Chapter 1

Introduction to management
process and skills
 Learning objective
• Understanding the basic concept of
organization
• Understanding the definition of
management and the functions of
management
• Differentiate the roles of management at
various levels
• Differentiate between efficiency and
effectiveness
 Organization
Organization
- Two or more people who work together in a
structured way to achieve a specific goal or sets
of goal

Common characteristic of an organization

- Have a distinct purposes ( goal)
- Compose of people
- Have a deliberate structure
 Changing organization
Traditional organization New organization
-stable - Dynamic
-inflexible - Flexible
- Job focused - Skill focused
- Work is define by job - Define in term of task to
positions be done
- Individual oriented - Team oriented
- Permanent job - Temporary job
- Command oriented - Involvement oriented
- Managers always make - Employees participate in
decision decision making
- Rule oriented - Customer oriented
 Role of organizations
Environment Organization Environment
provider transform uses

Input Transformation
(resources) process Output

HR, money, Transform

material, resources to Products and / or
technology, product services
information
 Why study management
• The value of studying management
– the universality of management
• good management is needed in all organization
– the reality of work
• employees either manage or are managed
– rewards and challenges of being a
manager
• management offers challenging, exiting and
creative opportunities for meaningful and fulfilling
work
• Successful managers receive significant monetary
rewards for their efforts
 Universal Need for Management
All sizes of organization
Small Large

Management Is
All organizational areas All types of
Needed in … organization
Manufacturing – marketing-
Human resource-accounting- Profit Non Profit
information system-etc.

all organization
level

bottom top
 Management

• The process of planning, organizing,

leading and controlling the work of
organization members and of using
available resources to reach stated
organizational goals. (stoner et al.)
• The process by which a corporative group
directs actions of others toward common
goals ( Massie & Douglas)

• The process of working with and through

others to effectively achieve organizational
objectives by efficiently using limited
resources in a changing environment
(Kreitner)
• the coordination of all resources through
the processes of planning, organizing,
directing and controlling in order to attain
stated objective (Sisk)

• establishing an effective environment for

people operating in formal organizational
groups (koontz and O’Donnell)
 Who are managers

• someone who work with and through other

people by coordinating and integrating
their work activities in order to accomplish
organizational goals.
 Managerial Levels

determine objectives, policy and strategies

top
manager
long term decision

planning and decision making based

middle manager on upper management

direct and support non-management

first line manager short term decision

perform a variety of jobs

non-managerial employees
 Classifying managers
First line manager
• First or lowest level of managers in the
hierarchy
• responsible for the work of operating
employees only
• do not supervise others managers
• often called supervisor
 middle manager
• managers in the mid ranges of the
organizational hierarchy
• responsible for other managers and
sometimes operating employees
• report to more senior managers
 top managers
• responsible for the overall management of
the organization
• established operating policies
• guide the organization’s interaction with
the environment
• small group – often called executive
functional and general manager
functional manager
- responsible for just one organizational activity or
functional area
- e.g.: finance, HR, Marketing
general manager
- oversees a complex unit
- e.g. : company, subsidiary or an independent
operating division
- responsible for all functional activities of the unit
 Managerial Concern
1. Efficiency
- the ability to minimize the use of resources in
achieving organizational objectives
- “doing thing right”
- an input output concept – efficient manager is
the one who achieve outputs or results that
measures up to the inputs (labour, materials,
time) use to achieve them
- getting the most output for the least input
 2. effectiveness
• the ability to determine appropriate
objectives
• “doing the right thing”
• involves choosing the right goal
• key to organizations success
• attaining organizational goals
 managerial effectiveness and
efficiency
•Goal not met •Goals achieved
efficient
•Resources well •Resources well
utilize utilize

utilization
of resources • Goals not achieved • Goals achieved
• Resources not well • Resources not well
not efficient utilize utilize

effective
not effective

achieving goals
effectiveness and efficiency in
management
efficiency (means) effectiveness (ends)

Goal
resources usage attainment

low waste
high attainment

management strives for low resource waste high efficiency)

and high goal attainment (high effectiveness)