1. Managers and Management
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2. Learning Outcomes
Describe the difference between managers and operatives
Define the term management
Compare efficiency and effectiveness
Describe the four management processes
Discuss the three levels of managers
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3. Learning Outcomes Review the essential roles of management
Learn whether the manager’s job is generic
Analyze four skills of successful managers
Describe the value of studying management
Learn how humanities and social science courses are relevant to management
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4. Common Characteristics of Organizations
Goals
Structure
People l
An organization is a systematic arrangement of people to accomplish some specific purpose. Every organization has a purpose, people or members, and a systematic structure. The purpose of an organization is expressed in terms of a goal or set of goals. Within the organization’s structure, its employees strive to achieve these goals. B A
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5. The Levels of an Organization
Supervise
Others
Top
Managers
Middle
Managers
First-Line
Managers
We can categorize organizational members in two ways. Operatives work directly on a job or task and have no responsibility for overseeing the work of others. Managers direct the activities of other people in the organization. Usually classified as top, middle, or first-line, managers supervise both operative and lower-level managers.
First-line managers supervise the day-to-day activities of operative employees. Middle managers represent the level of management between first-line managers and top management. These managers translate the goals of top management into specific details that lower-level managers can perform. Top managers make decisions about the direction of the organization and set policies that affect all organizational members.
Work
on Jobs
Operative Employees
The Levels of an Organization
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6. How Do We Define Management?
Means
Efficiency
Ends
Effectiveness
Goals
Resource Usage
Low
Waste
High
Attainment
Goal Attainment
The term management refers to the process of getting things done, through other people, in an efficient and effective manner. Process refers to the primary functions that managers perform. Referring to inputs and outputs, doing the task right is being efficient. Doing the right task is being effective. So, managers are concerned not only with attaining goals (effectiveness) but also attaining them efficiently.
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7. The Process of Management
Planning
Organizing
The Process
of Management
Leading
Most experts on the subject of management endorse the concept of four basic interdependent management functions. Planning consists of several elements: defining an organization’s goals, establishing a strategy to achieve them, and developing a structure to coordinate goal achievement activities. Organizing includes determining what tasks will be done, who will do them, how the tasks will be grouped, who will report to whom, and where decisions will be made. Leading involves motivating employees, directing the activities of others, selecting effective communication channels, and resolving conflicts. Controlling includes monitoring the organization’s performance, comparing it with previously set goals, and correcting deviations to keep the organization on course.
Controlling
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8. The Roles of Management
The Mintzberg
Studies
Decisional
Informational
In the 1960s, Henry Mintzberg concluded that managers perform ten roles that can be grouped around three themes: interpersonal relationships, information transfer, and decision making.
Managers perform three types of interpersonal roles:
• Figureheads perform ceremonial or symbolic roles.
• Leaders train, motivate, and discipline employees.
• Liaisons contact external information sources.
Managers perform three types of informational roles:
• Monitors collect marketplace information from outside sources.
• Disseminators transmit information to organizational members.
• Spokespersons represent their organizations to outsiders.
Managers perform four types of decisional roles:
• Entrepreneurs initiate and oversee new projects to improve organizational performance.
• Disturbance handlers take action to respond to unforeseen problems.
• Resource allocators control human, mechanical, and monetary resources.
• Negotiators bargain with others to gain advantage for their own units.
Interpersonal
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9. Is The Manager’s Job Universal?
Level in the
Organization
Profit Versus
Non-Profit
While the importance of managerial roles varies depending on a manager’s position within an organization, the differences are of degree and emphasis, not of function. As managers move up the organization, for example, they spend less time supervising and more time planning. All managers, however, make decisions and plan, lead, organize, and control. But the amount of time they give to each activity is not necessarily constant. In addition, the content of the managerial activities changes with the manager’s level.
When measuring managerial performance in business, profit (the bottom line) is an unambiguous criterion. Even though not-for-profit organizations need money to survive, however, their managers do not live and die to maximize profits. Given this difference, managers working in profit and not-for-profit organizations must perform similar functions: planning, organizing, leading, and controlling.
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10. The Roles That Managers Play
Small Firms
Importance
Large Firms
Spokesperson
High
Resource Allocator
Entrepreneur
Figurehead
Leader
Liaison, Monitor
Disturbance Handler
Negotiator
Moderate
Consider the following definition of a small business: any independently owned and operated profit-seeking enterprise that has less than 500 employees. Such businesses may be “small,” but they are not insignificant. For example, they account for about 97 percent of all non-farm business in the United States and will generate 50 percent of all new jobs during the coming decade.
Is the job of managing in a small business different from that of managing in a large one? Yes, the difference lies in the importance of roles. The small business manager’s most important role is that of spokesperson who meets with customers, obtains financing from bankers, seeks new opportunities, and promotes change. The manager in a large corporation, in contrast, is more internally directed—toward deciding which organizational units get what available resources and how much of them. Even so, managers in both large and small organizations perform essentially the same activities. The differences lie in how they go about them and the proportion of time they spend on each.
Disseminator
Low
Entrepreneur
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11. Contemporary Management Issues
Decision
Making
National
Borders
Handling
Change
Management concepts are not universal. The concepts presented in this text are germane to English-speaking democracies. Managers must modify these concepts when working in countries whose economic, political, social, or cultural environment differs greatly from that of the “free-market” democracies.
