Introduction

to
Managemen
t and

LEARNING OUTLINE
Follow this Learning Outline as you read
and study this chapter.
Who Are Managers?

Explain how managers differ from nonmanagerial employees.

Describe how to classify managers in

organizations.

What Is Management?

Define management.

Explain why efficiency and effectiveness are

important to management.
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LEARNING OUTLINE
(contd)
Follow this Learning Outline as you read and study
this chapter.
What Do Managers Do?

Describe the four functions of management.

Explain Mintzbergs managerial roles.

Describe Katzs three essential managerial

skills and how the importance of these skills
changes depending on managerial level.

Discuss the changes that are impacting

managers jobs.

Explain why customer service and innovation

are important to the managers job.

LEARNING OUTLINE
(contd)
Follow this Learning Outline as you read and study
this chapter.
What Is An Organization?

Describe the characteristics of an organization.

Explain how the concept of an organization is

changing.

Why Study Management?

Explain the universality of management concept.

Discuss why an understanding of management is

important.

Describe the rewards and challenges of being a

manager.

Who Are Managers?

Manager

Someone who coordinates and oversees

the work of other people so that
organizational goals can be accomplished.

Who Are Managers?

Managers may not be who or what you might expect! Managers

can be under the age of 18 to over age 80. They run large
corporations as well as entrepreneurial start-ups.
Theyre found in government departments, hospitals, small
businesses, not-for-profit agencies, museums, schools, and even
such nontraditional organizations as political campaigns and music
tours.
And today, managers are just as likely to be women as they are
men. But no matter where managers are found or what gender they
are, the fact is . . . managers have exciting and challenging jobs!
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Classifying Managers

In traditionally structured organizations managers can be classified as

First-line Managers
Individuals who manage the work of non-managerial
employees.
Middle Managers
Individuals who manage the work of first-line
managers.
Top Managers
Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.
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Example: Old England

Exhibit 11

Managerial Levels

Managerial Levels

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What Is Management?
Management is what managers do.
Management involves coordinating and overseeing
the work activities of others so that their activities are
completed efficiently and effectively.

11

What Is Management?

Managerial
Concerns

Efficiency

Doing things right

Getting the most

output for the least
inputs

Effectiveness

Doing the right things

Attaining
organizational goals

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Exhibit 12
Effectiveness and
Efficiency in Management

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What Do Managers Do?

Management researchers have developed three approaches to

describe what managers do: functions, roles, and skills.

Functional Approach:

Henri Fayol, a French businessman, first proposed in the early part of the
twentieth century that all managers perform five functions: planning,
organizing, commanding, coordinating, and controlling. Today, these functions
have been condensed to four: planning, organizing, leading, and controlling .
Lets briefly look at each function.

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Functional Approach:

Planning

Defining goals, establishing strategies to achieve goals, developing plans to integrate

and coordinate activities.

Organizing

When managers organize, they determine 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.

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Functional Approach:

Leading

Working with and through people to accomplish goals. When managers motivate
subordinates, help resolve work group conflicts, influence individuals or teams as they
work, select the most effective communication channel, or deal in any way with
employee behavior issues, theyre leading.

Controlling

Monitoring, comparing, and correcting work. To ensure that goals are being met and
that work is being done as it should be, managers must monitor and evaluate
performance.
Actual performance must be compared with the set goals. If those goals arent being
achieved, its the managers job to get work back on track. This process of monitoring,
comparing, and correcting is the controlling function.

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Exhibit 13

Management Functions

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Roles Approach

Henry Mintzberg, a well-known management researcher, studied actual

managers at work.
In his first comprehensive study, Mintzberg concluded that what managers
do can best be described by looking at the managerial roles they engage in at
work.
The term managerial roles refers to specific actions or behaviors
expected of and exhibited by a manager. (Think of the different roles you
playsuch as student, employee, student organization member, volunteer,
sibling, and so forthand the different things youre expected to do in these
roles.)

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Roles Approach

The interpersonal roles are ones that involve people (subordinates

and persons outside the organization) and other duties that are
ceremonial and symbolic in nature. The three interpersonal roles
include figurehead, leader, and liaison.

The informational roles involve collecting, receiving, and

disseminating information. The three informational roles include
monitor, disseminator, and spokesperson.

Finally, the decisional roles entail making decisions or choices. The

four decisional roles include entrepreneur, disturbance handler,
resource allocator, and negotiator.
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What Do Managers Do?

Management Roles Approach (Mintzberg)

Interpersonal roles

Figurehead: symbolic head; greeting visitors; signing legal documents

Leader: motivation, staffing, training

liaison: self developed network of outside contacts who provide information;

board work, acknowledging mail and performing activities that involve
outsiders

Informational roles

Monitor: seeks and receives wide variety of internal and external information;
reading periodicals, reports, maintaining performance

Disseminator: transmits information through calls and meetings,

spokesperson: transmits information to outsiders on plans, policies, actions

and results etc; giving information to media.

