Chapter 1 THE MANAGERS JOB The purpose of this chapter is to provide an overview of the nature of managerial work.

The entire text has a similar purpose. It is therefore necessary to touch upon topics in Chapter 1 that are covered again in later chapters. The chapter provides information on key managerial topics such as (a) the meaning of the term manager, (b) an overview of the process of management, (c) managerial roles, and (d) a summary of the major developments in management thought. After studying the material in this chapter, you should be able to: 1.Explain what the term manager means, and identify different types of managers. 2.Describe the process of management, including the functions of management. 3.Describe the various managerial roles. 4.Identify the basic managerial skills and understand how they can be developed. 5.Describe how managers have to synthesize five mind-sets to accomplish their work. 6.Identify the major developments in the evolution of management thought. KEY TERMS AND PHRASES ___________________________________________________________ Manager Management Top-level managers Middle-level managers First-level managers Entrepreneur Small-business owner Team leader Multiculturalism Scientific management Scientific management Administrative management Human resources approach to management Hawthorne effect Quantitative approach to management Systems perspective Entropy Synergy Contingency approach to management

________________________CHAPTER OUTLINE____________________ I. WHO IS A MANAGER? A manager is a person responsible for the work performance of group members. Management is the process of using organizational resources to achieve objectives through the functions of planning, organizing and staffing, leading, and controlling.

2 A. Levels of Management 1.Top-Level Managers Top-level managers are executives who are empowered to make major decisions affecting the present and future of the firm. 2.Middle-Level Managers Middle-level managers are all those who are neither executives nor first-level supervisors. They conduct most of the coordination activities within the firm and disseminate information to upper and lower levels. 3.First-Level Managers Managers who supervise operatives are referred to as first-level managers or supervisors. II. TYPES OF MANAGERS A. Functional and General Managers Functional managers supervise the work of employees engaged in specialized activities, such as accounting, information systems, and marketing. General managers are responsible for the work of several different groups performing a variety of functions. Plant managers and CEOs are general managers. B. Administrators An administrator is a manager who works in a public or nonprofit organization (including educational institutions) rather than in a business firm. C. Entrepreneurs and Small-Business Owners Entrepreneurs are people who begin a new business based on an innovative idea for a product or service. Entrepreneurship is defined along three dimensions: innovativeness, risk taking, and proactiveness. Similar to an entrepreneur, the owner and operator of a small business becomes a manager when the firm grows beyond a few people. D. Team Leaders A team leader coordinates the work of a small group of people, while acting as a facilitator and catalyst. III. THE PROCESS OF MANAGEMENT A. Resources Used by Managers Managers use four types of resources: 1.Human Resources 2.Financial Resources 3.Physical Resources 4.Information Resources B. The Four Managerial Functions Managers must use the four major resources in such a way that goals are reached.

3 To accomplish this feat, the manager relies on the functions of planning, organizing and staffing, leading, and controlling. 1.Planning Planning involves setting goals and figuring out ways of reaching them. 2.Organizing and Staffing Organizing and staffing is the process of making sure the necessary human and physical resources are available to carry out a plan and achieve organizational goals. Staffing focuses on the human resources. 3.Leading Leading is the managerial function of influencing others to achieve organizational objectives. Leadership is the interpersonal aspect of management, yet at the top level also includes formulating strategy. 4.Controlling Controlling is the managerial function of ensuring that performance conforms to plans. It is comparing actual performance to a predetermined standard. Controlling also helps determine in the original plan needs revision, given the realities of the day. Managerial level influences how much time managers spend on the four managerial functions. For example, first-level managers spend the most time in face-to-face leadership of employees. IV. THE SEVENTEEN MANAGERIAL ROLES A role is an expected set of activities or behaviors stemming from ones job. Roles are another important way of understanding managerial work. A. Planning 1.Strategic Planner 2.Operational Planner B. Organizing and Staffing 3.Organizer 4.Liaison 5.Staffing Coordinator 6.Resource Allocator 7.Task Delegator C. Leading 8.Figurehead 9.Spokesperson 10.Negotiator 11.Motivator and Coach 12.Team Builder 13.Team Player

