MGT 162 : FUNDAMENTALS OF MANAGEMENTlib.kedah.uitm.edu.my/psblibrary/notes/bm111/layout/notes/MGT 162/1... · 1 - 1 MGT 162 : FUNDAMENTALS OF MANAGEMENT Pn. Norhidayah Ali Room #:

1

Copyright © Houghton Mifflin Company. All r ights reserved. 1 - 1

MGT 162 : FUNDAMENTALS OF

MANAGEMENT

Pn. Norhidayah AliRoom #: A3010

Ext.: 2515

Main Reference: Griffin, R W (2005). Management, 8th Edition, Houghton Miffin Company


TOPIC 1

INTRODUCTION TO MANAGEMENT


What Is an Organization?

• A group of people working together in a structured and coordinated fashion to achieve a set of goals.

• A social unit in which two or more people interact to achieve common goal or a set of goals.

• Collection of people working together in a division of labor to achieve a common purpose

2


How Do Managers Combine and Coordinate the Various Kinds of Resources?

• The following slide Figure 1.1 illustrates how managers* combine and coordinate the various kinds of resources:

*a person in an organization who is responsible for the work or performance of one or more persons


Figure 1.1: Management in Organizations


Measuring Managerial Performance

• Manager’s duty is to make sure that the organization achieves a high level of performance and its objective

• Its duty is to get thing done through people

• Manager’s performance can measured by looking at two criteria:– Performance efficiency– Performance effectiveness

3


Performance Efficiency

• the ability to do the things right• do something well with no waste of

time, energy and money• manager are able to utilize and

minimize the cost of resources (staff, finance, equipment, raw material) are also considered efficient.


Performance Effectiveness

• choosing the right goals • able to produce result that is wanted

and intended; producing successful result

• i.e. if the demand for market for cars is for small, compact and economical cars, but the manager chooses to produce and manufacture big, luxury and expensive cars, the manager is considered to be ineffective


What Is Management?

• A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and informational) with the aim of achieving organizational goals in an efficient and effective manner.

4


Management Process

• Manager must perform management functions in order for a manager to effectively manage an organization.

• Management is a process that contains several functions/activities


The Management Functions

Planning and Decision Making– Setting the organization’s goals and

deciding how best to achieve them.

Organizing– Determining how best to group

activities and resources.

Leading– Influencing the behaviors of others.– Motivating members of the

organization

Controlling– Monitoring and correcting activities


The Management Function

• The manager’s primary responsibility is to carry out the management Function.

• Figure 1.2 will illustrate the basic definitions and interrelationships of the basic managerial functions:

5


Figure 1.2: The Managerial Process


Kinds of Managers

Managing at Different Levels of the organization:Top Managers

• Small group of executives who manage the overall organization, the strategic level.

• i.e. CEO, President, SVPMiddle Managers

• A large group that implement the strategies developed at the top.

• i.e. Marketing Manager, Production Manager, HR Manager


Kinds/Types of Managers :First Type of Manager (By Level)

First-Line Managers– Responsible for putting

into operation the plans of higher and middle management

– Supervise and coordinate the activities of operating employees.

– i.e. foremen, production supervisor, technical supervisor

6


Figure 1.3: Kinds of Managers by Level and Area


Second Type of Managers (By Activity)

• Second type of managers is classified by their range of organizational activities for which they are responsible for

• They are known as :– Functional Manager

• Responsible for a single area of activity i.e. finance manager, marketing manager

– General Manager• Responsible for more complex units that include many

functional areas of activity i.e. plant manager


Type of Managers

Manager

By their level By range of activities

First line manager

Middle manager

Top Manager

Functional manager

General manager

7


Basic Managerial Roles and Skills

Regardless of level or area within an organization, all managers must play certain roles and exhibit certain skills in order to be successful, such as:– Do certain things.– Meet certain needs.– Have certain

responsibilities.


