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Chapter

Introduction to
Management
Learning Outcomes
• Tell who managers are and where they work
• Define management
• Describe what managers do
• Explain why it’s important to study
management
• Describe the factors that are reshaping and
redefining management

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Who Are Managers?
Where Do They Work?
• Managers work in organizations.
• Organization
– A deliberate arrangement of people brought together to
accomplish some specific purpose. Such as your university,
buna football teams etc.
• Common Characteristics of Organizations
– Distinct purpose expressed in a goal or a set of goals
– People working together to achieve the orgs goal through
a set of decisions and work activities.
– A deliberate systematic structure that define and limits the
behavior of its members

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Dr. Belay Kinati
How Are Managers Different from
Nonmanagerial Employees?
• We can divide organization members into two categories: non-managerial
employees and managers.
• Non-managerial Employees
– People who work directly on a job or task and have no responsibility
for overseeing the work of others.
– Examples, associates, team members
• Managers
– Individuals in organizations who direct and oversee the activities of
others.
– Managers directly supports, activates and is responsible for the work
of others.
– Managers achieve high performance for their organizations by best
utilizing its human and material resources

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Importance of human resources and
managers
– People are not ‘costs to be controlled ’
– High performing organizations treat people
as valuable strategic assets
– Managers must ensure that people are
treated as strategic assets
– Managers achieve high performance for
their organizations by best utilizing its
human and material resources

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Dr. Belay Kinati
What Titles Do Managers Have?
• Top Managers
– Responsible for making decisions about the direction of the
organization and establishing policies and philosophies that
effect all organizational members .
– Examples; President, Chief Executive Officer, Vice-President
• Middle Managers ( between the lowest and top levels)
– Manage the activities of other managers and translating the
goals set by top managers to specific details that lower
managers can understand.
– Examples; District Manager, Division Manager
• First-line Managers
– Responsible for directing the day to day activities of non-
managerial employees
– Examples; Supervisor, Team Leader

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What Is Management?
• Management
– Management is the process of planning, organizing,
leading, and controlling the use of resources to
accomplish performance goals
• All managers are responsible for the four functions of
management and the functions are carried on continually.
– The process of getting things done effectively and
efficiently, with and through people.
– A process refers to a set of ongoing and interrelated
activities.

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What Is Management?
• Efficiency -“Doing things right”, and getting the most output
from the least amount of input( minimizing the cost).
• Effectiveness means
• Doing those work tasks that help the org to reach its goals.
• Doing the right things to attain goal.

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What Do Managers Do?

Management researchers
have developed three
approaches to describe
what managers do:
functions , roles and
skills.

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Four Management Functions
• Planning
– Defining the organizational purpose and ways to
achieve it(strategies).
• Organizing
– The process of assigning tasks, allocating
resources, and coordinating work activities to
accomplish organizational goals. Eg., dividing work
on employees.
• Leading
– Directing the work activities of others, resolving
conflicts, and motivating employees.

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Four Management Functions( Henri
Fayol)
• Controlling
– Monitoring, comparing, and correcting work
performance.

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Cont’d
• All managers are responsible for the four
functions
• The functions are carried on continually

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What Roles Do Managers Play?
Henry Mintzberg observed that a manager’s job
can be described by ten roles performed by
managers in three general categories:

– Interpersonal Roles
– Informational Roles
– Decisional Roles

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What Roles Do Managers Play?

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What Skills Do Managers Need?
Katz’s Essential Managerial Skills

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Is The Manager’s Job Universal?
All manager plan, organize, lead, and control but how they do
them and how much they do them vary according to several
dimensions:
• Level in the Organization
– Top level managers do more planning and less
direct oversees of others than supervisors.
– All managers make decisions, planning…..but the
amount they delegate to each of them is different.
– Therefore, the difference is not on the activity or
function itself but on the degree, emphasis, and
time that been given to each activity.
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Dr. Belay Kinati
Types of managers
• Line managers are responsible for work activities
that directly affect organization’s outputs.
• Staff managers use technical expertise to advise and
support the efforts of line workers.
• Functional managers are responsible for a single area
of activity.
• General managers are responsible for more complex
units that include many functional areas.
• Administrators work in public and nonprofit
organizations.
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Cont’d
21

Managerial performance and accountability

– Accountability is the requirement to show
performance results to a supervisor
– Effective managers help others achieve high
performance and satisfaction at work
Corporate Governance
– Board of directors hold top management
responsible for organizational performance

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Cont’d
22

Quality of work life (QWL)

