Unit 1 Management

1. What is management?
- In general management is the optimum utilization of available resources to attain certain pre-set
GOALS/OBJECTIVES
- Management is the art of getting things done by a group of people with the effective utilization of available
resources. It is the group of activities, which drafts plans, prepares policies, and arranges men, money,
machines and materials required to achieve the objectives.
- Management is the activity of man who struggles for better living in the complex and competitive world.
Management is the process consisting of the functions of planning, organizing, staffing, directing and
controlling the operations to achieve specified objectives. It rewards those who are engaged in this process to
ensure an excellent performance with continual improvement.
1.2 Management as a Process, coordination, and function
Management as a “Process”:

- McFarland defines management as “A process by which managers create, direct, maintain and operate
purposive organization through systematic, coordinated, cooperative human efforts”.
- An important term in this definition is “Process”. This term emphasizes the dynamic or ongoing nature of
management, an activity over varying span of time. The dynamic nature implies that change is reality of
organizational life. In managing organizations, managers create changes, adopt organizations to changes and
implement changes successfully in their organizations. Businesses fail and become bankrupt because managers
fail in their attempt to cope with the change.
Management as “coordination”:
Donally, Gibson and Ivancevich also support the view of management as a Process but their stress in more on
co-ordination. According to them, “Management is a process by which individual and group effort is
coordinated towards group goals”. In order to achieve goals, coordination is essential and management involves
securing and maintaining this coordination. This coordination effort is also stressed in the definition of Koontz
and O’Donnell. According to them, “Management is a process of designing and maintaining an environment in
which, individuals, working together in groups efficiently and effectively accomplish group goals”.
Authority: have the power to give orders to people
Responsibility → Accountability: responsibility to explain details of what you have to do to achieve goals or
what you have done (trách nhiệm giải trình)

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Management as a “Function”:
There are those who view management as a function rather than a process. Dunn, Stephens and Kelly contend
that “Management is a role which includes a set of duties, responsibilities, and relationships-involved in work
organizations”. These duties and responsibilities constitute the function a manager performs. The duties and
responsibilities a manager performs are quite different from those performed by managerial employees.
Management is getting things done through other people:
A simple definition of management that is often quoted and it sounds very simple. According to this definition,
managers do not do things; they get other people to do things. If managing is an individual ability to get things
done, then it is not a problem. We can plan and perform things according to our own convenience and interests.
When somebody else is involved and we want to get things done through him, there is a difficulty. All sorts of
problems arise; personalities come into contact and conflict. Interpersonal problems crop up. We have to
understand the behavior of other people and must have knowledge as to how to motivate them in order to get
things done through them. We have to consider the conveniences and interest of others also in planning and
implementing things. In getting things done through others, people have to be coaxed, they have to be shown,
they have to inspired, they have to be motivated and this is what management means. These activities are
performed not only by the people at the top but also from the chairman of the board to the front line supervisors
and foremen. They use the above-mentioned methods to get things done through other people.
1.3 Five M’S in the business
Efficient management is the lifeboat of any developed business. There are five M’s in the business, which can
be called as the resources of the business, viz. Man, Machines, Materials and Money as tangible ones and
Method as intangible one.
( 1) Man: Management is the art of getting things done by a group of people. Therefore, the availability of
qualified, trained, skilled, experienced and competent people is the most important factor in any management,
anywhere.
(2) Machines: Management is the art of knowing what you want to do, and then seeing that it is done in the best
and the cheapest way. It is needless to say that availability of capable machines and equipment is a must to do
the things in the best and the cheapest way.
(3) Materials: Quality, quantity, availability, cost/market price and transportation of raw materials, semi-
finished goods and finished goods need no emphasis. It is a clearly a very vital factor in success of management.
(4) Money: Financial capital (vốn) is money used by entrepreneurs and businesses to buy what they need to
make their products or to provide their services to the sector of the economy upon which their operation is
based. Availability of funds for running the business is extremely important particularly for procuring capital
goods, raw materials, tools and consumables (hàng tiêu dùng), and availability of working capital (vốn lưu
động).
(5) Method: If we have to do things in the best and cheapest way, it is also important how the things are
processed. That is, by which method the things are processed. The proper method will ensure required quality,
quantity and in-time delivery. It will ensure the accomplishment of management objectives.
1.4 Who are managers?
- Traditional theory: Top managers ensure the organization’s competitiveness and lower level managers’ and
employees’ job security while lower-level managers and employees implement top management’s strategy with
loyalty and obedience.

