CHAPTER 1

Managers and
Managing

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 Learning Objectives (1 of 2)

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
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 Learning Objectives (2 of 2)

4. Distinguish among three levels 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
information technology (IT).
6. Discuss the principal challenges
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 What Is Management? (1 of 3)

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
©McGraw-Hill Education. organization’s resources to meet its
 What Is Management? (2 of 3)

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? Satya Nadella, Microsoft
CEO
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 What Is Management? (3 of 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 of 2)
Organizational performance
• A measure of how efficiently and
effectively managers use available
resources to satisfy customers and
achieve organizational goals
• Microsoft’s corporate mission
revised by CEO Satya Nadella to
reflect current technological trends,
resulting in increased employee
moral, product quality, and stock
market values
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 Achieving High Performance:
A Manager’s Goal (2 of 2)
Efficiency
• A measure of how well or how
productively resources are used to
achieve a goal
• UPS instructing drivers to leave truck doors open
when going short distances to reduce delivery
times

Effectiveness
• A measure of the appropriateness of
the goals an organization is pursuing
and the degree to which the
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Figure 1.1 Efficiency, Effectiveness,
and Performance in an Organization
High-performing organizations are efficient and effective.

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 Figure 1.2 Four Tasks of
Management

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 Steps in the Planning Process

1. Deciding which goals the

organization will pursue
2. Deciding what strategies to adopt
to attain those goals
3. Deciding 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 of 2)

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 of 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
• ER director Daley works closely
with team, increasing efficiency
and improving customer
satisfaction
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 Leading

Leading
• Articulating a clear vision and
energizing and enabling
organizational members so they
understand the part they play in
achieving organizational goals
• An organization’s vision is a short, succinct, and
inspiring statement of the organization’s future
state.

• Involves managers using their power,

personality, influence, persuasion,
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and communication skills to
 Controlling (1 of 2)

Controlling
• Evaluating how well an
organization is achieving its goals
and taking action to maintain or
improve performance

Managers monitor performance of

individuals, departments, and the
organization as a whole to
determine if they are meeting
performance standards
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 Controlling (2 of 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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 Levels and Skills of Managers (1
of 2)

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
Management

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 Levels of Management (1 of 2)

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
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 Levels of Management (2 of 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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 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 skills required to perform a
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 Figure 1.5: Types and
Levels of Managers

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