MGT 162

FUNDAMENTAL OF MANAGEMENT
CHAPTER 1:
INTRODUCTION TO MANAGEMENT
PREPARED BY: KHAIRIAH MAZDIAH BT KALIMIN
CHAPTER 1: INTRODUCTION OF
MANAGEMENT
Learning Outlines
1.1 Definition of management and organization
1.2 Measuring managerial performance
1.3 Management process, functions and activities
1.4 Managerial levels, skills and roles
1.5 Evolutions of management thoughts
 1.1 DEFINITION OF MANAGEMENT AND
ORGANIZATION

MANAGEMENT
The process of
ORGANIZATION
planning,
organizing, leading Made up from 2 or
and controlling more people that is
resources to goal directed and
achieve deliberately
organizational goals structured
effectively and
efficiently.
 HUMAN

INFORMATION RESOURCES FINANCIAL

PHYSICAL
 1.2 MEASURING MANAGERIAL
PERFORMANCE
EFFICIENCY
- The ability to get things done correctly
- Doing things right
- Ex: minimize the cost, input- ouput concept

EFFECTIVENESS
- Ability to choose appropriate objectives
- Doing the right things
- Ex: Goal attainment
 1.3 MANAGEMENT PROCESS, FUNCTIONS
AND ACTIVITIES
PLANNING ORGANIZING
- Defining goals, establishing - Determine what task, who &
strategy, and developing plans how, who report to whom &
to coordinate activities where decision to be made

LEADING CONTROLLING
- Motivating, select effective - Monitoring activities and
communication channels & correcting any significant
resolving conflict deviation
1.4 MANAGERIAL LEVELS, SKILLS
AND ROLES
MANAGERIAL LEVEL
1. First-line managers/ lower level manager
- Direct operating employees only, they do not supervise other
managers.

2. Middle manager
- Direct the activities that implement their organization policies
- Balance the demands of their superiors with the capacity of their
subordinates.
3.Top managers
- Responsible for the overall management of the organization.
- Establish operating policies & guides the organizations
interactions with its environment.
MANAGERIAL SKILL
 ROLE OF MANAGERS
What is Role?
- The behavior that is expected in a particular situation.

Decisional
roles
Informational
Interpersonal Entrepreneur
Roles
roles Disturbance
Monitor
Figurehead Handler
Disseminator
Leader Resource Allocator
Spokesperson
liaison Negotiators
 1.5 EVOLUTION OF MANAGEMENT
THOUGHTS
FACTOR INFLUENCING MANAGEMENT THOUGHTS

Economic Influences
The availability, production, and
distribution of resources within a
society.

Social Influences
The aspects of a culture that
influence interpersonal
relationships.
 Political Influences
The impact of political institutions on
individuals and organizations.

Technological Influences
The advances and refinements in any of the
devices that are used in conjunction with
conducting business.

Global Influences
The pressures to improve quality, productivity,
and costs as organizations attempt to compete
in the worldwide marketplace.
Chronological Development of
Management Perspectives
A) CLASSICAL PERSPECTIVES
Classical approach to management resulted
from the first significant, concentrated effort to develop
a body of management thought. Management writers
who participated in this efforts are considered the
pioneer of management study
Subfields of the Classical Perspective on Management

Focuses on the
individual workers
productivity
Focuses on the overall
organizational system

Focuses on the
functions of
management
Scientific Management
Introduced by FrederickWinslowTaylor.
Focus on increasing the efficiency of production processes in
order to enhance organizational productivity.
Introduced differential rate compensation system whereby
more productive workers received a higher pay rate.
Continue
Three areas of focus:

Task Performance

Supervision

Motivation
Administrative management
Henri Fayol (18411925)
First recognized that successful managers had to understand the
basic managerial functions.
Developed a set of 14 general principles of management.

Fayols managerial functions of planning, leading, organizing and

Bureaucratic management is based upon:

Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
B) BEHAVIORAL PERSPECTIVE
Followed the classical perspective in the development of
management thought.
Acknowledged the importance of human
behavior in shaping management style
Is associated with:
Elton Mayo
Douglas McGregor
Mary Parker Follet
Chester Barnard
C) QUANTITATIVE APPROACH
Characterized by its use of mathematics, statistics,
and other quantitative techniques for
management decision making and problem
solving.
This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers
 Decision-Making Focus
The primary focus of the quantitative approach is on problems
or situations that require direct action, or a decision, on the
part of management.

Measurable Criteria
The decision-making process requires that the decision maker
select some alternative course of action.
 Quantitative Model
To assess the likely impact of each alternative on the stated
criteria, a quantitative model of the decision situation must be
formulated.

Computers
Computers are quite useful in the problem-solving process.
D) SYSTEM PERSPECTIVE
Views the organization as a unified, directed system of
interrelated parts.
The systems sees each change in a part of the system as
having an impact on all others parts.
The system helps managers to realize that every action has
consequences somewhere inside as outside the organization.
E) CONTINGENCY PERSPECTIVE
A view that proposes that there is no one best approach to
management for all situations.
Asserts that managers are responsible for determining which
managerial approach is likely to be most effective in a given
situation.
This requires managers to identify the key contingencies in a
given situation.
THE END