Ch. 1: Introduction to principles of management: All you to know

Management is defined as the art of getting things done through the effort of other people. Principles of management involve all means that are used to manage done by others, whether as a group or in organizations.

The manager uses empowerment to enable an individual to behave and take action in autonomous ways.

Importance of studying management – Management is universal, work is real, and there are significant rewards to being a manager.

Types of managers

  1. Line manager leads the function that directly contributes to the production of goods and services
  2. The general manager is responsible for managing a specific revenue-producing unit in an organization
  3. Staff manager is involved in units that create indirect products
  4. The project manager is responsible for planning, controlling, and closure of the project.

The two general types of management are traditional management and contemporary management.

  1. Traditional management – The organization has top-level managers who are responsible for formulating the direction of the organization, controlling the lower-level management to implement the strategy with loyalty and obedience
  1. Contemporary management – The lower-level managers are empowered and the employees participate in the competitiveness of the organizations. The top-level managers support employees to ensure their employability.

Leadership entails the social and informal sources of influence that a manager uses to inspire action in the workplace

Entrepreneurship is defined as the ability to recognize opportunities, come up with resources and innovative ideas that are thoughtfully planned.

Every organization must have a strategy both long-term and short-term oriented. A strategy is an integrated externally-oriented concept that details how the organization’s objectives will be met. Strategic management involves coming up with solutions regarding the development and implementation of such strategies.

Management functions (POLC framework)

  1. Planning – This includes the vision statement, strategizing, and goals and objectives of the organization
  2. Organizing – This includes the culture, social networks, and organizational design
  3. Leading – This encompasses leadership and decision making, motivating the employees in the workplace, communications within and without the organization as well as managing and creating groups and teams.
  4. Controlling – This involves systems and processes within the organization as well as the strategic human resources. The three steps of controlling are establishing performance standards, comparing output with established standards or minimum requirements, and lastly taking measures to correct errors when necessary.

The three types of planning in an organization are tactical planning, strategic planning, and operational planning

  1. Strategic planning analyzes the position of the organization in terms of strengths and weaknesses while identifying opportunities to strengthen its position
  1. Tactical planning takes one to three years and is designed to come up with concrete means of implementing the strategy to develop in strategic planning
  1. Operational planning provides ways to achieve long-term objectives of the whole organization

Job design vs job enrichment

Job design refers to the process of joining together different elements of a job while job enrichment involves redesigning employee roles to offer more control over how they perform tasks on their own.  An example of job enrichment is when a subordinate is given a managerial role during the weekend.

Organization stakeholders

Stakeholders are defined as individuals, entities, or groups actively involved in the interests of the organization and are affected directly by what the organization does. They include shareholders, the government, employees, creditors, etc.

Organization corporate social responsibility (CSR)

Corporate social responsibility refers to the processes and means by which the organizations prioritize the stakeholders in activities either directly or indirectly. Corporate social responsibility offers several benefits to the organization including building customer loyalty, a better brand reputation, increasing sales, etc.

The three groups of managerial roles are interpersonal, informational, and decisional

  1. Interpersonal roles are those of leader and liaison with feedback from both decision and information groups. The interpersonal group offers information to both decisional and informational group of roles
  1. The information group of roles includes monitoring, dissemination, and spokesperson. This group gives the interpersonal group the necessary information and then processes the feedback given.
  1. The decision group contains the roles of an entrepreneur, disturbance handler, and the negotiator. This group uses information received from the interpersonal group.

Reasons why managers are important to the organization

  • Managers help to deal with challenges and chaotic times in the organization and developing effective plans to deal with such challenges
  • Managers help provide employees with jobs, and the employer with employees who meet the needs and requirement of the job
  • Managers are directly involved in improving the productivity of the organization as they oversee production activities

There are three ways managers influence action within an organization

  • They manage actions directly for example when negotiating contracts with third parties
  • They are involved in managing people who take action for example building teams
  • Managers manage the necessary information that is used to propel action for example budgets

According to Robert Katz, managers need three crucial skills to perform: Technical skills, human skills, and conceptual skills

  1. Human skills – The ability to deal with individuals or group of people and get the best from them
  1. Conceptual skills – Mostly required for top managers as it involves the ability to recognize problems and opportunities and offer effective solutions
  1. Technical skills – Specific knowledge and experience required to perform a particular task, which is common for lower-level managers or the first-line managers

Current trends in management include globalization, ethics, entrepreneurship, knowledge management, and quality management

There are six management theories namely scientific, general administrative theorists, quantitative approach, organization behavior, systems approach, and contingency.



