CHAPTER 1
KINDS OF MANAGERS
Organization
Top Managers
 A group of people working together in a
structured and coordinated fashion to
achieve a set of goals
Management
1. A set of activities
- (including planning and decision
making, organizing, leading, and
controlling)
2. directed at an organization’s resources
- (human, financial, physical, and
information),
3. with the aim of achieving organizational
goals in an efficient and effective
manner
Manager
 make up the relatively small group of
executives who manage the overall
organization
 president, vice president, and chief
executive officer (CEO)
 create the organization’s goals, overall
strategy, and operating policies
 officially represent the organization to
the external environment by meeting
with government officials, executives of
other organizations, and so forth
Middle Management
 the largest group of managers in most
organizations
 Someone whose primary responsibility
is to carry out the management process
 plant manager, operations manager,
and division head
 are responsible for using the
organization’s resources to help achieve
its goals
 primarily responsible for:
 implementing the policies and
plans developed by top managers
Efficient
 Using resources wisely in a costeffective way
Effective
 Making the right decisions and
successfully implementing them

for supervising and coordinating
the activities of lower-level
managers
First-line managers
 supervise and coordinate the activities
of operating employees
 supervisor, coordinator, and office
manager
 often the first position held by
employees who enter management
from the ranks of operating personnel.
 typically spend a large proportion of
their time supervising the work of their
subordinates.
systems, and discharging lowperforming and problem employees
Administrative or General Managers
MANAGING IN DIFFERENT AREAS OF THE
ORGANIZATION
Marketing Managers
 work in areas related to the marketing
function
 getting consumers and clients to buy
the organization’s products or services
Financial Managers
 deal primarily with an organization’s
financial resources
 responsible for activities such as
accounting, cash management, and
investments
Operations Managers
 concerned with creating and managing
the systems that create an
organization’s products and services
 production control, inventory control,
quality control, plant layout, and site
selection
Human Resource Managers
 responsible for hiring and developing
employees
 involved in human resource planning,
recruiting and selecting employees,
training and development, designing
compensation and benefit systems,
formulating performance appraisal
 not associated with any particular
management specialty
 tend to be generalists
 they have some basic familiarity with all
functional areas of management rather
than specialized training in any one area
Specialized Management
 Public Relations Managers
 R&D managers
BASIC MANAGEMENT FUNCTION
1. Planning and Decision Making
 help managers maintain their
effectiveness by serving as guides for
their future activities.
Planning
 Setting an organization’s goals and
deciding how best to achieve them
Decision Making
 Part of the planning process that
involves selecting a course of action
from a set of alternatives
2. Organizing
 Determining how activities and
resources are to be grouped
3. Leading
 the most important and the most
challenging of all managerial activities
 The set of processes used to get
members of the organization to work
together to further the interests of the
organization
Communication Skills
 The manager’s abilities both to
effectively convey ideas and
information to others and to effectively
receive ideas and information from
others
4. Controlling
 Monitoring organizational progress
toward goal attainment
 help the manager listen to what others
say and understand the real meaning
behind e-mails, letters, reports, and
other written communication
FUNDAMENTAL MANAGEMENT SKILLS
Technical Skills
 the skills necessary to accomplish or
understand the specific kind of work
done in an organization
Decision making skills
 The manager’s ability to correctly
recognize and define problems and
opportunities and to then select an
appropriate course of action to solve
problems and capitalize on
opportunities
 are especially important for first-line
managers
Interpersonal Skills
 The ability to communicate with,
Time Management Skills
 The manager’s ability to prioritize work,
understand, and motivate both
individuals and groups
Conceptual Skills
 The manager’s ability to think in the
abstract
to work efficiently, and to delegate
appropriately
THE IMPORTANCE OF THEORY AND
HISTORY
Theory
 A conceptual framework for organizing
 the mental capacity to understand the
overall workings of the organization and
its environment
knowledge and providing a blueprint for
action
 Management theories, which are used
Diagnostic Skills
 The manager’s ability to visualize the
most appropriate response to a
situation
to build organizations and guide them
toward their goals, are grounded in
reality
THE HISTORICAL CONEXT OF
MANAGEMENT
Robert Owen
Steps in Scientific Management
1. Develop a science for each element of
the job to replace old rule-of-thumb
methods
 a British industrialist and reformer
2. Scientifically select employees and then
 was one of the first managers to
recognize the importance of an
organization’s human resources and to
express concern for the personal
welfare of his workers.
Charles Babbage
 English mathematician
 focused his attention on efficiencies of
production and application of
mathematics to management problems
train them to do the job as described in
step 1
3. Supervise employees to make sure they
follow the prescribed methods for
performing their jobs
4. Continue to plan the work, but use
workers to get the work done
Frank Gilbreth
 most interesting contributions was to
the craft of bricklaying.
CLASSICAL MANAGEMENT
PERSPECTIVE
1. Scientific Management
 Concerned with improving the
performance of individual workers
 Some of the earliest advocates of
scientific management included:



