Fundamentals of Management PDF Chapter 1

Fundamentals of Management Global Edition Chapter 01 Managing Today Copyright © 2020 Pearson Educat...

Fundamentals of Management Global Edition Chapter 01 Managing Today Copyright © 2020 Pearson Education Ltd. All Rights Reserved. If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed: 1) MathType Plugin 2) Math Player (free versions available) 3) NVDA Reader (free versions available) 1  Learning Objectives 1.1 Tell who managers are and where they work. 1.2 Define management. 1.3 Describe what managers do. 1.4 Explain why it’s important to study management. 1.5 Describe the factors that are reshaping and redefining management. 1.6 Describe the key employability skills gained from studying management that are applicable to your future career, regardless of your major. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. After studying this chapter, you will be able to: Tell who managers are and where they work. Define management. Describe what managers do. Explain why it’s important to study management. Describe the factors that are reshaping and redefining management. Describe the key employability skills gained from studying management that are applicable to your future career, regardless of your major. 2 Learning Objectives 1.1 Tell who managers are and where they work. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3  Who Are Managers? Where Do They Work? Organization A deliberate collection of people brought together to accomplish some specific purpose Common Characteristics of Organizations Goals People Structure Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Managers work in organizations, which we define as a deliberate arrangement of people brought together to accomplish a specific purpose. Three characteristics that identify an organization are its: 1. Goals 2. People, and 3. Structure 1. Every organization has a distinct purpose and is made up of people who are grouped in some fashion. a) See Exhibit 1-1. b) This distinct purpose is typically expressed in terms of a goal or set of goals. 2. Purposes or goals can only be achieved through people. 3. All organizations develop a systematic structure that defines and limits the behavior of its 4  members. a) Developing a structure may include creating rules and regulations, giving some members supervisory control, forming teams, etc. Examples of organizations include: Your neighborhood convenience store The Dallas Cowboys football team Fraternities and sororities The Cleveland Clinic Global companies such as Nokia 4  What Three Characteristics Do All Organizations Share? Exhibit 1-1 Three Characteristics of Organizations Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Here we see the three common characteristics that organizations share: 1. Goals, which express the distinct purpose of a particular organization 2. People, who make decisions and engage in work activities to reach the organization’s goals, and 3. A deliberate structure, which systematically defines and limits its members’ behavior. 5  How Are Managers Different from Nonmanagerial Employees? Nonmanagerial Employees Work directly on tasks Not responsible for overseeing others’ work Managers Direct and oversee the activities of others May have work duties not related to overseeing others Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Members of an organization can be divided into two categories: 1. Nonmanagerial employees work directly on a task and do not oversee the work of others. Examples include a cashier in a home improvement store or someone who takes your order at a coffee store. They may be called associates, team members, or contributors. 2. Managers, who direct and oversee the activities of the people in the organization. A manager’s job isn’t about personal achievement—it’s about helping others do their work. This distinction doesn’t mean, however, that managers don’t ever work directly on tasks. 1. Organizational members fit into two categories: nonmanagerial employees and managers. a) Nonmanagerial employees work directly on a job or task and have no oversight on the responsibility of others. b) Managers direct the activities of other people in the organization. 1) Customarily classified as top, middle, or first line, they supervise both nonmanagerial employees and lower-level managers. 6  2) See Exhibit 1-2. 3) Some managers also have nonmanagerial responsibilities themselves. 1. The distinction between non-managers and managers is that managers have employees who report directly to them. 6  What Titles Do Managers Have? (1 of 2) Exhibit 1-2 Management Levels Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Managers in an organization can have a variety of titles. Managers are usually classified as top, middle, first-line, or team leaders. 1. Top managers are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members. a) Top managers have titles including vice president, managing director, chief operating officer, chancellor, etc. 2. Middle managers represent levels of management between the first-line supervisor and top management. a) They manage other managers and possibly some nonmanagerial employees. b) They are responsible for translating the goals set by top management into specific details. 3. First-line managers are usually called supervisors, shift managers, etc. a) They are responsible for directing the day-to-day activities of nonmanagerial employees. 