Plunkett 10 Ch 01

Chapter 1—Management: An Overview 1

Chapter 1

Management: An Overview

LEARNING OBJECTIVES After studying this chapter, you should be able to:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Explain why organizations need managers Outline factors that affect a manager’s universe Identify three levels of management Describe five management functions Apply management functions to each level of management Summarize ten management roles Analyze three management skills Contrast the myths with the realities of a manager’s job Discuss the criteria used to evaluate a manager’s performance

KEY TERMS

conceptual skills customer Customer Relationship Manager (CRM) diversity ethics first-line management functional managers goal human skills leadership

management management hierarchy manager middle management organization quality role technical skills technology top management Web 2.0

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


CHAPTER OUTLINE

I. II. III. IV.

INTRODUCTION MANAGEMENT AND MANAGERS ORGANIZATIONAL NEED FOR MANAGERS THE MANAGER’S UNIVERSE A. The Need to Please Customers B. The Need to Provide Leadership C. The Need to Act Ethically D. The Need to Value Diversity in Their Employees E. The Need to Cope With Global Challenges V. LEVELS OF MANAGEMENT A. Top Management B. Middle Management C. First-Line Management D. Functional Managers 1. Marketing Managers 2. Operations Managers 3. Finance Managers 4. Human Resource Managers VI. MANAGEMENT FUNCTIONS A. Planning 1. Duration and Scope of Planning 2. Influences on Planning 3. Flexibility in Planning B. Organizing C. Staffing D. Leading E. Controlling VII. FUNCTIONS AND THE LEVELS OF MANAGEMENT A. Top Management B. Middle Management C. First-Line Management VIII. MANAGEMENT ROLES A. Interpersonal Roles B. Informational Roles C. Decisional Roles D. Roles and Managerial Functions E. Roles and the Expectations of Others IX. MANAGEMENT SKILLS A. Technical Skills B. Human Skills C. Conceptual Skills D. Skills and Levels of Management X. MANAGEMENT MYTHS AND REALITIES XI. EVALUATING A MANAGER’S PERFORMANCE



Enrichment Vignette

One common misconception regarding management is that managers are those who are the boss—they give orders to subordinates while subordinates simply take orders. Actually, all managers both give and take orders, and the orders may not simply come from above. The first line supervisor obviously does both—he or she gives orders to subordinates but also takes orders from those in higher-level management positions. However, what about the manager at the very top? What about the CEO—the Chief Executive Officer? The CEO must please the members of the Board of Directors—there have been many CEOs in recent years who failed to do so and were fired by the directors. What about the directors? They can be replaced by the stockholders, and that has happened on many occasions—in particular, when someone or some organization acquired a large portion of the corporation’s stock. All managers both give and take orders. Technically, subordinates do not give orders to the boss, but situations often exist in which that is virtually what is happening. A manager wants his or her performance to look good to those who are higher in the chain of command, but that manager’s performance may be affected by a subordinate who has vital expertise that the manager lacks—expertise that may not be easily replaced. Recommendations from such a subordinate are technically not orders, but they may have the same effect. The stockholders are not managers, and they are not the ultimate boss. If the customer does not buy what the company is trying to sell, neither manager nor subordinate (no matter how valuable) will have a job, and there will be no one to manage. The stockholders’ stock will then be worthless. In essence, it is the customer—not the manager—who is the ultimate boss. LECTURE OUTLINE The outline below (the lecture outline) is referenced to the above chapter outline and contains supplementary material to enhance your discussion of the chapter, but it is organized somewhat differently. As a result, you have a choice: by using what is in the outline below, (1) you may present the above chapter outline material in a different sequence, or (2) you may use the chapter outline references in the outline below to present the lecture outline material in the same sequence as the chapter outline. I.

INTRODUCTION A.

Management and Managers (Chapter Outline: Section II) 1. 2. 3. 4. 5.

