PART 1

Introduction to Management

CHAPTER 1

Understanding
the Manager’s Job

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Learning Objectives
After studying this chapter, you should be able to:
1. Define management, describe the kinds of managers found in
organizations, identify and explain the four basic management
functions, describe the fundamental management skills, and
comment on management as a science and art.
2. Justify the importance of history and theory to managers, and
explain the evolution of management through the classical,
behavioral, and quantitative perspectives.
3. Identify and discuss key contemporary management perspectives
represented by the systems and contingency perspectives, and
identify the major challenges and opportunities faced by
managers today.

© 2019 Cengage. All rights reserved.

 Discussion Starter (1)
• Unlike most traditional managers, Netflix CEO, Reed
Hastings does not have an office. He wanders around
headquarters, talking to people about their work and
their ideas. Hastings continues to look for the “next big
thing.”
– To watch a brief interview with Reed Hastings, visit
CNN Money (
http://money.cnn.com/video/news/2014/02/21/n-netflix-ceo-re
ed-hastings-business-of-being.cnnmoney/index.html
).
– What qualities and traits do you think are essential for a
manager to have in order to create a successful business?

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1-1 An Introduction to Management (slide 1 of 3)

• Organization
– A group of people working together in a structured
and coordinated fashion to achieve a set of goals
• Management
– A set of activities (including planning and decision
making, organizing, leading, and controlling) directed
at an organization’s resources (human, financial,
physical, and information) with the aim of achieving
organizational goals in an efficient and effective
manner

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1-1 An Introduction to Management (slide 2 of 3)

EFFICIENTLY
Using resources wisely
in a cost-effective way
and

EFFECTIVELY
Making the right decisions and
successfully implementing them

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1-1 An Introduction to Management (slide 3 of 3)

• Manager
– Someone whose primary responsibility is to carry out
the management process

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FIGURE 1.1 Kinds of Managers by Level and Area

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 Levels of Management
• Top managers
– Executives who manage the overall organization
– Create the organization’s goals, overall strategy, and operating
policies
• Middle managers
– Implement the policies and plans developed by top managers
– Supervise and coordinate the activities of lower-level managers
• First-line managers
– Supervise and coordinate the activities of operating employees
– Spend a large proportion of their time supervising the work of
their subordinates

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 Managing in Different Areas
of the Organization

Marketing Human Resources

Managers Managers

Kinds of
Financial Administrative
Managers Managers Managers
by Area

Operations Specialist
Managers Managers

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FIGURE 1.2 The Management Process

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 What Skills Do Managers Need?

Technical

Interpersonal Conceptual

Fundamental
Management
Diagnostic Skills Communication

Decision Time
Making Management

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 1-1c Fundamental Management Skills
(slide 1 of 3)

• Technical skills
– The skills necessary to accomplish or understand
the specific kind of work done in an organization
• Interpersonal skills
– The ability to communicate with, understand, and
motivate both individuals and groups
• Conceptual skills
– The manager’s ability to think in the abstract
• Diagnostic skills
– The manager’s ability to visualize the most
appropriate response to a situation
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 1-1c Fundamental Management Skills
(slide 2 of 3)

• Communication skills
– The manager’s abilities both to effectively convey ideas and
information to others and to effectively receive ideas and
information from others
• Decision-making skills
– The manager’s ability to correctly recognize and define
problems and opportunities and to then select an appropriate
course of action to solve problems and capitalize on
opportunities
• Time management skills
– The manager’s ability to prioritize work, to work efficiently, and
to delegate appropriately

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 1-1c Fundamental Management Skills
(slide 3 of 3)

• Watch this video from Bloomberg in which CEOs

identify what they believe to be one skill every leader
needs:
– YouTube (https://www.youtube.com/watch?v=NhW7bnh0sDk).

© 2019 Cengage. All rights reserved.

 Discussion Starter (2)

• Recall a recent group project or task in which

you have participated. Explain how members of
the group displayed each of the managerial
skills.

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 1-1d The Science and the Art of
Management
• The Science of Management
– Assumes problems and issues can be approached
using rational, logical, objective, and systematic
ways
– Requires technical, diagnostic, and decision-making
skills
• The Art of Management
– Requires a blend of intuition, experience, instinct,
and personal insights
– Relies heavily on conceptual, communication,
interpersonal, and time management skills

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1-2a The Importance of Theory and History
(slide 1 of 2)

• Why Theory?
– Provides a conceptual framework for organizing
knowledge and providing a blueprint for action
• Management theories are grounded in reality.
• Most managers develop and refine their own theories of
how they should run their organizations and manage the
behavior of their employees.

