DON HONORIO VENTURA STATE UNIVERSITY
Bacolor, Pampanga
College of Business Studies
Bachelor of Science in Legal Management
Academic Year 2023-2024
1st Semester
Introduction to Business and Management
Chapter 2: Introduction to Management
Description
This part will discuss the relationship of organization and management. It will also discuss the important
roles, functions and skills of managers in order to achieve organizations’ top performance.
Learning Objectives
At the end of the lesson, the students should be able to:
1. Understand the meaning and importance of organization and management
2. Explain why managers are important to an organizations
3. Describe the functions, roles and skills of managers
Topic Outline:
Chapter 2: Introduction to Management
A. Importance of Managers
B. Where managers work
C. Who are managers
D. Why study management
References:
th
Robbins, S., & Coulter, M., Management 11 Edition, Copyright © 2012, 2009, 2007, 2005, 2003 Pearson
Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458
nd
Jos Marcus and Nick van Dam; Organization and Management: An International Approach 2 Edition
Copyright © 2012 Noordhoff Uitgevers bv Groninton/Houten, The Netherlands. ISBN (ebook) 978-90-0184334-2
http://www.boekhandelkrings.nl/images/boeken/90/018/4/3/9789001843342.pdf [Assessed: August 16, 2020]
Principles of Management, 2019; OpenStax Rice University 6100 Main Street MS-375 Houston, Texas 77005
Available at: https://d3bxy9euw4e147.cloudfront.net/oscmsprodcms/media/documents/PrinciplesofManagement-OP_mGBMvoU.pdf [Assessed: August 14, 2020]
https://gurukpo.com/Content/MBA/Principles_and_Practices_of_Management.pdf [Assessed: August 14, 2020]
Introduction: Organization and Organizing
http://www.sagepub.com/sites/default/files/upm-binaries/9793_037066Nch01.pdf [Assessed: August 15, 2020]
5M’s of Management
Available at: https://commerceforward.blogspot.com/2018/08/the-five-ms-of-managementexplained.html [Assessed: August 16, 2020]
Universality of Management
https://sites.google.com/site/gudangmakalahku/universality-of-management [Assessed: August 16, 2020]
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Introduction to Business and Management, Ch2
Page 1
Introduction to Business and Management
Chapter 2: Introduction to Management
Organization and management is twin terms that exists side by side with each other, each one
needs and supports the other. Organizations will be inert and useless if there is no management that
will steer it; management will be hollow and meaningless if there’s no organization to manage.
In the real world of administration, organization and management are essential elements through which
human actions and objectives are carried out and accomplished. In a manner of speaking, organization
and management become a means to an end.
Why Managers are important
“A great boss can change your life, inspiring you to new heights both professionally and personally, and
energizing you and your team to together overcome new challenges bigger than any once of you could
tackle”. Count yourself lucky if you had the opportunity to have worked with such manager. However,
even managers who don’t live up with such criteria and expectations are important to an organization.
Let’s look at the three (3) reasons why.
•
The first reason why managers are important is that organizations need their managerial skills
and abilities more than ever in these uncertain, complex, and chaotic times. As organizations
deal with today’s challenges – the worldwide economic climate, changing technology, increasing
globalization, and so forth – managers play an important role in identifying critical issues and
crafting responses.
•
The second reason why managers are important is that they’re critical to getting things done.
For instance, a manager isn’t someone who will greet and set customers, take their orders, cook
their meals, or prepare a table for another customer, but he/she was the person who creates
and coordinates the workplace systems and conditions so that others can perform their jobs.
His/her job as a manager is to ensure that all the employees are getting their jobs done so the
organization can do what it’s in business to do.
•
Finally, managers do matter to organizations! Some reports have shown that the single most
important variable in employee productivity and loyalty isn’t pay or benefits or workplace
environment; it’s the quality of relationship between employees and their direct supervisors.
Another reports also suggested that, the way a company manages and engages people can
significantly affect its financial performance. Also, a recent study of organizational performance
found that managerial ability was important in creating organizational value. From these reports
we can conclude that managers are important and they do matter!
Where do Managers work?
It’s obvious that managers work in organizations. Organizations are defined differently by different
authors. There are, however, certain essential elements that can be discerned from them.
According to Scott and Mitchell as cited in Nigro 1989, “Formal Organizations are a system of
coordinated activities of group of people working cooperatively toward a common goal under authority
and leadership.
An organization is a deliberate arrangement of people to accomplish some specific purpose. It can be
conceptualized as collection of individuals deliberately structured within identifiable boundaries to
achieve predetermined goals.
