1. Understanding the Manager’s Job
Chapter One
Understanding the Manager’s Job

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Chapter Outline
An Introduction to Management
Kinds of Managers
Basic Management Functions
Fundamental Management Skills
The Science and the Art of Management
The Evolution of Management
The Importance of History and Theory
The Historical Context of Management
The Classical Management Perspective
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3. Chapter Outline (cont’d)
The Evolution of Management (cont’d)
The Behavioral Management Perspective
The Quantitative Management Perspective
Contemporary Management Thought
The Systems Perspective
The Contingency Perspective
Contemporary Management Challenges and Opportunities
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Learning Objectives
After studying this chapter, you should be able to:
Define management, describe the kinds of managers found in organizations, and briefly explain the four basic management functions.
Justify the importance of history and theory to managers and explain the evolution of management thought.
Discuss contemporary management issues and challenges.
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What is Management?
A set of activities
planning and decision making, organizing, leading, and controlling
directed at an organization’s resources
human, financial, physical, and information
with the aim of achieving organizational goals in an efficient and effective manner.
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6. Basic Purpose of Management
EFFICIENTLY Using resources wisely and in a cost-effective way
And
EFFECTIVELY Making the right decisions and successfully implementing them
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What is a Manager?
Someone whose primary responsibility is to carry out the management process.
Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.
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8. Figure 1.1 Kinds of Managers by Level and Area
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9. Kinds of Managers by Level
Top Managers
The relatively small group of executives who manage the organization’s overall goals, strategy, and operating policies.
Middle Managers
Largest group of managers in organizations
Implement top management’s policies and plans.
Supervise and coordinate lower-level managers’ activities.
First-Line Managers
Managers who supervise and coordinate the activities of operating employees.
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10. Kinds of Managers by Area
Marketing Managers
Work in areas related to getting consumers and clients to buy the organization’s products or services.
Financial Managers
Deal primarily with an organization’s financial resources.
Operations Managers
Concerned with creating and managing the systems that create organization’s products and services.
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11. Kinds of Managers by Area (cont’d)
Human Resource Managers
Involved in human resource processes
Planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems.
Administrative Managers
Serve as generalists in functional areas and are not associated with any particular management specialty.
Other Kinds of Managers
Assigned as specialists in positions directly related to the needs of the organization.
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12. Management in Organizations
Inputs from the environment •
Human resources
Financial resources
Physical resources
Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
Efficiently
Effectively
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13. Figure 1.2 The Management Process
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14. The Management Process (cont’d)
Planning and Decision Making
Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them.
Organizing
Determining how activities and resources are grouped.
Leading
Getting organizational members to work together to advance the interests of the organization.
Controlling
Monitoring organizational progress towards goals.
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15. Skills and the Manager Fundamental Management Skills Technical Skills
Interpersonal Skills
Conceptual Skills
Fundamental Management Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills
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16. Fundamental Management Skills
Technical
Skills necessary to accomplish or understand the specific kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, and motivate both individuals and groups.
Conceptual
The manager’s ability to think in the abstract.
Diagnostic
The manager’s ability to visualize the most appropriate response to a situation.
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17. Fundamental Management Skills (cont’d)
Communication
The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.
Decision-Making
The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.
Time-Management
The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.
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18. Management: Science or Art?
The Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making skills and techniques to solve problems.
The Art of Management
Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights.
Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.
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19. Sources of Management Skills
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20. The Importance of Theory and History
Why Theory?
Provides a conceptual framework for organizing knowledge and providing a blueprint for action.
Management theories, used to build organizations, are grounded in reality.
Most managers develop their own theories about how they should run their organizations.
Why History?
An awareness and understanding of historical developments in management are important.
Furthers the development of management practices.
Avoiding the mistakes of others in the past.
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21. Early Management Pioneers
Robert Owen (1771–1858)
British industrialist who was one of the first managers to recognize the importance of human resources and the welfare of workers.
Charles Babbage (1792–1871)
English mathematician who focused on creating efficiencies of production through the division of labor, and the application of mathematics to management problems.
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22. Classical Management Perspective
Scientific Management
Concerned with improving the performance of individual workers (i.e., efficiency).
Grew out of the industrial revolution’s labor shortage at the beginning of the twentieth century.
Administrative Management
A theory that focuses on managing the total organization rather than individuals.
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23. Scientific Management
Frederick Taylor (1856–1915)
Replaced old methods of how to do work with scientifically-based work methods.
Eliminated “soldiering,” where employees deliberately worked at a pace slower than their capabilities.
Believed in selecting, training, teaching, and developing workers.
Used time studies of jobs, standards planning, exception rule of management, slide-rules, instruction cards, and piece-work pay systems to control and motivate employees.
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24. Figure 1.3 Steps in Scientific Management
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25. Scientific Management Pioneers
Frank and Lillian Gilbreth
Both developed techniques and strategies for eliminating inefficiency.
Frank reduced the number of movements in bricklaying, resulting in increased output of 200%.
Lillian made substantive contributions to the fields of industrial psychology and personnel management.
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26. Classical Management Perspective (cont’d)
Administrative Management Theory
Focuses on managing the whole organization rather than individuals.
Henri Fayol (1841–1925)
Was first to identify the specific management functions of planning, organizing, leading, and controlling.
Lyndall Urwick (1891–1983)
Integrated the work of previous management theorists.
Max Weber (1864–1920)
His theory of bureaucracy is based on a rational set of guidelines for structuring organizations.
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27. Classical Management Perspective…Today
Contributions
Laid the foundation for later developments.
Identified important management processes, functions, and skills.
Focused attention on management as a valid subject of scientific inquiry.
Limitations
More appropriate approach for use in traditional, stable, simple organizations.
