Cpter 1 Management 11th Edn by Stephenbins Mary Coulter PDF Qwerty80 22

7/26/2019 Cpter 1 Management 11th Edn by Stephenbins Mary Coulter PDF Qwerty80 22

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NASA Images

The celebration in 1984 of the 450th anniversary of

explorer Jacques Cartiers arrival in Canada saw a smalltroupe of street performers put together a circus.1Who could

have imagined at the time that this ragtag bunch of French-

Canadian hippies would become the Cirque du Soleil (circus of

the sun) that we know today? Thirty years later, Cirque du Soleils

big-budget, animal-free circuses are Canadas largest cultural

export, pulling in an estimated $1 billion a year in revenue. The

dynamic between CEO Daniel Lamarre and company founder

Guy Lalibert is an interesting one as the pragmatic (Lamarre)meets the creative (Lalibert). As Lamarre puts it, Im very lucky

because we are so complementary. What Guy likes to do, I dont

and what I like to do, he doesnt. Lalibert rather likes people

with stratospheric ambitions. At a time when most businesses

have reasonably modest expectations, Carmen Ruest, one of

the original Cirque pioneers and now the companys director of

creation, has been known to say, The word impossibledoes

not exist here.

Learning Outcomes

Explain why managers are important

to an organization.

Tell who managers are and where

they work.

Describe the characteristics of an

organization.

Describe the factors that are

reshaping and redefining the

managers job.

Explain the value of studying

management.

In this chapter, well introduce you to who managers are and what

they do. One thing youll discover is that the work managers do

is vitally important to organizations. But youll also see that being

a managera good managerisnt easy. The best companies

and organizations are more flexible, more efficient, and more

adaptable. After reading and studying this chapter, you will achieve

the following learning outcomes.

PART ONE DEFINING THE MANAGERS TERRAIN CHAPTER

Introduction to Management

and Organizations

Guy Lalibert created the ONE DROP Foundation in 2007

to fight global poverty by providing sustainable access to safe

water. The ideals of the foundation reflect the values that have

always been at the heart of Cirque du Soleil: the belief that lifegives back what you have given and even the smallest gesture

will make a difference. When Guy Lalibert became the first

Canadian private space explorer, he dedicated his mission to

raising awareness of water issues on Earth. As part of the first

Poetic Social Mission in space, Lalibert hosted Moving Stars

and Earth for Waterfrom the International Space Station, a web-

cast concert featuring various artistic performances unfolding in

14 cities around the world.


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2 Part 1 DEFINING THE MANAGERS TERRAIN

This text is about the important managerial work that managers do. The reality facing

todays managersand that might include you in the near futureis that the world is

changing. In workplaces of all typesoffices, retail stores, restaurants, factories, and the

likemanagers deal with changing expectations and new ways of managing employees

and organizing work.

In this chapter, we explain why managers are important to organizations, who man-

agers are, where they work, and what managers do. Finally, we wrap up the chapter by

looking at the factors redefining the managers job and discussing why its important to

study management.

Who Are Managers and Why Are

They Important?. . . A great boss can change your life, inspiring you to new heights both professionally

and personally, and energizing you and your team to together overcome new challenges

bigger than any one of you could tackle alone.2If youve worked with a manager like this,

consider yourself lucky. Such a manager can make a job a lot more enjoyable and produc-

tive. However, even managers who dont live up to such lofty ideals and expectations are

important to organizations. Lets look at three reasons why.

The first reason managers are important is because organizations need their mana-

gerial skills and abilities more than ever in uncertain, complex, and chaotic times. Asorganizations deal with todays challengesthe worldwide economic climate, changing

technology, ever-increasing globalization, and so forthmanagers play an important

role in identifying critical issues and crafting responses. For example, John Zapp, general

manager of several car dealerships in Oklahoma City, struggled to keep his businesses

afloat and profitable in the difficult economic environment, just as many other car dealers

did. However, after four decades in the car business, Zapp understands that hes the one

calling the shots and his call was to focus on selling more used cars. How? By keeping

inventory moving and by keeping his salespeople engaged through small cash payment

rewards for hitting sales goals. His skills and abilities as a manager have been crucial in

guiding his organization.

Secondly, managers do matterto organizations! How do we know that? The Gal-

lup Organization, which has polled millions of employees and tens of thousands ofmanagers, has found that the single most important variable in employee productivity

and loyalty isnt pay or benefits or workplace environmentits the quality of the rela-

tionship between employees and their direct supervisors.3In addition, a KPMG/Ipsos

Reid study of Canadian companies found that those that made the top 10 list for great

human resource practices also scored high on financial performance and investment

value. Six of the Most Respected Corporations for Human Resources Management

placed in the top 10 on both financial measures, and nine scored in the top 10 of at

least one of the financial measures.4So, as you can see, managers can and do have an

impactpositive and negative. Finally, one more study of organizational performance

recently found that managerial ability was important in creating organizational value.5

Heres what we can conclude from such reports: Managers are importantand they

domatter!

Think About It

What kinds of skills do managers need? Put yourself in Guy Laliberts shoes. What kinds of

leadership skills would you need to manage 4000 employees in 40 countries? Is managing in a

creative and artistic organization different from managing in any other organization? Do other

organizations share Laliberts belief that life gives back what you have given?

Explain why managersare important to anorganization.


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Chapter 1 Introduction to Management and Organizations 3

Finally, Guy Lalibert is a good example of what todays successful managers are like

and the skills they must have to deal with the problems and challenges of managing

in the twenty-first century. These managers may not be who or what you might expect.

They range in age from under 18 to over 80. They run large corporations, as well as

entrepreneurial start-ups. They are found in government departments, hospitals, small

businesses, not-for-profit agencies, museums, schools, and even such nontraditional

organizations as political campaigns and consumer cooperativesin every country

on the globe.

Who Is a Manager?It used to be fairly simple to define who managers were: They were the organizational

members who told others what to do and how to do it. It was easy to differentiate managers

from nonmanagerial employees. But it isnt quite so simple anymore. In many organiza-

tions, the changing nature of work has blurred the distinction between managers and

nonmanagerial employees. Many nonmanagerial jobs now include managerial activi-

ties.6At General Cable Corporations facility in Moose Jaw, Saskatchewan, for example,

managerial responsibilities are shared by managers and team members. Most of the

employees are cross-trained and multiskilled. Within a single shift, an employee may

be a team leader, an equipment operator, a maintenance technician, a quality inspector,and an improvement planner.7Or consider an organization like Morning Star Company,

the worlds largest tomato processor, where no employees are called managersjust 400

full-time employees who do what needs to be done and who manage issues such as job

responsibilities, compensation decisions, and budget decisions.8Sounds crazy, doesnt it?

But it worksfor this organization.

Today, how do we define who managers are? A manageris someone who works with

and through other people by coordinating their work activities in order to accomplish

organizational goals. A managers job is not about personalachievementits about help-

ing othersdo their work and achieve. That may mean coordinating the work of a depart-

mental group, or it might mean supervising a single person. It could involve coordinating

the work activities of a team composed of people from several different departments or

even people outside the organization, such as temporary employees or employees whowork for the organizations suppliers. Keep in mind, also, that managers may have other

work duties not related to coordinating and integrating the work of others. For example,

an insurance claims supervisor may process claims in addition to coordinating the work

activities of other claims clerks.

