Understanding the Manager's Job PDF

CHAPTER 1 Understanding the Manager’s Job Sergii Tsololo/Photos.com...

CHAPTER 1 Understanding the Manager’s Job Sergii Tsololo/Photos.com Learning Outcomes After studying this chapter, you should be able to: 1 Define management, describe the kinds of managers found in organizations, identify and explain the four basic management functions, describe the fundamental management skills, and comment on management as a science and art. 2 Justify the importance of history and theory to managers, and explain the evolution of management thought through the classical, behavioral, and quantitative perspectives. 3 Identify and discuss key contemporary management perspectives represented by the systems and contingency perspectives, and identify the major challenges and opportunities faced by managers today. Management in Action Reed Hastings Doesn’t Like Standing Still “Don’t be afraid to change the model.” —Netflix CEO Reed Hastings Several years ago, Reed Hastings, a California entrepreneur between start-up ventures, incurred a $40 late fee at Blockbuster. “It was six weeks late,” he admits. “I had misplaced the cassette [and] I didn’t want to tell my wife.... I was embarrassed about it.” The next day he dropped off the VHS cassette and paid the late fee on his way to the gym. As it turns out, his itinerary for the day was quite opportune: In the middle of his workout, he recalls, “I realized [the gym] had a much better business model. You could pay $30 or $40 a month and work out as little or as much as you wanted.” Thus was born the idea for Netflix. But Hastings knew he needed to start slowly. So, when Netflix was launched in 1997, its only innovations involved the convenience of ordering movies over the Internet and receiving and returning them by mail; Netflix merely rented movies for $4 apiece plus $2 for postage (and, yes, it charged late fees). Basically, the customer base consisted of people who wanted to watch movies without having to leave the house. But Hastings and co-founder Marc Randolph then quickly decided to test a subscription-based model, unlimited rentals by mail for a flat fee and, perhaps most important, no due dates (and thus no late fees). Current customers were first offered the opportunity to shift from their pay-per-rental plans to subscription plans on a free, trial basis and then given the chance to renew the subscription plan on a paid basis. “We knew it wouldn’t be terrible,” says Hastings, “but we didn’t 1 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 2 Part 1: An Introduction to Management Mike Cassese/REUTERS Reed Hastings has used a variety of management techniques to build Netflix into an entertainment powerhouse. know if it would be great.” In the first month, however, 80 percent of Netflix users who’d tried the no-cost subscription plan had renewed on a paid basis. “Having unlimited due dates and no late fees,” said Hastings back in 2003, “has worked in a powerful way and now seems obvious, but at that time, we had no idea if customers would even build and use an online queue.” The “queue,” as any Netflix user will tell you, is the list of movies that the customer wants to watch. Netflix maintains your queue, follows your online directions in keeping it up to date, and automatically sends you the next movie you want each time you send one back. The essence of queuing—and of the Netflix business model—is clearly convenience. Although the ability to enhance customer convenience, even when combined with cost savings, often gives a company a competitive advantage in its industry, it doesn’t always have the industry-wide effect that it’s had in the case of Netflix. Not only did the Netflix subscriber model improve the service provided by the industry in an unexpected way, but ultimately it also weakened the competitive positions of companies already doing business in the industry— notably, Blockbuster. In late 2012, the onetime industry leader’s market capitalization, which had peaked at $5 billion in 2002, was languishing at $35 million. At the same time, Netflix’s market cap stood at nearly $10 billion and would top $15 billion by 2013. How had Hastings’s upstart company managed to put itself in such an enviable position? For one thing, it got off to a fast start. In 1997, when DVDs were just being test-marketed in the United States, Hastings and Randolph gambled that the new medium would eventually overtake videocassettes as the format of choice for both the home-movie industry and the home-movie renter. They were Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Chapter 1: Understanding the Manager’s Job 3 right, of course—by 2002, one in four U.S. households owned a DVD player, but the number today is close to nine in ten. (In any case, it would have cost about $4 to mail a videocassette both ways, compared to the $0 78 that it costs to ship a DVD back and forth.) More important, as the first company to rent movies by mail, Netflix was the first to establish a rental-by-mail customer base. At first, says Hastings, “people thought the idea was crazy. But it was precisely because it was a contrarian idea that [it] enabled us to get ahead of our competitors.” As Netflix has continued to expand and nurture its subscriber base, it’s also generated both brand recognition and brand loyalty. “Netflix has customer loyalty. It’s a passion brand,” explains Hastings, who hastens to add that keeping customers happy is crucial “because the more someone uses Netflix, the more likely they are to stay with us.” Netflix also puts a premium on hiring the very best people. Hastings hires bright people, pays them above-market wages, and provides innovative and interesting benefits. For instance, Netflix employees can take as much vacation time as they want so long as they perform their jobs at a high level. But at the same time, the firm has very high performance standards and employees sometimes complain about too much pressure. As Hastings says, “We treat our top performers very well. We provide average employees with reasonable severance package[s].” Today Netflix continues to be at the forefront of innovation