INTRODUCTION TO MANAGEMENT AND

ORGANIZATIONS
Chapter 1
ORGANIZATIONS
It’s a deliberate arrangement of people to accomplish some
specific purpose
A systematic arrangement of people brought together to accomplish
some specific purpose; applies to all organizations—for-profit as well
as not-for-profit organizations.

Common characteristics
⚫ Goals
⚫ Structure
⚫ People
ORGANIZATIONS
Goals
⚫ an organization has a distinct purpose.
Structure
⚫ all organizations develop some deliberate structure within
which members do their work. That structure may be open
and flexible, with no specific job duties or strict adherence to
explicit job arrangements. (Google vs Procter & Gamble)
People
⚫ each organization is composed of people.
COMMON CHARACTERISTICS OF ORGANIZATIONS
WHO ARE MANAGERS AND WHERE DO THEY
WORK?

• Traditional view/modern view

• Manager
– Someone who coordinates and oversees the work of other
people so that organizational goals can be accomplished
– Individuals in an organization who direct the activities of
others
WHO ARE MANAGERS AND WHERE DO THEY
WORK?

• A manager’s job is not about personal achievement—it’s

about helping others do their work.
• That may mean coordinating the work of a departmental
group, or it might mean supervising a single person. It
could involve coordinating the work activities of a team
with people from different departments or even people
outside the organization, such as temporary employees or
individuals who work for the organization’s suppliers.
CLASSIFYING MANAGERS
• First-line Managers
– Individuals who manage the work of non-managerial employees.
(shift managers, department managers, office managers etc. )
– Supervisors responsible for directing the day-to-day activities of
operative employees
• Middle Managers
– Individuals who manage the work of first-line managers. (project
managers, regional managers, store managers, etc.)
– Individuals at levels of management between the first-line manager
and top management
• Top Managers
– Individuals who are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire
organization. (EVP, Managing Director, Chief Operating Officer)
MANAGERIAL LEVELS
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,
through and with other people
⚫ Efficiency
Means doing the thing correctly; refers to the relationship between
inputs and outputs; seeks to minimize resource costs
⚫ Effectiveness
Means doing the right things; goal attainment
WHAT IS MANAGEMENT?
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output for the least inputs

– Effectiveness
• “Doing the right things”
– Attaining organizational goals
EFFICIENCY AND EFFECTIVENESS
EFFECTIVENESS AND EFFICIENCY IN
MANAGEMENT
WHAT MANAGERS DO?
Three Approaches to Defining What Managers Do.
Functions they perform.
Roles they play.
Skills they need.
• Functions Manager’s Perform
• Planning, Organizing, Leading , Coordinating &
Controlling
– Planning
• Defining goals, establishing strategies to achieve goals, developing
plans to integrate and coordinate activities.
– Organizing
• Arranging and structuring work to accomplish organizational goals.
MANAGEMENT PROCESS
Planning
⚫ Includes defining goals, establishing strategy, and developing
plans to coordinate activities
Organizing
⚫ Includes determining what tasks 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
⚫ Includes motivating employees, directing the activities of
others, selecting the most effective communication channel,
and resolving conflicts
Controlling
⚫ The process of monitoring performance, comparing it with
goals, and correcting any significant deviations
MANAGEMENT FUNCTIONS
MANAGEMENT PROCESS ACTIVITIES
DISTRIBUTION OF TIME PER ACTIVITY BY
ORGANIZATIONAL LEVEL
WHAT MANAGERS DO?
• Management Roles (Mintzberg)
– Interpersonal roles
• Figurehead
• Leader
• Liaison
– Informational roles
• Monitor,
• Disseminator
• Spokesperson
– Decisional roles
• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator
IMPORTANCE OF MANAGERIAL ROLES IN SMALL
AND LARGE BUSINESSES
SKILLS MANAGERS NEED
– Technical skills
• Knowledge and proficiency in a specific field. Often, employees with
excellent technical skills get promoted to first-line manager.
• A manager’s ability to use the tools, procedures, and techniques of a
specialized field
– Human/Interpersonal skills
• The ability to work well with other people. Because all managers deal
with people, these skills are equally important to all levels of
management.
• Managers with good human skills get the best out of their people.
• A manager’s ability to work with, understand, mentor, and motivate
others, both individually and in groups
SKILLS MANAGERS NEED
– Conceptual skills
• The ability to think and conceptualize about abstract and complex
situations concerning the organization. Using these skills, managers
see the organization as a whole, understand the relationships among
various subunits, and visualize how the organization fits into its
broader environment.

