Management

CHAPTER ONE

INTRODUCTION TO
MANAGEMENT
 Introduction

Management is regarded as the most important of all human

activities. Everyone manages. We manage our life, careers,
time, and relationships. We tend not to think of these
activities as “managing” or of ourselves as being
“managers”. We can, simply, say that management is “a
way of life”. However, when the concepts of managing or
being managers are applied to organizations, the complexity
increases.
 Introduction

The term management is very comprehensive. Its use is

wide-spread and no organized effort can be successful
without proper management. As a result, some form of
management is found to exist in every type of human
organization.
 1. Organizations

 Definition of Organizations:

Organizations are an arrangement of people brought

together to accomplish a specific motive.
 1. Organizations

 Organizations have three main characteristics:

1) Organization have a distinct purpose, which is typically

expressed in terms of a set of goals. For example,
Hyundai CEO, has said his company’s goal is to “focus
on what creates the most value for shareholders by
delivering high-quality”.
2) In organizations people make decisions and engage in
work activities to achieve goals. The purpose or goal can
only be achieved with people.
 1. Organizations

 Organizations have three main characteristics:

3) Organizations develop a systematic structure that
defines and limits the behavior of its members. That
structure consists of rules and regulations that guides
people.
 1. Organizations
Types of Organizations:
Organizations are grouped into three categories: public, business and non-
governmental organizations (NGOs).
1- Public organizations: firms which are state-owned, non-profit seeking
and are funded by state budget to achieve public goals such as Helwan
university and the Ministry of Health .
2- Business organizations : These are profit seeking firms, privately
owned and financed by owners (capital) such as CIB, QNB, Orange, and
Vodafone .
3- Non- governmental organizations (NGOs): These are independent
civil society firms which are , non-profit seeking, based on voluntary work
and financed by donations such as community societies, charity
organizations and sport clubs.
 2. Managers and Non-managerial Employees

 Non-managerial employees:
Non-managerial employees are employees who have no
responsibility and work directly on the job or task. Examples of
non-managerial employees are team members, and associates.
 Managers:
Managers are people who supervise the activities of other people in
the organization. Some have managers work duties not only related
to supervising the activities of others. For example, regional sales
managers for BMW service customer accounts in addition to
supervising the activities of the other sales associates.
 3. Management Titles (Levels)

Managers have three main titles which are top, middle,

and first-line.
 Top managers
Top managers are responsible for making decisions and determining
the direction of the organization. They are those at the top of an
organization which establish policies and philosophies that affect
organizational members. Examples of top managers are vice
presidents, presidents, chancellors, managing directors, chief
executive officers, or chairperson of the board. \
 3. Management Titles (Levels)

Managers have three main titles which are top, middle,

and first-line.
 Middle managers
Middle managers manage other managers and are typically
responsible for translating the goals set by top managers into specific
details. They are found between the lowest and top levels of the
organization. They clarify goals so that lower-level managers
understand them. Examples of middle managers may include project
leader, district manager, division manager, or store manager.
 3. Management Titles (Levels)

Managers have three main titles which are top, middle,

and first-line.
 First-line managers
First line managers are responsible for directing the day-to-day
activities of non-managerial employees. Examples of first-line
managers are supervisors, team leaders, coaches and shift managers.
3. Management Titles (Levels)
 4. Definition of Management
 Management is the art of getting things done by a group of people with
effective utilization of available resources.
 According to F.W Taylor, Management is the art of knowing what you
want to do then seeing that it is done in the cheapest way.
 Management includes the activities of setting the strategy of an
organization and coordinating the efforts of its employees to
accomplish its objectives through the application of available resources,
such as financial, natural, technological, and human resources.
 Management is the coordination and administration of tasks to achieve
a goal. Such administration activities include setting the organization’s
strategy and coordinating the efforts of staff to accomplish these
objectives through the application of available resources.
 4. Definition of Management

 Management is the process of getting things done,

effectively and efficiently through people. A process
refers to a set of interrelated activities.

 Efficiency and effectiveness have to do with the work

being done and how it’s being done.
 4. Definition of Management

 Efficiency means doing a task correctly (doing things right).

Because managers deal with scarce inputs—including resources
such as people, money, and equipment—they’re concerned with
the efficient use of those resources. Managers want to minimize
resource usage and thus resource costs.
 Effectiveness means “doing the right things” by doing those work
tasks that help the organization reach its goals.
 Whereas efficiency is concerned with the means of getting things
done, effectiveness is concerned with the ends, or attainment of
organizational goals. Efficiency and effectiveness are different, but
in spite of this are interrelated.
 4. Definition of Management

Management is essential for an organized life. Good

management is essential of successful organizations.
 5. Functions of Management

There are basically four primary functions of management.

These are:

-Planning
-Organizing
-Directing
-Controlling
 5.1. Planning

 Planning includes defining goals, establishing strategy, and

developing plans to coordinate activities. This ensures that
work is kept in proper focus and helps members keep their
attention on what is most important.

 Planning is future-oriented and determines an organization’s

direction.
 5.2. Organizing

 Managers are also responsible for arranging and structuring work

to accomplish the organization’s goals. This function is called
Organizing, this includes determining what tasks are to be done
and by whom, how tasks are to be grouped, who reports to whom,
and who will make decisions.

