SlideShare a Scribd company logo
1 of 38
1
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management, 14e
Chapter 1: Leading Edge Management
2
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Icebreaker
"Management is doing things right; leadership is doing the right things."
— Peter F. Drucker, acclaimed management consultant
• Reflect on the above statement, either individually or pairing up with
another student. Then think through the following questions:
− Are good managers good leaders? Are good leaders good
managers?
− Think about a situation in which you were a good manager or
leader. (Share this story with your student partner.)
3
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (1 of 2)
• By the end of this chapter you should be able to:
1. Explain five management competencies and the trend
toward bosslessness in today’s world.
2. Define the four management functions and the type of
management activity associated with each.
3. Explain the difference between efficiency and effectiveness,
as well as their importance for organizational performance.
4. Describe technical, human, and conceptual skills and their
relevance for managers.
4
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (2 of 2)
• By the end of this chapter you should be able to:
5. Identify the personal challenges faced by new managers
and ways of overcoming them.
6. Define the management types and roles that managers
perform in organizations.
7. Explain the unique characteristics of the manager’s role in
nonprofit organizations.
5
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Today’s Effective Managers . . .
(LO 1)
• Do more with less
• Engage employees’ hearts, minds, and energy
• See change as natural
• Inspire vision and cultural values that allow people to create a
collaborative and productive workplace
6
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management Competencies for Today’s World
(LO 1)
• Management: Attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading, and controlling organizational
resources
• Today’s effective manager is an enabler who helps people do and be their best
• Today’s best managers are “future-facing”
• Managers employ an empowering leadership style
7
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Rapid Environmental Shifts
(LO 1)
• Technology (e.g., social media & mobile apps)
• Move to knowledge/information-based economy
• Rise of artificial intelligence
• Global market forces
• Growing threat of cybercrime
• Shifting expectations
8
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.1 Management Competencies
for Today’s World (LO 1)
9
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.2 What Do Managers Do? (LO 2)
10
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.3 The Process of Management
(LO 2)
11
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Polling Activity 1
If organizational performance indicates how well a manager is doing his or her
job, is it more important for a manager to focus on efficiency or effectiveness?
a. Efficiency is more important
b. Effectiveness is more important
c. Importance of efficiency and effectiveness depends on the manager’s role
and goals
d. Efficiency and effectiveness are equally important
12
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Performance
(LO 3)
• Organization: Social entity that is goal-directed and deliberately structured
• Organizational effectiveness: Degree to which the organization achieves a
stated goal
• Organizational efficiency: Refers to the amount of resources used to achieve
an organizational goal
• High performance: Attainment of organizational goals by using resources in an
efficient and effective manner
13
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management Skills
(LO 4)
• Three categories of skills:
− Technical
− Human
− Conceptual
• The degree of the skills may vary, but all managers must possess the skills
• The application of management skills change as managers move up the
hierarchy
14
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1
• If you are a middle-level manager, your proficiency in which of the three
management skills is likely to contribute most to your success?
− Technical skills
− Human skills
− Conceptual skills
• How does your answer change, if at all, if you are a top manager? If you are a
line manager?
15
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1 Debrief
• If you are a middle-level manager, your proficiency in which of the three management
skills is likely to contribute most to your success?
− Because middle managers most likely focus on facilitation and coordination among people
and departments, these managers rely more on communication, or human skills.
• How does your answer change, if at all, if you are a top manager? If you are a line
manager?
− Human skills are increasingly important for managers at all levels and in all
types of organizations. Top managers are likely to depend on conceptual skills,
or their cognitive ability to see the organization as a whole system and the
relationships among its parts as much as they rely on communication. Line
managers definitely need human skills, but they are also close to a function that
depends on technical skills, or the mastery of methods, techniques, and
equipment involved in specific functions.
16
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.4 Relationship of Skills to Management
(LO 4)
17
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.5 Google’s Rules:
Top Ten Behaviors for Managers (LO 4)
18
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
When Skills Fail
(LO 4)
• Management failures have been in the news
• Flaws and weaknesses are apparent during uncertain times
• People have become less willing to overlook mistakes
19
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.6 Top Causes of Manager Failure
(LO 4)
20
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Polling Activity 2
You are a bright, hard-working, entry-level manager who fully intends to rise
through the ranks. Your performance evaluation gives you high marks for your
technical skills, but low marks when it comes to people skills. Which of the
following scenarios would you choose?
a. Improve people skills through behavioral classes and role playing
b. Focus on technical skills as the priority rather than improving people
skills
c. Learn people skills through modeling others’ excellent examples
d. Rethink your career path
21
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Making the Leap: Becoming a New Manager
(LO 5)
• Performers often become managers
