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MANAGEMENT AND MANAGERS
Only 200 years ago, before the industrial revolution, the concept of professional
management and manager did not exist
...
These managers coordinate and control
organizational resources, lead their people into the future, and help their organization
s respond to everything from technological changes to social expectations
...

Who are these managers and what do they do? Thomas C
...
Anita Rodick, founder of Great Britain’s
fast-growing retail chain The Body Shop, keeps international employees and
customers environmentally conscious while selling personal care products
...
Whether the goal is to make money, to save lives, or
to serve citizens, management is the key ingredient in achieving any organization’s
success
...
Some early theorists viewed management
simply as the ability to work through others
...
Today, management can be defined as the process of achieving
organizational goals through planning, organizing, leading, and controlling the
human, physical, and financial and information resources of the organization in
effective and efficient manner
...
Therefore,
a manager is someone who actively participates in the management process through
the four functions of planning, organizing, leading, and controlling the resources of the
organization
...

Depending on their situation and on their resources, managers stress one or another
of the four management functions to accomplish their goals
...
Tony M
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Harvey Mackay, Chairman and CEO of Mackay Envelope, focuses on leading and
motivating to build his business
...
Naturally, all of
these executives, and the managers at every level in every organization, shift their
focus from one management function to another as conditions dictate
...
Management involves working with
and through other people
...
That is one reason
management is as much an art as a science
...
As president of Romania’s
National Olympic Committee, she held provincial position that affected her country’s
entry into the 1992 Olympics
...
Among other tasks, she recommended the standards for team
athletes, facilitated the team’s training and travel funding, and recruited coaches and
trainers
...

Over the years, many management principles have been scientifically codified for
study and application
...
That’s why managers draw heavily on their
own experience as they balance the demands and opportunities of their jobs
...


MANAGEMENT AND ORGANIZATIONS
Wherever they live, whatever they do, organizations are part of people’s everyday lives
...
Whether they are run by the government, operated as a business, or
devoted to improving society, these organizations have a profound effect on everyone
...


Organization Defined
An organization is a group of people working together in a deliberately structured
situation to accomplish group goals
...
Obviously, not all organizations are alike, so to distinguish between
various types of organization, it is helpful to classify them according to their primary
purpose
...
Also, organizations can be categorized according to their
ownership as private sector (commercial businesses) or public sector (government)
organizations
...
Although most organization can be categorized according
to the dimensions of profit, goals and ownership, some organizations aren’t easily
classified because of mixed ownership or multiple goals
...


For-Profit and Not-for-Profit Organizations: A for-profit organization is an
organization that exists primarily to make money for its owners
...
Even when that don’t actually make a profit,
businesses still remain for-profit organizations because their goal is to be profitable
...
In
contrast, a not-for –profit organization primarily focuses on social, cultural, or political
goals rather than or making profits
...
Even though not-for-profit

organizations often sell goods and services and collect money from a variety of donors,
profit is not their objective
...
However this doesn’t imply that the line between forprofit and not-for-profit organization is absolutely clear
...


Manufacturing and Service Organization: A second way to classify
organization is according to their output of products, the goods or services they
produce
...
Goods are tangible, so they can be
touched, seen, measured, and otherwise physically evaluated by customers
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In contrast, service organizations produce
services, activities that provide some value to the recipient such as financial, legal,
medical, or recreational benefits
...
Moreover,
services are generally produced at the same time the customer uses them, so they
cannot be stored
...
Manufacturing organizations often bundle services along with tangible item
they produce, just as service organizations frequently include goods in their service
offerings
...

The combination of goods and services produced by manufacturing and service
organizations determines the unique challenges faced by their managers
...
Organizations such as elementary schools
and prison systems are considered part of the public sector because they are
controlled by the government
...
On the other hand,
organizations such as manufacturing plants and stores are generally considered to be
in the private sector because they are under private rather than government control
...


Management and Organizational Goals
Managers in all types of organizations are expected to apply management functions
and techniques to achieve their organizations’ goals
...
Because their main goal is profit, the managers of for-

profit organizations find that they must pay close attention to the needs and wants of
their customers if they wish to make money
...

Even organizations in the public sector have customers in the sense that individuals
and other organizations benefit from the services these organizations provide
...

