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1. CHAPTER 1

19. CHAPTER 1

20. Managers
and
Development

21. The progress of a country depends
on how well it utilizes its capital,
natural resources, technology and
human resources.

22. In modern societies, these resources
are increasingly utilized by
specialized organizations &
institutions, both public & private,

23. which produce a large share
of the goods and services
needed by the society.

24. These organizations do not run by
themselves. They are managed by people.
It therefore follows that these
organizations must be run by qualified
managers if the resources which they
command are to be utilized effectively.

25. 30 years ago, Harbisonand Myerswrote:
“A country’s economic development may be limited by a
relative shortage of this critical resources. In many
countries, management is an even more critical factor in
industrialization than capital, and it is always more vital
to development than either labor or natural resources.”

26. Quality instead of
Quantity

27. They emphasized the quantitative
limitations on the supply of trained
managers in newly developing
country which have to be improved.

28. As we shall see, the quality of management in
the current environment is a function not
solely of the efficiency with which it utilizes
organizational resources but also of the
creativity and innovativeness of such
management in adapting the organization to its
environment.

29. Why is high Quality
Management needed in the
developing countries today?

30. One reason is that the poorer nations
have more limited supplies of capital
and other critical natural resources
needed for development .

31. The managers in such countries therefore
must use the available resources more
creatively and efficiently compared to
their counterparts in the more developed
countries.

32. Therefore. . .
What is
Management?

33. Management is to design and maintain an
internal environment in which people working
together in groups that can perform effectively
and efficiently towards the attainment of
group goals. This definition needs to be
expanded:

34. 1. As managers, people carry out
the managerial functions of
Planning, Organizing, Staffing,
Leading, and Controlling.

35. 2. Management applies
to any kind of
organization.

36. 3. It applies to managers
at all organization levels.

37. 4. The aim of all
managers is the same: to
create a surplus

38. 5. Managing is concerned with
productivity; this implies
effectiveness and efficiency.

39. Through this definition captures a central
aspect of all management activity, the
definition tends to portray the activity of
managers as being inwardly oriented, that is,
directed towards optimizing the internal
functioning of an organization

40. Management is viewed more broadly as the
direction and coordination of the human and
nonhuman resources of an organization to
achieve outputs which meet the needs of
external users.

41. In this view of management, the basic
tasks of manager at the different
levels in the organization are
essentially similar.

42. Managers at the top have the responsibility of
relating the entire organization to its external
clientele. Managers of sections or subunits of the
organization relates the activities of their units
either to external clientele or to other units of
the organization which utilize the outputs of their
units.

43. Lets watch this
video

45. Who are
Managers?

46. The term “MANAGER” is another widely used term.
We limit the use of the word Manager to refer to
those persons responsible for directing the
activities of other people. While it is true that
people also “manage”; materials, machines, and
other physical processes,

47. Now who are
MANAGERS?

48. Manager
-is a person who has responsibility for
the activities of other people in an
organization.

49. The Tasks of a Manager
Or Managerial Functions

53. It involves identifying, subdividing,
grouping, and coordinating the
various activities required to achieve
the objectives of the institution.

55. It involves the recruitment, selection,
assignment, and development of the
various kinds of human resources
required by the organization.

57. This is the process of communicating
with and influencing subordinates
towards the achievement of
organizational goals.

59. This is the function of monitoring
performance and undertaking corrective
actions to ensure the attainment of
predetermined goals and objectives of the
organization.

60. Identified by MINTZBERG

61. Henry Mintzberg lists these roles as follows:
• Interpersonal Roles
• Informational Roles
• Decisional Roles

62. I. Interpersonal Roles

63. Interpersonal Roles is subdivided into three (3) types
A. The Figurehead Role

64. Role which is assumed by managers
when they represent their respective
units in the outside world in
ceremonial and civic activities.

65. B. Leadership Role

66. Is the role played by managers when
they initiate and coordinate activities
in their units.

67. C. Liaison Role

68. Is needed by unit heads when they
interact with persons in other units
within and outside the organization.

69. II. Informational Roles

70. Informational Roles is subdivided into three (3) types
A. Monitor Role

71. People in managerial positions are centrally located
in the flow of information since information from
various parts of the organization, both in the upper
and the lower levels, converge in a managers office
and allow him to monitor activities occurring
outside his office.