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Introduction to Business and Management, Ch2
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Three characteristics of organization:
Deliberate
Structure
Exhibit 1-1 Characteristics of an Organization
Distinct
People
Purpose
•
Have a distinct purpose (goal) – this purpose is typically expressed through goals that the
organization hopes to accomplish.
•
Social entity/people – it takes people to perform work that is necessary for the organization to
achieve its goals.
•
Designated as deliberately structured and coordinated activity systems – that structure may be
open and flexible, with no specific job duties or strict adherence to explicit job arrangements.
Who are Managers?
Managers may not be who or what you might expect! Managers can be young as 18 or over age of 80.
They can run large corporations as well as entrepreneurial start-ups. They can found in the government
departments, hospitals, small businesses, non-profit agencies, schools, museums, and even
nontraditional organizations as political campaigns and music tours.
It is used to be fairly simple to define who managers were: they were the organizational members who
told others what to do and how to do it. Before, it was easy to differentiate managers form nonmanagerial employees, but not now. In many organizations, the changing nature of work has blurred the
difference between managers and non-managerial employees.
A manager is:
 Someone who coordinates and oversees the work of other people so the set organizational
objectives can be achieve.
 A manager’s job is not about personal achievement – but about helping others do their work.
 He/she may have work duties not related to coordinating ad overseeing others’ work. An
example, is that an insurance claims supervisor might process claims in addition to coordinating
the work activities of other claims clerks.
Managers may be classified as first-line, middle or top in a traditionally structured organizations.
Levels of Management
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a. Top level managers
They are responsible for making organization-wide decisions and establishing the plans and goals that
affect the entire organization. They are responsible in controlling and overseeing the entire
organization. These individuals typically have titles such as executive vice president, president,
managing director, chief operating officer, or chief executive officer.
b. Middle level managers
They manage the work of first-line managers and can be found between the lowest and top levels of the
organization. They devote their time to organizational and directional functions than top-level
managers. Their roles can be emphasized as: executing organizational plans in conformance with
company’s policies and objectives; define and discuss information and policies from top management to
lower management; and most importantly, inspire and guide low-level managers towards better
performance. They may have titles such as regional manager, project leader, store manager, or division
manager.
c. First-line managers
They manage the work of non-managerial employees who typically are involved with producing the
organization’s products or servicing the organization’s customers. They usually have responsibilities of
assigning employees’ tasks, guiding employees on a day-to-day basis, and making suggestions and
recommendation. First-line managers may be called supervisors, or even shift managers, district
managers, department managers or office managers.
What do Managers Do?
Managing is one of the most important activities of human life. To accomplish aims that could not be
achieved individually, people started forming groups. Managing has become essential to ensure
coordination of individual efforts. Management applies to all kind of organizations and to managers to
all organizational levels. Principles of management are now used not only for managing business but in
all walks of life viz.., government, military, social and educational institutions. Management is the life
giving element to any organization.
There are many definitions given by some of the management experts are as follows:
 Henri Fayol: “Management is conduct of affairs of business, moving towards its objectives
through a continuous process of improvement and optimization of sources”.
 Koontz: “Management is the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected aims”.
 Mary Parker Follet: “Management is the art of getting things done through people”.
 George R. Terry: “Management is a process consisting of planning, organizing, actuating, and
controlling, performed to determine and accomplish the objectives by use of people and
resources”.
Management involves coordinating and overseeing the work activities of others so that their activities
are completed efficiently and effectively. It ensures that work activities are completed efficiently and
effectively by the people responsible for doing them, or at least that’s what managers aspire to do.
Simply speaking, management is what managers do.
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EFFICIENCY
-
Efficiency measures the relationship between inputs and outputs, or how successfully the inputs
have transformed into outputs.
-
Often referred to “doing things right” – it is getting the most output from the least amount of
inputs. Because managers deal with scare inputs including resources such as people, money and
equipment.
-
Emphasize on input and output; focuses on the process
EFFECTIVENESS
-
It measures the degree to which a business achieve its goals or the way outputs interact with the
economic and social environment. Zheng, 2010, stated that effectiveness determines the policy
objectives of the organization.
-
It is often described as “doing the right things”- that is, doing those work activities that will help
the organization to achieve its goals.
-
Emphasize on means and ends; focuses on the result
-
Measures if actual output meets desired output
Ideally, individuals and companies find ways to become efficient and effective, but it is possible to be
efficient but not effective – and vice versa. For example, if a company is not doing well it may decide to
train its workforce to use a new technology. The training may go well, with employees learning the new
technology in record time, but if the overall productivity doesn’t improve following the implementation
of this new technology, the company’s strategy was efficient but not effective.
