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CHAPTER 1

Introduction to Management

Management Defined
The process of administering and
coordinating resources effectively and
efficiently in an effort to achieve the
goals of the organization.

Why management is
considered as an art?
Management must posses vision
Management must use judgemental skill
Management is influenced by
contingency factors
However not all management authors
agree that mgt is an art.Some consider
management as a science.In fact most
management authors consider mgt as
both an art and a science.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

James Stoner
Definition of
management
Management is a process of
planning, organizing, leading
and controlling the effort of the
organizational members and
using all other resources in
order to achieve the
organizational goals efficiently
and effectively.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

Elements in Stoners definition


1.Management is a process
2.Management must use all
organizational resources
3.Management must
establish goals
4.management must be both
efficient and effective
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

Management is a process of
administering and coordinating
resources efficiently and effectively
to achieve the organizational goals.
( Lewis and others)
An organization consists of two or
more people working together
towards accomplishing common
goals.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

What Do All Organizations


Have in Common?
They are made up of people, and the
efforts of these people must be
coordinated if the organization is to
accomplish its goals.
MANAGERS!
Managers are the people who plan, organize,
lead, and control the activities of the
organization so that its goals can be achieved.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

Why organizations are needed

1.
2.
3.
4.

Serve the society


Accomplish objectives
Preserve knowledge
Provide careers

Explain management in terms of:


A) The management process
b) Managerial responsibility
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

Effectiveness vs. Efficiency


Effectiveness is achieved when the
organization pursues appropriate
goals. This means doing the right
thing.
Efficiency is achieved by using fewer
inputs (e.g., people, money) to
generate a given output. This means
doing things right.

What Is An Organization?
An organization is a group of individuals
who work together toward common goals.

What Do All Organizations Have in


Common?
They are made up of people, and the efforts
of these people must be coordinated if the
organization is to accomplish its goals.

The Four Functions of


Management
Slide 1 of 3

Planning
Planning

Organizing
Organizing

Organizational
goals

Leading
Leading

Controlling
Controlling

The Four Functions of


Management
Slide 2 of 3

Planning
Setting goals and defining the actions
necessary to achieve those goals.

Organizing
The process of determining the tasks
to be done, who will do them, and
how those tasks will be managed and
coordinated.

The Four Functions of


Management
Slide 3 of 3

Leading
Motivating and directing the members
of the organization so that they
contribute to the achievement of the
goals of the organization.

Controlling
Monitoring the performance of the
organization, identifying deviations
between planned and actual results,
and taking corrective action when
necessary.

Planning
A process of establishing objectives
and designing strategies to achieve
the objectives.

Steps in planning
1. Establishing goals
2. Define the present situations.
3. Determine aids and barriers
4. Developing action programs
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Organizing
A process of arranging and allocating
works and authority.
A process of determining what is to be
done, who is responsible and how the
tasks will be managed and coordinated.
Steps in organizing
1.Detailing of work
2.Division of work
3.Aggregation of work
4.Coordination of work
5.Review of performance
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Leadership
A process of influencing and directing
other people to perform organizational
tasks.
Elements in leadership
1. Leadership involves other people
2.Leadership involves unequal
distribution of power
3.Leaders may influence others using
different sources of power
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Controlling
A process managers ensure that
actual activities conform with
planned objectives

Steps in the control process


1.Establishing standards
2.Measure actual performance
3.Compare actual with standards
4.Take corrective actions
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Managerial Responsibilities

1.Work with and through others


2.Act as a communication channel
3. Responsible and accountable
4. Balance competing needs
5.Think analytically and conceptually
6.Managers as politician
7.Managers as diplomat
8.Managers as symbols
9.Make difficult decisions
10.Managers as mediators
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The role of time


1.Time provide the context for
studying mgt
2.Mgt is a process of building
the future using the present
and the past
3.Mgt is practice and reflective
of a particular era
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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The role of human relationship


Mgt is a two-way process
Mgt action affects other
people
Mgt must juggle multiple
relationship at the same time

Chap. 15 Marketing 7e Lamb Hair McDaniel


2004 South-Western/Thomson Learning

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Managerial performance
A measure of how well managers
are doing their jobs.
Managerial performance can be
measured using two factors :
A) Efficiency
B) Effectiveness
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Efficiency
Is an input-output concept
managers ability to reduce
costs, materials and saves time
e.g Perodua is considered as
efficient because it is able to
produce lower cost auto
doing things right
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Effectiveness
Doing the right things
ability to achieve target or
goals
e.g a salesman is considered
as effective if he is able to
achieve his sales quota.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Factors contributing towards


excellent in management

1.Bias for action


2.Staying close to the customer
3.Autonomy and entrepreneurship
4.Productivity through people
5.Hands on value driven
6.Stick to the knitting
7.Simple form lean staff
8.Simultaneous loose tight properties.
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Managers
Managers are the people who plan,
organize, lead, and control the
activities of the organization so that its
goals can be achieved.

