Chapter 1

The Management Process

Introduction to
Management
13th edition

John R. Schermerhorn, Jr.

Daniel G. Bacharach

Ch.2 1
 Planning Ahead — Key Takeaways
➢ Recognize the challenges of working in the
new economy.
➢ Describe the nature of organizations as work
settings.
➢ Discuss what it means to be a manager.
➢ Explain the functions, roles, and activities of
managers.
➢ Identify essential managerial skills and
discuss how they are learned.

Ch.1 2
 Chapter 1 Outline
Working today
➢ Talent
➢ Technology
➢ Globalization
➢ Ethics
➢ Diversity
➢ Careers and Connections
Organizations
➢ Organizational purpose
➢ Organizations as systems
➢ Organizational performance
➢ Changing nature of organizations

Ch.1 3
 Chapter 1 Outline
Managers
➢ What is a manager?
➢ Levels of managers
➢ Types of managers
➢ Managerial performance
➢ Changing nature of managerial work
The Management Process
➢ Functions of Management
➢ Managerial roles and activities
➢ Agenda settings and networking
Learning How to Manage
➢ Technical skills
➢ Human and interpersonal skills
➢ Conceptual and critical-thinking skills

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 WORKING TODAY
Talent (How to get the best out of organization’s workforce?)
▪ People and their talents are the ultimate foundations of
organizational performance. what they know, learn & achieve.
▪ Intellectual Capital (IC) is the collective brainpower + shared
knowledge of a workforce.
▪ IC is also a personal asset, one to be nurtured and continually
updated.
▪ IC a package of Intellect, skills and capabilities that sets us apart
and makes us valuable to potential employers.
▪ A knowledge worker’s mind is a critical asset to employers and
adds to the IC of an organization.

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 WORKING TODAY

https://youtu.be/eZGcq9uJsWU

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 WORKING TODAY
Intellectual capital equation:

Intellectual
Commitment Competency
Capital

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 Working Today
Technology
▪ Tech IQ (Technology Intelligence Quotient) is a
person’s ability to use technology to stay
informed; examples:
• Checking inventory, making a sales transaction,
ordering supplies
• Telecommuting
• Virtual teams

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 Working Today

▪ The worldwide interdependence of resource

flows, product markets, and business
competition that characterize our economy.
▪ Job migration occurs when firms shift jobs
from one country to another
▪ Reshoring: moving jobs back home

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 Working Today

▪ Code of moral principles that set standards of

conduct of what is “good” and “right” in one’s
behavior.
▪ Ethical expectations for modern businesses:
1) Integrity and ethical leadership at all
levels
2) Social responsibility
3) Sustainability

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 Working Today

▪ Board of directors hold top management

responsible for organizational performance

Financial Ethical
Sustainability
performance performance

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 Working Today
Diversity
▪ Workforce diversity reflects differences with respect to
gender, age, race, ethnicity, religion, sexual orientation,
and able-bodiedness
▪ A diverse and multicultural workforce represent
challenges and offers opportunities to employers

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 Working Today
How diversity bias can occur in the workplace:
▪ Prejudice. Display of negative, irrational attitudes towards
members of diverse groups. In 1977, 49% of men & 71% of women
believed mothers can be good employees. In 2008, 67% & 80%!!!
Why not 100%??
▪ Discrimination. Unfairly treating minorities and denied full
benefits of Org'l membership. Such as a mgr inventing reasons not
to interview a minority job candidate, a supervisor refuses to
promote a working mother for fear of parenting responsibilities.
▪ Glass ceiling effect. Invisible barrier that prevents women and
minorities from rising to top jobs. Undervalued & underutilized HC
(Human Capital).
▪ Diversity is not only a moral issue but an opportunity for real
performance gains. Here where it comes the job of Chief Diversity
Officer CDO.

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 Working Today
Careers and Connections
▪ Online resumes/CVs and job searches.
▪ Job seekers should consider internship as pathway to
first job.
▪ But, everything depends on a mix of skills you can offer
to an employer.
▪ Picture yourself in a job interview.
▪ The most dominant question recruiters ask is:
• What can you do for us? Your answer is very important.

