Management Book PDF

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MANAGING AND THE

MANAGER’S JOB
After studying this chapter, you should be able to:

Learning 1. Describe the nature of management, 4. Identify the basic managerial roles
Outcomes define management and managers, played by managers and the skills
and characterize their importance to they need to be successful.
contemporary organizations.
5. Discuss the science and the art of
2. Identify and briefly explain the four management, describe how people
basic management functions in become managers, and summarize
organizations. the scope of management in
organizations.
3. Describe the kinds of managers found
at different levels and in different 6. Characterize the new workplace that
areas of the organization. is emerging in organizations today.
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PART 1 Introducing Management
MANAGEMENT IN ACTION How to Make Mistakes

and Influence People
“No one wants to be handed a list from In 2005, twenty-something Wherry, who entered
Stanford University as a music major and emerged with
their manager of all the ways they’ll a degree in symbolic systems, got together with two
inevitably fail.” friends to start up Meebo, a social media platform
—ELAINE WHERRY, CO-FOUNDER OF MEEBO
designed to provide instant messaging to such major
network services as Google, Yahoo! Messenger, and
Facebook. Like many start-up creators, Wherry soon
Although she has just a little over fourteen years of found herself taking on a variety of jobs, most of which
management experience under her belt, Elaine Wherry she had to design, develop, and define as she went
is confident that there’s one thing she can teach people along. As she moved herself up the company ladder,
about the business of managing a business: from code writer to manager, to director, to VP of prod-
MANAGERS MAKE MISTAKES.1 ucts and then chief experience officer, Wherry gained
Mistakes, as Wherry is quick to point out, come first-hand experience at making a broad range of the
with the territory, especially when the territory that you kinds of mistakes that upwardly mobile managers tend
want to conquer is unfamiliar, whether the wide-open to make.
spaces of a brand-new company or the well-defended By 2012, she was on the CBS Morning Show
plot of higher ground occupied by upper-level man- explaining how and why she’d kept track of them in a
agement. “Everyone,” she says, “has to go through diary in which she dutifully made entries for six years:
the same rites of passage,” but “you recover more “I was a typical first-time Silicon Valley entrepreneur,”
quickly” when you admit and reflect upon your mis- she admitted. “I had no significant managerial experi-
takes. Wherry’s specialty is reflecting upon mistakes. ence, and of course I made a ton of mistakes. And so
In fact, she’s made a second career out of reflecting I’d find myself awake at 2:00 or 3:00 a.m., agonizing over
publicly on her own. the mistakes that I’d made in the daytime. . . . I wanted
Meebo offers chat room

services that companies can
embed in their web pages.
Elaine Wherry, co-founder of
Meebo and shown here on
the left, has a lot of practical
advice for future managers.
Peter DaSilva/The New York Times/Redux

CHAPTER 1 Managing and the Manager’s Job 3
to be able to reflect on them later so I wouldn’t beat AND YOU’RE NOT A PAL and DELEGATE AND HOLD
myself up during the week. It was also a way to get YOUR TEAM RESPONSIBLE. For example, Wherry illus-
more sleep.” trates a relevant story about a new manager at a com-
The real value of Wherry’s combination of sleep pany like Meebo. Six drawings are accompanied by the
therapy and self-improvement became apparent following six captions:
when she started hiring and managing new employ- 1. Y ou’re ready. Bring it on! You’re going to do
ees: “I realized that, being in the unique role of a anything you can to get an A+ and change the
founder, I was changing hats every six months, and world!
when I started hiring team members to fill my shoes, 2. But what’s this? Your codebase and design has
I saw them make the exact same mistakes that I hacks.
did.” 3. So you send an email to everyone in the
When Wherry tried to deal with the situation, the company proposing a redesign that scales to
first thing she did was make a mistake. “At first, I billions of people.
tried giving new managers and directors my bulleted
list. However, that was horribly ineffective. No one

3:17 am
wants to be handed a list from their manager of all To: All
the ways they’ll inevitably fail.” After reflecting on From: You
her mistake, Wherry hit upon the idea of imparting
her experience through stories: “I started focusing It’s come to my attention that we write
on telling stories and setting the scenes for these hacky code.
mistakes. I sketched the scenes of all of the mistakes
and started weaving them into a story that showed I don’t know if that’s because you’re
the professional journey that everyone makes from inept or just lazy.
her first day on the job as a fresh grad to leading the
company as a C-level executive.” Not surprisingly, Here’s my grand plan to make it perfect.
Wherry found herself a suitable subject for many of
—XOXO
her stories—“the first time I had to scrap a project I
loved,” for example, “or interviewing disaster
stories.”
In 2012, as Meebo was being sold to Google for a
reported $100 million, Wherry left the company. The 4. B ut no one is participating. Your meetings feel
next year, she included a “100 Mistakes” feature in like you’re pulling teeth.
her blog at www.ewherry.com, adding whimsical little 5. Meanwhile, as a manager, you’ve tried every-
drawings to underscore the key points made by brief thing—promising go-karts, vacations, parties,
scenarios. “Most mistakes,” she says, “happen from beer. Why can’t your team deliver?
good intentions gone astray, lingering habits from 6. Fine. You’ll just have to dig in and do it
previous roles, or not knowing your responsibilities.” yourself.*
So what’s a good example of a noteworthy mis-
take? “Lunch-time conversations,” suggests Wherry. Wherry has talked about turning “100 Mistakes”
“Maybe it’s been a frustrating morning, you’re sur- into a book, but she’s currently busy giving presenta-
rounded by coworkers, and it’s really tempting to say tions to management and entrepreneurship groups. To
things like, ‘I can’t believe the company thinks it’s demonstrate what she means by telling stories, she
going to hit this goal!’ Managers don’t realize how relies on narrative as the format of her presentations.
destructive those conversations really are. The Each story consists of original cartoons, usually illustrat-
underlying sentiment of a lot of those conversations ing a frustrated manager’s state of mind, and concludes
is, ‘Corporate management is clueless.’” The moral with Wherry asking participants what mistakes they
of the story? DON’T VENT IN PUBLIC PLACES, caught. She’s now writing a graphic novel about
which is closely related to IT’S NOT A DEMOCRACY leadership.
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*What’s the biggest mistake in this scenario? See You Make the Call, question 2 (p. 31).

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Elaine Wherry is clearly a manager. So, too, are Phil Knight (chairman of Nike), Ursula
Burns (CEO of Xerox), Osamu Kojima (chairman of Mitsubishi), Neil MacGregor (direc-
tor of the British Museum), Richard Hayne (president and chairman of Urban Outfitters),
Jerry Jones (owner and general manager Dallas Cowboys football team), Benedict XVI
(pope of the Roman Catholic Church), and Fadi and Hege Kalaouze (co-presidents of
Aggieland Outfitters in College Station, Texas). As diverse as they and their organizations
are, all of these managers are confronted by many of the same challenges, strive to achieve
many of the same goals, and apply many of the same concepts of effective management in
their work.
For better or worse, our society is strongly influenced by managers and their organiza-
tions. Most people in the United States are born in a hospital (an organization), educated by
public or private schools (all organizations), depend on organizations for their income, and
buy virtually all of their consumable products and services from businesses (organizations).
And much of our behavior is influenced by various government agencies (also organizations).
We define an organization as a group of people working together in a structured and coordi-
nated fashion to achieve a set of goals. The goals may include profit (Starbucks Corporation),
the discovery of knowledge (University of Missouri), national defense (the U.S. Army), coor-
dination of various local charities (United Way of America), or social satisfaction (a sorority).
Because organizations play such major roles in our lives, understanding how they operate
and how they are managed is important.
This book is about managers and the work they do. In Chapter 1, we examine the gen-
eral nature of management, its dimensions, and its challenges. We explain the concepts of
management and managers, discuss the management process, present an overview of the
book, and identify various kinds of managers. We describe the different roles and skills of
managers, discuss the nature of managerial work, and examine the scope of management in
contemporary organizations. In Chapter 2, we describe how both the practice and the theory
of management have evolved. As a unit, then, these first two chapters provide an introduction
to the field by introducing both contemporary and historical perspectives on management.
An Introduction to Management
organization Although defining the term organization is relatively simple, the concept of management
A group of people working is a bit more elusive. It is perhaps best understood from a resource-based perspective.
together in structured and
As we discuss more completely in Chapter 2, all organizations use four basic kinds of
coordinated fashion to
achieve a set of goals resources from their environment: human, financial, physical, and information. Human
resources include managerial talent and labor. Financial
resources are the capital used by the organization to
finance both ongoing and long-term operations. Physical
resources include raw materials, office and production
facilities, and equipment. Information resources are
usable data needed to make effective decisions. Examples
of resources used in four very different kinds of organiza-
tions are shown in Table 1.1.
Managers are responsible for combining and coor-
Â©diyanski/Shutterstock.com
dinating these various resources to achieve the organiza-

tion’s goals. A manager at Royal Dutch/Shell Group, for
example, uses the talents of executives and drilling plat-
form workers, profits earmarked for reinvestment, existing
refineries and office facilities, and sales forecasts to make
decisions regarding the amount of petroleum to be refined
Workers negotiate the transport of a company’s physical and distributed during the next quarter. Similarly, the may-
resources. They are moving drilling equipment to another or (manager) of New York City might use police officers, a
site in order to maximize profits for the entire company. government grant (perhaps supplemented with surplus tax

TABLE 1.1 EXAMPLES OF RESOURCES USED BY ORGANIZATIONS

All organizations, regardless of whether they are large or small, profit-seeking or not-for-
profit, domestic or multinational, use some combination of human, financial, physical, and
information resources to achieve their goals. These resources are generally obtained from
the organization’s environment.
Human Financial Physical Information

Organization Resources Resources Resources Resources
Royal Dutch/ Drilling platform Profits Refineries Sales forecasts

Shell Group workers Stockholder Office OPEC
Corporate investments buildings proclamations
executives
Michigan State Faculty Alumni Computers Research reports
University Administrative staff contributions Campus Government

Government facilities publications
grants
New York City Police officers Tax revenue Sanitation Economic
Municipal Government equipment forecasts
employees grants Municipal Crime statistics
buildings
Susan’s Corner Grocery clerks Profits Building Price lists
Grocery Store Bookkeeper Owner Display shelving from suppliers management
A set of activities (including
investment Newspaper ads
planning and decision
for competitors
making, organizing, leading,
and controlling) directed at
an organization’s resources
(human, financial, physical,
revenues), existing police stations, and detailed crime statistics to launch a major crime and information), with the aim
prevention program in the city. of achieving organizational
goals in an efficient and
How do these and other managers combine and coordinate the various kinds of
effective manner
resources? They do so by carrying out four basic managerial functions or activities: plan-
ning and decision making, organizing, leading, and controlling. Management, then, as efficient
illustrated in Figure 1.1, can be defined as a set of activities (including planning and deci- Using resources wisely and in
sion making, organizing, leading, and controlling) directed at an organization’s resources a cost-effective way
(human, financial, physical, and information), with the aim of achieving organizational
effective
goals in an efficient and effective manner. Making the right
The last phrase in our definition is especially important because it highlights the basic decisions and successfully
purpose of management—to ensure that an organization’s goals are achieved in an efficient and implementing them
effective manner. By efficient, we mean using resources
wisely and in a cost-effective way. For example, a firm like
Toyota Motor Corporation, which produces high-quality
Â©Axel Bueckert/Shutterstock.com
products at relatively low costs, is efficient. By effective,

we mean making the right decisions and successfully
implementing them. Toyota also makes cars with the

styling and quality to inspire consumer interest and con-
fidence. A firm could very efficiently produce portable
CD players but still not succeed because the market
for such devices has largely been supplanted by digital
music storage and playbacks such as smartphones. A firm To be effective businesses must produce products that
that produces products that no one wants is therefore not consumers are willing to buy. A company could very efficiently
effective. In general, successful organizations are both produce portable cassette tape players like this one but will not
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efficient and effective.2 be successful.

