5/8/2012

1

CHAPTER 1 (part 1): INTRODUCTION TO

MANAGEMENT

FUNDAMENTAL OF MANAGEMENT

(MGT162)

Definition Of Management The process of administering and coordinating resources

effectively, efficiently, and in an effort to achieve the goals of

the organization (Lewis)

The process of planning, organizing, leading & controlling

that encompasses human, material, financial & information

resources in an organizational environment(Holt)

The process of planning, organizing, leading & controlling

the efforts of an organization members & of using all other

organizational resources to achieve stated organizational

goals(Stoner)

Definition of Organization & Manager

Organization

A group of individuals who work together toward common goals

(Lewis)

The structure of relationships that exits when 2 or more people

mutually cooperates to pursue common objectives (Holt)

An organization is a social unit in which 2 or more people

interact to achieve a common goal or a set of goals (Stone)

Manager

An organizational member who is responsible for planning,

organizing, leading and controlling the activities of the

organization so that its goals are achieved (Lewis)

Why do we need an organization? 1. Accomplish objectives

o To help us to achieve our objectives

o E.g. You come to UiTM to study & obtain a diploma

2. Preserve knowledge

o Organization is also needed because it is a place where

knowledge / information is preserved.

o E.g. To know about our countrys history, we can go to

museum.

5/8/2012

2

Why do we need an organization? 3. Serve society

o Organization is also needed to serve society

o E.g. We can always go to hospitals or clinics if we are not

feeling well or if we have certain illnesses

4. Provide Careers

o Organization also provide us with career opportunities.

E.g. Some of us works in banks, others in some other

organizations. Those organizations provide individuals a

place to go for work & earn salary every month.

Planning

Organizing

Leading

Controlling

Communication GOALS

Measuring Managerial Performance Performance can be measured by looking at 2 criteria

1. Performance efficiency (doing right things)

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 materials.

2. Performance effectiveness (doing the right things)

The ability to choose the right goals

E.g. If the demand in the market for cars are small, compact & economical cars, but the manager chooses to produce & manufacture big, luxury & expensive cars, the manager is considered to be ineffective.

Performance effectiveness & Performance efficiency

as foundations for productivity &Managerial Success

Effective but not efficient. Some

resources are wasted.

Effective and efficient. Goals are

achieve & resources are well

utilized, area of high

productivity

Neither effective nor efficient,

goals are not achieved, resources

wasted in the process

Efficient but not effective. No

wasted resources , but goals not

achieved

Goa

ls A

ttai

nmen

t (a

chie

ve/

not)

-Eff

ecti

vene

ss

Resources Utilization (wasted/not)

-Efficiency

Low

High

Poor Good

A B

C D

5/8/2012

3

The Management Process Management is a process that contains several functions. It comprises of the

activities of Planning, Organizing, Leading & Controlling (POLC)

Includes defining goals, establishing strategy & developing plans to coordinate

activities Planning

Determine what tasks are to be done, who is to do them, how the task are to be grouped, who reports to whom & where decisions are to be made. Organizing

Includes motivating subordinates, directing others, selecting the most effective communication channels & resolving conflicts Leading

Monitoring activities to ensure that they are being accomplished as planned & correcting any significant deviations Controlling

LEADS

TO

ACHIEVING THE ORGANIZATIONS STATED PURPOSE

(GOALS/MISSIONS)

Managerial Levels There are 3 levels of management :

Top managers

Middle managers

First-line managers/ Lower

level manager

Non-managerial personnel

3 le

vels

of

man

agem

ent

Establish objective, 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.

Perform variety of task activities, using technical skills. E.g. driver.

Type of managers Manager

By their level in

the organization

By the range of

organization

activities they are

responsible Top Mangers

First-line Managers

Middle Managers

Functional Mangers

General Mangers

Responsible for a single area

of activity. E.g. Finance

Manager, Marketing Manager

Responsible for more complex units that

include many functional areas of activity. E.g.

Plant Manager

Managerial Skills There are 3 basic skills required by managers :

Technical skills (T)

Ability to use the procedures, techniques &

knowledge of a specialized

field.

E.g. accountant, a heart surgeon, & a civil

engineer has a special

knowledge relating to the

specialize field.

Human skills (H)

Is a skill that gives a manager the ability to work

effectively with other

people. It includes the ability

to motivate, understand,

lead & communicate, which

a manager needs throughout

his work.

Conceptual skills (C)

They are mental capabilities that help managers see the

whole enterprise as well as

the relationships that exist

among the various parts in

the organization. This skill

gives the manager the ability

to coordinate & integrate the

organizations interests and

activities.

5/8/2012

4

Relative Skills needed for effective performance at

different level of management

Top managers

Middle managers

First-line managers/ Lower

level manager

H

H

H

T

C

T C

T C

Managerial Roles According to Henry Mintzberg , managers perform ten (10)

different inter-related roles in the organization

1. Interpersonal roles

2. Informational roles

3. Decisional roles

Managerial Roles

Interpersonal roles Interpersonal roles (help manager in managing the

organization smoothly)

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.

Informational roles Informational roles (assists the manager in receiving &

communicating the information to make the right decision)

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.

5/8/2012

5

Decisional roles Decisional roles (assists managers in making decisions that

solve problem or analyze & take advantage of opportunities)

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.

END OF CHAPTER 1 PART 1

Write by : Nurfaizah Sahimi