Professional Documents
Culture Documents
Chapter 1 - Foundation of Management and Organizations
Chapter 1 - Foundation of Management and Organizations
Chapter 1 - Foundation of Management and Organizations
MY JOB:
l'm a branch manager for Commerce Bank. I manage
You'll be hearing more from this real a team of individuals who help our customers with
manager throughout the chapter. solutions to meet all their financial needs.
I
.TST FA.iET OF NfiY JOts:
:-- -:rs ivho have had circumstances and decisions tl-rat have resulted ir-r
srt€ customers, taking their orders, cooking their meals, or clearing tables, but he was the
IE sor who creates and coordinates the workplace systems and conditions so that others can
Ferform those tasks. Although he often pitches in when and where needed his job as manager
E ro ensure that all the employees are getting theirjobs done so the organization can do what
i-s io business to do. If wolk isn't geding done or isn't getting done as it should be, he's also
ir one rvho must find out why and get things back on track.
Finally, managers do motter to organizations! How do we know that? The Gallup
Organization, rvhich has polled millions of employees and tens ofthousands of managers,
bls fourd that the single most impo ant variable in employee productivity and loyalty isn't
par or benefits or workplacc environment; it's the quality ofthe relationship between em-
pirlees and their direct supervisors.a In addition, global consulting firm Towers Watson
iallld ihat the way a compalry manages and engages its people aan significantly affect its
lnaocial performance.t Also, a recent study oforganizational performance found thar: man-
4erial ability was important in creating organizational value.6 What can we conclude from
a:! reports? That managers are important and they do matter!
:grrs are found or what gerder they are, the fact is . - . managers have exciting and chal-
@ing jobs!
M percent of individuals ages
18 34 sali they do not want
to become a manaqer.
.
Who ls a Manager?
I esed to befairly simple to define who managers were: They were the organizational mem- ffil - the rank of people skills as
the most valued skill in job
applicants.
.
b $io told others what to do and how to do it. lt was easy to differcntiate mdnagers from
wanagerial emplol,eas. Noq it isn't quite that simple. In many organizations, the chang-
!g Dature of work has blurred the distinction between managers and nonmanagerial w percent of people would lay
ofJlfire their boss if given the
option.
m
cq{q'ees. Ma[y traditional nonmanagerial jobs now include managerial activities.e For ex-
percent of workers say they
.qde- General
at Cable Corporationt facility in Moose Jaw, Saskatchewar\ Canada, man-
do not have qualified man-
4q'ial responsibilities are shared by managers and team membels. Most ofthe employees
ffi
a9ers.
r \Ioose Jaw are cross-trained and multi-skilled. Within a single shift, an ernployee can be
e tm leadeq equipment operator, maintenance technician, quality inspector, or improve- percent of workers say their
aplauterlo boss is likable.
E
Th
So. how do we define who managers are? A manager is someone who coordinates
iorersees the work of other people so that organizational goals can be accorrplished. A
ger's job is not about pesonal achievement itt about helping ollrers do their work.
may mean coordinatiDg the work ofa departnental group, or it might mean supervis-
a single person. It could involve coordinating the work activities ofa team with people
g times when managers a.re
disengaged from their work,
their employees are 3 times
as likely to be disengaged
-
iE different departments or even people outside the organization, such as tempomry from their work.
dq.ees or individuals who work for the organizationt suppliers. Keep in min4 also, that
ffi percent of employees who
have quit their jobs say it's
because of unhappiness with
manaqement.
managen may have work duties not rclated to coordimting and oversee-
ing others' work. For example, an insurance claims supervisor might
process claims in addition to coordinating the work activities ofother
claims clerks.
Is there a way to classify managers in organizations? In tradition-
ally structured organizations (which are often pictured as a pyramid
because more employees are at lower organizational levels than at
upper organizatioral levels), rnanagers can be classified as firstline,
middle, or top. (See Exhibit l-1.) At the lowest level ofmanagement,
first-line managers manage the lvork of nonmanagerial employees
who typically are involved with producing the organization's products
or servicing the organization's customers. First-line managers may be
called supervisors or even shtft managers, district managers, departorcnt
nzanagers , ot ffice ntanagers . Middle managers manage t}le work of
first-line managers and can be found between the lowest and top
levels of the organization. They [ray have titles utch as regional
manager, project leader, store manager, ot division manager ln ow
chapter-opening dilemma, Loh is a middle manager As the general
manager, heh responsible for how his restaurant performs, but also is
As brond monoger wiih Lillle Kids.lnc.,
Kote Boehnerl lso middle monoger one ofmany general manageff cornpany-wide who report to someone
responsible i3r the quolly ond successful at corporate headquarten. At the upper levels ofthe organization are the top managers,
promoiion ofthe cornpcny's line of who are responsible for making organization-wide decisions and establishing the plans
bubb e loys.ln lhh photo,she and goals that affect thc entire organization. These individuals typically have titles such
demonslroles dudng o ioy lrode show
as qcecLttive vice president, president, managing director, chiefoperaling offcer, ot chief
how lhe molorized Bubble Llght blows
bubbes. Brond rnonogers work wilh
erecutive fficer.
