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FUNDAMENTALS OF
MANAGEMENT
NORHUSNIYATI HUSIN
UITM MELAKA
CHAPTER 1
INTRODUCTION TO
MANAGEMENT
Learning Objectives
1. Definition of organization
and management.
2. Measuring managerial performance.
3. Managerial process functions and
activities.
4. Management levels, skills and roles.
5. Evolution of management thoughts.
1. DEFINITION OF
ORGANISATION AND
MANAGEMENT
Why do you study management?
understand events, challenges and skills
help organization achieve a high level of
performance
equip our knowledge with theories and
practices
able to make good decision
be a good planners
responsible and accountable towards the
accomplishment of organizational
objectives
What is management?
The art of getting things done through people -
FOLLET
The process of planning, organizing, leading and
controlling the efforts of an organization members
and of using all other organizational resources to
achieve stated organizational goals - STONER
The process of planning, organizing, leading and
controlling that encompasses human, material,
financial and informational resources in an
organizational environment- HOLT
What is an organization?
An organization is a social unit which two or
more people interact to achieve a common goal
or set of goals- STONER
An organization is a collection of people
working together in a division of labor to
achieve a common purpose- SCHERMERHORN
The structure of relationships that exists when
two or more people mutually cooperates to
pursue common objectives- HOLT
Why do we need an organization?
Accomplish objectives
Preserve knowledge
Serve society
Provide careers
What are formal and informal
organization?
Formal organizations consist of two or more
people who are involved in a mutual effort with
formal authority to achieve common objectives-
HOLT
Informal organizations are shadow organizations
consist of two or more people involved in a mutual
effort without deliberate structures of authority or
the necessity of the common objectives
The difference is formal organization is with formal
authority and the informal is without formal
authority.
2. MEASURING MANAGERIAL
PERFORMANCE
What is a manager?
A manager is a person in an organization
who is responsible for the work or
performance of one or more other
persons – SCHERMERHORN
The people who plan, organize, lead and
control the activities of an organization so
that its goals can be achieved.
Managers are vital to determine the
success of the organization.
How do we measure a manager’s
performance?
Two main criteria - efficiency and performance
effectiveness:
Performance efficiency is defined as ability to do
the things right. Manager who can achieve outputs
or results as expected. Able to utilize and
minimize the cost of resources such as staff,
finance, equipment as well as raw materials.
Performance effectiveness is defined as choosing
the right goals. It is said as doing the right things.
Example; if demand for small and economical cars
but manager choose to produce big and luxury
car the manager is ineffective.
Performance effectiveness and efficiency as
foundations for productivity and managerial success
G High Effective and efficient,
O
Effective but goals are achieved and
A
not Efficient. resources are well utilized,
L
Some resources are area of high productivity
Wasted.
A
T
T
AB
A
I
C D
Neither Effective nor Efficient but not effective,
N
efficient, goals are not no wasted resources but
M
achieved, resources goals not achieved
E
wasted in the process.
N
T Low
Poor Good
RESOURCE UTILIZATION
3. MANAGEMENT PROCESS,
FUNCTIONS AND ACTIVITIES
The Management Process
PLANNING
ACHIEVING THE
ORGANIZING ORGANIZATION’S
STATED
COMMUNICATION PURPOSE
(GOALS/
LEADING MISSION)
CONTROLLING
Management process POLC
Human
Human
Technical
Technical
Technical
Managerial Roles (1)
A. Interpersonal roles – helps the manager in
managing the organizational smoothly.
*LEARNING
ORGANIZATIO
N
*TECHNOLOG
Y-DRIVEN
WORKPLACE
Classical Viewpoint: Scientific &
Administrative Management
Theory Y
◦ represents an optimistic, positive view of workers
◦ Workers are considered capable of accepting
responsibility, self-direction, self control and being
creative
Quantitative Viewpoints: Management
Science & Operations Research
Views management as a system of processes
Decision making is a rational process then they could
construct a model to duplicate the process