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									CHAPTER 1
MANAGING IN A DYNAMIC ENVIRONMENT

LEARNING OBJECTIVES
After studying this chapter, you should be able to:

1        Define managers and management.

2        Explain what managers do.

3        Describe the competencies used in managerial work and assess your current
           competency levels.


OUTLINE

1        Define managers and management.
      I.   Managers and Management
           1. Managerial Competencies—sets of knowledge, skills, behaviors, and attitudes
              that a person needs to be effective in a wide range of managerial jobs and various
              types of organizations.
               a. Competency—refers to combinations of knowledge, skills, behaviors, and
                  attitudes that contribute to personal effectiveness.
               b. The six key managerial competencies are: communication, planning and
                  administration, teamwork, strategic action, global awareness, and self-
                  management.
           2. Organization—a coordinated group of people who function to achieve a
              particular goal.
               a. Effective managers must pay attention to what goes on both inside and
                  outside their organizations.
               b. All organizations strive to achieve specific goals, but they don’t all have the
                  same goals.
               c. Regardless of an organization’s specific goals, the job of managers is to help
                  the organization achieve those goals.




                                                1
2                                       Chapter 1: Managing in a Dynamic Environment


    3. Manager—a person who plans, organizes, directs, and controls the allocation of
       human, material, financial, and information resources in pursuit of the
       organization’s goals.
       a. The many different types of managers include: department managers, product
          managers, account managers, plant managers, division managers, district
          managers, and task force managers.
       b. What all managers have in common is responsibility for the efforts of a group
          of people who share a goal and access to resources that the group can use in
          pursuing its goal.
       c. You don’t have to be called a manager to be a manager; some managers have
          unique and creative titles, such as chief knowledge officer (a person in charge
          of training and development) and chief information officer (a person in
          charge of information systems).
       d. Most employees contribute to organizations through their own individual
          work, not by directing other employees.
       e. The difference between managers and individual contributors is that
          managers are evaluated on how well the people they direct do their jobs.
    4. Management—the tasks or activities involved in managing an organization:
       planning, organizing, leading, and controlling.
       a. The scope of activities performed by functional managers is relatively narrow,
          whereas the scope of activities performed by general managers is quite broad.
       b. Functional Managers—supervise employees having expertise in one area,
          such as accounting, human resources, sales, finance, marketing, or
          production.
           1. Functional managers have a great deal of experience and technical
              expertise in the areas of operation they supervise.
           2. Their success as managers is due in part to the detailed knowledge they
              have about the work being done by the people they supervise, the
              problems those people are likely to face, and the resources they need to
              perform well.
       c. General Managers—are responsible for the operations of a more complex
          unit, such as a company or a division.
           1. They usually oversee the work of functional managers.
           2. General managers must have a broad range of well-developed
              competencies to do their jobs well.
Chapter 1: Managing in a Dynamic Environment                                                3




2       Explain what managers do.
     II. What Managers Do
          1. The amount of time a manager spends on each functions depends on their
             particular job.
             2. General Managerial Functions—what managers do—the functions they
             perform.
             a. Planning—involves determining organizational goals and means to reach
                them.
                    1. To establish an overall direction for the organization’s future.
                    2. To identify an commit the organization’s resources to achieving its
                       goals.
                    3. To decide which tasks must be done to reach those goals.
             b. Organizing—the process of deciding where decisions will be made, who will
                perform what jobs and tasks, and who will report to whom in the company.
                 1. By organizing effectively, managers can better coordinate human,
                    material, and information resources.
             c. Leading—involves communicating with and motivating others to perform the
                tasks necessary to achieve the organization’s goals.
                 1. Leading isn’t done only after planning and organizing end; it is a crucial
                    element of those functions.
             d. Controlling—the process by which a person, group, or organization
                consciously monitors performance and takes corrective action.
                 1. The control process includes the following steps: set standards of
                    performance, measure current performance against those standards, take
                    corrective action to correct any deviations, and adjust the standards if
                    necessary.
          3. Levels of Management—how managers are classified within an organization.
             a. A small organization usually has only one level of management—often the
                founder or the owner or an executive director.
             b. First-Line Managers—directly responsible for the production of goods or
                services.
                 Examples: sales managers, section heads, production supervisors.
                 1. Employees who report to first-line managers do the organization’s basic
                    production work—whether of goods or of services.
                 2. This level of management is the link between the operations of each
                    department and the rest of the organization.
4                                   Chapter 1: Managing in a Dynamic Environment


