Fundamentals of Management - Unit 1 Lecture Notes PDF

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University of Technology, Jamaica Introduction to Management/Principles of Management Module Code MAN1006/MAN1001 Lecture #1 The Fundamentals of Management and the Organization Source: Daft, R. & Marcic D. (2011). Management: The new workplace. 7th ed. Thomson SouthWestern, Cenage Learning. Chp.1. THE FUNDAMENTALS OF MANAGEMENT Unit Objectives At the end of this unit, the student will be able to: 1. Define Management and the Organization. 2. Differentiate the Functions of Management and the type of management activity associated with each. 3. Contrast Efficiency and Effectiveness and state their importance to organizational performance. 4. Describe the management levels and their Horizontal and Vertical Differences. 5. Compare conceptual, human, and technical skills and their relevance to managers and employees. 6. Differentiate the various roles under the categories of Informational, Decisional and Interpersonal, that managers perform in organizations. What Is Management? Early 20th century management scholar Mary Parker Follett, defined management as “the art of getting things done through people”. Noted management theorist Peter Drucker stated that the job of managers is to give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals. What Do Managers Do? Get things done through people and other resources and provide leadership and direction. Management Defined Management is defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. (Daft&Marcic, 2011) Management refers to the process of getting things done, effectively and efficiently, through and with other people. The term process represents the primary activities that supervisors perform.

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Who Are Managers? • Managers are the executive function of the organization, responsible for building and coordinating an entire system rather than performing specific tasks. • Managers solve problems, turn organizations around, and achieve astonishing performances. The Functions of Management • Planning • Organizing • Leading • Controlling PLANNING Defining goals for future organizational performance and deciding on the tasks and resources needed to attain them ORGANIZING Includes arranging and grouping jobs, allocating resources, and assigning work so that activities can be accomplished as planned. LEADING Involves the use of influence to motivate employees to achieve the organization’s goals. CONTROLLING Monitoring employees’ activities, keeping the organization on track toward its goals, and making corrections as needed. The Organization An organization is a systematic grouping of people brought together to accomplish some specific purpose. Examples of organizations include: schools, colleges, universities, banks, libraries, government agencies, churches, supermarkets, etc. Organization Defined An organization is a social entity that is goal-directed and deliberately structured. (Daft&Marcic, 2011) Common Characteristics of Organizations All organizations, regardless of their size or focus, have three common characteristics: 1) A Purpose 2) Composed of People 3) A Systematic Structure

Organizational Performance Prepared by: Flo Angus

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Performance may be measure by the degrees of EFFICIENCY and/or EFFECTIVENESS achieved. Efficiency Efficiency is the amount of resources used to achieve an organizational goal. Resources include raw materials, money and people - to produce a desired volume of output. Efficiency refers to the relationship between inputs and outputs, calculated as the amount of resources used to produce a product or service. If you get more output for a given input, you have increased efficiency. Effectiveness Effectiveness is the degree to which the organization achieves a stated goal. In an organization, this translates into goal attainment. It is the degree to which the organization achieves a stated goal. Difference Between Efficiency & Effectiveness Whilst Effectiveness means doing the right task, Efficiency means doing things right. Levels in The Organization Levels in the organization may be viewed Vertically or Horizontally. Org”anizational Levels - Vertical Vertically, there are four distinct levels in an organization. The top three are management and =the lowest is non-management. At the Vertical Level, there are three (3) managerial Levels: Top Managers, Middle Managers and First-Line Managers Top Managers: A top manager falls at the top of the organization and is responsible for the entire organization. (Daft, 2005). They determine the form of an organization and define its overall character, mission and direction. (Bedeian, 1993) Middle Managers: A middle manager occupies roles positioned above first-line and below top management in the organizational hierarchy and is responsible for major departments. Positions include: Department Head, Division Head, Operations Manager. First-Line /Front Line Managers: A First-line manager is one who falls below middle management. They are directly responsible for managing operating (non-managerial employees) and resources. (Bedeian, 1993). Non-Managerial Employees: The base level comprises of Operative Employees – employees who physically produce goods and services by working on specific tasks. Examples include: clerks, machine operators, administrative assistants, sales representatives, etc. Prepared by: Flo Angus

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Organizational Levels - Horizontal Horizontally, management is viewed at a single level of the hierarchy, where management jobs occur across, rather than from top to bottom. Here, the different types of managers would be viewed one level at a time, for example, at the top level, CEOs, Managing Directors or Presidents. At the middle level, Functional managers, e.g. Marketing Manager, Accounts Manager, Human Resource Manager. At the front or first line level, Supervisors ( in the various departments). Also included would be Divisions. For example, a company may have several branches, or be organized by Product /Service or Geographic region. Horizontal Management Levels Functional Manager – responsible for a department that performs a single functional task and has employees with similar training and skills. The functional departments include: Marketing, Sales, Finance, Human Resources, Production/Manufacturing Accounting and Information Technology. General Manager (GM) – responsible for several departments that perform different functions. The GM is responsible for a self-contained division, such as a retail store, and for all of the functional departments within it. Project Managers also have GM responsibility, since they coordinate people across several departments to accomplish a specific project. Management Skills Conceptual Skills – the cognitive ability to see the organization as a whole and the relationships among. (Daft, 2005). Human Skills – the ability to work with and through other people and to work effectively as a group member. (Daft, 2005). Technical Skills – the understanding of and proficiency in the performance of specific tasks. (Daft, 2005). Technical skills however, become less important than human and conceptual skills as managers move up the hierarchy. Mintzberg’s Ten Roles Of Management Mintzberg’s observations and subsequent research indicate that diverse manager activities can be organized into ten Roles. Definition: A Role is a set of expectations for one’s behaviour. The Categories of Roles Each role represents activities that managers undertake to ultimately accomplish the functions of planning, organizing, leading and controlling. The roles of management are divided into three categories: – Informational (managing the collection and dissemination of information) Prepared by: Flo Angus

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 Monitor, Disseminator and Spokesperson – Interpersonal (managing through people; motivation and leadership)  Figurehead, Leader and Liaison – Decisional (managing through action)  Entrepreneur, Disturbance Handler, Resource Allocator and Negotiator END OF NOTES

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