Welcome to

Introduction to Management
(MGMT 1051)
 This session……
• What is Management?
• Why it is important?
• What are managerial functions?
• What are the level and types of Managers?
• What different roles and skills managers possess?
• Is management universal?
• Is Management Art, Science, or Profession?

HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA) 2

Instructor: Yonatan M. (MBA)
Learning Objectives
To introduce the concept and definition of management.

Discuss & appreciate the significance of Management.

Discuss the functions of management.

Explain the roles managers are expected to play.

Discuss managerial skills and their relative importance at different

levels of management

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Instructor: Yonatan M. (MBA)
 WHAT IS AN ORGANIZATION?
• An Organization
– A group of individuals who work together toward common
goals.
• What do all organizations have in common?
– The organizations can be successful only when the efforts of
various individuals in the groups are integrated into team
work (coordinated).
– The central agency which performs this task is known as
management (same role as brain in human body).
The famous management guru Peter Drucker said “There are no
underdeveloped countries as such but under managed only”

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Instructor: Yonatan M. (MBA)
 1.1 What is Management?
• The Classic Definition
– The art of getting things done through people. /Mary Parker
Follett/
Two weaknesses: ART & doesn’t include Mgmt. functions
• A Broader and better definition
– Management is a process consisting of planning, organizing,
actuating & controlling performance to determine & accomplish
the objectives by the use of people and resources.
/George R Terry/

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Instructor: Yonatan M. (MBA)
Characteristics of Management
 Goal Oriented

 Decision Making

 Universal

 A Continuous Process

 Working with and through people

 Multi – Disciplinary

 Not Absolute Principles

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Instructor: Yonatan M. (MBA)
 Components
• Management is a process: A process is defined as systematic
method of handling activities. “Well/Miss Managed”
• Management is a discipline: Discipline refers to the field of
study having well defined concepts and principles.
Accumulated body of knowledge that can be learnt & applied.
• Management is a human activity: If you say that “the
restaurant has an entirely new management” or “He is the
best manager I have worked for”, you are referring to the
people who guide, direct and thus manage organizations.
• Management is a career: Today management is developed as
a career focused on specializations.

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Instructor: Yonatan M. (MBA)
 Measuring managerial performance
It’s a process of coordinating work activities so that they are
completed efficiently and effectively with and through other
people.
Effectiveness
– Achieved when the organization pursues appropriate goals.
– This means “doing the right things.”
Efficiency
– Achieved by using the fewest inputs (e.g., people and
money) to generate a given output.
– This means “doing things right.”
• The end result of effective and efficient management is
organizational success.

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Instructor: Yonatan M. (MBA)
HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA) 9
Instructor: Yonatan M. (MBA)
 1.2 IMPORTANCE OF MANAGEMENT
• To meet the challenges & complexities of modern business.
• It assures efficiency (utilizing available resources).
• It creates teamwork & coordination among employees.
• Directs & controls organizations to achieve the desired goal
• It provides stability.
• It creates an environment of new ideas, vision, &
imagination for better and greater performance.
• It serves as a guide in tackling business problems.
• Is a tool of personality development of people as it raises
efficiency and productivity
• Is an agent of change & economic development.

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Instructor: Yonatan M. (MBA)
WHAT DO MANAGERS DO?

Three categorization schemes:

Management Functions

Management Roles

Management Skills

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Instructor: Yonatan M. (MBA)
1.3 MANAGEMENT FUNCTIONS

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Instructor: Yonatan M. (MBA)
 Planning And Organizing
• Planning
– Setting goals and defining the actions necessary to
achieve those goals.
– It covers all levels ranging from top management to
middle management group.
• Organizing
– The process of determining the tasks to be done, who
will do them, and how those tasks will be managed
and coordinated.
– Organizing is important in ensuring information,
resources and task flow logically and efficiently
through the organization.

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Instructor: Yonatan M. (MBA)
 • Staffing

- Involves selecting and placing the right person

at the right position.
- Includes identifying the gap between
manpower required and available.
- Identifying the sources from where people will
be selected, selecting people, training them,
fixing the financial compensation and
appraising them periodically.

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Instructor: Yonatan M. (MBA)
 Leading
• Leadership/Directing
– The capacity to communicate, direct and motivate
the members of work groups toward the
accomplishment of organizational goals.
• Leadership Skills:
– Understanding individual/group behavior
dynamics
– Having the ability to motivate employees
– Being an effective communicator
– Being able to envision future and share that vision

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Instructor: Yonatan M. (MBA)
 Controlling
• Monitoring the performance of the
organization and its progress in implementing
strategic and operational plans.
• It includes:
– Establish standards of performance
– Measure current/actual performance
– Compare it against the established standard
– Taking corrective action
– Ensuring that the organization is moving toward the
achievement of its goals.

