Chapter 1 Introduction (1) 2
Chapter 1 Introduction (1) 2
Chapter 1
1-2
Why Are Managers
Important?
Organizations need their managerial skills and abilities
more than ever in these uncertain & complex times.
Managerial skills and abilities are critical in getting things
done.
Managers contribute to employee productivity and
loyalty.
1-3
Who Are Managers?
1-4
Exhibit 1-1
Levels of Management
Classifying Managers
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.
1-6
1-7
Where Do Managers Work?
Organization – A two or more people working together to
accomplish some specific purpose (that individuals
independently could not accomplish alone).
Common Characteristics of Organizations
Have a distinct (obvious) purpose (goal)
Are composed of people
Have a deliberate (purposed) structure
1-8
Exhibit 1-2
Characteristics of Organizations
1-9
What Do Managers Do?
Management involves coordinating and supervise the work
activities of others so that their activities are completed
efficiently and effectively.
1-10
Effectiveness and Efficiency
Efficiency Effectiveness
• Doing things • Doing the right
right things
Getting the most • Attaining
output for the (achieving)
least inputs organizational
the means goals
the ends
1-11
1-12
Exhibit 1-3
Efficiency and Effectiveness in
Management
1-13
The Four Management Functions
• Planning
Defining goals,
Establishing strategies to achieve goals,
Developing plans to integrate and coordinate activities
1-14
Exhibit 1-4
Four Functions of Management
1-15
Management Roles
Roles are specific actions or behaviors
expected of a manager.
Mintzberg identified 10 roles grouped as:
interpersonal relationships (Interpersonal roles)
the transfer of information (Informational roles)
and decision- making. (Decisional roles)
1-16
Three Types of Roles
• Interpersonal roles
– Figurehead,
– leader,
– liaison.(communicator)
• Informational roles
– Monitor,
– disseminator,
– Spokesperson.
• Decisional roles
– Entrepreneur, disturbance handler, resource allocator,
negotiator
1-17
INTERPERSONAL
Role Description Identifiable
Activity
Figurehea Manager serves as an official Greeting visitors;
d representative of the signing legal
organization or unit documents
Leader Manager guides and Staffing, training
motivates staff and acts as a
positive influence in the
workplace
Liaison Manager interacts with and Acknowledging
with outside the organization mail/email,
to gain information performing
activities that
involve outsiders
18
INFORMATIONAL
Role Description Identifiable
Activity
Monitor Manager receives and Reading
collects information magazines and
reports;
maintaining
personal contacts
Communicat Manager distributes Holding meetings;
ion information within the making phone calls
(Disseminat organization to distribute
or) information;
email/memos
Spokespers Manager distributes Holding board
on information outside the meetings; giving
organization information to
the media
19
DECISIONAL
Role Description Identifiable Activity
Entrepren Manager initiates Searches organization
eur change environment for
opportunities,
supervises design of
projects
Disturban Manager decides how Steps in when an
ce Handler conflicts between employee suddenly
subordinates should be leaves or an important
resolved customer is lost
Resource Manager decides how the Scheduling; requesting
Allocator organization will use its authorization;
resources budgeting
Negotiator Manager decides to Participating in union
negotiate major contract negotiations or
contracts with other in those with suppliers
organizations or
individuals 20
Exhibit 1-5
Mintzberg’s Managerial Roles
1-21
Skills Managers Need
Robert L. Katz proposed that managers need three
critical skills in managing
• 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 and
complex situations concerning the organization
1-22
Exhibit 1-6
Skills Needed at Different
Managerial Levels
1-23
Challenges Facing Managers Today
and into the Future
Focus on technology
Focus on disruptive innovation
Focus on social media
Focus on ethics
Focus on political uncertainty
Focus on the customer
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
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 vehicle industry
Focus on Social Media
Social media: forms of electronic communication through
which users create online communities to share ideas,
information, personal messages, and other content
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
Organizational survival depends on building trust with
customers, clients, suppliers, employees, and other
stakeholders
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
Focus on the Customer
Without customers, most organizations would not exist
Managing customer relationships is the responsibility of all
managers and employees
Consistent, high-quality customer service is essential
Why Study
Management?
Universality of Management
– The reality that management is needed
• in all types and sizes of organizations
• at all organizational levels
• in all organizational areas
• in all organizations, regardless of location
1-31
Exhibit 1-9
Universal Need for Management
1-32
Challenges
of Being a Manager
Challenges
– Can be a thankless job
– May require clerical type duties
– Managers also spend significant amounts of time in
meetings and dealing with interruptions
– Managers often have to deal with a variety of
personalities and with the limited resources
1-33
Rewards of Being a Manager
Rewards
– 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.
1-34
Exhibit 1-10
Rewards and Challenges of Being a Manager
1-35
Review Learning OBJECTIVE 1.1
• Explain why managers are important to
organizations.
1. Organizations need their managerial skills and
abilities in uncertain, complex times.
2. Managers are critical to getting things done in
organizations.
3. Managers contribute to employee productivity
and loyalty.
1-36