CH 01

1
Introduction to
Management
Learning Outcomes
After studying this chapter, you should be able to:

 Define organization and management
 Explain the importance of management
 Describe the management process or functions of
P-O-L-C
 Describe a manager, the levels of management, and
management skills
 Understand the types of managers, and describe their
roles and the changing nature of their work
 Discuss the trials of management
Principles of Management (Third Edition) All Rights Reserved

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Introduction
 For most of our lives, we are members of one

organization or another.
 These organizations are put and kept together by a
group of people who see that there are benefits
available from working together towards a common
goal or goals.
 This chapter introduces management principles and
theories, and the challenges of applying these
principles and theories in today’s business
environment.

Definition of an Organization
 An organization is defined as a systematic

arrangement of people brought together to
accomplish some specific purpose.
 Characteristics of an organization:
– A distinct goal and purpose
– Comprises people working together to
accomplish certain objectives
– A systematic structure
– An aim to serve society

Definition of Management
 Classic definition:
– Mary Parker Follett, one of the earlier theorists of
management, defined management as the art of
getting things done through people.
 Broad definition:
– Management can be defined as the process of
consolidating and managing resources effectively
and efficiently in an effort to achieve the goals of
the organization.

Importance of Management
 Management achieves organizational goals

 Management efficiently utilizes resources
 Management is essential for prosperity of
society
 Management addresses the challenges of
management
 Management establishes equilibrium

Process of Management
 A process is a way of doing things, which is on-

going (continuous) and systematic.
 Management is a process which emphasizes
that all managers, regardless of their specific
aptitudes or skills, engage in certain interrelated
functions to achieve certain desired goals.

Management Functions
 Planning
– the process of defining goals, establishing strategies
and developing action plans to coordinate activities
towards accomplishing organizational goals.
 Organizing
– the process of determining what needs to be done,
how it will be done and who is to do it.

Management Functions (cont.)
 Leading
– the process of directing and influencing all
organizational members involved, motivating them
and resolving conflicts towards achieving
organizational goals.
 Controlling
– the process of monitoring activities to ensure that
they are accomplished as planned.

Managers and Management
 The term ‘manager’ refers to someone who is

responsible for carrying out the four main activities
of management in relationships over a specific time.
 One way to grasp the complexity of management is
to understand that managers play important roles at
different levels in an organization.
 These managers carry out a wide range of
organizational activities related to an organization’s
success.

Levels of Management
 Top level management

– responsible for the overall management of an organization
– They are called executives. They establish operating
policies and guide the organization’s interaction with its
environment.
 Middle level management
– direct the activities of lower level managers and
sometimes those of operating employees
– direct activities which implement their organization policies
and balance organizational demands on managers with
the capacities of their employer

Levels of Management (cont.)
 Lower level management

– responsible for the work of non-management
employees, but do not supervise other managers
and are also directly responsible for the
production of goods or services

Skills of Management
 Technical skills
– ability to utilize job specific knowledge of tools,
techniques and procedures which are specific
to a particular field to perform a task
 Human skills
– ability to work effectively with one’s own work
group as well as others in an organization

Skills of Management (cont.)
 Conceptual skills
– ability to analyze and diagnose a situation to
determine cause and effect. This skill is also
defined as an ability to process information from
both internal and external environments of an
organization and determine related implications

Scope and Responsibilities
of Managers
 General Manager
– responsible for managing several different divisions or
departments
– makes decisions across the different functions and
ensures that staff rewards are tied to the performance
of entire units
 Functional Manager
– in charge of one major function, for instance a
department in an organization
– can also be considered someone who manages a work
unit that is grouped based on specific functions
Roles of Managers
 Interpersonal  Decisional
– Figurehead – Entrepreneur
– Liaison – Disturbance
– Leader handler
 Informational – Resource
– Monitor allocator
– Disseminator – Negotiator
– Spokesperson

Levels and Roles of Managers
and the Nature of Organizations
The roles played by a manager may differ depending on
the size of the company and the nature of its business
(e.g. profit-oriented or not-for-profit organization).
 Small- and medium-sized companies: the spokesperson
and the entrepreneurial roles are important as they
establish networking opportunities.
 Big companies: the resource allocator and the liaison
roles are more important as they have more resources
to be distributed.
 Even so, all the roles are interrelated and must be
executed to the best of the abilities of the managers.

The New Manager or
Leader Profile
The characteristics of today’s managers include:

 No longer considered ‘the boss’, instead act as
sponsors, team leaders or internal consultants.
 No longer in control from the top of the pyramid, neither
try to control actions from the side-line.
 Empowering individual employees to do what is
necessary to achieve goals.
 Making sure employees have the resources to get jobs
done.

Challenges of Management
 Change is inevitable; today’s managers must view change as

a constant feature in their lives.
 Managers leading organizations must continuously operate in
a context that is very complex and dynamic, forcing them to
continually adjust to these changing conditions.
 Some of the prevalent and concurrent trials of management
are:
– Internet and Information Technology
– Globalization
– Diversity and Intellectual Capital
– Ethical Practice and Social Responsiveness
Managing Globalization


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1

After studying this chapter, you should be able to:

Principles of Management (Third Edition) All Rights Reserved

 For most of our lives, we are members of one

Principles of Management (Third Edition) All Rights Reserved

 An organization is defined as a systematic

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

 Management achieves organizational goals

Principles of Management (Third Edition) All Rights Reserved

 A process is a way of doing things, which is on-

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

 The term ‘manager’ refers to someone who is

Principles of Management (Third Edition) All Rights Reserved

 Top level management

Principles of Management (Third Edition) All Rights Reserved

 Lower level management

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

The characteristics of today’s managers include:

Principles of Management (Third Edition) All Rights Reserved

 Change is inevitable; today’s managers must view change as

Principles of Management (Third Edition) All Rights Reserved

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