CHAPTER 1
Managing and the Manager’s Job
CHAPTER SUMMARY
Chapter 1 provides an overview of management and the manager’s job. After a brief introduction, the
chapter describes the management process around which the book is organized. It then identifies and
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Describe the nature of management, define management and managers, and characterize their
importance to contemporary organizations.
2. Identify and briefly explain the four basic management functions in organizations.
The opening incident describes personality and leadership skills of Netflix co-founder and CEO, Reed
Hastings. Netflix entered the movie rental industry by disrupting the (then) current model in two ways. It
rented movies by mail and also had a subscription format. Netflix has had a remarkable run under reed
Hastings, first upending the incumbent leader, Blockbuster, and later, successfully changing consumer
behavior with respect to watching movies at home. However, as the vignette points out, Hastings hasn’t
always been right with his moves. His idea of splitting Netflix into two companies, with the DVD rental
business called Qwikster, resonated poorly with the company’s customers.
Management Update: The New York Times reported on October 25, 2011, that Netflix ‘s shares fell
Chapter 1: Managing and the Manager’s Job
LECTURE OUTLINE
Organizations and their managers play an important role in contemporary society.
An organization is defined as a group of people working together in a structured and coordinated fashion
to achieve a set of goals.
Teaching Tip: Note the names of your school and several local organizations as further examples of
I. AN INTRODUCTION TO MANAGEMENT
Many different definitions of management exist. This book uses a resource-based definition.
Resources is defined broadly to include human, financial, physical, and information resources.
Teaching Tip: Note the similarities and differences among the kinds of resources used by profit–
Group Exercise: A good icebreaking exercise for the first day of class is to have students form small
As indicated in Figure 1.1, management is a set of activities—including planning and decision making,
organizing, leading, and controlling—directed at an organization’s human, financial, physical, and
information resources with the aim of achieving organizational goals in an efficient and effective manner.
Teaching Tip: Review the definition of management with your students and stress its connection with
Efficient means using resources wisely and without unnecessary waste.
Effective means doing the right things successfully.
Discussion Starter: Ask students to identify other examples of managers, with an emphasis on as
many different kinds of organizations and management positions as possible. The wide variety of
answers that is likely to emerge can be used to stress the diversity that exists in managerial work.
Chapter 1: Managing and the Manager’s Job
II. THE MANAGEMENT PROCESS
The management process, as noted earlier, involves the four basic functions of planning and
decision making, organizing, leading, and controlling.
These functions provide the framework around which this book is organized.
Cross-Reference: Note that Figure 1.2 is actually the center part of Figure 1.1, with extra annotations
Extra Example: Jeff Bezos, CEO of Amazon.com, can also be used to illustrate the basic management
functions. He planned the expansion of his firm into new products and markets. He designed his firm
around a number of cooperative arrangements, such as Amazon’s alliances with Target, Office Depot,
and Toys ‘R’ Us. As a leader, he rewards creativity and insists on efficiency.
A. Planning and Decision Making: Determining Courses of Action
Planning means setting an organization’s goals and deciding how best to achieve them.
Cross-Reference: Note for students that Chapters 7–10 in Part III of the book discuss planning and
decision making in detail.
B. Organizing: Coordinating Activities and Resources
Organizing is grouping activities and resources.
Cross-Reference: Organizing is discussed more fully in Chapters 11–14 in Part IV.
III. KINDS OF MANAGERS
A. Managing at Different Levels of the Organization
Figure 1.3 illustrates the different kinds of managers in an organization by level and by area.
Chapter 1: Managing and the Manager’s Job
1. Top managers are the small group of executives who control the organization by setting
its goals, overall strategy, and operating policies. Job titles for top managers include
CEO, president, and vice president. These managers make important decisions about
2. Middle managers constitute the largest group of managers in most companies. These
managers hold positions such as plant manager, operations manager, and division head.
They primarily put the strategies designed by top managers into action, and they
Teaching Tip: Use examples from your college or university to illustrate the various levels and areas
of management discussed in this section.
B. Managing in Different Areas of the Organization
1. Marketing managers work in areas related to the marketing function of the organization.
They help to find ways to get consumers and clients to buy the organization’s products.
2. Financial managers deal primarily with an organization’s financial resources and are
involved in such activities as accounting, cash management, and investments.
3. Operations managers are concerned with creating and managing the systems that create
Discussion Starter: Point out for students that their major will play a large role in determining the
area of management they enter after graduation (assuming they go to work for a large organization).
For example, a marketing major’s first job is likely to be a first-line management position in the
marketing function, whereas a finance major will more likely start out as a first-line finance manager.
IV. BASIC MANAGERIAL ROLES AND SKILLS
Table 1.2 illustrates the basic managerial roles.