and has established a strong position in the emerging video-on-demand market. In 2013, the company obtained exclusive rights to distribute the original series The House of Cards, Hemlock Grove, Orange Is the New Black, and the revival of Arrested Development. And each proved to be a big smash. All told, Netflix’s 36 million subscribers watch about 4 billion hours of programs every quarter on more than 1,000 different devices—indeed, on a normal evening Netflix accounts for over a third of all Internet usage in North America! Never one to stand still, Reed Hastings continues to look for the “next big thing.” Unlike most traditional managers, Hastings doesn’t have an office. He simply wanders around headquarters, talking to people about their work and their ideas, and occasionally grabbing an empty chair or desk to check his e-mail. When he needs solitude to think and ponder major decisions, he retreats to a rooftop “cube” with four glass walls overlooking the Santa Cruz mountains. And from that cube Hastings will continue to make the right moves.1 This book is about managers like Reed Hastings and the work they do. In this chapter, we examine the general nature of management, its dimensions, and its challenges. We explain the basic concepts of management and managers, discuss the management process, and summarize the origins of contemporary management thought. We conclude this chapter by introducing critical challenges and issues that managers are facing now and will continue to encounter in the future. organization A group of people working together in a AN INTRODUCTION TO MANAGEMENT structured and coordinated fashion An organization is a group of people working together in a structured and coordinated to achieve a set of fashion to achieve a set of goals, which may include profit (Netflix or Starbucks), the discov- goals ery of knowledge (the University of Nebraska or the National Science Foundation), national Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 4 Part 1: An Introduction to Management 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). Managers are responsible for using the organization’s resources to help achieve its management goals. More precisely, management can be defined as a set of activities (including plan- A set of activities ning and decision making, organizing, leading, and controlling) directed at an organiza- (including planning tion’s resources (human, financial, physical, and information), with the aim of achieving and decision making, organizational goals in an efficient and effective manner. A manager, then, is someone organizing, leading, whose primary responsibility is to carry out the management process. By efficient, we and controlling) mean using resources wisely, in a cost-effective way. By effective, we mean making the directed at an right decisions and successfully implementing them. In general, successful organizations organization’s resources (human, are both efficient and effective.2 financial, physical, Today’s managers face various interesting and challenging situations. The average and information), executive works 60 hours a week; has enormous demands placed on his or her time; with the aim of and faces increased complexities posed by globalization, domestic competition, govern- achieving ment regulation, shareholder pressure, emerging technologies, the rise of social media, organizational goals and other Internet-related uncertainties. Their job is complicated even more by rapid in an efficient and changes, unexpected disruptions, and both minor and major crises. The manager’s job effective manner is unpredictable and fraught with challenges, but it is also filled with opportunities manager to make a difference. Good managers can propel an organization into unprecedented Someone whose realms of success, whereas poor managers can devastate even the strongest of primary organizations.3 responsibility is to carry out the Kinds of Managers management Many different kinds of managers work in organizations today. Figure 1.1 shows how process various kinds of managers within an organization can be differentiated by level and by efficient area. Using resources wisely in a cost- Levels of Management One way to classify managers is in terms of their level in the effective way organization. Top managers make up the relatively small group of executives who man- age the overall organization. Titles found in this group include president, vice president, effective and chief executive officer (CEO). Top managers create the organization’s goals, overall Making the right strategy, and operating policies. They also officially represent the organization to the decisions and external environment by meeting with government officials, executives of other organiza- successfully implementing them tions, and so forth. Howard Schultz, CEO of Starbucks, is a top manager, as are Paula Boggs and Peter Gibbons, two of the firm’s executive vice presidents. Likewise, Reed Hastings, Sergey Brin and Larry Page (Google’s founders and top executives), Marissa Mayer (CEO of Yahoo!), Richard Hayne (CEO of Urban Outfitters), and Mary Barra (CEO of General Motors) are also top managers. The job of a top manager is likely to be complex and varied. Top managers make decisions about activities such as acquiring other companies, investing in research and development (R&D), entering or abandoning various markets, and building new plants and office facilities. They often work long hours and spend much of their time in meetings or on the telephone. In most cases, top managers are also very well paid. In fact, the elite top managers of very large firms sometimes make several million dollars a year in salary, bonuses, and stock.4 In 2012, Ford paid Alan Mulally $1,400,000 in salary for his work as CEO. He was also awarded a bonus of $9,450,000 and around $15,000,000 in stock and option awards.5 Middle management is probably the largest group of managers in most organizations. Common middle-management titles include plant manager, operations manager, and division head. Middle managers are primarily responsible for implementing the policies and plans developed