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Chapter 1 (Management Functions and Organization)

Management involves planning, organizing, leading, and controlling organizational resources to efficiently achieve goals. The four functions of management are planning and decision making, organizing, leading, and controlling. Managers at different levels and in different areas help organizations operate effectively. Management draws on both science and art by using logical problem-solving skills but also conceptual, communication, and interpersonal abilities. Theories and history help inform modern management practices.

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26 views

Chapter 1 (Management Functions and Organization)

Management involves planning, organizing, leading, and controlling organizational resources to efficiently achieve goals. The four functions of management are planning and decision making, organizing, leading, and controlling. Managers at different levels and in different areas help organizations operate effectively. Management draws on both science and art by using logical problem-solving skills but also conceptual, communication, and interpersonal abilities. Theories and history help inform modern management practices.

Uploaded by

tasintasin5432
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 1

Management Functions and


Organization
What is Management?
• A set of activities
(planning and decision making, organizing, leading, and
controlling)
• directed at an organization’s resources
(human, financial, physical, and information)
• with the aim of achieving organizational goals
• in an efficient and effective manner.
Basic Purpose of Management
EFFICIENTLY
Using resources wisely and in a cost-effective way

EFFECTIVELY
Making the right decisions and successfully
implementing them
Efficiency Vs. Effectiveness
Efficiency: Operating in such a
way that resources are not
wasted

Successful
Management

Effectiveness: Doing the right


things in the right way at the
right times
What is a Manager?
Someone whose primary responsibility is to carry out
the management process.
Someone who plans and makes decisions, organizes,
leads, and controls human, financial, physical, and
information resources.
Manager
• An individual who is in charge of a certain group of tasks, or a certain
subset of a company. A manager often has a staff of people
who report to him or her.
As an example, a restaurant will often have a front-of-house manager
who helps the patrons, and supervises the hosts; or

• A specific office project can have a manager, known simply as


the project manager.
-Certain departments within a company designate their managers to
be line managers, while others are known as staff managers, depending
upon the function of the department.
Kinds of Managers by Level and Area
Kinds of Managers by Level
Top Managers
The relatively small group of executives who manage the organization’s
overall goals, strategy, and operating policies.
Middle Managers
Largest group of managers in organizations who are primarily
responsible for implementing the policies and plans of top managers.
They supervise and coordinate the activities of lower-level managers.
First-Line Managers
Managers who supervise and coordinate the activities of operating
employees.
Kinds of Managers by Area
Marketing Managers
Work in areas related to getting consumers and clients to buy the
organization’s products or services.
Financial Managers
Deal primarily with an organization’s financial resources.
Operations Managers
Concerned with creating and managing the systems that create
organization’s products and services.
Kinds of Managers by Area
Human Resource Managers
Involved in human resource planning, recruiting and selection, training
and development, designing compensation and benefit systems,
formulating performance appraisal systems.
Administrative Managers
Generalists who are familiar with all functional areas of management
and who are not associated with any particular management specialty.
Other Kinds of Managers
Specialized managerial positions directly related to the needs of the
organization.
Management in Organizations

Planning and Organizing


Decision Making
Inputs from the
environment Goals Attained
• Human • Effectively
• Financial • Efficiently
• Physical
• Information
Controlling Leading
The Management Process
Planning and Decision
Organizing
Making
Determining how best to
Setting the organization’s
group activities and
goals and deciding how best
resources
to achieve them

Leading
Controlling
Motivating members of the
Monitoring and correcting
organization to work in the
ongoing activities to
best interests of the
facilitate goal attainment
organization
The Management Process
• Planning and Decision Making
Setting an organization’s goals and selecting a course of action from a set of
alternatives to achieve them.
• Organizing
Determining how activities and resources are grouped.
• Leading
The set of processes used to get organizational members to work together to
advance the interests of the organization.
• Controlling
Monitoring organizational progress towards goals.
Fundamental Skills
Technical

Interpersonal

Conceptual
Skills and the Manager
Diagnostic

Communication

Decision Making

Time Management
Fundamental Management Skills
Technical
Skills necessary to accomplish or understand the specific kind of work being
done in an organization.
Interpersonal
The ability to communicate with, understand, and motivate both individuals
and groups.
Conceptual
The manager’s ability to think in the abstract.
Diagnostic
The manager’s ability to visualize the most appropriate response to a
situation.
Fundamental Management Skills
(cont’d)
Communication
The manager’s abilities both to convey ideas and information effectively
to others and to receive ideas and information effectively from others.
Decision-Making
The manager’s ability to recognize and define problems and
opportunities correctly and then to select an appropriate course of action
to solve the problems and capitalize on opportunities.
Time-Management
The manager’s ability to prioritize work, to work efficiently, and to
delegate appropriately.
Fundamental Management Skills
Management: Science or Art?
The Science of Management
Assumes that problems can be approached using rational, logical,
objective, and systematic ways.
Requires technical, diagnostic, and decision-making skills and techniques
to solve problems.

The Art of Management


Decisions are made and problems solved using a blend of intuition,
experience, instinct, and personal insights.
Requires conceptual, communication, interpersonal, and time-management
skills to accomplish the tasks associated with managerial activities.
The Importance of Theory and History
Why Theory?
A theory is a conceptual framework for organizing knowledge and providing
a blueprint for action.
Management theories, used to build organizations, are grounded in reality.
Most managers develop their own theories about how they should run their
organizations.
Why History?
An awareness and understanding of important historical developments in
management are also important to contemporary managers in furthering the
development of management practices and in avoiding the mistakes of others
in the past.

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