Introduction to Management

Dr. Eril S.A.,S.Pd.,MM, CHt

Chapter 1
 Chapter Outline
• An Introduction to Management
–Kinds of Managers
–Basic Management Functions
–Fundamental Management Skills
–The Science and the Art of Management
• The Evolution of Management
–The Importance of Theory and History
–The Historical Context of Management
–The Classical Management Perspective

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1. What is organization ?
2. What is management ?
3. Who is manager ?
4. Why do we study management?

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 What is Organization ?
• A group of people working together in a structured and coordinated
fashion to achieve a set of goals.

What is Management ?
• A set of activities (planning & decision making, organizing, leading
and controlling) directed at an organization’s resources (human,
financial, physical, and information), with the aim of achieving
organizational goals in an efficient and effective manner.

Who is Manager?
• Someone whose primary responsibility is to carry out the
management process.

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Basic Purpose of Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
And

EFFECTIVELY
Making the right decisions and
successfully implementing them

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 Efficiency
versus
Effectiveness

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Kinds of Managers by Level and Area

Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management

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 Kinds of Managers by Level

• Top Managers
–The relatively small group of executives who manage
the organization’s overall goals, strategy, and
operating policies (president, vice president, chief
executive officer / CEO, Board of Directors / BOD).
• Middle Managers
–Largest group of managers in organizations who are
primarily responsible for implementing the policies and
plans of top managers. They supervise and coordinate
the activities of lower-level managers (Division Head).
• First-Line Managers
–Managers who supervise and coordinate the activities
of operating employees (Department Head).
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 Kinds of Managers by Area
• Marketing Managers
–Work in areas related to getting consumers and clients
to buy the organization’s products or services.
• Financial Managers
–Deal primarily with an organization’s financial
resources.
• Operations Managers
–Concerned with creating and managing the systems
that create organization’s products and services.

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 Kinds of Managers by Area (cont’d)
• Human Resource Managers
–Involved in human resource planning, recruiting and
selection, training and development, designing
compensation and benefit systems, formulating
performance appraisal systems.
• Administrative / General Managers
–Generalists who are familiar with all functional areas
of management and who are not associated with any
particular management specialty.
• Other Kinds of Managers
–Specialized managerial positions directly related to the
needs of the organization (PR Mgr, FO Mgr, Sales
Mgr, etc). 1–10
 The Management Process

Planning and
Decision Making Organizing
Determining how
Setting the organiza-
best to group
tion’s goals and
activities and
deciding how best
resources
to achieve them

Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization

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 Fundamental Management Skills
• Technical
–Skills necessary to accomplish or understand the
specific kind of work being done in an organization.
• Interpersonal
–The ability to communicate with, understand, and
motivate both individuals and groups.
• Conceptual
–The manager’s ability to think in the abstract.
• Diagnostic
–The manager’s ability to visualize the most
appropriate response to a situation.

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 Fundamental Management Skills (cont’d)
• Communication
–The manager’s abilities both to convey ideas and
information effectively to others and to receive ideas
and information effectively from others.
• Decision-Making
–The manager’s ability to recognize and define
problems and opportunities correctly and then to
select an appropriate course of action to solve the
problems and capitalize on opportunities.
• Time-Management
–The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.
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 Fundamental Management Skills
• Management Skill Mixes at Different
Organizational Levels

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 The Science and the Art of Management
• The Science of Management
–Problems can be approached using rational, logical,
objective, and systematic ways.
–Requires data, facts, objective information, decision-
making skills and techniques to solve problems.
• The Art of Management
–Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal
insights.
–Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.
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 The Evolution of Management
• Robert Owen (1771–1858)
–British industrialist who was one of the first managers
to recognize the importance of human resources and
the welfare of workers.
• Charles Babbage (1792–1871)
–English mathematician who focused on creating
efficiencies of production through the division of labor,
and the application of mathematics
to management problems.

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 The Importance of Theory and History
• Why Theory? A theory is simply a conceptual
framework for organizing knowledge and
providing a blueprint for action.
Theory is used to build organizations and guide them
toward their goals, are grounded in reality.
• Why History? History provides a sense of
heritage and can help managers avoid the
mistakes of others.

