INTRODUCTION TO MANAGEMENT

 Course Instructor
MADDA WALABU UNIVERSTY
Temhirit .A
COLLEGE OF BUSINESS
&ECONOMICS
Course Code MGMT1061
DEPARTMENT OF
Credit Hours 3
MANAGEMENT

Ch 1 -1
 CHAPTER ONE

FUNDAMENTALS
OF
MANAGEMENT

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 Definition of Management
 Management has been given various but mutually supportive definitions

by different authors and scholars. Among others the following are :

1. According to F.W. Taylor, "Management is the art of knowing what

you want to do... in the best and cheapest way.“

 is known as the “father of scientific management.”

2. According to Terry and Franklin, "Management is a distinct process
consisting of activities of planning, organizing, leading, and controlling,
performed to determine and accomplish stated objectives with the use of
human beings and other resources.(human, Physical and Informational)
 Co…
 Management is defined as the process of
planning, staffing, organizing, leading and
controlling the efforts of organization members
and of using all other organizational resources to
achieve stated organizational goals.

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 1.3. Managerial Functions an Overview

Regardless of the type, size and objective of the

firm, all managers have certain basic functions.

These are planning, organizing, staffing,
leading/directing/, and controlling.

The nature and scope of these functions differ from

manager to manager and from firm to firm.

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 Co…
Planning: It is a decision making process which involves

selection of missions and objectives and choose the best

course of action to achieve them from among alternatives.
It is a bridges the gap between the present and future

conditions of the organization. (From where we are and to

where we want to be in a desired future).
Planning is a decision making process that determines what to

be done, how it is to be done, why it is done, when it is to be

done, and by whom it is to be done.
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 Organizing
 It is a managerial activity that involves establishing an
intentional structure of roles for people to fill in an
organization.
 In other words, it is the process of creating an environment
for human performance depending on the objectives set.
 In short, organizing is the process of determining the role
by which an individual plays and the individual roles are
related and integrated to achieve the common organizational
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goal.
 Staffing
Staffing: It is the process of filling and keeping filled the

positions in the organization structure.

This is done by identifying work force requirements,

inventorying the people available, recruiting, selecting,

placing, promoting, compensating, training and
developing both candidates and current job holders to
accomplish their tasks effectively and efficiently.

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 Leading

Leading: It is influencing, motivating and

directing people so that they will contribute to
organization and group goals;
To be effective leader managers need to understand

individual and group behavior, techniques of

motivation, and effective styles of leadership.
 Controlling

Controlling: - is the measuring and correcting of activities of the

subordinates to ensure that events conform to plans.

It also involves taking corrective measures (actions) if negative

deviations exist.

 The controlling function involves the following steps:

 Establishing standards of performance:

 Measuring actual performance and comparing it against the plan the

goal /the established standard;

 Taking corrective actions when standards are not met or in
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 1.4. Levels of Management and Types of Managers
Managers can be classified into two ways,
By their level in the organization – so called first line,

middle and top managers and

By the range of organizational activities for which they are

responsible–so called Functional and General managers.

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 First line Managers

Managers who are responsible for the work of

operating employees only and do not supervise other

managers;
they are the first or lowest levels of managers in the

organizational hierarchy.
are managers at the firing/ in front line where most

concrete organizational tasks are performed.

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 Co…
It includes office managers, foreman, chief clerks,

supervisors, etc.
First level management is often called "supervisors".

They are mainly concerned with:

Planning of day to day work.
Assignment of jobs.
Keeping a watch on workers performance.
Sending reports and statements to superiors.
Maintaining close and personal contacts with

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workers and evaluation of their work.
 Middle Level Managers
Managers who direct the activities of lower level managers

and sometimes extend to supervision of operating

employees.
Their principal responsibilities are to direct the activities

that implement their organization's policies and to balance

the demands of their superiors with the capacities of their
subordinates.
The titles include Department heads, deputy department
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heads, branch managers, work managers, etc.
 Top Level Managers

 Composed of a comparatively small group of executives and they

are responsible for the overall management an

organization.
They establish operating policies and guide the
organization's interactions with environment.
Typical titles include president, senior vice president,

etc.
Responsibility of planning and executing broad policy
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decisions.
 Levels of Management

President
Top Level V.Presidant
Management

Middle Level Management General Mgr

Plant Mgr
Regional Mgr

First-Line
Office Manager
Management
Shift Supervisor
Team Leader
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 Functional and General Managers

Depends on the scope of the activities they manage.

1. Functional Managers:- these are managers who are

responsible for only one organizational activity, such as

production, marketing, sales, or finance.
 The people and activities headed by a functional manager
are engaged in a common set of activities.

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 2. General Managers
These managers, on the other hand, oversee a complex

unit, such as a company, a subsidiary, or an independent

operating division.
He or she is responsible for all the activities of that unit,

such as its production, marketing, sales, and finance.