7 4. Team leaders are responsible for managing and facilitating activities of a work team. a) They typically report to a first-line manager. 7  What Titles Do Managers Have? (2 of 2) Top Managers Make decisions about the direction of an organization Middle Managers Manage other managers First-line Managers Direct nonmanagerial employees Team Leaders Manage activities of a work team Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Top managers are those at or near the top of an organization who make decisions about the direction of the organization and establish policies and philosophies that affect all organizational members. Titles include: president, vice president, chancellor, managing director, or chief executive officer. Middle managers fall between the lowest and highest levels of the organization. They often manage other managers and sometimes nonmanagerial employees, and are responsible for translating the goals set by top managers into specific detailed tasks that lower-level managers oversee. Titles include: agency head, unit chief, division manager, or project leader. First-line managers are responsible for directing the day-to-day activities of nonmanagerial employees. Titles include: supervisor, shift manager, or unit coordinator. Team leaders are a special category of lower-level managers that have become more common as organizations have moved to using employee work teams to do work. They typically report to a first-line manager. 8 Learning Objective 1.2 Define management. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9  What Is Management? (1 of 2) Management The process of getting things done effectively and efficiently, with and through people. Effectiveness: Doing the right things Efficiency: Doing things right Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Management is the process of getting things done effectively and efficiently, with and through people. Efficiency and effectiveness have to do with the work being done and how it’s being done. Efficiency means doing a task correctly (“doing things right”) and getting the most output from the least amount of inputs. It’s not enough, however, just to be efficient. Managers are also concerned with completing activities. In management terms, we call this effectiveness. Effectiveness means “doing the right things” by doing those work tasks that help the organization reach its goals. 1. Management can be defined as the process of getting things done effectively and efficiently, through and with other people. a) The term “process” in the definition represents the primary activities managers perform. 2. Effectiveness and efficiency deal with what we are doing and how we are doing it. a) Efficiency means doing the task right and refers to the relationship between inputs and outputs. Management is concerned about minimizing resource costs while achieving the 10  desired output. b) Effectiveness means doing the right task, and in an organization, that translates into goal attainment. c) See Exhibit 1-3. 1. Efficiency and effectiveness are interrelated. a) It’s easier to be effective if one ignores efficiency. b) Good management is concerned with both the attainment of goals (effectiveness) and efficiency in the process. 10  What Is Management? (2 of 2) Exhibit 1-3 Efficiency and Effectiveness Copyright © 2020 Pearson Education Ltd. All Rights Reserved. As illustrated here, while efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. The concepts are different, but interrelated. It’s easier to be effective if you ignore efficiency. Poor management is often due to both inefficiency and ineffectiveness OR effectiveness achieved without regard for efficiency. Good management is concerned with both attaining goals (effectiveness) and doing so as efficiently as possible. 11 Learning Objective 1.3 Describe what managers do. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 12  What Do Managers Do? Ways to Look at What Managers Do 4 Functions Approach Management Roles Approach Skills and Competencies Copyright © 2020 Pearson Education Ltd. All Rights Reserved. No two organizations are alike, and neither are managers’ jobs. But managers’ jobs do share some common elements. We’ll discuss three approaches to describing what managers do. 1. While the job of manager varies from organization to organization, they do share some common elements. 2. Management researchers have developed three approaches to describe what managers do: functions, roles, and skills/competencies. 13  4 Functions Approach Planning Exhibit 1-4 Four Management Functions Organizing Leading Controlling Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Managers perform certain activities, tasks, or functions as they direct and oversee others’ work. This approach was first proposed by French Industrialist Henri Fayol. He said managers engaged in five management activities: plan, organize, command, coordinate, and control (POCCC). His choice of these five functions was based on his own observations of the mining industry, not from a formal survey. Today, those management functions have been condensed to the following four: 1. Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. 2. Organizing includes determining which tasks need to be done and by whom, how tasks are to be grouped, who reports to whom, and who will make decisions. 3. Leading includes motivating employees, selecting the most effective communication channel, and resolving conflicts. 4. Controlling includes monitoring performance, comparing it with goals, and correcting any significant deviations. 