Types of ManagersIs there some way to classify managers in organizations? In traditionally structured orga-

nizations (often pictured as being shaped like a pyramid where the number of employees

is greater at the bottom than at the top), managers are often described as first-line, middle,

or top (see Exhibit 1-1). Identifying exactly who the managers are in these organizations

isnt difficult, although they may have a variety of titles. First-line managersare at thelowest level of management and manage the work of nonmanagerial employees who

are directly or indirectly involved with the production or creation of the organizations

products. They are often calledsupervisorsbut may also be called shift managers, district

managers, department managers, office managers, or even foremen. Middle managers

include all levels of management between the first-line level and the top level of the orga-

nization. These managers manage the work of first-line managers and may have titles such

as regional manager, project leader, plant manager, or division manager. At or near the top

of the organization are the top managerswho are responsible for making organization-

wide decisions and establishing the plans and goals that affect the entire organization.

These individuals typically have titles such as executive vice-president, president, manag-

ing director, chief operating officer, chief executive officer, or chair of the board. In the

chapter-opening case, Guy Lalibert is the founder and driving creative force of Cirque du

manager Someone who

coordinates and oversees the work

of other people so organizational

goals can be accomplished

first-line managers Managers at

the lowest level of the organization

who manage the work of

nonmanagerial employees who are

directly or indirectly involved withthe production or creation of the

organizations products.

middle managers Managers

between the first-line level and

the top level of the organization

who manage the work of first-line

managers.

top managers Managers

at or near the top level of the

organization who are responsible

for making organization-wide

decisions and establishing the

plans and goals that affect the

entire organization.

datapoints9

28percent of workers

surveyed said they could

do a better job than their boss.


surveyed said they

would not like to have theirmanagers job.

27percent of adults

surveyed said working

part time in a management posi-

tion is possible.


surveyed said their boss

had taken credit for their work.


surveyed said their boss

had thrown them under the busto save himself or herself.

27percent of employees

surveyed said their hor-

rible boss was a know-it-all.


surveyed said their hor-

rible boss was a micromanager.


surveyed said their

employer genuinely listens to

and cares about its employees.


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Soleil. He is involved in creating and implementing broad and comprehensive changes

that affect the entire organization.

Not all organizations get work done using this traditional pyramidal form, however.

Some organizations are more flexible and loosely structured with work being done by ever-

changing teams of employees who move from one project to another as work demands

arise. Although its not as easy to tell who the managers are in these organizations, we

do know that someone must fulfill that rolethat is, there must be someone who works

with and through other people by coordinating their work to accomplish organizational

goals. This holds true even if that someone changes as work tasks or projects change or

that someone doesnt necessarily have the title of manager.

What Is Management and What

Do Managers Do?

Managers plan, lead, organize, and control, and Daniel Lamarre, as chief executive officer

of Cirque du Soleil, certainly carries out all these tasks. He has to coordinate the work activities of

the entire company efficiently and effectively. But just as important to Lamarre is the creative side

of Cirquein fact, he sees his mission as finding work for artists. With operations in 40 countries,

it might be tempting for Lamarre to try to arrive at consensus on issues, but at Cirque it is all about

the power of the idea. Lamarre feels that the best ideas are lost if everyone has to compromise. So

although it can be uncomfortable for some, debating ideas has become embedded in the company

culture. That is what we do, says Lamarre, we are debating all of the time.10

Exhibit 1-1

Managerial Levels

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees

Tell who managers areand where they work.

Think About It

As a manager, Daniel Lamarre needs to plan, lead, organize, and control, and he needs to be

efficient and effective. How might Lamarre balance the needs of efficiency and effectiveness

with the creative and artistic mandate of his role as CEO of Cirque du Soleil? What skills are

needed for him to plan, lead, organize, and control effectively? What challenges does he face

performing these functions while running an international business?


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Simply speaking, management is what managers do. But that simple statement does

not tell us much, does it? A more thorough explanation is that managementis coordi-

nating work activities with and through other people so that the activities are completed

efficientlyand effectively. Management researchers have developed three specific categoriza-

tion schemes to describe what managers do: functions, roles, and skills. In this section, we

consider the challenges of balancing efficiency and effectiveness, and then examine the

approaches that look at what managers do. In reviewing these categorizations, it might be

helpful to understand that management is something that is a learned talent, rather than

something that comes naturally. Many people do not know how to be a manager when

they first are appointed to that role.

Efficiency and EffectivenessEfficiencyrefers to getting the most output from the least amount of inputs, or as man-

agement expert Peter Drucker explained, doing things right.11Because managers deal

with scarce inputsincluding resources such as people, money, and equipmentthey

are concerned with the efficient use of those resources by getting things done at the

least cost.

Its not enough just to be efficient, however. Management is also concerned with being

effective, completing activities so that organizational goals are achieved. Effectivenessis

often described as doing the right thingsthat is, those work activities that will helpthe organization reach its goals. For instance, hospitals may try to be efficient by reducing

the number of days that patients stay in hospital. This may not be effective, however, if

patients get sick at home shortly after being released from hospital.

Whereas efficiency is concerned with the means of getting things done, effectiveness is

concerned with the ends, or attainment of organizational goals (see Exhibit 1-2). Manage-

ment is concerned, then, not only with getting activities completed and meeting organiza-

tional goals (effectiveness) but also with doing so as efficiently as possible. In successful

organizations, high efficiency and high effectiveness typically go hand in hand. Poor

management is most often due to both inefficiency and ineffectiveness or to effectiveness

achieved despite inefficiency.

Management FunctionsAccording to the functions approach, managers perform certain activities or duties as

they efficiently and effectively coordinate the work of others. What are these activities

or functions? In the early part of the twentieth century, a French industrialist named

Henri Fayol first proposed that all managers perform five functions: planning, organiz-

ing, commanding, coordinating, and controlling.12Today, most management textbooks

management Coordinating

work activities with and through

other people so the activities

are completed efficiently and

effectively.

efficiency Getting the most output

from the least amount of inputs;

referred to as doing things right.

SimulateonMyManagementLab

Improving a Business

effectiveness Completing

activities so that organizationalgoals are achieved; referred to as

doing the right things.

Exhibit 1-2

Efficiency and Effectiveness in Management

GoalAttainment

Effectiveness (Ends)

ResourceUsage

Management Strives for:Low ResourceWaste (high efciency)

High Goal Attainment (high effectiveness)

Efciency (Means)

LowWaste High Attainment


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(including this one) are organized around the management functions: planning, orga-

nizing, leading, and controlling (see Exhibit 1-3). But you do not have to be a manager

in order to have a need to plan, organize, lead, and control, so understanding these

processes is important for everyone. Lets briefly define what each of these functions

encompasses.

PlanningIf you have no particular destination in mind, then you can take any road. However, if

you have some place in particular you want to go, you have to plan the best way to get

there. Because organizations exist to achieve some particular purpose, someone must

clearly define that purpose and the means for its achievement. Managers performing the

planningfunction define goals, establish an overall strategy for achieving those goals,

and develop plans to integrate and coordinate activities. This can be done by the CEO and

senior management team for the overall organization. Middle-level managers often have aplanning role within their units. First-line managers have a more limited role in the plan-

ning process, but may need to use planning to adequately schedule work and employees.

Planning, by the way, is not just for managers. For instance, as a student, you need to plan

for exams and your financial needs.

OrganizingManagers are also responsible for arranging work to accomplish the organizations goals.

We call this function organizing. When managers organize, they determine what tasks

are to be done, who is to do them, how the tasks are to be grouped, who reports to whom

(that is, they define authority relationships), and where decisions are to be made. When

you work in a student group, you engage in some of these same organizing activities

deciding on a division of labour and what tasks will be carried out to get an assignmentcompleted.

