Chapter 1

INTRODUCTION
TO MANAGEMENT
AND
ORGANIZATIONS
© Prentice Hall, 2002 1-1
Learning Objectives

•You should learn to:

• Explain what a manager is and how the role of a manager
has changed
• Define management
• Distinguish between efficiency and effectiveness
• Describe the basic management functions and the
management process
• Identify the roles performed by managers

© Prentice Hall, 2002 1-2

Learning Objectives (cont.)

• You should learn to:

• Describe the skills managers need
• Explain what managers do using the systems perspective
• Identify what managers do using the contingency perspective
• Describe what an organization is and how the concept of an organization
has changed
• Explain the value of studying management

© Prentice Hall, 2002 1-3

Who Are Managers?

• Manager
• someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
• changing nature of organizations and work has
blurred the clear lines of distinction between
managers and non-managerial employees

© Prentice Hall, 2002 1-4

Who Are Managers? (cont.)
• Managerial Titles
• First-line managers - manage the work of non-managerial
individuals who are directly involved with the production
or creation of the organization’s products
• Middle managers - all managers between the first-line
level and the top level of the organization
• manage the first-line managers
• Top managers - responsible for making organization-wide
decisions and establishing the plans and goals that affect
the entire organization

© Prentice Hall, 2002 1-5

 Organizational Levels

Top
Managers

Middle
Managers

First-line
Managers

Non-managerial Employees

© Prentice Hall, 2002 1-6

What Is Management?
• Management
• the process of coordinating work activities so that
they are completed efficiently and effectively with
and through other people
• elements of definition
• Process - represents ongoing functions or
primary activities engaged in by managers
• Coordinating - distinguishes a managerial
position from a non-managerial one

© Prentice Hall, 2002 1-7

What is Management? (cont.)
• Management (cont.)
• elements of definition
• Efficiency - getting the most output from the least
amount of inputs
• “doing things right”
• concerned with means
• Effectiveness - completing activities so that
organizational goals are attained
• “doing the right things”
• concerned with ends

© Prentice Hall, 2002 1-8

Efficiency and Effectiveness in Management
Efficiency (Means) Effectiveness (Ends)

Resource Goal
Usage Attainment

Low Waste High Attainment

Management Strives For:

Low resource waste (high efficiency)
High goal attainment (high effectiveness)

© Prentice Hall, 2002 1-9

What Do Managers Do?

• Management Functions and Process

• most useful conceptualization of the manager’s job
• Planning - defining goals, establishing strategies for achieving those
goals, and developing plans to integrate and coordinate activities
• Organizing - determining what tasks are to be done, who is to do
them, how the tasks are to be grouped, who reports to whom, and
where decisions are made
• Leading - directing and motivating all involved parties and dealing
with employee behavior issues
• Controlling - monitoring activities to ensure that they are going as
planned

© Prentice Hall, 2002 1-10

What Do Managers Do? (cont.)

• MANAGEMENT FUNCTIONS AND PROCESS (CONT.)

• Management process
• set of ongoing decisions and work activities in
which managers engage as they plan, organize,
lead, and control
• managerial activities are usually done in a
continuous manner

© Prentice Hall, 2002 1-11

What Do Managers Do? (cont.)
• MANAGEMENT ROLES
• specific categories of managerial behavior
• Interpersonal - involve people and duties that
are ceremonial and symbolic in nature
• Informational - receiving, collecting, and
disseminating information
• Decisional - revolve around making choices
• emphasis that managers give to the various roles
seems to change with their organizational level

© Prentice Hall, 2002 1-12

EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES

© Prentice Hall, 2002 1-13

What Do Managers Do? (cont.)

• Management Skills
• Technical - knowledge of and proficiency in a certain
specialized field
• Human - ability to work well with other people both
individually and in a group
• Conceptual - ability to think and to conceptualize about
abstract and complex situations
• see the organization as a whole
• understand the relationships among subunits
• visualize how the organization fits into its broader environment

© Prentice Hall, 2002 1-14

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

© Prentice Hall, 2002 1-15

What Do Managers Do? (cont.)
•Managing Systems
• System - a set of interrelated and interdependent
parts arranged in a manner that produces a unified
whole
• provides a more general and broader picture of what managers do
than the other perspectives provide
• Closed system - not influenced by and do not
interact with their environment
• Open system - dramatically interact with their
environment
• organizations - take in inputs from their environments
• transform or process inputs into outputs
• outputs are distributed into the environment

© Prentice Hall, 2002 1-16

The Organization As An Open System
Environment

System

Inputs Transformation Outputs

Raw materials Employee’s work Products and services
Human resources activities Financial results
Capital Management Information
Technology activities Human results
Information Technology and
operations methods

Feedback

Environment
© Prentice Hall, 2002 1-17
What Do Managers Do? (cont.)

• Managing Systems (cont.)

• managers must
• coordinate various work activities
• ensure that interdependent parts work
together
• recognize and understand the impact of
various external factors
• decisions and actions taken in one
organizational area will affect other areas
and vice versa
© Prentice Hall, 2002 1-18
What Do Managers Do? (cont.)

• MANAGING IN DIFFERENT AND CHANGING

SITUATIONS
• require managers to use different approaches and
techniques
• Contingency perspective - different ways of
managing are required in different organizations
and different circumstances
• stresses that there are no simplistic or universal
rules
• contingency variable

© Prentice Hall, 2002 1-19

EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES

© Prentice Hall, 2002 1-20

What Is An Organization?
•Organization
•a deliberate arrangement of people to
accomplish some specific purpose
• elements of definition
• each organization has a distinct purpose
• each organization is composed of people
• all organizations develop some deliberate structure
•today’s organizations have adopted:
• flexible work arrangements
• open communications
• greater responsiveness to changes

© Prentice Hall, 2002 1-21

EXHIBIT 1.10: THE CHANGING ORGANIZATION

© Prentice Hall, 2002 1-22

Why Study Management?

• Universality of Management
• management is needed
• in all types and sizes of organizations
• at all organizational levels
• in all work areas
• management functions must be performed in all
organizations
• consequently, have vested interest in improving
management

© Prentice Hall, 2002 1-23

EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

© Prentice Hall, 2002 1-24

Why Study Management? (cont.)

• The Reality of Work

• most people have some managerial
responsibilities
• most people work for a manager
Challenges of Being a Manager
- being a manager is hard work
- must deal with a variety of personalities
- must motivate workers in the face of uncertainty

© Prentice Hall, 2002 1-25

Why Study Management? (cont.)
•Rewards of Being a Manager
• create an environment that allows others to do
their best work
• provide opportunities to think creatively
• help others find meaning and fulfillment
• meet and work with a variety of people

© Prentice Hall, 2002 1-26