Чизунгу Фредиане

1. What three basic levels of management can be identified in most organizations?

How precise are the lines differentiating these levels? In which of the basic areas
do managers work?

The three basic levels of management typically found in most organizations are:

1. Top managers: this level consists of executives responsible for the overall
direction and strategic planning of the organization. They make high-level
decisions, set long-term goals, and allocate resources. Examples of top
management positions include CEO, CFO, COO, and CIO.
2. Middle managers: this level comprises managers who oversee specific
departments or divisions within an organization. They implement the strategies
set by top management and coordinate the activities of lower-level managers and
employees. Examples of middle management positions include plant manager,
regional managers, or divisional managers.
3. First-line managers: this level consists of managers who supervise frontline
employees and ensure that daily tasks are completed effectively. They are
responsible for monitoring performance, addressing employee concerns,and
communicating with top and middle management. Examples of first-line
managers include supervisors, team leaders, and foremen.

Regardless of their level, managers may work in various areas within an organization.
In any given firm, for example, these areas may include marketing, financial,
operations, human resources, administrative, and others.

Marketing managers work in areas related to the marketing function-getting consumers

and clients to buy the organization’s products or services (be they Samsung smart-
phones, Toyota automobiles, Vogue magazines, Associated Press news reports,
streaming video rentals from Netflix, or lattes at Starbucks). These areas include new
product development, promotion, and distribution. Given the importance of marketing
for virtu- ally all organizations, developing good managers in this area is critical.

Financial managers deal primarily with an organization’s financial resources. They are
responsible for activities such as accounting, cash management, and investments. In
some businesses, especially banking and insurance, financial managers are found in
large numbers.

Operations managers are concerned with creating and managing the systems that create
an organization’s products and services. Typical responsibilities of operations man-
agers include production control, inventory control, quality control, plant layout, and
site selection.

Human resources managers are responsible for hiring and developing employees. They
are typically involved in human resource planning, recruiting and selecting employees,
training and development, designing compensation and benefit systems, formulating
per- formance appraisal systems, and discharging low-performing and problem
employees.

Administrative, or general, managers are not associated with any particular manage-
ment specialty. Probably the best example of an administrative management position is
that of a hospital or clinic administrator. Administrative managers tend to be generalists;
they have some basic familiarity with all functional areas of management rather than
specialized training in any one area.

2. What four basic functions make up the management process? How are they
related to one another?

Regardless of level or area, management involves the four basic functions of planning
and decision making, organizing, leading, and controlling.

Planning and Decision Making - in its simplest form, planning means setting an
organization’s goals and deciding how best to achieve them. Decision making, a part of
the planning process, involves selecting a course of action from a set of alternatives.
Planning and decision making help managers maintain their effectiveness by serving as
guides for their future activities. In other words, the organization’s goals and plans
clearly help managers know how to allocate their time and resources. is devoted to
planning and decision-making activities and concepts.

Organizing - once a manager has set goals and developed a workable plan, his or her
next management function is to organize people and the other resources necessary to
carry out the plan. Specifically, organizing involves determining how activities and
resources are to be grouped. Although some people equate this function with the
creation of an organization chart.
Leading - the third basic managerial function is leading. Some people consider leading
to be both the most important and the most challenging of all managerial activities.
Leading is the set of processes used to get members of the organization to work together
to further the interests of the organization.
Controlling - the final phase of the management process is controlling, or monitoring
the organization’s progress toward its goals. As the organization moves toward its
goals, managers must monitor progress to ensure that it is performing in such a way as
to arrive at its “destination” at the appointed time.

3. Identify several of the important skills that help managers succeed. Give an
example of each. How might the importance of different skills vary by level and
area within an organization?

To carry out these management functions most effectively, managers rely on a number
of different fundamental management skills, of which the most important are technical,
interpersonal, conceptual, diagnostic, communication, decision-making, and time man-
agement skills.

Technical Skills - technical skills are necessary to accomplish or understand the specific
kind of work done in an organization. Technical skills are especially important for first-
line managers. These managers spend much of their time training their subordinates and
answering questions about work-related problems. If they are to be effective managers,
they must know how to perform the tasks assigned to those they supervise. While Reed
Hastings now spends most of his time dealing with strategic and management issues, he
also keeps abreast of new and emerging technologies and trends that may affect Netflix.

Interpersonal Skills - managers spend considerable time interacting with people both
inside and outside the organization. For obvious reasons, then, they also need
interpersonal skills—the ability to communicate with, understand, and motivate both
individuals and groups. As a manager climbs the organizational ladder, he or she must
be able to get along with subordinates, peers, and those at higher levels of the organiza-
tion. Because of the multitude of roles that managers must fulfill, a manager must also
be able to work with suppliers, customers, investors, and others outside the
organization.

Conceptual Skills - conceptual skills depend on the manager’s ability to think in the
abstract. Managers need the mental capacity to understand the overall workings of the
organization and its environment, to grasp how all the parts of the organization fit
together, and to view the organization in a holistic manner. This ability allows them to
think strategically, to see the “big picture,” and to make broad-based decisions that
serve the overall organization. Reed Hastings’s idea to extend the payment model used
by health clubs to the video rental market came from his strong conceptual skills.
Diagnostic Skills - successful managers also possess diagnostic skills—skills that
enable them to visualize the most appropriate response to a situation. A physician diag-
noses a patient’s illness by analyzing symptoms and determining their probable cause.
Similarly, a manager can diagnose and analyze a problem in the organization by
studying its symptoms and then developing a solution.