paoducl developers, solespeople, Not all organizations get work done with a traditional pyramidal form, however.
coplav fers, ond odverlising directo6 lo Some organizations, for example, are more loosely configured with work being done by
coordinote the prodLrction, distribufion, ever-changing teams of employees who move from one project to another as work
ond r.orketing of their producl line.They
demands arise. Although it's not as easy to t€Il who the managers are in these organiza-
onolfze soles fgures, sel pdces, olgonize
odvefislng compolgns, explore differeni tions, we do know that someone must fulfill that role that is, there must be someone
morkeling sirotegles, ond contoct who coordinates and oversees the work ofotheff, even ifthat "soneone" changes as work
retoiLers lo convnce lhem io corry their tasks or projects change.
blonds. Successful blond monogers moy
odvonce lo o top monogement posltion.
Where Do Managers Work?
It's obvious that managers do the work in organizatioDs. But what is an orqanization? It's
a deliberate arrangement of people to accomplish some specific purpose. Your college or
university is an organization; so are fratemities and sororities, government departments,
churches, Facebook, your neighborhood grocery store, the United Way, the St. Louis
Cardinals baseball t€am, and the Mayo Clinic. All are considered organizations and have
three conrmon chamcteristics. (See Exhibit 1-2.)
First, ar organization has a distinct purpose. This purpose is t)?ically expressed through
goals that the organizatior hopes to.accomplish. Second, each organization is composed of
people. It takes people to perform the work that's necessary for the organization to achieve
its goals. Third, all organizations develop some d€liberate structure within which members
Levels of Management
CHAPIER r I FoUNDATToNS oF MANAGEMENT AND oRGANlzATloNs 35
Characteristics of o(ganbations
- l+ qork. That structue may be open and flexible, with no specific job duties or strict
fuce to explicit job arangements. For instance. at Google, most big projects, of which
G re i,un&eds going on at the same time, are tackled by small focused employee teams
s up in an instant and complete work just as quickly.rr Or the structure may be more
- that of Procter & Gamble or General Electric-with clearly defined rules,
-irlr-like
Eftrool job descriptions, and some members identified as "bosses" who have author-
qr xr other members.
!{:E}.. oftoday's organizations are structured more like Google, with flexible work
rEEg"lrents, employee work teams, open communication systems, and supplier
dfaL-.:. In these organizations, work is defined in terms of tasks to be done. And
riaa!-s have no time boundaries since work can-and is-done anywhere, anytime.
4
slqgh no one has a perfectly accurate
tD tie luture, certain lrends in plac€
-f,
E f,€r insights into what t0m0rr0w holds.
I-EARNTNG OUTCOME
!$Ulra* Do Managers Do?
Describe the functions, roles, Simply speaking, nanagement is what managers do. But that sinple statement doesn't tell
ond skills cf monogers. us much, does it? Let's look first at what managem€nt is before discussing more specifically
what manage$ do.
Management involves coordinating and overseeing the work actiYities of others so
that their activities are completed etriciently and effectively. We already know that coordi-
nating and overseeing the work ofothers is what distinguishes a managerial position from
a nonmanagerial one. Howevet, this doesn't mean that managers can do what they want
anltime, anywherc, or in ary way. Instead, management involves ensuring that work activ-
ities are completed eJliciently and efectively by the people responsible for doing them, or
at least that's what managers aspire to do.
Efficiency refels to getting the most output from the least amount ofinputs. Because
managers deal with scarce inputs including resources such as people, money, and
equipment-they're concerned with the efficient use of those resources. It's often
referred to as "doing things right"-that is, not wasting resources. For instance, at the
HON Cornpany plant in Cedartown, Georgia, where enployees make and assemble
office furniture, effioient manufactu ng techniques were iurplemented by doing things
such as cutting inventory levels, decreasing the amount of time to manufacture prod-
ucts, and lowedng product reject rates. These efficient work practices paid off as the
plant reduced costs by more than $7 million in one )rear13
It's not enough, however, just to be efficient. Management is also concerned with
being effective, completing activities so that organizational goals are attained.
