Chapter 1: Management
1
Chapter 1: Management
Pedagogy Map
This chapter begins with the learning outcome summaries and terms covered in the chapter, followed by a
set of lesson plans for you to use to deliver the content in Chapter 1.
• Lesson Plan for Lecture (for large sections)
• Lesson Plan for Group Work (for smaller sections)
• Assignments with Teaching Tips and Solutions
What Would You Do Case Assignment – Netflix
Self Assessment – Is Management For You?
Highlighted Assignments
Key Points
What Would You Do?
After a period of phenomenal growth, Netflix faces several
challenges as it looks to develop new ways to deliver movies.
Self-Assessment
Students get a first glimpse to determine if their skills
overlap those required of managers.
Management Decision
Management Team Decision
Practice Being a Manager
Students explore the hiring process by role playing
interviews for management positions they research in the
newspaper and online.
Develop Your Career Potential
Students interview two managers and compare the managers’
responses to the information in the chapter.
Chapter 1: Management
2
Supplemental Resources
Where to Find Them
Course Pre-Assessment
IRCD
Course Post-Assessment
IRCD
Learning Outcomes
1 Describe what management is.
Good management is working through others to accomplish tasks that help fulfill organizational
2 Explain the four functions of management.
Henri Fayol’s classic management functions are known today as planning, organizing, leading, and
3 Describe different kinds of managers.
There are four different kinds of managers. Top managers are responsible for creating a context for
change, developing attitudes of commitment and ownership, creating a positive organizational culture
4 Explain the major roles and subroles that managers perform in their jobs.
Managers perform interpersonal, informational, and decisional roles in their jobs. In fulfilling the
interpersonal role, managers act as figureheads by performing ceremonial duties, as leaders by motivating
Who Wants to Be a Manager game
IRCD and online
Test Bank
IRCD and online
Chapter 1: Management
3
5 Explain what companies look for in managers.
Companies do not want one-dimensional managers. They want managers with a balance of skills. They
want managers who know their stuff (technical skills), are equally comfortable working with blue-collar
6 Discuss the top mistakes that managers make in their jobs.
Another way to understand what it takes to be a manager is to look at the top mistakes managers make.
7 Describe the transition that employees go through when they are promoted to management.
Managers often begin their jobs by using more formal authority and less people management. However,
most managers find that being a manager has little to do with bossing their subordinates. After six months
8 Explain how and why companies can create competitive advantage through people.
Why does management matter? Well-managed companies are competitive because their work forces are
smarter, better trained, more motivated, and more committed. Furthermore, companies that practice good
Terms
conceptual skills
controlling
disseminator role
disturbance handler role
human skills
leader role
leading
liaison role
organizing
planning (management
functions)
resource allocator role
Chapter 1: Management
4
Lesson Plan for Lecture
Pre-Class Prep for You:
Pre-Class Prep for Your Students:
• Prepare syllabus.
• Bring PPT slides.
• Buy book.
Warm Up
Introduce self
Hand out syllabus and go over details
Begin Chapter 1 by asking students “What is management?” (If a blackboard is
available, begin to write their ideas on it so that a cumulative definition can be derived.)
Content
Delivery
Lecture slides: Make note of where you stop so you can pick up at the next class
meeting. Slides have teaching notes on them to help you as you lecture.
Topics
PowerPoint Slides
Activities
What Is Management?
1 Management Is….
1: Management
2: What Would You Do?
3: What Is Management?
10: The Control Process
Ask students who have been
or are currently managers to
tell the class what managers
What Do Managers Do?
3 Kinds of Managers
3.1 Top Managers
3.2 Middle Managers
3.3 First-Line
11: What Do Managers
Do?
12: Kinds of Managers
13: Top Managers
14: Responsibilities of
Ask the class to give specific
examples of each of these
types (using titles).
4 Managerial Roles
4.1 Interpersonal
4.2 Informational
4.3 Decisional
20: Interpersonal Roles
21: Informational Roles
22: Decisional Roles
23: What Does It Take to
Ask the class or lecture about
management functions.
Chapter 1: Management
5
What Companies Look
Discuss common mistakes
Why Management
Matters
8 Competitive
Advantage through
28: Why Management
Matters
29: Competitive
Advantage through
People
Ask the class how a company
could benefit from good
management.
Discuss the competitive
Adjust lecture to include the activities in the right column. Some activities should be
done before introducing the concept, some after.
Special
Items
Spark a quick discussion by asking students to respond to the following statement:
“The only way to learn how to manage is to manage.”
Make sure students back up their answers.
