Topic 1 Managers work in organizations, which we define as a deliberate arrangement of people brought together to accomplish a specific purpose.

Three characteristics that identify an organization are its: 1. 2. 3. Goals People, and Structure.

!amples of organizations include: " " " " " #our neighborhood con$enience store The %allas &owboys football team 'raternities and sororities The &le$eland &linic, and (nternationally known corporations such as )okia.

*ere we see the three common characteristics that organizations share: 1. 2. 3. Goals, which e!press the distinct purpose of a particular organization People, who make decisions and reach the organization+s goals, and A deliberate structure, which systematically defines, limits, and guides its members+ beha$ior.

Members of an organization can be di$ided into two categories: 1. Nonmanagerial employees work directly on a task and do not o$ersee the work of others. !amples include a cashier in a department store or someone who processes your license at the registry of motor $ehicles office. Managers, who direct and o$ersee the acti$ities of the people in the organization.

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3. Top managers are those at or near the top of an organization. 'or instance, a &hief !ecuti$e ,ffice -or & ,. often makes decisions about the direction of the organization and establishes policies and philosophies that affect all organizational members. /. Middle managers fall between the lowest and highest le$els of the organization. They often manage other managers and sometimes nonmanagerial employees, and are responsible for translating the goals set by top managers into specific detailed tasks that lower0le$el managers o$ersee. Titles for middle managers may include plant manager, department manager, or pro1ect leader. 2. irst!line managers are responsible for directing the day0to0day acti$ities of nonmanagerial employees,

and recei$e such titles as super$isor, shift manager, or unit coordinator. (n 1311, mechanical engineer 'rederick 4inslow Taylor+s newly published book, Principles of Scientific Management, described the theory of scienti"ic management as the use of scientific methods to define the 5one best way6 for a 1ob to be done. Taylor+s e!perience in the steel industry taught him that: " " 4orkers used $astly different techni7ues to do the same 1ob, and 4orkers were placed in 1obs with little concern for matching specific workers+ abilities and aptitudes with the tasks re7uired of them.

8s illustrated here, e""iciency is concerned with the means of getting things done by: " " " %oing a task correctly Minimizing both resource use and cost, and 9etting the greatest output from the smallest amount of inputs.

#""ecti$eness is concerned with the ends, that is, doing the right tasks that result in attaining organizational goals. Management researchers ha$e de$eloped three approaches to describe what managers do: 1. 2. 3. :y their functions :y their roles, and :y their skills and competencies.

(n the functions approach proposed by *enri 'ayol, a 'rench industrialist in the early twentieth century, all managers perform certain acti$ities and functions, such as planning, organizing, commanding, coordinating, and controlling. The four key management functions identified in contemporary management are planning, organizing, leading, and controlling. 1. Planning, which includes defining goals, establishing strategy, and de$eloping plans to coordinate acti$ities, ensures that the work is kept in proper focus and helps organizational members keep their attention on what is most important. %rganizing and structuring work to accomplish the organization+s goals includes determining which tasks need to be done and by whom, how tasks are to be grouped, who reports to whom, and who will make decisions. &eading means that the manager will direct and coordinate the work acti$ities of the people she super$ises, moti$ate employees, select the most effecti$e communication channel, and resol$e conflicts among members. 'ontrolling, which is the fourth and final management function, in$ol$es monitoring, comparing, and

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correcting work performance. (n the late 13;<s, &anadian academic *enry Mintzberg conducted an empirical study of chief e!ecuti$es and disco$ered that managers were engaged in a number of $aried, un0patterned, and short0duration acti$ities. 8s a result, he defined management by categorizing ten roles that managers play, organized into the following three general categories: 1. 2. 3. (nterpersonal relationships in$ol$ing subordinates and people outside the organization in the roles of figurehead, leader, and liaison= (n"ormation trans"er that in$ol$es collecting, recei$ing, and disseminating information in the roles of monitor, disseminator, and spokesperson= and )ecision!ma*ing that entails making choices in the roles of entrepreneur, disturbance handler, resource allocator, and negotiator.

>ntil now, we+$e looked at management as a generic acti$ity. :ut in reality, a manager+s 1ob $aries depending on: 1. 2. The manager+s le$el in the organization, and 4hether the organization is a pro"it or nonpro"it organization.

%epending on a manager+s position within an organization, the importance of a manager+s role differs in degree and emphasis. That is, the decisions of a top manager will ha$e greater ramifications than those of a middle manager due to the content of the decision.

8ll managers?whether in profit or nonprofit organizations?make decisions and plan, lead, organize, and control. *owe$er, the following $ariables change based on the manager+s le$el in the organization: 1. The amount o" time a manager gi$es to each acti$ity is not necessarily constant. 'or e!ample, as seen in this illustration, as managers mo$e up the organization they spend less time super$ising and more time planning. The content o" the managerial acti$ities also changes +ith the manager,s le$el. That is, a first0le$el manager spends the ma1ority of his time leading but a top manager spends the ma1ority of his time organizing.

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(t+s important to note that management per"ormance is measured according to different ob1ecti$es depending on the nature of the organization: " " 'or businesses, profit is the bottom line, but )onprofits do not e!ist to ma!imize profits.

*ow generic or uni$ersal are the manager+s roles when it comes to working in a small organization $ersus a large corporation@ 4hat differences might e!ist@ " 8re the managerial concepts we+$e been discussing transferable across countries@ (f so, they would

apply uni$ersally in any country in the world. *owe$er, research shows that while concepts transfer easily among many nglish0speaking countries, managers will likely ha$e to modify their management when dealing with (ndia, &hina, &hile, or other countries with economic, political, social, or cultural en$ironments that differ from those of traditional 4estern free0market democracies. 8s we see here, the importance of managerial roles in small and large businesses differ. 'or the purposes of our discussion, a small business is an independent business ha$ing fewer than 2<< employees that doesn+t necessarily engage in any new or inno$ati$e practices and has relati$ely little impact on its industry. The most important role of a small business manager is that of spokesperson, performing e-ternally in meeting with customers, arranging financing with bankers, searching for new opportunities, and stimulating change. The actions of manager in a large organization, howe$er, are directed internally, deciding which organizational units get which and how much of the a$ailable resources.. 8 small business manager is more likely to be a generalist in a less formal, less structured, and less comple! en$ironment than his counterpart in a large organization. Managers in both small and large organizations perform essentially the same acti$ities, but how they go about those acti$ities and the proportion of time they spend on each differ. Managers e$erywhere face changing circumstances such as managing workers in both domestic and foreign workplaces, emerging technologies, ethical and trust issues, and global economic uncertainties. 8s a result, how they manage is also changing and affecting the way they plan, organize, lead, and control. Two important changes to note are: " " The increasing importance o" customers, and (nno$ation.

,rganizations need customer to e!ist. >ntil recently, customer focus was thought to be the responsibility of marketing, but organizations are now disco$ering that employee attitudes and beha$iors play a big role in customer satisfaction. Managers are recognizing that deli$ering consistent high07uality customer ser$ice is essential for sur$i$al and success in today+s competiti$e en$ironment. They recognize that employees are an integral part of creating a customer0responsi$e organization where employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what+s necessary to please the customer. (nno$ation means doing things differently, e!ploring new territory, and taking risks. (n today+s challenging en$ironment, inno$ation is critical and managers need to understand what, when, where, how, and why inno$ation can be fostered and encouraged throughout an organization. Managers need to be personally inno$ati$e and to encourage their employees to be inno$ati$e.