Course Leader:

Ahmed Hassan
Lecturer: FAST School of Management
Chiniot-Faisalabad, Campus

MS Financial Management
MS Management
Umeå School of Business and Economics,
Umeå University, Sweden
[email protected]
Chapter Introduction to
1 Management and
Organizations
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

Who Are Managers?

• Explain how managers differ from non-managerial
employees.
• Describe how to classify managers in organizations.

What Is Management?
• Define management.
• Explain why efficiency and effectiveness are important to
management.

1–3
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.

What Do Managers Do?

• Describe the four functions of management.
• Explain Mintzberg’s managerial roles.
• Describe Katz’s three essential managerial skills and how
the importance of these skills changes depending on
managerial level.
• Discuss the changes that are impacting managers’ jobs.
• Explain why customer service and innovation are
important to the manager’s job.

1–4
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.

What Is An Organization?
• Describe the characteristics of an organization.
• Explain how the concept of an organization is changing.

Why Study Management?

• Explain the universality of management concept.
• Discuss why an understanding of management is
important.
• Describe the rewards and challenges of being a manager.

1–5
Who Are Managers?
• Manager
 Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished.

1–6
Classifying Managers
• First-line Managers
 Individuals who manage the work of non-managerial
employees.( Supervisors, shift managers, district
managers, department managers, office managers)
• Middle Managers
 Individuals who manage the work of first-line
managers. (Regional manager, division manager,
project manager)
• Top Managers
 Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization. ( CEO,
MD)
1–7
Exhibit 1–1 Managerial Levels

1–8
What Is Management?
• Management involves coordinating
and overseeing the work activities of
others so that their activities are
completed efficiently and effectively.
• Managerial Concerns
 Efficiency
 “Doing things right” (not
wasting resources)
– Getting the most output for
the least inputs
 Effectiveness
 “Doing the right things”
( activities that help
organizations to achieve its
goals)
– Attaining organizational 1–9

goals
Exhibit 1–2 Effectiveness and Efficiency in Management

1–10
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. ( what tasks are to be done, who is to do them, how
the tasks are to b grouped, who reports to whom, and where
decisions are made)
 Leading
 Working with and through people to accomplish goals. (
dealing in effective manner) hired, trained and motivated
 Controlling
 Monitoring, comparing, and correcting work.( Evaluations
mechanism) 1–11
Exhibit 1–3 Management Functions

1–12
The Management Process
• The manager’s primary responsibility is to carry
out the management process.
• Figure 1.2 will illustrate the basic definitions and
interrelationships of the basic managerial
functions:

1 - 13
Figure 1.2: The Managerial Process

1 - 14
Management in Organizations

1 - 15
Basic Managerial Roles and Skills
Regardless of level or
area within an
organization, all
managers must play
certain roles and exhibit
certain skills in order to
be successful, such as:
 Do certain things.
 Meet certain needs.
 Have certain
responsibilities.

1 - 16
What Do Managers Do? (cont’d)
• Management Roles
Approach (Mintzberg)
 Interpersonal roles
 Figurehead, leader, liaison
 Informational roles
 Monitor, disseminator,
spokesperson
 Decisional roles
 Disturbance handler,
Entrepreneur, resource
allocator, negotiator

1–17
1 - 18
What Managers Actually Do (Mintzberg)
• Interaction
 with others
 with the organization
 with the external context
of the organization
• Reflection
 thoughtful thinking
• Action
 practical doing

1–19
What Do Managers Do? (cont’d)
• Skills Approach
 Technical skills
 Knowledge and proficiency in a specific field(Job specific
knowledge and techniques needed to perform work tasks)
 Human skills
 The ability to work well with other people ( individually and
group and for all managers)
 Conceptual skills
 The ability to think and conceptualize about abstract and
complex situations concerning the organization

1–20
Exhibit 1–5 Skills Needed at Different Management Levels

1–21
 Exhibit 1–6 Conceptual Skills

• Using information to solve business problems

• Identifying of opportunities for innovation
• Recognizing problem areas and implementing
solutions
• Selecting critical information from masses of
data
• Understanding of business uses of technology
• Understanding of organization’s business model

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
1–22
 Exhibit 1–6 Communication Skills

• Ability to transform ideas into words and actions

• Credibility among colleagues, peers, and
subordinates
• Listening and asking questions
• Presentation skills; spoken format
• Presentation skills; written and/or graphic
formats

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
1–23
 Exhibit 1–6 Effectiveness Skills

• Contributing to corporate mission/departmental

objectives
• Customer focus
• Multitasking: working at multiple tasks in parallel
• Negotiating skills
• Project management
• Reviewing operations and implementing
improvements

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
1–24
 Exhibit 1–6 Effectiveness Skills (cont’d)

• Setting and maintaining performance standards

internally and externally
• Setting priorities for attention and activity
• Time management

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
1–25
 Exhibit 1–6 Interpersonal Skills (cont’d)

• Coaching and mentoring skills

• Diversity skills: working with diverse people and
cultures
• Networking within the organization
• Networking outside the organization
• Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
1–26
How The Manager’s Job Is Changing
• The Increasing Importance of Customers
 Customers: the reason that organizations exist
 Managing customer relationships is the responsibility of all
managers and employees.
 Consistent high quality customer service is essential for
survival.
• Innovation
 Doing things differently, exploring new territory, and
taking risks
 Managers should encourage employees to be aware of and
act on opportunities for innovation.

1–27
Exhibit 1–8
Changes Impacting
the Manager’s Job

1–28
What Is An Organization?
• An Organization Defined
 A deliberate arrangement of people to accomplish
some specific purpose (that individuals independently
could not accomplish alone).
• Common Characteristics of Organizations
 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure

1–29
Exhibit 1–9 Characteristics of Organizations

1–30
1 - 31
Exhibit 1–10 The Changing Organization

1–32
Why Study Management?
• The Value of Studying Management
 The universality of management
 Good management is needed in all organizations.
 The reality of work
 Employees either manage or are managed.
 Rewards and challenges of being a manager
 Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
 Successful managers receive significant monetary rewards
for their efforts.

1–33
Exhibit 1–11 Universal Need for Management

1–34
Exhibit 1–12 Rewards and Challenges of Being A Manager

1–35
 Terms to Know
• manager • management roles
• first-line managers • interpersonal roles
• middle managers • informational roles
• top managers • decisional roles
• management • technical skills
• efficiency • human skills
• effectiveness • conceptual skills
• planning • organization
• organizing • universality of
• leading management
• controlling

1–36