TOPICS:
1. MANAGEMENT
2. ETHICS
REFERENCE:
Bateman, T.S. & Snell, S.A., Management:
Leading & Collaborating in a Competitive
World, 8th edition, McGraw-Hill Irwin, New
York, 2009
Lecturer:
Assoc. Prof. Md Ali Abd. Razak
Management Key Concepts
Organizations: People working together and coordinating
their actions to achieve specific goals.
Goal: A desired future condition that the organization seeks
to achieve.
Management: The process of using organizational
resources to achieve the organization’s goals by…
Planning, Organizing, Leading and Controlling.
Additional Key Concepts
Resources are organizational assets and include:
• People
• Machinery
• Raw materials
• Information, skills
• Financial capital
Managers are the people responsible for supervising the use
of an organization’s resources to meet its goals.
Achieving High Performance
Organizations must provide a good or service desired by its
customers.
• David Johnson of Campbell Soup manages his firm to
provide quality food products.
• Physicians, nurses and health care administrators seek
to provide healing from sickness.
• McDonald’s restaurants provide burgers, fries and
shakes that people want to buy.
Organizational Performance
Measures how efficiently and effectively managers use
resources to satisfy customers and achieve goals.
• Efficiency: A measure of how well resources ar eused
to achieve a goal.
o Usually, managers must try to minimize the input
of resources to attain the same goal.
• Effectiveness: A measure of the appropriateness of the
goals chosen (are these the right goals?), and the
degree to which they are achieved.
o Organizationa are more effective when managers
choose the correct goals and then achieve them.
Managerial Functions
Henri Fayol was the first to describe the four managerial
functions when he was the CEO of a large mining company
in the later 1800s.
Fayol noted managers at all levels, operating in a for-profit
or not-for-profit organization, must perform each of the
following functions of:
Planning
Organizing
Leading
Controlling
Four Functions of Management
Planning
Choose
Goals
Controlling Organizing
Monitor & Working
measure together
Leading
Coordinate
Planning
Planning is the process used by managers to identify and
select appropriate goals and courses of action for an
organization.
3 steps to good planning:
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective
and effeicient the organization is and determines the
strategy of the oganization.
Organizing
In organizing, managers create the structure of working
relationships between organizational members that best
allows them to work together and achieve goals.
Managers will group people into departments according to
the tasks performed.
• Managers will also lay out lines of authority and
responsibility ofr members.
An organizational structure is the outcome of organizing.
This structure coordinates and motivates employess so that
they work together to achieve goals.
Leading
In leading, managers determine direction, state a clear
vision for employees to follow, and help employees
understand the role they play in attaining goals.
Leadership involves a manager using power, influence,
visioin, persuasion and communication skills.
The outcome of the leading function is a high level of
motivation and commitement from employees to the
organization.
Controlling
In controlling, managers evaluate how well the
organization is achieving its goals and takes corrective
action to improve performance.
Managers will monitor individuals, departments, and the
organization to determine if desired performance has been
reached.
• Managers will also take action to increase
performance as required.
The outcome of the controlling function is the accurate
measurement of performance and regulation of efficiency
and effectiveness.
Management Levels
Organizations often have 3 levels of managers:
First-line Managers: Responsible for day-to-day
operation. They supervise the people performing th
eactivities required to make the good or service.
Middle Managers: Supervise first-line managers.
They are also responsible to find the best way to use
departmental resources to achieve goals.
Top Managers: Responsible for the performance of
all departments and have cross-departmental
responsibility. They establish organizational goals and
monitor middle managers.
Managerial Skills
There are three skill sets that managers need to
perform effectively.
1. Conceptual skills: the ability to analyze and diagnose
a situation and find cause and effect.
2. Human skills: the ability to understand, alter, lead, and
control people’s behavior.
3. Technical skills: the job-specific knowledge required
to perform a task. Common examples include
marketing, accounting, and manufacturing.
All three skills are enhanced through formal training,
reading, and practice.
Management Challenges
Increasing number of global organizations
Building competitive advantage through superior
efficiency, quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Managing an increasingly diverse work force.
Using new technologies.
