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Chapter 1 Outline

1.1 Members of a Unique Team

Concept: Managers are an essential part of the management team.

1. Management is the process of obtaining, deploying, and utilizing a variety of essential

resources in support of an organization’s objectives.

2. Managers plan, organize, direct, staff, lead, and control organizational resources. They
typically direct the work of others rather than perform the work themselves.

3. The management process (see Figure 1-1) is made up of five functions:

a. Planning – setting goals and objectives and converting them into specific plans.
b. Organizing – lining up available resources, designing the structure of the
department, and dividing the work into jobs.
c. Staffing – after deciding how many and what kind of employees a department
needs, managers interview, select, and train the most suitable people for
available positions.
d. Leading – providing motivation, communication, and direction.
e. Controlling – measuring results, comparing them against what is expected,
making judgments of how important the differences are, and taking any
necessary corrective actions.

4. Examples and titles of managers (See Figure 1-2 in the text) include:

a. Executives, are in charge of other managers and establish broad strategies, set
objectives, plans, and policies.
b. Middle Managers, are in charge of supervisors and plan, initiate, and implement
programs intended to carry out objectives established by executives.
c. Supervisory Managers, are responsible for getting line employees to carry out
the plans and policies of management.

i. First-level managers (about half the total) have only nonmanagerial

employees reporting to them.
ii. Second-level managers have other managers and nonmanagerial
employees reporting to them.

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 5. The number of middle managers within organizations has shrunk significantly the last
several years, resulting in expanded roles for managers for several reasons:

a. Desire to cut administrative cost.

b. Increased use of computer-based information systems.
c. Desire to flatten organization hierarchy.
d. Capacity and desire of many employees to take on greater responsibility.

1.2 A Body of Knowledge from Which to Draw

Concept: Managers become active in the management process by applying established
management principles and practices to operating problems.

1. Managers become managers by thinking and acting like managers. They:

a. Take a professional disciplines approach to the working environment.

b. Think in a systematic way.

c. Approach work positively, rather than passively.

d. Accept responsibility for improving operations.

e. Move from following orders to making task assignments, helping others solve
problems, and decision making.

f. Understand their involvement in complex organizational activities.

2. Newly appointed manager tips:

a. Accept that relationships with co-workers will be different.

b. Recognize that change can create problems, and that change should be
introduced slowly and carefully.

c. Don’t play favorites among employees.

d. Do your homework in order to provide a factual basis for decisions.

e. Invite and encourage knowledgeable employees to take initiative.

f. Communicate in all directions.

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 g. Don’t be afraid to ask for help.

h. Take care of yourself—mentally, emotionally, and physically—to forestall stress.

3. Management principles:

a. Work should be divided so that each person performs a specialized portion. This
is called division of work.

b. Managers must have the authority to give orders and instructions but must
accept responsibility for having the work done right.

c. Managers are responsible for both discipline and morale.

d. An individual should have only one boss. This is called unity of command.

e. There should be one master plan or set of overriding goals. This is called unity
of direction.

f. All individuals, especially mangers, must place their interests second to those of
the organization.

g. Pay and rewards should reflect a person’s efforts and contributions to the
organization.

h. Orders and instructions should flow down a chain of command from the higher
manager to the lower one.

i. Employees should be treated equally and fairly, so that they feel a sense of
equity.

j. Managers should encourage initiative among employees.

4. Managers job roles can be classified as falling into one of three categories (see Figure
1-3):

a. Technical skills include job know-how and knowledge of the industry and its
processes, equipment, and problems.

b. Administrative skills include knowledge of the entire organization and how it is

coordinated, knowledge of its information and records system, capacity to
interact with stakeholders, and ability to plan and control work.

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 c. Interpersonal skills include knowledge of human behavior and the ability to work
effectively with peers, superiors, and subordinates as individuals and in groups.

5. Managers work with the shortest timelines. Higher-level executives and most middle
managers plan for and create results that happen within a month or a year.

1.3 Many Competencies Required

Concept: Managers must bring to their managerial work a broad range of personal
characteristics, as well as an understanding of how their performance will be judged.

1. Typical professional and educational characteristics of managers:

a. Three out of four managers are promoted from within.

i. Long service (have held many jobs).

ii. Much more education than those they supervise.
iii. The best and most experienced employees.

b. Of the managers that are not promoted from within:

i. Ten percent are hired from college or a technical school after completing
company-sponsored training.
ii. Fifteen percent are hired from another company.

