Course Name: PRINCIPLES OF MANAGEMENT

BUS 1201

Coordinator: Dr. Fakher Jaoua

FACULTY OF BUSINESS
STUDENT AFFAIRS
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MANAGEMENT
Fifteenth Edition, Global Edition

 Chapter 1
 Introduction to Management and
Organizations

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 1) Who are managers?
2) What is the difference between managers and
nonmanagerial employees?
3) Managerial levels (titles)
CHAPTER 1
4) What is management?
OUTLINE 5) Managerial concerns

6) Efficiency and effectiveness in management

INTRODUCTION TO
MANAGEMENT AND 7) What do managers do?
ORGANIZATIONS
8) What are organizations?
9) Managerial skills

10)Why study management?

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LEARNING OBJECTIVES
After reading this chapter, the student should be able to:
1.1 Tell who managers are and where they work.
1.2 Explain why managers are important to organizations.
1.3 Describe the functions, roles, and skills of managers.
1.4 Describe the factors that are reshaping and redefining the
manager’s job.

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1. WHO IS A MANAGER?

▪ Manager: someone who coordinates

and oversees the work of other
people so that organizational goals
can be accomplished.
▪ A manager’s job is not about
personal achievement—it’s about
helping others do their work.
2. WHAT IS THE DIFFERENCE BETWEEN MANAGERS AND NONMANAGERIAL
EMPLOYEES?

▪ Managers are individuals in an • Non-managerial employees

organization who direct and oversee (operatives) are people who work
the activities of other people in directly on a job or task and have
the organization so organizational goals no responsibility for overseeing
can be accomplished. the work of others.
❑ For example:
✓ The person who take
your order at MacDonald's.
✓ Employees who ring up
your sale at Metro.
▪ Example: CEO, Marketing & Sale ▪ Example: workers, team members
Manager and supervisors
• An individual who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals is a
manager.
1. TRUE.
2. FALSE

• A manager must coordinate and oversee the

work of other people so that organizational goals
can be accomplished.
1. TRUE.
2. FALSE
3. WHAT LEVELS DO MANAGERS HAVE?
CLASSIFYING MANAGERS

 First-Line Managers: manage the work

of non-managerial employees
 Middle Managers: manage the work of
first-line managers
 Top Managers: responsible for making
organization-wide decisions and establishing
plans and goals that affect the entire
organization.
3. WHAT LEVELS DO MANAGERS HAVE?
CLASSIFYING MANAGERS
Top management Middle management First – line managers
✓ Responsible for making ✓ Manage the work of first-line ✓ Manage the work of nonmanagerial
organization-wide decisions and managers and can be found employees who typically are involved
establishing the plans and goals that between the lowest and top with producing the
affect the entire organization. levels of the organization. organization’s products or servicing
the organization’s customers.
These individuals typically have titles They may be called: May be called
such as: • Regional Manager • Supervisors
• Executive vice president • Project Manager • Shift Managers,
• President • Division Manager • Department Managers
• Chief executive officer (CEO) • Office Managers.

Non–managerial level
They are organizational members who worked directly on a job or task, had no one reporting to them and have
no responsibility to oversee the work of others. (Not a managerial level)
• Supervisor is another name for first-
line manager.
1. TRUE.
2. FALSE

• Managers with titles such as regional

manager, project leader, or division
manager are middle managers.
1. TRUE.
2. FALSE
• In traditionally structured
organizations, managers can be
classified as first-line managers,
middle managers, or top managers.
1. TRUE.
2. FALSE
• Middle managers are responsible for
making organization-wide decisions
and establishing the plans and goals
that affect the entire organization
1. TRUE
2. FALSE.
4. WHAT DO MANAGERS DO?
WHAT IS MANAGEMENT?

 Management involves coordinating

and overseeing the work activities
of others so that their activities
are completed efficiently and
effectively.
 The process of getting things done
effectively and efficiently, with and
through people.
 A process refers to a set of ongoing
and interrelated activities (Planning,
Organizing, Leading and Controlling).
5. MANAGEMENT CONCERNS
EFFICIENCY AND EFFECTIVENESS
▪ Management is concerned with efficiency and effectiveness.

