PART ONE

C H A P T E R O N E

1
Introduction
to Management
and Organizations

Lecture Outline

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Introduction to Chapter One
Who Are Managers?
What Is Management?
What Do Managers Do? In their study of this introductory
Management Functions chapter, your students will explore the
Management Roles concepts of management, managers,
Interpersonal Roles and organizations in todays dynamic
Informational Roles business environment. To illustrate the
Decisional Roles varied backgrounds, skills, and
Management Skills characteristics of successful managers,
Technical Skills
the opening case study, A Managers
Human Skills
Dilemma, features Jovita Carranza,
Conceptual Skills
How the Managers Job Is Changing
vice president of air operations at
Importance of Customers United Parcel Service (UPS). Having
Importance of Innovation climbed the career ladder from her first
What Is an Organization? job at UPS as a night-shift clerk to her
Why Study Management? current executive position, Carranza
The Universality of Management knows the importance of teamwork,
The Reality of Work efficiency, continuous development of
Rewards and Challenges of Being a workers, and communication with
Manager employees on every level. She
emphasizes the value of listening as she
tells students, I value the input of the
staff and the front-line workers. One of
my [approaches] is to sit back and
listen and observe. You learn more by
not speaking . . ..

Chapter One 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. At the close of the
chapter, text authors Robbins and
Coulter discuss the universality of
management in a global business
environment. Students learn that they
will have an opportunity in this course
to develop management skills that are
universally valuable to all organizations.

A variety of PowerPoint slides, including both original text art and

newly created images, are available for your use in enhancing the
presentation of Chapter One materials to your students.

ANNOTATED OUTLINE

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1. INTRODUCTION TO CHAPTER ONE
Chapter One introduces the concepts of management,
managers, and organizations through the exploration of five
major questions:
A. Who are managers?
B. What is management?
C. What do managers do?
D. What is an organization, and how is the concept of an
organization changing?
E. Why study management?

NOTES Materials I Plan to Use:

2. WHO ARE MANAGERS?

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. Todays
employees need to be cross-trained and multiskilled.

NOTES Materials I Plan to Use:

Q&A 1.1 If many traditional workers jobs now include managerial activities, why is the
formal position of manager still needed in organizations?

B. 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.

NOTES Materials I Plan to Use:

Q&A 1.2 Why have organizations traditionally been visualized as pyramids? Does this
pyramidal form accurately reflect the new realities of organizational structure?

C. Managers can be classified by their level in the

organization, particularly in traditionally structured

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 organizationsthose shaped like a pyramid (see Exhibit
1-1 and PowerPoint slide 1-7).
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-line 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.

NOTES Materials I Plan to Use:

3. WHAT IS MANAGEMENT?
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 1-2
and PowerPoint slide 1-9).
3. Effectiveness is completing activities
so that organizational goals are attained and is
often described as doing the right things (see
Exhibit 1-2 and PowerPoint slide 1-9).

NOTES Materials I Plan to Use:

Q&A 1.3 Are effective organizations necessarily efficient? Are efficient organizations always
effective?

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 ?
Thinking Critically About Is Lying Ever Okay?
Ethics
In this critical thinking exercise, students are asked to consider ethical dilemmas
associated with lying. After introducing the exercise, you might want to ask students to
consider these issues individually, then in small groups of two or three other students in
the class.

The small-group discussion could be followed by a discussion involving the entire class.
You might ask students: What factors did you consider in attempting to make ethical
decisions for these situations? How might a written organizational code of ethics assist
managers in making these decisions?

4. WHAT DO MANAGERS DO?

No two managers jobs are exactly alike. But management
writers and researchers have developed some specific
categorization schemes to describe what managers do. Chapter
One examines these five categorization schemes: functions,
roles, skills, managing systems, and situational analysis.
A. Management Functions. Henri Fayol, a French
industrialist in the early 1900s, proposed that managers
perform five management functions: POCCC (plan,
organize, command, coordinate, control).
1. Over time, Fayols five management functions have
been reorganized into four functions, which provide
a foundation for the organization of many current
management textbooks (see Exhibit 1-3 and
PowerPoint slide 1-11).
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
organizations 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.
3. The management process is the set of ongoing
decisions and work activities in which managers
engage as they plan, organize, lead, and control.

NOTES Materials I Plan to Use:

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?
Focus on Leadership Leaders, Managers, or Both?

