Chapter 1

INTRODUCING
MANAGEMENT

Principles of Management – Phuoc Van Hanh

 LEARNING OBJECTIVES

Takeaway 1: Working today

Takeaway 2: Organizations
Takeaway 3: Managers
Takeaway 4: The management process
Takeaway 5: Learning how to manage
Takeaway 1: Working Today
1. Talent
2. Technology
3. Globalization
4. Ethics
5. Diversity
6. Careers
 1. Talent

• Intellectual capital: the collective brainpower or shared

knowledge of a workforce.
• The intellectual capital equation:

Intellectual
Competency Commitment Capital
 2. Technology

• Tech IQ: the ability to use technology (at work &

everyday living) and to stay informed on the latest
technological developments.

Q: How do you keep up with the technology?

 3. Globalization

• Globalization: the worldwide interdependence of resources

flows, product markets, and business competition.

Q: Identify some opportunities and challenges of globalization?

• Job migration occurs when firms shift jobs from one country
to another.
 4. Ethics

CASE:

“Access to
• Ethics set moral standards of what Coke’s
is “good” and “right” in one’s Secrets
behavior. (vs “bad” or “wrong”) Formula is a
tantalizer”
(p8)
 5. Diversity

Gender and sexual diversity:

LGBTIQ+ …
• Workforce diversity describes
- Gender identity: cisgender,
differences among workers in
transgender, binary
gender, race, age, ethnicity, (man/woman), nonbinary, …
religion, sexual orientation, - Sexual orientation:
and able-bodiedness, … heterosexual, bisexual,
homosexual, asexual, …
 5. Diversity (cont.)

• Prejudice: the holding of negative, irrational opinions and

attitudes regarding members of diverse populations.
• Discrimination: when minority members are unfairly treated and
denied the full benefits of organizational membership.

• Glass ceiling effect: An invisible barrier or “ceiling” that

prevents women and minorities from rising above a certain
level of organizational responsibility.
 6. Careers

mastery
networking
Early career entrepreneurship
survival skills technology
marketing
passion for renewal
 6. Careers (cont.)

Successful career planning in changing times:

- Shamrock organization = core group of full-time long-term
workers + others who work on contracts and part-time.
- Free-agent economy: people change jobs more often, and many
work on independent contracts with a shifting-mix of employers.
- Self-management: the ability to understand oneself, exercise
initiative, accept responsibility, and learn from experience.
Takeaway 2: Organizations

1. What is an organization?
2. Organizations as systems
3. Organizational performance
4. Changing nature of organizations
 1. What is an organization?

Quality products and services

Organization:
a collection of people
Customer satisfaction
working together to achieve
a common purpose.
Social responsibility
 2. Organizations as Systems

The environment The organization The environment

supplies creates value consumes

Resource inputs
People
Work activities turn Product outputs
Money resources into outputs Finished goods
Materials Transformation process and services
Technology
Information

Consumer feedback

Figure 1.1 Organization as open systems interacting with their

 3. Organizational performance

When operations add value to the original cost of resource inputs,

then …

A business organization A nonprofit organization

can earn a profit. can add wealth to society.
 3. Organizational performance (cont.)

• Productivity: the quantity and quality of work

performance, with resource utilization considered.

• Performance effectiveness: an output measure of task or

goal accomplishment.

• Performance efficiency: an input measure of the resource

costs associated with goal accomplishment.
 3. Organizational performance (cont.)

Effective and efficient

Effective but not efficient
- Goals achieved
High - Goals achieved
- No wasted resources
- Resources wasted
High productivity
Goal Attainment

Neither effective nor Not effective but

Low efficient efficient
- Goals not achieved - Goals not achieved
- Resources wasted - No wasted resources

Poor Good
Resource Utilization

Figure 1.2 Productivity and the dimensions of organizational performance

4. Changing nature of organizations

- Focus on valuing human capital

- Demise of command-and-control
- Emphasis on teamwork
- Preeminence of technology
- Importance of networking
- New workforce expectations
- Priorities on sustainability
Takeaway 3: Managers
1. What is a manager?
2. Levels of managers
3. Types of managers
4. Managerial performance
5. Changing nature of managerial work
 1. What is a manager?