Society is functionally dependent upon organizations and organizations, in turn, are dependent upon managers. Organizations require two or more people to exist. Most organizations have some form of management and leadership. Each organization requires a purpose for its existence. Goals, objectives, and values are meaningful to both individual employees and organizations.



B.

Organizational Need for Managers (Chapter Outline: Section III) 1. 2. 3. 4. 5. 6. 7.

II.

THE MANAGER’S UNIVERSE (CHAPTER OUTLINE: SECTION IV)

A.

Big Picture 1. 2. 3. 4.

B.

The primary functions of management are planning, organizing, staffing, leading, and controlling. Managers accomplish work/tasks through people. The working day of many managers is diverse and extremely complex. Management is an attempt to accomplish pre-set goals and objectives by using both human and non-human resources.

Need to: 1. 2. 3. 4. 5.

III.

Managers exist in private, public, for-profit, and not-for-profit organizations. Very few organizations exist without managers. The study of management involves many academic disciplines. Obviously, managers provide the coordinating element for organizations. Managers can be the owners/operators/founders of organizations. Managerial decisions commit the courses of action for organizations. The study of management is a body of both practical and theoretical knowledge and understanding, as well as application. Managers help address, resolve, and control conflict and disorder within organizations.

Please customers Provide leadership Act ethically Value diversity Cope with global challenges

LEVELS OF MANAGEMENT (CHAPTER OUTLINE: SECTION V) A.

Who Reports to Whom...and Why! 1. Managers are identified by level of hierarchy and area of responsibility. 2. The levels of management include top, middle, and first-line (operating). 3. Chief executive officers, presidents, and vice presidents make up the highest level of managers. 4. Middle managers range from below the rank of vice president but above the supervisory level. 5. First-line management is also called supervisory and operating management. 6. Managers’ titles depend upon the organization and the work being performed. 7. Organizational titles and positions vary among organizations. 8. Top-level managers create and set overall policy. 9. Middle managers implement policies from top management.



10. First-line managers perform nonmanagement employees. B.

operational

duties

and

preside

over

Functional Managers 1. Managers are identified by the type of work, activity, or function of responsibilities, as well as the authority of their position. 2. Various functional areas include but are not limited to marketing, operations, finance, and human resources.

Enrichment Vignette

What are the rewards that go with the management job? Depending on the size of the company and the area of specialty the cash compensation picture is intriguing. Chief Executive Officer: 1. Annual revenues under $25 million—an average of $202,900. 2. Annual revenues between $1 billion and $2 billion—an average of $616,000. Chief Operating Officer: 1. Annual revenues under $25 million—an average of $141,300. 2. Annual revenues of $100 million to $200 million—an average of $198,500. 3. Annual revenues of $1 billion to $2 billion—an average of $434,200. Chief Financial Officer: 1. Annual revenues under $25 million—an average of $91,700. 2. Annual revenues of $100 million to $200 million—an average of $122,100. 3. Annual revenues of $1 billion to $2 billion—an average of $256,000.

IV.

MANAGEMENT FUNCTIONS (CHAPTER OUTLINE: SECTION VI) A.

Planning 1. 2. 3. 4. 5. 6.

B.

Organizing 1. 2. 3.

C.

Management functions can be inseparable, simultaneous, continuous, and interactive in the daily work of managers. Planning is the creation of future courses of action. Planning is the first function and is the catalyst to all other functions. Planning is a mental activity. Planning means to think, think, think... Planning asks, “What do we intend to do?” Planning creates objectives for organizational accomplishments.

Organizing follows planning. Organizing is a composite of the structural issues of an organization. Assigning work and granting authority are important elements of organizing.

Staffing



1. 2. D.

Activities include recruiting, selecting, training, and developing employees.

Leading 1. 2. 3. 4.

E.

Staffing comprises the “people” or personnel aspects of an organization.

Leading is very similar to directing. Motivation, communication, guiding, and encouraging involve leading. Leading can include the attempt to satisfy needs and meet expectations of employees. Leading is also similar to coaching, assisting, and helping.

Controlling 1. 2. 3. 4.

