Foundation in Business

MGT1210: Fundamental in Management

TOPIC 1: NATURE OF MANAGEMENT

What is management?
Management is the process of getting things done, effectively and
efficiently, through and with people. Management involves coordinating
and overseeing the work activities of others so that their activities are
completed efficiently and effectively. Coordinating an overseeing the
work of others is what distinguishes a managerial position from a nonmanagerial one.
Who is a Manager?
A manager is someone who coordinates and oversees the work of other
people so that organizational goals can be accomplished. A managers job
is not about personal achievement, its about helping others do their work.
That may mean coordinating the work of a departmental group, or it
might mean supervising a single person. It could involve coordinating the
work activities of a team of people from different departments.
Efficiency and Effectiveness
Efficiency means doing things right or getting the most output from the
least amount of inputs.
Effectiveness means doing the right things, or completing activities so
that organizational goals are attained.
Levels of Management:
1. Top management are responsible for making decisions about the
direction of the organization and establishing policies that affect all
organizational members. Top managers typically have titles such as
Vice President, President, Chancellor, Managing Director, Chief
Operating Officer, Chief executive Officer, or Chairperson of the
Board. Few people are at the top management as compared to
middle and first line management. Top management people are
totally responsible for the performance of the organization. They
make the final decision in every aspect about the business. The
decision they make carry high risk, as it will affect the whole
organization. They plan for long term planning of the business,
therefore they will need to gather a lot of information and do
research before they analyze on anything.
2. Middle management are between the first line management and
top management. These individuals manage other managers and
possibly some operative employees and are typically responsible for
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translating the goals set by top management into specific details

that lower level managers can perform. In organizations, middle
managers may have such titles as department or agency head,
project leader, unit chief, district manager, dean, bishop, or division
manager.
3. First line management are responsible for directing the day to
day activities of operative employees. They are usually called
supervisors; they may also be called team leaders, coaches, or unit
coordinators. First line managers manage the work of nonmanagerial employees who typically are involved with producing the
organizations products or servicing the organizations customers.
Operatives people who work directly on a job or task and have no
responsibility for overseeing the work of others.
Common characteristics of organizations:
Organization is a systematic arrangement of people brought together to
accomplish some specific purpose.
First, every organization has a purpose and is made up of people who are
grouped together. The distinct purpose of an organization is typically
expressed in terms of a goal or set of goals.
Second, no purpose or goal can be achieved without people making
decisions to establish the purpose and performing a variety of activities to
make the goal a reality.
Third, all organizations develop a systematic structure that defines and
limits the behavior of its members. Developing structure may include, for
example, creating rules and regulations, giving some members
supervisory control over other members, forming work teams, or writing
job descriptions so that organizational members know what they are
supposed to do.
Management Functions:
1. Planning includes defining goals, establishing strategy, and
developing plans to coordinate activities.
2. Organizing includes determining what tasks are to be done, who is
to do them, how the tasks are to be grouped, who reports to whom,
and where decisions are to be made.
3. Leading includes motivating employees, directing the activities of
others, selecting the most effective communication channel, and
resolving conflicts.
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MGT1210: Fundamental in Management

4. Controlling the process of monitoring performance, comparing it

with goals, and correcting any significant deviations.
Management Skills
1. Conceptual skills a managers mental ability to coordinate all of
the organizations interests and activities. Conceptual skills are the
skills managers use to think and to conceptualize about abstract
and complex situations. Using these skills, managers see the
organization as a whole, understand the relationships among
various subunits, and visualize how the organization fits into its
broader environment. These skills are most important to top
managers.
2. Interpersonal skills/human skills a managers ability to work with,
understand, mentor and motivate others, both individually and in
groups. Involve the ability to work well with other people both
individually and in groups. Because all managers deal with people,
these skills are equally important to all levels of management.
Managers with good human skills get the best out of their people.
They know how to communicate, motivate, lead and inspire
enthusiasm and trust.
3. Technical skills a managers ability to use the tools, procedures,
and techniques of a specialized field. Technical skills are the job
specific knowledge and techniques needed to proficiently perform
work tasks. These skills tend to be more important for first line
managers because they typically manage employees who use tools
and techniques to produce the organizations products or to service
the organizations customers.
Management Roles:
1. Interpersonal role are ones that involve people and other duties that
are ceremonial and symbolic in nature. The three interpersonal roles
are figurehead, leader and liaison.
Figurehead symbolic head, obliged to perform a number of
routine duties of a legal or social nature. Example greeting
visitors, signing legal documents.
Leader responsible for the motivation and activation of
employees, responsible for staffing, training, and associated
duties. Example performing virtually all activities that involve
employees.