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With this basic understanding of management, defining the term manager becomes
relatively simple: A manager is someone whose primary responsibility is to carry out the
management process. In particular, a manager is someone who plans and makes deci-
sions, organizes, leads, and controls human, financial, physical, and information re-
sources. Today’s managers face a variety of interesting and challenging situations. The
average executive works over 60 hours a week, has enormous demands placed on his or
her time, and faces increased complexities posed by globalization, domestic competition,
government regulation, shareholder pressure, and Internet-related uncertainties. The job
is complicated even more by rapid changes (such as the recession of 2008–2010 and the
recovery that began in 2013), unexpected disruptions (including web hacks), and both
minor and major crises (such as the Ebola scare in 2014 and terrorists attacks in 2015).
The manager’s job is unpredictable and fraught with challenges, but it is also filled with
opportunities to make a difference. Good managers can propel an organization into un-
precedented realms of success, whereas poor managers can devastate even the strongest
of organizations.3
Many of the characteristics that contribute to the com-
“Not only can you not plan the impact plexity and uncertainty of management stem from the en-
vironment in which organizations function. For example,
you’re going to have, you often won’t as shown in Figure 1.1, the resources used by organizations
recognize it even while you’re having it.” to create products and services all come from the environ-
ment. Thus it is critical that managers understand this
—RICHARD COSTOLO, TWITTER CEO4 environment. Part 2 of the text discusses the environmen-
tal context of management in detail. Chapter 3 provides
a general overview and discussion of the organization’s environment from a variety of
perspectives. Chapter 4 focuses specifically on the ethical and social environment of man-
manager
Someone whose primary agement, and Chapter 5 explores the global environment of management. After reading
responsibility is to carry out these chapters, you will be better prepared to study the essential activities that comprise
the management process the management process.
FIGURE 1.1 MANAGEMENT IN ORGANIZATIONS

Basic managerial activities include planning and decision making, organizing, leading, and controlling. Managers engage in
these activities to combine human, financial, physical, and information resources efficiently and effectively and to work toward
achieving the goals of the organization.
Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources
Controlling Leading

The Management Process

(What do Managers do?)
We noted earlier that management involves the four basic functions of planning and decision
making, organizing, leading, and controlling. Because these functions represent the frame-
work around which this book is organized, we introduce them here and note where they are
discussed more fully. Their basic definitions and interrelationships are shown in Figure 1.2.
(Note that Figure 1.2 is an expanded version of the central part of Figure 1.1.)
Consider the management process at Google. Sergey Brin and Larry Page, Google’s
founders and top managers, must first create goals and plans that articulate what they want
the company to become. Then they rely on effective organization to help make those
goals and plans reality. Brin and Page also pay close attention to the people who work for
the company. And they keep a close eye on how well the company is performing. Each
of these activities represents one of the four basic managerial functions illustrated in the
figure—setting goals is part of planning, setting up the organization is part of organizing,
managing people is part of leading, and monitoring performance is part of controlling.

It is important to note, however, that the functions of management do not usually
occur in a tidy, step-by-step fashion. Managers do not plan on Monday, make decisions
on Tuesday, organize on Wednesday, lead on Thursday, and control on Friday. At any
given time, for example, a manager is likely to be engaged in several different activities
simultaneously. Indeed, from one setting to another, managerial tasks are as different as
they are similar. The similarities that pervade most settings are the phases in the manage-
ment process. Important differences include the emphasis, sequencing, and implications
of each phase.5 Thus the solid lines in Figure 1.2 indicate how, in theory, the functions
FIGURE 1.2 THE MANAGEMENT PROCESS

Management involves four basic activities—planning and decision making, organizing, lead-
ing, and controlling. Although there is a basic logic for describing these activities in this se-
quence (as indicated by the solid arrows), most managers engage in more than one activity
at a time and often move back and forth between the activities in unpredictable ways (as
shown by the dotted arrows).
Planning and
Organizing
Decision Making
Determining how
Setting the organiza-
best to group
tion’s goals and
activities and
deciding how best
resources
to achieve them
Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization
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of management are performed. The dotted lines, however, represent the true reality of
management. In the sections that follow, we explore each of these activities.
Planning and Decision Making: Determining Courses

of Action
In its simplest form, planning means setting an organization’s goals and deciding how best to
achieve them. Decision making, a part of the planning process, involves selecting a course
of action from a set of alternatives. Planning and decision making help maintain managerial
effectiveness by serving as guides for future activities. In other words, the organization’s goals
and plans clearly help managers know how to allocate their time and resources. When Alan
Mulally took over the ailing Ford Motor Company in 2006, he walked into a business that
had low cash reserves, an unpopular product line, a confusing strategy, and a culture that
was so resistant to change that one insider said it was “calcified.” His first agenda was to set
performance goals for all of Ford’s top executives and clarify the strategic direction that would
guide Ford in the future. He also worked to ensure that decision making was transparent.6
The four chapters making up Part 3 of this text are devoted to planning and decision making.
Chapter 6 examines the basic elements of planning and decision making, including the role
and importance of organizational goals. Chapter 7 looks at strategy and strategic planning,
which provide overall direction and focus for the organization. Chapter 8 explores manage-
rial decision making and problem solving in detail. Finally, Chapter 9 addresses planning
and decision making as they relate to the management of new ventures and entrepreneurial
activities, increasingly important parts of managerial work.
Organizing: Coordinating Activities and Resources

Once a manager has set goals and developed a workable plan, the next management function
is to organize people and the other resources necessary to carry out the plan. Specifically,
organizing involves determining how activities and resources are to be grouped. After Alan
Mulally clarified Ford’s strategy, he then overhauled the company’s bureaucratic structure
in order to facilitate coordination across divisions and promote faster decision making.
Organizing is the subject of Part 4. Chapter 10 introduces the basic elements of organizing,
such as job design, departmentalization, authority relationships, span of control, and line
and staff roles. Chapter 11 explains how managers fit these elements and concepts together
to form an overall organization design. Organization change and innovation are the focus of
planning Chapter 12. Finally, processes associated with managing the organization’s workforce so as to
Setting an organization’s
goals and deciding how best
most effectively carry out organizational roles and perform tasks are described in Chapter 13.
to achieve them
decision making Leading: Motivating and Managing People

Part of the planning process
that involves selecting a
The third basic managerial function is “We have good people. They
course of action from a set of leading. Some people consider leading to
alternatives be both the most important and the most just need a leader who can
challenging of all managerial activities. guide and inspire them.”
organizing Leading is the set of processes used to get
Determining how activities —BILL FORD, FORMER CEO OF FORD.7
and resources are to be
members of the organization to work to-
grouped gether to further the interests of the organi-
zation. Alan Mulally took several steps to change the leadership culture that existed at Ford.
leading During the previous regime the firm had used a directive, top-down approach to manage-
The set of processes used ment. But Mulally decentralized many activities so as to put the responsibility for making
to get members of the
organization to work together
decisions in the hands of those best qualified to make them. He also clarified channels of
to further the interests of the communication and revamped the incentive system used for senior managers. Finally, he set
organization up a succession plan to ease the transition to the next CEO when he retired in 2014. Leading

involves a number of different processes and activities, which are discussed in Part 5. The
starting point is understanding basic individual and interpersonal processes, which we focus
on in Chapter 14. Motivating employees is discussed in Chapter 15, and leadership itself and
the leader’s efforts to influence others are covered in Chapter 16. Managing interpersonal
relations and communication is the subject of Chapter 17. Finally, managing work groups
and teams, another important part of leading, is addressed in Chapter 18.
Controlling: Monitoring and Evaluating Activities

The final phase of the management process is controlling, or monitoring the organization’s
progress toward its goals. As the organization moves toward its goals, managers must monitor
progress to ensure that it is performing in such a way as to arrive at its “destination” at the
appointed time. A good analogy is that of a space mission to Mars. NASA does not simply
shoot a rocket in the general direction of the planet and then look again in four months to
see whether the rocket hit its mark. NASA monitors the spacecraft almost continuously and
makes whatever course corrections are needed to keep it on track. Controlling similarly helps
ensure the effectiveness and efficiency needed for successful management. For example,
during a routine quality control inspection of a prototype of Boeing’s new 787 Dreamliner
aircraft, an inspector discovered that literally thousands of fasteners had been improperly
installed. This finding required managers to push the completion schedule for the plane
back several months8 in order to locate and replace all of the questionable fasteners. If con-
trol had not worked properly, the subsequent impact could have been disastrous. At Ford,
Alan Mulally installed a more rigorous financial reporting system so that he could better
assess how various parts of the far-flung Ford empire were performing and get information he
needed to make strategic decisions faster and easier than was the case when he first took over.
The control function is explored in Part 6. First, Chapter 19 explores the basic elements
of the control process, including the increasing importance of strategic control. Managing
operations, quality, and productivity is explored in Chapter 20.
Managers use a mix of resources—human, financial, physical, and information— Manager’s

to promote efficiency and effectiveness. Checklist
The management process involves a variety of functions. The primary
management functions are planning and decision making, organizing, leading,
and controlling.
Remember, though, that as a manager your activities will typically not follow a
predictable and logical sequence and that the resources you manage may vary
in unexpected ways.
Kinds of Managers
Not all managers are the same, of course, nor is the work they perform. Among other things,
we can classify managers according to their level in the organization and the area in which controlling
Monitoring organizational
they work. progress toward goal
attainment
Managing at Different Levels of the Organization levels of management

The differentiation of
Managers can be differentiated according to their level in the organization. Although large managers into three basic
organizations typically have a number of levels of management, the most common view categories—top, middle, and
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considers three basic levels: top, middle, and first-line managers, as shown in Figure 1.3. first-line

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FIGURE 1.3 KINDS OF MANAGERS BY LEVEL AND AREA

Organizations generally have three levels of management, represented by top managers,
middle managers, and first-line managers. Regardless of level, managers are also usually
associated with a specific area within the organization, such as marketing, finance,
operations, human resources, administration, or some other area.
Levels of Management
Top managers
Middle managers
First-line managers
ns
n
ce
r
g
he
tio
tin
ce
an
io
Ot
ur
ra
ke
at
Fin
so
ist
er
ar
re
Op
in
M
m
an
Ad
m
Hu
Areas of Management
Top Managers Top managers make up the relatively small group of executives who man-
age the overall organization. Titles found in this group include president, vice president, and
chief executive officer (CEO). Top managers create the organization’s goals, overall strategy,
and operating policies. They also officially represent the organization to the external environ-
ment by meeting with government officials, executives of other organizations, and so forth.
Howard Schultz, CEO of Starbucks, is a top manager, as is Sharon Rothstein, the firm’s
global chief marketing officer. Likewise, Sergey Brin, Larry Page, Tim Cook (CEO of Apple),
and Denise Morrison (CEO of Campbell Soup) are also top managers. The job of a top man-
ager is likely to be complex and varied. Top managers make decisions about such activities as
acquiring other companies, investing in research and development, entering or abandoning
various markets, and building new plants and office facilities. They often work long hours
and spend much of their time in meetings or on the telephone. In most cases, top managers
are also very well paid. In fact, the elite top managers of very large firms sometimes make sev-
eral million dollars a year in salary, bonuses, and stock. Starbucks’ Howard Schultz received
$1,500,000 in salary, $2,250,000 as a bonus, over $13,000,000 in stock and stock options, and
$215,933 in other compensation in 2014.
Middle Managers Middle management is probably the largest group of managers in most
organizations. Common middle-management titles include plant manager, operations

anager, and division head. Middle managers are responsible

m
primarily for implementing the policies and plans developed by
top managers and for supervising and coordinating the activities
of lower-level managers.9 Jason Hernandez, a regional manager
at Starbucks responsible for the firm’s operations in three eastern
states, is a middle manager.
Ford plant managers, also middle managers, must meet vari-
ous production quotas and goals and handle inventory manage-
ment, quality control, equipment failures, and union problems.
They also coordinate the work of supervisors within the plant.
In recent years, many organizations have thinned the ranks of
middle managers to lower costs and eliminate excess bureaucra-
cy. Still, middle managers are necessary to bridge the upper and
lower levels of the organization and to implement the strategies

developed at the top. Although many organizations have found
that they can indeed survive with fewer middle managers, those
who remain play an even more important role in determining
Andrew Toth/Getty Images

how successful the organization will be.
First-Line Managers First-line managers supervise and

coordinate the activities of operating employees. Common titles
for first-line managers are supervisor, coordinator, and office
manager. Positions like these are often the first held by employees
who enter management from the ranks of operating personnel. Denise Morrison, CEO of Campbell Soup, is a top manager. She
Wayne Maxwell and Jenny Wagner, managers of Starbucks makes major decisions about the firm’s competitive strategies,
coffee shops in Texas, are first-line managers. They oversee the research and development investments, and new facilities.
day-to-day operations of their respective stores, hire operating
employees to staff them, and handle other routine administrative duties required of them by
the parent corporation. Assembly line supervisors at Ford plants are first-line m
anagers. In
contrast to top and middle managers, first-line managers typically spend a large proportion
of their time supervising the work of subordinates.
Managing in Different Areas of the Organization

