Chapter 1 Notes
Modern Management is about creating value through people,
adapting to rapid technological change, and upholding ethical and
social responsibility.
1.​ The Changing Workplace:
●​ Career readiness in the new economy:
-​ The new economy is global, digital, and knowledge-driven.
-​ Workers need career readiness - a blend of knowledge,
transferable skills and personal attributes that are valuable
to employers.
-​ Success depends on continuous learning, adaptability and
problem solving ability.
The key point is that your employability comes less from your job title and
more from your skills portfolio.
●​ Talent and Intellectual Capital
-​ Talent = People with skills and capabilities to achieve high
performance.
-​ Intellectual Capital = The combined brainpower and shared
knowledge between an organization's workforce.
-​ Formula: Intellectual Capital = Commitment X
Competence.
●​ Knowledge Workers
-​ Are individuals whose minds are their main assets; they
use information to solve problems and create value rather
than perform manual labour
●​ Technology and Work
Modern organizations operate in the fourth industrial revolution,
which is characterized by automation, cloud computing, artificial
intelligence (AI), mobile internet, and BIG DATA
-​ Tech IQ = A person's ability to use current technologies in their
work and personal life.
-​ This would include telecommuting, remote work, and virtual
teams.
●​ Globalization
The worldwide interdependence of resource flows, product
markets, and business competition that make up our economy.
-​ Job migration - occurs when firms shift jobs from one country to
another.
-​ Reshoring - shifting jobs and manufacturing back home from
overseas.
●​ Diversity and Inclusion
-​ Workforce diversity: differences among workers in gender,
race, religion, identity, sexual orientation, age, and
ethnicity.
-​ Prejudice: display of negative, irrational opinions and
attitudes.
-​ Discrimination: Acting on previously mentioned prejudices
by unfairly treating members of particular groups.
-​ Glass-ceiling effect: an invisible barrier that prevents
qualified individuals from advancing to top positions.
●​ Careers and Connections
-​ Free-Agent Economy: People frequently change jobs and
work on flexible contracts.
-​ Self management: the ability to assess one’s own
performance realistically, recognizing strengths,
weaknesses, and taking initiative for personal
development.
2.​ Organizations and Value Creation:
Organization:
A collection of people working together to achieve a common
purpose. Organizations provide goods and services of value to
customers and society.
Open Systems:
Organizations that interact with their environments.​
They take inputs (people, money, materials, technology,
information), transform them into outputs (products or services),
and obtain feedback for continuous improvement.
Value Creation and Performance:
●​ Value Creation: Occurs when an organization’s operations add value to
resource inputs.
●​ Performance Effectiveness: Achievement of desired goals or outputs.
●​ Performance Efficiency: Accomplishing goals while making the best use
of resources.
●​ Productivity: The overall measure of both effectiveness and efficiency
(outputs + inputs).
3.​ Managers and What They Do
Definition of a Manager:
A person who directly supports, supervises, and helps activate the work
efforts of others to achieve performance goals.
Levels of Management:
1.​ Top Managers: Guide the performance of the organization as a
whole (ex: CEO, or President).
2.​ Middle Managers: Oversee large departments or divisions and
translate strategy into action.
3.​ First-Line Managers / Team Leaders: Supervise non-managerial
workers in daily activities.
Types of Managers:
Type
Description
Line Managers
Directly contribute to producing
goods/services.
Staff Managers
Use technical expertise to support line
workers (ex: HR, Finance).
Functional Managers
Responsible for a single business
function
General Managers
Oversee several different functions.
Administrators
Managers in public or nonprofit
organizations.
Accountability
An obligation to report performance results to supervisors. ​
Effective managers achieve high performance and maintain employee
satisfaction.
Quality of Work Life (QWL)
Overall quality of human experience in the workplace.​
Indicators: respect, fair play, safety, opportunities for learning, career
growth, and work-life balance overall.
Upside-Down Pyramid
A modern structure placing customers at the top, supported by front-line
employees, with managers at the base providing support. ​
Represents servant leadership: managers exist to help others succeed.
4. The Management Process
Definition
Management: the process of planning, organizing, leading, and
controlling the use of resources to accomplish performance goals.
Function
Definition
Example
Planning
Setting objectives and
deciding how to
accomplish them.
Creating a quarterly
sales plan.
Organizing
Assigning tasks,
allocating resources,
and coordinating
activities.
Designing department
structures.
Leading
Inspiring and motivating
others to achieve goals.
Coaching a team
toward higher sales.
