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What Managers Do

Managers (or administrators)

Individuals who achieve goals through other

Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others
to attain goals
Where Managers Work
A consciously coordinated social
unit, composed of two or more
people, that functions on a
relatively continuous basis to
achieve a common goal or set of
Management Functions

Planning Organizing


Controlling Leading
Management Functions (cont’d)
A process that includes defining
goals, establishing strategy, and
developing different ways to
coordinate activities.
Management Functions (cont’d)
Determining what tasks are to be
done, who is to do them, how the
tasks are to be grouped, who reports
to whom, and where decisions are to
be made.
Management Functions (cont’d)
A function that includes giving vision,
motivating employees, directing
others, selecting the most effective
communication channels, and
resolving conflicts.
Management Functions (cont’d)
Monitoring activities to ensure they are
being accomplished as planned and
correcting any significant deviations.
What Is Planning?
• Planning
– A primary functional managerial activity that
• Defining the organization’s goals
• Establishing an overall strategy for achieving those
• Developing a comprehensive set of plans to
integrate and coordinate organizational work.
– Types of planning
• Informal: not written down, short-term focus;
specific to an organizational unit.
• Formal: written, specific, and long-term focus,
involves shared goals for the organization.
Why Do Managers Plan?
• Purposes of Planning
– Provides direction
– Reduces uncertainty
– Minimizes waste and redundancy
– Sets the standards for controlling
Planning and Performance
• The Relationship Between Planning And
– Formal planning is associated with:
• Higher profits and returns of assets.
• Positive financial results.
– The quality of planning and implementation affects
performance more than the extent of planning.
– The external environment can reduce the impact of
planning on performance,
– Formal planning must be used for several years before
planning begins to affect performance.
How Do Managers Plan?
• Elements of Planning
– Goals (also Objectives)
• Desired outcomes for individuals, groups, or entire
• Provide direction and evaluation performance
– Plans
• Documents that outline how goals are to be
• Describe how resources are to be allocated and
establish activity schedules
Types of Goals
• Financial Goals
– Are related to the expected internal financial
performance of the organization.
• Strategic Goals
– Are related to the performance of the firm relative to
factors in its external environment (e.g.,
• Stated Goals versus Real Goals
– Broadly-worded official statements of the
organization (intended for public consumption) that
may be irrelevant to its real goals (what actually
goes on in the organization).
Types of Plans

Exhibit 1.1
Traditional Objective Setting

Exhibit 7.4
Planning in the Hierarchy of

Exhibit 7.7
Managers Versus Leaders
• Managers • Leaders
– Are appointed to their – Are appointed or emerge
position. from within a work
– Can influence people
only to the extent of the – Can influence other
formal authority of their people and have
position. managerial authority.
– Do not necessarily have – Do not necessarily have
the skills and capabilities the skills and capabilities
to be leaders. to be managers.
Leadership is the process of influencing a
group toward the achievement of goals.
The Managerial Grid
• Managerial Grid
– Appraises leadership styles using two dimensions:
• Concern for people
• Concern for production
– Places managerial styles in five categories:
• Impoverished management
• Task management
• Middle-of-the-road management
• Country club management
• Team management

Source: Reprinted by permission of

Harvard Business Review. An exhibit
from “Breakthrough in Organization
Development” by Robert R. Blake,
Jane S. Mouton, Louis B. Barnes, and
Larry E. Greiner, November–
December 1964, p. 136. Copyright ©
1964 by the President and Fellows of
Harvard College. All rights reserved.

Exhibit 17.3
Cutting-Edge Approaches to Leadership

• Transactional Leadership
– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and
task requirements.
• Transformational Leadership
– Leaders who inspire followers to transcend their own
self-interests for the good of the organization by
clarifying role and task requirements.
– Leaders who also are capable of having a profound
and extraordinary effect on their followers.
Cutting Edge Approaches to Leadership
• Charismatic Leadership
– An enthusiastic, self-confident leader whose
personality and actions influence people to behave in
certain ways.
– Characteristics of charismatic leaders:
• Have a vision.
• Are able to articulate the vision.
• Are willing to take risks to achieve the vision.
• Are sensitive to the environment and follower
• Exhibit behaviors that are out of the ordinary.
Cutting Edge Approaches to Leadership

• Visionary Leadership
– A leader who creates and articulates a realistic,
credible, and attractive vision of the future that
improves upon the present situation.
– Visionary leaders have the ability to:
• Explain the vision to others.
• Express the vision not just verbally but through
• Extend or apply the vision to different leadership
Cutting Edge Approaches to Leadership
• Team Leadership Characteristics
– Having patience to share information
– Being able to trust others and to give up authority
– Understanding when to intervene
• Team Leader’s Job
– Managing the team’s external boundary
– Facilitating the team process
• Coaching, facilitating, handling disciplinary
problems, reviewing team and individual
performance, training, and communication
Cutting Edge Approaches to Leadership

• Team Leadership Roles

– Liaison with external constituencies
– Troubleshooter
– Conflict manager
– Coach
Specific Team Leadership Roles

Exhibit 1.2
Beyond Charismatic Leadership
• Level 5 Leaders
– Possess a fifth dimension—a paradoxical blend of
personal humility and professional will—in addition to
the four basic leadership qualities of individual
capability, team skills, managerial competence, and
the ability to stimulate others to high performance.
– Channel their ego needs away from themselves and
into the goal of building a great company.
Contemporary Planning Techniques
• Scenario
– A consistent view of what the future is likely to be.

