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1. CHAPTER 1
ELEMENTS OF MANAGEMENT

2. LEARNING OBJECTIVE
1. Definition of management and its
element.
2. History of management – evolution
and management theory
3. Management levels, skills and roles of
manager

3. DEFINITION OF MANAGERS
• Managers are defined as individuals who are
owners, founders or employees in an
organization.
• Managers are powerful individuals in an
organization as they possess authority.
• They have the power to make decisions and
power to utilize organizational resources in
the best way possible in order to achieve
organizational goals and objectives.

4. DEFINITION OF MANAGEMENT
• Certo(1997) – process to accomplish
organizational goals by working with humans
& other organizational resources
• Management Institute of Malaysia (MIM) –
process of completing task through & with
other people

5. DEFINITION OF MANAGEMENT
• A set of activities designed to manage certain
tasks in order to achieve organizational goals
and objectives efficiently & effectively through
4 basic functions of management
FUNCTION OF MANAGEMENT?????

6. LEVELS OF MANAGEMENT
Top Line
Management
Middle Line
Management
First Line Management

7. Top Line
Manager
• Highest level
• Strategic
managers
• Establish
organization
goals,
objectives, &
operational
policies
• CEO, MD, BoD
President, VP
Middle
Manager
• Between top
& first line
• Tactical
manager
• Responsible
for
subordinates
• HOD, Branch
Manager, GM
First Line
Manager
• Lowest level
• Operational
level
• Responsible
for duties of
support staff
• Supervisors,
Section
Officer,
Foreman

8. FUNCTIONS OF MANAGEMENT
Planning Organizing Directing Controlling

9. PLANNING
• The process of forming organizational goals
and objectives based on logical plan
• The management will set the goals and
procedures to achieve the goals based on the
available resources in the organization

10. ORGANIZING
o coordinate activities conducted
e individuals in an organization

11. DIRECTING
• The process of training employees on
how to perform their duties in the
organization

12. CONTROLLING
• The management’s effort to ensure that the
organization is moving towards achieving its
goals based on develop plans.

13. MANAGEMENT SKILLS
Conceptual Human Technical

14. CONCEPTUAL SKILLS
• Manager’s ability and capability to think about
methods and coordinate activities or different
units
• Examples:-
• Who needs MOST????

15. HUMAN SKILLS
• Ability to understand and motivate others
• Emphasize on social and individual
relationship within organization
• Examples:-
• Who needs MOST????

16. TECHNICAL SKILLS
• Ability to use tools, rules, procedures and
techniques in a job
• Examples:-
• Who needs MOST????

17. THE ROLES OF MANAGER
Interpersonal relationship
Disseminating information
Decision making

18. INTERPERSONAL RELATION
•Leader
•PR Officer
Figurehead

19. • Observer
• Spokesperson
• Disseminator
of information

20. MAKING DECISION
•Disturbance Handler
• Resource
Allocator

21. THE HISTORY OF MANAGEMENT
ROOTS
Early Stage (before 1930)
Middle Stage (1930-1945)
Present Stage (1945 to the present)

22. EVOLUTION OF MANAGEMENT
THEORY
Pre-classical
Approach
Classical
Approach
Administrative
and Behavioral
Approach
Quantitative
Approach
Behavioral and
Human
Relation
Approach
Contemporary/
Current
Approach
Early Stage
Final Stage
Middle Stage

23. PRE-CLASSICAL APPROACH
PIONEER CONTRIBUTIONS
Robert Owen (1771-1858) Emphasis on health,
education and working
environment
Charles Babbage (1792-1871) Father of Modern
Computing
Promotes job specialization,
profit sharing ie Bonuses
Henry R. Towne (1844-1924) Importance of management
skills

24. CLASSICAL APPROACH
SCIENTIFIC MANAGEMENT
THEORY
CLASSIC MANAGEMENT
THEORY
Importance of conducting
scientific studies on
working methods to
improve employee
efficiency
Setting guidelines &
methods to manage a
complex organization
-Frederick W. Taylor
-Frank & Lillian Gilbreth
-Henry Fayol
-Max Weber

25. FREDERICK W. TAYLOR
• Father of Scientific Management
• Studied relationship between employees &
the job designed
Frederick Taylor’s Basic Principles
Conduct scientific studies
Select suitable employee
Allocate task & responsibilities
Fair remuneration

26. FRANK & LILLIAN GILBRETH
• Conducted research on “time and motion
study” emphasized reducing workflow to the
most basic work movement
Objective of TIME & MOTION STUDY
Analyze each work movement
Identify better methods to perform it

