Introduction to Management

and Organizations

Session 1/2
Common Programme 20.3
School of Business
NSBM Green University Town
Learning Outcomes
At the end of the session students should be able
to..

• Identify the key concepts of management

• Explainthe difference between efficiency
and effectiveness and their importance for
organizational performance
• Explain the process of Management
• Identify the roles and skills of managers
• Defineorganizations and reasons for
existence of organizations
THE NATURE OF MANAGEMENT:
The generally accepted definition can be written as,
“Management is the process of planning, organizing,
leading and controlling the work of members of an
organization, using available organizational resources
efficiently and effectively, to reach established
organizational goals.”
This definition covers a number of important points:
Management process, effectiveness & efficiency,
resources, organization, goals, etc.
Management is…

Efficiency
Efficiency
Getting
Gettingwork
work
done
donethrough
through
others
others Effectiveness
Effectiveness
Efficiency Vs Effectiveness
• Theprocess of getting things done,
effectively and efficiently, through and with
other people
• Efficiency
• Means doing the thing correctly; refers to the
relationship between inputs and outputs;
seeks to minimize resource costs
• Effectiveness
• Means doing the right things; goal attainment
• Productivity = Efficiency + Effectiveness
1–5
THE NATURE OF MANAGEMENT:
MANAGEMENT IS A SCIENCE
• Management is explained as a science, a profession and an
art. Let us examine why we describe management in this
manner.
• Many management issues and problems can be approached
in ways that are rational, logical, and systematic.
• Managers can gather data and information and use
quantitative models and decision making techniques to
arrive at correct decisions.
• When dealing with relatively routine and straightforward
issues, managers use the scientific approach to solve
problems.
6
THE NATURE OF MANAGEMENT:
MANAGEMENT IS AN ART
• Management is an art as managers often make
decisions and solve problems on the basis of
experience, personal insights and sense. For
example, for solving unusual and non-routine
problems requires this personal insight and sixth
sense.
•Successful managers apply the scientific methods
and knowledge in their own way to each and any
given situation, issue or problem.
• Some theorists argue that knowledge gathering
should be scientific and application of knowledge
should be artistic.
THE NATURE OF MANAGEMENT:
MANAGEMENT IS A PROFESSION
• Management is a profession as there are certain skills
and knowledge necessary for a successful manager.
• Technical and diagnostic skills are especially important
in managing a business.
• Management is not a formal or traditional profession,
but education and experience is necessary for a good
manager. For example, when making a decision on
centralization or decentralization of activities, or
organizing activities it should be done with specific
management concepts.
• So that effective management is a mix of the above
three.
Four Functions of Management

© Copyright 2004 McGraw-Hill. All rights reserved . 1–9

Figure 1.2
Who Are Managers?
• Manager
• Someone who coordinates and oversees
the work of other people so that
organizational goals can be accomplished.

© 2007 Prentice Hall, Inc. All rights reserved. 1–10

Classifying Managerial levels
MANAGEMENT LEVELS
The most common view considers three basic levels of
managers.
Top level managers
• They are responsible for managing the overall organization.
• Different titles are used for them. i.e. President, CEO, etc.
• Top managers establish goals, overall strategy, and
operating policies.
• They are mostly interrelated with the external environment.
• Major decisions related to the organization are made by
them.
School of Business, NSBM Green University Town 12/13/21 12
 Management Levels Cont…….

Middle level managers

• Common titles used are operations manager,
marketing manager, etc.
• They implement the policies and plans
developed by the top managers and supervise &
coordinate the activities of first line managers.
• Traditionally we find more middle level
managers in organizations, but with the recent
trend of ‘downsizing’, there is a greater removal
of managers from this level.
 Management Levels Cont…….

First line managers

• Superviseand coordinate the activities of
operating employees.
• Common titles are supervisor, coordinator.
• The relative importance of these skills may
differ according to various levels in the
organizational hierarchy, e.g. Technical skills
are of greatest importance at the supervisory
level, while conceptual skills are more
important at the top level
What Do Managers Do?
• Management Roles Approach
(Mintzberg)
• Interpersonal roles
• Figurehead, leader, liaison
• Informational roles
• Monitor, disseminator,
spokesperson
• Decisional roles
• Disturbance handler, resource
allocator, negotiator, entreprenuer
 Managerial Roles Cont…..
Decisional Roles
• Roles associated with methods managers
use in planning strategy and utilizing
resources:
• Entrepreneur—deciding which new
projects or programs to initiate and to
invest resources in.
• Disturbance handler—managing an
unexpected event or crisis.
• Resource allocator—assigning resources
between functions and divisions, setting
the budgets of lower managers.
• Negotiator—reaching agreements
between other managers, unions,
customers, or shareholders.
 Managerial Roles Cont…..
Informational Roles
• Roles associated with the tasks needed to
obtain and transmit information in the process
of managing the organization:
• Monitor—analyzing information from both the
internal and external environment.
• Disseminator—transmitting information to
influence the attitudes and behavior of
employees.
• Spokesperson—using information to
positively influence the way people in and out
of the organization respond to it.
 Managerial Roles Cont…..

Interpersonal Roles
• Roles that managers assume to
provide direction and supervision to
both employees and the organization
as a whole:
• Figurehead—symbolizing the
organization’s mission and what it is
seeking to achieve.
• Leader—training, counseling, and
mentoring high employee
performance.
• Liaison—linking and coordinating
the activities of people and groups
both inside and outside the 1–18

organization/department.
Managerial Skills
• Conceptual Skills
• The ability to analyze and diagnose a
situation and distinguish between cause
and effect.
• Human Skills
• The ability to understand, alter, lead, and
control the behavior of other individuals
and groups.
• Technical Skills
• The specific knowledge and techniques
required to perform an organizational
role. 1–19
What Is An Organization?
• An Organization Defined
• A deliberate arrangement of people to
accomplish some specific purpose (that
individuals independently could not accomplish
alone).
• Common Characteristics of Organizations
• Have a distinct purpose (goal)
• Composed of people
• Have a deliberate structure
Organization as a System
• In system there are some set of interacting
components

• The interactive behavior of those components

put them together to form an integrated whole.

• Those interactions among the elements take

place within a certain boundary

• Those elements interact and form an integrated

whole to achieve some goals common to all
Activities of a Business
Use of Limited Resources Production of Goods & Achievement of
Services Objectives

Land Line Functions Profit

Production Management
Labor Social Wellbeing
Capital Marketing Management Goodwill
Staff Functions Publicity
Entrepreneurship
Human Resource
Management

Financial Management

Information Management

3–22