CHAPTER # 01

INTRODUCTION TO
MANAGEMENT
AND
ORGANIZATION

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LEARNING OUTLINE

✔ Definition of Management and Organization

✔ Types of Organizational Resources

✔ Effectiveness & Efficiency

✔ Functions of Managers/Management

✔ Levels of Management

✔ Managerial Skills

✔ Managerial Roles

✔ Why Study Management?

✔ Principles of Management
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 What Is An Organization?
• An Organization Defined
⮚ A deliberate arrangement of people to accomplish
some specific purpose.

• Common Characteristics of Organizations

⮚ Have a distinct purpose (goal)
⮚ Composed of people
⮚ Have a deliberate structure

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 What Is Management?
• Management is the process of designing and
maintaining a work environment in which a group of
people work together to achieve predetermined goals
of an organization effectively and efficiently.

• Management is an art of knowing what is to be done

and seeing that it is done in the best possible manner.
- F.W. Taylor (Father of Scientific Management)

• “To manage is to forecast and plan, to organise, to

command, to co-ordinate and to control” the activities
of others.
- Henri Fayol (Father of Modern Management)
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 What Is Management?
• Management is a set of activities (including planning,
organizing, leading, and controlling) directed at an
organization’s resources (human, financial, physical,
and information) with the aim of achieving
organizational goals in an efficient and effective
manner.
- Ricky W. Griffin

• Management is the process of effectively and efficiently

achieving the objectives of an organization with and
through people.
• - S. P. Robbins & Mary
Coulter
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 Effectiveness Vs. Efficiency
• Managerial Concerns
⮚ Effectiveness
❖ Making right decisions and successfully
implementing them.
❖“Doing the right things”
– Attaining organizational goals

⮚ Efficiency
❖Using resources wisely and ensuring maximum
utilization of them.
❖“Doing things right”
– Getting the most output for the least inputs
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Efficiency
versus
Effectiveness

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 Who is a Manager?
• Someone whose primary responsibility is to
carry out the management process.
• Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.

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 Who is a Manager?
• Manager
⮚ A manager is someone who works with and through
other people by guiding, coordinating and integrating
their work activities in order to accomplish
organizational goals.

⮚ A manager’s job is not about personal achievement–

it’s about helping others’ do their work.

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Kinds of Managers by Level and Area

Levels of Management

Top managers

Middle managers

First-line managers
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Figure 1.1
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 Kinds of Managers
Classification by Level
of Managers
Top-level Managers
⮚ The relatively small group of executives who manage
the organization’s overall goals, strategy, and
operating policies.

⮚ Are responsible for making organization-wide

decisions and establishing plans and goals that affect
the entire organization.

⮚ Have typical titles such as chief executive officer,

executive vice president, president, managing director,
or chief operating officer.
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 Classification of Managers
Kinds of Managers by Level
Mid-level Managers
⮚ Are found between the first-line managers and top level
managers.

⮚ primarily responsible for implementing the policies and

plans of top managers.

⮚ Manage the work of first-line managers.

⮚ Have typical titles such as regional manager, project

manager, branch manager, or division manager, etc.

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 Classification of Managers
Kinds of Managers by Level

• First-line Managers
⮚ Are at the lowest level of management.

⮚ who supervise and coordinate the activities of non-

managerial employees.

⮚ Are often called supervisors but may also be called

shift managers, section officer, assistant managers or
office managers.

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 Kinds of Managers by Area

• Managers can also be classified based on the

their functional responsibilities, such as
marketing managers, HR managers, production
managers, etc.

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 Kinds of Managers by Area
• Marketing Managers
– Responsible for identifying, developing, implementing, and
evaluating the long- and short-term marketing strategies of
the organization.
• Financial Managers
– Deal primarily with an organization’s financial resources.
– They are responsible for activities, such as accounting,
cash management, and investments.
• Operations Managers
– Concerned with creating and managing the systems that
create organization’s products and services.
– Typical responsibilities include inventory control, production
control, quality control, plant layout, and site selection.
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 Kinds of Managers by Area (cont’d)
• Human Resource Managers
– Involved in human resource planning, recruiting and
selection, training and development, designing
compensation and benefit systems, formulating
performance appraisal systems.
• Administrative Managers
– Generalists who are familiar with all functional areas of
management and who are not associated with any
particular management specialty.
• Other Kinds of Managers
– Specialized managerial positions directly related to the
needs of the organization.
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 The Management Process

Planning
Decision Organizin
and
Making g
Determining how
Setting the organiza-
best to group
tion’s goals and
activities and
deciding how best
resources
to achieve them

Controllin Leadin
Monitorin
g g
Motivating members
g correcting
and of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization

Figure 1.2
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 Management Functions
1. Planning
❖Defining objectives and establishing courses of actions
for achieving those objectives.
2. Organizing
❖Grouping, arranging, and coordinating activities and
resources to accomplish organizational goals.
3. Leading
❖Working with and through people to accomplish goals.
❖Motivating, leading, influencing and any other actions
involved in dealing with people.
4. Controlling
❖Monitoring, comparing, and correcting the work

