SCRIPT

Subject: Management
Chapter 1: INTRODUCTION TO MANAGEMENT
Topic 1: The goal and concept of management

Slide Content
Hello everyone,
Welcome to study chapter 1, introduction to management. After studying this
chapter, you should be able to use English to:
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 Explain the goal and concept of management.
 Distinguish the tasks and roles of managers.
 Differentiate among three levels and skills of managers.
In this chapter, we study three topics: (1) The goal and concept of management;
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(2) Managerial tasks and roles; (3) Levels and skills of managers.
Topic 1: The goal and concept of management. After studying this topic, you
should be able to use English:
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 Explain the goal of management.
 Describe the concept of management.
The first one is to explain the goal of management. One of the key goals that
organizations try to achieve is to provide goods and services that customers value
and desire. To do this, managers are responsible for making the most an
organization’s resources to achieve its goals efficiently and effectively. These are
Slide 5 the two measurements of organizational performance and also the main goal of
management. To understand organizational performance, effectiveness, and
efficiency, we go to find oud their meaning.

Slide 6 What is an organizational performance?

The organizational performance involves analyzing an organization’s performance
 against its objectives and goals. In other words, organizational performance
comprises real results or outputs compared with intended outputs. It is a measure
of how efficiently and effectively managers use available resources to satisfy
customers and achieve organizational goals.
The analysis normally focuses on three main outcomes, first, shareholder value
performance; second, financial performance; and third, market performance.

What is effectiveness?
Effectiveness is a measure of the appropriateness of the goals that managers have
selected for the organization to pursue and the degree to which the organization
Slide 7 achieves those goals. Simply put, effectiveness is a measure of the intended goals
and real goals of an organization. The organization is effective when managers
choose appropriate goals and then achieve them.

What is efficiency?
Efficiency signifies a level of performance that describes using the least amount of
input to achieve the highest amount of output. In short, it is a level of performance
in using resources to achieve a goal. An organization is considered as efficiency
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when managers minimize the number of input resources (such as raw materials,
money, time, energy, effort) to produce a maximum output (such as goods or
services).

Slide 9 To clarify efficiency, effectiveness, and performance in an organization, we can

illustrate them as follows:
 Efficiency and effectiveness are very important because they help managers
control and evaluate the performance of organizations. In order to understand how
they are important, we consider the following example to get the distinction clear.
For example:
A manager has 12 rolls of fabric. He hands them over to 4 people. Each one has 3
Slide 10 rolls, and he wants every person to make up 100 T-shirt within 5 hours.
End result
Person A has made up 100 T-shirts within 6 hours.
Person B has made up 100 T-shirts within 5 hours.
Person C has made up 80 T-shirts within 6 hours.
Person D has made up 102 T-shirts within 4 hours.
With the above result:
Person A achieves effectiveness but doesn’t attain efficiency.
Person B achieves efficiency but doesn’t attain effectiveness.
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Person C doesn’t achieve effectiveness and efficiency.
Person D achieves effectiveness and efficiency.
It is said that person D achieves high performance.
Slide 12 From the result of the example, we realized the high performance of person D and
low performance of person C, whereas person A and B only get efficiency or
effectiveness. So, Effectiveness means the degree to which goals are achieved.
 And efficiency is the degree to which the consumption of resources (money, time,
labor, etc.) are used to achieve the goals. In other ways, effectiveness means
"doing the right thing" and efficiency means "doing the thing right".
In conclusion, the goal of management is effectiveness and efficiency that
measures organizational performance. With the goal, management helps managers
control and evaluate the performance of an organization, thence to promote the
workforce to be able to get the higher performance of the organization.
Now, we move on to the second section of the topic that what management is.
There are a lot of concepts of management. Firstly, we consider the management
concept of Taylor who was the father of scientific management, "Management is
an art of knowing what is to be done and seeing that it is done in the best possible
manner". Secondly, Henri Fayol was considered the father of modern
management, he stated that “Management is to forecast, to plan, to organize, to
command, to coordinate and control activities of others". And thirdly, Peter
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Drucker was management consultant, educator, and author, of the Practice of
Management, he wrote that “Management is a multipurpose organ that manages a
business and manages managers and manages worker and work”. Finally, Gareth
Jones defined that management comprises the planning, organizing, leading, and
controlling of human and other resources to achieve organizational goals
efficiently and effectively.
Thank you for attention and see you on the next topic!