Chapter 1
Management: An Overview
OVERVIEW
Learning Objectives
1.
Explain why organizations need managers
2.
Describe the needs that affect a manager's universe
3.
Identify and explain the levels of management
4.
List and describe the management functions
5.
Describe how management functions apply to each level of management
6.
Identify and explain management roles
7.
List and describe 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
Pre-Test
Answer the following questions prior to reading the text or the Chapter Concept Summary. In
the answer column, write the letter of the answer that best completes the statement or answers the
question.
____1. For most organizations, top management consists of:
a.
any manager above the level of foreman.
b.
the chief executive officer, the president, and his or her vice presidents.
c.
the chief executive officer only.
d.
the chief executive officer and the president only.
____2. The five management functions are:
a.
planning, organizing, staffing, leading, and controlling.
b.
organizing, selling, accounting, leading, and controlling.
c.
planning, accounting, controlling, leading, and organizing.
d.
planning, organizing, selling, leading, and controlling.
____3. The Production Department manager can best be described as a:
a.
general manager.
b.
first-line manager.
c.
functional manager.
d.
top manager.
1
2
Chapter 1 Management: An Overview
____4. Which management level spends the least amount of time performing the planning
function?
a.
Top management
b.
Middle management
c.
First-line management
d.
Functional management
____5. The three categories of management roles are:
a.
figurehead, leader, and liaison.
b.
monitor, disseminator, and spokesperson.
c.
interpersonal, decisional, and entrepreneur.
d.
interpersonal, informational, and decisional.
____6. The three skills that all managers need are:
a.
planning, organizing, and controlling.
b.
conceptual, technical, and human.
c.
effectiveness, efficiency, and planning.
d.
interpersonal, decisional, and informational.
____7. Which of the following is a reality of a manager's job?
a.
A manager's job is less a science than an art.
b.
Managers are self-starting, self-directing, and autonomous.
c.
Managers have no regular duties to perform.
d.
Managers are reflective and systematic planners.
CHAPTER CONCEPT SUMMARY
Management and Managers
Managers are people who allocate and monitor the use of organizational resources in the form of
information, materials, money, and people. Managers collectively constitute an organization's
management team that sets and achieves goals via the management functions of planning,
staffing, leading, and controlling. Managers have two main jobs: running a business, and
building an organization.
The Organizational Need for Managers
Organizations are created by managers to meet stated goals. Managers make sure that everyone
shares and delivers upon a common set of values. Organizations exist everywhere as a means for
individuals, groups, and societies to meet their needs. Managers transform organizations into
viable entities through leadership.
The Manager's Universe
Managers must become the driving force behind change. The manager's universe includes
pleasing customers by meeting or exceeding customers' needs and expectations, providing
leadership, acting ethically, valuing diversity in his/her employees, and coping with global
challenges.
Chapter 1 Management: An Overview
3
Levels of Management
Managers can be described by the functional areas in which they perform and the level at
which they perform. Although all managers perform the same basic functions, the extent to
which they perform these universal activities varies by level in the management hierarchy. Top
management, consisting of the chief executive officer and the vice presidents, is responsible for
the overall management of the organization and directs its relations with the external
environment. These managers need conceptual skills the most. Middle management,
consisting of all managers below vice presidents but above supervisors, implements top
management objectives and policies. These managers need a blend of all three skill sets.
First-line management, the home of supervisors, team leaders, and team facilitators, supervises
and directs the actual work of the organization at the operating level. These managers need
technical skills the most.
Functional managers can also be identified by the areas or functions of the organization
for which they are responsible, such as marketing, finance, operations, and human resources.
Management Functions
All managers perform the same basic functions:
 Planning is the process of identifying goals and ways of achieving them in order to prepare
the organization for the future.
 Organizing is the process of creating structure, establishing relationships, and allocating
resources to accomplish goals.
 Staffing is the process of recruiting, training, and retaining qualified workers.
 Leading is the process of guiding and stimulating individuals and groups to achieve
organizational goals within a supportive environment.