Effectiveness is often described as "doing the dght things"-that is, doing those work
activities that will help the organization reach its goals. For instanc€, at the HON factory,
goals included meeting customers' rigorous demands, executing world-class manufac-
turing strategies, and naking employee jobs easier and safer. Through various work
initiatives, these goals rvere pursued azdachieved. Whereas efficiency is concemed with
the teans of getting things done, effectiveness is concerned with the €rds, or attain-
ment of oryanizational goals (see Exhibit l-3). ln successful organizations, high
efficiency and high effectiveness typically go hand in hand. Poor management (which
leads to poor performance) usually involves being inefficient and ineffective or being
effective, but inefficient.
Now letk take a more detailed look at what manage$ do. Desc bing what managers
do isn't easy. Just as no two organizations are alike, no two managers'jobs are alike. In
spite ofthis, management researchers have developed three approaches to describe what
managers do: functions, roles, and skills.
Management Functions
or functions as
According to the functions approach, managers perform certain activities
and effectively coordinate the work ofothers What are these functions?
tbey efficiently
Henri Fayol, a French businessman, first proposed in the early part of the twentieth
century that all managers perform five functions: planning, organizing, commanding,
coordinating, and controlling.la Today, these functions have been condensed to four:
planning, oiganizing, leading, and controlling (see Exhibit 1-4). Let's briefly look at
each function.
Ifyou have no particular destination in mind, then any road will do. Howeveq ifyou
bare someplace in particular you want to go, you'Ye got to plan tl1e best way to
get there'
B€cause organizations exist to achieve some particular pupose, someone must define that
prpose and the means for its achievement. Managers are that someone. As managers en-
gagi in planning, they set goais, establish strategies for achieving those goals, and develop
plans to integrate and coordinate activities.
Managers are also responsible for arranging and structu ng work to accomplish the
cganizationls goals. We call this function organizing. When managers organize, they de-
crmine what tasks are to be done, who is to do them, how the tasks are to be groupe4 who
Gports to whom, and where decisions are to be made.
Every organization has people, and a manager's job is to work with and through people
n accomplish goals. This is the leading flinction When maaagers motivata subordinates,
lelp resoive work group conflicts, influence individuals or teams as they work, seleat the
s1 effective communication channel, or deal in any way with employee behavior issues,
rky re leading.
The final tranagement function is controlling. After loals and plans are set
put in place (oryanizing), and people hired'
6lanning), tasks and structural arrangements
reine4 and motivated (leading), there has to be some evaluation of whether things are
ling as planned. To ensure that goals are being met and that work is being done as it
louid b", must ltonitor and evaluate performance Actual performance must bg
^^nng"tt
<urpared with the set goals. Ifthose goals aren't being achieved' it's the manag€r'sjob to
!a R-ork back on ftack. This process ofmonitoring, comparing, and corecting is the con-
blling function.
Jlrst howwell does the functions approach describc what managers do? Do managers
#ays plan, organize, lead, and then contlol? [n reality, what a manager does may not
always happen in this s€quence. Regardless of the "order" in which these functions are
performed, however, the fact is that managers do plan, organize, lea4 and control as thay
manage. When a manager is working to keep their employees motivated and engagetl
that's leading. As they make out the week's schedule, that's planning. When they are try-
ing to cut costs, those actions obviously involve controlling. And dealing with unhappy
customers is likely to involve leading, conholling, and maybe even planning.
Although the functions approach is popular for describing what managerc do, some
have argued that it isn't relevant.rr So let's look at another perspective.
. Figurehead
. Leader
. Liaison
lnto.mational Roles
. Monitor
. Disseminator
. Spokesperson
Decisional Rgles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
k $ Mintzberg, Henty, The Nature of Manage.lal Work, lst Edition, O 1980, pp. 93 94.
\number of follow-up studies have tested the validity of Mintzberg's role cate-
1rr:- and the evidence generaily supports the idea that managers regardless ofthe
-:e -.iorganization or level in the organization-perform sirnilar roles.re However, the
rc-sis that managers give to the various roles seems to change with organizational
s-- :i -\t higher levels ofthe organization, the roles ofdisseminator, figurehead, nego-
rac iiaison, and spokesperson are more important; whil€ the leader role (as Mintzberg
,rf:ed ir) is more important for lower-level managers than it is for either middle or top-
F*_ agers.
