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INTRODUCTION TO MANAGEMENT

CHAPTER 1
 LEARNING OUTCOMES
1. DEFINITIONS OF 4. MANAGERIAL LEVELS
ORGANIZATION AND TOP/MIDDLE/FIRSTLINE OR
MANAGEMENT BOTTOM LEVEL
2. MEASURING 5. MANAGERIAL SKILLS AND
MANAGERIAL RELATIONSHIPS WITH
PERFORMANCE – LEVELS
EFFICIENCY AND
EFFECTIVENESS TECHNICAL/HUMAN/
CONCEPTUAL
3. PROCESS OR
FUNCTIONS OF 6. MANAGERIAL ROLES
MANAGEMENT- 7. MANAGERIAL
PLOC COMPETENCIES
8. MANAGERIAL CHALLENGES
 DEFINITION OF ORGANIZATION
NATURE
 Organization is a system
which operates through
human activity.
 Organizations are very
complex social formations.
 Organizations are where
managers work (manage)
 Has three characteristics and
they are:
 Specific purpose – mission,
vision, goals and objectives
 Structure – organizational
design, authority, power,
communication channel etc
 People – managers, workers,
suppliers etc.
DEFINITIONS
• A systematic arrangement of
people brought together to
accomplish some specific purpose.
– Applies to all organizations—for-
profit as well as not-for-profit
organizations. ( Robbins and
Decenzo)
• A group of individuals who work
together toward common goals.
(Schermerhorn)
– Organizations provide useful goods
and/or services that return value to
society and satisfy customer needs
 traditional versus new organization

Traditional New Organization

Comparison between a traditional organization and a new
 Stable organization
 Dynamic
 Inflexible  Flexible
 Job-focused  Skills-focused
 Individual-oriented  Team-oriented
 Permanent jobs  Temporary jobs
 Command-oriented  Involvement-oriented
 Managers always make decisions  Employees participate in decision
 Rule-oriented making
 Relatively homogeneous  Customer-oriented
workforce  Diverse workforce
 Workdays defined as 9 to 5  Workdays have no time boundaries
 Hierarchical relationships  Lateral and networked relationships
 Work at organizational facility  Work anywhere, anytime
during specific hours
 HOW IS ORGANIZATION MANAGED?
• The performance of organizations  And how are they managed?
depends to a large extent on:  As defined earlier, an organization
– how their resources are is a collection of people working
allocated and together towards achievement of
– their ability to adapt to organizational goals.
changing conditions.  People work together at the same
• Organizations will be successful if time they bring in different ideas
they know how to: and opinions that sometimes
– manage people and resources create conflict and hinders
efficiently to accomplish organizations to achieve their
organizational goals and objectives, thus, a process is
required to coordinate and
– to keep those goals in tune
collaborate these differences and
(adjust) with changes in the
one of the means is through
external environment.
MANAGEMENT.
 WHAT IS MANAGEMENT?

DEFINITIONS IMPORTANCE OF MANAGEMENT

• Management involves the process  Achieves organizational

of planning, organizing, leading goals
and controlling organizational
resources towards the  Efficiently use resources, no
achievement of organizational waste or reduce waste
goals. (Schermerhorn)
• Management involves the process  Addresses challenges
of consolidating and managing  Improves quality of work
resources effectively and efficiently
in an effort to achieve the goals of life
an organization (Norlida and  Enhance organizational and
friends)
workers’ performance
• The Classic Definition of
Management by –Mary Parker
Follett
– The art of getting things done
through people
 WHO ARE MANAGERS?
• Managers are the people who
plan, organize, lead, and
control the activities of the
organization so that its goals
can be achieved.
• Directly supports, activates
and is responsible for the
work of others
– Managers are also seen as
someone who works with
and through other people
by coordinating their work
activities in order to
accomplish organizational
goals.
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 TYPES OF MANAGERS

GENERAL MANAGERS FUNCTIONAL MANAGERS

A manager who is responsible for A manager who is
responsible for managing a
managing several different
work unit that is grouped
departments that are responsible based on the function
for different tasks. served.
 Types of Managers - Example

AAgeneral
generalmanager
manager
isisresponsible
responsiblefor
for
several functional
several functional
work
workgroups
groupstoto
work effectively
work effectively

Eg; manager of an
Chief Executive General
accounting department. Parts Inc.
They have to work inter
departments or units.