 Controlling is the process of checking results against plans and taking corrective action as
needed to reduce deviations from previously set guidelines.
Management Roles
To meet the many demands placed on managers as they carry out these functions, managers take
on numerous roles, or sets of behavioral expectations, as they interact with workers and the
external environment. In handling interpersonal relationships, managers adopt the three
interpersonal roles of figurehead, leader, and liaison. In handling information, managers
assume the three informational roles of monitor, disseminator, and spokesperson. In
handling decisions, managers take on the four decisional roles of entrepreneur, disturbance
handler, resource allocator, and negotiator.
Management Skills
To perform management functions and assume multiple roles, managers must master three kinds
of skills:
 Technical skills: Managers must be able to use the processes, practices, techniques, and tools
of a specialty area.
 Conceptual skills: Managers must possess the capacity to develop ideas, understand abstract
relationships, and solve problems.
 Human skills: Managers must display the ability to interact and communicate with people to
gain cooperation.
4
Chapter 1 Management: An Overview
As one progresses up the ladder of an organization, technical skills become less important and
conceptual skills more important. Human skills are crucial at all levels of management.
Management Myths and Realties
Myth #1—The manager is a reflective, methodical planner.
Reality: The average manager is swamped by trivialities and crises and spends only nine minutes
or so on any one activity.
Myth #2—The effective manager has no regular duties to perform.
Reality: Managers attend meetings, meet visitors, and absorb and process information on a
continual basis.
Myth #3—The manager's job is a science.
Reality: Managers rely heavily on interaction and judgment.
Myth #4—Managers are self-starters, self-directed, and autonomous.
Reality: Good managers are self-managing; they accept autonomy, while seeking impact from
supervision.
Myth #5—Good managers seek out the information they require.
Reality: Managers do not always have access to information they need.
Myth #6—Competition among managers is good for business.
Reality: Collaboration and cooperation creates a better business.
Evaluating a Manager's Performance
Managers are evaluated, among other criteria, by:
 How well they play their managerial roles.
 Possessing and properly applying required management skills.
 Effective leadership.
 Ethical actions.
 Effective use of diversity in the workforce.
 How well they please customers.
 Building a partnership with subordinates and peers.
 The clarity of their expectations.
Post-Test
Answer the following questions after reading the text or the Chapter Concept Summary. In the
answer column, write the letter of the answer that best completes the statement or answers the
question.
____1. For most organizations, top management consists of:
a.
the chief executive officer, the president, and his or her vice presidents.
b.
any manager above the level of Department Head.
c.
the chief executive officer only.
d.
the chief executive and the president only.
Chapter 1 Management: An Overview
____2. The five management functions are:
a.
planning, organizing, selling, leading, and staffing.
b.
organizing, selling, accounting, finance, and operations.
c.
planning, organizing, staffing, leading, and controlling.
d.
planning, selling, controlling, accounting, and leading.
____3. A manager of the Human Resource Department can best be described as a:
a.
general manager.
b.
functional manager.
c.
first-line manager.
d.
operations manager.
____4. Which management level spends the least amount of time performing the planning
function?
a.
Middle managers
b.
Top managers
c.
Functional managers
d.
First-line managers
____5. The three categories of management roles are:
a.
interpersonal, informational, and decisional.
b.
figurehead, leader, and liaison.
c.
monitor, disseminator, and spokesperson.
d.
negotiator, disturbance handler, and resource allocator.
____6. The three skills that all managers need are:
a.
effectiveness, efficiency, and decision making.
b.
planning, organizing, and controlling.
c.
conceptual, technical, and human.
d.
interpersonal, informational, and decisional.
____7. Which of the following is a reality of a manager's job?
a.
Managers are reflective and systematic planners.
b.
A manager's job is less a science than an art.
c.
Managers have no regular duties to perform.
d.
Managers are self-starting, self-directing, and autonomous.
