Introduction To Management and Organizations

Chapter 1
Introduction to Management and
Organizations
Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition 1-1
Copyright © 2008 Pearson Education Canada
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter
• Who Are Managers?
– Explain how managers differ from nonmanagerial
employees
– Discuss how to classify managers in organizations.
• What Is Management?
– Define management
– Explain why efficiency and effectiveness are
important to management
LEARNING OUTLINE (cont’d)
• What Do Managers Do?
– Describe the four functions of management
– Explain Mintzberg’s managerial roles
– Describe Katz’s three essential managerial skills and
how the importance of these skills changes depending
on managerial level
• What Is an Organization?
– Describe the characteristics of an organization
– Explain how the concept of an organization is
changing
• The Challenges Managers Face
– Describe the current trends and issues facing
managers
• What Is Corporate Social Responsibility?
– Contrast the classical and socioeconomic views of
social responsibility
– Discuss the role that stakeholders play in the four
approaches to social responsibility
– The relationship between corporate social
responsibility and economic performance
• Understanding workforce diversity
– Accommodating diverse members in the organization
• Why Study Management?
– Explain the universality of management concept
– Discuss why an understanding of management is
important even if you don’t plan to be a manager
Who Are Managers?
• Manager
– Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
Types of Managers
• Firstline Managers
– Are at the lowest level of management and manage the
work of nonmanagerial employees
• Middle Managers
– Manage the work of firstline managers
• Top Managers
– Are responsible for making organizationwide decisions
and establishing plans and goals that affect the entire
organization
Exhibit 1.1 Managerial Levels
Top
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
What Is Management?
• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output for the least input
– Effectiveness
• “Doing the right things”
– Attaining organizational goals
What Do Managers Do?
• Functional Approach
– Planning
• Defining goals, establishing strategies to achieve goals,
developing plans to integrate and coordinate activities
– Organizing
• Arranging work to accomplish organizational goals
– Leading
• Working with and through people to accomplish goals
– Controlling
• Monitoring, comparing, and correcting the work
Exhibit 1.2 Management
Functions
Planning Organizing Leading Controlling
Lead to
Defining goals, Determining Directing and Monitoring
establishing what needs motivating all activities Achieving the
strategy, and to be done, involved parties to ensure organization’s
developing how it will and resolving that they are stated
subplans to be done, and conflicts accomplished purpose
coordinate who is to do it as planned
activities
What Do Managers Do? (cont’d
• Mintzberg’s Management Roles Approach (Exhibit
1.3)
– Interpersonal roles
• Figurehead, leader, liaison
– Informational roles
• Monitor, disseminator, spokesperson
– Decisional roles
• Entrepreneur, disturbance handler, resource allocator,
negotiator
What Do Managers Do? (cont’d)
• Skills Approach
– Technical skills
• Knowledge and proficiency in a specific field
– Human skills
• The ability to work well with other people
– Conceptual skills
• The ability to think and conceptualize about abstract and
complex situations concerning the organization
Exhibit 1.4 Skills Needed at Different
Management Levels
Top Conceptual
Managers
Skills
Middle Human
Managers Skills
Lower-level Technical
Managers Skills
Importance
What Is An Organization?
• An Organization Defined
– A deliberate arrangement of people to
accomplish some specific purpose
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure
Exhibit 1.5 Characteristics of
Organizations
Distinct Deliberate
Purpose Structure
People
Exhibit 1.6 The Changing Organization
Traditional New Organization
• Stable • Dynamic
• Inflexible • Flexible
• Jobfocused • Skillsfocused
• Work is defined by job positions • Work is defined in terms of tasks to
• Individualoriented be done
• Permanent jobs • Teamoriented
• Commandoriented • Temporary jobs
• Managers always make decisions • Involvementoriented
• Ruleoriented • Employees participate in decision
• Relatively homogeneous workforce making
• Workdays defined as 9 to 5 • Customeroriented
• Hierarchical relationships • Diverse workforce
• Work at organizational facility • Workdays have no time boundaries
during specific hours • Lateral and networked
relationships
• Work anywhere, anytime
Sizes and Types of Organizations
• Managers and employees work in a variety of sizes of
organizations
– Large organizations represent only 3% of the organizations in
Canada
• Managers and employees work in a variety of organizations, and
the type of organization has an impact on what managers can do
– Publicly held organizations
– Privately held organizations
– Public sector organizations
– Crown Corporations
– Subsidiaries of foreign organizations (e.g., Sears, Safeway,
General Motors, and Ford Motor Company)
Challenges Managers Face
• Ethics
– Increased emphasis on ethics education in
university and college curriculums
– Increased creation and use of codes of ethics by
businesses
• Corporate Social Responsibility
– Pursuing longterm goals that are good for
society
Corporate Social Responsibility
• The Classical View
– Maximize profits for the benefit of the
stockholders
– Doing “social good” unjustifiably increases costs
What Is Social Responsibility?
(cont’d)
• The Socioeconomic View
– Management should also protect and improve
society’s welfare
– Corporations are responsible not only to
stockholders
– Firms have a moral responsibility to larger
society “to do the right thing”
Exhibit 1.7 Approaches to Social
Responsibility
Obstructionist
Approach
Defensive
Approach
Accommodative
Approach
Proactive
Approach
Disregard Minimal Moderate Strong

for social commitment commitment commitment
responsibility to social to social to social
responsibility responsibility responsibility
No Social Responsibility High Social Responsibility
Workforce Diversity
• Workforce diversity
– Refers to employees in organizations who are
heterogeneous in terms of gender, race, ethnicity,
or other characteristics
• A global issue
• Canada recognizes and celebrates differences
• Managers must make organizations more accommodating
Why Study Management?
• The Value of Studying Management
– The universality of management
• Good management is needed in all organizations
– The reality of work
• Employees either manage or are managed
– Selfemployment
• Management is also important in running your own
business
Exhibit 1.8 Universal Need for
Management
All Sizes of Organizations
Small Large
All Organizational Areas

Management All Types of Organizations
Manufacturing —Marketing
Human Resources —Accounting Is Needed
in... Profit Not-for-Profit
Information Systems —etc.
All Organization Levels
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Disregard Minimal Moderate Strong

No Social Responsibility High Social Responsibility

All Organizational Areas

All Organization Levels

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