ninth edition

STEPHEN P. ROBBINS MARY COULTER

Introduction to Introduction to Management and Management and OrganizationsOrganizations

ChapterChapter

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Who Are Managers?Who Are Managers?• ManagerManager

Someone who coordinates and oversees the work of Someone who coordinates and oversees the work of other people so that organizational goals can be other people so that organizational goals can be accomplished. accomplished.

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Making the Leap From Individual Performer to Manager

• They get things done through their organization.They get things done through their organization.• They create the systems, conditions and They create the systems, conditions and

environment that enable organizations to survive environment that enable organizations to survive and thrive beyond the tenure of any specific and thrive beyond the tenure of any specific supervisor or manager.supervisor or manager.

What Do Managers Have in Common?What Do Managers Have in Common?

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Exhibit 1–1Exhibit 1–1 Managerial LevelsManagerial Levels

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Classifying ManagersClassifying Managers• First-line ManagersFirst-line Managers

Individuals who manage the work of non-managerial Individuals who manage the work of non-managerial employees.employees.

• Middle ManagersMiddle Managers Individuals who manage the work of first-line Individuals who manage the work of first-line

managers.managers.• Top ManagersTop Managers

Individuals who are responsible for making Individuals who are responsible for making organization-wide decisions and establishing plans organization-wide decisions and establishing plans and goals that affect the entire organization.and goals that affect the entire organization.

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Management Types - VerticalManagement Types - VerticalManagerial Levels in the Organizational Hierarchy

Exhibit 1.3

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Management Types - HorizontalManagement Types - Horizontal• Functional ManagersFunctional Managers

Responsible for a department that performs a single Responsible for a department that performs a single functional task and functional task and

Has employees with similar training and skillsHas employees with similar training and skills

• General ManagersGeneral Managers Responsible for several departments that perform Responsible for several departments that perform

different functionsdifferent functions

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Managerial Types - HorizontalManagerial Types - Horizontal• Functional ManagersFunctional Managers

AdvertisingAdvertising SalesSales FinanceFinance Human ResourcesHuman Resources ManufacturingManufacturing AccountingAccounting

• General ManagersGeneral Managers Self-contained division Self-contained division

such as a Macy’s such as a Macy’s department storedepartment store

Project managers have Project managers have general management general management responsibility as they responsibility as they coordinate people across coordinate people across several departmentsseveral departments

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Organizational PerformanceOrganizational Performance

• OrganizationOrganization - social entity that is goal directed and deliberately - social entity that is goal directed and deliberately structuredstructured

• EffectivenessEffectiveness - degree to which organization achieves a stated goal - degree to which organization achieves a stated goal

• EfficiencyEfficiency - use of minimal resources (raw materials, money, and - use of minimal resources (raw materials, money, and people) to produce the desired volume of outputpeople) to produce the desired volume of output

• ProcessProcess – A systematic method of handling activities – A systematic method of handling activities

• PerformancePerformance – organization’s ability to attain its goals by using – organization’s ability to attain its goals by using resources in an efficient and effective mannerresources in an efficient and effective manner

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• Management as a Specialty in TimeManagement as a Specialty in Time Management is an attempt to create a desirable future, Management is an attempt to create a desirable future,

keeping the past and the present in mind.keeping the past and the present in mind. Management is a practice in and is a reflection of a Management is a practice in and is a reflection of a

particular era.particular era. Management is a practice that produces consequences Management is a practice that produces consequences

and effect that emerge over time.and effect that emerge over time.• Management as a Specialty in Human RelationsManagement as a Specialty in Human Relations Managers act in relationship that are two way street; Managers act in relationship that are two way street;

each party influence by other.each party influence by other. Managers act in relationship that have spill over effect Managers act in relationship that have spill over effect

for people, for better and for worse.for people, for better and for worse. Managers juggle multiple simultaneous relationships.Managers juggle multiple simultaneous relationships.

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• Managerial PerformanceManagerial Performance

The measure of how efficient and effective a manager is The measure of how efficient and effective a manager is - how well he/she determine and achieves appropriate - how well he/she determine and achieves appropriate objectives or goals.objectives or goals.

• Organizational PerformanceOrganizational Performance

The measure of how efficient and effective an The measure of how efficient and effective an organization is - how well it achieves appropriate organization is - how well it achieves appropriate objectives or goals.objectives or goals.

