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Introduction to Manager & Management by Prof Mian Khurram Mateen 1±1 Introduction to Introduction to Management and Management and Organizations Organizations Chapter Chapter 1
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Introduction to Manager & Management by Prof Mian KhurramMateen 1±1

Introduction toIntroduction to

Management andManagement and

OrganizationsOrganizations

Chapter Chapter 

11

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L E A R N I N G O U T L I N EL E A R N I N G O U T L I N EFollow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

Who Are Managers?Who Are Managers?

Explain how managers differ from nonExplain how managers differ from non--managerialmanagerial

employees.employees.

Describe how to classify managers in organizations.Describe how to classify managers in organizations.

What Is Management?What Is Management?

Define management.Define management.

Explain why efficiency and effectiveness are important toExplain why efficiency and effectiveness are important to

management.management.

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L E A R N I N G O U T L I N E (cont¶d)L E A R N I N G O U T L I N E (cont¶d)Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

What Do Managers Do?What Do Managers Do?

Describe the four functions of management.Describe the four functions of management.

Explain Mintzberg¶s managerial roles.Explain Mintzberg¶s managerial roles.

Describe Katz¶s three essential managerial skills and howDescribe Katz¶s three essential managerial skills and how

the importance of these skills changes depending onthe importance of these skills changes depending on

managerial level.managerial level.

Discuss the changes that are impacting managers¶ jobs.Discuss the changes that are impacting managers¶ jobs.

Explain why customer service and innovation areExplain why customer service and innovation areimportant to the manager¶s job.important to the manager¶s job.

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L E A R N I N G O U T L I N E (cont¶d)L E A R N I N G O U T L I N E (cont¶d)Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

What Is An Organization?What Is An Organization?

Describe the characteristics of an organization.Describe the characteristics of an organization.

Explain how the concept of an organization is changing.Explain how the concept of an organization is changing.

Why Study Management?Why Study Management?

Explain the universality of management concept.Explain the universality of management concept.

Discuss why an understanding of management isDiscuss why an understanding of management is

important.important.

Describe the rewards and challenges of being a manager.Describe the rewards and challenges of being a manager.

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Who Are Managers?Who Are Managers?

Manager Manager Someone who coordinates and oversees the work of  Someone who coordinates and oversees the work of  

other people so that organizational goals can beother people so that organizational goals can be

accomplished.accomplished.

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Classifying ManagersClassifying Managers

FirstFirst--line Managersline Managers Individuals who manage the work of nonIndividuals who manage the work of non--managerialmanagerial

employees.employees.

Middle ManagersMiddle Managers

Individuals who manage the work of  f irstIndividuals who manage the work of  f irst--linelinemanagers.managers.

Top ManagersTop Managers

Individuals who are responsible for makingIndividuals who are responsible for making

organizationorganization--wide decisions and establishing planswide decisions and establishing plansand goals that aff ect the entire organization.and goals that aff ect the entire organization.

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Exhibit 1Exhibit 1± ±11 Managerial LevelsManagerial Levels

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What Is Management?What Is Management?

Managerial ConcernsManagerial ConcernsEff iciencyEff iciency

³Doing things right´³Doing things right´

 ± ± Getting the most outputGetting the most output

for the least inputsfor the least inputs

Eff ectivenessEff ectiveness

³Doing the right things´³Doing the right things´

 ± ± Attaining organizational Attaining organizational

goalsgoals

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Exhibit 1Exhibit 1± ±22 Effectiveness and Efficiency in ManagementEffectiveness and Efficiency in Management

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What Do Managers Do?What Do Managers Do?

Functional Appr oachFunctional Appr oachPlanningPlanning

Def ining goals, establishing strategies to achieve goals,Def ining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities.developing plans to integrate and coordinate activities.

OrganizingOrganizing

 Arranging and structuring work to accomplish organizational Arranging and structuring work to accomplish organizational

goals.goals.

LeadingLeading

Working with and thr ough people to accomplish goals.Working with and thr ough people to accomplish goals.