27. HENRY FAYOL
• Known as Father of Modern Management
• The pioneer to discuss management as a
process
• Introduce the FIVE MANAGEMENT FUNCTION
Planning Organizing commanding
Coordinating Controlling

28. HENRI FAYOL’S MANAGEMENT
PRINCIPLES
PRINCIPLES
DIVISION OF WORK CENTRALIZATION
AUTHORITY LINE OF AUTHORITY
DISCIPLINE ORGANIZATION
UNITY OF COMMAND EQUITY
UNITY OF DIRECTION STABILITY OF TENURE
GENERAL INTEREST INITIATIVES
REMUNERATION ESPIRITS DE CORPS

29. MAX WEBER
• Introduce bureaucratic structure
• All organizational goals and activities are
carefully & rationally viewed
• Bureaucracy – is a formal system that is
formed in the administration of an
organization in order to create efficiency and
effectiveness in organizational operations

30. BUREAUCRATIC
STRUCTURE
Specialization
of workforce
Career
development
Clear
management
hierarchy
Not personal
in nature
Usage of rules
& procedures

31. ADMINISTRATIVE & BEHAVIORAL
APPROACH
• A study on human aspects in the production
process. There are two theories:-
HUMAN RELATIONS
MOVEMENT
BEHAVIORAL
SCIENCE THEORY
HR means how manager
interacts with employee
Emphasize on scientific
research as the
foundation for understand
human behavior
Hawthorne Studies Maslow Hierarchy Of
Needs Theory

32. QUANTITATIVE APPROACH
• Emphasizes the use of mathematical methods,
statistics and other information tools to aid
decision making in order to increase
organizational effectiveness.
• This approach produce three(3) theories:
a. Management theory
b. Operations management Theory
c. Management Information Systems

33. CONTEMPORARY/ CURRENT
APPROACH
• An innovative approach in management
• There are two theories:-
1) System Theory
2) Contingency Theory

34. SYSTEM THEORY
• Organization is a system that comprises of
various divisions related to one another but
have one common goal
• Emphasized the need of the organization to
interact with the organization’s internal and
external elements in order to ensure the
organization’s success

35. CONTINGENCY THEORY
• Every action taken by manager must suit the
situation
• For example, a leadership style may not
appropriate for all situations.

36. Constraints on Managers:
External Environment & The Organizational
Culture
The Management
Environment
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37. The External
Environment
37
Public
Pressure
Groups
Suppliers
Competitors
Customer
THE
ORGANIZA

38. The External Environment
• Economic conditions
– Include interest rates, inflation rates, changes in disposable income,
stock market fluctuations, and the general business cycle, among
other things
• Political/legal conditions
– Include the general political stability of countries in which an
organization does business and the specific attitudes that elected
officials have toward business
– Federal and provincial governments can influence what organizations
can and cannot do. Some examples of legislation include:
• Canadian Human Rights Act
• Canada’s Employment Equity Act
• Competition Act
• Marketing boards
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39. The External Environment (cont’d)
• Socio-cultural conditions
– Include the changing expectations of society
• Demographic conditions
– Include physical characteristics of a population (gender, age,
level of education, geographic location, income and family
composition)
• Technological conditions
– Include the changes that are occurring in technology
• Global conditions
– Include global competitors and global consumer markets
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40. The Organization’s Culture
• What Is Organizational Culture?
– A system of shared meanings and common beliefs held by
organizational members that determine, to a large degree,
how they act toward each other
– “The way we do things around here”
• Values, symbols, rituals, myths, and practices
– Implications:
• Culture is a perception
• Culture is shared
• Culture is a descriptive term
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41. Benefits of a Strong Culture
• Creates a stronger employee commitment to the
organization
• Aids in the recruitment and socialization of new
employees
• Fosters higher organizational
performance by instilling and
promoting employee initiative
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42. Sources and Continuance of Organizational
Culture
• Sources of Organizational Culture
– Past practices of the organization
– The organization’s founder
• Continuation of the Organizational Culture
– Recruitment of employees who “fit”
– Behaviour of top management
– Socialization of new employees to help them
adapt to the culture
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43. How Employees Learn Culture
• Stories
– Narratives of significant events or actions of people that
convey the spirit of the organization
• Rituals
– Repetitive sequences of activities that express and reinforce
the values of the organization (urutan aktiviti secara
berulang- mengukuhkan nilai/amalan)
• Material Symbols
– Physical assets distinguishing the organization
• Language
– Acronyms and jargon of terms, phrases, and word meanings
specific to an organization
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44. How Culture Affects Managers
• Cultural Constraints on Managers
– Whatever managerial actions the organization recognizes as
proper or improper on its behalf
– Whatever organizational activities the organization values and
encourages
– The overall strength or weakness of the organizational culture
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