Chapter 1 – Managers and Management
CHAPTER 1 MANAGERS
AND
MANAGEMENT
LEARNING OUTCOMES
After reading this chapter, students should be able to:
1-1. Tell who managers are and where they work.
1-2. Define management.
1-3. Describe what managers do.
1-4. Explain why it’s important to study management.
1-5. Describe the factors that are reshaping and redefining management.
Management Myth
MYTH: Only those who want to be managers need to take a course in management.
TRUTH: Anyone who works in an organization—not just managers—can gain insight into
how organizations work and the behaviors of their boss and coworkers by taking a course in
management.
SUMMARY
Everyone seems to think they know what makes a good leader. They think it is common sense
but you don’t have to be a manager, or aspire to be a manager, in order to gain something from a
management course.
Teaching Tips:
Get students to give some examples of good managers. Ask if it matters if the manager is young
or old, male or female? Is management necessary in non-profit organizations and small
companies like it is in for-profit and large companies?
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Chapter 1 – Managers and Management
I. WHO ARE MANAGERS, AND WHERE DO THEY WORK?
A. Introduction
1. Managers work in an organization.
2. An organization is a deliberate arrangement of people brought together to accomplish
some specific purpose.
a) Your college or university is an organization. So is a football team and a sorority.
B. What Three Characteristics Do All Organizations Share?
1. Every organization has a purpose and is made up of people who are grouped in some
fashion.
a) See Exhibit 1-1.
b) This distinct purpose is typically expressed in terms of a goal or set of goals.
2. Purposes or goals can only be achieved through people.
3. All organizations develop a systematic structure that defines and limits the behavior
of its members.
a) Developing a structure may include creating rules and regulations, giving some
members supervisory control, forming teams, etc.
C. How Are Managers Different from Nonmanagerial Employees?
1. Organizational members fit into two categories: nonmanagerial employees and
managers.
a) Nonmanagerial employees work directly on a job or task and have no oversight
on the responsibility of others.
b) Managers direct the activities of other people in the organization.
1) Customarily classified as top, middle, or first line, they supervise both
nonmanagerial employees and lower-level managers.
2) See Exhibit 1-2.
3) Some managers also have nonmanagerial responsibilities themselves.
2. The distinction between non-managers and managers is that managers have
employees who report directly to them.
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Chapter 1 – Managers and Management
D. What Titles Do Managers Have?
1. Top managers are responsible for making decisions about the direction of the
organization and establishing policies that affect all organizational members.
a) Top managers have titles including vice president, managing director, chief
operating officer, chancellor, etc.
2. Middle managers represent levels of management between the first-line supervisor
and top management.
a) They manage other managers and possibly some nonmanagerial employees.
b) They are responsible for translating the goals set by top management into specific
details.
3. First-line managers are usually called supervisors, shift managers, etc.
a) They are responsible for directing the day-to-day activities of nonmanagerial
employees.
4. Team leaders are responsible for managing and facilitating activities of a work team.
a) They typically report to a first-line manager.
II. WHAT IS MANAGEMENT?
1. Management can be defined as the process of getting things done effectively and
efficiently, through and with other people.
a) The term “process” in the definition represents the primary activities managers
perform.
2. Effectiveness and efficiency deal with what we are doing and how we are doing it.
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From the Past to the Present
The terms management or manager come from a number of sources. One source says that the
word manager originated in 1588 to describe one who manages. The specific use of the word as
“one who conducts a house of business or public institution” is said to have originated in 1705.
Another source says that the origin (1555–1565) is from the word ‘maneggiare’, which meant
“to handle or train horses,” and was a derivative of the word mano, which is from the Latin word
for hand, manus. This origin arose from the way that horses were guided, controlled, or directed
where to go—by using one’s hand.
The words management and manager are more appropriate to the early twentieth century. Peter
Drucker, the late management writer, studied and wrote about management for more than 50
years. The word ‘management’ was first popularized by Frederick Winslow Taylor. In 1911,
Taylor’s book “Principles of Scientific Management” was published. Its contents were widely
embraced by managers around the world. The book described the theory of scientific
management: the use of scientific methods to define the “one best way” for a job to be done.
He spent more than two decades passionately pursuing the “one best way” for such jobs to be
done. Based on his groundbreaking study of manual workers using scientific principles, Taylor
became known as the “father” of scientific management. Some of these techniques like the
analysis of basic work that must be performed and time-and-motion studies, are still used today.
Chapter 1 – Managers and Management
a) Efficiency means doing the task right and refers to the relationship between inputs
and outputs. Management is concerned about minimizing resource costs while
achieving the desired output.
b) Effectiveness means doing the right task, and in an organization, that translates
into goal attainment.
c) See Exhibit 1-3.
3. Efficiency and effectiveness are interrelated.
a) It’s easier to be effective if one ignores efficiency.
b) Good management is concerned with both the attainment of goals (effectiveness)
and efficiency in the process.