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 Working Today

Careers & Connections

1
▪ Organizations consist
of three types of 2
workers, sometimes
referred to as a
3
Shamrock Organization

https://www.cnbc.com/2018/10/31/the-future-of-work-wont-be-about-degrees-it-will-be-
about-skills.html

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 Working Today
▪ 1st Leaf: Core workers;
permanent full-time
1. Permanent employees. Their number is
full time shrinking. (in the USA)
workers ▪ 2nd leaf: Freelancers
“independent contractors” who
offer specialized skills and
3.Temporary 2.Freelance talents on a contract basis,
part-time or contract then change employers.
workers workers
▪ 3rd leaf: Temporary part-timers
(flexible workers) who often
work without benefits & are
first to lose their jobs during
economic crises.

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 Working Today
Free-agent economy
▪ Free agents: people who work independently for themselves, rather
than for a single employer, new workstyle. Coined by Daniel Pink, 1997
▪ These include self-employed workers, freelancers, independent
contractors and temporary workers, who altogether represent ~ 44% of
the U.S. labor force!
▪ People change jobs more often, and many work on flexible contracts
(shortened job cycles).
▪ Skills must be kept updated & portable. Examples: mastery, networking,
technology, marketing, etc. They can not be gained once & forgotten.
▪ They must be carefully maintained and upgraded at all times.

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 Working Today

Free-agent economy

 Capacity to Self-management
▪ Ability to understands & asses oneself, exercise
▪ Initiative, accept responsibility, and learn from
experience
▪ Connections count high in free-agent economy.
▪ Social networking such as: LinkedIn, Reddit,
Bayt.com and many others.

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 Working Today
Early Career Survival Skills of the text describes critical skills for the
new workplace:

• Mastery: You need be good at something; you need to be able to

contribute something of value to your employer.
• Networking: You need to know people; networking with others
within and outside the organization is essential.
• Entrepreneurship: You must act as if you are running your own
business, spotting ideas and opportunities and pursuing them.
• Technology: You have to embrace technology; you have to stay
up-to-date and fully utilize all that is available.
• Marketing: You need to communicate your successes and
progress, both yours personally and those of your work team.
• Renewal: You need to learn and change continuously, always
improving yourself for the future.

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 Organizations
Organization
A group of people working together to achieve a common
purpose
▪ Organizations provide useful goods and/or services that
return value to society and satisfy customer needs
▪ The clear purpose or any organization is to:
1) Provide quality products & services
2) Customer satisfaction, and
3) Social responsibility
IBM’s former CEO, Samuel Palmisano, said: one simple way to
assess the impact of any organization is to ask: How is the world
different because it existed?

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 Organizations as Open Systems
interact with their environment

❖ A holistic approach

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 Organizations as Open Systems
Interact with their Environment

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 Organizations as Open Systems
Interact with their Environment

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 Organizations as Open Systems
Interact with their Environment

Figure 1.1

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 Management Purpose
PESTEL
Economic Legal & Political Environmental
Environment Environment factors

MANAGEMENT
Adjustment/balancing

RESOURCES
Facilities OUTPUT/GOALS
Materials Sales
Money Profits
People Quality
Conversion Process
Technology Physical/Intangible
Restraints

Social Technological
Environment Environment

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 Organizations performance
▪ “Value creation” is a very important notion for org’s
▪ Value is created when an org’s operations adds value
to the original cost of resource inputs
▪ When value creation occurs:
• Businesses earn a profit
• Nonprofit organizations add wealth to society

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 Organizations performance

An overall measure of the quantity and

Productivity quality of work performance with
resource utilization taken into account

Performance An output measure of task or goal

effectiveness accomplishment

Performance An input measure of the resource costs

efficiency associated with goal accomplishment

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 Organizations

Effectiveness + Efficiency = Productivity

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 Productivity and the Dimensions of
Organizational Performance