Efficiency and Effectiveness In Management
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In a successful organization, high efficiency and high effectiveness typically go hand in hand. Poor
management usually involves being inefficient and ineffective or being efficient, but ineffective.
Describing what managers do isn’t easy. Just as no two organizations are alike, no two managers’ jobs
are the same. In spite of this, management researchers have developed three approaches to describe
what managers do: functions, roles, and skills.
Management Functions
According to the functions approach, managers perform certain activities or functions as they efficiently
and effectively coordinate the works of others. Henri Fayol, a French businessman, first proposed in the
early part of the twentieth century that all managers perform five functions: planning, organizing,
commanding, coordinating, and controlling. Today these five functions were condensed into four:
planning, organizing, leading, and controlling.
Functions of Management
PLANNING
Management function that involves setting goals, establishing strategies for achieving those goals, and
developing plans to integrate and coordinate activities.
ORGANIZING
Management function that involves arranging and structuring work to accomplish the organization’s
goals. When managers organize, they determine what tasks are to be done, who is to them, how the
tasks are to be grouped, who reports to whom, and where the decisions are to be made.
LEADING
Management function that involves working with and through people to accomplish organizational
goals. When managers motivate subordinates, help resolve work group conflicts, influence individuals or
teams as they work, select the most effective communication channel, or deal in any way with
employee behavior issues, they are leading.
CONTROLLING
After goals and plans are set, tasks and structural arrangements put in place, and people hired, trained
and motivated, there has some evaluation of whether things are going as planned. Managers must
monitor and evaluate performance to ensure that goals are being met and job is being done as it should
be. Controlling involves monitoring, comparing, and correcting work performance.
In reality, what a manager does may not always happen in sequence. Regardless of the order in which
these functions are performed, however, the fact that managers plan, organize, led and control as they
manage.
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An argument was made that there is another perspective on describing what managers really do.
Mintzberg’s Managerial Roles and a Contemporary Model of Managing
Henry Mintzberg, a well-known management researcher, studied actual managers at work. In his first
comprehensive study, Mintzberg concluded that what managers do can best be described by looking at
the managerial roles they engage in at work.
The term managerial roles refers to specific actions or behaviors expected of and exhibited by a
manager. (Think of the different roles you play—such as student, employee, student organization
member, volunteer, sibling, and so forth—and the different things you’re expected to do in these roles.)
When describing what managers do from a roles perspective, we’re not looking at a specific person per
se, but at the expectations and responsibilities that are associated with being the person in that role—
the role of a manager.
These 10 roles are grouped around interpersonal relationships, the transfer of information, and decision
making.
The interpersonal roles are ones that involve people (subordinates and persons outside the
organization) and other duties that are ceremonial and symbolic in nature. The three interpersonal roles
include figurehead, leader, and liaison.
The informational roles involve collecting, receiving, and disseminating information. The three
informational roles include monitor, disseminator, and spokesperson.
Finally, the decisional roles entail making decisions or choices. The four decisional roles include
entrepreneur, disturbance handler, resource allocator, and negotiator. As managers perform these
roles, Mintzberg proposed that their activities included both reflection (thinking) and action (doing).
Involves collecting,
receiving
disseminating
Entail making
choices or
decision
Involves with people and
duties that are ceremonial
Exhibit-5 Henry Mintzberg’s 10 Managerial
symbolic in
Recently, Mintzberg completed another-hands-on and up-close study of managers at work and
concluded that, “Basically, managing is about influencing action. It’s about helping organization and
units to get things done, which means action”. Based on his observations, Mintzberg went on to explain
that a manager does this in three (3) ways:
•
•
By managing actions directly (for instance, negotiating contracts, managing projects, etc.)
By managing people who take action (for example, motivating them, building teams, enhance
the organization’s culture, etc.)
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•
By managing information that propels people to take action (using budgets, goals, task
delegation, etc)
The manager at the center of the model has two roles – framing, which defines how a manager
approaches his or her job; and scheduling, which “brings the frame to life” through the distinct tasks the
manager does. The manager enacts these roles while managing action in the three “planes”: with
information, through people, and sometimes by taking action directly. It’s an interesting perspective on
the manager’s job and that adds to our understanding of what is that managers do.
Management Skills
Dell Inc. is a company that understands the importance of management skills, it started an intensive
five-day offsite skills training program for first-line managers as a way to improve its operations. One of
Dell’s directors of learning and development thought this was the best way to develop, “leaders who
can build that strong relationship with their front–line employees”. What have the supervisors learned
from the skills training? Some things they mentioned were how to communicate more effectively and
how to refrain from jumping to conclusions when discussing with a worker.
