1. Management Essentials of Contemporary Gareth R. Jones
First Canadian Edition
Gareth R. Jones
Texas A&M University
Jennifer M. George
Nancy Langton
University of British Columbia

2. 1-2 1
Managers
and Managing

3. Learning Objectives
1. Describe what management is, what managers do, what organizations are for, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals.
2. Explain how planning, organizing, leading, and controlling (the four principal managerial functions) differ, and explain how managers’ ability to handle each one can affect an organization’s performance.
3. Differentiate among three levels of management and understand the responsibilities of managers at different levels in the organizational hierarchy.
4. Identify the different roles managers perform and the skills they need to execute those roles effectively.
5. Explain the key challenges managers face in the Canadian environment.
6. Discuss the principal challenges facing managers in today’s increasingly competitive global environment.

4. Management Key Concepts
Organizations: People working together and coordinating their actions to achieve specific goals.
Goal: A desired future condition that the organization seeks to achieve.
Management: The process of using organizational resources to achieve the organization’s goals by...
Planning, Organizing, Leading, and Controlling
n Management Key Concepts
n Organizations: Refer to large businesses such as GM as well as a local, small business known to students. Be sure to also mention non-profit, service groups such as a hospital.
n Goals: Ask students what their personal goal might be. Business examples might be growth rates, profitability, customer service levels.
n Planning, Organizing, Leading, and controlling
›Again, focus on individual goals to drive the point home. All of us perform the 4 functions: ask students how these can help in goal attainment.

5. Additional Key Concepts
Resources are organizational assets and include:
People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.
n Students usually relate to machinery and people as common business resources, but be sure to stress raw materials, information, capital.
n Many firms today have information as their prime resource and this can be expected to grow in the future.
n Managers have the exciting task of deciding how to use these resources to meet goals. Again, consider an individual and their use of scarce resources to achieve goals. Most students will relate to this.

6. Achieving High Performance
Organizations must provide a good or service desired by its customers.
Steve Jobs of Apple Computer manages his firm to provide quality computers.
Physicians, nurses, and health care administrators seek to provide healing from sickness.
McDonald’s restaurants provide burgers, fries and shakes that people want to buy.
n Point out that common business failures usually are caused by failing to respond to customer needs.
n Products are not always the good desired by the customer. When a customer buys a power drill, she likely wants a hole—not a drill. This means that if a new system emerges for making holes (lasers??), the drill market will shrink

7. Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve them.
n Managers need to do a good job in using scarce resources.
n If a firm could only be efficient or effective, which should it be? The answer is, of course, effective.
› Example: if a firm may be the most efficient producer of slide rules, however, they are vulnerable to a very inefficient (but effective) calculator firm.
› Naturally, The efficient firm that is also effective is very strong (like the Japanese car producers in the 1980’s)

8. Figure 1.1 Efficiency, Effectiveness, and Performance in an Organization

9. Managerial Functions
Henri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800s.
Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of:
Planning,
Organizing,
Leading,
Controlling.
n Henri Fayol (1916)
› Fayol was a top-level manager, not a theorist. He paid special attention to the manager’s job and noticed all used the four functions. (planning, organizing, leading, controlling)
› Mention to students that ALL managers (and all people) use these four functions to differing degrees in their jobs and life itself.

10. Figure 1.2 Four Functions of Management

11. Planning
Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective and efficient the organization is and determines the strategy of the organization.
n Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.
› Point out that effective prior planning is the essence of good management.
n These steps should be followed in order:
1. Which goals should be pursued?
2. How should the goals be attained?
3. How should resources be allocated?
n Good planning determines how effective and efficient the organization. It also helps managers determine the strategy of the organization.
› Focus these concepts at the student’s personal level. They must plan everything from choosing a major, selecting classes, and allocate study time between them.

12. Organizing
In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.
Managers will group people into departments according to the tasks performed.
Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.
n Organizing: managers create the structure of working relationships between organizational member that best allows them to work together and achieve goals.
n The key is to bring people together so that the goals can be achieved. This is a difficult task since managers must deal with people. Further, point out that this is always changing.
n People are grouped into departments according to the tasks performed. Some examples include Marketing, Finance, Production, etc.
n Managers will also layout lines of authority and responsibility for members. This depicts how workers report to managers through the firm and is called an organizational structure. This structure is the outcome of organizing.

13. Leading
In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.
Leadership involves a manager using power, influence, vision, persuasion, and communication skills.
The outcome of the leading function is a high level of motivation and commitment from employees to the organization.
n Leading is a critical function of management.
› Ask students to give examples of great leaders. Why were these leaders seen as leaders?
n Managers must state a clear vision for employees to follow, and help employees in attaining goals.
n Effective leadership involves using power, influence, vision, persuasion, and communication skills. Try to relate these concepts to the examples of leaders provided by students above.
n Good leadership is usually found in the high performing organization such as General Electric (Jack Welch), David Johnson of Campbell Soup.

14. Controlling
In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.
Managers will also take action to increase performance as required.
The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.
n In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
n All organizations run into the unexpected, or errors can be made. Managers must be prepared to first identify that a problem exists and then correct it.
n Managers monitor individuals, departments, and the organization to determine if desired performance has been reached.
n The controlling function must accurately measure performance and then determine if it can be improved. This task is done at all levels of management.

15. Management Levels Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.
Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.
Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.
n Who Runs the Organization?
n Ask the students to provide examples of each level of manager as found in the College:
› First-line Managers: responsible for day-to-day operation. Example: Department Head or Chair.
› Middle Managers: Supervise first-line managers. Example: Dean
› Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. Example: President, Vice-President.

