Chapter 1 - Overview of Management

MBUS Summary of Chapter 1 Overview Of Management
Overview of Management
What is Management
Management is a set of principles relating to the functions of planning, organizing, directing and
controlling, and the application of these principles in harnessing physical, financial, human and
informational resources efficiently and effectively to achieve organizational goals.
Who are Managers
-To coordinates and oversees individual getting work done
-To ensure that organizational goals can be accomplished.
Types of managers
-Top Managers
oTop-level managers are responsible for controlling and overseeing the entire
organization.
-Middle Managers
oMiddle-level managers are responsible for executing organizational plans which
comply with the company's policies. They act as an intermediary between top-
level and low-level management.
-First Line Managers
oFirst-line managers are the entry level of management, the individuals “on the
line” and in the closest contact with the workers. They are directly responsible for
making sure that organizational objectives and plans are implemented effectively.
-Non Managerial
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MBUS Summary of Chapter 1 Overview Of Management
oThis are normal employees that will report to the First line Managers and does the
work that is assigned by the manager.
Efficiency vs Effectiveness
Efficiency – focus on the maximizing and utilizing of available resources to gain the best and to
maximize productivity within the company.
Effectiveness – getting the job done and meeting the intended goals and targets prescribed by the
organization.
What Do Managers Do
Planning
Organizing
Leading
Controlling
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Achieving the goals of
the organization

MBUS Summary of Chapter 1 Overview Of Management
Planning
Planning is the function of management that involves setting objectives and determining a course
of action for achieving those objectives. Planning requires that managers be aware of
environmental conditions facing their organization and forecast future conditions. It also requires
that managers be good decision makers.
Types of planning.
Strategic planning involves analyzing competitive opportunities and threats, as well as
the strengths and weaknesses of the organization, and then determining how to position
the organization to compete effectively in their environment. Strategic planning has a
long time frame, often three years or more. Strategic planning generally includes the
entire organization and includes formulation of objectives. Strategic planning is often
based on the organization’s mission, which is its fundamental reason for existence. An
organization’s top management most often conducts strategic planning.
Tactical planning is intermediate-range (one to three years) planning that is designed to
develop relatively concrete and specific means to implement the strategic plan. Middle-
level managers often engage in tactical planning.
Operational planning generally assumes the existence of organization-wide or subunit
goals and objectives and specifies ways to achieve them. Operational planning is short-
range (less than a year) planning that is designed to develop specific action steps that
support the strategic and tactical plans.
Organizing
Organizing is the function of management that involves developing an organizational structure
and allocating human resources to ensure the accomplishment of objectives. The structure of the
organization is the framework within which effort is coordinated. The structure is usually
represented by an organization chart, which provides a graphic representation of the chain of
command within an organization.
Leading
Leading involves the social and informal sources of influence that you use to inspire action taken
by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting
effort to attain organizational objectives.
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