 Organizing also includes a formal structure of authority and the

direction and flow of such authority through which work
subdivisions are defined, arranged and coordinated so that each
part is related to each other so as to attain the objectives.
 5.3. Directing

 The directing function is concerned with leadership,

communication and motivation so that the employees perform
their activities in the most efficient manner possible, in order to
achieve the desired goals.

 The leadership element involves guiding the subordinates about

procedures and methods. Part of a manager’s job is to direct and
coordinate the work activities of those people. This is the leading
function.
 5.3. Directing

 The communication must be open both ways so that the

information can be passed on to the subordinates and the feedback
received from them.

 Motivation is very important since highly motivated people show

excellent performance with less direction from superiors.
 5.4. Controlling

 Controlling involves monitoring, comparing, and correcting

work performance. Discovering any significant deviations and
correcting it means that managers get work back on track.

 The function of control consists of those activities consist of

establishing standards for work performance, measuring
performance and comparing it to these set standards and
taking corrective actions as and when needed, to correct any
deviations.
 7. Management Skills

Management skills refer to the experience of managers by doing

managerial tasks and assignments. Examples of managerial skills
include, preparing reports, and motivating employees. There are four
basic skills identified they are needed by all managers, conceptual,
interpersonal skill, technical and political skills.

 Conceptual skills are the skills managers use to analyze and

diagnose complex situations. They help managers see how things
fit together and facilitate making good decisions.
 7. Management Skills

There are four basic skills identified they are needed by all
managers, conceptual, interpersonal skill, technical and political
skills.

 Interpersonal skills are those skills involved with working well

with other people both individually and in groups. Because
managers get things done with and through other people, they
must have good interpersonal skills to communicate, motivate, and
delegate.
 7. Management Skills

There are four basic skills identified they are needed by all
managers, conceptual, interpersonal skill, technical and political
skills.
 Technical skills are the job-specific knowledge and techniques needed
to perform work tasks. For top-level managers, these abilities tend to be
related to knowledge of the industry and the organization’s processes.
For middle- and lower-level managers, these abilities are related to the
specialized knowledge required in the areas where they work for e.g
finance, human resources, marketing, and production.
 Political skills to build a power base and establish the right
connections.
 6. Management Roles

 Mintzberg made a categorization scheme for defining

managers roles. Mintzberg concluded that managers perform
10 different but interrelated roles.

 These roles are grouped around interpersonal relationships,

the transfer of information, and decision making.
 6. Management Roles

 The informational roles involve collecting, receiving, and

disseminating information. The three information roles
include monitor, disseminator, and spokesperson.
- Monitor: The manager seeks and receives information about
those factors which affect his activities. These factors may be
within the organization as well as outside it.
- Disseminator: the manager transmits information to
subordinates, peers, and superiors within the organization.
- Spokesperson: The manager represents his
organization while interacting with outsiders.
 6. Management Roles

 The interpersonal roles are ones that involve people

(subordinates and persons outside the organization). There are
three types of interpersonal roles of a manager in an organization;
Figurehead role, Leader role and Liaison role. .
- Figurehead: A manager plays a figurehead role when he performs
activities such as attending ceremonial functions which have symbolic
nature.
- Leader: Managers perform leader roles when they perform activities
such as hiring, training, motivating, and guiding subordinates.
- Liaison: Managers act as a mediator between the organization and the
outsider.
 6. Management Roles

 The decisional roles is making decisions or choices. The four

decisional roles are entrepreneur, disturbance handler, resource
allocator, and negotiator.
- Entrepreneur: Manager as an entrepreneur role takes initiative and
make changes or improvements in the activities of the Organization.
- Disturbance handler: The manager has in charge and takes corrective
action when organization faces unexpected crises.
- Resource allocator: A manager as the resource allocator role must
divide work and delegate authority among his subordinates.
- Negotiator: The manager represents the organization in bargaining and
negotiations with outsiders as well as insiders.
 6. Manager Roles
Category Role Activity
Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts.

Informational Disseminator Forward information to other organization members; send memos and reports, make phone
calls.
Spokesperson Transmit information to outsiders through
speeches, reports, memos.
Figurehead Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents.

Interpersonal Leader Direct and motivate subordinates; train, counsel, and communicate with subordinates.

Liaison Maintain information links both inside and outside organization; use e-mail, phone calls,
meetings.
Entrepreneur Initiate improvement projects; identify new ideas, delegate idea responsibility to others.

Decisional Disturbance handler Take corrective action during disputes or crises; resolve conflicts among subordinates;
adapt to environmental crises.
Resource allocator Decide who gets resources; schedule, budget, set priorities.

Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets;
represent departmental interests.
 8. Universality of Management

1. Management Process is Universal: The fundamental functions of

management like planning, organizing, staffing, leading and
controlling are performed by every manager in all organization.
2. Management Knowledge is Universal.
3. Management Skills and Principles are Transferable: Management
skills and principles are transferable from one person to another, from
one organization to another, actually, from one country to another.
4. Management is Culture-Bound: It is argued that different countries
have different cultures and varying levels of economic development.
Culture consists of attitudes, beliefs and values of a society. Since
management is people oriented so the application of management
principles will be affected by these factors.