Management Chapter 1: Introduction to Management

Chapter 1: Introduction to Management

• This chapter introduces the fundamental concepts of management.
• Management is the process of administering and coordinating resources to achieve organizational goals efficiently and effectively.

Multinational Companies in Malaysia

• The image displays various logos (AirAsia, BASF, YTL Corporation, Alphabet, ExxonMobil, Sime Darby, axiata, intel, Petronas, Panasonic, Honda, Nestle, Maybank, Tenaga Nasional Berhad) of multinational companies operating in Malaysia.

Learning Objectives

• The learning objectives include: concepts of management, management functions, managerial levels and skills, management performances.

Definition of Management

• Management is the process of administering and coordinating resources to achieve organizational goals, effectively and efficiently.

Organization

• An organization is a group of individuals working together.
• Management structure defines roles and responsibilities for workers and specifies reporting structures.
• Organizational goals are the targets that the organization strives to achieve.

Measuring Managerial Performances

• Performance efficiency is the ability to do the right things. An efficient manager can complete tasks as expected and minimize resource costs (staff and finances).
• Performance effectiveness is the ability to choose the right goals; for example if there is low demand for a particular type of car, efficiency will focus on compact cars.

Four Functions of Management

• Planning: defining goals, establishing strategy, and creating plans.
• Organizing: determining tasks, assigning responsibilities, and establishing reporting structures.
• Leading: motivating subordinates and directing others, selecting effective communication channels, and resolving conflicts.
• Controlling: monitoring activities to ensure plans are fulfilled and correcting any significant deviation.

Managerial Levels

• There are three major levels of management: Top, Middle, and Lower level management.

Skills of Managers

• Technical skills: abilities to use procedures, specialized techniques, and the knowledge of their field.
• Human skills: abilities to interact effectively with team members including the ability to motivate, understand, communicate, and lead.
• Conceptual skills: abilities to mentally grasp the whole organization, including relationships between different aspects.

Mintzberg's Managerial Roles

• Interpersonal roles (Figurehead, Leader, Liaison): These roles involve interactions with others.
• Informational roles (Monitor, Disseminator, Spokesperson): These roles involve gathering, processing, and communicating information.
• Decisional roles (Entrepreneur, Resource Allocator, Disturbance Handler, Negotiator): These roles involve making decisions.

Interpersonal Roles

• Figurehead: represents the organization.
• Leader: responsible for hiring, training, and motivating subordinates.
• Liaison: interacts with people outside the organization (suppliers, customers, competitors).

Informational Roles

• Monitor: seeks and receives internal and external information.
• Disseminator: shares information with employees after filtering.
• Spokesperson: transmits information to people outside the organization.

Decisional Roles

• Entrepreneur: acts and thinks as an innovator.
• Resource Allocator: responsible for allocating resources.
• Disturbance Handler: corrects actions when problems arise.
• Negotiator: represents the organization during negotiations.