Chapter 1 Management and Organizations
In this introductory chapter, your students will explore the concepts of management, manager skills, and organizations in today’s dynamic business environment.
1.1 Explain why managers are important to organizations.
1.2 Tell who managers are and where they work.
1.3 Describe the functions, roles, and skills of managers.
1.4 Describe the factors that are reshaping and redefining the manager’s job.
1.5 Explain the value of studying management.
A MANAGER’S DILEMMA
To illustrate the varied backgrounds, skills, and characteristics of successful managers, the opening case study, “A Manager’s Dilemma,” features Lisa Greene, the general manager of a restaurant in Springfield Missouri. The restaurant industry employees 12.7 million US workers, that’s a lot of greeters, cooks, server’s, and people who clean up after customers. It’s Lisa’s job to lead employees in this challenging industry where managers face long hours, tighter budgets, and expectations to keep business running smoothly. The question at the end of this opening asks students to put themselves in Lisa’s place. This opening dilemma should be used to encourage discussion on the role of managers and the reality that the workplace and the expectation of managers are evolving. You should find that many of your students have experience working in the restaurant industry and they have stories about the demanding nature of the industry, what is expected of them from their managers, and if they have served in a supervisory role what is expected of managers.
Chapter 1 continues with an examination of the functions of management, managerial roles and skills, the diverse nature of modern business organizations, and rewards and challenges offered by a career in management.
1.1 WHY ARE MANAGERS IMPORTANT?
Managers have an important impact on both employees and the organizations in which they work. The following three reasons address their importance:
A. Organizations need their managerial skills and abilities more than ever in these uncertain, complex, and chaotic times.
B. Managers are critical to getting things done.
C. Managers do matter to organizations! According to a Gallup poll of ten’s of thousands of managers and employees, the relationship of manager to their employees and supervisors is single most important variable in employee productivity and loyalty.
1.2 WHO ARE MANAGERS AND WHERE DO THEY WORK?
Managers may not always be what we expect. Today’s managers range from 18 to 80, they‘re found in a variety of different types of organizations, and they perform a variety of jobs from the top to the bottom of the organization. By The Numbers shows some of the latest results of opinions of management. Statistics also show an increasing number of women in management, however, while their number is increasing it is mostly in the area of lower and middle management, not top management.
Who Is a Manager?
A. The changing nature of organizations and work often requires employees in formerly nonmanagerial jobs to perform managerial activities. Students who are preparing for careers on any organizational level can benefit from acquiring management skills. Today’s employees need to be cross-trained and multiskilled.
C. How do we define a manager? A manager is someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. However, keep in mind that managers may have additional work duties not related to coordinating the work of others.
D. Managers can be classified by their level in the organization, particularly in traditionally structured organizations—those shaped like a pyramid (see Exhibit 1-1).
1. First-line managers (often called supervisors) are located on the lowest level of management.
2. Middle managers include all levels of management between the first level and the top level of the organization.
3. Top managers include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.
Where Do Managers Work?
A. An organization is a deliberate arrangement of people to accomplish some specific purpose. Organizations share three common characteristics (See Exhibit 1-2): (1) each has a distinct purpose; (2) each is composed of people; and (3) each develops some deliberate structure so members can do their work.
B. Although these three characteristics are important in defining what an organization is, the concept of an organization is changing. These changes include: flexible work arrangements, employee work teams, open communication systems, and supplier alliances. Organizations are becoming more open, flexible, and responsive to changes.
Future Vision The Working World in 2020
While it’s impossible to accurately predict what the future holds for organizations, several experts predict trends to emerge. In The Tipping Point, Malcolm Gladwell sees several changes based on shifting demographics in the US population. Pointing to increasing birthrates for minorities, Gladwell predicts that the majority (white) employee will become a minority in the next forty years. This will lead to changes in hiring, selection, compensation and underlying assumptions about customers.
1.3 WHAT DO MANAGERS DO?
A. Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively.
1. Coordinating and overseeing the work of others is what distinguishes a managerial position from a nonmanagerial one.
2. Efficiency is getting the most output from the least amount of inputs in order to minimize resource costs. Efficiency is often referred to as “doing things right” (see Exhibit 1-3).
3. Effectiveness is completing activities so that organizational goals are attained and is often described as “doing the right things” (see Exhibit 1-3).
B. Management Functions.
Henri Fayol, a French industrialist in the early 1900s, proposed that managers perform five management functions: POCCC (planning, organizing, commanding, coordinating, and controlling).
1. Over time, Fayol’s five management functions have been reorganized into four functions, which provide a foundation for the organization of many current management textbooks (see Exhibit 1-4).
a. Planning involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.
b. Organizing involves arranging and structuring work to accomplish the organization’s goals.
c. Leading involves working with and through people to accomplish organizational goals.
d. Controlling involves monitoring, comparing, and correcting work performance.
2. In practice, managing is not always performed in a sequence as outlined above. Since these four management functions are integrated into the activities of managers throughout the workday, they should be viewed as an ongoing process.
C. Management Roles.
Henry Mintzberg, a management researcher, conducted a precise study of managers at work. He concluded that managers perform 10 different roles, which are highly interrelated.
1. Management roles refer to specific categories of managerial behavior (see Exhibit 1-5).