01 - DPB10023 PRINCIPLES OF MANAGEMENT CHAPTER 1

DPB10023



PRINCIPLES OF


MANAGEMENT























CHAPTER 1




INTRODUCTION TO


MANAGEMENT

INTRODUCTION TO MANAGEMENT







1.1.1 Define Management




⦿Management is a set of activities designed to


manage certain task in order to achieve

organizational goals and objectives efficiently


and effectively through planning, organizing,


leading and controlling.


⦿ Management as a process involves several work


activities and functions that must be followed


and completed by managers in order to achieve

organizational goals.












N o o r R a h a y u b i n t i M o h d S a l l e h

Definition of Manager










Manager :



❖Most expensive basic resources in most businesses.


❖Defined as individuals who are owners, founders or

employees in an organization.


❖Managers are powerful individuals in an organization as

they possess authority.


❖They have power to make decision and utilize

organizational resources in the best way in order to

achieve organizational goals.



❖Are hired to influence, lead and train employees in an

organization.

1.1.2 Identify The Importance of Management





1. Encourages Initiative


Management encourages initiative. Initiative means to do the right thing

at the right time without being told or influenced by the superior.
The employees should be encouraged to make their own plans and

also to implement these plans. Initiative gives satisfaction to

employees and success to organisation.


2.Encourages Innovation


Management also encourages innovation in the organisation. Innovation
brings new ideas, new technology, new methods, new products, new

services, etc. This makes the organisation more competitive and

efficient.


3. Facilitates growth and expansion


Management makes optimum utilisation of available resources. It
reduces wastage and increase efficiency. It encourages team work

and motivates employees. It also reduces absenteeism and labour

turnover. All this results in growth, expansion and diversification of
the organisation.


Continue………

4. Improves life of workers


Management shares some of its profits with the workers. It

provides the workers with good working environment and

conditions. It also gives the workers many financial and non-

financial incentives. All this improves the quality of life of

the workers.



5. Improves corporate image


If the management is good, then the organisation will produce

good quality goods and services. This will improve the

goodwill and corporate image of the organisation. A good

corporate image brings many added benefits to the

organisation.


6. Motivates employees


Management motivates employees by providing financial and

non-financial incentives. These incentives increase the

willingness and efficiency of the employees. This results in

boosting productivity and profitability of the organisation



Continue………
Noor Rahayu binti Mohd Salleh

7. Optimum use of resources


Management brings together the available resources. It makes


optimum (best) use of these resources. This brings best
results to the organisation.



8. Reduces wastage


Management reduces the wastage of human, material and

financial resources. Wastage is reduced by proper

production planning and control. If wastage is reduced then

productivity will increase.


9. Increases efficiency


Efficiency is the relationship between returns and cost.


Management uses many techniques to increase returns and
to reduce costs. Higher efficiency brings many benefits to


the organisation


► Continue………

10. Improves relations


Management improves relations between individuals, groups, departments

and between levels of management. Better relations lead to better

team work. Better team work brings success to the organisation.


11. Reduces absenteeism and labour turnover


Absenteeism means the employee is absent without permission.



Labour Turnover means the employee leaves the organisation.


Labour absenteeism and turnover increases the cost and causes many

problems in the smooth functioning of the organisation. Management

uses different techniques to reduce absenteeism and labour turnover in

the organisation.


12. Encourages Team Work


Management encourages employees to work as a team. It develops a team


spirit in the organisation. This unity bring success to the organisation.







Noor Rahayu binti Mohd Salleh

1.1.3 Describe the Levels of Management









► Top line managers


















► Middle line managers
















► First line managers

❖ Top Line Managers






✔ Positioned at the highest level in the management

hierarchy.






✔ Responsible for overall management and administration

of the organization.







✔ They develop organizational policies and monitor the

relationship between organization and its environment.






✔ Responsible to establish organizational goals, objective

and operational policies.

❖ Middle Line Managers






✔ are positioned between top-line managers and first-line

manager in the management hierarchy







✔ Fewer layer of middle management enable middle line

managers to have more autonomy and responsibilities.






✔ Able to perform their jobs more efficiently as the level of

bureaucracy reduces.







✔ Responsible for the implementation of policies and

organizational plans by the top line managers.






Continue………

❖ First Line Managers








✔ Positioned at the lowest level of the

management hierarchy.



✔ Known as operational managers. E.g; production


supervisor or clerical supervisors


✔ First line managers are responsible for the duties


of support staff



✔ They located between top line managers and the

non-management staff.



✔ Don’t have power and authority in the


organizations.

1.1.4 Describe the Management Functions







► Planning : process of forming organizational goals and


objectives based on a logical plan.






► Organizing: effort to coordinate activities conducted by


two or individuals in an organization.






► Leading : process of training employees on how to perform


their duties in the organization.






► Controlling: management effort to ensure that the organization


is moving towards achieving its goals based on


developed plans.



1.1.5 Recognize Mintzberg’s Managerial Roles



1.1.6 Describe Management Skills



1.2 Evolution of Management





1.2.1 THE QUANTITATIVE APPROACH (1940’S-1950’S)







► Emphasizes the use of quantitative techniques such as
mathematical methods, statistics and other information tools to

aid decision-making in order to increase organizational
effectiveness.


► Produced Three Theories:


a) Management Science Theory – use of computerized

mathematical models and statistical methods to increase the
effectiveness of a decision-making process.


b) Operations Management Theory – to manage production

activities and the delivery of products and services. Managers
can manage, schedule and plan all aspects related to

production activities by using method such as forecasting and
inventory analysis.


c) Management Information Systems Theory – focuses on the

process of designing and managing information by using
computers.

1.2.2 THE CONTEMPORARY APPROACHES (1960’S-PRESENT)





An innovative approach in current management theory.



► a) System Theory
A system is a set of interrelated and interdependent parts arranged in a

manner that produces a unified whole. The two basic types of systems are

closed and open. Closed systems are not influenced by and do not interact

with their environment. In contrast, open systems are influenced by and do
interact with their environment.




4 major components:




















the information on results and organizational status relative to the environment

THE CONTEMPORARY APPROACHES


(1960’S-PRESENT)










b) Contingency / Situational/ Current Theory



- emphasize that every action taken by a manager

must suit the situation.




- based on the premise that there is no one best way to
manage and that to be effective planning, organizing,
leading and controlling must be tailored to the

particular circumstances faced by an organization.




- stress on the importance of situations.



- universal principles are not suitable for all situations.



The End