INTRODUCTION TO MANAGEMENT

CHAPTER 1
Fundamentals of management
 1.1 Definition of Management

As far as the definition of management is concerned, it is rich in

definition. Hence, there is no one universally accepted definition of
management. This is because,
Management as a discipline is recent in origin: management as a field of
study is too young, to develop.

Management is so broad that it is difficult to encompass all of its

aspects in a single definition.

There are different approaches to management, definitions change as

the environment changes.

Therefore, management has been given various but mutually supportive

definitions by different authors and scholars. Some of definitions are:

09/19/2024 WSU, CBE, Dept of Management 2

Management is the art of getting things done through other
people by making the working condition conducive for others.

Management involves coordinating and overseeing the work

of others so that their activities are completed efficiently
and effectively.

Management is the utilization of scientifically derived

principles to examine and improve collective efforts or
production.

Management is the process of achieving organizational goals

through engaging in the five major functions of planning,
organizing, leading, staffing, and controlling.

Management is the process of coordinating all resources

through the five major functions of planning, organizing,
staffing, directing /leading and controlling to achieve
organizational goals/desired objectives
09/19/2024 WSU, CBE, Dept of Management 3
An Organization: A group of individuals who work
together toward common goals.

What do all organizations have in common? They are

composed of people whose efforts must be
coordinated if the organization is to accomplish its
goals.
Managers: are the people who plan, organize, lead,
and control the activities of the organization so that its
goals can be achieved.

09/19/2024 WSU, CBE, Dept of Management

1–4
 1.2 Significance Of Management

We can explain the value of studying management by looking at three

things:

The Universality of Management: We can say with absolute certainty that

management is needed in all types and sizes of organizations, at all
organizational levels and in all organizational work areas, and in all
organizations, no matter where they are located.

The Reality of Work: The reality, that for most of you once you graduate
from university and begins your career; you either will manage or be
managed

Rewards and Challenges of Being a Manager:

09/19/2024 WSU, CBE, Dept of Management 5

 1.3 Management
1.
Functions
Planni
Planning
ng is the most fundamental and
the most pervasive of all management
functions.
It is making decisions today about
future actions.
It involves selecting missions and
objectives and the actions to achieve
them
It covers all levels ranging from top
management to middle management group.

It thus involves:
• determination of long and short-range
objectives;
• development of strategies and
courses of actions to be followed for
09/19/2024 the achievement of ofthese
WSU, CBE, Dept 1–6 objectives;
Management
 2. Organizing
It focuses on allocating and arranging
human and non-human resources so that
plans can be carried out successfully
The process of determining the tasks to be
done, who will do them, and how those tasks
will be managed and coordinated.
Grouping the activities to create self-
contained jobs

Assignment of jobs to employees

Delegation of authority to enable them to perform

their jobs and to command the resources needed for
their performance.
09/19/2024 WSU, CBE, Dept of Management 7
 3. STAFFING:

Staffing involves filling and keeping

filled the positions in the organization
structure
It is concerned with locating
prospective employees to fill the jobs
created by the organizing process
It comprises several sub functions : manpower
planning, recruitment, selection, placement,
induction, and orientation , training and
development of employees, transfers, promotions,
termination and layoff