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• Managerial ConcernsManagerial Concerns EfficiencyEfficiency

““Doing things right”Doing things right”– Getting the most output Getting the most output

for the least inputsfor the least inputs EffectivenessEffectiveness

““Doing the right things”Doing the right things”– Attaining organizational Attaining organizational

goalsgoals

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Exhibit 1–2Exhibit 1–2 Effectiveness and Efficiency in ManagementEffectiveness and Efficiency in Management

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Definition of ManagementDefinition of Management• The attainment ofThe attainment of organizational goalsorganizational goals in an in an

effectiveeffective and and efficientefficient manner through manner through • Four functionsFour functions

planning,planning, organizingorganizing, , leadingleading, and , and controllingcontrolling organizational resources. organizational resources.

Managers use a multitude of skills to perform Managers use a multitude of skills to perform functionsfunctions

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The Process of ManagementThe Process of Management

Planning

Leading

Resources

Controlling Organizing

Performance

•Human

•Financial

•Raw Materials

•Technological

•Information

•Attain goals

•Products

•Services

•Efficiency

•Effectiveness

Use influence to motivate employees

Select goals and ways to attain

them

Assign responsibility for task

accomplishment

Monitor activities and make

corrections

Exhibit 1.1

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Functions of ManagementFunctions of Management

Planning

Leading

Controlling Organizing

Use influence to motivate employees

Select goals and ways to attain

them

Assign responsibility for task

accomplishment

Monitor activities and make corrections

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What Do Managers Do?What Do Managers Do?• Functional ApproachFunctional Approach

PlanningPlanning Defining goals, establishing strategies to achieve goals, Defining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities.developing plans to integrate and coordinate activities. OrganizingOrganizing

Arranging and structuring work to accomplish organizational Arranging and structuring work to accomplish organizational goals.goals.

LeadingLeading Working with and through people to accomplish goals.Working with and through people to accomplish goals.

ControllingControlling Monitoring, comparing, and correcting work.Monitoring, comparing, and correcting work.

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Exhibit 1–3Exhibit 1–3 Management FunctionsManagement Functions

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PlanningPlanning The process of establishing goals and a suitable course of The process of establishing goals and a suitable course of

action for achieving those goals.action for achieving those goals. Managers think through their goals and action, actions are Managers think through their goals and action, actions are

based on some method, plan or logicbased on some method, plan or logic Plan gives the organization its objectives and set up the best Plan gives the organization its objectives and set up the best

procedures for reaching them.procedures for reaching them. Planning helps organization to reach its objectivesPlanning helps organization to reach its objectives.

Selection of goalsSelection of goals Establishing goals for organization’s subunits-divisions, Establishing goals for organization’s subunits-divisions,

dept. etcdept. etc Establishing programs for achievement of goals in Establishing programs for achievement of goals in

systematic manner.systematic manner.

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OrganizingOrganizing The process of engaging two or more people in working The process of engaging two or more people in working

together in a structured way to achieve a specific goal or set together in a structured way to achieve a specific goal or set of goals.of goals.

Process of arranging and allocating work, authority and Process of arranging and allocating work, authority and resources.resources.

Managers match an organization’s structure to its goals and Managers match an organization’s structure to its goals and resources, called as organizational development.resources, called as organizational development.

Seeking new people to join structure of relationships---Seeking new people to join structure of relationships---staffing.staffing.

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• LeadingLeading The process of directing and influencing the task-related The process of directing and influencing the task-related

activities of group members or entire organization.activities of group members or entire organization. Involves directing, influencing and motivating employees to Involves directing, influencing and motivating employees to

perform essential tasks.perform essential tasks. Establishing proper atmosphere by managers to help their Establishing proper atmosphere by managers to help their

employees to do their best.employees to do their best.

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• ControllingControlling The process of ensuring that actual activities conform to The process of ensuring that actual activities conform to

planned activities.planned activities. Involves four main elementsInvolves four main elements

Establishing standards of performanceEstablishing standards of performance Measuring current performanceMeasuring current performance Comparing this performance to the established Comparing this performance to the established

standardsstandards Taking corrective action if deviations are detectedTaking corrective action if deviations are detected

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What Do Managers Do? What Do Managers Do? Management Roles Approach (Henry Mintzberg)Management Roles Approach (Henry Mintzberg)

Interpersonal RolesInterpersonal Roles Managerial Roles that involves people and other duties that Managerial Roles that involves people and other duties that

are ceremonial and symbolic in nature. are ceremonial and symbolic in nature.