To introduce this critical thinking exercise, ask students the following questions: Are all
leaders managers? Are all managers leaders? What makes an individual a leader? Why
do todays organizations need managers who have strong leadership skills?

Ask students to work in small groups to compile a list of at least ten qualities they think
an effective leader should possess. (Encourage students to think about previous or
present employers or work experiences to help identify and describe these qualities.)
When students have had an opportunity to complete their lists, ask each group to share
their findings with the entire class in a discussion of vital leadership traits and behaviors.

Throughout the discussion, you may want to emphasize the value of the students real-life
work experiences in understanding the importance of these qualities.

B. Management Roles. In the late 1960s, Henry Mintzberg

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 1-4).
a. Interpersonal roles include figurehead,
leadership, and liaison activities.
b. Informational roles include monitoring,
disseminating, and spokesperson activities.
c. Decisional roles include entrepreneur,
disturbance handler, resource allocator, and
negotiator.
2. Follow-up studies of Mintzbergs role categories in
different types of organizations and at different
managerial levels within organizations generally
support the idea that managers perform similar
roles.
3. Although the functions approach represents the
most useful way to describe the managers job,
Mintzbergs roles give additional insight into
managers work. Some of the ten roles do not fall
clearly into one of the four functions, since all
managers do some work that is not purely
managerial.

NOTES Materials I Plan to Use:

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 C. Management Skills. Managers need certain skills to
perform the challenging duties and activities associated
with being a manager.
1. Robert L. Katz found through his research in the
early 1970s that managers need three essential
skills (see Exhibit 1-5 and PowerPoint slide 1-
15).
a. Technical skills are job-specific knowledge
and techniques needed to proficiently
perform specific tasks.
b. Human skills are the ability to work well
with other people individually and in a group.
c. Conceptual skills are the ability to think
and to conceptualize about abstract and
complex situations.
2. Twenty-one skill-building modules appear at the
back of the textbook following Chapter 19. These
skills reflect a broad cross-section of the important
managerial activities that are elements of the four
management functions (see Exhibit 1-6).

NOTES Materials I Plan to Use:

Self-Assessment Library Exercise in Emotional Intelligence

Managers with good human skills can get the best from their people.
They know how to communicate, motivate, lead, and inspire
enthusiasm and trust. Self-Assessment #I.E.1 Whats My Emotional
Intelligence Score? provides students with an assessment of their
emotional intelligence, which is necessary for effective management
and leadership. In this exercise, students may want to reflect on the
following questions:
n What did you discover about yourself as you answered this
questionnaire? Did anything surprise you about your
assessment?
n How can you use this information in helping you to plan your
career?
n How will this information help you as a manager?
Each of the questionnaires in the Self-Assessment Library is designed
to help students understand their own characteristics. Since self-

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awareness is essential for personal growth and development, effective
management is based on our ability to be in tune with our own
personal characteristics. By understanding our unique strengths and
weaknesses, we can develop a more effective managerial style.

D. How the Managers Job Is Changing. Significant changes

in the internal and external environments have a
measurable impact on management.
1. Security threats, corporate ethics scandals, global
economic and political uncertainties, and
technological advancements should be discussed.
2. While all managers will not have to manage under
tragically demanding circumstances, how
managers manage in todays workplace is
changing.

E. Two significant changes facing todays managers:

1. Importance of customers to the managers job
2. Importance of innovation to the managers job

NOTES Materials I Plan to Use:

Self-Assessment Library Exercise in Handling Ambiguity

Managers have always had to deal with changes in the internal and
external environments of their organizations. Often, complete
information is not available. Self-Assessment #I.A.4. How Well Do I
Handle Ambiguity? contributes to students understanding of their
present ability to manage change. Students may want to reflect on the
following questions:
n What did you find out about yourself in doing this exercise? Did
anything surprise you about your assessment?
n How can you use this information in helping you to plan your
career?
n How will this information help you as a manager?
Emphasize that effective management is based on our ability to be in
tune with our own characteristics. By understanding our unique
strengths and weaknesses, we can develop a more effective
managerial style.

5. WHAT IS AN ORGANIZATION?

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 Organizations need managers. An organization is a deliberate
arrangement of people to accomplish some specific purpose.
A. Organizations share three common characteristics: (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. (see Exhibit 1-9 and
PowerPoint slide 1-25).

