MGT 420

CHAPTER 1: MANAGEMENT AND

MANAGERS

PREPARED BY:
ALYANI NAZIRAH BINTI GHAZALI
 LEARNING OBJECTIVES
1. Describe what management is, why management is important, what
managers do, and how managers use organizational resources efficiently and
effectively to achieve organizational goals.
2. Distinguish among planning, organizing, leading, and controlling (the four
principal managerial tasks), and explain how managers’ ability to handle each
one affects organizational performance.
3. Differentiate among three levels of management, and understand the tasks
and responsibilities of managers at different levels in the organizational
hierarchy.
4. Distinguish among three levels of managerial skill, and explain why managers
are divided into different departments to perform their tasks more efficiently
and effectively.
5. Discuss some major changes in management practices today that have
occurred as a result of globalization and the use of advanced information
technology (IT).
6. Discuss the principal challenges managers face in today’s increasingly
competitive global environment.
 WHAT IS MANAGEMENT ?

Management

Management includes the planning,

organizing, leading and controlling of
human and other resources to achieve
organizational goals effectively and
efficiently
 WHAT IS MANAGEMENT?

Resources
Includes assets such as:

People and their skills, know-how and experience

Machinery

Raw materials

Computers and Information Technology

Patents, financial capital and loyal customers and

employees
ACHIEVING HIGH PERFORMANCE : A MANAGER’S GOAL

Organizational Performance

A measure of how efficiently and effectively managers

use available resources to satisfy customers and achieve
organizational goals.
 EFFECTIVENESS VS EFFICIENCY

Effectiveness Efficiency

A measure of the A measure of how

appropriateness of well or how
the goals an productively
organization is resources are used
pursuing and the to achieve a goal
degree to which the
organization
achieves those goals
Figure 1.1 Efficiency, Effectiveness and Performance in
an Organization
High-performing organizations are efficient and effective
 WHY STUDY MANAGEMENT?

Individuals generally learn through personal experience or the

experiences of others.
- By studying management in school, you are exposing yourself to
the lessons others have learned

The economic benefits of becoming a good manager are also

impressive. In the United States, general managers earn a median
wage of $99,310 with a projected growth rate in job openings of 5
% to 9% between now and 2026.

Learning management principles can help you make good

decisions in nonwork contexts.
 1.2 FOUR TASKS OF MANAGEMENT

PLANNING ORGANIZING
Choose appropriate Establish task and authority
organizational goals and relationships that allow
courses of action to best people to work together to
achieve those goals achieve organization goals

CONTROLLING LEADING
Establish accurate
Motivate, coordinate and
measuring and monitoring
energize individuals and
systems to evaluate how
groups to work together to
well the organization has
achieve organizational goals
achieved its goals
 STEPS IN THE PLANNING PROCESS

1. Deciding which goals the organization will pursue

2. Deciding what strategies to adopt to attain those goals

3. Deciding how to allocate organizational resources.

Managers identify and select appropriate organizational

goals and develop strategies for how to achieve high
performance
 ORGANIZING

Structuring working relationships so organizational members

interact and cooperate to achieve organizational goals

Managers deciding how best to organize resources,

particularly human resource

ORGANIZATIONAL STRUCTURE

A formal system of task and reporting relationships that

coordinates and motivates organizational members so
that they work together to achieve organizational goals
 LEADING

Articulating a clear vision and energizing and enabling

organizational members so they understand the part they
play in achieving organizational goals

An organization’s vision is a short, succinct, and

inspiring statement of the organization’s future state.

Involves managers using their power, personality,

influence, persuasion, and communication skills to
coordinate people and groups
 CONTROLLING

Evaluating how well an organization is achieving its goals

and taking action to maintain or improve performance.

Managers monitor performance of individuals,

departments and the organization as a whole to
determine if they are meeting performance standards.

The outcome of the control process is the ability to

measure performance accurately and regulate
organizational efficiency and effectiveness.

Managers must decide which goals to measure.

 LEVELS AND SKILLS OF MANAGERS

Department

A group of managers and employees who work together

and possess similar skills or use the same knowledge,
tools or techniques.

Example
LEVELS OF MANAGEMENT

TOP-LEVEL MANAGERS

MIDDLE MANAGERS

FIRST-LINE MANAGERS

OPERATIONAL EMPLOYEES
 LEVELS OF MANAGEMENT

TOP MANAGERS

Responsible for the performance of all departments

Establish organizational goals
Decide how different departments should interact
Monitor how well managers in each department use
resources to achieve goals.
 LEVELS OF MANAGEMENT

MIDDLE MANAGERS

Supervises first-line managers

Responsible for finding the best way to use
resources to achieve organizational goals

FIRST-LINE MANAGERS

Responsible for the daily supervision of the

nonmanagerial employees.
 LEVELS AND SKILLS MANAGER

Figure 1.4 Relative Amount of Time Managers Spend on the Four Managerial Tasks
 MANAGERIAL SKILLS

3 Basic Skills

Job-specific skills required to perform a

Technical Skills
particular type of work or occupation at a high
(T) level

Human Skills The ability to understand, alter, lead and control

(H) the behavior of other individuals and groups.