Regardless of their level, managers may work in various areas within an organization. In any
given firm, for example, areas of management may include marketing, financial, operations,
human resource, administrative, and other areas.
Marketing Managers Marketing managers work in areas related to the marketing func-
tion—getting consumers and clients to buy the organization’s products or services (be they
Samsung smartphones, Ford trucks, Cosmopolitan magazines, Associated Press news reports,
flights on Southwest Airlines, or cups of latte at Starbucks). These areas include new-product
development, promotion, and distribution. Given the importance of marketing for virtually
all organizations, developing good managers in this area can be critical.
Financial Managers Financial managers deal primarily with an organization’s financial

resources. They are responsible for such activities as accounting, cash management, and in-
vestments. In some businesses, such as banking and insurance, financial managers are found
in especially large numbers.
areas of management
Operations Managers Operations managers are concerned with creating and managing Managers can be
differentiated into marketing,
the systems that create an organization’s products and services. Typical responsibilities of financial, operations, human
operations managers include production control, inventory control, quality control, plant resource, administration, and
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layout, and site selection. other areas

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Human Resource Managers Human resource managers are responsible for hiring and
developing employees. They are typically involved in human resource planning, recruiting
and selecting employees, training and development, designing compensation and benefit
systems, formulating performance appraisal systems, and discharging low-performing and
problem employees.
Administrative Managers Administrative, or general, managers are not associated with

any particular management specialty. Probably the best example of an administrative man-
agement position is that of a hospital or clinic administrator. Administrative managers tend to
be generalists; they have some basic familiarity with all functional areas of management
rather than specialized training in any one area.10
Other Kinds of Managers Many organizations have specialized management
positions in addition to those already described. Public relations managers, for example,
deal with the public and media for firms like
Alcoa and the Dow Chemical Company to pro-
tect and enhance the image of the organization.
Research and development (R&D) managers
coordinate the activities of scientists and

engineers working on scientific projects in orga-
nizations such as Microsoft, NASA, and Boeing.
Internal consultants are used in organizations
such as Prudential Insurance and Raytheon to
provide specialized expert advice to operating
managers. International operations are often
Sigrid Gombert/Getty Images
coordinated by specialized managers in organiza-

tions like Disney and Halliburton. The number,
nature, and importance of these specialized man-
agers vary tremendously from one organization to
another. As contemporary organizations continue
to grow in complexity and size, the number and
Most businesses rely on many different kinds of managers. This facilities manager importance of such managers are also likely to
is checking the calibration settings on an important piece of machinery. One of increase. For instance the “Tech Watch” feature
his employees originally made the calibrations but the manager is now checking discusses the emerging need for social media
them because if the settings are incorrect it could be costly to the business. managers.
Organizations need managers at multiple levels. The most common Manager’s

classifications by level are top, middle, and first-line managers. Large Checklist
organizations usually have multiple levels within each of these broad
categories.
Organization also need managers within different areas, such as marketing,
finance, operations, human resources, general administration, and other
areas.
While it may seem like common sense, you should always have an
understanding of the level and area of both your current job and the next job
you aspire to have.

TECH
WATCH
Show Me the ROI
Twenty-thirteen was a big year for social media— company’s community of customers. As you can also
websites that allow users to create and exchange see from the job description, a key function of the
content. Twitter went public and introduced a video- position is coordination. Typically, social media man-
sharing app called Vine. Facebook responded with agers work out of marketing departments and per-
Instagram, and YouTube rolled out a new layout form a variety of marketing-related tasks—replying
feature called One Channel, which allows users to to customer inquiries (sales), responding to cus-
focus on developing bases of followers. Spending tomer complaints (customer service), handling exter-
on social media advertising reached $4.6 billion, up nal communications (public relations). At the same
35 percent from 2012, and seven out of ten time, however, because they often manage the use
marketers said that they intended to increase social of social media among all of a company’s employees
media spending in 2014 (compared to 53 percent and communicate information about all of its activi-
who planned to increase email spending and just ties, the scope of responsibilities is companywide.
9 percent who planned to up TV advertising). Even with all of this newfound responsibility,
According to Ashley Coombe, social media some social media managers aren’t quite sure how
strategist for All Inclusive Marketing, “2013 was the much “legitimacy” they’ve earned. “At the last place
year social media managers earned legitimacy. . . . I was a social manager,” reports one brand specialist
Business owners began to realize that they could no at a large corporation, “high-level VPs would come
longer hire their friend’s daughter to do their social over and say I was messing around on the Internet
media just because she had a lot of friends on too much.” According to another veteran of corpo-
Facebook.” rate media management, “the biggest misconcep-
Just what do social media managers do? Why is tion is that, compared to other marketers, we don’t
your friend’s daughter likely to be in over her head? understand analytics or don’t have the education or
It’s a pretty new position, so job descriptions under- background when it comes to the technical side.”
standably vary. Here, however, is a generic descrip- Old-school executives, charges a third social media
tion crafted by a veteran social media executive: strategist, “see [social media] as the warm and fuzzy
side of marketing. In reality,” he says, “it’s a powerful
The Social Media Manager will implement the revenue driver when it’s given proper funding and
Company’s Social Media Strategy, developing attention. . . . When you show them the ROI, people
brand awareness, generating inbound traffic start changing their minds.”
and encouraging product adoption. This role
coordinates with the internal marketing and References: Kelly Clay, “What Social Media Managers Need to Know
PR teams to support their respective missions, about Facebook in 2014,” Forbes.com (December 29, 2014), www.forbes.
com, on June 2, 2014; Jennifer Beese, “The Top 7 Social Media Stories of
ensuring consistency in voice and cultivating a 2013,” SproutSocial (December 27, 2013), http://sproutsocial.com, on June
social media referral network. 2, 2014; Erik Sass, “Most Marketers Will Spend More on Social Media in
2014,” The Social Graf (November 19, 2013), www.mediapost.com, on June
2, 2014; The CMO Survey, “Social Media Spend Continues to Soar” (March
Primarily, social media managers handle informa- 6, 2012), www.cmosurvey.org, on June 2, 2014; Blaise Grimes-Viort, “Social
Media Manager Job Description,” Online Communities and Social Media
tion and communications through social media (February 9, 2010), http://blaisegv.com, on June 2, 2014; Julian Rio, “Social
outlets—tracking trends and determining posting Media Manager: What Role Does He Really Have?” JulianRio.com Mar-
keting Solutions (October 26, 2013), www.julianrio.com, on June 2, 2014;
rates, creating positive communications, and “Confessions of Big Brand Social Media Managers,” Digiday (February 11,
maintaining a congenial media relationship with a 2014), http://digiday.com, on June 2, 2014.
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14
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Basic Managerial Roles and Skills

Regardless of their levels or areas within an organization, all managers must play certain roles
and exhibit certain skills if they are to be successful. The concept of a role, in this sense, is
similar to the role an actor plays in a theatrical production. A person does certain things, meets
certain needs, and has certain responsibilities in the organization. In the sections that follow, we
first highlight the basic roles managers play and then discuss the skills they need to be effective.
Managerial Roles
One classic study revealed a number of interesting insights into the nature of managerial
roles.11 This study, based on detailed observations of a sample of CEOs, suggested that senior
managers generally play ten different roles, and that these roles fall into three basic catego-
ries: interpersonal, informational, and decisional.
Interpersonal Roles The research noted above suggested that there are three i nterpersonal
roles inherent in the senior manager’s job. First, the manager is often expected to serve as a
figurehead—taking visitors to dinner, attending ribbon-cutting ceremonies, and the like. These
activities are typically more ceremonial and symbolic than substantive. The manager is also
expected to serve as a leader—hiring, training, and motivating employees. A manager who for-
mally or informally shows subordinates how to do things and how to perform under pressure is
leading. Finally, managers can have a liaison role. This role often involves serving as a coordina-
tor or link among people, groups, or organizations. For example, companies in the computer
industry may use liaisons to keep other companies informed about their plans. This enables
Microsoft, for example, to create software for interfacing with new Hewlett-Packard printers at
the same time those printers are being developed. And, at the same time, managers at Hewlett-
Packard can incorporate new Microsoft features into the printers they introduce.
interpersonal roles Informational Roles Three informational roles flow naturally from the interpersonal roles
The roles of figurehead,
just discussed. The process of carrying out the interpersonal roles places the manager at a strate-
leader, and liaison, which
involve dealing with other gic point to gather and disseminate information. The first informational role is that of monitor,
people one who actively seeks information that may be of value. The manager questions subordinates,
is receptive to unsolicited information, and attempts to be as well informed as possible. The
informational roles manager is also a disseminator of information, transmitting relevant information back to others
The roles of monitor,
disseminator, and
in the workplace. When the roles of monitor and disseminator are viewed together, the manager
spokesperson, which involve emerges as a vital link in the organization’s chain of communication. The third informational
the processing of information role focuses on external communication. The spokesperson f ormally relays information to people
outside the unit or outside the organiza-
tion. For example, a plant manager at
Union Carbide may transmit information
to top-level managers so that they will be
better informed about the plant’s activi-
ties. The manager may also represent the
organization before a chamber of com-
merce or consumer group. Although
the roles of spokesperson and figurehead
are similar, there is one basic difference
lovro77/Getty Images
between them. When a manager acts as

a figurehead, the manager’s presence as a
symbol of the organization is what is of
interest. In the spokesperson role, howev-
One important role that manager’s play is that of figurehead. In this role the manager er, the manager carries substantive infor-
carries out a ceremonial or symbolic function. This manager, for example, is cutting a ribbon mation and communicates it to others in a
to open a new facility. formal manner.

Decisional Roles The manager’s informational

roles typically lead to the decisional roles. The in-
formation acquired by the manager as a result of
performing the informational roles has a major
bearing on important decisions that he or she
makes. Research has identified four decisional roles.
First, the manager has the role of entrepreneur, the
voluntary initiator of change. A manager at 3M
Company developed the idea for the Post-it note
pad but had to “sell” it to other skeptical managers
Dean Mitchell/Getty Images

inside the company. A second decisional role is initi-
ated not by the manager but by some other individ-
ual or group. The manager responds to her role as
disturbance handler by handling such problems as

strikes, copyright infringements, or problems in
public relations or corporate image.
Managers often play various informational roles such as disseminating