NOTES Materials I Plan to Use:

B. Although these three characteristics are important in

defining what an organization is, the concept of an
organization is changing. Exhibit 1-10 and PowerPoint
slide 1-26 list some important differences between the
traditional organization and the new organization. These
differences include: flexible work arrangements,
employee work teams, open communication systems, and
supplier alliances. Organizations are becoming more
open, flexible, and responsive to changes.

NOTES Materials I Plan to Use:

C. Organizations are changing because the world around

them has changed and is continuing to change. These
societal, economic, global, and technological changes
have created an environment in which successful
organizations must embrace new ways of getting their
work done.

NOTES Materials I Plan to Use:

?
Managing Your Career The Future Looks Bright!

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 If your classroom has Internet capabilities, visit the Web site of the U.S. Department of
Labors Occupational Outlook Handbook at [www.bls.gov/oco]. (If you are unable to
access the Internet in your classroom, you may give students the address of the Web site
and encourage them to visit the site individually outside of class.) Click on the
Management link and ask students to suggest a few career fields for the class to explore
together at this site.

By briefly examining these links, you can show students how to use this valuable resource
to learn about the following aspects of a career they are interested in pursuing:

Training and education needed

Earnings
Expected job prospects
What workers do on the job
Working conditions

6. WHY STUDY MANAGEMENT?

The importance of studying management in todays dynamic
global environment can be explained by looking at the
universality of management, the reality of work, and the
rewards and challenges of being a manager.
A. The Universality of Management. Without a doubt,
management is needed in all types and sizes of
organizations, at all organizational levels, and in all
organizational work areas throughout the world.
1. We interact with organizations each day of our
lives. Every product we use, every action we take,
is provided by or affected by organizations. Well-
managed organizations develop a loyal customer
base, grow, and prosper.
2. Students who study management gain the ability to
recognize and encourage good management
practices; just as important, they learn to recognize
poor management and how to correct it.

NOTES Materials I Plan to Use:

Q&A 1.4 How would you respond to a friend who says, I know some very successful
managers who never took a course in management. Cant you just learn this stuff on
the job?

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 B. The Reality of Work. After graduation, students will either
manage or be managed. A course in management
provides insight and understanding about behaviors of
supervisors and the internal operations of organizations.
An individual does not have to aspire to be a manager in
order to benefit from taking a course in management.

NOTES Materials I Plan to Use:

C. Rewards and Challenges of Being a Manager (see Exhibit

1-12)
1. Challenges
a. Managers may have difficulty in effectively
blending the knowledge, skills, ambitions,
and experiences of a diverse group of
employees.
b. A managers success typically is dependent
on others work performance.
2. Rewards
a. Managers have an opportunity to create a
work environment in which organizational
members can do their work to the best of
their ability and help the organization
achieve its goals.
b. Managers often receive recognition and
status in the organization and in the larger
community; influence organizational
outcomes; and receive appropriate
compensation.
c. Knowing that their efforts, skills, and abilities
are needed by the organization gives many
managers great satisfaction.

NOTES Materials I Plan to Use:

Self-Assessment Library Exercise in Motivation to Manage

Being a manager in todays dynamic workplace provides many

challenges. Self- Assessment #III.B.4 How Motivated Am I to

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Manage? is designed to increase students appreciation of the
challenges associated with management, particularly where limited
resources and a variety of personalities exist. Students may want to
reflect on the following questions:
n What did you discover about yourself in doing this exercise? Did
anything surprise you about your assessment?
n How can you use this information in helping you to plan your
career?
n How will this information help you as a manager?

Answers to Thinking About Management Issues

1. Is your course instructor a manager? Discuss in terms of

managerial functions, managerial roles, and skills.

Course instructors (in contrast to individuals who hold positions

such as department head) are not usually classified as
managers. In most situations, a course instructor does not fall
within the definition of a manager when utilizing managerial
functions, mainly because students are clients rather than
employees. but, more appropriately, clients. In some cases, an
instructor has little input about course content or how it is to be
taught. In these instances, the instructor makes few managerial
decisions.

In terms of managerial roles, course instructors may be involved

in some ways in the interpersonal, informational, and decisional
roles. For example, a course instructor could be seen as a liaison
(interpersonal role), a monitor and disseminator (both
informational roles), and a disturbance handler and negotiator
(both decisional roles).

Regarding managerial skills, course instructors certainly need

technical skillsknowledge about the latest research and
conceptual developments in a particular discipline. They also
need significant human skills as they interact with their
students. To a limited extent, the instructor utilizes conceptual
skills as courses are planned or as departmental curriculums are
debated.

