Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc.

publishing as Prentice Hall

1-1
Who Are Managers?

• Manager
– Someone who
coordinates and
oversees the work of
other people so that
organizational goals can
be accomplished.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Classifying Managers
• First-line Managers - Individuals who manage
the work of non-managerial employees.
• Middle Managers - Individuals who manage
the work of first-line managers.
• Top Managers - Individuals who are
responsible for making organization-wide
decisions and establishing plans and goals that
affect the entire organization.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-3
 Exhibit 1-1: Levels of Management

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-4
Where Do Managers Work?
• Organization - A deliberate arrangement of
people assembled to accomplish some specific
purpose (that individuals independently could
not accomplish alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-5
Exhibit 1-2: Characteristics of Organizations

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-6
What Do Managers Do?
• Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-7
Effectiveness and Efficiency
• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most output – Attaining organizational
for the least inputs goals

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-8
 Exhibit 1-3: Efficiency and Effectiveness
in Management

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-9
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.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-10
Exhibit 1-4: Four Functions of Management

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-11
Management Roles
• Roles are specific actions or behaviors
expected of a manager.
• Mintzberg identified 10 roles grouped around
interpersonal relationships, the transfer of
information, and decision making.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-12
Management Roles
• Interpersonal roles
– Figurehead, leader, liaison
• Informational roles
– Monitor, disseminator, spokesperson
• Decisional roles
– Entrepreneur, disturbance handler, resource
allocator, negotiator

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-13
Skills Managers Need
• 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

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-14
 Exhibit 1-6: Skills Needed at Different
Managerial Levels

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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 Historical Background of
Management
• Ancient Management
– Egypt (pyramids) and China (Great Wall)
– Venetians (floating warship assembly lines)
• Adam Smith The Wealth of Nations in 1776
• Industrial Revolution
– Substituted machine power for human labor
– Created large organizations in need of
management

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-16
 Exhibit MH-1: Major Approaches
to Management

CopyrightManagement,
© 2012Eleventh
Pearson Education,
Edition by Inc.
Stephen P. Robbins Publishing
& Mary Coulter as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-17
Scientific Management
• Fredrick Winslow Taylor
– The “father” of scientific management
• The theory of scientific management
– Using scientific methods to define the “one best
way” for a job to be done:
• Putting the right person on the job with the correct
tools and equipment
• Having a standardized method of doing the job
• Providing an economic incentive to the worker
Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-18
General Administrative Theory
• Henri Fayol
– Believed that the practice of management was
distinct from other organizational functions
– Developed principles of management that applied
to all organizational situations
• Max Weber
– Developed a theory of authority based on an ideal
type of organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism
Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-19
 Exhibit MH-3

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-20
 Quantitative Approach
• Quantitative Approach
– Also called operations research or management
science
– Evolved from mathematical and statistical
methods developed to solve WWII military
logistics and quality control problems
– Focuses on improving managerial decision making
by applying:
• Statistics, optimization models, information models,
and computer simulations
Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-21
Organizational Behavior
• Organizational Behavior (OB)
– The study of the actions of people at work; people
are the most important asset of an organization
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-22
The Hawthorne Studies
• A series of productivity experiments conducted
at Western Electric from 1924 to 1932
– Experimental findings
• Productivity unexpectedly increased under imposed
adverse working conditions.
• The effect of incentive plans was less than expected.
– Research conclusion
• Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-23
The Systems Approach
• System - a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole.
• Closed systems
• Are not influenced by and do not interact with their
environment (all system input and output is internal)
• Open systems
• Dynamically interact to their environments by taking in
inputs and transforming them into outputs that are
distributed into their environments
Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-24
 Exhibit MH-7

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-25
The Contingency Approach
• Contingency Approach - sometimes called the
situational approach
– There is no one universally applicable set of
management principles (rules) by which to
manage organizations.
– Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing.