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1-2a The Importance of Theory and History
(slide 2 of 2)

• Why History?
– Stresses an awareness and understanding of
historical developments in management
• Understanding the historical context of management
provides a sense of heritage and can help managers avoid
the mistakes of others.

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1-2b The Historical Context of Management

• Robert Owen (1771–1858)

– Recognized the importance of an organization’s
human resources and expressed concern for the
personal welfare of workers
• Charles Babbage (1792–1871)
– Focused on efficiencies of production through
division of labor and advocated the application of
mathematics to management problems

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 1-2c The Classical Management
Perspective

• Classical management perspective

– Consists of two distinct branches—scientific
management and administrative management
• Scientific management
– Concerned with improving the performance of individual
workers
• Administrative management
– Focuses on managing the total organization

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 Scientific Management Pioneers (slide 1 of 2)

• Frederick W. Taylor (1856–1915)

– Replaced old work methods with scientifically-based
work methods
• Eliminated “soldiering,” where employees deliberately
worked at a pace slower than their capabilities
– Studied and redesigned jobs, introduced rest periods
to reduce fatigue, and implemented piecework pay
systems

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FIGURE 1.3 Steps in Scientific Management

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 Scientific Management Pioneers (slide 2 of 2)

• Frank Gilbreth (1868–1924) and Lillian Gilbreth

(1878–1972)
– Both developed techniques and strategies for
eliminating inefficiency.
• Frank reduced bricklaying movements, resulting in
increased output of about 200 percent.
• Lillian made substantive contributions to the fields of
industrial psychology and personnel management.

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 Administrative Management Theorists

• Henri Fayol (1841–1925)

– Identified the specific management functions of
planning, organizing, leading, and controlling
• Lyndall Urwick (1891–1983)
– Integrated scientific management with the work of
other administrative management theorists
• Max Weber (1864–1920)
– His theory of bureaucracy is based on a rational set
of guidelines for structuring organizations in the most
efficient manner.

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 Discussion Starter (3)

• What assumptions do the scientific

management and administrative management
perspectives make about workers? To what
extent are these assumptions still valid today?

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 The Classical Management
Perspective Today
• Contributions • Limitations
– Provides many – More appropriate for use
management techniques in stable, simple
and approaches that are organizations rather than
still relevant today the changing and complex
– Focused attention on organizations of today
management as a – Proposed universal
meaningful field of study guidelines that do not fit
every organization
– Slighted the role of the
individual in organizations

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 1-2d The Behavioral Management
Perspective

• Behavioral management perspective

– Emphasizes individual attitudes and behaviors and
group processes

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 Behavioral Management Advocates

• Hugo Munsterberg (1863–1916)

– Advocated applying psychological concepts to
employee selection and motivation
• Mary Parker Follett (1868–1933)
– Recognized the importance of human behavior in the
workplace

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 The Hawthorne Studies

• Conducted at Western Electric’s Hawthorne

plant between 1927 and 1932
– Illumination study
• Lighting adjustments affected the productivity of both control
and experimental groups of employees.
– Group study
• A piecework incentive pay plan caused workers to establish
informal levels of individual output.
– Overproducing workers were labeled “rate busters.”
– Underproducing workers were considered “chiselers.”
– Interview program
• Confirmed the importance of human behavior in the
workplace

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 The Human Relations Movement

• Human relations movement

– Grew out of the Hawthorne studies
– Proposed that workers respond primarily to the
social context of work, including social conditioning,
group norms, and interpersonal dynamics
– Assumed that the manager’s concern for workers
would lead to increased worker satisfaction and
improved worker performance

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 Human Relations Theorists

• Abraham Maslow (1908–1970)

– Advanced a theory suggesting that employees are
motivated by a hierarchy of needs that they seek to
satisfy
• Douglas McGregor (1906–1964)
– Proposed Theory X and Theory Y concepts
of managerial beliefs about people and work
• Theory X
– A pessimistic and negative view of workers consistent with the
views of scientific management
• Theory Y
– A positive view of workers; it represents the assumptions that
human relations advocates make

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Table 1.1 Theory X and Theory Y

Theory X 1. People do not like work and try to avoid it.