The Classification of managers


Managers can be classified in two ways :
I) According to the scope of activities :
General manager and Functional
manager
II) According to the level in the
organizational hierachy : Top manager,
middle manager and first line manager.

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Functional Managers
Responsible for only one functional area
such as marketing, production or finance.

General Managers
Oversees a complex unit such as a
company, a subsidiary or an operating
division
Responsible for all activities of that unit e.g
a plant manager, a supermarket manager
Chap. 15 Marketin 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Functional Manager
Chief
Chief Executive
Executive
General
General Parts
Parts Inc.
Inc.
VP
VPof
of
Production
Production
Plant
Plant
Manager
Manager

Service
Service
Manager
Manager

VP
VPof
of
Finance
Finance
Account
Account
Manager
Manager

A functional manager is a manager


responsible for a work group
Chap. 15 Marketing 7e Lamb Hair segmented
McDaniel
by function.
2004 South-Western/Thomson Learning

Payroll
Payroll
Manager
Manager

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General Manager
General
General Manager
Manager
Supermarket,
Supermarket, Inc.
Inc.
Produce
Produce
Manager
Manager

Grocery
Grocery
Manager
Manager

Bakery
Bakery
Manager
Manager

A general manager is a manager


responsible for several different work
groups segmented by task.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Top Managers
Composed of a comparatively
small group of people
Also called executives
They are planners
Typical titles: C.E.O ,
President, vice president
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Middle Managers
Can include more than one level
Direct the activities of lower level
managers and sometimes those of
operating workers as well
Principles activities are : A) Direct
activities that implement the organization
objectives
B) Balance the demands of their superiors
with the capacities of their employees
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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First-Line Managers
The lowest mgt level
Direct non mgt employees
Do not supervise other
manager
E.g Foremen, supervisor, a
school principle and the
manager of a football team.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Management Skills (Robert


Kartz)
1.Technical
Skill
The ability to use the procedure
techniques and knowledge of a
specialized field.
E.g surgeons and engineers
have technical skills in their
respective fields.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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2. Human Skills
The ability to work with, understand
and motivate other people.

3. Conceptual skills
The ability to coordinate and
integrate all of an org.interest and
activities.
Involves seeing the organization as a
whole or in totality
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Skills Needed at Different


Levels of Management
Slide 1 of 3

First-line
Management

Middle
Management

Conceptual

Conceptual

Top-Level
Management

Conceptual

Human
Human
Human
Technical
Technical
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

Technical
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Mintzbergs Managerial
Roles
Slide 1 of 4

Interpersonal
roles

Informational
roles

Decisional roles

Figurehead

Monitor

Leader

Disseminator

Disturbance
handler

Liaison

Spokesperson

Chap. 15 Marketing 7e Lamb Hair McDaniel


2004 South-Western/Thomson Learning

Entrepreneur

Resource allocator
Negotiator

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1.Interpersonal roles
A)Figurehead-a manager
performing ceremonial duties like
greeting visitors and entertaining
clients.
B)Leader-Responsible for hiring,
training and motivating subordinates
C) Liaison -a manager establish
working relationship both inside and
outside the organization
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Informational Roles
A)Monitor-Checking about
market info.and other
environmental influences
B)Disseminator-Distributes info
to other employees
C)SpokespersonCommunicates with people
outside the org.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Decisional Roles

1.Entrepreneur
2.Resource allocator
3.Disturbance handler
4.Negotiator

Chap. 15 Marketing 7e Lamb Hair McDaniel


2004 South-Western/Thomson Learning

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The Challenges in Management


1.Globalization-The need to expand operation
overseas
2.Quality and TQM -The need to improve
products quality
3.Ethics and social responsibility The need
to do what is right and contribute to the society
4.Reengineering-The need to improve
operational efficiency
5.Empowerment-The need to delegate
responsibilities
6.Organizational restructuring and
consolidation.
Chap. 15 Marketing 7e Lamb Hair McDaniel
2004 South-Western/Thomson Learning

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Hyperchange
A condition of rapid, dramatic, complex, and
unpredictable changes that has a significant effect
on the ways in which organizations are managed.

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Managing in the 21st


Century: Organizational
Changes
The
The Changing
Changing
Chief
Chief Executive
Executive
Officer
Officer

Increasing
Increasing
Diversity
Diversity in
in the
the
Workplace
Workplace

From
From Hierarchy
Hierarchy
to
to Self-Managed
Self-Managed
Teams
Teams

A
ANew
New
Organizational
Organizational
Model
Model

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The Contemporary Manager


Slide 1 of 2

The New Manager Profile


Managers will no longer think of
themselves as the boss, but will view
themselves as sponsors, team leaders,
or internal consultants.

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The Contemporary Manager


Slide 2 of 2

Competencies of Tomorrows Managers


The
The
The
The
The
The
The

great communicator
team player
technology master
problem solver
foreign ambassador
change maker
21st-century leader
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