Topic  Introduction to

1 Management

LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Differentiate between managers and operative employees;
2. Explain organisation management and the four management
processes;
3. Explain the three levels of management and the responsibilities of
each level;
4. Describe the three categories of managerial roles;
5. Identify the skills that a manager should possess; and
6. State the relationship between management and other disciplines.

 INTRODUCTION
When we learn about management, we cannot omit the study of organisational
concepts. Directly or indirectly, we are all members of an organisation. We may
not be aware that we are all a part of an organisation like a college, a sports team,
the army or a musical group. In fact, our own family structure is also an
organisation and a country like Malaysia is a huge organisation. With this kind of
understanding, it is best that we first understand the concept of an organisation.

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2  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.1 ORGANISATIONS
Every organisation comprises a systematic collection of people to achieve a
common purpose. The Employees Provident Fund (EPF), the PilgrimsÊ Fund
Management Board (LUTH) and Hong Leong Bank (HLB) manage our funds;
Universiti Putra Malaysia (UPM) and Kasturi College provide educational
services; Matsushita (M) Bhd, supplies electrical goods; and Malaysia Airlines
System (MAS) provides flight services to all organisations. All these are
categorised as organisations as each of these have three common features, i.e.
purpose, people, and a systematic structure. We will now discuss in detail the
relationship among these three features.

1.1.1 Purpose
All organisations have a purpose or goal. This purpose will vary from one
organisation to the other. For example, the goal of MAS is to provide air
transportation services. The goal of the Selangor Football Team competing in the
Perdana League is to win the league championship. Without a purpose or aim,
there is no justification why an organisation should exist.

1.1.2 People
The purpose or aim can only be achieved if there are people handling it. Workers
and managers need to make decisions about the goals of the organisation and
endeavour to realise its aims or goals.

1.1.3 Systematic Structure

Organisations will create a systematic structure to control the behaviour of their
members. Steps used to create a systematic structure include the organisational
rules and decorum that must be adhered to by the members; as well as the
empowerment of some members with authority over others. In fact, the
determination of tasks so that organisational members understand their
respective responsibilities can be looked upon as the creation of a systematic
organisational structure.

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 TOPIC 1 INTRODUCTION TO MANAGEMENT  3

SELF-CHECK 1.1

What is the definition of „organisation‰?

An organisation is an entity comprising______________ collected
systematically to achieve a _____________________________________.

1.2 DIFFERENCES BETWEEN MANAGERS AND

OPERATIVE EMPLOYEES
You have just been given a clear picture about organisations. Another concept
that you should know before we learn about management, is the concept of
manager and operative employee, and the differences between the two. We want
to learn about management so that directly or indirectly, we can all aspire to be
managers. We have to learn about management because we are not born as
managers but we can be trained to be one. Therefore, it is vital that we
understand this topic and the differences between managers and operative
employees.

Operative employees are workers who are responsible for carrying out tasks
without supervising the tasks of others.
A manager is a person who directs the activities of other employees in an
organisation.

1.3 LEVELS OF MANAGEMENT

In any organisation, particularly a large organisation, there are several layers of
management, each of which has its own area of authority. As such, managers in
an organisation represent various levels in the organisational hierarchy, which in
turn differentiates their levels. These levels of managers are first-line managers,
middle managers and top managers.

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4  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.3.1 First-line Managers

First-line managers are the lowest level of managers in an organisation. These
managers only give instructions to operative employees and do not supervise
other managers. One example of first-line managers is supervisors in an air-
conditioning plant who supervise their operative employees carrying out
installation work of air-conditioning equipment. During the British Colonial era,
these supervisors were known as „mandur‰ or „heads‰ who supervised rubber
tappers in estates. Currently, they are known as supervisors.

1.3.2 Middle Managers

The middle managers direct the activities of other managers and sometimes even
instruct operative employees. Their position is between first-line managers and
top management. Their main responsibility is to interpret in detail the goals set
by top managers for first-line managers, so that the goals can be properly
accomplished. A clear example of this mid-level position is factory managers in
electronic firms.

1.3.3 Top Managers

Top managers, comprising a small group of executives, are responsible for the
performance of an organisation as a whole. They are responsible for deciding on
the way forward or the direction of the organisation, and for planning
organisational policy which will affect every individual in the organisation.
Common job titles are „vice-president‰, „president‰, and „chief executive
officer‰.

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 TOPIC 1 INTRODUCTION TO MANAGEMENT  5

SELF-CHECK 1.2

1. State four (4) levels of managers and operative employees in this

pyramid:

2. What are some differences among managerial groups? List a few

examples.

1.4 WHAT IS MANAGEMENT?

With an understanding of what an organisation is and of the members involved
in it, we can now try and understand what management is. Management is
defined as a process to achieve a goal in an efficient and effective manner. The
keywords in this definition are process, efficiency and effectiveness.

