Summary Chapter 1 1

Topics: Management, Organization, Skills management Pages: 8 (1856 words) Published: March 17, 2015
Chapter 1
What is Management?

Overview
Chapter 1 examines what management is including what mangers do, and how they use resources to achieve organisational goals. The chapter highlights the four main functions of management (planning, organising, leading and controlling) as well as exploring the levels of management (first line, middle and top) as well as the importance of three types of managerial skills (conceptual, human and technical). The chapter concludes with a discussion of the major changes and challenges brought forth by increased globalisation and advancement in information technology and competition faced by managers today.

What is management?
Management is the planning, organising, leading and controlling of human and other resources to achieve organisational goals effectively and efficiency. Managers operate within an organisation, a group of people who work together to achieve a wide variety of goals or desired future outcomes.

Achieving high performance: A manager’s goal
Organisational performance is how effectively and efficiently a manager uses resources to satisfy customers and reach organisational goals. Efficiency measures how well or how productively resources are used. Effectiveness measures the appropriateness of the goals chosen by a manager.

Why study management?
Managers decide how to allocate society’s most valuable resources effectively. Studying management provides perspective on understanding and learning how to deal with bosses and coworkers. Students of management have the potential to compete successfully for interesting and well paying jobs. As managerial responsibility increases and people move up the organisation hierarchy, salaries grow with responsibility.

Salaries paid to top managers and CEOs are often quite large. In addition to a large salary, most top executives also receive shares in the company they manage and options that give them the right to sell them in the future.

Managerial functions
Planning is the process managers’ use for identifying and electing appropriate goals and actions for the organisation. Planning involves three steps including deciding which organisational goals and courses of actions to pursue; strategies to adopt and deciding how to allocate organisational resources to attain those goals. The strategies determined during planning determine the effectiveness and efficiency of an organisation.

Organising is the task of structuring working relationships in a way that allows organisational members to work together (effectively and efficiently) to achieve organisational goals. Organisational structure is the formal system of tasks and reporting relationships that coordinates actions and motivates members to achieve organisational goals.

Leading is the articulation of a clear organisational vision for the organisation’s members to accomplish through the energising and enabling of employees to understand what part he/she will play in achieving the goal. Successful leadership requires managers to utilise their personal qualities, specifically: Power, Personality, Influence, Persuasion, and Communication.

Controlling is the process of {evaluating} measuring how well an organisation has achieved it goals, resulting in taking corrective actions to improve performance or maintain results. The desired outcome of the control function of management is the ability to measure performance accurately and regulate organisational efficiency and effectiveness. Managers must decide which goals to pursue, goals such as productivity, quality and responsiveness to customers. Controlling allows managers to evaluate how effectively and efficiently he/she is performing the planning, organising and leading tasks as a manager within an organisation.

Types of managers
To perform efficiently and effectively, large organisations typically rely on three types of managers—first-line managers, middle managers and top managers—arranged in...
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