1. See Exhibit 1-4; planning, organizing, leading, and controlling. 14 2. These processes are interrelated as well as interdependent. 3. Planning encompasses defining an organization’s goals, establishing an overall strategy for achieving those goals, and developing plans to coordinate activities. 4. Organizing—determining what tasks are to be done, who is to do them, how the tasks are grouped, who reports to whom, and where decisions are to be made. 5. Directing and coordinating people is the leading component of management. a) Leading involves motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts. 1. Controlling. a) To ensure that things are going as they should, a manager must monitor the organization’s performance. b) Actual performance must be compared with the previously set goals. c) Any significant deviations must be addressed. d) Monitoring, comparing, and correcting are the controlling process. 14  Management Roles Approach Exhibit 1-5 Mintzberg’s Managerial Roles Source: Based on Mintzberg, Henry, The Nature of Managerial Work, 1st edition, © 1973 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. In the late 1960s, Henry Mintzberg dispelled long-held notions that managers were reflective thinkers who carefully processed information before making decisions. His empirical study of 5 chief executives showed that managers perform ten different but highly interrelated roles. He categorized these actions around the following three general categories: 1. Interpersonal relationships: Figurehead, leader, and liaison. 2. Informational transfer: Monitor, disseminator, and spokesperson. 3. Decision-making: Entrepreneur, disturbance handler, resource allocator, and negotiator. 1. Fayol’s original applications represented mere observations from his experiences in the French mining industry. 2. In the late 1960s, Henry Mintzberg provided empirical insights into a manager’s job. He undertook a careful study of five chief executives at work. Mintzberg provided a categorization scheme for defining what managers do on the basis of actual managers on the job—Mintzberg’s managerial roles. 15 Mintzberg concluded that managers perform 10 different but highly interrelated roles. a) These 10 roles are shown in Exhibit 1-5. b) They are grouped under three primary headings: 1) Interpersonal roles—figurehead, leader, liaison 2) Informational roles—spokesperson, disseminator, monitor 3) Decisional roles—entrepreneur, disturbance handler, resource allocator, negotiator 15  Skills and Competencies Analyze and diagnose Working well with others Possessing expert job knowledge Political adeptness Source: Simon/Fotolia Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Another way to describe what managers do is by looking at the skills they need for managing. Management researcher Robert L. Katz and others describe four critical skills: 1. Conceptual skills: Analyzing and diagnosing complex situations to see how things fit together and to facilitate making good decisions. 2. Interpersonal skills: Working well with other people both individually and in groups by communicating, motivating, mentoring, and delegating. 3. Technical skills: Job-specific knowledge, expertise, and techniques needed to perform work tasks. (For top-level managers − knowledge of the industry and a general understanding of the organization’s processes and products; For middle- and lower-level managers − specialized knowledge required in the areas where they work—finance, human resources, marketing, computer systems, manufacturing, information technology). 4. Political skills: Building a power base and establishing the right connections so they can get needed resources for their groups. 16  Which Approach Takes the Prize? Functions Roles Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Both approaches seem to do a good job of describing what managers do. But, the functions approach wins! Its clarity and simplicity in describing what managers do make it continually popular. But, don’t ignore Mintzberg’s roles approach; it does offer another way to describe what managers do. 17  Is the Manager’s Job Universal? (1 of 5) Level in the Organization Profit vs. Not-for-profit Size of the Organization Management Concepts and National Borders Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Until now, we’ve looked at management as a generic activity. If management is truly a generic discipline, then what a manager does should be essentially the same whether he or she is a top-level executive or a first-line supervisor, in a business firm or a government agency; in a large corporation or a small business; or located in Paris, Texas, or Paris, France. In reality, a manager’s job varies depending on several factors. 18  Is the Manager’s Job Universal? (2 of 5) Level in the Organization Exhibit 1-6 Management Activities by Organizational Level Source: Based on T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management,” Industrial Relations 4, no. 2 (1965), p. 103 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. First we’ll examine how a manager’s level in the organization impacts the role. Although a supervisor and the CEO of a company may not do exactly the same things, it doesn’t mean that their jobs are inherently different. The differences are of degree and emphasis but not of activity. That is, the decisions of a top manager will have greater ramifications than those of a middle manager due to the content of the decision. All managers regardless of level, make decisions and plan, lead, organize, and control. But the amount of time a manager gives to each activity is not necessarily constant. Also, the content of the managerial activities also changes with the manager’s level. The figure illustrates this variability. 