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Instructor: Yonatan M. (MBA)
1.4 MANAGERIAL LEVELS
(The Management Hierarchy)

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HU, Department of Management, 2021 Compiled By: Habtamu M.
(MBA) Instructor: Yonatan M. (MBA)
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Habtamu M. (MBA) Instructor: Yonatan M. (MBA)
• First line managers
Eg. production supervisor. The objective is to ensure that
the products and services of their organizations are delivered
to customers on a day-to day basis.
 Plan daily and weekly activities and accomplish them
based on monthly, quarterly and annual plan.
 Assigning employees to specific jobs
 Issue instructions at the workplace
 Follow up, motivate and evaluate workers
 Send reports to their supervisors
 Keep a watch on workers performance
 Evaluate and make close contact with workers

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
Middle managers (linking groups)
Eg. Department head. They perform as a linkages
between top managers and first line managers.
Acting as an intermediary between top and operational
level of management.
Translating long term plans in to medium range plans.
Developing specific targets (in their area of
responsibility).
Develop specific schedule (to guide action and facilitate
control)
Coordinate inputs, productivity and outputs of operating
levels of management
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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
Top level managers (an eye on the outside)
eg. CEO, CFO. They provide strategic direction for the organization.
Have the ability to think, analyze causes, effects and consequences.
•Create organization’s goals, overall strategies and operating policies.
•Officially represent the organization to the external environment/
parties by meeting with government officials, executives of other
organizations, and so forth.
•Providing effective organizational structure that insures integration.
•Providing overall leadership and direction.
•Making overall control of the organization.
•Analyzing changes in the external environment and respond to it.
•Make Strategic decisions….

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 1.5 MANAGERIAL ROLES
Role is a specific action or behaviour expected of and
exhibited by a manager in a particular situation.
•The work of Henry Mintzberg is widely used to
explain the roles that managers typically perform.

There are three categories of roles that have been

found:
1.Interpersonal roles
2.Informational roles
3.Decisional roles.

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
Figure 1.2 Mintzberg’s Managerial Roles (Managerial roles)

HU, Department of Management, 2021 24 M.

Compiled By: Habtamu M. (MBA) Instructor: Yonatan
(MBA)
 Mintzberg’s Managerial Roles

• Interpersonal Roles

– The manager’s responsibility for managing relationships

with organizational members and other constituents:

1. Figurehead role: represent the organization as the

ceremonial & symbolic w/c is important for the image and
success of the org., e.g. attend social event).

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 Contd…
2. Leadership role (they work with and through their
employees to ensure that the organization’s goal are
met).

3. Liaison role: interacting/r/ship outside the areas of

command w/c helps them to seek support (they
coordinate the activities between individuals and work
groups within the organization and develop favorable
relationship outside organization, e.g social
responsibility)
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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 Mintzberg’s Managerial Roles (cont’d)

 Informational Roles

– The manager’s responsibility for gathering and

disseminating information to the stakeholders of the
organization (communication center and source).

1. Monitor role: (managers continually scan the internal and

external environments/various sources for valuable/useful
information – opportunities and threats)

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 Contd…
2. Disseminator role: (managers share and distribute
relevant information so that the employees can
perform their work)

3. Spokesperson role: Focuses on external

communication (managers must often communicate
information to individual outside their units and their
organization).

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 Mintzberg’s Managerial Roles (cont’d)
• Decisional Roles
– The manager’s responsibility for processing information
and reaching conclusions/making decisions/choices:
1. Entrepreneur (managers initiates/design change that
capitalizes on opportunities for the improvement/betterment
of the org. e.g. initiate new project, launch a survey, test new
market or enter new business)
2. Disturbance handler (they must cope with conflict and handle
disturbances)

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 Contd…

3. Resource allocator (managers determine which projects will

receive organizational resources). It is both protecting and
using organizations asset, materials, HR….

4. Negotiator (managers spend a good portion of their time

negotiating with employees, suppliers and others.

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
 1.6 MANAGEMENT SKILLS
• Technical Skills
– The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.
• Human Skills
– The ability to work effectively with one’s own work
group as well as others within the organization.
• Conceptual Skills
– The ability to process information about the
internal/external environment of the organization
and determine its implications.

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
Figure 1.4 Skills Needed at Different Levels of Management

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
• Technical skills tend to be most important for first
line managers.
• Human skills are most important for middle
managers because these managers must coordinate
the efforts of members of one’s work group as well
as coordinate with other work group within the
organization.
• The top level managers need to have strong
conceptual skills if they are to effectively accomplish
their jobs.

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)
UNIVERSALITY OF MANAGEMENT

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Instructor: Yonatan M. (MBA)
• Is Management an art, Science, or profession?
Science may be defined as a systematized knowledge
derived from observation, study, and experimentation
carried on in order to determine the nature and
principles of the subject under study.
Features of Science: Universally acceptance principles,
Experimentation & Observation, Cause & Effect Relationship, Test of
Validity & Predictability
Thus, It has a structured body of knowledge with its own
distinct concepts and principles that are developed with
reference to the general truths underlying the
management practice. But not exact due to human
element.
Management is an art. It is knowhow, it is personalised
application of knowledge.
Features of Art: Practical Knowledge, Personal skill, Creativity,
Perfection through practice. Decisions made based on instinct,
personal insight, intuition and experience.
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Instructor: Yonatan M. (MBA)
Thank you for your attention!!

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HU, Department of Management, 2021 Compiled By: Habtamu M. (MBA)
Instructor: Yonatan M. (MBA)