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Chapter 1     

Contemporary Management: Managers and Managing

After studying this chapter, you should be able to:

Chapter Outline

  • •What Is Management?
      Achieving High Performance: A Manager’s Goal
  • •Why Study Management?
  • •Managerial Functions
  1. Planning
  2. Organizing
  3. Leading
  4. Controlling
  • •Types of Managers
  • •IT and Managerial Roles and Skills
  • •Challenges for Management in a Global Environment
  • •Types of Managers
  1. Levels of Management
  2. Areas of Managers
  3. Recent Changes in Managerial Hierarchies
  • •IT and Managerial Roles and Skills
  1. Managerial Roles Identified by Mintzberg
  2. Being a Manager
  3. Managerial Skills
  • •Challenges for Management in a Global Environment
  1. Building a Competitive Advantage
  2. Maintaining Ethical Standards
  3. Managing a Diverse Workforce
  4. Utilizing New Information Technology and E-commerce



What Is Management?

  • •Management
    The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.
  • •Managers
        The people responsible for supervising the use of an organization’s resources to meet its goals.
  • •Resources are organizational assets
       People Skills Knowledge Information
       Raw materials Machinery Financial capital



Efficiency, Effectiveness, and Performance in an Organization Fig 1.1


Why Study Management?

  • •Proper management directly impacts improvements in the well-being of a society.
  • •Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations.
  • •Studying management opens a path to a well-paying job and a satisfying career.



Four Functions of Management fig.1-2

Types of Managers

  • •Levels of management
         First-line managers
•           Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.


        Middle managers
•           Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals.

    Top managers

•            Responsible for the performance of all departments and have   cross-departmental responsibility. Establish organizational goals and monitor middle managers. Form the top management team along with the CEO and COO.



Levels of Management  fig 1-3

Relative Amount of Time That Managers Spend on the Four Managerial Functions  fig 1-4

IT and Managerial Roles and Skills

  • •Managerial Role
         The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization.
  • •Roles are directed inside as well as outside the organization.
  • •Roles are defined into three role categories (as identified by Mintzberg):
          Interpersonal Informational Decisional



Managerial Skills

  • •Conceptual skills
       The ability to analyze and diagnose a situation and distinguish between cause and effect.
  • •Human skills
        The ability to understand, alter, lead, and control the behavior of other individuals and groups.
  • •Technical skills
         The specific knowledge and techniques required to perform an organizational role.



Skill Types Needed by Managerial Level fig 1-5

Challenges for Management in
a Global Environment

  • •Increasing Number of Global Organizations.
  • •Building a Competitive Advantage
  • •Maintaining Ethical Standards
  • •Managing a Diverse Workforce
  • •Utilizing Information Technology and E-commerce



Building Blocks of Competitive Advantage  fig1-6


Web Links

AOL-Time Warner
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( )
( )
Small Business Administration
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Antitrust Policy--an online resource linking economic research, policy, and cases
( )
Union Bank of California
( )
Pillsbury Co.
( )
( )


