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1 of 54
Understanding 
Managers and Managing
1-2 
Learning Objectives 
1. Describe what management is, why management is 
important, what managers do, and how managers 
utilize organizational resources efficiently and 
effectively to achieve organizational goals 
2. Distinguish among planning, organizing, leading, 
and controlling (the four principal managerial tasks), 
and explain how managers’ ability to handle each 
one affects organizational performance
1-3 
Learning Objectives 
3. Differentiate among three levels of management, and 
understand the tasks and responsibilities of managers 
at different levels in the organizational hierarchy 
4. Distinguish between three kinds of managerial skill, 
and explain why managers are divided into different 
departments to perform their tasks more efficiently and 
effectively.
1-4 
Learning Objectives 
5. Discuss some major changes in management 
practices today that have occurred as a result of 
globalization and the use of advanced information 
technology (IT). 
6. Discuss the principal challenges managers face in 
today’s increasingly competitive global environment
1-5 
What is Management? 
• All managers work in organizations 
• Organizations – collections of people 
who work together and coordinate their 
actions to achieve a wide variety of 
goals
1-6 
Question? 
What is a person responsible for 
supervising the use of an 
organization’s resources to meet its 
goals? 
A. Team leader 
B. Manager 
C. President 
D. Resource allocator
1-7 
Managers 
Managers – 
– The people responsible for supervising the 
use of an organization’s resources to meet 
its goals
1-8 
What is Management? 
The planning, organizing, leading, and 
controlling of human and other resources 
to achieve organizational goals effectively 
and efficiently
1-9 
What is Management? 
– Resources include people, skills, know-how 
and experience, machinery, raw materials, 
computers and IT, patents, financial capital, 
and loyal customers and employees
1-10 
Organizational Performance 
A measure of how efficiently and effectively 
managers use available resources to 
satisfy customers and achieve 
organizational goals
1-11 
Figure 1.1
1-12 
Organizational Performance 
Efficiency 
– A measure of how well or how productively 
resources are used to achieve a goal 
Effectiveness 
– A measure of the appropriateness of the 
goals an organization is pursuing and the 
degree to which they are achieved.
1-13 
Why study management? 
1. The more efficient and effective use of 
scarce resources that organizations 
make of those resources, the greater 
the relative well-being and prosperity of 
people in that society
1-14 
Why study management? 
2. Helps people deal with their bosses 
and coworkers 
3. Opens a path to a well-paying job and 
a satisfying 
career
1-15 
Managerial Tasks 
• Managers at all levels in all 
organizations perform each of the four 
essential managerial tasks of planning, 
organizing, leading, and controlling
1-16 
Four Functions of Management 
Figure 1.2
1-17 
Planning 
Process of identifying and selecting 
appropriate organizational goals and 
courses of action
1-18 
Steps in the Planning Process 
• Deciding which goals the organization 
will pursue 
• Deciding what courses of action to 
adopt to attain those goals 
• Deciding how to allocate 
organizational resources
1-19 
Planning 
• Complex, difficult activity 
• Strategy to adopt is not always 
immediately clear 
• Done under 
uncertainty
1-20 
Organizing 
Task managers perform to create a 
structure of working relationships that 
allow organizational members to interact 
and cooperate to achieve organizational 
goals
1-21 
Organizing 
• Involves grouping people into 
departments according to the kinds of 
job-specific tasks they perform 
• Managers lay out lines of authority and 
responsibility 
• Decide how to coordinate organizational 
resources
1-22 
Organizational Structure 
A formal system of task and reporting 
relationships that coordinates and 
motivates members so that they work 
together to achieve organizational goals
1-23 
Leading 
Articulating a clear organizational vision for 
its members to accomplish, and energize 
and enable employees so that everyone 
understands the part they play in 
achieving organizational goals
1-24 
Leading 
• Leadership involves using power, 
personality, and influence, persuasion, 
and communication skills 
• Outcome of leadership is highly 
motivated and committed workforce
1-25 
Controlling 
• Task of managers is to evaluate how 
well an organization has achieved its 
goals and to take any corrective actions 
needed to maintain or improve 
performance 
– The outcome of the control process is the ability to 
measure performance accurately and regulate 
organizational efficiency and effectiveness
1-26 
Decisional Roles 
Roles associated with methods managers use in planning 
strategy and utilizing resources. 
– Entrepreneur—deciding which new projects or programs to 
initiate and to invest resources in. 
– Disturbance handler—managing an unexpected event or 
crisis. 
– Resource allocator—assigning resources between 
functions and divisions, setting the budgets of lower 
managers. 