A. Managerial Roles
1. Interpersonal roles
Figurehead attends activities to represent the organization; leader encourages employees
Chapter 1: Managing and the Manager’s Job
2. Informational roles
Monitor actively seeks information that may be of value to the organization;
3. Decisional roles
Entrepreneur develops new ideas and initiates changes in the organization; disturbance
handler handles problems that arise such as strikes, copyright infringements, and energy
shortages; resource allocator determines who should receive the available resources and
B. Managerial Skills
1. Technical skills—the skills necessary to accomplish or understand the specific kind of
work being done in an organization
Extra Example: Bill Gates, co-founder of Microsoft, has excellent conceptual skills. Indeed, his skills
are often credited with keeping the software giant at the forefront of its industry.
4. Diagnostic skills—the ability to recognize the symptoms of a problem and then
determine an action plan to fix it
5. Communication skills—the ability to effectively convey ideas and information to others
and to effectively receive ideas and information from others
V. THE NATURE OF MANAGERIAL WORK
Managerial work is fast paced, uncertain, and filled with interruptions and fragmented activities.
The tasks performed by a manager every day are varied and intense. However, managers who are
able to make good decisions in a short amount of time find a great deal of satisfaction in their jobs.
Teaching Tip: If you have any students in class who are or have been managers, ask them to describe
the nature of their work.
Chapter 1: Managing and the Manager’s Job
A. The Science and the Art of Management
1. The science of management
Some aspects of management are objective and can be approached with rationality and
logic.
Discussion Starter: The science of management might be analogous to the activities of developing
2. The art of management
Other aspects of management are subjective and are based on intuition and experience.
Discussion Starter: The art of management might be analogous to the activities of writing computer
B. Becoming a Manager
Figure 1.4 indicates the sources of management skills.
1. The role of education
Education plays an important part in the development of a manager. Many managers
have a bachelor’s degree or an MBA; others have returned to school to participate in
Global Connection: Many universities in other countries have added business programs in recent
years. Discuss how the curriculum of a business school in Europe or Japan might compare to your
school’s curriculum.
2. The role of experience
Experience is just as important as education. Just because a manager has a solid
understanding of the field of management doesn’t mean he or she will be a successful
C. The Scope of Management
1. Managing in Profit-Seeking Organizations
Large businesses supply us with the majority of knowledge we have about management.
Examples include Tenneco, Citicorp, State Farm, Sears, and General Motors. Small and
Chapter 1: Managing and the Manager’s Job
International management has increased in importance over the years. Currently there are
Cross-Reference: Note that international management is discussed in detail in Chapter 5. You might
also note whether your school offers a separate course in international management.
2. Managing in Not-for-Profit Organizations
Government organizations are supported by tax dollars, so efficiency and effectiveness is
critical. Examples include the Federal Trade Commission and state highway
Teaching Tip: Note that some organizations may fall into more than one category. For example, a state
university is both an educational organization and a government organization. Likewise, a teaching
hospital is both an educational organization and a healthcare organization.
VI. THE NEW WORKPLACE
A. Diversity—differences among people—is increasing in the workforce.
Workforce demographic changes include increasing participation of women in the workforce
and women’s increasing movement into occupations traditionally dominated by men. Another
significant change is the increasing ethnic diversity of the workforce, reflecting the increasing
Cross-Reference: Many aspects of the new workplace are covered in detail in other parts of this book.
For example, diversity is covered in detail in Chapter 6.
Chapter 1: Managing and the Manager’s Job
END OF CHAPTER QUESTIONS
Questions for Review
1. Contrast efficiency and effectiveness. Give an example of a time when an organization was effective
but not efficient, efficient but not effective, both efficient and effective, and neither efficient nor
effective.
Efficiency requires performing tasks in a way that conserves resources, including time and money.
Effectiveness focuses on whether the performance of the tasks leads to the desired outcomes. One
2. What are the four basic activities that comprise the management process? How are they related to
one another?
The basic activities that comprise the management process include planning and decision making,
3. Briefly describe the ten managerial roles described by Henry Mintzberg. Give an example of each.
The roles are (1) Figurehead—attending outside functions for the organization; (2) Leader—
4. Describe a typical manager’s day. What are some of the expected consequences of this type of daily
experience?
Managerial work is fast-paced, chaotic, fragmented, and stressful. Managers must deal with many
Questions for Analysis
5. Recall a recent group project or task in which you have participated. Explain how members of the
group displayed each of the managerial skills.
Students’ answers will vary, of course, but here are some typical responses. The project may have
6. The text notes that management is both a science and an art. Recall an interaction you have had with
a “superior” (e.g., a manager, teacher, or group leader). In that interaction, how did the superior use
science? If he or she did not use science, what could have been done to use science? In that
interaction, how did the superior use art? If he or she did not use art, what could have been done to
use art?