Chapter Quiz          

Key Term Flashcards         

PowerPoint Presentation Chapter 1 (271.0K)             Our Server

Chapter Outline

  1. What is management? Management is the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.
    1. Achieving High Performance: A Manager's Goal
      1. Organizational performance is the measure of how efficiently and effectively managers use resources to satisfy customers and achieve organizational goals.
      2. Efficiency is how well the resources are used.
      3. Effectiveness is how well the organization has achieved its goals.
    2. Why study management? The more efficiently and effectively an organization can use its resources, the more profitable the organization will be.
  2. Managerial Functions
    1. Planning - the process of identifying and selecting goals and ways to accomplish these goals.
    2. Organizing - establishing a structure of working relationships used to accomplish the organization's goals.
    3. Leading - energizing and enabling workers toward the organization's goals.
    4. Controlling - evaluating the organization's performance and taking actions to improve its performance.
  3. Types of Managers
    1. Levels of management
      1. First-line managers (also called supervisors) daily supervise non-managerial employees.
      2. Middle managers try to organize resources to achieve organizational goals.
      3. Top managers are responsible for the performance of all departments (i.e., they have cross-departmental responsibility).
    2. Recent changes in Managerial Hierarchies
      1. Restructuring - downsizing the organization by eliminating jobs.
      2. Empowerment - expanding employee's knowledge, tasks, and responsibilities.
      3. Self-managed teams - groups given responsibility for supervising their own activities and monitoring the quality of the goods and services they provide.
  4. Managerial Roles and Skills - a role is a set of tasks a manager is expected to perform based on that manager's position in the organization.
    1. Managerial roles identified by Mintzberg
      1. Decisional roles
        1. Entrepreneur - developing innovative goods and services or expanding markets
        2. Disturbance handler - dealing with both internal and external crises of the organization
        3. Resource allocator - sets budgets
        4. Negotiator - works with other organizations to establish agreements
      2. Informational roles
        1. Monitor - evaluates managers and takes corrective action
        2. Disseminator - informs workers about changes in the internal and external environment
        3. Spokesperson - informs the local community about the organization's activities
      3. Interpersonal roles
        1. Figurehead - explains the organization's goals to employees
        2. Leader - provides an example for employees to follow
        3. Liaison - coordinates the work of managers in different departments
    2. Being a Manager - managers learn both from their successes and their failures
    3. Managerial Skills
      1. Conceptual skills - analyzing and diagnosing a situation
      2. Human skills - understanding, leading, and controlling the behavior of individuals and groups
      3. Technical skills - job-specific knowledge and techniques
  5. Challenges for Management in a Global Environment
    1. Building a competitive advantage
      1. Increasing efficiency - reducing the resources needed to produce goods
      2. Increasing quality - total quality management (TQM)
      3. Increasing speed, flexibility, and innovation
    2. Maintaining ethical standards - avoiding bribes and other unethical behavior

Managing a diverse workforce - treating employees in a fair and equitable manner that does not discriminate based on age, gender, race, religion, sexual preference, or income level.

Chapter Summary

WHAT IS MANAGEMENT? A manager is a person responsible for supervising the use of an organization's resources to meet its goals. An organization is a collection of people who work together and coordinate their actions to achieve a wide variety of goals. Management is the process of using organizational resources to achieve organizational goals effectively and efficiently through planning, organizing, leading, and controlling. An efficient organization makes the most productive use of its resources. An effective organization pursues appropriate goals and achieves these goals by using its resources to create the goods or services that customers want.

MANAGERIAL FUNCTIONS The four principal managerial functions are planning, organizing, leading, and controlling. Managers at all levels of the organization and in all departments perform these functions. Effective management means managing these activities successfully.

TYPES OF MANAGERS Organizations typically have three levels of management. First-line managers are responsible for the day-to-day supervision of nonmanagerial employees. Middle managers are responsible for developing and utilizing organizational resources efficiently and effectively. Top managers have cross-departmental responsibility. The top managers' job is to establish appropriate goals for the entire organization and to verify that department managers are utilizing resources to achieve those goals. To increase efficiency and effectiveness, some organizations have altered their managerial hierarchies by restructuring, by empowering their workforces, utilizing self-managed teams, and utilizing new information technology.

IT AND MANAGERIAL ROLES AND SKILLS According to Mintzberg, managers play 10 different roles: figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, and negotiator. Three types of skills help managers perform these roles effectively: conceptual, human, and technical skills. IT is changing both the way managers perform their roles and the skills they need to perform these roles because it provides richer and more meaningful information.

CHALLENGES FOR MANAGEMENT IN A GLOBAL ENVIRONMENT Today's competitive global environment presents many interesting challenges to managers: to build a competitive advantage by increasing efficiency; quality; speed, flexibility, and innovation; and customer responsiveness. To behave ethically toward people inside and outside the organization; to manage a diverse workforce; and to utilize new information systems and technologies.