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management
CHAPTER 1
Introduction to
Chapter Outline:
• 1.1 Definition of organization and management
• 1.2 Measuring managerial performance
• 1.3 Management process functions and activities
• 1.4 Managerial levels, skills and roles
• 1.5 Evolution of management thoughts
1.1 definition of
organization & management
management:
a broader definition
The process of administering and coordinating resources
effectively, efficiently, and in an effort to achieve the goals of
the organization (Lewis)
management:
the classic definition
The art of getting things done through people
( Marry Parker Follet)
MGT162/UiTMJOHOR/2013
Definition of organization
& manager
Organization:
An organization is a group of individuals who work together toward
common goals (Lewis)
Manager:
“An organizational member who is responsible for planning,
organizing, leading, and controlling the activities of the organization
so that its goals are achieved” (Lewis)
measuring
managerial performance;
 Effectiveness
 Efficiency
MGT162/UiTMJOHOR/2013
High
Low
Poor
Good
A B
C D
GoalAttainment
(Effectiveness)
Resource Utilization
(Efficiency)
Performance Effectiveness &
Performance Efficiency As Foundations For Productivity
& Managerial Success
MGT162/UiTMJOHOR/2013
Management is a process that contains several functions. It comprises of the
activities of Planning, Organizing, Leading & Controlling (POLC).
ACHIEVING THE ORGANIZATION’S
STATED PURPOSE (GOALS/ MISSION)
PLANNING
ORGANIZING
LEADING
CONTROLLING
LEADS TO
management process function
(polc)
1.3 Management process, functions and
activities
MGT162/UiTMJOHOR/2013
1.4 Managerial levels, skills and roles
Top
Managers
Middle
Managers
First-Line Managers
Nonmanageri
al personnel
Managerial Levels:
MGT162/UiTMJOHOR/2013
Manager
By their level
in the organization
Top managers
Middle manager
First-line manager
By the range of
organization
activities they are
responsible
Functional
manager
General manager
Responsible for a
single area of
activity. E.g.:
Finance manager,
Marketing manager
Responsible for
more complex units
that include many
functional areas of
activity. E.g.: Plant
manager
Type of Managers:
MGT162/UiTMJOHOR/2013
• There are 3 basic skills required by managers:
3 Basic skills
Technical skills (T) Human skills (H) Conceptual skills (C)
Management Skills:
MGT162/UiTMJOHOR/2013
Top
Middle
Lower
H
H
H
T
T
T
C
C
C
H Human
skill
T C
Technical
skill
Conceptual
skill
Relative Skills Needed For
Effective Performance At Different Levels Of
Management
MGT162/UiTMJOHOR/2013
Technical
First-line
Management
(Production
Supervisor)
Human
Conceptual
Technical
Middle Management
(Marketing Manager)
Human
Conceptual
Technical
Top-Level Management
(CEO President)
Human
Conceptual
MGT162/UiTMJOHOR/2013
Managerial Roles:
Interpersonal
roles
Decisional
roles
Informational
roles
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Enterpeneur
Resource
Allocator
Negotiator
MGT162/UiTMJOHOR/2013
1.5: Evolution of
management thoughts
Environmental factors influencing
management thought
Economic influences
Social influences
Political influences
technological influences
global influences
MGT162/UiTMJOHOR/2013
Chronological Development
of Management Thought:
MGT162/UiTMJOHOR/2013
Focuses on the individual
worker’s productivity
Focuses on the
functions of
management
Focuses on the
overall organizational
system
Classical Perspective
on management:
MGT162/UiTMJOHOR/2013
• Focus on the productivity of the individual workers.
• 3 areas of focus:
(I) Task Performance
(II) Supervision
(III) Motivation
Scientific Management:
Frederick W.Taylor (1856-1915)
Scientific management:
The Gilbreths
 Frank Glibreth
 Lilian Gilbreth
MGT162/UiTMJOHOR/2013
• Henri Fayol (1841-1925)was the first to recognize that successful
managers had to understand the basic managerial functions.
