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Chapter

Management and Its Evolution

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 Learning Objectives
After reading this chapter, you should be able to:

 Understand the roles played by individuals, teams,

and managers in carrying out company activities.
 Practice the four major functions of management
 Recognize the interpersonal, informational, and
decisional roles played by top level managers.
 Apply the general skills needed to carry out
managerial responsibilities.
 Integrate the major elements from the various
perspectives of management theory.

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 The performance of organizations depends to
a large extent on how their resources are
allocated and their ability to adapt to changing
conditions.
Successful organizations know how to
manage people and resources efficiently to
accomplish organizational goals and to keep
those goals in tune with changes in the
external environment.

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 Management in the New Millennium

A firm can be efficient by making the

best use of people, money, physical
plant, and technology.

 Itis ineffective if its goals do not provide

a sustained competitive advantage.

A firm with excellent goals would fail if

it hired the wrong people, lost key
contributors, relied on outdated
technology, and made poor investment
decisions.
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 Levels of management
Strategic Managers

Tactical Managers

Operational Managers

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 Strategic Managers
 The firm’s senior executives with
overall responsibility for the firm.
 Developing the company’s goals
 Focus on long-term issues
 Emphasize the growth and overall
effectiveness of the organization

 Concerned primarily with the

interaction between the
organization and its external
environment.
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 Tactical Managers
Responsible for translating the
general goals and plans
developed by strategic
managers into specific
objectives and activities.
Shortertime horizon
Coordination of resources

These are middle managers

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 Operational Managers
 Lower-level managers who supervise the
operations of the organization.

 Directly involved with non-management

employees
 Implementing the specific plans
developed with tactical managers.
 This is a critical role to the organization.
 Operational managers are the link
between management and non-
management staff

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 Management Functions

Planning Organizing

Leading Controlling

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 Planning
 The management function that
assesses the management
environment to set future objectives
and map out activities necessary to
achieve those objectives.

 To be effective, the objectives of

individuals, teams, and
management should be coordinated
to support the firm’s mission.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 Organizing
 The management function that
determines how the firm’s human,
financial, physical, informational,
and technical resources are
arranged and coordinated to
perform tasks to achieve desired
goals.

 The deployment of resources to

achieve strategic goals.

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 Leading
 The management function that
energizes people to contribute their
best individually and in cooperation
with other people.

 This involves:
 Clearly communicating organizational goals
 Inspiring and motivating employees
 Providing an example for others to follow
 Guiding others
 Creating conditions that encourage management
of diversity

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 Controlling
 The management function that
measures performance, compares it
to objectives, implements necessary
changes, and monitors progress.

 Many of these issues involve

feedback or identifying potential
problems and taking corrective
action.

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 Management as a set of roles
 Day-to-day management activities are routine,
orderly, and rational.

 These include:
Interpersonal roles - communication with superiors,
peers, subordinates, and people from outside the
organization.
Information Roles - obtaining, interpreting, and giving
out information.
Decisional Roles - choosing among competing
alternatives.
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 Management as a set of skills
 The four basic management functions require a set
of skills to be carried out properly.

 Because most managerial tasks are unique,

ambiguous, and situation-specific, there is seldom
one best way to approach them.

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 Management as a set of skills

 Four major categories of skills will help you become a good

manager:
 Strategic Skills - the ability to see “the big picture”, focus on
key objectives without getting mired in details, and having a sense
what is happening inside and outside the company.
 Task-Related Skills - the ability to define the best approach to
accomplish personal and organizational objectives. They include
consideration of all resources, including time, organizational
structure, financial resources, and people. They also involve the
ability to prioritize, remain flexible to make necessary changes,
and ensure that value is being created

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 Management as a set of skills

 People-Related Skills - getting work done through others and

with others. Include the ability to delegate tasks, share
information, resolve conflicts, be a team player, and work with
people from very different backgrounds
 Self-Awareness Skills - Being aware of your personal
characteristics can help you adapt to others and can help you
understand why you react to them the way you do. These skills
can help you to avoid rushed judgments, appreciate the nuances of
particular situations, size up opportunities, capitalize on your
personal strengths, and avoid situations in which you are likely to
fail.

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 Skills for Managerial Success
Strategic Skills
 Environmental assessment
scanning
 Strategy formulation
 Mapping strategic intent and
defining mission
 Strategy implementation
 Human resource congruency
McGraw-Hill
Task Skills
 Setting and prioritizing
objectives
 Developing plan of action and
implementation
 Responding in a flexible
manner
 Creating value
 Working through the
organizational structure
 Allocating human resources
 Managing time efficiently
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 Skills for Managerial Success (continued)

People Skills Self-Awareness Skills

 Delegating  Personal adaptability
 Influencing  Understanding personal biases
 Motivating
 Internal locus of control
 Handling conflict
 Win-win negotiating
 Networking
 Communicating
 Verbal
 Nonverbal
 Listening
 Cross-cultural management
 Heterogeneous teamwork

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