MANAGEMENT 11E
PLUNKETT & ALLEN
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CHAPTER 1 : MANAGEMENT:
AN OVERVIEW
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Learning Outcomes
After reading and studying this chapter, you should
be able to:
1.
Explain why organizations need managers
2.
Outline factors that affect a manager’s
universe
3.
Identify three levels of management
4.
Describe five management functions
5.
Apply management functions to each
level of management
6.
Summarize ten management roles
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Learning Outcomes (cont’d)
After reading and studying this chapter, you should
be able to:
7. Analyze three management skills
8. Contrast the myths with the realities of
a manager’s job
9. Discuss the criteria used to evaluate a
manager’s performance
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Management and Managers
 Managers
People who allocate and oversee
the use of resources
 Management
One or more managers individually
and collectively setting and achieving
goals by exercising related functions
and coordinating various resources
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Management and Managers (cont’d)
 Goal
 An outcome to be achieved or a destination to be
reached over a period of time through the exercise of
management functions and the expenditure of
resources
 Objective
 A short term goal that is achieved in less than a year
 Specific
 Measurable
 Attainable
 Results-oriented
 Time-limited
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Organizational Need for Managers
Organization
An entity managed by one or more persons to achieve
stated goals
Basic Tasks of Management (Drucker)
Running a business
Building an organization
Coordinating activities while accepting the values and goals of
the organization
Values constitute beliefs and basic tenets that are important and
meaningful to those individuals and organizations that hold them.
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The Manager’s Universe
 Constant change in business requires that
managers and organizations meet needs
for:
 Pleasing customers
 Improving products and services continuously
 Providing leadership
 Acting ethically
 Valuing diversity in their employees
 Learning to cope with global challenges
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The Need to Please Customers
 Quality
 The features and characteristics of a product or
service that allow it to satisfy requirements of those
who use or consume them
 Customer
 Any person or group, both inside and outside an
organization, who uses or consumes outputs from an
organization or its members
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The Need to Please Customers
(cont’d)
 Website
 Company’s lifeline to its customers.
 Web 2.0
Refers to blogs, wikis, and social networking
 Customer Relationship Management
 Long-term management approach to customer
relationships which attempts to strengthen ties
between the customer and the organization
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What Is Web 2.0?
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The Need to Provide Leadership
 Leadership
 The ability to get people to follow voluntarily
 Leaders
 Develop and articulate the organization’s goals
 Initiate and facilitate change by exhibiting sets of
values, skills, abilities, and traits that are needed
by and are an inspiration to others.
 Create and maintain supportive environments in
which employees can figure out what needs to
be done
 Must be present at every level in the organization
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The Need to Act Ethically
 Ethics
 The branch of philosophy concerned with what
constitutes right and wrong human conduct,
including values and actions, in a given set of
circumstances
 Personal Ethics
 Experiences create a moral code of values and
attitudes—conscience
 Managers cannot be leaders without a strong set of
moral and ethical values and a commitment to
avoid compromising them.
