The

Management
Process
CHAPTER 1
Planning Ahead — Chapter 1 Study
Questions

1. W hat are the challenges of working in the new economy?

2. W hat are organizations like in the new workplace?

3. W ho are the managers and what do they do?

4. W hat is the management process?

5. How do you learn managerial skills and competencies?

Chapter 1 Learning Dashboard

1. Working today
1. Talent
2. Technology
3. Globalization
4. Ethics
5. Diversity
6. Careers

2. Organizations
1. W hat is an organization?
2. Organizations as systems
3. Organizational performance
4. Changing nature of organizations

©2013 John Wiley & Sons, Inc. All rights reserved.

Chapter 1 Learning Dashboard
3. Managers
1. W h a t i s a m a n age r?

2. L e v e l s o f m a n age rs

3. Typ e s o f m a n ager s

4. Ma n a g e r i al p e r f orm a nce

5. C h a n gi n g n a t u r e o f m a n ag er i al wo r k

4. The Management Process

1. F u n c t i on s o f Ma n a g em e nt

2. Ma n a g e r i al r o l e s a n d a c t i v i ti es

3. Ma n a g e r i al a g e n das a n d n e t wo r k i n g

5. Learning How to Manage

1. E s s e n t i al m a n a ger i al s k i l l s

2. D e v e l o pi ng m a n a ger i al p o t e n t i al

4
©2013 John Wiley & Sons, Inc. All rights reserved.
Takeaway 1: Working Today
Talent

Peo p le and their talents are the ultim ate f o und ations o f
o rg anizatio nal p er f o rm ance

Intellec tual c ap ital is the c o llec tive b rainp ow er o r s hared

kno w led g e o f a w o rkf o rce that c an b e used to c reate value

A kno w led ge w o rker ’s m ind is a c ritic al as s et to em p loyers and

ad d s to the intellec tual c ap ital o f an o rg anizatio n
Takeaway 1: Working Today

Intellectual capital equation:

Competenc Intellectua
Commitment
y
l Capital
Takeaway 1: Working Today
Technology
Tec h IQ is a p ers o n’s ab ility to us e tec hno lo gy to s tay inf o rm ed :
– C h e c k i n g i nv e n t o r y, m a k i n g a s a l e s t ra n s a c t i on , o r d e r i n g s u p p l i e s
– Te l e c o m m ut i ng
– Virtual teams
– E f f e c t i ve u s e o f o n l i n e r e s o u r c e s
– Databases
– Job searches
– R e c r u i t i ng
– Social Media
Takeaway 1: Working Today
Globalization

T he w o rld w ide interd ep endence o f res o urc e f lo w s , p ro d uct

m arkets, and b us ines s c o m p etition that c harac terize o ur ec o nomy

J o b m ig ratio n o c c urs w hen f irm s s hif t jo b s f ro m o ne c o untr y to

ano ther
Takeaway 1: Working Today

Ethics

C o d e o f m o ral p rinc ip les that s et s tand ard s o f c o nd uc t o f w hat is

“g o o d” and “ rig ht ”

in o ne’s b ehavio r
Takeaway 1: Working Today

Ethical expectations for modern businesses:

–Integ rity and ethic al lead ers hip at all levels

–So c ial res p o ns ibility

–S us tainab ility
Takeaway 1: Working Today
Diversity

Wo rkf o rce d ivers ity ref lec ts d if f erences w ith res p ec t to g end er,
ag e, rac e, ethnic ity, relig io n, s exual o rientatio n, and ab le -
b o d ied nes s

A d ivers e and m ultic ultural w o rkf orce b o th c halleng es and o f f ers

o p p o rtunities to em p loyers
Takeaway 1: Working Today
How diversity bias can occur in the workplace:

P rejud ic e

Dis c rim ination

Glas s c eiling ef f ec t
Takeaway 1: Working Today
Careers

Org anizatio ns c o ns is t o f three typ es o f w o rkers , s o m etim es

ref erred to as a s ham ro ck o rg anizatio n:

Permanent
full time
workers
Tempora Freelanc
ry part- e or
time contract
workers workers
Takeaway 1: Working Today
Free-agent economy

Peo p le c hang e jo b s m o re o f ten, and m any w o rk o n ind ep end ent

c o ntrac ts

Self-management

Ab ility to und ers tand s o nes elf, exerc is e

initiative, ac c ep t res p o nsib ility, and learn f ro m exp erienc e

Takeaway 2: Organizations
Organization

A c o llec tion o f p eo p le w o rking to g ether to ac hieve a c o m mon

p urp o se

Org anizatio ns p rovid e us ef ul g o o d s and / o r s er vic es that return

value to s o c iety and s atis f y c us to m er need s
Figure 1.1 Organizations as open systems
interact with their environment
Takeaway 2: Organizations
Organizational performance

“Value c reatio n” is a ver y im p o r tant no tio n f o r o rg anizations

Value is c reated w hen an o rg anizatio n’s o p erations ad d s value to

the o rig inal c o s t o f res o urce inp uts

When value c reatio n o c c urs:

– Businesses earn a prof it

– Nonprofit organizations add wealth to society

Takeaway 2: Organizations
Organizational performance

Performance Performance
Productivity
effectiveness efficiency

• An overall • An output • An input measure

measure of the measure of task of the resource
quantity and or goal costs associated
quality of work accomplishment with goal
performance with accomplishment
resource
utilization taken
into account
Figure 1.2 Productivity and the dimensions of
organizational performance
Takeaway 2: Organizations
Workplace changes that provide a context for studying
management …

