Because learning changes everything.

Chapter 1
Managers and
Managing

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Learning Objectives 1

1. Describe what management is, why management is

important, what managers do, and how managers use
organizational resources efficiently and effectively to
achieve organizational goals.
2. Distinguish among planning, organizing, leading, and
controlling (the four principal managerial tasks), and
explain how managers’ ability to handle each one affects
organizational performance.
3. Differentiate among three levels of management, and
understand the tasks and responsibilities of managers at
different levels in the organizational hierarchy.

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 Learning Objectives 2

4. Distinguish among three kinds of managerial skill, and

explain why managers are divided into different
departments to perform their tasks more efficiently and
effectively.
5. Discuss some major changes in management practices
today that have occurred as a result of globalization and
the use of advanced technologies.
6. Discuss the principal challenges managers face in today’s
increasingly competitive global environment.

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 What Is Management? 1

Organizations
• Organizations are collections of people who work
together and coordinate their actions to achieve a
wide variety of goals or desired future outcomes.
• All managers work in organizations.

Managers
• Managers are the people responsible for supervising
the use of an organization’s resources to meet its
goals.

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 What Is Management? 2

Management
• Management includes the planning, organizing,
leading, and controlling of human and other resources
to achieve organizational goals effectively and
efficiently.
• What difference can a manager make? Zander Lurie,
SurveyMonkey CEO.

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 What Is Management? 3

Resources.
• Include assets such as:
1. People and their skills, know-how, and experience.
2. Machinery.
3. Raw materials.
4. Computers and information technology.
5. Patents, financial capital, and loyal customers and employees.

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 Achieving High Performance: A Manager’s
Goal 1

Organizational performance:
• A measure of how efficiently and effectively managers
use available resources to satisfy customers and
achieve organizational goals.
• At SurveyMonkey, Zander Lurie’s goal is to continue
with cutting-edge technology (AI), to promote
innovation, and to grow the global market.

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 Achieving High Performance: A Manager’s
Goal 2

Efficiency:
A measure of how well or how productively resources
are used to achieve a goal.
• Wendy’s fat fryers use less oil and are quicker.

Effectiveness:
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which the
organization achieves those goals.
• McDonald’s all-day breakfast success.

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 Figure 1.1 Efficiency, Effectiveness, and
Performance in an Organization
High-performing organizations are efficient and effective.

Access the text alternative for slide images.

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 Why Study Management? 1

1. Individuals generally learn through personal

experience or the experiences of others.

By studying management in school, you are

exposing yourself to the lessons others have
learned.

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 Why Study Management? 2

2. The economic benefits of becoming a good

manager are also impressive. In the United
States, general managers earn a median
wage of $100,930 with a projected growth rate
in job openings of 7% to 10% between now
and 2028.
3. Learning management principles can help you
make good decisions in nonwork contexts.

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 Figure 1.2 Four Tasks of Management

Access the text alternative for slide images.

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 Steps in the Planning Process
1. Decide which goals the organization will
pursue.
2. Decide what strategies to adopt to attain those
goals.
3. Decide how to allocate organizational
resources.
Managers identify and select appropriate
organizational goals and develop strategies
for how to achieve high performance.

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 Organizing 1

Organizing:
• Structuring working relationships so organizational
members interact and cooperate to achieve
organizational goals.

Managers deciding how best to organize

resources, particularly human resources.

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 Organizing 2

Organizational structure
• A formal system of task and reporting relationships
that coordinates and motivates organizational
members so that they work together to achieve
organizational goals.
• CEO Laurie of SurveyMonkey organizes in
coordination with employee opinions.

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 Leading
• Articulating a clear vision and energizing and enabling
organizational members so they understand the part
they play in achieving organizational goals.
• Involves managers using their power, personality,
influence, persuasion, and communication skills to
coordinate people and groups.

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 Controlling 1

Controlling:
• Evaluating how well Managers monitor
an organization is performance of
achieving its goals individuals,
and taking action to departments, and the
maintain or improve organization as a whole
performance. to determine if they are
meeting performance
standards.

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 Controlling 2

The outcome of the control process is the

ability to measure performance accurately and
regulate organizational efficiency and
effectiveness.
Managers must decide which goals to measure.

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 Example: Match Group
Mandy Ginsberg is the CEO of Match Group (Match,
OKCupid, Hinge, Tinder).
Her understanding of advanced technology and employment
of data scientists has improved the dating sites.

She is open to international expansion.

She employs locals who bring their cultural knowledge to the

table.

The profits of Match Group reflect Ginsberg’s success.

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 Managerial Roles Identified: Decisional

Type of Role Specific Role Examples of Role Activities

Decisional Entrepreneur Commit organizational resources to develop innovative goods
and services; decide to expand internationally to obtain new
customers for the organization’s products.
Decisional Disturbance handler Move quickly to take corrective action to deal with unexpected
problems facing the organization from the external
environment, such as a crisis like an oil spill, or from the
internal environment, such as producing faulty goods or
services.
Decisional Resource allocator Allocate organizational resources among different tasks and
departments of the organization; set budgets and salaries of
middle and first-level managers.
Decisional Negotiator Work with suppliers, distributors, and labor unions to reach
agreements about the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Managerial Roles Identified: Interpersonal