Controlling is a follow-up of plans, activities, or functions. Controlling ensures that goals and objectives are met. Controlling asks the question: “Are we doing what we intended to accomplish?” Controlling “finalizes” many other functions. All other functions precede controlling.

Enrichment Vignette

Management functions can be useful when driving to a distant location with friends. It can help to plan: know the destination (goal) and the best route to get there. The plan may include when one should be at the various points along the route. You may wish to organize and staff: get everything together for the trip and determine who will be driving and who will keep track of the map. It will be important to have controls: watch the highway signs and compare where the group is while driving toward the destination versus where the group should have been at some point in time according to what had been planned. Leadership may be required to keep people motivated and working together in order to have a successful trip. V.

FUNCTIONS AND THE LEVELS OF MANAGEMENT (CHAPTER OUTLINE: SECTION VII) 1. 2. 3. 4. 5. 6.

All managers perform all functions. Managers at various levels devote different proportions of time to different functions. Top management oversees the total picture of the organization. Middle managers develop strategies to accommodate the broad strategies of top management. First-line managers perform supervisory or operational activities. The time dimension for managerial activities ranges gradually from long-term for top-level managers to immediate attention or focus for first-line supervisors.



Enrichment Vignette

According to Thomas R. Horton, previous chairman of the American Management Association and co-author of Beyond The Trust Gap, the essence of management can be boiled down to the following: People. Since success depends so much on others, it is wise for a manager to surround himself or herself with able people. Judgment. Because management is more about people than anything else, judgments must be made about them. But don’t rush the judgment. Decision making. Many managers err by making decisions too quickly. Decisions should be made when necessary, but the best decisions are often made later rather than earlier, and by those best equipped to make them. Experience. Be suspicious of your own experience. A situation that may appear similar to an event in one’s earlier career can trigger a knee -jerk response that may be entirely inappropriate for the occasion at hand. Culture. The work climate of any unit is determined, for good or bad, by the work habits of that unit’s manager. Over time, a culture is created by the behavior of the manager or leader. Preparedness. Some people create their own luck by being prepared. Many who are unlucky turn out not to have had the will to be prepared, do their homework, visualize events as they are likely to play out, develop plans and alternatives, or work toward creating their own futures. Persistence. People from all parts of the business must be persuaded that the goals you seek to achieve are worth their effort. The essential ingredient in is not genius, but tenacity.

VI.

MANAGEMENT ROLES (CHAPTER OUTLINE: SECTION VIII) A.

Interpersonal Roles 1. 2. 3. 4. 5. 6.

B.

Managerial roles are actually expectations of managers by others. These roles are divided into specific categories of expected behavior. Roles are extensions of others’ values and anticipations. Interpersonal roles stem from position and authority. Managers play out various roles on a daily basis. Managers must “wear different hats” in order to carry out their various roles.

Informational Roles 1. 2.

The informational category of roles deals with managerial information and dissemination of that information. Informational roles are monitor, disseminator, and spokesperson.



C.

Decisional Roles 1. 2. 3. 4.

D.

Roles and Managerial Functions 1.

E.

Managers make choices. Managerial choices are made alone or with others. Managers also influence the choices of others. The activities of problem solving and decision making are inherent in some roles.

Roles and functions are interdependent aspects of managers.

Roles and Expectations of Others 1.

Various role expectations of managers vary among different people within an organization.

VII. MANAGEMENT SKILLS (CHAPTER OUTLINE: SECTION IX) A.

Technical Skills 1. 2. 3.

B.

Human Skills 1. 2. 3.

C.

D.

In order to carry out various functions managers must possess specific skills, talents, and abilities. Skills are the abilities to use processes, practices, techniques, and tools of a specialty area. Technical skills require a specific expertise.

This area is also referred to as human relations. Interaction and communication are primary to successful human skills. An understanding of psychology as well as a wealth of social understanding is necessary to the success of human interaction.

Conceptual Skills 1.

