CHAPTER 1

CHAPTER ONE

CHAPTER ONE
MULTAZIMAH BINTI MAT DAUD

PRINCIPLES OF MANAGEMENT

Publisher

Politeknik Sultan Abdul Halim Mu'adzam Shah
Bandar Darulaman
06000 Jitra, Kedah
Tel. : 049146100
Faks : 049174232

e ISBN
978-967-0830-80-3

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PRINCIPLES OF MANAGEMENT

Preface
Principles of Management eBook Chapter One is written based
on textbook Principles Of Management Polytechnic series latest
edition publish by Oxford Fajar. This eBook was written to
increase student access to high-quality learning materials,
maintaining the highest standards of academic rigor at little to
no cost.

Appreciation & Reflection
I offer heartfelt thanks to everyone who have helped me in
preparing this eBook. Firstly, I would like to thank my colleague
to give me guidelines on how to prepare the eBook. Secondly,
to my parents and my daughter for the patience, belief and
supporting me towards the end. Lastly, to my dear friend, thanks
for sharing your knowledge and experience.

PRINCIPLES OF MANAGEMENT

Abstract

Effective teaching needs to be implemented so that learning
will be more systematic and able to attract students to learn.
The production of eBook Principles of Management Chapter
One as a teaching aid (ABM) for simple applications is
intended to diversify the delivery methods of teaching and
learning (T&L) process for the course DPB10023 Principles of
Management.

Principles of Management is designed to meet the scope and
sequence requirements of the introductory course on
management. This is a traditional approach to management
using the leading, planning, organizing, and controlling
approach.

Management is a broad business discipline, and the Principles
of Management course covers many management areas such
as human resource management and strategic management,
as well behavioral areas such as motivation. No one individual
can be an expert in all areas of management, so an additional
benefit of this text is that specialists in a variety of areas have
authored individual chapters.

TABLE OF CONTENTS

1 Introduction to Management

1.1 Discuss management in organization
1.1.1 Define management
1.1.2 Identify the importance of management
1.1.3 Describe the levels of management
1.1.4 Describe the management functions
1.1.5 Recognize Mintzberg’s managerial roles
1.1.6 Describe management skills
1.2 Describe Evolution of Management
1.2.1 The Quantitative Approach (1940’s-1950’s)
1.2.2 The Contemporary Approaches (1960’s – present)

2 Past Semester Question

3 Case Study

4 Reference

CHAPTER ONE

INTRODUCTION TO
MANAGEMENT

Learning Outcomes

After reading this chapter, you should be able to answer these
questions:
1.1 Discuss management in organization

1.1.1 Define management
1.1.2 Identify the importance of management
1.1.3 Describe the level of management
1.1.4 Describe the management function
1.1.5 Recognize Mintzberg’s managerial roles
1.1.6 Describe management skills

INTRODUCTION TO
MANAGEMENT

Introduction

• Every organization must have goals and objectives
• Responsible of all manager in managing in order to achieve goals

and achieve

INTRODUCTION TO
MANAGEMENT

Definition of Manager

• Individuals in an organizations who direct the activities of
others
OR

• Individual who are owners, founders or employees in an
organization

• Have a power to make decisions and utilize organizational
resources in the best way

• Employed to influence, lead and train employees in the
organization

INTRODUCTION TO
MANAGEMENT

Definition of Management

Several work activities and function that
must be followed and completed by
managers in orders to achieve
organizational goals.

In other words, management is a process
that plans, organizes, leads and controls the
efforts of employees and other
organizational recourses to achieve various
organizational goals.

Process that is conducted by one or more
individuals to coordinate the work activities
of employees, capital, raw materials and
technology, to achieve results of high
quality. (Ivancevich et al, 1997)

INTRODUCTION TO
MANAGEMENT

Definition of Management

INTRODUCTION TO
MANAGEMENT

Levels of Management

INTRODUCTION TO
MANAGEMENT

Levels of Management

• Top level management
- Highest level in the management
- Responsible for the overall management and

administration in an organization

• Middle line management
- Responsible for the performance of their

subordinates who are first line managers.

