CHAPTER 1 INTRODUCTION TO MANAGEMENT

LEARNING OUTCOMES After studying this chapter, you should be able to: Define organization and management. Explain the importance of management. Describe the management process or functions of P-O- L-C. Describe the levels of management, and management skills. Understand the types of managers, and describe their roles and the changing nature of their work. Know the characteristics of a contemporary manager. Discuss the trials of management.

1.1 INTRODUCTION For most of our lives, we are members of one organization or another. These organizations are put and kept together by a group of people who see that there are benefits available from working together towards a common goal or goals. This chapter introduces management principles and theories, and the challenges of applying these principles and theories in today’s business environment.

1.2 DEFINITION OF AN ORGANIZATION An organization is defined as a systematic arrangement of people brought together to accomplish some specific purpose. Characteristics of an organization: A distinct goal and purpose Comprises people working together to accomplish certain objectives A systematic structure An aim to serve society

1.3 DEFINITION OF MANAGEMENT Classical definition of Management: Mary Parker Follett, one of the earlier theorists of management, defined management as the art of getting things done through people. Broad definition of Management: Management can be defined as the process of consolidating and managing resources effectively and efficiently in an effort to achieve the goals of the organization.

1.4 IMPORTANCE OF MANAGEMENT Management achieves organizational goals Management efficiently utilizes resources Management is essential for prosperity of society Management addresses the challenges of management Management establishes equilibrium

1.5 MANAGEMENT PROCESS A process is a way of doing things, which is on-going (continuous) and systematic. Management is a process which emphasizes that all managers, regardless of their specific aptitudes or skills, engage in certain interrelated functions to achieve certain desired goals.

1.5.1 Management Functions Planning Organizing the process of defining goals, establishing strategies and developing action plans to coordinate activities towards accomplishing organizational goals. Organizing the process of determining what needs to be done, how it will be done and who is to do it.

1.5.1 Management Functions (cont.) Leading the process of directing and influencing all organizational members involved, motivating them and resolving conflicts towards achieving organizational goals. Controlling the process of monitoring activities to ensure that they are accomplished as planned.

1.6 MANAGERS AND MANAGEMENT The term ‘manager’ refers to someone who is responsible for carrying out the four main activities of management in relationships over a specific time. One way to grasp the complexity of management is to understand that managers play important roles at different levels in an organization. These managers carry out a wide range of organizational activities related to an organization’s success.

1.6.1 Levels of Management Middle level management Top level management responsible for the overall management of an organization They are called executives. They establish operating policies and guide the organization’s interaction with its environment. Middle level management direct the activities of lower level managers and sometimes those of operating employees direct activities which implement their organization policies and balance organizational demands on managers with the capacities of their employer

1.6.1 Levels of Management (cont.) Lower level management responsible for the work of non-management employees, but do not supervise other managers and are also directly responsible for the production of goods or services

1.6.2 Skills of Management Technical Skills Human Skill ability to utilize job specific knowledge of tools, techniques and procedures which are specific to a particular field to perform a task Human Skill ability to work effectively with one’s own work group as well as others in an organization

1.6.2 Skills of Management (cont.) Conceptual Skill ability to analyze and diagnose a situation to determine cause and effect. This skill is also defined as an ability to process information from both internal and external environments of an organization and determine related implications

1.6.3 Scope and Responsibilities of Managers General Manager responsible for managing several different divisions or departments makes decisions across the different functions and ensures that staff rewards are tied to the performance of entire units Functional Manager in charge of one major function, for instance a department in an organization can also be considered someone who manages a work unit that is grouped based on specific functions

1.6.4 Roles of Managers Interpersonal Informational Decisional Figurehead Liaison Leader Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator Negotiator

1.7 THE NEW MANAGER AND LEADER PROFILE The characteristics of today’s managers include: No longer considered ‘the boss’, instead act as sponsors, team leaders or internal consultants. No longer in control from the top of the pyramid, neither try to control actions from the side-line. Empowering individual employees to do what is necessary to achieve goals. Making sure employees have the resources to get jobs done.

1.8 TRIALS OF MANAGEMENT Change is inevitable; today’s managers must view change as a constant feature in their lives. Managers leading organizations must continuously operate in a context that is very complex and dynamic, forcing them to continually adjust to these changing conditions. Some of the prevalent and concurrent trials of management are: Internet and information technology Globalization Diversity and intellectual capital Ethical practice and social responsiveness