The third decisional role is that of resource al-
information and serving as a spokesperson. This manager is responding to
locator. As resource allocator, the manager decides
questions from the press during a press conference. It is obviously important that
how resources are distributed and with whom he or
he be well informed about the questions and that he provide clear and accurate
she will work most closely. For example, a manager
information.
typically allocates the funds in the unit’s operating
budget among the unit’s members and projects. A fourth decisional role is that of negotiator. In
this role the manager enters into negotiations with other groups or organizations as a representa-
tive of the company. For example, managers may negotiate a union contract, an agreement with
a consultant, or a long-term relationship with a supplier. Negotiations may also be internal to the
organization. The manager may, for instance, mediate a dispute between two subordinates or
negotiate with another department for additional support.
It should also be stressed, of course, that since this pioneering research was conducted
several years ago the nature of senior managerial roles may have changed. Some of the roles
noted here may be less important, others may be more important, and new roles may have decisional roles
also emerged as a function of globalization, new technology, and so forth. Still, though, The roles of entrepreneur,
disturbance handler, resource
there is value in understanding that managers play a variety of different roles. “A World of allocator, and negotiator,
Difference” illustrates a number of different roles, as well as skills, that were essential in deal- which relate primarily to
ing with diversity issues at Sodexo. making decisions
A WORLD OF
DIFFERENCE PR and Performance in Diversity Scoring
In 2014, Sodexo came in second on DiversityInc’s list of Strictly speaking, that commitment began in ear-
Top 50 Companies for Diversity. Coming on the heels nest in 2005, when Sodexo, a French-based multina-
of number-1 finishes in 2010 and 2013 and number-2 tional provider of food and facilities-management
finishes in 2011 and 2012, Sodexo’s 2014 ranking made services, agreed to pay $80 million to settle a lawsuit
it the only company to make DiversityInc’s top two for filed in 2001 by black employees who charged that they
five straight years. The company’s press release prom- weren’t being promoted at the same rate as white
ised that “sustaining its efforts to engage a diverse coworkers. After fighting the case all the way to the U.S.
workforce and foster an inclusive culture . . . is essential” Supreme Court, Sodexo (whose American arm is head-
to its strategy, adding that Sodexo “has a long com- quartered in Gaithersburg, MD) also agreed to imple-
mitment to diversity in the workplace.” ment a more structured hiring program and to set up a
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16
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monitoring panel partly appointed by the plaintiffs. 2004 and 2009, the number of African American
“We are pleased this case has been resolved,” said managers had increased by only 1 percent and that
U.S. CEO Richard Macedonia. “We are a stronger and of minority managers as a whole by only 2 percent.
better organization as a result of this process.” Reported one African American employee: “I worked
“It was a very painful thing for the company,” with a chef who would pull down his pants and use
recalls Dr. Rohini Anand, senior VP and global chief the ‘n’ word and had this thing about ‘you people.’
diversity officer. Indian-born Anand, whose doctoral I brought it up with Human Resources, but they said
degree in Asian Studies from the University of Michi- since he was part black, it was okay.”
gan focused on cross-cultural interactions, was hired As suggested, however, by the run of DiversityInc
in 2003, just over a year after the employee suit had citations from 2010 to 2014, Anand’s efforts may
first been filed. A specialist in multicultural issues, have begun to pay off. Anand likes at least some of
she began evaluating the experiences not only of the latest scorecard numbers. Today, for example,
African American employees, but those of Hispanics, 10 to 15 percent of total bonuses for about 16,000
Asians, and gays and lesbians. She also instituted a managers is tied to the attainment of diversity-
program of metrics to measure the performance of related goals, as is 25 percent of upper-management
every diversity-related initiative, including a diversity bonuses. “We are trying to drive change,” promises
scorecard to align the results of such efforts as pro- Sodexo North America CEO George Chavel. “We’re
motion and retention with organizational strategy. not just pointing to those metrics but using them.”
By 2005—the year of the class-action settle-
References: Sodexo, “Sodexo’s Strategic Use of Diversity Metrics to
ment—Sodexo had pronounced itself “a leader in Quantify, Calibrate, and Impact Business Goals Recognized with a Top-Two
diversity,” but the self-congratulations were a little Spot on DiversityInc’s List for Unprecedented 5th Consecutive Year,” Provi-
dence (RI) Journal (April 23, 2014), www.providencejournal.com, on May 16,
premature. In fact, complaints about promotion 2014; Annys Shin, “$80 Million Settles Race-Bias Case,” Washington Post
practices—and even about incidents violating basic (April 28, 2005), www.washingtonpost.com, on May 16, 2014; Tanya Aquino,
“Even After Lawsuit, Report Reveals Food Service Co. Still Struggles with
respect and dignity—continued to surface right up to Diversity,” Black Radio Network (April 27, 2010), www.blackradionetwork.
com, on May 16, 2014; NPR, “Introspection after Allegations of Discrimina-
the time that federal oversight over Sodexo employ- tion,” Listen to the Story (January 12, 2010), www.npr.org, on May 16, 2013;
ment practices came to an end. Issued in April 2010, William Reed, “Diversity Turnaround at Sodexo,” Louisiana Weekly (March 4,
2013), www.louisianaweekly.com, on May 16, 2014; “Diversity Management:
a report entitled “Missing the Mark: Revisiting The Chief Diversity Officer’s No. 1 Advantage,” DiversityInc (n.d.),
Sodexo’s Record on Diversity” charged that, between www.diversityinc.com, on May 16, 2014.
Managerial Skills
In addition to fulfilling numerous roles, managers also need a number of specific skills if
they are to succeed. The most fundamental management skills, summarized in Table 1.2,
are technical, interpersonal, conceptual, diagnostic, communication, decision-making, and
time-management skills.12
Technical Skills Technical skills are the skills necessary to accomplish or understand the
specific kind of work being done in an organization. Technical skills are especially important
for first-line managers. These managers spend much of their time training subordinates and
answering questions about work-related problems. They must know how to perform the tasks
assigned to those they supervise if they are to be effective managers. Brian Dunn, former
director and CEO of Best Buy, began his career in 1985 as a store associate when Best Buy
consisted of only twelve stores. He continued to work his way up into various positions,
including store manager, district manager, regional manager, regional VP, senior VP, execu-
technical skills tive VP, and president of retail (North America). Hence, he literally learned the technical
The skills necessary to
accomplish or understand the
aspects of retailing from the ground up. While Sergey Brin and Larry Page spend most of
specific kind of work being their time now dealing with strategic and management issues, they also keep abreast of new
done in an organization and emerging technologies that may affect Google.

TABLE 1.2 BASIC MANAGERIAL SKILLS
Technical Skills: The skills necessary to accomplish or understand the specific kind of work being
done in an organization
• Examples: The manager of a software development company who understands how to
write and test relevant code and application; the manager of a restaurant chain knowing the
basics of food preparation
Interpersonal Skills: The ability to communicate with, understand, and motivate both individuals
and groups
• Examples: A manager who establishes a good relationship with an abrasive colleague; a
manager who can reprimand someone for poor performance while maintaining a positive
working relationship with that person
Conceptual Skills: The manager’s ability to think in the abstract

• Examples: The manager who first sees a new market for an existing product; a manager who
accurately forecasts a next-generation technology
Diagnostic Skills: The manager’s ability to visualize the most appropriate response to a situation
• Examples: A manager who can understand why customer complaints are increasing; the
manager who can quickly assess the impact of a new foreign trade agreement
Communication Skills: The abilities both to effectively convey ideas and information to others
and to effectively receive ideas and information from others
• Examples: The manager who can write an email that is both informative and
inspirational; a manager who can carefully listen to what others are saying and then craft
an effective reply
Decision-Making Skills: The manager’s ability to correctly recognize and define problems
and opportunities and to then select an appropriate course of action to solve problems and
capitalize on opportunities
• Examples: A manager who can quickly recognize the need for a decision and then frame
the nature of the decision that is required; the manager who recognizes that an earlier
decision did not result in a good outcome and so starts the decision-making process
over again
Time-Management Skills: The manager’s ability to prioritize work, to work efficiently, and to
delegate appropriately
• Examples: The manager who routinely tackles the most pressing and significant tasks and
delegates less significant tasks to others; a manager who does not easily get distracted by
irrelevant issues
Interpersonal Skills Managers spend considerable time interacting with people both
inside and outside the organization. For obvious reasons, then, the manager also needs
interpersonal skills—the ability to communicate with, understand, and motivate both indi-
viduals and groups. As a manager climbs the organizational ladder, he or she must be able to
get along with subordinates, peers, and those at higher levels of the organization. Because of
the multitude of roles managers must fulfill, a manager must also be able to work with suppli-
ers, customers, investors, and others outside the organization. Although some managers have
succeeded with poor interpersonal skills, a manager who has good interpersonal skills is like-
ly to be more successful. Sheryl Sandberg joined Facebook in 2008 as chief operating officer,
following careers at the World Bank, the Treasury Department, and Google. Sandberg is re- interpersonal skills
The ability to communicate
nowned for her interpersonal skills and sharp intellect, balancing CEO Mark Zuckerberg’s with, understand, and
introversion. These skills have helped to cultivate strong relationships with key advertisers motivate both individuals and
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and bring continued growth and stability to Facebook. groups

18
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Conceptual Skills Conceptual skills depend on the manager’s ability to think in the
abstract. Managers need the mental capacity to understand the overall workings of the
organization and its environment, to grasp how all the parts of the organization fit
together, and to view the organization in a holistic manner. This allows them to think
strategically, to see the “big picture,” and to make broad-based decisions that serve the
overall organization.
Diagnostic Skills Successful managers also possess diagnostic skills, or skills that enable
a manager to visualize the most appropriate response to a situation. A physician diagnoses
a patient’s illness by analyzing symptoms and determining their probable cause. Similarly,
a manager can diagnose and analyze a problem in the organization by studying its symp-
toms and then developing a solution.13 When the original owners of Starbucks failed to
make a success of the business, Howard Schultz took over and reoriented the business away
from mail order and moved it into retail coffee outlets. His diagnostic skills enabled him to
understand both why the current business model was not working and how to construct a
better one.
Communication Skills Communication skills refer to the manager’s abilities both to
effectively convey ideas and information to others and to effectively receive ideas and infor-
mation from others. These skills enable a manager to transmit ideas to subordinates so that
they know what is expected, to coordinate work with peers and colleagues so that they work
conceptual skills well together, and to keep higher-level managers informed about what is going on. In addi-
The manager’s ability to think tion, communication skills help the manager listen to what others say and to understand
in the abstract the real meaning behind emails, letters, reports, and other written communication. One
recent survey found that among corporate recruiters communication skills were very
diagnostic skills important—70 percent indicated that this was the most important skill set they looked for
The manager’s ability to
visualize the most appropriate in new recruits.14
response to a situation
Decision-Making Skills Effective managers also have good decision-making skills.
communication skills Decision-making skills refer to the manager’s ability to correctly recognize and define
The manager’s abilities both
to effectively convey ideas problems and opportunities and to then select an appropriate course of action to solve
and information to others and problems and capitalize on opportunities. No manager makes the right decision all the
to effectively receive ideas time. However, effective managers make good decisions most of the time. And when they
and information from others do make a bad decision, they usually recognize their mistake quickly and then make
good decisions to recover with as little cost or damage to their organization as possible.
decision-making skills
The manager’s ability to After joining Gap Inc. in 2007, CEO Glenn Murphy focused his energy on the Gap
correctly recognize and define brand in an effort to revive growth. However, when the company revealed its new logo in
problems and opportunities 2010, replacing its classic white and navy square logo, customer backlash quickly ensued
and to then select an as its brand identity crumbled. Gap took shoppers’ complaints to heart, scrapping the
appropriate course of action
new logo and reverting to its iconic brand. So flawed decision making may have led to
to solve problems and
capitalize on opportunities the logo change, but more effective decision making quickly allowed the firm to reverse
itself.
time-management skills
The manager’s ability to
Time-Management Skills Finally, effective managers usually have good time-manage-
prioritize work, to work
ment skills. Time-management skills refer to the manager’s ability to prioritize work, to work
efficiently, and to delegate
appropriately efficiently, and to delegate appropriately. As already noted, managers face many different
pressures and challenges. It is too easy for a manager to get bogged down doing work that can
easily be postponed or delegated to others.15 When this hap-
pens, unfortunately, more pressing and higher-priority work
”The important thing, besides getting up may get neglected.16 Jeff Bezos, CEO of Amazon.com, sched-
early, is to have a system by which you ules all his meetings on three days a week but insists on keep-
ing the other two days clear so that he can pursue his own
manage your tasks.” ideas and maintain the flexibility to interact with his employ-
—CHAD DICKERSON, CEO OF ETSY18 ees informally.17

Managers are called upon to play a variety of important roles. Manager’s

Managers also rely on a mix of key skills as they perform their jobs.
Checklist
You should strive to understand your relative strengths and weaknesses across
the key management skills and how those strengths and weaknesses affect
your job and job performance.
The Nature of Managerial Work

We have already noted that managerial work does not follow an orderly, systematic progres-
sion through the workweek. Indeed, the manager’s job is fraught with uncertainty, change,
interruption, and fragmented activities. Numerous studies suggest that in a typical day CEOs
are likely to spend their time in both scheduled and unscheduled meetings, doing “desk
work,” talking on the telephone, reading and responding to email, and reacting to various
situations requiring them to make decisions. (The time spent on each activity, of course,
varies constantly.) Moreover, the nature of managerial work continues to change in complex
and often unpredictable ways.19
In addition, managers perform a wide variety of tasks. In the course of a single day, for
example, a manager might have to make a decision about the design of a new product, settle a
dispute between two subordinates, hire a new assistant, write a report for her boss, coordinate
a joint venture with an overseas colleague, form a task force to investigate a problem, search
for information on the Internet, and deal with a labor griev-
ance. Moreover, the pace of the manager’s job can be relent-
less. He may feel bombarded by email, telephone calls, and
“Business is simple. Management’s
people waiting to see him. Decisions may have to be made job is to take care of employees. The
quickly and plans formulated with little time for reflection.20
But, in many ways, these same characteristics of manage-
employees’ job is to take care of the
rial work also contribute to its richness and meaningfulness. customers. Happy customers take care of
Making critical decisions under intense pressure, and making
them well, can be a major source of intrinsic satisfaction. And
the shareholders. It’s a virtuous circle.”
managers are usually well paid for the pressures they bear. —JOHN MACKEY, FOUNDER OF WHOLE FOODS21
The Science and the Art of Management

