Chapter 1—Management: An Overview 1

Chapter 1 Management: An Overview

LEARNING OUTCOMES
After studying this chapter, you should be able to:

1. Explain why organizations need managers

2. Outline factors that affect a manager’s universe
3. Identify three levels of management
4. Describe five management functions
5. Apply management functions to each level of management
6. Summarize ten management roles
7. Analyze three management skills
8. Contrast the myths with the realities of a manager’s job
9. Discuss the criteria used to evaluate a manager’s performance

KEY TERMS

conceptual skills management

customer management hierarchy
Customer Relationship Manager (CRM) manager
diversity middle management
ethics organization
first-line management quality
functional managers role
goal technical skills
human skills technology
leadership top management
Web 2.0
 Chapter 1—Management: An Overview 2

CHAPTER OUTLINE

I. INTRODUCTION
II. MANAGEMENT AND MANAGERS
III. ORGANIZATIONAL NEED FOR MANAGERS
IV. THE MANAGER’S UNIVERSE
A. The Need to Please Customers
B. The Need to Provide Leadership
C. The Need to Act Ethically
D. The Need to Value Diversity in Their Employees
E. The Need to Cope With Global Challenges
V. LEVELS OF MANAGEMENT
A. Top Management
B. Middle Management
C. First-Line Management
D. Functional Managers
1. Marketing Managers
2. Operations Managers
3. Finance Managers
4. Human Resource Managers
VI. MANAGEMENT FUNCTIONS
A. Planning
1. Duration and Scope of Planning
2. Influences on Planning
3. Flexibility in Planning
B. Organizing
C. Staffing
D. Leading
E. Controlling
VII. FUNCTIONS AND THE LEVELS OF MANAGEMENT
A. Top Management
B. Middle Management
C. First-Line Management
VIII. MANAGEMENT ROLES
A. Interpersonal Roles
B. Informational Roles
C. Decisional Roles
D. Roles and Managerial Functions
E. Roles and the Expectations of Others
IX. MANAGEMENT SKILLS
A. Technical Skills
B. Human Skills
C. Conceptual Skills
D. Skills and Levels of Management
X. MANAGEMENT MYTHS AND REALITIES
XI. EVALUATING A MANAGER’S PERFORMANCE
 Chapter 1—Management: An Overview 3

Enrichment Vignette

One common misconception regarding management is that managers are those who are the
boss—they give orders to subordinates while subordinates simply take orders. Actually, all
managers both give and take orders, and the orders may not simply come from above.

The first line supervisor obviously does both—he or she gives orders to subordinates but
also takes orders from those in higher-level management positions. However, what about
the manager at the very top? What about the CEO—the Chief Executive Officer? The CEO
must please the members of the Board of Directors—there have been many CEOs in recent
years who failed to do so and were fired by the directors. What about the directors? They
can be replaced by the stockholders, and that has happened on many occasions—in
particular, when someone or some organization acquired a large portion of the corporation’s
stock. All managers both give and take orders.

Technically, subordinates do not give orders to the boss, but situations often exist in which
that is virtually what is happening. A manager wants his or her performance to look good to
those who are higher in the chain of command, but that manager’s performance may be
affected by a subordinate who has vital expertise that the manager lacks—expertise that
may not be easily replaced. Recommendations from such a subordinate are technically not
orders, but they may have the same effect.

The stockholders are not managers, and they are not the ultimate boss. If the customer
does not buy what the company is trying to sell, neither manager nor subordinate (no matter
how valuable) will have a job, and there will be no one to manage. The stockholders’ stock
will then be worthless. In essence, it is the customer—not the manager—who is the ultimate
boss.

LECTURE OUTLINE
The outline below (the lecture outline) is referenced to the above chapter outline and
contains supplementary material to enhance your discussion of the chapter, but it is
organized somewhat differently. As a result, you have a choice: by using what is in the
outline below, (1) you may present the above chapter outline material in a different
sequence, or (2) you may use the chapter outline references in the outline below to present
the lecture outline material in the same sequence as the chapter outline.