• Developed a set of 14 general principles of management.
• Fayol’s managerial functions of planning, leading, organizing and
controlling are routinely used in modern organizations.
Administrative Management:
Henri Fayol (1841 – 1925)
Fayol’s general principles of management
1. Division of work
2. Centralization
3. Authority
4. Scalar chain
5. Discipline
6. Order
7. Unity of command
8. Equity
9. Unity of direction
10. Stability of tenure
11. Interest of the organization
12. Initiative
13. Remuneration of personal
14. Esprit de corps
• Focuses on the overall organizational system.
• Bureaucratic management is based upon:
 Firm rules
 Policies and procedures
 A fixed hierarchy
 A clear division of labor
Bureaucratic Management:
Max Weber (1864 – 1920)
A German sociologist and historian who envisioned a system of management that
would be based upon impersonal and rational behavior – the approach to
management now referred to as “bureaucracy”.
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion.
MGT162/UiTMJOHOR/2013
Focused on
rational behavior
Classical Perspective
Acknowledged the
importance of human
behavior
Behavioral Perspective
vs.
Classical versus Behavioral Perspective
MGT162/UiTMJOHOR/2013
• Managers were being presented with more evidence that human
behaviour has a significant impact on the actions of workers.
• Follet concluded that a key to effective management was coordination
• Hawthorne effect – the phenomenon whereby individual or group
performance is influenced by human behaviour factors.
• Theory X – advocates that a manager percives that subordinates have
an inherent dislike of work and will avoid it if possible.
• Theory Y- advocates that manager perceives that subordinates enjoy
work and will again satisfaction from their jobs.
Behavioral Perspective
The Quantitative Perspective
Characterized by its use of mathematics, statistics, and other quantitative
techniques for management decision making and problem solving.
1. A decision-making focus – require some direct action on the part of
management
2. measurable criteria – select some alternative course of action by
making comparison
3. quantitative model – make use of mathematical symbols, equations
and formulas
4. The use of computers
MGT162/UiTMJOHOR/2013
Systems Perspective:
• An approach to problem solving based that attacks complex
systems by breaking them down into their constituent elements
MGT162/UiTMJOHOR/2013
• 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 Contingency Perspective
Blending Components
into a Contingency Perspective
• Joan Woodward’s Research
• Discovered that a particular management style is affected by the
organization’s technology.
• Identified and described three different types of technology:
• Small-batch technology
• Mass-production technology
• Continuous-process technology
An Example of the
Contingency Perspective
MGT162/UiTMJOHOR/2013
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mgt162 chapter1

  • 1.
  • 3. Chapter Outline: • 1.1 Definition of organization and management • 1.2 Measuring managerial performance • 1.3 Management process functions and activities • 1.4 Managerial levels, skills and roles • 1.5 Evolution of management thoughts
  • 4. 1.1 definition of organization & management management: a broader definition The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization (Lewis) management: the classic definition The art of getting things done through people ( Marry Parker Follet) MGT162/UiTMJOHOR/2013
  • 5. Definition of organization & manager Organization: An organization is a group of individuals who work together toward common goals (Lewis) Manager: “An organizational member who is responsible for planning, organizing, leading, and controlling the activities of the organization so that its goals are achieved” (Lewis) measuring managerial performance;  Effectiveness  Efficiency MGT162/UiTMJOHOR/2013
  • 6. High Low Poor Good A B C D GoalAttainment (Effectiveness) Resource Utilization (Efficiency) Performance Effectiveness & Performance Efficiency As Foundations For Productivity & Managerial Success MGT162/UiTMJOHOR/2013
  • 7. Management is a process that contains several functions. It comprises of the activities of Planning, Organizing, Leading & Controlling (POLC). ACHIEVING THE ORGANIZATION’S STATED PURPOSE (GOALS/ MISSION) PLANNING ORGANIZING LEADING CONTROLLING LEADS TO management process function (polc) 1.3 Management process, functions and activities MGT162/UiTMJOHOR/2013
  • 8. 1.4 Managerial levels, skills and roles Top Managers Middle Managers First-Line Managers Nonmanageri al personnel Managerial Levels: MGT162/UiTMJOHOR/2013