=
i-.;ently, Mintzberg completed another hands-on and up-close study ofmanagers at
ari.::id concluded that, "Basically, managing is about influencing action. It's about
rc':-: o.ganizations and urits to get things done, which means action."2r Based on
r* :c-s.'n ations, Mintzb€rg went on to explain that a manager does this in three ways:
i" :ranaging actions directly (for instance, negotiating contracts. managing projects,
- - i,31[61s9
b} rnanaging people who take action (for example, motivating them, building
the organization's culture, etc.), or (3) by managing information that
-r<- !€ople to take action (using budgets, goals, task delegation, etc.). The manager
!'l[rjrtE .3lter of the model has two roles-framing, which defines how a nanager
40 paRr oNE I THE woRrD oF MANAGEMENT
"You can't expect people to do a approaches his c,r her job: and scheduling, which "brings
goodjob at work iftheir lives are a the frame to life" through the distinct tasks the manager
does. A manager enacts these roles while managing action
mess."'?3 llat! the philosophy ct
in the three "planes:" q,ith information, through people, and
Panda Express founder and chair-
som€',imes by taking action directly. It's an interesting
man, Andrew Cherng. Together perspective on the manager's job and one that adds to our
with his wife Peggy, they have understanding ofwhat it is that managers do.
So which approach is better managedal functions or
built a restaurant empire with
Mintzberg's propositions? Although each does a good job of
more than 1,200 outlets and $1 depicting what managem do, the functions approach still s€ems
billion in sales.They believe that a to be the generally accepted way ofdescribing tle manager's
company i$ only as good as the
job. "The classical functions provide clear and discrete meth-
ods of classifying the thousands of activities that mailagers
employees who comprise it. ln
carry out and the tech.niques they use in terms ofthe functions
fact, he saysthathis company's success doesn't comejustfr0m the meals pre- they perform for the achievement of goals."" Howeveq
pared in tire kitchen, but because "he cares about the emotional well-being 0f Mintzberg's role approach and newly developed model ofman-
his employees." With five guiding values-being proactive, showing respecy- aging do offer us other insights into managels'work.
having a win-win attitude, pursuing groMh, having great operations, and being
qiving-and a caring and stronq management team, this company has pros-
Management Skills
pered.What can you learn from this leader who made a difference?
Dell Inc. is a company that understands the importance of
management skills.'?4 It started an intensive five-day offsite
skills trainiug program for first-line managers as a way to
improve its operations. One of Dell's directors of leaming and development thought this was
thc best way to develop "leaders who can build that strong relationship with their fiontJine
employees." What hav€ the supervisors leamed from the skills training? Some things they
m€ntioned were how to cornflunicate morc effectively and how to refrain from jumping to
conclusions rvhen discussing a problem with a worker.
What types ofskills do managers need? Robert L. Katz proposed that managers need
three critical skills in managilrg: technical, human, and conceptual.'?j (Exhibit l-6 shows
the relationsltips of these skills to manag€rial Ievels.) Technical skills are thejob-
specific knowledge and techniques needed to proficiently pedorm work tasks. These
skills tend to be more important for first-line managers because they typically are man-
aging employees who use tools and techniques to produce the organization's products or
service the organization's customers. Often, employees with excellent technical skills get
pronoted to first-line manager. For example, Mark Ryan of Verizon Columunications
manages almost 100 technicians rvho service halfa nillion ofthe company's customers.
Before becoming a manager, however, Ryan was a telephone lineman. He says, "The
technical side of the business is important, but managing people and rervarding and
recognizing the people who do an outstanding job is how we (Verizon) are going to
succeed."26 Ryan is a managcr who has technical skills, but also recognizes the irrpor-
tanc€ of human skills, which involve the ability to work well with other people both
individually and in a group. Because all managers deal u,ith people, these skills are
equally important to all levels of management. Maragers with good humal skills
Middle
Managers
Lower-Level
[4anagers
cHAprER t I rouruoartoNs oF r\4ANAGETvIENT AND oRGANrzATroNs 1t
t-ed on "Dear Workforce: W€'re Developing Onboarding for New Managers: What Should se
ft{de41" Workforce Ontre March 4, 2010; J. R. Ryan, ,,The Coming Leade6hip Gap: What you
3: Do About lt," A/oombery Butinessweek Onthre, December 15, 2009; tn_Sue Oh and C. M. Be.ry
'r-he F:ve Factor Model of Perlonality and Manageriat performance: Vatidity Gain! Through the
Use
i l5O Degree Performance Ralings," Journat ot Apptjed psychology, November 2009, pp. 1498_1513;
i-d R S. Rubin and E. C. Djerdorfl, ,,How Retevant ls the MBA? Assessing the Alignment of Required
:ricula and Required Manager;at Competencies," Acadeny of Managenent Learning & Education,
'e 2frc9, pp. 2oA-224.