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The Need to Value Diversity
Differing Age
Groups
Mental and
Physical
Capabilities
Cultural and
National Origins
Sources of
Diversity
Genders
Ethnic and Racial
Backgrounds
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The Need to Value Diversity (cont’d)
Challenges for Managers
1. Integrating the diversity that exists in their
communities and external customers into their
work forces
2. Learning about and understanding their
employees’ differences
3. Finding ways to utilize and celebrate these
differences
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The Need to Cope with Global Challenges
Technological
Advances
Social and Political
Changes
Crises and
Terrorism
Global
Challenges
Economic
Changes
Natural
Disasters
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Levels of Management
Top
Management
The chief executive officer (CEO) and/or
president and his, her, or their immediate
subordinates, usually called vice presidents
Middle
Management
Includes managers below the rank of vice
president but above the supervisory level
First-Line
Management
Supervisors, team leaders, and team facilitators
who oversee the work of nonmanagement
people (e.g., operative employees)
Functional
Managers
Managers whose expertise lies primarily in one
or another of the specialty areas—marketing,
operations, finance, and human resources
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Figure 1.1
Levels of the management hierarchy
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Figure 1.2 Typical titles in
the three levels of
management
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Management Functions
Planning
Controlling
Organizing
Management
Leading
Staffing
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Management Functions
 Planning
 Foundation for the other functions
 Identify goals and ways to achieve them
 Assign priorities to each goal
 Determine the resources required
 Determine actions that commit:
 individuals
 departments
 entire organization
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Planning Considerations
External and Internal
Influences on
Planning
Duration and Scope
of Planning
Planning
Flexibility in Planning
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Management Functions (cont’d)
 Organizing
 Creates a structure in meeting goals by:
 Determining the tasks to be accomplished
 Grouping these tasks by employee position
 Deciding on the relationships the positions
have to one another
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Management Functions (cont’d)
Staffing
Execute HR management activities:
Determine skills and experiences of each position
Determine number of persons needed
Train employees for positions
Leading
Help organization and employees achieve goals
Serve as role models for expected behaviors
Coach, counsel, inspire, and encourage
Communicate and listen
Respond to concerns and resolve disputes
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Management Functions (cont’d)
 Controlling
 Mechanism to ensure things go according
to plan
 Prevent, identify, and correct deviations from
guidelines
 Identify and correct the causes of deviations
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Figure 1.3 Relative emphasis on each management function at different management levels
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Figure 1.4
Mintzberg’s ten management roles
Figurehead
Leader
Liaison
INTERPERSONAL
Performs symbolic duties
Motivates subordinates
Maintains network of contacts
Monitor
Disseminator
Spokesperson
INFORMATIONAL
Seeks and receives variety of special information
Transmits information received to others
Transmits to outsiders information about organization
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
DECISIONAL
Searches organization and environment for opportunities
Initiates corrective action
Fulfills responsibility for allocation of organizational resources
Represents the organization in major negotiations
Source: Chart from The Nature of Managerial Work, by Henry Mintzberg.
Copyright © 1973 by Henry Mintzberg. Reprinted by permission of the author.
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Figure 1.5 Conflicting
role demands on a
manager
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Management Skills
Technical
Skills
Human
Skills
Conceptual
Skills
The abilities to use the processes, practices,
techniques, and tools of the specialty area a
manager supervises
The abilities to interact and communicate
successfully with other persons
The mental capacity to conceive and
manipulate ideas and abstract relationships
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Figure 1.6
Proportions of management skills needed by management level
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Management Myths and Realities
Myth #1. Managers are reflective, methodical planners with time to
systematically plan and work through a day.
Myth #2. Effective managers have no regular duties to perform. They
establish others’ responsibilities in advance and then relax to
watch others do the work.
Myth #3. The manager’s job is a science; managers work systematically
and analytically to determine programs and procedures.
Myth #4. “Managers are self-starting, self-directing, and autonomous, or
they would not be managers.”
Myth #5. “Good managers seek out the information they need.”
Myth #6. “Competition among managers is good for . . . business.”
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Evaluating a Manager’s Performance
Managers are evaluated by:
How effectively they play the three sets of management
roles
Whether they possess and properly apply management skills
How effective they are in setting objectives and achieving
goals
How efficiently they use their talents and resources
How well they demonstrate leadership
Whether they act ethically
How effectively they make use of the diversity of their people
How effectively they and their people please customers
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Why Managers Fail
Uncertainty about
the boss’s
expectations
Lack of political
savvy
Inability to build
relationships
Reasons for
Failure
Inability to make
tough decisions
Taking too long to
learn the job
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Key Terms
conceptual skills
customer
customer relationship management
(CRM)
diversity
ethics
first-line management
functional managers
goal
human skills
Leadership
management
management
hierarchy
manager
middle
management
organization
quality
role
technical skills
technology
top management
Web 2.0