by top managers and for supervising and coordinating the activities Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Chapter 1: Understanding the Manager’s Job 5 Levels of Management Top managers Middle managers First-line managers g ce ns s n r he ce tio tin an io © Cengage Learning ur Ot ra ke at Fin so ist er ar re Op in M an m Ad m Hu Areas of Management F I G U R E 1.1 Kinds of Managers by Level and Area Organizations generally have three levels of management, represented by top managers, middle managers, and first-line managers. Regardless of level, managers are also usually associated with a specific area within the organization, such as marketing, finance, operations, human resources, administration, or some other area. of lower-level managers.6 Jason Hernandez, a regional manager at Starbucks responsible for the firm’s operations in three eastern states, is a middle manager. First-line managers supervise and coordinate the activities of operating employees. Common titles for first-line managers are supervisor, coordinator, and office manager. Positions like these are often the first held by employees who enter management from the ranks of operating personnel. Wayne Maxwell and Jenny Wagner, managers of Star- bucks coffee shops in Texas, are first-line managers. They oversee the day-to-day opera- tions of their respective stores, hire operating employees to staff them, and handle other routine administrative duties required of them by the parent corporation. In contrast to top and middle managers, first-line managers typically spend a large proportion of their time supervising the work of their subordinates. Managing in Different Areas of the Organization Regardless of their level, man- agers may work in various areas within an organization. In any given firm, for example, these areas may include marketing, financial, operations, human resources, administra- tive, and others. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 6 Part 1: An Introduction to Management Marketing managers work in areas related to the marketing function—getting consu- mers and clients to buy the organization’s products or services (be they Samsung smart- phones, Toyota automobiles, Vogue magazines, Associated Press news reports, streaming video rentals from Netflix, or lattes at Starbucks). These areas include new product development, promotion, and distribution. Given the importance of marketing for virtu- ally all organizations, developing good managers in this area is critical. Financial managers deal primarily with an organization’s financial resources. They are responsible for activities such as accounting, cash management, and investments. In some businesses, especially banking and insurance, financial managers are found in large numbers. Operations managers are concerned with creating and managing the systems that cre- ate an organization’s products and services. Typical responsibilities of operations man- agers include production control, inventory control, quality control, plant layout, and site selection. Human resources managers are responsible for hiring and developing employees. They are typically involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating per- formance appraisal systems, and discharging low-performing and problem employees. Administrative, or general, managers are not associated with any particular manage- ment specialty. Probably the best example of an administrative management position is that of a hospital or clinic administrator. Administrative managers tend to be generalists; they have some basic familiarity with all functional areas of management rather than specialized training in any one area.7 Many organizations have specialized management positions in addition to those already described. Public relations managers, for example, deal with the public and media for firms such as Facebook and the Dow Chemical Company 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 spe- cialized managers in organizations like Walmart and Halliburton. 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 num- ber and importance of such managers are also likely to increase. planning Setting an Basic Management Functions organization’s goals Regardless of level or area, management involves the four basic functions of planning and deciding how and decision making, organizing, leading, and controlling. This book is organized around best to achieve them these basic functions, as shown in Figure 1.2. decision making Planning and Decision Making In its simplest form, planning means setting an Part of the planning organization’s goals and deciding how best to achieve them. Decision making, a part of process that involves the planning process, involves selecting a course of action from a set of alternatives. selecting a course of Planning and decision making help managers maintain their effectiveness by serving as action from a set of guides for their future activities. In other words, the organization’s goals and plans alternatives clearly help managers know how to allocate their time and resources. Part 1 of this organizing book is devoted to planning and decision-making activities and concepts. Determining how activities and Organizing Once a manager has set goals and developed a workable plan, his or her resources are to be next management function is to organize people and the other resources necessary to grouped carry out the plan. Specifically, organizing involves determining how activities and Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Chapter 1: Understanding the Manager’s Job 7 Planning and Decision Making Organizing Setting the organiza- Determining how tion’s goals and best to group deciding how best activities and to achieve them resources Controlling Leading Monitoring Motivating members and correcting of the organization © Cengage Learning ongoing activities to work in the best to facilitate goal interests of the attainment organization F I G U R E 1.2 The Management Process Management involves four basic activities—planning and decision making, organizing, leading, and controlling. Although there is a basic logic for describing