Management

Fifteenth Edition, Global Edition

Chapter 1

Managers and You in the

Workplace

Copyright © 2021 Pearson Education Ltd.

Learning Objectives
1.1 Tell who managers are and where they work.
1.2 Explain why managers are important to organizations.
1.3 Describe the functions, roles, and skills of managers.
1.4 Describe the factors that are reshaping and redefining
the manager’s job.
1.5 Explain the value of studying management.
1.6 Describe the benefits of the Employability Skills Matrix
(ES M).

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Who Is a Manager?
Manager: someone who coordinates and oversees the work
of other people so that organizational goals can be
accomplished

Managers are the organizational members who tell others

what to do and how to do it.

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Exhibit 1.1 Levels of Management

Exhibit 1.1 shows that in traditionally structured organizations, managers can be classified
as first-line, middle, or top.

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Classifying Managers
• First-Line Managers: manage the work of non-managerial employees
– These managers typically have titles such as supervisor, shift
manager, district manager, department head, or office
administrator
• Middle Managers: manage the work of first-line managers
 They may have titles such as regional manager, store
manager, or division manager.
 They are responsible for turning the organization’s strategy
into action
• Top Managers: responsible for making organization-wide decisions
and establishing plans and goals that affect the entire organization
 These individuals typically have titles such as executive vice
president, president, managing director, chief operating
officer, or chief executive officer

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Where Do Managers Work?
– Managers work in organizations, but what is an
organization?
• Organization: a deliberate arrangement of people to
accomplish some specific purpose
 SNU, Hormuud, Dahabshil, and Government department are
organizations.

• All these entities have three common characteristics.

– First, an organization has a distinct purpose that is typically expressed
through goals the organization seeks to accomplish.
– Second, each organization is composed of people. It takes people to
perform the work that’s necessary for the organization to achieve its
goals.
– Third, all organizations develop a deliberate structure within which
members do their work.

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Exhibit 1.2 Characteristics of Organizations

Exhibit 1.2 shows the three common characteristics of organizations: distinct purpose,
deliberate structure, and people.

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Why Are Managers Important?
• Organizations need their managerial skills and abilities
now more than ever
• Managers are critical to getting things done: They create
and coordinate the workplace environment and work
systems so that others can perform their tasks.
• Managers do matter to organizations: managers make a
difference in an organization’s performance

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Exhibit 1.3 Managers Make a Difference

Exhibit 1.3 shows data on why managers are important. Managers that are not engaged
cost organizations billions of dollars through employee turnover.

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What Do Managers Do?
• Management involves coordinating and overseeing the
work activities of others so that their activities are
completed efficiently and effectively.
• Management involves ensuring that work activities are
completed efficiently and effectively by the people
responsible for doing them, or at least that’s what
managers should be doing.
• Efficiency refers to getting the most output from the least amount
of inputs or resources.
• Managers deal with scarce resources—including people, money, and
equipment—and want to use those resources efficiently. Efficiency
is often referred to as “doing things right,” that is, not wasting
resources

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Efficiency and Effectiveness
• Efficiency: doing things right
– getting the most output from the least amount of input
• Effectiveness: doing the right things
– attaining organizational goals
– Doing those work activities that will result in achieving
goals
– Whereas efficiency is concerned with the means of
getting things done, effectiveness is concerned with the
ends, or attainment of organizational goals

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Exhibit 1.4 Efficiency and Effectiveness in
Management

Exhibit 1.4 shows that whereas efficiency is concerned with the means of getting things
done, effectiveness is concerned with the ends, or attainment of organizational goals.
Copyright © 2021, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Management Functions
• Planning: Defining goals, establishing strategies to
achieve goals, and developing plans to integrate and
coordinate activities
• Organizing: Arranging and structuring work to accomplish
organizational goals
• Leading: Working with and through people to accomplish
goals
• Controlling: Monitoring, comparing, and correcting work

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Exhibit 1.5 Four Functions of Management

Exhibit 1.5 shows the four functions used to describe a manager’s work: planning,
organizing, leading, and controlling.

