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INTRODUCTION TO
MANAGEMENT CLASS

1-#
Chapter 1
INTRODUCTION
TO MANAGEMENT
AND
ORGANIZATIONS
© Prentice Hall, 2002

1-2
Learning Objectives

• You should learn to:
– Explain what a manager is and how the role of a
manager has changed
– Define management
– Distinguish between efficiency and effectiveness
– Describe the basic management functions and the
management process
– Identify the roles performed by managers
© Prentice Hall, 2002

1-3
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 and how the
concept of an organization has changed
– Explain the value of studying management

© Prentice Hall, 2002

1-4
Dwi Sucipto

CEO PT Semen Gresik

Who are they
© Prentice Hall, 2002

1-5

5
President for Republic

Rector for University

© Prentice Hall, 2002

Director for Company

1-6

6
Who are they

© Prentice Hall, 2002

Dwi Sucipto

CEO PT Semen Gresik

Who are they

1-7

7
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 non-managerial employees

© Prentice Hall, 2002

1-8
President

Minister
For Internal
Affairs

© Prentice Hall, 2002

1-9

9
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 organization’s
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 organizationwide decisions and establishing the plans and goals that
affect the entire organization
© Prentice Hall, 2002

1-10
Organizational Levels

Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees
© Prentice Hall, 2002

1-11
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 non-managerial one
© Prentice Hall, 2002

1-12
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

© Prentice Hall, 2002

1-13
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)
© Prentice Hall, 2002

1-14
What Do Managers Do?
• Management Functions and Process
– most useful conceptualization of the manager’s 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

© Prentice Hall, 2002

1-15
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

© Prentice Hall, 2002

1-16
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
© Prentice Hall, 2002

1-17
EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES

© Prentice Hall, 2002

1-18
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

© Prentice Hall, 2002

1-19
EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS

© Prentice Hall, 2002

1-20
© Prentice Hall, 2002

1-#

1-21

21
What Do Managers Do? (cont.)

• Managing Systems

– System - a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
• 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

© Prentice Hall, 2002

1-22
The Organization As An Open System
Environment
System
Inputs
Raw materials
Human resources
Capital
Technology
Information

Transformation
Employee’s work
activities
Management
activities
Technology and
operations methods

Outputs
Products and services
Financial results
Information
Human results

Feedback

© Prentice Hall, 2002

Environment

1-23
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
© Prentice Hall, 2002

1-24
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
• stresses that there are no simplistic or
universal rules
• contingency variable
© Prentice Hall, 2002

1-25
EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES

© Prentice Hall, 2002

1-26
What Is An Organization?
• 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

– today’s organizations have adopted:
• flexible work arrangements
• open communications
• greater responsiveness to changes

© Prentice Hall, 2002

1-27
EXHIBIT 1.10: THE CHANGING ORGANIZATION

© Prentice Hall, 2002

1-28
Why Study Management?
• 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
© Prentice Hall, 2002

1-29
EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT

© Prentice Hall, 2002

1-30
Why Study Management? (cont.)
• The Reality of Work
– most people have some managerial
responsibilities
– most people work for a manager
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

© Prentice Hall, 2002

1-31
Why Study Management? (cont.)
• 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

© Prentice Hall, 2002

1-32
Conclusions

© Prentice Hall, 2002

1-#

1-33

33

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Intro to Management Class

  • 3. Learning Objectives • You should learn to: – Explain what a manager is and how the role of a manager has changed – Define management – Distinguish between efficiency and effectiveness – Describe the basic management functions and the management process – Identify the roles performed by managers © Prentice Hall, 2002 1-3
  • 4. 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 and how the concept of an organization has changed – Explain the value of studying management © Prentice Hall, 2002 1-4
  • 5. Dwi Sucipto CEO PT Semen Gresik Who are they © Prentice Hall, 2002 1-5 5
  • 6. President for Republic Rector for University © Prentice Hall, 2002 Director for Company 1-6 6
  • 7. Who are they © Prentice Hall, 2002 Dwi Sucipto CEO PT Semen Gresik Who are they 1-7 7
  • 8. 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 non-managerial employees © Prentice Hall, 2002 1-8
  • 10. 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 organization’s 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 organizationwide decisions and establishing the plans and goals that affect the entire organization © Prentice Hall, 2002 1-10
  • 12. 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 non-managerial one © Prentice Hall, 2002 1-12
  • 13. 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 © Prentice Hall, 2002 1-13
  • 14. 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) © Prentice Hall, 2002 1-14
  • 15. What Do Managers Do? • Management Functions and Process – most useful conceptualization of the manager’s 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 © Prentice Hall, 2002 1-15
  • 16. 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 © Prentice Hall, 2002 1-16
  • 17. 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 © Prentice Hall, 2002 1-17
  • 18. EXHIBIT 1.4: MINTZBERG’S MANAGERIAL ROLES © Prentice Hall, 2002 1-18
  • 19. 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 © Prentice Hall, 2002 1-19
  • 20. EXHIBIT 1.5: SKILLS NEEDED AT DIFFERENT MANAGEMENT LEVELS © Prentice Hall, 2002 1-20
  • 21. © Prentice Hall, 2002 1-# 1-21 21
  • 22. What Do Managers Do? (cont.) • Managing Systems – System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole • 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 © Prentice Hall, 2002 1-22
  • 23. The Organization As An Open System Environment System Inputs Raw materials Human resources Capital Technology Information Transformation Employee’s work activities Management activities Technology and operations methods Outputs Products and services Financial results Information Human results Feedback © Prentice Hall, 2002 Environment 1-23
  • 24. 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 © Prentice Hall, 2002 1-24
  • 25. 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 • stresses that there are no simplistic or universal rules • contingency variable © Prentice Hall, 2002 1-25
  • 26. EXHIBIT 1.8: POPULAR CONTINGENCY VARIABLES © Prentice Hall, 2002 1-26
  • 27. What Is An Organization? • 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 – today’s organizations have adopted: • flexible work arrangements • open communications • greater responsiveness to changes © Prentice Hall, 2002 1-27
  • 28. EXHIBIT 1.10: THE CHANGING ORGANIZATION © Prentice Hall, 2002 1-28
  • 29. Why Study Management? • 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 © Prentice Hall, 2002 1-29
  • 30. EXHIBIT 1.11: UNIVERSAL NEED FOR MANAGEMENT © Prentice Hall, 2002 1-30
  • 31. Why Study Management? (cont.) • The Reality of Work – most people have some managerial responsibilities – most people work for a manager 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 © Prentice Hall, 2002 1-31
  • 32. Why Study Management? (cont.) • 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 © Prentice Hall, 2002 1-32
  • 33. Conclusions © Prentice Hall, 2002 1-# 1-33 33