Chapter Two
Management
And
Managers
Thomson South-Western
Wagner & Hollenbeck 5e
1
Chapter Overview
 This chapter examines the following topics:
– Defining Management
• Three Attributes of Organizations
• Formal Definition
– What Managers Do
•
•
•
•
Managerial Jobs
Managerial Skills
Managerial Roles
The Nature of Managerial Work
– A Framework of Management Perspectives
•
•
•
•
•
1890-1940: The Scientific Management Perspective
1900-1950: The Administrative Principles Perspective
1930-1970: The Human Relations Perspective
1960-Present: The Open Systems Perspective
A Contingency Framework
2
Introduction
 All businesses depend on the
expertise of managers
 It is important that members
of modern societies know
what management is, what
mangers do, and how
contemporary practices have
developed
3
Defining Management
 Management,
 An organization is a
defined most simply,
collection of people and
is the process of
materials brought
influencing behavior together to accomplish
in organizations
purposes not
such that common
achievable through the
purposes are
efforts of individuals
identified, worked
alone
toward, and
 Three attributes enable
achieved
an organization to
achieve this feat
4
Three Attributes of Organizations
 Mission:
– Each organization works toward a specific mission,
which is its purpose or reason for being
– An organization’s mission helps hold it together by
giving members a shared sense of direction
 Division of Labor:
– In every organization, difficult work is broken into
smaller tasks; this division of labor can enhance
efficiency by simplifying tasks and making them easier
to perform
– The division of labor enables organized groups of
people to accomplish tasks that would be beyond their
physical or mental capacities as individuals
 Hierarchy of Authority:
– The hierarchy of authority is another common
organizational attribute
5
Formal Definition
 In fact, a “balancing act” is what managers do and
what management is all about
 Management is a process of planning, organizing,
directing, and controlling organizational behaviors to
accomplish a mission through the division of labor
 This definition incorporates several important ideas:
– Management is a process-an ongoing flow of activities-
rather than something that can be accomplished once
and for all
– Managerial activities affect the behaviors of an
organization’s members and the organization itself
– To accomplish a firm’s mission requires organization
– The process of management can be divided into the four
functions of planning, organizing, directing, and
controlling
6
Planning
 Planning is a forward-looking process of deciding
what to do
 In planning, managers set three types of goals and
objectives that are linked together:
– Strategic goals
– Functional or divisional objectives
– Operational objectives
 Goals and objectives are performance targets that the
members of an organization seek to fulfill by working
together
 Setting goals and objectives helps managers plan and
implement a sequence of actions that will lead to their
attainment
 Goals and objectives also serve as benchmarks of the
success or failure of organizational behavior
7
Organizing
 As part of the organizing function managers
develop a structure of interrelated tasks and
allocate people and resources within this
structure
 Grouping tasks and the people who perform
them into organizational units is another step
in the organizing process
 Types of organizational units include:
– Departments: includes people who
perform the same type of work
– Divisions: includes people who do the
company’s work in the same geographic
territory, who work with similar kinds of
clients, or who make or provide the same
type of goods and services
8
Directing and Controlling
 The directing function

encourages member effort and
guide it toward the attainment
of organizational goals and
objectives
 Directing:
Controlling means
evaluating the
performance of the
organization and its units
to see whether the firm is
progressing in the desired
direction
– Is partly a process of
communicating goals and
 If the evaluation reveals a
objectives to members
significant difference
– Is learning employees’ desires
between goals and actual
and interests and ensuring
performance, the control
they are satisfied in return for
process enters a phase of
successful goal-oriented
correction in which
performance
managers return to the
– May require use of personal
planning stage and the
expertise and charisma to
process of management
inspire employees to
continues anew
overcome obstacles
9
What Managers Do
 Managers are the people who plan, organize,
direct, and control so as to manage
organizations and organizational units
 Managers:
– Establish the directions to be pursued
– Allocate people and resources among
tasks
– Supervise individual, group, and
organizational performance
– Assess progress toward goals and
objectives
 To succeed in these functions, managers
perform specific jobs, use a variety of skills,