Communication Skills - communication skills refer to the manager’s abilities to both

effectively convey ideas and information to others and effectively receive ideas and
information from others. These skills enable a manager to transmit ideas to subordinates
so that they know what is expected, to coordinate work with peers and colleagues so
that they work well together, and to keep higher-level managers informed about what is
going on. In addition, communication skills help the manager listen to what others say
and understand the real meaning behind e-mails, letters, reports, and other written
communication.

Decision-Making Skills - effective managers also have good decision-making skills.

Decision-making skills refer to the manager’s ability to correctly recognize and define
problems and opportunities and to then select an appropriate course of action to solve
problems and capitalize on opportunities. No manager makes the right decision all the
time. However, effective managers make good decisions most of the time. And, when
they do make a bad decision, they usually recognize their mistake quickly and then
make good decisions to recover with as little cost or damage to their organization as
possible. Managers at Netflix made a poor decision when they decided to split their
services into two businesses, but they quickly reversed themselves before things got too
bad.

Time Management Skills Finally, effective managers usually have good time man-
agement skills. Time management skills refer to the manager’s ability to prioritize work,
to work efficiently, and to delegate work appropriately. As already noted, managers face
many different pressures and challenges. It is too easy for a manager to get bogged
down doing work that can easily be postponed or delegated to others. When this
happens, unfortunately, more pressing and higher-priority work may get neglected.

4. Briefly describe the principles of scientific management and administrative

management. What assumptions do these perspectives make about workers? To
what extent are these assumptions still valid today?

Scientific Management and Administrative Management are two classic approaches

to organizational theory that emerged in the late 19th and early 20th centuries.

Scientific Management

 Principles:
o Develop a science for each element of work to replace rule-of-thumb
methods.
o Scientifically select and train workers.
o Cooperate with workers to ensure work is performed according to
scientific principles.
o Divide work between management and workers, with management
planning and organizing, and workers executing tasks.
 Assumptions about workers: Workers are motivated primarily by economic
incentives and are rational beings who will work harder if they are paid more.

Administrative Management

 Principles:
o Division of labor: Breaking down work into smaller, specialized tasks.
o Authority and responsibility: Clear lines of authority and responsibility.
o Discipline: Obedience and respect for rules and regulations.
o Unity of command: Each employee should receive orders from only one
superior.
o Unity of direction: All activities should be coordinated toward a common
goal.
o Subordination of individual interests to the general interest: The
organization's goals should take precedence over individual goals.
o Remuneration: Fair and equitable compensation for employees.
o Centralization: Decision-making authority should be centralized at the
top levels of the organization.
o Scalar chain: There should be a clear chain of command from top to
bottom of the organization.
o Order: A place for everything and everything in its place.
o Equity: Fair treatment of employees.
o Stability of tenure: Employees should have a secure job to encourage
loyalty and efficiency.
o Initiative: Employees should be encouraged to take initiative and be
creative.
o Esprit de corps: Foster a sense of unity and teamwork among employees.
  Assumptions about workers: Workers are motivated by economic incentives
and are rational beings who will follow rules and regulations if they are clearly
defined and enforced.

The assumptions made by both scientific management and administrative

management about workers have been challenged in subsequent decades. While
economic incentives can be a powerful motivator, modern theories of motivation
emphasize the importance of factors such as recognition, autonomy, and a sense of
purpose. Additionally, these approaches often neglect the social and psychological
needs of workers.

While some of the principles of scientific management and administrative management

remain relevant today, particularly in terms of efficiency and organization, they are no
longer considered sufficient for managing modern organizations. Contemporary
management theories emphasize the importance of human relations, employee
empowerment, and adaptability to a rapidly changing business environment.

5. Describe the systems perspective. Why is a business organization considered an open

system?

The systems perspective views an organization as a complex system of interrelated

parts that work together to achieve a common goal. It emphasizes the importance of
understanding how the various components of an organization interact and influence
each other.

A business organization is considered an open system because it interacts with its

external environment. This means that it is influenced by factors outside of its
control, such as:

 Customers: The needs and preferences of customers can significantly impact a

business's success.
 Suppliers: The availability and cost of resources from suppliers can affect a
business's operations.
 Competitors: The actions of competitors can influence a business's market
share and profitability.
 Government: Government regulations and policies can impact a business's
operations.
 Technology: Technological advancements can create new opportunities or
challenges for a business.
 Economic conditions: Economic factors, such as inflation, recession, and
interest rates, can affect a business's performance.
 Social factors: Social trends and cultural changes can influence consumer
behavior and market demand.

By recognizing the interconnectedness of these external factors, businesses can better

anticipate and respond to changes in their environment. The systems perspective also
emphasizes the importance of internal coordination and integration to ensure that all
parts of the organization are working together effectively to achieve its goals.