Introduction To Management Chapter I

Chapter One
Introduction
to
Management
Management concepts and Thoughts 2021 By Dr.

Habtamu Dadi
Learning outcomes
After completing this chapter we understand:
To Define management
 Understand the Characteristics and nature of
management
Who managers are and where they work
The Levels, skills, and roles of managers
Importance of managers

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Section 1
Management Defined
Student Reflection
What is
 Management?
Why
study management?

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Organization Defined
Organization: Two or more people who work together
in a structural way to achieve specific goal/objective
constitute organization.
Organization :- A formally structured collection of
individuals working to wards common (shared) goals.
Every business unit has some objectives of its own. These
objectives can be achieved with the coordinated efforts
of several personnel.
The work of a number of persons are properly co-
ordinated to achieve the objectives through the process
of management .
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Management Defined
 There is no common agreement among its experts and
practitioners about its precise definition.
 And no definition of management has been universally accepted
 “Management is art of getting things done through people.” (Mary

Parker Follet)
 Management is all business and human organization activity is simply
the act of getting people together to accomplish desired goal and
objectives.
 (Frederick Taylor) defines Management as the art of knowing what you
want to do in the best and cheapest way
 Henry Fayol, "To mange is to forecast and plan, to organize, to
command, to co-ordinate and to control."
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Management concepts continued
Management is the process of achieving organizational
objectives through people and other resources (Louis E
Boone & David L Kurtz).
Management is defined as working with human, financial,
physical resources and information resources to achieve
organizational objectives by performing the planning,
organizing, leading, and controlling functions.
A business develops in course of time with
complexities. With increasing complexities managing
the business has become a difficult task. The need of
existence of management has increased tremendously.
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Management concepts continued
Management
 Is the process of getting things done, effectively and efficiently,
through and with other people.
Productivity implies effectiveness and efficiency in individual
and organizational performance
 Efficiency
 Means doing the thing correctly/right; refers to the relationship between
inputs and outputs; seeks to minimize resource costs
 Efficiency is the achievement of the ends with the least amount of
resources (time, money, etc.)
 Effectiveness
 Means doing the right things; goal attainment. The tasks that help an
organization reach its goals.
 Effectiveness is the achievement of objectives on time.
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Efficiency and Effectiveness
Efficiency Effectiveness
 Efficiency = getting the most  Effectiveness = do those work
output from the least amount of activities that will help the
inputs organization reach its goals
 “doing things right”  “doing the right things”
 concern with means (ways) of  concern with ends(result) of
getting things done organizational goal achievement
 Efficiency = getting work done  Effectiveness = accomplish
with a minimum effort, tasks that help fulfill
expense, or waste organizational objectives
 (use resources – people, money,  (make the right decisions and
raw materials– wisely and cost- successfully carry them out to
effectively) accomplish the org. goal)
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Managerial concerns Efficiency and Effectiveness
Efficient, but not Effective:

- Goals not achieved
Effective, but not Efficient
- Wasted Resources
(You may have to choose or
balance between the two.)
This about utilization of resources

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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)

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Human Physical
Resources resources
Effective and
Managerial efficient
Goals
Functions utilization
Financial
Resources
Information
resources

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organizing
planning
Performance
Resource Goals
Effective
Human
and efficient Product
Material
Financial utilization Service
Technology Directing
Efficiency
Information effectiveness
Controlling