1. Level in the Organization: The importance of managerial roles varies depending on the manager’s level in the organization. a) The differences in managerial roles are of degree and emphasis, but not of activity. b) As managers move up, they do more planning and less direct overseeing of others. 19  1) See Exhibit 1-6. a) The amount of time managers give to each activity is not necessarily constant. b) The content of the managerial activities changes with the manager’s level. 1) Upper-level managers are concerned with designing the overall organization’s structure. e) Lower-level managers focus on designing the jobs of individuals and work groups. 19  Is the Manager’s Job Universal? (3 of 5) Profit vs. Not-for-profit Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The most important difference between the two is how performance is measured. Profit, or the “bottom line,” is an unambiguous measure of a business organization’s effectiveness. Not-for-profit organizations don’t have such a universal measure, making performance measurement more difficult. But even not-for- profit organizations need to make money to continue operating. a) The manager’s job is mostly the same in both profit and not-for-profit organizations. b) All managers make decisions, set objectives, create workable organization structures, hire and motivate employees, secure legitimacy for their organization’s existence, and develop internal political support in order to implement programs. c) The most important difference is measuring performance, profit, or the “bottom line.” d) There is no such universal measure in not-for-profit organizations. e) Making a profit for the “owners” of not-for-profit organizations is not the primary focus. 20  Is the Manager’s Job Universal? (4 of 5) Size of the Organization Exhibit 1-7 Managerial Roles in Small and Large Businesses Source: Based on J. G. P. Paolillo, “The Manager’s Self-Assessments of Managerial Roles: Small vs. Large Firms,” American Journal of Small Business, January–March 1984, pp. 61–62 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. As we see in this figure, managerial roles in small and large businesses differ. For the purposes of our discussion, a small business is an independent business having fewer than 500 employees that doesn’t necessarily engage in any new or innovative practices and has relatively little impact on its industry. The most important role of a small business manager is that of spokesperson, performing externally in meeting with customers, arranging financing with bankers, searching for new opportunities, and stimulating change. The actions of a manager in a large organization, however, are directed internally, deciding which organizational units get which and how much of the available resources. A small business manager is more likely to be a generalist in a less formal, less structured, and less complex environment than his counterpart in a large organization. Again, as with organizational level, we see differences in degree and emphasis but not in the activities that managers do. Managers in both small and large organizations perform essentially the same activities, but how they go about those activities and the proportion of time they spend on each are different. 21 2. Size of Organization. a) Definition of small business and the part it plays in our society. 1) There is no commonly agreed-upon definition. b) Small business—any independently owned and operated profit-seeking enterprise that has fewer than 500 employees. c) The role of managing a small business is different from that of managing a large one. 1) See Exhibit 1-7. 2) The small business manager’s most important role is that of spokesperson (outwardly focused). 3) In a large organization, the manager’s most important job is deciding which organizational units get what available resources (inwardly focused). 4) The entrepreneurial role is least important to managers in large firms. 5) A small business manager is more likely to be a generalist. 6) The large firm’s manager’s job is more structured and formal than the manager in a small firm. 7) Planning is less carefully orchestrated in the small business. 8) The small business organizational design will be less complex and structured. 9) Control in the small business will rely more on direct observation. d) We see differences in degree and emphasis, but not in activities. 21  Is the Manager’s Job Universal? (5 of 5) Management Concepts and National Borders Copyright © 2020 Pearson Education Ltd. All Rights Reserved. If management concepts were transferable across countries, they would apply universally in all parts of the world. However, research shows that while concepts transfer easily among many English-speaking countries, management concepts will likely need to be modified when dealing with India, China, Chile, or other countries with economic, political, social, or cultural environments that differ from those of the so- called free-market democracies. 2. Management Concepts and National borders. a) Studies that have compared managerial practices between countries have not generally supported the universality of management concepts. 