– An indicator of the overall quality of human
experiences in the workplace

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Cont’d
23

The organization as an upside-down pyramid

– Each individual is a value-added worker
– A manager’s job is to support workers’ efforts
– The best managers are known for helping and
supporting
– Customers at the top served by workers who are
supported by managers

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Figure: The organization viewed as
an upside-down pyramid
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Is The Manager’s Job Universal?
• Profit vs. Nonprofit
• Manager’s job are the same in both profit and non
profit org. All of them make decisions, set goals, and
motivate their employees.
• The only difference is in the (performance measurement):
• Profit organizations measure their performance by
the amount of profit they achieve.
• There are no specific measurement to measure the
success of non-profit org.
• The financial side is still important in non- profit org.
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Is the Manager’s Job Universal? (cont’d)

• Size of the Organization

– Small businesses have fewer than 500 employees and
which doesn’t often engage in any new innovative
practices … managers in this kind of org do the role of
spokesperson and spend most of their time in doing
outwardly directed action ex meeting with custumers.
– Large business is the contrast of the above.

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Why Study
Management?
• All of us have a vested interest in improving the way
organizations are managed, by studying management
you can know (what good manager should be going
and what poor management are)
• The causes of studying management are:
• Organizations that are well managed find ways to
prosper even in challenging economic times
• After graduation most students become managers or
are managed

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A Brief History of
Management’s Roots

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History Model
• The history model provide us management theories
from past to present .
• They highlight a key person and his contribution to
contemporary management concepts.
• Early management
• Classical approaches.
• Behavioral approaches.
• Quantitive approaches.
• Contemporary approaches.

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Early Management
• Management has been practiced a long
time.
• Organized endeavors directed by people
responsible for planning, organizing,
leading and controlling have existed for
thousands of years
• The building of Egyptian pyramids has
employed thousands of people, so,
someone has to plan what to be done,
organize people to do it, make sure that
everything been done as planned.
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Early Management
• In 1776: Adam Smith argued the economic
advantage of (division of labor) or (job
specialization): that mean braking jobs into
narrow, repetitive tasks.
• In job specialization, individual productivity
could be increased dramatically but it does
have its drawbacks.

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Classical Approach
• In the classical approach, the
management concept begin to
evolve as a knowledge.
– Frederick W. Taylor described
a theory of a scientific
management: the use of
scientific methods to
determine the “one best way
to do a job” focus on
individual production.
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Other Classical Approach

• General Administrative Theory

– Henri Fayol looked at (organizational
practices).
– He identified the five management
functions.
– He identified 14 management
principles.
– Max Weber (pictured) described the
bureaucracy as an ideal rational form
of organization structure.

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 Behavioral Approach
• This approach focused on the actions of workers>> how do
you motivate, and lead employees to get high level of
performance.
– Robert Owen, was concerned about deplorable (bad)
working conditions, proposed idealistic workplace
– Hugo Munsterberg, suggested using psychological test
for employee selection
– Mary Parker Follett recognized that organizations could
be viewed from both individual and group behavior( org
should be based on group ethic rather than
individlisum)
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 The Hawthorne Study
• Conducted at the Western Electric
Company Works these studies:
– Provided new insights into individual
and group behavior in the behavior of
people at work.

– Concluded that group pressures can

significantly impact individual
productivity and people behave
differently when they are being
observed

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Quantitative Approach
• Quantitative Approach
– Used quantitative techniques to improve decision
making
– Evolved from mathematical and statistical
solutions developed for military problems during
World War II
– W. Edwards Deming and Joseph M. Duran ‘s ideas
became the basis for total quality management
(TQM): a management philosophy devoted to
continual improvement and responding to
customers needs and expectations.
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 Contemporary Approach
• Management researches begin to look at the external
environment outside the organization.
– Chester Barnard wrote in his book that an organization
functioned as a cooperative system which is a set of
interrelated and interdependent parts arranged in a
manner that produces a unified whole.
– Organizations functioned as open systems, which
means, they are influenced by and interact with their
environment.

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Contemporary Approach
• Fred Feildler first popularized the contingency
approach (or situational approach) which says that
organizations, employees, and situations are
different and require different ways of managing.

• A good way to describe contingency is “if, then”

• If this is the way my situation is, then this is the best
way for me to manage in this situation.

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Review Questions
1. “Management is oldest of the arts and
youngest of the sciences”. Discuss
2. Is management an exact science?
Substantiate your answer with examples.
3. Briefly describe the functions of
management?

Dr. Belay Kinati