Given the complexity inherent in the manager’s job, a reasonable question relates to whether
management is a science or an art. In fact, effective management is a blend of both science
and art. And successful executives recognize the importance of combining both the science
and the art of management as they practice their craft.22
The Science of Management Many management problems and issues can be approached
in ways that are rational, logical, objective, and systematic. Managers can gather data, facts,
and objective information. They can use quantitative models and decision-making tech-
niques to arrive at “correct” decisions. And they need to take such a scientific approach to
solving problems whenever possible, especially when they are dealing with relatively routine
and straightforward issues. When Starbucks considers entering a new market, its managers
look closely at a wide variety of objective details as they formulate their plans. Technical,
diagnostic, and decision-making skills are especially important when approaching a manage-
ment task or problem from a scientific perspective.
The Art of Management Even though managers may try to be scientific as often as possible,
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they must also frequently make decisions and solve problems on the basis of intuition, experi-
ence, instinct, and personal insights. Relying heavily on conceptual, communication, interper-

20
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sonal, and time-management skills, for example, a manager may have to decide among multi-
ple courses of action that look equally attractive. And even “objective facts” may prove to be
wrong. When Starbucks was planning its first store in New York City, market research clearly
showed that New Yorkers preferred drip coffee to more exotic espresso-style coffees. After first
installing more drip coffee makers and fewer espresso makers than in their other stores, manag-
ers had to backtrack when New Yorkers lined up, clamoring
for espresso. Starbucks now introduces a standard menu and
“Business is really an art form. At its best, layout in all its stores, regardless of presumed market differ-
it’s the artistry of how people create ences, and then makes necessary adjustments later. Thus man-
agers must blend an element of intuition and personal insight
things together.” with hard data and objective facts.
—PETER SENGE, A LEADING BUSINESS EXPERT23
Becoming a Manager
How does one acquire the skills necessary to blend the sci-
ence and art of management and to become a successful
manager? Although there are as many variations as there are
managers, the most common path involves a combination
of education and experience.24 Figure 1.4 illustrates how
this generally happens.
The Role of Education Many of you reading this book are

Â©Matej Kastelic/Shutterstock.com
doing so because you are enrolled in a management course

at a college or university. Thus you are acquiring manage-
ment skills in an educational setting. When you complete
the course (and this book), you will have a foundation for
developing your management skills in more advanced cours-
es. A college degree has become almost a requirement for
career advancement in business, and virtually all CEOs in
Education plays an important role in helping managers develop the United States have a college degree. MBA degrees are
their skills. These managers are attending a seminar to help also common among successful executives today. More and
them better understand current trends and challenges in their more foreign universities, especially in Europe, are also be-
industry. ginning to offer academic programs in management.
FIGURE 1.4 SOURCES OF MANAGEMENT SKILLS

Most managers acquire their skills as a result of education and experience. Though a few
CEOs today do not hold college degrees, most students preparing for management careers
earn college degrees and may go on to enroll in MBA programs.
Sound educational
base; continued
life-long educational
experiences
Successful
acquisition and
utilization of basic
management skills
Initial job experiences;
continued experiences
through a variety of
job assignments

Even after obtaining a degree, most prospective managers have not seen the end of their
management education. Many middle and top managers periodically return to campus to par-
ticipate in executive or management development programs ranging in duration from a few
days to several weeks. First-line managers also take advantage of extension and continuing edu-
cation programs offered by institutions of higher education and/or through online media. A re-
cent innovation in extended management education is the executive MBA program offered by
many top business schools, in which middle and top managers with several years of experience
complete an accelerated program of study on weekends.25 Finally, many large companies have
in-house training programs for furthering managers’ education. Indeed, some firms have even
created what are essentially corporate universities to provide the specialized education they
feel is required for their managers in order for them to remain successful.26 General Electric,
McDonald’s, Shell Oil, and Halliburton are among the leaders in this area. Regardless of the
type of training, there is also a distinct trend toward online educational development for manag-
ers.27 The primary advantage of education as a source of management skills is that, as a student,
a person can follow a well-developed program of study, becoming familiar with current research
and thinking on management. And many college students can devote full-time energy and at-
tention to learning. On the negative side, management education is often very general, to meet
the needs of a wide variety of students, and specific know-how may be hard to obtain. Further,
many aspects of the manager’s job can be discussed in a book but cannot really be appreciated
and understood until they are experienced.
The Role of Experience This book will help provide you with a solid foundation for en-
hancing your management skills. Even if you were to memorize every word in every manage-
ment book ever written, however, you could not then step into a top management position
and immediately be effective. The reason? Management skills must also be learned through
experience. Most managers advanced to their present positions from other jobs. Only by ex-
periencing the day-to-day pressures a manager faces and by meeting a variety of managerial
challenges can one develop insights into the real nature and character of managerial work.
For this reason, most large companies, and many smaller ones as well, have developed
management training programs for their prospective managers. People are hired from college
campuses, from other organizations, or from the ranks of the organization’s first-line manag-
ers and operating employees. These people are systematically assigned to a variety of jobs.
Over time, the person is exposed to most, if not all, of the major aspects of the organization.
In this way the manager learns by experience. The training programs at some companies,
such as Procter & Gamble, General Mills, and Shell Oil, are so good that other companies
try to hire people who have graduated from them.28 Even without formal training programs,
managers can achieve success as they profit from varied experiences. For example, Herb
Kelleher was a practicing attorney before he took over at Southwest Airlines and led it to
become one of the most successful and admired businesses in the United States. Of course,
natural ability, drive, and self-motivation also play roles in acquiring experience and develop-
ing management skills.
Most effective managers learn their skills through a combination of education and experi-
ence. Some type of college degree, even if it is not in business administration, usually provides a
foundation for a management career. The person then gets his or her first job and subsequently
progresses through a variety of management situations. During the manager’s rise in the orga-
nization, occasional education “updates,” such as management development programs, may
supplement on-the-job experience. And, increasingly, managers need to acquire international
expertise as part of their personal development. As with general managerial skills, international
expertise can be acquired through a combination of education and experience.29
The Scope of Management

When most people think of managers and management, they think of profit-seeking or-
Not For Sale

ganizations. Throughout this chapter, we use people like Sergey Brin and Larry Page of

22
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Google, Elaine Wherry of Meebo, and Howard Schultz of Starbucks as examples. But we
also provide examples from sports, religion, and other fields in which management is es-
sential. Indeed, any group of two or more persons working together to achieve a goal and
having human, material, financial, or informational resources at its disposal requires the
practice of management.
Managing in Profit-Seeking Organizations Most of what we know about

management comes from large profit-seeking organizations because their survival has
long depended on efficiency and effectiveness. Examples of large businesses include
industrial firms such as ExxonMobil, Toyota, BMW, Abercrombie & Fitch, Unilever, and
Levi Strauss; commercial banks such as Citicorp, Fuji Bank, and Wells Fargo; insurance
companies such as Prudential, State Farm, and Metropolitan Life; retailers such as Urban
Outfitters, Kroger, and Target; transportation companies such as United Airlines and
Consolidated Freightways; utilities such as Pacific Gas & Electric and Consolidated
Edison of New York; communication companies such as CBS and the New York Times
Company; and service organizations such as Kelly Services, KinderCare Learning Centers,
and Century 21 Real Estate.
Although many people associate management primarily with large businesses, ef-
fective management is also essential for small businesses, which play an important role
in the country’s economy. In fact, most of this nation’s businesses are small. In some
respects, effective management is more important in a small business than in a large
one. A large firm such as ExxonMobil or Apple can recover relatively easily from los-
ing several thousand dollars on an incorrect decision; even losses of millions of dollars
would not threaten their long-term survival. But it may be that a small business can ill
afford even a much smaller loss. Of course, some small businesses become big ones.
Dell Computer, for example, was started by one person—Michael Dell—in 1984. By
2015 it had become one of the largest businesses in the United States, with annual
sales of almost $57 billion.
In recent years, the importance of international management has increased
dramatically. The list of U.S. firms doing business in other countries is staggering.
ExxonMobil, for example, derives around 62 percent of its revenues from foreign mar-
kets, and Coca-Cola derives almost half of its sales from foreign markets. Other major
U.S. exporters include General Motors, General Electric, Boeing, and Caterpillar.
And even numbers like Ford’s are decep-
tive. For example, the automaker has large
subsidiaries based in many European coun-
tries whose sales are not included as foreign
revenue. Moreover, a number of major
firms that do business in the United States
have their headquarters in other countries.
Firms in this category include the Royal
Dutch/Shell Group (the Netherlands), Fiat
S.p.A. (Italy), Nestlé S.A. (Switzerland),
and Four Seasons (Canada). International
management is not, however, confined to
profit-seeking organizations. Several inter-
Image Source/Getty Images
national sports federations (such as Little

League Baseball), branches (embassies) of
the federal government, and the Roman
Catholic Church are established in most
countries as well. In some respects, the
military was one of the first multinational
A U.S.-based manager meets with his Middle-East based colleagues organizations. International management
to strategize their global marketing plans. is covered in depth in Chapter 5.

Managing in Not-for-Profit Organizations

Intangible goals such as education, social ser-
vices, public protection, and recreation are
often the primary aim of not-for-profit organiza-
tions. Examples include United Way of America,
the U.S. Postal Service, Girl Scouts of the
U.S.A., the International Olympic Committee,
art galleries, museums, and the Public
Broadcasting System (PBS). Although these and
similar organizations may not have to be profit-
Steve Jennings/Getty Images

able to attract investors, they must still employ
sound management practices if they are to sur-
vive and work toward their goals.30 And they
must handle money in an efficient and effective

way. If the United Way were to begin to spend
larger portions of its contributions on salaries
and perks for its top managers, contributors Marina Park, CEO, Girl Scouts of Northern California speaks at the
would lose confidence in the organization and podium at the ceremony for Girl Scouts of the USA and National Park
make their charitable donations elsewhere. Service. As head of this non-profit, Park is often called upon for speaking
The management of government organiza- engagements.
tions and agencies is often regarded as a s eparate
specialty: public administration. Government organizations include the Federal Trade
Commission (FTC), the Environmental Protection Agency (EPA), the National Science
Foundation, all branches of the military, state highway departments, and federal and state
prison systems. Tax dollars support government organizations, so politicians and citizens’
groups are acutely sensitive to the need for efficiency and effectiveness. For instance, the
FTC’s annual budget is $300 million.
Public and private schools, colleges, and universities all stand to benefit from the ef-
ficient use of resources. Growing pressures on state budgets have reduced money available
for education. Fewer resources combined with surging costs, in turn, force administrators to
make tough decisions about allocating remaining resources.
Managing healthcare facilities such as clinics, hospitals, and HMOs (health mainte-
nance organizations) is now considered a separate field of management. Here, as in other
organizations, scarce resources dictate an efficient and effective approach. In recent years
some universities have established healthcare administration programs to train managers as
specialists in this field.
Good management is also required in nontraditional settings to meet established goals.
To one extent or another, management is practiced in religious organizations, terrorist
groups, fraternities and sororities, organized crime, street gangs, neighborhood associations,
and individual households. In short, as we noted at the beginning of this chapter, manage-
ment and managers have a profound influence on all of us.
Management involves a mix of science (based on logic and objectivity) and art Manager’s
(using intuition and instinct). Checklist
Both education and experience play important roles in a manager’s career
and success.
Management is needed in both profit-seeking and not-for-profit
organizations.
Remember that learning is a lifelong process—you should never think that
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your management education is “finished.”