The ability to see the “entire” organization or the “big picture” is necessary for

2. 3.

conceptual understanding. Imagination, creativity, and coordination are attributes of conceptual ability. Conceptual skills are the mental capacity to identify problems, develop alternatives, select appropriately, and implement solutions.

Skills and Levels of Management 1. 2. 3.

Conceptual skills dominate top management. Technical skills are proportionately more important to first-level managers. As with functions, various skills are proportionately different to various levels of management.



VIII. MANAGEMENT MYTHS AND REALITIES (CHAPTER OUTLINE: SECTION X) 1. 2. 3.

There are many public or common misconceptions regarding management. Many realities of management are opposed to common management myths. At this juncture, a class discussion of misconceptions would be useful. Discussions should include both myths and realities. Examples: a. All managers are paid well. b. Managers do not work as hard or as long as employees do each day. c. All managers are well-educated. d. Managers should be in charge.

VIIII. EVALUATION OF A MANAGER’S PERFORMANCE (CHAPTER OUTLINE: SECTION XI) A.

Many Factors Are Involved 1. 2. 3. 4. 5. 6. 7. 8.

Do they carry out their roles effectively? Are their skills applied properly? Are they effectively setting and accomplishing their goals? Are their talents and resources used efficiently? Do they demonstrate leadership? Are they ethical by practice? Do they make use of the diversity in their people? Do they please customers?

SUGGESTED RESPONSES TO REVIEW QUESTIONS

How do managers assist an organization to achieve its goals and objectives?

1.

In an organization it is quite possible that employees perform parts of jobs that each thought were important to meet the objectives, while in actuality they were working in opposite directions. To prevent this from occurring and to ensure coordination of work to accomplish the objectives, managers are needed. The manager is the person in an organization who gives it direction, makes decisions, and commits its resources (personnel, capital, and equipment) to achieve the organization’s objectives. 2.

What factors make the manager’s universe complex?

The world of work is a complex arena of exacting, precise, exciting, and pressurefilled elements. Dull managerial moments seldom exist. Staying ahead of this complexity is an ongoing requirement. The world is becoming more complex. Limited resources place heavy demands upon managers. Unpredictable challenges are as prevalent as known certainties. 3.

Where are managers located within an organization’s management hierarchy? How are the different levels similar? How are they different? a.

Managers can be divided into three basic categories: top management, middle management, and first-line or supervisory management.



b. c. d.

4.

What activities do all managers perform regularly? Which of these activities are called the “first” function? Why? a. b. c.

d. e. f.

5.

Top management is responsible for the overall management of the organization. It establishes organizational or company-wide objectives or goals and operating policies, and it directs the company in relationships with its external environment. Middle managers are all managers below the rank of vice president but above supervisory level. Their subordinates are other managers. They are responsible for implementing top management objectives and policies. First-line managers or supervisors, those at the operating level, are the lowest level of management. They are responsible for the management of their specific work groups and for the accomplishment of the actual work of the organization. Their subordinates are nonmanagement workers or operating employees.

Planning identifies the goals and alternatives. It maps out courses of action for the organization and is known as the “first” management function. Organizing is concerned with (1) assembling the resources necessary to achieve the organization’s objective, (2) establishing the activity -authority relationship of the organization, and (3) establishing the structure of the company. Staffing is concerned with locating prospective employees to fill the jobs created by the organizing process. Staffing involves matching job demands with applicant abilities, orienting new employees, training and developing, appraising performance, and determining the proper pay and benefits. Leading is aimed at getting the members of the organization to move in the direction that will achieve its objectives. Leading involves motivation. Controlling deals with establishing standards for performance, measuring performances against standards, and dealing with deviations fr om standards. Planning is considered the first function because it lays the groundwork for all the other functions. It identifies the goals and alternatives. It maps out the course of action that will commit individuals, departments, and the entire organization for days, months, and years to come. Planning achieves these ends after setting in motion the following processes: (1) determination of what resources will be needed, (2) identification of the number and types of personnel the organization will need, (3) development of the foundation for the organizational environment in which work is to be accomplished, and (4) determination of a standard against which the progress toward objectives can be measured so that corrections can be made, if necessary.

