Introduction to Management

Chapter 1
 LEARNING OBJECTIVES

When you have finished studying this chapter, you

should be able to:
1. Define what management is.
2. Identify and explain the basic managerial functions.
3. Understand the roles that managers play.
4. Identify and explain skills needed at different levels of
management
5. Discuss the scope of responsibilities of functional and
general managers.
6. Describe the three levels of managers in terms of the
skills they need and the activities in which they are
involved.
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What is Management?
🞂 The Classic Definition
🞂 The art of getting things done through people.
–Mary Parker Follett
🞂 A Broader Definition
🞂 The process of administering and coordinating resources
effectively, efficiently, and in an effort to achieve the goals of
the organization.

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Measuring managerial performance:
Effectiveness versus Efficiency
🞂 Effectiveness
🞂 Achieved when the organization pursues appropriate goals.
🞂 This means “doing the right things.”

🞂 The ability to choose the right goals

🞂 e.g. If the demand in the market for cars is form small,

compact & economical cars, but the manager chooses to
produce & manufacture big, luxury & expensive cars, the
manager is considered to be ineffective

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Measuring managerial performance:
Effectiveness versus Efficiency (cont’d)
Efficiency
○ Achieved by using the fewest inputs (e.g., people and money)
to generate a given output.
○ The ability to do the things right. An efficient manager is a
manager who can achieve outputs/ results as expected.
Managers who are able to utilize & minimize the cost of
resources such as staff, finance, equipment & raw material.
○ This means “doing things right.”

The end result of effective and efficient management is

organizational success.

CHAPTER 1: INTRODUCTION TO MANAGEMENT

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The Organization
🞂 An Organization
🞂 A group of individuals who work together toward common
goals.
🞂 What do all organizations have in common?
🞂 They are composed of people whose efforts must be
coordinated if the organization is to accomplish its goals.
🞂 Management structure – Identify the roles and responsibility
of the job to ensure every worker knows their job description
and responsibility. They also know whom they have to report to
and refer.

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Figure 1.1 The Management Process

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Planning,Organizing, Leading & Controlling
(POLC)
🞂 Planning
🞂 Setting goals and defining the actions necessary to achieve
those goals.
🞂 Organizing
🞂 The process of determining the tasks to be done, who will do
them, and how those tasks will be managed and coordinated.
🞂 Leading
🞂 The capacity to direct and motivate the members of work
groups toward the accomplishment of organizational goals.
🞂 Controlling
🞂 Monitoring the performance of the organization and its progress
in implementing strategic and operational plans.

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Managers
🞂 Managers are the people who plan, organize, lead, and
control the activities of the organization so that its goals
can be achieved.

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Figure 1.2 Mintzberg’s Managerial Roles

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Mintzberg’s Managerial Roles
🞂 Interpersonal Roles
🞂 The manager’s responsibility for managing relationships with
organizational members and other constituents:
🞂 Figurehead
◻ A department head performing ceremonial duties like greeting visitors,
signing legal documents.
🞂 Leader
◻ A person who is responsible for hiring, training & motivating subordinates
in the organization.
🞂 Liaison
◻ A person who perform & interacts with other people outside the
organization.

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Mintzberg’s Managerial Roles (cont’d)
🞂 Informational Roles
🞂 The manager’s responsibility for gathering and disseminating
information to the stakeholders of the organization:
🞂 Monitor
◻ Manager continuously seeks information that can be used to advantage.
🞂 Disseminator
◻ Information received internally or externally will be transmitted to the
subordinates.
🞂 Spokesperson
◻ Information will be transmitted to people outside the organization or unit.

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Mintzberg’s Managerial Roles (cont’d)
🞂 Decisional Roles
🞂 The manager’s responsibility for processing, analyze information,
take advantage of opportunities and reaching conclusions:
🞂 Entrepreneur
◻ Manager tries to improve the unit & initiate the changes.
🞂 Disturbance handler
◻ Manager is responsible for corrective actions when the organization faces
important, unexpected disturbances.
🞂 Resource allocator
◻ Manager is responsible in allocating the resources of the organization.
🞂 Negotiator
◻ Manager is responsible for representing the organization at major negotiations.

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Scope of Responsibility:
Functional and General Managers

A functional manager is A general manager is

responsible for a work group responsible for several
segmented by function. functional work groups.

Chief Executive
General Parts Inc.

VP of VP of
Production Finance

Plant Service Account Payroll

Manager Manager Manager Manager

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Types of Managers
🞂 Functional Manager
🞂 A manager who is responsible for managing a work unit that is
grouped based on the function served.
🞂 General Manager
🞂 A manager who is responsible for managing several different
departments that are responsible for different tasks.
🞂 First-line manager
🞂 The manager who supervises the operational employees.

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Figure 1.3 Managerial Levels

Establish objectives, policy &

strategy, make long-term decisions.
E.g.: CEO, President

Interpret top management directives

into operating plans, make
implementation decision. E.g.:
Marketing Manager, H.R. Manager

Direct & support work on

non-managerial personnel,
make short-term operating
decision. E.g.: Clerk

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Figure 1.4 Skills Needed at Different Levels of Management

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Management Skills
🞂 Technical Skills
🞂 The ability to utilize the knowledge of tools, techniques, and
procedures that are specific to a particular field.
🞂 Human Skills
🞂 The ability to work effectively with one’s own work group as
well as others within the organization. It includes the ability to
motivate, understand, lead & communicate, which a manager
needs throughout his work.
🞂 Conceptual Skills
🞂 The ability to process information about the internal/external
environment of the organization and determine its implications.

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 Tutorial Questions
1. Define what management is.
2. Identify and explain the basic managerial functions.
3. Explain the Mintzberg’s managerial roles.
4. With example, discuss the scope of responsibilities of
functional and general managers.
5. Describe the three levels of managers in terms of the
skills they need and the activities in which they are
involved.

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