Students’ answers will vary, but here is one possible response. In grading my most recent essay
7. Visit the websites of at least five large corporations and locate a biography of each CEO. What
formal management education do these leaders have? In your opinion, what is the appropriate
amount of formal education needed to be a corporate CEO? Why?
Students will notice that most corporate CEOs have formal business education, usually a B.A. in
Questions for Application
8. Interview a manager from a local organization. Learn about how he or she performs each of the
functions of management, the roles he or she plays, and the skills necessary to do the job.
9. Find an organization chart. You can find one in the library or by searching online. Locate top,
middle, and first-line managers on the chart. What are some of the job titles held by persons at each
level?
At the highest levels, managers tend to be called president, chairman, CEO, and executive vice
10. Watch a movie or television program that involves an organization of some type. One of the newer
Harry Potter or James Bond movies would be good choices (or perhaps Citizen Kane for classic
movie buffs). For television, options like The Office, 30 Rock, or The Good Wife would be ideal.
Identify as many management activities, skills, and roles as you can.
Depending on the movie selected, answers will vary. Students who choose a Harry Potter movie,
Chapter 1: Managing and the Manager’s Job
END OF CHAPTER EXERCISES
Building Effective Time Management Skills
Teaching Tip: Each chapter concludes with skill-building exercises. These are designed for both
groups and individuals. Some are best done during class, while others are intended to be begun or
completed outside of class.
I. Purpose
This exercise allows students to assess their current time-management skills and to understand ways
to improve in this area.
III. Exercise Task
A. Visit the web site of Franklin Covey, at www.franklincovey.com. Click on the tab marked
“Effectiveness Zone,” then select “Assessment Center.” Take the “Urgency Analysis Profile,” a
brief online survey that should take about 10 minutes.
B. Now look over your profile and examine the assessment of your current use of time the
suggestions for how you can improve your time management. In what ways do you agree and
C. Think of a task that you regularly perform and which, if you were being perfectly honest, you
could label not urgent and not critical. How much time do you spend on this task? What
might be a more appropriate amount of time? To what tasks could you give some of the time
D. What is one thing that you can do today to make better use of your time? Try it, and see if your
time management improves.
Covey’s web site makes few suggestions in this regard (although his books do a very thorough
Chapter 1: Managing and the Manager’s Job
Building Effective Conceptual Skills
I. Purpose
This exercise helps students to identify potential generalizations of management functions, roles,
and skills for different kinds of organizations.
II. Format
This very flexible conceptual skills exercise can be done either in or outside of class and can be
done individually or in small groups. The exercise should take between 15 and 30 minutes to
complete.
III. Exercise Task
A. Do you notice any patterns of meaningful similarities in functions, roles, or skills across the
five columns? Are there, for example, similarities in performing leadership roles or applying
communication skills in most or all of the five types of organization? Do you notice any
B. Based on your assessment of the patterns of similarities and differences that you identified in
task 1, give 2 or 3 reasons why managers might find it easy to move from one type of
organization to another. Give 2 or 3 reasons why managers might find it difficult to move from
C. Identify 2 or 3 places on your grid where the intersection between a type of organization and a
function, role, or skill suggests something at which you might be particularly good. How about
Chapter 1: Managing and the Manager’s Job
MANAGEMENT AT WORK
JUMPIN’ JACK FLASH
The case details the professional journey of Jack Armstrong as he makes his way rapidly in corporate
America. Starting out in sales for a technology company, Jack parlayed his success at spotting product
opportunities to ask for additional responsibilities. When this was not given at his current firm, he
quickly jumped ship to another firm that offered his a new title and bigger responsibilities. In one firm,
after his initial success caught the attention of top management, Jack hoped to be named president of a
division within the company. Instead, top management asked him to take on an overseas assignment to
gain international experience. Jack refused this offer and went to a new company as a division president.
In the new company, he ran into trouble with a high profile product launch.
1. Case Question 1: What management skills did Jack demonstrate as a marketing manager at the
travel products company? What management skills did he demonstrate as a VP at the consumer
products firm?
At both the travel products company and the consumer products company, Jack should tremendous
rinse for dogs.
2. Case Question 2: Should Jack have taken the special assignment offered him by the consumer
products firm? What kinds of skills was the president of overseas operations thinking about when he
offered the assignment to Jack?
His success at the consumer products firm brought him to the attention of top management. The
3. Case Question 3: What management skills would have helped Jack avoid the catastrophe that
befell his project at the consumer electronics firm?
The catastrophe that occurred at the consumer electronics firm involved leadership and coordination –