2. The managers most basic responsibility is to focus people

toward performance of work activities to achieve desired
outcomes. Whats your interpretation of this statement? Do
you agree with this statement? Why or why not?

This statement means that a managers job or responsibility is

to coordinate and/or focus subordinates energies toward
performance outcomes that will result in the achievement of
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 organizational goals. By definition, management is coordinating
and overseeing the work activities of others so that their
activities are completed efficiently and effectively. Therefore,
yes, most managers and management scholars would agree
with this statement. Coordinating others work activities is what
distinguishes a managers job from a nonmanagerial one.

3. Why do you think the skills of job candidates have become so

important to employers? What are the implications for (a)
managers in general, and (b) you, personally?

Skills of job candidates have become important to employers

because of todays demanding and rapidly changing workplace.
Employees need to be self-motivated to constantly upgrade their
skills and take on extra work outside of their own specific job
area.

Because of the increasing importance of employee skills, the

managers job of coordinating and overseeing the work activities
of others becomes more challenging. However, it also means
that the employees a manager manages may acquire more
skills and can be more involved in designing ways to do their
jobs effectively and efficiently. Finally, organizations need to
provide continuous skills training and development for their
employees so that they can upgrade their skills and enhance the
products and services of the organization.

The personal implications that students cite will likely vary. At

this point, you may want to introduce the skill-building modules
found at the end of the textbook following Chapter 19.

4. Is there one best style of management? Why or why not?

No, theres probably not one single best style of management.

Organizational situations vary and what works best in one
organization may not necessarily work best in another. Point out
to students that they will find a variety of managerial styles
illustrated throughout the textbook in different boxes, examples,
and cases. Each individual tends to develop his or her own
preferred style of managing.

5. What characteristics of new organizations appeal to you? Why?

Which do not? Why?

Exhibit 1-10 lists some of the important differences between

the traditional organization and the new organization. These
differences include flexible work arrangements, employee work
teams, open communication systems, and supplier alliances.
Organizations are becoming more open, flexible, and responsive

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 to changes. Students should reflect on these new elements and
defend their selections.

6. In todays environment, which is more important to

organizationsefficiency or effectiveness? Explain your choice.

Both are integral to effective management. Management refers

to the process of coordinating and integrating work activities so
that theyre completed efficiently and effectively with and
through other people. Efficiency is getting the most output from
the least amount of inputs, the goal of which is to minimize
resource costs (see Exhibit 1-2 and PowerPoint slide 1-9).
Effectiveness is completing activities so that organizational
goals are attained; often described as doing the right things
(see Exhibit 1-2 and PowerPoint slide 1-9).

7. Can you think of situations where management doesnt matter

to organizations? Explain.

No. The principle of the universality of managementthe

certainty that management is needed in all types and sizes of
organizations, at all organizational levels, and in all
organizational work areasapplies here.

8. Management was, is, and always will

be the same thing: the art of getting things done. Do you
agree? Why or why not?

As students will learn in the study of Chapter Two, modern

management has evolved from its formal beginning in the early
1900s from a strictly scientific perspective concerned with
finding the one best way to perform a job. Although the goal of
management still centers on the art of getting things done,
things for todays manager include ideas and intangible
products to an increasing degree. Our imagination is the only
limit to our prediction of the services and innovations that will
be managed by future managers as they coordinate and oversee
work activities in the art of getting things done.

WORKING TOGETHERTeam-Based Exercise

This exercise challenges your students, in small groups, to develop a

list of characteristics possessed by effective managers. For each
characteristic, have students identify the management function in
which each characteristic should be classified.

To facilitate this in-class group activity, students should first prepare a

list outside of class identifying three managers with whom they have

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worked (a current or previous boss, a family member they have
watched closely, for example). Each student should prepare a list
independently. Next, for each of the three managers, ask the students
to identify a minimum of three characteristics that made the individual
a good manager and at least one characteristic that could have been
improved. Then, have the students identify the management function
where each desirable characteristic and each undesirable
characteristic should be classified. Ask your students to bring their lists
to class to use in a small-group setting.

In the group setting, have students compile a comprehensive list of

desirable manager characteristics and a list of undesirable
managerial characteristics. Then, ask them to identify the
management function in which each characteristic should be classified.

When all of the lists have been completed, ask students to predict
which management function will be identified most frequently and
which function will be identified least often. Share the results of each
groups work to determine if their predictions were accurate.

