essentials of management, 9th ed. -...

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Essentials of Management, Ninth EditionAndrew J. DuBrin

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CHAPTER 1

TheManager’s Job

In November a few years ago, Nancy Jackson was ableto hire a new full-time salesperson for the company sheco-owns, Architectural Systems Inc. in New York, but

found herself facing an angry 19-person staff. “I couldn’tbelieve their reaction,” she says. Just a few months earlier,some had seen their workweeks reduced or salaries scaledback; two colleagues had been laid off.

To mitigate the situation, Jackson quickly called a meet-ing to explain that beefing up the firm’s sales force was anecessary first step for making a companywide recovery.Meanwhile, she has since gone about hiring differently, shesays, bringing on a new marketing associate as a temporarypart-time employee, rather than a full-time staff member, soas not to rile her team. “There’s been a lot of emotionalhand-holding here that we’ve never had to do before.”1

The story about the manager and owner of the architec-tural firm illustrates, among other ideas, that a managermakes things happen, such as enabling the growth of thefirm. Also illustrated is that managers often must deal withupset employees and resolve conflict. As will be described

OBJECTIVESAfter studying this chapter anddoing the exercises, you shouldbe able to:

l1 Explain the term manager,and identify different typesof managers.

l2 Describe the process ofmanagement, including thefunctions of management.

l3 Describe the variousmanagerial roles.

l4 Identify the basic managerialskills and understand howthey can be developed.

l5 Identify the major develop-ments in the evolution ofmanagement thought.

1Sarah E. Needleman, “Business Owners Try to Motivate Employees,” TheWall Street Journal, January 14, 2010, p. B5.



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in this chapter, and throughout the book, the manager carries out a largenumber of demanding activities.

WHO IS A MANAGER?

A manager is a person responsible for the work performance of group mem-bers. Approximately 10 percent of the U.S. workforce holds a managerialposition of one type or another. A manager holds the formal authority tocommit organizational resources, even if the approval of others is required.For example, the manager of a Jackson-Hewitt income tax and financial ser-vice outlet has the authority to order the repainting of the reception area.The income tax and financial services specialists reporting to that manager,however, do not have that authority.

The concepts of manager and managing are intertwined. The term man-agement in this book refers to the process of using organizational resourcesto achieve organizational objectives through the functions of planning, orga-nizing and staffing, leading, and controlling. These functions represent thebroad framework for this book and will be described later. In addition tobeing a process, the term management is also used as a label for a specificdiscipline, for the people who manage, and for a career choice.

Levels of Management

Another way of understanding the nature of a manager’s job is to examinethe three levels of management shown in Exhibit 1-1. The pyramid in thisfigure illustrates progressively fewer employees at each higher manageriallevel. The largest number of people is at the bottom organizational level.(Note that the term organizational level is sometimes more precise than theterm managerial level, particularly at the bottom organizational level, whichhas no managers.)

Top-Level Managers

Most people who enter the field of management aspire to become top-levelmanagers—managers at the top one or two levels in an organization.C-level manager is a recent term used to describe a top-level manager; thesemanagers usually have the word chief in their title, such as chief operatingofficer. Top-level managers are empowered to make major decisions affect-ing the present and future of the firm. Only a top-level manager, for exam-ple, would have the authority to purchase another company, initiate a newproduct line, or hire hundreds of employees. Top-level managers are the peo-ple who give the organization its general direction; they decide where it isgoing and how it will get there. The terms executive, top-level manager, andc-level manager can be used interchangeably.

Because management is an evolving field, new job titles for c-level man-agers continue to surface. Often these titles reflect a new emphasis on what

LEARNINGOBJECTIVEl1Explain the termmanager, andidentify differenttypes of managers.

manager

A person responsiblefor the workperformance of groupmembers.

management

The process of usingorganizationalresources to achieveorganizationalobjectives throughplanning, organizingand staffing, leading,and controlling.

PLAY VIDEO

Go to www.cengage.com/management/dubrin and view thevideo for Chapter 1. Asyou watch, think aboutthe various types ofmanagers shown inthe video. What aresome of the skillsexhibited by thecompany founder?What are some of theskills exhibited by theother managers?

top-level managers

Managers at the topone or two levels in anorganization.

2 CHAPTER 1 The Manager’s Job



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must be accomplished for an organization to run successfully. Here are a fewof the recent c-level positions often found in large organizations:

• Chief of staff. High-level executives in politics and the military havelong relied on the services of a chief of staff; this role has recentlybecome a part of the executive suite in business. The chief of staff is atop level advisor who serves as a confidant, gatekeeper, and all-aroundstrategic consultant. Three financial services firms with a chief of staffin the executive suite are Goldman Sachs, Aflac, and the global insur-ance business ING.2

• Chief commercial officer. A growing number of large business firms aredesignating a chief commercial officer who oversees growth and commer-cial success. The person in this position has major responsibility for cus-tomer relationships and for managing the company interface with thecustomer. The chief commercial officer position has been created becausethe many different sales channels, especially digital sales, has forced com-panies to think differently about their customers and how they interactwith them. In some instances the CCO supplements the work of thehead of marketing, and at other times replaces him or her. The biotechfirm Cellular Dynamics International is one firm that employs a chiefcommercial officer.3

C-level manager

A recent term todescribe top-levelmanagers becausethey usually have chiefin their title.

EXHIBIT 1-1

Many job titlescan be found ateach level ofmanagement.

Managerial Levels and Sample Job Titles

Top-Level

Managers

Middle-LevelManagers

First-Level Managers

Individual Contributors(Operatives and Specialists)

Chairman of the board, CEO,president, vice president,COO (chief operating officer),CFO (chief financial officer),CIO (chief information officer)

Director, branch manager,department chairperson,chief of surgery, team leader

Supervisor, office manager,crew chief

Tool-and-die maker, cook,word-processing technician,assembler

Note: Some individual contributors, such as financial analysts and administrative assistants, report directly to top-level managers or middle managers.

2“Latest CEO Accessory: A Chief of Staff,” Fortune, January 18, 2010, p. 18.3Ed Frauenheim, “‘CCO’ Becomes Hot Exec Title Amid Recession,” Workforce Manage-ment, September 14, 2009, p. 4.

Who Is a Manager? 3



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• Chief privacy officer. As illustrated in the accompanying Management inAction, the chief privacy officer works on such problems as safeguardingcustomer information in the digital world.

Middle-Level Managers

Middle-level managers are managers who are neither executives nor first-levelsupervisors, but who serve as a link between the two groups. Middle-levelmanagers conduct most of the coordination activities within the firm, andthey are responsible for implementing programs and policies formulated bytop-level management. The jobs of middle-level managers vary substantiallyin terms of responsibility and income. A branch manager in a large firmmight be responsible for more than 100 workers. In contrast, a general super-visor in a small manufacturing firm might have 20 people reporting to himor her. Other important tasks for many middle-level managers include help-ing the company undertake profitable new ventures and finding creativeways to reach goals. A major part of a middle manager’s job is workingwith teams to accomplish work. Middle-level managers play a major role inoperating an organization, and therefore continue to be in demand.

Although advances in information technology have reduced the commu-nication requirement of the middle manager positions, the need for middlemanagers is still strong. Paul Osterman, a management scholar at the MITSloan School of Management, conducted an interview and survey study of a

MANAGEMENT IN ACTION

As Rochester, New York-based Eastman Kodakstruggles to transform from a film dinosaur to adigital powerhouse, it falls to Chief Privacy Offi-cer Brian O’Connor to keep identity thievesaway from EasyShare, Kodak’s photo-sharingWeb site. It’s also his job to ensure that HR(human resources) and line managers don’tput the company at risk by overzealously inves-tigating job applicants. Welcome to the world ofchief privacy officer (CPO), a young professionwith a complicated mandate: protecting the pri-vacy of consumer and employment data.

At Kodak, where O’Connor has served asCPO since 2005, safeguarding customerinformation—including the millions of digitalphotos shutterbugs add to EasyShare eachday—is key to survival. But it is also at theheart of a complex tangle of federal, state, and

international rules governing how organizationshandle personal information.

Questions

1. After studying the section about managerialroles later in this chapter, identify which rolesO’Connor is carrying out.

2. Explain whether you think a company reallyneeds a “chief privacy officer.”

3. Assuming you had the necessary knowledgeand skills, to what extent would the positionof chief privacy officer appeal to you?

4. Do you worry about identity theft when youpost photos on the Internet?

Source: Rita Zeidner, “New Face in the C-Suite,” HR

Magazine, January 2010, p. 39.

middle-level

managers

Managers who areneither executives norfirst-level supervisors,but who serve as a linkbetween the twogroups.




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group of middle managers. One of the conclusions he reached was as follows:“They are responsible for making many of the judgment calls and trade-offsthat shape the firm’s success. They are also the key communication channelfrom senior management down through the ranks.”4

First-Level Managers

Managers who supervise operatives are referred to as first-level managers,first-line managers, or supervisors. Historically, first-level managers werepromoted from production or clerical (now called staff support) positionsinto supervisory positions. Rarely did they have formal education beyondhigh school. A dramatic shift has taken place in recent years, however.Many of today’s first-level managers are career school graduates and four-year college graduates who are familiar with modern management techni-ques. The current emphasis on productivity and cost control has elevatedthe status of many supervisors.

