Management Chapters 1-3 PDF

Acknowledgments Every author relies on the comments of reviewers, and ours have been very helpful. We want to thank the following people for their insightful comments and suggestions: Michael Alleruzzo, St. Joseph University, PA Matthias Boll...

Acknowledgments Every author relies on the comments of reviewers, and ours have been very helpful. We want to thank the following people for their insightful comments and suggestions: Michael Alleruzzo, St. Joseph University, PA Matthias Bollmus, Carroll University, WI Brione Burrows, Central Georgia Tech, GA M. Suzanne Clinton, University of Central Oklahoma, OK Dana J. Frederick, Missouri State University, MO Julia M. Fullick, Quinnipiac University, CT Karl Giulian, Atlantic Cape Community College, NJ Dan Morrell, Middle Tennessee State University, TN L. Renee Rogers, Forsyth Technical Community College, NC Global Edition Acknowledgments We want to thank the following people for their We would also like to thank the following people for re- contributions: viewing the Global Edition and sharing their insightful comments and suggestions: John Opute, London South Bank University Caroline Akhras, Notre Dame University–Louaize Andrew Richardson, University of Leeds Azim Khan Aminuddin, United Arab Emirates University Marcello Russo, University of Bologna Lindos Daou, Holy Spirit University of Kaslik Jon and Diane Sutherland, Freelance Writers Evangelos Dedousis, American University of Dubai Ken Wong, Hong Kong Polytechnic University Suresh George, Coventry University Yong Wooi Keong, Sunway University Richard Jefferies, The University of the West of Scotland Marian B. Wood, Freelance Writer J. C. Santora, International School of Management, Paris Vimala Venugopal, Taylor’s University Malaysia Our team at Pearson has been amazing to work with, as always! This team of editors, production experts, technology gurus, designers, marketing specialists, sales representatives, and warehouse employees works hard to turn our files into a bound textbook and a digital textbook and sees that it gets to faculty and students. We couldn’t do this without all of you! Our sincere thanks to the people who made this book “ready to go,” including Stephanie Wall, Kris Ellis-Levy, Claudia Fernandes, Hannah Lamarre, and Nancy Moudry, as well as Kathy Smith and the team at Cenveo. All of you are consummate professionals who truly are committed to pub- lishing the best textbooks! We’re glad to have you on our team! Finally, Steve and Mary would like to thank Joe Martocchio at the University of Illinois and Lori Long at Baldwin Wallace University for helping with this revision. They were instrumental in updating the research, examples, boxes, skill exercises, and cases. This revision could never have been done without your assistance. We thank you so much! A01_ROBB5839_14_GE_FM.indd 37 11/07/17 9:33 AM  Part 1 Introduction to Management Chapter 1 Managers and You in the Workplace It’s Your Career The ABC’s of Managing Your Time Are you BUSY? Do you always seem to have a lot to do and never seem to get it done, or done on time, or are things done at the last minute under a lot of pressure and stress? If you’re like most people, the answer to these questions is YES! Well, maybe in a management textbook we need to do something about that by focusing on one aspect of management that can be tremendously useful to you... TIME MANAGEMENT! Time is a unique resource and one of your most valuable resources. Time is also a limited resource. First, if it’s wasted, it can never be replaced. People talk about saving time, but time can never actually be saved. Second, unlike resources such as money or talent, which are distributed unequally in the world, time is an equal-opportunity resource. Each one of us Source: valentint/Fotolia gets exactly the same amount of time: 24 hours per day or 168 A key to success in hours each week. But as you have undoubtedly observed, some people are a management and in your lot more efficient in using their allotment. It is not uncommon to hear others career is having good time say that they need additional hours to get everything done, but that is simply management skills. wishful thinking. Commit to improving your ability to manage those 168 hours so you can be more efficient and effective—in your career and in your personal life! Here are some suggestions to help you better use your time: 1. Make and keep a list of all your current, upcoming, and routine goals. Know what needs to be done daily, weekly, and monthly. 2. Rank your goals according to importance. Not all goals are of equal importance. Given the limitations on your time, you want to make sure you give highest priority to the most important goals. 3. List the activities/tasks necessary to achieve your goals. What specific actions do you need to take to achieve your goals? 4. Divide these activities/tasks into categories using an A, B, and C classification. The A’s are important and urgent. B’s are either important or urgent, but not both. C’s are routine—not important nor urgent, but still need to be done. M01_ROBB5839_14_GE_C01.indd 38 07/06/17 5:37 pm  Pearson MyLab Management® Improve Your Grade! When you see this icon, visit www.mymanagementlab.com for activities that are applied, personalized, and offer immediate feedback. Learning Objectives SKILL OUTCOMES 1.1 Tell who managers are and where they work. Know how to manage your time. 1.2 Explain why managers are important to organizations. 1.3 Describe the functions, roles, and skills of managers. Develop your skill at being politically aware. 1.4 Describe the factors that are reshaping and redefining the manager’s job. 1.5 Explain the value of studying management. 5. Schedule your activities/tasks according to on social media, and unscheduled visitors you the priorities you’ve set. Prepare a daily plan. Every receive on a typical day. Some are essential to the morning, or at the end of the previous workday, tasks at hand, while others are distractions that make a list of the five or so most important things do not require immediate attention. Prioritize the you want to do for the day. Then set priorities for importance of this information. the activities listed on the basis of importance and 8. Realize that priorities may change as your urgency. day or week proceeds. New information may 6. Plan your to-do list each day so that it change a task’s importance or urgency. As you get includes a mixture of A, B, and C activities/tasks. new information, reassess your list of priorities And it’s best to spread the three types of tasks and respond accordingly. throughout your day so you’re not lumping together 9. Remember that your goal is to manage all your demanding tasks. Also, be realistic about getting your work done as efficiently and what you can achieve in a given time period. effectively as you can. It’s not to become an expert 7. Recognize that technology makes it too at creating to-do lists. Find what works best for easy to stay connected. Just think for a moment you and use it! how many phone calls, e-mails, texts, postings Like many students, you’ve probably had a job (or two) at some time or another while working on your degree. And your work experiences, regardless of where you’ve worked, are likely to have been influenced by the skills and abilities of your manager. What are today’s successful managers like and what skills do they need in dealing with the problems and