Chapter 1
The Management Process
The management
process
Planning Ahead — Key Takeaways
● Recognize the challenges of ● Discuss what it means to be a
working in the new economy. manager.
● Describe the nature of ● Explain the functions, roles,
organizations as work settings. and activities of managers.
● Identify essential managerial
skills and discuss how they are
learned.
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Working today
• Talent
• Technology
• Globalization
• Ethics
Chapter 1 Outline • Diversity
• Careers and Connections
Organizations
• Organizational purpose
• Organizations as systems
• Organizational performance
• Changing nature of
organizations 3
Managers
• What is a manager?
• Levels of managers
• Types of managers
• Managerial performance
• Changing nature of managerial work
Chapter 1 Outline The Management Process
• Functions of Management
• Managerial roles and activities
• Agenda settings and networking
Learning How to Manage
• Technical skills
• Human and interpersonal skills
• Conceptual and critical-thinking skills
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Talent
• People and their talents are
Working the ultimate foundations of
organizational performance
today • Intellectual capital is the
collective brainpower or
shared knowledge of a
workforce
• A knowledge worker’s mind
is a critical asset to
employers and adds to the
intellectual capital of an
organization
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WORKING TODAY
Intellectual capital equation:
Commitme Competen Intellectu
nt cy
al Capital
Technology
Tech IQ is a person’s ability to use
Working Today technology to stay informed:
• Checking inventory,
making a sales
transaction, ordering
supplies
• Telecommuting
• Virtual teams
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Globalization
○ The worldwide
interdependence of
Working Today resource flows, product
markets, and business
competition that
characterize our economy
○ Job migration occurs
when firms shift jobs from
one country to another
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Ethics
Working Today ○ Code of moral principles
that set standards of
conduct of what is
“good” and “right”
○ in one’s
behavior
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Ethical expectations for
Working Today modern businesses:
– Integrity and ethical
leadership at all levels
– Social responsibility
– Sustainability
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Working today
Corporate Governance
○ Board of directors hold top management responsible for
organizational performance
Financial Ethical
performance Sustainability
performance
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Diversity
○ Workforce diversity
reflects differences with
Working Today respect to gender, age,
race, ethnicity, religion,
sexual orientation, and
able-bodiedness
○ A diverse and multicultural
workforce both challenges
and offers opportunities to
employers
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How diversity bias can occur
Working Today in the workplace:
○ Prejudice
○ Discrimination
○ Glass ceiling effect
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Working Today
Careers and Connections
○ Organizations consist of three types of workers, sometimes
referred to as a shamrock organization
Permanent
full time
workers
Temporary Freelance
part-time or contract
workers workers
● Free-agent economy
○ People change jobs more
often, and many work on
Working Today flexible contracts
● Self-management
○ Ability to understands
oneself, exercise
initiative, accept
responsibility, and learn
from experience
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Organization
○ A collection of people
working together to
achieve a common
Organizations purpose
○ Organizations provide
useful goods and/or
services that return value
to society and satisfy
customer needs
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Figure 1.1 Organizations as open systems
interact with their environment
Organizational performance
○ “Value creation” is a very
important notion for
organizations
Organizations ○ Value is created when an
organization’s operations adds
value to the original cost of
resource inputs
○ When value creation occurs:
■ Businesses earn a profit
■ Nonprofit organizations add
wealth to society
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Organizations
Organizational performance
Performance Performance
Productivity
effectiveness efficiency
• An overall • An output • An input
measure of measure of task measure of the
the quantity or goal resource costs
and quality of accomplishmen associated with
work t goal
performance accomplishmen
with resource t
utilization
taken into
account
Figure 1.2 Productivity and the dimensions of
organizational performance
Organizations
Workplace changes that provide a context for studying management
Focus on valuing human capital
Demise of “command-and-control”
Emphasis on teamwork
Preeminence of technology
Importance of networking
New workforce expectations
Priorities on sustainability
Importance of human
Managers resources and managers
○ People are not ‘costs to be
controlled ’
○ High performing
organizations treat people
as valuable strategic assets
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● Manager
○ Directly supports,
activates and is
Managers responsible for the work of
others
○ The people who
managers help are the
ones whose tasks
represent the real work of
the organization
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Levels of management
○ Board of directors make
sure the organization is run
right
Managers ○ Top managers are
responsible for
performance of an
organization as a whole or
for one of its major parts
○ Middle managers oversee
large departments or
divisions
○ Team leaders supervise
non-managerial workers
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Figure 1.3 Management levels in a typical
business and non-profit organizations
Types of managers
• Line managers are responsible
for work activities that directly
affect organization’s outputs
• Staff managers use technical
Managers expertise to advise and support
the efforts of line workers
• Functional managers are
responsible for a single area of
activity
• General managers are
responsible for more complex
units that include many
functional areas
• Administrators work in public
and nonprofit organizations
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● Managerial performance
Accountability is the
Managers requirement to show
performance results to a
supervisor
● Effective managers help
others achieve high
performance and
satisfaction at work
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Takeaway 3: Managers
Quality of work life (QWL)
○ An indicator of the overall quality of human
experiences in the workplace
QWL indicators:
• Respect
• Fair pay
• Safe working conditions
• Opportunities to learn and use new skills
• Room to grow and progress in a career
• Protection of individual rights
The organization as an
upside-down pyramid
○ A manager’s job is to
support workers’ efforts
Managers ○ The best managers are
known for helping and
supporting
○ Customers at the top
served by workers who
are supported by
managers
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Figure 1.4 The organization viewed as an
upside-down pyramid
o Managers achieve high
performance for their
organizations by best utilizing
The Management its human and material
resources
Process o Management is the process of
planning, organizing, leading,
and controlling the use of
resources to accomplish
performance goals
o All managers are responsible
for the four functions
o The functions are carried on
continually
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Figure 1.5 Four functions of management
Functions of management
○ Planning
■ The process of setting
The Management objectives and
determining what
Process actions should be taken
to accomplish them
○ Organizing
■ The process of
assigning tasks,
allocating resources,
and coordinating work
activities
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Functions of management
○ Leading
■ The process of arousing
The Management people’s enthusiasm to
work hard and direct
Process their efforts to achieve
goals
○ Controlling
■ The process of
measuring work
performance and taking
action to ensure desired
results
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MINTZBERG’S 10 MANAGERIAL ROLES
Characteristics of managerial
work
The Management ○ long hours
Process ○ intense pace
○ fragmented and varied
tasks
○ many communication
media
○ filled with interpersonal
relationships
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Managerial agendas and
networks
○ Agenda setting
The Management ■ Develops action priorities
for accomplishing goals
Process and plans
○ Networking
■ Process of creating
positive relationships with
people who can
help advance agendas
○ Social capital
■ Capacity to get things
done with help
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● Learning
Learning How to ○ The change in a behavior
that results from
Manage experience
● Lifelong learning
○ The process of
continuously learning from
daily experiences and
opportunities
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Figure 1.6 Katz’s Essential
Managerial Skills