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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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Who Are Managers? Where Do They Work?
• Organization
– A deliberate arrangement of people brought together to accomplish a specific purpose

• Common Characteristics of Organizations
– Goals – People – Structure

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How Are Managers Different from Nonmanagerial Employees?
• 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

• Managers
– Individuals in organizations who direct the activities of others

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What Titles Do Managers Have?
• Top Managers
– Make decisions about the direction of the organization – Examples: President, Chief Executive Officer, VicePresident

• 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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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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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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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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What Are Management Roles?

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Minzberg Manager’s Role: Update
Manager’s role is to influence action by:
1. Managing actions directly 2. Managing people who take action 3. Managing information that propels people to take action

Manager’s dual roles include:
1. Framing 2. Scheduling
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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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Is the Manager’s Job Universal?
• Level in the Organization • Profit vs. Nonprofit

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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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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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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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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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History Module
A Brief History of Management’s Roots
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Early Management
• Management has been practiced for thousands of years. • Organized projects were directed by people responsible for planning, organizing, leading, and controlling.

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Classical Approaches (1911–1947)
Scientific Management
– Frederick W. Taylor described scientific management as a method of scientifically finding the “one best way to do a job.”

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Other Classical Approaches
General Administrative Theory
– Focused on what constituted good management. – Henri Fayol identified five management functions and 14 management principles. – Max Weber described the bureaucracy as an ideal rational form of organization.

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Behavioral Approaches
Early management writers included:
– Robert Owen, who was concerned about deplorable working conditions – Hugo Munsterberg, a pioneer the field of industrial psychology – Mary Parker Follett, who recognized that organizations could be viewed from both individual and group behavior perspectives

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The Hawthorne Studies
• Studies conducted at the Hawthorne Works of the Western Electric Company:
– Provided new insights into individual and group behavior at work. – Concluded that group pressures can significantly impact individual productivity.

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Quantitative Approaches
• Quantitative Approach
– Used quantitative techniques to improve decisionmaking. – Evolved from mathematical and statistical solutions developed for military problems during World War II. – W. Edwards Deming and Joseph M. Duran’s ideas became the basis for total quality management (TQM).
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Contemporary Approaches
• Focused on managers’ concerns outside the organization
– Organizations are open systems that are influenced by and interact with their environments. – Fred Feildler’s contingency approach states that organizations, employees, and situations require different managerial approaches. – Dramatic changes in information technology connect nearly everyone in an organization, and managers now supervise employees remotely.
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