Chapter 1 Managers and Management (O)

4. Explain why it's important to study management.

One reason it's important to study management is that all of us interact with organizations daily so we have a vested interest in seeing that organizations are well managed. Another reason is the reality that in your career you will either manage or be managed. By studying management you can gain insights into the way your boss and fellow employees behave and how organizations function.

Most of the concepts we will discuss primarily apply to the US, and what other countries? (4) Concepts may need to be modified when working with (4)

(1) Canada (2) Great Britain (3) Australia and (4) other English-speaking democracies (1) India (2) China (3) Chile (4) or other countries where economic, political, or cultural environment differ greatly from that of the so-called free-market deomcracies

(1) The small business manager's most important role is (2) In a large organization, the manager's most important job is

(1) The small business manager's most important role is *that of spokesperson (outwardly focused)* (2) In a large organization, the manager's most important job is *deciding which organizational units get what available resources (inwardly focused)*

*Controlling* Actual performance must be compared with the __

*Controlling* Actual performance must be compared with the *previously set goals*

*Controlling* Any significant __ must be adressed

*Controlling* Any significant *deviations* must be addressed

*Controlling* To ensure that things are going as they should, a manager must

*Controlling* To ensure that things are going as they should, a manager must *monitor the organization's performance*

*All organizations develop a systemic structure that defines and limits the behavior of its members* Developing a structure may include (3)

*Developing a structure may include:* 1) creating rules and regulations 2) giving some members supervisory control 3) forming teams, ect...

____ and ____ deal with what we are doing and how we are doing it

*Effectiveness* and *efficiency* deal with what we are doing and how we are doing it

____, ____, and ____, hinge on employee/manager relationship

*Employee productivity, loyalty* and *engagement* hinge on employee/manager relationship

*Learning Objective One* 1) Who are managers, and 2) where do they work?

1) 2) Managers work in an organization

Why study management?

1. *We all have a vested interest in improving the way organizations are managed* bc we interact with them every day 2. On you graduate, you will either manage or be managed

What are the four essential management skills as proposed by Robert Katz?

1. Conceptual skills 2. Interpersonal skills 3. Technical skills 4. Political skills

What is the importance of social media? (2)

1. Connecting with customers 2. Managing human resources

Organizing involves (5)

1. Determining what tasks are to be done 2. who is to do them 3. how the tasks are grouped 4. who reports to whom 5. and where decisions are to be made

What are (4) decisional roles?

1. Entrepreneur 2. Disturbance handler 3. Resource allocator 4. Negotiator

What are (3) interpersonal roles?

1. Figurehead 2. Leader 3. Liason

Management researchers have developed (3) approaches to describe what manager do. Name them.

1. Four functions approach 2. Management roles approach 3. Skills and competencies

What are the (3) common characteristics of organizations?

1. Goals 2. People 3. Structure

Mintzburg's 10 roles are grouped under what (3) primary headings?

1. Interpersonal relationships 2. Informational 3. Decisional

What are the (3) roles in the Management roles approach?

1. Interpersonal roles 2. Informational roles 3. Decisional roles

What are (3) informational roles?

1. Monitor 2. Disseminator 3. Spokesperson

Why is innovation important to the manager's job?

1. Not being innovative in today's world is risky 2. Managers needs to understand what, when, where, how, and why innovation can be fostered and encouraged throughout the organization 3. Managers not only need to be innovative but must foster it in others

The recent global recession has affected how employees view ___. Surveys show that now ___ and ___ are more likely to cause an employee to leave their jobs than their relationship with their supervisor

The recent global recession has affected how employees view *managers*. Surveys show that now *pay* and *stress levels* are more likely to cause an employee to leave their jobs than their relationship with their supervisor

employees can use social media for work purposes. An example is using social media to

employees can use social media for work purposes. An example is using social media to (1) *manage human resource issues and to (2) foster communication and collaboration* throughout the company

Technical skills

job-specific knowledge and techniques needed to perform work tasks

lower-level managers focus on

lower-level managers focus on *designing the jobs of individuals and work groups*

the ___ role is least important to managers in large firms

the *entrepreneurial* role is least important to managers in large firms

The content of the managers activities changes with

the content of the managers activities changes with *the manager's level*

The distinction between non-managers and manager is that

the distinction between non-managers and manager is that *managers have employees who report directly to them*

the larger firm's manager's job is more ___ and ___ than the manager in a small firm

the larger firm's manager's job is more *structured* and *formal* than the manager in a small firm

the manager's job is mostly the same in both ___ and ___ organizations

the manager's job is mostly the same in both *profit* and *not-for-profit* organizations

the most important difference between profit and not-for-profit is

the most important difference between profit and not-for-profit is *measuring performance, profit,* or the *"bottom line"* this is because *there is no such universal measure in not-for profit organizations.* Making a profit for the "owners" of not-for-profit organizations is not the primary focus.