How do the functions in question 4 apply to the three levels of management found in most organizations? In what ways is the execution of controlling activities similar on each of the three levels of management? How is it different? a.

b.

Regardless of title, position, or management level, all managers do the same job. They all execute the five management functions and work through and with others to set and achieve organizational goals. Although all managers perform the same functions, the various management levels (top, middle, or first-line) require different amounts of time for each function, and the points of emphasis in each function will differ. The planning function for top management consists of developing the major



c.

d. e.

6.

For the first-line manager, planning involves scheduling employees, deciding what work will be done first, and developing procedures to achieve goals. On the other hand, but in a similar fashion, the function of controlling is merely the reciprocal activity for each of the three levels of management. All managers control—they merely control different aspects of the organization.

What is a management role? Do all managers perform the same roles? Why or why not? a. b. c. d. e. f.

7.

purpose of the organization, the global objectives for organizational accomplishment, and the major policy statements for implementation by middle and first-line managers. For middle management, planning involves developing implementation strategies for the broad concepts developed by top management. Middle managers translate an organizational goal into concrete goals of their own in order to achieve the broader goals.

A role is any one of several behaviors a manager displays as he or she functions in the organization. As a manager attempts to perform the management job, he or she must “wear different hats” in interactions with organizational members. The entrepreneur role is performed by the manager when initiating activities that will allow, and encourage, the work unit to use ideas or methods most advantageously. The disturbance handler role requires the manager to resolve crises. The resource allocator role is performed by the manager when determining whom in the work unit gets the resources, and how much each person gets. The negotiator role is performed with external suppliers and internal organizational members when trading resources. All roles may or may not be performed by managers at various times.

What management skills are most essential for a CEO? Why? required to about the same degree by all managers? Why? a. b. c.

d.

What skills are

Technical skills are the knowledge of, and ability to use, the processes, practices, techniques, or tools of a specialty area. Human skills are the ability to interact with other persons successfully. Conceptual skills are the ability to view the organization as a whole and to see how the parts of the organization relate to and depend on one another. Conceptual skills include the ability to imagine the integration/coordination of the organizational parts. The importance of having these three skills depends on a manager’s level of management in the organization. Technical skill is most important for a manager at the first-line management level and becomes less important as the manager moves up in the organization. The need to be able to understand and work with people is important at all levels, but the first-line manager position places a premium on human skill requirements because of the great number of employee interactions required. Conceptual skills become increasingly important as a manager moves up the levels of management. Top management is concerned with broad-based, long-range decisions that affect the entire organization;



therefore, conceptual skill is most important at that level. 8.

Why do people hold the different myths mentioned in this chapter? How do you think people create these myths? a. b.

9.

Student responses will vary greatly. Also, their perceptions should be supported. Attempt to allow students to uncover, realize, and understand their own beliefs as well as develop an awareness to the “truth” of daily management realities.

If you were a CEO of a small company, what criteria would you use to evaluate your managers’ performances? Which criterion do you believe is most essential? Why? a. b.

Again, student responses will vary greatly. These answers are individualized. Ensure that students rationally justify their choices and comments.

INSTRUCTIONAL EXPLANATION: DISCUSSION QUESTIONS FOR CRITICAL THINKING

These thought-provoking questions are provided by the authors for each chapter as primers for student discussion. This method of questioning ensures that the students have read the assigned materials or content. These questions are presented to generate thinking and discussion. They can be used as supplemental homework assignments and/or class discussions that center around specific critical thinking issues and applications. It is important that students are able to respond from their experiences and through their perceptions as well as incorporate the specific course content into their reasoning, explanations, descriptions, and individualized contributions. Most of these questions cannot be answered in a right/wrong fashion. Instead, student responses and/or group discussions should be encouraged by the instructor to bring out individualized critical thinking as opposed to absolute correct answers. Web 2.0 EXERCISES Corporate Blogs