• First line managers
- Lowest level
- Operational managers

INTRODUCTION TO
MANAGEMENT

Management Functions

Planning

Defining Organizing
goals,
establishing Determining Leading Controlling
strategy, and what needs to - Monitoring
developing be done, how Directing and activities to
sub plans to it will be done, coordinating ensure they
coordinate and who is to
activities. the work are
do it. activities of an accomplished
organization’s
as planned
people

INTRODUCTION TO
MANAGEMENT

Mintzberg’s Managerial Roles

Three main types:
• Creating interpersonal relationships
• Disseminating information
• Decision making

Category Roles
Interpersonal
Figurehead
informational Leader
Liaison
Decisional
Monitor
Disseminator
Spokesperson

Entrepreneur
Disturbance handler
Resource allocator
Negotiator

INTRODUCTION TO
MANAGEMENT

Management Skills

Technical skills Human skills Conceptual
skills
• Ability and • Ability to
knowledge to motivate, • Managers
use the tools facilitate, thinking, info
and coordinate, processing and
techniques to lead and planning
solve the communicate abilities
problems and solve
conflicts • Top level
• Lower-level managers
manager must • All managers must have this
have this skills must have this skills
skills

THE EVOLUTION OF
MANAGEMENT

THE EVOLUTION OF
MANAGEMENT

The Quantitative Approach (1940’s 1950’s)

The quantitative approach to management involves the use of
quantitative techniques, such as statistics, information models,
and computer simulations, to improve decision making.
This approach produces three theories:-

1. Management Science
Theory

2. Operations Management Theory

3. Present Approach

THE EVOLUTION OF

MANAGEMENT

The Quantitative Approach (1940’s 1950’s)

1. Management Science Theory
• Emerged to treat the problems associated with global warfare.
• Today, this view encourages managers to use mathematics,
statistics, and other quantitative techniques to make
management decisions.
• Managers can use computer models to figure out the best way
to do something — saving both money and time. Managers use
several science applications.
• Mathematical forecasting helps make projections that are useful
in the planning process.
• Inventory modeling helps control inventories by mathematically
establishing how and when to order a product.
• Queuing theory helps allocate service personnel or workstations
to minimize customer waiting and service cost.

THE EVOLUTION OF
MANAGEMENT

The Quantitative Approach (1940’s 1950’s)

2. Operations Management Theory.

• Narrow branch of the quantitative approach to management. It
focuses on managing the process of transforming materials,
labor, and capital into useful goods and/or services.

• The product outputs can be either goods or services; effective
operations management is a concern for both manufacturing and
service organizations. The resource inputs, or factors of
production, include the wide variety of raw materials,
technologies, capital information, and people needed to create
finished products.

THE EVOLUTION OF
MANAGEMENT

The Quantitative Approach (1940’s 1950’s)

2. Operations Management Theory.

• The transformation process, in turn, is the actual set of
operations or activities through which various resources are
utilized to produce finished goods or services of value to
customers or clients.

• Operations management today pays close attention to the
demands of quality, customer service, and competition.

• The process begins with attention to the needs of customers:
What do they want? Where do they want it? When do they want
it? Based on the answers to these questions, managers line up
resources and take any action necessary to meet customer
expectations.

THE EVOLUTION OF
MANAGEMENT

The Contemporary Approach (1960’s to present)

3. Present Approach

a)System Theory

• An organizations have various division related to one another
but have only one common goal.
• A system is simply an assemblage or combination of things or
parts forming a complex whole.
• The system approach has four components:-

The Inputs Transform Output Feedback
ation

process

THE EVOLUTION OF
MANAGEMENT

The Contemporary Approach (1960’s to present)

3. Present Approach

b) Contingency / current theory

• Every action taken by managers must be suitable with the
situation.
• One best way of doing may be useful for repetitive things but
not for managerial problems.
• The contingency theory aims at integrating theory with practice
in systems framework. The behavior of an organization is said to
be contingent on forces of environment.
• Thus, behavior within an organization is contingent on
environment, and if a manager wants to change the behavior of
any part of the organization, he must try to change the situation
influencing it.

MANAGEMENT QUOTE

“ “If you pick the right people and give them the
opportunity to spread their wings—and put
compensation as a carrier behind it—you
almost don’t have to manage them.”

– Jack Welch –

“ “The best executive is the one who has sense
enough to pick good men to do what he wants
done, and self-restraint to keep from meddling
with them while they do it.” –

Theodore Roosevelt

TUTORIAL

CHAPTER 1

Recognizes a well-known figures
in the Malaysian corporate scene

and summarize about their
successful business.

