Management

Chapter 1: Introduction to Management and Organizations

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Learning Objectives

▪ Explain why it’s important to study management.

▪ Define management.

▪ Describe who managers are and where they work.

▪ Describe what managers do.

▪ Describe the factors that are reshaping and redefining management.

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Importance of managers

Good managers are important because

◼ organizations need their skills and abilities, especially in today’s uncertain,

complex, and chaotic environment.

◼ they’re critical to getting things done.

◼ they play a crucial role in employee satisfaction and engagement.

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Why study management?

◼ First, all of us have a vested interest in improving the way organizations are
managed
◼ Organizations that are well managed—such as Apple, Canadian Tire, Tim Hortons, Nike,
Westjet, and Google—develop a loyal following and find ways to prosper even when the
economy stinks.

◼ The second reason for studying management is the reality that for most of you,
once you graduate and begin your career, you will either manage or be managed.
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What is management?

Management is defined as :

Coordinating work activities so that they are completed efficiently and effectively
with and through other people.

◼ Efficiency: Getting the most output from the least amount of inputs.

◼ Effectiveness: Completing activities so that organizational goals are achieved.

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Efficiency and Effectiveness
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Who are managers?

Manager: Someone who works with and through other people by coordinating their
work activities in order to accomplish organizational goals.
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Who are managers?

▪ Managers may not be who or what you might expect.

▪ They could be under age 18 or even over age 80.

▪ They run large corporations as well as entrepreneurial startups.

▪ They are found in government departments, hospitals, small businesses, nonprofit

agencies, museums, schools, and even nontraditional organizations such as
political campaign offices and consumer cooperatives.

▪ They can be found doing managerial work in every country around the globe and
operate at many levels, from top-level managers to first-line managers.
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Organizations

◼ Organization: A deliberate arrangement of people who act together to

accomplish some specific purpose.
What Three Characteristics do All 10
Organizations Share?
◼ The first characteristic of an organization is that it has a distinct purpose, which is
typically expressed as a goal or set of goals.
◼ For example, Bob Iger, Walt Disney Company’s president and CEO, has said his
company’s goal is to create amazing family entertainment and to provide customers with
extraordinary experiences, which will lead to increasing shareholder value.11

◼ The second characteristic is that people in an organization work to achieve those

goals. How? By making decisions and engaging in work activities to make the
desired goal(s) a reality.
◼ For instance, at Disney, many employees work to create the content and experiences that
are so important to the company’s businesses.

◼ Finally, the third characteristic is that an organization is structured in some way

that defines and limits the behaviour of its members.
◼ Disney, like most large organizations, has a fairly complex structure with different
businesses, departments, and functional areas.
Difference between managers 11
and nonmanagerial employees
◼ The employees who ring up your sale at Home Depot, take your order at the
Starbucks drive-through, or process your class registration forms are all
nonmanagerial employees. These nonmanagerial employees may be called
associates, team members, contributors, or even employee partners.
◼ Nonmanagerial employees: People who work directly on a job or task and have no
responsibility for overseeing the work of others.

◼ Managers, on the other hand, are individuals in an organization who direct and
oversee the activities of other people in the organization so organizational goals
can be accomplished. A manager’s job isn’t about personal achievement—it’s
about helping others do their work.
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Different levels of Management
1) Top Managers

2) Middle Managers

3) First-line managers

4) Team leaders
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Different levels of Management
Top managers: Managers at or near the top level of the organization, who
are responsible for making organization-wide decisions and establishing the
plans and goals that affect the entire organization.

Middle managers are those managers found between the lowest and top
levels of the organization. These individuals often manage other managers
and maybe some nonmanagerial employees and are typically responsible for
translating the goals set by top managers into specific details that
lower-level managers will see get done.
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Different levels of Management
◼ First-line managers are those individuals responsible for directing the
day-to-day activities of nonmanagerial employees. First-line managers
are often called supervisors, shift managers, office managers, department
managers, or unit coordinators.

◼ Team leaders, are individuals who are responsible for managing and
facilitating the activities of a work team.
Management Activities by 15
Organizational Level
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Profit Vs. Non-profit

◼ Profit—the “bottom line”—is an unambiguous measure of a business

organization’s effectiveness.

◼ Not-for-profit organizations don’t have such a universal measure,

which makes performance measurement more difficult.
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Profit Vs. Non-profit

◼ Private sector: The part of the economy run by organizations that are free
from direct government control; enterprises in this sector operate to make a
profit.

◼ Privately held organizations: Companies whose shares are not available on

the stock exchange but are privately held.

◼ Nonprofit sector: The part of the economy run by organizations that operate
for purposes other than making a profit (that is, providing charity or services).

◼ Nongovernmental Organization (NGO) A nongovernmental organization

that emphasizes humanitarian issues, development, and sustainability.
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Universality of Management

◼ Universality of management: The reality that management is needed in

all types and sizes of organizations, at all organizational levels, in all
organizational work areas, and in organizations in all countries around
the globe.
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What do managers do?

There are three different approaches that describe what managers do.

1) Four Functions Approach

2) Management Roles Approach

3) Skills and Competencies Approach

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What do managers do?

◼ Planning A management function that involves defining goals, establishing a strategy for achieving
those goals, and developing plans to integrate and coordinate activities.

◼ Organizing A management function that involves determining what tasks are 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.

◼ Leading A management function that involves motivating subordinates, directing the work of
individuals or teams, selecting the most effective communication channels, and resolving employee
behaviour issues.

◼ Controlling A management function that involves monitoring actual performance, comparing actual
performance to a standard, and taking corrective action when necessary.
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Four Functions Approach
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Skills and Competencies Approach

There are four general management skills that managers need:

1) Conceptual Skills

2) Interpersonal Skills

3) Technical Skills

4) Political Skills

5) Other competencies
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Skills and Competencies Approach

◼ Conceptual skills: Analyzing and diagnosing complex situations to see

how things fit together and to facilitate making good decisions.

◼ Interpersonal skills: Working well with other people both individually

and in groups by communicating, motivating, mentoring, delegating, etc.
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Skills and Competencies Approach

◼ Technical skills: Job-specific knowledge, expertise, and techniques

needed to perform work tasks. (For top-level managers, knowledge of the
industry and a general understanding of the organization’s processes and
products; for middle- and lower-level managers, specialized knowledge
required in the areas where they work—finance, human resources,
marketing, computer systems, manufacturing, and information
technology.)

◼ Political skills: Building a power base and establishing the right

connections to get needed resources for their groups.
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Skills and Competencies Approach

◼ Other important managerial competencies:decision making, team

building, decisiveness, assertiveness, politeness, personal responsibility,
trustworthiness, loyalty, professionalism, tolerance, adaptability, creative
thinking, resilience, listening, self-development.