FUNDAMENTALS OF MANAGEMENT (MGT 162)

CHAPTER 1: INTRODUCTION TO MANAGEMENT

Learning Objectives
After completing this chapter, students should be able to: Define what is management Explain on how to measure managerial performance Identify and explain the management process functions and activities Discuss the different managerial levels, skills and roles Explain on evolution of management thoughts

Chapter Outline
Definition organization and management. Measuring managerial performance Effectiveness Efficiency Management process functions and activities Managerial roles Managerial level Managerial skills

DEFINITION OF MANAGEMENT
The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization (Lewis) The process of planning, organizing, leading, & controlling that encompasses human, material, financial & information resources in an organizational environment (Holt) The process of planning, organizing, leading & controlling the efforts of an organization members & of using all other organizational resources to achieve stated organizational goals (Stoner)

DEFINITION OF ORGANIZATION & MANAGER

Organization A group of individuals who work together toward common goals (Lewis) The structure of relationships that exits when 2 or more people mutually cooperates to pursue common objectives (Holt) An organization is a social unit in which 2 or more people interact to achieve a common goal or a set of goals (Stone) Manager An organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that its goals are achieved (Lewis)

WHY DO WE NEED AN ORGANIZATION?

1. Accomplish objectives To help us to achieve our objectives e.g. You come to UiTM to study & obtain a diploma 2. Preserve knowledge Organization is also needed because it is a place where knowledge/ information is preserved e.g. To know about our countrys history we can go to the museum

WHY DO WE NEED AN ORGANIZATION?

3. Serve society Organization is also needed to serve society e.g. We can always go to hospitals or clinics if we are not feeling well or if we have certain illnesses 4. Provide careers Organization also provide us with career opportunities. Some of us work in banks, others in some other organizations. Those organizations provide individuals a place to go for work & earn salary every month

Planning

Organizing Communication Leading

GOALS

Controlling

MEASURING MANAGERIAL PERFORMANCE

Performance can be measured by looking at 2 criteria: Performance efficiency (doing things right) The ability to do the things right. An efficient manager is a manager who can achieve outputs/ results as expected. Managers who are able to utilize & minimize the cost of resources such as staff, finance, equipment & raw materials Performance effectiveness (doing the right things) The ability to choose the right goals e.g. If the demand in the market for cars is form small, compact & economical cars, but the manager chooses to produce & manufacture big, luxury & expensive cars, the manager is considered to be ineffective

PERFORMANCE EFFECTIVENESS & PERFORMANCE EFFICIENCY AS FOUNDATIONS FOR PRODUCTIVITY & MANAGERIAL SUCCESS
High Effective but not efficient. Some resources are wasted. A Neither effective nor efficient, goals are not achieved, resources wasted in the process. B

Goal Attainment (Effectiveness)

Effective & efficient. Goals are achieve & resources are well utilized, area of high productivity C D
Efficient but not effective. No wasted resources, but goals not achieved.

Low Poor Resource Utilization (Efficiency) Good

THE MANAGEMENT PROCESS

Management is a process that contains several functions. It comprises of the activities of Planning, Organizing, Leading & Controlling (POLC).
PLANNING ORGANIZING LEADING CONTROLLING
Includes defining goals, establishing strategy & developing plans to coordinate activities. Determine what tasks are to be done, who is to do them, how the task are to be grouped, who reports to whom & where decisions are to be made. Includes motivating subordinates, directing others, selecting the most effective communication channels, & resolving conflicts. Monitoring activities to ensure that they are being accomplished as planned & correcting any significant deviations.

LEADS TO
ACHIEVING THE ORGANIZATIONS STATED PURPOSE (GOALS/ MISSION)

MANAGERIAL LEVELS
There are 3 levels of management:
3 levels of management
Top managers Middle managers First-Line managers/ Lower Level Manager Non- managerial personnel
Establish objectives, policy & strategy, make long-term decisions. E.g.: CEO, President
Interpret top management directives into operating plans, make implementation decision. E.g.: Marketing Manager, H.R. Manager Direct & support work on nonmanagerial personnel, make short-term operating decision. E.g.: Clerk

Perform variety of task activities, using technical skills. E.g.: Driver

Type of Managers
Manager

By their level in the organization

By the range of organization activities they are responsible

Top managers

Functional manager

Responsible for a single area of activity. E.g.: Finance manager, Marketing manager

Middle manager

General manager

First-line manager

Responsible for more complex units that include many functional areas of activity. E.g.: Plant manager

MANAGEMENT SKILLS
There are 3 basic skills required by managers:
3 Basic skills

Technical skills (T)

Human skills (H)

Conceptual skills (C)

Ability to use the procedures, techniques, & knowledge of a specialized field. E.g.: accountant, a heart surgeon, & a civil engineer has a special knowledge relating to the specialize field.

Is a skill that gives a manager the ability to work effectively with other people. It includes the ability to motivate, understand, lead & communicate, which a manager needs throughout his work.

They are mental capabilities that help managers see the whole enterprise as well as the relationships that exist among the various parts in the organization. This skill gives the manager the ability to coordinate & integrate the organizations interests & activities.

RELATIVE SKILLS NEEDED FOR EFFECTIVE PERFORMANCE AT DIFFERENT LEVELS OF MANAGEMENT

Top

H
Middle

Lower

Human skill

Technical skill

Conceptual skill

MANAGERIAL ROLES
According to Henry Mintzberg, managers perform ten (10) different inter-related roles in the organization.

Managerial Roles

Interpersonal roles

Informational roles

Decisional roles

 Interpersonal roles (help manager in managing the organization smoothly) Figurehead : A department head performing ceremonial duties like greeting visitors, signing legal documents. Leader : A person who is responsible for hiring, training & motivating subordinates in the organization. Liaison : A person who perform & interacts with other people outside the organization.

 Informational roles (assists the manager in receiving & communicating the information to make the right decision) Monitor : Manager continuously seeks information that can be used to advantage. Disseminator : Information received internally or externally will be transmitted to the subordinates. Spokesperson : Information will be transmitted to people outside the organization or unit.

 Decisional roles (assists managers in making decisions that solve problem or analyze & take advantage of opportunities) Entrepreneur : Manager tries to improve the unit & initiate the changes. Disturbance handler : Manager is responsible for corrective actions when the organization faces important, unexpected disturbances. Resource allocator : Manager is responsible in allocating the resources of the organization. Negotiator : Manager is responsible for representing the organization at major negotiations.