• Becoming a manager transforms personal identity—how people think of
themselves
− Move from being a doer to a coordinator
• Many new managers expect more freedom to make changes
− However, successful managers build teams and networks
• Many make the transformation in a “trial by fire”
22
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.7 Making the Leap from Individual
Performer to Manager (LO 5)
23
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 2
• How do you feel about having management responsibilities in today’s world,
which is characterized by uncertainty, ambiguity, and sudden changes or threats
from the environment? Describe some skills and competencies that you think
are important to managers working in these conditions.
24
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 2 Debrief
• How do you feel about having management responsibilities in today’s world,
which is characterized by uncertainty, ambiguity, and sudden changes or
threats from the environment? Describe some skills and competencies that
you think are important to managers working in these conditions.
− Even during high levels of uncertainty, ambiguity, and sudden changes, managers can
access useful information about alternative courses of action and their likely outcomes for
each decision they face.
− No matter the circumstances, managers must apply skills and competencies to benefit the
organization and its stakeholders. Ineffective communication skills and practices are the most
common causes of failure. Organizational performance and reputation suffer if managers do
not communicate effectively, including listening to employees and customers and showing
genuine care and concern.
− Quickly finding necessary information requires managers use both conceptual and technical
skills, but a high level of human skills contributes to relationships necessary to sustain the
manager in times of crisis. As managers attempt to sort out the uncertainties and threats they
face, the decision-making role becomes even more critical.
25
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management Types: Vertical
(LO 6)
• First-level or supervisory managers: Responsible for production of goods
and services
• Middle managers: Responsible for business units and major departments
• Top managers: Responsible for the entire organization
25
26
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management Types: Horizontal
(LO 6)
• General managers: Responsible for several departments that perform different
functions
• Functional managers: Responsible for departments that perform a single task
• Project managers: Responsible for temporary work projects involving people
from different functions and levels
• Line managers: Responsible for departments that perform a core function of
the organization
• Staff managers: Responsible for departments that support the organization’s
line departments with specialized advisory or support functions
27
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Manager Activities
(LO 6)
• Adventures in multitasking
− Activity characterized by variety, fragmentation, and brevity
− Less than nine minutes on most activities
− Managers shift gears quickly
• Life on speed dial
− Work at unrelenting pace
− Interrupted constantly
− Ad hoc meetings
27
28
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Time Management
(LO 6)
• Time management: Using techniques that enable you to get more done in less
time and with better results, be more relaxed, and have more time to enjoy your
work and your life
• Learning to manage time effectively is one of the greatest challenges new
managers face
29
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Manager Roles
(LO 6)
• Role: Set of expectations for a manager’s behavior
• Three categories of management roles
− Informational
− Interpersonal
− Decisional
• Management roles accomplish four functions
− Planning
− Organizing
− Leading
− Controlling
30
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.8 Ten Manager Roles (LO 6)
31
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Knowledge Check 1
Which of the following set of manager roles would be considered decisional
roles?
a. Spokesperson, leader, and entrepreneur
b. Negotiator, figurehead, and liaison
c. Disseminator, monitor, and leader
d. Disturbance handler, entrepreneur, and resource allocator
32
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Knowledge Check 1: Answer
Which of the following set of manager roles would be considered decisional
roles?
d. Disturbance handler, entrepreneur, and resource allocator
33
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.9 Hierarchical Levels and Importance
of Leader and Liaison Roles (LO 6)
34
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing in Nonprofit Organizations
(LO 7)
• Nonprofits need management talent
• Apply the four functions of management to make social impact
• Generating social impact rather than profits is what makes nonprofits different
from other businesses
• Try to keep costs low
• Success—need to measure intangibles like “improve public health”
35
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Knowledge Check 2
Managers at a nonprofit organization would be least likely to be responsible for
which of the following management activities?
a. Generating profit
b. Generating social impact
c. Measuring costs
d. Measuring intangibles
36
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Knowledge Check 2: Answer
Managers at a nonprofit organization would be least likely to be responsible for
which of the following management activities?
b. Generating social impact
37
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Summary (1 of 2)
• Now that the lesson has ended, you should have learned how to:
1. Explain five management competencies and the trend toward
bosslessness in today’s world.
2. Define the four management functions and the type of
management activity associated with each.
3. Explain the difference between efficiency and effectiveness, as
well as their importance for organizational performance.
4. Describe technical, human, and conceptual skills and their
relevance for managers.
38
©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Summary (2 of 2)
• Now that the lesson has ended, you should have learned how to:
5. Identify the personal challenges faced by new managers and
ways of overcoming them.
6. Define the management types and roles that managers perform in
organizations.
7. Explain the unique characteristics of the manager’s role in
nonprofit organizations.