  • 9. Manager By their level in the organization Top managers Middle manager First-line manager By the range of organization activities they are responsible Functional manager General manager Responsible for a single area of activity. E.g.: Finance manager, Marketing manager Responsible for more complex units that include many functional areas of activity. E.g.: Plant manager Type of Managers: MGT162/UiTMJOHOR/2013
  • 10. • There are 3 basic skills required by managers: 3 Basic skills Technical skills (T) Human skills (H) Conceptual skills (C) Management Skills: MGT162/UiTMJOHOR/2013
  • 11. Top Middle Lower H H H T T T C C C H Human skill T C Technical skill Conceptual skill Relative Skills Needed For Effective Performance At Different Levels Of Management MGT162/UiTMJOHOR/2013
  • 14. 1.5: Evolution of management thoughts Environmental factors influencing management thought Economic influences Social influences Political influences technological influences global influences MGT162/UiTMJOHOR/2013
  • 15. Chronological Development of Management Thought: MGT162/UiTMJOHOR/2013
  • 16. Focuses on the individual worker’s productivity Focuses on the functions of management Focuses on the overall organizational system Classical Perspective on management: MGT162/UiTMJOHOR/2013
  • 17. • Focus on the productivity of the individual workers. • 3 areas of focus: (I) Task Performance (II) Supervision (III) Motivation Scientific Management: Frederick W.Taylor (1856-1915) Scientific management: The Gilbreths  Frank Glibreth  Lilian Gilbreth MGT162/UiTMJOHOR/2013
  • 18. • Henri Fayol (1841-1925)was the first to recognize that successful managers had to understand the basic managerial functions. • Developed a set of 14 general principles of management. • Fayol’s managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations. Administrative Management: Henri Fayol (1841 – 1925) Fayol’s general principles of management 1. Division of work 2. Centralization 3. Authority 4. Scalar chain 5. Discipline 6. Order 7. Unity of command 8. Equity 9. Unity of direction 10. Stability of tenure 11. Interest of the organization 12. Initiative 13. Remuneration of personal 14. Esprit de corps
  • 19. • Focuses on the overall organizational system. • Bureaucratic management is based upon:  Firm rules  Policies and procedures  A fixed hierarchy  A clear division of labor Bureaucratic Management: Max Weber (1864 – 1920) A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior – the approach to management now referred to as “bureaucracy”. Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion. MGT162/UiTMJOHOR/2013
  • 20. Focused on rational behavior Classical Perspective Acknowledged the importance of human behavior Behavioral Perspective vs. Classical versus Behavioral Perspective MGT162/UiTMJOHOR/2013
  • 21. • Managers were being presented with more evidence that human behaviour has a significant impact on the actions of workers. • Follet concluded that a key to effective management was coordination • Hawthorne effect – the phenomenon whereby individual or group performance is influenced by human behaviour factors. • Theory X – advocates that a manager percives that subordinates have an inherent dislike of work and will avoid it if possible. • Theory Y- advocates that manager perceives that subordinates enjoy work and will again satisfaction from their jobs. Behavioral Perspective The Quantitative Perspective Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. 1. A decision-making focus – require some direct action on the part of management 2. measurable criteria – select some alternative course of action by making comparison 3. quantitative model – make use of mathematical symbols, equations and formulas 4. The use of computers MGT162/UiTMJOHOR/2013
  • 22. Systems Perspective: • An approach to problem solving based that attacks complex systems by breaking them down into their constituent elements MGT162/UiTMJOHOR/2013
  • 23. • 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 Contingency Perspective Blending Components into a Contingency Perspective
  • 24. • Joan Woodward’s Research • Discovered that a particular management style is affected by the organization’s technology. • Identified and described three different types of technology: • Small-batch technology • Mass-production technology • Continuous-process technology An Example of the Contingency Perspective MGT162/UiTMJOHOR/2013
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