PAST SEMESTER
QUESTION

Inspirational Quotes

"Nothing is impossible. The word itself says,
'I'm possible.'" —Audrey Hepburn
"Striving for success without hard work is
like trying to harvest where you haven’t
planted." —David Bly
"Success is the sum of small efforts, repeated
day in and day out." —Robert Collier
"It’s not that I’m so smart, it’s just that I
stay with problems longer." —Albert
Einstein
"The best way to finish an unpleasant task is
to get started." —Anonymous

CHAPTER 1

June 2019
• According to Henri Fayol, every

organization must be managed according to
FIVE (5) main management functions. List
all of them. (5m)

December 2018
• According to Henri Fayol, management

consists of specific functions that must be
followed by each manager. List FIVE (5) of
the management functions. (5m)

CHAPTER 1

June 2018
Q1 (a) (i) List any FIVE (5) of managerial
roles. (5m)

December 2017
(i) Describe TWO (2) important of
management. (5m)
(ii) List FIVE (5) principles of an effective
control system. (5m)

CHAPTER 1

June 2017
(i) Define management (3m)
(ii) Describe THREE (3) levels of management
with suitable examples. (12m)

December 2016
(a) Explain FIVE (5) management functions
according to Henri Fayol. (15m)

June 2016
Q1 (c) There are many levels in management
that involve in planning process. Draw the
diagram of level in management and describe
about it. (11m)

CASE STUDY
QUESTION

CHAPTER 1

CASE STUDY CHAPTER 1 : MANAGER RESPONSIBILITY

Assume you are a research engineer with Diploma in
Business Administration as your first qualification and
an engineering degree from an overseas university.
You are attached to a petrochemical company in
Malaysia, collaborating with a marketing manager on
a major product modification. You notice that every
memo you receive from her has been copied to
senior management at the main office in Kuala
Lumpur. At every company function, she spends time
talking to the big shots, instead of discussing the
major project modification with you. You are also
aware that sometimes when you are slaving away
over the project, she is playing golf with senior
managers at a well-known golf resort. What is your
evaluation of her behavior?

REFERENCES

Ang Huat Bin (2018). Principles of Management. Oxford Fajar

Bartino, J. (1992). At these shouting matches, no one says a word.
Business Week, 11

Bartol, K., Tein, M., Matthews, G. & Martin, D. (2004). Management:
a Pacific Rim Focus (Enhani Ed.). Australia: McGraw-Hill.

Bass, B.M. (Winter, 1985). Leadership: Good, Better, Best.
Organizational Dynamics, 13. 26-40.

Davis, K. (1972). Human Behaviour at Work. New York: McGraw-Hill

Duncan, R. (1979). What is the right organization structure?
Decision tree analysis provides the answer. Organizational
Dynamics, Winter, 59-80.

Etzioni, A. (1984). Modern Organizations. Englewood Cliffs:
Prentice-Hall

McGregor, D. (1960). The Human Side of Enterprise. New York:
McGraw-Hill. pp. 16-18

Mintzberg, H. (1971). Managerial Work: Analysis from Observation.
Management Science, 18B, 97-110.

Mintzberg, H. (1973). The Nature of Managerial Work. New York:
Harper & Row.

REFERENCES

Mintzberg, H. (1994). Rounding Out the Manager's Job. Sloan
Management Review, 11-26
Nyce, E. H. and Groppa, R. (1983). Electronic mail at MHT.
Management Technology, May, 65-72.
Pace, R. W. (1983). Organizational Communication: Foundations for
Human Resource Development, Englewood Cliffs: Prentice-Hall.
https://www.slideshare.net/Sanzux/principles-of-management-sem-
1-slides
https://www.mindtools.com/pages/article/henri-fayol.htm
https://opentextbc.ca/principlesofmanagementopenstax/chapter/intro
duction-3/

ABOUT THE AUTHOR

MULTAZIMAH BINTI MAT DAUD
POLITEKNIK SULTAN ABDUL HALIM MU’ADZAM SHAH

(POLIMAS)
POLITEKNIK UNGKU OMAR FORMER LECTURER
EXPERIENCE IN TEACHING PINCIPLES OF MANAGEMENT

SINCE 2010
[email protected]

[email protected]