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Subject: Management

Chapter: Introduction to Management and

Organizations

Ch-01
By
Syed Zohaib Hassan Kazmi

Recommended Book: Management by Stephen p. Robbins and Mary Coulter 9 th edition

Reference book: Management by Bartol , Enhanced edition

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 LEARNING OUTLINE

Who Are Managers?

• Explain how managers differ from non-managerial employees.
• Describe how to classify managers in organizations.
What Is Management?
• Define management.
• Explain why efficiency and effectiveness are important to management.
What Do Managers Do?
• Describe the four functions of management.
• Explain Mintzberg’s managerial roles.
• Describe Katz’s three essential managerial skills and how the importance of these
skills changes depending on managerial level.
• Discuss the changes that are impacting managers’ jobs.
• Explain why customer service and innovation are important to the manager’s job.
What Is An Organization?
• Describe the characteristics of an organization.
• Explain how the concept of an organization is changing.
Why Study Management?
• Explain the universality of management concept.
• Discuss why an understanding of management is important.
• Describe the rewards and challenges of being a manager.

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 Management (Key Concepts)
 Organization:
 People working together and coordinating their actions to achieve specific
goals.
 A social unit of people that is structured and managed to meet a need or to
pursue collective goals. (business dictionary )
 Goal:
 A desired future condition that the organization seeks to achieve.
 Management:
 Management is a process of using organizational resources to achieve the
organization’s goals
 Resources are organizational assets and include:
 (Man, Machinery, Materials, Money, etc)
 Manager –
 A person responsible for controlling or administering an organization or
group of staff. Or
 Someone who coordinates and oversees the work of other people so that
organizational goals can be accomplished

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 Organizational Performance
 What constitutes high performance in an organization? The answer is high
performance can be achieved by two dimensions (effectiveness and efficiency.
 in order to be a manager, a person must know the best ways to make a business be
more efficient and more effective. This is one of the most important things that a
manager can do. So, efficiency and effectiveness are important to management
because they are the major goals that a manager must strive to achieve
 Efficiency - getting the most output from the least amount of inputs
 “doing things right”
 concerned with resources
 Achieving the objectives in time
 Manager must have ability to make the best use
of available resources in the process of achieving goals
 Effectiveness - completing activities so that organizational goals are
attained
 “doing the right things”
 concerned with ends
 Achieving the objectives on time
 Manager must have ability to choose appropriate goals
and achieve them.
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Effectiveness and Efficiency in
Management

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 What is Management?
 The process of effectively and efficiently planning, organising,
leading and controlling people to achieve the organisation’s goals
and objectives whereas balancing the demands and pressures of
the external environment.

Organisational view of the ongoing Management Process

Company
Goals

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 Management Defined

1 Management is the process of achieving goals and objectives

effectively and efficiently through and with the people.

2 "Management is a process of designing and maintaining an

environment in which individuals work together in groups to
effectively and efficiently accomplish selected aims".

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 Management Defined (con…)

Management is the process of achieving organizational goals and objectives

3 effectively and efficiently by using management functions i.e.
 Planning
 Organizing
 Staffing
 leading
 Controlling

Management is a set of activities directed at an organization's

4 resources with the aim of achieving organizational goals in
an efficient and effective manner.

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These definitions when expanded have these implications

 Management is thus a continuous effort aimed at shaping an

organization and contributing to its overall growth.
 The functions of managers include planning, organizing, staffing,
leading and controlling.
 These functions are essential to any kind of organization.
 It applies to managers at all hierarchical levels.
 The aim of managers is to increase productivity, effectiveness and
efficiency.

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 Management: Science or Art?
 Science is a collection of systematic knowledge, collection of truths and
inferences after continuous study and experiments. It has fundamental
principles discovered.
 Art uses the known rules and principles and uses the skill, expertise,
wisdom, experience to achieve the desired result.
Or Another Concept
• Art is subjective while science is objective.
• Art is the expresses knowledge, most often in the form of subjective
representation, e.g (personal feelings, personal judgment)
• while science is the system of acquiring knowledge. (e.g based on reality no
personal feeling or judgment)

Management has got two faces like a coin; on one side it is art and on
the other it is science. Management has got scientific principles which
constitute the elements of Science and Skills and talent which are
attributes of Art.