Lesson Plan for Group Work
Pre-Class Prep for You:
Pre-Class Prep for Your Students:
• Prepare syllabus.
• Set up the classroom so that small
groups of 4-5 students can sit together.
• Buy book.
begin to write their ideas on it so that a cumulative definition can be derived.)
Chapter 1: Management
6
Delivery
Break for the following group activity:
“Management Functions”
Divide the class into small groups.
Before lecturing on next section, do the following activity:
“Management Levels.”
Put the class back into small groups.
Give each group a sample organizational chart of a real or fictional company.
Lecture on What Do Managers Do? (Sections 3 and 4)
Ask students, “What does it take to be a manager?”
Write responses on board or overhead.
Lecture on What Does It Take to Be a Manager (Sections 5-7)
Review the list on the board in light of the chapter content.
Special
Items
Spark a quick discussion by asking students to respond to the following statement:
“The only way to learn how to manage is to manage.”
Make sure students back up their answers.
Conclusion
and
Preview
Assignments:
1. Have students research job listings for managers to determine what companies
look for in managers. Suggest they consult online sources like monster.com and
Remind students about any upcoming events.
Chapter 1: Management
7
Assignments with Teaching Tips and Solutions
Case Assignment – What Would You Do?
What Really Happened? Solution
Netflix
In the opening case, you learned that just a decade and a half after startup, Netflix had pushed Wal-Mart,
Amazon, and Blockbuster Video, who once dominated the industry, out of the DVD rental business.
Planning involves determining organizational goals and a means for achieving them. So, how can Netflix
generate the cash it needs to pay the studios? How can it convince them it’s not a competitor so they will
agree to license their content?
Planning, which is one of the functions of management, involves determining organizational goals and a
means for achieving them. As students will learn in Chapter 5, planning is one of the best ways to
Netflix had been spending about $240 million a year to buy the DVDs that it rented to its subscribers.
But, unlike DVDs which can be bought and then rented without studio approval, U.S. copyright laws
require streaming rights to be purchased from TV and movie studios before downloading content into
people’s homes. That means that Netflix not only has to come up with more money to stream video
content, it also means they have to come up with more money than their competitors, such as Apple,
Amazon, Hulu, Time-Warner Cable, and DirecTV. So, where can Netflix come up with the extra money
without cutting into its profits? Well, consider that it costs roughly $1 dollar to ship and return a DVD to
a customer. The first time that Netflix tried streaming video in 2000, it took 16 hours and cost $10 to
The key question, however, is whether Netflix can convince the studios that it’s not a competitor. And,
that may depend on the strategy Netflix uses and the kind of business it wants to be. Netflix’s strategy
hasn’t changed. It’s still all about growth. According to CEO Reed Hastings, “Our focus is on getting to
Chapter 1: Management
8
How is Netflix enticing the studios to give it streaming rights? Well, besides huge payouts, nearly every
deal includes delayed access to movie content. Typically, Netflix can’t stream video content until it’s
been available for consumer purchase for at least 28 days, and sometimes as long as 3 months. That way,
the studios can still harvest consumer DVD sales, which are the most profitable part of movie sales, and
then pickup additional revenue through Netflix. How persuasive has Netflix been? Well, Warner
Brothers movie studio, which is owned by Time-Warner Cable, wanted to force Netflix to take the same
With blazing growth on one hand and the strategic challenge of obtaining studio content on the other,
how much time should he and his executive team devote directly to hiring? Deciding where decisions will
be made is a key part of the management function of organizing. So, should he and his executive team be
directly involved, or is this something that he should delegate?
Management, at its essence, is getting work done through others. When you’re promoted from employee
to manager, you stop being a doer and start helping doers succeed at their jobs. Indeed, as we learned in
Because of its blazing growth, hiring top talent is a top priority at Netflix. But, it doesn’t hire the same
people that other leading edge Silicon Valley companies do. Patricia McCord, Netflix’s chief talent
officer, says, “Google, for example, wants to reorganize the world’s information. You do that by hiring as
So, should Netflix’s top executives spend significant direct time hiring employees or should they delegate
that responsibility. From the perspective of managers not being “doers,” it seems that except for the
Chapter 1: Management
9
For those critical reasons, Netflix’s top executives devote two to three hours a day to making sure that
they hire the right people who fit into its “mature adults” culture (see more below). Allison Hopkins, vice
president for human resources, said, “Most people at our levels don’t do it, but for us it’s a priority; we
have absolute veto. For example, a guy I interviewed recently expressed surprise at our open approach to
Finally, located near Silicon Valley which is home to Google, EBay, Apple, Hewlett-Packard, and Face
Book, some of the most attractive employers in the world, what can Netflix provide in the way of pay,
perks, and company culture that will attract, inspire, and motivate top talent to achieve organizational
goals?