09/19/2024 WSU, CBE, Dept of Management 8

 4. Directing/Leading
has been termed as motivating,
influencing, guiding, stimulating
It is aimed at getting the members of
an organization move in the direction
that will achieve its objectives.
leading/leadership is the heart and
soul of management
Leading is the most complex
managerial function because it deals
with complex human behavior; and
because most problems in
organizations arise from people, their
desire, and behavior
09/19/2024 WSU, CBE, Dept of Management 9
 5.Controlling
is the measuring and correcting of activities
of subordinates to ensure that events
conform to plans.
It includes:- what is required to achieve goals
- measuring what actually happened and or is
being done.
Identifying deviations between planned and
actual results.
Taking corrective action
Ensuring that the organization is moving toward the
achievement of its goals.
WSU, CBE, Dept of
09/19/2024
Management 1–10
 1.4 Levels of Management
Is management the same throughout an
organization? Yes and No
Yes: because all managers perform the five
managerial functions.
No: because despite the fact that they perform
all managerial functions, they perform it with
different emphasis and scope.
Managers can be divided based on two criteria.
These are:
1) Levels of management (vertical difference)
2) Scope of responsibilities (horizontal
difference)
WSU, CBE, Dept of Management 09/19/2024 11
 A. Top level managers
Top-level managers are managers who are at the top of the
organizational hierarchy and are responsible for the entire
organization.
They are usually few in number and include the organization’s
most important managers

They provide strategic direction for the organization.

Have the ability to think, analyze causes, effects and

consequences.

the CEO or the president and his/her immediate subordinates

usually called vice-presidents

09/19/2024 WSU, CBE, Dept of Management 12

 2. Middle level managers
Middle level managers occupy a position in an
organization that is above first-line
management and below top management.
They interpret and implement top
management directives and forward
messages to and from first-line management.

They perform as a linkages between top

The objective
managers and is to allocate
first resource
line managers.
effectively and manage the first line
managers who supervise the work group so
that the overall goals of the organization can
be achieved.
E.g. Academic deans, Division Head, Plant
managers
09/19/2024 WSU, CBE, Dept of Management 13
 3. First Level Managers Level managers

Are those at the operating level or at the last

level of management?
The objective is to ensure that the products
and services of their organizations are
delivered to customers on a day-to day basis.
They are responsible for overseeing and
coordinating the work of operating
employees.
Their subordinates are non-managers.

E.g. Department Heads, Sales managers,

09/19/2024 WSU, CBE, Dept of Management 14

 Top

Organizing

Staffing

Controlling
Planning

Directing
Middle

First-line

The relative importance of the managerial

functions at different levels

09/19/2024 WSU, CBE, Dept of Management 15

 Top level of
management

Middle level
management

First level/
supervisory level
management

09/19/2024 WSU, CBE, Dept of Management 16

 B. Types of Managers based on scope of
responsibility
1. Functional managers
are responsible for work groups that are segmented
according to function.E.g. accounting, payroll,
finance, marketing, production, or sales etc.

2. General managers:

responsible for ensuring that several functions or

parts of the organization work together effectively.
They must coordinate and integrate the work of
diverse parts of the organization.

09/19/2024 WSU, CBE, Dept of Management 17

Scope of Responsibility: Functional and
General Managers

AAfunctional
functionalmanager
managerisis AAgeneral
generalmanager
managerisis
responsible
responsiblefor
foraawork
work responsible
responsiblefor
forseveral
several
group
group segmentedby
segmented by functional work groups.
functional work groups.
function.
function.
Chief Executive
General Parts
Inc.

VP of VP of Finance
Productio
n

Plant Service Account Payroll

Manager Manager Manager Manager

09/19/2024 WSU, CBE, Dept of Management

1–18
 1.5 Managerial Roles and Skills

1.5.1 Managerial Roles

Role is an organized set of behaviors that is

associated with a particular office or position.
It is a pattern of behavior expected by others
from a person occupying a certain position in
an organizational
Henry Mintzberghierarchy.
identified 10 managerial
roles, which are in turn grouped into three
categories:
Interpersonal,
Informational and
Decisional Roles.
09/19/2024 WSU, CBE, Dept of Management
1–19
 Mintzberg’s Managerial Roles (Managerial roles)

09/19/2024 WSU, CBE, Dept of Management

1–20
A. Interpersonal Roles involve developing and maintaining
positive relationships with significant others in the
organization.