Conceptual The ability to analyze and diagnose a situation

Skills (C) and distinguish between cause and effect
TYPES AND LEVELS OF MANAGERS
 CORE COMPETENCY

Core Competency

Specific set of departmental skills, abilities, knowledge

and experience that allows one organization to
outperform its competitors.

Skills for a competitive advantage

Google’s core competency, research and development,

allows them to develop innovative products and services
(computerized glasses, self-driving cars).
 RESTRUCTURING ADN OUTSOURCING

Restructuring

Downsizing an organization by eliminating the jobs of

large numbers of top, middle and first-line managers and
nonmanagerial employees.

Outsourcing

Contracting with another company, usually in a low-cost

country abroad, to perform a work activity the company
previously performed itself.
 EMPOWERMENT

Empowerment

Empowerment involves giving employees more authority

and responsibility over how they perform their work
activities.

Example: Valve Corporation has no managers, no

hierarchy or top-down control. Employees pick their own
projects.
CHALLENGES FOR MANAGEMENT IN A GLOBAL
ENVIRONMENT

Building a competitive advantage

Maintaining ethical and socially responsible

standards

Managing a diverse workforce

Utilizing new technologies

Practicing global crisis management

 BUILDING COMPETITIVE ADVANTAGE

Competitive Advantage

Ability of one organization to outperform other

organizations because it produces desired goods or
services more efficiently and effectively than its
competitors

Innovation

The process of creating new or improved goods and

services or developing better ways to produce or
provide them
BUILDING BLOCKS OF COMPETITIVE ADVANTAGE

Efficiency Innovation

Competitive
Advantage

Responsiveness
Quality
to customers
 TURNAROUND MANAGEMENT

Turnaround Management

Creation of a new vision for a struggling company

using a new approach to planning and organizing to
make better use of a company’s resources to allow it to
survive and eventually prosper
 MAINTAINING ETHICAL AND SOCIALLY
RESPONSIBLE STANDARDS

- Managers are under considerable pressure to

make the best use of resources.
- Too much pressure may induce managers to
behave unethically and even illegally.
 MANAGING A DIVERSE WORKFORCE

- To create a highly trained and motivated

workforce, managers must establish human
resource management (HRM) procedures that
are legal and fair and do not discriminate
against organizational members.
- Accenture uses a diverse workforce to its
advantage.
 UTILIZING NEW TECHNOLOGIES

- An efficient and effective IT system may improve

an organization’s performance.
- UPS uses ORION.
- A GPS system that optimizes drivers routes.
 PRACTICING GLOBAL CRISIS MANAGEMENT

Create teams to facilitate rapid decision making and

communication.

Establish the organizational chain of command and

reporting relationships necessary to mobilize a fast
response.

Recruit and select the right people to lead and work in

such teams.

Developing bargaining and negotiating strategies to

manage the conflicts that arise.
 ISLAMIC MANAGEMENT

Definition

- The ability to utilize resources both material and human,

optimally in order to achieve goals, be it short term goals or
the long term ones.

- The Islamic way of managing things has been practiced

since the era of our Prophet Muhamaad s.a.w.

- It is based on the teachings generated from the holy Al-

Quran and As-Sunnah.

- The holy Al-Quran and Al-Sunnah were sources that

provided guidance un making decisions.
The Islamic leadership under our Prophet Muhammad
s.a.w through the Islamic way managing things had
created a strong (Muslim) society with prominent
characteristics such as:

Team spirit that practiced teamwork

A strong and clear vision and mission

Values for loving and caring

Emphasis for trust and relationship,

cooperation and teamwork

The practice of consensus decision making

MANAGEMENT FUNCTIONS IN ISLAM

The Islamic Management practices the following

elements:

1. Planning

2. Organizing

3. Leading

4. Controlling
 PLANNING

- Planning is needed to manage, especially in the fast

moving, ever changing and complex environment we
are living in, to ensure success.

- Planning was practiced by our prophet Muhammad

s.a.w in many incidents that he had gone through.

- One of the prominent ones is seen in his carefully

planned and moves to preach faith of Islam to the
world.
 PLANNING

- He had two choices: whether to do it publicly or t do it cautiously.

- He chose to do it secretly at first since the people of Mecca at the

time especially the Quraisysh tribe did not hold the same values
the Islamic faith was bringing that the human equality, justice and
sympathy for the weak.

