CHAPTER 1: INTRODUCTION TO

MANAGEMENT
After completing this chapter, students should be able
to:
Define what management is
Identify and explain the basic managerial functions
Understand the roles that managers play
Describe the three levels of managers in terms of the
skills that they need and the activities in which they
are involved
Definitions of Management,
Organization, & Managers

Measuring managerial
performance

Management functions

Managerial levels

Management skills

Managerial roles
 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)
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)
Accomplish objectives
To help us to achieve our objectives
e.g. You come to UiTM to study & obtain a diploma

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
 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

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 GOALS

Leading

Controlling
 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
 High

Effective but not efficient. Effective & efficient.

Some resources are Goals are achieve &
Goal Attainment
(Effectiveness)

wasted. resources are well utilized,

area of high productivity
A B
C D
Neither effective nor Efficient but not effective.
efficient, goals are not No wasted resources, but
achieved, resources wasted goals not achieved.
in the process.

Low
Poor Good
Resource Utilization
(Efficiency)
 Management is a process that contains several functions. It comprises
of the activities of Planning, Organizing, Leading & Controlling
(POLC).

Includes defining goals, establishing strategy & developing

PLANNING 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 &
ORGANIZING where decisions are to be made.

Includes motivating subordinates, directing others,

LEADING selecting the most effective communication channels, &
resolving conflicts.

Monitoring activities to ensure that they are being

CONTROLLING accomplished as planned & correcting any significant
deviations.

LEADS TO

ACHIEVING THE ORGANIZATIONS STATED PURPOSE

(GOALS/ MISSION)
 There are 3 levels of management:

Establish objectives, policy &

strategy, make long-term
3 levels of management

Top
managers decisions. E.g.: CEO, President

Interpret top management

directives into operating plans,
Middle make implementation decision.
managers E.g.: Marketing Manager, H.R.
Manager

Direct & support work on

First-Line managers/ non-managerial personnel,
Lower Level Manager make short-term operating
decision. E.g.: Clerk

Non- managerial personnel Perform variety of task

activities, using technical
skills. E.g.: Driver
 Manager

By the range of
By their level organization
Responsible for a
in the organization activities they are
single area of
responsible activity. E.g.:
Finance manager,
Marketing
manager
Top managers Functional manager

Middle manager General manager

Responsible for
more complex
units that include
many functional
areas of activity.
First-line manager E.g.: Plant
manager
 There are 3 basic skills required by managers:

3 Basic skills

Technical skills (T) Human skills (H) Conceptual skills (C)

Ability to use the Is a skill that gives a They are mental capabilities
procedures, techniques, manager the ability to that help managers see the
& knowledge of a work effectively with whole enterprise as well as the
specialized field. E.g.: other people. It relationships that exist among
accountant, a heart includes the ability to the various parts in the
surgeon, & a civil motivate, understand, organization. This skill gives
engineer has a special lead & communicate, the manager the ability to
knowledge relating to the which a manager needs coordinate & integrate the
specialize field. throughout his work. organizations interests &
activities.
 Top H T C

H C
T
Middle

C
Lower H T

Human Technical Conceptual

H T skill C skill
skill
 According to Henry Mintzberg, managers perform ten
different inter-related roles in the organization.

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.
1. Classical approach
2. Scientific approach
3. Administrative management
4. Behavioural perspectives
5. Contigency/Situational approach

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 Emerged during the late 19th and early 20th century
Management challenges :
-organizing managerial structure
-training employees
-scheduling complex manufacturing operations
-labour dissatisfaction and strikes

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 Frederick Winslow Taylor suggested that the primary
problem lays in poor management practices
Decisions based on rules of thumb and tradition be
replaced with precise procedures developed after careful
study of individual situations
He formulated opinions on a) task performance b)
supervision c) motivation

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 Observe and experiment
Time and motion studies identify a workers physical
movement and determine the best way of performing the
task
Expectations of management:
a) Development of work standards
b) Selection of workers
c) Training of workers
d) Support of workers

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 Single supervisor could not be an expert for all tasks
First level supervisor should be responsible only for
workers who perform a common function to him/her
Concept of functional foremanship where foremen
have separate responsibility to each work area

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 Using money to motivate workers
Met standard = standard wage rate
Exceeded standard = higher rate
Frank and Lilian Gilbreth suggested that better
working conditions can increase efficiency and
productivity through scheduled lunch breaks, rest,
safe working environment and abolition of child
labour

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 Henri Fayol, a French mining engineer recognized that
successful managers had to understand the basic
managerial functions
There are 14 general principles of management
Find ways to remember all 14 elements

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 Managers are influenced by human behaviour patterns
Mary Parker Follet : managers need to coordinate and
harmonize group efforts rather than force people
4 principles of coordination:
1. People direct contact with one another
2. Essential during the initial stages
3. Must address all factors and phrases
4. A continuous and ongoing process

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 Elton Mayo highlighted that increased levels of lighting
could improve productivity
Conducted Hawthorne studies that showed the
importance of groups in affecting the behavior of
individuals at work
Norms of cooperation and higher output were established
because of a feeling of importance
People will form work groups and this can be used by
management to benefit the organization.

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 Douglas McGregor formulated Theory X and Theory Y
Lets look at a simple theory X and Y in our daily life

REMEMBER!!!
X is more towards the negative side
Y is more towards the positive side

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 Theory X Theory Y
People are lazy. People are energetic.
People lack ambition and People are ambitious and
dislike responsibility. seek responsibility.
People can be selfless.
People are self-centered.
People want to contribute
People resist change. to business growth and
People are gullible and not change.
very bright. People are intelligent.

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 Theory X Theory Y
Employees dislike work Employees enjoy work
Employees must be Employees are self
directed, forced, motivated and directed
controlled or toward achieving goals
threatened to perform
job Employees seek
Employees wish to responsibility
avoid responsibility

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 Developed by managers, consultants and researchers
to adapt what the theorists said to real life situations
However, it is easier said than done
Not all situations can work with the theories
A managers task is to identify which technique that
best contributes to the management goals
Unskilled and new employees = simplifying tasks
Skilled and experienced = job enrichment

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