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MGT162 Chapter 1 INTRODUCTION TO MANAGEMENT

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CHAPTER 1
INTRODUCTION TO
MANAGEMENT
Credit to Norchahaya Johar - FPP UiTMT
Learning
Objective
Why study Management?
• You may one day in your career manage or be
managed therefore having basic understanding of basic
management process will be an advantage
• You may develop the skills and knowledge to deal with
people in an organized and professional manner
• Gain confidence and knowledge to direct teams
successfully
• Management is needed in all types and sizes of
organization
DEFINITION
Management is the process of
administering and coordinating
resources effectively, efficiently, and
to achieve the goals of the
organization.
RESOURCES
• People
• Raw material
• Money
• Technology
• Processes
Credit to Norchahaya Johar - FPP UiTMT
ORGANIZATION
WHY IS MANAGEMENT IMPORTANT TO
ORGANIZATION?
• Existence and success of any organization
depends on the kind of management it has
• Management is important:
• For the achievement of organization goals
• For the efficient utilization of resources
• For changes and development of organization
• For the prosperity of society
• For the establishment of equilibrium
(balance)
Credit to Norchahaya Johar - FPP UiTMT
HOW TO MEASURE MANAGERIAL
PERFORMANCE?
• Effectiveness
• Achieved when the organization pursues
appropriate goals.
• This means “doing the right things.”
• Efficiency
• Achieved by using the fewest inputs (e.g., people
and money) to generate a given output.
• This means “doing things right.”
• The end result of effective and efficient management
is organization’s success.
MANAGEMENT FUNCTION
MANAGEMENT FUNCTION…cont
MANAGING AN
ORGANIZATION IS A
CHALLENGING AND COMPLEX
TASK
WHAT ARE THE ROLES AND SKILLS MANAGER’S
SHOULD HAVE IN ORDER TO BE EFFECTIVE? THIS
WILL BE DISCUSSED IN THE NEXT FEW SLIDES
Credit to Norchahaya Johar - FPP UiTMT
MANAGERIAL LEVELS
• Refers to a line of distinction
between managerial positions in
an organization
• Determine the chain of
command
FIRST LINE MANAGERS
• First line managers supervise the individuals who are
directly responsible for producing the organizations’
product or delivering services to the customer.
• Primary objective is to ensure that the products and
services of their organization are delivered to
customers on a day to day basis
• Often goes by titles such as production supervisor, line
manager or section chief.
• In the banking line, the first line managers are the
officers who supervisors the customer service
employees at the counter.
MIDDLE MANAGERS
• Supervise first line managers or staff departments
• They carry titles such as department head, product
manager or marketing manager
• Primary objective is to allocate resources effectively and
manage the first line managers so that overall goals of the
organization can be achieved
• Middle level managers perform linkages between top
managers, overall strategy and first line managers
• Example of ML managers in banking line is Branch
Manager, Human Resource Manager, Credit Manager. In
hotel line, ML would be the Marketing Manager, Food and
Beverage Manager, Event Manager.
TOP LEVEL MANAGER
• Provide the strategic direction for the organization and
develop goals.
• They carry titles such as Chief Operating Officer (COO),
Chief Executive Officer (CEO), Chief Financial Officer.
• Time spent on planning and leading
• Communication is usually with stakeholders
• Famous Top Level Manager from the banking line in
Malaysia are Tan Sri Azman Hashim (AMBANK), Dato’
Sri Nazir Razak (CIMB) and Dato’ Sri Abdul Wahid
Omar (Maybank Berhad)
• Famous Hoteliers are Conrad Hilton, J.W. Marriot
MANAGEMENT SKILLS
• Technical Skills
• The ability to utilize the knowledge of tools, techniques,
and procedures that are specific to a particular field.
• Important to first line managers because they need to
manage the employees who are directly involve with
production/services.
• Human Skills
• The ability to work effectively with one’s own work group
as well as others within the organization.
• Important to middle level managers because they need to
coordinate the efforts of one’s work group as well as
coordinate with other work groups within the organization.
MANAGEMENT SKILLS…CONT
• Conceptual Skills
• The ability to process information about the
internal/external environment of the organization and
determine its implications.
• Important to Top Level Manager as they need to
effectively accomplish organizational goals.
• It enables TL managers to process tremendous amount
of information about the external and the internal
environment of the organization and to determine the
implications of that information
LEVELS AND SKILLS
MINTZBERG’S MANAGERIAL ROLES
Credit to Norchahaya Johar - FPP UiTMT
INTERPERSONAL ROLES
• The manager’s responsibility for managing relationships
with organizational members and other constituents:
• Figurehead
• Represent the organizations in managerial
capacity as head of unit
• Leader
• A person who is responsible for hiring, training and
motivating subordinates in the organization
• Liaison
• A person who performs and interacts with other
people outside the organization such as suppliers,
customers, competitors
INFORMATIONAL ROLES
• The manager’s responsibility for gathering and
disseminating information to the stakeholders of the
organization:
• Monitor – Seeks and receives information from
internal and external environment.
• Disseminator – After filtering the information,
managers will transmit information received to the
employees
• Spokesperson – represent views of the unit for which
he/she is responsible for
DECISIONAL ROLES
• The manager’s responsibility for processing
information and reaching conclusions:
• Entrepreneur – explore new opportunities and projects
• Disturbance handler – acts as judge, problem solver,
conflict manager
• Resource allocator – managing resources
• Negotiator – ability to negotiate / make accommodations
with other units or organization
END OF CHAPTER 1
Source: Management: Challenges for Tomorrow’s Leaders by
Goodman, Fandt, Michlitsch and Lewis
Credit to Norchahaya Johar - FPP UiTMT
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