2. The most sought after qualities in managers include:

a. Job-related technical competence

i. Job knowledge
ii. Grasp of financial information
iii. Results orientation

b. Career-related competence

i. Problem solving
ii. Decision making
iii. Communication
iv. Leadership

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 v. Rapid and willing learner
vi. Ability to adapt to change
vii. Capacity to build a cohesive team
viii. Demonstrated ability to get along with people
ix. Capacity to present oneself professionally in public
x. Ethics and values

c. Personal characteristics

i. Integrity and credibility

ii. Tenacity, dedication, and perseverance
iii. Flexibility
iv. Risk-taking propensity
v. Willingness to take initiative
vi. Tolerance for stress
vii. Positive attitude
viii. Dependability and reliability
ix. Creativity
x. Energy and good health

3. Managers are responsible for performance management, an ongoing process of

clarifying and communicating performance expectations to employees and providing
coaching and feedback to reinforce the desired actions.

4. The purpose of the management process is to convert the resources available to a

manager into a useful end result (see Figure 1-4 in the text).

a. The end result or output may be a product that is complete or partially complete.

b. The end result may also be a service provided directly to the consumer or to
another department.

c. The end result should be at least as valuable as the combined cost of the initial
resources and the expense of operating the process.

5. When managers take a systems perspective, they use their analytic skills to better
understand the range of factors that influence results. Elements of a systems approach
include:

a. Recognition of the many variables in operation.

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 b. Causal connections among parts of the system (interdependencies).

c. Subsystems nested within larger systems.

d. Cyclical repetition of inputs, processes, outputs, and feedback.

e. Consequences that may be positive or negative, intended or unintended, and

short or long-term in nature.

f. Recognition that there are often multiple paths to the same end result.

6. Managers are responsible for and judged on (1) how well they manage the resources
available to them and (2) how good the results are in terms of the following criteria:

a. Quantity
b. Quality and workmanship
c. Costs and budget control
d. Management of human resources

1.4 Concern for Both Work and People

Concept: Effective managers balance the application of their skills between the work to be
done and a concern for the people who perform the work.

1. Supervisory balance requires that supervisors pay as much attention to interpersonal

factors matters as to technical and administrative ones (see Figure 1-5 in the text).

2. Managers must be prepared to handle 50 to 80 problems a day.

3. Managers are concerned with, and constrained by, a number of environmental factors,
including:

a. Technology, both existing and changing.

b. Legal restrictions.
c. Organizational policies and procedures.
d. Pressures to meet quantity, quality, and cost control goals.
e. Competition with other supervisors for scarce resources.
f. Information overload.

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 g. Rising expectations by employees to obtain meaningful work, work-life balance,
and opportunities to participate in decision making.
h. Globalization of business, with employees, operations, and markets thousands of
miles away.
i. Changes in the composition of the workforce.
j. Economic uncertainty.

1.5 Influential Thought Leaders

Concept: A number of business gurus, thought leaders, and practitioners have contributed
towards shaping the management profession and promoting leadership.

1. Influential thought leaders from the past

a. Frederick W. Taylor (1856 – 1915)

1) Regarded as the leader of scientific management

2) Taylor is recognized for:

i. Analyzing work tasks to find “one best way” to perform and teaching
people that way.
ii. Developing the time and motion study as a metric for efficiency and
productivity
iii. Impacing quality standards

3) Quote: “In the past the mast was first. In the future, the system will be first.”

4) Noted publication: The Principles of Scientific Management (1911)

b. Dale Carnegie (1888 – 1955)

1) Known for his famous courses which provided a common sense approach to self-
improvement, salesmanship, and public speaking.

i. Authored one of the most popular books in history, How to Win Friends
and Influence People.
ii. Taught millions how to achieve self-confidence with well-honed
interpersonal skills.

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 iii. His simple, yet effective, techniques for winning friends and influencing
people have proven enduring and become part of the American culture.

2) Carnegie’s rules on how to win friends include:

i. Show a genuine interest in other people

ii. Be happy and positive
iii. Remember that people love hearing the sound of their own name
iv. Listen to other people and develop good listening skills
v. Talk about others’ interests rather than you own
vi. Give others a sincere sense of their importance

3) Carnegie’s rules on how to influence people include:

i. To get the best of a situation, avoid arguments

ii. Always listen to others’ opinions and never tell anyone they are wrong
iii. Admit if you are wrong
iv. Show friendliness
v. Make statements that the other person can agree with
vi. Let the other person talk more than you
vii. Make the other person feel that an idea is their own
viii. See the others person’s point of view
ix. Show empathy for others’ ideas and desires
x. Infuse some drama into your ideas
xi. Appeal to the better nature of others
xii. Finish with a challenge

c. W. Edwards Deming (1900 – 1993)

1) Credited with improving production in the US by applying statistical methods to

enhance product design, quality, testing, and global sales.

i. Often referred to as the father of quality.

ii. Had a significant impact on manufacturing in Japan by teaching top
management how to produce innovative, high-quality products.