Robert L. Katz is an American social and organizational psychologist. He created the concept of
managerial skills, which describes how the required skills structure changes, depending on the
management level. What types of skills do managers need? Robert L. Katz proposed that managers
need three critical skills in managing: technical, human, and conceptual.
Technical Skills
Are specific job knowledge and techniques needed to proficiently perform work task. These skills tend
to be more important for first-line managers because they typically are managing employees who
use tools and techniques to produce the organization’s products or service the customers. Having
appropriate technical skills signify that the person is competent and knowledgeable with respect to
the activities specific to an organization, the organization’s rules, and standard operating
procedures, and the organization’s product and services.
Example: In accounting firm, technical skill might include understanding of generally accepted
accounting principles, knowledge of commercial laws, and knowledge of tax laws, etc.
A manager who has technical skills, also recognizes the importance of human skills.
Human Skill
 it relates to the ability to work with people both individually and in group. Because all managers deal
with people, these skills are equally important to all levels of management. Managers with good
human skills get the best out of their people. They know to motivate, communicate, lead and inspire
enthusiasm and trust.
 Some human skills that are generally considered important are effective communication (both
verbal and written), motivating others and creation of a positive attitude, development of
cooperation and team spirit etc.
Conceptual Skills
 These are skills managers use to think and conceptualize about abstract and complex situations.
Using these skills, managers see the organization as a whole, understand the relationships among
various subunits, and visualize how the organization fits into its broader environment. These skills
are most important to top managers.
 Some conceptual skills that are generally important are creativity, decision-making, wing to wing
interconnectedness, thinking as a whole, strategic thinking, problem-solving, etc.
It will also be disastrous for organizations not to properly and effectively organize the 5 M’s for the
organization’s success.
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Important Managerial Skills
Structural Elements (5 M’s) of Management
Men
Money
Material
Management
Machines
Methods
1. Money – it is the most critical and all-purpose resource because it used to acquire or hire other
resources. In organization, money is employed to generate more in the forms of profit or income.
2. Manpower – it refers to the managerial and non-managerial personnel employed in an organization.
Other resources cannot act by themselves and have to be utilized by human beings. Human resources
mobilize, utilize and allocate physical and financial resources of the organization.
3. Materials – represent the physical raw materials and intermediate products which are converted
and/or assembled into finished products with the help of certain process and technology.
4. Machinery – machines are the equipment used to process the materials into semi-finished or
finished products. With the used of modern machinery, they help to improve quality and reduce cost
so they become an important ingredient in the efficient management of management.
5. Methods – refers to the normal and prescribed way of doing things. Various operations are
performed according to certain systems and procedures. Use of right methods contribute to increase
in efficiency of operations and contributes to effective management.
It is the duty of the management or managers to understand the basic nature and functions of each M
and the source of availability. Managers must clearly know the purposes of which the other factors are
employed and coordinated to optimize their combined productivity.
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Why Study Management?
The universality of management is an important concept in the modern management thought. When
describing management as universal, we refer to the widespread practice of management in all types of
organizations and we want to find ways to improve the way organizations are managed.
Universal Need for Management
Management is universally needed in all organizations, so we want to find ways to improve the way
organizations are managed. Why? Because we interact with organizations every single day. Are you
frustrated when you have to spend two hours of waiting in a government office just waiting for the
releasing of your driver’s license? Are you irritated when none of the sales-people in a retail store seems
interested in helping you? These scenarios show problems created by poor management. Organizations
that are well managed – develop a loyal customer base, grow, and prosper, even during challenging
times. By studying management, you’ll be able to recognize poor management and work to get it
corrected.
Another reason of studying management, is the reality that you will either manage or be managed. For
those who plan to be managers, an understanding of management forms the foundation upon which to
build your management skills.
Summary of Learning Outcomes
Managers are important to organizations for three reasons. First, organizations need their managerial
skills and abilities in uncertain complex, and chaotic times. Second, managers are critical to getting
things done in organizations. Finally, managers contribute to employee productivity and loyalty; the way
employees are managed can affect the organization’s financial performance; and managerial ability has
been shown to be important in creating organizational value.
Managers coordinate and oversee the work of other people so that the organizational objectives can be
achieved. In a traditional structured organizations, managers can be first-line, middle, or top.
Management is what managers do and management involves coordinating and overseeing the efficient
and effective completion of other’s work activities. Efficiency means doing things right and effectiveness
means doing the right things. The four functions of management, Mintzberg’s managerial roles and
Katz’s managerial skills can be adapted and use in managing organizations and the importance of
studying management.
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