VP of AAfunctional
functional
manager
managerisis VP of Finance
Production responsible
responsible
for
foraawork
work
group
group
Plant Service segmented
segmentedby by Account Payroll
function.
function.
Manager Manager Manager Manager
 MEASURING MANAGERIAL (ORGNIZATIONAL) PERFORMANCE - Efficiency and
Effectiveness in Management

Efficiency
getting the most output
from the least input
Doing things right
Getting the most output
from the least amount of
inputs

Effectiveness
completing activities so
that the organization’s
goals are attained
Doing the right things”
Completing activities
so that organizational
goals are achieved

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 Managerial Levels (levels of management)

LEVELS DESCRIPTIONS EXAMPLE

TOP Managers at or near the top level are responsible for making
MANAGERS organization-wide decisions and establishing plans and goals CEO, CFO, PRESIDENT,
affecting the entire organization. They provide strategic VICE-PRESIDENT
direction for the organization. Have the ability to think,
analyse causes, effects and consequences.

MIDDLE Managers between the first-line level and the top level of the REGIONAL MANAGERS
MANAGERS organization who manage the work of first-line managers. OR SOMETIMES
They perform as a linkages between top managers and first DEPARTMENT HEADS
line managers. The objective is to allocate resource
effectively and manage the first line managers who
supervise the work group so that the overall goals of the
organization can be achieved.

FIRST LINE Managers at the lowest level manage the work of non- DEPARTMENT HEADS
MANAGERS managerial employees directly or indirectly involved with the AND PRODUCTION
production or creation of the organization’s products. Their SUPERVISOR.
role is to ensure that the products and services of their
organizations are delivered to customers on a day-to day
basis.

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Managerial Levels (levels of management)
 MANAGERIAL SKILLS – ROBERT
KATZ
MANAGERIAL SKILLS DESCRITIONS EXAMPLES

TECHNICAL SKILLS The ability to utilize the Knowledge and proficiency

knowledge of tools, techniques, in a specific field and ability
and procedures that are specific to use certain tools and
to a particular field. equipment

HUMAN SKILLS The ability to work effectively Interaction and social skill,
with one’s own work group as communication,
well as others within the presentation, negotiation,
organization. conflict resolution,
grievance handling,
performance management
skill.
CONCEPTUAL SKILLS The ability to process information Thinking and
about the internal/external conceptualizing about
environment of the organization abstract and complex
and determine its implications situations concerning the
organization
Strategic planning
 RELATIONSHIP BETWEEN MANAGERIAL LEVELS AND MANAGERIAL SKILLS