4r =: best out of their people. They know how to communicate, motivate, l€ad and
ryEe eothusiasm and trust. Finally, conceptual skills are the skills managers use to
tBi and to conceptualize about abstract and complex situations. Using these skills,
rs see the organization as a whole, understand the relationships among various
rix-.'r. and visualize how the organization fits into its broader environment. These skills
-E_.rE
&1-r important to top manage$.
- i.jier important managerial skills that have been identified are listed in Exhibit 1-7.
r r:r:r_;i demanding and dynamic workplace, employees who want to be valuable assets
upgrade their skills, and developing managem€nt skills can be particu-
ar iEsificial in today's tvorkplace. We feel that unde$tanding and developing manage-
-.lEstantly
u *ills is so impo ant that we've included a skills feature at the end of €ach chapter.
3e cce in this chapter iooks at developing your political skill.) In additior, you'll find
& --:ererial on skill building as well as several interactive skills exercises in our
rcE:Eementlab. As you study the four management functions throughout the rest of
t n-i rou'11 be able to start developing some key management skills. Although a sim-
rE fr+uilding exercise won't make you an instant expert, it can provide you an intro-
rmderstanding of some of the skills you'll need to master in order to be an
-qr-j manager
+--e
Dave Man€y, the top manager of Headwaters MB. a Dew-er-based investrnent bank, had to
fashion a new garne plan ciuring the recession. When the company's board ofdirectors gave
senior management complete frecdom to ensure the companv's survival, they made a bold
move. All but seven key employees were laid om Although this doesn't sound very respon-
sible or resourceful, it ilvited those laid-offemployees to form independent member firrns.
Now, Headwaters steers investment transactions to those firms, while keeping a small per-
centage for itself. The "restructuring drastically reduced fixed costs and also fteed manag]-
ment to do more marketing, rather than day-to-day investment banking transactions." As
Maney said "lt was a good strategy for us and positioned us for the future."'z8 It's likely that
more managers riZ have to lranage under such demanding circumstances, and the fact is that
iow managers manage is changing. Exhibit l-8 shows some ofthe most impofiant changes
facing managers. Throughout the rest of this book, we'll be discussing these and other
changes and how they're afecting thc way managers pl.in, otganize,lead. and control.. We
want to highlight three ofthese changes: the increasing importance ofcustome$, innovation,
and sustainabil ity.
lmportance of Customers
to the Manager's Job
John Chambers, CEO of Cisco Systens, likes to listen to voice mails forwarded to him
from dissatisfied customers. He says, "E-mail would be more efficient, but I want to hear
the emotion, I want to hear the frustration, I want to hear the caller's level of comfort
lncreas€d Competitiv€ness
with the strategy we'rc employing. I can't get that through e-mail."2e This manager
understands the importance of customels. You need customers. Without them, most
organizations would cease to exist. Yet, focusing on the customer has long been thought
to be the responsibility ofmarketing tr?es. "Let the marketerc wolly about the customers"
is how many managers felt. We're discovering, however, that employee attitudes and
behaviors play a big role in customer satisfaction. For instance, passengers of Qantas
Airways were asked to rate their "essential needs" in air travel. Almost every factor listed
$as one directly influenced by the actions of company employees from prompt bag-
gage delivery, to courteous and efficient cabin crews, to assistance with connections, to
quick and friendly check-ins.ro
Today, the majority of employees in developed countries work in service jobs. For
iostance, some 77 percent of the U.S. labor force is employed in service industries. In
Australia, 71 percent work in service industries. In the United Kingdorn, Germany, and
Japan the p€rcentages arc 7 5,72, a\d'75, respectively. Even in developing countries like
India and Russia, we find 63 percent and 58 percent of the labor force employed in
sen'ice jobs.rr Examples of service jobs include technical support representatives, food
s€r!-ers o! fast-food counter workers, sales clerks, teachers, nurses, computer repair
rechnicians, front desk clerks, consultants, purchasing agents, credit representatives,
itua.ocial planners, and bank tellers. The odds are pretty good that when you graduate
!-su'll go to work for a company that's in a service industry, not in manufacturing or
a€dculture.
