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CHAPTER SIX

Introduction to Management

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LEARNING OUTCOMES
In this chapter, you will learn to:

Define what an organization is.

Describe managers and the three managerial levels in

organizations.

Describe management as a process.

Explain communication as an effective tool in

organizations.

Explain the differences between efficiency and

effectiveness, and their importance for organizational
performance.

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LEARNING OUTCOMES (cont.)

Describe the skills needed by managers and how they

differ according to managerial levels.

Explain the roles of managers in organizations.

Describe the five types of organizational structures.

Explain four main theories of motivation.

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ORGANIZATION

An organization is a systematic arrangement of

people who work together to achieve a common

purpose.
There are two types of organizations:
Profit-oriented
Non-profit oriented

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CORE ELEMENTS OF AN
ORGANIZATION

There are three core elements that are common in

all organizations:
Organizational goals
People
Structure

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MANAGERS IN ORGANIZATIONS

A manager is a person who is responsible to

co-ordinate, guide and supervise the work and

performance of other organizational members,
to attain organizational goals.
A managers success depends very much on
his/her ability to get things done through other
individuals.

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MANAGERIAL LEVELS (cont.)

Top-level managers
Set the goals and provide the strategic directions
for the organization.
Accountable for the overall management of the
organization.
Examples; President, Chief Executive Officer, VicePresident

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MANAGERIAL LEVELS (cont.)

Middle-level managers
Responsible for carrying out the goals set by top
management.
Perform as linkages between the top level and the
first-line managers.
Examples; District Manager, Division Manager

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MANAGERIAL LEVELS (cont.)

First-level managers
Interact and work most closely with the
operational employees.
Responsible to direct and supervise the actual
day-to-day work of the organization at the
operating level.
Examples; Supervisor, Team Leader

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What Is Management?

Management
The process of getting things done effectively and
efficiently, with and through people

Effectiveness
Doing the right things, doing those tasks that
help an organization reach its goals

Efficiency
Concerned with the means, efficient use of
resources like people, money, and equipment
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MANAGEMENT PROCESS

Management is the process and activities involved

in pursuing organizational goals efficiently and
effectively by planning, organizing, leading and
controlling the organizations resources.

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MANAGEMENT FUNCTIONS
Planning
Planning involves setting appropriate and
clear goals and objectives, and establishing
appropriate strategies to accomplish them.

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MANAGEMENT FUNCTIONS (cont.)

Organizing
Organizing is the process of arranging and
coordinating organizational resources, particularly
human resources, to carry out the organizational
plan.
Leading
Leading is a process of motivating subordinates,
and inspiring others, towards achieving the
organizational goals.
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MANAGEMENT FUNCTIONS (cont.)

Controlling
Controlling is the process to ensure that
performance is as planned and taking the
necessary corrective actions/changes when
needed.

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The Control Process

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Areas of Management

Human Resource Managers

hire and train employees, evaluate performance, and
determine compensation

Operations Managers
responsible for production, inventory, and quality
control

Marketing Managers
responsible for getting products from producers to
consumers.
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Areas of Management (cont.)

Information Managers
design and implement systems to gather, organize,
and distribute information

Financial Managers
plan and oversee accounting functions and
financial resources

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What Skills Do Managers Need?

Robert Katz and others describe four critical skills in
managing

Conceptual Skills
Used to analyze complex situations

Interpersonal Skills
Used to communicate, motivate, mentor and delegate

Technical Skills
Based on specialized knowledge required for work

Political Skills
Used to build a power base and establish connections
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MANAGEMENT SKILLS AT
DIFFERENT MANAGERIAL LEVELS

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EFFICIENCY AND EFFECTIVENESS

Effectiveness
The degree to which an organization achieves its
goals.
It is about doing the right things, typically in terms of
quantity as well as quality.
Efficiency
The degree of how well resources are used to achieve
a goal.
It is about doing the things right.
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RELATIONSHIP BETWEEN
EFFICIENCY, EFFECTIVENESS
AND PERFORMANCE

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MANAGERIAL ROLES
Interpersonal Roles
Interpersonal roles are primarily concerned with relationships
with other people. The three roles under interpersonal roles
are figurehead, leader, and liaison.
Informational Roles
Managers obtain information and must communicate
information to people inside and outside the organization. The
three informational roles are monitor, disseminator and
spokesperson.
Decisional Roles
Decisional roles require managers to plan strategy and utilize
resources. There are four decision roles: entrepreneur,
disturbance handler, resource allocator, and negotiator.
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MANAGERIAL ROLES (cont.)

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MANAGERIAL ROLES (cont.)

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ORGANIZATIONAL STRUCTURE

Organizational structure is the organizations

formal framework by which tasks and jobs are

divided, grouped and coordinated.

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Tall and Flat Organizations

Flat Organizational Structure

characteristic of decentralized companies with
relatively few layers of management

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Tall and Flat Organizations

(cont.)

Tall
Organizational
Structure
characteristic of
centralized
companies with
multiple layers of
management

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Span of Control

The distribution of authority in an

organization also affects the number of people

who work for any individual manager.
Span of Control
number of people supervised by one manager

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FUNCTIONAL STRUCTURE

In a functional structure, work activities are

grouped according to functions.

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PRODUCT STRUCTURE

Product structures group all activities and

functions needed to produce and market a

particular product/service under one unit/
department.

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GEOGRAPHICAL STRUCTURE

In a geographical structure, units are divided

according to location or geographical area.

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CUSTOMER STRUCTURE

In a customer structure, units are divided

according to the type of customers an
organization has.

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MATRIX STRUCTURE

A matrix structure is a two-dimensional reporting

structure that simultaneously groups people and
resources by function and by project.