• A manager is a person who supports, activates, and

is responsible for the work of others.
 2. Levels of managers

Typical Business Typical Nonprofit

Board of directors Board of trustees

Chief executive officer Execute director

President Top President, Administrator
Vice president managers Vice president

Division manager Division manager

Regional manager Regional manager
Plant manager Middle managers Branch manager
Department head Department head
Supervisor First-line managers Supervisor
Team leader Team leader

Non-managerial workers

Figure 1.3 Management levels in typical business and nonprofit

 3. Types of managers

• Line managers directly contribute to producing the

organization’s goods or services.
• Staff managers use special technical expertise to
advise and support line workers.
• Functional managers are responsible for one area …
• General managers are responsible for complex,
multifunctional units.
• An administrator is a manager in a public or nonprofit
organization.
 4. Managerial performance
HIGHER
MANAGEMENT
Human
sustainability
Accountability
(the requirement to
show performance Manager
results to a
supervisor)
Dependency

Work team
 5. Changing nature of managerial work

• In our time, best managers are known more for “helping”

and “supporting” (coordinator, coach, & team leader) than
for “directing” and “order giving” (supervisor & boss).
5. Changing nature of managerial work (cont.)
Customers and clients
Ultimate beneficiaries of the organization’s efforts

Serve

Frontline operating workers

Do work directly affecting customer/client
satisfaction
Support
Team leaders and managers
Help the operating workers do
their jobs and solve problems
TopSupport
managers
Keep organization’s
mission &
strategies
clear

Figure 1.4 The organization viewed as an upside-down

Takeaway 4: The Management Process
1. Functions of management
2. Managerial roles and activities
3. Managerial agenda and networks
 1. Functions of management
Planning
Setting performance
objectives and deciding how
to achieve them

Controlling Organizing
Measuring performance The Arranging tasks, people,
and taking action to Management and other resources to
ensure desired results Process accomplish the work

Leading
Inspiring people to work
hard to achieve high
performance
Figure 1.5 Four functions of
 2. Managerial roles and activities

10 managerial roles (by Mintzberg)

Date here - Ask a question to the doctor
Interpersonal roles - Ask a question
Informational roles to theroles
Decisional doctor
- Ask a question to the doctor

• How a manager • How a manager • How a manager

interacts with other exchanges and uses information in
people processes decision making
information
• Figurehead • Entrepreneur
• Leader • Monitor • Disturbance handler
• Liaison • Disseminator • Resource allocator
• Spokesperson • Negotiator
2. Managerial roles and activities (cont.)

Managerial activities: A manager’s workday

• long hours.
• intense pace.
• fragmented and varied tasks.
• many communication media.
• filled with interpersonal relationships.
3. Managerial agendas and networks

• Agenda setting develops action priorities for accomplishing

goals and plans.
• Networking is the process of creating positive relationships
with people who can help advance agendas.
• Social capital is a capacity to get things done with the
support and help of others.
Takeaway 5: Learning how to manage
1. Essential managerial skills
2. Developing managerial potential
 1. Essential managerial skills

• A skill is the ability to translate knowledge into

action that results in desired performance.

Human and Conceptual and

Technical skills
interpersonal skills analytical skills
• The ability to use • The ability to work • The ability to think
expertise to perform well in cooperation analytically to
a task with with other people. diagnose and solve
proficiency. • Emotional complex problems.
intelligence (EI)
1. Essential managerial skills (cont.)

Low-level Middle-level Top-level

managers managers managers

Human and Conceptual and

Technical skills analytic skills
interpersonal skills
Case study
chapter 1

TRADER JOE’S
 END OF
CHAPTER 1