To understand the work performed by first-level managers, reflect backon your first job. Like most employees in entry-level positions, you probablyreported to a first-level manager. Such a manager might be supervisor ofnewspaper carriers, dining room manager, service station manager, mainte-nance supervisor, or department manager in a retail store. Supervisors helpshape the attitudes of new employees toward the firm. Newcomers who likeand respect their first-level manager tend to stay with the firm longer. Con-versely, new workers who dislike and disrespect their first supervisor tend toleave the firm early.

TYPES OF MANAGERS

The functions performed by managers can also be understood by describingdifferent types of management jobs. The management jobs discussed here arefunctional and general managers, administrators, entrepreneurs and small-business owners, and team leaders. (The distinction between line and staffmanagers will be described in Chapter 8 about organization structure.)

Functional and General Managers

Another way of classifying managers is to distinguish between those whomanage people who do one type of specialized work and those who managepeople who engage in different specialties. Functional managers supervise thework of employees engaged in specialized activities such as accounting, engi-neering, information systems, food preparation, marketing, and sales.A functional manager is a manager of specialists and of their support team,such as office assistants.

4Paul Osterman, The Truth About Middle Managers: Who They Are, How They Work,Why They Matter (Boston: Harvard Business School Press, 2009). Quoted in Dean Foust,“Speaking Up for the Organization Man,” Business Week, March 9, 2009, p. 78.

first-level managers

Managers whosupervise operatives(also known as first-line managers orsupervisors).

Types of Managers 5



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General managers are responsible for the work of several different groupsthat perform a variety of functions. The job title “plant general manager”offers insight into the meaning of general management. Reporting to theplant general manager are various departments engaged in both specializedand generalized work such as manufacturing, engineering, labor relations,quality control, safety, and information systems. Company presidents aregeneral managers. Branch managers also are general managers if employeesfrom different disciplines report to them. The responsibilities and tasks of ageneral manager highlight many of the topics contained in the study of man-agement. These tasks will be introduced at various places in this book.

Administrators

An administrator is typically a manager who works in a public (government)or nonprofit organization, including educational institutions, rather than in abusiness firm. Among these managerial positions are hospital administratorand housing administrator. Managers in all types of educational institutionsare referred to as administrators. The fact that individual contributors innonprofit organizations are sometimes referred to as administrators oftencauses confusion. An employee is not an administrator in the managerialsense unless he or she supervises others.

Entrepreneurs and Small-Business Owners

Millions of students and employees dream of turning an exciting idea into asuccessful business. Many people think, “If Michael Dell started Dell com-puters from his dormitory room and he is the wealthiest man in Texas today,why can’t I do something similar?” Success stories such as Dell’s kindle theentrepreneurial spirit. By a strict definition, an entrepreneur is a person whofounds and operates an innovative business. After the entrepreneur developsthe business into something bigger than he or she can handle alone or withthe help of only a few people, that person becomes a general manager.

Similar to an entrepreneur, the owner and operator of a small businessbecomes a manager when the firm grows to include several employees.Small-business owners typically invest considerable emotional and physicalenergy into their firms. Note that entrepreneurs are (or start as) small-business owners, but that the reverse is not necessarily true. You need aninnovative idea to fit the strict definition of an entrepreneur. Simply runninga franchise that sells sub sandwiches does not make a person an entrepre-neur, according to the definition presented here. Also, an entrepreneur mayfound a business that becomes so big it is no longer a small business.

A major characteristic of both entrepreneurs and small-business ownersis their passion for the work. These types of managers will usually have asingle-minded drive to solve a problem. Recent research has identified threeroles, or activities, within entrepreneurial work that arouse passion. The firstis opportunity recognition, the inventor role. Second is venture creation, the

entrepreneur

A person who foundsand operates aninnovative business.

small-business

owner

An individual whoowns and operates asmall business.




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founder role. Third is venture growth, the developer role.5 A person mightinvent a small turbine the size of a garbage can to replace the large turbines(or wind mills) used to generate renewable energy. The person becomesexited about creating a business to manufacture and market these small tur-bines. Passion would then be invested in growing the business. If being aninventor fits the person’s self-image best, he or she is likely to be the mostpassionate about the first role and then lose some passion in the second andthird roles.

Team Leaders

A major development in types of managerial positions during the last 25years is the emergence of the team leader. A manager in such a position coor-dinates the work of a small group of people while acting as a facilitator orcatalyst. Team leaders are found at several organizational levels and aresometimes referred to as project managers, program managers, process man-agers, and task force leaders. Note that the term team could also refer to anexecutive team, yet a top executive almost never carries the title team leader.You will be reading about team leaders throughout this text.

All of the managerial jobs described above vary considerably as to thedemands placed on the job holder. All workers carrying the job title chiefexecutive officer may perform similar work, yet the position may be muchmore demanding and stressful in a particular organization.6 Imagine beingthe CEO of an American auto parts manufacturer that is facing extinctionbecause of overseas competition. His or her job is more demanding thanthat of the CEO of a company like Binney & Smith, the subsidiary of Hall-mark Cards, which produces Crayola crayons among other popular pro-ducts. With more than three billion crayons produced each year, and a fanbase in the millions, Binney & Smith is not threatened with extinction. TheCEO can enjoy his or her golf outings while the auto parts CEO worriesabout losing customers and laying off employees.

THE PROCESS OF MANAGEMENT

A helpful approach to understanding what managers do is to regard theirwork as a process. A process is a series of actions that achieves something—making a profit or providing a service, for example. To achieve an objective,the manager uses resources and carries out four major managerial functions.These functions are planning, organizing and staffing, leading, and control-ling. Exhibit 1-2 illustrates the process of management.

5Melissa S. Cardon, Joakim Wincent, Jagdip Singh, and Mateja Drnovsek, “The Nature andExperience of Entrepreneurial Passion,” Academy of Management Review, July 2009,pp. 511–532.6Donald C. Hambrick, Sydney Finkelstein, and Ann C. Mooney, “Executive Job Demands:New Insights for Explaining Strategic Decisions and Leader Behavior,” Academy ofManagement Review, July 2005, pp. 472–491.

team leader

A manager whocoordinates the workof a small group ofpeople, while acting asa facilitator andcatalyst.

LEARNINGOBJECTIVEl2Describe theprocess ofmanagementincluding thefunctions ofmanagement.

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Resources Used by Managers

Managers use resources to accomplish their purposes, just as a carpenter usesresources to build a terrace. A manager’s resources can be divided into fourtypes: human, financial, physical, and informational.

Human resources are the people needed to get the job done. Managers’goals influence which employees they choose. A manager might set the goalof delivering automotive supplies and tools to auto and truck manufacturers.Among the human resources he or she chooses are manufacturing techni-cians, sales representatives, information technology specialists, and a net-work of dealers.

Financial resources are the money the manager and the organization useto reach organizational goals. The financial resources of a business organiza-tion are profits and investments from stockholders. A business must occa-sionally borrow cash to meet payroll or to pay for supplies. The financialresources of community agencies come from tax revenues, charitable contri-butions, and government grants.

Physical resources are a firm’s tangible goods and real estate, includingraw materials, office space, production facilities, office equipment, and vehi-cles. Vendors supply many of the physical resources needed to achieve orga-nizational goals.

Information resources are the data that the manager and the organizationuse to get the job done. For example, to supply leads to the firm’s salesrepresentatives, the sales manager of an office-supply company reads localbusiness newspapers and Internet postings to learn about new firms intown. These newspapers and Web sites are information resources.Jeffrey R. Immelt, the chairman and CEO of General Electric Corp., surfs

EXHIBIT 1-2

The manageruses resourcesand carries outfunctions toachieve goals.

The Process of Management

PlanningOrganizingand Staffing Leading Controlling

HumanResources

FinancialResources

PhysicalResources

InformationResources

Managerial Functions

Manager Goals

Source: Ricky W. Griffin, Management, 4e, Copyright © 1993 South-Western, p. 6. Reproduced by permission. www.cengage.com/permissions.




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the Internet regularly to learn about developments in the industry, thus usingthe Internet as an information resource.

As originally designated by the famous management thinker PeterDrucker, managers are knowledge workers. As knowledge workers, managersrely heavily on information resources. Drucker also observed that managersare quite skilled at obtaining data, but less skilled at converting these datainto useful information. According to Drucker, few executives will ask,“What new tasks can I tackle, now that I have all these data? Which oldtasks should I abandon?”7 Imagine that a middle manager is wonderingabout how to best motivate workers. She inserts into Ask.com the question,“How do you motivate workers?” She receives close to two million entries.She must then understand how to sort out the most useful of these entries.(Or, she could study the motivational chapter of a management textbook.)

THE FOUR MANAGERIAL FUNCTIONS

Exhibit 1-2 shows the four major resources in the context of the managementprocess. To accomplish goals, the manager performs four managerial func-tions. These functions are planning, organizing and staffing, leading, andcontrolling.

