1. Fundamentals of
Management
Managers and Management

2. Who Are Managers And
Where Do They Work?
 Organization
 A systematic arrangement of people brought
together to accomplish some specific purpose;
applies to all organizations.
 Common Characteristics of Organizations
 Distinct purpose and goals
 People
 Systematic structure

3. 3 characteristics
A
B
Goals
People
Structure

4. Deliberate
Structure
Distinct
Purpose
People

5. People Differences
 Operatives
 People who work directly on a job or task and
have no responsibility for overseeing the work of
others.
 Managers
 Individuals in an organization who direct the
activities of others.

6. Identifying Managers
 First-line Managers
 Supervisors responsible for directing the day-to-
day activities of operative employees
 Middle Managers
 Individuals at levels of management between the
first-line manager and top management
 Top Managers
 Individuals who are responsible for making
decisions about the direction of the organization
and establishing policies that affect all
organizational members

7. Top
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
(Operatives)

8. Management ???
 Management
 The process of getting things done, effectively
and efficiently, through and with other people
 Efficiency
 Doing the task (thing) correctly; refers to the relationship
between inputs and outputs; seeks to minimize resource
costs
 Effectiveness
 Doing the right task (things) ; goal attainment

9. Goal
Attainment
Effectiveness (Ends)
Resource
Usage
Management Strives for:
Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Efficiency (Means)
Low Waste High Attainment

10. Low efficiency/high
effectiveness
-right goals ,poor use
of resources
-right product, high
price
High efficiency/High
effectiveness
-right goals, right use
of resources
-right product, right
price
Low efficiency/Low
effectiveness
-poor goals, poor use
of resources
-unwanted product
,high price
High efficiency/low
effectiveness
-poor goals, good use
of resources
-unwanted product
Efficiency, Effectiveness and Performance
EFFICIENCY
E
F
F
E
C
T
I
V
E
N
E
S
S
H
I
G
H
L
O
W
LOW HIGH

11. Management Processes
 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

12. Management Processes (cont’d)
 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

13. Planning
Defining goals,
establishing
strategy, and
developing
subplans to
coordinate
activities
Lead to
Organizing
Determining
what needs
to be done,
how it will
be done, and
who is to do it
Leading
Directing and
motivating all
involved parties
and resolving
conflicts
Controlling
Monitoring
activities
to ensure
that they are
accomplished
as planned
Achieving the
Organization’s
stated
purpose

14. The Process of Management
Planning
OrganizingControlling
Leading

15. Is The Manager’s Job Universal?
 Level in the Organization
 Do managers manage differently based on where
they are in the organization?
 Profit versus Not-for-profit
 Is managing in a commercial enterprise different
than managing in a non-commercial organization?
 Size of Organization
 Does the size of an organization affect how
managers function in the organization?

16. Is The Manager’s Job Universal?
(cont’d)
 Management Concepts and National Borders
 Is management the same in all economic, cultural,
social and political systems?
 Making Decisions and Dealing with Change
 Do managers all make decisions and deal with
change in the same ways?

17. What Do Managers Do? (cont’d)
 Mintzberg’s Management Roles
Approach (Exhibit 1.5)
 Interpersonal roles
 Figurehead, leader, liaison
 Informational roles
 Monitor, disseminator,
spokesperson
 Decisional roles
 Entrepreneur, disturbance handler,
resource allocator, negotiator

18. Managerial Roles identified by Mintzberg
INTERPERSONAL Figurehead
Leader
liaison
Set future goals
Set an example
Co-ordinate work of dept
heads
INFORMATIONAL Monitor
Disseminator
Spokesperson
Changes in
Environmental factors
Inside organization
organization’s rep
DECISIONAL Entrepreneur
Disturbance
Handler
Resource
allocator
Negotiator
Use of resources
Corrective actions during
crisis
Set budgets
Agreements with labour
unions
ROLE TYPE SPECIFIC ROLE EXAMPLE

19. What Do Managers Do? (cont’d)
 Skills Approach
 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

20. Management time spent
Top Managers
Middle Managers
First-Line Managers

21. Skills Needed at Different Management
Levels
Top
Managers
Middle
Managers
Lower-level
Managers
Importance
Conceptual
Skills
Human
Skills
Technical
Skills

22. Conceptual Human skills Technical
Top
Managers
Middle
Managers
First-Line
Managers
Conceptual, Human and Technical skills
needed by the three levels of Management

23. Specific Skills for Managers
 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.