I. INTRODUCTION

A. Management and Managers (Chapter Outline: Section II)

1. Society is functionally dependent upon organizations and organizations, in

turn, are dependent upon managers.
2. Organizations require two or more people to exist.
3. Most organizations have some form of management and leadership.
4. Each organization requires a purpose for its existence.
5. Goals, objectives, and values are meaningful to both individual employees
and organizations.
 Chapter 1—Management: An Overview 4

B. Organizational Need for Managers (Chapter Outline: Section III)

1. Managers exist in private, public, for-profit, and not-for-profit organizations.

Very few organizations exist without managers.
2. The study of management involves many academic disciplines.
3. Obviously, managers provide the coordinating element for organizations.
4. Managers can be the owners/operators/founders of organizations.
5. Managerial decisions commit the courses of action for organizations.
6. The study of management is a body of both practical and theoretical
knowledge and understanding, as well as application.
7. Managers help address, resolve, and control conflict and disorder within
organizations.

II. THE MANAGER’S UNIVERSE (CHAPTER OUTLINE: SECTION IV)

A. Big Picture

1. The primary functions of management are planning, organizing, staffing,

leading, and controlling.
2. Managers accomplish work/tasks through people.
3. The working day of many managers is diverse and extremely complex.
4. Management is an attempt to accomplish pre-set goals and objectives by
using both human and non-human resources.

B. Need to:

1. Please customers
2. Provide leadership
3. Act ethically
4. Value diversity
5. Cope with global challenges

III. LEVELS OF MANAGEMENT (CHAPTER OUTLINE: SECTION V)

A. Who Reports to Whom...and Why!

1. Managers are identified by level of hierarchy and area of responsibility.

2. The levels of management include top, middle, and first-line (operating).
3. Chief executive officers, presidents, and vice presidents make up the highest
level of managers.
4. Middle managers range from below the rank of vice president but above the
supervisory level.
5. First-line management is also called supervisory and operating management.
6. Managers’ titles depend upon the organization and the work being performed.
7. Organizational titles and positions vary among organizations.
8. Top-level managers create and set overall policy.
9. Middle managers implement policies from top management.
10. First-line managers perform operational duties and preside over
nonmanagement employees.

B. Functional Managers
1. Managers are identified by the type of work, activity, or function of
responsibilities, as well as the authority of their position.
 Chapter 1—Management: An Overview 5

2. Various functional areas include but are not limited to marketing, operations,
finance, and human resources.

Enrichment Vignette

What are the rewards that go with the management job? Depending on the size of the
company and the area of specialty the cash compensation picture is intriguing.

Chief Executive Officer:

1. Annual revenues under $25 million—an average of $202,900.
2. Annual revenues between $1 billion and $2 billion—an average of $616,000.

Chief Operating Officer:

1. Annual revenues under $25 million—an average of $141,300.
2. Annual revenues of $100 million to $200 million—an average of $198,500.
3. Annual revenues of $1 billion to $2 billion—an average of $434,200.

Chief Financial Officer:

1. Annual revenues under $25 million—an average of $91,700.
2. Annual revenues of $100 million to $200 million—an average of $122,100.
3. Annual revenues of $1 billion to $2 billion—an average of $256,000.

IV. MANAGEMENT FUNCTIONS (CHAPTER OUTLINE: SECTION VI)

A. Planning

1. Management functions can be inseparable, simultaneous, continuous, and

interactive in the daily work of managers.
2. Planning is the creation of future courses of action.
3. Planning is the first function and is the catalyst to all other functions.
4. Planning is a mental activity. Planning means to think, think, think...
5. Planning asks, “What do we intend to do?”
6. Planning creates objectives for organizational accomplishments.

B. Organizing

1. Organizing follows planning.

2. Organizing is a composite of the structural issues of an organization.
3. Assigning work and granting authority are important elements of organizing.

C. Staffing
1. Staffing comprises the “people” or personnel aspects of an organization.
2. Activities include recruiting, selecting, training, and developing employees.

D. Leading

1. Leading is very similar to directing.

2. Motivation, communication, guiding, and encouraging involve leading.
3. Leading can include the attempt to satisfy needs and meet expectations of
employees.
4. Leading is also similar to coaching, assisting, and helping.
 Chapter 1—Management: An Overview 6

E. Controlling

1. Controlling is a follow-up of plans, activities, or functions.

2. Controlling ensures that goals and objectives are met.
3. Controlling asks the question: “Are we doing what we intended to
accomplish?” Controlling “finalizes” many other functions.
4. All other functions precede controlling.

