Chapter 1

Management in the 21st Century

Management 1e

Learning Objectives

Define management Describe a manager’s four major tasks Describe sustaining as a balanced approach to management Correlate managers’ tasks with the organizational roles that

they play Compare and contrast different types of organizations,

managers, and the decisions they make Explain the purpose of organizational values, mission, and

vision Demonstrate how focusing on skills and strengths leads to

success as a manager1 - 2

Management 1e 1 - 3

Critical thinking (p. 4)• Ability to diagnose situations and predict patterns of

behavior• Results in better decision making

mitigates biases enlarges perspectives on a situation

• Seven steps involved in critical thinking

Introduction

Management 1e 1 - 4

Seven Steps to Changing Behavior with Critical Thinking (p. 5)

Figure 1.1

Management 1e 1 - 5

Management (p. 6)• Process of working with people and distributing an

organization’s resources to achieve goals efficiently and effectively

• Managers must

ensure that the

organization meets

four success

factors

What Is Management?

Figure 1.2

Management 1e 1 - 6

Every company needs managers• Managers are always busy• Managerial activities fall into two categories

Focused on people Focused on technical matters

What Do Managers Do? (p. 7)

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How Is Management Both Art and Science? (p. 8)

People-focused

activities

Technically-focused activities

Figure 1.3

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How Do Managers Make a Difference?(p. 8)

Managers’ bottom line defined by the “3 P’s”• People – invest in the well-being of employees and

provide interesting and rewarding jobs that offer the opportunity to be productive

• Profit – ensure that the company is financially healthy• Planet – protect and support the environment, causes,

and communities Corporate social responsibility (p. 9)

Management 1e 1 - 9

The Four Management Functions(p. 10)

Planning - setting goals for the future, designing appropriate strategies, and deciding the actions and resources needed to achieve success

Organizing - orchestrating people, actions, resources, and decisions to achieve goals

Leading - motivating and communicating with people to achieve goals

Controlling - monitoring activities, measuring results and comparing them with goals, and correcting performance when necessary

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Management Functions: Traditional View vs. Today’s Approach (p. 10)

Figure 1.4

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Sustaining: A Balanced Approach to Management

Sustaining (p. 13)• Balanced approach that involves seeing, analyzing,

and designing systems to achieve long-term organizational, community, and environmental health

Figure 1.5

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Management Roles (p. 14)

Interpersonal roles – building relationships with coworkers and acting as a public symbol for the people they represent

Informational roles – require managers to gather, assess, and communicate information in support of the organization’s values, mission, vision, and goals

Decisional roles – making judgments and decisions based on available information and analysis of the situation

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Managers at Work

Organization (p. 15)• An entity formed and structured to achieve goals• Organizations differ in size in the U.S.

Figure 1.6

Figure 1.6

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Managers at Work (cont.)

Organization (cont.)• Differ in terms of the number of paid employees in U.S.

Figure 1.7

Management 1e 1 - 15

Managers at Work (cont.)

Start- up company – newly formed organization, with limited or no operational history (p. 15)

Multinational corporation –operations in multiple countries that design, develop, and sell products and services all over the world (p. 16)

Growth company – increases its annual revenue faster than its competitors

Non-profit organization – required by IRS to reinvest all profits back into the organization

Student organization – group formed to further engage students in the college experience

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Managers at Work (cont.)

Types of managers (p. 17)• Top managers – set the organization’s direction and

make decisions that impact everybody• Middle managers – report to top management and

direct the work of first-line managers Responsible for divisions or departments

• First-line managers – direct daily activities for producing goods and services

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Values, Mission, and Vision (p. 17)

Philosophical statements and beliefs managers use to allocate resources, provide consistent feedback to employees, make decisions, and foster organizational culture

Values - beliefs that shape employee and organizational behaviors (p. 18)

Mission - organization’s central purpose intended to generate value in the marketplace (for-profit) or community (non-profit)

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Values, Mission, and Vision (cont.)

Vision - description of an optimal future one to ten years from now (p. 19)

Management: A Balanced Approach to the 21st Century 1e

Figure 1.8

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Successful Management (p. 20)

To be successful, managers must demonstrate both:• Effectiveness – level to which people or

organizations achieve agreed-upon goals• Efficiency – using the smallest amount of resources

to achieve the greatest output

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Successful Management (cont.)

Skills - degree to which a person can effectively and efficiently complete a task, interaction, or process (p. 20)• Conceptual skills – ability to think through complex

systems and problems (p. 21)• Technical skills – ability to perform job-specific tasks• Relational skills – ability to collaborate and

communicate Strengths - skills in which a manager demonstrates

greatest aptitude Positive psychology (p. 22)

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Successful Management (cont.)

Skills required by types of managers

Figure 1.12

Management 1e 1 - 22

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