CHAPTER 1

WHY STUDY MANAGEMENT?

1. It creates job opportunities for you by allowing you to develop the conceptual skills that
you will need if you ever want to become a manager.
2. It enables self-knowledge by better understanding the organization and social forces that
influence who we are.
3. It may improve your job satisfaction because it helps you understand your own managers
better and thereby increases the likelihood youll get along with them.
4. It helps you to better understand how the various organizations you come into contact
with are managed.
Managers must develop strong technical skills (expertise in a particular area such as
marketing, accounting, finance, or human resources) and strong human skills (abilities in
getting along with people, leadership, helping others to be motivated, communication,
and conflict resolution).
However, technical and human skills by themselves are insufficient to get promoted into
management
Rather, it is strong conceptual skills that distinguish people who get promoted that is,
the ability to think about complex and broad organizational issues.
First- line supervisors who manage the work of those organizational members who are
involved in the actual production or creation of an organizations products or services
Middle managers who manage the work of first-line supervisors and others
Top Managers who have organization-wide managerial responsibilities, such as chief
executive officers (CEOs), vice-presidents and board chairs
WHAT IS MANAGEMENT?
Management (1) the process of planning, organizing, leading, and controlling human and
other organizational resources (four main functions of management) with the aim of (2) the
effective achievement of organizational goals (purpose of management)
Organization - a goal-directed (planning), deliberately structured (organizing) group of
people working together (leading) to achieve results (controlling)
3 overarching roles of a manager

Interpersonal roles: leader, liaison, and figurehead

Decisional roles: resource allocator, negotiator, entrepreneur and crisis handler
Informational roles: monitor, disseminator, and spokesperson

Planning means identifying an organizations goals and strategies, as well as the appropriate
organizational resources required to achieve those goals and implement those strategies
Organizing means ensuring that tasks have been assigned and a structure of organizational
relationships created that facilitates meeting organizational goals.
Leading means relating to others so that their work efforts lead to the achievement of
organizational goals
Controlling means ensuring that the actions of organizational members are consistent with the
organizations values and standards
DEFINING EFFECTIVE MANAGEMENT
Effectiveness means choosing the right overarching organizational goals to pursue.
Efficiency refers to the level of output that is achieved with a given level of inputs
Difference of Effective and Efficient
Effectiveness deals with the issue of which goals an organization should pursue, whereas
efficiency focuses on how to achieve those goals with the minimum expenditure of
resources
Ex. If maximizing profits is deemed effective, then in many cases it may be efficient to
pollute the environment within legal limits
Mainstream Management is characterized by its emphasis on materialism and individualism
Multistream Management is characterized by its emphasis on multiple forms of well-being
for multiple stakeholders
Stakeholder is any group or person within or outside an organization that is directly affected
by the organization and has a stake in its performance
TWO APPROACHES TO PLANNING
Mainstream planning is all about managers setting goals, making plans, and designing
strategies to achieve these goals
Multistream the approach to planning emphasizes how managers work alongside others to set
goals and design strategies (multistream managers use practical wisdom to achieve multiple
forms of well-being for multiple stakeholders)

Practical Wisdom (prudence) a virtue that fosters the capacity for deliberation and
action to obtain what is good for the community, especially by asking insightful

questions, evaluating real-world management situations, and applying relevant

knowledge
TWO APPROACHES TO ORGANIZING
Mainstream mainstream managers use rational analytic skills to develop structures and
systems to assign jobs within them
Multistream multistream management de-emphasizes the hierarchical approach to organizing
that is evident in Mainstream management

Courage a virtue that involves acting in hopes of correcting unjust structures, and is
evident when someone promotes change initiatives that have the potential to improve
overall happiness even if this might threaten ones own status
TWO APPROACHES TO LEADING

Mainstream In order to motivate others so that their work efforts help to achieve
organizational goals, Mainstream managers use systems and interpersonal skills
Multistream multistream leadership nurtures workplaces where the emphasis on financial and
productivity goals is balanced by an emphasis on healthy social relationships.

Self Control (temperance) is a virtue that helps individuals overcome impulsive

actions, self-serving use of their power, and greediness
TWO APPROACHES TO CONTROLLING

Mainstream is all about ensuring that organizational members do what they are supposed to be
doing, and t hat their performance meets expectations

Value Chain refers to the sequence of activities needed to convert an organizations

inputs (e.g. raw materials, new employees) into outputs (e.g. products and services)
Information Systems help to identify, collect, organize and disseminate information
Bureaucratic control is evident when rules, regulations, policies, and standard
operating procedures are used to control the behaviour of organizational members
Market Control is evident when competition is used to control behaviour of
organizational members
Clan Control is evident when shared values, norms, and expectations are used to
control the behaviour of organizational members

Multistream for multistream managers, control goes beyond simply ensuring that
organizational directiveness are followed, and instead focuses on overseeing the values, and
particularly the sense of justice that guides organizational behavior

Justice is a virtue that justifies organizations, holds them together, and ensures that
everyone connected with an organization is treated fairly
WHY STUDY TWO APPROACHES TO MANAGEMENT

It nurtures self-understanding
It improves understanding of management
It develops critical thinking skills
It reduces bias
CHAPTER 3
INTRODUCTION TO THE ENVIRONMENTS OF MANAGEMENT

Task Environment contains four key groups of stakeholders that managers need to pay
attention to: customers, members, owners, and other organizations (e.g. suppliers and
competitors)
Macro Environment contains four dimensions that managers must deal with at the
regional or national level: sociocultural, natural, political-legal, and economic-technological
environments
THE MAINSTREAM VIEW OF KEY STAKEHOLDERS IN THE TASK
ENVIRONMENT
Customers are the stakeholders who consume an organizations product and service outputs
Members are employees and volunteers who work for or belong to an organization
Owners are stakeholders who make the basic decisions as to what an organization is and does,
and are responsible for the creation and overarching governance of the organization
THE MAINSTREAM VIEW OF THE FOUR DIMENSIONS IN THE MACRO
ENVIRONMENT
Sociocultural Environment refers to the norms, customs, and values of the general population
and its demographic subgroups
Think Thank is an organization that conducts research to inform and influence areas like
social and public policy, technology, and defense
Natural Environment is a component of the macro environment that includes all living and
nonliving things that have not been created by human technology or human activity
Ecological Footprint refers to how many of Earths natural resources measured in acres, are
required to sustain human consumption and to absorb the resulting waste

Political-Legal Environment includes both the prevailing philosophy and objectives of the
various levels of government, as well as their ongoing laws and regulations. Ex. It includes
legislation dealing with workplace health and safety, and consumer protection, pollution,
international trade, and antitrust laws
Documentational Capitalism is characterized by an emphasis on detailed contracts, public
financial reports, and management independence and rights
Relational Capitalism is characterized by an emphasis on relational contracts, the long-term
reputations of organizations, and interdependence and rights of stakeholders
Economic environment refers to how financial resources are used and distributed within a
specific region or country
Technology is the combinations of equipment (e.g. computers, machinery, tools) and skills
(e.g. techniques, knowledge, processes) by which the acquisition, design, production, and
distribution of goods and services can be managed
Acquisitive economics refers to managing property and wealth in such a way as to maximize
the short-term monetary value for owners