Figure 1.2

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 Relevant Organizations Trends
Workplace changes that provide a context for studying management:

Focus on valuing human capital

Demise of “command-and-control”

Emphasis on teamwork

Preeminence of technology

Importance of networking

New workforce expectations

Priorities on sustainability

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 Managers
Importance of HR and managers
▪ People are not ‘costs to be controlled ’
▪ High performing organizations treat people as
valuable strategic assets

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 Managers
▪ Mangers are made, not born!
▪ Directly supports, activates and is responsible
for the work of others
▪ The people who managers help, are the ones
whose tasks represent the real work of the org
▪ Effective managers help others achieve high
performance and satisfaction at work

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 Managers
Levels of management
1. Board of Directors make sure the organization is
run right (Corporate Governance). Nonexecutives
2. Top managers are responsible for performance of
an org as a whole or for one of its major parts
3. Middle managers oversee large departments or
divisions
4. Team leaders/first line managers supervise non-
managerial workers

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 Managers
Levels of management

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 Management levels in a typical business and
non-profit organizations

Figure 1.3

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 Managers
Types of managers
• Line managers are responsible for work activities that
directly affect organization’s outputs
• Staff managers use technical expertise to advise and
support the efforts of line workers
• Functional managers are responsible for a single area
of activity
• General managers are responsible for more complex
units that include many functional areas
• Administrators work in public and nonprofit
organizations

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 Line and Staff Authority

As org’s get larger and more complex, line managers find that they do not
have the time, expertise, or resources to get their jobs done effectively!

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 Managers
• Managerial performance Accountability:
it is the requirement to show performance results
to a supervisor (Answerable).

• Boards of directors instill corporate governance, by

holding top mgt accountable for Org'l performance.
 All managers should try to be effective managers, by
helping others achieve high performance outcomes while
maintaining a high quality of work life environment.

https://youtu.be/ijtudIQjVg8

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 Takeaway 3: Managers
Quality of Work Life (QWL)
An indicator of the overall quality of human
experiences in the workplace. “Human sustainability”

QWL indicators:

• Respect
• Fair pay
• Safe working conditions
• Opportunities to learn and use new skills
• Room to grow and progress in a career
• Protection of individual rights

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 The Organization viewed as
an Upside-down Pyramid

Figure 1.4

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 The Management Process
Functions of management:

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 The Management Process
Functions of management:
1. Planning
The process of setting objectives and determining what
actions should be taken to accomplish them.
2. Organizing
The process of assigning tasks, allocating resources, and
coordinating work activities.
3. Leading
The process of arousing people’s enthusiasm (inspiring) to
work hard and direct their efforts to achieve goals.
4. Controlling
The process of measuring work performance and taking
action to ensure desired results.

Ch.1 42
 MINTZBERG’S 10 MANAGERIAL ROLES
Henry Mintzberg, is a Canadian academic and
author on business and management. He is
currently a Professor of Management Studies at the
Faculty of Management of McGill University in
Montreal, Quebec, Canada, where he has been
teaching since 1968

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 MINTZBERG’S 10 MANAGERIAL ROLES

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 The Management Process
Characteristics of managerial work based on
research:
✓ Long hours
✓ Intense pace
✓ Fragmented and varied tasks
✓ Many communication media
✓ Filled with interpersonal relationships

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 The Management Process
Managerial agendas and networks- Important Terms
✓ Agenda setting
Develops action priorities for accomplishing goals and plans
✓ Networking
Process of creating positive relationships with people who can help
advance agendas (PR)
✓ Social capital
Capacity to get things done with support and help from others
✓ Learning
That results from experience
✓ Lifelong learning
The process of continuously learning from daily experiences &
opportunities

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 Katz’s Essential Managerial Skills

Figure 1.6

Ch.1 47
 Essential Managerial Skills

Ch.1 48
 End of the Chapter

Ch.2 Copyright ©2015 John Wiley & Sons, Inc.

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