Because learning changes everything. ®
Chapter 1
Managers and
Managing
© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Learning Objectives
1
1. Describe what management is, why management is
important, what managers do, and how managers use
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. Differentiate among three levels of management, and
understand the tasks and responsibilities of managers at
different levels in the organizational hierarchy.
© McGraw Hill
2
Learning Objectives
2
4. Distinguish among three kinds of managerial skill, and
explain why managers are divided into different
departments to perform their tasks more efficiently and
effectively.
5. Discuss some major changes in management practices
today that have occurred as a result of globalization and
the use of advanced technologies.
6. Discuss the principal challenges managers face in today’s
increasingly competitive global environment.
© McGraw Hill
3
What Is Management?
1
Organizations
• Organizations are collections of people who work
together and coordinate their actions to achieve a
wide variety of goals or desired future outcomes.
• All managers work in organizations.
Managers
• Managers are the people responsible for supervising
the use of an organization’s resources to meet its
goals.
© McGraw Hill
4
What Is Management?
2
Management
• Management includes the planning, organizing,
leading, and controlling of human and other resources
to achieve organizational goals effectively and
efficiently.
• What difference can a manager make? Zander Lurie,
SurveyMonkey CEO.
© McGraw Hill
5
What Is Management?
3
Resources.
• Include assets such as:
1. People and their skills, know-how, and experience.
2. Machinery.
3. Raw materials.
4. Computers and information technology.
5. Patents, financial capital, and loyal customers and employees.
© McGraw Hill
6
Achieving High Performance: A Manager’s
Goal
1
Organizational performance:
• A measure of how efficiently and effectively managers
use available resources to satisfy customers and
achieve organizational goals.
• At SurveyMonkey, Zander Lurie’s goal is to continue
with cutting-edge technology (AI), to promote
innovation, and to grow the global market.
© McGraw Hill
7
Achieving High Performance: A Manager’s
Goal
2
Efficiency:
A measure of how well or how productively resources
are used to achieve a goal.
• Wendy’s fat fryers use less oil and are quicker.
Effectiveness:
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which the
organization achieves those goals.
• McDonald’s all-day breakfast success.
© McGraw Hill
8
Figure 1.1 Efficiency, Effectiveness, and
Performance in an Organization
High-performing organizations are efficient and effective.
Access the text alternative for slide images.
© McGraw Hill
9
Why Study Management?
1
1. Individuals generally learn through personal
experience or the experiences of others.
By studying management in school, you are
exposing yourself to the lessons others have
learned.
© McGraw Hill
10
Why Study Management?
2
2. The economic benefits of becoming a good
manager are also impressive. In the United
States, general managers earn a median
wage of $100,930 with a projected growth rate
in job openings of 7% to 10% between now
and 2028.
3. Learning management principles can help you
make good decisions in nonwork contexts.
© McGraw Hill
11
Figure 1.2 Four Tasks of Management
Access the text alternative for slide images.
© McGraw Hill
12
Steps in the Planning Process
1. Decide which goals the organization will
pursue.
2. Decide what strategies to adopt to attain those
goals.
3. Decide how to allocate organizational
resources.
Managers identify and select appropriate
organizational goals and develop strategies
for how to achieve high performance.
© McGraw Hill
13
Organizing
1
Organizing:
• Structuring working relationships so organizational
members interact and cooperate to achieve
organizational goals.
Managers deciding how best to organize
resources, particularly human resources.
© McGraw Hill
14
Organizing
2
Organizational structure
• A formal system of task and reporting relationships
that coordinates and motivates organizational
members so that they work together to achieve
organizational goals.
• CEO Laurie of SurveyMonkey organizes in
coordination with employee opinions.
© McGraw Hill
15
Leading
• Articulating a clear vision and energizing and enabling
organizational members so they understand the part
they play in achieving organizational goals.
• Involves managers using their power, personality,
influence, persuasion, and communication skills to
coordinate people and groups.
© McGraw Hill
16
Controlling
1
Controlling:
• Evaluating how well
an organization is
achieving its goals
and taking action to
maintain or improve
performance.
© McGraw Hill
Managers monitor
performance of
individuals,
departments, and the
organization as a whole
to determine if they are
meeting performance
standards.
17
Controlling
2
The outcome of the control process is the
ability to measure performance accurately and
regulate organizational efficiency and
effectiveness.
Managers must decide which goals to measure.
© McGraw Hill
18
Example: Match Group
Mandy Ginsberg is the CEO of Match Group (Match,
OKCupid, Hinge, Tinder).
Her understanding of advanced technology and employment
of data scientists has improved the dating sites.
She is open to international expansion.
She employs locals who bring their cultural knowledge to the
table.
The profits of Match Group reflect Ginsberg’s success.
© McGraw Hill
19
Managerial Roles Identified: Decisional
Type of Role
Specific Role
Examples of Role Activities
Decisional
Entrepreneur
Commit organizational resources to develop innovative goods
and services; decide to expand internationally to obtain new
customers for the organization’s products.
Decisional
Disturbance handler
Move quickly to take corrective action to deal with unexpected
problems facing the organization from the external
environment, such as a crisis like an oil spill, or from the
internal environment, such as producing faulty goods or
services.
Decisional
Resource allocator
Allocate organizational resources among different tasks and
departments of the organization; set budgets and salaries of
middle and first-level managers.
Decisional
Negotiator
Work with suppliers, distributors, and labor unions to reach
agreements about the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.
Table 1.1 Managerial Roles Identified by Mintzberg
© McGraw Hill
20
Managerial Roles Identified: Interpersonal
Type of Role
Specific Role
Examples of Role Activities
Interpersonal
Figurehead
Outline future organizational goals to employees at company
meetings; open a new corporate headquarters building; state
the organization’s ethical guidelines and the principles of
behavior employees are to follow in their dealings with
customers and suppliers.
