Introduction to

Management
CHAPTER ONE

1. Introduction
Dear students,
 Is management necessary? Why?
 What does a manager actually do?
 What are some of the characteristics of the field of
management?
 1.1 Introduction
To answer some of these concerns, dear student, just look at yourself.
 You are a manager of your time, energy, and talents.
 The decisions you make each day in these three areas will have a far-reaching
influence on your career, your life and the lives of others.
 Think of yourself getting up on the morning, you must make
decisions at once:
 You must plan what you want to accomplish during the day,
 organize the resources to achieve your plan and
 periodically check on those activities to see if your plan is being achieved.
 Realizing it or not, you are performing three of the management function –
planning, organizing and controlling.
This is simply to show you how the task of managing is performed
in our day-today life.
 Organizations abound in today’s society. Groups of individuals
constantly join forces to accomplish common goals.
 Sometimes the goals of these organizations are for profit. Other
times, the goals are more altruistic, such as nonprofit churches or
public schools.
 But no matter what their aims, all these organizations share two
things in common: They’re made up of people, and certain
individuals are in charge of these people.
 Managers appear in every organization — at least in
organizations that want to succeed.
 The work of these managers is called management.
 So What is Management?
1.1 Management - Definition
 The word manage comes from the Italian maneggiare (to handle-
especially tools), which inturn derives from the latin manus (hand).
 The french word mesnagement(later menagement) influenced the
development in meaning of the English word management in the
17th and 18th centuries.
 To most people, the term "management" probably means the
group of people (executives and other managers) who are
primarily responsible for making decisions in the organization.
 In nonprofit organizations, the term management might refer to all
or any of the activities of the board, executive director and/or
program directors.
 It is impossible to provide a single, comprehensive, universally
accepted definition of management.
 According to F.W. Taylor, "Management is the art of knowing what you want
to do in the best and cheapest way."
 According to Henery Fayol, "To manage is to forecast and plan, to organize,
to command, to coordinate, and to control.”
 According to H. Koontz and his co-author, "Management is the process of
designing and maintaining an environment in which individuals are working
together in-group to accomplish efficiently selected aims."
 According to Kinard, "Management is the process of maximizing the potential
of an organization's people and coordinating their efforts to attain predetermined
goals.”
 George R Terry who defines management as “a process consisting of
planning, organizing, actuating and controlling performed to determine
and accomplish the objectives by the use of people and resources”.
FUNDAMENTALS OF MANAGEMENT

What is management?
 Management is the process of getting things done
through the efforts of people and other resources.
• Emphasis on achieving goals/objectives with
efficient and effective use of organizational
resources (i.e., based on managerial concerns)
 Effectiveness
• Doing the right things
• Attaining organizational goals/objectives
 Efficiency
• Doing thing right
• Getting the most output for the least inputs
FUNDAMENTALS OF MANAGEMENT
Efficiency & Effectiveness in Management

Efficiency Effectiveness

Resource Goal
usage attainment

High
Low waste
attainment
Management strives for;
• low resource waste (high efficiency)
• high goal attainment (high effectiveness)
FUNDAMENTALS OF MANAGEMENT
 Thus, management implies that:
• Organization depend on performance of people
for achieving their mission, goal & objectives
• Organizational activates require human effort
and capabilities
• Exercise: describe organizational resources
Human Physical
Resources resources
Managerial Effective Goals
activities and
efficient
utilization

