Part 1: Introduction

INTRODUCTION
 LEARNING OUTCOMES
After reading this chapter, You will be able
to:
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.

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 L E A R N I N G O U T C O M E S (cont’d)
After reading this chapter, you will be able
to:
6. Summarize the essential roles performed by
managers.
7. Describe the four general skills necessary for
becoming a successful manager.
8. Describe the value of studying management.
9. Identify the relevance of popular humanities and
social science courses to management practices.

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 Organizations
 Organization
 A systematic arrangement of people brought together to accomplish
some specific purpose (that individuals independently could not
accomplish alone); applies to all organizations—for-profit as well as
not-for-profit organizations.
 Where managers work (manage)

 Common characteristics
 Have a distinct purpose (Goal)
 Have a deliberate structure
 Composed of people

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 Common Characteristics of Organizations

EXHIBIT 1.1
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 People Differences
 Operatives / Non Managerial employees
 People who work directly on a job or task and have no
responsibility for overseeing the work of others

 Managers
 Individuals in an organization who direct the activities of
others

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 Organizational Levels

/ Operatives

EXHIBIT 1.2
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Identifying
 First-line managers
Managers
 Supervisors responsible for directing the day-to-day activities of operative employees.
 Managers who supervise and coordinate the activities of operating employees.

 Middle managers
 Individuals at levels of management between the first-line manager and top management.
 Largest group of managers in organizations who are primarily responsible for implementing
the policies and plans of top managers. They also supervise and coordinate the activities of
lower level managers.

 Top managers
 Individuals who are responsible for making decisions about the direction of the organization
and establishing policies that affect all organizational members.
 The relatively small group of executives who manage the overall organization. They create the
organization’s goals, overall strategy, and operating policies.

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 Organizational Resources
 HUMAN RESOURCES
 Managerial talent and labour

 FINANCIAL RESOURCES
 Capital investments to support ongoing and long-term operations

 PHYSICAL RESOURCES
 Raw materials; office and
production facilities,
and equipment

 INFORMATION
 Usable data, information linkages

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Examples of Resources Used by Organizations
ORGANIZATION HUMAN FINANCIAL PHYSICAL INFORMATION
RESOURCES RESOURCES RESOURCES RESOURCES

Shell Oil Drilling Profit Refineries Sales Forecast

Workers Shareholder’s Office Building OPEC updates
Corporate Investment
Executives
University of Faculty HEC Grant Computers Research Reports
Peshawar Secretarial Staff Students fee Campus Facilities Government
Alumni Vehicles Publications
contributions

City Government Police Officers Provincial Municipal Economic

Peshawar Municipal Government Building Forecast
employees Grant Vehicles Crime Statistics
Tax revenue Sanitation Health Updates
Equipment
24/7 Super Store Sales Men Profit Store Building Pricelist from
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Store Keeper Owner Shelves Suppliers
Cashier Investments Freezers Newspapers ads
 Management Defined
 Management
 A set of activities directed at an organization’s resources with the aim of
achieving organizational goals in an efficient and effective manner.
 The process of getting things done, effectively and efficiently, through
and with other people

 Efficiency
 “DOING THINGS RIGHT”
 Getting the most output for the least inputs
 Means doing the thing correctly; refers to the relationship between inputs and
outputs; seeks to minimize resource costs

 Effectiveness
 “DOING THE RIGHT THINGS”
 Attaining organizational goals

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 Means doing the right things; goal attainment
 EFFICIENTLY
Using resources wisely and
in a cost-effective way
And

EFFECTIVELY
Making the right decisions and
successfully implementing them

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 Effectiveness and Efficiency in Management

EXHIBIT 1.3
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Management Process Activities

Management
process:
1. Planning STAFFING
2. Organizing
3. Staffing
4. Leading and
5. Controlling

EXHIBIT 1.4
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Management Process
Planning
 Predetermining a course of action for accomplishing organizational
objectives.
 Includes defining goals, establishing strategy, and developing plans to
coordinate activities.

Organizing
 Arranging the relationships among work units for accomplishment of
objectives and the granting of responsibility and authority to obtain those
objectives.
 Includes determining what tasks 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

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Management Process
Staffing
 Selecting and training people for positions in the organization.

