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.
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.
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Discuss the principal challenges managers face in today’s
 What Is Management?
GOALS Managers
Organization Managers are the people
Organizations are responsible for supervising
collections of people who the use of an organization’s
work together and CEO
resources to meet its goals.
coordinate their actions to
achieve a wide variety of

Ext
Manager Manager Manager
goals or desired future

e
rna
outcomes.

lp
Employees Employees

res
ures
s
Resources
1. Employees and their skills, know-how, and Management
experience. Management includes the
2. Machinery. planning, organizing, leading, and
3. Raw materials. controlling of human and other
4. Computers and information technology. resources to achieve organizational
5. Patents, financial capital, and loyal customers. goals effectively and efficiently.
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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
A measure of A measure of
how well or the
how appropriateness
productively of the goals an
resources are organization is
used to pursuing
achieve a goal

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 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. 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.

2. The economic benefits of becoming a good

manager are also impressive.
3. Learning management principles can help
you make good decisions in nonwork
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 Four Tasks of Management

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 Steps in the Planning Process

Managers identify and select appropriate

organizational goals. e.g., A marketing manager set
new target to increase sales by 100%.

Develop strategies for how to achieve the goal and

achieve high performance. E.g., a marketing
manager develop the marketing strategies based on
the marketing mix (4Ps).

Deciding how to allocate organizational resources

to pursue the strategies that attain the goals. E.g., a
marketing manager identifying resources needed to
achieve the sales target such as agents, financial
supports for promotion etc.

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 Organizing

Organizing
• Structuring working relationships so
organizational members interact and
cooperate to achieve organizational goals
• Managers deciding how best to organize
resources, particularly human resources
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
• 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
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
• The outcome of the control process is the
ability to measure performance accurately
and regulate organizational efficiency and
effectiveness.
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 Managerial Roles Identified (1 of 3)

Type of Role Specific Role Examples of Role Activities

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.

Resource allocator Allocate organizational resources among different tasks

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

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

Figurehead Outline future organizational goals to employees at company
Interpersonal
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.

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.

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

Monitor Evaluate the performance of managers in
Informational
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.
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.
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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 Figure 1.3 Levels of
Management
Managing a company's overall
operations. E.g., delegating and
directing agendas, driving
profitability, managing company
organizational structure, strategy,
and communicating with the board.

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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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Levels of Management

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 of Management

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 organizational goals
• High school principal or a marketing manager

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 Levels and Skills of Managers
Figure 1.4
Relative
Amount of Time
Managers
Spend on the
Four Managerial
Tasks

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 Types and
Levels of Managers

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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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 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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 Recent changes in Management
Practices
Global competition Advances in technology

Give impact to tasks and responsibilities of managers in terms of the utilization

of resources and find solutions to improve organizational performance

Empowerment and Self-

Restructuring Outsourcing
managed Team
Downsizing an Contracting with Empowerment
organization by another company, involves giving
eliminating the usually in a low- employees more
jobs of large cost country authority and
numbers of top, abroad, to perform responsibility over
middle, and first- a work activity the how they perform
line managers and company their work activities.
nonmanagerial previously
employees
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performed itself
 Recent changes in Management
Practices
Global competition Advances in technology

Give impact to tasks and responsibilities of managers in terms of the utilization

of resources and find solutions to improve organizational performance

Empowerment and Self-

Restructuring Outsourcing
managed Team
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 Example of outsourcing: Apple

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Challenges for Management in a

Global Environment
Managing a
diverse
Maintaining workforce
ethical and
Utilizing new
socially
technologies
responsible
standards

Building Managing Practicing global

competitive an crisis
advantage organization 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

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Turnaround Management
• the process of reviving a company that is
struggling to make better use of a company’s
resources to allow it to survive and eventually
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 Building Blocks of Competitive
Advantage

Organization increase Organization create

efficiency by reducing new/improve P&S to
resources to produce fulfill customers’
product and services. wants.

How fast the organization

Organization produces can bring the new
products that is high products to market and
quality. respond to the
customers’ needs?

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 Maintaining Ethical and
Socially Responsible Standards
Managers are under
considerable pressure to
improve organization
performance.

Pressure is good for manager

in strategizing its department
on how to achieve the goals.

But too much pressure can be

harmful in the sense that
managers are being pressured
to fulfilled some stakeholders That leads the managers to
wants and expectations, or behave unethically, illegally.
maybe for personal interest.

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 Managing a Diverse Workforce
To create a highly trained
and motivated workforce,
managers must establish
human resource
management (HRM)
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 Utilizing New Technologies

An efficient and effective IT system

may improve an organization’s
performance.
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 Practicing Global Crisis
Management
2 main sources of global crisis

Natural causes. E.g., Human causes. E.g.,

earthquakes, diseases, industrial pollutions,
hurricanes, wildfires, terrorism, war, destruction of
natural environment.

To respond to the global crisis, management need to provide lessons on

how to POLC the resources.
• Create teams to facilitate rapid decision- making and communication.
• Establish the organizational chain of command and reporting
relationships necessary to mobilize a fast response.
• Recruit and select the right people to lead and work in such teams.
• Develop bargaining and negotiating strategies to manage the
conflicts that arise.

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