       3. First-line managers spend little time with higher management or with
          people from other organizations.
       4. First-line managers spend most of their time with the people they
          supervise and with other first-line managers.
       5. First-line managers spend relatively little time planning and organizing;
          most of their time is spent leading and controlling.
       6. First-line managers usually need strong technical expertise to teach
          subordinates and supervise their day-to-day tasks.
    c. Middle Managers—responsible for setting objectives that are consistent with
       top management’s goals and translating them into specific goals and plans for
       first-line managers to implement.
       Examples: department heads, plant managers, directors of finance.
       1. Responsible for directing and coordinating the activities of first-line
          managers and nonmanagerial personnel.
       2. These managers review the work plans of various groups, help them set
          priorities, and negotiate and coordinate their activities.
       3. Middle managers are involved in establishing target dates for products or
          services to be completed; developing evaluation criteria for performance;
          deciding which projects should be given money, personnel, and materials;
          and translating top management’s general goals into specific operational
          plans, schedules, and procedures.
       4. Middle managers carry out top management’s directions primarily by
          delegating authority and by coordinating schedules and resources with
          their managers.
       5. Middle managers must be adept at developing their subordinates, opening
          lines of communication for them, and making them visible to other
          middle managers and to top managers.
    c. Top Managers—responsible for the overall direction and operation of an
       organization.
       Examples: chief executive officer, president, division president, executive
       vice-president.
       1. Top managers develop goals, policies, and strategies for the entire
          organization.
       2. They set the goals that are handed down through the hierarchy, eventually
          reaching each worker.
       3. They represent their organizations in community affairs, business deals,
          and government negotiations.
       4. Top managers spend over 75 percent of their day planning and leading;
          they spend little time directly controlling the work of others.
Chapter 1: Managing in a Dynamic Environment                                                   5


                 5. Top managers spend most of their leading time with key people and
                    organizations outside their own organizations; and they must respond to
                    crises that create image problems for their organization.


3        Describe the competencies used in managerial work and assess your current
           competency levels.
    III.   Managerial Competencies
           1. Communication Competency—refers to the effective transfer and exchange of
              information that leads to understanding between yourself and others.
              a. Communication competency includes informal communication, formal
                 communication, and negotiation.
              b. Besides speaking and writing, communication involves listening, observing
                 body language, and picking up on the subtle cues that people sometimes use
                 to modify the meaning of their words.
              c. Communication is the most fundamental competency; unless you can express
                 yourself and understand others in written, oral, and nonverbal
                 communication, you can’t use the other competencies effectively to
                 accomplish tasks through other people.
              d. Through frequent informal communication, managers in all countries lay the
                 groundwork for collaboration within and outside their organizations.
              e. Formal communications, such as newsletters, often are used to inform people
                 of relevant events and activities and to keep people up to date on the status of
                 ongoing projects.
              f. Formal communication can also take place at a more personal level, as during
                 conversations with suppliers and clients.
           2. Planning and Administration Competency—involves deciding what tasks need
              to be done, determining how they can be done, allocating resources to enable
              them to be done, and then monitoring progress to ensure that they are done.
              a. The planning and administration competency includes: information gathering,
                 analysis, and problem solving; planning and organizing projects; time
                 management; and budgeting and financial management.
              b. Planning and organizing projects usually means working with employees to
                 clarify broad objectives, discuss resource allocations, and agree to completion
                 dates.
           3. Teamwork Competency—accomplishing tasks through small groups of people
              who are collectively responsible and whose job requires coordination.
              a. Managers in companies that utilize teams can become more effective by
                 designing teams properly, creating a supportive team environment, and
                 managing team dynamics appropriately.
6                                        Chapter 1: Managing in a Dynamic Environment


