1. Managers and Management
PART I: Introduction 1
Managers and Management
Chapter 1
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2. Who Are Managers And Where Do They Work?
Organization
A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations—for-profit as well as not-for-profit organizations.
Where managers work (manage).
Common characteristics
Goals
Structure
People
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3. People Differences Operatives Managers
People who work directly on a job or task and have no responsibility for overseeing the work of others.
Managers
Individuals in an organization who direct the activities of others.
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4. Identifying Managers First-line managers Middle managers Top managers
Supervisors responsible for directing the day-to-day activities of operative employees
Middle managers
Individuals at levels of management between the first-line manager and top management
Top managers
Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members
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5. How Do We Define Management?
The process of getting things done, effectively and efficiently, through and with other people
Efficiency
Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs
Effectiveness
Means doing the right things; goal attainment
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6. Management Processes Planning Organizing
Includes defining goals, establishing strategy, and developing plans to coordinate activities
Organizing
Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made
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7. Management Processes (cont’d)
Leading
Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts
Controlling
The process of monitoring performance, comparing it with goals, and correcting any significant deviations
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8. Is The Manager’s Job Universal?
Level in the organization
Do managers manage differently based on where they are in the organization?
Profit versus not-for-profit
Is managing in a commercial enterprise different than managing in a non-commercial organization?
Size of organization
Does the size of an organization affect how managers function in the organization?
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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9. Is The Manager’s Job Universal? (cont’d)
Management concepts and national borders
Is management the same in all economic, cultural, social and political systems?
Making decisions and dealing with change.
Do managers all make decisions and deal with change in the same ways?
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.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.

10. General Skills for Managers
Conceptual skills
A manager’s mental ability to coordinate all of the organization’s interests and activities
Interpersonal skills
A manager’s ability to work with, understand, mentor, and motivate others, both individually and in groups
Technical skills
A manager’s ability to use the tools, procedures, and techniques of a specialized field
Political skills
A manager’s ability to build a power base and establish the right connections
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:
Conceptual skills refer to the ability to analyze and diagnose complex situations. They help managers to coordinate all of the interests and activities of the organization.
Interpersonal skills encompass the ability to to work with, understand, mentor, and motivate others.
All managers must have technical skills to apply specialized knowledge and expertise.
Managers need political skills to establish the right connections or to build a “power base.”
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11. Specific Skills for Managers
Behaviors related to a manager’s effectiveness:
Controlling the organization’s environment and its resources.
Organizing and coordinating.
Handling information.
Providing for growth and development.
Motivating employees and handling conflicts.
Strategic problem solving.
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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12. How Much Importance Does The Marketplace Put On Managers?
Good (effective) managerial skills are a scarce commodity.
Managerial compensation packages are one measure of the value that organizations place on them.
Management compensation reflects the market forces of supply and demand.
Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest-free loans, performance incentive packages, and guaranteed contracts.
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.
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13. Why Study Management?
We all have a vested interest in improving the way organizations are managed.
Better organizations are, in part, the result of good management.
You will eventually either manage or be managed.
Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior of individuals and the organizations.
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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