Efficiency means carrying out a task in the right way. Effectiveness means
carrying out the right task or the right job. Although efficiency and effectiveness
are two different concepts, in management, both these terms are closely related.
For example, Hewlett-Packard can produce the most sophisticated printing
cartridges for its printers without calculating input costs. This means this
company is effective but not at all efficient. Although it has achieved its goals, it
has done this at a very high cost.

Our inference:

„Good management emphasises goal achievement (effectiveness) and

achieves the goals in the most efficient way.‰

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6  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.5 THE MANAGEMENT PROCESS

In the preceding subtopic, management was defined as a process. What then is
the management process?

Process is a planned way of carrying out a task. Management is defined as a

process as all managers are involved in activities that are interconnected, with
the aim of accomplishing set objectives. This process will be divided into several
separate sections or functions which form the overall process. The management
functions can be classified into the following: planning, organising, leading and
controlling. Each function is elaborated in the following subtopics.

1.5.1 Planning
Planning means managers predetermine goals and their action plans. Planning
includes defining organisational goals, by addressing several issues, such as
determining the main activity of the organisation and its purpose, and
formulating comprehensive strategies to achieve organisational objectives
through a thorough plan and not one that is based on impulse or gut-feeling.

1.5.2 Organising
Organising means managers coordinate human and material resources or
organisational resources to accomplish a goal. Organising includes activities
which determine the tasks that need to be carried out, assigning the personnel to
each task, deciding how the task must be done, reporting mechanisms and
decision making.

1.5.3 Leading
Leading means the managers direct and influence their subordinates to carry out
the tasks assigned so that goals can be achieved. By creating a conducive work
environment, managers encourage their subordinates to be fully committed.

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1.5.4 Controlling
Controlling is defined as the process whereby managers ensure that the
organisation is moving towards achievement of set objectives.

Controlling is the process of monitoring-comparing results-correcting. If there is

some deviation from the set objectives, the task of a manager is to identify the
cause and take corrective action as needed.

Throughout the duration of this management course, we will discuss

management concepts based on the four management functions.

ACTIVITY 1.1

Can you attempt to draw a mind map of the functions of the

management process before looking at Figure 1.1?

Figure 1.1: Management process

Source: Robbins & Decenzo (2006)

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8  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.6 MANAGERIAL ROLES

Managers play different roles. The closest example of a manager is yourself as
you also play several roles. Sometimes, you play the role of a son/daughter to
your parents; you are also a parent to your child; or a spouse. Henry Mintzberg,
in 1973, postulated that managers have 10 roles which can be classified into three
groups: interpersonal roles; informational roles and decisional roles, which are
summarised in Table 1.1.

Table 1.1: Managerial Roles

Role Explanation Activity

Interpersonal Managerial Role
Figurehead As a symbolic head, carrying out Ceremonial, responsible for
routine consultancy and social receiving visitors, attending
work. wedding of a subordinate,
taking clients for lunch.
Leader Responsible for encouraging Responsible for encouraging
subordinates. Carries out duties subordinates. Carries out duties
of establishment and training. of establishment and training.
Liaison Responsible for networking with Carries out all duties related to
external parties. external parties.
Informational Role
Monitor Seeks and receives the latest Reads reports and printed
information for detailed materials and maintains
understanding of the organisation personal liaison.
and the environment; serves as the
referral centre for parties within
and outside the organisation.
Disseminator Disseminates information from Holds meetings, sends written
the workers to other workers or electronic memos.
within the organisation.
Spokesperson Disseminates information about Holds annual general
plans, policies and organisational meetings, provides
action to external parties. information to the media.

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Decisional Role
Entrepreneur Seeks opportunities for the Organises strategic and
organisation within the opportunistic sessions in
environment. Launches projects handling crises.
which initiate changes.
Disturbance Responsible for handling events Organises strategic sessions to
Handler beyond normal control (such as design new programmes.
strikes and bankruptcy of clients).
Resource Responsible for allocating resources Carries out all activities related
Allocator within the organisation. to budgeting and programmes
Implements organisational workersÊ tasks.
decisions.
Negotiator Responsible for large-scale Represents the organisation in
negotiations. workersÊ union negotiations
and with suppliers.

ACTIVITY 1.2

Create a diagram about the relationship among the three main

managerial roles as well as the sub-roles.

For further information about Mintzberg, you are advised to access the
following link:

http://www.henrymintzberg.com/_about.htm

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10  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.7 LEVELS OF MANAGERIAL SKILLS AND

COMPETENCIES
It is a fact that every manager, regardless of the size or purpose of the
organisation, must carry out the four management functions at varying levels.
The question is: what are the critical skills that a competent manager must
possess? A management scholar, Robert L. Katz, has identified three essential
management skills. Many critical skills are necessary to ensure managerial
success. Try and understand yourself by finding out if you possess the skills
discussed in the following subtopics.