Planning

Planning involves setting goals and figuring out ways of reaching them. Plan-ning, considered the central function of management, pervades everything amanager does. In planning, a manager looks to the future, saying, “Here iswhat we want to achieve, and here is how we are going to do it.” Decisionmaking is usually a component of planning, because choices must be made inthe process of finalizing plans. The importance of planning expands as itcontributes heavily to performing the other management functions. Forexample, managers must make plans to do an effective job of staffing theorganization. Planning is also part of marketing. For example, cereal makerKellogg Corp. established plans to diversify further into the snack-food busi-ness to reach its goal of expanding market share.

Organizing and Staffing

Organizing is the process of making sure the necessary human and physicalresources are available to carry out a plan and achieve organizational goals.Organizing also involves assigning activities, dividing work into specific jobsand tasks, and specifying who has the authority to accomplish certain tasks.Another major aspect of organizing is grouping activities into departmentsor some other logical subdivision. The staffing function ensures the availabil-ity of necessary human resources to achieve organizational goals. Hiring peo-ple for jobs is a typical staffing activity. Staffing is such a major activity thatit is sometimes classified as a function separate from organizing.

7“An American Sage,” The Wall Street Journal, November 14, 2005, p. A22.

The Four Managerial Functions 9



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Leading

Leading means influencing others to achieve organizational objectives. As aconsequence, it involves energizing, directing, persuading others, and creat-ing a vision. Leadership involves dozens of interpersonal processes: motivat-ing, communicating, coaching, and showing group members how they canreach their goals. Leadership is such a key component of managerial workthat management is sometimes seen as accomplishing results through people.The leadership aspect of management focuses on inspiring people and bring-ing about change, whereas the other three functions focus more on maintain-ing a stable system. According to management guru Henry Mintzberg,effective leaders develop the sense of community or shared purpose that isessential for cooperative effort in all organizations.8

Although leadership deals heavily with persuasion and inspiration, theleader also executes the visions and other ideas for change he or she formulates.As explained by business executive Larry Bossidy and consultant Ram Charan,visionaries often fail because they do not translate their strategies (master plans)into results.9 It has been said that execution has become an important new buzz-word in business because leaders in the past placed too much emphasis on spin-ning grand visions without really taking care of business.

Controlling

Controlling generally involves comparing actual performance to a predeter-mined standard. Any significant difference between actual and desired perfor-mance would prompt a manager to take corrective action. He or she might, forexample, increase advertising to boost lower-than-anticipated sales.

A secondary aspect of controlling is determining whether the originalplan needs revision, given the realities of the day. The controlling functionsometimes causes a manager to return to the planning function temporarilyto fine-tune the original plan. For example, many retailers in recent yearshave found that the sales volume in stores was not enough to earn the com-pany a profit. They closed the stores, shifted sales to online, and sold theirproduct in other retailers.

One important way in which the jobs of managers differ is in the relativeamounts of time spent on planning, organizing and staffing, leading, andcontrolling. Executives ordinarily spend much more time on strategic (high-level and long-range) planning than do middle- or first-level managers.Lower-level managers are more involved with day-by-day and other short-range planning. Also, lower-level managers spend the most time in face-to-face leadership such as coaching and disciplining workers. This is truebecause entry-level workers are likely to need more assistance than thoseworkers who have advanced higher in the organization.

8Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009), p. 9.9Larry Bossidy and Ram Charan, The Discipline of Getting Things Done (New York: Crown,2002).




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THE SEVENTEEN MANAGERIAL ROLES

To further understand the manager’s job, it is worthwhile to examine thevarious roles managers play. A role, in the business context, is an expectedset of activities or behaviors stemming from a job. Mintzberg conducted sev-eral landmark studies of managerial roles. Other researchers extended hisfindings.10 In the sections that follow, the roles delineated by these research-ers are associated with the major managerial functions to which they mostclosely pertain. (Roles and functions are closely related. They are both activ-ities carried out by people.) The description of the 17 roles should help youappreciate the richness and complexity of managerial work, and also serve asa generic job description for a manager’s position. These roles are describednext and listed in Exhibit 1-3.11

Planning

Two managerial roles—strategic planner and operational planner—relate tothe planning function.

1. Strategic Planner. Top-level managers engage in strategic planning, usu-ally assisted by input from others throughout the organization. Specificactivities in this role include (a) setting a direction for the organization,

LEARNINGOBJECTIVEl3Describe thevarious managerialroles.

10This research is reported in Henry Mintzberg, The Nature of Managerial Work (New York:Harper & Row, 1973); Mintzberg, Managing, pp. 44–45.11Kenneth Graham Jr. and William L. Mihal, The CMI Managerial Job Analysis Inventory(Rochester, NY: Rochester Institute of Technology, 1987); Jeffrey S. Shippman, Erich Prien,and Gary L. Hughes, “The Content of Management Work: Formation of Task and Job SkillComposite Classifications,” Journal of Business and Psychology, Spring 1991, pp. 325–354.

role

An expected set ofactivities or behaviorsstemming from a job.

EXHIBIT 1-3 The Seventeen Managerial Roles

Planning

1. Strategic planner2. Operational planner


3. Organizer4. Liaison5. Staffing coordinator6. Resource allocator7. Task delegator

Leading

8. Figurehead9. Spokesperson

10. Negotiator11. Motivator and coach12. Team builder13. Team player14. Technical problem solver15. Entrepreneur

Controlling

16. Monitor17. Disturbance handler

The Seventeen Managerial Roles 11



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(b) helping the firm deal with the external environment, and (c) develop-ing corporate policies.

2. Operational Planner. Operational plans relate to the day-to-day opera-tion of a company or unit. Two such activities are (a) formulating oper-ating budgets and (b) developing work schedules for the unit supervised.Middle-level managers are heavily involved in operational planning;first-level managers are involved to a lesser extent.


Five roles that relate to the organizing and staffing function are organizer,liaison, staffing coordinator, resource allocator, and task delegator.

3. Organizer. As a pure organizer, the manager engages in activities such as(a) designing the jobs of group members; (b) clarifying group members’assignments; (c) explaining organizational policies, rules, and procedures;and (d) establishing policies, rules, and procedures to coordinate the flowof work and information within the unit.

4. Liaison. The purpose of the liaison role is to develop and maintain a net-work of work-related contacts with people. To achieve this end, the man-ager (a) cultivates relationships with clients or customers; (b) maintainsrelationships with suppliers, customers, and other persons or groupsimportant to the unit or organization; (c) joins boards, organizations, orpublic service clubs that might provide useful, work-related contacts; and(d) cultivates and maintains a personal network of in-house contactsthrough visits, telephone calls, e-mail, text messages, and participation incompany-sponsored events.

5. Staffing Coordinator. In the staffing role, the manager tries to make surethat competent people fill positions. Specific activities include (a) recruit-ing and hiring staff; (b) explaining to group members how their workperformance will be evaluated; (c) formally evaluating group members’overall job performance; (d) compensating group members within thelimits of organizational policy; (e) ensuring that group members areproperly trained; (f) promoting group members or recommending themfor promotion; and (g) terminating or demoting group members.

6. Resource Allocator. An important part of a manager’s job is to divideresources in the manner that best helps the organization. Specific activi-ties to this end include (a) authorizing the use of physical resources (facil-ities, furnishings, and equipment); (b) authorizing the expenditure offinancial resources; and (c) discontinuing the use of unnecessary, inap-propriate, or ineffective equipment or services.

7. Task Delegator. A standard part of any manager’s job is assigning tasksto group members. Among these task-delegation activities are (a) assign-ing projects or tasks to group members; (b) clarifying priorities and per-formance standards for task completion; and (c) ensuring that groupmembers are properly committed to effective task performance.




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Leading

Eight identified managerial roles relate to the leadership function. Theseroles are motivator and coach, figurehead, spokesperson, negotiator, teambuilder, team player, technical problem solver, and entrepreneur.

8. Motivator and Coach. An effective manager takes time to motivate andcoach group members. Specific behaviors in this role include (a) infor-mally recognizing employee achievements; (b) offering encouragementand reassurance, thereby showing active concern about the professionalgrowth of group members; (c) providing feedback about both effectiveand ineffective performance; and (d) giving group members advice onsteps to improve their performance.

9. Figurehead. Figurehead managers, particularly high-ranking ones, spendsome of their time engaging in ceremonial activities or acting as a figure-head. Such activities include (a) entertaining clients or customers as anofficial representative of the organization, (b) serving as an official repre-sentative of the organization at gatherings outside the organization, and(c) escorting official visitors.

10. Spokesperson. When a manager acts as a spokesperson, the emphasis is onanswering inquiries and formally reporting to individuals and groups out-side the manager’s organizational unit. As a spokesperson, the managerkeeps five groups of people informed about the unit’s activities, plans, andcapabilities. These groups are (a) upper-level management, (b) clients andcustomers, (c) other important outsiders (such as labor unions), (d) profes-sional colleagues, and (e) the general public. Usually, top-level managerstake responsibility for keeping outside groups informed.

11. Negotiator. Part of almost any manager’s job is trying to make dealswith others for needed resources. Three specific negotiating activities are(a) bargaining with supervisors for funds, facilities, equipment, or otherforms of support; (b) bargaining with other units in the organization forthe use of staff, facilities, and other forms of support; and (c) bargainingwith suppliers and vendors about services, schedules, and delivery times.