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Mintzberg’s Managerial Roles and a
Contemporary Model of Managing
• Roles: specific actions or behaviors expected of and
exhibited by a manager
• Mintzberg identified 10 roles grouped around interpersonal
relationships, the transfer of information, and decision
making

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Types of Roles
• Interpersonal
– Figurehead, leader, liaison
– Figurehead role, managers symbolize the organization's authority and
values. A figurehead is typically required to perform several tasks, such
as greeting VIPs, attending special events, and giving speeches.
– Leader role: The leader's role is to provide guidance and direction to
members of an organization as well as evaluate their performance.
– The liaison role is all about connecting people. This involves
maintaining communication and relationships between different
departments and between individuals within an organization

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Types of Roles
• Decisional
– Entrepreneur, disturbance handler, resource allocator,
negotiator
 Entrepreneur role: Managers often act as entrepreneurs when identifying
opportunities for innovation and growth.
 Disturbance Handler: In this role, managers address organizational
conflicts or crises. An example could be a manager stepping in to mediate a
dispute between two team members and finding a resolution
 Resource Allocator: Managers allocate resources, including budget, time,
and personnel, to various projects and tasks. Negotiator: Managers often
engage in negotiations, such as contract negotiations with suppliers or labor
unions.

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Types of Roles
• Informational
– Monitor, disseminator, liaison
– Monitor Role: Managers gather information from various sources to
stay updated on internal and external developments affecting the
organization.
– Disseminator Role: Managers share relevant information with their
team members or other stakeholders. A department head might
disseminate a new company policy to ensure everyone is aware of the
changes.
– Spokesperson Role: In this role, managers represent their organization
to external parties. A CEO may act as a spokesperson during a press
conference, conveying the company's stance on a particular issue

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Exhibit 1.6 Mintzberg’s Managerial Roles

Exhibit 1.6 shows the managerial roles identified by Mintzberg.

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Management Skills
• 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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Management Skills
• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about abstract
and complex situations concerning the organization

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Exhibit 1.7 Skills Needed at Different
Managerial Levels

Exhibit 1.7 shows the relationships of conceptual, human, and technical skills to managerial
levels.

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Challenges Facing Managers Today and into
the Future
• In today’s world, managers are dealing with a host of
challenges. We want to briefly focus on six of these:
– Focus on technology
– Focus on disruptive innovation
– Focus on social media
– Focus on ethics
– Focus on political uncertainty
– Focus on the customer

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Focus on Technology
• Managers must get employees on board with new
technology
• Managers must oversee the social interactions and
challenges involved in using collaborative technologies
• The job of a manager is to help people cross the
bridge—to get them comfortable with the
technology, to get them using it, and to help them
understand how it makes their lives better.

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Focus on Disruptive Innovation
• One of the most critical challenges facing managers today
is dealing with disruptive innovation
• Disruptive innovation involves new products, processes,
or services that radically change the rules of the game
• One example is how the automobile destroyed the horse-
drawn buggy industry
• Innovation means doing things differently, exploring new
territory, and taking risks.
• Disruptive innovation can rapidly make us obsolete or
create the need for immediate change. Managers need to
be aware of this possibility.

Copyright © 2021 Pearson Education Ltd.

Focus on Social Media
• You probably can’t imagine a time when employees did
their work without smart devices, email, apps, or internet
access
• Today, the new frontier is social media: forms of
electronic communication through which users create
online communities to share ideas, information, personal
messages, and other content
• Employees don’t just use these on their personal time, but
also for work purposes.
• That’s why managers need to understand and manage
the power and peril of social media.
– As Berkshire Hathaway CEO Warren Buffet noted, “It
takes twenty years to build a reputation and five
minutes to ruin it.”
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Focus on Ethics
• We commonly see unethical business practices in the news
• Examples include pharmaceutical firms raising drug prices by 500%
or someone turning in fake receipts for expenses
• A major bank is found to be creating fake accounts in the name of real
customers. A car dealer is caught rolling
• back the odometers on used vehicles.
• Organizational survival depends on building trust with customers,
clients, suppliers, employees, and other stakeholders
• Leaders need to take responsibility for setting high ethical standards
and creating ethical workplaces
• Managers need to lead by example and always be ethical to create
trust and loyalty in the people around them. Unethical behavior
threatens the organization’s survival and your career.

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Focus on Political Uncertainty
• In the past, major democratic nations like the U S,
Canada, and the U K have been relatively stable politically
• In the last 10 years these countries have shifted to greater
political uncertainty
• Brexit and the USM C A are examples of that shift
• Some states, such as California, have placed additional
regulations on business

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Focus on the Customer
• You need customers. Without customers, most
organizations would cease to exist
• Managing customer relationships is the responsibility of all
managers and employees
• Consistent, high-quality customer service is essential

• John Legere, CEO of T-Mobile, likes to listen to

customers. “My business philosophy is listen to your
employees, listen to your customers. Shut up and do what
they tell you. And each of our Un-carrier moves and the
way I run my company is completely aligned with that.

