PART I: INTRODUCTION
CHAPTER 1 - MANAGERS AND MANAGEMENT
LEARNING OUTCOMES
After reading this chapter students will be able to:
1. Tell who managers are and where they work.
2. Define management.
3. Describe what managers do.
4. Explain why it’s important to study management.
5. Describe the factors that are reshaping and redefining management.
Opening Vignette – It’s a Good Life
SUMMARY
Company cofounders and brothers, Bert and John Jacobs have a personal and business philosophy
much like Jake: simplicity, humor, and humility. However, both understand that even with this
philosophy, they need to be good managers and they need good managers throughout their
organization to be successful.
Since 1989 when they designed and sold their first t-shirts door-to-door, the company has now sold
almost 20 millions 'Life is Good' t-shirts. These individuals try to model good managers so their
employees are satisfied and their company succeeds.
Teaching Tips:
1. What are some examples of good managers? Are they fair, good communicators, approachable,
etc?
,I. WHO ARE MANAGERS, AND WHERE DO THEY WORK?
A. Introduction
1. Managers work in an organization.
2. An organization is a deliberate arrangement of people brought together to
accomplish some specific purpose.
a) Your college or university is an organization.
B. What Three Common Characteristics Do All Organizations Share?
1. Every organization has a purpose and is made up of people who are grouped in
some fashion.
a) See Exhibit 1-1.
b) This distinct purpose is typically expressed in terms of a goal or set of goals.
2. Second, purposes or goals can only be achieved through people.
3. Third, all organizations develop a systematic structure that defines and limits
the behavior of its members.
a) Developing structure may include creating rules and regulations, giving
some members supervisory control, forming teams, etc.
4. The term organization refers to an entity that has a distinct purpose, has people
or members, and has a systematic structure.
C. How Are Managers Different from Non-Managerial Employees?
1. Organizational members fit into two categories: operatives and managers.
a) Non-managerial employees work directly on a job or task and have no
oversight responsibility of others.
b) Managers direct the activities of other people in the organization.
1) Customarily classified as top, middle, or first line, they supervise both
non-managerial employees and lower-level managers.
2) See Exhibit 1-2.
3) Some managers also have operative responsibilities themselves.
, Right or Wrong?
One survey indicated that some 44 percent of people lie about their work history.
Another survey found that 93 percent of hiring managers who found a lie on a job candidate’s
résumé did not hire that person.
1. Why do you think lying about your academic credentials is considered wrong?
2. What ethical issues does this bring up?
3. Which is worse? Lying about your academic credentials or lying about your work history? Why?
Teaching tip
All lies speak directly to the character of the candidate and his/her overall integrity.
2. The distinction between non-managers and managers is that managers have
employees who report directly to them.
D. What Titles Do Managers Have?
1. Top managers are responsible for making decisions about the direction of the
organization and establishing policies that affect all organizational members.
a) Examples: Bert and John Jacobs, Google’s Larry Page, Kenneth Chenault of
American Express.
b) Top managers have titles including vice president, managing director, chief
operating officer, chancellor, etc.
2. Middle managers represent levels of management between the first-line
supervisor and top management.
a) They manage other managers and possibly some non-managerial
employees.
b) They are responsible for translating the goals set by top management into
specific details.
3. First-line managers are usually called supervisors, team leaders, coaches, etc.
a) They are responsible for directing the day-to-day activities of non-
managerial employees.
Teaching Notes
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_____
, II. WHAT IS MANAGEMENT?
A. How Do We Define Management?
1. Managers, regardless of title, share several common elements.
2. Management—the process of getting things done effectively and efficiently,
through and with other people.
a) The term “process” in the definition represents the primary activities
managers perform.
3. Effectiveness and efficiency deal with what we are doing and how we are doing
it.
a) Efficiency means doing the task right and refers to the relationship between
inputs and outputs. Management is concerned about minimizing resource
costs.
b) Effectiveness means doing the right task, and in an organization that
translates into goal attainment.
c) See Exhibit 1-3.
4. Efficiency and effectiveness are interrelated.
a) It’s easier to be effective if one ignores efficiency.
b) Good management is concerned with both attaining goals (effectiveness)
and doing so as efficiently as possible.
c) Organizations can be efficient and yet not be effective.
d) High efficiency is associated more typically with high effectiveness.
5. Poor management is most often due to both inefficiency and ineffectiveness or
to effectiveness achieved through inefficiency.
From the Past to the Present
The terms management or manager come from a number of sources. One source says that the word
manager originated in 1588 to describe one who manages. The specific use of the word as “one who
conducts a house of business or public institution” is said to have originated in 1705. Another
source says that the origin (1555–1565) is from the word maneggiare, which meant “to handle or
train horses,” and was a derivative of the word mano, which is from the Latin word for hand,
manus. That origin arose from the way that horses were guided, controlled, or directed where to go
—that is, through using one’s hand.
