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Definition Of Management
 “The process of administering and coordinating resources
FUNDAMENTAL OF MANAGEMENT effectively, efficiently, and in an effort to achieve the goals of
(MGT162) the organization” (Lewis)
 “The process of planning, organizing, leading & controlling
CHAPTER 1 (part 1): INTRODUCTION TO that encompasses human, material, financial & information
MANAGEMENT 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)

Definition of Organization & Manager Why do we need an organization?

Organization 1. Accomplish objectives
 “A group of individuals who work together toward common goals” o To help us to achieve our objectives
(Lewis)
o E.g.You come to UiTM to study & obtain a diploma
 “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
2. Preserve knowledge
interact to achieve a common goal or a set of goals” (Stone) o Organization is also needed because it is a place where
Manager knowledge / information is preserved.
 “An organizational member who is responsible for planning, o E.g. To know about our country’s history, we can go to
organizing, leading and controlling the activities of the museum.
organization so that its goals are achieved” (Lewis)

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Planning
Why do we need an organization?
3. Serve society
Organizing
o Organization is also needed to serve society
o E.g. We can always go to hospitals or clinics if we are not
feeling well or if we have certain illnesses Communication
GOALS
4. Provide Careers Leading

o Organization also provide us with career opportunities.

E.g. Some of us works in banks, others in some other
organizations. Those organizations provide individuals a
Controlling
place to go for work & earn salary every month.

Performance effectiveness & Performance efficiency

Measuring Managerial Performance as foundations for productivity &Managerial Success
High
Performance can be measured by looking at 2 criteria
1. Performance efficiency (“doing right things”)
 The ability to do the things right Effective and efficient. Goals are
Goals Attainment (achieve/not)

Effective but not efficient. Some achieve & resources are well
 An efficient manager is a manager who can achieve resources are wasted. utilized, area of high
outputs/results as expected. Managers who are able to utilize & productivity
-Effectiveness

minimize the cost of resources such as staff, finance, equipment

& raw materials. A B
2. Performance effectiveness (“doing the right things”) C D
 The ability to choose the right goals
 E.g. If the demand in the market for cars are small, compact & Neither effective nor efficient, Efficient but not effective. No
goals are not achieved, resources wasted resources , but goals not
economical cars, but the manager chooses to produce &
wasted in the process achieved
manufacture big, luxury & expensive cars, the manager is
considered to be ineffective.
Low
Poor Good
Resources Utilization (wasted/not)
-Efficiency

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The Management Process Managerial Levels

 Management is a process that contains several functions. It comprises of the  There are 3 levels of management :
activities of Planning, Organizing, Leading & Controlling (POLC)
Establish objective, policy & strategy, make
Top long-term decisions. E.g. CEO , President

Planning

3 levels of management
• Includes defining goals, establishing strategy & developing plans to coordinate managers
activities
Interpret top management directives into
operating plans, make implementation
Middle
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. managers
decision. E.g. Marketing Manager, H.R.
Manager

First-line Direct & support work on non-managerial

Leading • Includes motivating subordinates, directing others, selecting the most
effective communication channels & resolving conflicts managers/ Lower personnel , make short-term operating
decision. E.g. clerk.
level manager

Controlling • Monitoring activities to ensure that they are being accomplished as planned &
correcting any significant deviations Non-managerial Perform variety of task activities, using
personnel technical skills. E.g. driver.
LEADS
TO
ACHIEVING THE ORGANIZATION’S STATED PURPOSE
(GOALS/MISSIONS)

Type of managers Responsible for a single area Managerial Skills

of activity. E.g. Finance
Manager Manager, Marketing Manager  There are 3 basic skills required by managers :

By their level in By the range of

organization Technical skills (T) Human skills (H) Conceptual skills (C)
the organization
activities they are •Ability to use the •Is a skill that gives a •They are mental capabilities
responsible procedures, techniques & manager the ability to work that help managers see the
Top Mangers knowledge of a specialized effectively with other whole enterprise as well as
Functional Mangers field. people. It includes the ability the relationships that exist
•E.g. accountant, a heart to motivate, understand, among the various parts in
Middle Managers surgeon, & a civil lead & communicate, which the organization. This skill
engineer has a special a manager needs throughout gives the manager the ability
General Mangers knowledge relating to the his work. to coordinate & integrate the
specialize field. organization’s interests and
First-line Managers
activities.
Responsible for more complex units that
include many functional areas of activity. E.g.
Plant Manager

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Relative Skills needed for effective performance at

different level of management Managerial Roles
 According to Henry Mintzberg , managers perform ten (10)
C different inter-related roles in the organization
Top
H T
managers
1. Interpersonal roles
H T C 2. Informational roles Managerial Roles
Middle
3. Decisional roles
managers

First-line H T C
managers/ Lower
level manager

Interpersonal roles Informational roles

 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.

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Decisional roles
 Decisional roles (assists managers in making decisions that
solve problem or analyze & take advantage of opportunities) END OF CHAPTER 1 PART 1
 Entrepreneur : Manager tries to improve the unit & initiate
the changes. Write by : Nurfaizah Sahimi
 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.