Contr ollingContr olling Monitoring, comparing, and correcting work.Monitoring, comparing, and correcting work.

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Exhibit 1Exhibit 1± ±33 Management FunctionsManagement Functions

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What Do Managers Do? (cont¶d)What Do Managers Do? (cont¶d)

Management RolesManagement Roles Appr oach ( Appr oach (MintzbergMintzberg))

Interpersonal r olesInterpersonal r oles

Involve people and other dutiesInvolve people and other duties

that are symbolic in naturethat are symbolic in nature

Infor mational r olesInfor mational r oles

Involve collecting, receiving andInvolve collecting, receiving and

disseminating infor mationdisseminating infor mation

Decisional r olesDecisional r oles

It revolve ar ound makingIt revolve ar ound makingchoiceschoices

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Interpersonal roleInterpersonal role

Role Description Examples

Figurehead Per for m r outine duties of  legal and

social nature

Greeting visitors, signing

legal documents

Leader Responsible for motivation of  

subordinates, responsible for staff ing,training and associated duties

Per for m all duties that

motivate employees

Liaison Maintain contact with all the stake

holders (share holders, competitors,

association, govt agencies)

 As back

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Informational roleInformational role

Role Description Examples

Monitor  Seeks and receive wide variety or 

internal and external infor mation

Reading report about all

pr ocesses

Disseminator Transmit infor mation receive f r om 

out side and subordinates to thetop management

Holding meeting, making

phone calls

Spokesperson Transmit infor mation to the

outsiders on organizational plans,

polices etc

Holding board meeting ,

giving media infor mation

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Decisional roleDecisional role

Role Description Examples

Entrepreneur  Search for impr ovement pr oject to 

bring change

Organizing strategy 

develop new pr ogram

Disturbance

handler 

Responsive of corrective action

when there is some disturbance

Meeting , counseling ,

strategies for disturbance handling

Resource

allocator 

 Allocation of  organizational

resources of all kind

Human, f inancial and

material resources

Negotiator Responsible for representing

organization at ma jor negotiations

Union management

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What Do Managers Do? (cont¶d)What Do Managers Do? (cont¶d)

Skills Appr oachSkills Appr oachTechnical skillsTechnical skills

Knowledge and pr of iciency in a specif ic f ieldKnowledge and pr of iciency in a specif ic f ield

Human skillsHuman skills

The ability to work well with other peopleThe ability to work well with other peopleConceptual skillsConceptual skills

The ability to think and conceptualize about abstract andThe ability to think and conceptualize about abstract and

complex situations concerning the organizationcomplex situations concerning the organization

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Exhibit 1Exhibit 1± ±55 Skills Needed at Different Management LevelsSkills Needed at Different Management Levels

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Exhibit 1Exhibit 1± ±66 Conceptual SkillsConceptual Skills

Using infor mation to solve business pr oblemsUsing infor mation to solve business pr oblems Identifying of  opportunities for innovationIdentifying of  opportunities for innovation

Recognizing pr oblem areas and implementingRecognizing pr oblem areas and implementing

solutionssolutions

Selecting critical infor mation f r om masses of  Selecting critical infor mation f r om masses of  

datadata

Understanding of business uses of technologyUnderstanding of business uses of technology

Understanding of  organization¶s business modelUnderstanding of  organization¶s business model

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Exhibit 1Exhibit 1± ±66 Communication SkillsCommunication Skills

 Ability to transfor m ideas into words and actions Ability to transfor m ideas into words and actions Credibility among colleagues, peers, andCredibility among colleagues, peers, and

subordinatessubordinates

Listening and asking questionsListening and asking questions Presentation skills; spoken for matPresentation skills; spoken for mat

Presentation skills; written and/or graphicPresentation skills; written and/or graphic

for matsfor mats

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Exhibit 1Exhibit 1± ±66 Effectiveness SkillsEffectiveness Skills

Contributing to corporate mission/departmentalContributing to corporate mission/departmentalob jectivesob jectives