4 14.Technical Problem Solver 15.Entrepreneur D. Controlling 16.Monitor 17.Disturbance Handler E. Managerial Roles Currently Emphasized Managerial work has substantially shifted away from the controller and director roles to those of coach, facilitator, and supporter. F. The Influence of Management Level on Managerial Roles A managers level influences which roles are likely to be engaged in most frequently, such as top managers emphasizing strategic planning. V. FIVE KEY MANAGERIAL SKILLS A. Technical Skill Technical skill involves an understanding of and proficiency in a specific activity that involves methods, processes, procedures, or techniques. B. Interpersonal Skill Interpersonal skill is the managers ability to work effectively as a team member and to build cooperative effort. Communication skills and multiculturalism are among interpersonal skills. Many managers at all levels ultimately fail because their interpersonal skills are not good enough for the demands of the job. C. Conceptual Skill Conceptual skill is the ability to see the organization as a total entity. The need for conceptual knowledge is expected to grow. D. Diagnostic Skill Diagnostic skill involves investigating a problem and then choosing a course of action to solve it. E. Political Skill Political skill is primarily the ability to acquire the power necessary to achieve your objectives. Managers high in political skills understand people well, and believe that they can control the outcomes of their interactions with people. VI. DEVELOPMENT OF MANAGERIAL SKILLS Experience and education are both important for the development of management skills. You can develop managerial skills by studying the text and following a general learning model: 1.Study conceptual knowledge and behavior guidelines. 2.Use conceptual knowledge demonstrated by examples.

5 3.Do skill-development exercises. 4.Obtain feedback on skill utilization, or performance, from others. 5.Practice frequently what you have learned, including making adjustments from the feedback. Skill development is important because the managers job is more demanding than ever, and the workplace keeps changing. VII.THE MANAGER AS AN INTEGRATOR OF FIVE MINDSETS A new analysis believes that managers need to synthesize five different mind-sets or perspectives at the same time. Each mind-set links to one of the five key tasks of managers. 1.Managing self: the reflective mind-set. 2.Managing organizations: the analytical mind-set. 3.Managing context: the worldly mind-set. 4.Managing relationships: the collaborative mind-set. 5.Managing change: the action mind-set. VIII. THE EVOLUTION OF MANAGEMENT THOUGHT Management has a practice has an almost unlimited history, with the formal study of management starting during the Industrial Revolution. A. Classical Approach to Management The classical school of management encompasses scientific management and classical management. The focus of scientific management was on the application of scientific methods to increase individual workers productivity. Administrative management was concerned primarily with how organizations should be managed and structured. The core of management knowledge is based on the classical school. B. The Human Resources Approach The human resources approach emphasizes improving management by understanding the psychological makeup of people. The human resources (or behavioral) approach has had a profound influence on management, and much of this book is based on behavioral theory. Three direct cornerstones of the human resources approach are as follows: 1. The Hawthorne Studies The often-mentioned Hawthorne effect is the tendency of people to behave differently when they receive attention because they respond to the demands of the situation. 2.Theory X and Theory Y of Douglas McGregor Theory X makes the traditional assumption that workers have to be prodded and controlled. Theory Y is a more positive, optimistic set of assumptions about workers. 3.Maslows Need Hierarchy Humans are motivated by efforts to satisfy a hierarchy of needs.

6 C. Quantitative Approaches to Management The quantitative approach to management is a group of methods to managerial decision making that is based on the scientific method. Scientific management provided the foundation for the quantitative approach to management. D. The Systems Perspective The systems perspective is a way of viewing problems more than a specific approach to management. It is based on the concept that an organization is a system, or an entity of interrelated parts. The organization interacts with the outside world. If you adjust one part of the system, other parts will be affected automatically. Entropy and synergy are two important systems concepts. E. The Contingency Approach The contingency approach to management emphasizes that there is no one best way to manage people or work. A method that leads to high productivity or morale in one situation may not achieve the same results in another. The contingency approach is derived from the study of leadership and organization structure. F. The Information Technology Era Information technology has modified the work of managers in many ways including electronic communication with workers, and e-commerce. Practicing managers can use all six major developments in management thought.

______________________________REVIEW QUESTIONS______________________ Matching A. Management B. Top-level managers C. Functional managers D. Team leader ____ 1.Necessary to obtain power ____ 2.The collaborative mind-set ____ 3.Individual and situational differences must be examined before deciding upon a course of action ____ 4.Necessary for thinking of an organization as a