LeadingEvery organization includes people, and a managers job is to work with and through

people to accomplish organizational goals. This is the leadingfunction. When managers

motivate subordinates, direct the work of individuals or teams, select the most effective

communication channel, or resolve employee behaviour issues, they are leading. Knowing

how to manage and lead effectively is an important, and sometimes difficult, skill as it

requires the ability to successfully communicate. Leading is not just for managers, however.

As a student, you might want to practise leadership skills when working in groups or club

activities. You might also want to evaluate whether you need to improve your leadership

skills in anticipation of the needs of future jobs.

management functions Planning,

organizing, leading, and controlling.

planning A management

function that involves defining

goals, establishing a strategy

for achieving those goals, and

developing plans to integrate and

coordinate activities.

organizing A management

function that involves determining

what tasks are to be done, who

is to do them, how the tasks are

to be grouped, who reports to

whom, and where decisions are tobe made.

leading A management

function that involves motivating

subordinates, directing the work

of individuals or teams, selecting

the most effective communication

channels, and resolving employee

behaviour issues.

Planning

Defining goals,

establishingstrategy, anddevelopingsubplans tocoordinateactivities

Lead to

Organizing

Determining

what needsto be done,how it willbe done, andwho is to do it

Leading

Directing and

motivating allinvolved partiesand resolvingconicts

Controlling

Monitoring

activitiesto ensurethat they areaccomplishedas planned

Achieving theorganizations

statedpurpose

Exhibit 1-3

Management Functions


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ControllingThe final management function is controlling. After the goals are set (planning); the

plans formulated (planning); the structural arrangements determined (organizing); and

the people hired, trained, and motivated (leading); there has to be some evaluation of

whether things are going as planned (controlling). To ensure that work is going as it

should, managers must monitor and evaluate the performance of employees, technology,

and systems. Actual performance must be compared with the previously set goals. If per-

formance of individuals or units does not match the goals set, its managements job toget performance back on track. This process of monitoring, comparing, and correcting is

what we mean by the controlling function. Students, whether working in groups or alone,

also face the responsibility of controlling; that is, they make sure the goals and actions are

achieved and take corrective action when necessary.

Just how well does the functions approach describe what managers do? Do managers

always plan, organize, lead, and then control? In reality, what a manager does may not

always happen in this logical and sequential order. But that does not negate the impor-

tance of the basic functions that managers perform. Regardless of the order in which the

functions are performed, the fact is that managers do plan, organize, lead, and control as

they manage.

The continued popularity of the functions approach to describe what managers do is a

tribute to its clarity and simplicity. But some have argued that this approach isnt appropri-ate or relevant.13So lets look at another perspective.

Management RolesHenry Mintzberg, a prominent management researcher at McGill University in Montreal,

studied actual managers at work. He says that what managers do can best be described

by looking at the roles they play at work. His studies allowed him to conclude that

managers perform 10 different but highly interrelated management roles.14The term

management rolesrefers to specific categories of managerial behaviour. (Think of the

different roles you play and the different behaviours you are expected to perform in these

roles as a student, a sibling, an employee, a volunteer, and so forth.) As shown in Exhibit 1-4,

Mintzbergs 10 management roles are grouped around interpersonal relationships, thetransfer of information, and decision making. Note that, since first proposed in 1973,

email and social media have enriched the way in which communication takes place.

The interpersonal rolesinvolve working with people (subordinates and persons

outside the organization) or performing duties that are ceremonial and symbolic in

nature. The three interpersonal roles include being a figurehead, leader, and liaison. The

informational rolesinvolve receiving, collecting, and disseminating information. The

three informational roles include monitor, disseminator, and spokesperson. Finally,

the decisional rolesinvolve making significant choices that affect the organization. The

four decisional roles include entrepreneur, disturbance handler, resource allocator, and

negotiator.

A number of follow-up studies have tested the validity of Mintzbergs role categories

among different types of organizations and at different levels within given organiza-tions.15The evidence generally supports the idea that managersregardless of the type of

organization or level in the organizationperform similar roles. However, the emphasis

that managers give to the various roles seems to change with their organizational level.16

Specifically, the roles of disseminator, figurehead, negotiator, liaison, and spokesperson

are more important at the higher levels of the organization, while the leader role (as Mint-

zberg defined it) is more important for lower-level managers than it is for either middle- or

top-level managers.

Functions vs. RolesSo which approach to describing what managers do is betterfunctions or roles? Each has

merit. However, the functions approach still represents the most useful way of conceptu-

alizing the managers job. The classical functions provide clear and discrete methods of

controlling A management

function that involves monitoring

actual performance, comparing

actual performance to a standard,

and taking corrective action when

necessary.

management roles Specific

categories of managerial behaviour.

interpersonal roles Management

roles that involve working with

people or performing duties that

are ceremonial and symbolic in

nature.

informational roles Management

roles that involve receiving,

collecting, and disseminating

information.

decisional roles Management

roles that involve making

significant choices that affect the

organization.


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classifying the thousands of activities that managers carry out and the techniques they use

in terms of the functions they perform for the achievement of goals.17Many of Mintz-

bergs roles align well with one or more of the functions. For instance, resource allocation

is part of planning, as is the entrepreneurial role, and all three of the interpersonal roles

are part of the leading function. Although most of the other roles fit into one or more of

the four functions, not all of them do. The difference can be explained by the fact that all

managers do some work that isnt purely managerial.18

Management SkillsDell Inc. is one company that understands the importance of management skills.19It

started an intensive five-day offsite skills-training program for first-line managers aug-mented by online tools from Harvard as well as in-house tools such as MentorConnect,

as a way to improve its operations. One of Dells directors of learning and development

thought this was the best way to develop leaders who can build that strong relationship

with their front-line employees. What did the supervisors learn from the skills training?

Some things they mentioned were how to communicate more effectively and how to

refrain from jumping to conclusions when discussing a problem with a worker.

Managers need certain skills to perform the duties and activities associated with

being a manager. What types of skills does a manager need? Research by Robert L. Katz

found that managers needed three essential skills: technical skills, human skills, and

conceptual skills.20

Technical skillsinclude knowledge of and expertise in a certain specialized field, such

as engineering, computers, accounting, or manufacturing. These skills are more importanttechnical skills Knowledge of

and expertise in a specialized field.

Interpersonal Roles

Figurehead

Leader

Liaison

Informational Roles

Monitor

Disseminator

Spokesperson

Decisional Roles

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

Exhibit 1-4

Mintzbergs Management Roles


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at lower levels of management since these managers are dealing directly with employees

doing the organizations work.

Human skillsinvolve the ability to work well with other people, both individually and

in a group. Because managers deal directly with people, this skill is crucial for managers

at all levels! Managers with good human skills are able to get the best out of their people.

They know how to communicate, motivate, lead, and inspire enthusiasm and trust. These

skills are equally important at all levels of management. Management professor Jin Nam

Choi, of McGill University, reports that research shows that 40 percent of managers either

leave or stop performing within 18 months of starting at an organization because they

have failed to develop relationships with bosses, colleagues or subordinates.21Chois

comment underscores the importance of developing human skills.

Finally, conceptual skillsinvolve the mental ability to analyze and generate ideas

about abstract and complex situations. These skills help managers see the organization

as a whole, understand the relationships among various subunits, and visualize how the

organization fits into its broader environment. These skills are most important at the top

management levels.

Exhibit 1-5 shows the relationship of the three skills to each level of management.

Note that the three skills are important to more than one function. Additionally, in very

flat organizations with little hierarchy, human, technical, and conceptual skills would be

needed throughout the organization.