More Related Content

What's hot

What's hot (9)

Motivation & mgmt fundamentals
Motivation & mgmt fundamentalsMotivation & mgmt fundamentals
Motivation & mgmt fundamentals
 
Entrepreneurial Leadership
Entrepreneurial LeadershipEntrepreneurial Leadership
Entrepreneurial Leadership
 
PA Consulting Innovation Strategy Playbook
PA Consulting Innovation Strategy PlaybookPA Consulting Innovation Strategy Playbook
PA Consulting Innovation Strategy Playbook
 
القيادة-الإدارية1.ppt
القيادة-الإدارية1.pptالقيادة-الإدارية1.ppt
القيادة-الإدارية1.ppt
 
STRATEGIC MANAGEMENT OF TECHNOLOGICAL INNOVATION
STRATEGIC MANAGEMENT OFTECHNOLOGICAL INNOVATION STRATEGIC MANAGEMENT OFTECHNOLOGICAL INNOVATION
STRATEGIC MANAGEMENT OF TECHNOLOGICAL INNOVATION
 
استراتيجية الشراكة والتشبيك.pdf
استراتيجية الشراكة والتشبيك.pdfاستراتيجية الشراكة والتشبيك.pdf
استراتيجية الشراكة والتشبيك.pdf
 
Carnegie Foundation Summit on Improvement in Education: Seeing the System
Carnegie Foundation Summit on Improvement in Education: Seeing the SystemCarnegie Foundation Summit on Improvement in Education: Seeing the System
Carnegie Foundation Summit on Improvement in Education: Seeing the System
 
Leadership
LeadershipLeadership
Leadership
 
منهجية إدارة التغيير
منهجية إدارة التغييرمنهجية إدارة التغيير
منهجية إدارة التغيير
 

Similar to Chapter 1.pptx

Chapter 12 strategic leadership
Chapter 12 strategic leadershipChapter 12 strategic leadership
Chapter 12 strategic leadership
Dr. Lam D. Nguyen
 
Fundamental of management. Lecture 1
Fundamental of management. Lecture 1Fundamental of management. Lecture 1
Fundamental of management. Lecture 1
Zaha World
 
Chapter 3Contingency Approaches to Leadership6e©2015 Cen
Chapter 3Contingency Approaches to Leadership6e©2015 CenChapter 3Contingency Approaches to Leadership6e©2015 Cen
Chapter 3Contingency Approaches to Leadership6e©2015 Cen
EstelaJeffery653
 
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docxCopyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
voversbyobersby
 
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docxChapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
mccormicknadine86
 
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docxChapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
robertad6
 

Similar to Chapter 1.pptx (20)

Small Business Management Chapter 19 PowerPoint
Small Business Management Chapter 19 PowerPointSmall Business Management Chapter 19 PowerPoint
Small Business Management Chapter 19 PowerPoint
 
Chapter 08 management and organization
Chapter 08 management and organizationChapter 08 management and organization
Chapter 08 management and organization
 
Leadership experiences
Leadership experiencesLeadership experiences
Leadership experiences
 
leadership ppt.pptx
leadership ppt.pptxleadership ppt.pptx
leadership ppt.pptx
 
Chapter 1
Chapter 1 Chapter 1
Chapter 1
 
Chapter 12 strategic leadership
Chapter 12 strategic leadershipChapter 12 strategic leadership
Chapter 12 strategic leadership
 
Guidebook to optimizing your leadership pipeline
Guidebook to optimizing your leadership pipelineGuidebook to optimizing your leadership pipeline
Guidebook to optimizing your leadership pipeline
 
Fundamental of management. Lecture 1
Fundamental of management. Lecture 1Fundamental of management. Lecture 1
Fundamental of management. Lecture 1
 
