Lecture 01

Introduction to
Management
 Organizations
• Organization
– A systematic arrangement of people
brought together to accomplish some
specific purpose; applies to all
organizations—for-profit as well as not-for-
profit organizations.
– Where managers work (manage)
• Common characteristics
– Goals
– Structure
– People 1–2
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Common Characteristics of Organizations

EXHIBIT
1.1
1–3
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 People Differences
• Nonmanagerial employees
– People who work directly on a job or task and
have no responsibility for overseeing the work of
others
• Managers
– Individuals in an organization who direct the
activities of others

1–4
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 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.
Universal Need for Management
 What is Management?
• A set of activities of planning and decision
making, organizing, leading, and controlling
directed at an organization’s resources
(human, financial, physical, and information)
with the aim of achieving organizational
goals in an efficient and effective manner.

1–7
 Management Defined
• Management
– The process of getting things done,
effectively and efficiently, through and
with other people
– Efficiency
• “Doing things right”
• Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks
to minimize resource costs
– Effectiveness
• “Doing the right things”
• Means doing the right things; goal attainment 1–8
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Efficiency and Effectiveness

EXHIBIT
1.3
1–9
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The Basic Purpose of
Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
And

EFFECTIVELY
Making the right decisions and
successfully implementing them

1–10
Effectiveness and Efficiency in Management
Management Functions
Figure : Management
in Organizations

1–13
 Management
Process
Activities

Management process:
planning, organizing,
leading, and controlling EXHIBIT
1.4
1–14
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 Management Process /
Four Management Functions
• Planning
– Includes defining goals, establishing strategy, and developing
plans to coordinate activities
– Define the organization’s purpose and ways to achieve it.

• Organizing
– Includes determining what tasks to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom, and
where decisions are to be made.
– Arranging and structuring work to
accomplish organizational goals.

1–15
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 Management Process
• Leading
– Includes motivating employees, directing the activities of
others, selecting the most effective communication channel,
and resolving conflicts
– Directing the work activities of others.

• Controlling
– The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
– Monitoring, Comparing and
correcting work performances.

1–16
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 Distribution of Time per Activity by
Organizational Level

Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, EXHIBIT

“The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.
1.6
1–17
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 Figure : The
Management Process

1–18
 What is a Manager?
• Someone whose primary responsibility
is to carry out the management
process.
• Someone who plans and makes
decisions, organizes, leads, and
controls human, financial, physical, and
information resources.

1–19
 The Manager’s Job
• Plan:
– A manager cannot operate effectively unless he or
she has long range plans.
• Organize
– When there is more than one employee needed to
carry out a plan, then organization is needed.
• Control
– Develop a method to know how well employees
are performing to determine what has been and
what still must be done.

1–20
 The Management Process
• Planning and Decision Making:
Determining Courses of Action
• Organizing:
Coordinating Activities and Resources
• Leading:
Motivating and Managing People
• Controlling:
Monitoring and Evaluating Activities

1–21
 Kinds of Managers by Level
• Top Managers
– are the small group of executives who manage the
overall organization. They create the
organization’s goals, overall strategy, and
operating policies.
• Middle Managers
– are primarily responsible for implementing the
policies and plans of top managers. They also
supervise and coordinate the activities of lower
level managers.
• First-Line Managers
– supervise and coordinate the activities of
operating employees.
1–22
Managerial Levels
 Kinds of Managers by Area
• Marketing Managers
– work in areas related to getting consumers and
clients to buy the organization’s products or
services—new product development, promotion,
and distribution.
• Financial Managers
– deal primarily with an organization’s financial
resources—accounting, cash management, and
investments.
• Operations Managers
– are involved with systems that create products and
services—production control, inventory, quality
control, plant layout, site selection.
1–24
 Kinds of Managers
by Area (cont’d)
• Human Resource Managers
– are involved in human resource activities.
• Administrative Managers
– are generalists familiar with all functional areas of
management and are not associated with any
particular management specialty.
• Other Kinds of Managers
– hold specialized managerial positions (e.g., public
relations managers) directly related to the needs
of the organization.

1–25
Figure : Kinds of Managers by
Level and Area

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.
 Changes
Impacting
the Manager’s
Job
Rewards and Challenges of Being A Manager
 Management: Science or Art?
• The Science of Management
– Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
– Requires the use of technical, diagnostic, and
decision-making skills and techniques to solve
problems.
• Art of Management
– Making decisions and solving problems using a
blend of intuition, experience, instinct, and
personal insights.
– Using conceptual, communication, interpersonal,
and time-management skills to accomplish the
tasks associated with managerial activities.
1–30
 Key Terms
• organization • interpersonal roles
• management • informational roles
• effective • decisional roles
• efficient • technical skills
• manager • interpersonal skills
• decision making • conceptual skills
• organizing • diagnostic skills
• leading • communication skills
• controlling • decision-making skills
• levels of management • time-management skills
• areas of management

1–31
Thanks For your attention