Informational RolesInformational Roles Managerial roles that involves collecting, receiving and Managerial roles that involves collecting, receiving and

disseminating information.disseminating information.

Decisional RolesDecisional Roles Managerial roles that revolve around making choices.Managerial roles that revolve around making choices.

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What Do Managers Do? (cont’d)What Do Managers Do? (cont’d)

CategoryCategory RoleRole

InformationalInformational MonitorMonitor

DisseminatorDisseminator

SpokespersonSpokesperson

InterpersonalInterpersonal FigureheadFigurehead

LeaderLeader

LiaisonLiaison

DecisionalDecisional EntrepreneurEntrepreneur

Disturbance handlerDisturbance handler

Resource allocatorResource allocator

negotiatornegotiator

Management Roles Approach (Henry Mintzberg)Management Roles Approach (Henry Mintzberg)

Ten Manager RolesTen Manager Roles

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Management Roles Approach (Henry Mintzberg)Management Roles Approach (Henry Mintzberg)

MONITOR: gathers internal and external information relevant to gathers internal and external information relevant to the organizationthe organization

DISSEMINATOR: transmits factual and value based information transmits factual and value based information to subordinatesto subordinates

SPOKESPERSON: communicates to the outside world on communicates to the outside world on performance and policiesperformance and policies

FIGUREHEAD: the manager performs ceremonial and symbolic the manager performs ceremonial and symbolic duties as head of the organizationduties as head of the organization

LEADER: fosters a proper work atmosphere and motivates and fosters a proper work atmosphere and motivates and develops subordinatesdevelops subordinates

LIASION: develops and maintains a network of external contacts develops and maintains a network of external contacts to gather informationto gather information

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Management Roles Approach (Henry Mintzberg)Management Roles Approach (Henry Mintzberg)

ENTREPRENEUR: designs and initiates change in the designs and initiates change in the organizationorganization

DISTURBANCE HANDLER: deals with unexpected events and deals with unexpected events and operational breakdownsoperational breakdowns

RESOURCE ALLOCATOR: controls and authorizes the use of controls and authorizes the use of organizational resourcesorganizational resources

NEGOTIATOR: participates in negotiation activities with other participates in negotiation activities with other organizations and individualsorganizations and individuals

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What Do Managers Do? What Do Managers Do? Skills ApproachSkills Approach

• Conceptual SkillsConceptual Skills – Cognitive ability to see the organization – Cognitive ability to see the organization as a whole and the relationships among its partsas a whole and the relationships among its parts

• Human SkillsHuman Skills – ability to work with and through other people – ability to work with and through other people and to work effectively as a group memberand to work effectively as a group member

• Technical SkillsTechnical Skills – understanding of and proficiency in the – understanding of and proficiency in the performance of specific tasksperformance of specific tasks

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Exhibit 1–5Exhibit 1–5 Skills Needed at Different Management LevelsSkills Needed at Different Management Levels

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How The Manager’s Job Is ChangingHow The Manager’s Job Is Changing• The Increasing Importance of CustomersThe Increasing Importance of Customers

Customers: the reason that organizations existCustomers: the reason that organizations exist Managing customer relationships is the responsibility of all Managing customer relationships is the responsibility of all

managers and employees.managers and employees. Consistent high quality customer service is essential for Consistent high quality customer service is essential for

survival.survival.

• InnovationInnovation Doing things differently, exploring new territory, and Doing things differently, exploring new territory, and

taking riskstaking risks Managers should encourage employees to be aware of and Managers should encourage employees to be aware of and

act on opportunities for innovation.act on opportunities for innovation.

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Exhibit 1–8Exhibit 1–8Changes Impacting Changes Impacting the Manager’s Jobthe Manager’s Job

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What Is An Organization?What Is An Organization?• An Organization DefinedAn Organization Defined

A deliberate arrangement of people to accomplish A deliberate arrangement of people to accomplish some specific purpose (that individuals independently some specific purpose (that individuals independently could not accomplish alone).could not accomplish alone).

