CHAPTER 1

INTRODUCTION
TO
MANAGEMENT
WHAT IS
MANAGEMENT?
WHAT IS MANAGEMENT?
• Organizations
• Organizations are collections of people who work together and coordinate their
actions to achieve a wide variety of goals or desired future outcomes.
• All managers work in organizations.
• Managers
• Managers are the people responsible for supervising the use of an organization’s
resources to meet its goals.
WHAT IS
MANAGEMEN
T?
• Resources
• Include assets such as:
1. People and their skills, know-
how, and experience.
2. Machinery.
3. Raw materials.
4. Computers and information
technology.
5. Patents, financial capital, and
loyal customers and
employees.
 Effective Vs Efficient

Efficiency
WHAT IS
MANAGEMEN • A measure of how well or how productively
resources are used to achieve a goal
T?
Effectiveness
• A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
the organization achieves those goals
WHY STUDY MANAGEMENT?
FOUR TASKS
OF
MANAGEME
NT
PLANNING
• Managers identify and select appropriate organizational goals and develop strategies
for how to achieve high performance.
• Steps in Planning Process
1. Deciding which goals the organization will pursue
2. Deciding what strategies to adopt to attain those goals
3. Deciding how to allocate organizational resources.
ORGANIZING
• Organizing
• Structuring working relationships so organizational members interact and cooperate to achieve
organizational goals
• Managers deciding how best to organize resources, particularly human resources
• Organizational structure
• A formal system of task and reporting relationships that coordinates and motivates organizational
members so that they work together to achieve organizational goals
LEADING
• Organizational structure
• A formal system of task and reporting relationships that coordinates and motivates organizational
members so that they work together to achieve organizational goals
• Involves managers using their power, personality, influence, persuasion, and communication skills
to coordinate people and groups
CONTROLLING
• Controlling
• Evaluating how well an organization is achieving its goals and taking action to maintain or
improve performance
• Managers monitor performance of individuals, departments, and the organization
as a whole to determine if they are meeting performance standards
• The outcome of the control process is the ability to measure performance
accurately and regulate organizational efficiency and effectiveness.
• Managers must decide which goals to measure.
 MANAGERIAL ROLES (MINTZBERG,
1990)
• The ten roles are: 6. Spokesperson.
1. Figurehead. 7. Entrepreneur.
2. Leader. 8. Disturbance Handler.
3. Liaison. 9. Resource Allocator.
4. Monitor. 10. Negotiator.
5. Disseminator.

From MINTZBERG ON MANAGEMENT by Henry Mintzberg. Copyright © 1989 by Henry Mintzberg. Reprinted by
permission of Free Press, a division of Simon & Schuster, Inc.
Type of Role Specific Role Examples of Role Activities
Decisional Entrepreneur Commit organizational resources to develop innovative goods and services;
decide to expand internationally to obtain new customers for the
organization’s products.

Decisional Disturbance handler Move quickly to take corrective action to deal with unexpected problems
facing the organization from the external environment, such as a crisis like
an oil spill, or from the internal environment, such as producing faulty goods
or services.

Decisional Resource allocator Allocate organizational resources among different tasks and departments of
the organization; set budgets and salaries of middle and first-level managers.

Decisional Negotiator Work with suppliers, distributors, and labor unions to reach agreements
about the quality and price of input, technical, and human resources; work
with other organizations to establish agreements to pool resources to work
on joint projects.

Copyright © McGraw-Hill Education. Permission required for reproduction or display.

Type of Role Specific Role Examples of Role Activities
Interpersonal Figurehead Outline future organizational goals to employees at
company meetings; open a new corporate headquarters
building; state the organization’s ethical guidelines and
the principles of behavior employees are to follow in
their dealings with customers and suppliers.

Interpersonal Leader Provide an example for employees to follow; give direct

commands and orders to subordinate; make decisions
concerning the use of human and technical resources;
mobilize employee support for specific organizational
goals.

Interpersonal Liaison Coordinate the work of managers in different

departments; establish alliances between different
organizations to share resources to produce new goods
and services; reach agreements about the quality and
price of input, technical, and human resources; work with
other organizations to establish agreements to pool
resources to work on joint projects.

Copyright © McGraw-Hill Education. Permission required for reproduction or display.