Public sector managers sometimes find managing more difficult than private sector
managers because their organizational goals are more ambiguous, often debatable and
sometimes conflicting
...
For instance, U
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Also public sector managers often have difficulty gauging how
well they are achieving their goals, because some goals such as public safety or better
living standards are not easily measured
...


Organizational and personal performance:
Managers and organizations are continually evaluated to see how well they accomplish
organizational goals
...
compiles a yearly survey of America’s
fastest growing private companies; magazines rate international cities according to
cost of lodging or transportation
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Effectiveness is the measure of whether an organization is accomplishing its goals
...

Efficiency is the measure of whether an organization is using the appropriate amount
of resources attaining its goals
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To achieve high
performance, the organization must be both effective and efficient
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Top managers are generally
measured on the basis of how well their organizations and activities that help the
organization achieve overall goals
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When determining how well they have performed, managers must start by
understanding what customers or constituents expect
...
Drucker
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THE MANAGEMENT PROCESS AND THE NATURE OF
MANAGERIAL WORK
Management is composed of four basic functions that help managers achieve
organizational goals
...


Management Functions
The management process consists of four functions: planning, organizing, leading, and
controlling
...
Although society and business have both changed dramatically since these
basic functions were first proposed in 1916, with updated interpretations, they remain
the most popular approach to studying management
...
When
planning, management looks at where the organization should be in the future,
considers alternative strategies for getting there, and then select and implement the
best set of actions
...


Organizing: The second management function is organizing, which involves
establishing maintaining or changing a structure to accomplish the organization’s
goals, to define and assign tasks, and to coordinate people, and resources
...


Leading: The third management function is leading, the process of influencing and
motivating others to work together to achieve organizational goals
...


Controlling: The fourth management function is controlling, which involves setting
the standards, monitoring the progress, and making the adjustment needed to keep
the organization focused on its goals
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The Nature of Managerial Work
Whether they are presidents, deans, or supervisors, all managers perform tasks that
can be described and analyzed to one degree or another
...
During the past two
decades, researchers have developed additional frameworks to supplement the
traditional four-pronged management model and to clarify the nature of managerial
activities
...

 Fast pace, long hours: Managers, especially top managers, work at an
unrelenting pace
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 Brevity, variety, and discontinuity: In contrast to the image of managers
concentrating on a few key problems
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Although additional research has shown that not all managerial jobs fall into
this pattern, Mintzberg’s description fits the workday of many managers
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Managers favor spoken
communication because they can obtain up-to-date information and because
many of their contacts do not put all the details on paper
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He argued that all managers take on
these behavior patterns, or roles, in order to be effective in their jobs
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Category

Role
Figurehead

x
Interpersonal roles

Leader
Liason

Types of activities
Cermonial and symbolic duties
Hire, train, motivate and coordinate
others
Develop relatiops with other outside
work unit

Category

Role
M onitor

Informational roles

Disseminator
Spokesperson
Entrepreneur
Disturbance
handler

Decisional roles

Resource
allocator
Negotiator

Types of activities
Gather information from various
sources
Transmit information to other
managers
Transmit information to people
outside the organization
Initiate change to improve units or
find opportunities
Make changes to resolve
unanticipated problems
Decide which managers and projects
will receive resources and in what
proportion
Bargain with people outside the unit
to support goals

Interpersonal Roles: Three management roles flow directly from the authority of
the manager’s position in the organization
...
Interpersonal roles include the
manager as figurehead, the manager as leader and the manager as liaison
...

Serving as a figurehead, the manager may present awards or entertain
important customers
...

Liaison: The third interpersonal role a manager performs is a role of liaison,
building relationship with people outside the manager’s own unit
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So important are interpersonal roles that some managers devote a large portion of
their working days to these roles
...
Mintzberg observed that a large part of
managers’ job is devoted to informational roles in which the manager acquires,
processes, and communicates information
...
They also talk with people they meet in their liaison roles, and they
interact with the people who work in their own units
...






Disseminator: In the role of disseminator, managers share and distribute the
information they have acquired
...

Spokesperson: The third informational role is the role of spokesperson, in
which the manager provides information to people outside the organization
...


Decisional Roles: Some of the most important roles that managers play are
decisional roles, in which they examine alternatives and then make choices and
commitments
...
Mintzberg identified
four decisional roles: entrepreneur, disturbance handler, resource allocator, and
negotiator
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These changes may involve new products, new processes, or solution to
problems
...
In this role, managers make changes to solve
unanticipated that result from forces beyond their control
...
In the role of resource allocator, managers
make choices about how many people, how much money and how much of the
available materials will be used to achieve the organization’s goals
...

