Chapter 1 - Intro to Mgt

7/24/2019 Chapter 1 - Intro to Mgt

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After completing this chapter, students shouldbe able to:

De ne what management is

Identify and explain the basic managerialfunctionsUnderstand the roles that managers playDescribe the three levels of managers in

terms of the skills that they need and theactivities in which they are involved


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he art of getting things done through people !"ollet#

$ he process of administering and coordinatingresources e ecti!e"#$ e%cient"# , and in an e%ort toachie!e the goa"s of the organi&ation' !(ewis#

$ he process of &"anning$ organi'ing$ "eading$ (contro""ing that encompasses human, material,nancial ) information resources in an organi&ationalenvironment' !*olt#

$ he &rocess o) &"anning$ organi'ing$ "eading (contro""ing the e%orts of an organi&ation members )of using all other organi&ational resources to achievestated organi&ational goals' !+toner#


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rgani&ationA group of individuals who work together towardcommon goals (Lewis)The structure of relationships that exits when 2 or more

people mutually cooperates to pursue commono !ectives ("olt)An organi#ation is a social unit in which 2 or more

people interact to achieve a common goal or a set ofgoals ($tone)

-anagerAn organi#ational mem er who is responsi le for

planning% organi#ing% leading% and controlling theactivities of the organi#ation so that its goals areachieved (Lewis)


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Accomplish ob.ectives o help us to achieve our ob.ectivese/g/ 0ou come to Ui - to study ) obtain a diploma

1reserve knowledgergani&ation is also needed because it is a placewhere knowledge2 information is preservede/g/ o know about our country3s history we cango to the museum


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+erve societyrgani&ation is also needed to serve societye/g/ 4e can always go to hospitals or clinics if weare not feeling well or if we have certain illnesses

1rovide careersrgani&ation also provide us with careeropportunities/ +ome of us work in banks, others

in some other organi&ations/ hose organi&ationsprovide individuals a place to go for work ) earnsalary every month


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GOA*+


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1erformance can be measured by looking at 5 criteria :

1erformance e6ciency (doing things right) he ability to do the things right/ An e6cient

manager is a manager who can achieve outputs2results as expected/ -anagers who are able to utili&e) minimi&e the cost of resources such as sta%,nance, e7uipment ) raw materials

1erformance e%ectiveness (doing the right things) he ability to choose the right goals

e/g/ If the demand in the market for cars is formsmall, compact ) economical cars, but the managerchooses to produce ) manufacture big, luxury )expensive cars, the manager is considered to beine%ective


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1lanning

rgani&ing(eading

;ontrolling


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-anagement is a process that contains several functions/ Itcomprises of the activities of 1lanning, rgani&ing, (eading

) ;ontrolling !1 (;#/

ACHIE/ING THE ORGANI0ATION + +TATED

PURPO+E -GOA*+2 MI++ION.

P*ANNING

ORGANI0ING

*EADING

CONTRO**ING

Includes de ning goals, establishing strategy )developing plans to coordinate activities/

Determine what tasks are to be done, who is to dothem, how the task are to be grouped, who reportsto whom ) where decisions are to be made/

Includes motivating subordinates, directing others,selecting the most e%ective communicationchannels, ) resolving con


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op -anager

-iddle -anager"irst (ine -anager


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here are = levels of management :

9stablish ob.ectives, policy )strategy, make long>termdecisions/ 9/g/: ;9 ,1residentInterpret top managementdirectives into operatingplans, make implementationdecision/ 9/g/: -arketing-anager, */?/ -anager

Direct ) support work onnon>managerial

personnel, make short>term operating decision/9/g/: ;lerk1erform variety of taskactivities, using technicalskills/ 9/g/: Driver

= l e v e

l s o

f

m a n a g e m e n

t


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?esponsible fora single area of

activity/ 9/g/:"inance

manager,-arketingmanager

?esponsible formore complex

units thatinclude many

functional areasof activity/ 9/g/:1lant manager


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echnical*uman;onceptual


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here are = basic skills re7uired by managers:


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*

*

*

;

;

;

* *umanskill ; echnical skill

;onceptual skill


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According to *enry -int&berg, managers perform ten

di%erent inter>related roles in the organi&ation/Interpersonal roles!help manager in managing the organi&ation smoothly#

"igureheadA department head performing ceremonial dutieslike greeting visitors, signing legal documents/(eaderA person who is responsible for hiring, training )motivating subordinates in the organi&ation/(iaisonA person who perform ) interacts with other peopleoutside the organi&ation/


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Informational roles!assists the manager in receiving ) communicating theinformation to make the right decision#

-onitor-anager continuously seeks information that canbe used to advantage/DisseminatorInformation received internally or externally willbe transmitted to the subordinates/

+pokespersonInformation will be transmitted to people outsidethe organi&ation or unit/


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Decisional roles!assists managers in making decisions that solve problemor analy&e ) take advantage of opportunities#

9ntrepreneur-anager tries to improve the unit ) initiate thechanges/

Disturbance handler -anager is responsible for corrective actionswhen the organi&ation faces important,unexpected disturbances/?esource allocator- anager is responsible in allocating the resourcesof the organi&ation/egotiator-anager is responsible for representing the

organi&ation at ma.or negotiations/


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After completing this chapter, students shouldbe able to:

Describe the ma.or in


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9conomic In


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echnological In


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Scientific ApproachScientific Approach