A corporate blog is published and used by an organization to reach its organizational goals. The advantage of blogs is that posts and comments are easy to reach and follow due to centralized hosting and generally structured conversation threads. 1. Identify one of your favorite products. (For example, you might choose Nike athletic shoes.) 2. Identify the company’s blog. (For example, search for “Nike blog.”) 3. What is the name of the blog? 4. What is the address? 5. Note whether or not the blog allows customer interaction. 6. Who writes the blog? 7. What have you learned from visiting this blog? 8. How does this blog inform your thinking about management? Student’s answers will vary. The answers should demonstrate a strong knowledge of the chapters’ main objectives as they apply to the student’s blog. C lass discussion may be



helpful in eliciting creative responses.

SUGGESTED RESPONSES TO EXPERIENTIAL LEARNING CASE: GREAT MANAGERS

Interview a full time employee. Identify the organization, the job title of the employee, and the job title of the employee’s manager. Ask the employee the questions in the list that follows. After the interview report your findings. Does this employee have a great manager? If not, what would you recommend the manager change? 1. Do you know what is expected of you at work? 2. Do you have the materials and equipment you need to do your work correctly? 3. At work, do you have the opportunity to do what you do best every day? 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seem to care about you as a person? 6. Is there someone at work who encourages your development? 7. At work, do your opinions seem to count? 8. Does the emission/purpose of your company make you f eel your job is important? 9. Are your associates (fellow employees) committed to doing quality work? 10. Do you have a best friend at work? 11. In the last six months, has someone at work talked to you about your progress? 12. In the last year, have you had opportunities at work to learn and grow? The student answers to these questions will vary greatly. Similar to the critical thinking questions provided throughout the text, these questions allow students the opportunity to think in a broad, creative sense with many variables or choices for response. It is important that the instructor encourage the students to “back up” or support their answers with specific subject content from the text as well as provide a rational/logical approach to their comments.

ADDITIONAL CASE PROBLEMS WITH SUGGESTED ANSWERS

Shake Up at SafeCard Services In the early 1990s, Florida-based SafeCard Services specialized in offering loss-notification services for credit-card holders. When a client’s credit card was lost or stolen, SafeCard notified the issuing company. SafeCard was doing fine until 1993 when it began losing business to more nimble and aggressive competitors. SafeCard’s sales performance fell as competitors developed better products and additional services. SafeCard’s management had concentrated on controlling costs and had delayed the creation and introduction of new products. Its records were recorded on microfilm rather than in computer data banks. To boost the company’s growth, the board of directors recruited Paul Kahn, a financial services expert and now chairman, to become its new CEO. He “had hoisted AT&T into the big time in the U.S. credit-card industry, creating a $1.4 billion business with 16 million cardholders (AT&T’s Universal MasterCard)” (Fins and Tanner, 1995). After spending a few weeks © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


observing, talking, and analyzing, Kahn took the following actions: A number of top-level executives who had resisted the changes designed by Kahn were dismissed and replaced with experienced people from some top credit-card companies including American Express, AT&T Universal, and MasterCard. New products and business partnerships were unveiled such as a co-branded credit card with the Professional Golf Association. The “Partners card lures golfers with Pro Am clinics and tournaments.” A program of acquisitions was launched bringing in such operations as Wright Express (a credit-card service for trucking fleet owners) and the National Leisure Group (a company specializing in packaged tours). The company’s extensive customer data was computerized and the company was renamed the Ideon Group. Kahn instituted open forums to be held every 90 days, regular breakfast and luncheon meetings, and a daily newsletter. Kahn uses these to announce new products, keep people informed about changes, and allow employees to raise any concerns they might have. Employees soon found that they could raise any issue and get an honest answer from both Kahn and his team. 







A gain-sharing program was developed by Kahn to enlist the talents of all employees. Any employee making a suggestion that saves or makes money for the company shares in the results. Top performers are now recognized and rewarded as well. The insecurities created by Kahn’s changes have gradually been overcome, and the company has seen its profits reach a record high. QUESTIONS

1.

