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