Second Section: Test Bank (answers are located at end of the doc)
Chapter 1
THE MANAGER’S JOB
The purpose of Chapter 1 is to provide an overview of the nature of managerial work. It
could be argued that the entire book has a similar purpose. It is therefore necessary to
touch upon topics in Chapter 1 that are covered again in later chapters. The chapter
provides information on key managerial topics such as (a) the meaning of the term
manager, (b) an overview of the process of management, (c) a discussion of managerial
roles, and (d) a summary of the major developments in the evolution of management
thought.
Learning Objectives
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1. Explain what the term manager means and identify different types of manager.
2. Describe the process of management, including the functions of
management.
3. Describe the various managerial roles.
4. Identify the basic managerial skills and understand how they can be
developed.
5. Describe how managers have to synthesize five mind-sets to accomplish
their work.
6. Identify the major developments in the evolution of management thought.
Chapter Outline and Lecture Notes
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,Managers play a vital role in society—they pull together resources to get important things
accomplished.
I. WHO IS A MANAGER?
A manager is a person responsible for the work performance of group members. He
or she has the formal authority to commit organizational resources. Management is
the process of using organizational resources to achieve organizational objectives
through the functions of planning, organizing and staffing, leading, and controlling.
Management also refers to a specific discipline, the people who manage, or a career
choice.
A. Levels of Management
Managerial jobs are typically divided into three levels:
1. Top-Level Managers. Top-level managers, or executives, are
empowered to
make major decisions affecting the
present and future of the firm. About one
percent of jobs in organizations are
truly executive positions.
2. Middle-Level Managers. Middle-level managers are the layer between top-
and first-level managers. Much of their work involves the coordination of
work, and the dissemination of information. Middle-management jobs have
declined in numbers as many organizations have downsized but they still play
a major role in operating an organization.
3. First-Level Managers. Managers who supervise
operatives are referred to as first-
level managers or supervisors. Supervisory jobs have been upgraded in many
organizations, as a result of reducing the number of layers of management.
The current emphasis on productivity and quality has also upgraded the
supervisory role.
II. TYPES OF MANAGERS
, Managerial jobs can be divided into functional and general managers, administrators,
entrepreneurs and small-business owners, and team leaders.
A. Functional and General Managers
Functional managers supervise the work of employees engaged in specialized
activities, such as accounting and quality control. General managers are responsible
for the work of several different groups performing a variety of functions. Company
presidents and division heads are general managers. Key tasks of general managers
include shaping the work environment and crafting a strategic vision.
B. Administrators
An administrator is a manager who works in a public or nonprofit organization
(including educational institutions) rather than in a business firm.
C. Entrepreneurs and Small-Business Owners
Entrepreneurs are people who begin a new business based on an innovative idea
for a product or service. Entrepreneurs are therefore risk-takers and have an
adventuresome spirit. Michael H. Morris says that entrepreneurship is defined by
three dimensions: innovativeness, risk taking, and proactiveness. Each of these
dimensions can occur in different degrees. A small-business owner operates a
small business that is not necessarily entrepreneurial (innovative).
D. Team Leaders
A team leader coordinates the work of a small group of people, while acting as a
facilitator and catalyst. Team leaders are found at many organizational levels, and
are also referred to as project managers, process managers, and task-force leaders.
III. THE PROCESS OF MANAGEMENT
Managerial work can be regarded as a process, a series of actions that brings about a
goal. To achieve that objective, the manager uses resources and carries out the four
managerial functions.
A. Resources Used by Managers
Managers use four types of resources:
, 1. Human Resources. Human resources are the employees needed to get
the job done.
2. Financial Resources. Any money used by the organization is classified
as a
financial resource.
3. Physical Resources. Physical resources are the firm’s tangible goods
and real estate,
including raw materials, office space, production facilities, office equipment, and
vehicles.
4. Information Resources. Data used to accomplish the job are classified
as
information resources.
B. The Four Managerial Functions
The classical, or standard, functions of management remain a useful way of
understanding management.
1. Planning. Planning involves setting goals and figuring out ways of
reaching them.
Planning is the central function of management.
2. Organizing and Staffing. Organizing is the process of making sure the
necessary
human and physical resources are available to carry out a plan and achieve
organizational goals. Staffing involves ensuring there are the necessary human
resources to achieve organizational goals. Hiring is a typical staffing activity.
3. Leading. Leading is the managerial function of influencing
others to achieve
organizational objectives. Leadership is the interpersonal
aspect of management.
4. Controlling. Controlling is the managerial function of ensuring that
performance conforms to plans. Controlling
involves comparing actual performance to a