these activities in this sequence (as indicated by the solid arrows), most managers engage in more than one activity at a time and often move back and forth between the activities in unpredictable ways (as shown by the dotted arrows). resources are to be grouped. Although some people equate this function with the crea- tion of an organization chart, we will see in Part 3 that it is actually much more. Leading The third basic managerial function is leading. Some people consider leading to be both the most important and the most challenging of all managerial activities. leading Leading is the set of processes used to get members of the organization to work together The set of processes to further the interests of the organization. We cover the leading function in detail in used to get members Part 4. of the organization to work together to Controlling The final phase of the management process is controlling, or monitoring further the interests the organization’s progress toward its goals. As the organization moves toward its goals, of the organization managers must monitor progress to ensure that it is performing in such a way as to controlling arrive at its “destination” at the appointed time. Part 5 explores the control function. Monitoring The “Sustainability Matters” feature also illustrates how control can be applied to waste organizational management. progress toward goal attainment Fundamental Management Skills To carry out these management functions most effectively, managers rely on a number of different fundamental management skills, of which the most important are technical, interpersonal, conceptual, diagnostic, communication, decision-making, and time man- agement skills.8 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 8 Part 1: An Introduction to Management SUSTAINABILITY MATTERS Toward Zero Waste DuPont was once a major generator of trash, routinely North American manufacturing plants have achieved dumping thousands of tons of waste materials in land- zero-landfill status. Moreover, GM also says that it fills each year. But a few years ago, the firm announced recycles 92 percent of all waste generated by its facil- its intentions to dramatically reduce the waste it was ities worldwide. Honda reports that 10 of its 14 North sending to landfills, with a goal of achieving total recy- American factories have achieved zero-landfill status. cling wherever possible. To initiate this effort, the firm And Toyota claims that its North American operations first set a standard for each of its business units and are at “near zero” landfill status. facilities. Next, it developed procedures for monitoring Outside the auto industry, Boeing says that a reno- progress toward those standards. vated Chinook helicopter plant is at zero landfill status. Take DuPont’s Building Innovations unit, for And PepsiCo’s Frito-Lay facilities are, in the words of example, which makes products like kitchen counter- the company, approaching zero landfill status at some tops and Tyvek building wrap. In 2008, the business of its facilities. For now, though, a few roadblocks and was sending 81 million pounds of waste to landfills challenges are still being faced by businesses trying to each year. But by January 2013, it was not sending improve their environmental footprint through control anything to landfills! Among the new practices lead- procedures. For one thing, some waste products are ing to this milestone are the following: simply difficult to recycle. For example, DuPont noted that reducing waste by 80 percent was surprisingly Composting cafeteria waste and using it in easy, but that last 20 percent posed real challenges. landscaping There is also no independent resource for verifying Repairing shipping pallets to extend their use life, zero-landfill status. Regardless, though, critics agree and shredding those not repairable for use as that even if a firm takes small liberties in reporting animal bedding waste reductions, they are still making progress. Recycling countertop waste into landscape stone References: “Companies Air for Zero Success in Waste Recycling,” A new term has even been coined to reflect this USA Today, January 30, 2013, p. 3B; “Ford to Accelerate Waste Reduc- accomplishment: zero-landfill status. DuPont isn’t tion Effort,” greenbiz.com/news, March 4, 2013; “Waste Reduction,” alone, of course. GM recently reported that 81 of its www.gm.com/vision/waste_reduction_.html, March 5, 2013. technical skills Technical Skills Technical skills are necessary to accomplish or understand the spe- The skills necessary cific kind of work done in an organization. Technical skills are especially important for to accomplish or first-line managers. These managers spend much of their time training their subordinates understand the and answering questions about work-related problems. If they are to be effective managers, specific kind of work they must know how to perform the tasks assigned to those they supervise. While Reed done in an Hastings now spends most of his time dealing with strategic and management issues, he organization also keeps abreast of new and emerging technologies and trends that may affect Netflix. interpersonal skills The ability to Interpersonal Skills Managers spend considerable time interacting with people communicate with, both inside and outside the organization. For obvious reasons, then, they also need understand, and interpersonal skills—the ability to communicate with, understand, and motivate both motivate both individuals and groups. As a manager climbs the organizational ladder, he or she must individuals and be able to get along with subordinates, peers, and those at higher levels of the organiza- groups tion. 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. conceptual skills The manager’s Conceptual Skills Conceptual skills depend on the manager’s ability to think in the ability to think in the abstract. Managers need the mental capacity to understand the overall workings of the abstract organization and its environment, to grasp how all the parts of the organization fit Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Chapter 1: Understanding the Manager’s Job 9 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. Reed Hastings’s idea to extend the payment model used by health clubs to the video rental market came from his strong conceptual skills. diagnostic skills Diagnostic Skills Successful managers also possess diagnostic skills—skills that The manager’s enable them to visualize the most appropriate response to a situation. A physician diag- ability to visualize the noses a patient’s illness by analyzing symptoms and determining their probable cause. most appropriate Similarly, a manager can diagnose and analyze a problem in the organization by studying response to a its symptoms and then developing a solution.9 situation Communication Skills Communication skills refer to the manager’s abilities to communication skills both effectively convey ideas and information to others and effectively receive ideas and The manager’s information from others. These skills enable a manager to transmit ideas to subordinates abilities both to so that they know what is expected, to coordinate work with peers and colleagues so that effectively convey they work well together, and to keep higher-level managers informed about what is going ideas and on. In addition, communication skills help the manager listen to what others say and information to others understand the real meaning behind e-mails, letters, reports, and other written and to effectively communication. receive ideas and information from Decision-Making Skills Effective managers also have good decision-making skills. others 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 decision-making problems and capitalize on opportunities. No manager makes the right decision all the skills time. However, effective managers make good decisions most of the time. And, when The manager’s they do make a bad decision, they usually recognize their mistake quickly and then ability to correctly make good decisions to recover with as little cost or damage to their organization as pos- recognize and define sible. Managers at Netflix made a poor decision when they decided to split their services problems and into two businesses, but they quickly reversed themselves before things got too bad. opportunities and to then select an Time Management Skills Finally, effective managers usually have good time man- appropriate course agement skills. Time management skills refer to the manager’s ability to prioritize of action to solve work, to work efficiently, and to delegate work appropriately. As already noted, managers problems and capitalize on face many different pressures and challenges. It is too easy for a manager to get bogged opportunities down doing work that can easily be postponed or delegated to others.10 When this hap- pens, unfortunately, more pressing and higher-priority work may get neglected.11 time management skills The Science and the Art of Management The manager’s ability to prioritize Given the complexity inherent in the manager’s job, a reasonable question relates to work, to work whether management is a science or an art. In fact, effective management is a blend of efficiently, and to both science and art. Successful executives recognize the importance of combining both delegate the science and art of management as they practice their craft.12 appropriately The Science of Management Many management problems and issues can be approached in ways that are rational, logical, objective, and systematic. Managers can gather data, facts, and objective information. They can use quantitative models and decision-making techniques to arrive at “correct” decisions. And they need to take such a scientific approach to solving problems whenever possible, especially when they are dealing with relatively routine and straightforward issues. When Starbucks considers entering a new market, its managers look closely at a wide variety of objective details as they formu- late their plans. Technical, diagnostic, and decision-making skills are especially important when approaching a management task or problem from a scientific perspective. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 10 Part 1: An Introduction to Management © Elena Kharichkina/Shutterstock.com Most successful managers have strong time management skills. This allows them to stay on top of their work, meet deadlines, achieve their goals, and avoid unnecessary stress. Poor time management skills, however, often lead to falling behind on work, not meeting goals, being late on projects, and excessive stress. The Art of Management Even though managers may try to be scientific as often as possible, they must frequently make decisions and solve problems on the basis of intui- tion, experience, instinct, and personal insights. Relying heavily on conceptual, commu- nication, interpersonal, and time management skills, for example, a manager may have to decide among multiple courses of action that look equally attractive. And even “objective facts” may prove to be wrong. When Starbucks was planning its first store in New York City, market research clearly showed that New Yorkers preferred drip coffee to more exotic espresso-style coffees. After first installing more drip coffee makers and fewer espresso makers than in their other stores, managers had to backtrack when New Yor- kers lined up clamoring for espresso. Starbucks now introduces a standard menu and layout in all its stores, regardless of presumed market differences, and then makes neces- sary adjustments later.13 Thus, managers must blend an element of intuition and per- sonal insight with hard data and objective facts.14 THE EVOLUTION OF MANAGEMENT Most managers today recognize the importance of history and theory in their work. For instance, knowing the origins of their organization and the kinds of practices that have led to success—or failure—can be an indispensable tool in managing the contemporary organization. Thus, in our next section, we briefly trace the history of management thought. Then we move forward to the present day by introducing contemporary man- agement issues and challenges. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.