7 total entity E. Process F. Leading G. Operational planner H. Conceptual skill I. Human resources approach J. Contingency approach K. General manager L. Political skill M. Entrepreneurship N. Managing relationships O. Planning Multiple Choice ____ 1.To qualify as a manager, a person would have to a. have a full-time job. b.develop business strategy. c. be responsible for the work of at least five workers. d.have the authority to commit resources. 2.First-level managers are most likely to supervise a. middle-level managers. b.top-level managers. c. administrators. d.operatives. 3.A key task of a general manager is to a. supervise the work of operatives. b.conduct quality inspections. ____ 5.Setting goals and figuring out how to achieve them ____ 6.Improving management through understanding psychological makeup of workers ____ 7.Supervise employees in specialized activities ____ 8.Supervises several different functions ____ 9.Influencing others to achieve organizational objectives ____10. Deals with day-by-day activities of the organization ____11. Acts as facilitator and coach ____12. Has the dimensions of innovativeness, risk taking, and proactiveness ____13. Series of actions that achieves something ____14. Force that makes things happen ____15. Executives within the organization

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8 c. be responsible for groups performing different functions. d.fill in for absent workers. ____ 4.A team leader is most likely to a. engage in strategic planning. b.act as a facilitator and catalyst. c. spend considerable time disciplining employees. d.administer management controls. 5.The managerial function of influencing others to achieve organizational objectives is called a. planning. b.leading. c. controlling. d.organizing. 6.An example of a staffing activity is a. designing a job. b.negotiating a budget. c. hiring people. d.giving people authority to do a job. 7.Being a resource allocator is one of the ____________ roles of management. a. planning b.controlling c. organizing and staffing d.leading 8.Being a disturbance handler is one of the ____________ roles of management. a. planning b.controlling c. organizing and staffing d.leading 9.Leading is influencing others to a. find a balance between work and family life. b.organize and staff properly. c. plan, organize, and control. d.achieve organizational objectives.

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____ 10.Multiculturalism is a skill that enables one to a. become bilingual. b.market to multiple cultural groups. c. conduct business with people from different cultures. d.speak at least three languages fluently.

9 ____ 11.A team leader is a. the new name for a middle manager. b.more of a facilitator than a powerful boss. c. an individual contributor. d.the first level of middle management. ____12. Management skills are best developed through a. participation in sports. b.a combination of education and experience. c. experience. d.education. Which of the following approaches to management was concerned primarily with how organizations should be managed and structured? a. scientific management b.administrative management c. the human resources approach d.the information technology era The worldly mind-set of a manager is associated most closely with which one of the following managerial tasks? a. managing self b.managing relationships c. managing context d.managing change The human resources approach to management is likely to emphasize a. finding a good way to motivate workers. b.understanding the interaction of the firm with the environment. c. the most efficient methods of performing work. d.quantitative approaches to decision making.

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True/False ____ ____ ____ ____ ____ 1.Management pulls together resources to get important activities accomplished. 2.Top-level managers often make decisions about the future of the firm. 3.A true entrepreneur founds and operates an innovative business. 4.A team leader typically coordinates the work of a large group of people and exercises tight control over them. 5.The four major functions carried out by managers are planning, organizing and staffing, leading, and controlling.

10 ____ 6. Leading is concerned primarily with making sure the necessary human and physical resources are available to carry out a job. ____ ____ ____ 7.To carry out the control function, a manager compares actual performance to a predetermined standard. 8.Part of the strategic planner role is to help establish long-range plans for the total organization. 9.The collaborative mind-set of a manager is mostly concerned with managing organizations.

____ 10.The worldly mind-set of a manager is mostly concerned with managing context. ____ 11.Scientific management focuses on managing the financial side of the business to achieve the maximum return on investment. ____ 12.An important implication of the Hawthorne studies is that workers will perform better if they think management cares about them. ____ 13.The quantitative approach to management relies on the scientific method. ____ 14.The contingency approach to management emphasizes universal principles that can be applied to most situations. ____ 15.Two economists said that the impact of the Internet on business has been similar to the impact of electricity at the beginning of the twentieth century. Fill in the Blanks 1.A manager has the __________ __________ to commit organizational resources. 2.____________ ____________ are responsible for the work of several different groups that perform a variety of functions. 3.A ____________ ____________ describes where the organization is headed. 4.A ____________ ____________ coordinates the work of a small group of people, while acting as a facilitator and catalyst. 5.To achieve an objective, the manager uses resources and carries out four major ____________ ____________. 6.____________ ____________ are the data that the manager and the organization use to get the job done.

11 7.Leading is influencing others to achieve ____________ ____________. 8.Executives ordinarily spend much more time on ____________ ____________ than do middle- or first-level managers. 9.The role of ____________ ____________ is categorized under controlling because it involves changing an unacceptable condition to an acceptable, stable condition. 10.Multiculturalism is the ability to work effectively and conduct business with people from ____________ ____________. 11. ____________ ____________ is the ability to acquire the power necessary to reach objectives. 12.Each of the managerial mind-sets is associated with one of the five _________ __________ of managers. 13.The emphasis in scientific management is to increase individual __________ __________. 14. 15. Synergy means that the ____________ is ____________ than the sum of the ____________. The primary strength of the human resources approach to management is that it encourages managers to take into account the ____________ ____________.

