FUNDAMENTALS

OF CHAPTER 1:
INTRODUCTION TO
MANAGEMENT MANAGEMENT

(MGT 162)
 After completing this chapter, students should
be able to:

• Define what is management

LEARNING • Identify and explain the basic managerial
OBJECTIVES functions
• Understand the roles that managers play
• Describe the three levels of managers in
terms of the skills that they need and the
activities in which they are involved
 Definitions of Management,
Organization, & Managers

Measuring managerial
performance

Management functions
INTRODUCTION
TO
MANAGEMENT Managerial levels

Management skills

Managerial roles
 • “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
DEFINITION OF resources in an organizational
MANAGEMENT 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)
 MEASURING MANAGERIAL
PERFORMANCE

• Performance can be measured by looking at 2 criteria:

• Performance efficiency (“doing things right”)

 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

• Performance effectiveness (“doing the right things”)

 The ability to choose the right goals
e.g. If the demand in the market for cars is form 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
High
FOR PRODUCTIVITY & MANAGERIAL SUCCESS

Effective & efficient.

Effective but not efficient. Goals are achieve &
Goal Attainment

Some resources are resources are well utilized,

(Effectiveness)

A B
wasted. area of high productivity

C D
Neither effective nor
Efficient but not effective.
efficient, goals are not
No wasted resources, but
achieved, resources wasted
goals not achieved.
in the process.
Low
Poor Good
Resource Utilization
(Efficiency)
 THE MANAGEMENT FUNCTION
• 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

PLANNING plans to coordinate activities.

Determine what tasks are to be done, who is to do them,

how the task are to be grouped, who reports to whom &
ORGANIZING where decisions are to be made.

Includes motivating subordinates, directing others,

LEADING selecting the most effective communication channels, &
resolving conflicts.

Monitoring activities to ensure that they are being

CONTROLLING accomplished as planned & correcting any significant
deviations.

LEADS TO

ACHIEVING THE ORGANIZATION’S STATED PURPOSE

(GOALS/ MISSION)
 MANAGERIAL LEVELS
• There are 3 levels of management:

Establish objectives, policy &

strategy, make long-term
Top
3 levels of management

decisions. E.g.: CEO,

managers President
Interpret top management
directives into operating
Middle plans, make implementation
managers decision. E.g.: Marketing
Manager, H.R. Manager
First-Line managers/ Direct & support work on
Lower Level non-managerial personnel,
Manager make short-term operating
decision. E.g.: Clerk

Non- managerial Perform variety of task

personnel activities, using technical
skills. E.g.: Driver
 MANAGEMENT SKILLS

3 Basic skills

Technical skills (T) Conceptual skills

Human skills (H)
(C)

They are mental

Ability to use the Is a skill that gives a capabilities that help
procedures, manager the ability managers see the whole
techniques, & to work effectively enterprise as well as the
knowledge of a with other people. It relationships that exist
specialized field. E.g.: includes the ability to among the various parts in
accountant, a heart motivate, the organization. This skill
surgeon, & a civil understand, lead & gives the manager the
engineer has a special communicate, which ability to coordinate &
knowledge relating to a manager needs integrate the
the specialize field. throughout his work. organization’s interests &
activities.
 RELATIVE SKILLS NEEDED FOR EFFECTIVE
PERFORMANCE AT DIFFERENT LEVELS OF
MANAGEMENT

Top H T C

H C
T
Middle

C
Lower H T

Human Technical Conceptual

H skill
T skill C skill
 MANAGERIAL ROLES

• According to Henry Mintzberg, managers perform

ten different inter-related roles in the organization.

• 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 (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.
• 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.
THANK YOU