Leading (Directing)
 Creating an atmosphere that will assist and motivate people to
achieve desired end results.
 Includes motivating employees, directing the activities of others,
selecting the most effective communication channel, and resolving
conflicts

Controlling
 Establishing, measuring, and evaluating performance of activities
toward planned objectives.
 The process of monitoring performance, comparing it
with goals, and correcting any significant deviations.
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Kinds of Managers by Level and
Area
Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management
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 Mintzberg’s Managerial Roles

 INTERPERSONAL  DECISIONAL
 Figurehead  Entrepreneur
 Leader  Disturbance hander
 Liaison  Resource allocator
 Negotiator
 INFORMATIONAL
 Monitor
 Disseminator
 Spokesperson

EXHIBIT 1.5
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Ten Basic Managerial Roles

Category Role Sample Activities

Interpersonal Figurehead Attending ribbon-cutting ceremony for new plant

Leader Encouraging employees to improve productivity
Liaison Coordinating activities of two projects

Informational Monitor Scanning industry reports to stay abreast of

developments
Disseminator Sending memos outlining new organizational
initiatives
Spokesperson Making a speech to discuss growth plans

Decisional Entrepreneur Developing new ideas for innovation

Disturbance Resolving conflict between two subordinates
handler
Resource allocator Reviewing and revising budget requests
Negotiator Reaching agreement with a key supplier or labor
union

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 Is The Manager’s Job Universal?
 Level in the organization
 Do managers manage differently based on where they are in the
organization?
 Profit versus not-for-profit
 Is managing in a commercial enterprise different than managing in a non-
commercial organization?
 Size of organization
 Does the size of an organization affect how managers function in the
organization?
 Management concepts and national borders
 Is management the same in all economic, cultural, social and political
systems?

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 Distribution of Time per Activity by Organizational Level

Source: Adapted from T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, EXHIBIT 1.6

“The Job(s) of Management,” Industrial Relations 4, No.2 (1965), p.103.
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Importance of
Managerial Roles in
Small and Large
Businesses

Source: Adapted from J. G. P. Paolillo, “The Manager’s Self Assessments of Managerial Roles: EXHIBIT 1.7
Small vs. Large Firms,” American Journals of Small Business, January–March 1984, pp.61–62.
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 General Skills for Managers
 Conceptual skills
 A manager’s mental ability to coordinate all of the organization’s
interests and activities
 Interpersonal/Human skills
 A manager’s ability to work with, understand, mentor, and
motivate others, both individually and in groups
 Technical skills
 A manager’s ability to use the tools, procedures, and techniques
of a specialized field
 Political skills
 A manager’s ability to build a power base and establish the right
connections

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Exhibit 1–5 Skills Needed at Different Management Levels

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 Specific Skills for Managers
 Behaviors related to a manager’s effectiveness:
 Controlling the organization’s environment and its resources.
 Organizing and coordinating.
 Handling information.
 Providing for growth and development.
 Motivating employees and handling conflicts.
 Strategic problem solving.

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MANAGEMENT CHARTER INITIATIVE COMPETENCIES FOR MIDDLE MANAGERS
1. Initiate and implement
change and improvement in
services, products, and
systems.
2. Monitor maintain, and
improve service and product
delivery.
3. Monitor and control the use
of resources.
4. Secure effective resource
allocation for activities and
projects.
5. Recruit and select
personnel.
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6. Develop teams, individuals,
and self to enhance
performance.
7. Plan, allocate, and evaluate
work carried out by teams,
individuals and self.
8. Create, maintain, and
enhance effective working
relationships.
9. Seek, evaluate, and organize
information for action.
10. Exchange information to
solve problems and make
decisions.
 How Much Importance Does The
Marketplace Put On Managers?
 Good (effective) managerial skills are a scarce commodity.
 Managerial compensation packages are one measure of the value
that organizations place on them.
 Management compensation reflects the market forces of supply
and demand.
 Management superstars, like superstar athletes in professional sports, are
wooed with signing bonuses, interest-free loans, performance incentive
packages, and guaranteed contracts.

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 Why Study Management?
 We all have a vested interest in improving the way
organizations are managed.
 Better organizations are, in part, the result of good
management.
 You will eventually either manage or be managed
 Gaining an understanding of the management process provides
the foundation for developing management skills and insight
into the behavior of individuals and the organizations.

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Management: Science or Art?
 Science of Management
 Assumes that problems can be approached using rational,
logical, objective, and systematic ways.
 Requires the use of technical, diagnostic, and decision-making
skills and techniques to solve problems.
 Art of Management
 Decisions are made and problems solved using a blend of
intuition, experience, instinct, and personal insights.
 Requires the use of conceptual, communication, interpersonal,
and time-management skills to successfully accomplish the tasks
associated with managerial activities.
 How Does Management Relate To Other
Disciplines?

Sociology

Political Science Psychology

Management
Economics Philosophy

Anthropology

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 Managing in Organizations
 For-profit Organizations
 Large businesses
 Industrial firms, commercial banks, insurance companies, retailers,
transportation companies, utilities, communication companies, service
organizations
 Small businesses and start-up businesses
 International management
 Not-for-profit Organizations
 Governmental organizations—local, state, and federal
 Educational organizations—public and private schools, colleges,
and universities
 Healthcare facilities—public hospitals and HMOs
 Nontraditional settings—community, social, spiritual groups

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 Terms to Know
 manager  management roles
 first-line managers  interpersonal roles
 middle managers  informational roles
 top managers  decisional roles
 management  technical skills
 efficiency  human skills
 effectiveness  conceptual skills
 planning  organization
 organizing  universality of management
 leading
 controlling
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