Chapter 3Contingency Approaches to Leadership6e©2015 Cen
Chapter 3Contingency Approaches to Leadership6e©2015 CenChapter 3Contingency Approaches to Leadership6e©2015 Cen
Chapter 3Contingency Approaches to Leadership6e©2015 Cen
 
Optimizing Your Leadership Pipeline
Optimizing Your Leadership PipelineOptimizing Your Leadership Pipeline
Optimizing Your Leadership Pipeline
 
[Guidebook] Optimizing Your Leadership Pipeline
[Guidebook] Optimizing Your Leadership Pipeline[Guidebook] Optimizing Your Leadership Pipeline
[Guidebook] Optimizing Your Leadership Pipeline
 
Daft11ePPT_Ch01.pptx
Daft11ePPT_Ch01.pptxDaft11ePPT_Ch01.pptx
Daft11ePPT_Ch01.pptx
 
TakeON! Management Matters brochure
TakeON! Management Matters brochureTakeON! Management Matters brochure
TakeON! Management Matters brochure
 
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docxCopyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
Copyright ©2016 Cengage Learning. All Rights Reserved. May not.docx
 
MGT_489_Chapter_1.pptx
MGT_489_Chapter_1.pptxMGT_489_Chapter_1.pptx
MGT_489_Chapter_1.pptx
 
The Leadership Experience
The Leadership ExperienceThe Leadership Experience
The Leadership Experience
 
The Leadership Experience
The Leadership ExperienceThe Leadership Experience
The Leadership Experience
 
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docxChapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
 
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docxChapter 6Managerial Decision Making© 2020 Cengage Learning.docx
Chapter 6Managerial Decision Making© 2020 Cengage Learning.docx
 
MGMT 488 Ch 1
MGMT 488 Ch 1MGMT 488 Ch 1
MGMT 488 Ch 1
 

Recently uploaded

Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
bleessingsbender
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
vineshkumarsajnani12
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service AvailableGoa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
Call Girls Mumbai
 

Recently uploaded (20)

QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptxQSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
 
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDEUJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
 
MEHSANA 💋 Call Girl 9827461493 Call Girls in Escort service book now
MEHSANA 💋 Call Girl 9827461493 Call Girls in  Escort service book nowMEHSANA 💋 Call Girl 9827461493 Call Girls in  Escort service book now
MEHSANA 💋 Call Girl 9827461493 Call Girls in Escort service book now
 
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
 
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
 
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDEGURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
Asansol Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Available
Asansol Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service AvailableAsansol Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Available
Asansol Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Available
 
Top Quality adbb 5cl-a-d-b Best precursor raw material
Top Quality adbb 5cl-a-d-b Best precursor raw materialTop Quality adbb 5cl-a-d-b Best precursor raw material
Top Quality adbb 5cl-a-d-b Best precursor raw material
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Moradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in PenacovaMoradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in Penacova
 
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
Berhampur Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Avai...
Berhampur Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Avai...Berhampur Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Avai...
Berhampur Call Girl Just Call♥️ 8084732287 ♥️Top Class Call Girl Service Avai...
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docxManagerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service AvailableGoa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
Goa Call Girls Just Call 👉📞90042XXXX7 Top Class Call Girl Service Available
 

