Griffin FOM 10e Ch01 PPT Instructor Final

Fundamentals of
Management
Chapter One: Understanding the
Manager’s Job
Griffin, Management, 10e©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
Warm Up
• Unlike most traditional managers, Netflix CEO, Reed Hastings
does not have an office. He wanders around the headquarters,
talking to people about their work and their ideas. Hastings
continues to look for the “next big thing.”
• What qualities and traits do you think are essential for a manager
to have in order to create a successful business?
Learning Objectives (1 of 2)
By the end of this chapter you should be able to:
1-1 Describe management and the kinds of managers found in

organizations.
1-2 Explain the four basic management functions.
1-3 Describe the fundamental management skills and the

concept of management as both science and art.
1-4 Explain the importance of history and theory

to managers.
Learning Objectives (2 of 2)
By the end of this chapter you should be able to:
1-5 Explain the evolution of management thought through the

classical, behavioral, and quantitative perspectives.
1-6 Discuss the key contemporary management perspectives

represented by the systems and contingency
perspectives.
1-7 Identify the major challenges and opportunities

faced by managers today.
1-1 An Introduction to Management (1 of 2)
• 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
An Introduction to Management (2 of 2)
• Manager:
− Someone whose primary responsibility is to carry out
the management process. The role of a manager is to
carry out organizational goals in an efficient and
effective manner.
▪ Efficient: Using resources wisely in a cost-effective
way
▪ Effective: Making the right decisions and
successfully implementing them
1-1a Kinds of Managers
• 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
Figure 1.1 Levels of Management
1-1b Managing in Different Areas
of the Organization
• Marketing Managers: Areas related to getting people to buy products
or services
• Financial managers: Areas related to financial resources;
accounting, cash management, and investments
• Operations managers: Creating and managing the systems that
creates products or services
• Human resource managers: Hiring and developing employees,
recruiting, training and development, compensation
• Administrative managers: Generalist that have basic familiarity with
all functional areas of management
• Specialist managers: Public relations, R&D, and other unique areas
Figure 1.2 The Management Process
1-2 Basic Management Functions (1 of 2)
• Planning:
− Setting an organization’s goals and deciding how
best to achieve them
• Decision Making:
− Part of the planning process that involves selecting
a course of action from a set of alternatives
1-2 Basic Management Functions (2 of 2)
• Organizing:
• Determining how activities and resources are to be
grouped
• Leading:
• The set of processes used to get members of the
organization to work together to further the interests of the
organization
• Controlling:
• Monitoring organizational progress toward goal attainment
Discussion #1
What are the four basic functions that make up the

management process? How are they related to one
another?
1-3 Fundamental Management Skills (1 of 2)
• 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
1-3 Fundamental Management Skills (2 of 2)
• 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
Poll 1
Which type of management skills do you consider to be most important?
A. Technical
B. Conceptual
C. Communication
D. Decision-making
Knowledge Check 1
How are interpersonal skills different than communication skills?
A. Interpersonal skills motivate employees

B. Interpersonal skills tell employees what to do and how to do it
C. Interpersonal skills clarify the goals of the organization
Knowledge Check 1: Answer
How are interpersonal skills different than communication skills?
Managers spend considerable time interacting with people both inside

and outside the organization. Interpersonal skills include the ability to
communicate with, understand, and motivate both individuals and groups.
Communication skills refer to the manager’s abilities to both effectively convey

ideas and information to others and effectively receive ideas and information
from others. These skills enable a manager to transmit ideas to subordinates
so that they know what is expected, to coordinate work with peers and
colleagues so that they work well together, and to keep
higher-level managers informed about what is going on.
1-3a 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
1-4a 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.
1-4b 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.
1-5a 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
1-5b The Classical Management Perspective (1 of 5)
• 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
• 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
Discussion #2
Do some employees really practice soldiering? Why would they do this?