• Technical skills tend to be most

important for first line
managers.
• Human skills are most important
for middle managers because
these managers must
coordinate the efforts of
members of one’s work group
as well as coordinate with other
work group within the
organization BUT some experts
say it is equally important to all
levels because all levels
comprise of human being
interacting all the time.
• The top level managers need to
have strong conceptual skills if
they are to effectively
accomplish their jobs.
Duties and Responsibilities of Managers
 And All managers are Team
Duties and Responsibilities of Leaders and the responsibilities
Managers and duties are:
 Managerial Roles – HENRY MITZBERG
 Role is the basic behavior that is expected in a
particular situation.
 The work of Henry Mintzberg is widely used to
explain the roles that managers typically perform.
 There are three categories of roles that have
been found:
1. Interpersonal roles
2. Informational roles
3. Decisional roles.
• Henry Mintzberg’s Management further
extended the3 main roles into ten sub-roles and
they are:
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator, spokesperson
– Decisional roles
• Entrepreneur, disturbance handler,
resource allocator, negotiator See next slide for explanation
TYPES OF ROLES ROLES PLAYED
Interpersonal The manager’s responsibility for managing relationships with organizational members and other
constituents:
 Figurehead (perform certain duties that are primarily ceremonial in nature, e.g attend social event).
 Leader (they work with and through their employees to ensure that the organization’s goal are
met).
 Liaison (they coordinate the activities between individuals and work groups within the organization
and develop favorable relationship with outside organization, e.g social responsibility)
Informational The manager’s responsibility for gathering and disseminating information to the stakeholders of the
organization (communication center and source)
 Monitor (managers continually scan the internal and external environments of their organizations
for useful information – opportunities and threats)
 Disseminator (managers share and distribute the information so that the employees can perform
their work)
 Spokesperson (managers must often communicate information to individual outside their units and
their organization)
Decisional The manager’s responsibility for processing information and reaching conclusions:
Entrepreneur (managers initiates projects that capitalizes on opportunities that have
been identified)
Disturbance handler (they must cope with conflict and handle disturbances)
Resource allocator (managers determine which projects will receive organizational
resources)
Negotiator (managers spend a good portion of their time negotiating with employees,
suppliers and others.
 Management Process/Management Functions
• According to the functions approach, managers
perform certain activities or duties as they
efficiently and effectively coordinate the work of
others.
• Henry Fayol (Administrative
Management)proposed that all managers
perform five functions: planning, organizing,
commanding, coordinating and controlling.

Planning Organizing Leading Controlling

Lead to
Defining goals, Determining Directing and Monitoring
establishing what needs motivating all activities Achieving the
strategy, and to be done, involved parties to ensure organization’s
developing how it will and resolving that they are stated
sub-plans to be done, and conflicts accomplished purpose
coordinate who is to do it as planned
activities
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 PROCESS/ DESCRIPTIONS
FUNCTIONS
PLANNING Setting goals and defining the actions necessary to achieve those goals. It covers all
levels ranging from top management to middle management group.
ORGANIZING The process of determining the tasks to be done, who will do them, and how those
tasks will be managed and coordinated. Organizing is important in ensuring
information, resources and task flow logically and efficiently through the
organization.
LEADING The capacity to direct and motivate the members of work groups toward the
accomplishment of organizational goals. Leadership Skills:
Understanding individual/group behavior dynamics
Having the ability to motivate employees
Being an effective communicator
Being able to envision future and share that vision
CONTROLLING Monitoring the performance of the organization and its progress in implementing
strategic and operational plans. It includes:
 what is required to achieve goals
measuring what actually happened and or is being done.
Identifying deviations between planned and actual results.
Taking corrective action
Ensuring that the organization is moving toward the achievement of its
goals
EVOLUTION OF MANAGEMENT
THOUGHTS
Environmental Factors Influencing
Management Thought
• Economic Influences
– The availability,
production, and
distribution of resources
within a society.
• Social Influences
– The aspects of a culture
that influence
interpersonal
relationships.
• Political Influences
– The impact of political
institutions on
individuals and
organizations.
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• Technological
Influences
– The advances and
refinements in any of
the devices that are
used in conjunction with
conducting business.
• Global Influences
– The pressures to
improve quality,
productivity, and costs
as organizations attempt
to compete in the
worldwide marketplace.
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 Chronological Development of Management Perspectives

1
 1. Classical Management Perspective – 3 subsets
Focuses on the
individual worker’s
productivity
Focuses on
the overall
organizational
Focuses on the system
functions of
management

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 Scientific Management: Frederick Winslow
Taylor

