, Part 1
Managing People
Management has been defined as “the art and science of getting things done through people.” Of
course, there are other areas of management: these include making decisions about plant and
equipment, and managing the organization’s money and investments.
However, most managers find managing people to be the most challenging aspect of the job. Those
who succeed at it understand their role in a business and know a bit about organizational structure.
They also know the difference between management and leadership, and they know when
leadership is called for and how to exercise it. They consistently practice certain managerial skills
and use proven procedures for hiring the right people and guiding them toward their goals.
These areas of management are all covered in Part 1 because most of what a manager gets done,
gets done through others.
Chapter 1
The Meaning of Management
In This Chapter
• A (very) brief history of management
• A manager’s responsibility and role
• The Essential Six principles every manager must know
Imagine an army with no general, a team with no coach, or a nation with no leaders. How could the army
beat the enemy? How could the team win games? How could the nation avoid anarchy?
They couldn’t. Similarly, an organization can’t succeed without managers. Managers make sure that an
organization stays, well, organized. Organizing and directing the work of the people in the organization is
the work of managers. People need organization and direction to work effectively, and managers provide
just that.
This chapter introduces you to the development and role of management and covers the key principles of
managing any business.
What Makes a Good Manager?
Management is generally defined as “getting things done through others.” This definition emphasizes that
a manager plans and guides the work of other people. Some (cynical) individuals think this means that
,managers don’t have any work to do themselves. As you’ll learn in this book (if you don’t already know
it), managers have an awful lot of work to do.
Organizing and directing the work of others is known as administration. In a business, it is called business
administration. (In a hospital, it is called health-care administration. In a government agency, it is called
public administration.) Thus, business administration means managing a business, and an MBA—Master
of Business Administration—degree prepares a person to manage a business. In a graduate-school MBA
program, you learn about the structure, parts, and purpose of a business, and about the skills and tools
you need to manage the business. The skills include planning and leadership skills, and the tools include
budgets, financial statements, and methods of analyzing business decisions.
MBA LINGO
Management is the art and science of getting things done through others, generally by organizing and
directing their activities on the job. A manager is therefore someone who defines, plans, guides, assists,
and assesses the work of others, usually people for whom the manager is responsible in an organization.
Business administration means organizing and directing the activities of a business. An MBA, or Master
of Business Administration, degree is a postgraduate degree from a university with a business school (or
B-school, for short). Essentially, the program covers the structure and purpose of a business and its various
functions, and the skills and tools needed to manage these functions—just as this book does.
As in politics or sports, some people seem more naturally suited to being managers than others. In our
society, people often believe that men and women with a certain personality or appearance are best
qualified to be managers. Often, however, it doesn’t work that way. Management isn’t about personality
or appearance. I’ve known many managers with the so-called right image who were “empty suits.”
It takes dedication to avoid being an empty suit, someone who enjoys being a manager but shirks the
actual work. And it is work. A manager must think ahead several moves; planning is central to good
management. A manager must deal skillfully with people, giving positive feedback for solid performance,
helping those with performance problems, and, occasionally, terminating those who cannot improve their
performance. Managers must keep financial considerations, as well as customers’ needs, front and center,
because a business exists to make money by serving a customer need.
, Nonetheless, despite these “musts,” some managers try to avoid stepping up to all the responsibilities of
managing. Some managers fail to plan realistically, don’t develop their interpersonal skills, or lose sight of
financial considerations and customer needs. Such managers not only make it tough for their employees,
superiors, and customers, but they also give managers a bad name. They give people the idea that a
manager is someone paid to do nothing—who “watches while others do the work.” Managers who are
worthy of the name take their responsibilities and roles seriously.
A manager has an area of responsibility, an activity or a function that he or she is responsible for running.
A financial manager is responsible for some area of finance. In sales, an account manager is responsible
for a set of accounts. A departmental or regional manager is responsible for a specific department or
region.
A manager’s role is to run his or her function properly. It may be as large as the entire company, as is the
case for the chief executive officer (CEO), or it may be as small as the mailroom. Whatever the area of
responsibility, management comes down to doing a specific set of tasks well and consistently. Before we
look at these tasks, let’s view the role of the manager in historical context.
The Professional Manager
How can “being the boss” be a profession? A profession has its own principles, practices, and standards,
and it requires a course of study. (Think of the traditional professions: medicine, law, engineering,
architecture, and accounting.) Does management share any of these characteristics?
The answer is yes, and it has been since the early 1900s. When factories became large and complex
enough to demand skills beyond those of a simple owner-boss, management grew out of economics and
engineering to become a distinct discipline.
The need to apply concepts from economics and engineering became apparent as businesses grew
beyond relatively small, simple craft operations and farms into larger, more complex operations capable
of higher production. Economics enabled managers to analyze ways to drive down costs and increase
profits. Engineering helped managers develop ways to optimize the physical (as opposed to financial)
aspects of production. These include decisions regarding factory layouts, division of labor, and methods
of distributing products.