Chapter 1.pptx

  • 1. 1 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management, 14e Chapter 1: Leading Edge Management
  • 2. 2 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Icebreaker "Management is doing things right; leadership is doing the right things." — Peter F. Drucker, acclaimed management consultant • Reflect on the above statement, either individually or pairing up with another student. Then think through the following questions: − Are good managers good leaders? Are good leaders good managers? − Think about a situation in which you were a good manager or leader. (Share this story with your student partner.)
  • 3. 3 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 2) • By the end of this chapter you should be able to: 1. Explain five management competencies and the trend toward bosslessness in today’s world. 2. Define the four management functions and the type of management activity associated with each. 3. Explain the difference between efficiency and effectiveness, as well as their importance for organizational performance. 4. Describe technical, human, and conceptual skills and their relevance for managers.
  • 4. 4 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (2 of 2) • By the end of this chapter you should be able to: 5. Identify the personal challenges faced by new managers and ways of overcoming them. 6. Define the management types and roles that managers perform in organizations. 7. Explain the unique characteristics of the manager’s role in nonprofit organizations.
  • 5. 5 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Today’s Effective Managers . . . (LO 1) • Do more with less • Engage employees’ hearts, minds, and energy • See change as natural • Inspire vision and cultural values that allow people to create a collaborative and productive workplace
  • 6. 6 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Competencies for Today’s World (LO 1) • Management: Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources • Today’s effective manager is an enabler who helps people do and be their best • Today’s best managers are “future-facing” • Managers employ an empowering leadership style
  • 7. 7 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Rapid Environmental Shifts (LO 1) • Technology (e.g., social media & mobile apps) • Move to knowledge/information-based economy • Rise of artificial intelligence • Global market forces • Growing threat of cybercrime • Shifting expectations
  • 8. 8 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.1 Management Competencies for Today’s World (LO 1)
  • 9. 9 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.2 What Do Managers Do? (LO 2)
  • 10. 10 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.3 The Process of Management (LO 2)
  • 11. 11 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Polling Activity 1 If organizational performance indicates how well a manager is doing his or her job, is it more important for a manager to focus on efficiency or effectiveness? a. Efficiency is more important b. Effectiveness is more important c. Importance of efficiency and effectiveness depends on the manager’s role and goals d. Efficiency and effectiveness are equally important
  • 12. 12 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Performance (LO 3) • Organization: Social entity that is goal-directed and deliberately structured • Organizational effectiveness: Degree to which the organization achieves a stated goal • Organizational efficiency: Refers to the amount of resources used to achieve an organizational goal • High performance: Attainment of organizational goals by using resources in an efficient and effective manner
  • 13. 13 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Skills (LO 4) • Three categories of skills: − Technical − Human − Conceptual • The degree of the skills may vary, but all managers must possess the skills • The application of management skills change as managers move up the hierarchy
  • 14. 14 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 1 • If you are a middle-level manager, your proficiency in which of the three management skills is likely to contribute most to your success? − Technical skills − Human skills − Conceptual skills • How does your answer change, if at all, if you are a top manager? If you are a line manager?
  • 15. 15 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 1 Debrief • If you are a middle-level manager, your proficiency in which of the three management skills is likely to contribute most to your success? − Because middle managers most likely focus on facilitation and coordination among people and departments, these managers rely more on communication, or human skills. • How does your answer change, if at all, if you are a top manager? If you are a line manager? − Human skills are increasingly important for managers at all levels and in all types of organizations. Top managers are likely to depend on conceptual skills, or their cognitive ability to see the organization as a whole system and the relationships among its parts as much as they rely on communication. Line managers definitely need human skills, but they are also close to a function that depends on technical skills, or the mastery of methods, techniques, and equipment involved in specific functions.
  • 16. 16 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.4 Relationship of Skills to Management (LO 4)
  • 17. 17 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.5 Google’s Rules: Top Ten Behaviors for Managers (LO 4)
  • 18. 18 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. When Skills Fail (LO 4) • Management failures have been in the news • Flaws and weaknesses are apparent during uncertain times • People have become less willing to overlook mistakes
  • 19. 19 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.6 Top Causes of Manager Failure (LO 4)
  • 20. 20 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Polling Activity 2 You are a bright, hard-working, entry-level manager who fully intends to rise through the ranks. Your performance evaluation gives you high marks for your technical skills, but low marks when it comes to people skills. Which of the following scenarios would you choose? a. Improve people skills through behavioral classes and role playing b. Focus on technical skills as the priority rather than improving people skills c. Learn people skills through modeling others’ excellent examples d. Rethink your career path