• Common Characteristics of OrganizationsCommon Characteristics of Organizations Have a distinct purpose (goal)Have a distinct purpose (goal) Composed of peopleComposed of people Have a deliberate structureHave a deliberate structure

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Exhibit 1–9Exhibit 1–9 Characteristics of OrganizationsCharacteristics of Organizations

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Exhibit 1–10Exhibit 1–10 The Changing OrganizationThe Changing Organization

Why Study Organization?Why Study Organization?• Living In The PresentLiving In The Present

Organization contribute to the present standard of living of Organization contribute to the present standard of living of people worldwide.people worldwide.

• Building The FutureBuilding The Future Org. build toward a desirable future and help individuals do Org. build toward a desirable future and help individuals do

the same.the same. New products and practices are developed as a results of the New products and practices are developed as a results of the

creative power that emerge when the people work together in creative power that emerge when the people work together in org.org.

• Remembering The PastRemembering The Past Org. Help connect people to their pasts.Org. Help connect people to their pasts. Org. maintain records and value their own history ,keeping Org. maintain records and value their own history ,keeping

tradition in our minds.tradition in our minds.1–34

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Why Study Management?Why Study Management?• The Value of Studying ManagementThe Value of Studying Management

The universality of managementThe universality of management Good management is needed in all organizations.Good management is needed in all organizations.

The reality of workThe reality of work Employees either manage or are managed.Employees either manage or are managed.

Rewards and challenges of being a managerRewards and challenges of being a manager Management offers challenging, exciting and creative Management offers challenging, exciting and creative

opportunities for meaningful and fulfilling work.opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards Successful managers receive significant monetary rewards

for their efforts.for their efforts.

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Exhibit 1–11Exhibit 1–11 Universal Need for ManagementUniversal Need for Management

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Exhibit 1–12Exhibit 1–12 Rewards and Challenges of Being A ManagerRewards and Challenges of Being A Manager

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Management and AdministrationManagement and Administration

• Administration is concerned with policy making where management Administration is concerned with policy making where management with policy implementing. with policy implementing.

• Functions of administration are legislative and largely determinative Functions of administration are legislative and largely determinative while management functions are more executive and governing.while management functions are more executive and governing.

• Administration is more concerned with Planning and organizing Administration is more concerned with Planning and organizing while management is more concerned with Leading and Controlling.while management is more concerned with Leading and Controlling.

• The functioning and importance of administration increases at The functioning and importance of administration increases at higher levels and decreases at lower levels.higher levels and decreases at lower levels.

• Administration – Board of DirectorsAdministration – Board of Directors• Management – persons below BODManagement – persons below BOD

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Management is a Science or ArtManagement is a Science or Art

• Science refers to a systematic body of knowledge acquired through Science refers to a systematic body of knowledge acquired through observation experimentation and intelligent speculation.observation experimentation and intelligent speculation.

• Management has become a discipline, which is more organizing and Management has become a discipline, which is more organizing and systemized.systemized.

• Science has spread all areas throughout the world and management Science has spread all areas throughout the world and management is an accepted science as a way of solving problems and taking is an accepted science as a way of solving problems and taking decision.decision.

• The principal of management are universal in nature and are being The principal of management are universal in nature and are being applied in every branch of human activity, so its considered as a applied in every branch of human activity, so its considered as a Social Science also.Social Science also.

• Art – Skill in conducting any human activity.Art – Skill in conducting any human activity.• Managing as practice is an art, the organized knowledge underlying Managing as practice is an art, the organized knowledge underlying

the practice is a science.the practice is a science.• Science and Art are not mutually exclusive, they are complementary.Science and Art are not mutually exclusive, they are complementary.

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Terms to KnowTerms to Know• managermanager• first-line managersfirst-line managers• middle managersmiddle managers• top managerstop managers• managementmanagement• efficiencyefficiency• effectivenesseffectiveness• planningplanning• organizingorganizing• leadingleading• controllingcontrolling

• management rolesmanagement roles• interpersonal rolesinterpersonal roles• informational rolesinformational roles• decisional rolesdecisional roles• technical skillstechnical skills• human skillshuman skills• conceptual skillsconceptual skills• organizationorganization

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