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Liaison maintains self-developed network of outside contacts

and informers who provide favors and information. Example
acknowledging mail, doing external board work, performing
other activities that involve outsiders.

2. Informational roles involve collecting, receiving and disseminating

information. The three informational roles are monitor, disseminator,
and spokesperson.
Monitor seeks and receives wide variety of special
information (much of it current) to develop thorough
understanding of organization and environment, emerges as
nerve center of internal and external information about the
organization. Example reading periodicals and reports,
maintaining personal contacts.
Disseminator transmits information received from other
employees to members of the organization, some information
is factual, some involves interpretation and integration of
diverse value positions of organizational influences. Holding
informational meeting, making phone calls to relay
information.
Spokesperson transmits information to outsiders on
organizations plans, policies, actions, results, etc., serves as
expert on organizations industry. Example holding board
meeting, giving information to the media.
3. Decisional roles entail making decisions or choices. The four
decisional roles are entrepreneur, disturbance handler, resource
allocator, and negotiator.
Entrepreneur searches organization and its environment for
opportunities and initiates improvement projects to bring
about change, supervises design of certain projects as well.
Example organizing strategy and review sessions to develop
new programs.
Disturbance handler responsible for corrective action when
organization
faces
important
disturbances.
Example
organizing strategy and review sessions that involve
disturbances and crises.
Resource allocator responsible for the allocation of
organizational resources of all kinds, in effect, the making or
approval of all significant organizational decisions. Example
scheduling, requesting authorization, performing any activity
that involves budgeting and the programming of employees
work.

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Foundation in Business

MGT1210: Fundamental in Management

Negotiator responsible for representing the organization at

major negotiations. Example participating in union contract
negotiations or in those with suppliers.

Important managerial skills:

Delegating effectively (making sure work gets done right).

Being an effective communicator.
Thinking critically.
Managing work load/time.
Identifying clear roles for employees.
Creating an environment of openness, trust, and challenge.

Rewards and challenges of being a manager:

Rewards:

Create a work environment in which organizational members can

work to the best of their ability.
Have opportunities to think creatively and use imagination.
Help others find meaning and fulfillment in work.
Support, coach, and nurture others.
Work with a variety of people.
Receive recognition and status in organization and community.
Play a role in influencing organizational outcomes.
Receive appropriate compensation in form of salaries, bonuses, and
stock options.
Good managers are needed by organizations.

Challenges:

Do hard work.
May have duties that are more clerical than managerial.
Have to deal with a variety of personalities.
Often have to make do with limited resources.
Motivate workers in chaotic and uncertain situations.
Blend knowledge, skills, ambitions, and experiences of a diverse
work group.
Success depends on others work performance.

Tutorial questions:
1.
2.
3.
4.

Describe the difference between managers and operatives.

Explain what is meant by the term management.
Differentiate between efficiency and effectiveness.
Describe the four primary processes of management.

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5. Classify the three levels of managers and identify the primary

responsibility of each group.
6. Summarize the essential roles performed by managers.
7. Discuss whether the managers job is generic.
8. Describe the skills necessary for becoming a successful manager.
9. Describe the value of studying management.
10.
Discuss the changes that are impacting managers jobs.
11.
Explain why customer service and innovation are important to
the managers job.
12.
Explain the characteristics of an organization.
13.
Describe how todays organizations are structured
14.
Describe the rewards and challenges of being a manager.
15.
Why are managers important to an organizations success?
16.
Are all effective organizations also efficient? Discuss. If you
had to choose between being effective or being efficient, which one
would you say is more important? Why?
17.
Briefly describe the ten managerial roles described by Henry
Mintzberg. Give an example of each.
18.
Describe a typical managers day.

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