Leading, which is the third management function, involves inspiring and motivating workers to work hard
to achieve organizational goals. But since Netflix is in a phase of rapid growth, and because Netflix’s top
executives devote 2-3 hours a day to hiring, leading at Netflix also includes attracting and hiring top
1) What could this person get elsewhere?
2) What would we pay for a replacement?
3) What would we pay to keep this person if they had a more lucrative offer elsewhere?
Then, once the salary is determined, the person can take it in salary, or in salary plus stock options.
While its aggressive salaries help attract top talent, Netflix believes that its “mature adults” culture helps
keep them at the company. There’s no dress code, no security badges or checkpoints, no required hours,
Chapter 1: Management
10
But, the aggressive pay, the “mature adult” culture, and the freedom come with strict accountability.
CEO Hastings summarizes the company attitude this way, “We are a performance culture based on
intellectual prowess. We try to be fair, but [the length of an employee’s Netflix career] is not our primary
Patricia McCord, Netflix’s chief talent officer, says Netflix managers use the “keeper test” when
conducting annual performance reviews. Managers, she says, are expected to ask themselves, “Which of
my people, if they told me they were leaving in two months for a similar job at a peer company, would I
fight hard to keep at Netflix?” If you’re not a keeper, and typically 3–5% are not, you’re asked to leave.
How well is this approach working? Well, the latest report as of this writing showed Netflix with a 52%
increase in quarterly profit, a 34% increase in quarterly revenue, and a 3.1 million more subscribers, for a
total membership of over 20 million subscribers, 7.7 million who signed on in the last year. Those totals
now exceed the number of subscribers held by subscription movie channels Showtime and Starz, but are
still below HBO, which has 28.3 million subscribers. Where did the growth come from? Internet video.
CEO Hastings said, “the growth and acceptance of on-demand, click-and-watch Internet video as
embodied by Netflix, Hulu and YouTube has been phenomenal.”
Self-Assessment
IS MANAGEMENT FOR YOU?
This assessment is meant to establish your students’ baseline interests in the skills covered in the chapter.
It will not tell them whether they should or should not be a manager, or whether they have “what it takes”
to be a manager. It will, however, give them feedback on whether they are interested in the kinds of things
that managers do in their jobs. The research supporting this assessment can be found in P.L. Hunsaker,
Management: A Skills Approach (Upper Saddle River, New Jersey: Pearson Prentice Hall, 2005) 24-25.
In-Class Use
Have students open their books to page 32 of the text and give them 5 to 7 minutes to complete the
Chapter 1: Management
11
Scoring
Here is what students’ scores mean.
Scores range from 20 to 100. Higher scores indicate a better match between your current behaviors and
tendencies and those needed for a career in management. If your score is low, it does not necessarily
Management Decision
Purpose
Making decisions is part of every manager’s job. To give you practice at managerial decision making,
Setting It Up
You can introduce this case by asking students: “Should a company take steps that could anger consumers
to maximize profits?”
SHOULD WE TRY TO MAKE MORE MONEY?
Questions
1. How is this decision emblematic of your job as a manager?
In the broadest sense, management is about getting work done through others. Managers do not do the
work of a company themselves, but rather oversee and supervise those who do the work to ensure that
it is done with efficiency and effectiveness. Efficiency refers to the performance of work with a
minimum of effort, expense, and waste, while effectiveness is the performance of work that helps
2. What are the advantages and disadvantages of following competitors by charging for checked
baggage?
The primary advantage of the company is that it would gain access to an easy source of revenue,
which is critically important in an industry that is as unstable as the airline industry. By charging for
Management Team Decision
Purpose
In this case study, student groups are asked to consider how they would resolve a significant conflict
between a company and its largest investor.
Setting It Up
Ask your students: “How far should a company go to make its investors happy? What if the investor
wanted the company to go in a completely new direction?”
SAYING NO TO AN INVESTOR
Questions
1. How is this decision emblematic of a manger’s role as a liaison?
In the liaison role, managers must deal with people outside of their units or companies. In this case,
2. How would your team choose to respond to Coca Cola’s request?
3. If you respond positively to Coca Cola’s request for changes to the label, how would you explain
the change to consumers? If you respond negatively to the request, how would you explain your
decision to Coca Cola? What would you to make sure your relationship does not turn hostile?