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