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- Contemporary theory: Empowered lower-level managers and employees are responsible for the
organization’s competitiveness and their own development while top management support personnel
development and ensure employability.
Types of managers
(1) Top managers are responsible for developing the organization’s strategy and being a steward for its vision
and mission. A second set of managers includes functional, team, and general managers.
(2) Functional managers are responsible for the efficiency and effectiveness of an area, such as accounting or
marketing.
(3) Supervisory or team managers are responsible for coordinating a subgroup of a particular function or a
team composed of members from different parts of the organization. Sometimes you will hear distinctions made
between line and staff managers
(4) A line manager leads a function that contributes directly to the products or services the organization creates.
For example, a line manager (often called a product, or service manager) at Procter & Gamble (P&G) is
responsible for the production, marketing, and profitability of the Tide detergent product line. A staff manager,
in contrast, leads a function that creates indirect inputs. For example, finance and accounting are critical
organizational functions but do not typically provide an input into the final product or service a customer buys,
such as a box of Tide detergent. Instead, they serve a supporting role.
(5) A project manager has the responsibility for the planning, execution, and closing of any project. Project
managers are often found in construction, architecture, consulting, computer networking, telecommunications,
or software development.
(6) A general manager is someone who is responsible for managing a clearly identifiable revenue-producing
unit, such as a store, business unit, or product line. General managers typically must make decisions across
different functions and have rewards tied to the performance of the entire unit (i.e., store, business unit, product
line, etc.). General managers take direction from their top executives. They must first understand the executives’
overall plan for the company. Then they set specific goals for their own departments to fit in with the plan. The
general manager of production, for example, might have to increase certain product lines and phase out others.
General managers must describe their goals clearly to their support staff. The supervisory managers see that the
goals are met.
1.5 The Nature of Managerial Work
Managers are responsible for the processes of getting activities completed efficiently with and through other
people and setting and achieving the firm’s goals through the execution of five basic management functions:
planning, organizing, staffing, leading, and controlling. Both sets of processes utilize human, financial, and
material resources.
Roles of managers
To meet the many demands of performing their functions, managers assume multiple roles. A role is an
organized set of behaviors, consisting of ten roles which are divided into three groups: interpersonal,
informational, and decisional.
The informational roles link all managerial (/ˌmænəˈdʒɪriəl/) work together. The interpersonal roles ensure
that information is provided. The decisional roles make significant use of the information.
The performance of managerial roles and the requirements of these roles can be played at different times by
the same manager and to different degrees, depending on the level and function of management. The ten roles
are described individually, but they form an integrated whole.

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The three interpersonal roles are primarily concerned with interpersonal relationships. In the figurehead role,
the manager represents the organization in all matters of formality. The top-level manager represents the
company legally and socially to those outside of the organization. The supervisor represents the work group to
higher management and higher management to the work group. In the liaison (/liˈeɪzn/; =contact: ngoại giao)
role, the manager interacts with peers and people outside the organization. The top-level manager uses the
liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work.
The leader role defines the relationships between the manager and employees.
The direct relationships with people in the interpersonal roles place the manager in a unique position to get
information. Thus, the three informational roles are primarily concerned with the information aspects of
managerial work. In the monitor role, the manager receives and collects information. In the role of
disseminator, the manager transmits special information into the organization. The top-level manager receives
and transmits more information from people outside the organization than the supervisor. In the role of
spokesperson, the manager disseminates the organization’s information into its environment. Thus, the top-
level manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert.
The unique access to information places the manager at the center of organizational decision making. There are
four decisional roles managers play. In the entrepreneur role, the manager initiates change. In the
disturbance handler role, the manager deals with threats to the organization. In the resource allocator role,
the manager chooses where the organization will expend its efforts. In the negotiator role, the manager
negotiates on behalf of the organization. The top-level manager makes the decisions about the organization as a
whole, while the supervisor makes decisions about his or her particular work unit.
The supervisor performs these managerial roles but with different emphasis than higher managers. Supervisory
management is more focused and short-term in outlook. Thus, the figurehead role becomes less significant and
the disturbance handler and negotiator roles increase in importance for the supervisor. Since leadership
permeates all activities, the leader role is among the most important of all roles at all levels of management.