Enrichment Vignette

Management functions can be useful when driving to a distant location with friends. It can
help to plan: know the destination (goal) and the best route to get there. The plan may
include when one should be at the various points along the route. You may wish to organize
and staff: get everything together for the trip and determine who will be driving and who will
keep track of the map. It will be important to have controls: watch the highway signs and
compare where the group is while driving toward the destination versus where the group
should have been at some point in time according to what had been planned. Leadership
may be required to keep people motivated and working together in order to have a
successful trip.

V. FUNCTIONS AND THE LEVELS OF MANAGEMENT

(CHAPTER OUTLINE: SECTION VII)

1. All managers perform all functions.

2. Managers at various levels devote different proportions of time to different
functions.
3. Top management oversees the total picture of the organization.
4. Middle managers develop strategies to accommodate the broad strategies of
top management.
5. First-line managers perform supervisory or operational activities.
6. The time dimension for managerial activities ranges gradually from long-term
for top-level managers to immediate attention or focus for first-line
supervisors.
 Chapter 1—Management: An Overview 7

Enrichment Vignette

According to Thomas R. Horton, previous chairman of the American Management

Association and co-author of Beyond The Trust Gap, the essence of management can be
boiled down to the following:

People. Since success depends so much on others, it is wise for a manager to surround
himself or herself with able people.

Judgment. Because management is more about people than anything else, judgments
must be made about them. But don’t rush the judgment.

Decision making. Many managers err by making decisions too quickly. Decisions should
be made when necessary, but the best decisions are often made later rather than earlier,
and by those best equipped to make them.

Experience. Be suspicious of your own experience. A situation that may appear similar to
an event in one’s earlier career can trigger a knee-jerk response that may be entirely
inappropriate for the occasion at hand.

Culture. The work climate of any unit is determined, for good or bad, by the work habits of
that unit’s manager. Over time, a culture is created by the behavior of the manager or
leader.

Preparedness. Some people create their own luck by being prepared. Many who are
unlucky turn out not to have had the will to be prepared, do their homework, visualize events
as they are likely to play out, develop plans and alternatives, or work toward creating their
own futures.

Persistence. People from all parts of the business must be persuaded that the goals you
seek to achieve are worth their effort. The essential ingredient in is not genius, but tenacity.

VI. MANAGEMENT ROLES (CHAPTER OUTLINE: SECTION VIII)

A. Interpersonal Roles

1. Managerial roles are actually expectations of managers by others.

2. These roles are divided into specific categories of expected behavior.
3. Roles are extensions of others’ values and anticipations.
4. Interpersonal roles stem from position and authority.
5. Managers play out various roles on a daily basis.
6. Managers must “wear different hats” in order to carry out their various roles.

B. Informational Roles

1. The informational category of roles deals with managerial information and

dissemination of that information.
2. Informational roles are monitor, disseminator, and spokesperson.

C. Decisional Roles

1. Managers make choices.

 Chapter 1—Management: An Overview 8

2. Managerial choices are made alone or with others.

3. Managers also influence the choices of others.
4. The activities of problem solving and decision making are inherent in some
roles.

D. Roles and Managerial Functions

1. Roles and functions are interdependent aspects of managers.

E. Roles and Expectations of Others

1. Various role expectations of managers vary among different people within an

organization.

VII. MANAGEMENT SKILLS (CHAPTER OUTLINE: SECTION IX)

A. Technical Skills

1. In order to carry out various functions managers must possess specific skills,
talents, and abilities.
2. Skills are the abilities to use processes, practices, techniques, and tools of a
specialty area.
3. Technical skills require a specific expertise.

B. Human Skills

1. This area is also referred to as human relations.

2. Interaction and communication are primary to successful human skills.
3. An understanding of psychology as well as a wealth of social understanding is
necessary to the success of human interaction.

C. Conceptual Skills

1. The ability to see the “entire” organization or the “big picture” is necessary for
conceptual understanding.
2. Imagination, creativity, and coordination are attributes of conceptual ability.
3. Conceptual skills are the mental capacity to identify problems, develop
alternatives, select appropriately, and implement solutions.