       b. Teamwork involves taking the lead at times, supporting others who are taking
          the lead at other times, and collaborating with others in the organization on
          projects that don’t even have a designated team leader.
       c. Team design involves formulating goals to be achieved, defining tasks to be
          done, and identifying the staffing needs to accomplish those tasks.
       d. All members of a team should have the competencies needed to create a
          supportive environment where team members are empowered to take actions
          based on their best judgment, without always seeking approval first from the
          team leader or project manager.
       e. Managing team dynamics is necessary for effective teamwork. This includes
          understanding the strengths and weaknesses of team members and using
          conflict and dissent to enhance the quality of decisions.
    4. Strategic Action Competency—understanding the overall mission and values of
       the company and ensuring that employers’ actions match with them.
       a. Strategic action competency includes: understanding             the   industry,
          understanding the organization, and taking strategic action.
       b. Managers need to see their organization as a system of interrelated parts that
          include understanding how departments, functions, and divisions relate to one
          another and how a change in one can affect others.
    5. Global Awareness Competency—performing managerial work for an
       organization that utilizes human, financial, informational, and material resources
       from multiple countries and serves markets that span multiple cultures.
       a. This competency includes cultural knowledge and understanding, and cultural
          openness and sensitivity.
       b. Because business is becoming global, many managers are now expected to
          develop a knowledge and an understanding of at least a few other cultures.
       c. Openness and sensitivity involve recognizing that culture makes a difference
          in how people think and act. You can’t assume that everyone will think and
          act like you.
       c. An open attitude about cultural differences and a sensitivity to them are
          especially important for anyone who must operate across cultural boundaries.
    6. Self-Management Competency—taking responsibility for your life at work and
       beyond.
       a. Self-management competency includes: integrity and ethical conduct,
          personal drive and resilience, balancing work/life issues, and self-awareness
          and development.
       b. Self-awareness and development includes both task-related learning and
          learning about yourself.
Chapter 1: Managing in a Dynamic Environment                                                           7


               c. Research shows that people who take advantage of the development and
                  training opportunities that employers offer learn much from them and
                  advance more quickly than those who don’t take advantage of them.
               d. A derailed manager is one who has moved into a position of managerial
                  responsibility but has little chance of future advancement or gaining new
                  responsibilities because of failure to develop competencies.

MATCHING
Directions: Select the term that best identifies the statement listed below. Place the letter of the
correct term in the space provided.

A.   Teamwork Competency                       K. General Manager
B.   Organization                              L. Supportive Environment
C.   Leading                                   M. Global Awareness Competency
D.   Derailed Manager                          N. Top Manager
E.   Organizing                                O. Openness and Sensitivity
F.   Management                                P. Strategic Action Competency
G.   Controlling                               Q. Planning
H.   Middle Manager                            R. Functional Manager
I.   Formal Communication                      S. Managerial Competencies
J.   Communication Competency                  T. First-Line Manager
____     1.   Is your ability to transfer and exchange effectively information that leads to
              understanding between yourself and others.
____     2.   Manager who is responsible for the overall direction and operations of an
              organization.
____     3.   Accomplishing outcomes through small groups of people who are collectively
              responsible and whose work requires coordination.
____     4.   Involves recognizing that culture makes a difference in how people think and act
              and actively considering how another culture might differ from your own.
____     5.   Tasks involve setting objectives that are consistent with top management’s goals
              and translating them into specific goals for lower managers to implement.
____     6.   Any structured group of people brought together to achieve certain goals that the
              same individual could not reach alone.
____     7.   Manager who supervises employees having specialized skills in a single area of
              operation.
____     8.   This involves deciding where decisions will be made, who will perform what job
              and tasks, and who will report to whom in the company.
____     9.   Manager directly responsible for the production of goods or services.
____ 10.      The process by which a person, group, or organization consciously monitors
              performance and takes corrective action.
8                                               Chapter 1: Managing in a Dynamic Environment