Answers to Case Application Questions

Managing the Virus Hunters

1. Keeping professionals excited about work that can be routine

and standardized and chaotic is a major challenge for Vincent
Weafer. How could he use technical, human, and conceptual
skills to maintain an environment that encourages innovation
and professionalism among the virus hunters?

Technical skills are job-specific knowledge and techniques

needed to proficiently perform specific tasks. Finding employees
who have the diverse and highly refined technical skills needed
by Symantec challenges Weafer to recruit individuals from
around the globe. As he says, If you find them in any part of
the world, you just go after them. Using human skills, including
strong communication skills and understanding of different
cultures, Weafer creates a work environment where employees
respect and trust management and one another. This trust
facilitates the teamwork needed to solve problems and produce
innovative products. The conceptual skills needed by every
manager can be used by Weafer to envision the big picture for
Symantec and influence and empower his employees to follow
the organizations mission. As he leads by example, Weafer
fosters both innovation and professionalism among the virus
hunters at Symantec.

2. What management roles would Vincent be playing as he (a) had

weekly security briefing conference calls with coworkers around

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 the globe, (b) assessed the feasibility of adding a new network
security consulting service, (c) kept employees focused on the
companys commitments to customers?

Mintzbergs ten managerial roles are broadly grouped into three

categories: interpersonal, informational, and decisional. As he
conducts weekly conference calls with employees around the
globe, Vincent Weafer plays the information role of disseminator,
which is essential in coordinating work activities among
employees who work in international locations. When Vincent
assesses the feasibility of adding a new network security
consulting service, he performs the decisional roles of
entrepreneur and resource allocator. Keeping employees focused
on the companys commitments to customers involves the
interpersonal roles of figurehead, leader, and liaison. His
effectiveness in playing interpersonal roles is a key determinant
of Vincents ability to motivate his employees to achieve
company goals in a dynamic industry.

3. Go to Symantecs Web site [www.symantec.com] and look up

information about the company. What can you tell about its
emphasis on customer service and innovation? In what ways
does the organization support its employees in servicing
customers and in being innovative?

Visiting Symantecs Web site, students can clearly see that

Symantec is focused primarily on the customer. The Corporate
Responsibility link highlights the companys belief in the
importance of customer service and innovation by first stating:
We are customer driven; we earn trust; we innovate; we take
action. Named one of the 100 Best Corporate Citizens by
Business Ethics magazine for five consecutive years, Symantec
demonstrates its commitment to customers, employees, and to
other stakeholders through responsible business practices. The
company presents its annual Visionary Awards to Symantec
customers around the world in recognition of their application of
technology to minimize IT risk and achieve major organizational
goals. Symantecs dedication to its employees is evidenced by
the atmosphere of trust and empowerment and the companys
inclusion in Fortune magazines Best Companies to Work For.

4. What could other managers learn from Vincent Weafer and

Symantecs approach?

Both managers of goods-producing companies and managers of

services organizations could benefit from emulating Symantecs
example of commitment to diversity and an inclusive work
environment. The strength gained by the company through the
diversity of over 15,500 employees around the globe is reflected
in a statement on the corporate Web site: Our diversity is our
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 greatest strength and is a business imperative tied directly to
our bottom line. Other managers could learn the value of
innovation and a strong emphasis on people as a key to
organizational success.

ADDITIONAL CHAPTER INFORMATION

Managerial pay is an area of interest to many students. Compensation

packages for managers typically reflect the value placed on effective
and efficient managerial skills. What salary ranges can a student
expect to make as a manager? The answer to this question depends
upon the level in the organization, the managers education and
experience, the type of business conducted by the organization,
comparable pay standards in the community, and the effectiveness of
the individual in managing. You can explore managerial compensation
information by accessing the following Web sites:

n American Compensation Association

http://www.ahrm.org/aca/aca.htm
n Securities and Exchange Commissionhttp://www.sec.gov
n Executive Pay Watchhttp://www.paywatch.org
n Business Weekhttp://www.businessweek.com
n Bud Crystals Executive Pay Reports
http://www.crystalreport.com

In addition, managerial compensation information can be found in

current publications such as Fortune, The Wall Street Journal, and
Business Week. You might wish to have students locate a current
article about an organizational manager. Ask students to read the
article and present a report to the class, describing how that manager
performs the managerial functions and how that manager performs
Mintzbergs management roles.

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