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The basic definition summarized
- As a mangers, people carry out the managerial
functions planning, organizing, leading and
coordinating
- Management applies and essential to any kind
organization
- It applies to managers at all organizational levels
- The aim of all mangers is the same: to achieve
organizational goal
- Managing is concerning with productivity; that
implies to efficiency and effectiveness.
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Four orientations adopted in defining
management:
Production-or efficiency oriented:- management is the
art of knowing what you want to do and then seeing that it
is done in the best and cheapest way
Decision oriented:- management is simply the process of
decision making and control over the action of human
being for the expressed purpose of attaining
predetermined goals
People oriented:- Management is the accomplishment of
results through the efforts of other people
Function oriented:- to manage is to forecast and to plan,
to organize, to coordinate and to control
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Section 2
CHARACTERISTICS of MANAGEMENT
Management is a distinct activity concerned with guiding human and physical
resources such that organizational goals can be achieved having the following
salient features/characteristics:
 Art as well as Science (Art- because it depends on the skills, aptitude and
creativity of the managers/ science there is considerable knowledge where we
apply scientific principles)
 Management affects everyone
 Management is an organized and continuous process
 Management aimed at achieving pre-determined objectives
 Management is a factor of production
 Management is a system of authority
 Management is a discipline, so we can learn it
 Management principles are universal in nature
 Management integrates human and other resources
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Management, Science as well as Art
Science is based on logical consistency, systematic
explanation, critical evaluation and experimental analysis. It
is a systematized body of knowledge.
The following characteristics are essential for a subject to be
recognized as a science.
o The existence of a systematic body of knowledge with array
of principles.
o Based on scientific enquiry.
o Principle should be verifiable.
o Reliable basis for predicting future events.
Management, being a social science may be called as an
inexact or pseudo science.
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The meaning of art is related with the bringing of
desired result through the application of skills,
attitude. It has to do with applying of knowledge or
science or of expertness in performance.
Management is an art because of the following facts.
 Management process involves the use of practical
knowledge and personal skills.
 Management is creative.
 Application of practical knowledge and certain skills
helps to achieve concrete results.
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Management is both – science and an art:
Management is a science because it contains general
principles. It is also and art because it requires certain
personal skills to achieve desired results.

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Management Affects Everyone
 Our society depends on the goods and
services provided by different types of
organizations that individuals manage.
 All organizations are guided and directed by

the decisions of one or more individuals who
are commonly known as managers.

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Management as a Process
What do statements like “ that is a well-managed
company “ mean?
They seem to imply that management is some
type of work or set of activities and that these
activities are performed quite well and
sometimes not so well.

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Management as a Discipline
Classifying management as a discipline suggests that there is
a body of knowledge that can be learned.
(1) Management is a subject with principles, concepts, and
theories.
(2) A critical purpose of studying management is to learn how
in the process of managing to apply principles, concepts,
and theories of management and this is particularly
emphasized throughout your internship experiences.
(3) This internship semester you will assume the role of a
manager even if this is not your current position. Why? To
begin to think, analyze, and apply management theories,
concepts and principles within your internship setting. It is
never to early to start thinking like a manager.

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Management is also a Human
Activity
As a human activity management emphasizes

the importance of employees with whom
managers work and whom they manage in
accomplishing an organization’s objectives.
In organizations, people are the most important
asset. Successful managers understand this and
recognize the need to establish a strong bond
between the organization and the relationships of
the manager and the people they manage.
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Management As a Career
We are emphasizing management in the internship
experiences because we recognize that in today’s
environment which is fast changing and competitive.
We can contribute to successful organizations by
providing students with a solid foundation of experience
in thinking like a manager while they are learning about
the organization.


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Nature of Management
The nature of management can be described as follows:
 Management is goal oriented
 Management integrates Human, Physical and Financial Resources:
 Management is Continuous:
 Management is all Pervasive: (required in all types of Organization)
 Management is a Group Activity
 Multidisciplinary
 Dynamic Nature of Principles (Relative, not absolute principles)
 Management as Profession
 Universality of Management