BASIC MANAGERIAL ROLES(by Henry Mintzberg)

Interpersonal : Involve people and other duties that are ceremonial and symbolic in nature

• Figurehead• Leader• Liaison, CoordinatorInformational : involve receiving,

collecting and disseminating info.• Monitor• Disseminator• SpokespersonDecisional : Revolve around making

choices• Entrepreneur• Disturbance Handler• Resource Allocator• Negotiator


The Three Interpersonal Roles

• Figurehead– Department head/representative

performing ceremonial duties i.e. greeting visitors,, signing legal documents, cutting-ribbon ceremony

• Leader– Responsible for hiring/staffing,

training and motivating subordinate

• Liaison, Coordinator– A person who perform and

interacts with other people outside the organization

8


The Three Informational Roles

• Monitor– Seeks and receives wide variety of

internal and external info to develop thorough understanding of organization and environment

– i.e. reading periodicals and report, maintaining personal contacts

• Disseminator– Transmits info received from outsiders

or from subordinates to members of the organization

– Holding info meetings; making phone calls to pass information

• Spokesperson– Transmit info to outsiders on

organization’s plan, policies, actions, results, etc

– Holding board meeting; giving info to media


The Four DECISIONAL ROLES• Entrepreneur

– Search for opportunities, new ideas, improvement and initiate changes

– i.e. organizing strategy and review sessions to develop new programs

• Disturbance Handler– Responsible for corrective action when

organization faces important, unexpected disturbances

– organizing strategy and review session that involve disturbances and crises

• Resource Allocator– Responsible for allocation of the resources in the

organization– i.e. scheduling, requesting authorization and

budgeting• Negotiator

– Responsible for representing the organization at major negotiations

– i.e. participating in union contract negotiations


Managerial Skills

• In addition to fulfilling roles, managers also need a number of specific skills.

• The most fundamental management skills are:– Technical– Interpersonal– Conceptual– Diagnostic– Communication– Decision-making– Time-management

9


Technical Skills

• Necessary to accomplish or understand the specific kind of work being done.

• These skills are especially important for first line managers.


Interpersonal Skills

• The ability to communicate with, understand, and motivate both individuals and groups.

• Be able to get along with:– Subordinates– Peers– Those at higher levels


Conceptual Skills

• A manager’s ability to think in the abstract.

• The mental capacity to:– Understand organizational

goals and its environment.– How the organization is

structured.– Viewing the organization

as system.

10


Diagnostic Skills

• Skills that enable a manager to visualize the most appropriate response to a situation.


Communication Skills

• A manager’s abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others.


Decision-Making Skills

• A manager’s ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities.

11


Time-Management Skills

• The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.


Comprehensive Analysis of Management: The Classical Approach

The Classical Approach:– Ideas of the early 20th century theorists

and managers – This perspective actually includes two

different viewpoints: • scientific management and • administrative management.


Scientific Management

• Concerned with improving the performance of individual workers.

• Frederick Taylor developed this system, which he believed would lead to a more efficient and productive work force.

12


Administrative Management

• Whereas scientific management deals with the jobs of individual employees, administrative management focuses on managing the total organization.

• It is more appropriate for stable and simple organizations


Scientific vs Administrative Management

• Scientific management focused on employees within organization and on ways to improve their productivity.

• Administrative management focused on total organization and on ways to make it more efficient and effective.


Comprehensive Analysis of Management: The Contingency Approach

• also known as situational approach• it says that organizations are different,

face different situations (contingencies) and require different ways of managing

• organizations can vary by size, technology, environment uncertainty and individual differences

13


In-Class Exercise

• Q: Identify three management skills and explain how the proportion of the skills need differ at each management level


– Conceptual Skills

– Interpersonal / Human Skills

– Technical Skills

Documents

MGT 162 : FUNDAMENTALS OF MANAGEMENTlib.kedah.uitm.edu.my/psblibrary/notes/bm111/layout/notes/MGT 162/1... · 1 - 1 MGT 162 : FUNDAMENTALS OF MANAGEMENT Pn. Norhidayah Ali Room #: