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Chapter 1
Managers and
Managing

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 Chapter Outline
1. First: What Is Management?
2. Achieving High Performance: A Manager’s Goal
3. Third: Why Study Management?
4. Fourth: Four Tasks of Management
5. Fifth: Managerial Roles Identified
6. Levels and Skills of Managers
7. Recent Changes in Management Practices
8. Challenges for Management in a Global Environment

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 First: What Is Management? 1

Organizations
• Organizations are collections of people who work
together and coordinate their actions to achieve a
wide variety of goals or desired future outcomes.
• All managers work in organizations.

Managers
• Managers are the people responsible for supervising
the use of an organization’s resources to meet its
goals.

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 What Is Management? 2

Management
• Management includes the planning, organizing,
leading, and controlling of human and other resources
to achieve organizational goals effectively and
efficiently.

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 What Is Management? 3

Resources.
• Include assets such as:
1. People and their skills, know-how, and experience (Human Resources
HR).
2. Machinery.
3. Raw materials.
4. Computers and information technology.
5. Patents, financial capital, and loyal customers and employees.

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 Second: Achieving High Performance:
A Manager’s Goal
Organizational performance:
• A measure of how efficiently and effectively managers
use available resources to satisfy customers and
achieve organizational goals.

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 Achieving High Performance: A Manager’s Goal

Efficiency:
A measure of how well or how productively resources
are used to achieve a goal.
• Wendy’s fat fryers use less oil and are quicker.

Effectiveness:
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which the
organization achieves those goals.
• McDonald’s all-day breakfast success.

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 Figure 1.1 Efficiency, Effectiveness, and
Performance in an Organization
High-performing organizations are efficient and effective.

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 Fourth: Four Tasks of Management

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 (4-1) Planning: Steps in the Planning Process

1. Decide which goals the organization will

pursue.
2. Decide what strategies to adopt to attain those
goals.
3. Decide how to allocate organizational
resources.
Managers identify and select appropriate
organizational goals and develop strategies
for how to achieve high performance.

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 (4-2) Organizing

Organizing:
• Structuring working relationships so organizational
members interact and cooperate to achieve
organizational goals.

Managers deciding how best to organize

resources, particularly human resources.

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 (4-2) Organizing (Contd.)

Organizational structure
• A formal system of task and reporting relationships
that coordinates and motivates organizational
members so that they work together to achieve
organizational goals.

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 (4-3) Leading

• Articulating a clear vision and energizing and enabling

organizational members so they understand the part
they play in achieving organizational goals.
• Involves managers using their power, personality,
influence, persuasion, and communication skills to
coordinate people and groups.

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 (4-4) Controlling

Controlling:
• Evaluating how well Managers monitor
an organization is performance of
achieving its goals individuals,
and taking action to departments, and the
maintain or improve organization as a whole
performance. to determine if they are
meeting performance
standards.

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 (4-4) Controlling (Contd.)

The outcome of the control process is the

ability to measure performance accurately and
regulate organizational efficiency and
effectiveness.
Managers must decide which goals to measure.

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 x
Sixth: Levels and Skills of Managers

Department:
• A group of managers and employees who work
together and possess similar skills or use the same
knowledge, tools, or techniques.
• Example: the manufacturing, accounting, engineering,
or marketing department.

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 Figure 1.3 Levels of Managers

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 Levels of Management 1

First-line managers (often called supervisors):

Responsible for the daily supervision of the
nonmanagerial employees.
• Paint foreman overseeing a crew of painters at a university.

Middle managers:
Supervises first-line managers.
Responsible for finding the best way to use resources to
achieve organizational goals.
• marketing manager.

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 Levels of Management 2

Top managers:
 Responsible for the performance of all departments.
 Establish organizational goals.
 Decide how different departments should interact.
 Monitor how well middle managers in each
department use resources to achieve goals.
• President of a university.

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 Levels and Skills of Managers 2

Figure 1.4 Relative

Amount of Time
Managers Spend
on the Four
Managerial Tasks.

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 Types of Managerial Skills
Conceptual skills:
• The ability to analyze and diagnose a situation and
distinguish between cause and effect.

Human skills:
• The ability to understand, alter, lead, and control the
behavior of other individuals and groups.

Technical skills:
• Job-specific knowledge and techniques required to
perform an organizational role.

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 Figure 1.5: Types and Levels of Managers

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 Eight: Challenges for Management in a Global
Environment

Build a competitive advantage.

Maintain ethical and socially responsible standards.

Manage a diverse workforce.

Utilize new technologies.

Practice global crisis management.

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 (8-1) Building Competitive Advantage
Competitive advantage:
• Ability of one organization to outperform other
organizations because it produces desired goods or
services more efficiently and effectively than
competitors.

Innovation:
• The process of creating new or improved goods and
services or developing better ways to produce or
provide them.

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 Building Blocks of Competitive Advantage

Competitive Advantage

Efficiency

Innovation and Flexibility

Responsiveness to customers

Quality

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 (8-2) Maintaining Ethical and Socially
Responsible Standards
Managers are under considerable pressure to
make the best use of resources.
Too much pressure may induce managers to
behave unethically and even illegally.
• Nudges as ethical behavior tools.

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 (8-3) Managing a Diverse Workforce

To create a highly trained and motivated

workforce, managers must establish human
resource management (H R M) procedures that
are legal and fair and do not discriminate against
organizational members.

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 (8-4) Utilizing New Technologies
Efficient and effective technologies that link and
enable managers and employees to better
perform their jobs, regardless of role.
UPS uses ORION.
• A GPS system that optimizes drivers’ routes.

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 End of Main Content

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reproduction or further distribution permitted without the prior written consent of McGraw Hill.