– Negotiator—reaching agreements between other 
managers, unions, customers, or shareholders.
1-27 
Interpersonal Roles 
Roles that managers assume to provide direction and 
supervision to both employees and the organization as 
a whole. 
– Figurehead—symbolizing the organization’s mission 
and what it is seeking to achieve. 
– Leader—training, counseling, and mentoring high 
employee performance. 
– Liaison—linking and coordinating the activities of 
people and groups both inside and outside the 
organization.
1-28 
Informational Roles 
Roles associated with the tasks needed to obtain and 
transmit information in the process of managing the 
organization. 
– Monitor—analyzing information from both the internal 
and external environment. 
– Disseminator—transmitting information to influence the 
attitudes and behavior of employees. 
– Spokesperson—using information to positively 
influence the way people in and out of the organization 
respond to it.
1-29 
Levels of Management 
Figure 1.3
1-30 
Areas of Managers 
Department 
– A group of managers and employees who 
work together and possess 
similar skills 
or use the same 
knowledge, tools, 
or techniques
1-31 
Levels of Management 
• First line managers - Responsible for daily 
supervision of the non-managerial employees who 
perform many of the specific activities necessary 
to produce goods and services 
• Middle managers - Supervise first-line 
managers. Responsible for finding the best way to 
organize human and other resources to achieve 
organizational goals
1-32 
Levels of Management 
• Top managers – 
• Responsible for the performance of all departments 
and have cross-departmental responsibility. 
• Establish organizational goals and monitor middle 
managers 
• Decide how different departments should interact 
• Ultimately responsible for the success or failure of 
an organization
1-33 
Levels of Management 
• Chief executive officer (CEO) is 
company’s most senior and important 
manager 
• Central concern is creation of a smoothly 
functioning top-management team 
– CEO, COO, Department heads
Relative Amount of Time That Managers Spend on 
1-34 
the Four Managerial Functions 
Figure 1.4
1-35 
Question? 
What skill is the ability to understand, alter, 
lead, and control the behavior of other 
individuals and groups? 
A. Conceptual 
B. Human 
C. Technical 
D. Managerial
1-36 
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 
– Job-specific skills required to perform a particular 
type of work or occupation at a high level.
1-37 
Skill Types Needed 
Figure 1.5
1-38 
Core Competency 
Specific set of departmental skills, abilities, 
knowledge and experience that allows 
one organization to outperform its 
competitors
1-39 
Restructuring 
• Involves simplifying, shrinking, or 
downsizing an organization’s operations 
to lower operating costs 
– Can reduce the morale of remaining 
employees
1-40 
Outsourcing 
• Contracting with another company, usually in 
a low cost country abroad, to perform a work 
activity the company previously performed 
itself 
• Increases efficiency by lowering operating 
costs, freeing up money and resources that 
can now be used in more effective ways
1-41 
Empowerment 
Involves giving 
employees more 
authority and 
responsibility over 
the way they perform 
their work activities
1-42 
Self-managed teams 
Groups of employees who assume 
collective responsibility for organizing, 
controlling, and supervising their own 
work activities
1-43 
Discussion Question 
What is the biggest challenge for 
management in a Global Environment? 
A. Building a Competitive Advantage 
B. Maintaining Ethical Standards 
C. Managing a Diverse Workforce 
D. Global Crisis Management
1-44 
Challenges for Management in 
a Global Environment 
• Rise of Global Organizations. 
• Building a Competitive Advantage 
• Maintaining Ethical Standards 
• Managing a Diverse Workforce 
• Utilizing Information Technology and 
Technologies 
• Global Crisis Management
1-45 
Building Competitive Advantage 
• Competitive Advantage – ability of one 
organization to outperform other 
organizations because it produces 
desired goods or services more 
efficiently and effectively than its 
competitors
Building Blocks of Competitive Advantage 
1-46 
Figure 1.6
1-47 
Building Competitive Advantage 
• Increasing efficiency 
– Reduce the quantity of resources used to 
produce goods or services 
• Increasing Quality 
– Improve the skills and abilities of the 
workforce 
– Introduce total quality management
1-48 
Building Competitive Advantage 
• Increasing speed, flexibility, and 
innovation 
– How fast a firm can bring new products to 
market 
– How easily a firm can change or alter the 
way they perform their activities
1-49 
Building Competitive Advantage 
• Innovation 
– Process of creating new or improved goods 
and services that customers want 
– Developing better ways to produce or 
provide goods and services
1-50 
Turnaround Management 
• Difficult and complex management task 
• Done under conditions of great 
uncertainty 
• Risk of failure is greater for a troubled 
company 
• More radical restructuring necessary
1-51 
Maintaining Ethical and Socially 
Responsible Standards 
• Managers are under considerable 
pressure to make the best use of 
resources 
• Too much pressure may induce 
managers to behave unethically, and 
even illegally
1-52 
Managing a Diverse Workforce 
• To create a highly trained and motivated 
workforce managers must establish 
HRM procedures that are legal, fair and 
do not discriminate against 
organizational members
1-53 
Global Crisis Management 
May be the result of: 
• Natural causes 
• Manmade causes 
• International terrorism 
• Geopolitical conflicts
1-54 
Movie Example: Office Space 
What type of manager 
is Bill Lumbergh in the movie 
“ Office Space”?