Management is both art and science. 11

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 Manager

 A manager is someone whose primary responsibility is to

carry out the management process within an

organization to achieve the organizational goals.

 Changing nature of organizations and work has blurred
the clear lines of “distinction between managers and
non-managerial employees”.

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 How The Manager’s Job Is Changing
 The Increasing Importance of Customers
 Customers: the reason that organizations exist
 Managing customer relationships is the responsibility

of all managers and employees.

 Consistent high quality customer service is essential

for survival.
 Innovation
 Doing things differently, exploring new territory, and
taking risks
 Managers should encourage employees to be aware

of and act on opportunities for innovation.

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Changes Impacting the Manager’s Job

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 Managerial skills

Managerial Skills

Primary Skills Secondary Skills

• Conceptual Skill • Design Skill
• Human Skill • Communication Skill
•Technical Skill • Leadership Skill

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 Managerial skills (con…)

 Conceptual skills:
 This refers to the ability to think and conceptualize abstract
situations. These abilities are required for making complex
decisions.
In short it is:
 The mental capacity to develop plans, strategies and vision.
 Example:
• Using information to solve business problems
• Identifying of opportunities for innovation
• Recognizing problem areas and implementing solutions
• Selecting critical information from masses of data
• Understanding of business uses of technology
• Understanding of organization’s business model

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 Managerial skills (con…)

 Human or interpersonal skills:

 Skills associated with manager’s ability to work well with others, both as a
member of a group and as a leader who gets things done through others.
 This includes the ability to understand other people and interact effectively
with them. The human skills are also important in creation of an environment
in which people feel secure and free to express their opinions.
In short it is:
 The ability to work well with other people.
 Example:
• Coaching and mentoring skills
• Diversity skills: working with diverse people and cultures
• Networking within the organization
• Networking outside the organization
• Working in teams; cooperation and commitment

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 Managerial skills (con…)
Technical skills:
 These skills include the knowledge, abilities of and proficiency
in activities involving methods, processes and procedures in
the relevant fields as accounting, engineering, manufacturing
etc.
Or in short:
 Knowledge and proficiency in a specific field
Design skills:
 These skills enable a manager to handle and solve any kind
of unforeseen or actual problems, that may crop up in the
organization. Such problems could arise due to internal
factors or external factors and/or both.
In short it is:
 The problem solving skill

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 Managerial skills (con…)

Communication skills:
 The abilities of exchanging ideas and information
effectively. To understand others and let others
understand comprehensively.

Leadership skills
 The abilities to influence other people to achieve the
common goal.

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Skills Needed at Different Management Levels

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 Levels of management
When we classify managers according to their duties:
1. Top Level Manager:
 Top management sets the mission and goals, develops policies, evaluates the
overall performance of various departments, responsible for the business as a
whole and is concerned mainly with long-term planning.
2. Middle Level Manager:
 Middle level management develops departmental goals, executes the policies,
plans and strategies determined by top management , develops medium- term
plans and supervises and coordinate lower-level managers’ activities.
 In short Individuals who manage the work of first-line managers.
2. First-line Managers :
 Lower level management takes charge of day-to-day operations, is involved in
preparing detailed short-range plans, is responsible for smaller segments of
the business, executes plans of middle management , guides staff in their own
subsections and keep close control over their activities.
 In short Individuals who manage the work of non-managerial employees

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 Levels of management

Top
Management
President, CEO,
Executive
Vice Presidents

Middle Management
Plant Managers, Division Managers,
Department Managers

First-Line Management
Foreman, Supervisors, Office Managers

Non- Managerial Employees

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 Most

Least
Important
Important
Planning
each level

Organizing

Top
Staffing

Managers
Directing

Controlling

Planning

Organizing
Middle Staffing
Managers
Directing

Controlling

Planning

Organizing

Staffing
Managers
First-Line
Importance of management functions to managers in

Directing
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Controlling
 Roles of manager
 Role: aconducted
In 1960, Henry Mintzberg set of expectation
a study tofor one’s behavior
understand about the managerial
roles. He identified 10 managerial roles that are common to all managers. These 10
managerial roles are grouped under: Interpersonal, decisional, and informational roles.
 Role (D.f ): An organized set of behaviors associated with a particular office or position.

