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Chapter 1

MGT10001 Chapter Notes - Chapter 1: Henry Mintzberg, Henri Fayol, Middle Management

Course Code
Tim Bednall

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Introduction to management
Successful businesses need good managers – who can plan effectively, organize
resources and tasks, lead and motivate employees, and continuously evaluate
strategies and their success
The approach of management greatly influences the culture of the organization –
policies, uniform and rituals (meetings) can set out values for the organization and
really influence the culture positively
Management important in both profit and not for profit organisations! – allows org
and society to function effectively and proficiently
Need to keep up to date with changing world and workplace, be adaptive and
motivate employees to achieve high performance
Why important?
Great when they can motivate you professionally AND personally – aiming to be a
better person in all aspects of life
3 reasons
Knowledgeable, guides the organisation through uncertain, complex, challenging
times and keeps employees motivated to reach specific goals regardless of changing
environments around them
Control the activities and coordinate them. Make sure things are getting done and in
the right way – if not – need to evaluate and control to keep things on track
Their relationship with employees can keep them loyal and productive. The Gallup
Organisation polled millions of employees and tens of thousands of managers –
found that single variable most important to productivity and loyalty is relationship.
Need to inspire and engage. HAVE A POSITIVE & NEGATIVE EFFECT (depending on
how the manager approaches employees)
Coles – refer to pg 7 – Ian Mcleod who turned the business around
What is an organization?
Organization Deliberate Arrangement of people to
accomplish specific purpose
Every org has a specific purpose, and set of goals (vision and mission statement)
Sets them apart
Made of people – who can work together to ensure the organization can run to
meet objectives
Deliberate structure to ensure work relationships and expectations are clarified so
tasks can be undertaken
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Can be traditional or contemporary structure – old and structured, with more
authority in workplace relationships OR flexible job descriptions, more
communication channels, flatter structure.
Nature of organisations constantly change
Google and IKEA use more flat network based structure rather than hierarchical
structure where people report to others with more power.
People work together in teams.
Contemporary organisations like these rely on flexible work arrangements, employee
work teams, open communication and supplier alliances
Organisations constantly change because the world does – economy, societal, global,
technological (PELTS)
who are managers?
Government departments, hospitals etc
Top level senior, middle and frontline
Used to tell people what to do and how to do it, easy to distinguish.
With flatter structure and increased teamwork, lines are blurred and harder to
distinguish management from non-management as employees have the opportunity
to take on managerial roles – be team leaders, guide specific operations or
departments etc
Definitions used in the past no longer work
Manager Someone who coordinates and oversees
work of others so objectives can be met
Managers can be classified in structured organisations
Pyramid – traditional structure – first line (manage work of non managerial
employees, directly involved in producing products or delivering services), middle
managers (area manager for ex, store manager – between front and top), top
managers (organization wide decisions, strategic planning)
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Front line management Managers at the lowest level or the
organization who manage work of non-
managerial employees who are directly
involved in production or creation of the
organisations products
Middle management Managers between the first line level and
top level who manage the work of first line
Top management Managers at or near the top level of the
organization who are responsible for
making organization wide decisions and
establishing goals and plans that affect
entire org
- flat orgs may have managers that change from time to time depending on group work and
what needs to be done, diff people will take charge
management Process of coordinating and overseeing
activities of others so that tasks can be
completed efficiently and effectively
Efficiency – ‘doing things right’ Measure of productivity looking at the
amount of output compared to input
Effectiveness – ‘doing the right things’ Completing activities so that organizational
goals are attained
- efficiency concerned with means of getting things done
- effectiveness concerned with the ends, or attainment of goals
- related, not mutually exclusive
- will not be effective and meet goals of profit for ex if a lot of resources go into the
production and operations
- if not efficient as possible, can not be effective
- can be efficient but not effective – doing the wrong things well
- need to be effective AND efficient to be competitive
3 diff categorization schemes to explain what they do – functions, roles and skills.
Management functions
French industrialist Henri Fayol 20th century – proposed all managers perform these
Planning Management function that involves setting
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