Negotiator: The negotiator role involves bargaining with others to support the
organization’s goals
...


Managerial Agendas and Networks
Another well-known study of managerial work, by Harvard professor John Kotter,
confirmed Mintzberg’s findings that sending and receiving information takes up a
considerable share of the manager’s day
...
Early in their tenure in each management

position, these manager devoted considerable time to network building, activities that
put them into contact with people inside and outside the organization, mirroring what
Mintzberg observed
...


Managerial Demands, Constraints and Choice
British researcher Rosemary Stewart also studies the nature of managerial work and
she concluded that managers have some flexibility in both what they do and how they
do it
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





Demands: Demands are the activities a manager is required to do and the
results that must be achieved
...
For instance, a specific goal
might be to decrease product failure by 10 percent, whereas a moral general
goal might be to improve employee morale
...
Constraints may include scarcity of resources, legal limits,
contractual restrictions on labor, technological limitations, and boundaries set
by the definition of manager’s work unit
...
Although all managers operate under demands and constraints, they
also have some leeway in deciding how much time to spend on specific tasks,
which tasks to delegate, how to do the work, and whether to share work with
claims
...
Once they understand the nature of their roles, managers can identify any roles
they used to develop further, and they can arrange their workdays to emphasize more
of the roles they wish to assume
...
Stewart’s research on what must be done (demands), the
environmental limits (constraints), and the various ways that managers can approach
their work (choices) provides inside into management decisions about specific tasks
and work assignments
...
Students of management and
managers already on the job can apply these observations in order to become more
skillful managers
...
Of course, job title and content vary
from organization to organization and from industry to industry, but managers can
generally be classified according to these two dimensions
...

General Managers: A general manager is responsible for all the functions and
activities of one unit of an organization
...

Functional Managers: In contrast to a General Manager, whose scope is broad, a
functional manager is responsible for only one organizational department
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Project Manager: A project manager is a manager who coordinates people and
activities across several departments in an organization to complete a specific project
...
As organizations try to respond more rapidly to the changing
environment, they are increasingly using project teams led by project managers who
can span the organization to accomplish specific goals
...
The military distinguishes management level
based on positions of officers and enlisted personnel; universities distinguish
management level based on position within a department, such as chairperson, and
position within the school, such as dean
...
Large organizations
tend to have multiple layers of managers, but many companies have eliminated some
of these layers in recent years as they attempt to control cost and increase efficiency
...



Top Managers: A top manager is one of a relatively small group of people at the
upper most level of the organization who manages the entire operations
...
In small businesses, the
owners are frequently the top managers, assuming most of all of the roles that
top managers at larger organizations usually perform
...
Top
managers also supervise the top layer of middle managers directly below them
under the organizational hierarchy, and they instill values that will help create
a productive work environment
...






Middle Managers: At the middle of organization pyramid is the middle
manager, a manager who implements the broad strategies devised by top
managers and who supervises and coordinates the work of first-line managers
...
In contrast to the longer-range perspective
of top managers, middle managers are more concerned with the near future
...

On the one hand, middle managers are expected to implement the strategies
defined by top management
...

Moreover, as organizations cut costs and simplify operations, middle managers
are being squeezed out in large numbers, a trend that is accelerating because of
the accessibility and sophistication of today’s information processing
technologies
...

First-Line-Managers: Someone in the first level of management who supervises
and coordinates the activities of non-management operating employees
...
Because first-line –managers are involved in the day to
day operations of the organization, they focus on the concerns of the present
and on what their groups will need in the immediate future
...
Because
they are closest to the actual operations of the organization, their management
activities are critical to the organization’s achievements of its goals
...
Among other traits, twenty-firstcentury managers will need a visionary sense of where their organizations should be
headed, a better communication link with employees, and a commitment to training
and developing their successors
...

Management expert Robert L
...
Because managers at
various level deal with diverse set of challenges as they strive to achieve their goals,
they apply these skills in differing proportions, depending on their level in the
organization
...
By applying conceptual skills to recognize
the likely consequences of any actions they take, effective managers able to
make decisions that best serve the needs of the organization, not just individual
departments
...
They can also envision
the impact on their industry and on their community
...

