ABSTRACT
This chapter introduces management theory and practice. It begins by defining the concept of management in terms of the various functions that managers perform in organizations. An organization is a collection of people and materials brought together to accomplish purposes not achievable through the efforts of individuals working alone. Three attributes enable an organization to achieve this feat: a mission, a division of labor, and a hierarchy of authority. Each organization works toward a specific mission, which is its purpose or reason for being. The hierarchy of authority is another common organizational attribute. In very small organizations, all members of the organization may share equally the authority to make decisions and initiate actions. An organization chart is a graphic representation of a firm’s hierarchy of authority. The organization chart in this figure shows the top and middle management of a manufacturer of small gasoline engines used in lawn mowers, snow blowers, and similar equipment.