and fill particular roles
10
Managerial Jobs
 Although all managers are responsible for fulfilling
the same four functions, not all of them perform
exactly the same jobs
 Most organizations have three types of managers:
– Top managers: responsible for managing the entire
organization; their job consists mainly of performing
the planning activities needed to develop the
organization’s mission and strategic goals
– Middle managers: usually responsible for managing
the performance of a particular organizational unit and
for implementing top managers’ strategic plans
– Supervisory managers: are charged with overseeing the
nonsupervisory employees who perform the
organization’s basic work; they spend the greatest
amount of time actually directing employees of all three
of the managerial types
11
Managerial Skills
 The skills managers use to succeed in their jobs are largely
determined by the combination of planning,organizing,
directing, and controlling functions they must perform
 Conceptual skills: include the ability to perceive an
organization or unit as a whole, to understand how its labor is
divided into tasks and reintegrated by the pursuit of common
goals and objectives, to recognize important relationships
between the organization or unit and its environment, involve
the manager’s ability to think, and are most closely associated
with planning and organizing
 Human skills: include the ability to work effectively as a
group member and build cooperation among the members of
an organization or unit; all managers put these skills to use
 Technical skills: involve understanding the specific
knowledge, procedures, and tools required to make the goods
or services provided by an organization or unit; more critical
to supervisory managers overseeing employees
12
Managerial Roles
 Managerial roles vary from one kind of manager to another
 Interpersonal roles: managers create and maintain interpersonal
relationships to ensure the well-being of their organizations or units
– Figurehead role
– Leader role
– Liaison role
 Informational roles: managers have unique access to internal and
external information networks
– Monitor role
– Disseminator role
– Spokesperson role
 Decisional roles: managers determine the direction to be taken by
their organizations or units
– Entrepreneur role
– Disturbance handler role
– Allocator role
– Negotiator role
13
Differences Among Managers
 The roles of liaison,
spokesperson, and resource
allocator are the most
important in the jobs of top
managers
 For middle managers, leader,
liaison, disturbance handler,
and resource allocator roles are
the most important
 For supervisory managers, the
leader role is the most
important
14
The Nature of Managerial Work
 To further analyze the classification of
managerial roles, Henry Mintzberg
observed a group of top managers at
work for several weeks
 Based on his observations, Mintzberg
concluded that manager’s roles often
require them to work in short bursts
rather than in long, uninterrupted
sessions
15
A Framework of Management
Perspectives
 The definition of management and
manager introduced in this chapter are
products of the North American culture
and differ from the definitions used in
other regions of the world
 Modern management practices did not
begin to develop until the Industrial
Revolution of the 1700s and 1800s
16
A Framework of Management
Perspectives: 1890-1940
 Among the first principles to be widely read
were those of the scientific management
perspective which reflected the idea that
through proper management an organization
could achieve profitability and survive over
the long term in the competitive world of
business
–
–
–
–
Frederick W. Taylor (1856-1915)
Frank and Lillian Gilbreth (1868-1924)
Henry Gantt (1861-1919)
Harrington Emerson (1853-1931)
17
A Framework of Management
Perspectives: 1900-1950
 The administrative principles
perspective emphasized increasing the
efficiency of administrative procedures
– Henri Fayol (1841-1925)
– Max Weber (1864-1920)
– James Mooney (1884-1957)
– Lyndall Urwick (1891-1983)
– Mary Parker Follett (1868-1933)
18
A Framework of Management
Perspectives: 1930-1970
 The human relations perspective
directed attention toward increasing
employees growth, development, and
satisfaction
– Douglas McGregor (1906-1964)
– Abraham Maslow
– Frederick Herzberg
19
A Framework of Management
Perspectives: 1960-Present
 The open systems perspective indicates that
organizations whose subsystems can cope with
the surrounding environment can continue to
do business while those organizations whose
subsystems cannot cope will not survive
– Daniel Katz and Robert L. Kahn
– Fred Emery and Eric Trist
– Paul Lawrence, Robert Duncan, and Jay Galbraith
20
A Contingency Framework
 The contingency
approach advocates that
no single management
perspective tells the
whole story about
management and
managers and that no
single theory, procedure,
or set of rules is
applicable to every
situation
21