Because learning changes everything.

Chapter 1
Managers and
Managing

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 Learning Objectives 1
1.Describe what management is, why management is

important, what managers do, and how managers use

organizational resources efficiently and effectively to
achieve organizational goals.
2.Distinguish among planning, organizing, leading, and
controlling (the four principal managerial tasks), and
explain how managers’ ability to handle each one affects
organizational performance.
3.Differentiate among three levels of management, and
understand the tasks and responsibilities of managers at
different levels in the organizational hierarchy.

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 Learning Objectives 2
4.Distinguish among three kinds of managerial skill, and

explain why managers are divided into different

departments to perform their tasks more efficiently and
effectively.
5.Discuss some major changes in management practices
today that have occurred as a result of globalization and
the use of advanced technologies.
6.Discuss the principal challenges managers face in today’s
increasingly competitive global environment.

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 Business & Entrepreneurship
• Business

• Profit

• Entrepreneur

•Match Risk With Profit

– Revenue
– Loss
• Stakeholders
 Business, Profit and
Entrepreneur
•What’ s Business?
• Any activity that seeks to provide goods and
services to others, while operating at a profit
•Who’ s the Entrepreneur?
•A person who risks time and money to start and
manage a business
•What’s Revenue?
•The total amount of money a business takes in
during a given period by selling goods and
services
•REVENUE –EXPENSES = PROFIT.
 Matching Risk With Profit

•What’ s Profit?
•The amount of money a business earns
beyond what it spends for salaries and other
expenses

•What’s Loss?
•When a business’s expenses are more than its
revenues

•What’s Risk?
•The chance an entrepreneur takes of losing time and
money on a business that may not prove profitable
 Responding to the various
Business Stakeholders
•Who are Stakeholders?
•All the people who stand to gain or lose by
policies and activities of a business.
•They include the customers, employees,
stockholders, suppliers, distributors, bankers,
government leaders, and surrounding
community.
•All of them are affected by the products,
policies and practices of businesses, and their
concerns and needs have to be addressed
 Appreciating the Role of
Businesses in Society
•Businesses contribute to society in many
useful ways:
•1-offering valuable goods and services.
•2-Providing employment.
•3-Paying taxes.
•4-Contributing to national growth,
stability, and security.
 What Is Management? 1
Organizations
•Organizations are collections of people who work
together and coordinate their actions to achieve a
wide variety of goals or desired future outcomes.
•All managers work in organizations.
Managers
•Managers are the people responsible for supervising the
use of an organization’s resources to meet its goals.
Management
•Management includes the planning, organizing, leading,
and controlling of human and other resources to achieve
organizational goals effectively and efficiently.
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 What Is Management? 3
Resources.

• Include assets such as:

1.People and their skills, know-how, and experience.
2. Machinery.
3.Raw materials.
4.Computers and information technology.
5.Patents, financial capital, and loyal customers and employees.

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 Achieving High Performance: A Manager’s
Goal 1

Organizational performance:
•A measure of how efficiently and effectively managers
use available resources to satisfy customers and
achieve organizational goals.

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 Achieving High Performance: A Manager’s
Goal 2

Efficiency:
A measure of how well or how productively resources
are used to achieve a goal.
•Wendy’s fat fryers use less oil and are quicker.
Effectiveness:
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which the
organization achieves those goals.
•McDonald’s all-day breakfast success.

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 Figure 1.1 Efficiency, Effectiveness, and
Performance in an Organization
High-performing organizations are efficient andeffective.

Access the text alternative for slide images.

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 Why Study Management? 1
1. Individuals generally learn through personal
experience or the experiences of others. By studying
management in school, you are exposing yourself to
the lessons others have learned.
2.The economic benefits of becoming a good manager
are also impressive. Opens a path to a well-paying
job and a satisfying career
3.Resources are scarce in any society, so the more
efficient and effective use that organizations can
make of those resources, the greater the well-being
and prosperity of people in that society
4.Helps people deal with their bosses and coworkers
5.Learning management principles can help you make
good decisions in nonwork contexts.

