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Chapter

Managers
and
Management

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Learning Outcomes
• Tell who managers are and where they work.
• Define management.
• Describe what managers do.
• Explain why it’s important to study management.
• Describe the factors that are reshaping and redefining
management.

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After studying this chapter you will be able to:

• Tell who managers are and where they work

• Define management
• Describe what managers do
• Explain why it’s important to study management, and
• Describe the factors that are reshaping and redefining management

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 Who Are Managers?
Where Do They Work?
• Organization
A collection of people who work together for
common goals and they try to accomplish the same
objectives.
In the primary objectives usually for any business is
profit.
So managers work in organizations and the primary
goal is profit.

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Managers work in organizations, which we define as a deliberate arrangement of

people brought together to accomplish a specific purpose.

Three characteristics that identify an organization are its:

1. Goals
2. People, and
3. Structure.

Examples of organizations include:

• Your neighborhood convenience store
• The Dallas Cowboys football team
• Fraternities and sororities
• The Cleveland Clinic, and
• Internationally known corporations such as Nokia.

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 Who Are Managers?
Where Do They Work?
Three features that identify an organization are its:
– Goals
The organizations have certain Characteristics so every organization has specific goals.
Exp: SZABIST has specific goal, to provide the quality education, to raise the young
generation.
– People
Who make decisions and engage in work activities to reach the organization’s goals.
Exp: SZABIST has people, police department has people.
– Structure
Every organization has structure , which systematically defines and limits its members’
behaviour and also defines how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational goals.
Exp: As we can see, companies use this type of structure when they want to
organize their operations into departments, grouping employees with shared skills
and knowledge, such as marketing or sales, together.

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Managers work in organizations, which we define as a deliberate arrangement of

people brought together to accomplish a specific purpose.

Three characteristics that identify an organization are its:

1. Goals
2. People, and
3. Structure.

Examples of organizations include:

• Your neighborhood convenience store
• The Dallas Cowboys football team
• Fraternities and sororities
• The Cleveland Clinic, and
• Internationally known corporations such as Nokia.

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Here we see the three common characteristics that organizations share:

1. Goals, which express the distinct purpose of a particular organization
2. People, who make decisions and reach the organization’s goals, and
3. A deliberate structure, which systematically defines, limits, and guides its
members’ behavior.

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 How Are Managers Different from Nonmanagerial
Employees?
• Members of an organization can be divided into two
categories:
• Managers
– Individuals who direct and oversee the activities of the people in the
organization
• Nonmanagerial Employees
– People who work directly on a job or task and have no responsibility for
overseeing the work of others
– Examples: Associates and Team Members

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Members of an organization can be divided into two categories:

1. Non-managerial employees work directly on a task and do not oversee the
work of others. Examples include a cashier in a department store or someone
who processes your license at the registry of motor vehicles office.
2. Managers, who direct and oversee the activities of the people in the
organization.

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Here we see three levels of managers whose titles describe their place in the
managerial hierarchy: top, middle, and first-line managers.

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 What Titles Do Managers Have?
• Top Managers
– Make decisions about the direction of the organization
– Examples: President, Chief Executive Officer, Vice-President
• Middle Managers
– Manage the activities of other managers
– Examples: District Manager, Division Manager
• First-line Managers
– Direct nonmanagerial employees
– Examples: Supervisor, Team Leader

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Top managers are those at or near the top of an organization. For instance, a Chief
Executive Office (or CEO) often makes decisions about the direction of the
organization and establishes policies and philosophies that affect all organizational
members.

Middle managers fall between the lowest and highest levels of the organization. They
often manage other managers and sometimes nonmanagerial employees, and are
responsible for translating the goals set by top managers into specific detailed tasks
that lower-level managers oversee. Titles for middle managers may include plant
manager, department manager, or project leader.

First-line managers are responsible for directing the day-to-day activities of

nonmanagerial employees, and receive such titles as supervisor, shift manager, or
unit coordinator.

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 What Is Management?
Management is the process of getting things done effectively
and efficiently, with and through people.
•Effectiveness
– “Doing the right things”: the tasks that help an organization reach its
goals
•Efficiency
– “Doing things right”: the efficient use of such resources as people,
money, and equipment

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Management is the process of getting things done effectively and efficiently, with and
through people.

Getting things done effectively means “doing the right things,” that is, tasks that help
an organization reach its goals.

Doing the job efficiently means “doing things right” so that the organization’s
resources—its people, money, and equipment—are used to their fullest.

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In 1911, mechanical engineer Frederick Winslow Taylor’s newly published book,

Principles of Scientific Management, described the theory of scientific management
as the use of scientific methods to define the “one best way” for a job to be done.

Taylor’s experience in the steel industry taught him that:

• Workers used vastly different techniques to do the same job, and
• Workers were placed in jobs with little concern for matching specific
workers’ abilities and aptitudes with the tasks required of them.

