MGM101 Chapter 1-Management
Management: The art of getting things done through people.
The Functions of Management:
1. Planning: A formal process whereby managers choose goals, identify actions to attain those
goals, allocate responsibility for implementing actions to specific individuals or units, measure
the success of actions by comparing actual results against the goals, and revise plans accordingly.
2. Strategizing: The process of thinking through on a continual basis what strategies an
organization should pursue to attain its goals.
3. Organizing: The process of deciding who within an organization will perform what tasks,
where decisions will be made, who reports to whom, and how different parts of the organization
will coordinate their activities to pursue a common goal.
4. Controlling: The process of monitoring performance against goals, intervening when goals are
not met, and taking corrective action.
Incentive: A factor, monetary or nonmonetary, that motivates individuals to pursue a particular
course of action.
Leading: The process of motivating, influencing, and directing others in the organization to work
productively in pursuit of organization goals.
developing employees: The task of hiring, training, mentoring, and rewarding employees in an
organization, including other managers
human capital: The knowledge, skills, and capabilities embedded in individuals.
Types of managers:
1. general managers: Managers responsible for the overall performance of an organization or one
of its major self-contained subunits or divisions.
2. functional managers: Managers responsible for leading a particular function or a subunit
within a function.
3. frontline managers: Managers who manage employees who are themselves not managers.
Managerial roles: Specific behaviours associated with the task of management.
1. Interpersonal roles are roles that involve interacting with other people inside and outside the
2. Informational roles are concerned with collecting, processing, and disseminating information.
3. Decisional roles: The information collected through monitoring is directed toward dis-
covering problems or opportunities, weighing options, making decisions, and ensuring that those
decisions are put into action
Competencies: A manager’s skills, values, and motivational preferences. Manager skills:
1. Conceptual skills: The ability to see the big picture.
2. Technical skills: Skills that include mastery of specific equipment or following technical
3. Human skills: Skills that managers need, including the abilities to communicate, persuade,
manage conflict, motivate, coach, negotiate, and lead.
Values: Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in
a variety of situations.
Enacted values: Values that actually guide behaviour.
Espoused values: What people say is important to them.
Shared values: Values held in common by several people.
Ethical values: Values that society expects people to follow because they distinguish right from
wrong in that society.
1. Desire to compete for management jobs
2. Desire to exercise power
-Personalized power orientation: Seeking power for personal gain.
-Socialized power orientation: Accumulating power to achieve social or organizational
3. Desire to be distinct or different
4. Desire to take action
Stakeholder: An individual, institution, or community that has a stake in the operations of an
organization and in how it does business.
MGM101 Chapter 2- The evolution of Management
Job specialization: The process by which a division of labour occurs as different employees
specialize in different tasks over time.
Scientific management: The systematic study of relationships between people and tasks for the
purpose of redesigning the work process to increase efficiency.
Administrative management: The study of how to create an organizational structure that leads to
high efficiency and effectiveness. Bureaucracy: A formal system of organization and administration designed to ensure efficiency
Authority: The power to hold people accountable for their actions and to make decisions
concerning the use of organizational resources.
Rules: Formal written instructions that specify actions to be taken under different circumstances
to achieve specific goals.
standard operating procedures (SOPs): Specific sets of written instructions about how to perform
a certain aspect of a task.
Norms: Unwritten rules and informal codes of conduct that prescribe how people should act in
Behavioural management: The study of how managers should behave in order to motivate
employees and encourage them to perform at high levels and be committed to achieving
Informal organization: The system of behavioural rules and norms that emerge in a group.
Organizational behaviour: The study of the factors that have an impact on how individuals and
groups respond to and act in organizations.
Theory X: Negative assumptions about employees that lead to the conclusion that a manager’s
task is to supervise them closely and control their behaviour.
Theory Y: Positive assumptions about employees that lead to the conclusion that a manager’s
task is to create a work setting that encourages commitment to organizational goals and provides
opportunities for imagination, initiative, and self-direction.
Management science theory: An approach to management that uses rigorous quantitative
techniques to help managers make full use of organizational resources.
• Quantitative management uses mathematical techniques—such as linear and nonlinear
programming, modelling, simulation, queuing theory, and chaos theory—to help managers
decide, for example, how much inventory to hold at different times of the year, where to build a
new factory, and how best to invest an organization’s financial capital.
• Operations management (or operations research) provides managers with a set of techniques
that they can use to analyze any aspect of an organization’s production system to increase
• Total quality management (TQM) focuses on analyzing an organization’s input, conversion,
and output activities to increase product quality.19
• Management information systems (MIS) help managers design information sys- tems that
provide information about events occurring inside the organization as well as in its external
environment—information that is vital for effective decision making. organizational environment The set of forces and conditions that operate beyond an
organization’s boundaries but affect a manager’s ability to acquire and use resources.
Open system :A system that takes in resources from its external environment and converts them
into goods and services that are then sent back to that environment for purchase by customers.
Closed system: A system that is self-contained and thus not affected by changes that occur in its
Entropy: The tendency of a system to dissolve and disintegrate because it loses the ability to
Synergy: Performance gains that result when individuals and departments coordinate their
Contingency theory: The idea that managers’ choice of organizational structures and control
systems depends on—is contingent on—characteristics of the external environment in which the
MGM101 Chapter 3- What is business
Commercial Endeavours refers to the markets the organization serves, the products and services
it offers, and the needs it professes to meet in the marketplace.
Employee Interaction refers to the value-creating skills an organization’s employees bring to the
marketplace. The success of many businesses lies with the specialized skills that exist within its
Organizational Efficiency and Structure is a reflection of the complexities of the business
activities that circulate within an organization.
Business refers to the mission- focused activities aimed at iden- tifying the needs of a particular
market or markets, and the development of a solution to such needs through the acquisition and
transformation of resources into goods and services that can be delivered to the marketplace at a
Assets refers to the infrastruc- ture and resource base of the organization.
Labour refers to the human resource requirements of the business. Capital refers to the money needed by an organization to support asset-based expendi- tures,
meet operating cash requirements, and invest in the development of new products and/or services
which the organization desires to introduce into the marketplace.
Managerial Acumen refers to the foresight, drive, knowledge, ability, decision-making compe-
tency, and ingenuity of the organization’s key individuals—its owners or top-l