16. Figure 1.3 Management Hierarchy

17. Figure 1.4 Relative Amount of Time That Managers Spend on the Four Managerial Functions

18. Restructuring
Top Management have sought methods to restructure their organizations and save costs.
Downsizing: eliminate jobs at all levels of management.
Can lead to higher efficiency.
Often results in low morale and customer complaints about service.
n Restructuring—Right or Wrong?
n Top Management has sought methods to restructure their organizations and save costs.
n Downsizing: eliminate jobs at all levels of management to generate higher efficiency
› Ask students if they know of someone that has lost their job as a result of downsizing.
› What is the student opinion of this?
n           Notice that efficiency gains can be lost if downsizing results in low moral and customer complaints about service.

19. Management Trends
Empowerment: expand the tasks and responsibilities of workers.
Supervisors might be empowered to make some resource allocation decisions.
Self-managed teams: give a group of employees responsibility for supervising their own actions.
The team can monitor its members and the quality of the work performed.
n Empowerment: expand the tasks and responsibilities of workers.
› Students are empowered to make more decisions about their life and career in college than in high school. Point out that empowerment also is accompanied by responsibility.
› Many outstanding firms such as Southwest Airlines, Rubbermaid and others empower their employees.
› For empowerment to work, managers must have the responsibility for the task but also the authority to make decisions.
n Self-managed teams: give a group of employees responsibility for supervising their own actions
› Students do extensive work in teams, and likely have been frustrated when one member does not pull their weight. How can a team monitor its members and the ensure quality of the work performed?

20. Managerial Roles Described by Mintzberg.
A role is a set of specific tasks a person performs because of the position they hold.
Roles are directed inside as well as outside the organization.
There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
n Described by Mintzberg.
n A role is a set of specific tasks a person performs because of the position they hold.
n Students perform roles in many college positions—ask for examples for each of the 3 role categories
n Interpersonal Roles: Roles managers assume to coordinate and interact with employees and provide direction to the organization.

21. Interpersonal Roles
Roles managers assume to coordinate and interact with employees and provide direction to the organization.
Figurehead role: symbolizes the organization and what it is trying to achieve.
Leader role: train, counsel, mentor and encourage high employee performance.
Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
n Figurehead role: symbolizes the organization and what it is trying to achieve.
› This provides the public view of the organization. Consider examples such as Winston Churchill, Martin Luther King, and others.
n Leader role: train, counsel, mentor, and encourage high employee performance.
n Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
n Students will suggest club leaders, sorority and fraternity leaders and the like. These are critical leadership roles.

22. Informational Roles
Associated with the tasks needed to obtain and transmit information for management of the organization.
Monitor role: analyzes information from both the internal and external environment.
Disseminator role: manager transmits information to influence attitudes and behavior of employees.
Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
n Informational Roles: Associated with the tasks needed to obtain and transmit information for management of the organization.
n Monitor role: analyzes information from both the internal and external environment.
n Disseminator role: manager transmits information to influence attitudes and behavior of employees.
n Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
n Students need to know that good top managers act in all of these roles each day. Look in the Wall Street Journal any day to find examples (good and bad) of managers performing these roles.

23. Decisional Roles
Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
Entrepreneur role: deciding upon new projects or programs to initiate and invest.
Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.
n Decisional Roles: Associated with the methods a manager uses to plan strategy and utilize resources to achieve goals.
› Ask for examples of these roles that students will enter.
n Entrepreneur role: deciding upon new projects or programs to initiate and invest.
› Students will change majors, seek special classes or projects.
n Disturbance handler role: handle an unexpected event or crisis such as a plant fire.
› Students often have to react to problems ranging from family emergencies to new opportunities in the classrooms. Managers must do the same things on a larger scale.
n Resource allocation role: divide resources between divisions.
› Consider how the University must change budget allocations between departments due to changes in student demand. This is not an easy task!

24. Managerial Skills
There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect.
2. Human skills: the ability to understand, alter, lead, and control people’s behavior.
3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal education, training, and practice.
n It is hard to find out the real problem in a situation. Managers must ask many questions and listen carefully to determine problems. Ironically, it is often lower-level managers that can best see the problem but they often have no ability to fix it.
n A good manager is usually a “people-person”; that is, someone who likes to work with others.
n  Most managers begin their career in a given area. Students major in these areas and will branch-out based on skills and experience.
n Negotiator role: negotiate solutions between other managers, unions, customers, or shareholders.

25. Figure 1.5 Conceptual Human and Technical Skills Needed by Three Levels of Management

26. Challenges for Canadian Managers
Organizational Size
The Types of Organizations
The Political and Legal Climate
Managing a Diverse Workforce
n Managing in Canada presents a number of unique challenges and opportunities.
n Most managers manage in small organizations. Over 97 percent of organizations in Canada employ fewer than 50 people.
Managers can work for either publicly held or privately held organizations. They can also work in public sector organizations.
The political and legal climate affects some of the decisions that managers can make.
Today’s workplace is far more diverse than the workplace of 20 years ago. Managers must work to get people to work together.

27. Management Challenges in a Global Environment
Increasing number of global organizations.
Building competitive advantage through superior efficiency, quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Using new technologies.
n Management is a fun and exciting career and topic of study. We live in a fast changing world and managers are setting the course for the future.
n Given the increasing global emphasis, the focus on superior efficiency, quality, innovation, and customer responsiveness, students can expect to be able to influence a firm faster than ever before.
n Finally, be sure to note the increasing emphasis business is placing on the need to be ethical managers as we work with an increasingly diverse work force.

28. Figure 1.6 The Building Blocks of Competitive Advantage