FUNDAMENTALS OF MANAGEMENT

Essential Concepts and Application

Stephen P. Robbins
David A. DeCenzo
Sanghamitra Bhattacharyya
Madhushree Nanda Agarwal

AIM OF THE COURSE

Basic Principles of Management

Course

Master the Core Concepts and

Memorize the Basic Principles

Solid Foundation for future

management courses

Copyright 2005 Prentice Hall, Inc.

All rights reserved.

PART I:
Introduction
Managers
and
Management

1
CHAPTER 1

LEARNING OUTCOMES
1.

Describe the difference between managers and

operative employees.

2.

Explain what is meant by the term management.

3.

Differentiate between efficiency and

effectiveness.

4.

Describe the four primary processes of

management.

5.

Classify the three levels of managers and identify

the primary responsibility of each group.

LEARNING OUTCOMES
6.

Summarize the essential roles performed by

managers.

7.

Discuss whether the managers job is generic.

8.

Describe the four general skills necessary for

becoming a successful manager.

9.

Describe the value of studying management.

10.

Identify the relevance of popular humanities

and social science courses to management
practices.

Managers work in Organizations

What is an Organization?

ORGANIZATION

Systematic arrangement of people

brought together to achieve a specific
purpose
Q: Purpose of LSE as an organization?

THREE COMMON CHARACTERISTICS OF AN

ORGANIZATION
1.

Every organization has a goal or sets

of goals
E.g. one of LSEs goals: produce
future managers
Shaukat Khanam: To make
cancer cure accessible to
everyone, and affordable to the
poor

THREE COMMON CHARACTERISTICS OF AN

ORGANIZATION

2. How is the specific purpose achieved?

People make decisions to establish the
purpose and perform a variety of tasks
to make the goal a reality.

THREE COMMON CHARACTERISTICS OF AN

ORGANIZATION

Organizations develop a structure

that defines and limits the behavior of
its members

3.

E.g. Supervisory control

THEREFORE.
Organization refers to an entity that has
a distinct purpose, has people or
members and has a systematic
structure.

112

Copyright 2005 Prentice

Hall, Inc. All rights reserved.

COMMON CHARACTERISTICS OF ORGANIZATIONS

Exhibit 1.1

OPERATIVES

Not everyone in an organization is a

Manager

People who work directly on a task and

dont supervise

E.g. S2 in LSE

MANAGERS

Direct the activities of others

Classified as Top, Middle or First-line

managers.

E.g. Ms. Ghalia in S2. Oversees

operatives but also has some operative
duties.

FIRST-LINE MANAGERS

Usually called Supervisors

Also called team leaders, coaches or

unit coordinators

Ms. Ghalia

MIDDLE MANAGERS

Levels of Management between the first-line

managers and top management

Manage other managers and possibly some

operatives. E.g. Romana Noor

Translating goals of top management into specific

details for lower management. E.g. Top
management decides to increase enrollment.
Romana directs Ms. Ghalia and others in S2
regarding enrollment.

TOP MANAGERS

Making decisions about the direction of

the organization and establishing
policies that affect entire organization

E.g. Dr. Shahid decided to comply more

strictly with HEC rules.

118

Copyright 2005 Prentice

Hall, Inc. All rights reserved.

ORGANIZATIONAL LEVELS

Exhibit 1.2

What is Management?

MANAGEMENT

Refers to the process of getting things

done, effectively and efficiently,
through and with other people

Efficiency means doing the task correctly and

refers to the relationship between inputs and
outputs
Higher efficiency means more output for less
input
Managers deal with minimizing the cost of
resources: Money, equipment and people

Effectiveness means doing the right task i.e.goal

attainment

Its easier to be effective if one ignores efficiency

E.g.LSE hired PhDs only. Not efficient, but more

effective.

Good management attains both effectiveness ad

efficiency

123

Copyright 2005 Prentice

Hall, Inc. All rights reserved.

EFFICIENCY AND EFFECTIVENESS

Exhibit 1.3

MANAGEMENT PROCESSES

Condensed to basic four:

Planning
Organizing
Leading
Controlling
If you dont much care where you want to
get to, then it doesnt matter which way
you go

125

Copyright 2005 Prentice

Hall, Inc. All rights reserved.

MANAGEME
NT PROCESS
ACTIVITIES

Management
process:
planning, organizing,
leading, and
controlling
Exhibit 1.4

PLANNING

Defining an organizations goals,

establishing an overall strategy to
achieve those goals, and developing a
comprehensive hierarchy of plans to
integrate and coordinate activities.

E.g. XYZ company wants to be the

market leader.

ORGANIZING

What tasks are to be done, who is to do

them, how the tasks are to be grouped,
who reports to whom, and where
decisions are to be made.

E.g. Dividing areas into sales territories,

assigning them to salespeople,
designing an incentive system etc

LEADING

Includes motivating employees,

directing the activities of others,
selecting the most effective
communication channel, and resolving
conflicts.

E.g. The person handling a sales team

CONTROLLING

Actual performance must be met with

previously set goals.

E.g. Are sales targets being achieved?