III.WHAT DO MANAGERS DO?
A. Describing what managers do is a difficult task
1. While the job of manager varies from organization to organization, they do share
some common elements.
2. Management researchers have developed three approaches to describe what
managers do: functions, roles, and skills/competencies.
B. The Four Management Functions
1. See Exhibit 1-4; planning, organizing, leading, and controlling.
2. These processes are interrelated as well as interdependent.
3. Planning encompasses defining an organization’s goals, establishing an overall
strategy for achieving those goals, and developing plans to coordinate activities.
4. Organizing—determining what tasks are to be done, who is to do them, how the
tasks are grouped, who reports to whom, and where decisions are to be made.
5. Directing and coordinating people is the leading component of management.
a) Leading involves motivating employees, directing the activities of others,
selecting the most effective communication channel, and resolving conflicts.
6. Controlling.
a) To ensure that things are going as they should, a manager must monitor the
organization’s performance.
b) Actual performance must be compared with the previously set goals.
c) Any significant deviations must be addressed.
d) Monitoring, comparing, and correcting are the controlling process.
C. Management Roles Approach
1. Fayol’s original applications represented mere observations from his experiences in
the French mining industry.
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Chapter 1 – Managers and Management
2. In the late 1960s, Henry Mintzberg provided empirical insights into a manager’s job.
He undertook a careful study of five chief executives at work.
Mintzberg provided a categorization scheme for defining what managers do on the
basis of actual managers on the job—Mintzberg’s managerial roles.
Mintzberg concluded that managers perform ten different but highly interrelated
roles.
a) These ten roles are shown in Exhibit 1-5.
b) They are grouped under three primary headings:
1) Interpersonal roles – figurehead, leader, liaison
2) Informational roles – spokesperson, disseminator, monitor
3) Decisional roles – entrepreneur, disturbance handler, resource allocator,
negotiator
D. What Skills and Competencies do Managers Need?
1. Robert Katz proposed that managers must possess and use four critical management
skills.
a) Conceptual skills – used to analyze and diagnose complex situations.
b) Interpersonal skills – involved with working well with other people, both
individually and in groups.
c) Technical skills – job-specific knowledge and techniques needed to perform work
tasks.
d) Political skills – to build a power base and establish the right connections.
E. Is the Manager’s Job Universal?
1. Level in the Organization: The importance of managerial roles varies depending on
the manager’s level in the organization.
a) The differences in managerial roles are of degree and emphasis, but not of
activity.
b) As managers move up, they do more planning and less direct overseeing of
others.
1) See Exhibit 1-6.
c) The amount of time managers give to each activity is not necessarily constant.
d) The content of the managerial activities changes with the manager’s level.
1) Upper-level managers are concerned with designing the overall organization’s
structure.
e) Lower-level managers focus on designing the jobs of individuals and work
groups.
2. Profit versus Not-for-Profit.
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Chapter 1 – Managers and Management
a) The manager’s job is mostly the same in both profit and not-for-profit
organizations.
b) All managers make decisions, set objectives, create workable organization
structures, hire and motivate employees, secure legitimacy for their organization’s
existence, and develop internal political support in order to implement programs.
c) The most important difference is measuring performance, profit, or the “bottom
line.”
d) There is no such universal measure in not-for-profit organizations.
e) Making a profit for the “owners” of not-for-profit organizations is not the primary
focus.
3. Size of Organization.
a) Definition of small business and the part it plays in our society.
1) There is no commonly agreed-upon definition.
b) Small business—any independently owned and operated profit-seeking enterprise
that has fewer than 500 employees.
c) The role of managing a small business is different from that of managing a large
one.
1) See Exhibit 1-7.
2) The small business manager’s most important role is that of spokesperson
(outwardly focused).
3) In a large organization, the manager’s most important job is deciding which
organizational units get what available resources (inwardly focused).
4) The entrepreneurial role is least important to managers in large firms.
5) A small business manager is more likely to be a generalist.
6) The large firm’s manager’s job is more structured and formal than the
manager in a small firm.
7) Planning is less carefully orchestrated in the small business.
8) The small business organizational design will be less complex and structured.
9) Control in the small business will rely more on direct observation.
d) We see differences in degree and emphasis, but not in activities.
4. Management Concepts and National borders.
a) Studies that have compared managerial practices between countries have not
generally supported the universality of management concepts.
1) In Chapter 3, we will examine some specific differences between countries.
b) Most of the concepts we will be discussing primarily apply to the United States,
Canada, Great Britain, Australia, and other English-speaking democracies.
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Chapter 1 – Managers and Management
c) Concepts may need to be modified when working with India, China, Chile, or
other countries where economic, political, social, or cultural environments differ
greatly from that of the so-called free-market democracies.
IV. WHY STUDY MANAGEMENT?
A. Reasons
1. We all have a vested interest in improving the way organizations are managed.
a) We interact with them every day of our lives.