challenges of managing in the twenty-first century? This text is about the important work that managers do. The reality facing today’s managers—and that might include you in the near future—is that the world is changing. In workplaces of 39 M01_ROBB5839_14_GE_C01.indd 39 26/07/17 11:07 AM  40 Part 1 Introduction to Management all types—offices, stores, labs, restaurants, factories, and the like—managers deal with changing expectations and new ways of managing employees and organizing work. In this chapter, we introduce you to managers and management by looking at (1) who managers are and where they work, (2) why managers are important, and (3) what man- agers do. Finally, we wrap up the chapter by (4) looking at the factors reshaping and re- defining the manager’s job and (5) discussing why it’s important to study management. WHO are managers and where do they work? Managers may not be who or what you might expect! Managers can LO1.1 range in age from 18 to 80+. They run large corporations, medium-sized businesses, and entrepreneurial start-ups. They’re also found in government departments, hospitals, not-for-profit agencies, museums, schools, and even nontraditional organizations such as political campaigns and music tours. Managers can also be found doing managerial work in every country on the globe. In addition, some manag- ers are top-level managers while others are first-line managers. And today, managers are just as likely to be women as they are men; however, the number of women in top-level manager positions remains low—only 24 (4%) women were CEOs of Fortune 500 companies in 2014.1 Similarly, only 20 (4%) were minorities. Even in government leadership roles, women are far outnumbered by men in the U.S. Senate and House of Repre- sentatives, representing approximately 20 percent of these total elected officials.2 But no matter where managers are found or what gender or race they are, managers have exciting and chal- lenging jobs! Carnival Corporation’s CEO Arnold Donald is the top manager of the world’s largest cruise line, with over 100,000 employees from Who Is a Manager? different cultures and countries, 10 cruise It used to be fairly simple to define who managers were: They were the organizational line brands, and 100 ships. His challenging members who told others what to do and how to do it. It was easy to differentiate man- job involves making decisions and developing agers from nonmanagerial employees. Now, it isn’t quite that simple. In many organiza- plans that help Carnival achieve its goal “to tions, the changing nature of work has blurred the distinction between managers and show our guests the kind of fun that memories are made of.” nonmanagerial employees. Many traditional nonmanagerial jobs now include mana- Source: Jason DeCrow/AP Images for Carnival gerial activities.3 For example, the gaming company Valve does not award job titles, Corporation and there is little formal supervision. Virtually any employee is free to start a project as long as the employee obtains funding and assembles a project team.4 Or consider an organization like Morning Star Company, the world’s largest tomato processor, where no employees are called managers—just 400 full-time employees who do what needs to be done and who together “manage” issues such as job responsibilities, compensa- tion decisions, and budget decisions.5 Sounds crazy, doesn’t it? But it works—for this organization. (See Case Application 2 at the end of the chapter to see how another business—Zappos—has gone bossless!) manager So, how do we define who managers are? A manager is someone who coor- Someone who coordinates and oversees the work of other people dinates and oversees the work of other people so organizational goals can be ac- so organizational goals can be complished. A manager’s job is not about personal achievement—it’s about helping accomplished others do their work. That may mean coordinating the work of a departmental group, or it might mean supervising a single person. It could involve coordinating the work activities of a team with people from different departments or even people outside the organization such as temporary employees or individuals who work for the organization’s suppliers. Keep in mind that managers may also have work duties not related to coordinating and overseeing others’ work. For example, an insurance claims supervisor might process claims in addition to coordinating the work activi- ties of other claims clerks. How can managers be classified in organizations? In traditionally structured organizations (often pictured as a pyramid because more employees are at lower M01_ROBB5839_14_GE_C01.indd 40 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 41 Exhibit 1-1 Levels of Management Top Managers Middle Managers First-Line Managers Nonmanagerial Employees organizational levels than at upper organizational levels), managers can be classi- fied as first-line, middle, or top. (See Exhibit 1-1.) At the lowest level of manage- ment, first-line (or frontline) managers manage the work of nonmanagerial first-line (frontline) managers employees who typically are involved with producing the organization’s products Managers at the lowest level of management who manage the work of or servicing the organization’s customers. These managers often have titles such nonmanagerial employees as supervisors or even shift managers, district managers, department managers, or office managers. Middle managers manage the work of first-line managers and middle managers can be found between the lowest and top levels of the organization. They may Managers between the lowest level have titles such as regional manager, project leader, store manager, or division man- and top levels of the organization who manage the work of first-line managers ager. Middle managers are mainly responsible for turning company strategy into action. At the upper levels of the organization are the top managers, who are top managers responsible for making organization-wide decisions and establishing the plans and Managers at or near the upper levels of the organization structure who are goals that affect the entire organization. These individuals typically have titles such responsible for making organization-wide as executive vice president, president, managing director, chief operating officer, or decisions and establishing the goals and chief executive officer. plans that affect the entire organization Not all organizations are structured to get work done using a traditional pyra- midal form, however. Some organizations, for example, are more loosely configured, with work done by ever-changing teams of employees who move from one project to another as work demands arise. For instance, Atlassian, a global software company based in Australia, forms employee teams with the skills and experience needed for each work project. When a project is complete, the team disbands and its members join new teams. Because team members may be in separate buildings or even in sepa- rate countries, Atlassian emphasizes clear and constant communication.6 Although it’s not as easy to tell who the managers are in these organizations, we do know that someone must fulfill that role—that is, someone must coordinate and oversee the work of others, even if that “someone” changes as work tasks or projects change or that “someone” doesn’t necessarily have the title of manager. Where Do Managers Work? It’s obvious that managers work