Introduction to Organizations and
Management
Organizations Defined
Organizations are social units( or human groupings)
deliberately constructed and reconstructed to seek specific
goals- Amitai Etzioni
More Definitions…
An organization is a deliberate arrangement of people to
accomplish some specific purpose
Two or more people who work together in a structured
way together to achieve a specific goal or goals
A social entity that is goal directed and deliberately
structured
Organizations are characterized by…
Divisions of labour, power and communication
responsibilities
Presence of one or more power centers
Substitution of personnel
What is an organization?
An organization is a deliberate arrangement of people to
accomplish some specific purpose
Two or more people who work together in a structured
way together to achieve a specific goal or goals
A social entity that is goal directed and deliberately
structured
What is Management?
• Management: The process of using organizational
resources to achieve the organization’s goals by...
– Planning, Organizing, Leading, and Controlling
• The process of coordinating work activities so that
they are completed efficiently and effectively with
and through other people
• Management is the process of designing and
maintaining an environment is which individuals
working together in groups efficiently accomplish
selected aims
Management Functions
Planning
Organizing
Leading
Controlling
Planning
Management Function that involves the process of defining
goals, establishing strategies for achieving those goals and
developing plans to integrate and coordinate activities
• Planning is the process used by managers to identify and
select appropriate goals and courses of action for an
organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
.
Organizing
• Management Function that involves the process of
determining what tasks are to be done, who is to do them ,
how the tasks are to be grouped, who reports to whom,
and where the decisions are to be made.
• In organizing, managers create the structure of working
relationships between organizational members that best
allows them to work together and achieve goals.
Leading
Management function that involves motivating
subordinates, influencing individuals or teams as they
work, selecting the most effective communication
channels, or dealing in any way with employee behaviour
issues.
Leading…
• In leading, managers determine direction, state a clear
vision for employees to follow, and help employees
understand the role they play in attaining goals.
• Leadership involves a manager using power, influence,
vision, persuasion, and communication skills.
• The outcome of the leading function is a high level of
motivation and commitment from employees to the
organization
Controlling
Management Function that involves monitoring actual
performance, comparing actual to standard , and taking
action
Controlling…
In controlling, managers evaluate how well the
organization is achieving its goals and takes corrective
action to improve performance.
Managers will monitor individuals, departments, and
the organization to determine if desired performance
has been reached.
Managers will also take action to increase performance as
required.
The outcome of the controlling function is the accurate
measurement of performance and regulation of
efficiency and effectiveness.
Management Process
The set of ongoing decisions and work activities in which
managers engage as they plan, organize , lead or control
IMAGES OF ORGANIZATION
A variety of paradigms and metaphors to capture are
used the essence of how organizations function
Organizations as Machines
• The term organization is derived “organon” meaning a
“tool” or an “instrument”
• A tool has precision, efficiency, reliability, predictability
built into it.
• Systems and procedures are introduced to routinize
activities and reduce uncertainty of operations
• Mechanical view of organizations- Adam Smith , Max
Weber, Henry Fayol and F.W. Taylor
Organizations as Living Systems
• Organizations have to change and adapt in response to
demands from the external environment
• Organizations continuously interact with the environment
and go through the phenomenon of growth, maturity and
decline
• Organizations are open systems
• Primary goal of the organization is survival and
environmental adaptation
Organizations as Brains
• Organizations are proactive and not reactive to the
environmental changes
• They deliberately select their operating environment and
consciously plan their strategies and internal design.
• Organizations receive, process and act upon information
emanating from the internal and external environment
• Organizations learn, solve problems and innovate
Organizations as Political Systems
• Decisions made in organizations are not just solely
determined by the logic of optimization but also by the
existing power equations among the organizational
members
• Organizations with their built-in hierarchy and authority
relationship are open to political processes
• Power relationships among organizational members are
characterized by inherent anomalies and internal
contradictions
Organizations as Cultures
An organization has certain implicit norms of behaviour,
certain shared values and ways of doing things
The ritualistic behaviour patterns signify the dominant and
often implicit values and assumptions which people hold
regarding their work, relationships and organizations
Task of a manager- “management of meaning”
Organizations as Psychic Prisons
The organizations can also bring out the most pathological
tendencies into play
Organizations provide an opportunities to people for
working out their neurotic impulses in an acceptable form
Who is a manager?
Someone who works with and through other people by
coordinating their work activities in order to accomplish
organizational goals
Managers are the people responsible for supervising the
use of an organization’s resources to meet its goals
Managers give directions to their organization, provide
leadership and decide how to use organizational resources
to accomplish goals
Classification of Managers
First-line managers
Middle Managers
Top managers
Management Skills
Technical Skills
Human Skills
Conceptual Skills
What is a role?
A role is a set of specific tasks a person performs because of the
position they hold
Roles are directed inside as well as outside the organization
Management Roles
Interpersonal
Roles managers assume to coordinate and interact with employees
and provide direction to the organization.
Informational
Associated with the tasks needed to obtain and transmit information
for management of the organization.
Decisional
Associated with the methods managers use to plan strategy and
utilize resources to achieve goals.
Interpersonal
Figurehead
Leader
Liaison
Informational
Monitor
Disseminator
Spokesperson
Decisional
Entrepreneur
Disturbance handler
Resource Allocator
Negotiator
Efficiency and Effectiveness
Efficiency: The ability to do things “right”- an input-
output concept ( Resource Usage)
Effectiveness: Choosing the right goals. Doing the “right
thing”- High goal attainment
Managerial Effectiveness
Effectiveness is the extent to which a manager achieves
the output requirement of his position. It is not so much
what a manager does but what he achieves
It represents output, not input
Efficiency versus Effectiveness
Do things right Do right things
Solve problems Produce creative
alternatives
Safeguard resources Optimize resource
utilization
Follow duties
Obtain results
Lower costs
Increase profits
Three kinds of Effectiveness
Apparent Effectiveness
Personal Effectiveness
Managerial Effectiveness
Managerial Effectiveness
RO
Related Integrated
Separated Dedicated
TO
Three Managerial Skills
Situational Sensitivity Skill
Style Flexibility Skill
Situational Management Skill
