Lesson 1 Nature and Concept of Management

LESSON 1: NATURE AND
CONCEPT OF MANAGEMENT
DEFINITIONS
Management
- The process of designing and maintaining an
environment in which individuals, working
together in groups, efficiently accomplish selected
aims.
- Management is concerned with productivity, which
implies effectiveness and efficiency.
DEFINITIONS
➤
Productivity, Effectiveness, and Efficiency
Productivity: The output-input ratio within a time
period with due consideration for quality.
Productivity =
DEFINITIONS

The formula indicates that productivity can be improved
by:
a) Increasing outputs with the same inputs
b) Decreasing inputs but maintaining the same outputs
c) Increasing outputs and decreasing inputs to change
the ratio favorably
DEFINITIONS

Effectiveness: “Doing the right things”: the task that
help an organization reach its goals.
Efficiency” “Doing thing right”: the efficient use of
such resources as people, money and equipment.
DEFINITIONS
Managers
- The term manager is a person who has
responsibility for the activities of other people in
an organization.
DEFINITIONS
Three main types of managers

General
General Managers focus on the entire business

Functional
Functional managers specialize in a particular unit or

department.
DEFINITIONS
Three main types of managers

Frontline Managers
Frontline managers oversee primary production
activities on a daily basis, so they need very high
interpersonal and technical skills.
DEFINITIONS
Management Levels
DEFINITIONS
Management Levels
Top Managers
 Make decisions about the direction of the
organization
Examples: President, Chief Executive Officer, Vice-
President
DEFINITIONS
Management Levels
Middle Managers
 Manage the activities of other managers
Examples: District Manager, Division manager
DEFINITIONS
Management Levels
First-line Mangers
 Direct non-managerial employees
Examples: Supervisors, Team leaders
FOUR MANAGEMENT FUNCTIONS
Management operates through four basic functions:

Planning, Organizing, Leading, and Controlling.
• Planning involves the choice of the objectives to be

pursued, the means to achieve them, and allocating
the resources of the organization.
 Planningrequires that managers be aware of
environmental conditions facing their organization
and forecast future conditions. It also requires that
managers be good decision-makers.
• Organizing involves identifying, subdividing,

grouping and coordinating the various activities
required to achieve the objectives of the institution.
 Decisions must be made about the duties and
responsibilities of individual jobs as well as the
manner in which the duties should be carried out.
Decisions made about the nature of jobs within the
organization are generally called “job design”
decisions.
• Staffing involves the recruitment, selection,

assignments, and development of the various kinds
of human resources required by the organization.
• Leading involves influencing others toward the

attainment of organizational objectives.
 Effective leading requires the manager to motivate
subordinates, communicate effectively, and
effectively use power. If managers are effective
leaders, their subordinates will be enthusiastic
about exerting effort toward the attainment of
organizational objectives.
• Controlling involves ensuring that performance does not

deviate from standards.
 Controllingconsists of three steps, which include
establishing performance standards, comparing actual
performance against standards, and taking corrective
action when necessary. Performance standards are often
stated in monetary terms such as revenue, cost, or profits,
but may also be stated in other terms, such as units
produced, number of defective products, or levels of
customer service.
HENRY MINTZBERG’S MANAGERIAL ROLES
A. Interpersonal Roles: roles that involve

coordination and interaction with employees
• Figurehead role: role which is assumed by
managers when they represent their respective units
in the outside world in ceremonial and civic
activities. Managers expect to be a source of
inspiration. People look up to you as a person with
authority, and as a figurehead.

• Leader role – is the role played by managers when
they initiate and coordinate activities in their unites.
Provide leadership for the team, department or
perhaps the entire organization.

• Liaison role: is needed by unit heads when they
interact with persons in other units within and
outside the organizations. Managers need to be able
to network effectively on behalf of your
organization.
B. Informational Roles: roles that involve handling,

sharing, and analysing information
• Monitor or recipient role (receive information about
the operation of an enterprise) – Managers regularly
seek out information related to your organization and
industry, looking for relevant changes in the
environment. You also monitor your team, in terms of
both their productivity, and their well-being.

• Disseminator role (passing information to
subordinates) – This is where you communicate
potentially useful information to your colleagues and
your team.