As you study the management functions in more depth, the skills exercises found at the

end of most chapters will give you the opportunity to practise some of the key skills that

are part of doing what a manager does. We feel that understanding and developing man-

agement skills is so important that weve included a skills feature in MyManagementLab.

There, youll find material on skill building as well as several interactive skills exercises. As

you study the four management functions throughout the rest of the book, youll be able

to practise some key management skills. Although a simple skill-building exercise wont

make you an instant expert, it can provide an introductory understanding of some of theskills youll need to master in order to be an effective manager.

What Is an Organization?

Cirque du Soleil has grown from 73 employees in 1984 to more than 5000 employees

worldwide with almost 2000 working at the international headquarters in Montreal. Today there are

more than 1000 different occupations at Cirque du Soleil! In the process of expanding the reach of

the company internationally, Cirque has dealt with many different kinds of organizations including

government, quasi-government, large corporations, and independent contractors. Cirque has also

established a number of charitable initiatives that required the formation of independent foundations

as well as soliciting support from other foundations.

human skills The ability to work

well with other people, both

individually and in a group.

conceptual skills The mental

ability to analyze and generate

ideas about abstract and complex

situations.

Exhibit 1-5

Skills Needed at Different Management Levels

TopManagers

Middle

Managers

Lower-LevelManagers

Importance

ConceptualSkills

Human

SkillsTechnicalSkills

Describe thecharacteristics of anorganization.


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Managers work in organizations. But what is an organization? An organizationis a

deliberate arrangement of people who act together to accomplish some specific purpose.

Your college or university is an organization; so are fraternities and sororities, government

departments, churches, Amazon.ca, your neighbourhood video store, the United Way, the

Toronto Raptors basketball team, your local co-op, and Canadian Tire. These are all organiza-

tions because they have three common characteristics, as shown in Exhibit 1-6 :

1. Distinct purpose.This purpose is typically expressed in terms of a goal or a set of goals

that the organization hopes to accomplish.

2. Composed of people. One person working alone is not an organization, and it takes

people to perform the work that is necessary for the organization to achieve its goals.

3.Deliberate structure. Whether that structure is open and flexible or traditional andclearly defined, the structure defines members work relationships.

In summary, the term organizationrefers to an entity that has a distinct purpose, includes

people or members, and has some type of deliberate structure.

Although these three characteristics are important to our definition of whatan organiza-

tion is, the concept of an organization is changing. Its no longer appropriate to assume

that all organizations are going to be structured like Air Canada, Suncor Energy, or General

Motors, with clearly identifiable divisions, departments, and work units. Just how is the

concept of an organization changing? Exhibit 1-7 lists some differences between traditional

organizations and new organizations. As these lists show, todays organizations are becom-

ing more open, flexible, and responsive to changes.22

Why are organizations changing? Because the world around them has changed and

continues to change. Societal, economic, political, global, and technological changes havecreated an environment in which successful organizations (those that consistently attain

their goals) must embrace new ways of getting work done. As we stated earlier, even though

the concept of organizations may be changing, managers and management continue to be

important to organizations.

organization A deliberate

arrangement of people who act

together to accomplish some

specific purpose.

SimulateonMyManagementLab

What is Management

Think About It

Guy Lalibert started as a street performer and over time transitioned to a large international

creative force. What was the purpose of the original organization? Has this purpose changed

over time? What additional kinds of organizations did Cirque employ to achieve its mission?

DeliberateStructure

DistinctPurpose

People

Exhibit 1-6

Characteristics of Organizations


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The Size of OrganizationsManagers dont just manage in large organizations, which represent only about 2 percent of

organizations in Canada. Small businesses (those that employ fewer than 100 individuals)

represent 98 percent of all Canadian companies. These businesses employ almost half

of all Canadian workers. Small businesses also contribute significantly to the economy.

Businesses employing 50 or fewer individuals generated about 29 percent of total GDP

in 2008.23Organizations of every size need managers. Moreover, in 2010, about 16 per-cent of the labour force was self-employed, meaning that these people were managing

themselves.24

Managers are also not confined to manufacturing work, as only 12 percent of Canadi-

ans work in manufacturing organizations. Twenty-one percent work in public sector jobs

(those in the local, provincial, or federal government), while most Canadians (around 78

percent) work in the service sector of the economy.25The government is a large employer

in Canada. For instance, Public Service Canada employs 263 000 while Canada Post, a

Crown corporation employs 68 000. 26

The Types of Organizations

Managers work in a variety of situations, and thus the people to whom they are heldaccountable vary considerably. Large organizations in the private sectorare often

publicly held, which means that their shares are available on the stock exchange for

public trading. Managers of these companies report to a board of directors that is

responsible to shareholders (also known as stockholders). There are also numerous

privately held organizations(whose shares are not available on the stock market),

both large and small. Privately held organizations can be individually owned, family

owned, or owned by some other group of individuals. A number of managers work in the

not-for-profit sector(or nonprofit sector), where the emphasis is on providing charity

or services rather than on making a profit. Examples of such organizations include the

SPCA (Society for the Prevention of Cruelty to Animals), the Royal Ontario Museum,

and Vancouvers Bard on the Beach Festival. Other organizational forms such as NGOs

(nongovernmental organizations), partnerships, and cooperatives also require managers.

private sector The part of the

economy run by organizations that

are free from direct government

control; organizations in this sector

operate to make a profit.

publicly held organization A

company whose shares are

available on the stock exchange for

public trading.

privately held organization Acompany whose shares are not

available on the stock exchange

but are privately held.

not-for-profit sector The part of

the economy run by organizations

that operate for purposes other

than making a profit (that is,

providing charity or services).

NGO An organization that is

independent from government

control and whose primary focus

is on humanitarian, development,

and environmental sustainability

activities.

Exhibit 1-7

The Changing Organization

Traditional Organization New Organization

Stable Dynamic

Inflexible Flexible

Job-focused Skills-focused

Work is defined by job positions Work is defined in terms of tasks to be done

Individual-oriented Team-oriented

Permanent jobs Temporary jobs

Command-oriented Involvement-oriented

Managers always make decisions Employees participate in decision making

Rule-oriented Customer-oriented

Relatively homogeneous workforce Diverse workforce

Workdays defined as 9 to 5 Workdays have no time boundaries

Hierarchical relationships Lateral and networked relationships

Work at organizational facility during specific hours Work anywhere, anytime


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Many managers work in the public sectoras civil servantsfor the provincial, federal,

and local governments. The challenges of managing within government departments can

be quite different from the challenges of managing in publicly held organizations. Critics

argue that it is less demanding to work for governments because there are few measurable

performance objectives, allowing employees to feel less accountable for their actions.

Some managers and employees work for Crown corporationssuch as Canada Post, the

CBC, and the Business Development Bank of Canada. Crown corporations are structured

like private sector corporations and have boards of directors, CEOs, and so on, but are

owned by governments rather than shareholders. Employees in Crown corporations are

not civil servants, and managers in Crown corporations are more independent than the

senior bureaucrats who manage government departments.

Many of Canadas larger organizations are actually subsidiaries of American parent orga-

nizations (for example, Sears, Safeway, General Motors, and Ford Motor Company). These

managers often report to American top managers and are not always free to set their own

goals and targets. Conflicts can arise between how Canadian managers and the American

managers to whom they report think things should be done.

How Is the Managers Job Changing?

As CEO of Cirque du Soleil, Daniel Lamarre manages 4000 employees in 40 countries

and also must manage his relationship with company founder Guy Lalibert, who is quite the

character. The reality is that Guy understands business and he understands that that is what he

wants to do in life. . . . The first thing that you have to do when you work with someone like that,

you have to like and love artists because Guy is an artist. If you are not able to work with an artist,

you are in the wrong place.27

public sector The part of the

economy that is controlled by

government.

civil servant A person who works

in a local, provincial, or federal

government department.