• A manager’s mental ability to coordinate all of the organization’s

interests and activities

– Political skills
A manager’s ability to build a power base and establish the right
connections
SKILLS NEEDED AT DIFFERENT
MANAGEMENT LEVELS
SPECIFIC SKILLS FOR MANAGERS
Specific Skills
⚫ Behaviors related to a manager’s effectiveness:
Controlling the organization’s environment and its resources.
Organizing and coordinating.
Handling information.
Providing for growth and development.
Motivating employees and handling conflicts.
Strategic problem solving.
HISTORICAL ROOTS OF CONTEMPORARY
MANAGEMENT PRACTICES
The Pre-modern Era
⚫ Ancient massive construction projects
Egyptian pyramids

Great Wall of China

⚫ Michelangelo the manager

ADAM SMITH’S CONTRIBUTION TO THE FIELD OF
MANAGEMENT
Wrote the Wealth of Nations (1776)
⚫ Advocated the economic advantages that organizations and
society would reap from the division of labor:
Increased productivity by increasing each worker’s skill and
dexterity.
Time saved that is commonly lost in changing tasks.

The creation of labor-saving inventions and machinery.

THE INDUSTRIAL REVOLUTION’S INFLUENCE ON
MANAGEMENT PRACTICES
Industrial revolution
⚫ Machine power began to substitute for human power
Lead to mass production of economical goods

⚫ Improved and less costly transportation systems became

available
Created larger markets for goods.

⚫ Larger organizations developed to serve larger markets

Created the need for formalized management practices.
CLASSICAL CONTRIBUTIONS
Classical approach
⚫ The term used to describe the hypotheses of the scientific
management theorists and the general administrative
theorists.
Scientific management theorists
Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt

General administrative theorists

Henri Fayol and Max Weber
SCIENTIFIC MANAGEMENT
Frederick W. Taylor
⚫ The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define the “one best
way” for a job to be done
⚫ Believed that increased efficiency could be achieved by
selecting the right people for the job and training them to do it
precisely in the one best way.
⚫ To motivate workers, he favored incentive wage plans.
⚫ Separated managerial work from operative work.
TAYLOR’S FOUR PRINCIPLES OF MANAGEMENT
Develop a science for each element of an individual’s work,
which replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the
worker. (Previously, workers chose their own work and
trained themselves as best they could.)
Heartily cooperate with the workers so as to ensure that all
work is done in accordance with the principles of the science
that has been developed.
Divide work and responsibility almost equally between
management and workers. Management takes over all work
for which it is better fitted than the workers. (Previously,
almost all the work and the greater part of the responsibility
were thrown upon the workers).
SCIENTIFIC MANAGEMENT CONTRIBUTORS
Frank and Lillian Gilbreth
⚫ Bricklaying efficiency improvements
⚫ Time and motion studies (therbligs)
Henry Gantt
⚫ Incentive compensation systems
⚫ Gantt chart for scheduling work operations
ADMINISTRATIVE MANAGEMENT
General administrative theorists
⚫ Writers who developed general theories of what managers do
and what constitutes good management practice
⚫ Henri Fayol (France)
Fourteen Principles of Management: Fundamental or universal
principles of management practice
⚫ Max Weber (Germany)
Bureaucracy: Ideal type of organization characterized by division of
labor, a clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships
HENRI FAYOL’S FOURTEEN PRINCIPLES OF
MANAGEMENT
Division of work Centralization
Authority Scalar chain
Discipline Order
Unity of command Equity
Unity of direction Stability of tenure of
personnel
Subordination of the
individual Initiative
Remuneration Esprit de corps
MAX WEBER’S IDEAL BUREAUCRACY
Division of Labor
Authority Hierarchy
Formal Selection
Formal Rules and Regulations
Impersonality
Career Orientation
MAX WEBER’S IDEAL BUREAUCRACY
Division of labor
⚫ Jobs are broken down into simple routine and well defined
tasks
Authority Hierarchy
⚫ Offices or positions are organized in a hierarchy, each lower
one being controlled and supervised by a higher one
Formal Selection
⚫ All organizational members are to be selected on the basis of
technical qualifications demonstrated by training, education
or formal examination
MAX WEBER’S IDEAL BUREAUCRACY
Formal rules and regulations
⚫ To ensure uniformity and to regulate the actions of
employees, managers must depend heavily on formal
organizational rules
Impersonality
⚫ Rules and controls are applied uniformly, avoiding
involvement with personalities or personal preferences of
people
Career Orientation
⚫ Managers are professional officials rather than owners of
units they manager. They work for fixed salaries and pursue
their careers within the organization
THE ORGANIZATION AND
ITS ENVIRONMENT