____   11.   This is where all team members are empowered to take actions based on their best
             judgement, without always seeking approval first from the team leader or project
             manager.
____   12.   Planning, organizing, leading, and controlling the people working in an
             organization and the ongoing set of tasks and activities they perform.
____   13.   Performing managerial work for an organization that utilizes human, financial,
             informational, and material resources from multiple countries and serves markets
             that span multiple cultures.
____   14.   The managerial function of communicating with and motivating others to perform
             the tasks necessary to achieve the organization’s goals.
____   15.   Manager responsible for the overall operations of a complex unit such as a
             company or a division.
____   16.   Such as a newsletter, is often used to inform people of relevant events and
             activities and to keep people up to date on the status of ongoing projects.
____   17.   Understanding the overall mission and values of the company and ensuring that
             employees’ actions match with them.
____   18.   Determining organizational goals and means to reach them.
____   19.   Is one who has moved into a position of managerial responsibility but has little
             chance of future advancement or gaining new responsibilities.
____   20.   Clusters of knowledge, skills, behaviors, and attitudes that a manager needs to be
             effective in a wide range of managerial jobs and organizations.


TRUE OR FALSE
Directions: Write True or False in the space provided.

1
____    1.   The need for managers to have charisma is one of the key managerial
             competencies.
____    2.   Managers are not found in nonprofit organizations such as hospitals, orchestras,
             and government agencies.
____    3.   An organization is any structured group of people brought together to achieve
             certain goals that the same individuals could not reach alone.
____    4.   Management is the process of planning, organizing, leading, and controlling the
             people working in an organization and the ongoing set of tasks and activities they
             perform.
____    5.   The scope of activities performed by general managers is relatively narrow, and
             general managers have a great deal of experience and technical expertise in the
             areas of operation they supervise.
Chapter 1: Managing in a Dynamic Environment                                                    9



2
____    6.   Planning involves creating a structure by setting up departments and job
             descriptions.
____    7.   Leading is a crucial element of the planning and organizing functions.
____    8.   Karen Zaler is a bakery manager who spends most of her time with the bakery
             employees. She is considered a first-line manager.
____    9.   Doug Relston is a plant manager for the Relston Carpet Manufacturer who spends
             his time reviewing the work plans of various groups, developing evaluation criteria
             for performance, and deciding which projects should be given resources. He is
             considered a top manager.
____ 10.     Top managers spend 25 percent of their day planning and leading.

3
____ 11.     Herb Kelleher, CEO of Southwest Airlines, visits with employees on the job and
             parties with them after hours. He listens to his employees and observes their body
             language; thus he is utilizing the communication competency.
____ 12.     Of the six managerial competencies, teamwork competency is the most
             fundamental.
____ 13.     Time management and problem solving are dimensions of the planning and
             administration competency.
____ 14.     A well-designed team is capable of high performance, but it needs a supportive
             environment to achieve its full potential.
____ 15.     Strategic action competency is a competency that only top managers need to gain.
____ 16.     Managers today are expected to develop a knowledge and an understanding of at
             least a few other cultures.




MULTIPLE CHOICE
Directions: Select the best answer in the space provided.

1
____    1.   All of the following are key managerial competencies except:
             a. teamwork.
             b. self-management.
             c. global awareness.
             d. ethics.
10                                             Chapter 1: Managing in a Dynamic Environment


____   2.   Any structured group of people working together to achieve certain goals that the
            same individuals could not reach alone is a(n) _________.
            a. goal
            b. organization
            c. network group
            d. management team
____   3.   Which of the following job titles typically represents the role of a manager?
            a. coach
            b. stockbroker
            c. chief knowledge officer
            d. a. and c.
____   4.   The head of the payroll department for the Target store in Reston, Virginia, is a
            _________ manager.
            a. network
            b. general
            c. matrix
            d. functional

2
____   5.   The four functions of management are:
            a. scheduling, leading, planning, and organizing.
            b. planning, controlling, employing, and leading.
            c. organizing, planning, controlling, and managing.
            d. organizing, planning, leading, and controlling.
____   6.   _________ is the process of deciding where decisions will be made, who will
            perform what jobs and tasks, and who will report to whom in the company.
            a. Organizing
            b. Planning
            c. Networking
            d. Controlling
____   7.   Which of the following is not a step in the control process?
            a. create more structure
            b. take action to correct deviations
            c. set standards of performance
            d. adjust the standards if necessary
____   8.   John Morson works in the construction industry and supervises the crews for the
            metal framing and wall-building activities and he sometimes operates machinery
            and participates in the building process. John is considered to be a _________
            manager.
            a. first-line
            b. top
            c. general
            d. middle
Chapter 1: Managing in a Dynamic Environment                                                11


