STUDY GUIDE
Chapter 1 – Management Reality
1. Management is considered universal because it applies to nearly
every organization.
2. An organization is defined as a group of people who work together
to achieve a common goal.
Levels of Management
3. The three levels of management are: first-line managers, middle
managers, and top managers.
4. Responsibilities of first-line managers: supervise non-managerial
employees; oversee day-to-day operations.
5. Responsibilities of middle managers: implement policies set by top
managers; supervise first-line managers; coordinate activities.
6. Responsibilities of top managers: set organizational goals; make
strategic decisions; represent the organization to the outside
world.
7. How are all three management levels similar? All plan, organize,
lead, and control.
8. How are they different? Scope and time horizon: top = long-
term/strategic; middle = tactical; first-line = operational/day-
to-day.
What is Management?
9. Management is the process of planning, organizing, leading, and
controlling human and other resources to achieve organizational
goals efficiently and effectively.
Efficiency vs. Effectiveness
10. Efficiency is doing things right – getting the most output
from the least input. Focuses on resource usage.
, 11. Effectiveness is doing the right things – achieving
goals. Focuses on outcomes and results.
12. Example of efficiency: producing 100 units with less waste.
13. Example of effectiveness: producing the right product
customers want.
14. Difference between the two: efficiency = process;
effectiveness = outcome.
Four Functions of Management
15. The four functions of management are: planning, organizing,
leading, and controlling.
16. Planning is setting goals and deciding how to achieve
them.
17. Organizing is arranging tasks, people, and resources to
accomplish work.
18. Leading is motivating, directing, and influencing people to
work toward goals.
19. Controlling is monitoring performance, comparing it with
goals, and taking corrective action.
Mintzberg's Managerial Roles (Exhibit 1-6)
20. Interpersonal roles are roles that involve people and
relationships. Examples: figurehead, leader, liaison.
21. Informational roles are roles that involve collecting,
receiving, and disseminating information. Examples: monitor,
disseminator, spokesperson.
22. Decisional roles are roles that involve making
choices. Examples: entrepreneur, disturbance handler, resource
allocator, negotiator.
Management Skills (VERY IMPORTANT)
, 23. The three management skills are: conceptual, interpersonal,
and technical.
24. Conceptual skills are the ability to think abstractly and
understand big-picture/complex situations. Most important
for top managers.
25. Interpersonal skills are the ability to work well with other
people. Most important for all levels – equally important.
26. Technical skills are the ability to use specialized knowledge
and techniques. Most important for first-line managers.
27. Skill hierarchy chart:
o Top managers: Conceptual = high, Interpersonal = moderate,
Technical = low
o Middle managers: Conceptual = moderate, Interpersonal
= high, Technical = moderate
o First-line managers: Conceptual = low, Interpersonal
= moderate, Technical = high
Chapter 2 – History of Management
28. Adam Smith is known for The Wealth of Nations (1776) and
his major contribution is division of labor – breaking down jobs into
specialized tasks increases productivity.
29. Why is it important? Laid foundation for work specialization
and efficiency.
30. Connection to the Industrial Revolution: his ideas fueled
factory production and mass manufacturing.
31. Frederick Taylor is known for Scientific Management – using
time-motion studies to improve worker efficiency.
32. Major contribution: developed standard methods for each
job.
33. Goal of Scientific Management: increase productivity by
finding the "one best way" to do a task.
Chapter 1 – Management Reality
1. Management is considered universal because it applies to nearly
every organization.
2. An organization is defined as a group of people who work together
to achieve a common goal.
Levels of Management
3. The three levels of management are: first-line managers, middle
managers, and top managers.
4. Responsibilities of first-line managers: supervise non-managerial
employees; oversee day-to-day operations.
5. Responsibilities of middle managers: implement policies set by top
managers; supervise first-line managers; coordinate activities.
6. Responsibilities of top managers: set organizational goals; make
strategic decisions; represent the organization to the outside
world.
7. How are all three management levels similar? All plan, organize,
lead, and control.
8. How are they different? Scope and time horizon: top = long-
term/strategic; middle = tactical; first-line = operational/day-
to-day.
What is Management?
9. Management is the process of planning, organizing, leading, and
controlling human and other resources to achieve organizational
goals efficiently and effectively.
Efficiency vs. Effectiveness
10. Efficiency is doing things right – getting the most output
from the least input. Focuses on resource usage.
, 11. Effectiveness is doing the right things – achieving
goals. Focuses on outcomes and results.
12. Example of efficiency: producing 100 units with less waste.
13. Example of effectiveness: producing the right product
customers want.
14. Difference between the two: efficiency = process;
effectiveness = outcome.
Four Functions of Management
15. The four functions of management are: planning, organizing,
leading, and controlling.
16. Planning is setting goals and deciding how to achieve
them.
17. Organizing is arranging tasks, people, and resources to
accomplish work.
18. Leading is motivating, directing, and influencing people to
work toward goals.
19. Controlling is monitoring performance, comparing it with
goals, and taking corrective action.
Mintzberg's Managerial Roles (Exhibit 1-6)
20. Interpersonal roles are roles that involve people and
relationships. Examples: figurehead, leader, liaison.
21. Informational roles are roles that involve collecting,
receiving, and disseminating information. Examples: monitor,
disseminator, spokesperson.
22. Decisional roles are roles that involve making
choices. Examples: entrepreneur, disturbance handler, resource
allocator, negotiator.
Management Skills (VERY IMPORTANT)
, 23. The three management skills are: conceptual, interpersonal,
and technical.
24. Conceptual skills are the ability to think abstractly and
understand big-picture/complex situations. Most important
for top managers.
25. Interpersonal skills are the ability to work well with other
people. Most important for all levels – equally important.
26. Technical skills are the ability to use specialized knowledge
and techniques. Most important for first-line managers.
27. Skill hierarchy chart:
o Top managers: Conceptual = high, Interpersonal = moderate,
Technical = low
o Middle managers: Conceptual = moderate, Interpersonal
= high, Technical = moderate
o First-line managers: Conceptual = low, Interpersonal
= moderate, Technical = high
Chapter 2 – History of Management
28. Adam Smith is known for The Wealth of Nations (1776) and
his major contribution is division of labor – breaking down jobs into
specialized tasks increases productivity.
29. Why is it important? Laid foundation for work specialization
and efficiency.
30. Connection to the Industrial Revolution: his ideas fueled
factory production and mass manufacturing.
31. Frederick Taylor is known for Scientific Management – using
time-motion studies to improve worker efficiency.
32. Major contribution: developed standard methods for each
job.
33. Goal of Scientific Management: increase productivity by
finding the "one best way" to do a task.
