Principles of Management Chapter 1

Principles of Management

Dr. Karim KobeissiIslamic University of Lebanon - 2013

1Chapter

Management and Managers

What Is Management?

Management is the process of getting things done efficiently and

effectively, with and through people.

•Doing the job efficiently means “doing things right” so that the

organization’s resources—its people, money, and equipment—are used

to their maximum.

•Getting things done effectively means “doing the right things,” that is,

tasks that help an organization reach its goals.

The difference between efficient and effective

The difference between efficient and effective is that efficiency means

performing the task with minimal cost, whereas effectiveness refers to

how useful the task it is.

For example, if a company is not doing well and they decide to train

their workforce on a new technology. The training goes really well - they

train all their employees in record time and tests show they have

absorbed the training well. But overall productivity doesn't improve. In

this case the company's strategy was efficient but not effective.

How Effectiveness & Efficiency Relate to Productivity?

Productivity is doing the right things (effectiveness) in the right way

(efficiency).

• Once you ensure employees are being effective and efficient, you will

see a rise in productivity.

• You should start measuring this productivity on a daily, weekly and

monthly basis. You can use metrics such as number of units

produced, sales or customer-satisfaction surveys.

How Are Managers Different from Nonmanagerial Employees?• Managers - A manager is someone who coordinates and oversees the

work of other people so that organizational goals can be accomplished. However, keep in mind that managers may have additional work duties not related to coordinating the work of others.

• Nonmanagerial Employees – People who work directly on a job or task and have no

responsibility for overseeing the work of others.– Examples: Associates and Team Members

Where Do Managers Work?

• Organization– A deliberate arrangement of people brought

together to accomplish a specific purpose• Common Characteristics of Organizations– Goals– People – Structure

What Titles Do Managers Have?

• Top Managers – Make decisions about the direction of the

organization– Examples: President, Chief Executive Officer, Vice-

President• Middle Managers – Manage the activities of other managers – Examples: District Manager, Division Manager

• First-line Managers – Direct nonmanagerial employees– Examples: Supervisor, Team Leader

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 1-15

What Do Managers Do: Fayol’s Approach

In the functions approach

proposed by the French

industrialist Henri Fayol, all

managers perform four

management activities or

functions.

Four Management Functions

• Planning – Defining the organizational purpose and ways to

achieve it.• Organizing – Arranging and structuring work to accomplish

organizational goals• Leading – Directing the work activities of others.

• Controlling – Monitoring, comparing, and correcting work

performance.

What Do Managers Do: Mintzberg’s Approach

Although the functions approach represents the most useful way to describe the manager’s job, Mintzberg’s roles give additional insight into managers’ work. Some of the 10 roles do not fall clearly into one of the 4 functions, since all managers do some work that is not purely managerial (a number of varied, un-patterned, and short-duration activities). As a result, Mintzberg defined manager’s job by categorizing ten roles that managers play, organized into the following three general categories:

1. Interpersonal Roles

2. Informational Roles

3. Decisional Roles

Mintzberg’s Managerial Roles

1. Interpersonal Roles involving subordinates and people outside the organization in the roles of figurehead, leader, and liaison.

2. Informational Roles that involves collecting, receiving, and disseminating information in the roles of monitor, disseminator, and spokesperson.

3. Decisional Roles that entails making choices in the roles of entrepreneur, disturbance handler, resource allocator, and negotiator.

What Are Management Roles?




What Do Managers Do : Katz’s Approach

Still another way of considering what managers do is to look at the skills or competencies they need to successfully achieve their goals. Robert Katz has identified three essential management skills:

Technical Skills: The ability to apply specialized knowledge or expertise.

Human Skills: The ability to work with, understand, and motivate other people, bothindividually and in groups.

Conceptual Skills: The mental ability to analyze and diagnose complex situations.

Is the Manager’s Job Universal?

• Level in the Organization• Profit vs. Nonprofit


Why Study Management?

• We all benefit from efficiently and effectively run businesses.

• Well-managed organizations prosper even in challenging economic times.

• After graduation, most students become managers or are managed.

What Factors Are Reshaping and Redefining Management?

Today, Managers everywhere face changing circumstances such as:- Changing workplaces (managing workers in both domestic and foreign workplaces).- Global economic uncertainties*.- Changing technologies.- Ethical and trust issues.

As a result, how they manage is also changing and affecting the way they plan, organize, lead, and control.

What Factors Are Reshaping and Redefining Management?

Two important changes to note are:

1- The increasing importance of customers.

2- Innovation.

Why Are Customers Important?

• Without customers, most organizations would cease to exist.

• Employee attitudes and behaviors play a big part in customer satisfaction.

• Managers must create a customer-responsive environment where employees are friendly, knowledgeable, and sensitive to customer needs.

Innovation • Innovation can be explained

as the use of new ideas that lead to the making of any new products, services or processes.

• Innovation means doing things differently, exploring new territory, and taking risks.

• The different types of innovation that you are likely to run across include product, process, supply chain and marketing. The latter is the creation of new methods to market your product.

• Innovation isn’t only important for high technology companies; it is essential in all types of organizations.


Innovation in Goods


Innovation in Services


Innovation in Technology


Innovation in Processes


Innovation in Marketing


Why Innovation is Important

• Reinforce Your Brand – Innovations gives organizational sustainability* such as brand maintenance.

• Responding to Competition and Trends – Innovation can help you to see what exists now in opportunities or which ones will likely pop up in the near future. Businesses which are successful don’t only respond to the current needs of their customers, but usually predict the future trends and come up with an idea, service or product that can meet the future demand quickly and effectively. In this way you can stay ahead of your competition as trends, technology or markets shift.

Why Innovation is Important (con)

• Making the Most of What You Have Already – It is not all about creating a new product or service which you can sell, but you also need to focus on your existing business procedures to improve your efficiency, attract some new customers, increase your profits and cut down on the amount of your waste.

• Having a Unique Selling Point – Generally, consumers will see innovation as something which adds value to products or a company. When this is used the right way, it can give you an advantage commercially, especially in a market that is saturated or shifting rapidly. It can get your more positive exposure in the media and your customers will be more willing to pay the extra money for something that is well-designed and new, rather than picking the less exciting and cheaper rival

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Principles of Management Chapter 1