Frederick W. Taylor (1856–1915),
Frank Gilbreth (1868–1924),
Lillian Gilbreth (1878–1972)
 Taylor played the dominant role
Soldiering
 Employees deliberately working at a
slow pace
Lillian Gilbreth
 helped shape the field of industrial
psychology
 made substantive contributions to the
field of personnel management
2. Administrative Management
 Focuses on managing the total
organization
 the primary contributors to
administrative management were
 Henri Fayol (1841–1925),
 Lyndall Urwick (1891–1983),
 Max Weber (1864–1920).
Henri Fayol
 administrative management’s most
articulate spokesperson
 author of General and Industrial
Management
 he first to identify the specific
managerial functions of planning,
organizing, leading, and controlling
Max Weber
 Weber’s work on bureaucracy laid the
foundation for contemporary
organization theory
 The concept of bureaucracy
- is based on a rational set of
guidelines for structuring
organizations in the most efficient
manner
 Book: Psychology and Industrial
Efficiency
Mary Parker Follet
 Mother of modern management
 Management is the art of getting
things done
Hawthorne Studies
 primary catalyst to the development of
the behavioral approach
 conducted near Chicago at Western
Electric’s Hawthorne plant between
1927 and 1932
 conducted by Elton Mayo and his
associates
BEHAVIORAL MANAGEMENT
PERSPECTIVE
 Emphasizes individual attitudes and
behaviors and group processes
 The first study involved manipulating
illumination
 piecework incentive pay plan for a
group of nine men assembling terminal
banks for telephone exchanges
 recognized the importance of
behavioral processes in the workplace
 stimulated by many writers and
theoretical movements.
-
Industrial psychology
Industrial Psychology
 the practice of applying psychological
Human Relations Movement
 Argued that workers respond primarily
to the social context of the workplace
 grew from the Hawthorne studies and
was a popular approach to
management for many year
concepts to industrial settings
 A basic assumption of the human
 Hugo Munsterberg, father of
industrial psychology
relations movement was that the
manager’s concern for workers would
lead to increased satisfaction
 two writers who helped advance the
 takes a holistic view of behavior and
human relations movement were
addresses individual, group, and
organization processes


Abraham Maslow (1908–1970)
Douglas McGregor (1906–1964)
Theory X and Theory Y
 Created by Douglas McGregor
 best represents the essence of the
human relations movement
Theory X
 A pessimistic and negative view of
workers consistent with the views of
scientific management
Theory Y
 A positive view of workers; it represents
the assumptions that human relations
advocates make
 A more appropriate philosophy for
managers to adhere to
QUANTITATIVE MANAGEMENT
PERSPECTIVE
 focuses on decision making, costeffectiveness, mathematical models,
and the use of computer
 Applies quantitative techniques to
management
 The third major school of management
 This perspective has been particularly
useful in the areas of planning and
controlling
Management Science
 Focuses specifically on the development
of mathematical models
 focuses on models, equations, and
CONTEMPORARY BEHAVIORAL
SCIENCE IN MANAGEMENT
Mathematical models
Organizational Behavior
 a simplified representation of a system,
 Current behavioral perspectives on
similar representations of reality
process, or relationship
management
 acknowledge that human behavior in
organizations is much more complex
than the human relationists realized
 draws from a broad, interdisciplinary
base of psychology, sociology,
anthropology, economics, and
medicine.
Operations Management
 helping the organization more
efficiently produce its products or
services
CONTEMPORARY MANAGEMENT
PERSPECTIVES
Synergy
 Two or more subsystems working
together to produce more than the
total of what they might produce
working alone
1. Systems Perspective
System
 interrelated set of elements functioning
as a whole
 It has four basic elements:
 Inputs
o Resources that an
organization gets from its
environment

Transformation process
o The ones being used to
transform inputs into
outputs

Outputs
o Products or services or both

feedback
Open System
Entropy
 a normal process that leads to system
decline
 A primary objective of management,
from a systems perspective, is to
continually reenergize the organization
to avoid entropy
CONTINGENCY PERSPECTIVE

Suggests that appropriate managerial
behavior in a given situation depends
on, or is contingent on, unique
elements in a given situation

effective managerial behavior in one
situation cannot always be generalized
to other situations
 are systems that interact with their
environment
Closed Systems
 are systems that do not interact with
their environment
CONTEMPORARY MANAGEMENT
CHALLENGES
1. Globalization
- property ownership arrangements
vary widely as well as the
availability of natural resources
Subsystems
 A system within another system
 Because they are interdependent, a
change in one subsystem can affect
other subsystems as well
-
behavioral processes vary widely
across cultural and national
boundaries
2. Ethics and Social Responsibility and
their relationship to corporate
governance
3. Quality
- more and more organizations are
using quality as a basis for
competition
-
improving quality tends to increase
productivity because making
higher-quality products generally
results in less waste and rework
-
enhancing quality lowers costs
4. Shift to service economy
- this is documented more fully in the
“At Your Service” feature.
5. Rapidly changing workplace
6. Diversity
-
-
Differences among people
most managers tend to focus on
age, gender, ethnicity, and physical
abilities and disabilities