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
– 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 1-2

 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 1-3
 Organizational Levels

Top
Managers

Middle
Managers

First-line
Managers

Non-managerial Employees

© Prentice Hall, 2002 1-4

 Who Are Managers?
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

EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

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 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 1-7

 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 1-8

 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 1-9

 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 1-10
 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 1-11
 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 1-12

 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 1-13

 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 1-14

EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

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 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 1-16
 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 1-17

 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 1-18

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 Process of Planning

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 Process of Organizing

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 Process of Leading

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 Process of Controlling

© Prentice Hall, 2002 1-23

 Process of Attitude

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