Customer focusCustomer focus

Multitasking: working at multiple tasks in parallelMultitasking: working at multiple tasks in parallel

Negotiating skillsNegotiating skills

Pr oject managementPr oject management

Reviewing operations and implementingReviewing operations and implementingimpr ovementsimpr ovements

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Exhibit 1Exhibit 1± ±66 Effectiveness Skills (cont¶d)Effectiveness Skills (cont¶d)

Setting and maintaining per for mance standardsSetting and maintaining per for mance standardsinternally and externallyinternally and externally

Setting priorities for attention and activitySetting priorities for attention and activity

Time managementTime management

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Exhibit 1Exhibit 1± ±66 Interpersonal Skills (cont¶d)Interpersonal Skills (cont¶d)

Coaching and mentoring skillsCoaching and mentoring skills Diversity skills: working with diverse people andDiversity skills: working with diverse people and

culturescultures

Networking within the organizationNetworking within the organization Networking outside the organizationNetworking outside the organization

Working in teams; cooperation and commitmentWorking in teams; cooperation and commitment

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Exhibit 1Exhibit 1± ±77 Management Skills and Management Function MatrixManagement Skills and Management Function Matrix

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How The Manager¶s Job Is ChangingHow The Manager¶s Job Is Changing

The Increasing Importance of CustomersThe Increasing Importance of CustomersCustomers: the reason that organizations existCustomers: the reason that organizations exist

Managing customer relationships is the responsibility of allManaging customer relationships is the responsibility of all

managers and employees.managers and employees.

Consistent high quality customer ser vice is essential for Consistent high quality customer ser vice is essential for 

sur vival.sur vival.

InnovationInnovation

Doing things diff erently, exploring new territor y, andDoing things diff erently, exploring new territor y, and

taking riskstaking risks

Managers should encourage employees to be aware of andManagers should encourage employees to be aware of andact on opportunities for innovation.act on opportunities for innovation.

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Exhibit 1Exhibit 1± ±88

Changes ImpactingChanges Impacting

the Manager¶s Jobthe Manager¶s Job

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Why Study Management?Why Study Management?

The Value of  Studying ManagementThe Value of  Studying ManagementThe universality of  managementThe universality of  management

Good management is needed in all organizations.Good management is needed in all organizations.

The reality of workThe reality of work

Employees either manage or are managed.Employees either manage or are managed.

Rewards and challenges of being a manager Rewards and challenges of being a manager 

Management off ers challenging, exciting and creativeManagement off ers challenging, exciting and creative

opportunities for meaningf ul and f ulf illing work.opportunities for meaningf ul and f ulf illing work.

Successf ul managers receive signif icant monetar y rewardsSuccessf ul managers receive signif icant monetar y rewards

for their efforts.for their efforts.

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Terms to KnowTerms to Know

manager manager  f irstf irst--line managersline managers

middle managersmiddle managers

top managerstop managers

managementmanagement eff iciencyeff iciency

eff ectivenesseff ectiveness

planningplanning

organizingorganizing leadingleading

contr ollingcontr olling

management r olesmanagement r oles interpersonal r olesinterpersonal r oles

infor mational r olesinfor mational r oles

decisional r olesdecisional r oles

technical skillstechnical skills human skillshuman skills

conceptual skillsconceptual skills

organizationorganization

universality of  universality of  managementmanagement

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Historical Background of ManagementHistorical Background of Management

 Ancient Management Ancient Management Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)

Venetians (f loating warship assembly lines)Venetians (f loating warship assembly lines)

 Adam Smith Adam Smith

PublishedPublished ³The Wealth of Nations´ ³The Wealth of Nations´ in 1776in 1776

 Advocated the division of  labor ( job Advocated the division of  labor ( jobspecialization) to increase the pr oductivity of  specialization) to increase the pr oductivity of  

workersworkers

Industrial RevolutionIndustrial Revolution

Substituted machine power for humanSubstituted machine power for human

labor labor  Created large organizations in need of  Created large organizations in need of  

managementmanagement

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Exhibit 2Exhibit 2± ±11 Development of Major Management TheoriesDevelopment of Major Management Theories