Type of Role Specific Role Examples of Role Activities

Interpersonal Figurehead Outline future organizational goals to employees at company
meetings; open a new corporate headquarters building; state
the organization’s ethical guidelines and the principles of
behavior employees are to follow in their dealings with
customers and suppliers.
Interpersonal Leader Provide an example for employees to follow; give direct
commands and orders to subordinate; make decisions
concerning the use of human and technical resources;
mobilize employee support for specific organizational goals.
Interpersonal Liaison Coordinate the work of managers in different departments;
establish alliances between different organizations to share
resources to produce new goods and services; reach
agreements about the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Managerial Roles Identified: Informational

Type of Role Specific Role Examples of Role Activities

Informational Monitor Evaluate the performance of managers in different tasks and
take corrective action to improve their performance; watch for
changes occurring in the external and internal environments
that may affect the organization in the future.
Informational Disseminator Inform employees about changes taking place in the external
and internal environments that will affect them and the
organization; communicate to employees the organization’s
vision and purpose.
Informational Spokesperson Launch a national advertising campaign to promote new goods
and services; give a speech to inform the local community
about the organization’s future intentions.

Table 1.1 Managerial Roles Identified by Mintzberg

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 Levels and Skills of Managers 1

Department:
• A group of managers and employees who work
together and possess similar skills or use the same
knowledge, tools, or techniques.
• Example: the manufacturing, accounting, engineering,
or marketing department.

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 Figure 1.3 Levels of Managers

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 Levels of Management 1

First-line managers (often called supervisors):

Responsible for the daily supervision of the
nonmanagerial employees.
• Paint foreman overseeing a crew of painters at a university.

Middle managers:
Supervises first-line managers.
Responsible for finding the best way to use resources to
achieve organizational goals.
• High school principal or a marketing manager.

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 Levels of Management 2

Top managers:
Responsible for the performance of all departments.
Establish organizational goals.
Decide how different departments should interact.
Monitor how well middle managers in each department
use resources to achieve goals.
• President of a university.

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 Levels and Skills of Managers 2

Figure 1.4 Relative

Amount of Time
Managers Spend
on the Four
Managerial Tasks.

Access the text alternative for slide images.

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 Types of Managerial Skills
Conceptual skills:
• The ability to analyze and diagnose a situation and
distinguish between cause and effect.

Human skills:
• The ability to understand, alter, lead, and control the
behavior of other individuals and groups.

Technical skills:
• Job-specific knowledge and techniques required to
perform an organizational role.

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 Figure 1.5: Types and Levels of Managers

Access the text alternative for slide images.

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 Core Competency
Specific set of departmental skills, knowledge and
experience that allows one organization to outperform
another.
Skills for a competitive advantage:
• Dell’s materials management produced PCs at lower cost than
competitors.

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 Recent Changes in Management Practices

Restructuring:
• Downsizing an organization by eliminating the jobs of
large numbers of top, middle, and first-line managers
and nonmanagerial employees.

Outsourcing:
• Contracting with another company, usually abroad, to
perform a work activity the company previously
performed itself.

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 Empowerment and Self-Managed
Teams
Empowerment:
• Empowerment involves giving employees more authority
and responsibility over how they perform their work
activities.
• Example: Valve Corporation has no managers, no
hierarchy or top-down control. Employees pick their own
projects.

Self-managed teams:
• Groups of employees who assume collective responsibility
for organizing, supervising, and controlling their own work
activities.

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 Challenges for Management in a Global
Environment

Build a competitive advantage.

Maintain ethical and socially responsible standards.

Manage a diverse workforce.

Utilize new technologies.

Practice global crisis management.

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 Building Competitive Advantage
Competitive advantage:
• Ability of one organization to outperform other
organizations because it produces desired goods or
services more efficiently and effectively than
competitors.

Innovation:
• The process of creating new or improved goods and
services or developing better ways to produce or
provide them.

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 Building Blocks of Competitive Advantage

Competitive Advantage

Efficiency

Innovation and Flexibility

Responsiveness to customers

Quality

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 Turnaround Management
Creation of a new vision for a struggling company using
a new approach to planning and organizing to make
better use of a company’s resources and allow it to
survive and eventually prosper.
• CEO Niccol has turned Chipotle around after food scares
in 2015 and 2017.

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 Maintaining Ethical and Socially
Responsible Standards
Managers are under considerable pressure to
make the best use of resources.
Too much pressure may induce managers to
behave unethically and even illegally.
• Nudges as ethical behavior tools.

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 Managing a Diverse Workforce
To create a highly trained and motivated
workforce, managers must establish human
resource management (HRM) procedures that
are legal and fair and do not discriminate against
organizational members.
• Accenture earned top spot (out of 100
companies) for second year on Refinitiv’s
Diversity and Inclusion Index.

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 Utilizing New Technologies
Efficient and effective technologies that link and
enable managers and employees to better
perform their jobs, regardless of role.
UPS uses ORION.
• A GPS system that optimizes drivers’ routes.

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 Practicing Global Crisis Management 1

1. Create teams to facilitate rapid decision- making

and communication.
2. Establish the organizational chain of command
and reporting relationships necessary to mobilize
a fast response.
3. Recruit and select the right people to lead and
work in such teams.
4. Develop bargaining and negotiating strategies to
manage the conflicts that arise.

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 Practicing Global Crisis Management 2

Natural causes: Human causes:

Crises that arise Human-created crises
because of natural result from factors such as
causes, including industrial pollution, poor
hurricanes, attention to worker and
earthquakes, famines, workplace safety, global
and diseases. warming, and the
destruction of the natural
habitat or environment, and
geopolitical tensions and
terrorism.

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Because learning changes everything. ®

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© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.