in organizations. But what is an organization? It’s a organization deliberate arrangement of people to accomplish some specific purpose. Your college A deliberate arrangement of people to accomplish some specific purpose or university is an organization; so are fraternities and sororities, government depart- ments, churches, Google, your neighborhood grocery store, the United Way, the St. Louis Cardinals baseball team, and the Mayo Clinic. All are considered organizations and have three common characteristics. (See Exhibit 1-2.) Exhibit 1-2 Distinct Deliberate Characteristics of Organizations Purpose Structure People M01_ROBB5839_14_GE_C01.indd 41 07/06/17 5:37 pm  42 Part 1 Introduction to Management FYI First, an organization has a distinct purpose typically expressed through goals the organization hopes to accomplish. Second, each organization is composed of people. It takes people to perform the work that’s necessary for the organization to achieve its goals. Third, all organizations develop a deliberate structure within Frontline managers directly which members do their work. That structure may be open and flexible, with no supervise some 93 percent of all specific job duties or strict adherence to explicit job arrangements. For instance, nonsupervisory employees. most big projects at Google (at any one time, hundreds of projects are in process 9.3 million managers and simultaneously) are tackled by small, focused employee teams that set up in an executives were in the U.S. instant and complete work just as quickly.8 Or the structure may be more tradi- workforce in 2014. tional—like that of Procter & Gamble or General Electric or any large corpora- 6.9 million middle managers tion—with clearly defined rules, regulations, job descriptions, and some members were in the U.S. workforce identified as “bosses” who have authority over other members. In the military, there 2.4 million top executives were is a well-defined hierarchy. In the U.S. Air Force, the General of the Air Force is the in the U.S. workforce.7 highest ranking officer and Second Lieutenant is the lowest ranking officer. Between the two are nine officer ranks. Many of today’s organizations are structured more like Google, with flexible work arrangements, employee work teams, open communication systems, and sup- plier alliances. In these organizations, work is defined in terms of tasks to be done. And workdays have no time boundaries since work can be—and is—done any- where, anytime. However, no matter what type of approach an organization uses, some deliberate structure is needed so work can get done, with managers overseeing and coordinating that work. FUTURE VISION Is It Still Managing When What You’re Managing Are Robots? While this text presents a fairly accurate description of For example, when Erwin Deininger, the electrical engi- today’s workplace, you’re going to spend most of your neer at Reimers Electra Steam, a small company in Clear work life in the future. What will that work life look like? Brook, Virginia, moved to the Dominican Republic when How will it be different from today? The workplace of his wife’s job transferred her there, he was able to still tomorrow is likely to include workers that are faster, be “present” at the company via his VGo robot. Now smarter, more responsible—and who just happen to “robot” Deininger moves easily around the office and be robots.9 Are you at all surprised by this statement? the shop floor, allowing the “real” Deininger to do his job Although robots have been used in factory and indus- just as if he were there in person. The company’s presi- trial settings for a long time, it’s becoming more com- dent, satisfied with how the robot solution has worked mon to find robots in the office, and it’s bringing about out, has been surprised at how he acts around it, feeling new ways of looking at how work is done and at what at times that he’s interacting with Deininger himself. and how managers manage. So what would the man- There’s no doubt that robot technology will con- ager’s job be like managing robots? And even more tinue to be incorporated into organizational settings. intriguing is how these “workers” might affect how The manager’s job will become even more exciting and human coworkers interact with them. challenging as humans and machines work together to As machines have become smarter, researchers accomplish an organization’s goals. have been looking at human-machine interaction and how people interact with the smart devices that are If your professor has chosen to assign this, go to now such an integral part of our professional and per- www.mymanagementlab.com to discuss the follow- sonal lives. One conclusion is that people find it easy to ing questions. bond with a robot, even one that doesn’t look or sound TALK ABOUT IT 1: What’s your response to the anything like a real person. In a workplace setting, if a title of this box: Is it still managing when what you’re robot moves around in a “purposeful way,” people tend managing are robots? Discuss. to view it, in some ways, as a coworker. People name their robots and can even describe the robot’s moods TALK ABOUT IT 2: If you had to “manage” peo- and tendencies. As telepresence robots become more ple and robots, how do you think your job as manager common, the humanness becomes even more evident. might be different than what the chapter describes? M01_ROBB5839_14_GE_C01.indd 42 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 43 WHY are managers important? LO1.2 What can a great boss do? Inspire you professionally and personally Energize you and your coworkers to accomplish things together that you couldn’t get done by yourself Provide coaching and guidance with problems Provide you feedback on how you’re doing Help you to improve your performance Keep you informed of organizational changes Change your life10 If you’ve worked with a manager like this, consider yourself lucky. Such a manager can make going to work a lot more enjoyable and productive. However, even managers who don’t live up to such lofty ideals and expectations are important to organizations. Why? Let’s look at three reasons. The first reason why managers are important is because organizations need their mana- gerial skills and abilities more than ever in uncertain, complex, and chaotic times. As orga- nizations deal with today’s challenges—changing workforce dynamics, the worldwide eco- nomic climate, changing technology, ever-increasing globalization, and so forth—managers play an important role in identifying critical issues and crafting responses. For example, BlackBerry Limited introduced software for autonomous cars. The company’s vehicle-to- vehicle software will enable cars to communicate with each other to prevent collisions and improve traffic flow.11 Teams of talented scientists and engineers create the hardware and software to make this possible. But it takes more than that to be successful. There has to be a focus on commercial potential. For example, Virgin Galactic and Xcor Aerospace are work- ing toward creating a new industry—space tourism for civilians. These companies possess the technological and scientific know-how and resources to make this a reality; however, the fare for a suborbital flight around Earth is expected to be about $100,000 per passenger.12 Most people will not have the discretionary funds to take these flights. That’s why, behind the scenes, you’d also find a team of managers