Financial Information
Resources resources
FUNDAMENTALS OF MANAGEMENT
 Management is the process of planning, organizing,
directing & controlling to achieve organizational
goals & objectives
• Emphasis on the function of management
 Management is the process of decision
making/problem solving
• Emphasis is on making proper decision
• Hence, for making proper decision:
• Identify the real problem
• Study the problem
• Identify possible/alternative solutions
• Select the best possible/ alternative solution
 FUNDAMENTALS OF MANAGEMENT
 Exercise: differentiate b/n goals and objectives, what
do we mean by process?
 Goals & objectives are mostly used synonymously
interchangeable
 However, they have to be differentiated
• Goals are broad objectives of the organization
• Objectives are more specific targets of the
organization.
• Process is a systematic method/way of handling things
• Process is group of related activities that create values
• Thus, management is a process since managers are
required to perform interrelated activities. i.e., functions of
management
 FUNDAMENTALS OF MANAGEMENT
The definition of management from broad perspective
is given by Peter Drucker as follows:
• According to Drucker (1973:37), management is an organ
of an institution, and the institutions, whether a business or
a public service, is in turn an organ of society, existing to
make specific contribution and discharge specific social
functions.
• In view of Gerloff (1985:3), it is largely management which
decides the need of the society and the attempt to define an
organization which can fill them.
• Society ----- institution ----- management ---- create value
 FUNDAMENTALS OF MANAGEMENT
• Management is the process undertaken by one or more
individuals to coordinate the activities of others to achieve results
not achievable by one individual acting alone.
• Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
accomplish efficiently selected aims.
• Management is the process of combining and efficiently utilizing
scarce resources such as men and women, materials, money,
machinery, methods, and markets for the accomplishment of a
given objective.
 1.2 Significance of Management
In short the importance of management includes the following points:
 Accomplishment of group goals
 sound resource planning
 adoption to business environment
 Day-to-day direction and control of business activities.
 Efficient running of business
 effective leadership and motivation
 Integration of individual interest.
 Producing with group interest and sound organization structure.
 Clear definition of authority and responsibility
 Integration of formal and informal group activity.
 1.3 Managerial Functions: An Overview
 Management is the process of stating and achieving goals through the
execution of five basic management functions.
 They are: - planning, organizing, staffing, leading and controlling
organizational resources.
1. Planning
What is planning?
 Planning is the process of establishing goals and selecting future course of
action for their accomplishment. It is this planning function that
determines in advance the 5WH + How questions, i.e::
 What is to be done?
 Why is it to be done?
 How is it to be done?
 Who is to do it?
 Where is it to be done? And
 When is to be done?
In brief, the planning process includes the following activities:
 Establishing goals.
 Developing an understanding of the environment in which the goals are to
be accomplished.
 Identifying alternative course of action and evaluating them.
 Selecting a course of action for accomplishing the objective.
 Initiating activities necessary to translate plans in to action.
 Evaluating the outcome of planning.
2. Organizing
What is organizing?
 Organizing is the basic process of combining and integrating human,
physical and financial resources in productive relationships for the
achievement of organizational objectives.
Organizing involves:
 Identification of activities required for the achievement of objectives and
implementation of plans.
 Grouping of activities to create self–contained jobs.
 Assignment of jobs to employees.
 Delegation of authority so as to enable the employees to perform their jobs and
to command the resources needed for their performance.
 Establishment of a network of coordinating relationships.
3. Staffing
What is staffing?
 Staffing is the process of ensuring that employees are selected, developed, and
rewarded for accomplishing goals.
 It is a continuous and vital function of management, which involves filling the
vacant positions in the organization structure.
 The staffing function of management comprises the following
activities;
 Human resource planning: involving determination of the number and kind of personnel
required.
 Recruitment: attracting suitable number of potential employees who look for jobs.
 Selection: Selecting the most suitable persons for the jobs or positions under
consideration.
 Placement, induction, and orientation.
 Transfer, promotion, termination and lay off.
 Training and development of employees.
4. Leading/ Directing
What is directing?
 Directing is the function of leading employees to perform efficiently
and effectively to the achievement of organizational objectives.
 It is the process of inducing or motivating individuals and groups to
assist willingly and harmoniously in accomplishing goals.
 Leading involves influencing others in order to accomplish specific
objectives.
The directing functions include the following elements:
 Communication: explaining and clarifying the jobs assigned to the
employees.
 Motivation: causing employees to contribute their optimum performance.
 Leadership: providing guidance to employees in their job performance.
5. Controlling
What is controlling?
 Controlling is the process of assuring the efficient accomplishment of goals.
 This is the function by which managers determine whether or not
organizational objectives are achieved and whether or not actual operations are
consistent with plans.
 Controlling involves the following;
 Establishment of standards against which actual performances are measured.
 Measurement of the actual performance.
 Comparison of the actual performance with the standards established.
 Identification of deviations of the actual performance from the standards or goals
 Taking corrective action to rectify (to put right) the deviations.
Who are managers?
 Managers: are persons in the position of authority who
make decisions to commit (use) their resources and the
resource of others towards the achievement of
organizational objective.
• Those who coordinate & oversee the works of others
people so that organizational goals can be accomplished.
• They determine the success or failure of organizations.
• Managers can be distinguished based on two criteria:
• Levels of management (vertical difference)
• Scope of responsibilities (horizontal difference)
 Is management the same throughout an organization?
Yes/no
Who are managers?
• Yes because all managers preform the basic
managerial functions
• No; even though they preform all managerial
functions, they perform it with different emphasis
and scope
• Thus, the nature & scope of their activities serve as
a basis for the classification of managers
 1.4 Levels of Management and Types of
Managers
1.4.1 Levels of Management
 The Management hierarchy in an organization is divided into
three levels: top management, middle management, and first-line
or supervisory level management.
 The scope of authority may vary and the types of problems dealt
with may be considerably different.
 The time spent by managers for managerial function may differ
from function to function.
1.Top Level Management
 It is composed of those individuals who have responsibility for
making the decisions and formulating the policies that affect all
aspects of the firm’s operations.
 They spend more time on planning and organizing than
lower-level managers.
The following are the Specific Functions of top level
managers;
 Establishing the long-term (broad) objectives for the entire
organization.
 Designing major strategies and policies for the achievement of
long-term objectives.
 Providing effective organizational structure and make overall
control of the organization
 Providing overall leadership of the organization towards
accomplishment of its objectives.
 Dealing with such forces in the external environment as the
government, competitors, technology, social, and economic.
2. Middle Level Management
 It includes all managers above the supervisory level, but below
the level at which overall company policy is determined.
The following are specific functions of middle Managers;
 Act as intermediary between top management and first-line
management.
 Translate long-term plans into medium-term plan.
 Develop specific targets in their areas of responsibility.
 Coordinate inputs, productivity and output.
 Develop specific schedules to guide action and facilitate control.
3. First–Line Management or Supervisory Level
Management
 The first–line managers comprise the largest managerial group in most
organizations and they are responsible for directly managing operating employees
and resources.
 First–line managers are the only managers who do not manage other managers.
 Their job is to make sure that the employees who actually produce the organizations
goods and services to fulfill the plans developed for an organization by higher
management.
Specific functions of first–line managers include the following:
 Plan daily and weekly activities based on the quarterly and yearly plans.
 Assign operating employees to specific tasks.
 Issue instructions at the workplace.
 Motivate subordinates to change or improve their performance.
 Provide subordinates ongoing performance feedback.
 Take action to resolve performance problems.
 Identify ways of improving communication among subordinates.
 Report to middle level managers.
 Managerial levels