12. Team Builder. A key aspect of a manager’s role is to build an effectiveteam. Activities contributing to this role include (a) ensuring that groupmembers are recognized for their accomplishments (by issuing letters ofappreciation, for example); (b) initiating activities that contribute togroup morale, such as giving parties and sponsoring sports teams; and(c) holding periodic staff meetings to encourage group members to talkabout their accomplishments, problems, and concerns.

13. Team Player. Three behaviors of the team player are (a) displayingappropriate personal conduct, (b) cooperating with other units in theorganization, and (c) displaying loyalty to superiors by fully supportingtheir plans and decisions.

14. Technical Problem Solver. It is particularly important for first- andmiddle-level managers to help group members solve technical problems.Two such specific activities related to problem solving are (a) serving as




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a technical expert or advisor and (b) performing individual contributortasks such as making sales calls or fixing software problems on a regularbasis. The managers most in demand today are those who combine lead-ership skill with a technical or business specialty.

15. Entrepreneur. Managers who work in large organizations have someresponsibility for suggesting innovative ideas or furthering the businessaspects of the firm. Three entrepreneurial role activities are (a) readingtrade publications and professional journals and searching the Internetto remain up-to-date; (b) talking with customers or others in the organi-zation to remain abreast of changing needs and requirements; and (c)becoming involved in activities outside the unit that could result in per-formance improvements within the manager’s unit. These activitiesmight include visiting other firms, attending professional meetings ortrade shows, and participating in educational programs.

Controlling

Themonitor role mentioned next fits the controlling function precisely, becausethe term monitoring is often used as a synonym for controlling. The role of dis-turbance handler is categorized under controlling because it involves changingan unacceptable condition to an acceptable stable condition.

16. Monitor. The activities of a monitor are (a) developing systems that mea-sure or monitor the unit’s overall performance, (b) using information sys-tems to measure productivity and cost, (c) talking with group membersabout progress on assigned tasks, and (d) overseeing the use of equip-ment and facilities (for example, vehicles and office space) to ensurethat they are properly used and maintained.

17. Disturbance Handler. Four typical activities of a disturbance handler are(a) participating in grievance resolution within the unit (working out aproblem with a labor union, for example); (b) resolving complaintsfrom customers, other units, and superiors; (c) resolving conflicts amonggroup members; and (d) resolving problems about work flow and infor-mation exchange with other units. Disturbance handling might also beconsidered a leadership role.

Managerial Roles Currently Emphasized

Managerial work has shifted substantially away from the controller and direc-tor role to that of motivator and coach, facilitator, and supporter. As reflectedin the position of team leader, many managers today deemphasize formalauthority and rank. Instead, they work as partners with team members tojointly achieve results. Managers today emphasize horizontal relationshipsand deemphasize vertical (top-down) relationships. We encourage you not tothink that traditional (old) managers are evil, while new managers are good.

Exhibit 1-4 gives you the opportunity to relate managerial roles to your-self, even if you are not presently working as a manager.




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EXHIBIT 1-4 My Managerial Role Analysis

Here is an opportunity for you to think through your current level of skill or potential ability to carry out suc-cessfully the 17 managerial roles already described. Each role will be listed with a few-word reminder of oneof its key aspects. Check next to each role whether it is an activity you could carry out now, or something forwhich you will need more experience and preparation. For those activities you check as “capable of doing itnow,” jot down an example of your success in this area. For example, a person who checked “capable ofdoing it now” for Role 5, staffing coordinator, might have written, “I recruited three part-time servers towork in the restaurant where I worked as an assistant manager.”

Few readers of this book will have had experience in carrying out most of these roles. So relate the spe-cific roles to any management experience you may have had, including full-time work, part-time work, volun-teer work, clubs, committees, and sports.

Managerial Role

Capable of

Doing It Now

Need Preparation

and Experience

1. Strategic planner (Set direction for others based onexternal environment.)

2. Operational planner (Plan for running the organizationor the unit.)

3. Organizer (Design jobs for group members and clarifyassignments.)

4. Liaison (Develop and maintain network of work-relatedcontacts.)

5. Staffing coordinator (Recruit, hire, train, evaluate, andfire group members.)

6. Resource allocator (Divide resources to help get job done.)7. Task delegator (Assign tasks to group members.)8. Figurehead (Engage in ceremonial activities, and

represent the group to outsiders.)9. Spokesperson (Answer inquiries and report information

about the group to outsiders.)10. Negotiator (Make deals with others for needed resources.)11. Motivator and coach (Recognize achievements,

encourage, give feedback and advice.)12. Team builder (Contribute to group morale, hold

meetings to encourage members to talk aboutaccomplishments and concerns.)

13. Team player (Correct conduct, cooperate with others,and be loyal.)

14. Technical problem solver (Help group members solvetechnical problems; perform individual contributor tasks.)

15. Entrepreneur (Suggest innovative ideas and furtherbusiness activity of the group; search for newundertakings for the group.)

16. Monitor (Measure performance and productivity, andreview progress on tasks.)

17. Disturbance handler (Resolve problems andcomplaints.)

Interpretation: The more of the 17 roles you are ready to perform, the more ready you are to function as amanager or to perform managerial work. Your study of management will facilitate carrying out more of theseroles effectively.




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The Influence of Management Level on

Managerial Roles

A manager’s level of responsibility influences which roles he or she is likelyto engage in most frequently. Information about the influence of level onroles comes from research conducted with 228 managers in a variety ofprivate-sector service firms (such as banks and insurance companies) andmanufacturing firms. The roles studied were basically those described inthis chapter. One clear-cut finding was that, at the higher levels of manage-ment, four roles were the most important: liaison, spokesperson, figurehead,and strategic planner. Another finding was that the role of leader is critical atthe first level of management.12 Although the study in question is 30 yearsold, it is consistent with current management practice. For example, in orga-nizations of today first-level managers are expected to be effective leaderswho motivate and coach subordinates.

Management as a Practice

A useful perspective on the nature of management is that it is a practice,rather than a science or a profession. Managers learn through both experi-ence and study. As Mintzberg explains, science is about the development ofsystematic knowledge through research. In contrast, the major purpose ofmanagement is to help get things done in organizations.13 Managerssometimes make use of systematic knowledge, yet they also rely on the intui-tion that stems from experience.

Management is not a profession in the sense of being a licensed occupa-tion such as law, medicine, psychology, veterinary medicine, or electrician. Ifmanagement were a profession in this strict sense, you would be forbidden towork as a middle manager or start a software firm without being licensed byyour state or province. The fact that managerial work is not defined as aprofession does not downgrade its importance. You don’t need a license tobe the President of the United States.

Another point of view is advanced by Harvard Business School profes-sors Rakesh Khurana and Nitin Nohria, who claim that it is time to makemanagement a true profession. In their opinion, to regain public trust, man-agement must become a profession that follows an ethical code. Managersshould have appropriate education, as with other professions.14 (Theseauthors appear to be referring to top-level executives).

One way in which the occupation of management can become more pro-fessionalized is for managers to base more of their decisions on systematically

12Cynthia M. Pavett and Alan W. Lau, “Managerial Work: The Influence ofHierarchical Level and Functional Specialty,” Academy of Management Journal, March 1983,pp. 170–177.13Mintzberg, Managing, p. 10.14Rakesh Khurana and Nitin Nohria, “It’s Time to Make Management a True Profession,”Harvard Business Review, October 2008, pp. 70–77.




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gathered evidence such as surveys and experiments. Evidence-based manage-ment is the systematic use of the best available evidence to improve manage-ment practice.15 To use this approach, managers would rely on bothscientific evidence and local business evidence. To illustrate, there are hun-dreds of articles published in professional journals about the usefulness ofgoals for improving performance, and how best to use goals. (Chapter 11contains information about goals and motivation.) The manager might alsocheck out how well goals worked in local business firms. A managerwho used some of this information would be working more professionallythan a manager who relied only on common sense to boost motivation andperformance.

FIVE KEY MANAGERIAL SKILLS

To be effective, managers must possess technical, interpersonal, conceptual,diagnostic, and political skills. The sections that follow will first define theseskills and then comment on how they are developed. Whatever the level ofmanagement, a manager needs a combination of all five skills.

Technical Skill

Technical skill involves an understanding of and proficiency in a specificactivity that involves methods, processes, procedures, or techniques. Techni-cal skills include the ability to prepare a budget, lay out a production sched-ule, prepare a spreadsheet analysis, upload information onto a socialnetworking site, and demonstrate a piece of electronic equipment. Intricateknowledge of the business, such as developing a marketing campaign for aproduct, can also be regarded as a technical skill. Technical skills are fre-quently referred to as hard skills. A well-developed technical skill can facili-tate the rise into management. For example, Bill Gates of Microsoft Corp.launched his career by being a competent programmer.