D. Skills and Levels of Management

1. Conceptual skills dominate top management.

2. Technical skills are proportionately more important to first-level managers.
3. As with functions, various skills are proportionately different to various levels
of management.

VIII. MANAGEMENT MYTHS AND REALITIES (CHAPTER OUTLINE: SECTION X)

1. There are many public or common misconceptions regarding management.

2. Many realities of management are opposed to common management myths.
3. At this juncture, a class discussion of misconceptions would be useful.
Discussions should include both myths and realities. Examples:
a. All managers are paid well.
 Chapter 1—Management: An Overview 9

b. Managers do not work as hard or as long as employees do each day.

c. All managers are well-educated.
d. Managers should be in charge.

VIIII. EVALUATION OF A MANAGER’S PERFORMANCE

(CHAPTER OUTLINE: SECTION XI)

A. Many Factors Are Involved

1. Do they carry out their roles effectively?

2. Are their skills applied properly?
3. Are they effectively setting and accomplishing their goals?
4. Are their talents and resources used efficiently?
5. Do they demonstrate leadership?
6. Are they ethical by practice?
7. Do they make use of the diversity in their people?
8. Do they please customers?

SUGGESTED RESPONSES TO REVIEW QUESTIONS

1. How do managers assist an organization to achieve its goals and objectives?

In an organization it is quite possible that employees perform parts of jobs that

each thought were important to meet the objectives, while in actuality they were
working in opposite directions. To prevent this from occurring and to ensure
coordination of work to accomplish the objectives, managers are needed. The
manager is the person in an organization who gives it direction, makes decisions,
and commits its resources (personnel, capital, and equipment) to achieve the
organization’s objectives.

2. What factors make the manager’s universe complex?

The world of work is a complex arena of exacting, precise, exciting, and pressure-
filled elements. Dull managerial moments seldom exist. Staying ahead of this
complexity is an ongoing requirement. The world is becoming more complex.
Limited resources place heavy demands upon managers. Unpredictable
challenges are as prevalent as known certainties.

3. Where are managers located within an organization’s management hierarchy?

How are the different levels similar? How are they different?

a. Managers can be divided into three basic categories: top management, middle
management, and first-line or supervisory management.

b. Top management is responsible for the overall management of the

organization. It establishes organizational or company-wide objectives or
goals and operating policies, and it directs the company in relationships with
its external environment.
c. Middle managers are all managers below the rank of vice president but above
supervisory level. Their subordinates are other managers. They are
responsible for implementing top management objectives and policies.
d. First-line managers or supervisors, those at the operating level, are the lowest
level of management. They are responsible for the management of their
 Chapter 1—Management: An Overview 10

specific work groups and for the accomplishment of the actual work of the
organization. Their subordinates are nonmanagement workers or operating
employees.

4. What are the regular activities that all managers perform? Which of these
activities are called the “first” function? Why?

a. Planning identifies the goals and alternatives. It maps out courses of action
for the organization and is known as the “first” management function.
b. Organizing is concerned with (1) assembling the resources necessary to
achieve the organization’s objective, (2) establishing the activity-authority
relationship of the organization, and (3) establishing the structure of the
company.
c. Staffing is concerned with locating prospective employees to fill the jobs
created by the organizing process. Staffing involves matching job demands
with applicant abilities, orienting new employees, training and developing,
appraising performance, and determining the proper pay and benefits.
d. Leading is aimed at getting the members of the organization to move in the
direction that will achieve its objectives. Leading involves motivation.
e. Controlling deals with establishing standards for performance, measuring
performances against standards, and dealing with deviations from standards.
f. Planning is considered the first function because it lays the groundwork for all
the other functions. It identifies the goals and alternatives. It maps out the
course of action that will commit individuals, departments, and the entire
organization for days, months, and years to come. Planning achieves these
ends after setting in motion the following processes: (1) determination of what
resources will be needed, (2) identification of the number and types of
personnel the organization will need, (3) development of the foundation for
the organizational environment in which work is to be accomplished, and (4)
determination of a standard against which the progress toward objectives can
be measured so that corrections can be made, if necessary.