5
6
Chapter 1 Management: An Overview
SELF-STUDY QUESTIONS
Matching
Match the following key terms with the definition or statement that best describes it. Write your
answer in the answer column.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
conceptual skills
customer
diversity
ethics
first-line management
functional manager
goal
human skills
technical skills
planning
leading
leadership
m.
n.
o.
p.
q.
r.
s.
t.
u.
v.
w.
x.
management
management hierarchy
manager
middle management
organization
quality
role
top management
organizing
controlling
staffing
objective
____1. Our company wants to increase sales by 10% this year.
____2. Managers below the rank of vice president, but above the supervisory level.
____3. An entity managed by one or more persons to achieve stated goals.
____4. Any person or group, both inside and outside an organization, that uses or consumes the
outputs of the organization or its members.
____5. The level of management that is responsible for overseeing the entire organization and
establishes long-term, company-wide goals.
____6. I have always felt that the most important part of my job is to get people to follow
voluntarily.
____7. Someone who allocates and oversees the use of organizational resources.
____8. The skills most important at the first-line level of management, and least important at the
top.
____9. At our company we have several managers who individually and collectively set and
achieve goals.
___10. Our company is very concerned with what constitutes right and wrong conduct, including
values and actions, in a given situation.
___11. The ability to interact and communicate with other people successfully.
___12. Most organizations employ people from differing ages, genders, ethnic and racial
backgrounds, cultural and national origins, and mental and physical capabilities.
___13. In larger organizations, managers are found at different levels—top, middle, and first-line
management.
___14. Joyce is a manager who oversees the work of non-management people.
___15. Managers whose expertise lies primarily in one of the specialty areas of the organization.
Chapter 1 Management: An Overview
7
___16. The first function of management.
___17. Most managers are involved in human resource activities such as the acquiring and
placing of people.
___18. Managers determine the tasks that must be accomplished, group these tasks to form
positions, and decide on the relationships the positions will have to one another.
___19. The function of management through which managers help their organizations and their
employees achieve their goals.
___20. The function of management involved with the process of identifying, preventing, and
correcting deviations from established standards or guidelines, of both people and
processes.
___21. A set of expectations for a manager’s behavior.
___22. The mental capacity to conceive and manipulate ideas that allows a manager to view an
organization as a whole.
___23. A specific type of goal that is characterized by a relatively short time span and specific
measurable achievements.
___24. 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.
___25. Oliver is directly responsible for the work of 15 non-management people.
___26. Meeting and exceeding both internal and external customers’ needs and expectations.
___27. Our company emphasizes the importance of treating all customers—both internal and
and external—fairly, because it is right to do so.
___28. Sheila is the president of her company. She is responsible for overseeing the entire
organization.
___29. As the district manager for my company, I am responsible for translating top
management’s long-term goals into shorter-term objectives, and overseeing the work
of managers below me.
___30. Our performance appraisal system establishes standards and guidelines of behavior for
our employees. Our job is then to measure the performance and to correct any deviations
from those standards.
8
Chapter 1 Management: An Overview
Multiple Choice
In the answer column, write the letter of the answer that best completes the statement or answers
the question.
____1. All of the following are important elements in determining what management is and why
organizations need managers except: LO-1
a.
managers set and achieve goals through people and other resources.
b.
a manager's sole consideration in organizations is maximizing profit.
c.
establishing and sticking to organizational values increases the probability of
success.
d.
managers are needed to create organizations.
____2. Which of the following is a true statement? LO-1
a.
Only large organizations need managers.
b.
Organizations need managers to resist all forms of change.
c.
Organizations need managers to oversee and change their operations.
d.
Organizational values are not an important concern for managers.
____3. Which of the following is not one of the needs that affect a manager’s universe? LO-2
a.
The need to please customers by meeting or exceeding their expectations
b.
The need to provide capital for the organization
c.
The need to provide leadership
d.
The need to value diversity in their employees
____4. According to the text, a customer would be all of the following except: LO-2
a.
a person outside the organization who uses the output of the organization.
b.
any person inside the organization who receives what is needed from others
in the organization.
c.
an outside supplier receiving quality specifications from the organization.
d.
all of the above are customers of the organization.
