CHPT 1

1 Schermerhorn & Wright: Management Fundamentals
Chapter 1:
THE DYNAMIC NEW WORKPLACE

CHAPTER 1 STUDY QUESTIONS
In studying this chapter, students should consider the following questions:
What are the challenges of working in the new economy?

What are organizations like in the new workplace?
Who are managers and what do they do?
What is the management process?
How do you learn the essential managerial skills and competencies?
CHAPTER 1 LEARNING OBJECTIVES

After completing this chapter, students should be able to:
Explain how the trends regarding intellectual capital, globalization, technology, diversity, ethics,
and careers are helping to define the new economy.
Identify and describe critical skills for successful careers in the new workplace.
Define organization and explain how organizations operate as open systems.
Define productivity and explain the relationships between productivity, performance
effectiveness, and performance efficiency.
Describe the workplace changes that are important for studying and understanding management.
Describe what a manager does and explain the different levels and types of managers, giving
emphasis to the activities and responsibilities associated with each.
Explain the roles that accountability and quality of work life play in managerial performance.
Explain how managerial work is changing, especially with the adoption of the upside-down
pyramid model of organizations.
Identify and describe the following elements of the management process: the basic functions of
management, key managerial activities and roles, and managerial agendas and networks.
Identify and describe key managerial skills and competencies, and explain how they vary across
management levels.
CHAPTER 1 OVERVIEW
The world of work is undergoing dynamic and challenging changes that provide great opportunities along
with tremendous uncertainty. These changes are due to the impact of important trends regarding
intellectual capital, globalization, technology, diversity, ethics, and careers. Today, individual and
organizational success must be forged within workplaces that are constantly reinventing themselves.
Themes such as empowerment, involvement, participation, self-management, and teamwork are common,

as people manage careers described as flexible and entrepreneurial. To excel in such settings,
organizations must utilize human capital to the fullest potential.
Management is a pervasive element of modern life and a key to organizational performance.
Organizations need managers to guide the activities of their members toward goal accomplishment. The
chapter begins by describing the changing nature of organizations, and the roles that managers play in
meeting the challenges of the modern workplace. The bulk of the chapter examines the work of managers,
with emphasis being placed on the responsibilities associated with different levels and types of managers;
managerial accountability for performance and quality of work life; the changing nature of managerial
work; the functions of management; and key managerial roles, activities, and skills. The chapter
concludes with a discussion of the learning framework that is provided in Management Fundamentals.
CHAPTER 1 LECTURE OUTLINE

Teaching Objective: To increase awareness of how a dynamic and changing environment affects
organizations, managers, and the management process in the new workplace.
Suggested Time: Two to three hours of class time is recommended to present this chapter. Attempts to
cover the material in less time are discouraged since this introductory chapter serves as a foundation for
subsequent topics.
I.
Introduction to the Chapter 1 lecture.

Study questions for Chapter 1
Organization of lecture material
Overview of the dynamic new workplace
II.
Study Question 1: What are the challenges of working in the new economy?
Characteristics of the new economy
Intellectual capital
Globalization
Technology
Diversity
Ethics
Careers
III.
Study Question 2: What are organizations like in the new workplace?

Overview of organizations in the new workplace
What is an organization?
Organizations as systems
Organizational performance
Changing nature of organizations
IV.
Study Question 3: Who are managers and what do they do?

Importance of human resources and managers
What is a manager?
Levels and types of managers
Managerial performance
Changing nature of managerial work
V.
Study Question 4: What is the management process?
Chapter 1: The Dynamic New Workplace 3

Functions of management
Managerial activities and roles
Managerial agendas and networks
VI.
Study Question 5: How do you learn the essential managerial skills and competencies?
Expectations for skill development
Essential managerial skills
VII.
Management Fundamentals Learning Framework.

Chapter organization
VIII.
Study summary for Chapter 1.
CHAPTER 1 SUPPORTING MATERIALS

Textbook Inserts
Getting Connected
Workopolis.com Putting Technology and People To Work!
Figures
Figure 1.1: Organizations as Open Systems
Figure 1.2: Productivity and the Dimensions of Organizational Performance
Figure 1.3: The Organization Viewed as an Upside-Down Pyramid
Figure 1.4: Four Functions of Management
Figure 1.5: Mintzbergs 10 Managerial Roles
Figure 1.6: Katzs Essential Managerial Skills
Managers Notepad
Managers Notepad 1.1: Critical Survival Skills for the New Workplace
Managers Notepad 1.2: Nine Responsibilities of Team Leaders
Thematic Boxes
Canadian Company in the News: Research in Motion
Canadian Mangers: Leadership in Team Building
Around the World: Professionalism Travels the World
Personal Management
Self-awareness
Take It to the Case
Apple Computer, Inc. Where People and Design Create the Future
Integrated Learning Activities
Cases/Projects
Apple Computer Case
Project 1 Diversity Lessons
Self-Assessments
A 21st-Century Manager (#1)
Emotional Intelligence (#2)
Diversity Awareness (#7)

Are You Cosmopolitan? (#18)
Experiential Exercises
My Best Manager (#1)
What Managers Do (#2)
Defining Quality (#3)
The Future Workplace (#14)
Self-Test 1 (Textbook)
CHAPTER 1 LECTURE NOTES