24
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The New Workplace

One of the most interesting characteristics of managerial work is the rapidly changing
workplace.31 Indeed, this new workplace is accompanied by dramatic challenges and
amazing opportunities. Among other things, workplace changes relate in part to both
workforce reductions and expansion. For example, many firms hired large numbers of
new workers during the economic expansion that took place between 2002 and early
2008. But as the recession of 2008–2010 took hold, many of those same firms had to
reduce their workforces while others cut hours and pay and suspended all hiring until
conditions showed signs of improvement. And as economic growth began anew in 2011,
these firms began to cautiously proceed with new hiring. But even more central to the
idea of workplace change are such developments as workforce diversity and characteristics
of the new workers themselves.
The management of diversity continues to be an important organizational o pportunity—
and challenge—today. The term diversity refers to differences among people. Diversity
may be reflected along many dimensions, but most managers tend to focus on age, gender,
ethnicity, and physical abilities and disabilities.32 For example, the average age of workers
in the United States is gradually increasing. This is partly because of declining birthrates
and partly because people are living and working longer. Some organizations have found
retirees to be excellent part-time and temporary employees. McDonald’s has hired hun-
dreds of elderly workers in recent years. Apple Computer has used many retired workers for
temporary assignments and projects. By hiring retirees, the organization gets the expertise
of skilled workers, and the individuals get extra income and an opportunity to continue to
use their skills.
An increasing number of women have also entered the U.S. workforce. Fifty years
ago only about one-third of U.S. women worked outside their homes; in 2014 over 57
percent of women aged 16 and older are in the workforce. Many occupations tradition-
ally dominated by women—nursing, teaching, secretarial work—continue to be popular
with females. But women have also moved increasingly into occupations previously domi-
nated by males, becoming lawyers, physicians, and executives. Further, many blue-collar
jobs are increasingly being sought by women, and women are increasingly moving into
positions such as business ownership as entrepreneurs and as senior executives in major
corporations. Similarly, more and more men are also entering occupations previously
dominated by women. For example, there are more male office assistants and nurses today
than ever before.
The ethnic composition of the workplace is also changing. One obvious change
has been the increasing number of Hispanics and African Americans in the workplace.
Further, many of these individuals now hold executive positions. There has also been a
dramatic influx of immigrant workers to the United States in the last few years. Immigrants
and refugees from Central America and Asia have entered the U.S. workforce in record
numbers.
The passage of the Americans with Disabilities Act also brought to the forefront the im-
portance of providing equal employment opportunities for people with various disabilities.
As a result, organizations are attracting qualified employees from groups that they may once
have ignored. Clearly, then, along just about any dimension imaginable, the workforce is be-
coming more diverse. Workforce diversity enhances the effectiveness of most organizations,
but it also provides special challenges for managers.
Aside from its demographic composition, the workforce today is changing in other ways
as well. During the 1980s, many people entering the workforce were what came to be called
yuppies, slang for “young urban professionals.” These individuals were highly motivated by
career prospects, sought employment with big corporations, and often were willing to make
work their highest priority. Thus, they put in long hours and could be expected to remain
loyal to the company, regardless of what happened.

But younger people entering the workforce over the past 20 to 30 years are often quite
different from their parents and other older workers. Generation X, Generation Y, and the
Millennials, as these groups are called, tend to be less devoted to long-term career prospects
and less willing to adapt to a corporate mind-set that stresses conformity and uniformity.
Instead, they often seek work in smaller, more entrepreneurial firms that allow flexibility and
individuality. They also place a premium on lifestyle preferences, often putting location high
on their list of priorities when selecting an employer.
Thus managers are increasingly faced with the challenge of first creating an environment
that will be attractive to today’s worker. Second, managers must address the challenge of
providing new and different incentives to keep people motivated and interested in their work.
They must build enough flexibility into the organization to accommodate an ever-changing
set of lifestyles and preferences. And, of course, as these generations eventually move into
top spots of major corporations, there may even be entirely new paradigms for managing that
cannot be foreseen today.33

Managers must also be prepared to address organization change.34 This has always
been a concern, but the rapid, constant environmental change faced by businesses today
has made change management even more critical. Simply put, an organization that fails
to monitor its environment and to change to keep pace with that environment is doomed
to failure. But more and more managers are seeing change as an opportunity, not a cause
for alarm. Indeed, some managers think that if things get too calm in an organization and
people start to become complacent, managers should shake things up to get everyone
energized.
New technology, especially as it relates to information, also poses an increasingly im-
portant challenge for managers. Communications advances such as smartphones and other
wireless communication networks have made it easier than ever for managers to communi-
cate with one another. At the same time, these innovations have increased the pace of work
for managers, cut into their time for thoughtful contemplation of decisions, and increased
the amount of information they must process. Moreover, as firms come to depend more and
more on communication technologies, they also become more vulnerable. Sony’s motion
picture division, for instance, was hacked in late 2014, apparently in response to its impend-
ing release of a new movie.
A final element of the new workplace we will note here is the complex array of new ways
of organizing that managers can consider. Many organizations strive for greater flexibility
and the ability to respond more quickly to their environments by adopting flatter structures.
These flat structures are characterized by fewer levels of management, wider spans of man-
agement, and fewer rules and regulations. The increased use of work teams also goes hand in
hand with this new approach to organizing. We will examine these new ways of organizing
in Chapters 11 and 18.
There are a variety of different forces playing a role in defining the new Manager’s
workplace. Checklist
Remember to remain vigilant for new trends and issues that will affect
managers and organizations in the future.
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26
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Summary of Learning Outcomes and Key Points

1. Describe the nature of management, define manage- • Interpersonal roles (figurehead, leader, and liaison)
ment and managers, and characterize their importance • Informational roles (monitor, disseminator, and
to contemporary organizations. spokesperson)
• Management is a set of activities (including planning • Decisional roles (entrepreneur, disturbance handler,
and decision making, organizing, leading, and con- resource allocator, and negotiator)
trolling) directed at an organization’s resources • Key management skills are technical, interpersonal,
(human, financial, physical, and information) with conceptual, diagnostic, communication, decision-
the aim of achieving organizational goals in an making, and time-management skills.
efficient and effective manner. 5. Discuss the science and the art of management, describe
• A manager is someone whose primary responsibility how people become managers, and summarize the
is to carry out the management process within an scope of management in organizations.
organization.
• The effective practice of management requires a syn-
2. Identify and briefly explain the four basic management thesis of science and art, that is, a blend of rational
functions in organizations. objectivity and intuitive insight.
• Planning and decision making (determining courses • Most managers attain their skills and positions
of action) through a combination of education and experience.
• Organizing (coordinating activities and resources) • Management processes are applicable in a wide vari-
• Leading (motivating and managing people) ety of settings, including p rofit-seeking organizations
• Controlling (monitoring and evaluating activities) (large, small, and start-up businesses and international
• These activities are not performed on a systematic businesses) and not-for-profit organizations (govern-
and predictable schedule. ment organizations, educational organizations, health-
care facilities, and nontraditional organizations).
3. Describe the kinds of managers found at different levels
and in different areas of the organization. 6. Characterize the new workplace that is emerging in
organizations today.
• By level, we can identify top, middle, and first-line
managers. • The new workplace is characterized by workforce
• Kinds of managers by area include marketing, expansion and reduction.
financial, operations, human resource, administra- • Diversity is also a central component, as is the new worker.
tive, and specialized managers. • Organization change is also more common, as are
the effects of information technology and new ways
4. Identify the basic managerial roles played by managers of organizing.
and the skills they need to be successful.
Discussion Questions
Questions for Review
1. Contrast efficiency and effectiveness. Give an example 3. Briefly describe the seven basic managerial skills. Give
of a time when an organization was effective but not an example of each.
efficient, efficient but not effective, both efficient and
4. Describe a typical manager’s day. What are some of the
effective, and neither efficient nor effective.
expected consequences of this type of daily
2. What are the four basic activities that comprise the man- experience?
agement process? How are they related to one another?
Questions for Analysis

5. Recall a recent group project or task in which you have 6. The text notes that management is both a science and
participated. Explain how members of the group dis- an art. Recall an interaction you have had with a
played each of the managerial skills. “superior” (manager, teacher, group leader). In that

interaction, how did the superior use science? If he or 7. Visit the websites of at least five large corporations and
she did not use science, what could have been done to locate a biography of each CEO. What formal manage-
use science? In that interaction, how did the superior ment education do these leaders have? In your opinion,
use art? If he or she did not use art, what could have what is the appropriate amount of formal education
been done to use art? needed to be a corporate CEO? Why?
Questions for Application

8. Interview a manager from a local organization. Learn 10. Watch a movie or television program that involves an
about how he or she performs each of the functions of organization of some type. Diverse examples include
management, the roles he or she plays, and the skills Draft Day, Iron Man, or one of the newer Harry Potter
necessary to do the job. or James Bond movies (or perhaps Citizen Kane for
classic movie buffs). For television, options like Board-
9. Find an organization chart. You can find one in the li-
walk Empire, Downton Abbey, or The Good Wife would
brary or by searching online. Locate top, middle, and

first-line managers on the chart. What are some of the work. Identify as many management activities, skills,
job titles held by persons at each level? and roles as you can.
Building Effective Time-Management Skills

Exercise Overview
Time-management skills refer to the ability to prioritize tasks, skills and to gather some suggestions for how you can improve
to work efficiently, and to delegate appropriately. This exer- in this area.
cise allows you to assess your own current time-management
Exercise Background
As we saw in this chapter, effective managers must be pre- will affect significant areas of one’s life or work. Next, Covey
pared to switch back and forth among the four basic activities plots both types of tasks on a grid with four quadrants: A task
in the management process. They must also be able to fulfill may be urgent, critical, urgent and critical, or not urgent and
a number of different roles in their organizations, and they not critical.
must exercise a variety of managerial skills in doing so. On Most managers, says Covey, spend too much time on
top of everything else, their schedules are busy and full of tasks that are urgent when in fact they should be focused on
tasks—personal and job-related activities that require them to tasks that are critical. He observes, for example, that manag-
“switch gears” frequently throughout the workday. ers who concentrate on urgent tasks meet their deadlines
Stephen Covey, a management consultant and author but tend to neglect such critical areas as long-term planning.
of The 7 Habits of Highly Effective People, has developed a (Unfortunately, the same people are also apt to neglect criti-
system for prioritizing tasks. First, he divides them into two cal areas of their personal lives.) In short, effective managers
categories—urgent and critical. Urgent tasks, such as those must learn to balance the demands of urgent tasks with those
with approaching deadlines, must be performed right away. of critical tasks by redistributing the amount of time devoted
Critical tasks are tasks of high importance—say, those that to each type.
Exercise Task
1. Visit the website of FranklinCovey (the firm cofounded 3. Think of a task that you regularly perform and which, if
by Stephen Covey). Specifically, follow this link: www. you were being perfectly honest, you could label not ur-
franklincovey.com/urgencyanalysis/ua-prof.html. Now gent and not critical. How much time do you spend on
take the “Urgency Analysis Profile,” a brief online survey this task? What might be a more appropriate amount of
that should take about 10 minutes. time? To what other tasks could you give some of the
2. Now look over your profile and examine the assessment time that you spend on this not-urgent-not-critical task?
of your current use of time and the suggestions for how 4. What one thing can you do today to make better use of
you can improve your time management. In what ways your time? Try it to see if your time management
do you agree and disagree with your personal assess- improves.
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ment? Explain your reasons for agreeing or disagreeing.

28
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Building Effective Conceptual Skills

Exercise Overview
Your conceptual skills reflect your ability to think in the ab- ifferent kinds of management functions, roles, and skills in
d
stract. This exercise will help you extend your conceptual different kinds of organizations.
skills by identifying and analyzing situations that call for
Exercise Background
This chapter includes discussions of four management func- Write the names of these five organizations across the top
tions, ten management roles, and seven management skills. It of a sheet of paper. Then list the four functions, ten roles,
also stresses the idea that management activities are necessary and seven skills down the left side of the sheet. Now put your
in many different kinds of organizations. imagination to work: Think of a situation, a problem, or an
Start by identifying five different types of organizations: one opportunity that fits at the intersection of each row and col-
large business, one small business, one educational organiza- umn on the sheet. The dean of your college, for example,
tion, one healthcare organization, and one government organi- must perform a leadership role and apply interpersonal skills.
zation. You might choose organizations about which you have The manager of an all-night diner must perform an organiz-
some personal knowledge or organizations that you simply rec- ing function and play the role of monitor.
ognize by name and industry. Next, put yourself in the position
of a top manager in each of your five specific organizations.
Exercise Task
1. Do you notice any patterns of meaningful similarities in or three reasons why managers might find it difficult to
functions, roles, or skills across the five columns? Are move from one type of organization to another.
there, for example, similarities in performing leadership
3. Identify two or three places on your grid where the inter-
roles or applying communication skills in most or all of
section between a type of organization and a function,
the five types of organization? Do you notice any pat-
role, or skill suggests something at which you might be
terns of meaningful differences?
particularly good. How about something at which, at
2. Based on your assessment of the patterns of similarities least right now, you think you wouldn’t be very good.
and differences that you identified in task 1, give two or Explain your reasoning.
three reasons why managers might find it easy to move
from one type of organization to another. Give two
Skill-Building Personal Assessment

How Do I Rate as a Manager?
This self-assessment will help you understand your current This may have been at work, in a class, or in a church, club, or
understanding of the practice of management and your own civic organization. Now assess your behavior in each of the
approach to management. This assessment outlines four im- functions. For each question, rate yourself according to the
portant functions of management: planning, organizing, following scale.
leading, and controlling. You should respond to this in one of
three ways: Rating scale: Insert your score from one of the following five
options for each of the statements that follow:
(a.) respond based on your own managerial experience if
you have any; • 5 Definitely true of me
(b.) respond about effective (or ineffective) managers you • 4 Probably true of me
have observed in your work experience; or • 3 Neither true nor not true, or undecided
(c.) respond in terms of how you think an ideal manager • 2 Probably not true of me
should behave. • 1 Definitely not true of me
Instructions: Recall a situation in which you were a member of

a group or team that had a specific task or project to c omplete.

