1. The Foundation of
Management
Arif Hartono, SE.MHRM. PhD.
Department of Management
Faculty of Economics
Universitas Islam Indonesia (UII)
Email: arifhartono@yahoo.com
Mobile: 081 392 390 450
2. What is organization?
• Organization
– A collection of people working together to
achieve a common purpose
– Organizations provide useful goods and/or
services that return value to society and
satisfy customer needs
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4. Organizational Performance
• Organizational performance
– “Value creation” is a very important notion for
organizations
– Value is created when an organization’s
operations adds value to the original cost of
resource inputs
– When value creation occurs:
• Businesses earn a profit
• Nonprofit organizations add wealth to society
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5. Organizational Performance
• Organizational performance
Performance Performance
Productivity
effectiveness efficiency
• An overall • An output • An input
measure of the measure of task measure of the
quantity and or goal resource costs
quality of work accomplishment associated with
performance goal
with resource accomplishment
utilization taken
into account
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7. What is the management process?
• Managers achieve high performance for their
organizations by best utilizing its human and
material resources
• Management is the process of planning,
organizing, leading, and controlling the use of
resources to accomplish performance goals
• All managers are responsible for the four
functions
• The functions are carried on continually
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9. What is the management process?
• Functions of management …
– Planning
• The process of setting objectives and
determining what actions should be taken to
accomplish them
– Organizing
• The process of assigning tasks, allocating
resources, and arranging the coordinated
activities of individuals and groups to
implement plans
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10. What is the management process?
• Functions of management …
– Leading
• The process of arousing people’s enthusiasm
to work hard and direct their efforts to fulfill
plans and accomplish objectives
– Controlling
• The process of measuring work performance,
comparing results to objectives, and taking
corrective action as needed
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