  • 21. 21 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Making the Leap: Becoming a New Manager (LO 5) • Performers often become managers • Becoming a manager transforms personal identity—how people think of themselves − Move from being a doer to a coordinator • Many new managers expect more freedom to make changes − However, successful managers build teams and networks • Many make the transformation in a “trial by fire”
  • 22. 22 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.7 Making the Leap from Individual Performer to Manager (LO 5)
  • 23. 23 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 2 • How do you feel about having management responsibilities in today’s world, which is characterized by uncertainty, ambiguity, and sudden changes or threats from the environment? Describe some skills and competencies that you think are important to managers working in these conditions.
  • 24. 24 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Discussion Activity 2 Debrief • How do you feel about having management responsibilities in today’s world, which is characterized by uncertainty, ambiguity, and sudden changes or threats from the environment? Describe some skills and competencies that you think are important to managers working in these conditions. − Even during high levels of uncertainty, ambiguity, and sudden changes, managers can access useful information about alternative courses of action and their likely outcomes for each decision they face. − No matter the circumstances, managers must apply skills and competencies to benefit the organization and its stakeholders. Ineffective communication skills and practices are the most common causes of failure. Organizational performance and reputation suffer if managers do not communicate effectively, including listening to employees and customers and showing genuine care and concern. − Quickly finding necessary information requires managers use both conceptual and technical skills, but a high level of human skills contributes to relationships necessary to sustain the manager in times of crisis. As managers attempt to sort out the uncertainties and threats they face, the decision-making role becomes even more critical.
  • 25. 25 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Types: Vertical (LO 6) • First-level or supervisory managers: Responsible for production of goods and services • Middle managers: Responsible for business units and major departments • Top managers: Responsible for the entire organization 25
  • 26. 26 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Types: Horizontal (LO 6) • General managers: Responsible for several departments that perform different functions • Functional managers: Responsible for departments that perform a single task • Project managers: Responsible for temporary work projects involving people from different functions and levels • Line managers: Responsible for departments that perform a core function of the organization • Staff managers: Responsible for departments that support the organization’s line departments with specialized advisory or support functions
  • 27. 27 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Manager Activities (LO 6) • Adventures in multitasking − Activity characterized by variety, fragmentation, and brevity − Less than nine minutes on most activities − Managers shift gears quickly • Life on speed dial − Work at unrelenting pace − Interrupted constantly − Ad hoc meetings 27
  • 28. 28 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Time Management (LO 6) • Time management: Using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life • Learning to manage time effectively is one of the greatest challenges new managers face
  • 29. 29 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Manager Roles (LO 6) • Role: Set of expectations for a manager’s behavior • Three categories of management roles − Informational − Interpersonal − Decisional • Management roles accomplish four functions − Planning − Organizing − Leading − Controlling
  • 30. 30 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.8 Ten Manager Roles (LO 6)
  • 31. 31 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 1 Which of the following set of manager roles would be considered decisional roles? a. Spokesperson, leader, and entrepreneur b. Negotiator, figurehead, and liaison c. Disseminator, monitor, and leader d. Disturbance handler, entrepreneur, and resource allocator
  • 32. 32 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 1: Answer Which of the following set of manager roles would be considered decisional roles? d. Disturbance handler, entrepreneur, and resource allocator
  • 33. 33 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1.9 Hierarchical Levels and Importance of Leader and Liaison Roles (LO 6)
  • 34. 34 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing in Nonprofit Organizations (LO 7) • Nonprofits need management talent • Apply the four functions of management to make social impact • Generating social impact rather than profits is what makes nonprofits different from other businesses • Try to keep costs low • Success—need to measure intangibles like “improve public health”
  • 35. 35 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 2 Managers at a nonprofit organization would be least likely to be responsible for which of the following management activities? a. Generating profit b. Generating social impact c. Measuring costs d. Measuring intangibles
  • 36. 36 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge Check 2: Answer Managers at a nonprofit organization would be least likely to be responsible for which of the following management activities? b. Generating social impact
  • 37. 37 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary (1 of 2) • Now that the lesson has ended, you should have learned how to: 1. Explain five management competencies and the trend toward bosslessness in today’s world. 2. Define the four management functions and the type of management activity associated with each. 3. Explain the difference between efficiency and effectiveness, as well as their importance for organizational performance. 4. Describe technical, human, and conceptual skills and their relevance for managers.
  • 38. 38 ©2022 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary (2 of 2) • Now that the lesson has ended, you should have learned how to: 5. Identify the personal challenges faced by new managers and ways of overcoming them. 6. Define the management types and roles that managers perform in organizations. 7. Explain the unique characteristics of the manager’s role in nonprofit organizations.