Copyright © 2012
Management, Pearson
Eleventh Education,
Edition by Stephen P. Robbins &Inc. Publishing as Prentice Hall ©2012 Pearson Education, Inc. publishing as Prentice Hall
Mary Coulter
1-26
 The Manager:
Omnipotent or Symbolic?
• Omnipotent View of Management - the view
that managers are directly responsible for an
organization’s success or failure.
• Symbolic view of Management - the view that
much of an organization’s success or failure is
due to external forces outside managers’
control.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Exhibit 2-1: Constraints on Managerial Discretion

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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 The External Environment:
Constraints and Challenges
• External Environment - those factors and forces
outside the organization that affect its performance.
• Components of the External Environment
– Specific environment: External forces that have a direct
and immediate impact on the organization
– General environment: Broad economic, socio-cultural,
political/legal, demographic, technological, and global
conditions that may affect the organization

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-29
 Environmental Uncertainty and
Complexity
• Environmental Uncertainty - the degree of
change and complexity in an organization’s
environment.
• Environmental Complexity - the number of
components in an organization’s environment
and the extent of the organization’s
knowledge about those components.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-30
Who Are Stakeholders?

• Stakeholders - any constituencies in the

organization’s environment that are affected
by an organization’s decisions and actions.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-31
Exhibit 2-4: Organizational Stakeholders

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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What Is Organizational Culture?
• Organizational Culture - The shared values,
principles, traditions, and ways of doing things
that influence the way organizational
members act.

• Strong Cultures - Organizational cultures in which key

values are intensely held and widely shared.
• Weak Cultures - Organizational cultures in which key
values are not intensely held and widely shared.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-33
Where Does Culture Come From?

• Organization founder
• Vision and mission
• Past practices
• Top management
behavior
• Socialization - The
process that helps
employees adapt to the
organization’s culture.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-34
How Do Employees Learn Culture?

• Stories - Narratives of significant events or

people, e.g. organization founders, rule
breaking, reaction to past mistakes etc.
• Rituals - Sequences of activities that express
and reinforce the important values and goals
of the organization

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-35
How Employees Learn Culture (cont.)

• Material Artifacts and Symbols - Convey the

kinds of behavior that are expected, e.g. risk
taking, participation, authority, etc.
• Language - Acts as a common denominator
that bonds members

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-36
Spirituality and Culture
• Workplace Spirituality - a culture where
organizational values promote a sense of purpose
through meaningful work that takes place in the
context of community
• Characteristics of a Spiritual Organization
– Strong sense of purpose
– Focus on individual development
– Trust and openness
– Employee empowerment
– Toleration of employees’ expression

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-37
What’s Your Global Perspective?
• Parochialism - viewing the world solely
through your own perspectives, leading to an
inability to recognize differences between
people.
• Ethnocentric Attitude - the parochialistic
belief that the best work approaches and
practices are those of the home country.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-38
More Global Perspectives
• Polycentric Attitude - the view that the
managers in the host country know the best
work approaches and practices for running
their business.
• Geocentric Attitude - a world-oriented view
that focuses on using the best approaches and
people from around the globe.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-39
Types of International Organizations

• Multinational Corporation (MNC) - a broad

term that refers to any and all types of
international companies that maintain
operations in multiple countries.
• Multidomestic Corporation - an MNC that
decentralizes management and other
decisions to the local country.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-40
Types of International Organizations (cont.)

• Global Company - an MNC that centralizes

management and other decisions in the home
country.
• Transnational or Borderless Organization - an
MNC in which artificial geographical barriers
are eliminated.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-41
How Do Organizations Go Global?
• Global Sourcing -
purchasing materials or
labor from around the
world wherever it is
cheapest.
• Exporting - making
products domestically
and selling them
abroad.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-42
Going Global (cont.)
• Importing - acquiring products made abroad
and selling them domestically.
• Licensing - an organization gives another
organization the right to make or sell its
products using its technology or product
specifications.
• Franchising - an organization gives another
organization the right to use its name and
operating methods.
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
1-43
Going Global (cont.)
• Strategic Alliance - a partnership between an
organization and one or more foreign
company partner(s) in which both share
resources and knowledge in developing new
products or building production facilities.
• Joint Venture - a specific type of strategic
alliance in which the partners agree to form a
separate, independent organization for some
business purpose.
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Going Global (cont.)
• Foreign Subsidiary - directly investing in a
foreign country by setting up a separate and
independent production facility or office.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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