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 Management Roles

• The term management roles refers to specific behaviors

or actions expected of a manager.
• Henry Mintzberg, a well-known management researcher,
studied actual managers at work and identified 10 types of
roles under 3 broad categories that managers need to
play at workplace:
⮚ Interpersonal roles
❖Figurehead, leader, liaison
⮚ Informational roles
❖Monitor, disseminator, spokesperson
⮚ Decisional roles
❖Disturbance handler, resource allocator, negotiator
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Management Roles (cont)

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Management Roles (cont)

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Management Roles Approach (cont)

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 Management Skills
Robert L. Katz identified three types of managerial skills:
1. Technical skills
❖Job-specific Knowledge and techniques needed to
proficiently perform work tasks.
2. Human skills
❖The ability to work well with other people.
3. Conceptual skills
❖The abilities that allow an individual to better understand
complex scenarios and develop creative solutions.
❖It is the ability to view the organization as a whole,
understand how the various parts are interdependent, and
assess how the organization relates to its external
environment.
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Managerial Skills Required by Three Levels of
Managers

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Other Managerial Skills
1. Diagnostic Skills
The manager's ability to identify problems in the
organization by studying their symptoms.

2. Communication Skills
Communication skills refer to the managers ability to
effectively give and receive information and ideas to
others.

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Other Managerial Skills
3. Decision-making Skills
Decision making skills are the manager’s ability to
effectively recognize problems and opportunities and
create solutions for them. The ability to select between
two or more alternatives to solve a problem in best
possible way.

4. Time-management Skills
Time management skills are the manager’s ability to
prioritize work, work efficiently, and to delegate
appropriately.

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 Why Study Management?
• The Value of Studying Management:
⮚ The Universality of Management
❖Good management is needed in all organizations.
❖The reality that management is needed in all types and
sizes of organizations, at all organizational levels, in all
organizational areas, and in organizations no matter
where located.
⮚ The Reality of Work
❖Once you will begin career, as an employee or even an
entrepreneur, you will either manage or be managed or
both.
❖An understanding of management forms the foundation
on which to build your management skills.
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 Why Study Management?
• The Value of Studying Management:

⮚ Rewards and Challenges of Being a Manager

❖Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
❖Successful managers receive significant monetary
rewards for their efforts.

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1. Scientific Management
• Fredrick Winslow Taylor(1856-1915)
⮚ The “father” of scientific management.
⮚ Published Principles of Scientific Management in1911.
❖The theory of scientific management:
– Using scientific methods to define the “one best way” for a
job to be done.
• Putting the right person on the job with the correct tools
and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.
• Piece-rate pay system.
• Differential piece-rate pay system.

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1. Scientific Management
• Fredrick Winslow Taylor(1856-1915)
He worked at the Midvale and Bethlehem Steel Companies
in Pennsylvania, USA. During his career, he observed many
inefficiencies. They were as follows:
a. Employees used vastly different techniques to do the
same job.
b. Virtually there was no work standard for the employees.
c. Workers were placed on the jobs with little or no
matching their abilities with the job requirements.
d. Workers often worked at a slower pace than their
capacity what he called ‘soldiering’.
e. Wastage was huge.

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2. General Administrative Theory
• Henri Fayol (1841-1925)
⮚ First identified five managerial functions: planning,
organizing, commanding, coordinating, and
controlling.
⮚ Believed that the practice of management was distinct
from other organizational functions like finance,
production, etc.
⮚ Developed fourteen principles of management that
applied to all organizational situations.
⮚ He wrote a book titled General and Industrial
Management in 1916.

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2. General Administrative Theory
14 Principles of Management
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to General Interest
7. Remuneration of Personnel

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2. General Administrative Theory
14 Principles of Management
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit De Corps

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 14 Principles of Management

1. Division of Work – Division of work leads to

specialization. If workers are given a specialized task to do,
they will become skillful and more efficient.

2. Authority – Managers must have the authority to give

orders. They should also remember that with authority
comes responsibility..

3. Discipline – Employees must obey and respect the rules

and regulations which govern the organization..

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 14 Principles of Management
4. Unity of Command – Employees should have only one
direct supervisor.

5. Unity of Direction – all the individuals or groups

performing different kinds of a task must be directed towards the
common objective of the organization.
Unity of direction means the entire firm will move in the same
direction.

6. Subordination of Individual Interests to the

General Interest – The interests of one employee should
not be allowed to become more important than organizational
interest.

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 14 Principles of Management

7. Remuneration – Employees should be paid a

reasonable and fair remuneration for their work. This
includes financial and non-financial compensation.

8. Centralization – This principle refers to how close

employees are to the decision-making process. The degree
to which centralization or decentralization should be
adopted depends on the specific organization in which the
manager is working

9. Scalar Chain – It is the formal line of authority which

moves from highest to lowest ranks.

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 14 Principles of Management

10.Order – All materials and people should be in the right

place at the right time.

11. Equity – Managers should be fair to staff at all times,

both maintaining discipline as necessary and acting with
kindness where appropriate.

12.Stability of Tenure of Personnel – Managers

should strive to minimize employee turnover. Personnel
planning should be a priority.

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 14 Principles of Management
13.Initiative – Employees should be given the necessary
level of freedom to create and carry out plans and generate
new ideas for the organization.

14.Esprit de Corps – Organizations should strive to

promote team spirit and unity. Unity is strength.

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THANK YOU

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