1. Chapter 07: Fundamentals of
Management
Tasnuva Farin
Section: A3, A4, A5, A6

2. • Layout of Chapter:
• What is Management?
• Key Management functions: Planning,
Organizing, Staffing, Directing and Controlling.
• Levels of Management/ Management
Hierarchy/ Chain of Command.
• Management Roles.
• Core Management Skills.

3. What is Management?
• “Management is the art of getting things done
through people.”
-Mary Parker Follett
Management Scholar & Theorist.

4. • Management: The application of planning,
Organizing, staffing, directing, and controlling
functions in the most efficient and effective manner
possible to accomplish objectives.
• Objective: Specific results or targets to be reached
by a certain time. Objectives are specific.
• Goal: A broadly stated guideline that an organization
or an individual is attempting to achieve.
• E.g. A university student’s goal may be to earn a
degree in business administration. An objective
would be to earn a bachelor’s degree in business
administration by June 2006 with an overall grade
point average of at least 3.5.

5. Key Management Functions.
Management Theorists have identified five primary
functions of managers. These functions are:
1.Planning: The management function of establishing objectives
and developing plans to accomplish them.
Planning essentially means deciding in advance what is to be
done. Of course, plans alone do not bring about desired
results; but without a plan and a set of objectives, managerial
actions are likely to produce confusion.
2.Organizing: The management function of grouping people and
assignments to carryout job tasks and the mission.
3.Staffing: The management function of selecting, placing,
training, developing, and compensating subordinates. A
manager’s staffing activities also include the evaluation and
appraisal of performance.

6. 4.Directing: The management function of initiating action – issuing directives,
assignments and instruction. Directing also means building an effective group of
subordinates who are motivated to perform. It means getting subordinates to
work to accomplish objectives. Directing can be accomplished through leadership.
Leadership: The process of influencing the activities of an individual or group
toward the accomplishing objectives. Leadership may be Autocratic, democratic or
laissez-faire.
• Types of leadership:
• Autocratic:
– Close suppression.
– Manager delegates as little authority as possible.
– Manager provides detailed instruction.
• Democratic:
– General suppression.
– Manager consults with subordinates about job-related issues.
• Laissez Faire:
– Free-rein (complete freedom); Manager exists as a contact person who
provides information and guidance.
– Manager avoids power and responsibility by giving assignments and support
but staying out of the group’s way (may be appropriate when the manager
have little knowledge of that certain field; e.g. business graduate managing a
team of engineers).

7. 5.Controlling: The managerial function of checking to
determine whether employees are following plans and
progress is being made, and of taking action to reduce
discrepancies. The core idea of control is to modify
behavior and performance when deviations from plans are
discovered. Controlling is concerned with making certain
that plans are correctly implemented.
•
•
•
•
•
The process of controlling has four steps:
Set standards for time, quality, quantity and so on.
Measure performance (results).
Compare performance to standards.
Make necessary modifications.

8. Levels of Management.
Three (3) distinct levels of management – Executive, Middle, and First line –
are usually portrayed as a Managerial Hierarchy. This hierarchy depicts
what is called a Chain of Command, or simply a channel of
communication, coordination, and control.
1.Executive (What to do): Engaged in charting overall mission, strategy,
objectives of the business; e.g. President, CEO, Partner, Vice-President,
Director, Chancellor/ Vice-Chancellor.
2.Middle Level (How to do): Receive the mission, Strategy, objectives from
top executive level and translate them into specific action plans (for the
first-line managers). They are a link between the Executive level and the
first-line level managers; e.g. Plant Manager, Dean, Project Director,
Regional Manager.
3.First Line level (Just to do): Directly responsible for coordinating the work
of employees/ non-managers. They must work with non-managers or
employees and motivate them. They are link between the Middle-level
management and non-managers; e.g. First-line supervisor, Product
Manager, Chairperson of Department.
Operating employees: The non-managers in an organization who perform
specific tasks and usually manufacture a product or provide a service for
customers.

9. Managerial Roles.
• Role: A set of expected behaviors. (E.g. Student,
Teacher, Father, Bother, etc. The person who has
the role of a father, is expected to be kind,
understanding, helpful, and a good example to
his child etc)
• A manager has three (3) major roles to perform:
(I.) Interpersonal.
(II.) Informational.
(III.) Decisional.

10. Core Management Skills.
Management skill: The ability to use knowledge, behaviors, and
aptitudes to perform a task.
• According to Robert Katz, any manager who wants to become
a successful manager in managing his/her organization must
possess the following three (3) core management skills:
1. Technical Skills: Skills involved in making a product or
providing a service.
2. Human Relations Skills: The ability to relate and interact with
subordinates, peers, superiors and customers or clients.
3. Conceptual Skills: The ability to organize and integrate
information to better understand the organization as a whole.

11. • Studies of Management Skills: Various
research results point to four (4) core
management skills that may help anyone to
learn, practice, and become proficient to be a
successful manager.

12. Four (4) core management skills
1. Decision-Making/
2.
Problem Solving
Communication
Identifies problems.
Writes clearly
3. Interpersonal
4. Objective/ Goal-Setting
Shows empathy.
Establishes meaningful,
and concisely.
challenging, and clear objectives.
Creates feasible
Speaks
Uses power and
alternatives.
effectively.
influence fairly.
Selects an optimal
Listens carefully.
Projects a
alternative.
Sets priorities.
Evaluates success of objectives/
positive image to goals as standards to establish
others.
Makes decisions under risk
Has computer
Behaves
and/ or uncertainty.
skills.
ethically.
Evaluates alternatives used
Resolves
to solve problems.
conflict.
reward program.