Interpersonal Skill

Interpersonal (or human relations) skill is a manager’s ability to work effec-tively as a team member and to build cooperative effort in the unit. Commu-nication skills are an important component of interpersonal skills. They formthe basis for sending and receiving messages on the job. Although interper-sonal skills are often referred to as soft skills, it does not mean these skills areeasy to learn or insignificant. Interpersonal skills are more important thantechnical skills in getting to the top and providing leadership to people.Many managers at all levels ultimately fail because their interpersonal skillsdo not match the demands of the job. For example, some managers

15Trish Reay, Whitney Berta, and Melanie Kazman Kohn, “What’s the Evidence onEvidence-Based Management?” Academy of Management Perspectives, November 2009, p. 5;Jeffrey Pfeffer and Robert I. Sutton, “Evidence-Based Management,” Harvard BusinessReview, January 2006, pp. 62–74.

evidence-based

management

The systematic use ofthe best availableevidence to improvemanagement practice.

LEARNINGOBJECTIVEl4Identify the basicmanagerial skillsand understandhow they can bedeveloped.

Five Key Managerial Skills 17



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intimidate, bully, and swear at group members. In the process, they developsuch a poor reputation that it may lead to their being replaced. Have youever worked for a manager who was so rude and insensitive that he or shedamaged morale and productivity?

An important subset of interpersonal skills for managers ismulticulturalism,the ability to work effectively and conduct business with people from differentcultures. Closely related is the importance of bilingualism for managers as wellas other workers. Being able to converse in a second language represents animportant asset in today’s global and multicultural work environment.

Conceptual Skill

Conceptual skill is the ability to see the organization as a total entity. Itincludes recognizing how the various units of the organization depend onone another and how changes in any one part affect all the others. It alsoincludes visualizing the relationship of the individual business to the industry;the community; and the political, social, and economic forces of the nationas a whole. For top-level management, conceptual skill is a priority becauseexecutive managers have the most contact with the outside world.

Drucker emphasized that the only comparative advantage of the devel-oped countries is in the number of knowledge workers (people who work pri-marily with concepts). Educated workers in underdeveloped countries arejust as smart as those in developed countries, but their numbers are smaller.According to Drucker and many other authorities, the need for knowledgeworkers and conceptual knowledge will continue to grow.16

Diagnostic Skill

Managers are frequently called on to investigate a problem and then todecide on and implement a remedy. Diagnostic skill often requires otherskills, because managers must use technical, human, conceptual, or politicalskills to solve the problems they diagnose. Much of the potential excitementin a manager’s job centers on getting to the root of problems and recom-mending solutions. An office supervisor, for example, might attempt tounderstand why productivity has not increased in his office despite the instal-lation of the latest office technology.

Political Skill

An important part of being effective is the ability to obtain power and pre-vent others from taking it away. Managers use political skill to acquire thepower necessary to reach objectives. Other political skills include establishingthe right connections and impressing the right people. Furthermore, man-agers high in political skill possess an astute understanding of people, along

multiculturalism

The ability to workeffectively andconduct business withpeople from differentcultures.

16Peter F. Drucker, “The Future Has Already Happened,” Harvard Business Review,September–October 1997, p. 22; “An American Sage,” p. 22.




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with a fundamental belief that they can control the outcomes of their inter-actions with people. This feeling of mastery often reduces the stress associ-ated with interacting with people.17

Political skill should be regarded as a supplement to job competence andthe other basic skills. Managers who overemphasize political skill at theexpense of doing work of substance focus too much on pleasing companyinsiders and advancing their own careers. Too much time invested in officepolitics takes time away from dealing with customer problems and improvingproductivity.

DEVELOPMENT OF MANAGERIAL SKILLS

This text is based on the assumption that managerial skills can be learned.Education for management begins in school and continues in the form oftraining and development programs throughout a career. Examples of suchprograms include a seminar about how to be an effective leader or a work-shop about e-commerce.

Developing most managerial skills is more complex than developingstructured skills such as computing a return on investment ratio or transfer-ring images from a camcorder to a projector. Nevertheless, you can developmanagerial skills by studying this text and doing the exercises, which followa general learning model:

1. Conceptual knowledge and behavioral guidelines. Each chapter in this textpresents useful information about the practice of management, includingstep-by-step procedures for a method of group decision making calledthe nominal group technique.

2. Conceptual knowledge demonstrated by examples. Brief descriptions ofmanagers and professionals in action, including small-business owners,are presented throughout the text.

3. Skill-development exercises. The text provides an opportunity for practiceand personalization through cases and self-assessment exercises. Self-quizzes are included because they are an effective method of helpingyou personalize the information.

4. Feedback on skill utilization, or performance, from others. Feedback exer-cises appear at several places in the text. Implementing some of thesemanagerial skills outside of the classroom will provide additional oppor-tunities for feedback.

5. Frequent practice of what you have learned, including making adjustmentsfrom the feedback. Both soft skills and technical skills must be practicedfrequently to develop expertise. If you also make the adjustments thatfeedback has suggested, the level of expertise is likely to be higher. Sup-pose you wanted to develop the managerial skill of giving praise and rec-ognition to others. Not everybody is naturally good at giving praise and

17Pamela L. Perrewé et al., “Political Skill: An Antidote for Workplace Stressors,” Academyof Management Executive, August 2000, p. 120.

Development of Managerial Skills 19



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recognition; you might have to practice frequently. If several people toldyou that your praise was too heavy, you might diminish the amount ofpraise you were heaping upon others.

Experience is obviously important in developing management skills.Yet experience is likely to be more valuable if it is enhanced with education.Consider an analogy to soccer. A person learning soccer might read andwatch a video about the proper way to kick a soccer ball. With this educa-tion behind her, she now kicks the ball with the side of her foot instead of toefirst. She becomes a competent kicker by combining education and experi-ence. People often make such statements as, “You can’t learn to be a man-ager (or leader) from a book.” However, you can learn managerial conceptsfrom a book or lecture and then apply them. People who move vertically intheir careers usually have both education and experience in managementtechniques.

A key reason for continuing to develop managerial skills is that the man-ager’s job is more demanding than ever, and the workplace keeps changing.A manager is likely to work in an intense, pressure-filled environment requir-ing many skills. Companies forced to keep up with competition are drivingthe demand for managers with updated skills. Rapid changes, such as theneed for e-commerce and a social networking presence, require managers tocontinually develop new skills.

THE EVOLUTION OF MANAGEMENT THOUGHT

Management as a practice has an almost unlimited history. Visualize a groupof prehistoric people attempting to develop a device that would help trans-port heavy objects. Given a modern label, the caveperson suggesting thisdevelopment is the head of product research and development. The projectof building the curious new circular device was turned over to a group ofpeople who had hands-on access to raw material. Because the developers ofthe wheel did not constitute a business enterprise, they handed over the tech-nology of the wheel to all interested parties (in prehistoric times, patents werenot available).

Management as a formal study, in comparison to a practice, began in the1700s as part of the Industrial Revolution. Here we take a brief look at man-agement, covering both historical developments and various approaches tounderstanding it. The anchor points to our discussion are as follows:

1. The classical approach (scientific management and administrativemanagement)

2. The behavioral approach3. Quantitative approaches4. The systems perspective5. The contingency approach6. The information technology approach and beyond

LEARNINGOBJECTIVEl5Identify the majordevelopments inthe evolution ofmanagementthought.




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All of these approaches mentioned here also appear in later sections ofthe book. For example, the study of leadership and motivation stems fromboth the classical and behavioral approaches. The historical approaches laidthe foundation for understanding and practicing management.

Classical Approach to Management

The study of management became more systematized and formal as a by-product of the Industrial Revolution that took place from the 1700s throughthe 1900s. It was necessary to develop approaches to managing work andpeople in order to manage all the new factories that were a central part ofthe Industrial Revolution. The classical approach to management encom-passes scientific management and administrative management.

The focus of scientific management was the application of scientific meth-ods to increase individual workers’ productivity. An example would beassembling a washing machine with the least number of wasted motionsand steps. Frederick W. Taylor, considered the father of scientific manage-ment, was an engineer by background. He used scientific analysis and experi-ments to increase worker output. Other key contributors to scientificmanagement were Henry Gantt and Frank and Lillian Gilbreth. (Ganttcharts for scheduling activities are still used today.)

Administrative management was concerned primarily with how organiza-tions should be managed and structured. The French businessman HenriFayol and the German scholar Max Weber were the main contributors toadministrative management. Based on his practical experience, Fayol devel-oped 14 management principles through which management engaged inplanning, organizing, commanding, coordinating, and controlling. Twoexamples of his principles are (1) unity of command—for any tasks, eachworker should receive orders from only one supervisor, and (2) esprit decorps—promoting team spirit builds harmony and creates organizationalunity. Weber proposed an ideal form of bureaucracy to improve upon ineffi-cient forms of organization that included using favoritism to promote work-ers.18 Among Weber’s recommendations was the idea of breaking down eachjob into simple, routine, and well-defined tasks.

Alfred D. Chandler, Jr., the Harvard University business historian, was akey figure in promoting the importance of the classical approach to manage-ment. He championed the study of modern bureaucratic administration andinfluenced the thinking of executives about organizing large business firms.Many of the insights Chandler developed were based on the individual historieshe gathered of Du Pont, General Motors, Standard Oil (now ExxonMobil),and Sears, Roebuck & Co. The time period he chose for studying these orga-nizations was between 1850 and 1920; the most comprehensive version of hisconclusions about major business firms was published in Strategy and Struc-ture in 1962.

administrative

management

The use ofmanagementprinciples in thestructuring andmanaging of anorganization.

scientific

management

The application ofscientific methods toincrease individualworkers’ productivity.

