CHAPTER 1

Managers and
Managing

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• Learning Objectives (1 of 2)

1. Describe what management is, why

management is important, what managers
do, and how managers use organizational
resources efficiently and effectively to
achieve organizational goals.
2. Distinguish among planning, organizing,
leading, and controlling (the four principal
managerial tasks), and explain how
managers’ ability to handle each one affects
organizational performance.
3. Differentiate among three levels of
management, and understand the tasks and
responsibilities of managers at different
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• Learning Objectives (2 of 2)

4. Distinguish among three levels of

managerial skill, and explain why
managers are divided into different
departments to perform their tasks
more efficiently and effectively.
5. Discuss some major changes in
management practices today that
have occurred as a result of
globalization and the use of advanced
information technology (IT).
6. Discuss the principal challenges
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• What Is Management? (1 of 3)

Organizations
• Organizations are collections of
people who work together and
coordinate their actions to achieve a
wide variety of goals or desired
future outcomes.
• All managers work in organizations.
Managers
• Managers are the people responsible
for supervising the use of an
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• What Is Management? (2 of 3)

Management
• Management includes the
planning, organizing, leading,
and controlling of human and
other resources to achieve
organizational goals effectively
and efficiently.
• What difference can a manager
make? Satya Nadella,
Microsoft CEO
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• What Is Management? (3 of 3)

Resources
• Include assets such as:
1. People and their skills, know-how, and
experience.
2. Machinery.
3. Raw materials.
4. Computers and information technology.
5. Patents, financial capital, and loyal customers
and employees.

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• Achieving High Performance:
A Manager’s Goal (1 of 2)
Organizational performance
• A measure of how efficiently and
effectively managers use available
resources to satisfy customers and
achieve organizational goals
• Microsoft’s corporate mission
revised by CEO Satya Nadella to
reflect current technological trends,
resulting in increased employee
moral, product quality, and stock
market values
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• Achieving High Performance:
A Manager’s Goal (2 of 2)
Efficiency
• A measure of how well or how
productively resources are used to
achieve a goal
• UPS instructing drivers to leave truck doors open
when going short distances to reduce delivery
times

Effectiveness
• A measure of the appropriateness of
the goals an organization is pursuing
and the degree to which the
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• Figure 1.1 Efficiency, Effectiveness,
and Performance in an Organization
High-performing organizations are efficient and effective.

Jump to Appendix 1 for description

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• Why Study Management? (1 of 2)

1. Individuals generally learn

through personal experience or
the experiences of others.

By studying management in
school, you are exposing yourself
to the lessons others have
learned.

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• Why Study Management? (2 of 2)

2. The economic benefits of

becoming a good manager are
also impressive. In the United
States, general managers earn a
median wage of $99,310 with a
projected growth rate in job
openings of 5 % to 9% between
now and 2026.
3. Learning management principles
can help you make good
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• Figure 1.2 Four Tasks of
Management

Jump to Appendix 2 for description

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• Steps in the Planning Process

1. Deciding which goals the

organization will pursue
2. Deciding what strategies to adopt
to attain those goals
3. Deciding how to allocate
organizational resources.
Managers identify and select
appropriate organizational goals and
develop strategies for how to achieve
high performance.
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• Organizing (1 of 2)

Organizing
• Structuring working relationships so
organizational members interact and
cooperate to achieve organizational
goals

Managers deciding how best to

organize resources, particularly
human resources

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• Organizing (2 of 2)

Organizational structure
• A formal system of task and
reporting relationships that
coordinates and motivates
organizational members so that
they work together to achieve
organizational goals
• ER director Daley works closely
with team, increasing efficiency
and improving customer
satisfaction
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• Leading

Leading
• Articulating a clear vision and
energizing and enabling
organizational members so they
understand the part they play in
achieving organizational goals
• An organization’s vision is a short, succinct, and
inspiring statement of the organization’s future
state.

• Involves managers using their power,

personality, influence, persuasion,
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and communication skills to
• Controlling (1 of 2)

Controlling
• Evaluating how well an
organization is achieving its goals
and taking action to maintain or
improve performance

Managers monitor performance of

individuals, departments, and the
organization as a whole to
determine if they are meeting
performance standards
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• Controlling (2 of 2)

The outcome of the control process

is the ability to measure
performance accurately and
regulate organizational efficiency
and effectiveness.
Managers must decide which goals
to measure.

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• Example: Mercy Medical
Center
Erin Daley is the ER director for Mercy
Medical Center in Massachusetts.
Improving ER department efficiency
and quality of care while keeping
costs within budget can be daunting.
Managers like Erin Daley must
develop strategies and processes
where hospitals can move patients
through the system faster while
improving patient satisfaction.
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• Managerial Roles Identified (1 of
3)
Table 1.1 Managerial Roles Identified by Mintzberg
Type of Role Specific Role Examples of Role Activities
Decisional Entrepreneur Commit organizational resources to develop innovative
goods and services; decide to expand internationally to
obtain new customers for the organization’s products.

Decisional Disturbance handler Move quickly to take corrective action to deal with
unexpected problems facing the organization from the
external environment, such as a crisis like an oil spill, or
from the internal environment, such as producing faulty
goods or services.

Decisional Resource allocator Allocate organizational resources among different tasks

and departments of the organization; set budgets and
salaries of middle and first-level managers.

