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Chapter

Managers and Management

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Learning Outcomes
Tell who managers are and where they work. Define management. Describe what managers do. Explain why its 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 a specific purpose

Common Characteristics of Organizations

Goals People 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 and Team Members

Managers
Individuals in organizations who direct the activities of others

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What Titles Do Managers Have?

Top Managers
Make 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
Direct nonmanagerial employees Examples: Supervisor, Team Leader
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What Is Management?
Management is the process of getting things done effectively and efficiently, with and through people. Effectiveness
Doing the right things: the tasks that help an organization reach its goals

Efficiency
Doing things right: the efficient use of such resources as people, money, and equipment
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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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What Are Management Roles?

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Minzberg Managers Role: Update

Managers role is to influence action by:
1. Managing actions directly 2. Managing people who take action 3. Managing information that propels people to take action

Managers dual roles include:

1. Framing 2. Scheduling
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What Skills Do Managers Need?

Conceptual Skills
Used to analyze and diagnose complex situations

Interpersonal Skills
Used to work with, understand, and motivate individuals and groups

Technical Skills
Involve job-specific knowledge and techniques required to perform tasks

Political Skills
Used to build a power base and establish connections
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Is the Managers Job Universal?

Level in the Organization Profit vs. Nonprofit

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Why Study Management?

We all benefit from efficiently and effectively run businesses. Well-managed organizations prosper even in challenging economic times. After graduation, most students become managers or are managed.

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What Factors Are Reshaping and Redefining Management?

Today, managers must deal with:
Changing workplaces Ethical and trust issues Global economic uncertainties Changing technologies

Trader Joes success results from outstanding customer service.

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Why Are Customers Important?

Without customers, most organizations would cease to exist. Employee attitudes and behaviors play a big part in customer satisfaction. Managers must create a customer-responsive environment where employees are friendly, knowledgeable, and sensitive to customer needs.

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Why Is Innovation Important?

Nothing is more risky than not innovating. Innovation isnt only important for high technology companies; it is essential in all types of organizations.

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History Module
A Brief History of Managements Roots
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Early Management
Management has been practiced for thousands of years. Organized projects were directed by people responsible for planning, organizing, leading, and controlling.

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Classical Approaches (19111947)

Scientific Management
Frederick W. Taylor described scientific management as a method of scientifically finding the one best way to do a job.

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Other Classical Approaches

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

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

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The Hawthorne Studies

Studies conducted at the Hawthorne Works of the Western Electric Company:
Provided new insights into individual and group behavior at work. Concluded that group pressures can significantly impact individual productivity.

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

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Contemporary Approaches
Focused on managers concerns outside the organization
Organizations are open systems that are influenced by and interact with their environments. Fred Feildlers contingency approach states that organizations, employees, and situations require different managerial approaches. Dramatic changes in information technology connect nearly everyone in an organization, and managers now supervise employees remotely.

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