Decisional roles

Entrepreneur: opportunities and threats in the environment; develop new

programs and organizing strategy

Disturbance handler: crises management

Resource allocator: scheduling and requesting authorization, budgeting and

programming of subordinates work,

Negotiator: union contract negotiations

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What Managers Actually

Do (Mintzberg)

Interaction
with others
with the organization
with the external
context of the
organization
Reflection
thoughtful thinking
Action
practical doing
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Skills Approach

What types of skills do managers need?

Robert L. Katz proposed that managers
need three critical skills in managing:
technical, human, and conceptual.

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Skills Approach

Technical skills

Knowledge and proficiency in a specific field. Technical skills are the job
specific knowledge and techniques needed to proficiently perform work
tasks.
These skills tend to be more important for first-line managers because they
typically are managing employees who use tools and techniques to produce
the organizations products or service the organizations customers.
For example, Mark Ryan manages almost 100 technicians who serve to half
a million of the companys customers.
Before becoming a manager, however, Ryan was a telephone lineman.

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Skills Approach

Human skills

The ability to work well with other people.

human skills, which involve the ability to work well with other people
both individually and in a group. Because all managers deal with people,
these skills are equally important to all levels of management.
Managers with good human skills get the best out of their people. They know
how to communicate, motivate, lead, and inspire enthusiasm and trust.

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Skills Approach

Conceptual skills

The ability to think and conceptualize about abstract and complex

situations concerning the organization.
conceptual skills are the skills managers use to think and to
conceptualize about abstract and complex situations.
Using these skills, managers see the organization as a whole,
understand the relationships among various subunits, and visualize
how the organization fits into its broader environment.
These skills are most important to top managers.

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Exhibit 15
Skills Needed at Different
Management Levels

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Conceptual Skills

Using information to solve business problems

Identifying of opportunities for innovation

Recognizing problem areas and implementing solutions

Selecting critical information from masses of data

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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Communication Skills

Ability to transform ideas into words and actions

Credibility among colleagues, peers, and subordinates

Listening and asking questions

Presentation skills; spoken format

Presentation skills; written and/or graphic formats

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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Interpersonal Skills

Coaching and mentoring skills

Diversity skills: working with diverse people and cultures

Networking within the organization

Networking outside the organization

Working in teams; cooperation and commitment

Source: Based on American Management Association Survey of Managerial Skills and

Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.

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How The Managers Job Is

Changing

The Increasing Importance of Customers

Customers: the reason that organizations exist

Managing customer relationships is the responsibility of

all managers and employees.

Consistent high quality customer service is essential for

survival.
Innovation
Doing things differently, exploring new territory, and taking
risks

Managers should encourage employees to be aware of

and act on opportunities for innovation.
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Exhibit 18
Changes Impacting
the Managers Job

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What Is An Organization?

An Organization Defined
A deliberate arrangement of people to accomplish
some specific purpose (that individuals
independently could not accomplish alone).
Common Characteristics of Organizations
Have a distinct purpose (goal)
Composed of people
Have a deliberate structure

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deliberate structure (e.g)

For instance, at Google, most big projects, of which there are hundreds
going on at the same time, are tackled by small focused employee
teams that set up in an instant and complete work just as quickly.
Or the structure may be more traditionallike that of Procter &
Gamble or General Electricwith clearly defined rules, regulations,
job descriptions, and some members identified as bosses who have
authority over other members.

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Exhibit 19
Characteristics of
Organizations

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Exhibit 110

The Changing Organization

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Why Study Management?

Why? Because we interact with organizations every single day. Are you frustrated when
you have to spend two hours in a state government office to get your drivers license
renewed?
Are you irritated when none of the salespeople in a retail store seems interested in
helping you? Is it annoying when you call an airline three times and customer sales
representatives quote you three different prices for the same trip?
These examples show problems created by poor management.
Organizations that are well managed- develop a loyal customer base, grow, and prosper,
even during challenging times.
Those that are poorly managed find themselves losing customers and revenues. By
studying management, youll be able to recognize poor management and work to get it
corrected. In addition, youll be able to recognize and support good management,
whether its in an organization with which youre simply interacting or whether its in
an organization in which youre employed.
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Why Study Management?

The Value of Studying Management

The universality of management

The reality of work

Good management is needed in all organizations, all

levels, in all countries.
Employees either manage or are managed. Great insight
into the way your boss behaves.

Rewards and challenges of being a manager

Management offers challenging, exciting and creative

opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.

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Exhibit 111
Management

Universal Need for

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Exhibit 112
Rewards and Challenges of
Being A Manager

39