1.7.1 Conceptual Skills

Conceptual skills refer to the mental ability to analyse and diagnose a complex
situation. It assists managers to see how all interests and activities of the
organisation are consolidated so that the manager can visualise the complete
picture. This skill will help the manager make an informed decision.

1.7.2 Interpersonal Skills

Human skills refer to the ability to work, understand, lead and motivate
subordinates either individually or in groups. As managers work with other
people, they need to have interpersonal communication skills. This is vital for
managers to obtain the involvement and commitment of workers.

1.7.3 Technical Skills

Technical skills refer to the ability of a manager to utilise specialised knowledge
and expertise. This tends to vary by level of management responsibility. For top
managers, their skills focus on industrial aspects and a complete understanding
of the work process. For middle and lower management, detailed knowledge of
the work is vital, including finance, human resources, production, and other
areas.

Before you proceed with your reading, attempt to answer the following question:
What does Katz say about the importance of these three skills for managers?

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 TOPIC 1 INTRODUCTION TO MANAGEMENT  11

1.7.4 What does Katz Say?

Katz says that although all three skills are essential for effective management, their
relative importance depends on the level of management in the organisation.

Technical skills are very important at the lower management level and become
less important at top management level. For example, a manager at a building
site must have technical skills as he is required to handle building problems that
may arise on a daily basis.

Conceptual skills become more important as managers go up the management

ladder. The higher the position on the management hierarchy, the greater will be
the managerÊs involvement in wider and long-term decision-making.

Interpersonal skills are essential for all levels of management, because as

managers, we need to work with other people and involve them to complete the
task at hand.

Now let us take a look at the relationship between skills and types of management
more specifically (refer to Table 1.2). For example, for first-line management, the
most used skill is technical, followed by interpersonal skills and some conceptual
skills. This is different for top management, whereby the most essential skill is
conceptual, followed by interpersonal skills and some technical skills.

Table 1.2: Relationship between Skills and Managerial Levels

First-line Middle Top Management

Management Management

Relative skills that

are needed for Conceptual Conceptual
Conceptual
effective
performance at
difference levels of Interpersonal Interpersonal
management
Interpersonal
Technical Technical

SELF-CHECK 1.3

State three types of skills that a manager must have.

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12  TOPIC 1 INTRODUCTION TO MANAGEMENT

1.8 RELATIONSHIP BETWEEN MANAGEMENT

AND OTHER DISCIPLINES
Normally, there is continuity between one field of knowledge and another, and
courses studied often are interconnected. As such, steps have been taken to link
the study of management with other fields like economics, psychology and
sociology. The rationale behind this move is to allow us to visualise the
relationship between management and other fields and assimilate the role played
by other fields in managerial aspects. This kind of understanding will help us to
become more effective managers. Six other fields will be compared to the field of
management in Table 1.3.

Table 1.3: Relationship between Other Disciplines

and the Discipline of Management

Discipline Relationship
Anthropology This is the study of society. It helps us learn about mankind and
their activities. Anthropologists who study the culture and
environment help us to understand the differences of culture,
attitude, and behaviour among people of various nations and
organisations.
Economics Economics emphasises the provision and allocation of
resources. It gives an idea about economic changes and
organisational roles in facing globalisation.
Philosophy Philosophy is the study of values and ethics. Ethics control
human behaviour and ensure the right behaviour is adhered to.
Nowadays, ethical issues mould our organisation.
Political Science Political Science is the study of individual and group behaviour
within the ambit of the political environment. The study
includes conflicts, empowerment, power manipulation and
individual interests.
Psychology Psychology aims to measure, explain and sometimes change the
behaviour of mankind. Psychology basically attempts to
understand individual behaviour.
Sociology Sociology is the study of humans and their relationship with
each other. It includes social changes as a result of globalisation,
culturalisation, changing roles of the genders, etc.

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 TOPIC 1 INTRODUCTION TO MANAGEMENT  13

 Good management requires understanding of organisational and

management concepts as well as the terms commonly used at the workplace.
The capability to comprehend the concepts and recognise the different roles
of managers at various management levels will facilitate understanding of
what is expected from managers. These factors will help managers to perform
better.

 Excellent managers are those who not only could grasp the concepts but are
also able to apply them to various work conditions and situations effectively
and efficiently.

Robbins, S., & Decenzo, D. (2006). Fundamentals of management: Essential

concepts and applications (4th ed.). Upper Saddle River, NJ: Prentice Hall.

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