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Nature of Management
1. Management is Goal-Oriented: The success of any
management activity is accessed by its achievement of the
predetermined goals or objective. Management is a purposeful
activity. It is a tool which helps use of human & physical
resources to fulfill the pre-determined goals.
2) Management integrates Human, Physical and Financial
Resources: Management integrates human efforts to those
resources. It brings harmony among the human, physical and
financial resources.
3) Management is Continuous: Management is an ongoing
process. It involves continuous handling of problems and issues.
It is concerned with identifying the problem and taking
appropriate steps to solve it
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4) Management is all Pervasive: Management is required in all types of
organizations whether it is political, social, cultural or business because
it helps and directs various efforts towards a definite purpose.
5) Management is a Group Activity: Management is very much less
concerned with individual‘s efforts. It is more concerned with groups. It
involves the use of group effort to achieve predetermined goal of
management of an organization.
6). Multi disciplinary: Management integrates the ideas and concepts
taken from disciplines such as psychology, sociology, anthropology,
economics, ecology, statistics, operation research, history etc. and
presents newer concepts which can be put in practice for managing the
organizations. Contributions to the field of management can be
expected from any discipline which deals with some aspects of human
beings.
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7). Dynamic Nature of Principles
(Relative, Not Absolute Principles)
 Principles are a fundamental truth which establish cause and effect
relationship of a function. Based on practical evidences, management
has framed certain principles, but these principles are flexible in
nature and change with the changes in the environment in which an
organization exists. In the field of Management, organization
researches are being carried on to establish principles in changing
society and no principles can be regarded as a final truth.
Management Principles are relative, not absolute and they should be

applied according to the need of the organization. Each organization
may be different from others. The difference may exist because of
time, place, socio-cultural factors etc. A particular management
Principles has different strength in different conditions and therefore
Principles of Management should be applied in the light of the
prevailing conditions.

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8). Management as a Profession
The word profession may perhaps be defined as an
occupation based upon specialized intellectual study and
training, the purpose of which is to supply skilled service
or advice to others for a definite fee or salary. Profession is
an occupation for which specialized knowledge, skills
and training are required and the use of these skills is not
meant for self satisfaction , but these are used for the
larger interests of the society and the success of these
skills is measured not in terms of money alone.
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). Universality of Management
There are arguments in favour and against the concept of
universality.
The arguments in favour of universality are:-
[a]management as a process and the various process of
management are universal for all organizations
The principles and techniques of management are equally
applicable in the fields of business, education, military,
government and hospital.
Henri Fayol suggested that principles of management would
apply more or less in every situation. The principles are
working guidelines which are flexible and capable of
adaptation to every organization where the efforts of human
beings are to be coordinated.

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The arguments against universality are:-
[a]management is culture bound
[b]management depends upon the objectives of an enterprise
[c]management depends upon the differences in philosophies of
organization

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Section 3
Who Managers are and Where they work?
Students reflection
We manage our time, finance, careers, relationship
and family.
So can we say we are a managers?
Remember concepts of Organization!

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Where Managers Work?
In Organization
Organization: Where managers work (manage)
A systematic arrangement of people brought together to
accomplish some specific purpose; applies to all
organizations—for-profit as well as non- profit
organizations.
Common characteristics of organizations
(organization shares three common characteristics)
Have a distinct purpose (goal)
Are composed of people
Have a deliberate structure
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Any organization has a purpose to start business. This
expressed in terms of goal or set of goals.
Organizations are composed of people like workers to
top managers.
If people involved in the organization, assigning
responsibility and authority, who will lead the team?
Systematic structure answer the question.
So organization refers to an entity that has a distinct
purpose include people or members and has a
systematic structure.
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Common Characteristics of Organizations

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Manager
 A Manager is the person responsible for planning and directing the
work of a group of individuals, monitoring their work, and taking
corrective action when necessary.
 Managers may direct workers directly or they may direct several

supervisors who direct the workers. The manager must be familiar with
the work of all the groups he/she supervises, but does not need to be
the best in any or all of the areas. It is more important for the manager
to know how to manage the workers than to know how to do their work
well.
 A manager's title reflects what he/she is responsible for. An

Accounting Manager supervises the Accounting function. An
Operations Manager is responsible for the operations of the company.
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Who managers are?
Someone who coordinates and oversees the work of
other people in order to accomplish organizational
goals.

