FUNDAMENTALS OF MANAGEMENT

Chapter 01
Managers, Organizations and Management

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 Managers work in organizations, which we define as a deliberate arrangement of people
brought together to accomplish a specific purpose.

Three characteristics that identify an organization are its:

WHO ARE 1. Goals
M A N AG E R S ? 2. People, and
WHERE DO THEY 3. Structure
WO R K ? Examples of organizations include:
• Your neighborhood convenience store
• The Dallas Cowboys football team
• Fraternities and sororities
• The Cleveland Clinic
• Global companies such as Nokia

• Organization
• A deliberate collection
of people brought
together to
accomplish some
specific purpose

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 WHAT THREE CHARACTERISTICS DO
ALL ORGANIZATIONS SHARE?
Three Characteristics of Organizations

Here we see the three common characteristics that organizations share:

1. Goals, which express the distinct purpose of a particular organization
2. People, who make decisions and engage in work activities to reach the organization’s goals, and
3. A deliberate structure, which systematically defines and limits its members’ behavior

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HOW ARE MANAGERS DIFFERENT FROM
NONMANAGERIAL EMPLOYEES?
Members of an organization can be divided into two
Nonmanagerial Employees categories:
1. Nonmanagerial employees work directly on a task and
• Work directly on tasks do not oversee the work of others. Examples include a cashier
in a home improvement store or someone who takes your
order at a coffee store. They may be called associates, team
• Not responsible for overseeing others’ members, or contributors.
2. Managers, who direct and oversee the activities of the
work people in the organization. A manager’s job isn’t about
personal achievement—it’s about helping others do their
Managers work. This distinction doesn’t mean, however, that managers
don’t ever work directly on tasks.

• Direct and oversee the activities of

others
• May have work duties not related to
overseeing others

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 WHAT TITLES DO MANAGERS HAVE?
Top managers are those at or near the top of an
Top Managers organization who make decisions about the direction
of the organization and establish policies and
philosophies that affect all organizational members.
• Make decisions about the direction of an organization Titles include: president, vice president, chancellor,
managing director, or chief executive officer.

Middle Managers Middle managers fall between the lowest and

highest levels of the organization. They often manage
other managers and sometimes nonmanagerial
• Manage other managers employees, and are responsible for translating the
goals set by top managers into specific detailed tasks
First-line Managers that lower-level managers oversee. Titles include:
agency head, unit chief, division manager, or project
leader.
• Direct nonmanagerial employees
First-line managers are responsible for directing
the day-to-day activities of nonmanagerial employees.
Team Leaders Titles include: supervisor, shift manager, or unit
coordinator.
• Manage activities of a work team Team leaders are a special category of lower-level
managers that have become more common as
organizations have moved to using employee work
teams to do work. They typically report to a first-
line manager.

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Management is the process of getting things done effectively and efficiently, with and
W H AT I S
through people. M A N AG E M E N T ?
Efficiency and effectiveness have to do with the work being done and how it’s being done.
Efficiency means doing a task correctly (“doing things right”) and getting the most
output from the least amount of inputs. It’s not enough, however, just to be efficient.
Managers are also concerned with completing
activities. In management terms, we call this effectiveness. Effectiveness means “doing • Management
the right things” by doing those work tasks that help the organization reach its goals

• The process of getting

things done effectively
and efficiently, with
and through people.

• Effectiveness: Doing
the right things

• Efficiency: Doing
things right

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 WHAT IS MANAGEMENT?
Efficiency and Effectiveness As illustrated here, while efficiency is concerned with the means of getting
things done, effectiveness is concerned with the ends, or attainment of
organizational goals.

The concepts are different, but interrelated. It’s easier to be effective if you
ignore efficiency. Poor management is often due to both inefficiency and
ineffectiveness OR effectiveness achieved without regard for efficiency.

Good management is concerned with both attaining goals (effectiveness) and

doing so as efficiently as possibl

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EFFICIENCY WITHOUT
EFFECTIVENESS

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 IS THE MANAGER’S JOB UNIVERSAL?
• Level in the Organization
• Profit vs. Not-for-profit
• Size of the Organization
• Management Concepts and National Borders
Until now, we’ve looked at management as a generic activity. If management is truly a generic discipline, then what a manager does should be essentially
the same whether he or she is a top-level executive or a first-line supervisor, in a business firm or a government agency; in a large corporation or a small
business; or located in Paris, Texas, or Paris, France. In reality, a manager’s job varies depending on several factors.

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 IS THE MANAGER’S JOB UNIVERSAL?

• Level in the Organization

• First we’ll examine how a manager’s level in the organization impacts the role.

• Although a supervisor and the CEO of a company may not do exactly the same things, it doesn’t mean that their jobs are
inherently different.The differences are of degree and emphasis but not of activity. That is, the decisions of a top manager
will have greater ramifications than those of a middle manager due to the content of the decision.
•
• All managers regardless of level, make decisions and plan, lead, organize, and control. But the amount of time a manager
gives to each activity is not necessarily constant. Also, the content of the managerial activities also changes with
the manager’s level.The figure illustrates this variability.

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 IS THE MANAGER’S JOB UNIVERSAL?
• As we see in this figure, managerial roles in small and large
businesses differ.

• For the purposes of our discussion, a small business is an

independent business having fewer than 500 employees that
doesn’t necessarily engage in any new or innovative practices and • Size of the Organization
has relatively little impact on its industry.

• The most important role of a small business manager is that of

spokesperson, performing externally in meeting with customers,
arranging financing with bankers, searching for new opportunities,
and stimulating change.
• The actions of a manager in a large organization, however, are
directed internally, deciding which organizational units get which
and how much of the available resources.

• A small business manager is more likely to be a generalist in a

less formal, less structured, and less complex environment than
his counterpart in a large organization.
• Again, as with organizational level, we see differences in degree
and emphasis but not in the activities that managers do.
Managers in both small and large organizations perform
essentially the same activities, but how they go about those
activities and the proportion of time they spend on each are
different.

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 WHAT DO MANAGERS DO?

4 FUNCTIONS MANAGEMENT ROLES SKILLS AND

APPROACH APPROACH COMPETENCIES

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 4
FUNCTIONS
APPROACH

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 In the late 1960s, Henry Mintzberg dispelled long-held notions that managers
were reflective thinkers who carefully processed information before making
decisions. His empirical study of 5 chief executives showed that managers
perform ten different but highly interrelated roles. He categorized these
actions around the following three general categories

M A N AG E M E N T
RO L E S
A P P ROAC H

Mintzberg’s Managerial
Roles

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 SKILLS AND COMPETENCIES

• Analyze and diagnose Working well with others Political adeptness Possessing expert job knowledge

Another way to describe what managers do is by looking at the skills they need for managing. Management researcher Robert L. Katz and others describe
four critical skills:

1. Conceptual skills: Analyzing and diagnosing complex situations to see how things fit together and to facilitate making good decisions.
2. Interpersonal skills: Working well with other people both individually and in groups by communicating, motivating, mentoring, and delegating.
3. Technical skills: Job-specific knowledge, expertise, and techniques needed to perform work tasks. (For top-level managers − knowledge of the industry
and a general understanding of the organization’s processes and products; For middle- and lower-level managers − specialized knowledge required in the
areas where they work—finance, human resources, marketing, computer systems, manufacturing, information technology).
4. Political skills: Building a power base and establishing the right connections so they can get needed resources for their groups

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