Foundation of Management &

Organizations (Chapter 1)
Chapter 1

Chapter Objectives

Understanding why managers are important to

organizations.
Recognizing managers and identifying where they work.
Describing the functions, roles and skills of managers.
Describing the factors that are reshaping and redefining
the manager`s job.

Old/Traditional idea of a Manager

Organizational members who told others what to
do and how to do it!
It was very easy to differentiate managers from
non-managerial employees.

New/Changed idea of a Manager

Someone who coordinates and oversees the work of

other people so organizational goals can be
accomplished.
The changing nature of work has blurred the
distinction between managers & non-managerial
employees.
Many traditional non-managerial jobs now include
managerial activities.

Why are managers important?

A managers job is not about personal achievementit`s about helping others to do their work.
1. Organizations need their managerial skills and abilities
more than ever in uncertain, complex and chaotic times.
2. Managers are critical to getting things done. They are
responsible for creating and coordinating the workplace
environment and work systems so that others could
perform those tasks.
3. Managerial ability is important in creating organizational
value.
4. And many more as managers can and do have an impactpositive or negative.

Levels of Management(Exhibit 1-1)

Structured organization shows managers in a pyramid as

more employees are at lower levels than at upper
organizational level.
Top
Managers
Middle
Managers
First Line
Managers
Non-managerial
Employees

Levels of Management(Cont.)

Lowest level of management, first-line managers

manage the work of non-managerial employees who
typically are involved with producing the organization`s
products or servicing the customers.
Example- Supervisors, shift managers, district managers,
department managers or office managers.
Middle managers manage the work of first-line
managers and can be found between the lowest and top
levels of the organization.
Example- Regional managers, project leader, store
manager or division manager.

Levels of Management(Cont.)

Upper levels of the organizations are the top managers,

who are responsible for making organization-wide
decisions and establishing the plans and goals that affect
the entire organization.
Example- Executive vice-president, president, managing
director, chief operating officer or chief executive officer.
Some organizations are more loosely configured
by ever-changing teams of employees who move
from one project to another as work demands
arise.

Characteristics of Organizations (Exhibit

1-2)

Organization: A deliberate arrangement of people to

accomplish some specific purpose.
All organizations have three common characteristicsDistinct
Purpose

Deliberate
Structure

People

Characteristics of Organizations (Cont.)

Distinct Purpose is typically expressed through goals

the organizations hopes to accomplish.

Each Organization is composed of People.

All organizations develop a Deliberate Structure

within which the members do their work.

Management
Management involves coordinating and overseeing the
work activities of others so their activities are completed
efficiently and effectively.
Efficiency: Refers to getting the most output from the
least amount of resources and want to use those
resources efficiently. It is often referred to as doing
things right.
It is not enough just to be efficient.
Effectiveness: Doing the right things that is, doing those
work activities that will result in achieving goals.
Efficiency is concerned with the means of getting
things done, effectiveness is concerned with the
ends or attainment of organizational goals.

Efficiency and Effectiveness in

Management (Exhibit 1-3)
Efficiency (Means)

Effectiveness (Ends)

RESOURCE
USAGE

GOAL ATTAINMENT

Low Waste

High Attainment

Management Strives for:

Low Resource Waste(High Efficiency)
High Goal Attainment (High Effectiveness)
In successful organizations, high efficiency and high effectiveness
typically go hand in hand.

Four Functions of Management(1-4)

For achieving the organization`s stated purposes, managers

perform certain activities or functions as they efficiently and
effectively coordinate the work of others.
Planning: management functions that involves setting goals,
establishing strategies for achieving those goals, and
developing plans to integrate and coordinate activities.
Organizing: Management function that involves arranging
and structuring work to accomplish the organization`s goals.
Leading: Management function that involves working with
and through people to accomplish organizational goals.
Controlling: Management function that involves monitoring,
comparing and correcting work performance.

Managerial Roles
Managerial Roles refers to specific actions or
behaviours expected of and exhibited by a manager.
According to Henry Mintzberg -what managers do can be
best described by looking at the managerial roles they
engage in at work.
Interpersonal Roles: involve people(subordinates and
people outside the organization) and other ceremonial
and symbolic duties.
1. Figurehead
2. Leader
3. Liaison

Managerial Roles (Cont.)

Informational Roles: involve collecting, receiving and
disseminating information
1. Monitor
2. Disseminator
3. Spokesperson
Decisional Roles: entail making decisions or choices.
1. Entrepreneur
2. Disturbance Handler
3. Resource Allocator
4. Negotiator.

Management Skills Needed at different

Managerial Levels (Exhibit1-6)

Robert L Katz proposed that managers need three critical

skills for managing an organization.

Management Skills Needed at different

Managerial Levels (Cont.)

Technical Skills: Job-specific knowledge and techniques

needed to proficiently perform work tasks.

Human Skills: The ability to work well with other

people individually and in a group.

Conceptual Skills: The ability to think and to

conceptualize about abstract and complex situation.

Factors That Are Reshaping And

Redefining The Manager`s Job

The changes in the business world are affecting the way

managers perform their managerial functions. Four of the
numerous changes are-

1. Importance of CUSTOMERS to the manager`s job

2. Importance of SOCIAL MEDIA to the manager`s job
3. Importance of INNOVATION to the manager`s job
4. Importance of SUSTAINABILITY to the manager`s
job