the small business' organizational design will be ___ and ___

the small business' organizational design will be *less complex* and *structured*

Political skills

to build a power base and establish the right connections

*true or false* social media can be a problem

true

upper-level managers are concerned with

upper-level managers are concerned with *designing the overall organization's structure*

Conceptual skills

used to analyze and diagnose complex situations

Can organizations be efficient but not be effective?

yes.

A small business manager is more likely to be a ___

A small business manager is more likely to be a *generalist*

Gallup polls indicate that the single most important variable in employee productivity and loyalty is

Gallup polls indicate that the single most important variable in employee productivity and loyalty is *the quality of the relationship between employees and their direct supervisors*

Good management is concerned with both

Good management is concerned with both (1) *the attainment of goals (effectiveness)* and (2) *efficiency in the process*

1. Tell who managers are and where they work.

Managers are individuals who work in an organization directing and overseeing the activities of other people. Managers are usually classified as top, middle, or first-line. Organizations, which are where managers work, have three characteristics: goals, people, and a deliberate structure.

*True or False* Only those who want to be managers need to take a course in management

*FALSE* Anyone who works in an organization - not just managers- can gain insight into how organizations work and their boss' behavior by taking a course in management

*True or False* Studies that have compared managerial practices between countries have generally supported the universailty of management concepts

*FALSE* Studies that have compared managerial practices between countries *have NOT* generally supported the universailty of management concepts

*True or False* The role of managing a small business is not different from that of managing a large one

*FALSE* The role of managing a small business *IS* different from that of managing a large one see Exhibit 1-7

*Learning Objective two* Define Management

*Management* can be defined as the process of getting things done effectively and efficiently, through and with other people

How are managers (2) different from Nonmanagerial employees (2)?

*Managers* 1. direct and oversee the activities of others 2. may have work duties not related to overseeing others *nonmanagerial employees* 1. work directly on tasks 2. not responsible for overseeing others' work

___ (3) are the controlling phase

*Monitoring, comparing,* and *correcting* are the controlling process

____ proposed that managers must posses and use four critical managerial skills

*Robert Katz* proposed that managers must posses and use four critical managerial skills

____ creates a proper focus

*Setting goals* creates a proper focus

__ is becoming more important

*Sustainability* is becoming more important

___ and ___ people is the leading component of management

*directing* and *coordinating* people is the leading component of management

What is the definition of a small business?

*there is no commonly agreed-upon definition of a small business* any independently owned and operated profit-seeking enterprise with fewer than 500 employees

Why are customer important to the managers role? (4)

1. Without customers the organization wouldn't survive 2. Consistent, high-quality customer service is essential to survive 3. Managers must create a customer responsive organization 4. Employee attitudes and behaviors play a big role in customer satisfaction

What are the (4) management functions of the four functions approach These processes are ___ as well as ___

1. planning 2. organizing 3. leading 4. controlling These processes are *interrelated* as well as *interdependent*

All managers (6)

All managers (1) make decisions, (2) set objectives, (3) create workable organization structures, (4) hire and motive employees, (5) secure legitimacy for their organization's existence, and (6) develop internal political support in order to implement programs

Organization

An *organization* is a deliberate arrangement of people brought together to accomplish some specific purpose *examples*: your college, sports teams, sororities

1-1 What is an organization and what characteristics do organizations share?

An organization is a systematic arrangement of people brought together to accomplish some specific purpose. All organizations share three common characteristics. 1) Every organization has a purpose and is made up of people who are grouped in some fashion. 2) No purpose or goal can be achieved by itself, therefore organizations have members. 3) All organizations develop a systematic structure that defines and limits the behavior of its members. Organization—an entity that has a distinct purpose, has people or members, and has a systematic structure. Organizations share three characteristics: 1) a purpose which is usually an expressed set of goals, 2) people who make decision and engage in work activity to make the desired goal a reality and 3) organizations have a structure that defines and limits the behavior of its employee.