5. How do the functions in question 4 apply to the three levels of management found
in most organizations? In what ways are the execution of controlling activities
similar on each of the three levels of management? How are they different?

a. Regardless of title, position, or management level, all managers do the same

job. They all execute the five management functions and work through and
with others to set and achieve organizational goals. Although all managers
perform the same functions, the various management levels (top, middle, or
first-line) require different amounts of time for each function, and the points of
emphasis in each function will differ.
b. The planning function for top management consists of developing the major
purpose of the organization, the global objectives for organizational
accomplishment, and the major policy statements for implementation by
middle and first-line managers.
c. For middle management, planning involves developing implementation
strategies for the broad concepts developed by top management. Middle
managers translate an organizational goal into concrete goals of their own in
order to achieve the broader goals.

d. For the first-line manager, planning involves scheduling employees, deciding

what work will be done first, and developing procedures to achieve goals.
 Chapter 1—Management: An Overview 11

e. On the other hand, but in a similar fashion, the function of controlling is

merely the reciprocal activity for each of the three levels of management. All
managers control—they merely control different aspects of the organization.

6. What is a management role? Do all managers perform the same roles? Why or
why not?

a. A role is any one of several behaviors a manager displays as he or she

functions in the organization. As a manager attempts to perform the
management job, he or she must “wear different hats” in interactions with
organizational members.
b. The entrepreneur role is performed by the manager when initiating activities
that will allow, and encourage, the work unit to use ideas or methods most
advantageously.
c. The disturbance handler role requires the manager to resolve crises.
d. The resource allocator role is performed by the manager when determining
whom in the work unit gets the resources, and how much each person gets.
e. The negotiator role is performed with external suppliers and internal
organizational members when trading resources.
f. All roles may or may not be performed by managers at various times.

7. What management skills are most essential for a CEO? Why? What skills are
required to about the same degree by all managers? Why?

a. Technical skills are the knowledge of, and ability to use, the processes,
practices, techniques, or tools of a specialty area.
b. Human skills are the ability to interact with other persons successfully.
c. Conceptual skills are the ability to view the organization as a whole and to
see how the parts of the organization relate to and depend on one another.
Conceptual skills include the ability to imagine the integration/coordination of
the organizational parts.
d. The importance of having these three skills depends on a manager’s level of
management in the organization. Technical skill is most important for a
manager at the first-line management level and becomes less important as
the manager moves up in the organization. The need to be able to
understand and work with people is important at all levels, but the first-line
manager position places a premium on human skill requirements because of
the great number of employee interactions required. Conceptual skills
become increasingly important as a manager moves up the levels of
management. Top management is concerned with broad-based, long-range
decisions that affect the entire organization; therefore, conceptual skill is most
important at that level.

8. Why do people hold the different myths mentioned in this chapter? How do you
think people create these myths?

a. Student responses will vary greatly. Also, their perceptions should be

supported.
b. Attempt to allow students to uncover, realize, and understand their own
beliefs as well as develop an awareness to the “truth” of daily management
realities.

9. If you were a CEO of a small company, what criteria would you use to evaluate
 Chapter 1—Management: An Overview 12

your managers’ performances? Which criterion do you believe is most essential?

Why?

a. Again, student responses will vary greatly. These answers are individualized.
b. Ensure that students rationally justify their choices and comments.

INSTRUCTIONAL EXPLANATION: DISCUSSION QUESTIONS FOR CRITICAL

THINKING

These thought-provoking questions are provided by the authors for each chapter as primers
for student discussion. This method of questioning ensures that the students have read the
assigned materials or content. These questions are presented to generate thinking and
discussion. They can be used as supplemental homework assignments and/or class
discussions that center around specific critical thinking issues and applications.
It is important that students are able to respond from their experiences and through
their perceptions as well as incorporate the specific course content into their reasoning,
explanations, descriptions, and individualized contributions. Most of these questions cannot
be answered in a right/wrong fashion. Instead, student responses and/or group discussions
should be encouraged by the instructor to bring out individualized critical thinking as
opposed to absolute correct answers.

Web 2.0 EXERCISES

Corporate Blogs

A corporate blog is published and used by an organization to reach its organizational goals.
The advantage of blogs is that posts and comments are easy to reach and follow due to
centralized hosting and generally structured conversation threads.