Top
mangers
Middle
managers
First-line managers

Non managerial employees

 1.4.2 Types of Managers
1.Classification of Managers based on their
area/range/ of management or organizational
functions for which they are responsible:
 General managers: Managers who are responsible for the overall
activity of the organization
 Functional managers: Managers who are responsible for a specific
function of a particular unit in an organization such as finance,
marketing, logistics etc
2. Classification of Managers based on their position/level
of management in the organization
 Top/senior level management/managers
 Middle level management/managers
 First line/supervisory/lower level management/managers
 All managers perform all managerial function (POSLC) but the
time they spend for each function and the skill (Conceptual, Human
relation, Technical skills) required for each manager depends upon
the level of managers
 Managerial jobs vary according to their hierarchical levels within an
organization. Accordingly, managers are group into three types –
first-line managers, middle level managers, and top level managers.
1. First-line managers (supervisory level or first-line
supervisors): are managers at the lowest level in the hierarchy;
they are directly responsible for the work of operating (non-
managerial) employees. Titles include:, technical supervisor,
Foreman office clerk, unit heads, time clerk,
2. Middle Level managers: are managers beneath the top levels of
the hierarchy who are directly responsible for the work of other
mangers below them. Typical titles include “manager,” “director of,”
“chief,” “department head,” and “division head.”
3. Top Level managers: are the very top levels of the hierarchy who
are ultimately responsible for the entire organization. Typical titles
include “chief executive officer (CEO),” “president,” “executive vice
president,” executive director,” “senior vice president,” and
sometimes “vice president.”
 They oversee overall planning for the organization, work with
middle managers in implementing and planning, and maintain overall
control of the progress of the organization.
 What Do Managers Do?
 1.5 Managerial Roles and Skills
1.5.1 Managerial Roles
 A role is a behavioral pattern expected of an individual within a unit or
position.
 According to Henry Mintzberg roles can be classified in to three:
A. Interpersonal Roles: It refers to the managers’ role to interact with
people.
 Figurehead role: It is representing an organization at different
occasions such as inaugurating new buildings.
 It is the ceremonial and symbolic role of managers such as receiving
visitors, attaining workshops, ribbon cutting.
 Leadership role: It involves directing and coordinating subordinates’
activities (leading, motivating, and controlling).
 Liaison role: It involves developing and maintaining interpersonal
relationships within and outside the organization.
B. Informational Roles: Informational roles are roles assumed
by managers that establish them as the central point for receiving
and sending non-routine information. Informational roles require
the manager to serve as:
 Monitor role: It involves examining the environment to
gather information which may affect his/her unit.
 Disseminator role: It is a role that the manager provides
important information to subordinates that they might not
ordinarily know about.
 Spokesperson role: It is a role that the manger represents
his/her unit to other people internally or externally.
C. Decisional Roles: Decisional roles are the roles assumed by
managers that establish them as decision makers after receiving
interpersonal and informational input. In the decisional role the
manager becomes:
 Entrepreneur role: It is a role that the manager devises new
ideas, and plans and implements change to improve
organizational performance.
 Disturbance handler role: It is a role that the manager makes
decisions or takes corrective action in response to pressure
beyond his/her control.
 Resource allocator role: It is a role that the manger decides
who will get what resources.
 Negotiator role: It is a role that the manger bargains with units
and individuals to obtain advantages for his/her unit.
Managerial roles approach (Henry Mintzberg)
 1.5.2 Managerial Skills
 A manager’s job is diverse and complex and thus requires a range of skills.
 Regardless of the level at which managers perform, they must learn and develop
many skills.
 A skill is an ability or proficiency in performing a particular task.
 Summarized in three categories:
1. Conceptual skill: the ability to understand all the organization’s activities and
interests, how they interrelate, and how the organization functions as a whole.
 It is the ability to see the big picture, the complexities of the overall
organization and how the various parts fit together.
2. Human skill: the ability to work with, communicate with and
understand others.
 Communication skills involve the ability to interact in ways that other
people understand and to seek and use feedback from one’s audience
(employees) that one is understood.
3. Technical skill: the ability to use specific knowledge,
techniques, and resources in performing work.
 The following figure shows the relative importance of
managerial skills at different levels.
 1.6 Universality of Management
 Many professionals in the field of management agree that
“management is universal.’’
 These proponents argue the universality of management by stating
that the functions of managers are really the same if the
organizations are:
 Private or public
 Profit making or non–profit,
 Manufacturing or service giving, and
 Small firms or industrial giants.
 The basic principles and concepts of management are universally
applicable to all types of organizations
 Universal Need for Management