who scrutinize ideas and focus on the ques- tion: Is there a sustainable market? These managers realize what is critical to success. The opposite “types” have worked together and created a successful business.13 Another reason why managers are important to organizations is because they’re critical to getting things done. For instance, Philips has thousands of general managers who supervise the work of 113,000 employees worldwide.14 These managers deal with all kinds of issues as the company’s myriad tasks are carried out. They create and coordinate the w­ orkplace environment and work systems so that others can perform those tasks. Or, if work isn’t getting done or isn’t getting done as it should be, they’re the ones who find out why and get things back on track. And these managers are key players in leading the com- pany into the future. Finally, managers do matter to organizations! How do we know that? The Gallup Or- ganization, 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 employ- ees and their direct supervisors.15 In addition, global consulting firm Towers Watson found that the way a company manages and engages its people can significantly affect its financial performance.16 Companies that hire managers based on talent realize a 48 percent increase in profitability, a 22 percent increase in productivity, a 30 percent increase in employee en- gagement scores, a 17 percent increase in customer engagement scores, and a 19 percent decrease in turnover.17 That’s scary considering another study by the Gallup Organization found that leadership is the single largest influence on employee engagement.18 In yet anoth- er study by different researchers, 44 percent of the respondents said their supervisors strong- ly increased engagement.19 However, in this same study, 41 percent of respondents also said their supervisors strongly decreased engagement. And, a different study of organizational performance found that managerial ability was important in creating organizational value.20 So, as you can see, managers can and do have an impact—positive and negative. What can we conclude from such reports? Managers are important—and they do matter! M01_ROBB5839_14_GE_C01.indd 43 07/06/17 5:37 pm  44 Part 1 Introduction to Management WHAT do managers do? Simply speaking, management is what managers do. But that simple LO1.3 statement doesn’t tell us much, does it? Let’s look first at what manage- ment is before discussing more specifically what managers do. management Management involves coordinating and overseeing the work activities of others Coordinating and overseeing the work so their activities are completed efficiently and effectively. We already know that activities of others so their activities are coordinating and overseeing the work of others is what distinguishes a managerial completed efficiently and effectively position from a nonmanagerial one. However, this doesn’t mean that managers or their employees can do what they want anytime, anywhere, or in any way. Instead, manage- ment involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them, or at least that’s what managers should be doing. efficiency Efficiency refers to getting the most output from the least amount of inputs or Doing things right, or getting the most resources. Managers deal with scarce resources—including people, money, and equip- output from the least amount of inputs ment—and want to use those resources efficiently. Efficiency is often referred to as “doing things right,” that is, not wasting resources. For instance, Southwest Airlines has achieved operating efficiency through a variety of practices, which include using one aircraft model (Boeing 737) throughout its fleet. Using one model simplifies scheduling, operations, and flight maintenance, and the training costs for pilots, ground crew, and mechanics are lower because there’s only a single aircraft to learn.21 These efficient work practices paid off, as Southwest has made a profit for 42 consecutive years!22 It’s not enough, however, just to be efficient. Management is also concerned with effectiveness employee effectiveness. Effectiveness is often described as “doing the right things,” Doing the right things, or doing those that is, doing those work activities that will result in achieving goals. Besides being work activities that will result in achieving efficient, Southwest Airlines’ mission is “dedication to the highest quality of Customer goals Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”23 Two of the many reasons cited for the airlines’ effectiveness are permitting two checked bags for free and permitting a change in itinerary without incurring a pen- alty.24 Whereas efficiency is concerned with the means of getting things done, effective- ness is concerned with the ends, or attainment of organizational goals (see Exhibit 1-3). In successful organizations, high efficiency and high effectiveness typically go hand in hand. Poor management (which leads to poor performance) usually involves being inefficient and ineffective or being effective but inefficient. Time Management—If your instructor is using Pearson MyLab Management, log It’s Your Career onto www.mymanagementlab.com and test your time management knowledge. Be sure to refer back to the chapter opener! Now let’s take a more detailed look at what managers do. Describing what manag- ers do isn’t easy. Just as no two organizations are alike, no two managers’ jobs are alike. In spite of this, management researchers have developed three approaches to describe what managers do: functions, roles, and skills. Exhibit 1-3 Efficiency (Means) Effectiveness (Ends) Efficiency and Effectiveness in Resource Goal Management Usage Attainment Low Waste High Attainment Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness) M01_ROBB5839_14_GE_C01.indd 44 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 45 Exhibit 1-4 Planning Organizing Leading Controlling Four Functions of Management Setting goals, Determining Motivating, Monitoring establishing what needs leading, and activities Achieving the strategies, and to be done, any other to ensure organization’s developing how it will actions involved that they are stated plans to be done, and in dealing with accomplished purposes coordinate who is to do it people as planned activities Management Functions According to the functions approach, managers perform certain activities or functions as they efficiently and effec- tively coordinate the work of others. What are these func- tions? Henri Fayol, a French businessman in the early part of the twentieth century, suggested that all managers per- form five functions: planning, organizing, commanding, coordinating, and controlling.25 (See Management History Module for more information.) Today, we use four functions to describe a manager’s work: planning, organizing, leading, and controlling (see Exhibit 1-4). Let’s briefly look at each. If you have no particular destination in mind, then any road will do. However, if you have someplace in particular you want to go, you’ve got to plan the best way to get there. Because organizations exist to achieve some particular pur- Leading is an important function of The pose, someone must define that purpose and the means for its achievement. Managers Container Store manager Jaimie Moeller (left). are that someone. As managers engage in planning, they set goals, establish strategies She influences the behavior of employees by for