Crown corporation A

commercial company owned by

the government but independentlymanaged.

Describe the factorsthat are reshaping andredefining the managersjob.

Think About It

Managing is far more complicated today than it ever was. Daniel Lamarre, like many managers,

must deal with multicultural challenges, technological challenges, and the demand for more

accountability from customers and clients. In the fall of 2008, Cirque and organizations around

the world also had to deal with the global economic crisis. But unlike many other businesses,

Cirque expected to maintain its profitability. How might managers in other organizations mimic

the success of Cirque du Soleil in facing these challenges and create an adaptive organization

that can react to the unexpected?

Managers have always had to deal with changes taking place inside and outside their

organizations. In todays world, where managers everywhere are dealing with corporate

ethics scandals, demands to be more socially responsible, challenges of managing a diverse

workforce, and globalization, change is constant. We briefly describe these challenges

below, and then throughout this textbook we discuss their impact on the way managers

plan, organize, lead, and control.

Importance of Customers to the Managers JobJohn Chambers, CEO of Cisco Systems, likes to listen to voice mails forwarded to him from

dissatisfied customers. He says, E-mail would be more efficient, but I want to hear the

emotion, I want to hear the frustration, I want to hear the callers level of comfort with the

strategy were employing. I cant get that through e-mail.28This manager understands the

importance of customers. You need customers. Without them, most organizations would

cease to exist. Yet, focusing on the customer has long been thought to be the responsibility

of marketing types. Let the marketers worry about the customers is how many managers

felt. Were discovering, however, that employee attitudes and behaviours play a big role in

customer satisfaction. For instance, passengers of Qantas Airways were asked to rate their


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essential needs in air travel. Almost every factor listed was one directly influenced by the

actions of company employeesfrom prompt baggage delivery, to courteous and efficient

cabin crews, to assistance with connections, to quick and friendly check-ins.29

Today, the majority of employees in developed countries work in service jobs. For

instance, almost 72 percent of the Canadian labour force is employed in service industries,

in the USA 77%, in Australia, 70 percent, and in the United Kingdom, Germany, and Japan,

the percentages are 78, 74, and 75, respectively. Even in developing countries like India,

Russia, and China, we find 56 percent, 59 percent, and 43 percent of the labour force

employed in service jobs.30Examples of service jobs include technical support represen-

tatives, food servers or fast-food counter workers, sales clerks, teachers, nurses, computer

repair technicians, front desk clerks, consultants, purchasing agents, credit representatives,

financial planners, and bank tellers. The odds are pretty good that when you graduate, youll

go to work for a company thats in a service industry, not in manufacturing or agriculture.

Managers are recognizing that delivering consistent, high-quality customer service is

essential for survival and success in todays competitive environment and that employees

are an important part of that equation.31The implication is clearmanagers must create

a customer-responsive organization where employees are friendly and courteous, acces-

sible, knowledgeable, prompt in responding to customer needs and willing to do whats

necessary to please the customer.32Well look at customer service management in several

chapters. Before we leave this topic, though, we want to share one more story that illus-trates why its important for todays managers (all managers, not just those in marketing)

to understand what it takes to serve customers. During a broadcasted Stanley Cup playoff

game, Comcast subscribers suddenly found themselves staring at a blank screen. Many of

those customers got on Twitter to find out why. And it was there, not on a phone system,

that they discovered a lightning strike in Atlanta had caused the power outage and that

transmission would be restored as quickly as possible. Managers at Comcast understood

how to exploit popular communications technology, and the companys smart use of

Twitter underscores what is becoming a staple in modern-day customer service . . . beefing

up communications with customers through social-media tools.33

Importance of Social Media to the Managers JobYou probably cant imagine a time when employees did their work without e-mail orinternet access. Yet, 15 years ago, as these communication tools were becoming more

common in workplaces, managers struggled with the challenges of providing guidelines

for using the internet and e-mail in their organizations. Today, the new frontier is social

media,forms of electronic communication through which users create online commu-

nities to share ideas, information, personal messages, and other content. More than a

billion people use social platforms such as Facebook, Twitter, YouTube, LinkedIn, and

others.34Employees dont just use these on their personal time, but also for work pur-

poses. Thats why managers need to understand and manage the power and peril of social

media. For instance, at grocery chain SuperValu, managers realized that keeping

135 000 plus employees connected and engaged was imperative to continued success.35

They decided to adopt an internal social media tool to foster cooperation and collabo-ration among its 10 distinct store brands operating in 44 states. And theyre not alone.

More and more businesses are turning to social media not just as a way to connect with

customers but also as a way to manage their human resources and tap into their innovation

and talent. Thats the potential power of social media. But the potential peril is in how

its used. When the social media platform becomes a way for boastful employees to brag

about their accomplishments, for managers to publish one-way messages to employees,

or for employees to argue or gripe about something or someone they dont like at work,

then its lost its usefulness. To avoid this, managers need to remember that social media is

a tool that needs to be managed to be beneficial. At SuperValu, about 9000 store managers

and assistant managers use the social media system. Although sources say its too early to

draw any conclusions, it appears that managers who actively make use of the system are

having better store sales revenues than those who dont. In the remainder of the book,

social media Forms of electronic

communication through which

users create online communities to

share ideas, information, personal

messages, and other content.


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well look at how social media is impacting how managers manage, especially in the areas

of human resource management, communication, teams, and strategy.

Importance of Innovation to the Managers JobNothing is more risky than not innovating.36Innovation means doing things differently,

exploring new territory, and taking risks. And innovation isnt just for high-tech or other

technologically sophisticated organizations. Innovative efforts can be found in all types

of organizations. For instance, the manager of the Best Buy store in Manchester, Con-

necticut, clearly understood the importance of getting employees to be innovative, a task

made particularly challenging because the average Best Buy store is often staffed by young

adults in their first or second jobs. The complexity of the products demands a high level

of training, but the many distractions that tempt college-aged employees keep the turnover

potential high. However, the store manager tackled the problem by getting employees to

suggest new ideas. One ideaa team close, in which employees scheduled to work at thestores closing time, closed the store together and walked out together as a teamhas had a

remarkable impact on employee attitudes and commitment.37As youll see throughout the

book, innovation is critical throughout all levels and parts of an organization. For example,

the top manager of Indias Tata Group, chairman Ratan Tata, told his employees during the

global economic downturn to Cut costs. Think out of the box. Even if the world around

you is collapsing, be bold, be daring, think big.38And his employees obviously got the

message. The companys $2000 minicar, the Nano, was the talk of the global automotive

industry. As these stories illustrate, innovation is critical. Its so critical to todays organiza-

tions and managers that we also address this topic in several later chapters.

Importance of Adaptability to the Managers JobEarlier in the chapter, we distinguished between effectiveness and efficiency, but there is

another point of view worthy of discussion. As early as 1972 it was suggested that the best

companies in any field outshine their competitors in three areas: They are more flexible,

more efficient, and more adaptable (see Exhibit 1-8).39Being flexible means reacting to

events, while being adaptable means being proactive. An adaptable organization creates a

set of skills, processes, and a culture that enable it to continuously look for new problems

and offer solutions before the clients even realize they have a need.40

Importance of Sustainability to the Managers JobIts the worlds largest retailer with nearly $447 billion in annual sales, 2.2 million

employees, and 8,00 stores. Yes, were talking about Walmart. And Walmart is probably

the last company that youd think about in a section describing sustainability. However,

This young woman in Switzerland

competing in a worldwide paper

airplane event created by Red Bull

Media House illustrates the impor-

tance of innovation for Red Bull,

the Austrian-based energy-drink

firm. Rather than just sponsor-

ing an event or developing an ad

campaign to promote its brand,

Red Bull launched its own global

media company that produces,

publishes, and distributes print,

multimedia, and audiovisual mate-

rial in the fields of sports, culture,

and entertainment. The innova-

tive marketing approach with

its core message of Gives You

Wings has created a strong bond

between Red Bull and its young

target audience and has helped

the company capture close to half

of the energy-drink market.

