What Is Management?
• management - the process of achieving effectively and efficiently
organizational goals through people and other resources.
• Managers can understand technology, adapt quickly to change, can skillfully
motivate employees and realize the importance of satisfying customers.
• Manager - the person responsible for supervising resources to achieve goals.
Measuring Managerial Performance:
• efficiency - the amount of resources incurred to produce goods and services
(doing things right).
• effectiveness - how well the organization is doing in meeting its goals (doing
the right things)
Levels Of Management
• Top Management
◦ These people are in the head office where they deal with finance,
consumer affairs, real estate, information technology, sales and
◦ They make long-range plans for their organization such as introducing
new products, purchasing companies or even enter a new
◦ Examples: Chief Executive Officer, Chief Financial Officer, Executive
vice-president Premier, Mayor.
• Middle Management
◦ Middle managers focus their attention on specific operations, products
or customer groups. They develop detailed plans and procedures to
carry out the firm's strategic plans.
◦ They focus on the products to be sold and on the customers who will
buy the products and lead to the profit growth the CEOs expect.
◦ They mainly are used to day-to-day operations unlike CEOS where they
are able to come up with new ways to increase sales or solve
companies problems. ◦ Examples: General Manager, Plant Manager, Branch Manager, Division
Head, Director, Dean and etc.
• Supervisory Management (First-Line)
◦ These managers assign specific jobs to nonmanagerial employees and
assess their performance.
◦ They work directly with the employees who produce and sell the firm's
goods and services.
◦ They carry out middle managers' plans by motivating workers to
accomplish daily, weekly and monthly goals.
◦ Examples: Supervisors, section chiefs, team leaders, department
chairperson, program manager.
Skills Needed for Managerial Success
◦ These skills are required to understand how to use the equipment, tools
and knowledge for a specific department.
◦ They are the most highly important for first-line managers. But, most
managers start out as technical experts.
◦ Each high-level management is likely to have technical knowledge in
one specific area.
◦ Being able to communicate with, motivate and lead employees in order
to complete assigned duties are needed.
◦ One must be able to interact with people inside and outside the
◦ They must be able to know how to communicate through all medias of
messaging such as e-mail, cellphones, pagers, faxes and text
◦ Conceptual skills allow a manager to see the organization as one piece
and to understand how each part of the company interacts with
other parts. ◦ The managers need to acquire, analyze and interpret information.
▪ They also sometimes have to use the information to develop
long-range plans for the company.
• Henri Fayol was the first to describe the 4 managerial functions
◦ used to select goals and a course of action:
▪ 5 steps:
▪ establish goals
▪ Is there a gap?
▪ develop plan
▪ implement plan
◦ the process of looking forward to future events and conditions and
deciding on the courses of action for achieving organizational
◦ Effective planning allows the ability to focus the company's vision, avoid
costly mistakes and to take procession of opportunities.
◦ All plans need to be flexible and responsive to changes in the business
◦ Planning for the future is important because global competition is
growing, technology is expanding and firms bring new innovations
to market faster.
▪ example: planning for succession for CEO and top-level
◦ Planning ahead will allow companies to keep their title in the
◦ the process of blending human and material resources through a formal
structure of tasks and authority: arranging work, dividing tasks
among employees, and coordinating them to ensure plans are carried out and goals are met.
◦ Involves dividing work in manageable units that make sense.
◦ Organization would allow the companies to run more efficiently, cost-
effectively or sustainably.
◦ Creates organizational structure
▪ a formal system of relationships.
▪ Example: functional vs geographic
◦ Managers articulate a vision/strategy of organization to guide and
motivate employees to accomplish organizational goals.
◦ Must use: power, persuasion, communication and motivation.
◦ Tasks include:
▪ setting up schedules
▪ assigning tasks
▪ monitoring progress
◦ The result:
▪ Employees work in harmony.
▪ Employees perform at a high level.
◦ Example: A manager wants to reduce the water usage. An manager
would assign someone to install water-saving sinks, ask employees
to bring their own water to work and direct the plumbers to reduce
the water used to flush the toilet.
◦ Listening to employees also allow the managers to be able to easily
control the employees and make them feel happier. Also, they can
bring the firm into the right direction.
◦ the function of assessing an organization's performance against it's
◦ evaluates how organization is doing in achieving goals.
◦ essential to assess outcomes ◦ Four basic steps of controlling:
▪ setting performance standards
▪ monitoring actual performance
▪ comparing actual performance with the standards
▪ making corrections if needed.
◦ Also allows managers to measure themselves in other 3 areas of
directing, organizing and planning.
Setting a Vision and Ethical Standards for the FIrm
• Vision - the ability to perceive marketplace needs and what an organization
must do to satisfy them.
• All business start with a vision perceived by the founder.
• The ethical standards in the vision of the company are important to a firm's
long-term relationships with its customers, suppliers and the general
◦ Sometimes ethical standards are made to comply with industry or
federal regulations, such as safety or quality standards.
◦ With recent unethical actions taken, many firms now take a closer look
to the big compensation packages received by the CEOs and top
executives due to the public demands.
◦ Salaries, bonuses and other benefits are now being reassessed.
• The ethical tone can lead to good financial and non-financal rewards.
◦ It encourages employees to be more productive and stable workforce.
◦ Sometimes ethical choices, can lead to reduce income and job losses.
▪ Ex. Google left China because the government was searching for
information on their people. They lost all the potential
revenue and were the only ones that stood on the issue.
Types Of Planning
◦ Known as the process of deciding on the primary objectives of an
organization and then taking action and setting aside resources to
achieve those objectives. ◦ Mainly done by top executives in the company.
◦ Tactical planning involves carrying out the activities set out in the
◦ Tactical Plans guide the current and short-term activities required to
carry out the overall strategies.
◦ Example. Staples develops EcoEasy and Sustainable Earth product
lines to reach the overall strategy of being more environmentally
◦ Sets the detailed standards that help to carry out tactical plans such as
choosing specific work targets and assigning employees and teams
to carry out plans.
◦ Operational planning develops and carries out tactics in a specific
◦ Planning cannot foresee every possibility.
◦ Contingency planning allows an firm to resume operations as quickly
and as smoothly as possible after an chiris. And allows them to
easily openly tell the public what happened.
◦ Contingency planning consist of two components:
▪ Continuing the Business
▪ Communicating to the public.
◦ Business contain contingency plans for events such as:
▪ a loss of data, breaches of security, product failures and natural
◦ Example Plan: When aircraft employees go on strike, make partnerships
with other companies to handle flights and have on-ground staff
ready to take their positions.
The Planning at Different Organization Levels
Primary Type Of Managerial Level Examples Planning
Strategic Planning Top management Organizational objectives, fundamental strategies, long-term plans
Tactical Planning Middle Management Quarterly and semi-annual plans, departmental policies and
Operational Planning Supervisory Management