achieving those goals, and develop plans to integrate and coordinate activities. leading them in a team huddle before they begin their work day. Coaching employees to succeed Managers are also responsible for arranging and structuring work that employees in the store’s team-selling environment helps do to accomplish the organization’s goals. We call this function organizing. When Moeller achieve the store’s sales performance managers organize, they determine what tasks are to be done, who is to do them, how and customer service goals. the tasks are to be grouped, who reports to whom, and where decisions are to be made. Source: ZUMA Press Inc/Alamy Every organization has people, and a manager’s job is to work with and through people to planning accomplish goals. This is the leading function. When managers motivate subordinates, help Management function that involves setting goals, establishing strategies for resolve work group conflicts, influence individuals or teams as they work, select the most effec- achieving those goals, and developing tive communication channel, or deal in any way with employee behavior issues, they’re leading. plans to integrate and coordinate activities The final management function is controlling. After goals and plans are set (plan- organizing ning), tasks and structural arrangements are put in place (organizing), and people are Management function that involves hired, trained, and motivated (leading), there has to be an evaluation of whether things arranging and structuring work to are going as planned. To ensure goals are met and work is done as it should be, managers accomplish the organization’s goals monitor and evaluate performance. Actual performance is compared with the set goals. leading If those goals aren’t achieved, it’s the manager’s job to get work back on track. This pro- Management function that involves working with and through people to cess of monitoring, comparing, and correcting is the controlling function. accomplish organizational goals Just how well does the functions approach describe what managers do? Do manag- controlling ers always plan, organize, lead, and then control? Not necessarily. What a manager does Management function that involves may not always happen in this sequence. However, regardless of the order in which these monitoring, comparing, and correcting functions are performed, managers do plan, organize, lead, and control as they manage. work performance If your professor has assigned this, go to www.mymanagementlab.com to complete the Simulation: What Is Management? and see how well you can apply the ideas of plan- Try It 1! ning, organizing, leading, and controlling. Although the functions approach is a popular way to describe what managers do, some have argued that it isn’t relevant.26 So let’s look at another perspective. M01_ROBB5839_14_GE_C01.indd 45 07/06/17 5:37 pm  46 Part 1 Introduction to Management let’s get REAL The Scenario: Micah, one of your best employees, was just promoted to a managerial position. You invited him to lunch to celebrate and to see what was on his mind about his new position. Waiting for your food to arrive, you asked him if he had any concerns or questions about being a manager. Looking straight at you, Micah said, “How is being a manager going to be different? What will I do as a manager?” How would you respond? Being a manager means that you have a greater responsibility to consider, and keep in mind big-picture organizational goals and how your work and that of your staff contribute to those goals. As a manager you also have a responsibility to think about development Source: Maribel Lara opportunities for any team members who may now report to you. How will you help to put them on a path toward growth and suc- cess? Maribel Lara Director, Account Management Mintzberg’s Managerial Roles and a Contemporary Model of Managing Henry Mintzberg, a well-known management researcher, studied actual managers at work. In his first comprehensive study, Mintzberg concluded that what managers do managerial roles can best be described by looking at the managerial roles they engage in at work.27 The Specific actions or behaviors expected term managerial roles refers to specific actions or behaviors expected of and exhib- of and exhibited by a manager ited by a manager. (Think of the different roles you play—student, employee, student organization member, volunteer, sibling, and so forth—and the different things you’re expected to do in these roles.) When describing what managers do from a roles per- spective, we’re not looking at a specific person per se, but at the expectations and responsibilities associated with the person in that role—the role of a manager.28 As shown in Exhibit 1-5, these 10 roles are grouped around interpersonal relationships, the transfer of information, and decision making. interpersonal roles The interpersonal roles involve people (subordinates and persons out- Managerial roles that involve people and side the organization) and other ceremonial and symbolic duties. The three in- other duties that are ceremonial and symbolic in nature terpersonal roles include figurehead, leader, and liaison. The informational roles involve collecting, receiving, and disseminating information. The three in- informational roles Managerial roles that involve collecting, formational roles include monitor, disseminator, and spokesperson. Finally, the receiving, and disseminating information decisional roles entail making decisions or choices and include entrepreneur, disturbance handler, resource allocator, and negotiator. As managers perform decisional roles Managerial roles that revolve around these roles, Mintzberg proposed that their activities included both reflection making choices (thinking) and action (doing).29 A number of follow-up studies have tested the validity of Mintzberg’s role catego- ries, and the evidence generally supports the idea that managers—regardless of the type of organization or level in the organization—perform similar roles.30 However, the emphasis that managers give to the various roles seems to change with organiza- tional level.31 At higher levels of the organization, the roles of disseminator, figure- head, negotiator, liaison, and spokesperson are more important; while the leader role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle or top-level managers. M01_ROBB5839_14_GE_C01.indd 46 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 47 Exhibit 1-5 R PERSONAL ROL TE ES Mintzberg’s Managerial Roles IN Leader Source: Based on H. Mintzberg, The Nature of Managerial Work (New York: Prentice Hall, 1983). Figurehead Liaison ROLES Entrepreneur Monitor Mintzberg’s DECISIO Managerial Disturbance Roles NA L Handler Disseminator IO NA Resource AT Allocator L RM RO Negotiator Spokesperson LE O S F IN So which approach is better, managerial functions or Mintzberg’s propositions? Although each does a good job of depicting what managers do, the functions ap- proach still seems to be the generally accepted way of describing the manager’s job. “The classical functions provide clear and discrete methods of classifying the thousands of activities managers carry out and the techniques they use in terms of the functions they perform for the achievement of goals.”32 However, Mintzberg’s role approach and additional model of managing do offer us other insights into managers’ work. Management Skills UPS is a company that understands the importance