Principles of
Management
Chapter 1
Yusra Qamar
Who Is a Manager?
Manager: someone who coordinates and oversees the work of other
people so that organizational goals can be accomplished.
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Levels of Management
In traditionally structured organizations, managers can be classified as first-
line, middle, or top.
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Classifying Managers
• First-Line Managers: manage the work of non-managerial employees. First-
line managers may be called supervisors or even shift managers, district
managers, department managers, or office managers.
• Middle Managers: manage the work of first-line managers. They may have
titles such as regional manager, project leader, store manager, or division
manager.
• Top Managers: responsible for making organization-wide decisions and
establishing plans and goals that affect the entire organization. These
individuals typically have titles such as executive vice president, president,
managing director, chief operating officer, or chief executive.
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Case 1: TechCo Expansion
Background: TechCo, a rapidly growing tech company, is expanding its operations into new
markets. The expansion involves launching new products and enhancing customer support in
several regions. The company’s management structure includes distinct levels, each playing a
crucial role in the expansion process.
Case Details:
1. Emily, the CEO, and her executive team are responsible for setting the strategic direction for the
expansion. This includes conducting market analysis, defining long-term goals, and securing the
necessary funding to support the expansion.
2. Jordan, a Regional Manager, is tasked with implementing the expansion strategy in their
specific region. Jordan coordinates the execution of the strategic goals set by Emily and the
executive team, ensuring that local operations align with the company’s overall objectives.
3. Sam, a Department Manager, oversees a group of employees working on new product
development and customer support. Sam is responsible for managing daily tasks, ensuring that the
team meets its goals, and addressing any operational issues that arise during the expansion.
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Case: TechCo Expansion
Discussion Questions:
Identify the three levels of management involved in TechCo's expansion and
describe the primary responsibilities of each.
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Case 2: Bright Horizons Solar Solutions
Background: Bright Horizons Solar Solutions is expanding its operations to include new
solar panel installations across multiple states. The expansion involves strategic planning,
regional implementation, and daily management of the installation teams.
Case Details:
1. Sophia, the company’s founder and strategic leader, spearheads the expansion project.
She oversees the overall strategy, including conducting market research, setting long-term
objectives, and securing the necessary investment to support the new installations.
2. Alex, the Project Leader, is responsible for executing the expansion plan in the designated
states. Alex ensures that the strategic objectives set by Sophia are translated into actionable
plans, coordinating the efforts of various teams to align with the company's goals.
3. Priya, the Installation Manager, supervises a team of technicians responsible for the
physical installation of the solar panels. Priya manages daily operations, schedules, and
addresses any issues that arise on-site to ensure the successful completion of each project.
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Case: Bright Horizons Solar Solutions
Discussion Questions:
Identify the three levels of management involved in Bright Horizons Solar
Solutions's expansion and describe the primary responsibilities of each.
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Case 3: UrbanFit Gym Chain Expansion
Background: UrbanFit, a popular gym chain, is opening new locations across the city to
accommodate growing membership demand. The expansion involves strategic planning,
regional execution, and day-to-day management of each new gym.
Case Details:
1. David, the CEO and visionary behind UrbanFit, leads the expansion initiative. He focuses
on setting the strategic vision, including analyzing market opportunities, defining growth
targets, and arranging financing for the new locations.
2. Priya, the Expansion Coordinator, implements the growth strategy in each new gym
location. Mia works to ensure that David’s vision is realized by coordinating construction,
hiring staff, and overseeing the setup of each new facility.
3. Oliver, the Gym Manager, takes charge of running one of the newly opened gyms. Oliver
handles daily operations, manages the gym staff, and ensures that the gym’s services meet
the standards set by UrbanFit.
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Case: UrbanFit Gym Chain Expansion
Discussion Questions:
Identify the three levels of management involved in UrbanFit Gym Chain
Expansion's expansion and describe the primary responsibilities of each.
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Where Do Managers Work?
• Organization: a deliberate arrangement of people to
accomplish some specific purpose.
Characteristics of Organizations
Three common characteristics of organizations: distinct purpose,
deliberate structure, and people.
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Why Are Managers Important?
• Organizations need their managerial skills and abilities
now more than ever
• Managers are critical to getting things done
• Managers do matter to organizations
Managers Make a Difference
Data on why managers are important. Managers that are not engaged
cost organizations billions of dollars through employee turnover.
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What Do Managers Do?
• Management involves coordinating and overseeing the work
activities of others so that their activities are completed
efficiently and effectively.
Efficiency and Effectiveness
• Efficiency: doing things right
• getting the most output from the least amount of input
• Effectiveness: doing the right things
• attaining organizational goals
• Video: The Cart - The 4 Types of Team Members You Can Hire
Efficiency and Effectiveness in
Management
Efficiency is concerned with the means of getting things done, effectiveness is concerned with
the ends, or attainment of organizational goals.