Practices
Practice 1 Answer the following questions
1. Why do organizations need managers?
2. What are some different types of managers and how do they differ?
3. What are the ten managerial roles?
4. What three areas does a company use to organize the ten roles?
5. What four general managerial functions do principles of management include?
Practice 2 Use ONE most suitable word to complete the text below
Managers are 1___________ for getting work done through others. We typically describe the key managerial
functions as planning, organizing, 2_____________, directing and controlling. The definitions for each of these
have evolved over time, just as the 3___________ of managing in general has evolved over time. This
4___________ is best seen in the gradual transition from the 5___________ hierarchical relationship between
managers and employees, to a climate characterized better as an 6___________ pyramid, where top executives
support middle managers and they, in turn, support the 7___________ who innovate and fulfill the
8___________ of customers and clients. Through all four managerial functions, the work of managers ranges
across ten roles, from 9___________ to negotiator.

Practice 3 Match the functions of management to their activities

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 Staffing, Planning, Organising, Directing, Controlling
1. _________________It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to predict deviations
before they actually occur.
2. _________________It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. Direction has 04 elements: Supervision, Motivation,
Leadership, Communication
3. _________________it is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.
4. _________________It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.
5. _________________It is the function of manning the organization structure and keeping it manned. Staffing
has assumed greater importance in the recent years due to advancement of technology, increase in size of
business, complexity of human behavior etc.

Practice 4 Match the styles of management with their definitions

Visionary, Persuasive, Paternalistic, Participative, Laissez-faire, Democratic, Delegative,Consultative
Collaborative, Coaching, Autocratic, Authoritative
1. ________________________ This type of management follows a top-down approach, with one-way
communication from bosses to employees. Employees are not encouraged to ask questions, submit ideas, or
share their thoughts on improving processes, and are in some cases actively discouraged from doing so.
2. ________________________ In this style, managers dictate exactly what they require their subordinates to
do and punish those who do not comply. Employees are expected to follow orders, not question the authority of
management, and perform their tasks the same way each time. These types of managers believe that without this
supervision, employees will not operate successfully.
3. ________________________ In this style, managers use their persuasive skills to convince employees that
the unilateral decisions that the manager implements are for the good of the team, department, or organization.
Rather than simply ordering employees to perform tasks, managers employing this style would invite questions
and would explain the decision-making process and rationale behind policies. This can help employees feel as
though they are a more trusted and valued part of the staff and are involved in key business decisions, leading to
lower levels of resentment or tension between management and staff.
4. ________________________ In this style, the manager acts with the best interests of their subordinates at
heart. Usually, the organization will refer to staff as ‘family’ and ask for loyalty and trust from employees.
Management using this style will use unilateral decision making but will explain to employees that the decision-
makers are working from a place of expertise, and thus, legitimacy. Decisions are explained to employees, but
there is no room for collaboration or questioning.
5. ________________________ In this style, managers encourage employees to give input during the decision-
making process, but are ultimately responsible for the final decision. Communication goes both ways, top-down
and bottom-up, and team cohesiveness is increased. This process allows for diverse opinions, skills and ideas to
inform decisions.
6. ________________________ In this style, managers ask for the opinions and thoughts of their team,
consulting the viewpoints of every member of their team. The manager will make the final decision, but they
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will consider all of the information given by team members before they do so. This style is often used in
specialized fields, where staff are experts and their input is needed for the management to make informed
decisions.
7. ________________________ In this style, managers and staff are all active members of the decision
process. Staff are given access to more information about the company and its goals, and are encouraged to
innovate solutions. Management seeks the thoughts, ideas and opinions of staff, works together with staff to
make decisions and then the company acts on them.
8. ________________________ In this style, management creates an open forum for ideas to be discussed
extensively before making decisions based on majority rule. Staff is empowered to take ownership of outcomes,
which can lead to increased engagement, innovation and creativity.
9. ________________________ In this style, managers see themselves as the coach and their employees as the
valued members of their team. The manager’s job is to develop and guide their team, putting their team’s
professional development at the forefront of their priorities. Long-term development is valued above short-term
failures in this style, and the manager wants to promote learning, upskilling and growing in the workplace.
10. ________________________ In this style, management takes a hands-off approach to leadership. Staff is
trusted to do their work without supervision, and they are left to control their decision making and problem-
solving. Management is present at the delegation and delivery stages of work, but otherwise steps back and
gives staff the freedom to control their workflow and outcomes. Management is only involved during the
process if the staff requests their assistance.
11. ________________________ In this style, the manager is only present to assign tasks, although they still
are responsible for tasks being completed successfully. Once the task is assigned, then the employees are
empowered to do their work as they see fit. After the task is complete, the manager steps back in to review the
work and give advice about how to improve future projects.
12. ________________________ In this style, managers lead through inspiring their staff. Leaders explain their
goals and the reasons behind them, convincing their team to work towards executing their vision. Team
members are motivated by their manager, then allowed the freedom to achieve their tasks with minimal
interference. Managers will check in from time to time, but they trust that their shared vision will keep
employees on track and produce good results.

