A formal process whereby managers choose goals, identify actions to attain those
goals, allocate responsibility for implementing actions to specific individuals or
units, measure the success of actions by comparing actual results against the
goals, and revise plans accordingly.
An action that managers take to attain the goals of an organization.
The process of thinking through on a continual basis what strategies an
organization should pursue to attain its goals.
The process of deciding who within an organization will perform what tasks,
where decisions will be made, who reports to whom, and how different parts of
the organization will coordinate their activities to pursue a common goal.
The process of monitoring performance against goals, intervening when goals are
not met, and taking corrective action.
A factor, monetary or nonmonetary, that motivates individuals to pursue a
particular course of action.
The process of motivating, influencing, and directing others in the organization to
work productively in pursuit of organization goals. Developing employees:
The task of hiring, training, mentoring, and rewarding employees in an
organization, including other managers.
The knowledge, skills, and capabilities embedded in individuals.
Leading and Developing Employees:
Leading and developing employees are in many ways the core connection among
planning and strategizing, organizing, controlling, and creating incentives. Skilled
• Drive strategic thinking (strategizing) deep within the organization while
articulating their own vision for the organization.
• Have a plan for their organization and push others to develop plans.
• Structure the organization proactively to implement their chosen strategy.
• Exercise control with a deft hand, never seeming too overbearing or
demanding, while at the same time never taking their eyes off the ball.
• Put the right kinds of incentives in place.
• Get the best out of people by persuading them that a task is worthy of their
• Build a high-quality team of other managers and employees through which
they can work to get things done.
Without skilled leaders strategy may fail. The organization may become
bureaucratic; control may be lost; employees will lack incentives and motivation;
and the organization may suffer insufficient human capital. Types of Managers:
Managers responsible for the overall performance of an organization or one of its
major self-contained subunits or divisions.
Managers responsible for leading a particular function or a subunit within a
Managers who manage employees who are themselves not managers.
Specific behaviours associated with the task of management.
Roles that involve interacting with other people inside and outside the
organization. Managers get things done through their network of interpersonal
The Three Types of Interpersonal Roles:
Figurehead role: Managers at all levels are figureheads. They greet visitors,
represent the company at community events, serve as spokespeople, and
function as emissaries of the organization
Leader Role: Managers behave as leaders to influence, motivate, and direct
others within organizations and to strategize, plan, organize, control, and
develop. A central task of leaders is to give their organizations a sense of direction
and purpose. They do this by identifying and articulating strategic visions for the
organizations (by strategizing) and then by motivating others to work toward this
Liaison Role: managers connect with people outside their immediate units. These
may be the managers of other units within the organization or people outside the
organization, such as suppliers, buyers, and strategic partners. An important purpose of such liaisons is to build a network of relationships. Managers can use
their networks to help coordinate the work of their units with others, to gain
access to valuable information, and more generally to get things done and further
their own agendas within the organization.
Informational Roles are concerned with collecting, processing, and disseminating
information. Managers collect information from various sources both inside and
outside the organization, process that information, and distribute it to others who
need it. Mintzberg found that managers spend 40 percent of their time in these
tasks. Mintzberg divided the information roles of management into three types:
monitor, disseminator, and spokesperson.
The Three Types of Informational Roles:
Monitors: Scan the environment both inside and outside the organization. At
Microsoft, for example, CEO Steve Ballmer is constantly reviewing competitive,
technological, and regulatory trends in the markets in which Microsoft competes.
He also monitors the performance of the different units within Microsoft,
assessing, for example, how well the Windows, Office, and Xbox businesses are
performing against targets. The monitoring role of management is part of the
Disseminator: Managers regularly inform staff about the company’s direction and
sometimes about specific technical issues. At the supervisory level, the
disseminator role often takes the form of one-to-one informal conversations with
specific employees about particular matters.
Spokesperson: managers deliver specific information to individuals and groups
located outside their department or organization. Sales managers communicate
with business partners regarding new sales strategies. Division heads give
presentations to their colleagues in other divisions about strategies and resource
requirements. CEOs meet with investors, government officials, community
leaders, and others to convey information about company developments of
interest to those stakeholders. These are more than figurehead activities: They
communicate valuable information to important constituencies and in doing so they can help to shape their perception of the organization and the way they
interact with it. For example, if by sharing information the CEO of a company can
successfully persuade investment analysts that his company is pursuing a good
strategy, they may write a favourable investment report. In turn, this might lead
to an increase in the company’s stock price, making it easier for the company to
raise additional capital from investors in the future by issuing new stock.
