Business Organization and Management
Chapter 1
Introduction to Management
Why study Management?
 It creates job opportunities by
developing conceptual skills needed to
be a manger
 It enables self-knowledge by better
understanding the organizational and
social forces that influence who we are
 It improves job satisfaction because it
helps us understands our managers
better and thereby increases the like
hood we will get along with them
 It helps to better understand how the
various organizations we come into
contact with are managed
Technical skills – refer to expertise in a
particular field, such as marketing, accounting,
computer
software
development,
or
international trade agreements.
Human skills – reefer to the ability to work well
with other people and groups, include skills in
leadership,
motivation,
interpersonal
communication, and conflict management.
Conceptual skills – refer to the ability to think
about complex and broad organizational issues.
These skills enable managers to understand how
the individual parts of the organization fit
together to serve the organization as a whole,
and how the organization fits into its larger
environment.
First-line supervisors – manage the work of
those organizational members who are involved
in the actual production or creation of an
organization’s products or services
Middle managers – manage the work of firstline supervisors and others.
Top managers – have organization-wide
managerial responsibilities (CEo, vp, boardC)
Peter Drucker – management “deals with
people, their values, and their personal
development management is deeply involved in
moral concerns.
Management- 1.) The process of planning,
organizing, leading, and controlling human and
other organizational resources with the aim of (4
main functions) 2.) The effective achievement of
organizational goals. (Purpose)
The Four Functions of Management
(Henry Fayol)
1. Planning
2. Organizing
Conceptual
3. Leading
Framework
4. Controlling
Organization – a goal directed (P), deliberately
structured (O), group of people working together
(L), to achieve results (C).
Henry Mintzberg (Study)
*followed managers for weeks and took notes
on what they did every minute of each day.
*found out that managers’ workdays are
fragmented, have a lot of variety, and move at a
relentless pace.
*found out that deskwork only accounts 22% of
managers’ time.
*study suggested that managers play roles
3 roles and 10 sub roles
Interpersonal roles
 Leader
 Liaison
 Figurehead
Decisional roles
 Resource allocator
 Negotiator
 Entrepreneur
 Crisis handler
Informational roles
 Monitor
 Disseminator
 spokesperson
Mintzberg’s subroles to Fayol’s 4 functions
Planning – means identifying an organizational
goals and strategies and allocating the
appropriate organizational resources required to
achieve them.
Entrepreneur – involves proactively and
voluntarily initiating, designing or encouraging
change and innovation
Negotiator – making incremental changes to
ongoing plans and resources.
Spokesperson – transmits information and
decision across the hierarchy and the general
public.
Organizing – means ensuring that tasks have
been assigned and a structure of organizational
relationships created to facilitate meeting
organizational goals.
Resource allocator – involves the distribution
of all types of resources
Leading – relating with others so that their work
efforts result in the achievement of
organizational goals.
Leader – most important subrole; includes all
forms of communicating with subordinates,
including motivating and coaching.
Liaison – includes building and maintaining good
network of information contacts beyond the
boundaries of a manager’s specific work unit.
Disseminator – managers transmits information
that was gathered either internally or externally
to the members of the organizational unit.
Controlling – involves ensuring that the actions
of organizational members are consistent with
the organization’s values and standards.
Monitor – manager seeks internal and external
information about issues that can affect the
organization.
Crisis handler – requires taking corrective
action where thing are not going as planned.
Figurehead – highlights the important symbolic
role that managers play for their organizational
units; model
.
Effectiveness – choosing the right overarching
organizational goals to pursue and draws
attention to the fact that a manager has moral
obligations
Efficiency – refers to increasing the level of
output that is achieve with a given level of
inputs.
Outputs – goods, services, and other resources
that an organization puts into the environment.
Inputs – human, material, and information
resources.
Doing the right thing = doing things right
With goals to pursue = how to achieve those.
2 basic approach to define effective
management
(Max Weber)
Mainstream – is characterized by its primary
emphasis on materialist-individualist wellbeing; maximizing productivity, profitability, and
competiveness; self-interest.
 Keep your eye in the bottom line
 Winning is everything
 Time is money
Multistream – characterized by its emphasis on
multiple forms of well-being for multiple
stakeholders.
*stakeholder – group of person within or outside
an organization who is directly affected by the
organization and has a stake In its performance.
Comparing Mainstream and Multistream
management
“Ideal Types” – describes a pure model or
approach at a theoretical extreme that helps to
orient people’s thinking and practices.
Planning
Mainstream: setting goals, making plans, and
designing strategies to achieve these goals
(market share, profit, and return if investment)
Multistream: how managers work alongside to
set goals and design strategies; uses practical
wisdom.
Practical wisdom – prudence. Is a virtue that
fosters the capacity for deliberation and action
to obtain what is good for the community
Organizing
Mainstream: involves arranging human and
other organizational resources in such way to
achieve planned goals and strategies; all
resources are seen as a means to accomplish
desired ends.
Multistream: Stakeholders’ participation takes
place; supports the spirit of experimentation of
members; courage
Courage – is the virtue that involves acting in
hopes of correcting unjust structures, and is
evident when someone promotes change
initiatives that have the potential to improve
overall happiness even if this might threaten
one’s own status.
Instrumental skills – are human skills used to get
other people to meet your own interests or the
interests of the organization.
Relationship skills – used to deepen connections
between people and to participate in
collaborative creative efforts.
Leading
Mainstream: managers use systems and
interpersonal skills; managers rely on rewards
such as pay or promotions to motivate
employees to work harder.
Multistream: managers nurtures workplace
where the emphasis on financial and
productivity goals is balanced by an emphasis on
healthy social relationships; self-control; treat
others with dignity; managers as servant leader.
Self-control – (temperance), is a virtue that
helps individuals overcome impulsive actions,
self-serving use of their power, and greediness.
Controlling
Mainstream: managers expects that members
do what they are supposed to do and their
performance meets expectations.
Value chain – sequence of activities needed to
convert an organization’s inputs into outputs.
Information systems – help to identify, collect,
organize, and disseminate information.
3 basic ways of organizational control:
Bureaucratic control – is evident when rules,
regulations, policies, and standard operating
procedures are used to control the behavior of
organizational members.
Market control – evident when competition is
used to control behavior.
Clan control – shared values, norms, and
expectations are used to control behavior.
Multistream:
Justice – is a virtue that justifies organizations,
holds them together, and ensures that everyone
connected with an organization is treated fair.