1) Examples of problems that can largely be attributed to poor management.
b) Those that are poorly managed often find themselves with a declining customer
base and reduced revenues.
2. The reality that once you graduate from college and begin your career, you will either
manage or be managed.
a) An understanding of the management process is the foundation for building
management skills.
b) You will almost certainly work in an organization, be a manager, or work for a
manager.
c) You needn’t aspire to be a manager in order to gain something valuable from a
course in management.
V. WHAT FACTORS ARE RESHAPING AND REDIFINING MANAGEMENT?
A. Introduction
a) Managers are dealing with changing workplaces, a changing workforce, changing
technology, and global economic uncertainties.
b) Managers everywhere are likely to have to manage in changing circumstances,
and the fact is that how managers manage is changing.
B. Why Are Customers Important to the Manager’s Job?
1. Without customers, the organization wouldn’t survive.
2. Employee attitudes and behaviors play a big role in customer satisfaction.
3. Managers must create a customer responsive organization.
C. Why Is Innovation Important to the Manager’s Job?
1. Not being innovative in today’s world is risky.
2. Managers need to understand what, when, where, how, and why innovation can be
fostered and encouraged throughout the organization.
3. Managers not only need to be innovative but they must foster it in others.
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Chapter 1 – Managers and Management
A Question of Ethics
Twenty-six percent of new managers feel they’re unprepared to transition into management
roles. Fifty-eight percent of new managers don’t receive any training to help them make the
transition. Forty-eight percent of first-time managers fail in that transition.
Moving to a management position isn’t easy, as these statistics indicate. If your professor has
assigned this, go to the Assignments section of mymanagementlab.com to complete these
discussion questions.
Questions for students to consider:
Does an organization have an ethical responsibility to assist its new managers in their
new positions? Why or why not?
What could organizations do to make this transition easier?
Technology and the Managers Job
Is It Still Managing When What You’re Managing Are Robots?
It shouldn’t be surprising that the office of tomorrow will be heavily populated by robots. What
happens to the manager’s job when this happens? And how will these new (robotic) employees
affect their human counterparts? From the evidence that exists, it appears that people find it easy
to interact with robots as co-workers.
Students should think about:
Defining managers and management under this type of setting.
Conducting research on telepresence and telepresence robots. How might this technology
change the way workers and managers work together?
What’s your response to the title of this box: Is it still managing when what you’re managing
are robots?
If you had to “manage” people and robots, how do you think your job as manager might be
different than what the chapter describes?
Teaching Tips:
Have students think about several recent innovations, i.e. smart phones. How out of place would
these technologies have been 20, 50, or 100 years ago? Once we start to use a new technology,
how long does it take before the ‘awe’ factor wears off?
D. Importance of Social Media to the Manager’s Job
1. Social media – forms of electronic communication through which users create online
communities to share ideas, information, personal messages, and other content.
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Chapter 1 – Managers and Management
2. Employees can use social media for work purposes. Several examples are discussed
in the text about companies using social media to manage human resource issues and
to foster communication and collaboration throughout the company.
3. It can also be a problem and managers must be careful that social media does not turn
the organization into a place where people boast, brag, or send one way messages to
employees.
E. Importance of Sustainability to the Manager’s job
1. Sustainability – company’s ability to achieve its business goals and increase
long-term shareholder value by integrating economic, environmental, and social
opportunities into its business strategies.
a) This is becoming more important.
b) Managers must look at corporate social responsibility not only to manage in an
efficient and effective way but also responding strategically to a wide range of
environmental and social challenges.
F. Wrapping It Up
1. Being a manager is both challenging and exciting.
2. Gallup polls indicate that the single most important variable in employee productivity
and loyalty is the quality of the relationship between employees and their direct
supervisors.
3. Gallup also found that the relationship with their manager is the largest factor in
employee engagement—which is when employees are connected to, satisfied with,
and enthusiastic about their jobs— accounting for at least 70 percent of an
employee’s level of engagement.
4. Research also shows that talented managers contribute about 48 percent higher profit
to their companies than do average managers. Another study found that when a poor
manager was replaced by a talented one, employee productivity increases by 12
percent.
REVIEW AND APPLICATIONS
CHAPTER SUMMARY
1-1 Tell who managers are and where they work. Managers are individuals who work
1-2 Define management. Management is the process of getting things done, effectively
and efficiently, with and through other people. Efficiency means doing a task correctly (“doing
1-3 Describe what managers do. What managers do can be described using three
approaches: functions, roles, and skills/competencies. The functions approach says that managers
perform four functions: planning, organizing, leading, and controlling. Mintzberg’s roles
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Chapter 1 – Managers and Management
1-4 Explain why it’s important to study management. One reason it’s important to
study management is that all of us interact with organizations daily so we have a vested interest
1-5 Describe the factors that are reshaping and redefining management. In today’s
world, managers are dealing with changing workplaces, a changing workforce, global economic
1-10
Copyright ©2017 Pearson Education, Inc.