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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
I.
Define managers and management.
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 selfmanagement.
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.
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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
2
3
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.
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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
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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
III.
Describe the competencies used in managerial work and assess your current
competency levels.
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.
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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
understanding the organization, and taking strategic action.
the
industry,
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.
B.
C.
D.
E.
F.
G.
H.
I.
J.
Teamwork Competency
Organization
Leading
Derailed Manager
Organizing
Management
Controlling
Middle Manager
Formal Communication
Communication Competency
K. General Manager
L. Supportive Environment
M. Global Awareness Competency
N. Top Manager
O. Openness and Sensitivity
P. Strategic Action Competency
Q. Planning
R. Functional Manager
S. Managerial Competencies
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.
Chapter 1: Managing in a Dynamic Environment
8
____
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.
Chapter 1: Managing in a Dynamic Environment
10
____
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
____
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

2
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
____
Which of the following competencies is typified by managerial negotiation skills?
a. planning and administration
b. teamwork
c. organization
d. communication
13.
____ 14.
This managerial competency includes: information gathering, time management,
financial management, and problem solving.
a. strategic action
b. planning and administration
c. organization
Chapter 1: Managing in a Dynamic Environment
12
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
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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
J
N
A
O
H
B
R
E
T
G
L
F
M
C
K
I
P
Q
D
S
-
Communication Competency
Top Manager
Teamwork Competency
Openness and Sensitivity
Middle Manager
Organization
Functional Manager
Organizing
First-Line Manager
Controlling
Supportive Environment
Management
Global Awareness Competency
Leading
General Manager
Formal Communication
Strategic Action Competency
Planning
Derailed Manager
Managerial Competencies
13
Chapter 1: Managing in a Dynamic Environment
14
TRUE/FALSE SOLUTIONS
Question
Answer
1.
False
2.
False
3.
True
4.
True
5.
Page
4–5
Explanation
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.
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.
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
9.
15
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 selfmanagement 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
Chapter 1: Managing in a Dynamic Environment
16
15.
False
16.
True
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.
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.
Chapter 1: Managing in a Dynamic Environment
18
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.
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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.
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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.