Fundamentals of Management

Tenth Edition

Chapter 1
Managers and
Management

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Learning Objectives
1.1 Tell who managers are and where they work.
1.2 Define management.
1.3 Describe what managers do.
1.4 Explain why it’s important to study management.
1.5 Describe the factors that are reshaping and redefining
management.

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Learning Objective 1.1
Tell who managers are and where they work.

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Who Are Managers? Where Do They
Work?
Organization
• A deliberate arrangement of people brought together to
accomplish a specific purpose
Common Characteristics of Organizations
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. structure, which systematically defines and limits its
members’ behavior.

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Exhibit 1-1 Three Characteristics of
Organizations

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How Are Managers Different from
Nonmanagerial Employees?
Nonmanagerial Employees
• Work directly on tasks
• Not responsible for overseeing others’ work
Managers
• Direct and oversee the activities of others
• May have work duties not related to overseeing others

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Exhibit 1-2 Management Levels

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What Titles Do Managers Have?
Top Managers
• Make decisions about the direction of an organization
Middle Managers
• Manage other managers
First-line Managers
• Direct nonmanagerial employees
Team Leaders
• Manage activities of a work team

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Learning Objective 1.2
Define management.

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What Is Management?
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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Exhibit 1-3 Efficiency and
Effectiveness

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Is the Manager’s Job Universal? (1 of 4)
• Level in the Organization
• Size of the Organization
• Profit vs. Not-for-profit
• National Borders

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Is the Manager’s Job Universal? (2 of 4)
Exhibit 1-6 Management Activities by Organizational Level
1. Level in the Organization

Source: Based on T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of

Management,” Industrial Relations 4, no. 2 (1965), p. 103.
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Is the Manager’s Job Universal? (3 of 4)
Exhibit 1-7 Managerial Roles in Small and Large Businesses
2. Size of the Organization

Source: Based on J. G. P. Paolillo, “The Manager’s Self-Assessments of Managerial Roles: Small vs. Large
Firms,” American Journal of Small Business (January–March 1984), pp. 61–62.

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Is the Manager’s Job Universal? (4 of 4)
Profit vs. Not-for-profit: The most important difference between
the two is how performance is measured. Profit, or the “bottom line,” is
an unambiguous measure of a business organization’s effectiveness.
Not-for-profit organizations don’t have such a universal measure, making
performance measurement more difficult. But even not-for-profit
organizations need to make money to continue operating.

National Borders:If management concepts were transferable across

countries, they would apply universally in all parts of the world. However,
research shows that while concepts transfer easily among many English-
speaking countries, management concepts will likely need to be modified
when dealing with India, China, Chile, or other countries with economic,
political, social, or cultural environments that differ from those of the so-
called free-market democracies.

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Learning Objective 1.3
Describe what managers do.

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What Do Managers Do?
Ways to Look at What Managers Do
• Four Functions Approach
• Management Roles Approach
• Skills and Competencies

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 Four Functions Approach
Exhibit 1-4 Four Management Functions
• Planning
• Organizing
• Leading
• Controlling

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Exhibit 1-5 Management Roles
Approach

Source: Based on Mintzberg, Henry, The Nature of Managerial Work,

1st edition, © 1973.
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Which Approach Takes the Prize?

Functions 

Roles

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What Skills Do Managers Need?

Source: Simon/Fotolia
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Learning Objective 1.4
Explain why it’s important to study management.

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Why Study Management? (1 of 2)
We all have a vested interest in improving how
organizations are managed.

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 Why Study Management? (2 of 2)
Most people will either manage or be managed.

Studying management provides knowledge about

managerial skills and responsibilities, how organizations
function, and how people behave in the workplace.

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Learning Objectives 1.5
Describe the factors that are reshaping and redefining
management.

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 Welcome to the New World of
Management!
Changing Workplaces + Changing Workforce

Managers today are dealing with changing workplaces, a changing

workforce, global economic and political uncertainties, and changing
technology. Distributed labor companies are changing the face of temporary
work. Some 30-45 percent of the world’s work force works from home or are
virtual employees. More and more businesses are relying on apps and
mobile-enhanced Websites to run their businesses.

Managers everywhere are likely to have to manage in changing

circumstances, which means that how managers manage is changing. We
will now look at four specific changes that are increasingly important to
organizations and managers everywhere: customers, innovation, social
media, and sustainability.

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Why Are Customers Important?
Consistent, high-quality customer service is essential to
survival.

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 Why Is Innovation Important?
“Nothing is more risky than not innovating.”

In today’s challenging environment, innovation is critical and

managers need to understand what, when, where, how, and why
innovation can be fostered and encouraged throughout an
organization. Managers need to be personally innovative and to
encourage their employees to be innovative.

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Importance of Social Media
Connecting with customers: More than a billion people use social
media platforms like Facebook, Twitter, YouTube, LinkedIn, etc.
Managers need to understand and manage the power of social
media, because employees use them for both personal and work
purposes.

• Managing human resources: More and more businesses are

turning to social media not just as a way to connect with
customers but also as a way to manage their human resources
and tap into their innovation and talent. But it’s not without its
perils. Managers need to remember that social media is a tool
that needs to be managed to be beneficial.

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Managers Matter!
Employee productivity, loyalty, and engagement hinge
on employee/manager relationships.

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Copyright

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