Type of Role Specific Role Examples of Role Activities
Informational Monitor Evaluate the performance of managers in different tasks,
and take corrective action to improve their performance;
watch for changes occurring in the external and internal
environments that may affect the organization in the future.
Informational Disseminator Inform employees about changes taking place in the
external and internal environments that will affect them and
the organization; communicate to employees the
organization’s vision and purpose.
Informational Spokesperson Launch a national advertising campaign to promote new
goods and services; give a speech to inform the local
community about the organization’s future intentions.

Copyright © McGraw-Hill Education. Permission required for reproduction or display.

MANAGEMENT LEVELS
• First-line managers
• Responsible for the daily supervision of the
nonmanagerial employees
• Middle managers
• Supervises first-line managers
• Responsible for finding the best way to use resources
to achieve organizational goals
• Top managers
• Responsible for the performance of all departments
• Establish organizational goals
• Decide how different departments should interact
• Monitor how well middle managers in each
department use resources to achieve goals
 LEVELS AND SKILLS OF
MANAGERS
• Conceptual skills
• The ability to analyze and diagnose a
situation and distinguish between
cause and effect
• Human skills
• The ability to understand, alter, lead,
and control the behavior of other
individuals and groups
• Technical skills
• Job-specific skills required to perform
a particular type of work or occupation
at a high level
 LEVELS AND SKILLS OF
MANAGERS
• Organizations group managers into
different departments (or functions)
according to their specific job-related
skills, expertise, and experiences, such as
a manager’s engineering skills, marketing
expertise, or sales experience.
• A department is a group of people who
work together and possess similar skills or
knowledge, tools, or techniques to perform
their jobs.
CORE COMPETENCY
• The term core competency is often used to refer to the specific set of departmental
skills, knowledge, and experience that allows one organization to outperform its
competitors.
• Departmental skills that create a core competency give an organization a competitive
advantage.
• Effective managers need all three types of skills—conceptual, human, and
technical—to help their organizations perform more efficiently and effectively.
RESTRUCTURING AND
OUTSOURCING
• Restructuring
• Downsizing an organization by eliminating the jobs of large numbers of top, middle, and first-line
managers and nonmanagerial employees
• Outsourcing
• Contracting with another company, usually in a low-cost country abroad, to perform a work
activity the company previously performed itself
CHALLENGES FOR MANAGEMENT IN
A
GLOBAL ENVIRONMENT
Five major challenges stand out for managers in today’s world:
• Building a competitive advantage
• Maintaining ethical standards
• Managing a diverse work force
• Utilizing new information systems and technologies
• Practicing global crisis management
 BUILDING COMPETITIVE
ADVANTAGE
• Competitive advantage
• Ability of one organization to outperform other
organizations because it produces desired
goods or services more efficiently and
effectively than its competitors
• The four building blocks of competitive
advantage are superior:
• Efficiency
• Quality
• Speed, flexibility, and innovation
• Responsiveness to customers
TURNAOUND
MANAGEME
NT
• Turnaround management
• Creation of a new vision for a
struggling company using a
new approach to planning
and organizing to make
better use of a company’s
resources to allow it to
survive and eventually
prosper
MAINTAININ
G ETHICAL
AND
SOCIALLY
RESPONSIBL
E
STANDARDS • Managers are under considerable pressure to make the best use of resources.
• Too much pressure may induce managers to behave unethically and even illegally.
• The issue of social responsibility centers on deciding what obligations a company has
toward the people and groups affected by its activities—such as employees, customers, or
the cities in which it operates.
MANAGING A DIVERSE
WORKFORCE
• To create a highly trained and motivated workforce, managers must establish human
resource management (HRM) procedures that are legal and fair and do not
discriminate against organizational members.
• Accenture uses a diverse workforce to its advantage.
• Today the age, gender, race, ethnicity, religion, sexual preference, and
socioeconomic composition of the workforce present new challenges for managers
UTILIZING
NEW
TECHNOLOG
IES
• An efficient and effective IT
system may improve an
organization’s performance.
PRACTICING GLOBAL CRISIS
MANAGEMENT
Crisis management involves making important choices about how to:

Create teams to facilitate rapid decision-making and communication.

Establish the organizational chain of command and reporting the relationships necessary to mobilize a fast
response.

Recruit and select the right people to lead and work in such teams.

Develop bargaining and negotiating strategies to manage the conflicts that arise whenever people in
groups have different interests and objectives.
REFERENCES
• Contemporary Management
• 11th Edition
• By Gareth Jones and Jennifer George
• Mintzberg on Management
• By Henry Mintzberg