1. Identify one of your favorite products. (For example, you might choose Nike athletic
shoes.)

2. Identify the company’s blog. (For example, search for “Nike blog.”)

3. What is the name of the blog?

4. What is the address?

5. Note whether or not the blog allows customer interaction.

6. Who writes the blog?

7. What have you learned from visiting this blog?

8. How does this blog inform your thinking about management?

Student’s answers will vary. The answers should demonstrate a strong knowledge of
the chapters’ main objectives as they apply to the student’s blog. Class discussion may
be helpful in eliciting creative responses.

SUGGESTED RESPONSES TO EXPERIENTIAL LEARNING CASE: GREAT

MANAGERS
 Chapter 1—Management: An Overview 13

Interview a full time employee. Identify the organization, the job title of the employee, and the
job title of the employee’s manager. Ask the employee the questions in the list that follows.
After the interview report your findings. Does this employee have a great manager? If not,
what would you recommend the manager change?
1. Do you know what is expected of you at work?
2. Do you have the materials and equipment you need to do your work correctly?
3. At work, do you have the opportunity to do what you do best every day?
4. In the last seven days, have you received recognition or praise for doing good work?
5. Does your supervisor, or someone at work, seem to care about you as a person?
6. Is there someone at work who encourages your development?
7. At work, do your opinions seem to count?
8. Does the emission/purpose of your company make you feel your job is important?
9. Are your associates (fellow employees) committed to doing quality work?
10. Do you have a best friend at work?
11. In the last six months, has someone at work talked to you about your progress?
12. In the last year, have you had opportunities at work to learn and grow?

The student answers to these questions will vary greatly. Similar to the critical thinking
questions provided throughout the text, these questions allow students the opportunity to
think in a broad, creative sense with many variables or choices for response. It is important
that the instructor encourage the students to “back up” or support their answers with specific
subject content from the text as well as provide a rational/logical approach to their
comments.

ADDITIONAL CASE PROBLEMS WITH SUGGESTED ANSWERS

Shake Up at SafeCard Services

In the early 1990s, Florida-based SafeCard Services specialized in offering loss-notification

services for credit-card holders. When a client’s credit card was lost or stolen, SafeCard
notified the issuing company. SafeCard was doing fine until 1993 when it began losing
business to more nimble and aggressive competitors. SafeCard’s sales performance fell as
competitors developed better products and additional services. SafeCard’s management had
concentrated on controlling costs and had delayed the creation and introduction of new
products. Its records were recorded on microfilm rather than in computer data banks.
To boost the company’s growth, the board of directors recruited Paul Kahn, a financial
services expert and now chairman, to become its new CEO. He “had hoisted AT&T into the
big-time in the U.S. credit-card industry, creating a $1.4 billion business with 16 million
cardholders (AT&T’s Universal MasterCard)” (Fins and Tanner, 1995). After spending a few
weeks observing, talking, and analyzing, Kahn took the following actions:
 A number of top-level executives who had resisted the changes designed by Kahn
were dismissed and replaced with experienced people from some top credit-card
companies including American Express, AT&T Universal, and MasterCard.
 New products and business partnerships were unveiled such as a co-branded
credit card with the Professional Golf Association. The “Partners card lures golfers
with Pro-Am clinics and tournaments.”
 A program of acquisitions was launched bringing in such operations as Wright
Express (a credit-card service for trucking fleet owners) and the National Leisure
Group (a company specializing in packaged tours).
 The company’s extensive customer data was computerized and the company was
renamed the Ideon Group.
 Chapter 1—Management: An Overview 14

Kahn instituted open forums to be held every 90 days, regular breakfast and luncheon
meetings, and a daily newsletter. Kahn uses these to announce new products, keep people
informed about changes, and allow employees to raise any concerns they might have.
Employees soon found that they could raise any issue and get an honest answer from both
Kahn and his team.

A gain-sharing program was developed by Kahn to enlist the talents of all employees.
Any employee making a suggestion that saves or makes money for the company shares in
the results. Top performers are now recognized and rewarded as well. The insecurities
created by Kahn’s changes have gradually been overcome, and the company has seen its
profits reach a record high.