Interpersonal
Leader
Provide an example for employees to follow; give direct
commands and orders to subordinate; make decisions
concerning the use of human and technical resources;
mobilize employee support for specific organizational goals.
Interpersonal
Liaison
Coordinate the work of managers in different departments;
establish alliances between different organizations to share
resources to produce new goods and services; reach
agreements about the quality and price of input, technical, and
human resources; work with other organizations to establish
agreements to pool resources to work on joint projects.
Table 1.1 Managerial Roles Identified by Mintzberg
© McGraw Hill
21
Managerial Roles Identified: Informational
Type of Role
Specific Role
Examples of Role Activities
Informational
Monitor
Evaluate the performance of managers in different tasks and
take corrective action to improve their performance; watch for
changes occurring in the external and internal environments
that may affect the organization in the future.
Informational
Disseminator
Inform employees about changes taking place in the external
and internal environments that will affect them and the
organization; communicate to employees the organization’s
vision and purpose.
Informational
Spokesperson
Launch a national advertising campaign to promote new goods
and services; give a speech to inform the local community
about the organization’s future intentions.
Table 1.1 Managerial Roles Identified by Mintzberg
© McGraw Hill
22
Levels and Skills of Managers
1
Department:
• A group of managers and employees who work
together and possess similar skills or use the same
knowledge, tools, or techniques.
• Example: the manufacturing, accounting, engineering,
or marketing department.
© McGraw Hill
23
Figure 1.3 Levels of Managers
© McGraw Hill
24
Levels of Management
1
First-line managers (often called supervisors):
Responsible for the daily supervision of the
nonmanagerial employees.
• Paint foreman overseeing a crew of painters at a university.
Middle managers:
Supervises first-line managers.
Responsible for finding the best way to use resources to
achieve organizational goals.
• High school principal or a marketing manager.
© McGraw Hill
25
Levels of Management
2
Top managers:
Responsible for the performance of all departments.
Establish organizational goals.
Decide how different departments should interact.
Monitor how well middle managers in each department
use resources to achieve goals.
• President of a university.
© McGraw Hill
26
Levels and Skills of Managers
2
Figure 1.4 Relative
Amount of Time
Managers Spend
on the Four
Managerial Tasks.
Access the text alternative for slide images.
© McGraw Hill
27
Types of 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 knowledge and techniques required to
perform an organizational role.
© McGraw Hill
28
Figure 1.5: Types and Levels of Managers
Access the text alternative for slide images.
© McGraw Hill
29
Core Competency
Specific set of departmental skills, knowledge and
experience that allows one organization to outperform
another.
Skills for a competitive advantage:
• Dell’s materials management produced PCs at lower cost than
competitors.
© McGraw Hill
30
Recent Changes in Management Practices
Restructuring:
• Downsizing an organization by eliminating the jobs of
large numbers of top, middle, and first-line managers
and nonmanagerial employees.
Outsourcing:
• Contracting with another company, usually abroad, to
perform a work activity the company previously
performed itself.
© McGraw Hill
31
Empowerment and Self-Managed
Teams
Empowerment:
• Empowerment involves giving employees more authority
and responsibility over how they perform their work
activities.
• Example: Valve Corporation has no managers, no
hierarchy or top-down control. Employees pick their own
projects.
Self-managed teams:
• Groups of employees who assume collective responsibility
for organizing, supervising, and controlling their own work
activities.
© McGraw Hill
32
Challenges for Management in a Global
Environment
Build a competitive advantage.
Maintain ethical and socially responsible standards.
Manage a diverse workforce.
Utilize new technologies.
Practice global crisis management.
© McGraw Hill
33
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
competitors.
Innovation:
• The process of creating new or improved goods and
services or developing better ways to produce or
provide them.
© McGraw Hill
34
Building Blocks of Competitive Advantage
Competitive Advantage
Efficiency
Innovation and Flexibility
Responsiveness to customers
Quality
© McGraw Hill
35
Turnaround Management
Creation of a new vision for a struggling company using
a new approach to planning and organizing to make
better use of a company’s resources and allow it to
survive and eventually prosper.
• CEO Niccol has turned Chipotle around after food scares
in 2015 and 2017.
© McGraw Hill
36
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.
• Nudges as ethical behavior tools.
© McGraw Hill
37
Managing a Diverse Workforce
To create a highly trained and motivated
workforce, managers must establish human
resource management (HRM) procedures that
are legal and fair and do not discriminate against
organizational members.
• Accenture earned top spot (out of 100
companies) for second year on Refinitiv’s
Diversity and Inclusion Index.
© McGraw Hill
38
Utilizing New Technologies
Efficient and effective technologies that link and
enable managers and employees to better
perform their jobs, regardless of role.
UPS uses ORION.
• A GPS system that optimizes drivers’ routes.
© McGraw Hill
39
Practicing Global Crisis Management
1
1. Create teams to facilitate rapid decision- making
and communication.
2. Establish the organizational chain of command
and reporting relationships necessary to mobilize
a fast response.
3. Recruit and select the right people to lead and
work in such teams.
4. Develop bargaining and negotiating strategies to
manage the conflicts that arise.
© McGraw Hill
40
Practicing Global Crisis Management
2
Natural causes:
Human causes:
Crises that arise
because of natural
causes, including
hurricanes,
earthquakes, famines,
and diseases.
Human-created crises
result from factors such as
industrial pollution, poor
attention to worker and
workplace safety, global
warming, and the
destruction of the natural
habitat or environment, and
geopolitical tensions and
terrorism.
© McGraw Hill
41
Because learning changes everything.
www.mheducation.com
© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.
®