____    9.   Which of the following is a false statement regarding first-line managers?
             a. First-line managers in most companies spend little time with higher
                management or with people from other organizations.
             b. First-line managers may be called sales managers, section heads, or production
                supervisors.
             c. First-line managers spend a great deal of time planning and organizing.
             d. First-line managers need strong technical expertise.
____ 10.     _________ managers set objectives that are consistent with top management’s
             goals and translate them into specific goals and plans for first-line managers to
             implement.
             a. General
             b. Middle
             c. Executive
             d. Functional
____ 11.     Margie Miller spends most of her time planning and leading while at work. She is
             considered a _________ manager.
             a. first-line
             b. top
             c. middle
             d. strategic

3
____ 12.     Jack Welch, General Electric’s CEO, believes that to beat competitors and
             maximize the company’s profitability GE must improve quality control. As a
             manager, Jack builds strong interpersonal relationships with a diverse range of
             people and solicits feedback from employees. Nevertheless, Jack recently informed
             his managers that they wouldn’t have a future with the company if they failed to
             produce results. Jack is exhibiting the _________ competency.
             a. strategic action
             b. planning and administration
             c. communication
             d. global awareness

____   13.   Which of the following competencies is typified by managerial negotiation skills?
             a. planning and administration
             b. teamwork
             c. organization
             d. communication
____ 14.     This managerial competency includes: information gathering, time management,
             financial management, and problem solving.
             a. strategic action
             b. planning and administration
             c. organization
12                                               Chapter 1: Managing in a Dynamic Environment


              d. managerial effectiveness
____    15.   Team design involves _________.
              a. formulating goals to be achieved
              b. defining tasks to be done
              c. identifying the staffing needed to accomplish tasks
              d. All of the above.
____    16.   Understanding the overall mission and values of the company and ensuring that
              employee’s actions match with them involves the _________ competency.
              a. global awareness
              b. strategic alliance
              c. strategic action
              d. teamwork
____    17.   An open attitude about cultural differences and a sensitivity to them are important
              for mastering the _________ competency.
              a. global awareness
              b. leadership
              c. multicultural
              d. communication
____    18.   Which of the following statements is true regarding self-management competency?
              a. Companies today are much more concerned with prospective employees’
                 technical skills and aptitude than their integrity.
              b. Research shows that people who take advantage of the development and
                 training opportunities that employers offer learn much from them and advance
                 more quickly.
              c. A derailed manager is one who has little managerial responsibility in a high
                 risk functional area.
              d. Successful managers normally devote all their attention to their careers and
                 neglect their personal lives.


ESSAY QUESTIONS

1
 1.    Explain the difference between functional and general managers.




2
 2.    Identify and discuss the four basic managerial functions.
Chapter 1: Managing in a Dynamic Environment                                                   13


12
 3.    Define management and managers. Discuss the duties and responsibilities of first-line
       managers, middle managers, and top managers.




13
 4.    Define managerial competencies and explain the six key managerial competencies.




CHAPTER 1
MANAGING IN A DYNAMIC ENVIRONMENT

MATCHING SOLUTIONS
  1.   J   -   Communication Competency
  2.   N   -   Top Manager
  3.   A   -   Teamwork Competency
  4.   O   -   Openness and Sensitivity
  5.   H   -   Middle Manager
  6.   B   -   Organization
  7.   R   -   Functional Manager
  8.   E   -   Organizing
  9.   T   -   First-Line Manager
 10.   G   -   Controlling
 11.   L   -   Supportive Environment
 12.   F   -   Management
 13.   M   -   Global Awareness Competency
 14.   C   -   Leading
 15.   K   -   General Manager
 16.   I   -   Formal Communication
 17.   P   -   Strategic Action Competency
 18.   Q   -   Planning
 19.   D   -   Derailed Manager
 20.   S   -   Managerial Competencies
14                               Chapter 1: Managing in a Dynamic Environment