Whereas interpersonal roles deal with people and informational roles deal with
knowledge, decisional roles deal with action. They translate the people and
information into processes with the purpose of moving the organization toward
its strategic goals. Mintzberg identified four decision roles: entrepreneur,
disturbance handler, resource allocator, and negotiator.
The Four Types of Decisional Roles:
Entrepreneur Role: managers must make sure that their organizations innovate
and change when necessary, developing or adopting new ideas and technologies
and improving their own products and processes. They must make decisions that
are consistent with such entrepreneurial behaviour. If they do not, their
organizations will be quickly outflanked by more nimble competitors.
Disturbance Handler: includes addressing unanticipated problems as they arise
and resolving them expeditiously. In managerial work unanticipated problems
arise often. Sales may grow more slowly than anticipated; excess inventory may
accumulate; production processes may break down; valuable employees might
leave for jobs elsewhere; and so on. Managers must decide what to do about
these unanticipated problems—often quickly.
Resource Allocator: decide how best to allocate the scarce resources under their
control between competing claims in order to meet the organization’s goals. As a
resource allocator, a manager in charge of product development, for example,
may have to assign people, money, and equipment to three different product
development teams. A marketing manager may apportion money between media
advertising and point-of-sale promotions. A production manager may have limited
funds for new equipment. In general, resource allocation decisions should be
guided by the strategy of the organization. Negotiation Role: They negotiate with suppliers for better delivery, lower prices,
and higher-quality inputs. They negotiate with customers over the pricing,
delivery, and design of products and services. They negotiate with peers in their
own organization over shared resources and cooperative efforts. They negotiate
with their superiors for access to scarce resources, including capital, personnel,
and facilities. They even negotiate with subordinates in their own work unit,
trying to allocate employees between tasks to meet the goals of both the
organization and individual employees. Managers who are successful when
making negotiation decisions can lower input costs, strike better deals with
customers, gain access to more high-quality resources within the organization,
and better organize their own subordinates. Skilled negotiators are more likely to
successfully implement strategy and raise the performance of their organizations.
A manager’s skills, values, and motivational preferences
The Three Managerial Skills:
Conceptual skills: The ability to see the big picture.
Technical skills: Skills that include mastery of specific equipment or following
Human skills: Skills that managers need, including the abilities to communicate,
persuade, manage conflict, motivate, coach, negotiate, and lead.
The Three Managerial Values:
Enacted values: Values that actually guide behaviour.
Espoused values: What people say is important to them.
Shared values: Values held in common by several people. Key Definitions:
Ethical values: Values that society expects people to follow because they
distinguish right from wrong in that society.
Personalized power orientation: Seeking power for personal gain.
Socialized power orientation: Accumulating power to achieve social or
Key Factors of Managerial Motivation:
- Desire to Compete for Management Jobs: Managers are more successful
when they are motivated to compete for their jobs.
- Desire to Exercise Power: Successful managers are motivated to seek
power. However, they don’t want this power for personal gain or for the
thrill they might experience from wielding power over others (called
personalized power orientation). Instead good managers have a socialized
power orientation. They do not seek power for its own sake; rather, they
accumulate power to accomplish organizational objectives.
- Desire to Be Distinct or Different: Successful managers need to be—or at
least feel comfortable being—different from the people they lead. Why?
One reason is that managers need to broker the interests of many
stakeholders, so the need to be distinct or different from others allows
them to act neutrally.
- Desire to Take Action: One of the most important challenges for managers
is to create momentum—motivating employees (as well as suppliers and
other stakeholders) to achieve the organization’s ambitions for the future. Scientific Management Theory (Frederick W. Taylor)
- The systematic study of relationships between people and tasks for the
purpose of redesigning the work process to increase efficiency
• Principle 1.
Study the way workers perform their tasks, gather all the informal job knowledge
that workers possess, and experiment with ways of improving the way tasks are
• Principle 2.
Codify the new methods of performing tasks into written rules and standard
• Principle 3.
Carefully select workers so that they possess skills and abilities that match the
needs of the task, and train them to perform the task according to the established
rules and procedures.
• Principle 4.
Establish a fair or acceptable level of performance for a task, and then develop a
pay system that provides a reward for performance above the acceptable level
Cons of this theory: Repetitive tasks, Unbalanced distribution of income,
increased performance created lay offs
Job Specialization - The process by which a division of labour occurs as different
employees specialize in different tasks over time. The Gilbreths – Motion Study
(1) Break up a particular task into individual actions, and analyze each step
needed to perform the task
(2) Find better ways to perform each step
(3) Reorganize each of the st