Maurin Bisig/ZUMA Press/Newscom


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Walmart announced at the beginning of this decade that it would cut some 20 million

metric tons of greenhouse gas emissions from its supply chain by the end of 2015the

equivalent of removing more than 3.8 million cars from the road for a year.41Walmart

achieved this goal in 2011 and, among other things, have moved 21 percent of their energy

consumption to renewables, have improved fleet energy by 80 percent, and now reuses or

recycles more than 80 percent of the waste produced in its domestic stores and in other

U.S. operations.42This corporate action affirms that sustainability and green management

have become mainstream issues for managers.

Whats emerging in the twenty-first century is the concept of managing in a sustain-

able way, which has had the effect of widening corporate responsibility not only to man-

aging in an efficient and effective way, but also to responding strategically to a wide range

of environmental and societal challenges.43Although sustainability means different

things to different people, in essence, according to the World Business Council for Sus-

tainable Development (2005), it is concerned with meeting the needs of people today

without compromising the ability of future generations to meet their own needs. From

a business perspective, sustainabilityhas been defined as a companys ability to achieve

its business goals and increase long-term shareholder value by integrating economic,

environmental, and social opportunities into its business strategies.44 Sustainability

issues are now moving up the agenda of business leaders and the boards of thousands

of companies. Like the managers at Walmart are discovering, running an organization

in a more sustainable way will mean that managers have to make informed business

decisions based on thorough communication with various stakeholders; understandingtheir requirements; and starting to factor economic, environmental, and social aspects

into how they pursue their business goals. Well examine managing for sustainability

and its importance to planning, organizing, leading, and controlling in other places

throughout the book.

Why Study Management?You may be wondering why you need to study management. If you are an accounting

major, marketing major, or any major other than management, you may not understand

how studying management is going to help you in your career. We can explain the value of

studying management by looking at the universality of management, the reality of work,

and how management applies to anyone wanting to be self-employed.

sustainability A companys ability

to achieve its business goals and

increase long-term shareholder

value by integrating economic,

environmental, and social

opportunities into its business

strategies.

Flexibility Flexibility = Organizing tocope with the unexpected

Reactive

Efciency Efciency = Organizing forthe expected

Adaptability Adaptability = Organizing toanticipate new problems,trends, and opportunities

Routine

Proactive

Exhibit 1-8

Characteristics of Effective Organizations

Source:Basadur Applied Creativity, Presentation March 18 and 19, 2010, Halifax, Nova Scotia.

Explain the value ofstudying management.


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The Universality of ManagementJust how universal is the need for management in organizations? We can say with abso-

lute certainty that management is needed in all types and sizes of organizations, at all

organizational levels, in all organizational work areas, and in all organizations, no matter

what countries they are located in. This is known as the universality of management

(see Exhibit 1-9). Managers in all these settings will plan, organize, lead, and control.

However, this is not to say that management is done the same way in all settings. The dif-

ferences in what a supervisor in a software applications testing facility at Microsoft does

compared with what the CEO of Microsoft does are a matter of degree and emphasis, not

of function. Because both are managers, both will plan, organize, lead, and control, but

how they do so will differ.

Since management is universally needed in all organizations, we have a vested inter-

est in improving the way organizations are managed. Why? We interact with organiza-

tions every single day of our lives. Are you irritated when none of the salespeople in a

department store seems interested in helping you? Do you get annoyed when you call a

technical help desk because your software application is no longer working, go through

seven voice menus, and then get put on hold for 15 minutes? These are all examples

of problems created by poor management. Organizations that are well managedand

we share many examples of these throughout the textdevelop a loyal customer base,

grow, and prosper. Those that are poorly managed find themselves with a decliningcustomer base and reduced revenues. By studying management, you will be able to

recognize poor management and work to get it corrected. In addition, you will be able

to recognize good management and encourage it, whether it s in an organization with

which you are simply interacting or whether its in an organization in which you are

employed.

The Reality of WorkAnother reason for studying management is the reality that most of you, once you graduate

and begin your career, will either manage or be managed. For those who plan on manage-

ment careers, an understanding of the management process forms the foundation upon

universality of management The

reality that management is

needed in all types and sizes of

organizations, at all organizational

levels, in all organizational workareas, and in organizations in all

countries around the globe.

All Sizes of Organizations

Small Large

All Types of Organizations

Prot Not for Prot

All Organizational Levels

Bottom Top

ManagementIs Needed

in . . .

All Organizational AreasManufacturingMarketing

Human ResourcesAccountingInformation Systemsetc.

Exhibit 1-9

Universal Need for Management


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which to build your management skills. For those of you who dont see yourselves in

management positions, you are still likely to have to work with managers. Also, assuming

that you will have to work for a living and recognizing that you are very likely to work in

an organization, you will probably have some managerial responsibilities even if you are

not managers. Our experience tells us that you can gain a great deal of insight into the

way your manager behaves and the internal workings of organizations by studying man-

agement. Our point is that you dont have to aspire to be a manager to gain something

valuable from a course in management.

Self-EmploymentYou may decide that you want to run your own business rather than work for someone

else. This will require that you manage yourself, and may involve managing other people

as well. Thus, an understanding of management is equally important whether you are a

manager in someone elses business or running your own business.

CHAPTER 1

SUMMARY AND IMPLICATIONS

1.Explain why managers are important to an organization. Managers are impor-

tant to organizations for three reasons. First, organizations need their managerial skills and

abilities in uncertain, complex, and chaotic times. Second, managers are critical to getting

things done in organizations. Finally, managers contribute to employee productivity and

loyalty; the way employees are managed can affect the organizations financial perfor-

mance; and managerial ability has been shown to be important in creating organizational

value. Management is not about personalachievementits about helping othersto achieve

for the benefit of the organization as a whole.

We saw that Guy Lalibert is both a visionary who guides the company and,together with Daniel Lamarre, a cheerleader who helps everyone in the organization do

a better job.

2.Tell who managers are and where they work. Managers coordinate and oversee

the work of other people so that organizational goals can be accomplished. Nonmana-

gerial employees work directly on a job or task and have no one reporting to them. In

traditionally structured organizations, managers can be first-line, middle, or top. In other

more loosely configured organizations, the managers may not be as readily identifiable,

although someone must fulfill that role.

Management is coordinating work activities so that they are done efficiently and

effectively. Efficiencymeans doing things right and getting things done at the least cost.


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Effectivenessmeans doing the right things and refers to completing activities that will

help achieve the organizations goals. To do their jobs, managers plan, organize, lead, and

control. This means they set goals and plan how to achieve those goals; they figure out

what tasks need to be done, and who should do them; they motivate individuals to achieve

goals, and communicate effectively with others; and they put accountability measures into

place to make sure that goals are achieved efficiently and effectively.