TRUE/FALSE SOLUTIONS

Question   Answer   Page   Explanation


  1.       False     4–5   Managerial competencies are sets of knowledge,
                           skills, behaviors, and attitudes that a person needs to
                           be effective in a wide range of managerial jobs and
                           various types of organizations. The six key
                           managerial competencies are: communication,
                           planning and administration, teamwork, strategic
                           action, global awareness, and self-management.
  2.       False    5–6    Profit-oriented businesses are one type of
                           organizational setting in which managers are found,
                           but they also are found in organizations such as:
                           hospitals, schools, museums, sports teams, stores,
                           amusement parks, restaurants, orchestras, community
                           clubs and groups, government agencies, and others. A
                           manager is a person who plans, organizes, directs, and
                           controls the allocation of human, material, financial,
                           and information resources in pursuit of the
                           organization’s goals.
  3.       True
  4.       True
  5.       False      8    Functional managers supervise employees having
                           expertise in one area, such as accounting, human
                           resources, sales, finance, marketing, or production.
                           For example, the head of a payroll department is a
                           functional manager. Usually, functional managers
                           have a great deal of experience and technical
                           expertise in the areas of operation they supervise.
                           General managers are responsible for the operations
                           of a more complex unit, such as a company or a
                           division. Usually they oversee the work of functional
                           managers.
  6.       False      9    Planning involves determining organizational goals
                           and means to reach them. Organizing involves
                           creating a structure by setting up departments and job
                           descriptions.
  7.       True
  8.       True
Chapter 1: Managing in a Dynamic Environment                                             15


9.          False     13–14           Middle managers set objectives that are consistent
                                      with top management goals and translate them into
                                      specific goals and plans for first-line managers to
                                      implement. Middle managers typically have titles
                                      such as department head, plant manager, and director
                                      of finance. Middle managers often are involved in
                                      reviewing the work plans of various groups, helping
                                      them set priorities, and negotiating and coordinating
                                      their activities. They are involved in establishing
                                      target dates for products or services to be completed;
                                      developing evaluation criteria for performance;
                                      deciding which projects should be given money,
                                      personnel, and materials; and translating top
                                      management’s general goals into specific operational
                                      plans, schedules, and procedures. Top managers are
                                      responsible for the overall direction of the company.
                                      Typical titles of top managers are chief executive
                                      officer, president, division president, and executive
                                      vice-president.




 10.        False     14              Top managers spend most of their day (over 75
                                      percent) planning and leading. They spend most of
                                      their leading time with key people and organizations
                                      outside their own organization.
 11.        True
 12.        False     15              The six managerial competencies are: communication
                                      competency,       planning      and     administration
                                      competency, teamwork competency, strategic action
                                      competency, global awareness competency, and self-
                                      management competency. They are all important.
                                      However, communication is the most fundamental
                                      because unless you can express yourself and
                                      understand others in written, oral, and nonverbal
                                      communication, you can’t use the other competencies
                                      effectively to accomplish tasks through other people.
 13.        True
 14.        True
16                               Chapter 1: Managing in a Dynamic Environment


 15.       False    21     Strategic action competency involves understanding
                           the overall mission and values of the company and
                           ensuring that employees’ actions match with them.
                           Strategic action competency includes understanding
                           the industry, understanding the organization, and
                           taking strategic action. All managers, but especially
                           top managers, need strategic action competency.
 16.       True




MULTIPLE CHOICE SOLUTIONS

Question   Answer   Page   Explanation


  1.       d        5      Managerial competencies are sets of knowledge,
                           skills, behaviors, and attitudes that a person needs to
                           be effective in a wide range of managerial jobs and
                           various types of organizations. The six key
                           managerial competencies are: communication,
                           planning and administration, teamwork, strategic
                           action, global awareness, and self-management.
  2.       b        6      An organization is a coordinated group of people who
                           function to achieve a particular goal.
  3.       d        7      A manager is a person who plans, organizes, directs,
                           and controls the allocation of human, material,
                           financial, and information resources in pursuit of the
                           organization’s goals. Some managers have unique and
                           creative titles, such as chief knowledge officer and
                           chief information officer. People with the job titles of
                           chief executive officer (CEO), president, managing
                           director, supervisor, and coach also have the
                           responsibility for helping a group of people achieve a
                           common goal, so they too are managers. Most
                           employees contribute to organizations through their
                           own individual work, not by directing other
                           employees. Journalists, computer programmers,
                           insurance agents, machine operators, newscasters,
                           graphic designers, sales associates, stockbrokers,
                           accountants, and lawyers are essential to achieving
                           their organizations’ goals, but many people with these
                           job titles aren’t managers.
Chapter 1: Managing in a Dynamic Environment                                             17