What are the advantages? What are the disadvantages? How can a
manager work to eliminate this practice if it exists within the organization?
• Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972)

− Part of the scientific management movement
− 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
Figure 1.3 Steps in Scientific Management
• Administrative management theorist:
• 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
Discussion #3
Briefly describe the principles of scientific management and
administrative management. What assumptions do these perspectives
make about workers? To what extent are these assumptions still valid
today?
• Contributions:
• Many management techniques and approaches that are still
relevant today
• Focused attention on management as a meaningful field of study
• Limitations:
• More appropriate for use in stable, simple organizations rather
than the changing and complex organizations of today
• Proposed universal guidelines that do not fit every organization
• Slighted the role of the individual in organizations
1-5c The Behavioral Management Perspective (1 of 5)
• Behavioral management perspective:

− Emphasizes individual attitudes and behaviors and
group processes
• 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
• Conducted at Western Electric’s Hawthorne plant

• 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
• 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
• 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
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.
1-5c Contemporary Behavioral Science in
Management (1 of 3)
• 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
Management (2 of 3)
• Important organizational behavior topics:
− Job satisfaction
− Stress
− Motivation
− Leadership
− Group dynamics
− Organizational politics
− Interpersonal conflict
− The structure and design of organizations
Management (3 of 3)
• Contributions:
− The importance of behavioral process are more likely to be
recognized by managers
− Managers are more likely to view employees as valuable
resources instead of mere tools
• Limitations
• The complexity of individuals makes behavior difficult to
predict
• It is not always accepted or understood by practicing
managers
1-5d The Quantitative Management Perspective (1 of 3)
• 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
• 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
• Contributions:
− Provides managers with an abundance of decision-making
tools and techniques
− Increased understanding of overall organizational processes
− Particularly useful in the areas of planning and controlling
• Limitations:
• Cannot fully account for individual behaviors and attitudes
• Competence needed may hinder the development of other
managerial skills
• Typically require a set of assumptions that may not be
realistic
1-6a The Systems Perspective (1 of 2)
• System:
− An interrelated set of elements functioning as a whole.
Includes inputs, transformation, processes, outputs, and
feedback
• 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, such as the relationship
between marketing, productions, and finance function
1-6a The Systems Perspective (2 of 2)
• Synergy:
− Two or more subsystems working together to produce
more than the total of what they might produce working
alone
▪ For example, Disney creates licensing agreements for
clothes, toys, and food when a new movie is released
• Entropy:
− A normal process leading to system decline
Figure 1.4 The Systems Perspective
1-6b 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
that situation
Group Activity #1
Break into small groups. Select an organization and diagram its inputs,
transformation processes, outputs, and feedback mechanisms.
1-7b Contemporary Management 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
Discussion #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.
Summary (1 of 2)
Now that the lesson has ended, you will have learned how to:
• Describe management and the kinds of managers found in

organizations.
• Explain the four basic management functions.
• Describe the fundamental management skills and the concept
of management as both science and art.
• Explain the importance of history and theory to managers.
Summary (2 of 2)
Now that the lesson has ended, you will have learned how to:
• Explain the evolution of management thought through the

classical, behavioral, and quantitative perspectives.
• Discuss the key contemporary management perspectives
represented by the systems and contingency
perspectives.
• Identify the major challenges and opportunities faced by
managers today.

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Fundamentals of

1-1 Describe management and the kinds of managers found in

1-2 Explain the four basic management functions.

1-3 Describe the fundamental management skills and the

1-4 Explain the importance of history and theory

1-5 Explain the evolution of management thought through the

1-6 Discuss the key contemporary management perspectives

1-7 Identify the major challenges and opportunities

What are the four basic functions that make up the

Which type of management skills do you consider to be most important?

How are interpersonal skills different than communication skills?

A. Interpersonal skills motivate employees

Managers spend considerable time interacting with people both inside

Communication skills refer to the manager’s abilities to both effectively convey

• The Art of Management:

• Provides a conceptual framework for organizing knowledge and

• Management theories are grounded in reality.

• Most managers develop and refine their own theories of how

• Stresses an awareness and understanding of historical

• Understanding the historical context of management provides a

• Robert Owen (1771–1858)

• Charles Babbage (1792–1871)

• Frederick W. Taylor (1856–1915)

− Replaced old work methods with scientifically-based work

− Eliminated “soldiering,” where employees deliberately

− Studied and redesigned jobs, introduced rest periods to

Do some employees really practice soldiering? Why would they do this?

• Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972)

• Henri Fayol (1841–1925)

• Behavioral management perspective:

• Hugo Munsterberg (1863–1916)

• Mary Parker Follett (1868–1933)

• Conducted at Western Electric’s Hawthorne plant

• Human relations movement:

− Grew out of the Hawthorne studies

− Proposed that workers respond primarily to the social

− Assumed that the manager’s concern for workers would

• Abraham Maslow (1908–1970)

• Douglas McGregor (1906–1964)

• Quantitative management perspective:

• There are two branches of the quantitative approach:

Can a manager use tools and techniques from several different

• Describe management and the kinds of managers found in

• Explain the evolution of management thought through the

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