18“Theory of Social and Economic Organization: Max Weber,” in Business: The UltimateResource (Cambridge, MA: Perseus Publishing, 2002), p. 950.

The Evolution of Management Thought 21



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Chandler’s book demonstrates the essential link between a company’sstrategy (master plan) and its structure (layout or division of work).His famous thesis is that a firm’s structure is determined or chosen by itsstrategy—and unless structure follows strategy, inefficiency results. In otherwords, what a firm wants to accomplish determines how the company isorganized. Chandler’s insights contributed to the decentralization of manymodern organizations.19

Consider today’s Colgate-Palmolive Company, whose strategy might bestated as responding to the personal-care needs of people and animalsthroughout the world. To achieve this lofty goal, the company is dividedinto four mammoth divisions: Oral Care, Personal Care, Home Care, andPet Nutrition. Each division is subdivided into products groups of its own,such as Personal Care including Men’s Antiperspirant and Deodorant,Women’s Antiperspirant and Deodorant, Body Wash, and Liquid HandSoap. If Colgate-Palmolive were not organized by divisions, the companywould consist of major groups such as manufacturing, engineering, researchand development, finance, and information systems.

The core of management knowledge lies within the classical school. Asits key contributions, it studies management from the framework of plan-ning, organizing, leading, and controlling—the framework chosen in thistext. Many major historical developments in organizations, such as thedecentralization of General Electric (GE) in the 1950s, were based on classi-cal principles. The classical school provides a systematic way of managingpeople and work that has proven useful over time and represents its majorstrength. Its major limitation is that it sometimes ignores differences amongpeople and situations. For example, some of the classical principles for devel-oping an organization are not well suited to fast-changing situations.

The Behavioral Approach

The behavioral approach to management emphasizes improving managementthrough the psychological makeup of people. In contrast to the largely tech-nical emphasis of scientific management, a common theme of the behavioralapproach focuses on the need to understand people. The behavioralapproach is sometimes referred to as the human resources approach becauseof the focus on making optimum use of workers in a positive way, such asmaking jobs motivational. One hope of the behavioral approach was toreduce some of the labor-management conflict so prevalent under the classi-cal approach to management. The behavioral approach has profoundlyinfluenced management, and a portion of this book is based on behavioraltheory. Typical behavior and human resource topics include leadership,motivation, communication, teamwork, and conflict.

19Alfred Chandler, Strategy and Structure (New York: Doubleday, 1962); Albert Chandler,“Strategy and Structure: Albert Chandler,” in Business: The Ultimate Resource (Cambridge,MA: Perseus Publishing, 2002), p. 950.

behavioral approach

to management

An approach tomanagement thatemphasizes improvingmanagement throughan understanding ofthe psychologicalmakeup of people.




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The most direct origins of the behavioral approach are set in the 1930sthrough the 1950s. Yet earlier scholars such as Robert Owen and MaryParker Follett also wrote about the importance of the human element.Working in the textile industry in Scotland in the early 1800s, Owen criti-cized fellow managers for failing to understand the human element in themills. He contended that showing concern for workers resulted in greaterprofitability while at the same time reducing hardship for workers. Owenreported that efforts to pay careful attention to the human element oftenresulted in a 50 percent return on his investment.20

Follett focused her attention on the importance of groups in managingpeople. Although she published her works during the period of scientificmanagement, Follett did not share Taylor’s view that organizations shouldbe framed around the work of individuals. In contrast, she argued thatgroups were the basis on which organizations should be formed. Follettexplained that to enhance productivity and morale, managers should coordi-nate and aid the efforts of work groups.21

Three cornerstones of the behavioral approach are the Hawthorne stud-ies, Theory X and Theory Y, and Maslow’s need hierarchy. These develop-ments contributed directly to managers’ understanding of the importance ofhuman relations on the job. Yet again, practicing managers have probablyalways known about the importance of human relations. The prehistoric per-son who developed the wheel probably received a congratulatory pat on theback from another member of the tribe!

The Hawthorne Studies

The purpose of the first study conducted at the Hawthorne plant of WesternElectric (an AT&T subsidiary located in Cicero, Illinois) was to determinethe effects of changes in lighting on productivity.22 In this study, workerswere divided into an experimental group and a control group. Lighting con-ditions for the experimental group varied in intensity from 24 to 46 to 70foot-candles. The lighting for the control group remained constant.

As expected, the experimental group’s output increased with eachincrease in light intensity. But unexpectedly, the performance of the controlgroup also changed. The production of the control group increased at aboutthe same rate as that of the experimental group. Later, the lighting in theexperimental group’s area was reduced. The group’s output continued toincrease, as did that of the control group. A decline in the productivity ofthe control group finally did occur, but only when the intensity of the lightwas roughly the same as moonlight. Clearly, the researchers reasoned, some-thing other than illumination caused the changes in productivity.

20Robert Owen, A New View of Society (New York: E. Bliss and F. White, 1825), p. 57.21Mary Parker Follett, The New State: Group Organization of the Solution of PopularGovernment (New York: Longmans Green, 1918), p. 28.22E. J. Roethlisberger and W. J. Dickson, Management and the Worker (Cambridge, MA:Harvard University Press, 1939).




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An experiment was then conducted in the relay-assembly test room overa period of six years, with similar results. In this case, relationships amongrest, fatigue, and productivity were examined. First, normal productivitywas established with a 48-hour week and no formal rest periods. Rest periodsof varying length and frequency were then introduced. Productivity increasedas the frequency and length of rest periods increased. Finally, the originalconditions were reinstated. The return to the original conditions, however,did not result in the expected productivity drop. Instead, productivityremained at the same high level.

One interpretation of these results was that the workers involved in theexperiment enjoyed being the center of attention. Workers reacted positivelybecause management cared about them. The phenomenon is referred to asthe Hawthorne effect. It is the tendency of people to behave differentlywhen they receive attention because they respond to the demands of the situ-ation. In a work setting, employees perform better when they are part of anyprogram, whether or not that program is valuable. Another useful lessonlearned from the Hawthorne studies is that effective communication withworkers is critical to managerial success.

Theory X and Theory Y of Douglas McGregor

A widely quoted development of the behavioral approach is DouglasMcGregor’s analysis of the assumptions managers make about humannature.23 Theory X is a set of traditional assumptions about people. Managerswho hold these assumptions are pessimistic about workers’ capabilities. Theybelieve that workers dislike work, seek to avoid responsibility, are not ambi-tious, and must be supervised closely. McGregor urged managers to challengethese assumptions about human nature because they are untrue in mostcircumstances.

Theory Y, the alternative, poses an optimistic set of assumptions. Theseassumptions include the idea that people do accept responsibility, can exer-cise self-control, possess the capacity to innovate, and consider work to be asnatural as rest or play. McGregor argued that these assumptions accuratelydescribe human nature in far more situations than most managers believe.He therefore proposed that these assumptions should guide managerialpractice.

Maslow’s Need Hierarchy

Most readers are already familiar with the need hierarchy developed by psy-chologist Abraham Maslow. This topic will be presented in Chapter 11 indiscussions about motivation. Maslow suggested that humans are motivatedby efforts to satisfy a hierarchy of needs ranging from basic needs to thosefor self-actualization, or reaching one’s potential. The need hierarchy

Hawthorne effect

The phenomenon inwhich people behavedifferently in responseto perceived attentionfrom evaluators.

23Douglas McGregor, The Human Side of Enterprise (New York: McGraw-Hill, 1960),pp. 33–57.




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prompted managers to think about ways of satisfying a wide range of workerneeds to keep them motivated.

The primary strength of the behavioral (or human resources) approach isthat it encourages managers to take into account the human element. Manyvaluable methods of motivating employees are based on behavioral research.The primary weakness of the behavioral approach is that it sometimes leadsto an oversimplified view of managing people. Managers sometimes adoptone behavioral theory and ignore other relevant information. For example,several theories of motivation pay too little attention to the importance ofmoney in people’s thinking.

Quantitative Approaches to Management

The quantitative approach to management is a perspective on managementthat emphasizes the use of a group of methods in managerial decision mak-ing, based on the scientific method. Today, the quantitative approach isoften referred to as management science or operations research (OR). Fre-quently used quantitative tools and techniques include statistics, linear pro-gramming, network analysis, decision trees, and computer simulations. Thesetools and techniques can be used when making decisions regarding inventorycontrol, plant-site locations, quality control, and a range of other decisionswhere objective information is important. Several quantitative approachesto decision making are found in Chapter 6 (quantitative techniques for plan-ning and decision making).

Frederick Taylor’s work provided the foundation for the quantitativeapproach to management. However, the impetus for the modern-day quanti-tative approach was the formation of OR teams to solve a range of problemsfaced by the Allied forces during World War II. Examples of the problemsconsidered by the OR team included the bombing of enemy targets, the effec-tive conduct of submarine warfare, and the efficient movement of troopsfrom one location to another. Following World War II, many industrialapplications were found for quantitative approaches to management. Theapproach was facilitated by the increasing use of computers. A representativeproblem tackled by a quantitative approach to management would be to esti-mate the effect of a change in the price of a product on the product’s marketshare.