Managing People
Management has been defined as “the art and science of getting things done through people.” Of
course, there are other areas of management: these include making decisions about plant and
equipment, and managing the organization’s money and investments.
However, most managers find managing people to be the most challenging aspect of the job. Those
who succeed at it understand their role in a business and know a bit about organizational structure.
They also know the difference between management and leadership, and they know when
leadership is called for and how to exercise it. They consistently practice certain managerial skills
and use proven procedures for hiring the right people and guiding them toward their goals.
These areas of management are all covered in Part 1 because most of what a manager gets done,
gets done through others.
Chapter 1
The Meaning of Management
In This Chapter
• A (very) brief history of management
• A manager’s responsibility and role
• The Essential Six principles every manager must know
Imagine an army with no general, a team with no coach, or a nation with no leaders. How could the army
beat the enemy? How could the team win games? How could the nation avoid anarchy?
They couldn’t. Similarly, an organization can’t succeed without managers. Managers make sure that an
organization stays, well, organized. Organizing and directing the work of the people in the organization is
the work of managers. People need organization and direction to work effectively, and managers provide
just that.
This chapter introduces you to the development and role of management and covers the key principles of
managing any business.
What Makes a Good Manager?
Management is generally defined as “getting things done through others.” This definition emphasizes that
a manager plans and guides the work of other people. Some (cynical) individuals think this means that
,managers don’t have any work to do themselves. As you’ll learn in this book (if you don’t already know
it), managers have an awful lot of work to do.
Organizing and directing the work of others is known as administration. In a business, it is called business
administration. (In a hospital, it is called health-care administration. In a government agency, it is called
public administration.) Thus, business administration means managing a business, and an MBA—Master
of Business Administration—degree prepares a person to manage a business. In a graduate-school MBA
program, you learn about the structure, parts, and purpose of a business, and about the skills and tools
you need to manage the business. The skills include planning and leadership skills, and the tools include
budgets, financial statements, and methods of analyzing business decisions.
MBA LINGO
Management is the art and science of getting things done through others, generally by organizing and
directing their activities on the job. A manager is therefore someone who defines, plans, guides, assists,
and assesses the work of others, usually people for whom the manager is responsible in an organization.
Business administration means organizing and directing the activities of a business. An MBA, or Master
of Business Administration, degree is a postgraduate degree from a university with a business school (or
B-school, for short). Essentially, the program covers the structure and purpose of a business and its various
functions, and the skills and tools needed to manage these functions—just as this book does.
As in politics or sports, some people seem more naturally suited to being managers than others. In our
society, people often believe that men and women with a certain personality or appearance are best
qualified to be managers. Often, however, it doesn’t work that way. Management isn’t about personality
or appearance. I’ve known many managers with the so-called right image who were “empty suits.”
It takes dedication to avoid being an empty suit, someone who enjoys being a manager but shirks the
actual work. And it is work. A manager must think ahead several moves; planning is central to good
management. A manager must deal skillfully with people, giving positive feedback for solid performance,
helping those with performance problems, and, occasionally, terminating those who cannot improve their
performance. Managers must keep financial considerations, as well as customers’ needs, front and center,
because a business exists to make money by serving a customer need.
, Nonetheless, despite these “musts,” some managers try to avoid stepping up to all the responsibilities of
managing. Some managers fail to plan realistically, don’t develop their interpersonal skills, or lose sight of
financial considerations and customer needs. Such managers not only make it tough for their employees,
superiors, and customers, but they also give managers a bad name. They give people the idea that a
manager is someone paid to do nothing—who “watches while others do the work.” Managers who are
worthy of the name take their responsibilities and roles seriously.
A manager has an area of responsibility, an activity or a function that he or she is responsible for running.
A financial manager is responsible for some area of finance. In sales, an account manager is responsible
for a set of accounts. A departmental or regional manager is responsible for a specific department or
region.
A manager’s role is to run his or her function properly. It may be as large as the entire company, as is the
case for the chief executive officer (CEO), or it may be as small as the mailroom. Whatever the area of
responsibility, management comes down to doing a specific set of tasks well and consistently. Before we
look at these tasks, let’s view the role of the manager in historical context.
The Professional Manager
How can “being the boss” be a profession? A profession has its own principles, practices, and standards,
and it requires a course of study. (Think of the traditional professions: medicine, law, engineering,
architecture, and accounting.) Does management share any of these characteristics?
The answer is yes, and it has been since the early 1900s. When factories became large and complex
enough to demand skills beyond those of a simple owner-boss, management grew out of economics and
engineering to become a distinct discipline.
The need to apply concepts from economics and engineering became apparent as businesses grew
beyond relatively small, simple craft operations and farms into larger, more complex operations capable
of higher production. Economics enabled managers to analyze ways to drive down costs and increase
profits. Engineering helped managers develop ways to optimize the physical (as opposed to financial)
aspects of production. These include decisions regarding factory layouts, division of labor, and methods
of distributing products.