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 The Historical Context of Management
1. The Classical Management Perspective
2. The Behavioural Management Perspective
3. The Quantitative Management Perspective
4. Contemporary Management Perspectives

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 1. Classical Management Perspective
• Scientific Management
–Concerned with improving the
performance of individual workers (i.e.,
efficiency).
–Frederick Taylor (1856–1915),
implemented a piecework pay system,
rather than paying all employees the same
wage.
• He began increasing the pay of each worker
who met and exceeded the target level of
output set for his or her job
• Believed in selecting, training, teaching,
and developing workers would lead to a
more efficient and productive. 1–20
 1. Classical Management Perspective
• Administrative Management
–Focuses on managing the whole
organization rather than individuals.
–Henri Fayol (1841–1925),identify the
specific management functions of
planning, organizing, leading, and
controlling.
• He believed that these functions accurately
reflect the core of the management process.

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 2. Behavioral Management Perspective

• Behavioral Management
–Emphasizes individual attitudes and
behaviors and group processes.

– Hugo Munsterberg (1863–1916)

• Advocated the practice of applying
psychological concepts to employees
selection and motivation industrial settings.
– Mary Parker Follett (1868 –1933)
• Recognized the importance of the role of
human behavior in the workplace.

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 2. Behavioral Management Perspective

• Human Relations Movement

– Proposed that workers respond primarily
to the social context of work, including
social conditioning, group norms, and
interpersonal dynamics.
– Manager’s concern for workers would lead
to increase worker satisfaction and
improve worker performance.
– Abraham Maslow (1908–1970)
• Advanced a theory that employees are
motivated by a hierarchy of needs that they
seek to satisfy.
– Douglas McGregor (1906–1964).
• Proposed Theory X and Theory Y
concepts of managerial beliefs about
people and work.
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 2. Organizational Behavior
• A contemporary field focusing on behavioral
perspectives on management.
• Important topics in organizational behavior
research:
–Job satisfaction and job stress
–Motivation and leadership
–Group dynamics and organizational politics
–Interpersonal conflict
–The structure and design of organizations

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 2. Behavioral Management Perspective Today

• Contributions
–Provided important insights into motivation, group
dynamics, and other interpersonal processes.
–Focused managerial attention on these critical
processes.
–Belief that employees as valuable resources instead
of tools.

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 3. Quantitative Management Perspective
• Quantitative Management
–Focuses on decision making, economic effectiveness,
mathematical models, and the use of computers to
solve quantitative problems.
• Management Science : Focuses specifically on the
development of mathematical models.
• Operations Management : Practical application of
management science to efficiently manage the
production and distribution of products and services.

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4. Contemporary Management Perspectives
• The Systems Perspective
–A system is an interrelated set of elements functioning
as a whole : inputs, transformation processes, outputs,
and feedback

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4. Contemporary Management Perspectives
• The Systems Perspective of Organizations :
–Focuses on decision making, economic effectiveness,
mathematical models, and the use of computers to
solve quantitative problems. Thinking of organizations
as systems provides us with a variety of important
view points on organizations, such as the concepts of
open systems, subsystems, synergy, and entropy.

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 An Integrative Framework
of Management Perspectives
Systems Approach
• Recognition of internal
interdependencies
• Recognition of
environmental influences
Contingency Perspective
• Recognition of the situational
nature of management
• Response to particular
characteristics of situation

Classical Behavioral Quantitative

Management Management Management
Perspectives Perspectives Perspectives
Methods for Insights for moti- Techniques for
enhancing vating performance improving decision
efficiency and and understanding making, resource
facilitating planning, individual behavior, allocation, and
organizing, and groups and teams, operations
controlling and leadership

Effective and efficient management

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 Exercise
You are a director of a large company that manufactures cabinets.
The product has grown substantially in recent years.
Unfortunately, in the last two years the income has decreased quite
drastically. To survive and be sustainable, you are faced with 5
choices as follows :
1.Replace materials with lower quality.
2.Laying off some employees
3.Purchasing new, more efficient equipment; but requires high
investment.
4.Lay off all employees and close the company.
5.Selling all company assets including employees

• Be careful with your choice. Each option can affect the company as a whole.
• Determine the option that provides the lowest financial effect for the company.
• You can combine these options if possible or you have other options that are more profitable.

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Thank you

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