Efficiency Effectiveness
❑ Doing things right. ❑ Doing the right things.
❑ Getting the most output from the least ❑ Attaining organizational goals.
amount of input (It is a relationship
between inputs and outputs).
❑ Efficiency is concerned with the means of ❑ Effectiveness is concerned with the ends,
getting things done. or attainment of organizational goals.
❑ Efficient managers are the ones who ❑ Effective manager is the one who
efficiently minimize resource usage and achieve the organizational goals (no
costs. matter how much resources used).
EFFICIENCY AND EFFECTIVENESS

NOTE THAT:
Efficiency is concerned with the
means (or ways) of getting
things done while effectiveness
is concerned with the ends (or
goals).

Exhibit 1.4 shows that 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
5. MANAGEMENT CONCERNS
EFFICIENCY AND EFFECTIVENESS
▪ Managers can increase efficiency by:
1. Getting more outputs from the same input
2. Getting the same outputs from fewer inputs
3. Getting more outputs from fewer inputs
Efficiency = outputs / inputs

 Note that:
 Efficiency and Effectiveness are interrelated.
 Poor management (which leads to poor performance) usually involves being inefficient and ineffective
or being effective, but inefficient.
 IT'S ALL ABOUT BALANCE : Efficiency is important; effectiveness is absolutely critical.
• The ability to complete activities efficiently and effectively with and through other people is known as
management.
1. TRUE.
2. FALSE
• Management involves ensuring that work activities are completed efficiently and effectively by the people
responsible for doing them.
1. TRUE.
2. FALSE
• An automobile manufacturer increased the total number of cars produced while keeping the production
costs the same. The manufacturer increased its efficiency.
1. TRUE.
2. FALSE
• Effectiveness is associated with doing things right.
1. TRUE
2. FALSE.
• Effectiveness refers to getting the most output from the least amount of input.
1. TRUE
2. FALSE.
• Effectiveness is concerned with the ends, or attainment of organizational goals.
1. TRUE.
2. FALSE
WHAT DO MANAGERS DO?

 Management researchers have developed three approaches to describe what

managers do:
1. Functions
2. Roles
3. Skills.

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6. WHAT DO MANAGERS DO?
MANAGEMENT FUNCTIONS
• Managers perform certain activities or functions as
they efficiently and effectively coordinate the work of
others.
 All managers perform four functions: planning,
organizing, leading, and controlling
1. Planning: Defining goals, establishing strategies to
achieve goals, and developing plans to integrate and
coordinate activities
2. Organizing: Arranging and structuring work to
accomplish organizational goals
3. Leading: Working with and through people to
accomplish goals
4. Controlling: Monitoring, comparing, and
correcting work
6. WHAT DO MANAGERS DO?
MANAGEMENT FUNCTIONS

 All managers perform four functions: planning,

organizing, leading, and controlling
1. Planning: Defining the organizational purpose and
ways to achieve it.
2. Organizing: Arranging and structuring work to
accomplish organizational goals.
3. Leading: Directing the work activities of others.
4. Controlling: To evaluate how well an organization
has achieved its goals and to take any corrective
actions needed to maintain or improve
performance.
6. WHAT DO MANAGERS DO?
MANAGEMENT FUNCTIONS

• Planning: Set goals, establish strategies for achieving those goals, and develop plans to integrate and
coordinate activities.
• Organizing : Determine what tasks are to be done, who is to do them, how the tasks are to be
grouped, who reports to whom, and where decisions are to be made.
• Leading : Motivate subordinates, help resolve work group conflicts, influence individuals or teams
as they work, select the most effective communication channel, or deal in any way with employee behavior
issues.
• Controlling
✓ To ensure that goals are being met and that work is being done as it should be, managers must
monitor and evaluate performance.
✓ Actual performance must be compared with the set goals.
✓ If those goals aren’t being achieved, it’s the manager’s job to get work back on track.
✓ This process of monitoring, comparing, and correcting is the controlling function.
6. WHAT DO MANAGERS DO?
MANAGEMENT FUNCTIONS

Exhibit 1.5 shows the four functions used to describe a manager’s work: planning,
organizing, leading, and controlling.
MANAGEMENT FUNCTIONS

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▪ Today, the basic management functions include
________.
A) planning, organizing, commanding, and coordinating
B) planning, organizing, coordinating, and controlling
C) planning, organizing, directing, and controlling
D) planning, organizing, leading, and controlling.
▪ Establishing strategies for achieving organizational
goals is a part of the planning function.
1. TRUE.
2. FALSE
▪ Organizing includes determining who does what tasks.
1. TRUE.
2. FALSE
▪ Motivating subordinates is primarily associated with
the management function of organizing.
1. TRUE
2. FALSE.
7. MINTZBERG’S MANAGERIAL ROLES AND A CONTEMPORARY
MODEL OF MANAGING

 Roles: specific actions or

behaviors expected of and showed
by a manager.
 Mintzberg identified 10 roles grouped
around interpersonal
relationships, the transfer of
information, and decision
making.

