2. After studying this chapter, you
should be able to:
1. Describe the four management functions and the
type of management activity associated with each.
2. Explain the difference between efficiency and
effectiveness and their importance for organizational
performance.
3. Describe conceptual, human, and technical skills and
their relevance for managers.
4. Describe management types and the horizontal and
vertical differences between them.
5. Define ten roles that managers perform in
organizations.
3. Early twentieth-century management scholar Mary Parker
Follett defined management as “the art of getting things done
through people.”
Peter Drucker stated that the job of managers is to give direction
to their organizations, provide leadership, and decide how to use
organizational resources to accomplish goals.
These activities apply not only to top executives such as Eric
Schmidt of Google or Indra Nooyi of PepsiCo, but also to the
manager of a restaurant in your home town, the leader of an
airport security team, a supervisor of an accounting department,
or a director of sales and marketing
4. Definition of ‘Management’
The attainment of organizational goals in
an effective and efficient manner
through:
Planning
Organizing
Staffing
Leading
Controlling
organizational resources
5. Two Key Ideas in defining the term
‘Management’
The four functions
• Planning
• Organizing
• Leading
• Controlling
Attainment of organizational goals in an
effective & efficient manner
6. Terms for understanding ‘Organizational
Performance’
Organization…social entity that is goal directed and
deliberately structured
Social entity : made up of two or more people
Goal directed…designed to achieve some outcome
Deliberately structured…tasks are divided and
responsibility for their performance is assigned
Effectiveness…degree to which goals are achieved
Efficiency…use of minimal resources to produce the
desired volume of output
8. Planning
The management function concerned with
defining goals for future organizational
performance and deciding on the tasks and
resources needed to attain them
Bridges the gap from where we are, to where we want
to be
It is an attempt to manage the future.
Planning increases profitability and productivity
If you do not plan then you plan for failure
9. Organizing
After setting goal & developing a workable plan,
the next management function is to organize
people & other resources necessary to carry out
the plan
Assigning tasks, grouping tasks into departments and
allocating resources to departments
The outcome of organizing is the creation of an
‘ORGANIZATION STRUCTURE’
10. Leading
The management function that involves the use
of influence to motivate employees to achieve
the organization’s goals
Examples:
Michael Dell’s
Herb Kell, CEO of southwest Airlines
Steve Jobs and many more……..
11. Controlling
The management function, concerned with
monitoring employees activities, keeping
the organization on track toward its goals,
and making corrections as needed
12. Management Skills
Education & Experience help managers acquire three
principal types of skills
Levels of the skills that manager needs depends on his/her
level in the hierarchy
13. Conceptual Skills
The cognitive ability to see the organization as a
whole and the relationships among its various
sub units and to visualize how the organizations
fits into the environment s a whole.
The ability to “Think strategically”
Skills which are more important for the top
level managers- planning and organizing
14. Human Skills
The ability to work well with and through other people and to
work effectively as a group.
This skill is demonstrated in the way a manager relates to
other people, including the ability to motivate, facilitate,
coordinate, lead, communicate and resolve conflicts
As managers deal directly with people this skill is crucial.
Human skills are as important at the top level of management
as they are at the lower levels.
Mangers with good human skills are able to get the best out
of their people
15. Examples of human skills…..
As globalization & workforce diversity increases,
human skills become even more crucial
A manager with Human Skills likes other people
& is liked by them
Meeting union workers to solve problems
Dinners to celebrate team accomplishment
While Technical Skills involve mastery of ‘things’
where as Human Skills are concerned with
understanding of ‘people’
16. Technical Skills
The understanding of and proficiency in the
performance of specific tasks
Job specific knowledge & techniques that are
required to perform and Organizational role
Technical skills become less important as the
manager moves up the hierarchy but even top
managers need such skills to some extent.
Manager of restaurant may need cooking skills to
fill in for an absent cook
17. Energizer
When Doctor makes a poor diagnosis, their
patient dies. When a lawyer fails to present a
case, their client goes to jail, But when a
manager makes a poor hiring decision, they
have to face consequences of that decision
every single day
18. Do you think effective managers
need all these three types of
skills…….
20. Managers use Conceptual,
human & technical skills to
perform the four management
functions of planning,
organizing, leading &
controlling in all organizations
21. Management Types
Not all managers jobs are the same
Managers are responsible for different
departments
Different levels in the hierarchy
22. Management Levels
SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review (Spring 1989), 27-37.
24. Horizontal Differences
Functional managers, responsible for
departments that perform a single functional
task
General managers, responsible for several
departments that perform different functions
25. Top Managers
Top managers are at the top of the hierarchy &
responsible for the entire Organization
President
Chairperson
Executive director
Chief Executive Officer
Responsible for Org goals, defining strategies for
achieving them, monitoring & interpreting the
external environment & making decisions that
affect the entire Org
26. Middle Managers
Works at the middle levels of the Organization & is
responsible for major departments
Department head (manufacturing-accounting)
Division head
Manager of quality control etc
Have more management levels beneath them
They concerned with the near future & expected to
establish good relationships with peers around the
Org, encourage teamwork & resolve conflicts
27. Middle managers make thousands of decisions
that go into the production of goods & services
Which first line supervisors should be chosen for
this particular project?
Where can we find the highest-quality
resources?
How should employees be organized to allow
them to make the best use of resources?
28. Project managers
A manager responsible for a temporary work
project that involves the participation of other
people at similar level in the organization
Manage horizontally and give up their
management responsibilities when their project
is finished
Manager of one project may be a team
member on another project
The participation of middle managers in different
projects & managing horizontally without
adding positions to the hierarchy
29. Line Manager
At the base of the managerial hierarchy are First
Line Managers ( often called supervisor, line
manager, office manager etc)
Responsible for daily supervision of non-
managerial employees
Primary concern- application of rules &
procedures to achieve efficient production-
provide technical assistance & motivate
subordinates
When Michael Dell started his company- he
performed as first line manager/ supervisor to
control computer assembly process
31. Ten Manager Roles
Three Conceptual Categories
Informational Interpersonal Decisional
•Monitor
•Disseminator
•Spokesperson
•Figurehead
•Leader
•Liaison
•Entrepreneur
•Disturbance handler
•Resource allocator
•Negotiator
Managing
through
information
Managing
through
people Managing
Action
32.
33. The manager who only
communicates or only conceives
never gets anything done, while the
manager who only ‘does’ ends up
doing it all alone
