PRINCIPLES OF MANAGEMENT
LECTURE 01 – INTRODUCTION TO MANAGEMENT
Stevo Pavićević
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COMMON SENSE + MANAGEMENT SCIENCE
According to Albert Einstein, “common sense
is nothing but a collection of misconceptions
acquired by age eighteen.”
“Management science uses various scientific researchbased principles, strategies, and analytical methods to
improve an organization's ability to enact rational and
accurate decisions. Management science helps
businesses to achieve goals using scientific methods.”
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COURSE OBJECTIVES
To teach you the language of management.
To inform you of the theories and concepts of management.
To develop your ability to analyze organizations through critical thinking.
To inspire you to develop and exercise management skills in professional life.
To enjoy some productive and fun time in the classroom.
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COURSE STRUCTURE
LECTURES &
STUDY OF THE
TEXTBOOK
CLASS
ASSIGNMENTS
(20 points)
GROUP PROJECT –
UNDERCOVER BOSS
(40 points)
FINAL EXAM
(60 points)
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LECTURES AND TEXTBOOK
1. Introduction to Management
2. Business Environment
3. Decision Making
4. Planning and Strategy
5. Organization Design
6. Motivation
7. Leadership
8. Controlling
9. Group Project Consultations
10. Course Review and Exam Preparation
11. (No Class) Group Project Submission
David Boddy, Management:
An Introduction, 7th edition,
Pearson, UK, 2017
Slides uploaded on
course website (Canvas)
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CLASS ASSIGNMENTS (20 POINTS)
Vary across the lectures: company
analyses, group discussions, business
games, self-assessments and quizzes.
No preparation is required unless
otherwise announced in advance.
Active participation grants you points, and
in each lecture, you can earn 2-4 points.
A student not attending a lecture will not
receive points for the class assignment
taking place during that lecture. Check
replacement assignment in syllabus.
Always bring your laptop / tablet.
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SUBMISSION OF CLASS ASSIGNMENTS
Save your file as a PDF.
The file name should include all group members (e.g. John_Anna_Mike.pdf).
Go to Canvas  Click on the link below.
Submit by the end of the lecture.
Files uploaded after the lecture
will not count for points.
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CLASS ASSIGNMENTS POINTS
1. Introduction to Management
No assignment
2. Business Environment
3 points
3. Decision Making
3 points
4. Planning and Strategy
4 points
5. Organizational Structure
4 points
6. Motivation
2 points
7. Leadership
2 points
8. Controlling
2 points
Total
20 points
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GROUP PROJECT (40 POINTS)
An opportunity to apply knowledge to real
management issues presented in a reality
television program - Undercover Boss.
Analyze managerial challenges by applying the
management theories and concepts.
Generate and evaluate alternative actions to
disentangle the challenges you identified.
Make recommendations and describe how your
recommendations can be implemented.
Present and defend your recommendations in a
15-minute video presentation.
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GROUP PROJECT TIMELINE
Class 1: Project kick-off
(Between class 1 and 5: Watch the episode and brainstorm)
Class 5: Expectations and reflections
(Between class 5 and class 9: Draft)
Class 9: Consultations
Class 11: Submit video presentations (15 minutes) and slides.
Independent work. Peer review.
All details, including YT links, are in the syllabus.
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VIDEO PRESENTATIONS
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FINAL EXAM
60 minutes = 60 points
Written exam, closed-book.
A set of multiple-choice questions. Only
The test of your understanding of the course content, not the test of your memory.
Based on the content of lectures, class assignments, and the selected book chapters.
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EXAMPLES OF QUESTIONS
Danny, the manager of The North Face, installed new manufacturing equipment to speed up the production
process after the assigned targets were not achieved for the third week of the month. With regard to the
control process, Danny is:
A) establishing the standards of performance
B) measuring the actual level of performance of employees
C) evaluating the result of the set standards
D) initiating corrective actions
E) comparing actual performance to the standards
At Xen Limited, each product line is managed within a separate division. In each of these divisions, the division
manager is responsible for creating the business-level strategy for the product line. In designing their
organizational structure, managers of Xen Limited have decided to utilize:
A) functional departmentalization
B) product-based departmentalization
C) process-based departmentalization
D) corporate business departmentalization
E) market-based departmentalization
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SUMMARY
I Class participation and activities
20
II Group project: Presentation
40
III Final exam
60
Total
120
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HOUSEKEEPING RULES
BE ON TIME. QUITE.