QUESTIONS

1. Which management functions did Kahn perform? Cite examples to support your
answer.

It should be readily apparent to students that most, if not all, functions were briefly
alluded to in this case. Student answers will vary.

2. What management roles did Kahn perform in the actions taken? Cite examples to
support your answer.

Student responses will vary. The important aspect of this discussion question
centers around the point that students should envision that different situations
dictate different management roles.

3. Which management skills did Kahn rely on to manage the new environment? Cite
examples to support your answer.

Similar to question 2 above. Student perceptions and interpretations of various

skills and the application of these skills must be guided through discussion by the
instructor.

4. How did Kahn exercise leadership? Give examples to support your answer.
Again, the instructor should encourage various student input as well as supporting
examples for their replies.

THE DIRECTOR’S DILEMMA

Arlene Maxwell is proud to be a middle manager. She has earned her promotions with hard
work and has proved her ability to master the technical problems in her specialty area, data
processing. After receiving her bachelor’s degree in data processing at the state university,
she went to work programming in the field of financial and investment problems. Within two
years she became the recognized “genius” of her specialty and was promoted to supervisor
of her section. Three years later, when data and word processing functions were merged,
she became her company’s director of information and data services. That was three
months ago.
Arlene has stayed current in her field through regular reading of journals and trade
papers, through memberships in professional organizations and regular participation in their
seminars, and by being directly involved in data and word processing. Arlene puts it this
way:
 Chapter 1—Management: An Overview 15

I like to write programs as often as I can. Each new problem our department
gets is really a test of our problem-solving abilities. Tackling a problem by
myself now and then helps to keep the old skills from getting rusty. I can still
teach the younger programmers a thing or two. Nothing matches hands-on
experience.

Arlene prides herself on her open-door policy and her eagerness to help her people
perform their tasks. But lately she has become concerned. Her people don’t come around
as much as they used to, and her department is falling behind in its ability to deliver work on
time.

QUESTIONS

1. Which of the three management skills does Arlene seem to possess?

The three skills referred to are technical, conceptual, and human. Of these,
Arlene Maxwell seems to be strongest in the technical area, being the recognized
genius of her specialty. Her technical expertise has led to her promotions.

Arlene probably possesses an adequate degree of conceptual skill (for her middle-management

positions), because she sits in a job in which she must oversee the execution of work for the entire

organization—work executed by word processors and data processors. This fact alone will force

Arlene to become familiar with the entire organization’s many parts as she executes work to

support each of them. Through time, Arlene will (if she has not already) increase her conceptual

and technical skills through on-the-job experiences and the daily interactions with managers from

all parts of the company.

Which skills does she lack?

If Arlene lacks sufficiency in management skills, it is probably in the category of

human skills. Until her promotion, Arlene did not need a high degree of human
skills. She has demonstrated technical expertise that has accounted for high
performance appraisals and her promotions. Arlene fails to realize that her duties
have changed. Her tasks now will rely increasingly on her ability to get the best
from her subordinate managers. She must foster in them the same high degree of
skill that she possesses. Her attention to details needs to be focused on the
details of getting people to work together and to do the best that they can. She will
be a resource person, not a doer of data or word processing tasks. She needs to
let her people perform on their own, demonstrating their abilities and enjoying a
sense of competence so important to skilled workers and supervisors.

2. As a middle manager, which basic skills does Arlene need most?

All three skills are needed but the emphasis will be on the human skills—the ability
to interact with other persons successfully. She must be able to work with and
 Chapter 1—Management: An Overview 16

relate to others individually and in groups in order to build teamwork.

With regard to the five functions of a manager, leading becomes the most
important from the point of view of time spent. Leading involves both human and
technical skills. More time will now be spent on planning, organizing, and staffing.

3. Of the management roles discussed in the chapter, which does Arlene seem to
favor?

Arlene seems to favor the leadership, monitor, and entrepreneur roles. While she
likes to continue in the role of programmer that accounted for her past reputation
and promotions, she can show her subordinates a thing or two and, by staying
current, she can pass along the new techniques. But by doing so to an extreme,
she may rob her subordinate managers of initiative and enthusiasm. She may be
neglecting the word processing part of their job at the expense of her many
company clients. Her overconcern with hands-on tasks for herself undercuts her
supervisors’ authority to manage. By working directly with their subordinates,
Arlene is acting in their stead. Her involvement in day-to-day data processing may
also be at the expense of her management activities such as planning for the
future.