As managers move up, they

As managers move up, they *do more planning and less direct overseeing of others* See Exhibit 1-4

Businesses that are poorly managed of find themselves having a ____ and ____

Businesses that are poorly managed of find themselves having a *declining customer base * and *reduced revenues*

Control in the small business will rely more on __

Control in the small business will rely more on *direct observation*

Gallup polls also found that relationships with managers is the largest factor in ___, accounting for at least ___% of an employee's ___

Gallup polls also found that relationships with managers is the largest factor in *employee engagement*, accounting for at least *70%* of an employee's *level of engagement*

What do managers do?

Describing what managers do is a difficult task. However, while the job of managers varies from organization to organization, they do share common elements

Effectiveness means

Effectiveness means *doing the right task, and in an organization that translate into goal attainment

Efficiency and effectiveness are ___

Efficiency and effectiveness are *interrelated*

Efficiency means

Efficiency means *doing the task right and refers to the relationship between inputs and outputs*

employee engagement

is when employees are connected to, satisfied with, and enthusiastic about their jobs

In the late 1960s, ___ provided empirical insights into a manager's job. He undertook a careful study of five chief executives at work

In the late 1960s, *Henry Mintzberg* provided empirical insights into a manager's job. He undertook a careful study of (5) chief executives at work

*Answer Continued* In the first example (the efficient office), everything might move quickly from start to finish but your control system may be weak. When customers begin to be audited by the IRS and learn that your efficient operation was not necessarily effective (tax returns are not correct according to tax law and IRS requirements), your customer base may quickly disappear and your ability to continue in business could be at risk.

In the second example (the effective office), everything and everyone may be very knowledgeable, thorough, correct, and expensive. When your customers begin to figure out that your charges are higher than those paid by some of their friends for similar services, your customer base may quickly disappear and your ability to continue in business could be at risk. As an effective manager can you afford to separate effectiveness and efficiency? Probably not. You need to pursue the right goals (effectiveness) and you need to use resources wisely (efficiency). Since the two are so closely interrelated, understanding the fine balance between them is an important part of how you become an effective manager.

5. Describe the factors that are reshaping and redefining management.

In today's world, managers are dealing with changing workplaces, ethical and trust issues, global economic and political uncertainties, and changing technology. Two areas of critical importance to managers are delivering high-quality customer service and encouraging innovative efforts.

It is easier to be effective if

It is easier to be effective if *one ignored efficiency*

Leading involves (4)

Leading involves 1. motivating employees 2. directing the activities of others 3. selecting the most effective communication channel 4. or resolving conflicts among members

Management is concerned about

Management is concerned about *minimizing resource costs while achieving the desired output*

1-3 In today's environment, which is more important to organizations—efficiency or effectiveness? Explain your choice.

Management is the process of getting things done, effectively and efficiently, through and with other people. Effectiveness and efficiency deal with what we are doing and how we are doing it. Efficiency means doing the task right and refers to the relationship between inputs and outputs. Effectiveness means doing the right task, which translates into goal attainment. Efficiency and effectiveness are interrelated. It's easier to be effective if one ignores efficiency. Good management is attaining goals (effectiveness) and doing so as efficiently as possible. Organizations can be efficient and yet not be effective. High efficiency is associated more typically with high effectiveness. Poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency.

2. Define management.

Management is the process of getting things done, effectively and efficiently, with and through other people. Efficiency means doing a task correctly ("doing things right") and getting the most output from the least amount of inputs. Effectiveness means "doing the right things" by doing those work tasks that help the organization reach its goals.

what are the two categories that organizational members of a firm fit into?

Managers and non-managerial employees

Managers are customarily classified in what 3 levels?

Managers are customarily classified as top, middle, or first line *See exhibit 1-2*

Managers are dealing with changing ____ (4) *which are factor reshaping a redefining management*

Managers are dealing with changing 1. workplace 2. ethical and trust issues 3. global economic uncertainties 4. and changing technology

Managers everywhere are likely to have to manage in changing ___, and the fact is that ___ managers ___ is changing

Managers everywhere are likely to have to manage in *changing circumstances*, and the fact is that *HOW* managers *manage* is changing

Managers must be careful that social media does not turn into a place where

Managers must be careful that social media does not turn into a place where *people boast, brag, or send one way messages to employees*

Managers must look at ___ not only to manage in an efficient and effective way but also responding strategically to a wide range of environmental and social challenges

Managers must look at *corporate social responsibility* not only to manage in an efficient and effective way but also responding strategically to a wide range of environmental and social challenges

Mintzberg found that the managers he studied (3)

Mintzberg found that the managers he studied 1. engaged in a large number of varied, unpatterned, and short-duration activities 2. there was little time for reflective thinking (due to interruptions) 3. half of these managers' activities lasted less than nine minutes

Mintzberg provided a categorization scheme for its called

Mintzberg provided a categorization scheme for *defining what managers do on the basis of actual managers on the job* called *Mintzburg's managerial roles*

Mintzburg concluded that managers preform ten __ but highly __ roles

Mintzburg concluded that managers preform ten *different* but highly *integrated* roles see exhibit 1-6

1-2 How do managers differ from non-managerial employees?