As illustrated here, efficiency is concerned with the means of getting things done by:
• Doing a task correctly
• Minimizing both resource use and cost, and
• Getting the greatest output from the smallest amount of inputs.

Effectiveness is concerned with the ends, that is, doing the right tasks that result in
attaining organizational goals.

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 What Do Managers Do?
In the functions approach
proposed by French industrialist
Henri Fayol, all managers perform
certain activities or functions.

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Management researchers have developed three approaches to describe what

managers do:
1. By their functions
2. By their roles, and
3. By their skills and competencies.

In the functions approach proposed by Henri Fayol, a French industrialist in the early
twentieth century, all managers perform certain activities and functions, such as
planning, organizing, commanding, coordinating, and controlling.

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 Four Management Functions
• Planning
– Defining the organizational purpose and ways to achieve it
• Organizing
– Arranging and structuring work to accomplish organizational goals
• Leading
– Directing the work activities of others
• Controlling
– Monitoring, comparing, and correcting work performance

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The four key management functions identified in contemporary management are

planning, organizing, leading, and controlling.

1. Planning, which includes defining goals, establishing strategy, and developing

plans to coordinate activities, ensures that the work is kept in proper focus and
helps organizational members keep their attention on what is most important.

2. Organizing and structuring work to accomplish the organization’s goals includes

determining which tasks need to be done and by whom, how tasks are to be
grouped, who reports to whom, and who will make decisions.

3. Leading means that the manager will direct and coordinate the work activities of
the people she supervises, motivate employees, select the most effective
communication channel, and resolve conflicts among members.

4. Controlling, which is the fourth and final management function, involves

monitoring, comparing, and correcting work performance.

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 What Skills Do Managers Need?
• Conceptual Skills
– Used to analyze and diagnose complex situations
• Interpersonal Skills
– Used to work with, understand, and motivate individuals and groups
• Technical Skills
– Involve job-specific knowledge and techniques required to perform
tasks
• Political Skills
– Used to build a power base and establish connections

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Another way to describe what managers do is by looking at the skills they need for
managing. Management researcher Robert L. Katz and others describe four critical
skills:
1. Conceptual skills
2. Interpersonal skills
3. Technical skills, and
4. Political skills.

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 Why Study Management?
• We all benefit from efficiently and effectively run businesses.
• Well-managed organizations prosper even in challenging
economic times.
• After graduation, most students become managers or are
managed.

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Understanding management offers insights into why some companies get our orders
right the first time, why once-thriving organizations no longer exist, and which
companies continue to prosper during challenging economic times.

Studying management provides knowledge about manager skills and responsibilities,

how organizations function, and how people behave in the workplace.

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 What Factors Are Reshaping and Redefining
Management?
Today, managers must deal with:
– Changing workplaces
– Ethical and trust issues
– Global economic uncertainties
– Changing technologies

Trader Joe’s success

results from
outstanding
customer service.

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Managers everywhere face changing circumstances such as managing workers in

both domestic and foreign workplaces, emerging technologies, ethical and trust
issues, and global economic uncertainties.

As a result, how they manage is also changing and affecting the way they plan,
organize, lead, and control.

Two important changes to note are:

• The increasing importance of customers, and
• Innovation.

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 Why Are Customers Important?
• Without customers, most organizations would cease to exist.
• Employee attitudes and behaviors play a big part in customer
satisfaction.
• Managers must create a customer-responsive environment where
employees are friendly, knowledgeable, and sensitive to customer
needs.

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Organizations need customer to exist. Until recently, customer focus was thought to
be the responsibility of marketing, but organizations are now discovering that
employee attitudes and behaviors play a big role in customer satisfaction.

Managers are recognizing that delivering consistent high-quality customer service is

essential for survival and success in today’s competitive environment. They recognize
that employees are an integral part of creating a customer-responsive organization
where employees are friendly and courteous, accessible, knowledgeable, prompt in
responding to customer needs, and willing to do what’s necessary to please the
customer.

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 Why Is Innovation Important?
• “Nothing is more risky than not
innovating.”
• Innovation isn’t only important
for high technology companies; it
is essential in all types of
organizations.

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Innovation means doing things differently, exploring new territory, and taking risks.

In today’s challenging environment, innovation is critical and managers need to

understand what, when, where, how, and why innovation can be fostered and
encouraged throughout an organization. Managers need to be personally innovative
and to encourage their employees to be innovative.

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CHAPTER REVIEW

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Learning Exercise
• In today’s environment, which is more important to
organizations—efficiency or effectiveness? Explain your
choice.

• Is your course instructor a manager? Discuss in terms of

planning, organizing, leading, and controlling. Also discuss
using Mintzberg’s managerial roles approach.

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