Prescribed universal procedures that are not appropriate in some settings.
Employees are viewed as tools rather than as resources.
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28. Behavioral Management Perspective
Emphasized individual attitudes and behaviors, and group processes, and recognized the importance of behavioral processes in the workplace.
Hugo Munsterberg (1863–1916)
A German psychologist, “the father of industrial psychology”, who advocated applying psychological concepts to employees selection and motivation industrial settings.
Mary Parker Follett (1868–1933)
Recognized the importance of the role of human behavior in the workplace.
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29. Key Managerial Roles (Munsterberg)
Key Management Roles
Interpersonal Roles
Informational Roles
Decisional Roles
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance handler
Negotiator
Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company. Used with permission.
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30. The Hawthorne Studies (1927–1932)
Conducted by Elton Mayo and associates at Western Electric
Illumination study—workplace lighting adjustments affected both the control and the experimental groups of production employees.
Group study—implementation of piecework incentive plan caused production workers to establish informal levels of acceptable individual output.
Over-producing workers were labeled “rate busters” and under-producing workers were considered “chiselers.”
Interview program—confirmed the importance of human behavior in the workplace.
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31. Behavioral Management Perspective (cont’d)
Human Relations Movement
Grew out of the Hawthorne studies.
Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics.
Assumed that the manager’s concern for workers would lead to increased worker satisfaction and improved worker performance.
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32. Behavioral Management Perspective (cont’d)
Abraham Maslow ( )
Advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy.
Douglas McGregor ( )
Proposed Theory X and Theory Y concepts of managerial beliefs about people and work.
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33. Table 1.1 Theory X and Theory Y
Theory X Assumptions
People do not like work and try to avoid it.
People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work toward organizational goals.
People prefer to be directed, to avoid responsibility, and to want security; they have little ambition.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.
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34. Table 1.1 (cont’d) Theory X and Theory Y (cont’d)
Theory Y Assumptions
People do not dislike work; work is a natural part of their lives.
People are internally motivated to reach objectives to which they are committed.
People are committed to goals to the degree that they receive rewards when they reach their objectives.
People seek both seek and accept responsibility under favorable conditions.
People can be innovative in solving problems.
People are bright, but under most organizational conditions their potentials are underutilized.
Source: Douglas McGregor, The Human Side of Enterprise, Copyright © 1960 by McGraw-Hill. Reprinted by permission of The McGraw-Hill Companies.
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35. Organizational Behavior
A contemporary field focusing on behavioral perspectives on management.
Draws on psychology, sociology, anthropology, economics, and medicine.
Important topics in organizational behavior research:
Job satisfaction and job stress
Motivation and leadership
Group dynamics and organizational politics
Interpersonal conflict
The structure and design of organizations
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36. Behavioral Management Perspective…Today
Contributions
Provided important insights into motivation, group dynamics, and other interpersonal processes.
Focused managerial attention on these critical processes.
Challenged the view that employees are tools and furthered the belief that employees are valuable resources.
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37. Behavioral Management Perspective…Today (cont’d)
Limitations
Complexity of individuals makes behavior difficult to predict.
Many concepts not put to use because managers are reluctant to adopt them.
Contemporary research findings are not often communicated to practicing managers in an understandable form.
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38. Quantitative Management Perspective
Emerged during World War II to help the Allied forces manage logistical problems.
Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems.
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39. Quantitative Management Perspective (cont’d)
Management Science
Focuses on the development of representative mathematical models to assist with decisions.
Operations Management
Practical application of management science to efficiently manage the production and distribution of products and services.
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40. Quantitative Management Perspective…Today
Contributions
Developed sophisticated quantitative techniques to assist in decision making.
Application of models has increased our awareness and understanding of complex processes and situations.
Has been useful in the planning and controlling processes.
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41. Quantitative Management Perspective…Today (cont’d)
Limitations
Quantitative management cannot fully explain or predict the behavior of people in organizations.
Mathematical sophistication may come at the expense of other managerial skills.
Quantitative models may require unrealistic or unfounded assumptions, limiting their general applicability.
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42. Figure 1.4 The Systems Perspective of Organizations
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43. Integrating Perspectives for Managers
Systems Perspective
A system is an interrelated set of elements functioning as a whole.
Open system
An organizational system that interacts with its environment.
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44. Integrating Perspectives for Managers (cont’d)
Closed system
An organizational system that does not interact with its environment.
Subsystems
A system within another system. Their importance is due to their interdependence on each other within the organization.
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45. The Systems Perspective
Synergy
Subsystems are more successful working together in a cooperative and coordinated fashion than working alone.
The whole system (subsystems working together as one system) is more productive and efficient than the sum of its parts.
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46. The Systems Perspective (cont’d)
Entropy
A normal process in which an organizational system declines due to failing to adjust to change in its environment
Entropy can be avoided and the organization re-energized through organizational change and renewal.
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47. The Contingency Perspective
Universal Perspectives
Include the classical, behavioral, and quantitative approaches.
An attempt to identify the “one best way” to manage organizations.
The Contingency Perspective
Suggests that each organization is unique.
The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization.
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48. The Contingency Perspective (cont’d)
Problem or Situation
Important Contingencies
Solution or Action B
Solution or Action A
Solution or Action C
Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company. Used with permission.
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49. Contemporary Management Issues and Challenges
Acute labor shortages in high-technology job sectors and an oversupply of less skilled labor
An increasingly diverse and globalized workforce
The need to create challenging, motivating, and flexible work environments
The effects of information technology on how people work
The complex array of new ways of structuring organizations
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50. Contemporary Management Issues and Challenges (cont’d)
Increasing globalization of product and service markets
The renewed importance of ethics and social responsibility
The use of quality as the basis for competition
The shift to a predominately service-based economy
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