• Scenario Planning
– An attempt not try to predict the future but to reduce
uncertainty by playing out potential situations under
different specified conditions.

• Contingency Planning
– Developing scenarios that allow managers determine
in advance what their actions should be should a
considered event actually occur.
 Organizing
• The process of arranging people and other
resources to work together to accomplish a goal.
– Organization structure
• The system of tasks, workflows, reporting
relationships, and communication channels that
link together diverse individuals and groups.
Organizing viewed in relationship with the
other management functions.
What are the major types of
organization structures?
 Functional structures
– People with similar skills and performing
similar tasks are grouped together into formal
work units.
– Members work in their functional areas of
– Are not limited to businesses.
– Work well for small organizations producing
few products or services.
What are the new developments in
organization structures?

 Network structures
– A central core that is linked through networks
of relationships with outside contractors and
suppliers of essential services.
– Own only core components and use strategic
alliances or outsourcing to provide other
What are the major types of
organization structures?
 Divisional structures
– Group together people who work on the same
product or process, serve similar customers,
and/or are located in the same area or
geographical region.
– Common in complex organizations.
– Avoid problems associated with functional
The boundary less organization eliminates
internal and external barriers.
What organizing trends are changing the
 Contemporary organizing trends include:
– Shorter chains of command.
– Less unity of command.
– Wider spans of control.
– More delegation and empowerment.
– Decentralization with centralization.
– Reduced use of staff.
What organizing trends are
changing the workplace?
 Shorter chains of command
– The line of authority that vertically links all
persons with successively higher levels of
– Organizing trend:
• Organizations are being “streamlined” by cutting
unnecessary levels of management.
• Flatter structures are viewed as a competitive
What organizing trends are
changing the workplace?
 Less unity of command
– Each person in an organization should report
to one and only one supervisor.
– Organizing trend:
• Organizations are using more cross-functional
teams, task forces, and horizontal structures.
• Organizations are becoming more customer
• Employees often find themselves working for more
than one boss.
What organizing trends are
changing the workplace?
 Wider spans of control
– The number of persons directly reporting to a
– Organizing trend:
• Many organizations are shifting to wider spans of
control as levels of management are eliminated.
• Managers have responsibility for a larger number
of subordinates who operate with less direct
Spans of control in “flat” versus
“tall” structures.
What organizing trends are
changing the workplace?
 More delegation and empowerment
– Delegation is the process of entrusting work
to others by giving them the right to make
decisions and take action.
– The manager assigns responsibility, grants
authority to act, and creates accountability.
– Authority should be commensurate with
What organizing trends are
changing the workplace?
 Guidelines for effective delegation:
– Carefully choose the person to whom you delegate.
– Define the responsibility; make the assignment clear.
– Agree on performance objectives and standards.
– Agree on a performance timetable.
– Give authority; allow the other person to act independently.
– Show trust in the other person.
– Provide performance support.
– Give performance feedback
– Recognize and reinforce progress.
– Help when things go wrong.
– Don’t forget your accountability for performance results.
What organizing trends are
changing the workplace?
 More delegation and empowerment (cont.)
– A common management failure is
unwillingness to delegate.
– Delegation leads to empowerment.
– Organizing trend:
• Managers are delegating more and finding more
ways to empower people at all levels.
What organizing trends are
changing the workplace?
 Reduced use of staff
– Specialized staff
• People who perform a technical service or provide
special problem-solving expertise to other parts of
the organization.
– Personal staff
• People working in “assistant-to” positions that
provide special support to higher-level managers.
• Process of locating,
identifying, and attracting
capable candidates
• Can be for current or future
• Critical activity for some
• What sources do we use for
Job Performance, Selection Criteria, and
Big Five Personality Characteristics
Types of Selection Interviews
What Is Control?
• Control
– The process of monitoring activities to ensure
that they are being accomplished as planned
and of correcting any significant deviations.
• The Purpose of Control
– To ensure that activities are completed in
ways that lead to accomplishment of
organizational goals.
Why Is Control Important?
• As the final link in management functions:
– Planning
• Controls let managers know whether their goals
and plans are on target and what future actions to
– Empowering employees
• Control systems provide managers with
information and feedback on employee
– Protecting the workplace
• Controls enhance physical security and help
minimize workplace disruptions.
The Planning–Controlling Link