Managers who are responsible for managing the entire

operations of more complex unit or division which may

have two or more functional units.
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 Managerial Roles and Skills
Managerial Roles
Managerial roles are specific categories of
behavior/managerial behavior. Managerial functions involve
"desired out comes".
These outcomes are achieved through the performance of

managerial roles (actual behavior).

In other words, Roles are the means and functions are the

ends of the manager's job.

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 Co…
Henry Mintzberg identified ten different but interrelated
organized sets of behavior, or roles. These ten roles can be
separated into three categories /general groupings.
A. Interpersonal roles: three managerial roles are enacted
when the manager engages in interpersonal relationship.
They are:
Figure head role: - this role is played by managers who
are required to perform duties of ceremonial and symbolic
in nature such as signing documents, receiving visitors,
etc.
e.g. when the president of a college hands out diplomas at
commencement/graduation.
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 Co…
 Leader role: - managers play this role through hiring, training,

motivating and disciplining employees to get the job done

properly.
 Liaison role: - managers play this role by contacting people

outside the group, by serving as a link in a horizontal (as well as

vertical) chain of communication.

- E.g. the sales manager who gains information from the personnel
manager with in the same company is an internal liaison.

- The sales manager who has contact with other sales executive
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through a making trade association is an External liaison.
 Co…
B. Informational roles: - All managers, to some degree, will
receive and collect information from organizations and
institutions outside his or her own. Managers play:
Monitor Role: - as a monitor, the manager tries to keep

informed about what is happening in the organization or

group.

Managers serve as a focal point for non-routine information;

they receive all types of information from news reports,
trade publications, magazines, clients, etc.
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 Co…
Disseminator role: - the information a manager gathers

as a monitor must be gleaned /gather and transmitted to

appropriate members of the organization.

As a disseminator, a manager sends out side

information into the organization and internal
information from one subordinate to another.
/Transmitting selected information to subordinates.

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 Co…
Spokes person role: - it is the role of a manager in

transmitting selected information to outsiders.

It is played by a manager whenever he/she represents the

organization or its position to other groups, including
their, government agencies, customer, and trade
organizations.
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 Co…
C. Decisional Roles: - Both interpersonal and informational

roles are really includes to the decisional role. It involves

decision-making. The manager plays this role as:
Entrepreneur: managers as an entrepreneur initiate and

oversee new projects that will improve their

organization's performance. (Designing and initiating
changes within the organization.

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Disturbance handler: - taking corrective actions in none

routine situations/the manager deals with situations our

which he or she has little control.
These may involve conflict between people or groups or

unexpected events outside the company may affect the

firm's operations.
Resource allocates: - managers play this role when they

are in a position to decide exactly who should get what

resources. (These resources include time, money, people-
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people, physical resources)
 Co…
Negotiator:- participating in negotiating sessions

with other parties (e.g. vendors and unions) to make

sure the organizations interests are adequately
represented.
Managers perform this role, in which they discuss and
bargain with other units to gain advantages for their
own unit.
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 Managerial Roles

InterpersonalInformational Decisional
Figurehead Monitor Entrepreneur

Disturbance
Handler
Leader Disseminator
Resource
Allocator

Liaison Spokesperson Negotiator

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 Managerial Skills
A skill is a person's or an individual's ability to do or

perform a certain thing expertly or intellectually.

Similarly, managerial skills are skills of a manage ability
of a manager to perform his duties and responsibilities
expertly.
These skills help managers to perform their activity in

efficient and effective way/manner for the achievement

of the objective of the organization.

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 Co…
 These managerial skills can be classified as:
1. Technical skills: These skills are the abilities of a
manager that are necessary to carry out a specific task.
It involves the ability to use specialized knowledge and
expertise with work related tools, procedures, and
techniques.
Technical knowledge is great importance at lower levels
where the organization's goods and services are produced.
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 Co…

2. Human Skill: the ability to work with, motivate, direct individuals or

groups in the organization whether they are subordinates, pears, or
superiors and the ability to resolve conflict.
Because, all tasks in an organization are done with people, these skills
are equally important to all levels of management. This skill includes:-
- Effective communication (writing and speaking);
- Creation of positive attitude toward others and

the work setting;

- Development of co-operation among group

members; and
- Motivation of subordinates.
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 Co…
3. Conceptual /Decision Making Skill: - the ability of a manager
"to see" the big picture of the organization /to view the
organization from a broad perspective.

It is the ability of a manager to see the organizational system in its

totality, how its different parts are interrelated and how they
affect each other.

A manager needs conceptual skills to recognize the

interrelationships of various situational factors, and; therefore,
make decisions that will be in the best interests of the
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 co…
They are most important in strategic (long range)

planning; therefore, it is top level

managers/executives who require more conceptual
skill than middle level managers and supervisors.

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 END OF
CHAPTER ONE

Any…
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