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  • 2. 1-2 Learning Objectives 1. Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals 2. Distinguish among planning, organizing, leading, and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance
  • 3. 1-3 Learning Objectives 3. Differentiate among three levels of management, and understand the tasks and responsibilities of managers at different levels in the organizational hierarchy 4. Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively.
  • 4. 1-4 Learning Objectives 5. Discuss some major changes in management practices today that have occurred as a result of globalization and the use of advanced information technology (IT). 6. Discuss the principal challenges managers face in today’s increasingly competitive global environment
  • 5. 1-5 What is Management? • All managers work in organizations • Organizations – collections of people who work together and coordinate their actions to achieve a wide variety of goals
  • 6. 1-6 Question? What is a person responsible for supervising the use of an organization’s resources to meet its goals? A. Team leader B. Manager C. President D. Resource allocator
  • 7. 1-7 Managers Managers – – The people responsible for supervising the use of an organization’s resources to meet its goals
  • 8. 1-8 What is Management? The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently
  • 9. 1-9 What is Management? – Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees
  • 10. 1-10 Organizational Performance A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals
  • 12. 1-12 Organizational Performance Efficiency – A measure of how well or how productively resources are used to achieve a goal Effectiveness – A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.
  • 13. 1-13 Why study management? 1. The more efficient and effective use of scarce resources that organizations make of those resources, the greater the relative well-being and prosperity of people in that society
  • 14. 1-14 Why study management? 2. Helps people deal with their bosses and coworkers 3. Opens a path to a well-paying job and a satisfying career
  • 15. 1-15 Managerial Tasks • Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling
  • 16. 1-16 Four Functions of Management Figure 1.2
  • 17. 1-17 Planning Process of identifying and selecting appropriate organizational goals and courses of action
  • 18. 1-18 Steps in the Planning Process • Deciding which goals the organization will pursue • Deciding what courses of action to adopt to attain those goals • Deciding how to allocate organizational resources
  • 19. 1-19 Planning • Complex, difficult activity • Strategy to adopt is not always immediately clear • Done under uncertainty
  • 20. 1-20 Organizing Task managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals
  • 21. 1-21 Organizing • Involves grouping people into departments according to the kinds of job-specific tasks they perform • Managers lay out lines of authority and responsibility • Decide how to coordinate organizational resources
  • 22. 1-22 Organizational Structure A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals
  • 23. 1-23 Leading Articulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals
  • 24. 1-24 Leading • Leadership involves using power, personality, and influence, persuasion, and communication skills • Outcome of leadership is highly motivated and committed workforce
  • 25. 1-25 Controlling • Task of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance – The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness
  • 26. 1-26 Decisional Roles Roles associated with methods managers use in planning strategy and utilizing resources. – Entrepreneur—deciding which new projects or programs to initiate and to invest resources in. – Disturbance handler—managing an unexpected event or crisis. – Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers. – Negotiator—reaching agreements between other managers, unions, customers, or shareholders.
  • 27. 1-27 Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole. – Figurehead—symbolizing the organization’s mission and what it is seeking to achieve. – Leader—training, counseling, and mentoring high employee performance. – Liaison—linking and coordinating the activities of people and groups both inside and outside the organization.
  • 28. 1-28 Informational Roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization. – Monitor—analyzing information from both the internal and external environment. – Disseminator—transmitting information to influence the attitudes and behavior of employees. – Spokesperson—using information to positively influence the way people in and out of the organization respond to it.
