Chapter 1 Introduction To Management and Organisation

Chapter 1
Introduction to Management and

Organizations
1
What Is An Organization?
• An Organization Defined
– A deliberate arrangement of people to
accomplish some specific purpose (that
individuals independently could not accomplish
alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1–2
Exhibit 1–9 Characteristics of Organizations

1–3
Why Study Management?
• The Value of Studying Management

– The universality of management
• Good management is needed in all organizations.
– The reality of work

• Employees either manage or are managed.
– Rewards and challenges of being a manager

• Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
• Successful managers receive significant monetary
rewards for their efforts.
1–4
Exhibit 1–10 Universal Need for Management

1–5
What is Management?
 Definition: Coordinating work activities so
that they are completed efficiently and
effectively with and through other people
 Efficiency: getting the most output from
the least input
 Effectiveness: completing activities so that
the organization’s goals are attained.
Management is…
Efficiency
Getting work
done through
others Effectiveness
What Is Management?
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output
for the least input
– Effectiveness
• “Doing the right
things”
– Work activities that
attain organizational
goals
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc. 8
Who Are Managers?
• Manager
– Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
(Robbins, et. Al, 2006, p. 7)
Types of Managers
Exhibit 1.2 Managerial Levels
Top
M anage rs
M iddle M anage rs
Firs t-Line M anage rs
Nonm anage rial Em ploye e s
TYPES OF MANAGERS
• FIRST-LINE MANAGERS- often called supervisors stand

at the base of the managerial hierarchy
• MIDDLE MANAGERS- heads of various departments and
organise human and other resources to achieve
organizational goals
• TOP MANAGERS- set organizational goals, strategies to
implement them and make decisions
Levels of Management
Top Level Management CEO

COO
CIO
Middle Level Management

General Mgr
Plant Mgr
Regional Mgr
First-Line Office Manager

Management Shift Supervisor
Department Manager
Team Leader
Top Managers
Responsible for…
Creating a context for change
Developing attitudes of commitment

and ownership in employees
Creating a positive organizational

culture through language and action
Monitoring their business environments

Middle Managers
Responsible for…
Setting objectives consistent with top

management goals, planning strategies
Coordinating and linking groups,

departments, and divisions
Monitoring and managing the performance

of subunits and managers who report to them
Implementing the changes or strategies

generated by top managers
First-Line Managers
Responsible for…
Managing the performance of

entry-level employees
Teaching entry-level employees

how to do their jobs
Making schedules and operating plans based on

middle management’s intermediate-range plans
What Do Managers Do?
Three Approaches to describe:

• Management Functions
• Management Roles (Mintzberg)
• Management Skills
Exhibit 1.4 Management Functions
Planning Organizing Leading Controlling

Lead to
Defining goals, Determining Directing and Monitoring
establishing what needs motivating all activities Achieving the
strategy, and to be done, involved parties to ensure organization’s
developing how it will and resolving that they are stated
sub-plans to be done, and conflicts accomplished purpose
coordinate who is to do it as planned
activities
What Do Managers Do? (cont’d)
• Mintzberg’s Management Roles
Approach
(Robbins, et. al., 2006, Exhibit 1.5, p. 12)
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator,
spokesperson
– Decisional roles
• Entrepreneur, disturbance handler,
resource allocator, negotiator
INTERPERSONAL ROLE
• Figurehead- ethical guidelines and the principles of

behavior employees are to follow in their dealings with
customers and suppliers
• Leader- give direct commands and orders to subordinates
and make decisions
• Liaison-coordinate between different departments and
establish alliances between different organizations
INFORMATIONAL ROLE
• Monitor- evaluate the performance of managers in

different functions
• Disseminator-communicate to employees the
organization’s vision and purpose
• Spokesperson- give a speech to inform the local
community about the organization’s future intentions
DECISIONAL ROLE
• Entrepreneur- commit organization resources to develop

innovative goods and services
• Disturbance handler- to take corrective action to deal with
unexpected problems facing the organization from the
external as well as internal environment
• Resource allocator- allocate existing resources among
different functions and departments
• Negotiator- work with suppliers, distributors and labor
unions
Exhibit 1.6 Skills Needed at Different
Management Levels
Top Conce ptual