Managers are recognizing that delivering consistent high-quality customer service
E essential for survival and success in today's competitive environment and that em-
plq'ees are an important part of that equation.3z The implication is clear-managers
6r create a customer-responsive organization where employees are friendly and cour-
ccrrs, accessible, knowledgeable, prompt in responding to customer needs, and willing
b do Nhat's necessary to please the customer.r3 We'11 look at customer service manage-
rer in several chapters. Before we leave this topic, though, we want to share one more
sr_a'that illustmtes why it's important for today's rnanagers (all manage$, not just those
- marketing) to understand what it takes to serve customers. During a broadcasted
*de1'Cup playoffgame, Concast subscribers suddenly found themselves staring at a
ktl- screen. Many of those customers got on Twitter to find out why. And it was there,
r on a phone system, that they discovered a lightning strike in Atlanta had caused
G poser outage and that transmission would be restored as quickly as possible.
lbagers at Comcast unde$tood how to exploit popular commulications technology
lmportance of lnnovation
to the Manager's Job
"Nothing is more risky than not innovating."iilnnovation means doing things differently,
exploring neN territory. and taking risks. And innovation isn't just for high-tech or other
technologically sophisticated organizations. Innovative effo s can be found in all types of
organizations. For instance, the manager ofthe Best Buy store in Manchester, Connecticut,
clearly understood the importance ofgetting employees to be imovative, a task made par-
ticularly challenging because the average Best Buy store is often staffed by young adults in
their first or secondjobs. "The complexiry ofthe products demands a high level oftraining,
but the many distractions that tempt college-aged employees keep the turnover potential
high." However, the store manager tackled the problem by getting employees to suggest
new ideas. One idea-a "team close," in which employees scheduled to work at the store's
closing time, closed the store together and walked out together as a team-has had a remark-
able impact on employee attitudes and commitment.r6 As you'll see throughout the book,
innoration is critical throughout all levels and parts ofan organization. For example, at Tata
of India, the conpany's top manager, chaiflnan Ratan Tata, told his employees during the
bleak aspects ofthe global economic downturn to "Cut costs. Think out ofthe box. Even if
the r.r,orld around you is collapsing, be bold, be daring, think big."37 Ard his employees ob-
viously got thc message. The company's introduction ofthe $2,000 minicag the Nano, was
the talk ofthe global automotive industry. As these stories illustrate, innovation is critical. It's
soc tical to today! organizations and managen that we'll also address this topic in sev-
eral chapters.
lmportance of Sustainability
to the Manager's Job
Itt the worldl largest retailer u,ith more than $408 billion in annual sales, 2.1 million
employees, and 7,870 stores. Yes, we're talking about Walma . And Walmart is probably
th€ last company that you'd think about in a section describing sustainability. However,
Walmart announced in early 2010 fiat it would "cut some 20 million metric tons of
greenhouse gas emissions frorn its supply chain by the end of 2015-the equivalent of
removing nore than 3.8 million cars from the road for a year"r3 This corporate action affirms
tirat sustainability and green management have becorne mainstream issues for managers.
Wliat's enrc.giDg in the twenty-first cantury is the concept of managing in a sus-
tainable way, which has had the effect of rvidening corporate responsibility not only to
nranaging in an efficiel]t and effective way, but also to responding strategically to a wide
range of environmental and societal challenges.re r\lthough "sustainability" neans dif-
f'erent things to different people, in essence, according to the World Business Council for
Sustainable Dcvclopment (2005), it is concerned with "meeting the needs of people
today !vithout compronrising thc ability of future generations to meet their own needs."
Let's Get Real Fronr a busincss perspectiYc, sustainability has been defined as a company's ability to
achieve its business goals and increas€ long-telm shareholder value by integrating €co-
nomic, environmental, and social opportunities into its business strategies.a0 Sustain-
ability issues are norv moving up the agenda of business leaders and the boards of
thousands of companies. Like the managers at Walmart are discovering, running an or-
ganization in a more sustainable way will mean that managers have to make informed
business decisions based on thorough communication with various stakeholders, under-
standing their requirements, and starting to factor economic, environmental, and social
aspects into ho\\'tlrey pulsue their business goals. We'll examine managing for sustain-
abilitv and its inrportance lo planning. organizing. leading and controlling in several
places throuehout tlie book.