1. Figurehead Role: managers perform symbolic duties of a

legal or social nature. Signing documents, presiding at a
ceremonial event, university president hands out a diploma for
graduates
2. Leadership Role: The manager is the environment creator
– s/he makes the environment conducive for work by improving
working conditions, reducing conflicts, providing feedback for
performance and encouraging growth.
The leader builds relationship and communicates with
employees, motivates & coaches them

3. Liaison Role/Coordinator role: The liaison maintains a

network of contacts outside the work unit to obtain information

09/19/2024 WSU, CBE, Dept of Management 21

B. Informational Roles focuses on the
transmission of important information to and from
internal and external sources. It involves the
following activities:
1. Monitor role: is also called information-
gathering role. This role refers to seeking,
receiving, screening, and getting information.
2. Disseminator Role: As the disseminator, the
manager passes on to subordinates some of the
information that would not ordinarily be
accessible to them.
3. Spokesperson/representative Role: the
spokesperson transmits information about the
organization to outsiders.

09/19/2024 WSU, CBE, Dept of Management 22

C. Decisional Roles: involve making
significant decisions that affect the
organization
1.Entrepreneur Role (initiator of
change): the manager acting as an
entrepreneur recognizes problems and
opportunities and initiates actions that will
move the organization in the desired
2.Disturbance
direction. Handler Role: solution-
seeking role.
3. Resource Allocator Role: decide on the
allocation of the organization’s physical,
financial, and human resources.
4. The Negotiator Role: represent the
organization in all important/major
negotiations.

09/19/2024 WSU, CBE, Dept of Management 23

 Managerial Skills

Technical Skills: The ability to utilize the knowledge

of tools, techniques, and procedures that are specific
to a particular field.
Human Skills: is the ability to interact effectively
with people. It is the ability to work with, understand,
and motivate other people, either as individuals or as
groups.
Conceptual Skills: It refers to the ability to see the
big picture – to view the organization from a broad
perspective and to see the interrelations among its
components.
Technical skill deals with things, human skill
concerns people and conceptual skill has to
do with ideas
24
09/19/2024 WSU, CBE, Dept of Management
 Skills Needed at Different Levels of Management

Top

Conceptual Skills
Human Skills
Middle

Technical Skills
First
-line

09/19/2024 WSU, CBE, Dept of Management

1–25
 1.6 Universality Of Management
Management is universal for the following
reasons.
All managers perform the five managerial
functions even if with different emphasis.
It is applicable for all human efforts
Management utilizes scientifically derived
operational principles.
All managers operate in organizations with
specific objectives.
Management, in all organizations, helps to
achieve organizational objectives.
09/19/2024 WSU, CBE, Dept of Management 26
 1.7 is Management science, art or profession?
Management as a science

It is an systematized body of knowledge constituting

concepts, theories, and principles concerning a
particular field of study.

Especially, it is knowledge obtained from observation,

test, and experimentation of facts; and it is universally
true; and applied in any country, organization.
1. Its principles are systematized body of
knowledge: As science, management is a
systematized body of knowledge representing a core of
principles or fundamental truths that tend to be true in
most managerial situations
This helps the manager to make decisions rationally
and objectively rather than a rule of thumb.
09/19/2024 WSU, CBE, Dept of Management 27
 2. Its principles are universally
applicable:
Scientific principles represent basic facts
about a particular field inquiry. These
principles may be applied in all situations and
at all times.
Management contains sound fundamental
principles, which can be universally applied.

E.g the principle of unity of command states

that at a time one employee should be
answerable to only one boss.