Editor's Notes

  1. Add slide notes here
  2. Instructor Note: Asking students to individually think through a warm-up reflection may be a more feasible approach for large online courses.
  3. Review objectives.
  4. Review objectives.
  5.  SOURCE: Based on “What Do Managers Do?”, The Wall Street Journal Online, http://guides.wsj.com/management/ developing-a-leadership-style/what-do-managers-do/ (accessed August 11, 2010), article adapted from Alan Murray, The Wall Street Journal Essential Guide to Management (New York: Harper Business, 2010). Set Objectives: Establish goals for the group and decide what must be done to achieve them Organize: Divide work into manageable activities and select people to accomplish tasks Motivate and Communicate: Create teamwork via decisions on pay, promotions, etc., and through communication Measure: Set targets and standards; appraise performance Develop People: Recognize the value of employees and develop this critical organizational asset
  6. An argument can be made for each of the answers, although (c) seems most practical. Organizational effectiveness means providing a product or service that customers value. Organizational efficiency is based on amount and cost of resources necessary for producing a given volume of output. Efficiency and effectiveness can both be high in the same organization. The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner.
  7. SOURCES: Melissa Harrell and Lauren Barbato, “Great Managers Still Matter: The Evolution of Google’s Project Oxygen,” Google Blog (February 27, 2018), https://rework.withgoogle.com/blog/the-evolution-of-project-oxygen/ (accessed January 8, 2019); and Adam Bryant, “Google’s Quest to Build a Better Boss,” The New York Times, March 12, 2011. Courtesy of Google, Inc.
  8. SOURCE: Adapted from Clinton O. Longenecker, Mitchell J. Neubert, and Laurence S. Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations,” Business Horizons 50 (2007): 145–155, Table 1.
  9. Although some people seem to be naturally more adept at people skills, just as some are naturally more adept at technical skills or conceptual skills, people skills can be learned, and there is no reason to rethink one’s career path unless there is an unwillingness to improve in this area. People skills can be learned by taking behavioral classes, by modeling one’s interactions after a supervisor or colleague who has excellent people skills, by participating in role playing exercises, and other activities that improve one’s interactional skills.
  10. SOURCE: Based on Exhibit 1.1, “Transformation of Identity,” in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2d ed. (Boston, MA: Harvard Business School Press, 2003), p. 6.
  11. SOURCE: Adapted from Henry Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973), pp. 92–93; and Henry Mintzberg, “Managerial Work: Analysis from Observation,” Management Science 18 (1971), B97–B110. Informational Roles Monitor: Seek and receive information; scan Web, periodicals, reports; maintain personal contacts Disseminator: Forward information to other organization members; send memos and reports, make phone calls Spokesperson: Transmit information to outsiders through speeches, reports Interpersonal Roles Figurehead: Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader: Direct and motivate subordinates; train, counsel, and communicate with subordinates Liaison: Maintain information links inside and outside the organization; use e-mail, phone, meetings Decisional Roles Entrepreneur: Initiate improvement projects; identify new ideas, delegate idea responsibility to others Disturbance Handler: Take corrective action during conflicts or crises; resolve disputes among subordinates Resource Allocator: Decide who gets resources; schedule, budget, set priorities Negotiator: Represent team or department’s interests; represent department during negotiation of budgets, union contracts, purchases
  12. (d) Is correct because all other answers contain one or more of the informational and interpersonal roles Decisional Roles Entrepreneur: Initiate improvement projects; identify new ideas, delegate idea responsibility to others Disturbance Handler: Take corrective action during conflicts or crises; resolve disputes among subordinates Resource Allocator: Decide who gets resources; schedule, budget, set priorities Negotiator: Represent team or department’s interests; represent department during negotiation of budgets, union contracts, purchases Interpersonal Roles Figurehead: Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader: Direct and motivate subordinates; train, counsel, and communicate with subordinates Liaison: Maintain information links inside and outside the organization; use e-mail, phone, meetings Informational Roles Monitor: Seek and receive information; scan Web, periodicals, reports; maintain personal contacts Disseminator: Forward information to other organization members; send memos and reports, make phone calls Spokesperson: Transmit information to outsiders through speeches, reports
  13. SOURCE: Based on information from A. I. Kraut, P. R. Pedigo, D. D. McKenna, and M. D. Dunnette, “The Role of the Manager: What’s Really Important in Different Management Jobs,” Academy of Management Executive 3 (1989), 286–293.
  14. Generating profit Incorrect. Managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct their efforts toward generating some kind of social impact. Generating social impact Correct. Managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct their efforts toward generating some kind of social impact. Measuring costs Incorrect. Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as possible. Measuring intangibles Incorrect. The metrics of success in nonprofits are typically much more ambiguous, and include intangibles such as “improve public health,” “upgrade the quality of education,” or “increase appreciation for the arts.”