• Describe the characteristics of an organisation

• Explain why managers are important to organisations

• Classify managers and non-managerial employees
• Define the terms: management, efficiency and
effectiveness
• Describe the functions, roles, and skills of managers
• Outline the factors that are reshaping and redefining
the manager’s job
• Explain the value of studying management
 What is an organisation?
• Organisation - A deliberate arrangement of
people assembled to accomplish some specific
purpose (that individuals independently could
not accomplish alone).
• Common Characteristics of Organisations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure
Figure 1.1: Characteristics of organisations
 Structure of an organisation

• Can be open, flexible and responsive without

hierarchy
• Also called as simple network
• E.g. Google, Ikea

• Can be traditional with clear hierarchy and job

descriptions, rules and regulations
• E.g. BHP Billiton, Westpac
 Table 1.1: The changing organisation

Some of the reasons for changing organisations are quest for more sustainable
organisational practices, global economic, social and environmental challenges,
increasing globalization and spread of information technology.
 Why are Managers Important?
• Organisations need their managerial skills and
abilities more than ever in these uncertain,
complex, and chaotic times.
• Managerial skills and abilities are critical in
getting things done.
• The quality of the employee/supervisor
relationship is the most important variable in
productivity and loyalty.
 Who Are Managers?
• Manager
– Someone who
coordinates and
oversees the work of
other people so that
organisational goals can
be accomplished.
– It is not about personal
achievement but helping
others to work and
achieve.
 Classifying Managers
• First-line Managers - Individuals who manage
the work of non-managerial employees. Such as
supervisors, shift managers, office managers, team leaders, forepersons
• Middle Managers - Individuals who manage
the work of first-line managers. Such as regional
manager, division manager, project leader, store manager, dean
• Top Managers - Individuals who are
responsible for making organisation-wide
decisions and establishing plans and goals that
affect the entire organisation. Such as managing director,
chief executive officer, chief operating officer, chairman of the board
Figure 1.2: Managerial levels
 What is management?
• Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.

Coordinating and overseeing the work of others is the

distinguishing aspect of a managerial position from
non-managerial one
 Effectiveness and Efficiency
• Efficiency
– “Doing things right”
– Getting the most output
for the least inputs
– Efficiently utilizing the
scarce resources and not
wasting resources.
– Concerned with the
“means” of getting
things done
• Effectiveness
– “Doing the right things”
– Attaining organisational
goals
– Doing those activities
that can help achieve
organisational goals
– Concerned with the
“ends” of attaining
organisational goals
Figure 1.3: Efficiency and effectiveness
in management
 What do managers do?
• Just as no two organisations are exactly alike,
so no two managers’ jobs are exactly alike!

• There are three specific categorization

schemes to describe what managers do:
1. Functions – what do they perform?
2. Roles – what do they play?
3. Skills – what do they need?
 Management Functions
• Planning - Defining goals, establishing strategies to
achieve goals, and developing plans to integrate and
coordinate activities.
• Organising - Arranging and structuring work to
accomplish organisational goals.
• Leading - Working with and through people to
accomplish goals.
• Controlling - Monitoring, comparing, and correcting
work.
Early 20th century Henry Fayol proposed: planning, organising, commanding,
coordinating and controlling
Mid-1950s: planning, organising, staffing, directing and controlling
Figure 1.4: Management functions
 Is the manager’s job universal?
Functional approach
• All managers perform the four basic functions but the degree
and emphasis differs depending on the managerial level.
• The content of the managerial functions changes with the
manager’s level.
 Management Roles
• Roles are specific actions or behaviors
expected of a manager.
• Expectations and responsibilities associated
with being the person in a role as manager
• Mintzberg identified 10 roles grouped around
interpersonal relationships, the transfer of
information, and decision making.
 Management Roles
• Interpersonal roles
– Managerial roles that involve people and other duties that are
ceremonial and symbolic in nature.
– Figurehead, leader, liaison
• Informational roles
– Managerial role that involve receiving, collecting and
disseminating information.
– Monitor, disseminator, spokesperson
• Decisional roles
– Managerial role that revolve around making decisions.
– Entrepreneur, disturbance handler, resource allocator,
negotiator
 Table 1.2: Mintzberg’s Managerial Roles
Role Description
Interpersonal
Figurehead Symbolic head; obliged to perform a number of routine duties of a legal or social nature
Leader Responsible for the motivation of subordinates; responsible for staffing, training and associated duties
Liaison Maintains self-developed network of outside contacts and informers who provide favors and information

Informational
Monitor Seeks and receives wide variety of internal and external information to develop thorough understanding
Disseminator Transmits information received from outsiders or from subordinates to members of the organisation
Spokesperson Transmits information to outsiders on organisation's plans, policies, actions , results, etc.