ZERO TOLERANCE. TELL ME.
JUST DO IT.
SMART TECH. SMART USE.
SHHHH…
ASK IN CLASS.
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QUESTIONS ?
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WHAT IS MANAGEMENT ?
BOOK CHAPTER 1 (p.3-35)
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MANAGEMENT
Simply speaking, management is what managers do or
what decisions managers make.
Managers coordinate and oversee the work of other
people, and make decisions, so organizational goals can
be accomplished. It is not about personal achievement,
but about helping others do their work.
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MANAGEMENT IS A PROCESS.
MANAGEMENT IS A ROLE.
MANAGEMENT IS A SKILL.
MANAGEMENT IS A UNIVERSAL HUMAN ACTIVITY.
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MANAGEMENT IS A PROCESS: DEFINITION
Management is the process of attainment of
organizational goals in an effective and efficient manner
through planning, organizing, leading, and controlling of
organizational resources.
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MANAGEMENT IS A PROCESS.
Management is the process organizational goals’ attainment (…).
Organization is a deliberative arrangement of people to accomplish
some specific purpose.
An organization has a distinct
purpose typically expressed
through goals the organization
hopes to accomplish.
Each organization is composed
of people. It takes people to
perform the work that is
necessary to achieve goals.
All organizations develop a
deliberate structure
within which members
do their work.
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ORGANIZATIONS AND GOALS
We are members of many organizations. What goals are we trying to attain?
Frankfurt School
UNESCO
Manchester United
Pepsi
…
…
…
…
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EFFECTIVENESS AND EFFICIENCY
Management is the process of attainment of organizational goals
in an effective and efficient manner (…).
Efficiency: a measure of how productively resources are used to
achieve a goal or simply “doing things right”.
Effectiveness: a measure of the degree to which work activities
result in achieving a goal or simply “doing the right things”.
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EFFECTIVENESS AND EFFICIENCY
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MANAGEMENT FUNCTIONS
Management is the process of organizational goals’ attainment in an
effective and efficient manner through four management functions.
PLANNING
ORGANIZING
LEADING
CONTROLLING
Set overall direction.
Define goals.
Establish plans to
achieve goals.
Outcome: strategy.
Define how tasks are
grouped into
departments.
Allocate time/effort.
Outcome: structure.
Motivate employees.
Foster commitment.
Communicate.
Outcome: motivated,
committed workforce.
Monitor performance
and compare with
goals. Corrective
actions. Outcome:
measure performance.
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MANAGEMENT IS A PROCESS: DEFINITION
Management is the process of attainment of
organizational goals in an effective and efficient manner
through planning, organizing, leading, and controlling of
organizational resources.
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MANAGEMENT IS A PROCESS.
MANAGEMENT IS A ROLE.
MANAGEMENT IS A SKILL.
MANAGEMENT IS A UNIVERSAL HUMAN ACTIVITY.
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MANAGERIAL ROLES
Top managers are responsible for making organization-wide decisions and
establishing plans and goals that affect the entire organization.
Middle managers manage the work of first-line managers and can be found
between the lowest and top levels of the organization.
First-line managers manage the work of non-managerial employees who
typically are involved with producing the organization’s products.
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MANAGERIAL ROLES
Henry Mintzberg proposed that managers perform
10 different roles, which could be further grouped
into three categories that are highly interrelated.
Because of their authority and status, managers
have the duty of representing the organization
and develop interpersonal relationships.
The interpersonal roles place managers in a
unique position to get information.
Managers’ unique access to information and
special status and authority allows them the
make significant organizational decisions.