____5. Which of the following is not one of the diversity challenges for managers? LO-2
a.
Integrate the diversity that exists in their communities and in their external
environment into their work force
b.
Learn about and understand their employees’ differences
c.
Communicate with all employees in exactly the same manner
d.
Find ways for themselves, their organizations, and their employees to utilize
employee differences
____6. Which of the following factors would not significantly impact managers? LO-2
a.
Technological advances
b.
Economic changes
c.
Natural disasters
d.
All of the above significantly impact managers and their environment
Chapter 1 Management: An Overview
9
____7. Which of the following is not one of the levels of management? LO-3
a.
Top management
b.
Functional management
c.
Middle management
d.
First-line management
____8. The level of management that is responsible for overseeing the entire organization and
establishes long-term, company-wide goals is: LO-3
a.
top management.
b.
middle management.
c.
operational management.
d.
general management.
____9. Which of the following is not a true statement concerning middle management? LO-3
a.
They are becoming less specialized.
b.
They are being trained to become team leaders.
c.
They translate top-management’s goals into shorter-term objectives.
d.
The number of middle managers in the work force is rapidly increasing.
___10. The level of management that is most concerned with the day-to-day execution of
ongoing operations is: LO-3
a.
top management.
b.
middle management.
c.
first-line management.
d.
functional management.
___11. A human resources manager is a: LO-3
a.
top manager.
b.
functional manager.
c.
operational manager.
d.
general manager.
___12. The function of management that lays the groundwork for all other functions, and is often
called the first function of management, is: LO-4
a.
organizing.
b.
staffing.
c.
leading.
d.
planning.
___13. The function of management that involves defining the tasks required to meet goals,
grouping these into positions, and creating the management hierarchy is: LO-4
a.
planning.
b.
controlling.
c.
organizing.
d.
staffing.
10
Chapter 1 Management: An Overview
___14. Which function of management involves the acquiring and placing of people, and is
sometimes considered to be the final stage of organizing? LO-4
a.
Staffing
b.
Leading
c.
Controlling
d.
Planning
___15. The function of management that can be considered to be a mechanism for
ensuring that things go according to plan is: LO-4
a.
staffing.
b.
controlling.
c.
organizing.
d.
leading.
___16. Which of the following is a true statement concerning top management and the functions
they perform? LO-5
a.
Top managers plan for the entire organization and the acquisition of needed
resources.
b.
Top managers only perform the function of planning.
c.
Top managers spend equal amounts of time performing each of the functions.
d.
Top managers focus their efforts on facilitating the work of individual managers.
___17. The level of management that spends the most time on the managerial function of leading
is: LO-5
a.
top management.
b.
middle management.
c.
first-line management.
d.
functional management.
___18. Middle managers develop objectives to implement top-management goals, so the
managerial function that receives the most emphasis is: LO-5
a.
planning.
b.
organizing.
c.
staffing.
d.
leading.
___19. Roles that a manager performs as the result of the position that he or she holds in
management are known as: LO-6
a.
decisional roles.
b.
interpersonal roles.
c.
informational roles.
d.
none of the above.
Chapter 1 Management: An Overview
___20. Managers are often called upon to perform various decisional roles. Which of the
following is not a decisional role? LO-6
a.
Leader
b.
Negotiator
c.
Entrepreneur
d.
Resource allocator
___21. When a manager is passing on to subordinates some information that would not
normally be accessible to them, her or she is performing which decisional role? LO-6
a.
Monitor
b.
Spokesperson
c.
Disseminator
d.
Liaison
___22. All managers need three basic skills. Which of the following is not one of those skills?
LO-7
a.
Conceptual
b.
Mechanical
c.
Technical
d.
Human
___23. For which level of management are technical skills the most essential? LO-7
a.
Top management
b.
Middle management
c.
Functional management
d.
First-line management
___24. Which of the following statements accurately reflects the need for human skills? LO-7
a.
First-line managers need human skills much more than do the other levels.
b.
Top management needs human skills less than do the other levels.
c.
Human skills are required to the same degree by all levels of management.
d.
