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 levels in the organizational hierarchy.

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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 managers face in
today’s increasingly competitive global environment.

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 What Is Management? (1 of 4)

• All managers work in organizations

• Organizations
– Collections of people who work together and
coordinate their actions to achieve a wide variety
of goals or desired future outcomes

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 What Is Management? (2 of 4)

• Managers
– The people responsible for supervising the use of
an organization’s resources to meet its goals

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 What Is Management? (3 of 4)

• Management
– The planning, organizing, leading, and controlling
of human and other resources to achieve
organizational goals effectively and efficiently

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 What Is Management? (4 of 4)

• Resources
– Include assets such as:
• People and their skills, know-how, and experience
• Machinery
• Raw materials
• Computers and information technology
• 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

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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
• Effectiveness
– A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
the organization achieves those goals

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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 $97,730 with a projected growth
rate in job openings of 5 percent to 8 percent
between now and 2024.
3. Learning management principles can help
you make good decisions in non-work
contexts.
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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

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 Example: Alcon

• Scott Parish is the chief financial officer and chief

operating officer of Alcon Entertainment.
• Maintaining Alcon’s growth is a significant challenge in
a turbulent and ever-changing entertainment business.
• Managers like Scott Parish must help companies stay
creative and create profitable content in an industry
rapidly evolving amid changing consumer tastes and
technology.

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 Organizing (1 of 2)

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

• Managers must decide 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

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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
– Involves managers using their power, personality,
influence, persuasion, and communication skills to
coordinate people and groups

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 Controlling (1 of 2)

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

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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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 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 Move quickly to take corrective action to deal with unexpected
handler 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 resource 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.

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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.

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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 sales department

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 Figure 1.3 Levels of Management

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 Levels of Management (1 of 2)

• First-line managers
– Responsible for the daily supervision of the
nonmanagerial employees
• Middle managers
– Supervises first-line managers
– Responsible for finding the best way to use
resources to achieve organizational goals

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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

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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

Jump to Appendix 3 for description

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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 particular type
of work or occupation at a high level

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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

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 Restructuring

• 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 company previously performed itself

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 Empowerment

• Empowerment
– Giving employees more authority and
responsibility over how they perform their work
activities

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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 IT and e-commerce
• 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 provide them

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 Figure 1.6 Building Blocks of Competitive
Advantage

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 Example - Alcon

• Entertainment companies like Alcon are seeking ways

to more economically produce their content amid
tightening margins and smaller audiences.
• One way Alcon is responding to this pressure is by
expanding into music production that will support its
film and television production endeavors.
• Producing music “in-house” reduces cost, providing
Alcon with maximum flexibility to use music as it sees
fit.

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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

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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

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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

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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 strategies to
manage the conflicts that arise
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 Video: PODS

• How do the employees at PODS use planning,

organizing, leading and controlling to manage
140,000 containers in service?

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 Appendix 1 Figure 1.1 Efficiency, Effectiveness,
and Performance in an Organization
Figure 1.1, Efficiency, Effectiveness, and Performance in an Organization.
• Low efficiency/high effectiveness: Manager chooses the right goals to
pursue, but does a poor job of using resources to achieve these goals.
Result: A product that customers want, but that is too expensive for them
to buy.
• Low efficiency/ low effectiveness: Manager chooses wrong goals to pursue
and makes poor use of resources. Result: A low-quality product that
customers do not want.
• High efficiency / high effectiveness: Manager chooses the right goals to
pursue and makes good use of resources to achieve these goals. Result: A
product that customers want at a quality and price they can aord.
• High efficiency / low effectiveness : Manager chooses inappropriate goals,
but makes good use of resources to pursue these goals. Result: A high-
quality product that customers do not want.
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Jump back to Slide 10
 Appendix 2 Figure 1.2 Four Tasks of
Management
Four Tasks of Management.
Planning Choose appropriate organizational goals and courses of
action to best achieve those goals.
Organizing Establish task and authority relationships that allow
people to work together to achieve organizational goals.
Organizing Establish task and authority relationships that allow
people to work together to achieve organizational goals.
Controlling Establish accurate measuring and monitoring
systems to evaluate how well the organization has achieved its
goals.

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Jump back to Slide 13
 Appendix 3 Levels and Skills of Managers (2 of 2)
The graphic shows the relative importance of planning,
organizing, leading, and controlling—the four principal
managerial tasks.
The importance of the task depends on the manager’s position
in the managerial hierarchy. First-line managers show the
greatest importance in leading. Middle managers slightly less on
importance in leading than first-line managers, and more in
planning. Top managers have a great responsibility in planning,
followed by organizing, leading, and then controlling. First-line
managers have the least amount of importance in controlling.

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