Principles of Management

Dr. Karim Kobeissi

Islamic University of Lebanon
- 2013

Chapte
r

Managem
ent and
Managers

What Is Management?
Management is the

process of getting things done

efficiently and effectively, with and through people.

Doing the job efficiently means doing things right so

that the organizations resourcesits people, money, and

equipmentare used to their maximum.
Getting things done effectively means doing the right

things, that is, tasks that help an organization reach its

goals.

The difference
betweenefficientandeffective
The

difference

betweenefficientandeffectiveis

thatefficiencymeans performing the task with minimal cost,

whereaseffectivenessrefers to how useful the task it is.
For example, if a company is not doing well and they decide
to train their workforce on a new technology. The training
goes really well - they train all their employees in record time
and tests show they have absorbed the training well. But
overall

productivity

doesn't

improve.

In

this

case

company's strategy wasefficientbut noteffective.

the

How Effectiveness & Efficiency Relate

to Productivity?
Productivity is doing the right things (effectiveness) in
the right way (efficiency).
Once you ensure employees are being effective and
efficient, you will see a rise in productivity.
You should start measuring this productivity on a daily,
weekly and monthly basis. You can use metrics such as
number

of

units

satisfaction surveys.

produced,

sales

or

customer-

How Are Managers

Different from
Nonmanagerial
Managers
Employees?
-

A manager is someone who coordinates and

oversees the work of other people so that
organizational goals can be accomplished. However,
keep in mind that managers may have additional
work duties not related to coordinating the work of
others.

Nonmanagerial Employees
People who work directly on a job or task and have
no responsibility for overseeing the work of others.
Examples: Associates and Team Members

Where Do Managers Work?

Organization
A deliberate arrangement of people
brought together to accomplish a
specific purpose

Common Characteristics of
Organizations
Goals
People
Structure

What Titles Do Managers

Have?
Top Managers
Make decisions about the direction of the
organization
Examples: President, Chief Executive
Officer, Vice-President

Middle Managers
Manage the activities of other managers
Examples: District Manager, Division
Manager

First-line Managers
Direct nonmanagerial employees
Examples: Supervisor, Team Leader

Copyright 2013 Pearson

Education, Inc. publishing as
Prentice Hall

Copyright 2013 Pearson

Education, Inc. publishing as
Prentice Hall

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What Do Managers Do: Fayols

Approach
In

the

approach
the

functions

proposed

French

by

industrialist

Henri Fayol, all managers

perform

four

management activities or
functions.

Four Management
Functions
Planning
Defining the organizational purpose and
ways to achieve it.

Organizing
Arranging and structuring work to
accomplish organizational goals

Leading
Directing the work activities of others.

Controlling
Monitoring, comparing, and correcting work
performance.

What Do Managers Do:

Mintzbergs Approach
Although the functions approach represents the most
useful way to describe the managers job, Mintzbergs
roles give additional insight into managers work. Some of
the 10 roles do not fall clearly into one of the 4 functions,
since all managers do some work that is not purely
managerial (a number of varied, un-patterned, and shortduration activities). As a result, Mintzberg defined
managers job by categorizing ten roles that managers
play, organized into the following three general categories:
1. Interpersonal Roles
2. Informational Roles
3. Decisional Roles

Mintzbergs Managerial
Roles
1. Interpersonal Roles involving subordinates
and people outside the organization in the roles
of figurehead, leader, and liaison.
2. Informational Roles that involves collecting,
receiving, and disseminating information in the
roles
of
monitor,
disseminator,
and
spokesperson.
3. Decisional Roles that entails making choices
in the roles of entrepreneur, disturbance
handler, resource allocator, and negotiator.

What Are Management

Roles?

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Education, Inc. publishing as
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Prentice Hall

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Education, Inc. publishing as
Prentice Hall

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What Do Managers Do : Katzs

Approach
Still another way of considering what managers do is to look at the
skills or competencies they need to successfully achieve their
goals. Robert Katz has identified three essential management
skills:

Technical Skills:
The ability to apply specialized knowledge or expertise.

Human Skills:
The ability to work with, understand, and motivate other people,
both
individually and in groups.

Conceptual Skills:
The mental ability to analyze and diagnose complex situations.

Is the Managers Job

Universal?
Level in the Organization
Profit vs. Nonprofit

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Why Study Management?

We all benefit from efficiently and
effectively run businesses.
Well-managed organizations
prosper even in challenging
economic times.
After graduation, most students
become managers or are managed.

What Factors Are Reshaping and

Redefining Management?
Today, Managers everywhere face changing circumstances
such as:

- Changing workplaces (managing workers in both

domestic and foreign workplaces).
- Global economic uncertainties*.
- Changing technologies.
- Ethical and trust issues.
As a result, how they manage is also changing and
affecting the way they plan, organize, lead, and
control.

What Factors Are Reshaping and

Redefining Management?
Two important changes
to note are:
1- The increasing
importance of
customers.
2- Innovation.

Why Are Customers

Important?
Without customers, most organizations
would cease to exist.
Employee attitudes and behaviors play a
big part in customer satisfaction.
Managers must create a customerresponsive environment where employees
are friendly, knowledgeable, and sensitive
to customer needs.

Innovation
Innovation
can
be
explained as the use of
new ideas that lead to
the making of any new
products, services or
processes.

Innovation
means
doing things differently,
exploring new territory,
and taking risks.

The different types of

innovation that you are
likely to run across include
product, process, supply
chain and marketing. The
latter is the creation of
new methods to market
your product.
Innovation
isnt
only
important
for
high
technology companies; it
is essential in all types of
organizations.

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Innovation in Goods

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Innovation in Services

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Innovation in Technology

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Innovation in Processes

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Innovation in Marketing

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Why Innovation is Important

Reinforce
Your
Brand
organizational
sustainability*
maintenance.

Innovations
such
as

gives
brand

Responding to Competition and Trends Innovation

can help you to see what exists now in opportunities or
which ones will likely pop up in the near future.
Businesses which are successful dont only respond to
the current needs of their customers, but usually predict
the future trends and come up with an idea, service or
product that can meet the future demand quickly and
effectively. In this way you can stay ahead of your
competition as trends, technology or markets shift.

Why Innovation is Important

(con)
Making the Most of What You Have Already It is not all
about creating a new product or service which you can sell,
but you also need to focus on your existing business
procedures to improve your efficiency, attract some new
customers, increase your profits and cut down on the amount
of your waste.
Having a Unique Selling Point Generally, consumers will
see innovation as something which adds value to products or
a company. When this is used the right way, it can give you
an advantage commercially, especially in a market that is
saturated or shifting rapidly. It can get your more positive
exposure in the media and your customers will be more
willing to pay the extra money for something that is welldesigned and new, rather than picking the less exciting and
cheaper rival