I. Planning 3. I try to keep a balance between getting the work

1. I prepare an agenda for meetings. done and keeping a spirit of teamwork.
2. I try to anticipate what will happen in the future 4. I try to handle conflict in nonthreatening, con-
as a result of my current actions and decisions. structive ways.
3. I establish clear goals for myself and others. 5. I help others in the group and provide them
4. I carefully analyze the pros and cons involved in with guidance and training to b etter perform
situations before reaching decisions. their roles.
5. I am quite willing to try new things, to 6. I am open to suggestions from others.
experiment. 7. I keep everyone informed about the group’s ac-
6. I have a clear vision for accomplishing the task tivities and progress.
at hand. 8. I show a genuine interest in the work of others.
7. I put plans in writing so that others can know ex- 9. I am considerate when providing constructive
actly what they are. suggestions to others.
8. I try to remain flexible so that I can adapt to 10. I understand the needs of others and encourage
changing conditions. their initiative in meeting those needs.
9. I try to anticipate barriers to goal accomplish- Section III Total

ment and how to overcome them.
10. I discuss plans and involve others in arriving at IV. Controlling
those plans. 1. I regularly assess the quantity and quality of
Section I Total progress on the task at hand.
2. I try to assure that the information I have is
II. Organizing timely, accurate, complete, and relevant.
1. I try to follow the plan while working on the 3. I routinely share information with others to help
task. them accomplish their tasks.
2. I try to develop any understanding of the differ- 4. I compare progress with plans and take correc-
ent steps or parts needed to accomplish the task tive action as warranted.
at hand. 5. I manage my time and help others to manage
3. I evaluate different ways of working on the task theirs.
before deciding on which course of action to 6. I have good sources of information or methods
follow. for obtaining information.
4. I have a clear sense of the priorities necessary to 7. I use technology (computers, tablets, smartphones,
accomplish the task. etc.) to aid in monitoring progress and commu-
5. I arrange for others to be informed about the de- nicating with others.
gree of progress in accomplishing the task. 8. I anticipate possible negative reactions and take
6. I am open to alternative, even novel ways of action to minimize them.
working on the task. 9. I recognize that fixing problems before they oc-
7. I adapt the sequence of activities involved if cir- cur is better than fixing problems after they
cumstances change. occur.
8. I have a clear sense of how the steps involved in 10. I try to balance my attention on the many different
accomplishing the task should be structured. steps needed to accomplish the task at hand.
9. I lead or follow where appropriate to see to it Section IV Total
that progress is made toward a ccomplishing the
task. Source: Adapted from D. D. Van Fleet, E. W. Van Fleet, and G. J. Seperich,
Principles of Management for Agribusiness (Clifton Park, NY: Cengage
10. I coordinate with others to assure steady progress Learning, 2013); R. W. Griffin, Management (Mason, OH: Cengage
on the task. Learning, 2011); and D. D. Van Fleet, Behavior in Organizations (Boston:
Section II Total Houghton Mifflin, 1991) in collaboration with G. Moorhead and R. W.
Griffin.
III. Leading
1. I set an example for others to follow.
2. I am effective at motivating others.
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30
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Management at Work
Officers and Gentlemen Behaving Badly
B
etween the fall of 2012 and the spring of 2014, the face court-martial in 60 years, but a two-year trial ended in
U.S. military was embarrassed by a series of ethical March 2014, when Sinclair pleaded guilty to adultery and
breaches, mostly incidents involving sexual misbehav- a few other minor charges. He was fined $20,000 but got
ior among high-ranking officers. In October 2013, for exam- no jail time, and prosecutors recommended that he be al-
ple, Air Force Maj. Gen. Michael Carey was fired from a job lowed to retire with a lieutenant colonel’s pension. “It’s a
that put him in charge of 450 intercontinental ballistic mis- terrible outcome,” said the attorney for Sinclair’s accuser,
siles for getting drunk and carousing with “suspect” women “and by failing to render justice today, the Army’s going to
while on an official mission to Moscow. Carey resigned— face the reality that this could happen again.” California
minus one general’s star and at a slightly lower pension—in Congresswoman Jackie Speier put the response of critics
April 2014. more bluntly: “This sentence,” she said, “is a mockery of
At least one officer took it upon himself to clamp down military justice. . . . For a sexual predator to gain the rank
on unbecoming conduct in his command. At Fort Jackson, that [Gen. Sinclair] has gained, go through a court-martial,
S.C., Army Brig. Gen. Bryan T. Roberts publicly warned and be given a slap on the wrist suggests . . . that the system
his troops that “the Army has zero tolerance for sexual does not work.”
h arassment and sexual assault, and so do I. . . . All of us A week later, Secretary of Defense Chuck Hagel followed
have a shared role in ridding our ranks of this cancerous through on a promise that he’d made in February to appoint
conduct.” Unbeknownst to Roberts, he was under investi- a Senior Advisor for Military Professionalism—in effect, an
gation by the Army for charges of assault on a woman who ethics officer at the Pentagon. “I want someone,” said Hagel,
alleged that she’d been having an affair with the married “who understands . . . the pressures of combat, the pressures
general for 18 months—a relationship that had turned vi- of curriculums and testing, and who has a well-rounded
olent on several occasions. The investigation also turned background in command.” The job went to Navy Rear Adm.
up two other women who admitted to having affairs with Margaret D. Klein, who reported directly to Hagel on issues
Roberts, who was convicted of adultery (a crime under related to military ethics, character, and leadership.
the Uniform Code of Military Justice) and assault. He was A naval flight officer with a master’s degree in education,
fined $5,000 and issued a written reprimand but held on to Klein is a former commandant of midshipmen at the U.S.
his general’s star. According to his attorney, Roberts will be Naval Academy and chief of staff, U.S. Cyber Command.
“retiring soon.” She’s logged more than 4,500 hours in command and con-
Meanwhile, at Fort Bragg, N.C., Col. Martin P. Sch- trol aircraft and held operational positions in an airborne
weitzer followed up a meeting with newly elected Con- command squadron and an aircraft carrier strike group.
gresswoman Renee L. Ellmers with emails to fellow Klein “brings to the position a wealth of operational leader-
officers in which he described her as “smoking hot” and ship and experience,” said Hagel in a written statement. “She
an apt candidate for a few sexually explicit activities. A year also knows that ethics and character are absolute values that
later, Schweitzer was forced to admit to investigators that must be constantly reinforced. . . .
he’d been “childish” and “truly stupid.” Concluding that “An uncompromising culture of accountability,” con-
the colonel had “failed to demonstrate exemplary con- cluded Hagel, “must exist at every level of command.” For
duct,” the Army inspector general’s office cited Schweitzer her part, Klein is convinced that ethics goes hand in hand
for misuse of his government email account and placed a with professionalism: “When you think about what goes into
“memorandum of concern” in his personnel file. Now a military professionalism,” she says,
brigadier general, Schweitzer works at the Pentagon for the
Joint Chiefs of Staff. the first word that comes to mind is ethics. . . . We are
How did Schweitzer’s “stupid” email fall into the hands deeply concerned about the profession. . . . But it’s
of the inspector general in the first place? Schweitzer, it more than that. It’s about leadership. That is what we
seems, had copied Brig. Gen. Jeffrey A. Sinclair, deputy all have in common. We are all leaders, whether in ci-
commander of Fort Bragg’s 82nd Airborne Division. As vilian clothes or in the uniform of our country. . . . As a
luck would have it, Sinclair’s emails were under surveil- profession, we don’t exist because we are a jobs pro-
lance in a search for evidence of misconduct that could gram. We don’t exist to perpetuate ourselves. . . . We’re
have landed him in prison for life, including sexual assault an instrument of national power, and we take an oath
on a female captain with whom he had carried on a three- to the Constitution. . . . We’re judged against that spe-
year affair. Sinclair became only the third Army general to cial trust and confidence that’s placed in us. . . . So

our actions—good and bad—reflect on the profession, one of us realizes that it’s our responsibility—our
and it’s the profession that we’re responsible to. . . . We duty—to eradicate [certain] behaviors from our profes-
can put all the programs and policies in place to say sion, they’ll continue to exist.
that we don’t condone “X” behavior, but until each
Case Questions
1. The text reminds us that the U.S. military is a “govern- are the goals of the U.S. military? The text also defines
ment organization” that requires managers. It adds, how- leading as “the set of processes used to get members of
ever, that managing such an organization is often an organization to work together to further the interests
regarded as a “separate specialty.” What do you think the of the organization,” including meeting its goals. What
“separate specialty” entails in this context? In what re- can and should military leaders do to improve the orga-
spects is Adm. Margaret Klein qualified in the “separate nization’s efforts to meet its goals? Why are ethical
specialty” that’s required for success in her job as Senior standards important in these efforts, and what can
Advisor for Military Professionalism? military leaders do to improve adherence to ethical

standards?
2. The case indicates that the Senior Advisor for Military
Professionalism is essentially “an ethics officer at the 4. A profession can be defined as an occupation, practice,
Pentagon.” According to one simple explanation, an eth- or vocation requiring mastery of a complex set of knowl-
ics officer “aligns the practices of a workplace with the edge and skills through formal education and/or practi-
stated ethics and beliefs of that workplace, holding peo- cal experience. Professional ethics can be defined as
ple accountable to ethical standards.” In what ways must professionally accepted standards of personal and occu-
a successful ethics officer play Mintzberg’s ten different pational behavior, values, and guiding principles. Thus a
managerial roles? If you were to advise Adm. Klein on “profession” is a specific kind of job with certain specific
the relative importance of these roles, in what order rules for performing job-related activities. How do pro-
would rank them, from most to least important? fessional ethics influence job-related activities in ways
that don’t necessarily apply in “nonprofessional”
3. According to the text, not-for-profit organizations try to
situations?
meet “intangible goals.” What, in the broadest sense,
Case References
James Joyner, “The U.S. Military’s Ethics Crisis,” The National Interest on May 22, 2014; Phil Stewart, “As Scandals Swell, U.S. Defense Chief
(February 13, 2014), http://nationalinterest.org, on May 22, 2014; Craig to Install Ethics Officer,” Reuters (February 7, 2014), www.reuters.com,
Whitlock, “Military Brass, Behaving Badly: Files Detail a Spate of on May 22, 2014; Philip Ewing, “Chuck Hagel Preaches ‘Professionalism’
Misconduct Dogging Armed Forces,” Washington Post (January 26, 2014), amid Scandal,” Politico (March 27, 2014), www.politico.com, on
www.washingtonpost.com, on May 22, 2014; Craig Whitlock, “Disgraced May 22, 2014; Jennifer Hlad, “Hagel Appoints Top Ethics Officer,”
Army General, Jeffrey A. Sinclair, Gets $20,000 Fine, No Jail Time,” Stars and Stripes (March 25, 2014), www.stripes.com, on May 22,
Washington Post (March 20, 2014), www.washingtonpost.com, on May 22, 2014; Tyrone C. Marshall Jr., “Ethics Advisor Equates Professionalism
2014; Gregg Zoroya, “General Avoids Jail Time in Case Involving Affair with Leadership,” American Forces Press Service (May 15, 2014),
with Subordinate,” USA Today (March 20, 2014), www.usatoday.com, www.defense.gov, on May 22, 2014
YOU MAKE THE CALL How to Make Mistakes and Influence People
1. Wherry organizes her thoughts on managerial mistakes How is this level-by-level approach reflected in the
by documenting problems at different levels of an orga- kinds of mistakes that Wherry identifies? Why is this ap-
nization’s management hierarchy. Here, for example, is proach effective in identifying mistakes? How can it be
the hierarchy at Meebo, along with a few words of ad- effective in avoiding mistakes?
vice from Wherry:
2. Here’s one of Wherry’s stories:
• Individual code writer (“Don’t turn down anyone Remember your first job? You were thrilled to join the
offering help”) company but shocked to find less than perfection there—
• Manager (“Stop trying to do your old job”) software has bugs and reports have spelling errors. Your
• Director (“Don’t promote someone and then disappear”) response? You send out an email to the whole company
• Vice president (“Don’t reverse a plan midstream”) telling everyone how to fix these problems. No one re-
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• CEO (“Never let your guard down”) sponds, but you do get invited to a meeting. You’re stoked!