M anage rs Sk ills
M iddle Hum an
M anage rs Sk ills
Low e r-le ve l Te chnical

M anage rs Sk ills
Im portance
TECHNICAL SKILLS
A persons’ knowledge and ability to make effective use of

any process or technique constitutes his technical skills.
For eg: Engineer, accountant, data entry operator, lawyer,
doctor etc.
HUMAN SKILLS
An individuals’ ability to cooperate with other members of

the organization and work effectively in teams.
For eg: Interpersonal relationships, solving people’s problem
and acceptance of other employees.
CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to

rationally process and interpret available information.
For eg: Idea generation and analytical process of information.
Exhibit 1.8 The Changing
Organization
Traditional New Organization
• Stable • Dynamic
• Inflexible • Flexible
• Job-focused • Skills-focused
• Work is defined by job positions • Work is defined in terms of tasks to be
• Individual-oriented done
• Permanent jobs • Team-oriented
• Command-oriented • Temporary jobs
• Managers always make decisions • Involvement-oriented
• Rule-oriented • Employees participate in decision
making
• Relatively homogeneous
workforce • Customer-oriented
• Workdays defined as 9 to 5 • Diverse workforce
• Hierarchical relationships • Workdays have no time boundaries
• Work at organizational facility • Lateral and networked relationships
during specific hours • Work anywhere, anytime
Exhibit 1.9 Challenges Impacting
the Manager’s Job
Ethics
Knowledge
Management Diversity
Manager
Innovation Globalization
Customers E-Business
Challenges to Managing
• Ethics
– Increased emphasis on ethics education in
university and college curriculums
– Increased creation and use of codes of ethics by
businesses
• Workforce Diversity
– Increasing heterogeneity in the workforce
• More gender, minority, ethnic, and other forms of
diversity in employees (cultural values important)
• Biggest immediate issue? (aging pop.)
Challenges to Managing (cont’d)
• Globalization
– Management in international organizations
– Political and cultural challenges of operating in a
global market
• E-business (electronic business)

– The work performed by an organization using
electronic linkages to its key constituencies
– E-commerce: the sales and marketing component
of an e-business
• Importance of Customers
– Customers have more opportunities than ever
before
– Delivering consistent high-quality service is
essential
– Managers need to create customer-responsive
organizations
• Innovation
– Doing things differently, exploring new territory,
and taking risks
– Managers need to encourage all employees to be
innovative
• Knowledge Management
– The cultivation of a learning culture where
organizational members systematically gather
and share knowledge with others in order to
achieve better performance
• Learning Organization
– An organization that has developed the capacity
to continuously learn, adapt, and change
Exhibit 1.11 Learning Organization Vs.
Traditional Organization

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Chapter 1

Introduction to Management and

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

• The Value of Studying Management

– The reality of work

– Rewards and challenges of being a manager

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

• FIRST-LINE MANAGERS- often called supervisors stand

Top Level Management CEO

Middle Level Management

First-Line Office Manager

Creating a context for change

Developing attitudes of commitment

Creating a positive organizational

Monitoring their business environments

Setting objectives consistent with top

Coordinating and linking groups,

Monitoring and managing the performance

Implementing the changes or strategies

Managing the performance of

Teaching entry-level employees

Making schedules and operating plans based on

Three Approaches to describe:

Planning Organizing Leading Controlling

• Figurehead- ethical guidelines and the principles of

• Monitor- evaluate the performance of managers in

• Entrepreneur- commit organization resources to develop

Top Conce ptual

Low e r-le ve l Te chnical

A persons’ knowledge and ability to make effective use of

An individuals’ ability to cooperate with other members of

Ability of an individual to analyze complex situations and to

• E-business (electronic business)

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