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1 PRINCIPLES OF MANAGEMENT Compiled by Dr: Eman Ahmed Nabil Lecturer of Business Administration Faculty of Commerce – EL-Azhar University
2 Chapter 1 The Nature of Management Chapter Outlines: - Introduction. - Definition of Management. - Levels of Management. - Management Skills. - Management an Art or Science.
3 Introduction: Management is universal in the modern industrial world and there is no substitute for good management. It makes human efforts more productive and brings better technology, products and services to our society. It is a crucial economic resource and a life-giving element in business. Without proper management, the resources of production (individuals, financial, information, row materials, and technological) cannot be converted into production. Thus management is a vital function concerned with all aspects of the working of an organization. Management is a must to accomplish desired goals through group action. It is essential to convert the disorganized resources of individuals, , financial, information, row materials, technological into a useful and effective enterprise. Thus management is the function of getting things done through people and directing the efforts of individuals towards a common objective. Definition of Management: Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. There are two important ideas in this definition: (1) the four functions of planning, organizing, leading, and controlling (2) the attainment of organizational goals in an effective and efficient manner. Levels of Management: An important determinant of the manager's job is hierarchical level. Three levels in the hierarchy are illustrated in Figure 1.1.
4 1- Top managers are at the top of the hierarchy and are responsible for the entire organization. They have such titles as president, chairperson, executive director, chief executive officer (CEO), and executive vice-president. Top managers are responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization. They look to the long- term future and concern themselves with general environmental trends and the organization's overall success. Among the most important responsibilities for top managers are communicating a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company keep pace with rapid change. Today more than ever before, top managers must engage the unique knowledge, skills, and capabilities of each employee. 2- Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers typically have two or more management levels beneath them. They are responsible for implementing the overall strategies and policies defined by top managers. Middle managers generally are concerned with the near future and are expected to establish good relationships with peers around the organization, encourage