Controlling
Measuring performance
and taking corrective
action.
Comparing actual
results with plans and
adjusting
5. Mintzberg’s Managerial Roles.
Interpersonal Roles:
-​ Figurehead: performs ceremonial duties
-​ Leader: motivates and encourages subordinates.
-​ Liaison: builds networks of relationships.
Informational Roles:
-​ Monitor: scans for information.
-​ Disseminator: shares information internally.
-​ Spokesperson: communicates externally.
Decisional Roles:
-​
-​
-​
-​
Entrepreneur: initiates change and innovation.
Disturbance handler: deals with crises and conflicts.
Resource allocator: distributes resources.
Negotiator: engages in bargaining and agreements.
6. Essential Managerial Skills (KATZ):
Skill
definition
notes
Technical Skills
The ability to perform
specialised tasks using
specific knowledge or
expertise
Important at lower
levels.
Human Skills
(interpersonal)
The ability to work well
with others and build
cooperative
relationships.
Essential at all levels.
Conceptual Skills
The ability to think
analytically, see the big
picture, and solve
complex problems.
Crucial at higher levels.
Self-Management Skills
Assessing one’s own
performance and taking
responsibility for
continuous
improvement.
NEEDED for career
success.
7. Quick Summary/takeaways:
-​ Management = planning _ organizing _ leading _controlling
(POLC)
-​ Managers create value through people, technology, and ethical
leadership.
-​ Effective managers balance efficiency and effectiveness.
-​ Career success in the modern economy requires lifelong learning,
adaptability, and self-management.
-​ Diversity, ethics, and global awareness are key to managerial
excellence.
8. Key Terms and definitions
Term
Definition
Career Readiness
The combination of knowledge, skills, and
attitudes needed to thrive in today’s workplace.
Talent
Individuals with the right skills and abilities to
perform work.
Intellectual Capital
The collective brainpower and shared
knowledge of an organization’s employees.
Knowledge Worker
Person whose primary contribution is ideas and
information.
Tech IQ
A person’s ability to use current technologies
effectively.
Globalization
The worldwide interdependence of resource
flows, markets, and competition.
Job Migration
The shifting of jobs from one country to another.
Reshoring
The return of jobs from overseas back to the
home country.
Ethics
Code of moral principles governing right and
wrong conduct.
Corporate
Governance
Oversight by a board of directors holding top
management accountable.
Workforce Diversity
Differences among employees regarding
gender, age, race, religion, and other factors.
Prejudice
Negative, irrational opinions or attitudes toward
certain people or groups.
Discrimination
Acting on prejudice through unfair treatment.
Glass Ceiling Effect
Invisible barrier limiting career advancement for
women or minorities.
Free-Agent
Economy
Work environment where individuals move
frequently between jobs.
Self-Management
Taking personal responsibility for career
development and learning.
Organization
A collection of people working together to
achieve a common purpose.
Open System
Organization that interacts with its external
environment to obtain inputs and produce
outputs.
Value Creation
When operations add value to resource inputs.
Performance
Effectiveness
Achieving desired outcomes or goals.
Performance
Efficiency
Using resources wisely to achieve goals.
Productivity
The ratio of output to input.
Manager
Person who supports and supervises others to
achieve goals.
Top Manager
Sets organizational strategy and long-term
goals.
Middle Manager
Translates strategy into operational plans.
First-Line Manager
Directly supervises non-managerial employees.
Line Manager
Directly affects production of goods or services.
Staff Manager
Provides specialized advice or support.
Functional Manager
Responsible for one area or department.
General Manager
Oversees multiple departments.
Administrator
Manager in the public or nonprofit sector.
Accountability
Obligation to report performance results.
Quality of Work Life
(QWL)
Overall quality of employees’ workplace
experience.
Upside-Down
Pyramid
Structure that places customers first and
managers as support.
Planning
Setting objectives and determining how to
achieve them.
Organizing
Assigning tasks and allocating resources.
Leading
Inspiring and motivating others.
Controlling
Monitoring and correcting performance.
Mintzberg’s Roles
Interpersonal, informational, and decisional
activities of managers.
Networking
Building and maintaining positive working
relationships.
Social Capital
Capacity to attract support from others through
relationships.
Technical Skills
Ability to perform specific job tasks.
Human Skills
Ability to work well with others.
Conceptual Skills
Ability to see the organization as a whole and
solve complex problems.
Self-Management
Skills
Self-awareness and adaptability for continuous
improvement.