Topic  Introduction to

Management
1
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe what an organisation is;
2. Differentiate between managers and operative employees;
3. Describe the meaning and concept of management and its processes;
4. Explain the three levels of management and the responsibilities of
each level;
5. Describe the three categories of managerial roles;
6. Identify the skills that a manager should possess; and
7. 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 also known as Lembaga Urusan Tabung Haji (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

1. What is the definition of „organisation‰?

2. 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 shown in Figure 1.1:

Figure 1.1: Three levels of 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 three 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 is the
management process then?

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 1.2?

Now, compare your mind map with Figure 1.2 below.

Figure 1.2: Management process

Source: Robbins and 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. 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 Role
Figurehead As a symbolic head, carrying out
routine consultancy and social
work.
Leader  Responsible for encouraging
subordinates.
 Carries out duties of
establishment and training.
Liaison Responsible for networking with
external parties.
Informational Role
Monitor Seeks and receives the latest
information for detailed
understanding of the organisation
and the environment; serves as the
referral centre for parties within
and outside the organisation.
Disseminator Disseminates information from
the workers to other workers
within the organisation.
Spokesperson Disseminates information about
plans, policies and organisational
action to external parties.
Ceremonial, responsible for
receiving visitors, attending
wedding of a subordinate,
taking clients for lunch.
Responsible for encouraging
subordinates. Carries out duties
of establishment and training.
Carries out all duties related to
external parties.
Reads reports and printed
materials and maintains
personal liaison.
Holds meetings and sends
written or electronic memos.
Holds annual general
meetings and provides
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. handling crises.
 Launches projects 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 Carries out all activities related
Allocator resources within the to budgeting and programmes
organisation. workersÊ tasks.
 Implements organisational
decisions.
Negotiator Responsible for large-scale Represents the organisation in
negotiations. workersÊ union negotiations
and with suppliers.

ACTIVITY 1.2

1. Create a diagram about the relationship among the three main

managerial roles as well as the sub-roles.
2. For further information about Mintzberg, visit the following link
and share your findings in myINSPIRE online forum:
http://www.mintzberg.org

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, Katz (1955), 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.

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10  TOPIC 1 INTRODUCTION TO MANAGEMENT

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.

ACTIVITY 1.3
Before you proceed with your reading, answer the following question
and post your answers in myINSPIRE online forum for sharing and
comparing:
What does Katz say about the importance of these three skills for
managers?

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.

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 TOPIC 1 INTRODUCTION TO MANAGEMENT  11

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
(refer to Figure 1.3). 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.

Figure 1.3: Relationship between Skills and Managerial Levels

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 as
explained 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.

 Managers play different roles. According to Mintzberg in 1973, there are 10

roles of a manager, namely interpersonal, informational and decisional roles.

 An effective manager must possess conceptual skills, interpersonal skills and

technical skills to allow him/her to make informed decisions in an organisation.

Conceptual skills Interpersonal skills

Decisional roles Middle managers
First-line managers Operative employees
Informational roles Technical skills
Interpersonal roles Top managers

Katz, R. L. (1955). Skills of an effective administrator. Harvard Business

Review, 33 (1), 33-42.
Mintzberg, H. (1973). Strategy-making in three modes. California Management
Review, 16 (2), 44-53.
Robbins, S., & Decenzo, D. (2006). Fundamentals of management: Essential
concepts and applications (4th ed.). Upper Saddle River, NJ: Prentice Hall.
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