Chapter 1: Management and Organizations

Question 1

What is an organisation?

Answer 1

• Organisation - A deliberate arrangement of
people assembled to accomplish some specific
purpose (that individuals independently could
not accomplish alone).
• Common Characteristics of Organisations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure

Question 2

What is management?

Answer 2

• Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.

Question 3

Differentiate efficiency and effectiveness.

Answer 3

• Efficiency
– “Doing things right”
– Getting the most output
for the least inputs
– Efficiently utilizing the
scarce resources and not
wasting resources.
– Concerned with the
“means” of getting
things done

• Effectiveness
– “Doing the right things”
– Attaining organisational
goals
– Doing those activities
that can help achieve
organisational goals
– Concerned with the
“ends” of attaining
organisational goals

Question 4

What are the management functions?

Answer 4

• Planning - Defining goals, establishing strategies to
achieve goals, and developing plans to integrate and
coordinate activities.
• Organising - Arranging and structuring work to
accomplish organisational goals.
• Leading - Working with and through people to
accomplish goals.
• Controlling - Monitoring, comparing, and correcting
work.

Question 5

What are the management skills?

Answer 5

1) Technical skills
• Job-specific knowledge and proficiency to perform
specific tasks.
• More important for lower level manager because they
typically manage employees who are using tools and
technology to produce product or provide services.
• Employees with excellent technical skill always get
promoted to first line manager.

2) Human skills
• The ability to work well with other people in a group.
• These skills are equally important at all levels of
management.
• Manager with good human skill are able to get the
best out of their people.
• Motivate, lead, and inspire enthusiasm and trust.

3) Conceptual skills
• The ability to think and conceptualize about abstract
and complex situations concerning the organisation
• Managers see organisation as a whole, understand the
relationship among various subunit, and visualize how
the organisation fits into its broader environment.
• These skills are most important at the top level
management levels.

Question 6

What is the importance of management skills?

Answer 6

• Managing human capital.
• Managing change.
• Managing decision-making process.
• Structuring works and getting things done.