Chapter 1: Introduction to Management

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Chapter 1: INTRODUCTION TO MANAGEMENT Organization I. Definition A. According to Stoner, organization can be defined as a social unit in which two or more people interact to achieve a common goal or a set of goals. B. Schermerhorn defined organization as a collection of people working together in a division of labor to achieve a common purpose. Accomplish objective 1. Organization is needed to achieve objectives. 2. E.g.: School is needed to obtain education Preserve knowledge 1. Organization is a place where knowledge/information is preserved or kept. 2. E.g.: To know more about animal we can go the zoo. Importance of organization Serve society 1. Organization is needed to provide service to the society. 2. E.g.: We can call the police if there is crime occurs at our place. Provide careers. 1. Organizations provide careers opportunities so that individuals can have jobs and earn salary every month. 2. E.g.: Banks offers a position as teller clerk, officer and manager. Management Process I. Management A. Early definition of management is given by Mary Parker Follet who is a well known management scholar. She defined management as “The Art of Getting Things Done Through People”. B. Now the definition has been extended to the achievement of organizational goals through planning, organizing, leading and controlling organizational resources. C. Manager’s performance can be measured by using how efficient and effective the manager is. D. Efficiency - The ability to minimize the use of resources in achieving organizational activities; “DOING THINGS RIGHT”. E. Effectiveness - The ability to determine appropriate objectives; “DOING THE RIGHT THINGS”. F. The below diagram explain how manager’s performance can be measured using efficiency and effectiveness whereby area B is the desired result in measuring managerial performance. 1 zaidmy Chapter 1:

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