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 Figure 1.2 Four Tasks of Management

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 Steps in the Planning Process
1.Decide which goals the organization will

pursue.
2.Decide what strategies to adopt to attain those
goals.
3.Decide how to allocate organizational
resources.
Managers identify and select appropriate
organizational goals and develop strategies
for how to achieve high performance.

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 Organizing 1
Organizing:
•Structuring working relationships so organizational

members interact and cooperate to achieve

organizational goals.

Managers deciding how best to organize

resources, particularly human resources.

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 Organizing 2
Organizational structure
•A formal system of task and reporting relationships

that coordinates and motivates organizational

members so that they work together to achieve
organizational goals.

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 Leading
•Articulating a clear vision and energizing and enabling
organizational members so they understand the part
they play in achieving organizational goals.

•Involves managers using their power, personality,

influence, persuasion, and communication skills to
coordinate people and groups.

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 Controlling 1
Controlling:
•Evaluating how well
an organization is Managers monitor
achieving its goals performance of
and taking action to individuals,
maintain or improve departments, and the
performance. organization as a whole
to determine if they are
meeting performance
standards.

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 Controlling 2
The outcome of the control processis the
ability to measure performance accurately and
regulate organizational efficiency and
effectiveness.
Managers must decide which goals to measure.

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 Managerial Roles Identified: Decisional

Type of Role Specific Role Examples of Role Activities

Decisional Entrepreneur Commit organizational resources to develop innovative goods
and services;decide to expand internationally to obtain new
customers for the organization’s products.
Move quickly to take corrective action to deal with unexpected
Decisional Disturbance handler
problems facing the organization from the external
environment, such as a crisis like an oil spill, or from the
internal environment, such as producing faulty goods or
services.

Decisional Resource allocator Allocate organizationalresources among different tasks and

departments of the organization; set budgets and salaries of
middle and first-level managers.
Work with suppliers, distributors, and labor unions to reach
Decisional Negotiator
agreementsabout the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Managerial Roles Identified: Interpersonal

Type of Role Specific Role Examples of Role Activities

Interpersonal Figurehead Outline future organizationalgoals to employees at company
meetings; open a new corporate headquarters building; state
the organization’s ethical guidelines and the principles of
behavior employees are to follow in their dealings with
customers and suppliers.
Provide an example for employees to follow; give direct
Interpersonal Leader
commands and orders to subordinate;make decisions
concerning the use of human and technical resources;
mobilize employee support for specific organizational goals.
Coordinatethe work of managers in different departments;
Interpersonal Liaison
establish alliances between different organizations to share
resources to produce new goods and services; reach
agreements about the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Managerial Roles Identified: Informational

Type of Role Specific Role Examples of Role Activities

Informational Monitor Evaluate the performance of managers in different tasks and
take corrective action to improve their performance; watch for
changes occurring in the external and internal environments
that may affect the organization in the future.
Inform employees about changes taking place in the external
Informational Disseminator
and internal environments that will affect them and the
organization;communicate to employees the organization’s
vision and purpose.
Launch a national advertisingcampaign to promote new goods
Informational Spokesperson
and services; give a speech to inform the local community
about the organization’s future intentions.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Levels and Skills of Managers 1
Department:
•A group of managers and employees who work

together and possess similar skills or use the same

knowledge, tools, or techniques.
•Example: the manufacturing, accounting, engineering,
or marketing department.

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 Figure 1.3 Levels of Managers

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 Levels of Management 1
First-line managers (often called supervisors):
Responsible for the daily supervision of the
nonmanagerial employees.
•Paint foreman overseeing a crew of painters at a university.

Middle managers:
Supervises first-line managers.
Responsible for finding the best way to use resources to
achieve organizational goals.
•High school principal or a marketing manager.

