Lecture 1

Management and
Managers

Chapter 1
The Management Process Today

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives
1. Describe what management is, why management is important,
what managers do, and how managers utilize organizational
resources efficiently and effectively to achieve organizational goals
2. Distinguish among planning, organizing, leading, and controlling
(the four principal managerial tasks), and explain how managers
ability to handle each one can affect organizational performance
3. Differentiate among three levels of management, and understand
the tasks and responsibilities of managers at different levels in the
organizational hierarchy
4. Distinguish between three kinds of managerial skill, and explain
why managers are divided into different departments
5. Discuss the managerial roles that are commonly played by
managers
1-2

What is Management?
Management
The planning, organizing, leading, and controlling of human
and other resources to achieve organizational goals
effectively and efficiently

Organizations

Collections of people who work together and coordinate

their actions to achieve a wide variety of goals

Managers

The people responsible for supervising the use of an

organizations resources to meet its goals
Resources include people, skills, know-how, machinery,
raw materials, computers and IT, and financial capital

1-3

Achieving High Performance

Organizational Performance
A measure of how efficiently and effectively
managers use organizational resources to satisfy
customers and achieve organizational goals

1-4

Organizational Performance
Efficiency
A measure of how
well or productively
resources are used to
achieve a goal

Effectiveness
A measure of the
appropriateness of
the goals an
organization is
pursuing and the
degree to which the
organization achieves
those goals.

1-5

Efficiency, Effectiveness, and

Performance in an Organization
Figure 1.1

1-6

Why Study Management?

The more effective and efficient use an
organization can make of resources, the
greater the relative well-being of people
Almost all of us encounter managers because
most people have jobs and bosses
Understanding management is one important
path towards obtaining a satisfying career

1-7

Four Tasks of Management

Figure 1.2

1-8

Planning
Planning
Process of identifying and selecting appropriate
goals and courses of action

3 steps of planning process

1. Deciding which goals to pursue
2. Deciding what strategies to adopt to attain those
goals
3. Deciding how to allocate organizational resources

1-9

Organizing
Organizing
Structuring working relationships in a way that
allows organizational members to work together
to achieve organizational goals

Organizational Structure
A formal system of task and reporting
relationships that coordinates and motivates
organizational members so that they work
together to achieve organizational goals
1-10

Leading
Leading
Articulating a clear vision and energizing and
enabling organizational members so they
understand the part they play in attaining
organizational goals

1-11

Controlling
Controlling
Evaluating how well an organization is achieving
its goals and taking action to maintain or improve
performance

The outcome of the control process is the ability

to measure performance accurately and regulate
efficiency and effectiveness

1-12

Levels and Skills of Managers

Managers are differentiated according to their
level or rank in the organizations hierarchy
Managers are grouped into different
departments (or functions) based on their
specific job-related skills, expertise, and
experiences
Department
A group of people who work together and possess similar
skills or use the same knowledge, tools, or techniques to
perform their jobs
1-13

Levels of Managers
Figure 1.3

1-14

Levels of Management
First line managers
Responsible for the daily supervision of non-managerial
employees

Middle managers
Supervise first-line managers and are responsible for
finding the best way to use resources to achieve
organizational goals

Top managers
establish organizational goals, decide how departments
should interact, and monitor the performance of middle
managers
1-15

Levels of Managers
Top-management team
A group composed of the CEO, the COO, and the
vice presidents of the most important
departments of a company.

1-16

Relative Amount of Time That Managers

Spend on the Four Managerial Tasks
Figure 1.4

1-17

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

behaviour of other individuals and groups.

Technical skills

The job-specific knowledge and techniques required to

perform an organizational role.
Core competency
Specific set of skills, abilities, and experiences that
allows one organization to outperform its competitors
1-18

Types and Levels of Managers

Figure 1.5

1-19

Mintzbergs Managerial Roles

Interpersonal roles
Roles that involve interacting with other people
inside and outside the organization
Figurehead: represent company in public settings;
greets visitors.
Leader: identify and articulate the purpose of the
company
Liaison: connect different contacts and informers
Hill, C.W.L. & McShane, S.L. (2008) Principles of Management, International ed. New York: The McGraw-Hill Companies, Inc.
1-20

Mintzbergs Managerial Roles

Informational roles
Roles that involve collecting, processing and
disseminating information
Monitor: collect internal & external information
about the organization
Disseminator: distribute information to
employees using one-way communication
Spokesperson: transmits information to outsiders
on organizations plans, policies
Hill, C.W.L. & McShane, S.L. (2008) Principles of Management, International ed. New York: The McGraw-Hill Companies, Inc.
1-21

Mintzbergs Managerial Roles

Decisional roles
Whereas interpersonal roles deal with people and
informational roles deal with knowledge,
decisional roles deal with action
Entrepreneur: make decisions that result in
innovation
Disturbance handler: solve problems or address a
crisis
Resource allocator: make decisions about how
resources are used
Negotiator: discuss with others so as to come to
agreement on a problem
Hill, C.W.L. & McShane, S.L. (2008) Principles of Management, International ed. New York: The McGraw-Hill Companies, Inc.
1-22

Reference
McGraw-Hill Education (2014). BUS10306
Management customized text, Chapter 1 and
Additional Notes 1.

1-23