2) Deming is recognized for:

i. Defining quality by ratio: Quality = Results of work efforts/Total costs

ii. The Deming System of Profound Knowledge

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 iii. Jump starting a quality movement at Ford Motor Company

3) Quotes:

i. “There is no substitute for knowledge.”

ii. “The most important things cannot be measured.”

4) Noted publications:

i. Out of Crisis (1982)

ii. The New Economics for Industry, Government, Education (1993)

d. Peter F. Drucker (1909 – 2005)

1) Is said to have “invented” management as a discipline worthy of study

i. Gave management of large firms the essential tools to deal with their
post-World War II enormity, complexity, and growing global reach.
ii. Often referred to as the father of management theory and organizational
practice.
iii. Predicted many developments of the 20th century (privatization and
decentralization)

2) Drucker is recognized for :

i. Coining the term “knowledge worker”

ii. Viewing employees as “assets or resources” and not liabilities
iii. Popularizing the system of goal setting called “management by objectives
(MBO)”
iv. Believing that “managers cannot motivate people because people
motivate themselves”

3) Quote: “Management is doing things right; leadership is doing the right things.”

4) Noted Publications:

i. Classic Drucker (2006)

ii. Leading in a Time of Change (2001)

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 iii. The Frontiers of Management (1986)

e. C.K. Prahalad (1941 – 2010)

1) Named the world’s most influential business thinker on the 2009 Thinkers 50 list
published by the NY Times.

i. He was known globally and consulted by the top management of many of

the world’s foremost companies.
ii. His research focused on corporate strategy and the role of top
management in large, multinational corporations.

2) Prahalad is recognized for:

i. Coining the term “core competency”

ii. Promoting the role business can play in tackling world poverty

3) Noted publications:

i. Competing for the Future (1994)

ii. The Fortune at the Bottom of the Pyramid (2004)
iii. The New Age of Innovation (2009)

2. Influential thought leaders from the present

a. Ken Blanchard

1) Discovered the Hersey-Blanchard Situational Leadership Model

i. Leadership behavior reflects how leaders should adjust their leadership

style according to the readiness of their followers.
ii. Managers should be flexible in choosing a leadership style and be
sensitive to the readiness level of their employees.
iii. The model is not strongly supported by scientific research.

2) Quote: “As a manager the important thing is not what happens when you are
there, but what happens when you are not there.”

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 3) Noted publications:

i. The One Minute Manager, coauthored with Spencer Johnson

ii. Raving Fans, Gung Ho®, and Big Bucks®, coauthored with Sheldon
Bowles

b. Marcus Buckingham

1) Studied the world’s best managers and organizations to uncover the key drivers
of great performance and the factors that differentiate high performing teams.

2) Conceived the strengths-based approach to management which advocates that a

job should be tailored to fit the person instead of the other way around.

3) Quotes:

i. “Great management is not about changing people. Great managers take

people as is and then focus on releasing their talents.”
ii. “People are dramatically more effective, fulfilled and successful when
they are able to focus on the best of themselves.”

4) Noted publications:

i. First Break all the Rules (1999)

ii. Now Discover Your Strengths (2001)
iii. One Thing You Need to Know (2005)
iv. Go Put Your Strengths to Work (2007)
v. The Truth About You (2008)

c. Jim C. Collins

1) Researched how companies grow, how they attain superior performance, and
what takes a company from “good to great.”

2) Found that average companies can transition to greatness by narrowly focusing

the company’s resources on its field of competence and implementing “level 5

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 leadership” or leadership by persons who possess humility and a fearless drive
to succeed.

3) Quote: “If you cannot be the best in the world at your core business, then your
core business absolutely cannot form the basis of a great company.

4) Noted publications:

i. Build to Last (1994), coauthored with Jerry Porras

ii. Good to Great (2001)
iii. How the Mighty Fall (2009)

d. Stephen R. Covey

1) Authored one of the most influential self-help books of the 20th century, The
Seven Habits of Highly Effective People.

2) Covey identifies seven habits shared by all truly effective people which can be
learned and which lead to personal success.

3) The seven habits include:

i. Be proactive
ii. Begin with the end in mind
iii. Put first things first
iv. Seek to understand, then be understood
v. Think win/win
vi. Synergize
vii. Sharpen the saw

e. John P. Kotter

1) Has helped mobilize people around the world to better lead organizations, and
their own lives, in an era of increasingly rapid change.

i. Recognized as one of the 50 Top Business Thinkers in 2009.

ii. Is the voice on how the best organizations achieve successful
transformations.

