthorne studies concluded that employees work
harder if they believed management was concerned about their welfare and
gave special attention to them – satisfied worker will be productive.

B. Human resources perspective

1. Definition – A management perspective that suggests jobs should be designed
to meet higher level needs by allowing workers to use their own full
potential.
2. Human resources perspective combines prescriptions for design of task
with the theories of motivation.
 3. The contributors of human resources perspective were Abraham Maslow and
Douglas McGregor.

C. Behavioral science approach

1. Behavioral science approach encompasses a group of psychologist and

sociologist who relied on scientific method to study people at work.
2. Behavioral scientist believed that an individual is motivated to work not only
for money and social relationship but also for many reasons.
3. Contributors of behavioral perspective:
a. Mary Parker Follett
i. Follett’s believed that the key to an effective management is
coordination.

ii. According to her, managers needed to coordinate and harmonize group

efforts rather than force and coerce people.

iii. She developed 4 principles of coordination to promote effective work

group:
➢ Coordination requires that people be indirect contact with one
another.
➢ Coordination is essential during the initial stages of any endeavor.
➢ Coordination must address all factors and phases of any endeavor.
➢ Coordination is a continuous, ongoing process.

b. Elton Mayo
i. Elton Mayo introduced the Hawthorne effects.

ii. Hawthorne effect is a phenomenon whereby individual or group

performance is influenced by human behavior factors.

iii. The Hawthorne effect revealed that factors not specified by

management may directly influence productivity and worker satisfaction
→ Productivity increases were being caused not by physical event by
a human behavior phenomenon.

iv. Hawthorne studies added the human element to management thinking.

 c. Douglas McGregor
i. Formulate theory X and Theory Y – an assumptions with which
managers might view their subordinates
ii. Comparison of Theory x and Theory Y assumptions:

Factor Theory X Theory Y

Assumptions Assumptions
Employees enjoy work and
a) Employee attitude will seek it
Employees dislike work and
actively toward work
will avoid it if at all possible

Employees are self-

Employees must be
a) Management view self of motivated and directed
directed, coerced,
direction organizational toward achieving
controlled or threatened to
organizational goals
get them to put forth
adequate effort

b) Employee view of
Employee wish to avoid
direction Employees seek
responsibility; they prefer to
responsibility; they wish use
be directed and told what to
their creativity, imagination
do and how to do it
and integrity in performing
their jobs

1.6.3 Contemporary Perspective

The system approaches

a) Definition: View an organization as a group of interdependent parts with a
unified purpose.
b) It tells us that activity of any segment of organizations affects the activity of other
segment.

The contingency approach

a) Definition: View that there is no one best approach to management exists
because each situation that manager faces is different.
b) The contingency approach involves identifying the important contingency variables
in different situation, evaluating the variables and selecting an effective approach
to the situation.
c) The contingency approach has been a main contributor to the integration of
management theory.