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 Levels of Management 2
Top managers:
Responsible for the performance of all departments.
Establish organizational goals.
Decide how different departments should interact.
Monitor how well middle managers in each department
use resources to achieve goals.
•President of a university,Chief executive officer

(CEO) is company’s most senior and important

manager.

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Relative Amount of Time That Managers Spend on
the Four Managerial Functions

•Top managers give more time to

planning and organizing.
•The lower the position in the
organization the more time
managers spend on leading and
controlling
 Levels and Skills of Managers 2
Figure 1.4 Relative
Amount of Time
Managers Spend
on the Four
Managerial Tasks.

Access the text alternative for slide images.

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 Types of Managerial Skills
Conceptual skills:
•The ability to analyze and diagnose a situation and

distinguish between cause and effect.

Human skills:
•The ability to understand, alter, lead, and control the
behavior of other individuals and groups.

Technical skills:
•Job-specific knowledge and techniques required to
perform an organizational role.

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 Figure 1.5: Types and Levels of Managers

Access the text alternative for slide images.

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 Core Competency
Specific set of departmental skills, knowledge and
experience that allows one organization to outperform
another.
Skills for a competitive advantage:
•Dell’s materials management produced PCs at lower cost than

competitors.

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 Recent Changes in Management Practices
Restructuring:
•Downsizing an organization by eliminating the jobs of

large numbers of top, middle, and first-line managers

and nonmanagerial employees.

Outsourcing:
•Contracting with another company, usually abroad, to
perform a work activity the company previously
performed itself.

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 Empowerment and Self-Managed
Teams
Empowerment:
•Empowerment involves giving employees more authority
and responsibility over how they perform their work
activities.
•Example: Valve Corporation has no managers, no
hierarchy or top-down control. Employees pick their own
projects.

Self-managed teams:
•Groups of employees who assume collective responsibility
for organizing, supervising, and controlling their own work
activities.

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 Challenges for Management in a Global
Environment
Build a competitive advantage.

Maintain ethical and socially responsible standards.

Manage a diverse workforce.

Utilize new technologies.

Practice global crisis management.

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 Building Competitive Advantage
Competitive advantage:
•Ability of one organization to outperform other

organizations because it produces desired goods or

services more efficiently and effectively than
competitors.

Innovation:
•The process of creating new or improved goods and
services or developing better ways to produce or
provide them.

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 Building Blocks of Competitive Advantage

Competitive Advantage

Efficiency

Innovation and Flexibility

Responsiveness to customers

Quality

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 Turnaround Management
Creation of a new vision for a struggling company using
a new approach to planning and organizing to make
better use of a company’s resources and allow it to
survive and eventually prosper.

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 Maintaining Ethical and Socially
Responsible Standards
Managers are under considerable pressure to
make the best use of resources.
Too much pressure may induce managers to
behave unethically and even illegally.

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 Managing a Diverse Workforce
To create a highly trained and motivated
workforce, managers must establish human
resource management (H R M) procedures that
are legal and fair and do not discriminate against
organizational members.
•Accenture earned top spot (out of 100

companies) for second year on Refinitiv’s

Diversity and Inclusion Index.

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 Utilizing New Technologies
Efficient and effective technologies that link and
enable managers and employees to better
perform their jobs, regardless of role.
UPS uses ORION.

• A GPS system that optimizes drivers’ routes.

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 Practicing Global Crisis Management 1
1.Create teams to facilitate rapid decision- making

and communication.
2.Establish the organizational chain of command
and reporting relationships necessary to mobilize
a fast response.
3.Recruit and select the right people to lead and
work in such teams.
4.Develop bargaining and negotiating strategies to
manage the conflicts that arise.

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 Practicing Global Crisis Management 2

Natural causes: Human causes:

Crises that arise Human-created crises
because of natural result from factors such as
causes, including industrial pollution, poor
hurricanes, attention to worker and
earthquakes, famines, workplace safety, global
and diseases. warming, and the
destruction of the natural
habitat or environment, and
geopolitical tensions and
terrorism.

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