Mintzbergs managerial roles include interpersonal, which involve people and other

ceremonial/symbolic duties (figurehead, leader, and liaison); informational, which

involve collecting, receiving, and disseminating information (monitor, disseminator,

and spokesperson); and decisional, which involve making choices (entrepreneur, dis-

turbance handler, resource allocator, and negotiator). Mintzbergs newest description

proposes that managing is about influencing action by managing actions directly, by

managing people who take action, and by managing information that impels people

to take action. Katzs managerial skills include technical (job-specific knowledge and

techniques), human (ability to work well with people), and conceptual (ability to

think and express ideas). Technical skills are most important for lower-level managers

while conceptual skills are most important for top managers. Human skills are equallyimportant for all managers.

In Daniel Lamarres role as CEO of Cirque du Soleil, he manages the relationship

with founder Guy Lalibert and, with managers in the rest of Cirque du Soleil, and sets

the goals for the overall organization.

3.

Describe the characteristics of an organization. Managers work in an organi-

zation, which is a deliberate arrangement of people to accomplish some specific purpose.

Organizations have three characteristics: a distinctive purpose, composed of people, and

a deliberate structure. Many of todays organizations are structured to be more open,

flexible, and responsive to changes. Managers work in a variety of organizations, both

large and small, in a variety of industries including manufacturing and the service sector.

The organizations they work for can be publicly held, privately held, public sector, ornot-for-profit.

As Cirque du Soleil has grown since its founding in 1984, the purpose of the

organization has changed and the forms of organization employed to achieve this purpose

have grown in number.

4.Describe the factors that are reshaping and redefining the managers

job. The changes impacting managers jobs include global economic and political

uncertainties, changing workplaces, ethical issues, security threats, and changing technol-

ogy. Managers must be concerned with customer service because employee attitudes and

behaviours play a big role in customer satisfaction. Managers must be concerned with

social media because these forms of communication are becoming important and valu-

able tools in managing. Managers must also be concerned with innovation because it isimportant for organizations to be competitive. And finally, managers must be concerned

with sustainability as business goals are developed.

With the establishment of the ONE DROP Foundation, Guy Lalibert, like many

others, expanded his sense of responsibility beyond the company and its employees to

the global community. The foundation works to fight poverty around the world by providing

sustainable access to safe water.

5.Explain the value of studying management. There are many reasons students

end up in management courses. Some of you are already managers, and are hoping to

learn more about the subject. Some of you hope to be managers someday. And some of


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1. How do managers differ from nonmanagerial employees?

Is your course instructor a manager? Discuss in terms of

managerial functions, managerial roles, and skills.

2. In todays economic environment, which is more impor-

tant to organizationsefficiency, effectiveness, or adapt-

ability? Explain your choice.

3. What are the four functions of management? Briefly

describe each of them.

4. What are the three categories of management roles pro-

posed by Mintzberg? Provide an example of each.

5. The managers most basic responsibility is to

focus people toward performance of work activities

to achieve desired outcomes. What is your interpreta-

tion of this statement? Do you agree with it? Why or

why not?

6. What is an organization? Why are managers important

to an organizations success?

7. Why is an understanding of management important

even if you dont plan to be a manager?

8. How could an organization build an adaptive culture?

REVIEW AND DISCUSSION QUESTIONS

you might not have ever thought about being managers. Career aspirations are only one

reason to study management, however. Any organization you encounter will have manag-

ers, and it is often useful to understand their responsibilities, challenges, and experience.

Understanding management also helps us improve organizations.

When Guy Lalibert launched Cirque du Soleil, management style could be bestdescribed as management by clowning around but this swiftly changed as the company

grew. Management and the principles discussed in this chapter provided the underpinnings

that allowed Cirque du Soleil to thrive and grow, illustrating that management principles

can be applied successfully in diverse settings.

ETHICS DILEMMA

Moving to a management position isnt easy and organiza-

tions often provide little help in making the transition. Would

it surprise you to learn that 26 percent of new managers feel

they are unprepared to transition into management roles,

58 percent of new managers dont receive any training to

help them make the transition, and 50 percent of first-time

managers fail in that transition?45

Does an organization have an ethical responsibility

to assist its new managers in their new positions? Why

or why not? What could organizations do to make this

transition easier? Suppose you were a new manager; what

support would you expect from your organization? From

your manager?

MyManagementLab Study, practise, and explore real management situations with these helpful resources: Interactive Lesson Presentations:Work through interactive presentations and

assessments to test your knowledge of management concepts.

PIA (Personal Inventory Assessments):Enhance your ability to connect

with key concepts through these engaging, self-reection assessments.

Study Plan:Check your understanding of chapter concepts with self-study quizzes.

Simulations:Practise decision-making in simulated management environments.

P I APERSONAL

INVENTORY

ASSESSMENT


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SKILLS EXERCISE

MentoringAbout the Skill

A mentor is someone in the organization, usually older, more

experienced, and in a higher-level position, who sponsorsor supports another employee (a protg) who is in a lower-

level position in the organization. A mentor can teach, guide,

and encourage. Some organizations have formal mentoring

programs, but even if your organization does not, mentoring

should be an important skill for you to develop.

Steps in Developing the Skill

You can be more effective at mentoring if you use the follow-

ing six suggestions as you mentor another person:46

1.

Communicate honestly and openly with your

protg.If your protg is going to learn from you and

benefit from your experience and knowledge, you aregoing to have to be open and honest as you talk about

what you have done. Bring up the failures as well as

the successes. Remember that mentoring is a learning

process, and in order for learning to take place you are

going to have to be open and honest in telling it like

it is.

2.

Encourage honest and open communication from

your protg.You need to know as the mentor what

your protg hopes to gain from this relationship. You

should encourage the protg to ask for information

and be specific about what he or she wants to gain.

3.

Treat the relationship with the protg as a learningopportunity.Dont pretend to have all the answers and

all the knowledge, but do share what you have learned

through your experiences. In your conversations and

interactions with your protg, you may be able to learn

as much from that person as he or she does from you. So

be open to listening to what your protg is saying.

4.

Take the time to get to know your protg. As a

mentor, you should be willing to take the time to get to

know your protg and his or her interests. If you are not

willing to spend that extra time, you should probably not

embark on a mentoring relationship.

5.

Remind your protg that there is no substitute for

effective work performance.In any job, effective work

performance is absolutely essential for success. It does

not matter how much information you provide as a men-

tor if the protg is not willing to strive for effective work

performance.

6.

Know when its time to let go.Successful mentors know

when its time to let the protg begin standing on his or

her own. If the mentoring relationship has been effective,

the protg will be comfortable and confident in handling

new and increasing work responsibilities. Just because

the mentoring relationship is over does not mean that

you never have contact with your protg. It just means

that the relationship becomes one of equals, not one ofteacher and student.

Practising the Skill

Read the following scenario. Write some notes about how

you would handle the situation described. Be sure to refer

to the six suggestions for mentoring.

Scenario

Lora Slovinsky has worked for your department in a software

design firm longer than any other of your employees. You

value her skills and commitment, and you frequently ask for

her judgment on difficult issues. Very often, her ideas havebeen better than yours and you have let her know through

both praise and pay increases how much you appreciate

her contributions. Recently, though, you have begun to

question Loras judgment. The fundamental problem is in

the distinct difference in the ways you both approach your

work. Your strengths lie in getting things done on time and

under budget.

Although Lora is aware of these constraints, her cre-

ativity and perfectionism sometimes make her prolong proj-

ects, continually looking for the best approaches. On her

most recent assignment, Lora seemed more intent than ever

on doing things her way. Despite what you felt were clear

guidelines, she was two weeks late in meeting an important

customer deadline. While her product quality was high, as

always, the software design was far more elaborate than what

was needed at this stage of development. Looking over her

work in your office, you feel more than a little frustrated and

certain that you need to address matters with Lora. What

will you say?

