Department of Management

College of Business and Economics

Addis Ababa University

Introduction to Management

Yohannes Neda
[email protected]
 Chapter One
Fundamentals of
Management
Chapter Objectives Content
At the end of this course you will be able to: ✓ Definition of Management
✓ Define and understand the notion of management and ✓ Managerial Functions an Overview
its functions ✓ Levels of Management
✓ Clarify the significance of management ✓ Managerial Skills
✓ Describe the key managerial skills ✓ Managerial Roles
✓ Explain the types of managers ✓ Is Management an art or a
✓ Discuss the major roles of managers Science?
✓ Differentiate between the science and art of ✓ Universality of Management
management
✓ Appreciate the universality of management
Reflection
 Think of about any organization, to start and run
the organization some amount of money is
needed, some materials, may be few machines and
some men are required, and some processes are
involved. All these are considered the inputs for an
organization that result in output in terms of
products or services.
 However, with same amount of money, raw
materials, machines and men, and following the
same processes, the output may not be same for
two or more organizations.
 WHY DO YOU THINK IS THAT THE CASE?

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Defining Management
– Management is the process of coordinating all resources through the
five major functions of planning, organizing, staffing, directing
/leading and controlling to achieve organizational goals/desired
objectives.
– That is, it is the process of achieving organizational goals through
engaging in the five major functions of planning, organizing, staffing,
directing/leading and controlling.

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 Defining Management
In the above definition there are three key concepts
Coordination of all resources
01

The five managerial functions

02

Objectives
03
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Defining Management
Management is the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, staffing, directing and
controlling organizational resources.

The art of getting things done

through people.

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Defining Management

• The definitions of management also

concerns with:
– Efficiency
• “Doing things right”
– Getting the most output for the
least inputs
– Effectiveness
• “Doing the right things”
– Attaining organizational goals

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Defining Management

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 Managers
Those people who are Those persons in the
responsible for carrying out position of authority
the major activities of who make decisions
management: Planning, to commit (use) their
organizing, staffing, leading resources and the
(directing), and controlling. resources of others
towards the
achievement of
organizational
objectives.
Organization

A group of two or more people

working together in structured
fashion to attain a set of goals.

All organizations are social units

deliberately constructed and
reconstructed to seek specific goals.

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Your Reflection

• Have you ever been a member of

any organization?
• If yes,
✓ What was your role in the
organization?
✓ How do you describe your
relationship with the other
members of the organization?
Functions of Management

• Regardless of the type of firm

and the organizational level, all
managers perform certain basic
functions.

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Functions of Management
• Planning
– making decisions today about future actions
– defining goals and objectives
– deciding what type of activities the company
will engage in
– determining the resources needed to achieve
the organization’s goals & objectives.

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Functions of Management
• Organizing
– Arranging and coordinating activities of individuals and
groups to implement plans
– Grouping jobs into work units
– Marshalling and allocation of resources
– Creating good working conditions

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Functions of Management
• Staffing
– Ensure that suitable people have been appointed for
different positions
– Attracting people to the organization.
– Specifying job responsibilities

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Functions of Management
• Leading
– Directing, motivating, and communication with
employees, individually & in groups.
– Conflict resolution.
• Controlling
– Monitoring performance of people & units.
– Provision of feedback or information about
progress.
– Identification of performance problems & actions to
correct problems.

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Significance of Management
Some of the significances include:
• Helps to achieve goals
• Helps to optimize resource utilization
• Essential for the progress of a society
• Establishes sound organization
• Helps organizations cope with uncertainty

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Levels of Management

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Top-level Managers
Responsible for…

•Setting overall objectives

•Creating a context for change

•Developing attitudes of commitment and ownership in employees

•Creating a positive organizational culture through language and action

•Monitoring their environments

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Middle-level Managers
Responsible for…

Setting objectives consistent with top management goals & planning strategies

Coordinating and linking groups, departments, and divisions

Monitoring and managing the performance of subunits and managers who report to them

Implementing the changes or strategies generated by top managers

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First-line Managers

Responsible for…

Managing the performance of entry-level employees

Teaching entry-level employees how to do their jobs

Making schedules and operating plans based on middle management’s

intermediate-range plans

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Managerial Skills

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Technical Skills

A persons’ knowledge and ability to make

effective use of any process or technique
constitutes his/her technical skills.

For eg: Engineer, accountant, data entry

operator, lawyer, doctor etc.

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Human Skills

An individuals’ ability to
cooperate with other members
of the organization and work
effectively in teams.

For eg: Interpersonal

relationships, solving people’s
problem and acceptance of other
employees.

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Conceptual Skills

Ability of an individual to
analyze complex situations and
to rationally process and
interpret available information.

For eg: Idea generation and

analytical process of
information.

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Managerial Roles

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1. Interpersonal roles

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2. Informational roles

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3. Decisional roles

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Your Reflection

Is management an art or a
science? Why/Why not?
Is Management a Science or an Art?
• Effective management is a blend of both science and art.

• Science of Management
– Assumes that problems can be approached using rational,
logical, objective, and systematic ways.
– Requires the use of technical, diagnostic, and decision-making
skills and techniques to solve problems.

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Is Management a Science or an Art?

• Art of Management

– Decisions are made and problems solved using a blend of

intuition, experience, creativity, instinct, and personal insights.
– Requires the use of conceptual, communication, interpersonal,
and time-management skills to successfully accomplish the tasks
associated with managerial activities.
• The prudent manager is one who knows when his or her practices
are in realm of certainty (science), or creativity (art).

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Universality of Management

• Regardless of title, position, or management level, all managers

do the same job.
• They execute the five managerial functions and work through
and with others to set and achieve organizational goals.
• Managers are the same whether the organization is private or
public, profit making or non-profit making, manufacturing or
service giving, and industrial or small firms.

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Individual Assignment

• Refer books and other sources and

write a three pages summary on the
“Evolution of Management.”
• Guideline
- Font: Times New Roman,
- Font size: Heading 14
Body 12
- Spacing: 1.5
- Submission date April 23, 2021