Non-managerial employees are people who work directly on a job or task and have no responsibility for overseeing the work of others. Non-managerial employees may be referred to by names such as associates, team members, contributors, or even employee partners. Managers, on the other hand, are individuals in an organization who direct and oversee the activities of other people in the organization. This distinction doesn't mean, however, that managers don't ever work directly on tasks. Some managers do have work duties not directly related to overseeing the activities of others.

Planning encompasses (3)

Planning encompasses (1) defining an organization's goals (2) establishing an overall strategy for achieving those goals, and (3) developing a comprehensive hierarchy of plans to integrate and coordinate activities

Planning is less carefully orchestrated in the ___ business

Planning is less carefully orchestrated in the *small* business

*Answer continued* To address the question of which is more important, maybe it depends. Doing the right tasks may keep a business in business—keep the doors open and meet payroll. Doing the wrong tasks may close the doors and send everyone home. What if you chose to emphasize effectiveness over efficiency? Suppose that it is one of your organization's goals to guarantee accurate preparation of income tax returns. You may decide to send all employees to training to learn the most up-to-date advice available regarding tax law. You may also see that all of your employees have training each year in any changes being implemented by the Internal Revenue Service. You might also create an infrastructure that would seem to be less efficient. For example, you might require that each tax return be reviewed by three separate accountants, one of whom must be a senior accountant, before it is released to the customer. You may require all accountants to work with a wide variety of tax returns so they will develop a broader base of expertise.

Suppose you are the owner and manager of a CPA firm. Over the years, your organization has developed a long-term relationship with a number of customers who come to you each year to prepare their income tax return. If you chose to emphasize efficiency over effectiveness, what might happen? You might create an infrastructure that at least in the short run would be very efficient. Suppose you have one person handle a customer's tax return preparation from start to finish (sounds like a silo). You could have your accountants specialize in the type of customers they work with so they could become even more efficient in completing the tax returns (we'll talk about job specialization more in the history module and chapter five). You could create a compensation system where accountants who could document their ability to complete tax returns in less time were rewarded. Let's come back to this concept in a minute.

The New world of managements resulted because of changing ____ and changing ____

The New world of managements resulted because of *changing workplaces* and *changing workforce*

The amount of time managers give each activity is

The amount of time managers give each activity is *not necessarily constant*

The differences in managerial roles are

The differences in managerial roles are *of degree and emphasis* but not of activity

The importance of managerial roles varies depending on ..

The importance of managerial roles caries depending on *the manager's level in the organization*

*An organization has a purpose and is made up of people who are grouped in some fashion* This distinct purpose is typically expressed in terms of ___ or ___

This distinct purpose is typically expressed in terms of *a goal* or *set of goals*

We see differences in __ and __ , but not activities, when managing a small businesses vs managing a large one

We see differences in *degree* and *emphasis* , but not activities, when managing a small businesses vs managing a large one

3. Describe what managers do.

What managers do can be described using three approaches: functions, roles, and skills/ competencies. The functions approach says that managers perform four functions: planning, organizing, leading, and controlling. Mintzberg's roles approach says that what managers do is based on the 10 roles they use at work, which are grouped around interpersonal relationships, the transfer of information, and decision making. The skills/ competencies approach looks at what managers do in terms of the skills and competencies they need and use. Four critical management skills are conceptual, interpersonal, technical, and political. Additional managerial competencies include aspects such as dependability, personal orientation, emotional control, communication, and so forth. All managers plan, organize, lead, and control although how they do these activities and how often they do them may vary according to level in the organization, whether the organization operates for profit or not-for-profit, the size of the organization, and the geographic location of the organization.

Which approach, functions or roles, takes the prize?

functions

high efficiency is associated more typically with ___

high efficiency is associated more typically with *more effectiveness*

Sustainability

integrating economic, environmental, and social opportunities into business strategies

Interpersonal skills

involved with working well with other people both individually and in groups