Which management functions did Kahn perform? Cite examples to support your answer. It should be readily apparent to students that most, if not all, functions were briefly alluded to in this case. Student answers will vary.

2.

What management roles did Kahn perform in the actions taken? Cite examples to support your answer. Student responses will vary. The important aspect of this discussion question centers around the point that students should envision that different situations dictate different management roles.

3.

Which management skills did Kahn rely on to manage the new environment? Cite examples to support your answer. Similar to question 2 above. Student perceptions and interpretations of various skills and the application of these skills must be guided through discussion by the instructor.

4.

How did Kahn exercise leadership? Give examples to support your answer. Again, the instructor should encourage various student input as well as supporting examples for their replies.



THE DIRECTOR’S DILEMMA

Arlene Maxwell is proud to be a middle manager. She has earned her promotions with hard work and has proved her ability to master the technical problems in her specialty area, data processing. After receiving her bachelor’s degree in data processing at the s tate university, she went to work programming in the field of financial and investment problems. Within two years she became the recognized “genius” of her specialty and was promoted to supervisor of her section. Three years later, when data and word processing functions were merged, she became her company’s director of information and data services. That was three months ago. Arlene has stayed current in her field through regular reading of journals and trade papers, through memberships in professional organizations and regular participation in their seminars, and by being directly involved in data and word processing. Arlene puts it this way: I like to write programs as often as I can. Each new problem our department gets is really a test of our problem-solving abilities. Tackling a problem by myself now and then helps to keep the old skills from getting rusty. I can still teach the younger programmers a thing or two. Nothing matches hands-on experience. Arlene prides herself on her open-door policy and her eagerness to help her people perform their tasks. But lately she has become concerned. Her people don’t come around as much as they used to, and her department is falling behind in its ability to deliver work on time. QUESTIONS

1.

Which of the three management skills does Arlene seem to possess? The three skills referred to are technical, conceptual, and human. Of these, Arlene Maxwell seems to be strongest in the technical area, being the recognized genius of her specialty. Her technical expertise has led to her promotions. Arlene probably possesses an adequate degree of conceptual skill (for her middlemanagement positions), because she sits in a job in which she must oversee the execution of work for the entire organization—work executed by word processors and data processors. This fact alone will force Arlene to become familiar with the entire organization’s many parts as she executes work to support each of them. Through time, Arlene will (if she has not already) increase her conceptual and technical skills through on-the-job experiences and the daily interactions with managers from all parts of the company. Which skills does she lack? If Arlene lacks sufficiency in management skills, it is probably in the category of human skills. Until her promotion, Arlene did not need a high degree of human skills. She has demonstrated technical expertise that has accounted for high performance appraisals and her promotions. Arlene fails to realize that her duties have changed. Her tasks now will rely increasingly on her ability to get the best from her subordinate managers. She must foster in them the same high degree of skill that she possesses. Her attention to details needs to be focused on the details of getting people to work together and to do the best that they can. She will be a resource person, not a doer of



data or word processing tasks. She needs to let her people perform on their own, demonstrating their abilities and enjoying a sense of competence so important to skilled workers and supervisors. 2.

As a middle manager, which basic skills does Arlene need most? All three skills are needed but the emphasis will be on the human skills—the ability to interact with other persons successfully. She must be able to work with and relate to others individually and in groups in order to build teamwork. With regard to the five functions of a manager, leading becomes the most important from the point of view of time spent. Leading involves both human and technical skills. More time will now be spent on planning, organizing, and staffing.

3.