• Spokesperson role (transmitting information to
those outside the organization) – Mangers represent
and speak for their organization. In this role you’re
responsible for transmitting information about your
organization and its goal to the people outside it.
C. Decisional Roles: roles that require decision-

making
• Enterpreneur role – As a manager, you create and
control change within the organization. This means
solving problems, generating new ideas, and
implementing them.

making
• Disturbance handler role – When an organization
or team hits an unexpected roadblock, it’s the
manager who must take charge. You also need to
help mediate disputes within it.

making
• Resource allocator role – Managers need to
determine where organizational resources are best
applied. This involves allocating funding, as well as
assigning staff and other organizational resources.

making
• Negotiator role – Managers may be needed to take
part in, and direct, important negotiations within
your team, department, or organization.
MANAGEMENT SKILLS
Skill- An ability or proficiency in a specific area. It is

to be expected that managers would need equally
varied capabilities and skills.
MANAGEMENT SKILLS
Robert Katz identified three managerial skills that are

essential to successful management:
• Technical skill involves process or technique
knowledge and proficiency. Managers use the
processes, techniques and tools of a specific area.
MANAGEMENT SKILLS

• Human skill involves the ability to interact
effectively with people. It involves motivating and
disciplining employees, monitoring performance,
providing feedback, improving communication and
instructing employees
MANAGEMENT SKILLS

• Conceptual skill is the ability to analyse complex
information. It enables managers to process
information about the internal/external environment of
the organization and determine its implications.
Therefore, technical skills deals with things, human skill
concerns people, and conceptual skills has to do with
ideas
1. Technical skills are most important for which of
the following?
Answer: First line managers
2. Someone who works with and through other people
by coordinating their work activities in order to
accomplish organizational goal is ______.
Answer: A manager
3. Which of the following would be included in the
"controlling function"?
Answer: Measuring results against corporate
objectives
4. Distinguishes a managerial position from a non-
managerial one.
Answer: Coordinating and integrating others' work
5. Planning, organizing, directing and controlling are
the:
Answer: Functions of management
6. Which of the following is not included in our
definition of management?
Answer: Balancing efficiency against effectiveness
7. Effectiveness is synonymous with _____.
Answer: Goal attainment
8. Which of the following is not a measure of a
manager’s effectiveness?
Answer: Speed of promotion through the organization
9. The most effective leader is one who:
Answer: has the leadership style most appropriate to
the situation and the employee involved.
10. Checking progress against plans.
Answer: Controlling
11. The leader of an organization performs
__________, as per Mintzberg.
Answer: All of the given options.
12. The three main types of managers include:
Answer: general, functional, and front-line managers
13. _____ in businesses and organizations is the
function that coordinates the efforts of people to
accomplish goals and objectives using available
resources efficiently and effectively.
Answer: Management
14. Which is Characteristic for Organization?
Answer: All of the given options
15. Which one is not interpersonal managerial role?
Answer: Spokesperson
16. It is directing the work activities of others.
Answer: Leading
17. Which statement is wrong?
Answer: Disseminator role is under Interpersonal
managerial roles
18. A successful person in which of the following
positions may be promoted to a management position?
Answer: All of the options may lead to successful
management positions
19. They manage the activities of other managers.
Answer: Middle Managers
20. When call center managers spend much of their
time monitoring customer calls and giving employees
feedback about how to improve their dialogue with
customers in the future, these managers are using
_______ skills.
Answer: Technical
21. Individuals in organizations who direct the
activities of others.
Answer: Managers

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LESSON 1: NATURE AND

Productivity, Effectiveness, and Efficiency

Productivity, Effectiveness, and Efficiency

Three main types of managers

General Managers focus on the entire business

Functional managers specialize in a particular unit or

Three main types of managers

Management operates through four basic functions:

• Planning involves the choice of the objectives to be

• Organizing involves identifying, subdividing,

• Staffing involves the recruitment, selection,

• Leading involves influencing others toward the

• Controlling involves ensuring that performance does not

A. Interpersonal Roles: roles that involve

A. Interpersonal Roles: roles that involve

A. Interpersonal Roles: roles that involve

B. Informational Roles: roles that involve handling,

B. Informational Roles: roles that involve handling,

B. Informational Roles: roles that involve handling,

C. Decisional Roles: roles that require decision-

C. Decisional Roles: roles that require decision-

C. Decisional Roles: roles that require decision-

C. Decisional Roles: roles that require decision-

Skill- An ability or proficiency in a specific area. It is

Robert Katz identified three managerial skills that are

Robert Katz identified three managerial skills that are

Robert Katz identified three managerial skills that are

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