Managers are decision makers and agents of change. Whether setting goals, structuring jobs, motivating and rewarding employees, or minimizing performance variances, managers must make decisions. The best managers can identify problems, assimilate appropriate data, make sense of the information, and decide the best way to solve them. Organizations today also operate in a world of dynamic change where managing chaos is the rule, not the exception. Successful managers acknowledge the rapid changes around them and adapt their practices to deal with those changes.
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12. General Management Skills
Conceptual
Interpersonal
General Management Skills
Technical
Political
Given that all managers perform the four management functions, to some degree, what are the critical areas related to managerial competence?
Effective managers must be proficient in the following four general skills areas:
1. Conceptual skills refer to the ability to analyze and diagnose complex situations. They help managers to to coordinate all of the interests and activities of the organization.
2. Interpersonal skills encompass the ability to to work with, understand, mentor, and motivate others.
3. All managers must have technical skills to apply specialized knowledge and expertise.
4. Managers need political skills to establish the right connections or to build a “power base.”
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13. Specific Management Skills
Handling conflicts
Motivating employees
Solving problems
Handling information
Growing and developing
Controlling the environment
Organizing and coordinating
Research has also identified specific sets of behaviors that explain more than 50 percent of a manager’s effectiveness.
Handling conflicts and motivating employees. Effective managers maximize positive on-the-job situations and minimize conflicts so that employees feel motivated to do their best work.
Strategic problem solving. Managers take responsibility for their decisions and ensure that subordinates use effective decision-making skills.
Handling information. Managers use information and communication channels for identifying problems, understanding environmental changes, and making effective decisions.
Growth and development. Managers use continual learning on the job to provide for the personal growth and development of themselves and their employees.
Controlling the organization’s environment and resources. Effective managers are proactive and stay ahead of environmental changes. They base decisions on clear, up-to-date, accurate knowledge of the organization’s objectives.
Organizing and coordinating. Managers organize around tasks and coordinate interdependent relationships among tasks wherever they exist.
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14. Management Competencies
Management Charter Initiative (MCI)
Initiate and implement change and improvement
Monitor, maintain, and improve delivery
Monitor and control the use of resources
Allocate resources effectively
Recruit and select personnel
Originating in the United Kingdom, the Management Charter Initiative (MCI) sets generic standards for management competence. The MCI standards have attracted international interest. While they can be applied to management in any industry, national differences can require adjustments. Initiate and implement change and improvement in services, products, and systems.
The following are specific elements that define management effectiveness according to MCI guidelines.
Initiate and implement change and improvement in services, products, and systems.
Monitor, maintain, and improve service and product delivery.
Monitor and control the use of resources.
Secure effective resource allocation for activities and projects.
Recruit and select personnel.
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15. Management Competencies
Management Charter Initiative (MCI)
Develop teams, individuals, and self
Plan, allocate, and evaluate work
Create, maintain, and enhance relationships
Seek, evaluate, and organize information
Exchange business information
Develop teams, individuals, and the manager himself or herself to enhance performance.
Plan, allocate, and evaluate work carried out by teams, individuals, and the manager himself or herself.
Create, maintain, and enhance effective working relationships.
Seek, evaluate, and organize information for action.
Exchange information to solve problems and make decisions.
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16. Management Issues The Importance of Management The Study of Management
Managers are usually more highly paid than operatives. As a manager’s authority and responsibility expand, so typically does his or her pay. So, compensation packages are one measure of the value that organizations place on good managerial skills. Most first-line supervisors earn between $30,000 and $55,000 a year. Middle managers start near $45,000 and top out at about $120,000 annually. Senior managers can earn $1 million or more per year. Reflecting the law of supply and demand, management superstars are wooed with attractive perquisites.
We study management because we interact with organizations every day and have a vested interest in improving the way they are managed. Why? Because we interact with them every day of our lives.
We also study management because after graduation we will either manage or be managed. For those who plan on careers in management, understanding the process of management can form the foundation on which to build their skills. Even if you do not plan to be a manager, the study of management will help you to understand the way your boss behaves and the internal workings of organizations.
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17. Management and Other Disciplines
Anthropology
Economics
Philosophy
Psychology
Sociology
Political Science
It is important to understand the humanities and social science courses that directly affect management practices.
Anthropology is the study of societies. It can help managers understand the fundamental values, attitudes, and behavior of people in different countries and within organizations.
Economics is concerned with the allocation and distribution of resources. It provides managers with an understanding of the changing economy and the role of competition and free markets in a global context.
Philosophy inquires into the nature of things, particularly values and ethics. Ethical concerns underlie the existence of organizations and what constitutes proper behavior within them.
Psychology seeks to measure, explain, and change behavior. This field of study can provide insights into human diversity, motivation, leadership, trust, employee selection, performance appraisals, and training.
Sociology studies people in relation to their fellow human beings. Managers can learn how globalization, cultural diversity, gender roles, and family-life are affecting organizations.
Political science studies the behavior of individuals and groups in a political environment. Managers can learn about the structuring of conflict, the allocation of power, and the use of power for individual self interest.
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