1–40 © 2007 Prentice Hall, Inc. All rights

reserved.
The following are some of the points which characterize the universality of
management:
 All managers operate in organizations with specific objectives.
 All managers must plan, organize, lead, and control in order to achieve
these organizational objectives.
 The functions of planning, organizing, leading and controlling are
similar in all organizations regardless of the types of ownership.
 The vital force of management is needed to integrate scarce resources
in optimum productive relationships.
 Management, in all organizations, helps to achieve organizational
objectives.
 In sum, management theories and principles have universal
application in all kinds of organized and purposeful activity
and at all levels of management.
1.7 Management Dilemmas: (Is Management a Science? an Art?
a Profession?)
Management as a Science
 Science: is a systematic and organized body o knowledge
which has clear underlying concepts, principles and theories
that are universal.
 Some of the characteristics of science are:
 Clear concepts (mental images): i.e. scientific words, phrases and
terms should be exact, relevant, and informative to the scientists as
well as practitioners like you.
 Scientific method/approach i.e. it should be possible to
 Determine and verify facts through observation
 Classify and analyze facts
 Identify cause effect relationships etc.
  Universality/objectivity of principles, generalization of methods, cause-
effect relationships, etc in similar situation and formation of principles.
 Well-defined theories: Systematic grouping of interdependent concepts,
principles and facts in to significant area of knowledge. Eg. Classical
management theory, Behavioral management theory etc.
 So does management satisfy the definition and the
characteristics of science? YES!
Therefore, Management is a science.
 However, the science underlying management is fairly crude, and in
exact. i.e. it is not as precise as a natural sciences. Because
management, as we know, deals with human beings and human
behavior is complex. Every individual is unique in this world, no two
individuals are alike
Management as an Art
 Art: Creative talent/skill/intuition or ability that can be developed through practice,
trial and error etc. like painting, poet, and drama (comedy/tragedy).
 Supporters like Jucius and Schlnder (Chandan, 1998) argue that
 Managers as leaders are born not made
 Managers depend upon their intuition (creativity) to make decision
 There have been a number of successful managers who have not been educated
for management.
 Therefore creativity and experience is more important than formal education
for managers.
 So does management satisfy the definition and the characteristics of an art? YES!
Because, as an art, management requires skill, creativity, intuition, practice, subjective
judgment and doing thing in the light of the existing reality (eg. In planning,
forecasting…..)
 Therefore, Management is also an art.
 Conclusion: Science and an art are not mutually exclusive, rather, they are
complementary, i.e. as science improves, and so does an art.
Management as a Profession:
 Profession is specialized body of knowledge acquired through education. It is paid
occupation that requires advanced education and training
Elements of a profession:
 Well-defined, transferable formal body of knowledge, theories, principles, that
must be achieved through formal education and training
 Continuous discipline of study
 Accepted authority, institution or association which certifies professionals on the
basis of skill and knowledge which has the right to admit/reject admission to the
profession (EMI. AMA, MTPA Department
 Recognized status in the society
 Professional code of conduct: Impartiality, transparency,
 So, does Mgt meet/satisfy the above mentioned definition and elements? YES!
Therefore, Management is a profession
 Quiz
Give Short and precise answer for the following question
in a separate sheet of paper.
1. Give at least two definition for the term Management using
your own words.
2. Explain about the basic managerial functions.
3. Write the levels of Management?
4. Write the types of managers?
5. Write roles of Managers?
Plagiarism and copying from others is forbidden.