cHAprER r I rounoerroNS oF IvTANAGEMENT AND oReANtzATtoNs 45
Rewards and Challenges of Being . Create a work environment in which . Do hard work
a Manager organizational members can work lo the . May have duties that are more clerical
best of their ability than managerial
. Have opportunities to think creatively and . Have to deal with a variety of personalities
use imagination . Often have to make do with limited
. Help others find meaning and lulfillment resources
in work . Motivate workers in chaotic and uncertain
. Support, coach, and nurture others situations
. Work with a variety of people . Blend knowledge, skills, ambitions, and
. Receive recognition and status in and experiences ol a diverse work group
organization and community . Success depends on others' work
. Play a role in inlluencing organizational performance
outcomes
. Receive appropriate compensatign in the
form of salaries, bonuses, and stock options
. Good managers are needed by organizations
cHAPTER r I FOUNDAnONS OF MANAGEMENT AND ORGANTZATTONS 47
people-both inside and outside the organization. Other rewards may include receiving
recognition and status in your organization and in ihe comrnunity, playing a role in influ-
encing organizational outcones, and receiving attractive compensation in the form of
salaries, bonuses, and stock options. Finally, as we said earlier in the chapter, organizations
need good managers. It's througii th€ combined efforts ofmotivated and passionate people
rorking togeth that organizations accomplish their goals. As a manager, you can be
assured that your e{forts, skills, and abilities are needed.
Would you Do
LEARNING
OUTCOME Aeser;Oe the factors rhat are reshaping
Q- the and redefining
manager's job.
The changes impacting managers'jobs include global economic and political uncertainties,
changing workplaces, ethical issues, security threats, and changing t€chnology. Managers
must be concemed with customcr service because employee attinrdes and behaviors play a
big lole in customer satisfaction. Managers must also be concerncd with innovation because
it is imponant for organizations to be competiti\e. And finally, managers must be concertred
with sustainability as business goals are dereloped.
the v;rif ic of stud)/it-tg j't r::rt i:ii,lertrent.
ii sinrportanl to stlldy lranagement fbr thrcc rersons: ( I ) thc universality ofman.rgcntcnr.
;hich refers to thc filct tltat ntaDagclls are nccdcd in all types and sizes of organizariuns,
r: all organizational levels and rvork areas, anci in all global locations; (2) the reality ol
iork-lhat is, you rvill either n)anagc or bc rnirnaged; and (3) thc uvareness ofthe signif-
:.-itnt re\r'alds (snch as- cteatiDg work environntcnts to hclp people work to the best of
iheir ability; suploltiog and encouraging othcr.s; hclping other.s find rneaning and firlfill-
.-r3nt iD votk; elc.) aDci challcnges (such is. it\ hard rvo|k; mal have nrore clcricll than
::ralagcrial duiiesi hara to deal rvith a varietv ofltetsonalities; €tc.) in bei0g a nranager.
€ TFt!?.ii:$ []1i S:pdfu],& claims qfhaving an acirdenric degree they didn't actually
ha\ e. Such urisstaterl]ents (irccidental of deliberate) cost
l-r-lg tr vnrrr rdsrrmi.lr One srrlr,ev in(licatcd lhill solne thc C'EOs ai Raclio Shack. flerbalife. USANA Health
J: :i.rcenl of pcoplc lic about thcil tr ork h ist(r\. .\nolhcr Scicnces. antl N,lCi\1 N4ilree their.fobs. Why do you think
'i-.e) tbruld thal 9i pcrcent of hi|iDg n]irnagc|s \\ho lbund lying about ),our acacleuric credentials is considerecl
,r re trn a job canclidate s rdsume (lid not hirc lhrl pcl son. wrong? What ethical issues does it bling up? Which is
Ir'a]t if the person lving on a resurrr6 \\,ls thc k)p execu worse: lving about your academic crederltials or lying
rr,:. A su|re1'o1358 senior cxccutivcs anLl dircctors at about your \\,o[k history? Why?
3l tblicly tnded con'tpanies hIrneci uI scr en rnslanccs of
SKILLS EXERCISE around you. Work on your communication skills so that
you can communicate easily and effectively with
Developing Your Po"litlcal Skill oth€rs. Work on d€veloping good rapport with people in
all areas and at all levels ofyour organization. Be open,
About the Skill friendly, and willing to pitch in. The amount ofinterper-
Research h.as shown that people differ in their political sonal influence you have will be affected by how well
skills.a3 Those who are politically skilled are more effective people like you.
in their use ofinfluence tactics. Political skill also appea$ to 3- Develop votu' social astuteness. Some people have an in-
be more effective when the stakes are high. Finally, nate ability to understand people and sense what they're
politically skilled individuals arc able to exert their influenca thinking. Ifyou don't have that ability, you'll have to
without others detecting it, which is impoitant in being effec- work at developing your social astuteness by doing
tive so tlat you'rc not labeled political. A person's political things such as saying the dght things at the right time,
skill is determined by his or her networking ability, interper- paying close attention to people's facial expressions, and
sonal influence, social astuteness, ard apparent sinceriry trying to detennine whether othen have hidden agendas.