Assumptions 2. People do not like work, so managers have to control, direct, coerce,
and threaten employees to get them to work toward organizational
goals.
3. People prefer to be directed, to avoid responsibility, and to want
security; they have little ambition.

Theory Y 1. People do not naturally dislike work; work is a natural part of their lives.
Assumptions 2. People are internally motivated to reach objectives to which they are
committed.
3. People are committed to goals to the degree that they receive personal
rewards when they reach their objectives.
4. People will both seek and accept responsibility under favorable
conditions.
5. People have the capacity to be innovative in solving organizational
problems.
6. People are bright, but under most organizational conditions their
potential is underutilized.

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 Contemporary Behavior Science
in Management (slide 1 of 2)
• Organizational behavior
– Contemporary field focusing on behavioral
perspectives on management
– Draws on psychology, sociology, anthropology,
economics, and medicine
– Takes a holistic view of behavior and addresses
individual, group, and organization processes

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 Contemporary Behavior Science
in Management (slide 2 of 2)
• Important organizational behavior topics:
– Job satisfaction
– Stress
– Motivation
– Leadership
– Group dynamics
– Organizational politics
– Interpersonal conflict
– The structure and design of organizations

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 The Behavioral Management
Perspective Today
• Contributions • Limitations
– The importance of – The complexity of
behavioral process individuals makes
are more likely to be behavior difficult to
recognized by predict.
managers. – It is not always
– Managers are more accepted or
likely to view understood by
employees as practicing managers.
valuable resources
instead of mere tools.

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 1-2e The Quantitative Management
Perspective (slide 1 of 2)
• Quantitative management perspective
– Applies quantitative techniques to management
– Helped Allied forces manage logistical problems
during World War II
– Focuses on decision making, cost-effectiveness,
mathematical models, and use of computers to solve
quantitative problems

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 1-2e The Quantitative Management
Perspective (slide 2 of 2)
• There are two branches of the quantitative
approach:
– Management science
• Focuses specifically on the development of representative
mathematical models
– Operations management
• Concerned with helping the organization produce its
products or services more efficiently

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 The Quantitative Management
Perspective Today
• Contributions • Limitations
– Provides managers with – Cannot fully account for
an abundance of decision- individual behaviors and
making tools and attitudes
techniques – Competence needed
– Increased understanding many retard the
of overall organizational development of other
processes managerial skills
• Particularly useful in the – Typically require a set of
areas of planning and assumptions that may not
controlling be realistic

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 1-3a The Systems Perspective (slide 1 of 3)

• System
– An interrelated set of elements functioning as a
whole

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FIGURE 1.4 The Systems Perspective of Organizations

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 1-3a The Systems Perspective (slide 2 of 3)
• Open system
– An organizational system that interacts with its environment.
• Closed system
– A system that does not interact with its environment.
• Subsystems
– A system within another system
• Synergy
– Two or more subsystems working together to produce more
than the total of what they might produce working alone
• Entropy
– A normal process leading to system decline

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 1-3a The Systems Perspective (slide 3 of 3)

• Break into small groups. Select an organization

and diagram its inputs, transformation
processes, outputs, and feedback mechanisms.

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 1-3b The Contingency Perspective

• Universal perspectives
– Include the classical, behavioral, and quantitative
approaches
– Try to identify the “one best way” to manage
organizations
• Contingency perspective
– Suggests that appropriate managerial behavior in a
given situation depends on, or is contingent on,
unique elements in a given situation

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 1-3c Contemporary Management
Issues and Challenges
• Globalization of product and service markets
• Increased emphasis on ethics and social responsibility
• The use of quality as the basis for competition
• The shift to a predominately service-based economy
• Meeting the challenges of a recovering economy
• An increasingly diverse workforce
• Creating new organizational structures to provide
challenging, motivating, and flexible work environments
• The effects of new information technology on how work
is done in organization

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EXPERIENTIAL EXERCISE: Johari Window

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 Discussion Starter (4)

• Can a manager use tools and techniques from

several different perspectives at the same
time? For example, can a manager use both
classical and behavioral perspectives? Give an
example of a time when a manager did this,
and explain how it enabled him or her to be
effective.

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