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 iii. Explores the new rules of leadership and the importance of lifelong
learning in the post corporate world.

2) Developed the eight step method for leading change which includes:

i. Establish a sense of urgency

ii. Create the guiding coalition
iii. Develop a vision and strategy
iv. Communicate the change vision
v. Empower broad based action
vi. Generate short-term wins
vii. Consolidate change and produce more change
viii. Anchor new approaches to the culture

3) Noted publications:

i. Leading Change (1996)

ii. What Leaders Really Do (1999)
iii. Our Iceberg is Melting (2006)

f. John Maxwell

1) Is recognized for his commitment to developing leaders of excellence and

integrity through his Five Levels of Leadership.

2) According to Maxwell, leadership learning never ends.

i. It is a process of personal development – a daily commitment to leading

with integrity, discipline, vision, and experience.
ii. It is embracing the guiding philosophy that “everything rises and falls on
leadership.”
iii. The traits that are the raw material of leadership can be acquired.
iv. The process of becoming a leader involves a life-long series of lessons.
v. Leadership is a process of personal development; it develops daily, not in
a day.

3) The Five Levels of Leadership

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 i. Position
ii. Permission
iii. Production
iv. People Development
v. Personhood

4) Quotes:

i. “People buy into a leader before they buy into the vision.”
ii. “If you keep doing what you’ve always done, you’ll always get what
you’ve always gotten.”

5) Noted publications:

i. Developing the Leader Within You

ii. Running With the Giants
iii. The 21 Most Powerful Minutes in a Leader’s Day

g. Henry Mintzberg

1) One of the world’s most influential teachers of business strategy.

2) Mintzberg’s theory of Organizational Forms describes the six parts of an

organization.

i. The strategic apex (top management)

ii. Middle line (middle management)
iii. Operating core (operations)
iv. Technostructure (systems and processes)
v. Support staff
vi. Ideology (norms, values, and culture)

3) He is a strong advocate against management as a science.

4) He promotes educating practicing managers with action learning and problem

solving.

5) Quote: “Management is, above all, a practice where art, science, and craft meet.”

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 6) Noted publications:

i. Managers Not MBAs (2004)

ii. The Rise and Fall of Strategic Planning (1994)

h. Tom J. Peters

1) Led the way in preparing management for an era of staggering change, starting
in the mid-1970’s.

2) Peters is recognized for:

i. The pursuit of excellence

ii. Passionate leadership
iii. Acquiring and developing the best talent

3) Quote: “Excellent firms don’t believe in excellence – only in constant

improvement and constant change.”

4) Noted publications:

i. In Search of Excellence (co-author Bob Waterman)

ii. Thriving on Chaos

i. Peter Senge

1) Emerged in the 1990’s as a major figure in organizational development.

i. Popularized techniques for stimulating problem solving and creative

thinking among managers.
ii. Developed the concept of learning organization as a dynamic system in a
constant state of adaptation and improvement.

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 2) For his work, Senge was named by the Journal of Business Strategy as the
“Strategies of the Century.”

3) Senge is recognized for:

i. Developing the concept of “learning organizations” – those organizations

where people continually expand their capacity to create and learn to
achieve the results they desire.
ii. Adopting “systems thinking” as the cornerstone of the learning
organization which focuses on interactions within an organization and
between organizations to obtain a large picture view.
iii. Promoting shared vision as a framework for addressing problems and
opportunities.

4) Noted publications:

i. The Fifth Discipline: The Art and Practice of the Learning Organization
(1990)
ii. The Necessary Revolution: How Individuals and Organizations are
Working Together to Create a Sustainable World (2008)

j. Jack Welch

1) Former Chief Executive Officer (CEO) of General Electric

2) Has been described as the greatest manager in modern times.

3) Defines successful leaders as those who “grow others” and cautions leaders
about the real purpose of their job – to focus on employees, not themselves.

4) Welch is recognized for his management philosophies:

i. Managing less is better. Not to say, don’t manage at all, just don’t get
bogged down in over managing.
ii. Manage by creating a vision – then make sure that employees run with
that vision.
iii. Lead, don’t manage, then get out of the way. Let employees do their jobs
without interference.

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 iv. Instill confidence. Treat employees with respect in order to build their
confidence in your leadership.

5) Quote: “For a company and for a nation, productivity is a matter of survival.”

6) Noted publications:

i. Jack Welch and the GM Way (2005)

ii. Winning (2008)

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