Dr.
Mathew John
Chapter 1
Managing and Managers
Principles
• A fundamental truth that serves as the
foundation for a system of belief or behaviour
or for a chain of reasoning.
Principles of Management
• The Principles of
Management are the
essential, underlying
factors that form the
foundations of
successful
management.
Organizations
• Two or more people who work together in a
structured way to achieve a specific goal or set
of goals.
Goals
• The purpose that an organization strives to
achieve.
Management
• The process of dealing with or controlling
things or people.
• Planning, Organizing, Leading, and Controlling
Managers
• People responsible for directing the efforts
aimed at helping organizations achieve their
goals.
Managerial Performance
The measure of how efficient and effective a
manager is – how well he or she determines
and achieves appropriate objectives.
Organizational Performance
• The measure of how efficient and effective an
organization is – how well it achieves
appropriate objectives.
– Efficiency: A measure of how well resources are used to
achieve a goal.
• 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.
• Organizations are more effective when managers choose the
correct goals and then achieve them.
The Management Process
• Planning, Organizing, Leading, and Controlling
• Henri Fayol was the first to describe the four
managerial functions when he was the CEO of a large
mining company in the later 1800’s.
• Fayol noted managers at all levels, operating in a for
profit or not for profit organization, must perform
each of the functions of:
Planning,
organizing,
Leading (Directing),
Controlling.
Four Functions of Management
Planning
Choose Goals
Controlling Organizing
Monitor & measure Working 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 efficient
the organization is and determines the strategy of the
organization.
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
for members.
• An organizational structure is the outcome of organizing.
This structure coordinates and motivates employees so
that they work together to achieve goals.
Leading (Directing)
• 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, vision, persuasion, and
communication skills.
• The outcome of the leading function is a high
level of motivation and commitment 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.
Types of Managers
Management Levels
• Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They
supervise the people performing the activities 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.
• Functional Manager
• General Manager
Three Levels of Management
Top
Managers
Middle
Managers
First-line Managers
Non-management
Managerial Roles
• Described by Mintzberg.
– A role is a set of specific tasks a person performs
because of the position they hold.
• Roles are directed inside as well as outside the
organization.
• There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
Interpersonal Roles
• Roles managers assume to
coordinate and interact with
employees and provide direction to
the organization.
– Figurehead role: symbolizes the
organization and what it is trying to
achieve.
– Leader role: train, counsel, mentor and
encourage high employee performance.
– Liaison role: link and coordinate people
inside and outside the organization to
help achieve goals.
Informational Roles
• Associated with the tasks
needed to obtain and
transmit information for
management of the
organization.
– Monitor role: analyzes
information from both the
internal and external
environment.
– Disseminator role: manager
transmits information to
influence attitudes and
behavior of employees.
– Spokesperson role: use of
information to positively
influence the way people in
and out of the organization
respond to it.
Decisional Roles
• Associated with the methods
managers use to plan strategy and
utilize resources to achieve goals.
– Entrepreneur role: deciding upon new
projects or programs to initiate and invest.
– Disturbance handler role: assume
responsibility for handling an unexpected
event or crisis.
– Resource allocator role: assign resources
between functions and divisions, set
budgets of lower managers.
– Negotiator role: seeks to negotiate
solutions between other managers, unions,
customers, or shareholders.
Management Challenges
• Need for Vision
• Need for Ethics
• Need for responsiveness to cultural diversity.
• 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.
Lesson from some stories
A sales rep, an administration clerk, and the manager are
walking to lunch when they find an antique oil lamp.
They rub it and a Genie comes out. The Genie says, 'I'll
give each of you just one wish.‘ 'Me first! Me first!' says
the admin clerk. 'I want to be in the Bahamas , driving a
speedboat, without a care in the world.‘ Puff! She's gone.
'Me next! Me next!' says the sales rep. 'I want to be in
Hawaii , relaxing on the beach with my personal
masseuse, an endless supply of Pina Coladas and the
love of my life.‘ Puff! He's gone. 'OK, you're up,' the
Genie says to the manager. The manager says, 'I want
those two back in the office after lunch.‘
Moral of the story
• Always let your boss have the first say
• An eagle was sitting on a tree resting, doing
nothing. A small rabbit saw the eagle and
asked him, 'Can I also sit like you and do
nothing?‘ The eagle answered: 'Sure, why not.‘
So, the rabbit sat on the ground below the
eagle and rested. All of a sudden, a fox
appeared, jumped on the rabbit and ate it.
Moral of the story
• To be sitting and doing nothing, you must be
sitting very, very high up.
• https://www.youtube.com/watch?v=EdKjmV5
JOPo
• https://www.youtube.com/watch?v=Vsg_Abw
uG-g