72. B. Disseminator Role

73. Since information flowing various sources
converge in managerial positions,
managers tend to have a key role in
transmitting and disseminating such
information to other parts of the
organization.

74. C. Spokesperson Role

75. The managers leadership positions in the
organization require them to represent
and speak for their units vis-à-vis (Face to
face) other units of the organization and
outsiders.

76. III. Decisional Roles

77. Decisional Roles is subdivided into four (4) types
A. Entrepreneurial Role

78. Managers play a key role in the
identification of new opportunities and
the development of these into new
products, services, methods of activities
within their organizations

79. B. Problem Solver

80. Managers are called upon to identify
solutions and to take action to overcome
to continuous stream of problems which
crop up in the day to day operation of the
institution.

81. C. Resources Allocator

82. Managers exercise key role in the
distribution of funds, personnel, materials
and other organizational resources among
competing uses in the organization.

83. D. Negotiator

84. Since managers are often dependent on other
persons, both within and outside the
organization, over whom they exercise no
authority. Managers are frequently involved in
negotiation activities which have a key impact
on the performance of their units.

86. Given the varied nature of the activities which
managers direct, it is to be expected that
managers would need equally varied
capabilities and skills. It is however, possible to
classify the range of capabilities and skills
required of managers into three board types:

87. I. Interpersonal/
Human Skills

88. Since directing the activities of
people in organizations is a central
aspect of the job of managers, they
need to be skilled in human relations.

89. II. Technical Skills

90. Managers need to have the tools, methods,
and techniques of the body of knowledge
appropriate to the activities which they
manage. Thus, financial managers, production
managers, personnel managers, etc., all need
the tools and skills relevant to their respective
fields.

91. III. Conceptual Skills

92. Organizations frequently perform many different types
of activities and functions which are interrelated in
different ways. Managers in such organizations need the
ability to abstract from the concrete to be able to picture
the larger systems to which smaller activity units belong,
and the many different ways in which the subsystems
are or could be related to each other.

93. Top Level
Managers
Middle- Level
Managers
Lower Level
Managers or the First
Level Supervisors
Planning
Organizing
Leading
Controlling
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95. The central characteristics of
managing business enterprises is that
the resources of the organization or
firm are used to generate a surplus or
profit.

96. In capitalist societies, private enterprises are expected to
produce the bulk of the goods and services needed by
society in return for the possibility of earning profits. In
capitalist systems, therefore, maximization of stockholder
or owner wealth through profitable enterprise
operations is regarded as a major responsibility of the
managers of enterprise.

97. Thus, in addition to stockholders, enterprise managers
are thought to have responsibilities to the following
parties as well:
• The firm’s customers
• The firm’s employees & laborers
• The firm’s suppliers

98. Businessmen shall recognize in
their decision making the interest
of the general public and shall:

99. 1. Take regular stock of their response to
the basic needs of society and thus ensure
that these needs are taken into account in
all policy-making decisions;

100. 2. Do their best to ensure that the way they
deploy their resources benefits society in
general and does not conflict with the
reasonable needs and aspirations of the
communities in which they operate;

101. 3. Pay proper regard to the environmental and
social consequences of their business activity, with
special attention to the duty of renewing resources
where possible and minimizing waste and pollution
and not sacrifice safety or efficiency in the interest
of short term profitability.

102. 4. As corporate citizens make such
contributions as their resources will allow,
to research, development, and
application of indigenous technology, and
to the financing of social development.

103. 5. Consider the human and
social costs of
mechanization technology

104. 6. Establish a policy allowing
employees, within reasonable
limits, to contribute to the public
and community service during the
work time;

105. 7. Establish a policy regarding conflicts of
interest based on the principle that decisions
should be made in the best interest of the
business enterprise, and decision makers
should be on their guard against allowing
personal considerations to distort their
judgement; and

106. 8. Not tolerate any form of illegal
data gathering or any form of
inducement that tends to distort
normal commercial judgement.