The words management and manager are more appropriate to the early twentieth century. Peter
Drucker, the late management writer, studied and wrote about management for more than 50
years. The word ‘management’ was first popularized by Frederick Winslow Taylor.” In 1911,
Taylor’s book Principles of Scientific Management was published. Its contents were widely
embraced by managers around the world. The book described the theory of scientific
management: the use of scientific methods to define the “one best way” for a job to be done. He
CHAPTER 1 - MANAGERS AND MANAGEMENT
LEARNING OUTCOMES
After reading this chapter students will be able to:
1. Tell who managers are and where they work.
2. Define management.
3. Describe what managers do.
4. Explain why it’s important to study management.
5. Describe the factors that are reshaping and redefining management.
Opening Vignette – It’s a Good Life
SUMMARY
Company cofounders and brothers, Bert and John Jacobs have a personal and business philosophy
much like Jake: simplicity, humor, and humility. However, both understand that even with this
philosophy, they need to be good managers and they need good managers throughout their
organization to be successful.
Since 1989 when they designed and sold their first t-shirts door-to-door, the company has now sold
almost 20 millions 'Life is Good' t-shirts. These individuals try to model good managers so their
employees are satisfied and their company succeeds.
Teaching Tips:
1. What are some examples of good managers? Are they fair, good communicators, approachable,
etc?
,I. WHO ARE MANAGERS, AND WHERE DO THEY WORK?
A. Introduction
1. Managers work in an organization.
2. An organization is a deliberate arrangement of people brought together to
accomplish some specific purpose.
a) Your college or university is an organization.
B. What Three Common Characteristics Do All Organizations Share?
1. Every organization has a purpose and is made up of people who are grouped in
some fashion.
a) See Exhibit 1-1.
b) This distinct purpose is typically expressed in terms of a goal or set of goals.
2. Second, purposes or goals can only be achieved through people.
3. Third, all organizations develop a systematic structure that defines and limits
the behavior of its members.
a) Developing structure may include creating rules and regulations, giving
some members supervisory control, forming teams, etc.
4. The term organization refers to an entity that has a distinct purpose, has people
or members, and has a systematic structure.
C. How Are Managers Different from Non-Managerial Employees?
1. Organizational members fit into two categories: operatives and managers.
a) Non-managerial employees work directly on a job or task and have no
oversight responsibility of others.
b) Managers direct the activities of other people in the organization.
1) Customarily classified as top, middle, or first line, they supervise both
non-managerial employees and lower-level managers.
2) See Exhibit 1-2.
3) Some managers also have operative responsibilities themselves.
, Right or Wrong?
One survey indicated that some 44 percent of people lie about their work history.
Another survey found that 93 percent of hiring managers who found a lie on a job candidate’s
résumé did not hire that person.
1. Why do you think lying about your academic credentials is considered wrong?
2. What ethical issues does this bring up?
3. Which is worse? Lying about your academic credentials or lying about your work history? Why?
Teaching tip
All lies speak directly to the character of the candidate and his/her overall integrity.
2. The distinction between non-managers and managers is that managers have
employees who report directly to them.
D. What Titles Do Managers Have?
1. Top managers are responsible for making decisions about the direction of the
organization and establishing policies that affect all organizational members.
a) Examples: Bert and John Jacobs, Google’s Larry Page, Kenneth Chenault of
American Express.
b) Top managers have titles including vice president, managing director, chief
operating officer, chancellor, etc.
2. Middle managers represent levels of management between the first-line
supervisor and top management.
a) They manage other managers and possibly some non-managerial
employees.
b) They are responsible for translating the goals set by top management into
specific details.
3. First-line managers are usually called supervisors, team leaders, coaches, etc.
a) They are responsible for directing the day-to-day activities of non-
managerial employees.
Teaching Notes
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_____
, II. WHAT IS MANAGEMENT?
A. How Do We Define Management?
1. Managers, regardless of title, share several common elements.
2. Management—the process of getting things done effectively and efficiently,
through and with other people.
a) The term “process” in the definition represents the primary activities
managers perform.
3. Effectiveness and efficiency deal with what we are doing and how we are doing
it.
a) Efficiency means doing the task right and refers to the relationship between
inputs and outputs. Management is concerned about minimizing resource
costs.
b) Effectiveness means doing the right task, and in an organization that
translates into goal attainment.
c) See Exhibit 1-3.
4. Efficiency and effectiveness are interrelated.
a) It’s easier to be effective if one ignores efficiency.
b) Good management is concerned with both attaining goals (effectiveness)
and doing so as efficiently as possible.
c) Organizations can be efficient and yet not be effective.
d) High efficiency is associated more typically with high effectiveness.
5. Poor management is most often due to both inefficiency and ineffectiveness or
to effectiveness achieved through inefficiency.
From the Past to the Present
The terms management or manager come from a number of sources. One source says that the word
manager originated in 1588 to describe one who manages. The specific use of the word as “one who
conducts a house of business or public institution” is said to have originated in 1705. Another
source says that the origin (1555–1565) is from the word maneggiare, which meant “to handle or
train horses,” and was a derivative of the word mano, which is from the Latin word for hand,
manus. That origin arose from the way that horses were guided, controlled, or directed where to go
—that is, through using one’s hand.
The words management and manager are more appropriate to the early twentieth century. Peter
Drucker, the late management writer, studied and wrote about management for more than 50
years. The word ‘management’ was first popularized by Frederick Winslow Taylor.” In 1911,
Taylor’s book Principles of Scientific Management was published. Its contents were widely
embraced by managers around the world. The book described the theory of scientific
management: the use of scientific methods to define the “one best way” for a job to be done. He
