Chapter 1 Principles of Management

Managers are important because
organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic
times, they’re critical to getting things done,
As organizations deal with today’s challenges,
managers play an important role in identifying critical issues and crafting responses.
The job of a manager is to ensure
that all the employees are getting their jobs done.
A Gallup poll has found that the single most important variable in employee productivity and loyalty isn’t pay, or benefits, or the workplace environment
it’s the quality of the relationship between employees and their direct supervisors.
Define a manager
someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.
Levels of management
Top managers, middle managers, first-line managers, nonmanagerial employees
Managers can be classified as
first-line, middle, or top management
First-line managers
manage the work of non-managerial employees who are typically are involved with producing the organization’s products or servicing the organization’s customers. They are called SUPERVISORS or even SHIFT MANAGERS, DISTRICT MANAGERS, DEPARTMENT MANAGERS, or OFFICE MANAGERS
Middle Managers
manage the works of first-line managers and can be found between the lowest and top levels of the organization. They are called REGIONAL MANAGER, PROJECT MANAGER, STORE MANAGER, or DIVISION MANAGER
Top managers
responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. They are called VICE PRESIDENT, PRESIDENT, MANAGING DIRECTOR, CHIEF OPERATING OFFICER, or CHIEF EXECUTIVE OFFICER
What is an organization?
A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone).
Characteristics of an Organization
A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone).
Management involves
coordinating and overseeing the work activities of others so their activities are completed efficiently and effectively.
Doing things right
Efficiency refers to
getting the most output from the least amount of inputs or resources.
is often described as “doing the right things,” that is, doing those work activities that will result in achieving goals
Whereas efficiency is concerned with the means of getting things done,
effectiveness is concerned with the ends, or attainment of organizational goals.
Efficiency (means)–resource usage–low waste
Effectiveness (ends)–goal attainment–high attainment
Management strives for:
Low resource waste (high efficiency) and High goal attainment (high effectiveness)
Four Functions of Management
Planning, Organizing, Leading, and Controlling
they set goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities.
Determining what needs to be done, how it will be done, and who is to do it–arranging and structuring work that the employees do to accomplish the organization’s goals
Motivating, leading, and any other actions involved in dealing with people
Monitoring activities to ensure that they are accomplished as planned
Management roles
refers to the specific actions or behaviors expected of and exhibited by a manager
Mintzburg identified
10 roles grouped around interpersonal relationships, the transfer of information, and decision- making.
Interpersonal roles
figurehead, leader, liaison
Informational Roles
Monitor, disseminator, spokesperson
Decisional Roles
Negotiator, resource allocator, disturbance handler, entrepreneur
Technical skills
are the job-specific knowledge and techniques needed to proficiently perform work tasks. These skills tend to be more important for first-line managers because they typically manage employees who use tools and techniques to produce the organization’s products or service the organization’s customers.
Human skills
involve the ability to work well with other people both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management.
Conceptual skills
are the skills managers use to think and to conceptualize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important
to top managers.
the reason that organizations exist
Social Media
forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content.
Innovation means
doing things differently, exploring new territory, and taking risks.
a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies
We can say with absolute certainty that management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they’re located.
Universality of Mangagement
Challenges of Being a Manager
May entail clerical types of duties, can be a thankless job, managers also spend significant amounts of time in meetings and dealing with interruptions, and managers often have to deal with a variety of personalities and have to make do with limited resources
Rewards of Being a Manager
Responsible for creating a productive work environment, recognition and status in your organization and in the community, attractive compensation in the form of salaries, bonuses, and stock options
Ancient management
Egypt (pyramids) and China (Great wall)
Adam Smith–The Wealth of Nations in 1776
Division of labor (job specialization)–the breakdown of jobs into narrow and repetitive tasks
Industrial Revolution
substitute machine power for human labor, created large organizations in need of management
Classical Approach
first studies of management, which emphasized rationality and making organizations and workers as efficient as possible.
the “father” of scientific management
Fredrick Winslow Taylor
Scientific management
an approach that involves using the scientific method to find the “one best way” for a job to be done.
a classification scheme for labeling basic hand motions
General administrative theory
an approach to management that focuses on describing what managers do and what constitutes good management practice
Principles of Management (Henri Fayol)
Fundamental rules of management that could be applied in all organizational situations and taught in schools
Bureaucracy (Max Weber)
a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
Organizational behavior
the study of the actions of people at work (why? great depression and unions)
Hawthorne Studies
a series of studies during the 1920’s and 30’s that provided new insights into individual and group behavior
Quantitative Approach
the use of quantitative techniques to improve decision making
Total quality management
a philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations
a set of interrelated and interdependent parts arranged in a manner that produces a unified whole
Closed System
systems that are not influenced by and do not interact with their environment (EX: a clock)
Open System
systems that interact with their enviornment
Contingency approach
a management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing