CHAPTER 1 Understanding the Manager’s Job môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

CHAPTER 1
Understanding the Manager’s Job
1-1 AN INTRODUCTION TO MANAGEMENT
-An organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals
+ Including: profit (Netflix, Starbucks, and Facebook), the discovery of knowledge (the University of
Nebraska or the National Science Foundation), national defense (the U.S. Navy or Marines), the
coordination of various local charities (the United Way of America), or social satisfaction (a fraternity or sorority).
+For example, Apple's organizational structure is designed to foster collaboration and
innovation. The company is organized around functional areas of expertise, such as hardware
engineering, software engineering, and marketing. This structure allows employees with deep
knowledge in their respective fields to work together to develop and launch new products.When
Apple was developing the iPhone, engineers from the hardware and software teams worked
closely together to ensure that the phone's hardware and software were compatible and well- integrated.
-Management can be defined as a set of activities (including planning and decision making,
organizing, leading, and controlling) directed at an organization’s resources (human, financial,
physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.
-Managers are responsible for using the organization’s resources to help achieve its goals.
-MANAGERS: Someone whose primary responsibility is to carry out the management process.
The role of a manager is to carry out organizational goals in an efficient and effective manner.
+Efficient: Using resources wisely in a cost-effective way
+Effective: Making the right decisions and successfully implementing them 1-1a KINDS OF MANAGERS 1. Top managers:
- Top managers make up the relatively small group of executives who manage the overall organization
- Create the organization’s goals, overall strategy, and operating policies
For example, Tim Cook (CEO of Apple).
oTitles found in this group include president, vice president (VP), and chief executive officer (CEO).
oTop managers make decisions about activities such as acquiring other companies,
investing in R&D, entering or abandoning various markets, and building new plants and office facilities.
oTop managers are responsible for creating the organization’s goals, overall
strategy, and operating policies. They also officially represent the organization to
the external environment by meeting with government officials, executives of
other organizations, and so forth. 2. Middle managers:
-Middle management is probably the largest group of managers in most organizations
oCommon middle-management titles include plant manager, operations manager, and division head.
oImplement the policies and plans developed by top managers
o Supervise and coordinate the activities of lower-level managers
For example, Aaron Abbott, a regional manager of Apple responsible for the firm’s operations in Canada, is a middle manager. 3. First-line managers: -
Supervise and coordinate the activities of operating employees
o Common titles for first-line managers are supervisor, coordinator, and office manager.
oPositions like these are often the first held by employees who enter management
from the ranks of operating personnel.
oIn contrast to top and middle managers, first-line managers typically spend a large
proportion of their time supervising the work of their subordinates.
For example, Apple Store Manager is responsible for managing a sales team at the store. They
must organize and assign tasks to sales staff, making sure everyone understands the product and
is able to advise customers professionally. BASIC MANAGEMENT FUNCTIONS 1. Planning:
Setting an organization’s goals and deciding how best to achieve them Decision Making: -
Part of the planning process that involves selecting a course of action from a set of alternatives
Planning and decision-making help managers maintain their effectiveness by
serving as guides for their future activities. In other words, the organization’s
goals and plans clearly help managers know how to allocate their time and resources.
It is important for top management because:are best aware of environmental
conditions facing their organization and are able to effectively analyze and
predict future conditions. It also requires that managers should be good decision makers.
For example, Apple brand is known for its meticulous planning and execution, which is evident in its
annual product planning process.Once the product targets are set, a cross-functional team of engineers,
designers, marketers, and supply chain experts is assembled to develop detailed plans for each product.
This rigorous planning process helps Apple to ensure that its products are well-designed, well-made, and
meet the needs of its customers. It also helps the company to avoid delays and cost overruns. 2. Organization -
Determining how activities and resources are to be grouped.
It means that when a manager has set goals and developed a workable plan, his or
her next management function is to organize people and the other resources
necessary to carry out the plan to maximize returns with minimum expenditure.
Organizing may be referred to as the process of assigning jobs/tasks, arranging
9orders/ priorities, assembling resources, and allocating resources.
It is crucial for middle-management because it allows them to effectively plan,
coordinate, and control the work of their teams. This is essential for achieving
organizational goals and objectives.
For example, Apple's organizational structure is designed to foster collaboration and innovation. The
company is organized around functional areas of expertise, such as hardware engineering, software
engineering, and marketing. This structure allows employees with deep knowledge in their respective
fields to work together to develop and launch new products.When Apple was developing the iPhone,
engineers from the hardware and software teams worked closely together to ensure that the phone's
hardware and software were compatible and well-integrated. 3. Leading -
The set of processes used to get members of the organization to work together to further the
interests of the organization.
Leading entails directing, influencing, and motivating employees to perform
essential tasks through motivation to progressively attain organizational objectives.
It becomes important for leadership to create harmony among individual efforts
to collectively work towards organizational goals.
It is essential for both middle and first-line management because it can lead to
increased productivity, improved morale, and increase revenue and allow them to
create high-performing teams that contribute to the overall success of the organization.
For example, one of the most important aspects of Apple's leadership is its focus on employee
empowerment. Apple leaders believe that the best way to get things done is to give employees the
autonomy and resources (skills and knowledge) they need to be successful in their roles which allows
them to be more creative and innovative. Thus, Apple has continued to grow and innovate, and the
company is well-positioned for continued success in the future. 4. Controlling -
Monitoring organizational progress toward goal attainment.
Measuring performance against goals and plans (Managers must monitor
progress to ensure that it is performing in such a way as to arrive at its
“destination” at the appointed time.) Comparing results and goals
Helping correct deviations from standards. -
Controlling is crucial for first-line management because it ensures that:
Work is completed on time and to a high standard.
Resources are used efficiently.
Problems are identified and resolved quickly. Without effective control, teams
can become inefficient, unproductive, and disengaged.
For example, Apple, a large multinational technology company: To maintain a high level of customer
satisfaction with its products and services, Apple collects feedback from customers through surveys,
focus groups, and social media monitoring and follows customer satisfaction data to identify areas for
improvement. Additionally, Apple provides training and support to its employees to ensure that they are
providing excellent customer service which can lead to increased customer loyalty and sales.
1-1b MANAGING IN DIFFERENT AREAS OF THE ORGANIZATIONS
-Marketing Managers: Areas related to getting people to buy products or services
+ (be they Samsung smartphones, Subaru automobiles, Entertainment Weekly magazines, Associated
Press news reports, streaming video rentals from Netflix or Disney+, or lattes at Starbucks).
+ These areas include new product development, promotion, and distribution. Given the importance of
marketing for virtually all organizations, developing good managers in this area is critical.
-Financial managers: Areas related to financial resources; accounting, cash management, and investments
+In some businesses, especially banking and insurance, financial managers are found in large number
-Operations managers: Creating and managing the systems that creates products or services
+Typical responsibilities of operations managers include production control, inventory control, quality
control, plant layout, and site selection -
Human resource managers: Hiring and developing employees, recruiting, training and
development, compensation and benefit systems, formulating performance appraisal systems, and
discharging low-performing and problem employee
-Administrative managers: Generalist that have basic familiarity with all functional areas of management -
Specialist managers: Public relations, R&D, and other unique area
+ Public relations managers, for example, deal with the public and media for firms such as Facebook,
Instagram, and Unilever to protect and enhance the image of their organizations. R&D managers
coordinate the activities of scientists and engineers working on scientific projects in organizations such as
Google, Shell Oil, and NASA. Internal consultants are used in organizations such as Prudential Insurance
to provide specialized expert advice to operating managers. International operations are often coordinated
by specialized managers in organizations like Walmart and General Electric. The number, nature, and
importance of these specialized managers vary tremendously from one organization to another. As
contemporary organizations continue to grow in complexity and size, the number and importance of such
managers are also likely to increase. Our Tech Watch feature highlights one newly emerging management
position, the social media manager. FUNDAMENTAL MANAGEMENT SKILLS 1.Technical Skills
-Technical skills are necessary to accomplish or understand the specific kind of work done
in an organization.These managers spend much of their time training their subordinates
and answering questions about work-related problems. Effective managers know how to
perform the tasks assigned to those they supervise.
-Technical skills are especially important for first-line managers
Allowing managers to make decision allocation resources more effectively (manpower, material)
Saving time and improving work productivity: help accomplish the jobs
faster and more effectively and efficiently.
