2. Principles of Management Second Edition
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CHAPTER 1
INTRODUCTION TO
MANAGEMENT

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LEARNING OUTCOMES
After studying this chapter, you should be able to:
 Define organization and management.
 Explain the importance of management.
 Describe the management process or functions of P-O-
L-C.
 Describe the levels of management, and management
skills.
 Understand the types of managers, and describe their
roles and the changing nature of their work.
 Know the characteristics of a contemporary manager.
 Discuss the trials of management.

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1.1 INTRODUCTION
 For most of our lives, we are members of one
organization or another.
 These organizations are put and kept together by a
group of people who see that there are benefits
available from working together towards a common
goal or goals.
 This chapter introduces management principles and
theories, and the challenges of applying these
principles and theories in today’s business
environment.

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1.2 DEFINITION OF AN
ORGANIZATION
 An organization is defined as a systematic
arrangement of people brought together to
accomplish some specific purpose.
 Characteristics of an organization:
– A distinct goal and purpose
– Comprises people working together to accomplish
certain objectives
– A systematic structure
– An aim to serve society

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1.3 DEFINITION OF MANAGEMENT
 Classical definition of Management:
– Mary Parker Follett, one of the earlier theorists of
management, defined management as the art of
getting things done through people.
 Broad definition of Management:
– Management can be defined as the process of
consolidating and managing resources effectively and
efficiently in an effort to achieve the goals of the
organization.

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1.4 IMPORTANCE OF MANAGEMENT
 Management achieves organizational goals
 Management efficiently utilizes resources
 Management is essential for prosperity of society
 Management addresses the challenges of
management
 Management establishes equilibrium

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1.5 MANAGEMENT PROCESS
 A process is a way of doing things, which is on-going
(continuous) and systematic.
 Management is a process which emphasizes that all
managers, regardless of their specific aptitudes or
skills, engage in certain interrelated functions to
achieve certain desired goals.

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1.5.1 Management Functions
 Planning
– the process of defining goals, establishing strategies
and developing action plans to coordinate activities
towards accomplishing organizational goals.
 Organizing
– the process of determining what needs to be done,
how it will be done and who is to do it.

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 Leading
– the process of directing and influencing all
organizational members involved, motivating them
and resolving conflicts towards achieving
organizational goals.
 Controlling
– the process of monitoring activities to ensure that
they are accomplished as planned.
1.5.1 Management Functions (cont.)

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1.6 MANAGERS AND MANAGEMENT
 The term ‘manager’ refers to someone who is
responsible for carrying out the four main activities
of management in relationships over a specific time.
 One way to grasp the complexity of management is
to understand that managers play important roles at
different levels in an organization.
 These managers carry out a wide range of
organizational activities related to an organization’s
success.

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1.6.1 Levels of Management
 Top level management
– responsible for the overall management of an organization
– They are called executives. They establish operating
policies and guide the organization’s interaction with its
environment.
 Middle level management
– direct the activities of lower level managers and
sometimes those of operating employees
– direct activities which implement their organization policies
and balance organizational demands on managers with
the capacities of their employer

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 Lower level management
– responsible for the work of non-management
employees, but do not supervise other managers and
are also directly responsible for the production of
goods or services
1.6.1 Levels of Management (cont.)

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 Technical Skills
– ability to utilize job specific knowledge of tools,
techniques and procedures which are specific to a
particular field to perform a task
 Human Skill
– ability to work effectively with one’s own work group
as well as others in an organization
1.6.2 Skills of Management

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 Conceptual Skill
– ability to analyze and diagnose a situation to
determine cause and effect. This skill is also defined
as an ability to process information from both internal
and external environments of an organization and
determine related implications
1.6.2 Skills of Management (cont.)

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1.6.3 Scope and Responsibilities
of Managers
 General Manager
– responsible for managing several different divisions or
departments
– makes decisions across the different functions and
ensures that staff rewards are tied to the performance of
entire units
 Functional Manager
– in charge of one major function, for instance a department
in an organization
– can also be considered someone who manages a work
unit that is grouped based on specific functions

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1.6.4 Roles of Managers
Interpersonal
– Figurehead
– Liaison
– Leader
Informational
– Monitor
– Disseminator
– Spokesperson
 Decisional
– Entrepreneur
– Disturbance
handler
– Resource
allocator
– Negotiator

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1.7 THE NEW MANAGER AND
LEADER PROFILE
The characteristics of today’s managers include:
 No longer considered ‘the boss’, instead act as
sponsors, team leaders or internal consultants.
 No longer in control from the top of the pyramid, neither
try to control actions from the side-line.
 Empowering individual employees to do what is
necessary to achieve goals.
 Making sure employees have the resources to get jobs
done.

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1.8 TRIALS OF MANAGEMENT
 Change is inevitable; today’s managers must view change
as a constant feature in their lives.
 Managers leading organizations must continuously operate
in a context that is very complex and dynamic, forcing them
to continually adjust to these changing conditions.
 Some of the prevalent and concurrent trials of management
are:
– Internet and information technology
– Globalization
– Diversity and intellectual capital
– Ethical practice and social responsiveness