This principle can be applied in all types of

organization-business or non-business.
09/19/2024 WSU, CBE, Dept of Management 28
 3. It is based on scientific inquiry, observation,
test, and experiment:
Scientific principles are derived through scientific
investigation and reasoning.
Scientific principles do not reflect the opinion of an
individual or of a religious spiritual leader.
Management principles are also based on scientific
enquiry and investigation.
These have been developed through experiments and
practical experience of a large number of managers.
E.g it has been observed that wherever one employee
has two or more bosses simultaneously, confusion and
indiscipline are likely to arise, with regard to
following the instructions.
09/19/2024 WSU, CBE, Dept of Management 29
4. It explains the cause and effect
relationships among/between
various variables:
Principles of science lay down a cause
and effect relationship between related
factors.
E.g when water is heated up to 100ºC, it
starts boiling and turns into vapor.
Similarly, the principles of management
establish cause and effect relationship
between different variables.
E.g. lack of balance between authority
and responsibility will cause
management to become ineffective.
09/19/2024 WSU, CBE, Dept of Management 30
5. Its validity can be verifiable and can
serve as a reliable basis for predicting
future events:
Validity of scientific principles can be tested
at any time and any number of times.

Every time the test will give the same result.

E.g. the Law of Gravitation can be tested by
throwing various things in the air and every
time the object will fall on the ground.
Principles of management can also be
tested for their validity.
E.g. the principle of unity of command can be
tested by comparing two persons, one having
a single boss and other having two bosses.
The performance of the first person will be
higher than that of the second.
09/19/2024 WSU, CBE, Dept of Management 31
 Management is an Art due to the
following reasons:
1. Intelligence

2. Initiative

3. Innovative

09/19/2024 WSU, CBE, Dept of Management 32

4. Individual Approach

5. Application & Dedication

6. Result Oriented

09/19/2024 WSU, CBE, Dept of Management 33

 Management as an Art
Art implies the application of knowledge and skills to
bring about the desired results.

Art is characterized by using common sense,

personal feeling, beliefs,, etc.
The essential elements of arts are:
• Practical knowledge
• Personal skill
• Result oriented approach
• Creativity
• Improvement through continuous practice
WSU, CBE, Dept of
09/19/2024 Management 34
1. Practical knowledge
a person cannot become a successful
manager simply by reading the theory and
getting a degree or diploma in
management.
He must also learn to apply his knowledge
in solving managerial problems
2. Personal skill: management is
personalized.
Every manager has his individual approach
and style in solving managerial problems.
The success of a manager depends on his
personality in addition to his technical
knowledge.
09/19/2024
WSU, CBE, Dept of Management 35
3. Result-oriented approach: Every
manager applies certain knowledge and
skills to achieve the desired results
4.Creativity: management is creative. A
manager effectively combines and
coordinates the factors of production to
create goods and services
5. Improvement through people:
Practice makes one perfect. Manager
gains experience through regular practice
and becomes more effective.
09/19/2024 WSU, CBE, Dept of Management 36
 Generally “management is
both a science as well as an
art”.
It is a science because it has an
organized body of knowledge
It is known
consisting as anuniversal
of certain art because
facts. it
involves creating results through
practical application of knowledge and
skills.
However, art and science are
complementary to each other.
Science teaches one to know and art
to do.
Art without science has no guide and
science without art is knowledge
wasted.
09/19/2024 WSU, CBE, Dept of Management 37
Management as a Profession

Profession: is that occupation in which one professes

to have acquired specialized knowledge, which is
used either in instructing, guiding or advising
others.

• Body of specialized knowledge and

Technical proficiency: If an organization
needs to have a rational and scientific
decision making ability, managers have
to be specialized on a systematic body of
management.
• Formal/standardized Education and
Training: A certain field of study to be a
profession, it requires formal training and38
WSU, CBE, Dept of Management
09/19/2024
 3. Social Responsibility: Any organization has an
objective whether to make surplus, or provide
efficient services to the society, and the like.

therefore, managers have to take into account

the obligation to serve the society because their
existence depends on the service they give to
the society in general.

4. Code of conduct/professional Ethics: Mgt like

other discipline to be a profession, it is
subjected to the fulfillment of strict standards,
rules and regulations.

09/19/2024 WSU, CBE, Dept of Management 39

THE END OF CHAPTER
ONE

THANK YOU!!!

09/19/2024 WSU, CBE, Dept of Management 40