The primary strength of the quantitative approach to management is thatit enables managers to solve complex problems that cannot be solved bycommon sense alone. For example, management science techniques areused to make forecasts that take into account hundreds of factors simulta-neously. A weakness of management science is that the answers it producesare often less precise than they appear. Although quantitative approaches useprecise methods, much of the data is based on human estimates, which canbe unreliable.

quantitative

approach to

management

A perspective onmanagement thatemphasizes use of agroup of methods inmanagerial decisionmaking, based on thescientific method.




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The Systems Perspective

The systems perspective is a way of viewing problems more than it is a spe-cific approach to management. It is based on the concept that an organiza-tion is a system, or an entity of interrelated parts. If you adjust one part ofthe system, other parts will be affected automatically. For example, supposeyou offer low compensation to job candidates. According to the systemsapproach, your action will influence your product quality. The “low-quality” employees who are willing to accept low wages will produce low-quality goods. Exhibit 1-2, which showed the process of management,reflected a systems viewpoint.

Another aspect of systems theory is to regard the organization as anopen system, one that interacts with the environment. As illustrated inExhibit 1-5, the organization transforms inputs into outputs and suppliesthem to the outside world. If these outputs are perceived as valuable, theorganization will survive and prosper. The feedback loop indicates that theacceptance of outputs by society gives the organization new inputs for revi-talization and expansion. Managers can benefit from this diagram by recog-nizing that whatever work they undertake should contribute something ofvalue to external customers and clients.

Two other influential concepts from the systems perspective are entropy andsynergy. Entropy is the tendency of a system to run down and die if it does notreceive fresh inputs from its environment. As indicated in Exhibit 1-5, theorganization must continually receive inputs from the outside world to makesure it stays in tune with, or ahead of, the environment. Synergy means thatthe whole is greater than the sum of the parts. When the various parts of anorganization work together, they can produce much more than they could byworking independently. For example, a few years ago product developers atApple Corp. thought about building a stylish new smart phone called iPhone.The developers consulted immediately with manufacturing, engineering, pur-chasing, and dealers to discuss the feasibility of their idea. Working together,

EXHIBIT 1-5

A systems per-spective keeps themanager focusedon the externalenvironment.

A Systems View of Organization

Inputs(Resources)

Process

Outputs(Products or Services)

Environment(Demands of Society)

systems perspective

A way of viewingaspects of anorganization as aninterrelated system.

entropy

A concept of thesystems approach tomanagement thatstates that anorganization will diewithout continuousinput from the outsideenvironment.

synergy

A concept of thesystems approach tomanagement thatstates that the wholeorganization workingtogether will producemore than the partsworkingindependently.




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the units of the organization produced a highly successful product launch in atightly competitive market.

The Contingency Approach

The contingency approach to management emphasizes that there is no singlebest way to manage people or work in every situation. A method that leadsto high productivity or morale under one set of circumstances may notachieve the same results in another. The contingency approach is derivedfrom the study of leadership and organization structures. With respect toleadership, psychologists developed detailed explanations of which style ofleadership would work best in which situation. An example would be forthe manager to give more leeway to competent group members. Also, thestudy of organization structure suggests that some structures work better indifferent environments. For example, a team structure is often best for a rap-idly changing environment. Common sense also contributes heavily to thecontingency approach. Experienced managers know that not all people andsituations respond in the same way to identical situations. The contingencyapproach is emphasized throughout this book.

The strength of the contingency approach is that it encourages managersto examine individual and situational differences before deciding on a courseof action. Its major problem is that it is often used as an excuse for notacquiring formal knowledge about management. If management is deter-mined by the situation, why study management theory? The answer isbecause a formal study of management helps a manager decide which factorsare relevant in a given situation.

The Information Technology Era and Beyond

The information technology era had relatively modest beginnings in the1950s with the use of electronic data processing to take over the manual pro-cessing of large batches of data and numbers. By the late 1980s, the impactof information technology and the Internet began to influence how managersmanage work and people. A report by two economists concluded that theimpact of the Internet on business is similar to the impact of electricity atthe beginning of the twentieth century.24 Can you visualize what it musthave been like to work in an office or factory without electricity?

The impact of information technology and the Internet on the work ofmanagers is so vast that it receives separate attention in Chapter 14. Infor-mation technology modified managerial work in the following ways:

• Managers often communicate with people, even sending layoff notices,by e-mail rather than by telephone or in person. Managers send and

contingency

approach to

management

A perspective onmanagement thatemphasizes that nosingle way to managepeople or work is bestin every situation. Itencourages managersto study individual andsituational differencesbefore deciding on acourse of action.

24Martin Brooks and Zakhi Wahhaj, “Is the Internet Better Than Electricity?” GoldmanSachs report cited in Gary Hamel, “Inside the Revolution—Edison’s Curse,” Fortune,March 5, 2001, p. 176.




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receive messages more frequently than in the past because they are in fre-quent contact with the office through a BlackBerry or some other brandof personal digital assistant or smart phone.

• Many managers organize their sales and marketing efforts differently byusing the Internet to conduct most transactions. Similarly, much pur-chasing of supplies and materials is conducted through the Internet.Almost every consumer-oriented business today has been drawn intousing social networking sites such as Twitter and Facebook to market itsproducts.

• Managers run their organizations more democratically because they re-ceive input from so many workers at different levels in the organizationthrough e-mail and intranets.

Be careful not to dismiss the evolution of management thought with his-torical information that is no longer relevant. Practicing managers can use allsix major developments in management thought. An astute manager selectsinformation from the various schools of thought to achieve good results in agiven situation. Visualize an executive making a large financial services firmmore efficient and effective. The manager might rely on the classical schoolof management in restructuring company divisions. At the same time theexecutive uses site visits and town hall meetings to communicate withemployees, reflecting the behavioral approach to management.

The history of management is being written each year in the sense thatthe practice of management continues to evolve. As you study this book andlisten to associated lectures you will learn about the new era in management,such as more emphasis on employee empowerment, outsourcing, and helpingemployees manage stress. An example of a leading-edge approach to man-agement is evidence-based management whereby managers translate princi-ples (based on the most reliable evidence at the time) into organizationalpractices, as already mentioned. Quite often the best evidence is empirical(based on experience) and recent, yet old principles can still be useful. Thealternative to evidence-based management is to rely heavily on commonsense and adopting practices used by other companies whether or not theyfit a particular situation. Many of the principles and suggestions presentedthroughout this text would help a manager practice evidence-basedmanagement.

Evidence-based management is not yet widely practiced, but taking thestudy of management seriously will have moved managers and organizationstoward basing their practices and decisions on valid evidence. The results arelikely to be higher productivity and employee morale.




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Summary of Key PointsSummary of Key Points

To facilitate your study and review of this and theremaining chapters, the summaries are organizedaround the learning objectives.

l1 Explain what the term manager means, andidentify different types of managers.

A manager is a person responsible for work perfor-mance of other people. Management is the processof using organizational resources to achieve specificobjectives through the functions of planning, orga-nizing and staffing, leading, and controlling. Organi-zational levels consist of top-level managers, middle-level managers, first-level managers, and individualcontributors. New types of C-level managers con-tinue to emerge, such as chief of staff and chief com-mercial officer. Categories of managers includefunctional managers (who deal with specialtieswithin the firm), general managers, administrators(typically managers in nonprofit firms), entrepre-neurs (those who start innovative businesses),small-business owners, and team leaders. Entrepre-neurs and small-business owners are particularlypassionate about their work.

l2 Describe the process of management,including the functions of management.

To accomplish organizational goals, managers useresources and carry out the basic management func-tions. Resources are divided into four categories:human, financial, physical, and informational. Thefour managerial functions are planning, organizingand staffing, leading, and controlling.

l3 Describe the various managerial roles.

The work of a manager can be divided into 17 rolesthat relate to the four major functions. Planningroles include strategic planner and operational plan-ner. Organizing and staffing calls for the organizer,liaison, staffing coordinator, resource allocator, andtask delegator roles. Leading roles include figure-head, spokesperson, negotiator, motivator and

coach, team builder, team player, technical problemsolver, and entrepreneur. Controlling involves themonitor and disturbance handling roles. Managerialwork has shifted substantially away from the con-troller and director role to that of coach, facilitator,and supporter. Top-level managers occupy moreexternal roles than do lower-ranking managers. Auseful perspective on the nature of management isthat it is a practice, rather than a science or profes-sion. The use of evidence-based management helpsprofessionalize the work of managers.

l4 Identify the basic managerial skills andunderstand how they can be developed.

Managers need interpersonal, conceptual, diagnos-tic, and political skills to accomplish their jobs.An effective way of developing managerial skills isto follow a general learning model. The modelinvolves conceptual knowledge, behavioral guide-lines, examples, skill-development exercises, feed-back, and frequent practice. Management skills areacquired through a combination of education andexperience.

l5 Identify the major developments in theevolution of management thought.