Contingency ApproachContingency Approach

Classical ApproachClassical Approach


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Tends to focus on the

productivity of theindividual worker

ScientificManagement

AdministrativeManagement

Tends to focus on thefunctions ofmanagement

Bureaucratic

Management

Tends to focus on theoverall organizational

system


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"ather of +cienti c -anagementAttempted to de ne $the one best way' to perform every taskthrough systematic study and other scienti c methods/believed that improved management practices lead toimproved productivity/

"ocus on the productivity of the individual worker/

= areas of focus

Task &erformance @ In task performance, the basic expectation thatmanagers should look into are:

Development of work standards+election of workers

raining of workers

+upport of workers$upervision > "irst level supervisor should be responsible tosupervise their subordinates

'otivation > -oney was the best way to motivate workers to theirfullest capabilities


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+peciali&ed in time and motion studies todetermine the most e6cient way to performtasks!by "rank#

A strong proponent of better workingconditions as a means of improving e6ciencyand productivity!by (illian#

+he favoured standard days with scheduled lunchbreaks and rest periods for workers

+he also strived for removal of unsafe workingconditions and the abolition of child labour


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*enri "ayol ! BC > 5E# was the rst torecogni&e that successful managers had tounderstand the basic managerial functions

Developed a set of C general principles ofmanagement/!pg =5#

"ayol3s managerial functions of planning,

leading, organi&ing and controlling areroutinely used in modern organi&ations


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Division of workAuthority and?esponsibility

DisciplineUnity of commandUnity of direction+ubordination ofindividual interest?emuneration ofpersonnel

;entrali&ation+calar chainrder97uity+tability ofpersonnel tenureInitiative9sprit de corps


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"ocuses on the overall organi&ational system/

Fureaucratic management is based upon:"irm rules

1olicies and proceduresA xed hierarchy

A clear division of labour


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-ax 4eber ! BGC> 5H# > a 8ermansociologist and historian, is most closelyassociated with bureaucratic management

9nvisioned a system of management that wouldbe based upon impersonal and rational

behaviour

;onceptuali&ed the approach to managementreferred to as bureaucracy

Division of labour*ierarchy of authority?ules and proceduresImpersonality9mployee selection and promotion


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Type Description Examples

Traditional Subordinate obedience based oncustom or tradition

Royalty (kings,queens, chiefs etc)

harismatic Subordinate obedience based onspecial personal qualities associated

!ith certain social reformers,political leaders, religious leaders, or

organi"ational leaders

#ill $ates(%icrosoft), Tun Dr&%ahathir %ohamad

Rational'legal

Subordinate obedience based on theposition held by superiors !ithin the

organi"ation

olice officers,managers,super isors


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Source: Management, Challenges for Tomorrows Leaders, InternationalStudent Edition, 2007, pp.3 .


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he development of thought adaptedthe classical perspective ofmanagement?ecogni&es the importance of humanbehaviour patterns in shapingmanagerial style-a.or contributors:

-ary 1arker "ollet9lton -ayoDouglas -c8regor;hester Farnard


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Felieved that a key to e%ectivemanagement was coordination/"elt that managers needed to coordinateand harmoni&e group e%ort rather thanforce or coerce people+he developed the C principles ofcoordination to promote e%ective workgroups:

;oordination re7uires that people be in directcontact with one another;oordination is essential during the initialstages of any endeavor;oordination must address all factors andphases of any endeavor;oordination is a continuous, ongoing

process/


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;onducted $ he *awthorne e%ect'$ he *awthorne 9%ect'

he phenomenon whereby individual or groupperformance is in


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1roposed the heory and heory 0 styles ofmanagement/

heory managers perceive that theirsubordinates have an inherent dislike of workand will avoid it if at all possible/

heory 0 managers perceive that theirsubordinates en.oy work and that they will gainsatisfaction from performing their .obs /


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"elt that executives serve two primaryfunctions:-ust establish and maintain acommunications system amongemployees/

-ust establish the ob.ectives of theorgani&ation and motivate employees/Developed an acceptance theory of authority:

Authority of a manager


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;haracteri&ed by its use of mathematics,statistics, and other 7uantitative techni7ues formanagement decision>making and problem>solving

ecision making focus @ ?e7uire some direct action on thepart of management

'easura le criteria @ +elect some alternative course ofaction by making comparison

*uantitative model@ -ake use of mathematical symbols,

e7uations, and formulas

+omputers ;omputers are 7uite useful in the problem>solving process/


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An approach to problem solving that attackscomplex systems by breaking them down intotheir constituent elements

"eedback


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An approach to problem solving based onan understanding of the basic structure ofsystems/

9nvironmental interaction

Open systems must interact withthe external environment tosurvive/

Closed systems do not interact

with the environment/+ynergy: when all subsystems worktogether making the whole greaterthan the sum of its parts/

9ntropy: the tendency for systems to


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A view that proposes that there is no onebest approach to management for allsituations

Asserts that managers are responsible fordetermining which managerial approach islikely to be most e%ective in a givensituation

his re7uires managers to identify the keycontingencies in a given situation


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Joan 4oodward discovered that a particularmanagement style is a%ected by theorgani&ation3s technology/

4oodward identi ed and described threedi%erent types of technology:

+mall>batch technology

-ass>production technology

;ontinuous>process technology


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+ma""34atchtechno"og#

;ustom fabricationmachine shop, neon signmanufacturer, trophy shop

Mass3&roductiontechno"og#

;ar manufacturer, hairdryer manufacturer, pencilmanufacturer

Continuous3&rocesstechno"og#

il re nery,


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Chapter 1 - Intro to Mgt

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