Exhibit 1.3
The Control Process
• The Process of Control
1. Measuring actual
2. Comparing actual
performance against a
3. Taking action to correct
deviations or
inadequate standards.
The Control Process

Exhibit 1.4
Taking Managerial Action
• Courses of Action
– “Doing nothing”
• Only if deviation is judged to be insignificant.
– Correcting actual (current) performance
• Immediate corrective action to correct the problem
at once.
• Basic corrective action to locate and to correct the
source of the deviation.
• Corrective Actions
– Change strategy, structure, compensation scheme, or
training programs; redesign jobs; or fire employees
Taking Managerial Action (cont’d)

• Courses of Action (cont’d)

– Revising the standard
• Examining the standard to ascertain whether or not
the standard is realistic, fair, and achievable.
– Upholding the validity of the standard.
– Resetting goals that were initially set too low or too high.
Controlling for Organizational
• What Is Performance?
– The end result of an activity
• What Is Organizational
– The accumulated end results of all of the
organization’s work processes and activities
• Designing strategies, work processes, and work
• Coordinating the work of employees
Understanding Groups
• Group
– Two or more interacting and interdependent
individuals who come together to achieve particular
– Formal groups
• Work groups defined by the organization’s
structure that have designated work assignments
and tasks.
– Appropriate behaviors are defined by and directed
toward organizational goals.
– Informal groups
• Groups that are independently formed to meet the
social needs of their members.
Stages in Group Development
• Forming
– Members join and begin the
process of defining the
• Performing
group’s purpose, structure, – A fully functional group
and leadership. structure allows the
• Storming group to focus on
performing the task at
– Intragroup conflict occurs
as individuals resist control
by the group and disagree • Adjourning
over leadership.
– The group prepares to
• Norming disband and is no longer
– Close relationships develop concerned with high levels
as the group becomes of performance.
cohesive and establishes its
norms for acceptable
Stages of Group Development

Exhibit 1.5
Group Structure: Group Size
• Small groups • Social Loafing
– Complete tasks faster than – The tendency for individuals
larger groups. to expend less effort when
– Make more effective use of working collectively than
when work individually.

• Large groups
– Solve problems better than
small groups.
– Are good for getting diverse
– Are more effective in fact-
Group Structure (cont’d)
• Group Cohesiveness
– The degree to which members are attracted
to a group and share the group’s goals.
• Highly cohesive groups are more effective and
productive than less cohesive groups when their
goals aligned with organizational goals.
The Relationship Between
Cohesiveness and Productivity

Exhibit 1.6
Techniques for Making More
Creative Group

Exhibit 1.7
Advantages of Using Teams
• Teams outperform individuals.
• Teams provide a way to better use employee
• Teams are more flexible and responsive.
• Teams can be quickly
assembled, deployed,
refocused, and disbanded.
What Is a Team?
• Work Team
– A group whose members work intensely on a specific
common goal using their positive synergy, individual
and mutual accountability, and complementary skills.

• Types of Teams
– Problem-solving teams
– Self-managed work teams
– Cross-functional teams
– Virtual teams
Types of Teams
• Problem-solving Teams
– Employees from the same department and
functional area who are involved in efforts to
improve work activities or to solve specific
• Self-managed Work Teams
– A formal group of employees who operate
without a manager and responsible for a
complete work process or segment.
Types of Teams (cont’d)
• Cross-functional Teams
– A hybrid grouping of individuals who are
experts in various specialties and who work
together on various tasks.
• Virtual Teams
– Teams that use computer technology to link
physically dispersed members in order to
achieve a common goal.
Examples of Formal Groups
• Command Groups
– Groups that are determined by the organization chart
and composed of individuals who report directly to a
given manager.

• Task Groups
– Groups composed of individuals brought together to
complete a specific job task; their existence is often
temporary because once the task is completed, the
group disbands.
Examples of Formal Groups (cont’d)

• Cross-functional Teams
– Groups that bring together the knowledge and skills of
individuals from various work areas or groups whose
members have been trained to do each others’ jobs.

• Self-managed Teams
– Groups that are essentially independent and in
addition to their own tasks, take on traditional
responsibilities such as hiring, planning and
scheduling, and performance evaluations.
Characteristics of Effective Teams

Exhibit 1.8
Characteristics of Effective Teams
• Have a clear • Are unified in their
understanding of their commitment to team goals.
goals. • Have good communication
• Have competent systems.
members with relevant • Possess effective
technical and negotiating skills
interpersonal skills.
• Have appropriate
• Exhibit high mutual trust leadership
in the character and
integrity of their • Have both internally and
members. externally supportive
Job satisfaction
A general attitude
toward one’s job, the
difference between the
amount of reward
workers receive and
the amount they
believe they should