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Management Functions
• Planning: Defining goals, establishing strategies to achieve
goals, and developing plans to integrate and coordinate
activities
• Organizing: Arranging and structuring work to accomplish
organizational goals
• Leading: Working with and through people to accomplish goals
• Controlling: Monitoring, comparing, and correcting work
Four Functions of Management
Four functions used to describe a manager’s work: planning, organizing, leading,
and controlling.
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Case 1 : The New Café
Alex recently opened "The New Café" in a busy neighborhood and is
committed to ensuring its success through effective management. To
attract more customers, Sarah, starts by devising a detailed
promotional plan that includes special discounts, social media
campaigns, and community events.
Next, James, hires additional staff and reorganizes work
schedules to ensure that the café is well-staffed during busy times.
Alex then holds a staff meeting to inspire and motivate the team,
clearly communicating the new goals and stressing the importance of
excellent customer service. Finally, he keeps a close eye on sales data,
customer feedback, and staff performance, making necessary
adjustments to the strategy based on this ongoing evaluation.
Mintzberg’s Managerial Roles and a Contemporary
Model of Managing
• Roles: specific actions or behaviors expected of and exhibited by
a manager
• Mintzberg identified 10 roles grouped around interpersonal
relationships, the transfer of information, and decision making
Types of Roles
• Interpersonal
• Figurehead, leader, liaison
• Informational
• Monitor, disseminator, spokesperson
• Decisional
• Entrepreneur, disturbance handler, resource allocator,
negotiator
Managerial roles identified by Mintzberg.
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Mintzberg’s Managerial Roles
Managerial roles identified by Mintzberg.
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Minztberg’s Managerial Roles
Role Description
Interpersonal
Figurehead Symbolic head; required to perform a number of routine duties
of a legal or social nature
Leader Responsible for the motivation and direction of employees
Liaison Maintains a network of outside contacts who provide favors and
information
Informational
Monitor Receives a wide variety of information; serves as nerve center
of internal and external information of the organization
Disseminator Transmits information received from outsiders or from other
employees to members of the organization
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Minztberg’s Managerial Roles
Role Description
Spokesperson Transmits information to outsiders on organization’s plans,
policies, actions, and results; serves as expert on organization’s
industry
Decisional Searches organization and its environment for opportunities and
initiates projects to bring about change
Entrepreneur Responsible for corrective action when organization faces
important, unexpected disturbances
Resource allocator Makes or approves significant organizational decisions
Negotiator Responsible for representing the organization at major
negotiations
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Case 1:
Scenario: GreenTech Innovations is a company specializing in sustainable
technology solutions. Employees at the company fulfill various roles, each
contributing to the company’s success in different ways.
Case Details:
• Sophia manages relationships with the staff, facilitates communication between
team members, and represents the company at community events. She plays a key
role in maintaining a positive work environment and enhancing the company’s
external presence.
• Liam focuses on collecting and analyzing market data. He prepares detailed reports
for the management team and keeps the company informed about industry trends
and competitive developments.
• Raj makes important decisions regarding the allocation of resources, implements
improvements to processes, and addresses operational challenges. His role involves
significant decision-making to ensure efficient and effective company operations.
Case 2:
• Anna is dedicated to nurturing relationships with key clients and
stakeholders. She ensures that client needs and concerns are addressed
promptly and effectively. Her role involves frequent communication
with clients to build long-lasting partnerships and enhance the
company’s reputation.
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Case 3:
• Nina evaluates and implements new technologies to enhance company
operations. She identifies opportunities for innovation and leads
initiatives that can result in significant improvements and competitive
advantages for the company.
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Case 4:
• Carlos focuses on fostering team cohesion and supporting new
employees. He works to motivate his team, set performance goals, and
resolve any conflicts that arise among team members. His efforts are
aimed at creating a collaborative and productive work environment.
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Case 5:
• Emma tracks industry news and trends to keep the company informed.
She regularly reviews various sources of information to identify
relevant insights and potential impacts on the company. Her analysis is
crucial for strategic planning and maintaining a competitive edge.
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Management Skills
• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about abstract and
complex situations concerning the organization
Skills Needed at Different Managerial Levels
Relationships of conceptual, human, and technical skills to managerial levels.
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Case:
• Jordan leads the organization’s strategic vision, focusing on
long-term goals and growth opportunities in the renewable
energy sector. They spend most of their time analyzing market
trends and shaping high-level strategies to ensure the company
remains innovative and competitive.
• While Jordan occasionally interacts with employees and
stakeholders to discuss the company's direction and gather
input, these interactions are less frequent compared to their
strategic work. Their role involves less technical detail, relying
on specialized teams to manage the operational aspects and
technical challenges of the business.