Decisional Negotiator Work with suppliers, distributors, and labor unions to

reach agreements about the quality and price of input,
technical, and human resources; work with other
organizations to establish agreements to pool resources
to work on joint projects.

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• Managerial Roles Identified (2 of
3)

Type of Role Specific Role Examples of Role Activities

Interpersonal Figurehead Outline future organizational goals to employees at
company meetings; open a new corporate
headquarters building; state the organization’s
ethical guidelines and the principles of behavior
employees are to follow in their dealings with
customers and suppliers.

Interpersonal Leader Provide an example for employees to follow; give

direct commands and orders to subordinate; make
decisions concerning the use of human and
technical resources; mobilize employee support for
specific organizational goals.

Interpersonal Liaison Coordinate the work of managers in different

departments; establish alliances between different
organizations to share resources to produce new
goods and services; reach agreements about the
quality and price of input, technical, and human
resources; work with other organizations to
establish agreements to pool resources to work on
joint projects.

Table 1.1 Managerial Roles Identified by Mintzberg

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• Managerial Roles Identified (3of
3)

Type of Role Specific Role Examples of Role Activities

Informational Monitor Evaluate the performance of managers in different
tasks, and take corrective action to improve their
performance; watch for changes occurring in the
external and internal environments that may affect
the organization in the future.
Informational Disseminator Inform employees about changes taking place in the
external and internal environments that will affect
them and the organization; communicate to
employees the organization’s vision and purpose.
Informational Spokesperson Launch a national advertising campaign to promote
new goods and services; give a speech to inform the
local community about the organization’s future
intentions.

Table 1.1 Managerial Roles Identified by Mintzberg

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• Levels and Skills of Managers
(1 of 2)

Department
• A group of managers and employees
who work together and possess
similar skills or use the same
knowledge, tools, or techniques
• Example: the manufacturing,
accounting, engineering, or
marketing department

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• Figure 1.3 Levels of
Management

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• Levels of Management (1 of 2)

First-line managers (often called

supervisors)
• Responsible for the daily supervision
of the nonmanagerial employees
• Paint foreman overseeing a crew of painters at a
University

Middle managers
• Supervises first-line managers
• Responsible for finding the best way
to use resources to achieve
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• Levels of Management (2 of 2)

Top managers
• Responsible for the performance of
all departments
• Establish organizational goals
• Decide how different departments
should interact
• Monitor how well middle managers in
each department use resources to
achieve goals
• President of a university
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• Levels and Skills of Managers
(2 of 2)
Figure 1.4
Relative
Amount of Time
Managers
Spend on the
Four Managerial
Tasks

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• Managerial Skills

Conceptual skills
• The ability to analyze and diagnose a
situation and distinguish between
cause and effect
Human skills
• The ability to understand, alter, lead,
and control the behavior of other
individuals and groups
Technical skills
• Job-specific skills required to perform a
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particular type of work or occupation at
• Figure 1.5: Types and
Levels of Managers

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• Core Competency

Core competency
• Specific set of departmental skills,
abilities, knowledge and experience
that allows one organization to
outperform its competitors
• Skills for a competitive advantage
• Google’s core competency, research and
development, allows them to develop innovative
products and services (computerized glasses,
self-driving cars).

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• Restructuring and Outsourcing

Restructuring
• Downsizing an organization by
eliminating the jobs of large numbers
of top, middle, and first-line
managers and nonmanagerial
employees
Outsourcing
• Contracting with another company,
usually in a low-cost country abroad,
to perform a work activity the
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company previously performed itself
• Empowerment

Empowerment
• Empowerment involves giving
employees more authority and
responsibility over how they perform
their work activities.
• Example: Valve Corporation has no
managers, no hierarchy or top-down
control. Employees pick their own
projects.

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• Challenges for Management in
a
Global Environment
Building a competitive advantage
Maintaining ethical and socially
responsible standards
Managing a diverse workforce
Utilizing new technologies
Practicing global crisis
management

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• Building Competitive
Advantage
Competitive advantage
• Ability of one organization to
outperform other organizations
because it produces desired goods or
services more efficiently and
effectively than its competitors
Innovation
• The process of creating new or
improved goods and services or
developing better ways to produce or
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provide them
• Figure 1.6 Building Blocks of
Competitive Advantage

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• Turnaround Management

Turnaround management
• Creation of a new vision for a
struggling company using a new
approach to planning and organizing
to make better use of a company’s
resources to allow it to survive and
eventually prosper
• Apple’s Steve Jobs excelled at turnaround
management.

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• Maintaining Ethical and
Socially Responsible
Standards
Managers are under considerable
pressure to make the best use of
resources.
Too much pressure may induce
managers to behave unethically
and even illegally.
• Wells Fargo Scandal “Eight is
great”

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• Managing a Diverse Workforce

To create a highly trained and

motivated workforce, managers
must establish human resource
management (HRM) procedures that
are legal and fair and do not
discriminate against organizational
members.
• Accenture uses a diverse
workforce to its advantage.

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• Utilizing New Technologies

An efficient and effective IT system

may improve an organization’s
performance.
• UPS uses ORION
• A GPS system that optimizes drivers’ routes

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• Practicing Global Crisis
Management
1. Create teams to facilitate rapid
decision- making and
communication.
2. Establish the organizational chain
of command and reporting
relationships necessary to mobilize
a fast response.
3. Recruit and select the right people
to lead and work in such teams.
4. Develop bargaining and negotiating
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