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How are managers different from non
managerial employees?
Every organizations do have two types of employees
Non managerial employee
People who work directly on a job or task and have
no responsibility for overseeing the work of others
Managers
Individuals in an organization who direct the
activities of others/are persons who are formally
appointed to position of authority in organizations.
Someone who works with and through other people by
coordinating their work activities in order to accomplish
organizational goals
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Section 4
Levels, Skills and Roles of Managers
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Level of managers
How do you describe the Level of Managers?

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Levels of Managers:
Levels of Management refer to a line of demarcation

between various managerial positions in an
enterprise. The levels of management depend upon its
size, technical facilities, and the range of production.
The difference between levels of managers are the
degree of authority and the scope of their
accountability.

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Level of Manager

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The above three levels of managers form a hierarchy,
in which they are ranked in order of importance. In
most organizations, the number of managers at each
level is such that the hierarchy resembles a pyramid,
with many more first-level managers, fewer middle
managers, and the fewest managers at the top level.

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Levels of Managers continued:
1. The Top Level Managers:
Are also called as senior management or executives
Are responsible for making organization-wide decisions and
establishing plans and goals that affect the entire organization
Develop long-range strategic plans for the organization.
Inspire executives and employees to achieve their vision for the
company’s future.
Make a decision about the direction of the organization.
Example: Chief Executive Officer, Chief Financial Officer, Chief

Operational Officer, Presidents, Vice presidents, Chief Executive
Officer
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2. The Middle Level Managers:
 Focus on specific operations, products, or customer groups within an
organization.
 Responsible for developing detailed plans and procedures to implement
the firm’s strategic plans.
 Middle Managers can motivate and assist first-line managers to achieve
business objectives. They may also communicate upward, by offering
suggestions and feedback to top managers.
 Manage the activities of other managers/coordination
 Examples:
- General Manager, Plant manager, Regional manager, and Divisional
manager.
- Dean, Department heads, Division heads in context to higher education
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3. The First Level Managers:
Are at the lowest level of management and Responsible for
non-manager employees.
First-level managers are also called first-line managers or
supervisors. These managers have job titles such as: Office
manager, Shift supervisor, Department manager, Store
manager. First-line managers are responsible for the daily
management of line workers - the employees who actually
produce the product or offer the service
Implement the plans developed by middle managers.
Motivate workers to accomplish daily, weekly, and monthly
goals.
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These are the managers that most employees interact
with on a daily basis and if the managers perform
poorly employees may also perform poorly may lack
motivation.

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The Managerial Skills
A skill is an individual's ability to translate knowledge
into action. Hence, it is manifested in an individual's
performance.
Not everyone can be a manager. Certain skills, or
abilities to translate knowledge into action that results
in desired performance, are required to help other
employees become more productive.

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In order to be able to successfully discharge his roles, a
manager should possess three major skills. These are
conceptual skill, human relations skill and
technical skill.
Conceptual skill deals with ideas,
Technical skill with things and
Human skill with people.
The use of these skills differs for various levels of
managers.

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What skills do managers need?

a). Technical skill
 Manager’s ability to understand and use the techniques,
knowledge, and tools and equipment of a specific discipline
or department.
 Involves job specific knowledge and techniques required to
perform task
b) Human skill/ Interpersonal skill
 Interpersonal skills that enable a manager to work effectively
with and through people.
 The ability to work with, understand, and motivate other
people, both individually and in groups.
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c) Conceptual skill
Ability to see the organization as a unified whole and to
understand how each part of the overall organization
interacts with other parts.
Used to analyze and diagnose complex situation

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Management Level and Skills Needed
Differences among management levels in skill needed and the
functions performed:

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what do managers do?
• Functional Approach
 Planning
 Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.
 Organizing
 Arranging and structuring work to accomplish organizational
goals.
 Leading
 Working with and through people to accomplish goals.
 Controlling
 Monitoring, comparing, and correcting work.