Practice 5 Choose the correct answer

1. Management is ________ in order to create a surplus.
A. an art
B. a science
C. both A & B
D. None of these
2. Management deals with ___________
A. internal environment
B. external environment
C. both internal and external environment
D. None of the above
3. According to Mary Parker, management is a(n) ____________ of getting things done through others.
A. job
B. behaviour
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C. art
D. science
4. Management functions include ________
A. planning & organizing
B. directing
C. controlling
D. All of the above
5. Management skills applies to managers at _____
A. Middle levels in an organization
B. Top levels in an organization
C. Executive levels in an organization
D. All levels in an organization
6. ________ is the basic reason for it’s existence.
A. The organizational vision
B. The organizational mission
C. The organizational objectives
D. The organizations CEO
7. ___________ is about deciding in advance what should be done.
A. organising
B. directing
C. planning
D. controlling
View Answer
C. planning
8. _______ is about grouping of jobs.
A. organising
B. directing
C. planning
D. controlling
9. Managerial skills involves _____
A. technical skills
B. human skills
C. conceptual skills
D. all of the above

10. MOST stands for ________

A. Machinery, Office, Staff and Technology
B. Mission, Objectives, Strategies and Tactics
C. Maximum Output Strategy Tools
D. Manager, Operator, Seller and Trader
11. _______ basically formulate the MOST.
A. Government
B. Managers
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C. Workers
D. Trademark registrar
12 Management _______________ in order to achieve the goals.
A. registers trademark
B. develops tactics
C. formulates strategies
D. outsources operations
13. Functional managers are responsible _____
A. for a single area of activity
B. to the upper level of management and staff
C. for complex organizational sub-units
D. for obtaining copyrights and patents for newly developed processes and equipment
14. Policies are sometimes defined as a(n)_____________
A. shortcut for thinking
B. action plan
C. substitute for strategy
D. substitute for management authority
15. The problem-solving process begins with_____________
A. clarification of the situation
B. establishment of alternatives
C. identification of the difficulty
D. isolation of the cause
16 Strategic planning as a broad concept consists of ______
A. corporate strategy and business strategy
B. strategy formulation and strategy implementation
C. inputs and outputs
D. environmental analysis and internal analysis
17. The most significant management skills are ________
A. Technical, Human and Conceptual
B. Technical, behavioural and Conceptual
C. Systematic, Human and Conceptual
D. Technical, Human and cognitive
18. Management satisfies ______ characteristics of a profession.
A. few
B. many
C. all
D. zero
19. _______________represents the top level management pertaining thinking and planning functions.
A. Administrative Management
B. Operative management
C. Floor level management
D. Both A & B
20. __________ represents the lower level management covering execution and implementation functions.
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A. Administrative Management
B. Operative management
C. Co-operative management
D. All of the above

Practice 6 Business terms focus

cargoes, commodity, consignment, goods, imports, exports, items, articles, transhipment, shipment, shipments,
stock, inventory, merchandize, ware

1._____________is prohibited because the goods are of fragile nature.

2. _____________ control should be done twice a month to check the goods level
3. The _____________ Outturn Report is issued when the Buyer finds some damage to the goods received.
4. _____________should be limited by quotas or tariffs so as to protect domestic production
5. Our _____________ are various in designs and attractive in colors
6. Buyers usually do not want the goods to be delivered in partial _____________ because of more risks.
7. We are supplying these _____________by set not by individual.
8. The _____________ market is where dealers trade in cereals, maize, and wheat…
9. We are running out of _____________ because the domestic demand is very high.
10. A number of garments are now being processed for June _____________
11. We have no trouble in supplying the quantities you are interested in from_____________
12. Our business activities in European market are successful this year. Our _____________ sales there are as
high as $US3 million.