  4.        d         8               Functional managers supervise employees having
                                      expertise in one area, such as accounting, human
                                      resources, sales, finance, marketing, or production.
                                      General managers are responsible for the operations
                                      of a more complex unit, such as a company or a
                                      division. Usually they oversee the work of functional
                                      managers.
  5.        d         9               The four basic functions of management are:
                                      planning, organizing, leading, and controlling.
  6.        a         9               Organizing is the process of deciding where decisions
                                      will be made, who will perform what jobs and tasks,
                                      and who will report to whom in the company.
  7.        a         10              Controlling is the process by which a person, group,
                                      or organization consciously monitors performance
                                      and takes corrective action. In the control process,
                                      managers: set standards of performance, measure
                                      current performance against those standards, take
                                      action to correct any deviations, and adjust the
                                      standards if necessary.
  8.        a         12–13           First-line managers are directly responsible for the
                                      production of goods and services. They spend most of
                                      their time with the people they supervise and with
                                      other first-line managers. This level of management is
                                      the link between the operations of each department
                                      and the rest of the organization.
  9.        c         12–13           First-line managers are directly responsible for the
                                      production of goods and services. First-line managers
                                      spend relatively little time planning and organizing.
                                      Most of their time is spent leading and controlling.
 10.        b         13              Middle managers are responsible for setting
                                      objectives that are consistent with top management’s
                                      goals and translating them into specific goals and
                                      plans for first-line managers to implement.
 11.        b         13–14           Top managers set the overall direction of an
                                      organization. They spend most of their day (over 75
                                      percent) planning and leading.
 12.        c         15–16           The communication competency involves the
                                      effective transfer and exchange of information and
                                      understanding between yourself and others. It
                                      includes     informal     communication,     formal
                                      communication, and negotiation.
18                      Chapter 1: Managing in a Dynamic Environment


13.   d   15–16   Communication competency is the ability to transfer
                  and exchange effectively information that leads to
                  understanding between you and others. It includes
                  informal/formal communication and negotiation
                  skills.
14.   b   17      Planning and administration competency involves
                  deciding what tasks need to be done, determining how
                  they can be done, allocating resources to enable them
                  to be done, and then monitoring progress to ensure
                  that they are done. Included is this competency are:
                  information gathering, analysis, and problem solving;
                  planning and organizing projects; time management;
                  and budgeting and financial management.
15.   d   19      Designing the team is the first step for any team
                  project and usually is the responsibility of a manager
                  or team leader. Team design involves formulating
                  goals to be achieved, defining tasks to be done, and
                  identifying the staffing needed to accomplish those
                  tasks.
16.   c   20      Strategic action competency involves understanding
                  the overall mission and values of the company and
                  ensuring that employees’ actions match with them.
                  Strategic action competency includes: understanding
                  the industry, understanding the organization, and
                  taking strategic actions.

17.   a   22–24   Global awareness competency includes performing
                  managerial work for an organization that utilizes
                  human, financial, informational, and material
                  resources from multiple countries and serves markets
                  that span multiple cultures. An open attitude about
                  cultural differences and a sensitivity to them are
                  especially important for anyone who must operate
                  across cultural boundaries.
18.   b   25      Self-management       competency       means    taking
                  responsibility for your life at work and beyond.
                  Organizations expect their employees to show
                  integrity and act ethically. A derailed manager is one
                  who has moved into a position of managerial
                  responsibility but has little chance of future
                  advancement or gaining new responsibilities. Future
                  managers won’t succeed unless they can balance work
                  and life demands.
Chapter 1: Managing in a Dynamic Environment                                                  19


ESSAY SOLUTIONS

[Page 8]

  1. Functional managers supervise employees having expertise in one area, such as
     accounting, human resources, sales, finance, marketing, or production. For example, the
     head of a payroll department is a functional manager. Usually, functional managers have a
     great deal of experience and technical expertise in the areas of operation they supervise.
     General managers are responsible for the operations of a more complex unit, such as a
     company or a division. Usually they oversee the work of functional managers. General
     managers must have a broad range of well-developed competencies to do their jobs well.