• Frederick W. Taylor
(1856-1915)
– Father of “Scientific
Management.
• attempted to define
“the one best way” to
perform every task
through systematic
study and other
scientific methods.
• believed that improved
management practices
lead to improved
productivity.
– Three areas of
focus:
• Task Performance
• Supervision
• Motivation
 Scientific Administrative Management: Fayol
Management: The
Gilbreths
• Henri Fayol (1841–1925)
• Frank Gilbreth
– Specialized in time and motion – First recognized that
studies to determine the most successful managers had to
efficient way to perform tasks. understand the basic
– Used motion pictures of bricklayers managerial functions.
to identified work elements – Developed a set of 14 general
(therbligs) such as lifting and
grasping. principles of management.
(see next slide)
• Lillian Gilbreth
– A strong proponent of better – Fayol’s managerial functions
working conditions as a means of of planning, leading,
improving efficiency and organizing and controlling are
productivity. routinely used in modern
• Favored standard days with organizations.
scheduled lunch breaks and rest
periods for workers.
• Strived for removal of unsafe
working conditions and the
abolition of child labor.
 CIPL
ES
OF • Division of Work – When employees are specialized, output can increase because
MAN they become increasingly skilled and efficient.
AGE • Authority – Managers must have the authority to give orders, but they must also
1. Division of work
MEN keep in mind that with authority comes responsibility.
2. Authority andT • Discipline – Discipline must be upheld in organizations, but methods for doing so
can vary.
responsibility
• Unity of Command – Employees should have only one direct supervisor.
3. Discipline
• Unity of Direction – Teams with the same objective should be working under the
4. Unity of direction of one manager, using one plan. This will ensure that action is properly
command coordinated.
5. Unity of direction • Subordination of Individual Interests to the General Interest – The interests of one
employee should not be allowed to become more important than those of the
6. Subordination of
group. This includes managers.
individual
• Remuneration – Employee satisfaction depends on fair remuneration for everyone.
interest to the
This includes financial and non-financial compensation.
common good
• Centralization – This principle refers to how close employees are to the decision-
7. Remuneration of making process. It is important to aim for an appropriate balance.
personnel • Scalar Chain – Employees should be aware of where they stand in the organization's
8. Centralization hierarchy, or chain of command.
9. Scalar chain • Order – The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
10. Order
• Equity – Managers should be fair to staff at all times, both maintaining discipline as
11. Equity necessary and acting with kindness where appropriate.
12. Stability • Stability of Tenure of Personnel – Managers should strive to minimize employee
13. Initiative turnover. Personnel planning should be a priority.
• Initiative – Employees should be given the necessary level of freedom to create and
14. Esprit de corps
carry out plans. 2–27
• Esprit de Corps – Organizations should strive to promote team spirit and unity.
 Bureaucratic Management
• Focuses on the overall
organizational system.
• Bureaucratic management
is based upon:
– Firm rules
– Policies and procedures
– A fixed hierarchy
– A clear division of labor
• Max Weber (1864–1920)
– A German sociologist and historian
who envisioned a system of
management that would be based
upon impersonal and rational
behavior—the approach to
management now referred to as
“bureaucracy.”
• Division of labor
• Hierarchy of authority
• Rules and procedures
• Impersonality
• Employee selection and promotion
Weber forms of authority
Traditional authority
Subordinate obedience based upon custom
or tradition (e.g., kings, queens, chiefs).
Charismatic authority
Subordinates voluntarily comply with a leader
because of his or her special personal
qualities or abilities (e.g., Martin Luther King,
Gandhi).
Rational-legal authority
Subordinate obedience based upon the
position held by superiors within the
organization (e.g., police officers, executives,
supervisors).
Type Description
Traditional Subordinate obedience based upon
custom or tradition
Charismatic Subordinate obedience based upon
special personal qualities associated
with certain social reformers,
political
leaders, religious leaders, or
organizational leaders
Rational–legal Subordinate obedience based upon
the position held by superiors
within the organization
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Bureaucratic Hierarchical Power Structure

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Classical versus Behavioral Perspective

vs.