  • 29. 1-29 Levels of Management Figure 1.3
  • 30. 1-30 Areas of Managers Department – A group of managers and employees who work together and possess similar skills or use the same knowledge, tools, or techniques
  • 31. 1-31 Levels of Management • First line managers - Responsible for daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services • Middle managers - Supervise first-line managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals
  • 32. 1-32 Levels of Management • Top managers – • Responsible for the performance of all departments and have cross-departmental responsibility. • Establish organizational goals and monitor middle managers • Decide how different departments should interact • Ultimately responsible for the success or failure of an organization
  • 33. 1-33 Levels of Management • Chief executive officer (CEO) is company’s most senior and important manager • Central concern is creation of a smoothly functioning top-management team – CEO, COO, Department heads
  • 34. Relative Amount of Time That Managers Spend on 1-34 the Four Managerial Functions Figure 1.4
  • 35. 1-35 Question? What skill is the ability to understand, alter, lead, and control the behavior of other individuals and groups? A. Conceptual B. Human C. Technical D. Managerial
  • 36. 1-36 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 – Job-specific skills required to perform a particular type of work or occupation at a high level.
  • 37. 1-37 Skill Types Needed Figure 1.5
  • 38. 1-38 Core Competency Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors
  • 39. 1-39 Restructuring • Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs – Can reduce the morale of remaining employees
  • 40. 1-40 Outsourcing • Contracting with another company, usually in a low cost country abroad, to perform a work activity the company previously performed itself • Increases efficiency by lowering operating costs, freeing up money and resources that can now be used in more effective ways
  • 41. 1-41 Empowerment Involves giving employees more authority and responsibility over the way they perform their work activities
  • 42. 1-42 Self-managed teams Groups of employees who assume collective responsibility for organizing, controlling, and supervising their own work activities
  • 43. 1-43 Discussion Question What is the biggest challenge for management in a Global Environment? A. Building a Competitive Advantage B. Maintaining Ethical Standards C. Managing a Diverse Workforce D. Global Crisis Management
  • 44. 1-44 Challenges for Management in a Global Environment • Rise of Global Organizations. • Building a Competitive Advantage • Maintaining Ethical Standards • Managing a Diverse Workforce • Utilizing Information Technology and Technologies • Global Crisis Management
  • 45. 1-45 Building Competitive Advantage • Competitive Advantage – ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors
  • 46. Building Blocks of Competitive Advantage 1-46 Figure 1.6
  • 47. 1-47 Building Competitive Advantage • Increasing efficiency – Reduce the quantity of resources used to produce goods or services • Increasing Quality – Improve the skills and abilities of the workforce – Introduce total quality management
  • 48. 1-48 Building Competitive Advantage • Increasing speed, flexibility, and innovation – How fast a firm can bring new products to market – How easily a firm can change or alter the way they perform their activities
  • 49. 1-49 Building Competitive Advantage • Innovation – Process of creating new or improved goods and services that customers want – Developing better ways to produce or provide goods and services
  • 50. 1-50 Turnaround Management • Difficult and complex management task • Done under conditions of great uncertainty • Risk of failure is greater for a troubled company • More radical restructuring necessary
  • 51. 1-51 Maintaining Ethical and Socially Responsible Standards • Managers are under considerable pressure to make the best use of resources • Too much pressure may induce managers to behave unethically, and even illegally
  • 52. 1-52 Managing a Diverse Workforce • To create a highly trained and motivated workforce managers must establish HRM procedures that are legal, fair and do not discriminate against organizational members
  • 53. 1-53 Global Crisis Management May be the result of: • Natural causes • Manmade causes • International terrorism • Geopolitical conflicts
  • 54. 1-54 Movie Example: Office Space What type of manager is Bill Lumbergh in the movie “ Office Space”?

Editor's Notes

  1. The correct answer is “B” Manager. See next slide
  2. Henri Fayol outlined the four managerial functions in his book General Industrial Management
  3. Major part of the middle manager’s job is developing and fine-tuning skills and know-how, such as manufacturing or marketing expertise, that allow the organization to be efficient and effective
  4. The correct answer is “B”, Human skill. See slide 1-37.
  5. There is no one correct answer. It will depend on the firm and it’s industry. Some firms need to spend more time with ethics, others with building a competitive advantage, etc. Students should be prepared to discuss based on an industry they are familiar with.
  6. According to Leonard Maltin, in his 2004 movie and Video guide, “Office Space is a fitfully funny satire of office life in modern-day corporate America, with Ron Livingston as a computer programmer who hates his job and eventually finds a way to express his disdain for his company and his boss – Gary Cole as Bill Lumbergh, a Divisional VP. In the second scene, called The Memo, Lumbergh spends an inordinate amount of time worrying about a “new cover sheet on all TPS reports” There are two ways to look at type of manager. One, Lumbergh’s position in the company is a Vice President. In most companies, that would make him a middle-manager. Two, Lumbergh acts as a micromanager, focusing on a minor issue.