Roles of Manager

Decisional Informational
Interpersonal • Entrepreneur
• Figurehead • Monitor
• Disturbance handler
• Leader • Disseminator
• Resource allocator
• Liaison • Spokesperson
• Negotiator

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 Roles of manager (con…)

  Interpersonal management roles are relationship-based.

 Interpersonal roles are roles that involve interacting with other people inside and
outside the organization

 Decisional management roles are action-based roles for making

and Implementing decisions

 Informational management roles are communication-based.

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 Roles of manager (con…)
Inter-personal Role

1. Figurehead: Represents the company on social occasions.

 Attending the flag hosting ceremony, receiving visitors or taking
visitors for dinner etc.
2. Leader: In the role of a leader, the manager motivates, encourages,
and builds enthusiasm among the employees. Training subordinates
to work under pressure, forms part of the responsibilities of a
manager.
3. Liaison: Consists of relating to others outside the group or
organization. Serves as a link between people, groups or
organization. The negotiation of prices with the suppliers regarding
raw materials is an example for the role of liaison.
 Liaison simply means Maintains networks of contacts outside work
unit who provide help and information
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 Roles of manager (con…)

Decisional Role:
1. Entrepreneur: Act as an initiator and designer and encourage
changes and innovation, identify new ideas, delegate idea and
responsibility to others.
2. Disturbance handler: Take corrective action during disputes or
crises; resolves conflicts among subordinates; adapt to
environmental crisis.
3. Resource allocator: Decides distribution of resources among
various individuals and groups in the organization.

4. Negotiator: Negotiates with subordinates, groups or organizations-

both internal and external. Represents department during negotiation
of union contracts, sales, purchases, budgets; represent
departmental interests .

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 Roles of manager (con…)

Informational role:

1. Monitor: seeks internal and external information about issues

affecting organization.

2. Disseminator: Transmits information received from other

employees to members of the organization.

3. Spokesperson: Transmits information to the people who are

external to the organization, i.e., government, media etc. For
instance, a manager addresses a press conference announcing
a new product launch or other major deal. 

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 Summary of Managerial roles

 Although Mintzberg argued that 10 roles he identified apply

at all management levels, he did note some differences in
emphasis at various levels.
 He suggest that figurehead role, liaison and spokesperson
become more important as manager moves up the
hierarchy.
 On the other hand, the leader role appears to be more
critical at lower levels.

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FUNCTIONS OF MANAGEMENT

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 PLANNING

 According to Koontz:
“Planning is deciding in advance - what to do, when to do & how to do. It
bridges the gap from where we are & where we want to be”.
 Planning is necessary to ensure proper utilization of human & non-
human resources. It is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.
 In Short: Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities.

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 ORGANIZING
 Ensuring necessary resources are in place

 According to Henry Fayol:

“To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel’s”.
 Organizing is the process of allocating and arranging work, authority and
resources, to the members of the organization so that they can successfully
execute the plans.
 Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.
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 STAFFING

 According to Koontz & O'Donnell,

“Managerial function of staffing involves manning the organization
structure through proper and effective selection, evaluation &
development of personnel to fill the roles designed under the structure”.
 Staffing is the process of filling the positions in the organization and keeping
them filled.
 Staffing is the process of recruiting and selecting the right person for the right
job at the right time in the right place.
 Staffing involves:
 Manpower Planning (estimating man power in terms of searching, choose

the person and giving the right place).

 Recruitment, selection & placement.
 Training & development.
 Compensation (salary).
 Performance appraisal.
 Promotions & transfer.

