Chapter

Managers and Management

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Learning Outcomes
Tell who managers are and where they work Define management Describe what managers do Explain why it s important to study management Describe the factors that are reshaping and redefining management

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Who Are Managers? Where Do They Work?

Organization
A deliberate arrangement of people brought together to accomplish some are deliberate arrangements of people to accomplish a specific purpose.

Common Characteristics of Organizations

Distinct purpose People working together A deliberate systematic structure
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How Are Managers Different from Nonmanagerial Employees? Nonmanagerial Employees

People who work directly on a job or task and have no responsibility for overseeing the work of others. Examples, associates, team members

Managers
Individuals in organizations who direct the activities of others.

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What Titles Do Managers Have?

Top Managers
Responsible for making decisions about the direction of the organization. Examples; President, Chief Executive Officer, VicePresident

Middle Managers
Manage the activities of other managers. Examples; District Manager, Division Manager

First-line Managers
Responsible for directing nonmanagerial employees Examples; Supervisor, Team Leader
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What Is Management?
Management
The process of getting things done effectively and efficiently, with and through people

Effectiveness
Doing the right things , doing those tasks that help an organization reach its goals

Efficiency
Concerned with the means, efficient use of resources like people, money, and equipment
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

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What Do Managers Do?

In the functions approach proposed by French industrialist Henri Fayol, all managers perform certain activities or functions

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Four Management Functions

Planning
Defining the organizational purpose and ways to achieve it

Organizing
Arranging and structuring work to accomplish organizational goals

Leading
Directing the work activities of others

Controlling
Monitoring, comparing, and correcting work performance
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

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What Roles Do Managers Play?

Henry Mintzberg observed that a manager s job can be described by ten roles performed by managers in three general categories

Interpersonal Roles
Figurehead, Leader, and Liaison

Informational Roles
Monitor, Disseminator and Spokesperson

Decisional roles
Entrepreneur, Disturbance Handler, Resource Allocator and Negotiator
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

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What Skills Do Managers Need?

Robert Katz and others describe four critical skills in managing

Conceptual Skills
Used to analyze complex situations

Interpersonal Skills
Used to communicate, motivate, mentor and delegate

Technical Skills
Based on specialized knowledge required for work

Political Skills
Used to build a power base and establish connections
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Is The Manager s Job Universal?

The previous discussion describe management as a generic activity. In reality, a manager s job varies with along several dimensions

Level in the Organization

Top level managers do more planning than supervisors

Profit vs. Nonprofit

Management performance is measured on different objectives
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Is the Manager s Job Universal? (cont d)

Size of the Organization
Small businesses require an emphasis in the management role of spokesperson

National Borders
These concepts work best in English-speaking countries and may need to be modified in other global environments
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Why Study Management?

All of us have a vested interest in improving the way organizations are managed Organizations that are well managed find ways to prosper even in challenging economic times After graduation most students become managers or are managed
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What Can Students of Management Learn From Other Courses?

Anthropology
The study of social societies which helps us learn about humans and their activities

Economics
Provides us with an understanding of the changing economy and competition in a global context
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What Can Students of Management Learn From Other Courses? (cont d)

Philosophy
Inquires into the nature of things, particularly values and ethics

Psychology
The science that seeks to measure, explain and sometimes change the behavior of humans

Political Science
The study of behavior and groups within a political environment

Sociology
The study of people in relationship to their fellow human beings

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What Factors Are Reshaping and Redefining Management?

Welcome to the new world of management! Today managers must deal with
Changing workplaces Ethical and trust issues Global economic uncertainties Changing technologies

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Why Are Customers Important to the Manager s Job?

Without customers most organizations would cease to exist Today we re discovering that employee attitudes and behaviors play a big part in customer satisfaction Managers must create a customer responsive where employees are friendly, knowledgeable, responsive g to customer needs
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Why Is Innovation Important to the Manager s Job?

Nothing is more risky than not innovating Innovation isn t just important for high technology companies but essential in all types of organizations

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History Module
A Brief History of Management s Roots

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Early Management
Management has been practiced a long time. Organized endeavors directed by people responsible for planning, organizing, leading and controlling have existed for thousands of years
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Classical Approaches (late 1800s and early 1900s)

Scientific Management
Frederick W. Taylor described scientific management as a method of scientifically finding the one best way to do a job Time and motion study Standardization Training to workers Pay Differentials Specialization Friendly management-labour Copyright 2011 Pearson Education, Inc. relations Publishing as Prentice Hall.

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Other Classic Approaches

General Administrative Theory
focused on what constituted good management Max Weber (pictured) described the bureaucracy as an ideal rational form of organization Henri Fayol identified five management functions and 14 management principles

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14 Principles (Henri Fayol)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration Centralization Scalar chain Order Equity Stability of tenure Initiative Esprit de corps

Behavioral Approaches
Early management writers included
Robert Owen, was concerned about deplorable working conditions Hugo Munsterberg, a pioneer the field of industrial psychology Mary Parker Follett recognized that organizations could be viewed from both individual and group behavior.

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The Hawthorne Studies

Conducted at the Western Electric Company Works these studies:
Provided new insights into individual and group behavior in the behavior of people at work. Concluded that group pressures can significantly impact individual productivity

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Quantitative Approaches
Quantitative Approach
Used quantitative techniques to improve decision making Evolved from mathematical and statistical solutions developed for military problems during World War II W. Edwards Deming and Joseph M. Duran s ideas became the basis for total quality management (TQM)

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Contemporary Approaches
Focused on managers concerns inside the organization
Chester Barnard wrote in his 1938 book The Functions of the Executive that an organization functioned as a cooperative system Fred Feildler first popularized the contingency approach (or situational approach) which says that organizations, employees, and situations are different and require different ways of managing
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