Case:
• Alex supervises a team on the production floor, focusing primarily
on the technical aspects of their work. Alex spends most of their
time troubleshooting equipment issues, overseeing production
processes, and ensuring that all tasks are completed according to
technical specifications.
• While Alex also interacts with team members to address immediate
concerns and maintain a smooth workflow, these interactions are
less frequent compared to their hands-on technical tasks. Strategic
planning and broader organizational objectives are not a central part
of Alex's role; instead, their primary responsibility lies in managing
day-to-day technical operations and ensuring the team's efficiency.
Case:
• Emily manages a team that is responsible for both implementing
new initiatives and refining existing processes. They regularly
engage in planning and problem-solving to ensure that projects align
with the organization's goals and strategies. Jordan also interacts
frequently with team members to provide support, address concerns,
and maintain motivation.
• At the same time, they stay actively involved in the technical aspects
of the projects, ensuring that the team has the right tools and
knowledge to tackle complex tasks effectively. This balanced
approach helps Jordan integrate strategic thinking, team
management, and technical proficiency in their daily responsibilities.
Challenges Facing Managers Today and into the
Future
• Focus on technology
• Focus on disruptive innovation
• Focus on social media
• Focus on ethics
• Focus on political uncertainty
• Focus on the customer
Focus on Technology
• Managers must get employees on board with new technology
• Managers must oversee the social interactions and challenges
involved in using collaborative technologies
Focus on Disruptive Innovation
• One of the most critical challenges facing managers today is dealing
with disruptive innovation
• Disruptive innovation involves new products, processes, or services
that radically change the rules of the game
• One example is how the automobile destroyed the horse-drawn
buggy industry
Focus on Social Media
• Social media: forms of electronic communication through which
users create online communities to share ideas, information, personal
messages, and other content
Focus on Ethics
• We commonly see unethical business practices in the news
• Examples include pharmaceutical firms raising drug prices by 500%
or someone turning in fake receipts for expenses
• Organizational survival depends on building trust with customers,
clients, suppliers, employees, and other stakeholders
Focus on Political Uncertainty
• In the past, major democratic nations like the U S, Canada, and the
UK have been relatively stable politically
• In the last 10 years these countries have shifted to greater political
uncertainty
• Brexit and the U S M C A are examples of that shift
• Some states, such as California, have placed additional regulations
on business
Focus on the Customer
• Without customers, most organizations would cease to exist
• Managing customer relationships is the responsibility of all
managers and employees
• Consistent, high-quality customer service is essential
The Universality of Management
• The reality that management is needed in all types and sizes of
organizations, at all organizational levels, in all organizational
areas, and in organizations no matter where located
Universal Need for Management
Management is universally needed in all types of, and throughout all areas of,
organizations.
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The Reality of Work
• When you begin your career, you will either manage or be
managed
Rewards of Being a Manager
• Responsible for creating a productive work environment
• Recognition and status in your organization and in the community
• Attractive compensation in the form of salaries, bonuses, and
stock options
Rewards From Being a Manager
• Create a work environment in which organizational members can
work to the best of their ability
• Have opportunities to think creatively and use imagination
• Help others find meaning and fulfillment in work
• Support, coach, and nurture others
• Work with a variety of people
• Receive recognition and status in organization and community
• Play a role in influencing organizational outcomes
• Receive appropriate compensation in the form of salaries, bonuses,
and stock options
Challenges of Being a Manager
• Do hard work
• May have duties that are more clerical than managerial
• Have to deal with a variety of personalities
• Often have to make do with limited resources
• Motivate workers in chaotic and uncertain situations
• Blend knowledge, skills, ambitions, and experiences of a diverse
work group
• Success depends on others’ work performance
A Manager’s Dilemma
• 12.7 million. That’s the total number of people employed in the restaurant industry
according to the National Restaurant Association.1 Those employees hold jobs ranging
from greeting and serving customers to cooking for and cleaning up after customers.
There’s a lot of action taking place in a restaurant—sometimes calm and sometimes
frenetic—as employees work together to provide customers what they [Link]
overseeing those employees is someone who must ensure that everything runs smoothly.
• That someone is a manager. Lisa Greene is one such [Link] the general manager of a
popular and very busy restaurant in Springfield, Missouri, she oversees 100 employees.
Working long hours, Lisa is expected to lead her team and uphold the company’s high
standards so employees can do their assigned work efficiently and effectively. Like any
hard-working manager, Lisa is continually trying to find ways to cut costs and make her
restaurant run a little more smoothly. But her most important challenge comes from
looking for ways to make her restaurant a better place to work. Put yourself in Lisa’s
place.
What would you do?