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7. MINTZBERG’S MANAGERIAL ROLES AND A CONTEMPORARY
MODEL OF MANAGING

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TYPES OF ROLES
 Interpersonal
 leader, liaison
(communicate/facilitate),
Figurehead
 Informational
 Monitor, disseminator
(spread), spokesperson
 Decisional
 Entrepreneur, disturbance
handler, resource allocator,
negotiator

Exhibit 1.6 shows the managerial roles identified by Mintzberg.

 WHAT ROLES DO MANAGERS PLAY?

Henry Mintzberg observed that a manager’s job can be described by ten roles performed by
managers in three general categories:
1. Interpersonal Roles: Roles that managers assume to provide direction and
supervision to both employees and the organization as a whole.
 Examples: Figurehead, Leader, and Liaison

2. Informational Roles: Roles associated with the tasks needed to obtain and
transmit information in the process of managing the organization.
 Examples: Monitor, Disseminator and Spokesperson.

3. Decisional roles : Roles associated with methods managers use in planning

strategy and utilizing resources.
 Entrepreneur, Disturbance Handler, Resource Allocator and Resource Negotiator

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▪ The informational roles involve collecting,
receiving, and disseminating information, according
to Mintzberg's managerial roles.
1. TRUE.
2. FALSE
8. WHERE DO MANAGERS WORK?
WHAT ARE ORGANIZATIONS?

 Organization:
 A deliberate/ careful arrangement of people to
accomplish some specific purpose .
 An organized group of people with a particular
purpose. Such as Toyota Corp., university, football
teams.
 For example: College or university is an
organization, government departments, …… etc.
 Common Characteristics of Organizations
 Distinct purpose expressed in a goal or a set of goals.
 People working together to achieve the organizations
goal through a set of decisions and work activities.

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8. WHERE DO MANAGERS WORK?
WHAT ARE ORGANIZATIONS?

 Characteristics of the organization

1. Distinct Purpose - goals that the organization hopes to accomplish.
2. People - people to perform the work that’s necessary for the organization to achieve its goals.
3. Structure - may be open and flexible.

Exhibit 1.2 shows the three common characteristics of

organizations: distinct purpose, deliberate structure, and people.
9. MANAGEMENT SKILLS
Robert Katz and others describe three critical skills in managing

• Managers need 3 essential skills to do their

duties
• 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
organization

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9. MANAGEMENT SKILLS
Technical skills Human skills Conceptual skills
✓ The job specific knowledge and ✓ The ability to work well ✓ The skills managers use to think
techniques needed to proficiently with other people both and to conceptualize about
perform work tasks. individually and in a abstract and complex
✓ These skills tend to be more group. situations.
important for first-line managers ✓ Because all managers deal ✓ Using these skills, managers see
because they typically are managing with people, these skills the organization as a whole,
employees who use tools and are equally important to understand the relationships
techniques to produce the all levels of among various subunits, and
organization’s products or service management. visualize how the organization fits
the organization’s customers. ✓ Managers with good into its broader environment.
human skills know how to ✓ These skills are most important to
✓ Often, employees with excellent communicate, motivate, top managers.
technical skills get promoted to first- lead, and inspire
line manager. enthusiasm and trust.
9. MANAGEMENT SKILLS

Exhibit 1.7 shows the relationships of conceptual, human, and technical skills to
managerial levels.
9. MANAGEMENT SKILLS

Brief comparison
Technical skills Human skills Conceptual skills
Definition The job-specific The ability to work The skills managers use
knowledge and well with other to think and to
techniques needed to people both conceptualize about
proficiently perform individually and in a abstract and complex
work tasks. group. situations.

Management First-line managers All managerial levels Top managers

level
• Technical skills tend to be more important for first-line
managers since they manage employees who produce
the organization's product or service the organization's
customers.
1. TRUE.
2. FALSE
• Conceptual skills are less important to top managers
1. TRUE
2. FALSE.
CHAPTER (1) SUMMARY

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THANKS

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