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Scientific ManagementScientific Management

Fredrick Winslow Taylor Fredrick Winslow Taylor The ³f ather´ of scientif ic managementThe ³f ather´ of scientif ic management

PublishedPublished Pr inciples of Scientific Management Pr inciples of Scientific Management (1911)(1911)

The theor y of scientif ic managementThe theor y of scientif ic management

 ± ± Using scientif ic methods to def ine the ³one best way´ for aUsing scientif ic methods to def ine the ³one best way´ for a

 job to be done: job to be done:

Putting the right person on the  job with the correct toolsPutting the right person on the  job with the correct tools

and equipment.and equipment.

Having a standardized method of doing the  job.Having a standardized method of doing the  job. Pr oviding an economic incentive to the worker.Pr oviding an economic incentive to the worker.

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Exhibit 2Exhibit 2± ±22 Taylor¶s Four Principles of ManagementTaylor¶s Four Principles of Management

1. Develop a science for each element of an individual¶s work,

which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the

worker.

3. Heartily cooperate with the workers so as to ensure that allwork is done in accordance with the principles of the science

that has been developed.

4. Divide work and responsibility almost equally between

management and workers. Management takes over all work

for which it is better fitted than the workers.

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Scientific Management (cont¶d)Scientific Management (cont¶d)

Frank and Lillian GilbrethFrank and Lillian GilbrethFocused on increasing worker pr oductivity Focused on increasing worker pr oductivity 

thr ough the reduction of wasted motionthr ough the reduction of wasted motion

Developed the micr ochr onometer to timeDeveloped the micr ochr onometer to timeworker motions and optimize workworker motions and optimize workper for manceper for mance

How Do Today¶s Managers Use Scientif ic Management?How Do Today¶s Managers Use Scientif ic Management?

Use time and motion studies to increase pr oductivityUse time and motion studies to increase pr oductivity

Hire the best qualif ied employeesHire the best qualif ied employeesDesign incentive systems based on outputDesign incentive systems based on output

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General Administrative TheoryGeneral Administrative Theory

Henri FayolHenri FayolBelieved that the practice of  managementBelieved that the practice of  management

was distinct f r om other organizationalwas distinct f r om other organizationalf unctionsf unctions

Developed fourteen principles of  Developed fourteen principles of  

management that applied to allmanagement that applied to allorganizational situationsorganizational situations

Max Weber Max Weber 

Developed a theor y of authority based on anDeveloped a theor y of authority based on an

ideal type of  organization (bureaucracy)ideal type of  organization (bureaucracy) Emphasized rationality, predictability,Emphasized rationality, predictability,

impersonality, technical competence, andimpersonality, technical competence, andauthoritarianismauthoritarianism

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Exhibit 2Exhibit 2± ±33 Fayol¶s 14 Principles of ManagementFayol¶s 14 Principles of Management

1.1. Division of work.Division of work.

2.2. Authority.Authority.

3.3. Discipline.Discipline.

4.4. Unity of command.Unity of command.

5.5. Unity of direction.Unity of direction.

6.6. Subordination of Subordination of 

individual interestsindividual interests

to the generalto the general

interest.interest.

7.7. Remuneration.Remuneration.

8.8. Centralization.Centralization.

9.9. Scalar chain.Scalar chain.

10.10. Order.Order.

11.11. Equity.Equity.

12.12. Stability of tenureStability of tenure

of personnel.of personnel.