4. Be sincere. Sincerity is important to getting people to
Steps in Practicing the Skill want to associate with you. Be genuine in u'hat you say
l. Develop your networkw ability. A good network can be and do. And show a gelluine interest in others and their
a powerfi. tool. You can begin building a network by situations.
getting to know important people in your work area and
the organization and then dweloping relationships with Practicing the Skill
individuals who are in positions ofpower. Volunteer for S€lect each ofthe components ofpolitical skill and spend
committees or offer your help on projects that will be one week working on it. Write a bdef set ofnotes describing
noticed by those in positions ofpower Attend important your experiences-good and bad. Were you able to begin
oryanizational functions so that you can be seen as a developing a network of people throughout the organization
team player and someone who's interested in the organi- or did you work at developing your social astuteness, maybe
zation's success. Start a rolodex file ofnarnes of individ- by starting to recognize and interpret people's facial expres-
uals that you meet even if for a brief moment. Then, sions and the meaning behind those expressions? What
'.vhen you need advice on work, use your comecrions could you have done differently to be more politically
and network with others throughout the organization. skilled? Once you begin to recognize whath involved with
2. Work on gaining interpelsonal influence. People will political skills, you should find yourselfbecoming more
listen to you when they're comfortable and feel at ease connected and politically adept.
fi
MY TURN TO BE A MANAGER
. Use the most cuffent Occupational Outlook Handbook Fast Co lpany, Fol-bei, etc.). Keep a file with intercst-
(U.S. Department ofLabor, Bureau ofLabor Statistics) ing infonnation you find about managers or managing.
to research three different categories ofmanagers. For Using current business periodicals, find five examples
each, prepare a bulleted list that describes the following: ofmanagers you would describe as Masler Managers.
' the nature ofthe worh training and other qualifications Write a paper describing these individuals as lnanageru
needed; earnings; and job outlook and projections data. and why you feel they deserve this title.
a Get in the habit of reading at least ooe current business Steve's and Mary's suggested readings: HeNy
petiodical (Wall Sh'eet Joto'txal, Business Week, Fortnte, Mintzbetg, Mo agi g (Berrett-Koehler Publishe$,
.2009); Matthew Stewarl, The Management Myth (rstihrte of Certified Professional Managm) md 6e
r1\'. W: Norton & Company, 2009); Paul Osterman, .. Certified Business Manager (Association of Prrcfessiooal
The lruth About Middle Managers : Wo They Are, ir Business Management). Research cacb ofdeie
Hw,They Work and Why They Matter Qlarvud,Bus|rlLess programs. Prepare a bulleted list of $tat each i!\!hEs
hrss, 2008); Stephen P. Robbin1 The Truth About e If you're involved in student organizations. rnhmtetr for
llonging People, 2e (Financial TimesPrentice Hall,
leadership roles or for projects rvhere you en pnctice
i007); Gary Hamel, 7l e Future of Management Uaryatd planniirg, organizing, leading, and controlling diferent
Bu;iness School, 2007); Rod Wagner and James K. Harter, projects and activities. You can also gain \"luable mana-
I2 Elements ofcreqt Managing (caltup Prcss,2006)t genal experience by taking a leadership role in class
\{arcus Buckingham, First BrcakAll the Rules: Wat the projects.
team :
Toddb Greatest Managers Do Diferently (Slunor. &
idustet 1999); ancl PeterF.Drucker, The Executive in
. In your ovr'n words, write dowrl thrce things you leamed
in this c,hai]ter about being a good manager
lctbr (Harper Business, 1985 and 1964).
laten'iew two different managers and ask them at least
o Self-knowledge can be a powertul learning tool. Go
to www.pearsonglobaleditions.com,/mymanagementlab
$re€ ofthe questions that werc listed in the Leti Get
F.eol: Meet the Managers and, Letb Get Real: F2F and complete any ofthese self-assessment exercises:
res in the chapter. TlTre up the questions arld their How Motivated Aia I to Manage? How Well Do I Han-
dle Ambiguiln How Confident Am I in My Abilities to
rs:1\'ers to turn in to I'our professor
Succeed? or What's My Attihrde Toward Achievement?
-\countants and other professionals have certification Using the results ofyour assessments, identiry personal
Fograms to verify their skills, knowledge, and profes- strengths and wealoesses. Wlat will you do to reinforce
gooalism. What about managers? T.wo certification
your shengths and improve yotrr weaknesses?
]r€_ryams for managers include the Certified Manager
cAsE APPLTCAilON I
More Thon o Good
Story
OF IVANAGEMENT
cHAPTER r I FOUNDATTONS OF MANAGETVENT AAID ORGANTZA ONS l?