Focus on valuing human capital

Demise of “command-and-control”

Emphasis on teamwork

Preeminence of technology

Importance of networking

New workforce expectations

Priorities on sustainability
Takeaway 3: Managers

Importance of human resources and managers

Peo p le are no t ‘c o s ts to b e c o ntro lled ’

Hig h p er f o rming o rg anizations treat p eo p le as valuab le s trateg ic

as s ets

Manag ers m us t ens ure that p eo p le are treated as s trateg ic as s ets

Takeaway 3: Managers
Manager

Direc tly s up p o r ts, ac tivates and is res p o ns ible f o r the w o rk o f

o thers

T he p eo p le w ho m anag ers help are the o nes w ho s e tas ks

rep resent the real w o rk o f the o rg anizatio n
Takeaway 3: Managers

Levels of management

B o ard o f d irec to rs m ake s ur e the o r g anizatio n is r un r ig ht

To p m anag ers are res p o nsib le f o r p er f o rm ance o f an o rg anizatio n

as a w ho le o r f o r o ne o f its m ajo r p ar ts

Mid d le m anag ers overs ee larg e d ep ar tm ents o r d ivis io ns

Team lead ers s up er vis e no n -m anagerial w o rkers

Figure 1.3 Management levels in a typical
business and non-profit organizations
Takeaway 3: Managers

Types of managers
• Line managers are responsible for work activities that directly affect
organization’s outputs

• Staff managers use technical expertise to advise and support the efforts of
line workers

• Functional managers are responsible for a single area of activity

• General managers are responsible for more complex units that include many
functional areas

• Administrators work in public and nonprofit organizations

Takeaway 3: Managers

Managerial performance and accountability

Ac c o untability is the req uirem ent to s ho w p er f o rmance res ults to

a s up er vis or

Ef f ec tive m anag ers help o thers ac hieve hig h p er f o rmance and

satisf ac tio n at w o rk
Takeaway 3: Managers

Corporate Governance

B o ard o f d irec to rs ho ld to p m anag em ent res p o nsib le f o r

o rg anizatio nal p er f o rm ance

Financial Ethical
Sustainabili
performanc performanc
ty
e e
Takeaway 3: Managers

Quality of work life (QWL)

An ind ic ato r o f the overall q uality o f hum an exp erienc es in

the w o rkp lace
Takeaway 3: Managers

QWL indicators:

• Fair pay

• Safe working conditions

• Opportunities to learn and use new

skills

• Room to grow and progress in a

career
Takeaway 3: Managers

The organization as an upside -down pyramid

Eac h ind ivid ual is a value -ad d ed w o rker

A m anag er ’s jo b is to s up p o r t w o rkers ’ ef f o r ts

T he b es t m anag ers are kno w n f o r help ing and s up p or ting

C us to m ers at the to p s er ved b y w o rkers w ho are s up p o r ted b y

m anag ers
Figure 1.4 The organization viewed
as an upside-down pyramid
Takeaway 4: The Management Process

Managers achieve high performance for their

organizations by best utilizing its human and
material resources
Management is the process of planning,
organizing, leading, and controlling the use of
resources to accomplish performance goals
All managers are responsible for the four
functions
The functions are carried on continually
Figure 1.5 Four functions of
management
Takeaway 4: The Management Process

Functions of management

P lanning

– T h e p r o c e s s o f s e t t i ng o b j e c t i v e s a n d d e t e r m i n in g w h a t a c t i o n s s h o u l d
be taken to accomplish them

Org anizing

– T h e p r o c e s s o f a s s i g n i n g t a s k s , a l l o c a t i n g r e s o u r c e s , a n d c o o r d i n a t i ng
w o r k a c t i v i t i es
Takeaway 4: The Management Process

Functions of management …

L ead ing

– T h e p r o c e s s o f a r o u s i n g p e o p l e’s e n t h u s i a s m t o w o r k h a r d a n d d i r e c t
t h e i r e f f o r t s t o a c h i ev e g o a l s

C o ntro lling

– The process of measuring work performance and taking action to

ensure desired results
Takeaway 4: The Management Process

Mintzberg’s 10 Managerial Roles

©2013 John Wiley & Sons, Inc. All rights reserved.

Takeaway 4: The Management Process
Characteristics of managerial work

lo ng ho urs

intense p ac e

f rag m ented and varied tas ks

m any c o m m unic atio n m ed ia

f illed w ith interp ers o nal relatio ns hip s

Takeaway 4: The Management Process

Managerial agendas and networks

Agenda setting
– Develops action priorities for accomplishing goals and
plans

Networking
– Process of creating positive relationships with people
who can
help advance agendas

Social capital
– Capacity to get things done with help
Takeaway 5: Learning How to Manage

Learning

T he c hang e in a b ehavio r that res ults f ro m exp erienc e

Lifelong learning

T he p ro c ess o f c o ntinuo usly learning f ro m d aily exp erienc es

and o p p or tunities
Figure 1.6 Katz’s Essential
Managerial Skills
Figure 1.7 Learning model for developing
managerial skills and competencies