________THOUGHT STOPPERS AND ESSAY QUESTIONS_____________________ 1.Why isnt the study of management just common sense? 2.Identify and describe the major functions of management. 3. In what way does a modern manager differ from a traditional manager? 4.Describe the general learning model for developing managerial skills. 5.Explain how the human resources approach contributes to the practice of management (or helps the manager get the job done). ________________________APPLICATION EXERCISE_________________________ A description of a manager in action is presented in this section. Your assignment is to identify what functions and roles are illustrated by the managers behavior. Given that the text focuses

12 more on the major functions than on roles, look first for functions. For example, if the manager interviews a job applicant, the manager is engaging in the organizing and staffing function. At the same time, he or she is engaged in the staffing role. Use the right margin to make notations about the functions and roles. Your notation might take this form: __________________________________________________________________________

Sheila Dillon interviewed an applicant for anorganizing function, administrative position at 4:30 p.m. (staffing function) _________________________________________________ _________________________ Sharon Dillon of United Mutual looked over her daily calendar and realized that today would be another busy day. Ever since she was promoted to office manager, Dillons schedule had become hectic. Rarely did she have an unscheduled moment. Dillons first appointment was a meeting with the vice-president of finance, who had some important news to communicate to all managers. The vicepresident proceeded to explain that the company was now broadening its mission. In the past it was a bricks and mortar financial services firm. The company would now offer all of its services online as well as through agents. All managers were invited to contribute input to help bring about these changes. When Dillon returned to her office, there were two group members waiting outside, Jeff Kissel and Trudy Velayo. They told Dillon that they had an important problem that needed to be resolved. Kissel objected to Velayos playing the radio during working hours, claiming it was interfering with his concentration. Velayo countered that it was her civil right to play the radio softly. It took Dillon 30 minutes to resolve this conflict. Velayo agreed that when others were in the office she would use ear phones while listening to her radio. Kissel reciprocated by agreeing to stop his complaining about the presence of a radio. Next, Dillon worked on the department budget. She was concerned that the group had used 90 percent of the computer supplies budget for the year in only seven months. Dillon knew that something had to be done about this problem. She would try to think of a solution by the end of the week. In the meantime she would encourage all department employees to be more conservative about printing so many e-mail documents and attachments with graphics. As Dillon looked up from her desk, she noticed a water stain on the ceiling. She called to her assistant, Maxine Parsons. Dillon pointed to the problem and asked Parsons to take care of it. Just get the problem taken care of, she said. Do whatever needs to be done.

2 Dillons attention then turned again to the budget. It became apparent to her that the department would be exceeding its budget on computer supplies and other office supplies. She recognized that the department would cease to function if there were no money for office supplies. At lunch Dillon met the new manager of human resources. One purpose of the luncheon was to explain the functions of her department to the new manager. Dillon also wanted to make sure that her department received favorable consideration for high-quality job applicants. At 4:30 that afternoon Dillon interviewed a candidate for the position of administrative assistant reporting to her. The candidate looked promising, but Dillon told herself she should not make such a major decision late in the day. She would want at least one more meeting with the candidate before making a final decision.

_____________________SUGGESTED READING_______________________________ Drucker, Peter. What Makes an Effective Executive? Harvard Business Review, June 2004, pp. 58-63. Fuller, Joseph. A Letter to the Chief Executive. Harvard Business Review, October 2002, pp. 94-99. Hansen, Moten T., and von Oetinger, Bolko. Introducing T-Shaped Managers: Knowledge Managements Next Generation. Harvard Business Review, March 2001, pp. 106116. Krass, Peter. The Book of Management Wisdom: Classic Writings by Legendary Managers. New York: John Wiley and Sons, 2000. Loehr, Jim, and Schwartz, Tony. The Making of a Corporate Athlete. Harvard Business Review, January 2001, pp. 120-128. Mintzberg, Henry. The Managers Job: Folklore and Fact. Harvard Business Review, MarchApril 1990, pp. 163176 (originally published JulyAugust 1975). Nash, Laura, and Stevenson, Howard. Success That Lasts. Harvard Business Review, February 2004, pp. 102-109. www.mapnp.org/library/mgmnt/history.htm (A brief history of management theories.) www.hoovers.com (Learn basic facts about most public business firms.)