of management skills.33 The com- pany’s new on-road supervisors are immersed in a new manager orientation where they learn people and time management skills. The company started an intensive eight-day offsite skills training program for first-line managers as a way to improve its operations. What have supervisors learned from the skills training? Some things they mentioned learning were how to communicate more effectively and important information about safety compliance and labor practices. What types of skills do managers need? Robert L. Katz proposed that managers need three critical skills in managing: technical, human, and conceptual.34 technical skills (Exhibit 1-6 shows the relationships of these skills to managerial levels.) Technical Job-specific knowledge and techniques skills are the job-specific knowledge and techniques needed to proficiently per- needed to proficiently perform work form work tasks. These skills tend to be more important for first-line managers tasks Top Exhibit 1-6 Conceptual Human Technical Managers Skills Needed at Different Managerial Levels Middle Conceptual Human Technical Managers Lower-Level Conceptual Human Technical Managers M01_ROBB5839_14_GE_C01.indd 47 19/07/17 9:51 AM  48 Part 1 Introduction to Management Exhibit 1-7 Important Managerial Skills Managing Inspiring Managing human commitment change Source: Based on Workforce Online; J. R. capital Ryan, Bloomberg BusinessWeek Online; In-Sue Oh and C. M. Berry; and R. S. Rubin and E. C. Dierdorff. Structuring work Facilitating the Using and getting psychological and purposeful things done social contexts of work networking Managing Managing Managing decision-making strategy and logistics and processes innovation technology because they typically manage employees who use tools and techniques to pro- duce the organization’s products or service the organization’s customers. Often, employees with excellent technical skills get promoted to first-line manager. For example, Dean White, a production supervisor at Springfield Remanufacturing, started as a parts cleaner. Now, White manages 25 people in six departments. He noted that at first it was difficult to get people to listen, especially his former peers. “I learned I had to gain respect before I could lead,” White said. He credits men- tors—other supervisors whose examples he followed—with helping him become the type of manager he is today.35 Dean is a manager who has technical skills, interpersonal skills but also recognizes the importance of interpersonal skills, which involve the The ability to work well with other people ability to work well with other people both individually and in a group. Because individually and in a group all managers deal with people, these skills are equally important to all levels of management. Managers with good human skills get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. conceptual skills Finally, conceptual skills are the skills managers use to think and to conceptu- The ability to think and to conceptualize alize about abstract and complex situations. Using these skills, managers see the about abstract and complex situations organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. Managers then can effectively direct employees’ work. For example, Ian McAllister, general manager at Amazon, indicates that a successful general manager understands the whole business. With this understanding, managers can get everyone on the same page. In turn, employees will make a substantial number of decisions in support of the company’s vision.36 These skills are most important to top managers. Other important managerial skills that have been identified are listed in Exhibit 1-7. In today’s demanding and dynamic workplace, employees who want to be valuable assets must constantly upgrade their skills, and developing management skills can be particularly beneficial. We feel that understanding and developing management skills is so important that we’ve included a skills activity component for each chapter’s It’s Your Career opener. You’ll find that activity at www.mymanagementlab.com. In addi- tion, we’ve included a career skills feature at the end of each chapter. (The one in this chapter looks at developing your political skills.) Although completing skill-building exercises won’t make you an instant expert, they can provide you an introductory un- derstanding of some of the skills you’ll need to master to be a valuable employee and an effective manager. If your professor has assigned this, go to mymanagementlab.com and complete the Write It! Writing Assignment MGMT 1: Management Skills. M01_ROBB5839_14_GE_C01.indd 48 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 49 let’s get REAL The Scenario: Source: Whitney Portman After three years as a lead customer service representative for an Internet-based clothing company, Jane is eager to apply for a team supervisor position. She has good relationships with the employees in her department, but she is not sure what skills she needs to have to be considered for the promotion. At her performance appraisal meeting with her Whitney Portman manager, she asks, “What can I do to build my Senior Marketing Communications skills to prepare me to become a supervisor?” Manager What advice can you give Jane on developing her skills? As you advance in your career, the biggest shift in your skill set will be going from the “doer” to the “delegator.” Instead of getting all the work done, you’ll become air traffic control and act as more of a guide for your employees. You can hone these leadership skills before ever actually getting the role. Try to approach each new project as if you were leading the team responsible for it. Think more strategically and consider the broader business objectives versus just the details of the tasks at hand. Your manager will start to notice this shift in your mindset and it will become clear that you’re ready to seamlessly take on the new responsibilities. HOW is the manager’s job changing? In today’s world, managers are dealing with global economic and politi- LO1.4 cal uncertainties, changing workplaces, ethical issues, security threats, and changing technology. For example, as annual sales surge past 500,000 vehicles, a major challenge for Jaguar Land Rover is staffing its UK assembly plants to meet demand. The Halewood plant near Liverpool has tripled its workforce during the past six years and is always seeking qualified employees. To attract a large and diverse pool of job candidates, managers created apprenticeships for recent graduates. They also launched “Young Women in the Know,” a program in which Jaguar Land Rover’s women engineers and managers conducted factory tours to get girls and women interested in manufacturing. At the same time, these managers are facing decisions in an uncertain environment now that the United Kingdom has voted to exit the European Union.37 It’s likely that more managers will have to manage under such demanding circumstances, and the fact is that how managers manage is changing. Exhibit 1-8 shows some of the most important changes facing managers. Throughout the rest of this text, we’ll discuss these and other changes and how they affect the way managers plan, organize, lead, and control. We want to focus on six of these changes: customers, technology, social media, innovation, sustainability, and the employee. Focus on the Customer John Legere, CEO of T-Mobile, likes to listen to