Thomson South-Western Wagner & Hollenbeck 5e

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Chapter TwoChapter Two

Management

And

Managers

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Chapter Overview This chapter examines the following topics:

– Defining Management• Three Attributes of Organizations• Formal Definition

– What Managers Do• Managerial Jobs• Managerial Skills• Managerial Roles• The Nature of Managerial Work

– A Framework of Management Perspectives• 1890-1940: The Scientific Management Perspective• 1900-1950: The Administrative Principles Perspective• 1930-1970: The Human Relations Perspective• 1960-Present: The Open Systems Perspective• A Contingency Framework

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Introduction

All businesses depend on the expertise of managers

It is important that members of modern societies know what management is, what mangers do, and how contemporary practices have developed

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Defining Management

Management, defined most simply, is the process of influencing behavior in organizations such that common purposes are identified, worked toward, and achieved

An organization is a collection of people and materials brought together to accomplish purposes not achievable through the efforts of individuals alone

Three attributes enable an organization to achieve this feat

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Three Attributes of Organizations Mission:

– Each organization works toward a specific mission, which is its purpose or reason for being

– An organization’s mission helps hold it together by giving members a shared sense of direction

Division of Labor:– In every organization, difficult work is broken into smaller

tasks; this division of labor can enhance efficiency by simplifying tasks and making them easier to perform

– The division of labor enables organized groups of people to accomplish tasks that would be beyond their physical or mental capacities as individuals

Hierarchy of Authority:– The hierarchy of authority is another common

organizational attribute

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Formal Definition

In fact, a “balancing act” is what managers do and what management is all about

Management is a process of planning, organizing, directing, and controlling organizational behaviors to accomplish a mission through the division of labor

This definition incorporates several important ideas:– Management is a process-an ongoing flow of activities-

rather than something that can be accomplished once and for all

– Managerial activities affect the behaviors of an organization’s members and the organization itself

– To accomplish a firm’s mission requires organization– The process of management can be divided into the four

functions of planning, organizing, directing, and controlling

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Planning Planning is a forward-looking process of deciding

what to do In planning, managers set three types of goals and

objectives that are linked together:– Strategic goals– Functional or divisional objectives– Operational objectives

Goals and objectives are performance targets that the members of an organization seek to fulfill by working together

Setting goals and objectives helps managers plan and implement a sequence of actions that will lead to their attainment

Goals and objectives also serve as benchmarks of the success or failure of organizational behavior

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Organizing As part of the organizing function managers

develop a structure of interrelated tasks and allocate people and resources within this structure

Grouping tasks and the people who perform them into organizational units is another step in the organizing process

Types of organizational units include:– Departments: includes people who

perform the same type of work– Divisions: includes people who do the

company’s work in the same geographic territory, who work with similar kinds of clients, or who make or provide the same type of goods and services

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Directing and Controlling The directing function

encourages member effort and guide it toward the attainment of organizational goals and objectives

Directing:– Is partly a process of

communicating goals and objectives to members

– Is learning employees’ desires and interests and ensuring they are satisfied in return for successful goal-oriented performance

– May require use of personal expertise and charisma to inspire employees to overcome obstacles

Controlling means evaluating the performance of the organization and its units to see whether the firm is progressing in the desired direction

If the evaluation reveals a significant difference between goals and actual performance, the control process enters a phase of correction in which managers return to the planning stage and the process of management continues anew

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What Managers Do

Managers are the people who plan, organize, direct, and control so as to manage organizations and organizational units

Managers:– Establish the directions to be pursued– Allocate people and resources among

tasks– Supervise individual, group, and

organizational performance– Assess progress toward goals and

objectives To succeed in these functions, managers

perform specific jobs, use a variety of skills, and fill particular roles

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Managerial Jobs Although all managers are responsible for fulfilling

the same four functions, not all of them perform exactly the same jobs

Most organizations have three types of managers:– Top managers: responsible for managing the entire

organization; their job consists mainly of performing the planning activities needed to develop the organization’s mission and strategic goals

– Middle managers: usually responsible for managing the performance of a particular organizational unit and for implementing top managers’ strategic plans

– Supervisory managers: are charged with overseeing the nonsupervisory employees who perform the organization’s basic work; they spend the greatest amount of time actually directing employees of all three of the managerial types

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Managerial Skills The skills managers use to succeed in their jobs are largely

determined by the combination of planning,organizing, directing, and controlling functions they must perform

Conceptual skills: include the ability to perceive an organization or unit as a whole, to understand how its labor is divided into tasks and reintegrated by the pursuit of common goals and objectives, to recognize important relationships between the organization or unit and its environment, involve the manager’s ability to think, and are most closely associated with planning and organizing

Human skills: include the ability to work effectively as a group member and build cooperation among the members of an organization or unit; all managers put these skills to use

Technical skills: involve understanding the specific knowledge, procedures, and tools required to make the goods or services provided by an organization or unit; more critical to supervisory managers overseeing employees

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Managerial Roles Managerial roles vary from one kind of manager to another Interpersonal roles: managers create and maintain interpersonal

relationships to ensure the well-being of their organizations or units– Figurehead role– Leader role– Liaison role

Informational roles: managers have unique access to internal and external information networks– Monitor role– Disseminator role– Spokesperson role

Decisional roles: managers determine the direction to be taken by their organizations or units– Entrepreneur role– Disturbance handler role– Allocator role– Negotiator role

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Differences Among Managers

The roles of liaison, spokesperson, and resource allocator are the most important in the jobs of top managers

For middle managers, leader, liaison, disturbance handler, and resource allocator roles are the most important

For supervisory managers, the leader role is the most important

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The Nature of Managerial Work

To further analyze the classification of managerial roles, Henry Mintzberg observed a group of top managers at work for several weeks

Based on his observations, Mintzberg concluded that manager’s roles often require them to work in short bursts rather than in long, uninterrupted sessions

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A Framework of Management Perspectives

The definition of management and manager introduced in this chapter are products of the North American culture and differ from the definitions used in other regions of the world

Modern management practices did not begin to develop until the Industrial Revolution of the 1700s and 1800s

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A Framework of Management Perspectives: 1890-1940

Among the first principles to be widely read were those of the scientific management perspective which reflected the idea that through proper management an organization could achieve profitability and survive over the long term in the competitive world of business– Frederick W. Taylor (1856-1915)– Frank and Lillian Gilbreth (1868-1924)– Henry Gantt (1861-1919)– Harrington Emerson (1853-1931)

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A Framework of Management Perspectives: 1900-1950

The administrative principles perspective emphasized increasing the efficiency of administrative procedures– Henri Fayol (1841-1925)– Max Weber (1864-1920)– James Mooney (1884-1957)– Lyndall Urwick (1891-1983)– Mary Parker Follett (1868-1933)

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A Framework of Management Perspectives: 1930-1970

The human relations perspective directed attention toward increasing employees growth, development, and satisfaction – Douglas McGregor (1906-1964)– Abraham Maslow – Frederick Herzberg

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A Framework of Management Perspectives: 1960-Present

The open systems perspective indicates that organizations whose subsystems can cope with the surrounding environment can continue to do business while those organizations whose subsystems cannot cope will not survive – Daniel Katz and Robert L. Kahn – Fred Emery and Eric Trist– Paul Lawrence, Robert Duncan, and Jay Galbraith

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A Contingency Framework

The contingency approach advocates that no single management perspective tells the whole story about management and managers and that no single theory, procedure, or set of rules is applicable to every situation