Reinforcing the Skill

The following activities will help you practise and reinforce

the skills associated with mentoring:

1.

If there are individuals on your campus who act as mentors

(or advisers) to first-time students, make an appointment to

talk to one of these mentors. They may be upper-division

students, professors, or staff employees. Ask them about

their roles as mentors and the skills they think it takes to be

an effective mentor. How do the skills they mention relate

to the behaviours described here?

2.

Athletic coaches often act as mentors to their younger

assistant coaches. Interview a coach about her or his

role as a mentor. What types of things do coaches do

to instruct, teach, advise, and encourage their assistant

coaches? Could any of these activities be transferred to

an organizational setting? Explain.


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WORKING TOGETHER: TEAM EXERCISE

A New Beginning

By this time in your life, all of you have had to work withindividuals in managerial positions (or maybe you were

the manager), either through work experiences or through

other organizational experiences (social, hobby/interest,

religious, and so forth). What do you think makes some

managers better than others? Are there certain charac-

teristics that distinguish good managers? Form groups

of three or four individuals. Discuss your experiences with

managersgood and bad. Draw up a l ist of the

characteristics of those individuals you felt were goodmanagers. For each characteristic, indicate which man-

agement function (planning, organizing, leading, and

controlling) you think it falls under. Also identify which of

Mintzbergs 10 roles the good managers seemed to fill.

Were any of the roles missing from your list of characteris-

tics? What explanation can you give for this? As a group,

be prepared to explain the functions and roles that good

managers are most likely to fill.

LEARNING TO BE A MANAGER

Think about where you hope to be in your life five years

from now (that is, your major goal). What is your com-

petitive advantage for achieving your goal? What do you

need to plan, organize, lead, and control to make sure

that you reach your goal?

Looking over Mintzbergs management roles (see

Exhibit 1-4, on page 8), which roles seem comfortable

for you? What areas need improvement?

Keep up with the current business news.

Read books about good and bad examples of managing.

Observe managers and how they handle people and

situations.

Talk to actual managers about their experiencesgood

and bad.

In other classes you take, see what ideas and concepts

potentially relate to being a good manager.

Get experience in managing by taking on leadership

roles in student organizations.

Start thinking about whether or not you would enjoy

being a manager.

Stay informed about the current trends and issues facing

managers.

CASE APPLICATION 1

Google doesnt do anything halfway. So when it decided

to build a better boss, it did what it does bestlook at

data.

47

Using data from performance reviews, feedback sur-veys, and supporting papers turned in for individuals nomi-

nated for top-manager awards, Google correlated phrases,

words, praise, and complaints trying to find what makes for

a great boss. The project, dubbed Project Oxygen, exam-

ined some 100 variables and ultimately identified eight char-

acteristics or habits of Googles most effective managers.

Here are the big eight:

Have a clear vision and strategy for the team

Help your employees with career development

Express interest in your team members success and

well-being

Have technical skills so you can advise the team

Be a good communicator and listen to your team

Be a good coach

Be productive and results-oriented

Empower your team and dont micromanage

At first glance, youre probably thinking these eight attri-

butes seem pretty simplistic and obvious, and you may be

wondering why Google spent all this time and effort to uncover

these. Even Googles vice president for people operations,

Laszlo Bock, said, My first reaction was, thats it? Another

writer described it as reading like a whiteboard gag from an

episode of The Office. But, as the old saying goes, there was

more to this list than meets the eye.

Building a Better Boss


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CASE APPLICATION 2

You might be surprised to find a passionate emphasis placed

on people at an accounting firm. Yet at Lipschultz Levin &

Gray (www.thethinkers.com ), self-described head bean

counter Steven P. Siegel recognizes that his people make

the organization. He describes his primary responsibility

as ensuring that LLGs clients have the best professionals

working for them. And the best way to do this, Siegel feels,

is by developing the creativity, talent, and diversity of its staff

so that new knowledge can be acquired and shared without

getting hung up on formal organizational relationships or

having employees shut away in corner offices.

Siegels commitment to his people starts with the

companys mission:

LLGs goal is to be the pre-eminent provider of the

highest quality accounting, tax and consulting services.

We seek to accomplish this goal by leaving no stone

unturned in exploring new and superior alternatives of

supplying our services, and developing such methods

on a global basis. Our environment promotes creativity,

individual development, group interchange, diversity,

good humour, family and community, all for the pur-

pose of assisting in our clients growth.

To further demonstrate that commitment, Siegel has

implemented several significant changes at LLG. Because

he is convinced that people do their best intellectual work in

Lipschultz Levin & Gray

When Bock and his team began looking closer and rank

ordering the eight items by importance, Project Oxygen got

interestinga lot more interesting! And to understand this,

you have to understand something about Googles approach

to management since its founding in 1999. Plain and simple,

managers were encouraged to leave people alone. Let the

engineers do their stuff. If they become stuck, theyll ask

their bosses, whose deep technical expertise propelled them

to management in the first place. Its not hard to see what

Google wanted its managers to beoutstanding technical

specialists. Mr. Bock explains, In the Google context, wed

always believed that to be a manager, particularly on the engi-

neering side, you need to be as deep or deeper a technical

expert than the people who work for you. However, Project

Oxygen revealed that technical expertise was ranked number

eight (very last) on the list. So, heres the complete list from

most important to least important, along with what each

characteristic entails:

Be a good coach (provide specic feedback and have

regular one-on-one meetings with employees; offer

solutions tailored to each employees strengths)

Empower your team and dont micromanage (give

employees space to tackle problems themselves, but be

available to offer advice)

Be interested in your team members successes and

well-being(make new team members feel welcome and

get to know your employees as people)

Be productive and results-oriented(focus on helping the

team achieve its goals by prioritizing work and getting ridof obstacles)

Be a good communicator and listen to your team(learn to

listen and to share information; encourage open dialogue

and pay attention to the teams concerns)

Help your employees with career development (notice

employees efforts so they can see how their hard work

is furthering their careers; appreciate employees efforts

and make that appreciation known)

Have a clear vision and strategy for the team (lead the

team, but keep everyone involved in developing and

working toward the teams vision)

Have technical skills so you can advise the team(under-

stand the challenges facing the team and be able to help

team members solve problems)

Now, managers at Google arent just encouraged to be

great managersthey know what being a great manager

involves. And the company is doing its part, as well. Using the

list, Google started training managers as well as providing indi-

vidual coaching and performance review sessions. You can say

that Project Oxygen breathed new life into Googles managers.

Bock says the companys efforts paid off quickly. We wereable to have a statistically significant improvement in manager

quality for 75 percent of our worst-performing managers.

DISCUSSION QUESTIONS

1. Describe the findings of Project Oxygen using the func-

tions approach, Mintzbergs roles approach, and the skills

approach.

2.Are you surprised at what Google found out about build-

ing a better boss? Explain your answer.

3. Whats the difference between encouraging managers

to be great managers and knowing what being a great

manager involves?4. What could other companies learn from Googles experi-

ences?

5. Would you want to work for a company like Google? Why

or why not?
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nontraditional settings, every telltale sign of what most people

consider boring, dull accounting work has been eliminated.

None of the firms employees or partners has an office or

desk to call his or her own. Instead, everyone is part of a

nomadic arrangement where stuff (files, phones, laptops) is

wheeled to a new spot every day. Everywhere you look in the

companys office, you see versatility, comfort, and individuality.

For instance, a miniature golf course is located in the middle

of everything. The motivation behind this open office design

is to create opportunities for professionals to gather

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