- Therefore, our prophet Muhammad s.a.w chose to preach Islam

secretly and quietly at first to his closest and trusted friends and
families.

- To start preaching the new religion openly would jeopardize its

chance of success.
 PLANNING

- The planning process of setting objective / goals is also practiced

in Islam.

- Human beings according to Islam are created by Allah s.w.t to be

the “khalifah” on the earth.

- This means our lives and activities must be focused to fulfill two
purposes:
- A long term objective / goal
- A short term objective / goal
 PLANNING

Long term objective

- To seek to be worthy servants of Allah, avoiding sins and

preparing ourselves to be rewarded in paradise by performing
goods deeds and obeying the teachings demanded by the Al-
Quran and Al-Sunnah.

Short term objective

- Productivity may it be in the form of services or products,

academic achievement, financial profit or improvement in
performance.
 ORGANIZING

- Organizing the structure of projects as well as the structure of

roles to be undertaken by human efforts.

- In Islam, organizing comprises the structuring of an organization

(organization chart), utilization of resources (human), authority,
power and practices of delegation as well decentralization and
centralization.

- The practice of the organizing can be seen in the incident of

Hijrah led by our Prophet Muhammad s.a.w

- If careful planning and organizing had not been done, Prophet

Muhammad s.a.w would have been murdered or captured and the
course of history would not have been the same.
 LEADING

- From the Islamic point of view, leadership refers to the process of

moving people in planned direction by motivating them.

- Good leadership moves people in a direction that is in their long

term best interest.

- Islam says that a leader should serve and help others (followers)
get ahead.
THE CHARACTERISTICS OF AN ISLAMIC LEADER ARE:

1. He has allegiance to Allah

2. He has a global perceived goals of the organization not

only in terms individual or group interest but also from a
wider Islamic perspectives.

3. He adheres to the Syariah and the Islamic manner of

doings things.

4. He delegates trust
TO BE EFFECTIVE, ISLAMIC LEADERS
FOLLOW THESE PRINCIPLES.

1. Syura

2. Justice

3. Freedom of Expression

4. Masrui’ah

5. Qualification

6. Reward
 1. Syura (Mutual Consultation)

- Syura emphasizes on the importance of managing through

teamwork.

- The practice of Syura will enable members of an organization to

participate in the decision making process.

- Syura also monitors the leader’s conduct of behavior so that he

will be not deviate from the collective goals of his followers.

- Syura also allows group members to express opinion and

grievances freely without the feeling of embarrassment.
 2. Justice

- This is the second hallmark of Islamic leadership.

- The leader should deal with people justly and fairly regardless of
race, color national origin or religion.

- The Al-Quran commands Muslims to be fair even when dealing

with people who oppose them.
 3. Freedom of expressionnbxv

- Muslim leaders are encouraged to provide for an even invite

constructive criticism.

- Two-way communication is practiced here.

- Members may freely voice their views or objectives and have their
questions answered.
 4. Masrui’ah

- This is the concept of legality whereby the management has to

ensure that any action taken must be within the legal boundary of
the common / made laws and “Syariah” laws.

- Legally of actions within the common laws and Syariah law.

 5. Qualification

- This principle looks at the importance of selecting the right

management personnel.

- It should be based on person ability, expertise, experience and

other suitable criteria that fits the job.

- 2 elements: Quwwah (strength) and Amanah (trustworthy)

 6. Reward

- Managers must be fair in any action and reward people

accordingly.

- Employees who performed their tasks or responsibilities well

should be given rewards.

- Howeever, the Islamic Management views rewards as the

compensation / benefits earned not only today but till the one
dies and hereafter rewards.
 CONTROLLING

- Defined as the application of the procedures prescribed and

organized according to plan as well as the performance of the
roles defined and specific under the organization.

- In the simple terms this carrying out the plans and assuring that
the results will conform to the actual plan.
 THE 10 PRINCIPLES OF ISLAMIC MANAGEMENT

1. The ultimate goal of our life should be harmoniously linked

with worldly aims.
2. The moral / religious value of work should be integrated in the
work or activities we do.
3. Time to be well invested, not to be wasted. Time should be
treated as a commodity.
4. We should uphold and internalize the Islamic ethical values.
5. Self criticism should be exercised periodically both individually
and collectively and should be practiced by all the workers at
the levels.
6. There shall be no favoritism and discrimination.
7. Human nature and needs should be both considered
simultaneously. Both psychological and economical contracts of
a person must be met.
 THE 10 PRINCIPLES OF ISLAMIC MANAGEMENT

8. Employees must be paid sufficiently, promptly and fairly.

9. There should be conducive rewards for exceptional
achievement and adequate measures to detect and prevent
violations.
10. Lastly and the most important is the concept of al-Shura, it is a
consultation based on mutual discussion and uncalculating
cooperation among members of organization.
END OF CHAPTER 1