32
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At the meeting, one participant says his design 4. What about you? How do you react when faced with
project is a little behind, so you stick your hand up to the fact that you’ve made a mistake?
offer to help out. Your manager warns you that you Generally speaking . . .
have a lot on your plate already, but you assure him
1) . . . do you reassess the task that you were asked to
you’ve got it all under control. In reality, you’re actually
perform to better grasp why (and how) you were
hugely far behind, so you pull an all-nighter—that’s al-
asked to perform it?
ways worked before. Unfortunately, the results aren’t as
2) . . . what’s your emotional response when you real-
amazing as you’d like this time. So you get a two-week
ize or are told that you’ve made a mistake?
extension. Meanwhile, you feel like everything goes too
3) . . . how do you respond to any criticism that you
slowly at the company, and all of your friends who are
receive because of your mistake?
still in school are posting Facebook pictures of them-
4) . . . do you reassess your relationships with other
selves on the beach. The result: you decide to make a
people as a result of your mistake?
change and move on to a new company.
5) . . . do you determine to focus more on getting
What mistakes is this new employee making? What
things done particularly well and less on getting
advice would you offer (be as specific as you can)?
along with everyone else?
3. Wherry doesn’t think that leaving Meebo was a
mistake. At the time of the Google sale, she was These questions are broadly adapted from an article
spending most of her time training new hires and man- entitled “Five Mistakes Smart People Make at Work,”
aging her team and less time developing products, which appeared in U.S. News & World Report on Febru-
which was her strong suit and what she preferred to be ary 26, 2014. You might want to check the article itself
doing. Besides, she says, a founder’s objective is to “hire for the brief discussion accompanying each question.
oneself out of a role.” What does she mean by that Also, as you may have noticed when you were reading
statement? Why do many successful founders appear to the list, it could have come from a piece on “Five Mis-
disagree? takes Smart People Make in School.”
Endnotes
1 “Why Did a Successful Entrepreneur Keep a Diary of Her Mistakes?” CBS Steven W. Floyd, “The Middle Management Perspective on Strategy Process:
News (April 27, 2013) [video], www.cbs.com, on May 13, 2014; Rachel Emma Contributions, Synthesis, and Future Research,” Journal of Management, 2008,
Silverman, “The Manager Who Kept a Six-Year Diary of Her Mistakes,” At Work, Vol. 34, No. 6, pp. 1190–1221; and Anneloes Raes, Marielle Heijltjes, Ursula
(March 29, 2013), http://blogs.wsj.com, on May 13, 2014; Janet Choi, “Elaine Glunk, and Robert Row, “The Interface of the Top Management Team and
Wherry: Never Let a Good Mistake Go to Waste,” Women 2.0 (September 16, Middle Managers: A Process Model,” Academy of Management Review,
2013), http://women2.com, on May 13, 2013; Jessica Stillman, “Elaine Wherry: January 2011, pp. 102–126.
A Visual Guide for First-Time Founders,” Women 2.0 (November 16, 2013), 10 John P. Kotter, “What Effective General Managers Really Do,” Harvard Business
http://women2.com, on May 13, 2014; McKinney, “McKinney’s SxSW Journal,” Review, March–April 1999, pp. 145–155. See also Peter Drucker, “What Makes an
mckinney.com (March 10, 2013), http://mckinneysxsw.tumblr.com on May 13, Effective Executive,” Harvard Business Review, June 2004, pp. 58–68.
2013; Lynn Dixon, “The Value of Making Mistakes,” Hourly.com (May 1, 2013), 11 Henry Mintzberg, The Nature of Managerial Work (Englewood Cliffs, NJ: 1973).
http://blog.hourly.com, May 13, 2014; Katie Morell, “Building an Empire: 12 See Robert L. Katz, “The Skills of an Effective Administrator,” Harvard Business
Meebo’s Elaine Wherry,” American Express OPEN Forum (October 1, 2012), Review, September–October 1974, pp. 90–102, for a classic discussion of several
https://www.americanexpress.com, on May 13, 2014. of these skills. For a recent perspective, see J. Brian Atwater, Vijay R. Kannan,
2 Fred Luthans, “Successful vs. Effective Real Managers,” Academy of Management and Alan A. Stephens, “Cultivating Systemic Thinking in the Next Generation of
Executive, May 1988, pp. 127–132. See also “The Best Performers,” Bloomberg Business Leaders,” Academy of Management Learning & Education, 2008, Vol. 7,
BusinessWeek, Spring 2015 Special Issue, pp. 57–95. No. 1, pp. 9–25.
3 See “The Best (& Worst) Managers of the Year,” Bloomberg BusinessWeek, January 13 See Mark Gottfredson, Steve Schaubert, and Hernan Saenz, “The New Leader’s
10-17, 2015, pp. 35–43. Guide to Diagnosing the Business,” Harvard Business Review, February 2008, pp.
4 “Commencement Advice From the Corner Office,” Bloomberg Businessweek, 63–72, for an interesting application.
May 20-27, 2014, p. 25. 14 “Brush Up On Your Small Talk,” Bloomberg Businessweek Survey, January 6,
5 Sumantsa Ghospal and Christopher A. Bartlett, “Changing the Role of Top 2015.
Management: Beyond Structure to Process,” Harvard Business Review, January– 15 See “The Real Reasons You’re Working So Hard . . . And What You Can Do
February 1995, pp. 86–96. About It,” BusinessWeek, October 3, 2005, pp. 60–68; “I’m Late, I’m Late, I’m
6 “Ford’s Savior?” BusinessWeek, March 16, 2009, pp. 31–34; “Ford’s Heir Apparent Late,” USA Today, November 26, 2002, pp. 1B–2B.
Set to Take the Wheel,” USA Today, April 22, 2014, p. 1A. 16 For a thorough discussion of the importance of time-management skills, see David
7 http://www.forbes.com/sites/carminegallo/2012/04/25/alan-mulully-optimism-and- Barry, Catherine Durnell Cramton, and Stephen J. Carroll, “Navigating the
the-power-of-vision/, on April 27, 2015. Garbage Can: How Agendas Help Managers Cope with Job Realities,” Academy of
8 “Fastener Woes to Delay Flight of First Boeing 787 Jets,” Wall Street Journal, Management Executive, May 1997, pp. 26–42.
November 5, 2008, p. B1. 17 “Amazon’s Jeff Bezos Keeps the Fires of Growth Burning,” USA Today, July 1,
9 Rosemary Stewart, “Middle Managers: Their Jobs and Behaviors,” in Jay W. 2014, p. 4B.
Lorsch (ed.), Handbook of Organizational Behavior (Englewood Cliffs, NJ: 18 http://www.fastcompany.com/3031066/work-smart/etsy-ceo-chad-dickerson-on-
Prentice-Hall, 1987), pp. 385–391. See also Bill Woolridge, Torsten Schmid, and having-a-system-any-system, on April 27, 2015.

19 See Michael A. Hitt, “Transformation of Management for the New Millennium,” 29 For an interesting discussion of these issues, see Rakesh Khurana, “The Curse of
Organizational Dynamics, Winter 2000, pp. 7–17. the Superstar CEO,” Harvard Business Review, September 2002, pp. 60–70.
20 James H. Davis, F. David Schoorman, and Lex Donaldson, “Toward a Stewardship 30 James L. Perry and Hal G. Rainey, “The Public-Private Distinction in
Theory of Management,” Academy of Management Review, January 1997, pp. 20–47. Organization Theory: A Critique and Research Strategy,” Academy of
21 Forbes, February 14, 2005, p. 110. Management Review, April 1988, pp. 182–201. See also Ran Lachman,
22 Gary Hamel and C. K. Prahalad, “Competing for the Future,” Harvard Business “Public and Private Sector Differences: CEOs’ Perceptions of Their Role
Review, July–August 1994, pp. 122–128; see also Joseph M. Hall and M. Eric Environments,” Academy of Management Journal, September 1985,
Johnson, “When Should a Process Be Art, Not Science?” Harvard Business pp. 671–680.
Review, March 2009, pp. 58–65. 31 “The Way We’ll Work,” Time, May 25, 2009, pp. 39–51.
23 Biz Ed, May/June 2010, p. 23. 32 Patricia L. Nemetz and Sandra L. Christensen, “The Challenge of Cultural
24 See Steven J. Armstrong and Anis Mahmud, “Experiential Learning and the Diversity: Harnessing a Diversity of Views to Understand Multiculturalism,”
Acquisition of Managerial Tacit Knowledge,” Academy of Management Learning Academy of Management Review, 1996, Vol. 21, No. 2, pp. 434–462;
& Education, 2008, Vol. 7, No. 2, pp. 189–208. Frances J. Milliken and Luis L. Martins, “Searching for Common Threads:
25 “The Executive MBA Your Way,” BusinessWeek, October 18, 1999, pp. 88–92. Understanding the Multiple Effects of Diversity in Organizational Groups,”
26 “Despite Cutbacks, Firms Invest in Developing Leaders,” Wall Street Journal, Academy of Management Review, 1996, Vol. 21, No. 2, pp. 402–433.
February 9, 2009, p. B4. 33 “When Gen X Runs the Show,” Time, May 25, 2009, p. 48.
27 “Turning B-School into E-School,” BusinessWeek, October 18, 1999, p. 94. 34 Craig L. Pearce and Charles P. Osmond, “Metaphors for Change: The ALPS
28 See “Reunion at P&G University,” Wall Street Journal, June 7, 2000, pp. B1, B4, Model of Change Management,” Organizational Dynamics, Winter 1996,
for a discussion of Procter & Gamble’s training programs. pp. 23–35.
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1

MANAGING AND THE

After studying this chapter, you should be able to:

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MANAGEMENT IN ACTION How to Make Mistakes

Meebo offers chat room

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list. However, that was horribly ineffective. No one

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dinating these various resources to achieve the organiza-

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TABLE 1.1 EXAMPLES OF RESOURCES USED BY ORGANIZATIONS

Human Financial Physical Information

Royal Dutch/ Drilling platform Profits ­Refineries Sales ­forecasts

University ­Administrative staff contributions Campus Government

products at relatively low costs, is efficient. By ­effective,

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FIGURE 1.1 MANAGEMENT IN ORGANIZATIONS

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The Management Process

managing people is part of leading, and monitoring performance is part of controlling.

FIGURE 1.2 THE MANAGEMENT PROCESS

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Planning and Decision Making: Determining Courses

Organizing: Coordinating Activities and Resources

decision making Leading: Motivating and Managing People

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Controlling: Monitoring and Evaluating Activities

Managers use a mix of resources—human, financial, physical, and information— Manager’s

Managing at Different Levels of the Organization levels of management

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FIGURE 1.3 KINDS OF MANAGERS BY LEVEL AND AREA

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­ anager, and division head. Middle managers are responsible

lower levels of the organization and to implement the strategies

who remain play an even more important role in determining

Andrew Toth/Getty Images

First-Line Managers First-line managers supervise and

Managing in Different Areas of the Organization

Financial Managers Financial managers deal primarily with an organization’s financial

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Administrative Managers Administrative, or general, managers are not associated with

Other Kinds of Managers Many organizations have specialized management

­coordinated by specialized managers in organiza-

Organizations need managers at multiple levels. The most common Manager’s

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Basic Managerial Roles and Skills

between them. When a manager acts as

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Decisional Roles The manager’s informational

Dean Mitchell/Getty Images

disturbance handler by handling such problems as

Managers often play various informational roles such as disseminating

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TABLE 1.2 BASIC MANAGERIAL SKILLS

Conceptual Skills: The manager’s ability to think in the abstract

Royal Dutch/ Drilling platform Profits Refineries Sales forecasts

University Administrative staff contributions Campus Government

products at relatively low costs, is efficient. By effective,

anager, and division head. Middle managers are responsible

coordinated by specialized managers in organiza-

I. Planning 3. I try to keep a balance between getting the work

9. I try to anticipate barriers to goal accomplish- Section III Total

Advisor for Military Professionalism? military leaders do to improve adherence to ethical