  • The process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous (self-governing) ways.

Top manager

  • Manager responsible for developing the organization’s strategy and being a steward for its vision and mission.

Functional manager

  • Manager responsible for the efficiency and effectiveness of an area, ex. Accounting or marketing.

Team manager

  • Also known as Supervisory manager-Manager responsible for coordinating a subgroup of a particular function or a team composed of members from different parts of the organization.

Line manager

  • Manager that leads a function that contributes directly to the products or services the organization creates. Also known as Products or Service manager. Ex. Managers of production, marketing and profitability

Staff manager

  • Manager that leads a function to create indirect inputs. Ex. Finance or accounting managers

Project manager

  • Manager with the responsibility for the planning, execution and closing of any project

General manager

  • Manager responsible for managing a clearly identifiable revenue-producing unit such as a store, business unit or product line. Take direction from TOP executives.

Interpersonal, Informational, and Decisional

The 3 groups of managerial roles


  • The group which contains the roles of Figurehead, Leader and Liaison. Feedback from Informational and Decisional groups head to this group, which then provides information to the Informational and Decisional groups.


  • The group which contains the roles of Monitor, Disseminator, and Spokesperson. Sends feedback to the Interpersonal group, and processes the information sent down from the Interpersonal group.


  • The group which contains the roles of Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator. Sends feedback to the Interpersonal group, and uses the information from the Interpersonal group.

Strategic planning

  • Type of planning that involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. LONG TIME FRAME 3years+. TOP MANAGEMENT often conducts.

Tactical planning

  • Type of planning is in INTERMEDIATE range (1-3years). Designed to develop relatively concrete and specific means to implement the strategic plan. MIDDLE- LEVEL manager often conduct.

Operational planning

  • Type of planning that assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve the. Often SHORT time frame (less than a year), meant to develop specific action steps that support the strategic and tactical plans.

3 Steps of Controlling

  • Establishing performance standards
  • Comparing actual performance against standards
  • Taking corrective action when necessary

Types of Managers

  • Top- always thinking about 3-5 years into the future & they influence everybody below them in the company…CEO, President
  • Middle- set objectives for implementing top manager’s vision. Come up with strategies, coordinate and link the company
  • First-line managers: supervisors, largely responsible for monitoring entry-level employees. Usually thinking 2-3 weeks into the future

Functions of Management

Four Functions

  • Planning- setting goals and deciding on action, developing rules and procedures, developing budgets and plans
  • Organizing- Identifying jobs to be done, hiring people to do them, establishing departments, establishing chain of command, delegating
  • Leading- Influencing others to get the job done, maintaining morale, molding company culture, managing conflicts and communication
  • Controlling- setting standards, comparing performance with standards, taking corrective action

Two main differences across types of managers (primarily lecture)

  • time horizon
  • scope of influence or number of people they influence with their decision

Mintzberg’s 3 main managerial roles [text only, sec. 1-4a, b, c; ex. 1.3;pp.10-14]


  • -figurehead- companies are ceremonial leaders. Representing at a luncheon
  • -leader- motivate and encourage workers to accomplish organizational objectives
  • -liason- deal with people outside of their units. Ex. sitting in on a company’s board


  • -monitor- scan their environment
  • -disseminator- share info they have collected with subordinates
  • -spokesperson- share info. with people outside of their departments


  • -entrepreneur- adapting to change
  • -disturbance handler- respond to immediate issues
  • -resource allocator- decide who will get what resources and how many resources they will get
  • -negotiator- negotiate schedules, projects, goals, outcomes

Motivation to manage [text, end of sec 1.5,p.15]

  • an assessment of how motivated employees are to interact with superiors, participate in competitive situations, behave assertively towards others, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks

Top 3 (of 10) mistakes managers make [text, ex. 1.5 p.16]

  • Insensitive to others; abrasive, intimidating, bullying style
  • Cold, aloof, arrogant
  • Betrays trust

Key characteristics of “stars” (Webber article)

  • -4 elements of initiative
  • -3 rules of initiative
  • -How they network (economics of networking)
  • Elements of initiative: doing something above and beyond your job description. Helping other people. Risk-taking. Seeing an activity through completion.
  • Rules of initiative: 1. Before taking on anything new, make sure you are doing your assigned job well.
  • Social incentives don’t count for much
  • The initiatives that matter to your career are those that relate to the company’s critical path.