Of the management roles discussed in the chapter, which does Arlene seem to favor? Arlene seems to favor the leadership, monitor, and entrepreneur roles. While she likes to continue in the role of programmer that accounted for her past reputation and promotions, she can show her subordinates a thing or two and, by staying current, she can pass along the new techniques. But by doing so to an extreme, she may rob her subordinate managers of initiative and enthusiasm. She may be neglecting the word processing part of their job at the expense of her many company clients. Her overconcern with hands-on tasks for herself undercuts her supervisors’ authority to manage. By working directly with their subordinates, Arlene is acting in their stead. Her involvement in day-to-day data processing may also be at the expense of her management activities such as planning for the future. Middle managers must develop implementation strategies for the broad concepts determined by their superiors. While staying abreast of the new, middle managers decide what needs doing and how to do it. The details must be worked out by subordinate managers. Middle managers must be able to provide leadership and support for lower management, not usurp their day-to-day management duties. Arlene should work with and through her subordinate managers, not around them.

ON THE JOB Video Case Solutions: Flight 001-Planning and Goal Setting Discussion Questions and Suggested Answers:

1.

If you were a consultant to Flight 001, what would you suggest be done to assure that this continues to occur? Since the “school of hard knocks” can sometimes be very expensive, what else might be done to help managers become more effective?

2.

How would you respond to the star worker in such a case?

3.

Do you think that business students should serve as management interns for at least one academic term during college so that they could observe business first © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


hand from the manager’s perspective bef ore graduating and becoming an actual

manager? Student answers will vary. TEAM ACTIVITY

Form the class into several teams. Assign a destination to each team. For example, a motor trip to Mexico City, a trip to the capitol of Tibet, or other destinations as desired. Have each team develop a plan (showing what will be required—visas, shots, costs, routes, what they may need to have with them or to avoid having with them, etc.), show how they will organize themselves to carry out the plan, and what controls will be used to ensure that the plan is successful. Since this will require some research, one of the first things each team must do is to organize and staff so that each person will know what that person must do—research certain information, develop a report and visual aids, present the report, etc. Point out that the team must work together so that if something undesirable happens (such as the person who is to give the report on a given day becomes ill) the team will still be able to present its report when it is due. BIZ FLIX VIDEO CASE Video Case: In

Good Company

Video Case Synopsis

A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age. Carter Duryea (Topher Grace), Dan’s new boss, wa nts to prove his worth as the new marketing chief at Sports America, Waterman Publishing’s flagship magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett Johansson). This sequence starts with Carter Duryea entering Dan Foreman’s office. It follows Foreman’s reaction toward the end of a speech given by Teddy K. (Malcolm McDowell), Globecom CEO. Carter Duryea enters while saying, “Oh, my God, Dan. Oh, my God.” Mark Steckle (Clark Gregg) soon follows. The sequence ends with Carter asking, “Any ideas?” Dan Foreman says, “One.” Video Case Discussion Questions and Suggested Answers

How well does Mark Steckle seem to be performing the various management roles described in the chapter? Give examples from the scene to support your answer. Mark does not appear to be performing his interpersonal roles very well at all. As a leader, he is not creating a positive environment, he is not helping to improve his employees’ performance, and he is generating conflict, not resolving it. He is also not performing aspects of the decisional roles well. For example, he is flustered and upset with both the disturbance he is trying to handle and the impromptu negotiation with Carter. Finally, at the end of the scene, Carter hints that there is an important deal that’s about to take place that Mark hasn’t heard about yet. As the monitor of information, Mark should know about all prospective deals. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


The sequence shows three people who represent different hierarchical levels in the company. Which hierarchical levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? Students can assume Mark Steckle holds a mid-level manag ement position because a) he references his own boss (Teddy K.) and b) Carter Duryea reports to him. Dan Foreman has a non-management position and reports to Duryea, so Duryea would best be described as a firstline manager. Graphically you can think of these relationships as: Steckle  Duryea  Foreman. Critique the behavior shown in the sequence. What are the positive and negative aspects of the behavior shown? From the clip, students should assume that Mark has not given either Carter or Dan any notice of poor performance before he announces he is firing either of them, which would be considered very poor human resource management behavior. He is failing to control his emotions, and he allows his own fears and pressures to influence his actions, yet he does listen to Carter’s proposal. You can extend the discussion of the scene to consider the ethics and fairness of Mark’s actions.


Plunkett 10 Ch 01

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