customers. “My business philosophy is listen to your employees, listen to your customers. Shut up and do what they tell you. And each of our Un-carrier moves and the way I run my company is completely aligned with that.”38 This manager understands the importance of customers and clearly be- lieves that focusing on customers is essential to success. Without them, most organiza- tions would cease to exist. Yet, focusing on the customer has long been thought to be the responsibility of marketing types. “Let the marketers worry about the customers” is M01_ROBB5839_14_GE_C01.indd 49 07/06/17 5:37 pm  50 Part 1 Introduction to Management Exhibit 1-8 Change Impact of Change Changes Facing Managers Shifting organizational boundaries Virtual workplaces More mobile workforce Changing Technology (Digitization) Flexible work arrangements Empowered employees Work life–personal life balance Social media challenges Redefined values Rebuilding trust Increased Emphasis on Organizational and Managerial Ethics Increased accountability Sustainability Customer service Innovation Increased Competitiveness Globalization Efficiency/productivity Risk management Uncertainty over future energy sources/prices Restructured workplace Changing Security Threats Discrimination concerns Globalization concerns Employee assistance Uncertainty over economic climate how many managers felt. That sentiment is out of date. At Banana Republic, the cus- tomer experience manager position is responsible for ensuring that customers enjoy a high-quality in-store experience. This manager is also responsible for staffing and train- ing as well as supporting the implementation of product placement, marketing, and promotional strategies.39 We’re discovering, however, that employee attitudes and behaviors play a big role in customer satisfaction and a return on investment. The J.D. Power 2015 North American Airline Satisfaction Study supports this idea. According to J.D. Power’s global travel and hospitality practice leader, Rich Garelick, building customer satisfaction creates “better customer ad- vocates for the airline.”40 Successful airlines such as Alaska Airlines and Jet Blue Airways treat passengers well by putting forward friend- ly announcements to inform them on the ground or in the air about flight status and offering amenities such as in-flight entertainment. Today, the majority of employees in developed countries work in service jobs. For instance, almost 80 percent of the U.S. labor force is employed in service industries.41 In Australia, 75 percent work in service industries, and in Canada, 76 percent do. In the With the growing popularity of tourism in the United Kingdom, Germany, and Japan, the percentages are 83, 74, and 71, respec- Dominican Republic, a large percentage of the tively. Even in developing countries such as Colombia, Dominican Republic, Viet- labor force works in service jobs for resorts, nam, and Bangladesh, we find 62 percent, 65 percent, 31 percent, and 40 percent of attractions, and tourist-related activities such as the aerobics instructor shown here leading the labor force employed in service jobs.42 Examples of service jobs include technical a class on the beach for tourists. To succeed in support representatives, food servers or fast-food counter workers, sales clerks, cus- the service industry, managers must create a todians and housekeepers, teachers, nurses, computer repair technicians, front-desk customer-responsive organization. clerks, consultants, purchasing agents, credit representatives, financial planners, and Source: Ellen McKnight/Alamy M01_ROBB5839_14_GE_C01.indd 50 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 51 bank tellers. The odds are pretty good that when you graduate, you’ll go to work for a company that’s in a service industry, not in manufacturing or agriculture. Managers are recognizing that delivering consistent, high-quality customer service is essential for survival and success in today’s competitive environment. Good cus- tomer care pays off. A recent study found that nearly all customers (92%) whose issue was resolved during first contact with customer service would likely continue using the company.43 That number drops to about half (51%) for customers whose issue was not resolved during first contact. Employees are an important part of that equation.44 The implication is clear: managers must create a customer-responsive organization where employees are friendly and courteous, accessible, knowledgeable, prompt in respond- ing to customer needs, and willing to do what’s necessary to please the customer.45 We’ll look at customer service management in other chapters. If your professor has assigned this, go to www.mymanagementlab.com to watch a video titled Zane’s Cycles: The Management Environment and to respond to questions. Watch It 1! Focus on Technology Managers increasingly face challenges in their work because technology has been changing how things get done. Cloud computing, social media, and robotics are ex- amples of technology. Getting employees on board presents a challenge to many man- agers. Managers must work with employees to understand why new technology is an improvement over present ways of conducting business. According to Didier Bonnet, coauthor of Leading Challenge, “The job of a manager is to help people cross the bridge—to get them comfortable with the technology, to get them using it, and to help them understand how it makes their lives better.”46 It is a myth that social skills have become less important because there is more tech- nology in the workplace. Take robotic technology. Software programming can systemize human decision making and physical tasks, which can be carried out by machinery. How- ever, technological advances have fallen short of replicating human interactions and tech- nology falls short of substituting human judgment. Particularly in team settings, workers rely on each other’s expertise, and they are able to adapt to changing circumstances than is made possible by software.47 As a result, managers are continually challenged to over- see team building and problem solving. Management expert Henry Mintzberg, however, warns that “wonderful as they are in enhancing communication, [technological devices] can have a negative effect on collaboration unless they are carefully managed. An elec- tronic device puts us in touch with a keyboard, that’s all.”48 Therein lies a significant chal- lenge for managers. Social media technology adds further challenges to the mix. Focus on Social Media You probably can’t imagine a time when employees did their work without smart de- vices, e-mail, or Internet access. Yet, some 25 years ago, as these tools were becoming more common in workplaces, managers struggled with the challenges of providing guidelines for using the Internet and e-mail in their organizations. Today, the new fron- tier is social media, forms of electronic communication through which users create social media online communities to share ideas, information, personal messages, and other content. Forms of electronic communication through which users create online And employees don’t just use these on their personal time, but also for work purposes. communities to share ideas, information, That’s why managers need to understand and manage the power and peril of social media. personal messages, and other content For instance, all 143,000 workers in the Singapore Civil Service are being encouraged