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MOTIVATING EMPLOYEES

Motivation is the driving force that is capable of

bringing out the best in people.

A highly motivated person always strive to work

harder than an unmotivated person.

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HIERARCHY OF NEEDS THEORY

According to Maslow, there are five categories of needs that
people seek to satisfy:

Physiological needs
Physiological needs are the most basic human needs such as
food, shelter, clothing and water.

Safety needs
These are the basic needs for a safety and security.

Belongingness needs
Relate to the desire for social interaction, relationships and
friendship with others.

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HIERARCHY OF NEEDS THEORY

(cont.)
Esteem needs
Relate to the desire to feel
good about oneself and
receive recognition from
others.
Self-actualization needs
Relate to the desire for
psychological
development and growth
to realize ones full
potential as a human
being.
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THEORY X AND THEORY Y

Theory X is a negative view that assumes

employees are inherently lazy and relatively lack

ambitions at work.
Theory Y is a positive view that assumes employees
are ambitious, self-motivated and willing to accept
greater responsibilities.

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MOTIVATORHYGIENE THEORY
Motivating factors
Factors that are related to the nature of the work itself
(autonomy, responsibility, personal growth, appreciation
and recognition).
Motivator factors are sources of job satisfaction.
Hygiene factors
Factors relating to the context of the job.
When hygiene needs are not met, employees become
dissatisfied.
Satisfying hygiene needs will lead to no dissatisfaction,
but will not necessarily make employees satisfied.
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MOTIVATORHYGIENE THEORY
(cont.)

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EXPECTANCY THEORY
1. Expectancy
The degree of expectation that exerting an amount of
effort will lead to certain performance.
2. Instrumentality
The degree to which an individual believes that
performance will lead to attaining desired outcomes.
3. Valence
The attractiveness of outcomes as the result of effort
and performance.
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EXPECTANCY THEORY (cont.)

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Questions
1) Hewlett-Packard decides to move toward a more

centralized structure. This is an example of which

function in the management process?
A) planning
B) leading
C) organizing
D) controlling
E) monitoring
Answer: C

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Questions

2) Comparing actual performance against standards

is an example of which function of the management

process?
A) planning
B) organizing
C) leading
D) controlling
E) strategizing
Answer: D

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Questions
3) Steve motivates employees by rewarding them with

additional vacation when standards are achieved. This is an

example of which function in the management process?
A) leading
B) planning
C) organizing
D) marketing
E) strategizing
Answer: A

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Questions

4) Which type of business constituent has titles

such as President and CEO?

A) first-line managers
B) top managers
C) middle managers
D) power brokers
E) stockholders
Answer: B

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Questions
5) Which level of management sets general policies,

formulates strategies, approves all significant decisions, and

represents the company in dealings with other firms and with
government bodies?
A) operations managers
B) production managers
C) top managers
D) middle managers
E) first-line managers
Answer: C

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Questions

6) Titles such as plant manager, operations manager,

and division manager designate which level of

management?
A) first-line managers
B) middle managers
C) top managers
D) supervisors
E) technology managers
Answer: B

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Questions

7) The titles supervisor, office manager, and group

leader are examples of which level of management?

A) top management
B) middle management
C) first-line management
D) operations management
E) human resource management
Answer: C

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Questions

8) Which of the following are responsible for

production and quality control?

A) information managers
B) human resource managers
C) first-line managers
D) operations managers
E) marketing managers
Answer: D

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Questions

9) Camille Graham is a manager who works well

with people and makes them feel excited about their

work. What type of skills is she illustrating?
A) human relations skills
B) technical skills
C) accounting skills
D) conceptual skills
E) marketing skills
Answer: A

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Questions

10) Which of the following managers depend

most on conceptual skills?

A) first-line managers
B) top managers
C) middle managers
D) marketing managers
E) financial managers
Answer: B

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Questions
11) Doreen Madison has been tracking product sales for McCoy

Industries. She notices that sales of surgical supplies have fallen

off in the past six months and she is considering strategies to
reverse this trend. This is an example of what function of the
management process?
A) planning
B) organizing
C) leading
D) controlling
E) budgeting
Answer: D

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Questio n

12) Determining how people performing certain

tasks can best be grouped together is called what?

A) departmentalization
B) specialization
C) controlling
D) leadership
E) directing
Answer: A

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Questions

13) What type of departmentalization does Kraft

Foods use by having separate divisions for different

types of foods?
A) customer
B) functional
C) geographic
D) product
E) brand
Answer: D

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Questions

14) In tall organizations, which feature describes

the span of control?

A) short
B) tall
C) wide
D) narrow
E) vertical
Answer: D

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Questions

15) Silver Designs is a high-end clothing manufacturer.

They have three divisions producing clothes for men,

women, and teens. What is this an example of?
A) functional departmentalization
B) process departmentalization
C) customer departmentalization
D) product departmentalization
E) geographic departmentalization
Answer: C

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Questions

16) At Ace Products, three vice presidents report to the

CEO, including the VP for Finance, the VP for

Marketing, and the VP for Operations. What type of
structure does Ace Products have?
A) divisional
B) matrix
C) regional
D) functional
E) international
Answer: D

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Questions

48) According to Maslow's model, a set of needs will

be a motivator until which of the following occurs?

A) The needs are satisfied.
B) New needs are identified.
C) The person becomes self-motivated.
D) A supervisor changes the work.
E) The needs are replaced by hygiene factors.
Answer: A

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Questions
58) Which of the following helps explain why some people do

not work as hard as they can when their salaries are based
purely on seniority?
A) two-factor theory
B) Maslow's hierarchy of human needs
C) scientific management
D) expectancy theory
E) Theory X and Theory Y
Answer: D

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