Decisional
Entrepreneur Searches organisation and its environment for opportunities and initiates ‘improvement projects’
Disturbance Responsible for corrective action when organisation faces important, unexpected disturbances
handler
Resource Responsible for the allocation of organisational resources of all kinds – making or approving all significant
allocator organisational decisions

Negotiator Responsible for representing the organisation at major negotiations

Source: H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973, pp. 93-4. Copyright © 1973 by Henry Mintzberg.
Reprinted by permission of Pearson Education, Upper Saddle River, NJ
 What Do Managers Do? (cont’d)
Management Roles Approach (Mintzberg)

1) Interpersonal roles
• Figurehead:- Symbolic head, perform duties of a legal or
social nature, e.g. greeting visitors, sign legal documents.
• Leader:- Motivating subordinate, staffing, training,
virtually all activities that involve subordinates.
• Liaison:- Maintain self-developed network of outside
contacts and informers who provide favors & information.
performing activities that involve outsiders, acknowledging
mail.
 What Do Managers Do? (cont’d)
Management Roles Approach (Mintzberg)
2) Informational roles
• Monitor:- Seeks & receives internal & external information
to develop thorough understanding of organisation &
environment. Reading periodicals & reports, maintaining
personal contacts.
• Disseminator:- Transmits information received from
outsiders or from subordinates to members of the
organisation. Holding informational meetings; making
phone call to relay information.
• Spokesperson:- Transmits information to outsiders on
organisation’s plans, policies, actions, results, etc. Holding
board meetings, giving information to media.
 What Do Managers Do? (cont’d)
Management Roles Approach (Mintzberg)
3) Decisional roles
– Entrepreneur:- Searches organisation and its environment for opportunities and
initiates improvement projects. Organising strategy and review sessions to develop
new programs to bring about changes.
– Disturbance handler:- responsible for corrective action when organisation faces
important, unexpected disturbances or crises. Resolve conflict among
subordinates. Organising strategy and review sessions that involve disturbances
and crises.
– Resource allocator:- responsible for the allocation of organisational resources of
all kinds- making or approving all significant organisational decisions. Scheduling;
requesting authorization; performing any activity that involves budgeting and the
programming of subordinate’s work
– Negotiator:- Responsible for representing the organisation at major negotiations.
Represent department during negotiation of union, purchase, sales, budgets;
represent departmental / organisational interest.
 Management Roles
• Recently, Mintzberg completed another hands-on
and up-close study on managers at work and
concluded that;
• Managing is about influencing action, helping
organisation and units to get things done.
• Managers does this in three ways
1. by managing actions directly
2. by managing people who take action
3. by managing information that propels people to take
action
 Is the manager’s job universal?
Roles approach
• Research has generally found that the relative degree and
mixture of roles by a particular manager will depend on the
functional area of the organisation
• manufacturing and production managers perform more of the
decisional roles
• marketing/ sales managers perform more of the interpersonal
roles
• Accounting managers perform more of the informational roles
• However, some roles are universal irrespective of functional
areas, such as the leader, liaison and disturbance handler
 Skills Managers Need
Research by Robert L. Katz found that managers need
three essential skills or competencies:
• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about
abstract and complex situations concerning the
organisation
What Do Managers Do? (cont’d)
Skills Approach (Robert)

1) Technical skills
• Job-specific knowledge and proficiency to perform
specific tasks.
• More important for lower level manager because they
typically manage employees who are using tools and
technology to produce product or provide services.
• Employees with excellent technical skill always get
promoted to first line manager.
What Do Managers Do? (cont’d)
Skills Approach (Robert)

2) Human skills
• The ability to work well with other people in a group.
• These skills are equally important at all levels of
management.
• Manager with good human skill are able to get the
best out of their people.
• Motivate, lead, and inspire enthusiasm and trust.
What Do Managers Do? (cont’d)
Skills Approach (Robert)
3) Conceptual skills
• The ability to think and conceptualize about abstract
and complex situations concerning the organisation
• Managers see organisation as a whole, understand the
relationship among various subunit, and visualize how
the organisation fits into its broader environment.
• These skills are most important at the top level
management levels.
Figure 1.5: Skills Needed at Different
Managerial Levels
 Table 1.3: Important managerial skills

In addition:
• Effective Communication
• Collaboration and team building
• Critical thinking and problem solving
 How is the manager’s job changing
The Importance of Customers
• Customers: the reason that organisations exist
– Managing customer relationships is the
responsibility of all managers and employees.
– Consistent high quality customer service is
essential for survival.
 How is the manager’s job changing
The Importance of Innovation
• Innovation
– Doing things differently, exploring new territory,
and taking risks.
– Managers should encourage employees to be
aware of and act on opportunities for innovation.
 How is the manager’s job changing
The Importance of Sustainability

• Sustainability -
a company’s ability to
achieve its business
goals and increase long-
term shareholder value
by integrating economic,
environmental, and
social opportunities into
its business strategies.
Figure 1.8: Changes impacting on the manager’s
job
 Why Study Management?
• Universality of Management
– The reality that management is needed
• in all types and sizes of organisations
• at all organisational levels
• in all organisational areas
• in all organisations, regardless of location
• the reality of work
• the way we manage our own lives
• the challenges and rewards of being a manager
Figure 1.10: Universal Need for Management
Table 1.4: Rewards and Challenges of Being a
Manager
 Terms to Know
• conceptual skills • management
• controlling • management roles
• decisional roles • manager
• eco-effectiveness • middle managers
• eco-efficiency • organisation
• effectiveness • organising
• efficiency • planning
• first-line managers • sustainability
• human skills • technical skills
• informational roles • top managers
• interpersonal roles • universality of
• leading management