Introduction to management and organization - Management - Chapter 1

Introduction to management and organization




  • Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. .

Managerial Levels

  1. Top Managers: managers at or near the top level of the organization who are who are responsible for making organizational-wide decisions and establish the plans and goals that affect the entire organization. (Referred to as: President, executive vice president, managing director, chief operating officer, chief executive officer or chair of the board)
  2. Middle Managers: Managers between the first line and the top level of the organization. These managers manage the work of the first line managers. (Referred to as: regional manager, project leader, plant manager or division manager)
  3. First line Manager: Managers at the lowest level of the organization who manage the work of non managerial employees who are directly or indirectly involved with the production or creation of the organizations products. (Referred to as, supervisors, shift mangers, district mangers, department managers or office managers.)


Efficiency and effectiveness

                Efficiency: Getting the most output for the least amount of inputs.

                Effectiveness: Completing activities so that organizational goals are achieved.

Note:  Management expert Peter Druker explains efficiency and effectiveness as “doing things right”, and “doing the right thing” respectively.

Management Objectives

                Management Functions:  Management perform certain activities or duties as they efficiently and effectively coordinate the work of others. These activities and duties consist of planning leading organizing and controlling and are implemented in order to accomplish the organizations goals.

  1. Planning: (Set goals and formulate plans) A management function that involves defining goals establishing a strategy for achieving those goals, and developing plans to integrate and coordinate activities. This is typically done by the CEO or senior management teams of the organization.
  2. Organizing: (determine structural arrangements) Is a management function that involves determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom (establishes authority relationships) and where decisions are to be made.
  3. Leading: (Training and motivation) A management function that involves motivating subordinates, directing the work of individuals or teams, selecting the most effective communication channels, and resolving employee behaviour issues.
  4. Controlling: (evaluation of performance objectives) A management function that involves monitoring actual performance, comparing actual performance to standard, and taking corrective action when necessary.

Management Roles

                Management roles: specific categories of management behavior that include interpersonal, informal and decisional.

  1. Interpersonal: Is a management role that involves working with people or performing duties that are ceremonial and symbolic in nature. Interpersonal duties include being a figure head, leader and liaison.
  2. Informal: management roles that involve receiving, collecting and disseminating information.
  3. Decisional: Management roles that involve making significant choices that affect the organization. Decisional roles include the roles of entrepreneur, disturbance handler, resource allocator, and negotiator.
  4. Technical skills: Knowledge of and expertise in a particular field. These skills are more important for lower level managers because these managers are directly involved with the employees doing the work.
  5. Human Skills: The ability to work well with other people both individually and in a group.
  6. Conceptual Skills: The mental ability to analyse and generate ideas about abstract and complex situations. These skills help management see the organization as a whole, understand the relationship among various subunits, and visualise how the organization fits into its broader environment. Furthermore, these skills are most important at the top management level.

Management Skills

The Specific environment

The specific Environment: Includes those external forces that have a direct impact on manager’s decisions, and is he part of the external environment that is directly relevant to the achievement of an organization, the main components being customers, suppliers, competitors and public pressure groups.

Types of organizations

                Large organizations in the private sector are often publicly owned.

  • Private sector: The part of the company that is run by organizations that are free from direct government control. Organizations in these sectors operate to make a profit.
  • Publicly held organizations: is a company whose shares are available on the stock exchange for public trading by brokers/ dealers. Managers of such companies report to a board of directors that is responsible to shareholders.
  • Privately held: Whose Shares are not available on the on the stock exchange they are privately held.  These various sized companies can be individually owned, family owned, or owned by some group of individuals.
  • Non Profit Sector: The part of the economy that is run by organizations that operates for the purpose other than making a profit. Emphasis is on providing charity or services rather than on making a profit.
  • Nongovernmental organization (NGO): A nongovernmental organization that emphasizes on humanitarian issues, development, and humanitarian sustainability.

Managers may also work in the public sector as civil servants for the local, provincial or federal governments.

  • Public sector: The part of the economy that is directly controlled by government.
  • Civil servants: people who work in a local, provincial, or federal government department.


  • Crown corporations: Commercial companies owned by the government but independently managed. These companies are structured like private sector corporations, they have a board of directors CEO’s, and so forth, but are owned by the government rather than shareholders.  Employees in such corporations are not civil servants, and managers in crown corporations are more independent than the senior bureaucrats who manage government departments. 
StudyUp Author: James Bagshaw
Business Administration, Accounting and Management Technology
Major: Business Administration

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