Human skills are not among the skills needed by management.
___25. Which of the following is an important reality of a manager's job? LO-8
a.
Managers are systematic and reflective planners.
b.
Managers need input, attention, and guidance from superiors.
c.
Managers will always seek out needed information.
d.
A manager's job is a science.
___26. Which of the following is not a myth concerning a manager's job? LO-8
a.
The typical manager is very busy and has little time for reflective planning.
b.
The manager has no regular duties to perform.
c.
Competition among managers is good for the manager and the organization.
d.
The manager is self-starting, self-directing, and autonomous.
11
12
Chapter 1 Management: An Overview
___27. Which of the following is a true statement? LO-8
a.
Managers work systematically and analytically to determine programs and
procedures.
b.
The manager’s job is more science than art.
c.
Managers rely heavily on intuition and judgement.
d.
Managers always have sufficient access to needed information.
___28. A manager's performance is evaluated by using all of the following criteria except: LO-9
a.
how effective the manager is in setting and achieving goals.
b.
the ethics of the manager's actions.
c.
how effectively the manager plays the various managerial roles.
d.
how well the manager "plays the game."
___29. What percentage of managers and executives who take new positions fail within 18
months? LO-9
a.
10
b.
90
c.
75
d.
40
___30. All of the following are primary reasons for managerial failure except: LO-9
a.
being uncertain about their bosses expectations of them.
b.
taking too long to learn the job.
c.
being unable to make tough decisions.
d.
all of the above are reasons for managerial failure.
True/False
In the answer column, write "T" for true or "F" for false.
____1. Managers are needed to create organizations and oversee the organization's operation and
growth. LO-1
____2. Most managers agree that the most important factor in change management is sound
organizational structure. LO-1
____3. Management's universe is simple and slow-changing. LO-2
____4. Management should focus on pleasing both internal and external customers. LO-2
____5. Organizations, and management, need only focus on making a profit. LO-2
____6. Middle management consists of all managers below the rank of vice president but above
the supervisor level. LO-3
____7. The trend today is for top and middle management to become more specialized. LO-3
____8. A marketing manager would be considered to be a functional manager. LO-3
____9. Planning is a continuous process and requires updates as circumstances change. LO-4
Chapter 1 Management: An Overview
13
___10. Organizing involves the attempts to prevent, identify, and correct deviations from
previously established guidelines. LO-4
___11. Only middle and top managers are involved in the staffing function. LO-5
___12. All managers, regardless of level, execute all five management functions. LO-5
___13. All managers play all ten management roles at the same time. LO-6
___14. The ten management roles are grouped into two categories: interpersonal and decisional.
LO-6
___15. All managers need three basic skills: technical, human, and conceptual. LO-7
___16. Human skills are most essential at the first-line supervisory level. LO-7
___17. As one progresses upward in the management ranks, technical skills become less
important, and conceptual skills become more important. LO-7
___18. The manager's job is more of a science than an art. LO-8
___19. Managers are reflective and methodical planners. LO-8
___20. The only criteria for evaluating a manager's performance is how efficiently they achieve
their goals. LO-9
Short Essay Question
Describe, discuss, and explain the relationship between managerial levels, the functions of
management, managerial roles, and managerial skills.
CONCEPT APPLICATION
Skill Builder Exercise
Regarding your own university, college, or workplace:
1.
Identify a manager at each level of management (top manager, middle manager, front-line
manager) and then discuss the skills displayed by that manager. Include one functional
manager.
2.
Think about the people in your class. If your class were a work unit, what diversity
considerations would a manager need to understand in order to build an effective work
team? (Consider gender, race, nationality, language, learning style, communication style,
physical disability, and age.)
3.
Explain the different management roles—interpersonal, informational, and decisional—
that your instructor, or supervisor, displays and how others' expectations affect these
roles.
14
4.
Chapter 1 Management: An Overview
Refer to question 1. How do the managers at each level use the functions of
management—namely, planning, organizing, staffing, leading, and controlling?