107. Entrepreneurs and
Development

108. Definitions of Entrepreneurs
-The entrepreneur as the founder of an
enterprise
-The entrepreneur as a risk taker
-The entrepreneur as an innovator

109. Entrepreneurship
as
Enterprise Founder

110. The earliest conception of the entrepreneur in
classical economics is that he assembled the three
factors of production (LAND, LABOR and CAPITAL)
to form a business enterprise. The entrepreneur is
thus simply the founder of a new enterprise, and
he (Entrepreneur) was considered the fourth factor
of production.

111. Entrepreneurship
as Risk Taker

112. The definition of the entrepreneur as a risk taker implies that
he must not only found the business but must assume the risk
in the venture by contributing something; (Capital), to it.
Under this second definition the entrepreneur is a risk taker
because he puts his capital into a business whose success is
never certain. Moreover, the CAPITAL which he invest need not
be seen only in terms of financial capital or other physical
assets but also in terms of the time and effort he devotes to
establish and manage the new venture.

113. Entrepreneurship
As Innovator

114. The entrepreneur creates economic progress
essentially by innovating. These innovations,
which he called (New Combinations), disrupted
the existing market equilibrium and create new
industries or businesses.

115. The above three functions of founding, risk taking, and
innovating provide us a more adequate way of thinking
about entrepreneurship. In particular, the function of
innovation is an important aspect of entrepreneurship in
our time. One does not contribute much to society if one
simply duplicates other businesses which already exist.

116. The entrepreneurs who are awarded with the
greatest financial returns are those whose
businesses represent successful innovations- either
they market a new product or service not
previously available, or they provide old products
or services to the market in new and better ways.

117. Business Managers
and Entrepreneurship

118. With entrepreneurship as above defined, a
distinction is often made between the economic
function of entrepreneurs as against that of
business managers. In contemporary business
organizations however, the need for innovation as a
way of increasing the profitability of the firm
appears to be well recognized.

119. The End.

120. Quiz # 1 in Principles of Management
1. is to design and maintain an internal
environment in which people working together in
groups that can perform effectively and efficiently
towards the attainment of group goals. (1 pt)

121. 2. 5 Managerial Functions
(5pts.)

122. 3. A person who has
responsibility for the activities of
other people in an organization.
(1pt)

123. 4. This is the function of monitoring
performance and undertaking corrective actions
to ensure the attainment of predetermined
goals and objectives of the organization. (1pt)

124. 5. It involves the recruitment, selection,
assignment, and development of the various
kinds of human resources required by the
organization. (1pt)

125. 6. It involves the choice of the objectives to be
pursued, the means to achieve them, and
allocating the resources of the organization.
(1pt)

126. 7. It involves identifying, subdividing, grouping,
and coordinating the various activities required
to achieve the objectives of the institution. (1pt)

127. 8. This is the process of communicating with
and influencing subordinates towards the
achievement of organizational goals. (1pt)

128. 9. In your own opinion, Why is high Quality
Management needed in the developing
countries today?
(4pts.)

129. 10. 3categories of
Managers Roles (3pts)

130. 11. Three (3) subdivided
types of Interpersonal Roles
(3pts)

131. 12. Three (3) subdivided
types of Informational Roles
(3pts)

132. 13. Four (4) subdivided
types of Decisional Roles
(4pts)

133. Answer

134. 1.Management
2.Planning
Organizing
Staffing
Directing
Controlling

135. 3. Manager/s
4. Controlling
5. Staffing
6. Planning

136. 7. Organizing
8. Directing
9. Essay
10.
Interpersonal Roles
Informational Roles
Decisional Roles

137. 11.
The Figurehead Role
Leadership Role
Liaison Role
12.
Monitor Role
Disseminator Role
Spokesperson Role

138. 13.
Entrepreneurial Role
Problem Solver
Resources Allocator
Negotiator

139. How's your Score?

140. Assignment

141. • Entrepreneurs and Development
• Business Managers and
Entrepreneurs