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 DIRECTING or LEADING

 It is that part of managerial function which trigger the organizational

methods to work efficiently for achievement of organizational
purposes.
 Leading involves directing, influencing and motivating employees to
perform essential tasks. This function involves display of leadership
qualities, different leadership styles, different influencing powers, with
excellent abilities of communication and motivation.
 Direction has following elements:
 Supervision
 Motivation
 Leadership
 Communication

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 CONTROLLING

 According to Koontz & O'Donnell

“Controlling is the measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives and

plans desired to obtain them as being accomplished” .

 Controlling is the process of devising various checks to ensure that planned

performance is actually achieved.
 It involves ensuring that actual activities conform to the planned activities.
 Monitoring the financial statements, checking the cash registers to avoid
overdraft etc.
 In Short: Monitoring, comparing, and correcting work

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 Therefore controlling has following steps:
 Establishment of standard performance.
 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out
deviation if any.
 Corrective action.

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What Is An Organization?

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 What Is An Organization?
 An Organization Defined
 A deliberate arrangement of people to accomplish some specific purpose
(that individuals independently could not accomplish alone).
 Concepts of Organization: There are two concepts of organization: 
1. Static concept 2. Dynamic concept
1: Static Concept:(structured)
 In general, static organizations refer to organizations that are not moving or
changing in the right direction.
 organizations that are inflexible, task-oriented, controlled through forced power
without proper participation expected at all levels etc.
 Any decisions made in these organizations are considered final and
communication is top-down.
 Many factors lead to static organizations. For example;
 Confusion between management and leadership is a huge factor that leads
to static organizations.
 Employee morale is another factor that leads to static organizations.
 The level of education of employees also contributes static organizations.
 When examining static organizations, it is always a good idea to approach
them comprehensively

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 What Is An Organization?

2: Dynamic concept: (unstructured, ad-hoc)

 The term “dynamic,” on the other hand, does not imply constant
change.
 To be dynamic means to be proactive, understanding new
technology on the horizon and how it can be applied to solve
business requirements.
 It also means encouraging innovation and building a corporate
culture that takes advantage of professionals’ strengths and
creativity.
 Dynamic organizations also know how and when to remain
stable but adopt an underlying strategy that keeps looking
forward.
 It considers organization as an open adoptive system and not as
a closed system. Dynamic concept lays emphasis on individuals
and considers organization as a continuous process.

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 Common Characteristics of Organizations
 Different authors look at the word ‘organization’ from their own angle. One
thing which is common in all the viewpoints is that organization is the
establishment of authority relationship among persons so that it helps in the
achievement of organizational objectives.
 Common Characteristics of Organizations
 Have a distinct purpose (goal)
 Composed of people
 Division of Work
 Coordination
 Well-Defined Authority-Responsibility Relationships
 leadership

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The Changing Organization

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 Why Study Management?
 Studying management teaches how to effectively lead and manage
others to help individuals, teams and organizations meet their full
potential.
 Management teaches you to understand how people behave in
organizations, and the nature of power, influence and leadership.
 Whether you aim to be self-employed, an entrepreneur, head your
own company; or to work for private business, not-for-profit
organizations or government agencies – Management gives you the
tools for success!

 The Value of Studying Management

1. The universality of management
2. The reality of work
3. Rewards and challenges of being a manager

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 The Value of Studying Management (con…)

1. The universality of management:

 Good management is needed in all organizations
 Universality of management means that the principles of management are
applicable to all types of organizations and organizational levels. It means
that the manager uses the same managerial skills and principles in
each managerial position held in various organizations
 Universality implies transferability of managerial skills across industries,
countries. It means that management is generic in content and is applicable
to all types of organizations.
 Accordingly, an industrial manager could manage a charitable organization,
a retired army general could manage a university, a civil servant could
manage an industrial organization, and so on.
 Obviously, managers’ jobs vary somewhat from one type of organization to
another because each organizational type requires the use of specialized
knowledge, exists in a unique working and political environment, and uses
different technology. However, there are job similarities across organizations
because the basic management activities—planning, organizing,
implementing and controlling are common to all organizations. 
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 The Value of Studying Management (con…)

2. The reality of work:

 most people have some managerial responsibilities
 most people report to managers
3. 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.

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