How they network: they use networks to multiply their productivity

  • start by recognizing what you don’t know but need to know. Then figure out who can supply that knowledge – and cultivate relationships with those people
  • economics of networking: stars understand that networking is a barter system. If you expect people to trade with you, you have to establish that you have something worth trading. You start with a negative trade balance and it takes time to build up credits

Norms – how to set and maintain (lecture)

What creates norms?

  • -formal written agreements made early in team formation
  • -team manager’s repeated activities
  • -team’s responses to critical events

Groupthink and minority domination (text, p. 205)

  • groupthink- members of highly cohesive groups feel intense pressure not to disagree with each other so that the group can approve a proposed solution.
  • minority domination- just one or two people dominate team discussions, restricting consideration of different problem definitions and alternative solutions

Work-team characteristics (section 10-3 headings and key points; pp.210-215)

  • -team norms
  • -team cohesiveness- the extent to which team members are attracted to a team and motivated to remain in it….to improve: make sure all team members are present at team meetings and activities, create additional opportunities for teammates to work together, engage in non-work activities as a team
  • -team size
  • -team conflict: the key to team conflict is not avoiding it, but rather making sure that the team experiences the right kind of conflict….c conflict, a conflict.

What can be done to manage team conflict?

  • emphasizing cognitive conflict alone won’t be enough
  • work with more, rather than less information
  • develop multiple alternatives to enrich debate
  • establish common goals
  • Inject humor into the workplace
  • maintain a balance of power by involving as many people as possible in the decision making process
  • resolve issues without forcing a consensus

-Stages of team development: forming, storming, norming, and performing. Can also go through de-norming, de-storming, and de-forming

Enhancing work-team effectiveness (section 10-4 headings and key points; pp.215-220)

  • -setting team goals and priorities, stretch goals- extremely ambitious goals that workers don’t know how to reach

Four things must occur for stretch goals to motivate teams:

  • teams must have a high degree of autonomy over how they achieve their goals
  • teams must be empowered with control of resources
  • teams need structural accommodation – giving teams the ability to change organizational structures, policies, and practices if doing so helps them meet their stretch goals.
  • teams need bureaucratic immunity- team don’t have to go through the long process of multilevel reviews and sign offs/management approval before making changes

-Selecting People for Teamwork

Characteristics of good team meetings (lecture)

  • -have a written agenda
  • -start and end on time
  • -begin with a review
  • -have clear ground rules for decision making
  • -include time for question and debate
  • -encourage equal participation
  • -end with summary of who is doing what, when

Maximizing benefits of diversity (lecture)

  • Get to know one another’s background, create time/space for questions to clarify meaning assume the best intentions

Stages of Moral Development (lecture & text)

  • Preconventional: stage 1: avoid punishment for yourself
  • stage 2: maintain exchange relationships…worrying less about punishment and more about advancing your wants/needs
  • Conventional: stage 3: earn the approval of others
  • stage..doing what everyone else is doing 4: follow rules and laws
  • Principled: stage 5: protect individual’s rights
  • stage 6: follow universal principles

Types of deviance (text, ex 4.1, pg. 70)

  • production deviance- hurts the quality and quantity of work produced. leaving early, taking excessive breaks, intentionally working slowly, wasting resources
  • property deviance- unethical behavior aimed at company property or products. sabotaging equipment, accepting kickbacks, lying about hours worked, stealing from company
  • political deviance- using one’s influence to harm others in the company. showing favoritism, gossiping about coworkers, blaming coworkers, competing non beneficially
  • personal aggression- hostile or aggressive behavior towards others. sexual harassment, verbal abuse, stealing from coworkers, endangering coworkers

State the 6 factors of ethical intensity (text sec 4-3a, pp.74-75)

  • magnitude consequence- the total harm or benefit derived from an ethical decision
  • social consensus- agreement on whether behavior is bad or good
  • probability of effect- he change that something will happen that results in harm to others
  • temporal immediacy- the time between an act and the consequences the act produces
  • proximity of effect- social, psychological, cultural, or physical distance of a decision maker form those affected by his or her decisions
  • concentration of effect- how much an act affects the average person
  • 6 stages of moral development (ex 4.5; sec. 4-3b, pp. 75-76)
  • Preconventional stage:
  • punishment and obedience- avoid trouble for yourself
  • instrumental exchange- worry less about punishment and more about doing things that directly advance your wants and needs
  • Conventional stage:
  • good boy, nice girl- you do what everyone else is doing
  • law and order- do whatever the law permits
  • Postconventional stage:
  • social contract- concerned with the rights of society as a whole
  • universal principle- may or may not depending on your principles of right or wrong

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