1) In Chapter 3, we will examine some specific differences between countries. b) Most of the concepts we will be discussing primarily apply to the United States, Canada, Great Britain, Australia, and other English-speaking democracies. c) Concepts may need to be modified when working with India, China, Chile, or other countries where economic, political, social, or cultural environments differ greatly from 22 that of the so-called free-market democracies. 22 Learning Objective 1.4 Explain why it’s important to study management. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 23  Why Study Management? (1 of 2) We all have a vested interest in improving how organizations are managed. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Why? Because we interact with them every day of our lives and an understanding of management offers insights into many organizational aspects. Understanding management offers insights into why some companies get our orders right the first time, why once-thriving organizations no longer exist, and which companies continue to prosper during challenging economic times. Studying management provides knowledge about manager skills and responsibilities, how organizations function, and how people behave in the workplace. IV. WHY STUDY MANAGEMENT? A. Reasons 1. We all have a vested interest in improving the way organizations are managed. a) We interact with them every day of our lives. 1) Examples of problems that can largely be attributed to poor management. b) Those that are poorly managed often find themselves with a declining customer base and 24  reduced revenues. 2. The reality that once you graduate from college and begin your career, you will either manage or be managed. a) An understanding of the management process is the foundation for building management skills. b) You will almost certainly work in an organization, be a manager, or work for a manager. c) You needn’t aspire to be a manager in order to gain something valuable from a course in management. 24  Why Study Management? (2 of 2) Most people will either manage or be managed. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. If you plan to be a manager, you’ll form a foundation on which to build your management skills and abilities. Even if you don’t see yourself managing, you’re still likely to have to work with managers. And the reality is, that if you plan to work for a living, you’ll probably have some managerial responsibilities even if you’re not a manager. Studying management provides knowledge about managerial skills and responsibilities, how organizations function, and how people behave in the workplace. 25 Learning Objectives 1.5 Describe the factors that are reshaping and redefining management. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 26  What Factors are Reshaping and Redefining Management Welcome to the New World of Management! Changing Workplaces + Changing Workforce Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Managers today are dealing with changing workplaces, a changing workforce, global economic and political uncertainties, and changing technology. Distributed labor companies are changing the face of temporary work. Some 30-45 percent of the world’s work force works from home or are virtual employees. More and more businesses are relying on apps and mobile-enhanced Websites to run their businesses. Managers everywhere are likely to have to manage in changing circumstances, which means that how managers manage is changing. We will now look at four specific changes that are increasingly important to organizations and managers everywhere: customers, innovation, social media, and sustainability. IV. WHAT FACTORS ARE RESHAPING AND REDIFINING MANAGEMENT? A. Introduction a) Managers are dealing with changing workplaces, a changing workforce, changing technology, and global economic uncertainties. b) Managers everywhere are likely to have to manage in changing circumstances, and the 27 fact is that how managers manage is changing. 27  Why Are Customers Important to the Manager’s Job? Consistent, high-quality customer service is essential to survival. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Organizations depend on their customers to exist in the marketplace. Until recently, customer focus was thought to be the responsibility of marketing, but organizations are now discovering that employee attitudes and behaviors play a big role in customer satisfaction. Managers are recognizing that delivering consistent high-quality customer service is essential for survival and success in today’s competitive environment. They recognize that employees are an integral part of creating a customer-responsive organization where employees are friendly, courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer. B. Why Are Customers Important to the Manager’s Job? 1. Without customers, the organization wouldn't survive. 2. Employee attitudes and behaviors play a big role in customer satisfaction. 3. Managers must create a customer responsive organization. 28  Why Is Innovation Important to the Manager’s Job? “Nothing is more risky than not innovating.” Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Innovation means doing things differently, exploring new territory, and taking risks. In today’s challenging environment, innovation is critical and managers need to understand what, when, where, how, and why innovation can be fostered and encouraged throughout an organization. Managers need to be personally innovative and to encourage their employees to be innovative. B. Why Is Innovation Important to the Manager’s Job? 1. Not being innovative in today's world is risky. 