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Managerial Roles:
Role: A set of expectations of how one will behave in a
given situation.
Henry Mintzberg has identified ten roles common to the
work of all managers. The ten roles are divided into three
groups: interpersonal, informational, and decisional.
The interpersonal roles link all managerial work
together.
 The informational roles ensure that information is
provided.
The decisional roles make significant use of the
information.
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The interpersonal roles
A manager’s interpersonal roles are the result of the position
he or she holds in management.
The three interpersonal roles and activities:
In the Figurehead role, the manager represents the
organization in all matters of formality (its mission and what
it is seeking to achieve). Bigger boss, he tells what people do.
The Leader role training, counseling, and mentoring high
employee performance. Responsible for the motivation and
direction of employees.
In the Liaison role, linking and coordinating the activities of
people and groups both inside and outside the organization.
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The informational roles
Partly as a result of contacts inside and outside the organization, a manager
normally has more information than other members of the staff have.
The three informational roles and activities:
In the Monitor role, - the manager collects and analyze information both
from internal and external source to watch how they do or how things
done. Monitor- evaluate the performance of managers in different functions
In the role of Disseminator, the manager transmits special information
into the organization to influence the attitudes and behaviour of
employee. Disseminator-communicate to employees the organization’s vision
and purpose
In the role of Spokesperson, the manager disseminates the organization's
information (plan, policy, actions, and results) into its environment to
influence the way people in and out of organization respond to it.
Spokesperson- give a speech to inform the local community about the
organization’s future intentions.

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The decisional roles
The four decisional roles and activities:
 In the Entrepreneur role,
Entrepreneur means some one who produce/do new thing or some
thing different or in a different way.
Entrepreneur role is the manager initiates change (deciding which new
projects or programs to initiate and to invest resource in).
 In the Disturbance handler role, responsible for corrective action when
organization faces important unexpected disturbances/problems both from
external and internal environment. a manager deals with schedule problems,
equipment failure, strikes, broken contracts, and any other
feature of the work environment that decreases productivity
 In the Resource allocator role, the manager chooses where the organization
will expend its efforts (assign resource to divisions and departments). Approves
significant organizational decisions.
 In the Negotiator role, the manager negotiates on behalf of the organization.
Negotiator- work with /contract/agreement with suppliers, distributors and labor
unions
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Manager’s Role is to influence action by:
1. Managing action directly
2. Managing people who take action
3. Managing information that propels people to take
action

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Section 5
Why it is important to study management?
We all benefits from efficiency and effectively run
businesses
We managed organizations prosper even in
challenging economic times

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Why it is important to study management?
 The importance of management may be traced in the following
contexts
 1. It helps in achieving groups/organizational goal
 2. For Effective Utilization of Resources:
 3. For Development of Resources:
 4. To Reduces Costs of production
 5. To incorporate Innovations:
 6. Integrating various Interest Groups:
 7. Stability in the Society:
 8. Management is a critical element in the economic growth of a
country:
 9. problem solving
 10. performance control;
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What factors are Reshaping and Redefining
Management
The environment we are working become complex.
So to day manager’s deal with
- Where work place is changing (more computers,
technology--)
- Where Ethical and trust issue become critical issue
- Under global economic uncertainty
- Changing technologies
- Where customers are important and creating
customer responsive environment is essential time

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WHAT MAKE MANAGERS SUCCESSFUL?
Hard work
Smart work
Patience
Out of box thinking
Reading and acquiring knowledge
Ethical consciousness
Collaborative relationship
Perseverance

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Introduction To Management Chapter I

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Chapter One

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

 “Management is art of getting things done through people.” (Mary

Efficient, but not Effective:

Management concepts and Thoughts 2021 By Dr.

Low Waste High Attainment

Management Strives for:

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

 All organizations are guided and directed by

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

As a human activity management emphasizes

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management Principles are relative, not absolute and they should be

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

 Managers may direct workers directly or they may direct several

 A manager's title reflects what he/she is responsible for. An

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Levels of Management refer to a line of demarcation

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Example: Chief Executive Officer, Chief Financial Officer, Chief

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

What skills do managers need?

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

Management concepts and Thoughts 2021 By Dr.

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