Journal Entries (Reflective Thinking)
Pick a concept as prescribed in the chapter and record your thoughts and actions regarding this
concept as it applies to (1) your job setting and (2) your personal management activities.
Concept:
Job Setting Application:

Incident defining the concept

Concept in action

Reflections on the concept as applied
Personal Management Application:

Incident defining the concept

Concept in action

Reflections on the concept as applied
Meet the Internet
Using the Internet, research a company and briefly denote the globalization issues it faces.
Chapter 1 Management: An Overview
15
Chapter 1
Answer Key
Pre-Test
1.
b
2.
a
3.
c
4.
c
5.
d
6.
b
7.
a
Post-Test
1.
a
2.
c
3.
b
4.
d
5.
a
6.
c
7.
b
Self-Study Questions
Matching
1.
2.
3.
4.
5.
6.
7.
8.
(p. 05)
(p. 13)
(p. 05)
(p. 06)
(p. 13)
(p. 08)
(p. 05)
(p. 24)
9.
10.
11.
12.
13.
14.
15.
16.
m (p. 05)
d (p. 09)
h (p. 25)
c (p. 10)
n (p. 12)
e (p. 14)
f (p. 14)
j (p. 17)
17.
18.
19.
20.
21.
22.
23.
24.
w (p. 18)
u (p. 18)
k (p. 18)
v (p. 18)
s (p. 20)
a (p. 25)
x (p. 05)
g (p. 05)
25.
26.
27.
28.
29.
30.
e
r
d
t
p
v
(p. 14)
(p. 06)
(p. 09)
(p. 13)
(p. 13)
(p. 18)
Multiple Choice
1.
b (p. 05)
2.
c (p. 05)
3.
b (p. 06)
4.
d (p. 06)
5.
c (p. 10)
6.
d (p. 12)
7.
a (p. 13)
8.
a (p. 13)
9.
10.
11.
12.
13.
14.
15.
16.
d
c
b
d
c
a
b
a
17.
18.
19.
20.
21.
22.
23.
24.
c (p. 19)
d (p. 19)
b (p. 20)
a (p. 21)
c (p. 22)
b (p. 24)
d (p. 27)
c (p. 27)
25.
26.
27.
28.
29.
30.
b
a
c
d
d
d
(p. 27-28)
(p. 27-28)
(p. 27)
(p. 28)
(p. 28)
(p. 28)
True/False
1.
2.
3.
4.
5.
6.
7.
x
p
q
b
t
l
o
i
T
F
F
T
F
T
F
(p. 05)
(p. 05)
(p. 06)
(p. 06)
(p. 07)
(p. 13)
(p. 14)
(p. 13)
(p. 14)
(p. 16)
(p. 17)
(p. 18)
(p. 18)
(p. 18)
(p. 19)
8.
9.
10.
11.
12.
13.
14.
T
T
F
F
T
F
F
(p. 15)
(p. 17)
(p. 17)
(p. 18)
(p. 19)
(p. 20)
(p. 21)
15.
16.
17.
18.
19.
20.
T
F
T
F
F
F
(p. 24)
(p. 27)
(p. 27)
(p. 27)
(p. 27)
(p. 28)
16
Chapter 1 Management: An Overview
Short Essay (Guideline)
In most organizations the three basic managerial levels are top, middle, and first-line. Top
management consists of the chief executive officer and the vice presidents. Middle management
consists of all managers below the rank of vice president, but above first-line.
First-line management directly manages the workers. All levels of management must
execute all five management functions (planning, organizing, leading, staffing, and controlling)
but spend different amounts of time on each function. Top management spends the most time on
planning, for instance, while first-line managers spend the most time on leading. All managers
also require conceptual, human, and technical skills, but again in different mixes, according to
their level. For instance, top managers require conceptual skills the most, while first-line
managers require technical skills the most. All managers equally require human skills.
Managerial roles are activities that managers may be required to carry out, depending upon their
job description and the expectations of their superiors. The three basic categories of roles are
interpersonal, informational, and decisional. Not all managers will be required to perform all of
the roles.