Managers need to be able to look at both good and bad situation confronting
the organization, whether they are considering increasing or declining sales, or
higher or lower enrollment
...
The ability to conceptualize
is particularly important for top managers who must consider the broad goals
and long term aims of their organizations and plan for the future
...
Managers at all levels need good
interpersonal skills because they depend on people inside and outside the
organization for help in achieving their goals
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They are also able to understand the needs
and motivations of others
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Technical Skills: Technical skills involve the tools, techniques, and knowledge
needed to perform proficiently in a particular field
...
First-Line
managers need particularly strong technical skills because they work directly

with people who use the tools and techniques of a specific specialty, such as
automotive assembly or classroom instructions
...
However, managers also need practice and assistance
from seasoned managers to gain knowledge about such intangible as interpersonal
and conceptual skills
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The researchers found that successful managers have broad experience,
demonstrate performance in more than one functional area have superior
interpersonal skills, and have the guidance of senior managers
...





Education: Formal education is clearly an important element in shaping
effective managers for today and tomorrow
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Over the past three decades, the
number of students earning bachelors and master’s degrees in business has
skyrocketed as more people go to school to learn management
...
In addition, many college and university deans believe that
business administration program can be improved by placing heavier emphasis
on some key areas, including decision making skills, computer skills, and risk
taking
...

In fact, if people stop the learning process once they have completed their
formal college or graduate education programs, they could soon be considered
obsolete professionally
...
Moreover, a recent survey shows that training in specific skills is
particularly important at certain management levels
...

To address such needs, many organizations arrange for training and
development programs to sharpen their managers’ skills
...
Some
academic and outside training experts even provide intuition and creative
training
...
A mentor is a more experienced manager who
helps a lower level manager or potential manager improve his or her managerial
skills, learn particular job duties, an learn more about the organization
...

Experience: Face it
...
Potential
managers can gain this experience in variety of ways
...
At the same time, large corporations frequently rotate new managers
through many departments to broaden their experience
...
BY the
time they become CEOs, top managers have spent an average of 17 years at
their companies; overall CEOs who head the 1000 largest US corporations
average 22
...

However, many executives are able to successfully translate their experience
from one organization to another
...
One of Johnson and
Johnson’s guidelines for success is that “you’ve got to be willing to fail”, says former
CEO James Burke
...
Bechtel, GE, Johnson and Johnson, and other
organizations create a supportive environment in which people are allowed to try
creative approaches without fear of punishment, to analyze their mistakes, and then
to try again until they succeed
...
Today and for years to come, management will be confronted with the escalating
demands of eight specific issues that have enormous impact on their organization:
productivity, quality, customer satisfaction, innovation, globalization, competition and
cooperation, social responsibility and ethics, and long term and short term horizons
...
Other
nations, notably Japan, are outpacing U
...
S managers need to keep the pressure on to stay
competitive
...

Unfortunately, U
...
Various sectors are returning their management attention to quality,
in an effort to stave off international competition
...
For organizations and their
managers, no goal is more important; without customers or constituents,
organizations have no purpose
...

Innovation: One of the today’s most pressing problems is how to stimulate and
institutionalize innovation are organizations of every type and size
...
Especially critical for managers is the ability to innovate in
response to fast changing events that pose problems or present opportunities
for their organizations
...
Even as American organizations discover the rewards of doing
business abroad, overseas challengers are enjoying the opportunities they find
in the vast U
...
Increasingly, managers must be able to juggle
international competition, overseas suppliers, worldwide investments, global
customers, and a multinational work force if they are to meet their
organizations’ goals in the coming years
...
With the many choices available to customers and
constituents today, if an organization is not continuously and aggressively
examining its competitive strategy, it can’t hope to be successful
...

Social Responsibility and Ethics: More and more, constituents and customers
are demanding that organizations act in socially responsible and ethical ways
...

Whether the lack of social responsibility and ethics is purposeful or due to
negligence, organizations are ultimately accountable for their impact on people,
on the community, and on society, and managers have a key role to play in this
area
...
For example, Corporations keep
one eye on the daily stock price while trying to maximize the quarterly earnings
report
...
Although short-term
results are important, managers can’t afford to think only of today; they need to
prepare for the future and to create a vision of what their organizations should
be achieving years from today
...
Throughout this book, these issues are discussed in
context of the management principles and techniques that managers use to confront
and overcome barriers to organizational success

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