CHAPTER 1: INTRODUCTION TO

MANAGEMENT

After completing this chapter, students should

be able to:
Define what management is
Identify and explain the basic managerial
functions
Understand the roles that managers play
Describe the three levels of managers in
terms of the skills that they need and the
activities in which they are involved

 The

process
of
administering
and
coordinating resources effectively, efficiently,
and in an effort to achieve the goals of the
organization (Lewis)

The process of planning, organizing, leading,

& controlling that encompasses human,

material, financial & information resources in
an organizational environment (Holt)
The process of planning, organizing, leading

& controlling the efforts of an organization

members & of using all other organizational
resources to achieve stated organizational
goals (Stoner)

Organization
A group of individuals who work together toward
common goals (Lewis)
The structure of relationships that exits when 2 or more
people mutually cooperates to pursue common
objectives (Holt)
An organization is a social unit in which 2 or more
people interact to achieve a common goal or a set of
goals (Stone)
Manager
An organizational member who is responsible for
planning, organizing, leading, and controlling the
activities of the organization so that its goals are
achieved (Lewis)

Accomplish objectives
To help us to achieve our objectives
e.g. You come to UiTM to study & obtain a diploma
Preserve knowledge
Organization is also needed because it is a place
where knowledge/ information is preserved
e.g. To know about our countrys history we can
go to the museum

Serve society
Organization is also needed to serve society
e.g. We can always go to hospitals or clinics if we
are not feeling well or if we have certain illnesses
Provide careers
Organization also provide us with career
opportunities. Some of us work in banks, others
in some other organizations. Those organizations
provide individuals a place to go for work & earn
salary every month

GOAL
S

 Performance can be measured by looking at 2 criteria:

Performance efficiency (doing things right)

The ability to do the things right. An efficient

manager is a manager who can achieve outputs/
results as expected. Managers who are able to utilize
& minimize the cost of resources such as staff,
finance, equipment & raw materials
Performance effectiveness (doing the right things)

The ability to choose the right goals

e.g. If the demand in the market for cars is form
small, compact & economical cars, but the manager
chooses to produce & manufacture big, luxury &
expensive cars, the manager is considered to be
ineffective

Goal Attainment
(Efectiveness)

High

Effective & efficient.

Goals are achieve &
resources are well
utilized, area of high
B productivity

Effective but not

efficient. Some
resources are wasted.

Neither effective nor

efficient, goals are not
achieved, resources
wasted in the process.

Efficient but not

effective. No wasted
resources, but goals
not achieved.

Low
Poor

Resource
Utilization
(Efficiency)

Good

 Management is a process that contains several functions. It

comprises of the activities of Planning, Organizing, Leading

& Controlling (POLC).
Includes defining goals, establishing strategy &
developing plans to coordinate activities.

PLANNING
ORGANIZING

Determine what tasks are to be done, who is to do

them, how the task are to be grouped, who reports
to whom & where decisions are to be made.

LEADING

Includes motivating subordinates, directing others,

selecting the most effective communication
channels, & resolving conflicts.

CONTROLLING

Monitoring activities to ensure that they are being

accomplished as planned & correcting any
significant deviations.

LEADS TO
ACHIEVING THE ORGANIZATIONS STATED
PURPOSE (GOALS/ MISSION)

There are 3 levels of management:

3 levels of
management

Establish objectives, policy &

strategy, make long-term
decisions. E.g.: CEO,
President
Interpret top management
directives into operating
plans, make implementation
decision. E.g.: Marketing
Manager, H.R. Manager

Direct & support work on

non-managerial
personnel, make shortterm operating decision.
E.g.: Clerk
Perform variety of task
activities, using technical
skills. E.g.: Driver

Responsible for
a single area of
activity. E.g.:
Finance
manager,
Marketing
manager

Responsible for
more complex
units that
include many
functional areas
of activity. E.g.:
Plant manager

There are 3 basic skills required by managers:

Human
skill

Technica
l skill

Conceptua
l skill

According to Henry Mintzberg, managers perform

ten different inter-related roles in the organization.

Interpersonal roles (help manager in managing the

organization smoothly)
Figurehead- A department head performing ceremonial

duties like greeting visitors, signing legal documents.

Leader- A person who is responsible for hiring, training
& motivating subordinates in the organization.
Liaison- A person who perform & interacts with other
people outside the organization.

 Informational roles (assists the manager in receiving

& communicating the information to make the right

decision)
Monitor- Manager continuously seeks information
that can be used to advantage.
Disseminator- Information received internally or
externally will be transmitted to the subordinates.
Spokesperson- Information will be transmitted to
people outside the organization or unit.

 Decisional roles (assists managers in making decisions

that solve problem or analyze & take advantage of

opportunities)
Entrepreneur- Manager tries to improve the unit &
initiate the changes.
Disturbance handler- Manager is responsible for
corrective actions when the organization faces
important, unexpected disturbances.
Resource allocator- Manager is responsible in
allocating the resources of the organization.
Negotiator- Manager is responsible for representing
the organization at major negotiations.