For example, Amazon is an e-commerce company that uses technical skills to provide customers
with a convenient online shopping experience. The company uses technical skills to develop
Amazon websites and applications, analyze procurement data and produce appropriate products
and automation skills to automate business processes. 2.Interpersonal Skills
- Interpersonal skills—the ability to communicate with, understand, and motivate both
individuals and groups.This is a necessary skill for all levels of management and individuals.
Managers spend considerable time interacting with people both inside and outside the organization.
As a manager climbs the organizational ladder, he or she must be able to
get along with subordinates, peers, and those at higher levels of the
organization.(To lead a team, you'll need to earn the respect of your
colleagues. To do this, you need to know how to effectively deal with people.)
Because of the multitude of roles that managers must fulfill, a manager
must also be able to work with suppliers, customers, investors, and others outside the organization.
-Microsoft: is a technology company that uses interpersonal communication skills to
develop technology solutions that help people connect with each other. The company
uses interpersonal communication skills such as:
Relationship building skills: to build relationships with customers and partners.
Customer service skills: to provide excellent customer service.
=>Thanks to these interpersonal communication skills, Microsoft has become one
of the world's leading technology companies. 3.Conceptual Skills
- Conceptual skills depend on the manager’s ability to think in the abstract. This skills are
especially important for top managers because:
Managers need the mental capacity to understand the overall workings of
the organization and its environment, to grasp how all the parts of the
organization fit together, and to view the organization in a holistic manner.
=>This ability allows them to think strategically, to see the “big picture,”
and to make broad-based decisions that serve the overall organization.
For example, Tesla is an electric car company that uses conceptual skills to develop advanced
electric cars. The company uses conceptual skills such as:
Foresight: to envision the future of transportation.
Ability to innovate: to create new and groundbreaking products.
Leadership: to inspire others to pursue your vision.
=>Thanks to these conceptual skills, Tesla has become one of the world's leading electric car companies. 4,Diagnostic Skills
-Successful managers also possess diagnostic skills that enable them to visualize the most
appropriate response to a situation.
A manager can diagnose and analyze a problem in the organization by
studying its symptoms and then developing a solution.
-A good example of the successful use of diagnostic skills in a company is the story of
Jeff Bezos, founder and CEO of Amazon. In 2000, Amazon encountered a business
downturn. Bezos used his diagnostic skills to determine that the cause of the recession
was increased competition from competitors. Thanks to Bezos' discovery, Amazon made
strategic changes to deal with competition, and the company successfully recovered. 5.Communication Skills
- Communication skills refer to the manager's abilities to both effectively convey ideas
and information to others and effectively receive ideas and information from others.
These skills enable a manager to transmit ideas to subordinates so that
they know what is expected, to coordinate work with peers and colleagues
so that they work well together, and to keep higher-level managers
informed about what is going on.
Communication skills help the manager listen to what others say and to
understand the real meaning behind emails, texts, letters, reports, and other written communication.
For example, As a "giant" of the fast food market, McDonald's is one of the first brands to feel
the pressure of using plastic in the meals they provide. And the thing that is most condemned is
the straw. In 2018, after receiving more than half a million calls of criticism from consumers in
the UK, McDonald's decided to listen to customers and completely eliminate plastic straws.
6.Decision-Making Skills
- Decision-making skills refer to the manager’s ability to correctly recognize and define
problems and opportunities and to then select an appropriate course of action to solve
problems and capitalize on opportunities.
Effective managers also have good decision-making skills. No manager
makes the right decision all the time.However, effective managers make
good decisions most of the time. And, when they do make a bad decision,
they usually recognize their mistake quickly and then make good decisions
to recover with as little cost or damage to their organization as possible.
EX: Converse shoe company was one of the iconic American brands in the 1970s and 1980s, but
became outdated for many people in the following decades. Converse filed for bankruptcy in the
early 2000s. Thanks to the decision to cooperate with many famous designers like John
Varvatos. Currently, Converse has returned to being one of the popular sneaker brands in the US.
7.Time Management Skills
- Time management skills refer to the manager’s ability to prioritize work, to work
efficiently, and to delegate work appropriately.
EX: Amazon uses time management skills to ship goods quickly and efficiently. The company
has a complex logistics system, with millions of products stored in many different locations.
Amazon uses time management skills to ensure that goods are delivered to customers quickly and on time.