Management practice has an almost unlimited his-tory, whereas the formal study of managementbegan as part of the Industrial Revolution. Themajor developments in management thought andthe history of management are (1) the classicalapproach (scientific management and administrativemanagement); (2) the behavioral or human resourcesapproach; (3) quantitative approaches; (4) the sys-tems approach; (5) the contingency approach; and(6) the information technology era and beyond.

The best practices of managers today includeelements of the six major developments in manage-ment thought. Management thought continues toevolve. A leading-edge trend is evidence-based man-agement in which managers base their decisions andpractices on principles derived from good evidence.

Summary of Key Points 29



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Key Terms and Phrases

Manager, 2Management, 2Top-level managers, 2C-level manager, 3Middle-level managers, 4First-level managers, 5Entrepreneur, 6Small-business owners, 6Team leader, 7Role, 11Evidence-based management, 17

Multiculturalism, 18Scientific management, 21Administrative management, 21Behavioral approach to management, 22Hawthorne effect, 24Quantitative approach to management, 25Systems perspective, 26Entropy, 26Synergy, 26Contingency approach to management, 27

Questions

Here, as in other chapters, groups or individuals cananalyze the questions and cases. We strongly recom-mend using some small-group discussion to enhancelearning.

1. In addition to a paid job, where else might aperson develop managerial experience?

2. In recent years, many employers seek out tech-nically trained job candidates who also havestudied management. What advantages do youthink employers see in a technical person study-ing management?

3. Why do large companies encourage many oftheir employees to “think like entrepreneurs”?

4. During weather emergencies such as a severe icestorm, some companies send out an alert thatonly “essential” employees should report towork. Explain why managers should or shouldnot stay home on such emergency days.

5. What do you think might be advantages ofmaking business executives adhere to a code ofethics as do physicians and lawyers?

6. Why might evidence-based management makean organization more competitive?

7. Why is “management” regarded by some peopleas an essential life skill?

Skill-Building Exercise 1-A: Identifying Managerial Roles

Interview a manager at any level in any organiza-tion, including a retail store or restaurant. Deter-mine which of the 17 managerial roles the manageryou interview thinks apply to his or her job. Findout which one or two roles the manager thinks arethe most important. Be ready to discuss your find-ings in class. You can often gain insight into which

roles the manager emphasizes by asking about chal-lenges the manager faces. For example, when askedabout the biggest challenges in her job, a restaurantmanager might say, “Turnover is a bear. It’s so hardto find good servers who stick around for at least ayear.” The manager’s comments indicate the orga-nizing function.

Skill-Building Exercise 1-B: Managerial Skills of Athletic Coaches

The key managerial skills described in this chapterapply to managers in all fields. To help visualize

these skills in action, individually or as a group,identify these skills as used by a coach during the




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next week. Watch a coach in person or on televisionor read a newspaper report. Find a good examplefor each of the five skills, and jot down the basisfor your answer. To help point you in the rightdirection, consider the following example a studentmight furnish: “Last night I was watching a collegebasketball game on television. The score was tiedwith ten seconds to go, and a timeout was called.With the five players in the game in a huddle, thecoach got out his clipboard and diagrammed a playusing Xs, Os, and a marker. The play worked, andthe team won in the final second. I would say the

coach was using technical skill because he dug intothe details of how to win.”

For which skills was it easiest to find an exam-ple? For which skill was it the most difficult? Whatconclusions can you draw about the managerialskills of athletic coaches?

Technical skillInterpersonal skillConceptual skillDiagnostic skillPolitical skill

Management Now: Online Skill-Building Exercise: Hard Skills andSoft Skills for Managers

As explained in the chapter section Five Key Mana-gerial Skills, managers need a combination of hardskills and soft skills to be effective. However, it is notso easy to find a specific list of both types of skills,and perhaps what constitutes an effective combina-tion of these skills. Use one or two of your favoritesearch engines to compose a list of at least five hardskills and five soft skills that will help you in your

managerial career. A starting point in your searchmight be to enter into your search engine the phrase“hard skills and soft skills for managers.” You willmost likely have to dig further to get the informationyou need to complete this assignment. Restrict youranalysis to articles about managerial skills publishedwithin the last two years so that you become familiarwith current trends.

Management Now: Online Skill-Building Exercise 31



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l1-A Case Problem

Big Hopes at Olive Garden, Red Lobster, and LongHorn

Steakhouse

Clarence Otis, chairman and chief executive ofDarden Restaurants Inc., sees better days aheadfor an industry that took a beating during theGreat Recession of the recent past. Otis, whosecompany owns Olive Garden, Red Lobster,LongHorn Steakhouse, and other casual-dining chains, expected the job losses that cutconsumer spending to abate in the first quarterof 2010.

“Restaurants, historically, are one of the firstindustries to benefit coming out of a recession.People have deferred big-ticket items like cars,appliances and vacations, and a meal out is alow-ticket treat,” said Otis.

Darden planned to capitalize on the recoveryby doing the things it had been planning to doprior to the recession, such as investing in menudevelopment and employee training, remodel-ling restaurants, and preserving cash.

Unlike many restaurant chains that turned toheavy discounting to lure customers, Dardenavoided that. Buy-one-get-one-free or half-offpromotions “run the risk of communicating toconsumers that price is the primary attribute ofyour brand and it overwhelms all the otherthings that go into developing a strongbrand,” Otis said. Instead, Darden introducednew menu items at lower prices; that helpedrestaurants keep the same profit.

At its upscale Capital Grille chain the com-pany offered, for $40 per person, new seafood

entrées paired with appetizers and wine fromregions of the world where prices are lower orfrom newer vineyards that charge less thanmore established ones. Darden also reducedthe pace at which it opened new restaurants.

The biggest lesson that was reinforced forhim during the downturn, Otis said, was tospend conservatively and to keep debt loweven when times are good.

Discussion Questions

1. What managerial roles is Clarence Otisemphasizing in the case just presented?

2. What challenges would restaurant managersface in implementing Otis’s approach tokeeping the restaurants performing well dur-ing a slow period in the economy?

3. If you have visited a Darden restaurantlately, what suggestions can you offer top-level management for attracting even morecustomers?

4. Based onmedia reports, how successful do youthink Clarence Otis has been in helping theDarden chain become a continuing success?

5. What financial management practices of theDarden chain might be useful to you in man-aging your personal finances?

Source: Julie Jargon, “Darden Runs Lean, Keeps Pricing Firm atRestaurant Chains,” The Wall Street Journal, December 28,2009, p. B5.




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l1-B Case Problem

The Management Trainee Blues

Sara Fenton was excited about having beenrecruited into the restaurant manager trainingprogram at a national restaurant chain. As anassistant manager to Johnny Sanchez, shewould perform a variety of managerial dutiesat a busy restaurant in suburban Cleveland,Ohio. If she performed well in her responsibili-ties for two years, she would be assigned tomanage her own restaurant within the chain.

Before shifting into her job as assistant man-ager, first Sara had to spend six weeks on thewait staff. “This assignment was a natural forme because I had worked part-time as a serverfor several years in high school and college,”Sara said. “Working in the dining room wasalso a good way to learn more about the restau-rant where I would be an assistant manager.”After performing well as a server, and earningwonderful tips, Sara was appointed to the assis-tant manager position as promised.

Influenced by a workshop on the topic oftime management Sara took at school, shedecided to maintain a log of her activities asmanager. Among the entries were as follows:

September 2: Bill, one of the wait staff, sentme an e-mail saying that hecould not work today becausehis uncle shot himself in ahunting accident, and Bill hadto wait at the hospital. What amess, because we are short-handed in the dining room thisbusy Labor Day weekendanyway.

September 6: Jen, one of the best servers onthe staff, said she needs a weekoff to take care of a personalproblem. After 25 years ofmarriage, her mother and

father announced their plans todivorce and Jen just can’t takethe emotional pain. It will betough replacing Jen until shereturns.

September 25: Chuck, a member of the waitstaff, accidentally spilled hotcoffee on one of the customers.The customer demanded to seethe manager, so I tried to takecare of the problem. The manwas irate, and talked aboutsuing the restaurant. I tried tocalm him down, and offered topay for his meal as well as fordry cleaning his trousers. I don’tknow the final outcome of thisproblem, but it looks ugly.

October 5: Johnny informs me that therestaurant chain is concernedthat some of the spinach itbought this week contained E.coli bacteria. We are getting ridof all the spinach we can find inthe restaurant, but some of thesalads we served the last fewdays may have been contami-nated. Johnny wants me to in-vestigate. Does he think I’m achemist and detective as well asa management trainee?

Sara is scheduled to meet with Johnny San-chez later this week to discuss her impressionsof her work as the assistant restaurant manager.Sara reflected, “What can I say that is positive?The problems I’m dealing with so far don’tseem like the job of a real manager. I wonderif I’ve chosen the right field? These day-by-dayheadaches are a lot to cope with.”

Case Problem 33



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Discussion Questions

1. Advise Sara on whether she is really learningsome valuable lessons as a potentialmanager.

2. What should Sara tell Johnny on her reviewof her experiences?

3. Which managerial roles has Sara been carry-ing out as indicated by her activity log?

l1-B Case Problem




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