Middle managers must develop implementation strategies for the broad concepts determined by
their superiors. While staying abreast of the new, middle managers decide what needs doing and
how to do it. The details must be worked out by subordinate managers. Middle managers must be
able to provide leadership and support for lower management, not usurp their day-to-day
management duties. Arlene should work with and through her subordinate managers, not around
them.

ON THE JOB Video Case Solutions: Flight 001-Planning and Goal Setting

Discussion Questions and Suggested Answers:

1. If you were a consultant to Flight 001, what would you suggest be done to assure
that this continues to occur? Since the “school of hard knocks” can sometimes be
very expensive, what else might be done to help managers become more
effective?

2. How would you respond to the star worker in such a case?

3. Do you think that business students should serve as management interns for at
least one academic term during college so that they could observe business first
hand from the manager’s perspective before graduating and becoming an actual
manager?

Student answers will vary.

TEAM ACTIVITY

Form the class into several teams. Assign a destination to each team. For example, a motor trip to Mexico City, a trip to the capitol of Tibet,
or other destinations as desired. Have each team develop a plan (showing what will be required—visas, shots, costs, routes, what they may
need to have with them or to avoid having with them, etc.), show how they will organize themselves to carry out the plan, and what controls
will be used to ensure that the plan is successful. Since this will require some research, one of the first things each team must do is to
 Chapter 1—Management: An Overview 17

organize and staff so that each person will know what that person must do—research certain information, develop a report and visual aids,
present the report, etc. Point out that the team must work together so that if something undesirable happens (such as the person who is to
give the report on a given day becomes ill) the team will still be able to present its report when it is due.

BIZ FLIX VIDEO CASE

Video Case: In Good Company

Video Case Synopsis

A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new
boss who is half his age. Carter Duryea (Topher Grace), Dan’s new boss, wants to prove his
worth as the new marketing chief at Sports America, Waterman Publishing’s flagship
magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett
Johansson).
This sequence starts with Carter Duryea entering Dan Foreman’s office. It follows
Foreman’s reaction toward the end of a speech given by Teddy K. (Malcolm McDowell),
Globecom CEO. Carter Duryea enters while saying, “Oh, my God, Dan. Oh, my God.” Mark
Steckle (Clark Gregg) soon follows. The sequence ends with Carter asking, “Any ideas?”
Dan Foreman says, “One.”

Video Case Discussion Questions and Suggested Answers

How well does Mark Steckle seem to be performing the various management roles
described in the chapter? Give examples from the scene to support your answer.

Mark does not appear to be performing his interpersonal roles very well at all. As a leader,
he is not creating a positive environment, he is not helping to improve his employees’
performance, and he is generating conflict, not resolving it. He is also not performing aspects
of the decisional roles well. For example, he is flustered and upset with both the disturbance
he is trying to handle and the impromptu negotiation with Carter. Finally, at the end of the
scene, Carter hints that there is an important deal that’s about to take place that Mark hasn’t
heard about yet. As the monitor of information, Mark should know about all prospective
deals.

The sequence shows three people who represent different hierarchical levels in the
company. Which hierarchical levels do you attribute to Carter Duryea, Dan Foreman, and
Mark Steckle?

Students can assume Mark Steckle holds a mid-level management position because a) he
references his own boss (Teddy K.) and b) Carter Duryea reports to him. Dan Foreman has
a non-management position and reports to Duryea, so Duryea would best be described as a
first-line manager. Graphically you can think of these relationships as: Steckle  Duryea 
Foreman.

Critique the behavior shown in the sequence. What are the positive and negative aspects of
the behavior shown?

From the clip, students should assume that Mark has not given either Carter or Dan any
notice of poor performance before he announces he is firing either of them, which would be
considered very poor human resource management behavior. He is failing to control his
emotions, and he allows his own fears and pressures to influence his actions, yet he does
 Chapter 1—Management: An Overview 18

listen to Carter’s proposal. You can extend the discussion of the scene to consider the ethics
and fairness of Mark’s actions.