13.13. Initiative.Initiative.

14.14. Esprit de corps.Esprit de corps.

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Exhibit 2Exhibit 2± ±44 Weber¶s Ideal BureaucracyWeber¶s Ideal Bureaucracy

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Quantitative Approach to ManagementQuantitative Approach to Management

Quantitative Appr oachQuantitative Appr oach Also called Also called oper ations r esear choper ations r esear ch or or management management 

sciencescience

Evolved f r om mathematical and statistical methodsEvolved f r om mathematical and statistical methods

developed to solve WWII militar y logistics and quality developed to solve WWII militar y logistics and quality contr ol pr oblemscontr ol pr oblems

Focuses on impr oving managerial decision making by Focuses on impr oving managerial decision making by 

applying:applying:

Statistics, optimization models, infor mation models, andStatistics, optimization models, infor mation models, and

computer simulationscomputer simulations

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OBOB -- The Hawthorne StudiesThe Hawthorne Studies

 A series of pr oductivity  A series of pr oductivity 

experiments conducted atexperiments conducted atWestern Electric (Cicer o, Ill.)Western Electric (Cicer o, Ill.)f r om 1927 to 1932.f r om 1927 to 1932.

Experimental f indingsExperimental f indings

Pr oductivity unexpectedly 

Pr oductivity unexpectedly increased under imposedincreased under imposed

adverse working conditions.adverse working conditions.

Research conclusionResearch conclusion

Social nor ms, gr oup standardsSocial nor ms, gr oup standards

and attitudes more str ongly and attitudes more str ongly inf luence individual output andinf luence individual output andwork behavior than do work behavior than do monetar y incentives.monetar y incentives.

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System approachSystem approach

System:System: Set of  interrelated and interdependent parts arranged in a manner Set of  interrelated and interdependent parts arranged in a manner 

that pr oduce a unif ied ob jectthat pr oduce a unif ied ob ject

Types of system Types of system ( open and closed system )( open and closed system )

Open system Open system (interact wit their envir onment)(interact wit their envir onment)

Close system Close system (not inf luence and interact with envir onment(not inf luence and interact with envir onment

It saysIt says Ensure all are interdependent units working together to achieve oneEnsure all are interdependent units working together to achieve one

goalgoal Decision taking in one area aff ect othersDecision taking in one area aff ect others

Organizations aff ected by envir onmentOrganizations aff ected by envir onment

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Contingency approachContingency approach

It says that organizations are diff erent, f ace diff erentIt says that organizations are diff erent, f ace diff erentsituations and requires diff erent ways of  managingsituations and requires diff erent ways of  managing

Four popular contingency variablesFour popular contingency variables

Organization sizeOrganization size

Routines of  task technology Routines of  task technology 

Envir onmental uncertaintyEnvir onmental uncertainty

Individual diff erencesIndividual diff erences

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Current Trends and IssuesCurrent Trends and Issues

GlobalizationGlobalization EthicsEthics

Workforce DiversityWorkforce Diversity

EntrepreneurshipEntrepreneurship

EE--businessbusiness

Knowledge ManagementKnowledge Management

Learning OrganizationsLearning Organizations

Quality ManagementQuality Management

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Current Trends and Issues (cont¶d)Current Trends and Issues (cont¶d)

GlobalizationGlobalization

Management in international organizationsManagement in international organizations Working with people f r om diff erent culturesWorking with people f r om diff erent cultures

Movement of   jobs to countries with lowMovement of   jobs to countries with low--cost labor cost labor 

EthicEthicSocial accountability standards, child labor, forceSocial accountability standards, child labor, force

labor etclabor etc

Workforce DiversityWorkforce Diversity

EE--Business (Electr onic Business)Business (Electr onic Business)

The work prefor med by an organization usingThe work prefor med by an organization usingelectr onic linkages to its key constituencieselectr onic linkages to its key constituencies

EE--commerce: the sales and marketing aspect of an ecommerce: the sales and marketing aspect of an e--

businessbusiness

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Current Trends and Issues (cont¶d)Current Trends and Issues (cont¶d)

Categories of  E

Categories of  E

--B

usinessesB

usinessesEE--business enhanced organizationbusiness enhanced organization

EE--business enabled organizationbusiness enabled organization

Total eTotal e--business organizationbusiness organization

Quality ManagementQuality Management

 A philosophy of  management driven by  A philosophy of  management driven by continualcontinual

impr ovement in the quality of work pr ocessesimpr ovement in the quality of work pr ocesses andand

responding to customer needs and expectationsresponding to customer needs and expectations