Chapter 1

INTRODUCTION
TO MANAGEMENT
AND
ORGANIZATIONS
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Learning Objectives

You should learn to:

Explain what a manager is
Define management
Distinguish between efficiency and
effectiveness
Describe the basic management
functions and the management process
Identify the roles performed by managers
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Learning Objectives (cont.)

You should learn to:
Describe the skills managers need
Explain what managers do using the
systems perspective
Identify what managers do using the
contingency perspective
Describe what an organization is
How the concept of an organization
has changed
Explain the value of studying
management
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Important Concepts

Management
The
Organization

Prentice Hall, 2002

A Manager

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Who Are Managers?

Manager
someone who works with and through
other people by coordinating their work
activities in order to accomplish
organizational goals
changing nature of organizations and
work has blurred the clear lines of
distinction between managers and nonmanagerial employees
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Who Are Managers? (cont.)

Managerial Titles
First-line managers - manage the work of nonmanagerial individuals who are directly involved
with the production or creation of the
organizations products
Middle managers - all managers between the
first-line level and the top level of the
organization
manage the first-line managers

Top managers - responsible for making

organization-wide decisions and establishing the
plans and goals that affect the entire organization
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Organizational Levels

Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees
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Types of Managers
Organizational
Level
Top Managers

Position
Executives

Functional
Title
President
Vice President

Middle Managers

Managers or Directors

Production Manager
Sales Manager

First-Line Managers

Supervisors

HR Manager
Production Supervisor
Regional Sales Manger
Chief Bookkeeper

Prentice Hall, 2002

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Management: The Classic

Definition
The art of getting things done
through people.
Mary Parker Follet

Prentice Hall, 2002

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Management: A Broader
Definition

The process of administering and

coordinating resources effectively,
efficiently, and in an effort to achieve
the goals of the organization.
Prentice Hall, 2002

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What Is Management?

Management
the process of coordinating work activities
so that they are completed efficiently and
effectively with and through other people
elements of definition
Process - represents ongoing functions or
primary activities engaged in by managers
Coordinating - distinguishes a
managerial position from a nonmanagerial one
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What is Management? (cont.)

Management (cont.)
elements of definition
Efficiency - getting the most output
from the least amount of inputs
doing things right
concerned with means
Effectiveness - completing activities so
that organizational goals are attained
doing the right things
concerned with ends

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Effectiveness vs. Efficiency

Effectiveness
Effectiveness is achieved when the
organization pursues appropriate
goals. This means doing the right
thing.
Efficiency
Efficiency is achieved by using the
fewest inputs (e.g., people and money)
to generate a given output. This
means doing things right.
The end result of effective and efficient
management is organizational success.
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Efficiency and Effectiveness in

Management
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)
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What Do Managers Do?

Management Functions and Process

most useful conceptualization of the managers job

Planning - defining goals, establishing strategies
for achieving those goals, and developing plans to
integrate and coordinate activities
Organizing - determining 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 made
Leading - directing and motivating all involved
parties and dealing with employee behavior issues
Controlling - monitoring activities to ensure that
they are going as planned

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What Do Managers Do? (cont.)

Management Functions and Process (cont.)

Management process
set of ongoing decisions and work
activities in which managers engage as
they plan, organize, lead, and control
managerial activities are usually done in
a continuous manner

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What Do Managers Do? (cont.)

Management Roles

specific categories of managerial behavior

Interpersonal - involve people and duties
that are ceremonial and symbolic in nature
Informational - receiving, collecting, and
disseminating information
Decisional - revolve around making choices
emphasis that managers give to the various
roles seems to change with their
organizational level
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Traditional Managerial Roles

Figurehead

Interpersonal

Leader
Disseminator

Informational

Spokesperson
Entrepreneur

Decisional
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Negotiator
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EXAMPLE: MINTZBERGS MANAGERIAL ROLES

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What Do Managers Do? (cont.)

Management Skills
Technical - knowledge of and proficiency in a
certain specialized field
Human - ability to work well with other people
both individually and in a group
Conceptual - ability to think and to
conceptualize about abstract and complex
situations
see the organization as a whole
understand the relationships among subunits
visualize how the organization fits into its broader
environment
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Skills Needed at
Different Levels of Management
First-line
Management

Middle
Management

Conceptual

Conceptual

Top-Level
Management

Conceptual

Human
Human
Human
Technical
Technical
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Technical
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What Do Managers Do? (cont.)

Managing Systems
System - a set of interrelated and interdependent
parts arranged in a manner that produces a unified
whole thing.
provides a more general and broader picture of
what managers do than the other perspectives
provide
Closed system - not influenced by and do not
interact with their environment
Open system - dramatically interact with their
environment.
Organizations:
- take in inputs from their environments
transform or process inputs into outputs
outputs are distributed into the environment
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The Organization as an Open

System
Environment
System
Inputs
Raw materials
Human resources
Capital
Technology
Information

Transformation
Employees work
activities
Management
activities
Technology and
operations methods

Outputs
Products and services
Financial results
Information
Human results

Feedback

Environment

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What Do Managers Do? (cont.)

Managing Systems (cont.)

Managers must:
coordinate various work activities
ensure that interdependent parts work together
recognize and understand the impact of
various external factors

decisions and actions taken in one

organizational area will affect other areas
and vice versa
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What Do Managers Do? (cont.)

Managing in Different and Changing
Situations
require managers to use different
approaches and techniques
Contingency perspective different ways of managing are
required in different organizations
and different circumstances.
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EXAMPLE: POPULAR CONTINGENCY VARIABLES

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What is an Organization?

An organization is a group of
individuals who work together
toward common goals.
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What is an Organization?, Contd.,

Organization
a deliberate arrangement of people to
accomplish some specific purpose
elements of definition:
each organization has a distinct purpose
each organization is composed of people
all organizations develop some
deliberate structure
todays organizations have adopted:
flexible work arrangements
open communications
greater responsiveness to changes
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What Do All
Organizations have in Common?

They are made up of people, and

The efforts of these people must

be coordinated if the organization is
to accomplish its goals.

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EXAMPLE: THE CHANGING ORGANIZATION

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The New Management

Smaller units

Vision and values

Team-based

Knowledge-based

organizations

organizations

Empowerment

Agents of change

Flatter structures
New power bases
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Leadership
E-commerce
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Why Study Management?

1. Universality of Management
Management is needed
in all types and sizes of
organizations
at all organizational levels
in all work areas
Management functions must be
performed in all organizations.
Consequently, have vested interest
in improving management

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EXAMPLE: UNIVERSAL NEED FOR MANAGEMENT

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Why Study Management? (cont.)

2. The Reality of Work
Most people have some managerial
responsibilities
Most people work for a manager
3. Challenges of Being a Manager
- Being a manager is hard work
- Must deal with a variety of personalities
-Must motivate workers in the face of
uncertainty
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Why Study Management? (cont.)

4. Rewards of Being a Manager
Create an environment that allows
others to do their best work
Provide opportunities to think
creatively
Help others find meaning and
fulfillment
Meet and work with a variety of
people
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Fundamental Changes Facing

Management

Technological
Innovation
Globalization

Forces Are
Creating

Companies
Must Be

Deregulation

Uncertainty

Responsive

Turbulence

Adaptive

Change

Fast

Demographic
Changes
Political
Changes
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