to use a workplace chat function provided by Facebook for internal conversations. The idea is to reduce reliance on email and instead enable real-time collaboration among employees.49 More businesses are turning to social media as a way to connect with customers. Increasingly, many companies encourage employees to use social media to become employee activists. For this purpose, employee activists draw visibility to their workplace, defend their employers from criticism, and serve as advocates, both online and off.50 M01_ROBB5839_14_GE_C01.indd 51 30/06/17 11:41 am  52 Part 1 Introduction to Management But the potential peril is in how it’s used. CEO of Berkshire Hathaway, Warren Buf- fet, has said that, “It takes 20 years to build a reputation and five minutes to ruin it.”51 Internally, social media also becomes problematic when it becomes a way for boastful em- ployees to brag about their accomplishments, for managers to publish one-way messages to employees, or for employees to argue or gripe about something or someone they don’t like at work—then it has lost its usefulness. To avoid this, managers need to remember that social media is a tool that needs to be managed to be beneficial. At SuperValu, about 9,000 store managers and assistant managers use the social media system. Although sources say it’s too early to draw any conclusions, it appears that managers who actively make use of the system are having better store sales revenues than those who don’t. In the remainder of the book, we’ll look at how social media is impacting how managers manage, especially in the areas of human resource management, commu- nication, teams, and strategy. For example, a particular question is whether human resource managers should use social media to screen potential employees. If your professor has assigned this, go to www.mymanagementlab.com to watch a video Watch It 2! titled CH2M Hill: Emotions and Moods and to respond to questions. Focus on Innovation Success in business today demands innovation. Innovation means exploring new terri- tory, taking risks, and doing things differently. And innovation isn’t just for high-tech or other technologically sophisticated organizations. Innovative efforts can be found in all types of organizations. For instance, the manager of the Best Buy store in Manchester, Connecticut, clearly understood the importance of being innovative, a task made par- ticularly challenging because the average Best Buy store is often staffed by young adults in their first or second jobs who aren’t always committed long term to a retail career. Yet, the increasingly sophisticated products carried by the store required a high level of em- ployee training. The store manager tackled this challenge by getting employees to sug- gest new ideas. One idea—a “team close,” in which employees scheduled to work at the store’s closing time closed the store together and walked out together as a team—had a remarkable impact on employee attitudes and commitment.53 As you’ll see throughout the book, innovation is critical throughout all levels and parts of an organization. It’s so LEADER making a critical to today’s organizations and managers that we also address this topic in other chapters. DIFFERENCE Focus on Sustainability Ursula Burns is the first African American woman to Microsoft Corporation generated $93.6 bil- lead a company the size of Xerox.52 Appointed to the lion in software sales and $12.1 billion in CEO position in 2009, Burns is known for her cour- profits, and it had a workforce of 118,000 in age to “tell the truth in ugly times.” Having grown 2015. We all know Microsoft for its develop- up in the projects on the Lower East Side of New ment and sales of software such as Windows, York, Burns understands what it takes to get through Skype, and Xbox Live. And Microsoft is probably the last company that you’d think those uncertainties. With her aptitude for math, Burns went on to earn about in a section describing sustainability. a mechanical engineering degree from Polytechnic Institute of New However, Microsoft invests in a variety of York. After a summer engineering internship at Xerox, she was hooked. sustainability projects. Management funds Source: Jemal Countess/Getty Images At Xerox, Burns was mentored by individuals who saw her potential. these projects through taxes levied on its Entertainment/Gettyimages.com Throughout her more than 30-year career at Xerox, Burns had a reputa- business units’ energy consumption that tion for being bold. As a mechanical engineer, she got noticed because contributes to environmentally unfriendly she wasn’t afraid to speak up bluntly in a culture that’s known more carbon emissions. The responsibility for sav- for being polite, courteous, and discreet than for being outspoken. Al- ings falls on division managers. Microsoft’s though Burns is still radically honest and direct, she has become more efforts have paid off. In a recent three-year of a listener, calling herself a “listener-in-chief.” What can you learn period, the company has reduced its emis- sions by 7.5 metric tons of carbon dioxide.54 from this leader making a difference? According to the U.S. Environmental M01_ROBB5839_14_GE_C01.indd 52 07/06/17 5:37 pm  Chapter 1 Managers and You in the Workplace 53 Protection Agency, this level of emissions is the equivalent of removing more than 1.5 million cars from the road for a year.”55 This corporate action affirms that sustainability and green management have become mainstream issues for managers. What’s emerging in the twenty-first century is the concept of managing in a sustainable way, which has had the effect of widening corporate responsibility not only to managing in an efficient and effective way, but also to responding strategically to a wide range of environ- mental and societal challenges.56 Although “sustainability” means different things to differ- ent people, the World Business Council for Sustainable Development describes a situation where all the earth’s inhabitants can live well with adequate resources.57 From a business perspective, sustainability has been described as a company’s ability to achieve its business sustainability goals and increase long-term shareholder value by integrating economic, environmental, A company’s ability to achieve its business goals and increase long- and social opportunities into its business strategies.58 Sustainability issues are now moving term shareholder value by integrating up the agenda of business leaders and the boards of thousands of companies. We’ll exam- economic, environmental, and social ine sustainability and its importance to managers in other places throughout the book. opportunities into its business strategies Focus on the Employee In 2015, more than 75 percent of organizations worldwide indicated that they would follow a strategy of building talent from within their organizations rather than recruit- ing talent from the external labor force.59 Also, progressive companies recognize the importance of treating employees well not only because it’s simply the right thing to do, but also because it is good business. Well-treated employees are more likely to go the extra mile when performing their jobs. Every year, Fortune magazine publishes the list titled Great Places to Work. In 2015, outdoor retailer L.L. Bean was among the top 10 retail companies, and it ranked first for an outdoor retailer. L.L. Bean president and CEO Chris McCormick maintai