Classical Behavioral
Perspective Perspective
Focused on Acknowledged the
rational importance of human
behavior
behavior
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 2. Behavioral Perspective
• Followed the classical perspective in the
development of management thought.
– Acknowledged the importance of human behavior
in shaping management style
– Is associated with:
• Mary Parker Follett
• Elton Mayo
• Douglas McGregor
• Chester Barnard

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 Mary Parker Follett
• Concluded that a key to effective
management was coordination.
• Felt that managers needed to coordinate
and harmonize group effort rather than
force and coerce people.
• Believed that management is a
continuous, dynamic process.
• Felt that the best decisions would be
made by people who were closest to the
situation.

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 Follett on Effective Work Groups
• Four principles of coordination to promote
effective work groups:
1. Coordination requires that people be in direct
contact with one another.
2. Coordination is essential during the initial stages
of any endeavor.
3. Coordination must address all factors and phases
of any endeavor.
4. Coordination is a continuous, ongoing process.
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 Elton Mayo
• Conducted the famous Hawthorne
Experiments.
– “Hawthorne Effect”
• Productivity increased because attention was paid to
the workers in the experiment.
• Phenomenon whereby individual or group
performance is influenced by human behavior factors.
• His work represents the transition from
scientific management to the early human
relations movement.
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 Douglas McGregor
• Proposed the Theory X and Theory Y styles of
management.
– Theory X managers perceive that their
subordinates have an inherent dislike of work and
will avoid it if at all possible.
– Theory Y managers perceive that their
subordinates enjoy work and that they will gain
satisfaction from performing their jobs.

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 Table 2.3 Comparison of Theory X and Theory Y Assumptions

Factor Theory X Assumptions Theory Y Assumptions

Employee attitude Employees dislike work and. Employees enjoy work and
toward work will avoid it if at all possible. will actively seek it.

Management view Employees must be directed, Employees are self-motivated

of direction coerced, controlled, or threatened and self-directed toward achieving
to get them to put forth adequate effort. organizational goals.

Employee view Employees wish to avoid responsibility; Employees seek responsibility;

of direction they prefer to be directed and told what they wish to use their creativity,
to do and how to do it. imagination, and ingenuity in
performing their jobs.
Management style Authoritarian style of management Participatory style of management

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 Chester Barnard
• Felt that executives serve two primary
functions:
– Must establish and maintain a communications
system among employees.
– Must establish the objectives of the organization
and motivate employees.
• Developed an acceptance theory of authority:
– Authority of a manager flows from the ability of
subordinates to accept or reject an order from the
manager once they:
• Comprehend what the order requires of them.
• Review the order’s consistency with organization goals.
• Perceive a personal benefit in obeying the order.

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 3. The Quantitative Perspective
• Characterized by its use of mathematics,
statistics, and other quantitative techniques
for management decision making and problem
solving.
• This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers

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The Quantitative Perspective (cont’d)
• Decision-Making Focus
– The primary focus of the quantitative approach is
on problems or situations that require direct
action, or a decision, on the part of management.
• Measurable Criteria
– The decision-making process requires that the
decision maker select some alternative course of
action.
– The alternatives must be compared on the basis of
measurable criteria.
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The Quantitative Perspective (cont’d)
• Quantitative Model
– To assess the likely impact of each alternative on
the stated criteria, a quantitative model of the
decision situation must be formulated.
• Computers
– Computers are quite useful in the problem-solving
process.

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4. Systems Perspective

Figure 2.4 Basic Structure of Systems

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 4. Systems Perspective
• An approach to problem solving based on an
understanding of the basic structure of systems.
– Environmental interaction
• Open systems must interact with the external environment
to survive.
• Closed systems do not interact with the environment.
– Synergy: when all subsystems work together making
the whole greater than the sum of its parts.
– Entropy: the tendency for systems to decay over time.
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 5. The Contingency Perspective
• A view that proposes that there is no one best
approach to management for all situations.
– Asserts that managers are responsible for
determining which managerial approach is likely
to be most effective in a given situation.
– This requires managers to identify the key
contingencies in a given situation.

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Blending Components into a Contingency Perspective

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Chapter summary – do on your own to
test your understanding