Fundamental of Management

MGT 162

Chapter 1
Introduction to Management
1.1 Definition of Organization
and Management
 Organization – is a social entity that is goal
directed and deliberately structured.
 - A group of individual who work together
toward common goals.
 Management – is the process of
administering and coordinating resources
effectively and efficiently in an effort to
achieve the goals of the organization.
Cont..
 Management – is the process of planning
,organizing leading and controlling the
work of organization members and of using
all available organizational resources to
reach stated organizational goals.( Stoner)
 Manager- is someone who plants and makes
decision , organizes ,leads and controls
human, financial physical and information
resources.
1.2 Measuring managerial
Performance

 Effectiveness- Pursuing the appropriate

goals- “Doing the right things”

 Efficiency- Using the fewest inputs to

generate a given output- “Doing things
right”
1.3 Management Function and
Activities
 Planning – Setting goals and defining the
actions necessary to achieve those goals.
 - Where the organization wants to be in the
future and how to get there.
 - Defining goals for future organizational
performance and deciding on the tasks and
use of resources needed to attain them.
Organizing
 The process of determining the tasks to be
done ,who will do them and how those tasks
will be managed and coordinated.

 - also involved the assignment of task ,

grouping of tasks into department and the
allocation of resources to department.
Leading
 Motivating and directing the member of the
organization so that they contribute to the
achievement of the goals of the organization.

 Use of influence to motivate employee to achieve

organizational goals,-creating share culture and
value , communication goals to employee
throughout the organization and infusing
employee with the desire to perform at a high
level.
Cont..
 Leadership- is the ability to influence people towards
the attainment of organization goals.

 3 types – Autocratic Leadership – Democratic

/Participative Leadership
– Free –rein Leadership (Laissez –Faire)

 Motivation – is the process of creating

organizational condition that will result in employees
striving and working toward the company goals.
Controlling
 Monitoring the performance of the
organization , identifying deviations
between planned and actual results and
taking corrective action when necessary.
1.4 Managerial Levels

 Top (high) Management Top Level

Managers
 Middle Management – Middle Managers
 First-Line Management – Supervisory
 Operational Employees.
1.5 Managerial Skills

 Conceptual Skills (Analytical Skills)

 Interpersonal Skill( Human Skill)
 Technical Skills
 Decision Making Skill
1.6 Managerial Roles
 A Role is a set of expectation for a manager ‘s behaviors
 Interpersonal Roles
- Figurehead
- Leader
- Liaison
 Informational Roles
• Monitor
• Disseminator
• Spokesperson
 Decisional Roles
• Entrepreneur
• Disturbance Handler
• Resources Allocator
• Negotiator
1.7 Comprehensive Analysis of
Management
 The Classical Approach
- Classical approach to management resulted from the first significant,
concentrated effort to develop a body of management thought.
Management writers who participated in this efforts are considered thr
pioneer of management study.
- Scientific Management
- The use of scientific methods to define the “one best way” for
the job to be done.
Frederick Winslow Taylor (1856-1915) – an American Engineer
‘Father’ of scientific management.
- Taylors Observation led him to formulate opinions in the areas
of task performance, supervision and motivation.
- 1. Task Performance
-2. Supervision
-3. Motivation
Cont..
 Administrative management
- Focuses on manager and it function they perform. This
approach is most closely identified by Henri Fayol (1841-
1925) Mining Engineer.
General principle introduced by Fayol are still consider by most
manager to useful in contemporary management practice.
-1.Division of work
2.Authority
3. Discipline
4. Unity of command
5. Unity of Direction
6. Subordinate of individual interest to the general
interest
Cont…
 Cont..
• 7.remenuration
• 8. Centralization
• 9.Scalar of chain
• 10. Order
• 11.Equity
• 12. Initiative
• 13.Esprit de corps
Cont..
 Bureaucratic Management
- it focus on the overall organization system
and is based upon firm rules, policies and
procedures ,a fixed hierarchy and clear
division of labor.
Max Weber (1864-1920) German sociologist
and historian is most closely associated with
bureaucratic management.
Behavioral perspective
 Manager were being presented with more
and more evidences that human behavior
has a significant impact on the actions of
workers. Observation and evidences such as
this give rise to the behavioral perspective
or management, which recognizes the
importance of human behavior patterns in
shaping managerial styles.
Cont..
 Mary Parker Follet-Social philosopher early
1900s who proposed more people oriented
ideas, a radical change from the scientific
management theories being promoted
- Her humanistic ideas influenced the way
we look at motivation, leadership,
teamwork's, power and authority.
Cont..
 Elton Mayo
- The most important contribution to the
developing organizational behavior field came out
of the Hawthorne Studies, conducted at the
Western Electric Company Works in Cicero
,Illinois.
- The Hawthorne Studies played a significant role
in changing the dominant view at the time that
employees were no different from any others
machines that the organization used, that is they
were there only for the purpose of helping the
organization efficiently teach reach its goals.
Cont…
 Douglas Mc Gregor- Pyscologist – He was not
totally satisfied with the assumption about human
behavior that were to be found in the classical
perspective and the early contribution to the
behavioral perspective
 He formulate the Theory X and Theory Y
 Theory X is negative view of mangers towards
subordinates
 Theory Y is Positive view it assume that
employees can exercise self direction, accept
responsibility and consider work to be as natural
as rest or play.
The contingency approach
 In this perspective managers are faced with
the task of determining which managerial
approach is likely to be most effective in a
given situation. This requires managers to
first identify the key contingencies or
variables in the give organizational
situation.