5/8/2012

Definition Of Management
FUNDAMENTAL OF MANAGEMENT
(MGT162)
CHAPTER 1 (part 1): INTRODUCTION TO
MANAGEMENT

The process of administering and coordinating resources

effectively, efficiently, and in an effort to achieve the goals of

the organization (Lewis)
The process of planning, organizing, leading & controlling
that encompasses human, material, financial & information
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
A group of individuals who work together toward common goals
(Lewis)
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
interact to achieve a common goal or a set of goals (Stone)
Manager
An organizational member who is responsible for planning,
organizing, leading and controlling the activities of the
organization so that its goals are achieved (Lewis)

1.
o
o
2.
o
o

Accomplish objectives
To help us to achieve our objectives
E.g.You come to UiTM to study & obtain a diploma
Preserve knowledge
Organization is also needed because it is a place where
knowledge / information is preserved.
E.g. To know about our countrys history, we can go to
museum.

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Planning

Why do we need an organization?

Serve society
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
4. Provide Careers
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
place to go for work & earn salary every month.
3.

Organizing

Performance can be measured by looking at 2 criteria

1. Performance efficiency (doing right things)
The ability to do the things right
An efficient manager is a manager who can achieve
outputs/results as expected. Managers who are able to utilize &
minimize the cost of resources such as staff, finance, equipment
& raw materials.
2. Performance effectiveness (doing the right things)
The ability to choose the right goals
E.g. If the demand in the market for cars are small, compact &
economical cars, but the manager chooses to produce &
manufacture big, luxury & expensive cars, the manager is
considered to be ineffective.

GOALS

Controlling

Performance effectiveness & Performance efficiency

as foundations for productivity &Managerial Success
High

Goals Attainment (achieve/not)

-Effectiveness

Measuring Managerial Performance

Communication
Leading

Low
Poor

Effective but not efficient. Some

resources are wasted.

Effective and efficient. Goals are

achieve & resources are well
utilized, area of high
productivity

Neither effective nor efficient,

Efficient but not effective. No
goals are not achieved, resources wasted resources , but goals not
wasted in the process
achieved

Resources Utilization (wasted/not)

-Efficiency

Good

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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 :

Planning

Includes defining goals, establishing strategy & developing plans to coordinate

activities

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.

Leading

Includes motivating subordinates, directing others, selecting the most

effective communication channels & resolving conflicts

Controlling

Monitoring activities to ensure that they are being accomplished as planned &
correcting any significant deviations

LEADS
TO

3 levels of management

activities of Planning, Organizing, Leading & Controlling (POLC)

Establish objective, policy & strategy, make

long-term decisions. E.g. CEO , President

Top
managers

Interpret top management directives into

operating plans, make implementation
decision. E.g. Marketing Manager, H.R.
Manager

Middle
managers
First-line
managers/ Lower
level manager
Non-managerial
personnel

Direct & support work on non-managerial

personnel , make short-term operating
decision. E.g. clerk.

Perform variety of task activities, using

technical skills. E.g. driver.

ACHIEVING THE ORGANIZATIONS STATED PURPOSE

(GOALS/MISSIONS)

Type of managers
Manager

By their level in
the organization
Top Mangers

Responsible for a single area

of activity. E.g. Finance
Manager, Marketing Manager
By the range of
organization
activities they are
responsible
Functional Mangers

Middle Managers
General Mangers
First-line Managers

Managerial Skills
There are 3 basic skills required by managers :

Technical skills (T)

Ability to use the
procedures, techniques &
knowledge of a specialized
field.
E.g. accountant, a heart
surgeon, & a civil
engineer has a special
knowledge relating to the
specialize field.

Human skills (H)

Is a skill that gives a
manager the ability to work
effectively with other
people. It includes the ability
to motivate, understand,
lead & communicate, which
a manager needs throughout
his work.

Conceptual skills (C)

They are mental capabilities
that help managers see the
whole enterprise as well as
the relationships that exist
among the various parts in
the organization. This skill
gives the manager the ability
to coordinate & integrate the
organizations interests and
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)

Top
managers
Middle
managers
First-line
managers/ Lower
level manager

different inter-related roles in the organization

C
H

Interpersonal roles
Informational roles
3. Decisional roles
1.

2.

Managerial Roles

Interpersonal roles

Informational roles

Interpersonal roles (help manager in managing the

Informational roles (assists the manager in receiving &

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.

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)

Entrepreneur : Manager tries to improve the unit & initiate

the changes.

END OF CHAPTER 1 PART 1

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.