2. Managers need to understand what, when, where, how, and why innovation can be fostered and encouraged throughout the organization. 3. Managers not only need to be innovative, but they must foster it in others. 29  Importance of Social Media to the Manager’s Job Social media – Forms of electronic communication through which users create communities to share ideas, information, personal messages, and other content Connecting with customers Managing human resources Copyright © 2020 Pearson Education Ltd. All Rights Reserved. More than a billion people use social media platforms like Facebook, Twitter, YouTube, LinkedIn, etc. Managers need to understand and manage the power of social media, because employees use them for both personal and work purposes. More and more businesses are turning to social media not just as a way to connect with customers but also as a way to manage their human resources and tap into their innovation and talent. But it’s not without its perils. Managers need to remember that social media is a tool that needs to be managed to be beneficial. B. Importance of Social Media to the Manager’s Job 1. Social media—forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content. 2. Employees can use social media for work purposes. Several examples are discussed in the text about companies using social media to manage human resource issues and to foster communication and collaboration throughout the company. 3. It can also be a problem and managers must be careful that social media does not turn the 30 organization into a place where people boast, brag, or send one-way messages to employees. 30  Importance of Sustainability to the Manger’s Job Sustainability – A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Another twenty-first century challenge is managing in a sustainable way. This means not just managing efficiently and effectively, but also responding strategically to environmental and societal challenges. Sustainability can be defined as meeting the needs of people today without compromising the ability of future generations to meet their own needs. From a business perspective, sustainability refers to a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. B. Importance of Sustainability to the Manager’s job 1. Sustainability—company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. a) This is becoming more important. b) Managers must look at corporate social responsibility not only to manage in an efficient and effective way but also responding strategically to a wide range of environmental and 31 social challenges. 31 Learning Objective 1.6 Describe the key employability skills gained from studying management that are applicable to your future career, regardless of your major Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 32  What Employability Skills Are Critical for Getting and Keeping a Job? Critical thinking Communication Collaboration Knowledge application and analysis Social responsibility Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Studying management can help you develop and improve your attractiveness as an employee. VI. WHAT EMPLOYABILITY SKILLS ARE CRITICAL FOR GETTING AND KEEPING A JOB? A. Studying management can help you develop and improve your employability skills. 1. Having a solid foundation in skills such as critical thinking, communications, problem solving, collaboration can be beneficial for entry-level employees and working professionals. a) Critical thinking involves purposeful and goal-directed thinking used to define and solve problems and to make for form judgments related to a particular situation or set of circumstances. b) Communication is defined as effective use of oral, written, and nonverbal communications skills for multiple purposes; effective listening; using technology to communicate; and being able to evaluate the effectiveness of communication efforts—all within diverse contexts. c) Collaboration is a skill in which individuals can actively work together on a task, 33  constructing meaning and knowledge as a group through dialogue and negotiation that results in a final product reflective of their joint, interdependent actions. d) Knowledge application and analysis is defined as the ability to learn a concept and then apply that knowledge appropriately in another setting to achieve a higher level of understanding. e) Social responsibility includes skills related to both business ethics and corporate social responsibility. 33  Managers Matter! Employee productivity, loyalty, and engagement hinge on employee/manager relationships. Employee engagement – When employees are connected to, satisfied with, and enthusiastic about their jobs Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Gallup Organization, which has polled millions of employees and tens of thousands of managers, has found that the single most important variable in employee productivity and loyalty isn’t pay or benefits or workplace environment; it’s the quality of the relationship between employees and their direct supervisors. Gallup also found that the relationship with their manager is the largest factor in employee engagement — which is when employees are connected to, satisfied with, and enthusiastic about their jobs—accounting for at least 70 percent of an employee’s level of engagement. 34 Copyright Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 35