[Pages 9–10]

  2. Planning involves determining organizational goals and means to reach them. Managers
     plan for three reasons: (1) to establish an overall direction for the organization’s future,
     such as increased profit, expanded market share, and social responsibility; (2) to identify
     and commit the organization’s resources to achieving its goals; and (3) to decide which
     tasks must be done to reach those goals.
     Organizing is the process of deciding where decisions will be made, who will perform
     what jobs and tasks, and who will report to whom in the company. By organizing
     effectively, managers can better coordinate human, material, and informational resources.
     Leading involves communicating with and motivating others to perform the tasks
     necessary to achieve the organization’s goals. Leading isn’t done only after planning and
     organizing end; it is a crucial element of those functions.
     Controlling is the process by which a person, group, or organization consciously monitors
     performance and takes corrective action. A management control system sends signals to
     managers that things aren’t working out as planned and that corrective action is needed.

[Pages 7, 12–14]

  3. Management refers to the tasks or activities involved in managing an organization:
     planning, organizing, leading, and controlling. A manager is a person who plans,
     organizes, directs, and controls the allocation of human, material, financial, and
     information resources in pursuit of the organization’s goals.
     First-line managers are directly responsible for the production of goods or services. They
     may be called sales managers, section heads, or production supervisors. This level of
     management is the link between the operations of each department and the rest of the
     organization. Most of their time is spent with the people they supervise and with other
     first-line managers. First-line managers spend relatively little time planning and
     organizing. Most of their time is spent leading and controlling. They usually need strong
     technical expertise to teach subordinates and supervise their day-to-day tasks.
20                                               Chapter 1: Managing in a Dynamic Environment


     Middle managers are responsible for setting objectives that are consistent with top
     management’s goals and translating them into specific goals and plans for first-line
     managers to implement. They typically have titles such as department head, plant
     manager, and director of finance. They are responsible for directing and coordinating the
     activities of first-line managers and nonmanagerial personnel. They review the work plans
     of various groups, help them set priorities, and negotiate and coordinate their activities.
     Top managers are responsible for the overall direction of the company. They develop
     goals, policies, and strategies for the entire organization. Typical titles are: CEO,
     president, and executive vice president. They spend most of their day (over 75 percent)
     planning and leading.

[Pages 4, 14–25]

  4. Managerial competencies are sets of knowledge, skills, behaviors, and attitudes that a
     person needs to be effective in a wide range of managerial jobs and various types of
     organizations.
     The six key managerial competencies are:
       a.   Communication competency refers to the effective transfer and exchange of
            information that leads to understanding between yourself and others. It includes:
            informal communication, formal communication, and negotiation. Of the six
            managerial competencies, it is the most fundamental.
      b.    Planning and administration competency involves deciding what tasks need to be
            done, determining how they can be done, allocating resources to enable them to be
            done, and then monitoring progress to ensure that they are done. Included in this
            category are: information gathering, analysis, and problem solving; planning and
            organizing projects; time management; and budgeting and financial management.
       c.   Teamwork competency requires accomplishing tasks through small groups of people
            who are collectively responsible and whose job requires coordination. Managers in
            companies that utilize teams can become more effective by: designing teams
            properly, creating a supportive team environment, and managing team dynamics
            appropriately.
      d.    Strategic action competency involves understanding the overall mission and values
            of the company and ensuring that employees’ actions match with them. It includes:
            understanding the industry, understanding the organization, and taking strategic
            actions.
       e.   Global awareness competency means performing managerial work for an
            organization that utilizes human, financial, and material resources from multiple
            countries and serves markets that span multiple cultures. It includes: cultural
            knowledge and understanding, and cultural openness and sensitivity.
       f.   Self-management competency refers to taking responsibility for your life at work
            and beyond. It includes: integrity and ethical conduct, personal drive and resilience,
            balancing work/life issues, and self-awareness and development.

								
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