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The Universality of Management
• The reality that management is needed in all types and
sizes of organizations, at all organizational levels, in all
organizational areas, and in organizations no matter where
located

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Exhibit 1.8 Universal Need for Management

Exhibit 1.8 shows that management is universally needed in all types of, and throughout all
areas of, organizations.
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The Reality of Work
• Another reason for studying management is the reality that
for most of you, once you graduate from college and begin
your career, you will either manage or be managed.
• For those of you who don’t see yourself managing, you’re
still likely to have to work with managers.

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Rewards of Being a Manager
• Responsible for creating a productive work environment
• Recognition and status in your organization and in the
community
• Attractive compensation in the form of salaries, bonuses,
and stock options

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Exhibit 1.9 Rewards From Being a
Manager
• Create a work environment in which organizational
members can work to the best of their ability
• Have opportunities to think creatively and use imagination
• Help others find meaning and fulfillment in work
• Support, coach, and nurture others
• Work with a variety of people
• Receive recognition and status in organization and
community
• Play a role in influencing organizational outcomes
• Receive appropriate compensation in the form of salaries,
bonuses, and stock options
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Gaining Insights into Life at Work
• Students need to understand management principles
regardless of career choice
• Workplace Confidential boxes located in each chapter will
introduce students to various workplace challenges and
give advice on how to handle those challenges

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Employability Skills Matrix (ES M)
• The ES M will be presented at the beginning of each
chapter and focus on key skills covered in that chapter.
These include:
• Critical thinking
• Communication
• Collaboration
• Knowledge application and analysis
• Social responsibility skills

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Exhibit 1.10 Employability Skills Matrix (ES M)

Copyright © 2021, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Review Learning Objective 1.1
• Tell who managers are and where they work.
– Managers coordinate and oversee the work of other
people so that organizational goals can be
accomplished.
– Managers work in an organization, which is a
deliberate arrangement of people to accomplish some
specific purpose.

Copyright © 2021 Pearson Education Ltd.

Review Learning Objective 1.2
• Explain why managers are important to organizations.
– Organizations need their managerial skills and abilities
in uncertain, complex, and chaotic times.
– Managers are critical to getting things done in
organizations.
– Managers contribute to employee productivity and
loyalty.

Copyright © 2021 Pearson Education Ltd.

Review Learning Objective 1.3 (1 of 3)
• Describe the functions, roles, and skills of managers.
– Management involves coordinating and overseeing the
efficient and effective completion of others’ work
activities.
– The four functions of management include planning,
organizing, leading, and controlling.

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Review Learning Objective 1.3 (2 of 3)
• Mintzberg’s managerial roles include:
– Interpersonal, involve people and other
ceremonial/symbolic duties (figurehead, leader, and
liaison)
– Informational, collecting, receiving, and disseminating
information (monitor, disseminator, and spokesperson)
– Decisional, making choices (entrepreneur, disturbance
handler, resource allocator, and negotiator)

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Review Learning Objective 1.3 (3 of 3)
• Katz’s managerial skills include:
– Technical (job-specific knowledge and techniques)
– Human (ability to work well with people)
– Conceptual (ability to think and express ideas)

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Review Learning Objective 1.4
• Describe the factors that are reshaping and redefining the
manager’s job.
– Managers must be concerned with:
 Customer service because employee attitudes and
behaviors play a big role in customer satisfaction
 Technology as it impacts how things get done in
organizations
 Social media because these forms of communication are
becoming important and valuable tools in managing
 Innovation because it is important for organizations to be
competitive
 Sustainability as business goals are developed
 Employees in order for them to be more productive

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Review Learning Objective 1.5
• Explain the value of studying management.
– The universality of management—managers are
needed in all types and sizes of organizations
– The reality of work—you will manage or be managed
– Significant rewards and challenges

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Review Learning Objective 1.6
• Describe the benefits of the Employability Skills Matrix
(ES M)
• Helps students develops five critical skills
– Critical thinking
– Communication
– Collaboration
– Knowledge application
– Social responsibility

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