Source: Mintzberg, H. (1973) The nature of managerial work.
Formal authority and status
INTERPERSONAL ROLES
Figurehead
Leader
Liaison
INFORMATIONAL ROLES
Monitor
Disseminator
Spokesman
DECISIONAL ROLES
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
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INTERPERSONAL ROLES
The figurehead role: represent
the organization in all matters
of a legal or social nature.
The leader role: maintain
relationships with subordinates
– motivate and direct them.
The liaison role: interact with
people outside the organization
to gain favors and information.
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INFORMATIONAL ROLES
The monitor role: receive wide
variety of information; serve as
nerve center of internal and
external information.
The disseminator role: transmit
information received from
outsiders or from employees to
members of the organization.
The spokesperson role:
transmit the organization’s
information to outsiders.
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DECISIONAL ROLES
The entrepreneur role:
look for opportunities and
initiate strategic change.
The disturbance handler role:
take charge when the
organization is threatened.
The resource allocator role:
decide who gets resources,
schedule, budget and set
priorities.
The negotiator role: represent
the firm at major negotiations.
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THE CHANGING NATURE OF WORK
The changing nature of work
has blurred the distinction
between managerial and
nonmanagerial employees in
many organizations.
Many nonmanagerial
employees now perform
managerial roles.
Zappos’ “Holacracy”
Valve’s “No Job Titles”
Morning Star’s “No Managers”
Google’s “80/20 Rule”
No job titles or no formal
supervision.
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MANAGEMENT IS A PROCESS.
MANAGEMENT IS A ROLE.
MANAGEMENT IS A SKILL.
MANAGEMENT IS A UNIVERSAL HUMAN ACTIVITY.
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MANAGEMENT IS A SKILL.
Robert Katz proposed that managers need three critical skills in managing:
Technical skills: knowledge and ability
in a specialized area of business such as
mechanical engineering or accounting.
the ability to
perform a
specific job
Human skills: the ability to understand,
work with, and motivate other people.
the ability to
interact well
with people
Conceptual skills: the ability to think
and to conceptualize about abstract
and complex situations.
the ability
to think
analytically
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MANAGERIAL SKILLS
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MANAGERIAL SKILLS
!!!
“In the Google context, we’d always believed
that to be a manager, particularly on the
engineering side, you need to be as deep or
deeper a technical expert than the people
who work for you.
It turns out that that’s absolutely the least
important thing. It’s important, but pales in
comparison. Much more important is just
making that connection and being accessible.”
Laszlo Bock
Google’s ex-Vice President “People Operations”
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INCREASING COMPLEXITY… DEMANDS FOR NEW SKILLS
Ruth Porat, CFO of Alphabet
and its subsidiary, Google
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MANAGEMENT IS A PROCESS.
MANAGEMENT IS A ROLE.
MANAGEMENT IS A SKILL.
MANAGEMENT IS A UNIVERSAL HUMAN ACTIVITY.
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MANAGEMENT IS A UNIVERSAL HUMAN ACTIVITY.
The universality of
management.
The reality at work.
Why study management ?
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UNIVERSAL NEED FOR MANAGEMENT
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UNIVERSAL NEED FOR MANAGEMENT
The reality of work. After your graduate, you will either manage or
be managed. Even if you don’t aspire to be a manager, you still can
gain something valuable from a course in management.
Relationship with your boss. “Why bosses do what they do, and
say what they say?” Understand the company’s management,
leader power and leadership behavior.
Interactions with co-workers. Understand how group-mates may
think about work attitudes, job structure, organizational culture
and all other important aspects of work life.
Personal growth. How technical experts make successful transition
to good managers? By studying management.
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RECAP
Managers
posses:
Technical skills
Human skills
Conceptual skills
perform
Functions:
Planning
Organizing
Leading
Controlling
Roles:
Interpersonal
Informational
Decisional
to achieve
Organizational
performance:
High
effectiveness
High
efficiency
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NEXT TIME
BUSINESS ENVIRONMENT
BOOK CHAPTER 3 (p. 84-111)
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