Chapter 1:

Management and
Organizations
Learning Objectives

After studying this chapter, you should be able to:

Define the term management
Explain the major challenges with which managers
must deal
Describe how historical research on management
has contributed to the current practice of
management
Identify and discuss the primary managerial
functions

2
Learning Objectives

Explain the three general roles involved in

managerial work and the specific roles within
each
Explore and describe the three dimensions of
managerial jobs
Discuss the primary skills required to be an
effective manager

3
What is Management?

Management is a process that

involves:
Assembling and using sets
of resources
Acting in a goal-directed
manner to accomplish tasks
Activities carried out in an
organizational setting

4
Managerial Challenges

Managing
Change

Managing Managerial Managing

Entrepreneurially Challenges Resources

Managing
Strategically

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Managerial Challenges: Managing Change

Managing change:
Is the most persistent,
pervasive and powerful
challenge for managers
Requires managers to gain
employee acceptance
Two causes of change:
Technology
Globalization

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Managerial Challenges: Managing
Resources

Managers must manage

resources, including:
Financial capital
Human resources
Physical resources
Technology

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Managerial Challenges: Managing
Strategically

Managers must:
Develop strategies to
achieve the
organization’s goals
Implement the strategies
effectively by managing
human resources

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Managerial Challenges: Managing
Entrepreneurially

Managing
entrepreneurially
involves:
Searching for new
opportunities
Identifying new ideas
for new markets
Emphasizing actions to
take advantage of
uncertainty

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Historical Approaches to Management

Ancient China and art of

warfare
Ancient Egypt and
building of pyramids
Roman Empire and
building of roads and
viaducts
Industrial Revolution
and modern
management

10
What Managers Do

Managerial activities differ

by:
The functions managers
serve
The roles in which
managers operate
The dimensions of each
manager’s job

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Managerial Functions

Planning
Controlling

Organizing
Managing

Directing
Adapted from Exhibit 1.1
12
Planning

Planning involves:
Estimating future conditions
and circumstances
Making decisions based on
these estimations about
what work is to be done:
- By the manager
- By all of those for whom
she or he is responsible

13
Organizing

Organizing involves paying

attention to:
The structure of
relationships among
positions
The people occupying
those positions
Linking that structure to
the overall strategic
direction of the
organization

14
Directing

Directing is the process of

influencing other people to
attain organizational
objectives:
Motivating others
Interacting effectively in
group and team situations
Communicating in support
of others’ efforts

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Controlling

Regulating the work of those for

whom a manager is responsible,
including:
Setting standards of performance
in advance
Monitoring ongoing (real‑time)
performance
Assessing a completed
performance
Results of the control process
(evaluation) are fed back to the
planning process

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Managerial Roles

Interpersonal
Roles Figurehead Leader Liaison

Figurehead: attending ceremonial activities

Leader: influencing or directing others
Liaison: contacting others outside the formal chain
of command

Adapted from Exhibit 1.2

17
Managerial Roles

Informational
Roles Monitor Disseminator Spokesperson

Monitor: seeking information to be aware of crucial

developments
Disseminator: receiving and sending information
Spokesperson: representing the views of the unit for
which he/she is responsible

Adapted from Exhibit 1.2

18
Managerial Roles

Decisional Disturbance- Resource-

Roles Entrepreneur Negotiator
handler allocator

Entrepreneur: exploring new opportunities

Disturbance-handler: acting as a judge or problem solver
in conflicts among employees
Resource-allocator: deciding how resources will be
distributed
Negotiator: making accommodations with other units

Adapted from Exhibit 1.2

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Managerial Job Dimensions

Activities or duties that

Demands must be carried out
Standards or levels of
minimum performance
that must be met

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Managerial Job Dimensions

Factors that limit the

Demands response of the manager:
Time
Budgets
Constraints Technology
Attitudes of subordinates
Legal regulations

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Managerial Job Dimensions

Discretionary behavior
Demands How work is to be done
How much work is to be
done
Constraints Who will do the work
What initiatives will be
undertaken from almost
Choices infinite possibilities

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Two Managerial Jobs

Job A: Job B:
Project Team Manager Fast Foods Restaurant
Manager
Demands Develop new product with Maintain attractive appearance
strong market appeal of restaurant
Hold formal weekly progress Keep employee costs as low as
meeting with boss possible
Frequent travel to other Meet standards for speed of
company sites service

Adapted from Exhibit 1.3

23
Two Managerial Jobs

Job A: Job B:
Project Team Manager Fast Foods Restaurant
Manager
Constraints 12 month deadline for product Most employees have limited
development formal education
Project budget limit of $1 Few monetary incentives to
million reward outstanding
No choice in selecting team performance
members Federal and state health and
safety regulations

Adapted from Exhibit 1.3

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Two Managerial Jobs
Job A:
Project Team Manager
Choices The organizational structure of
the project team
Sequencing of project tasks
Budget allocation
Job B:
Fast Foods Restaurant
Manager
Selection of employee to
promote to supervisor
Scheduling of shifts and
assignments
Local advertising promotions
Adapted from Exhibit 1.3
25
What Skills Do Managers Need?

TECHNICAL SKILLS

Specialized knowledge
(Including when and how to use the skills)

INTERPERSONAL SKILLS

Sensitivity, persuasiveness, empathy

CONCEPTUAL SKILLS

Logical reasoning, judgment,

analytical abilities

Adapted from Exhibit 1.4

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Importance of Managerial Skills at
Different Organizational Levels

High Interpersonal skills

Importance

Technical skills

Conceptual skills

Low
Entry-Level Mid-Level Top-Level
Managers Managers Managers

Adapted from Exhibit 1.5

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Who Succeeds? Who Doesn’t?
Potential leaders share Those who don’t quite
traits early on: make it:
Bright, with outstanding Have been successful,
track records but generally only in
one area or type of job.
Have survived stressful Often described as moody
situations or volatile. May be able to
keep their temper with
superiors during crises
but are hostile toward
peers and subordinates.
Those who succeed:
Have diverse track
records, demonstrated
ability in many different
situations, and a breadth
of knowledge of the
business or industry.
Maintain composure in
stressful situations, are
predictable during
crises, are regarded as
calm and confident.
Adapted from Exhibit 1.6
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Who Succeeds? Who Doesn’t?

Potential leaders share Those who don’t quite Those who succeed:
traits early on: make it:

Have a few flaws Cover up problems while Make a few mistakes, but
trying to fix them. If the when they do, they admit
problem can’t be hidden, to them and handle them
they tend to go on the with poise and grace.
defensive and even
blame someone else for
it.

Ambitious and oriented Micromanage a position, Keep their minds

toward problem solving may staff with the focused on the next
incorrect people or position, develop
neglect the talents they competent successors,
have, depend on a single seek advice from many
mentor. sources.

Adapted from Exhibit 1.6

29
Who Succeeds? Who Doesn’t?

Potential leaders share Those who don’t quite Those who succeed:
traits early on: make it:

Good people skills May be viewed as Can get along well with
charming but political or different types of people,
direct but tactless, cold, are outspoken without
and arrogant. People being offensive, are
don’t like to work with viewed as direct and
them diplomatic.

Adapted from Exhibit 1.6

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