I.
Introduction to the Chapter 1 lecture.

A.
B.
Study questions for Chapter 1 (see PowerPoint Slide 2 for Chapter 1).
1.
What are the challenges of working in the new economy?
2.
What are organizations like in the new workplace?
3.
Who are managers and what do they do?
4.
What is the management process?
5.
How do you learn the essential managerial skills and competencies?
The lecture material for Chapter 1 is organized around the study questions.
1.
C.
Point out to the students that the texts Chapter 1 Learning Preview identifies
the key topics contained in the chapter and links them to the appropriate study
questions.
Overview of the dynamic new workplace. (See PowerPoint Slide 3 for Chapter 1.)
1.
A highly competitive global economy, driven by innovation and technology, has

created both unparalleled opportunities and unprecedented uncertainties.
2.
Smart people and smart organizations create their own futures.
3.
Companies with a future share an important commitment of valuing people
4.
These companies have high performance expectations and offer supportive work
environments that allow peoples talents to be fully utilized while providing them
with both valued rewards and respect for work-life balance.
5.
High performing companies are successful because they are better than their
competitors at gaining extraordinary results from the people working for them.
6.
Management Fundamentals and your management course are designed to

introduce the concepts, themes, and directions that are consistent with career
success and organizational leadership in todays high performance work settings.
II.
A.
B.
C.
D.
E.
Characteristics of the new economy.

1.
In general, the new economy is full of challenging opportunities and dramatic

uncertainty.
2.
The new economy is:

a.
A global economy.
b.
Knowledge-driven.
c.
Performance-driven.
Intellectual capital. (See PowerPoint Slide 4 for Chapter 1.)

1.
People what they know, what they learn, and what they do with it are the
ultimate foundations of organizational performance.
2.
Intellectual capital is the collective brainpower or shared knowledge of a

workforce that can be used to create value.
3.
A knowledge worker is someone whose mind is a critical asset to employers and

who adds to the intellectual capital of the organization.
Globalization. (See PowerPoint Slide 5 for Chapter 1.)

1.
The national boundaries of world business have largely disappeared.
2.
Globalization is the worldwide interdependence of resource flows, product

markets, and business competition that characterizes the new economy.
3.
Countries and peoples are increasingly interconnected in a globalized economy.
4.
The world is increasingly arranged in global economic blocs.
Technology. (See PowerPoint Slide 6 for Chapter 1.)

1.
The Internet, World Wide Web, computers, and information technology have
transformed and continue to transform the modern workplace.
2.
As the pace and complexities of technological change accelerate, the demand for
knowledge workers with the skills to utilize technology to full advantage is
increasing.
Diversity.
F.
G.
1.
Changing demographics are making the American workforce increasingly

diverse.
2.
Workforce diversity describes the composition of a workforce in terms of

differences among the members. These differences include gender, age, race,
ethnicity, religion, sexual orientation, and able-bodiedness. (See PowerPoint
Slide 7 for Chapter 1.)
3.
Todays diverse and multicultural workforce provides a challenge in terms of

required employer support but also offers great opportunities with respect to
potential performance gains. (See PowerPoint Slide 7 for Chapter 1.)
Ethics.
1.
Ethics refers to a code of moral principles that sets standards of what is good
and right as opposed to bad or wrong in the conduct of a person or group.
(See PowerPoint Slide 8 for Chapter 1.)
2.
Modern society expects that businesses and other social institutions conduct their
affairs according to high moral standards.
3.
Corporate governance refers to the active oversight of management decisions

and company actions by boards of directors.
Careers. (See PowerPoint Slide 9 for Chapter 1.)

1.
Charles Handy uses the Irish shamrock to describe the career implications for
employees in todays dynamic environment. Each leaf of the shamrock has a
different career implication.
a.
One leaf contains core workers full-time employees who pursue

career paths with a traditional character. With success and the
maintenance of critical skills, core employees can advance within the
organization and remain employed for a long time.
b.
A second leaf contains contract workers who perform specific tasks as

needed by the organization and are compensated on a contract or fee-forservices basis rather than by a continuing wage or salary.
c.
The third leaf contains part-time workers who are hired only as needed
and for only the number of hours needed.
2.
Workers must be prepared to prosper in any of the shamrocks three leaves.
3.
Charles Handy advises people to maintain a portfolio of skills that are always upto-date and valuable to potential employers.
ENHANCEMENT
Conduct a brainstorming session with students to identify recent examples of each of the preceding
characteristics of 21st century work environments (i.e., intellectual capital, globalization, technology,
diversity, ethics, and careers). After generating a sufficient number of examples, focus class discussion on
the implications of these examples for managerial activities.
III.

A.
B.
Overview of organizations in the new workplace.

1.
Jobs in the new world of work are tied together through information technology.
2.
Organizations in the new workplace are challenging but also provide great
opportunities for making real and positive contributions to society.
3.
Organizations are the principal source of careers and ones economic livelihood.
4.
Managers Notepad 1.1 from the textbook identifies some of the critical
survival skills for success in the new workplace. These skills are (see PowerPoint
Slide 10 for Chapter 1):
a.
Mastery you need to be good at something; you need to be able to

contribute something of value to your employer.
b.
Contacts you need to know people; links with peers and others within
and outside the organization are essential to getting things done.
c.
Entrepreneurship you must act as if you are running your own

business, spotting ideas and opportunities and stepping out to embrace
them.
d.
Love of technology you have to embrace technology; you dont have

to be a technician, but you must be willing and fully able to utilize it.
e.
Marketing you need to be able to communicate your personal

successes and progress and those of your work group.
f.
Passion for renewalyou need to be continuously learning, changing,

and updating yourself to best meet the demands of tomorrow.
What is an organization? (See PowerPoint Slide 11 for Chapter 1.)

1.
An organization is a collection of people working together to achieve a common

purpose.
2.
From societys viewpoint, the purpose of any organization is to provide useful

goods and/or services that return value to society and satisfy customer needs in
order to justify continued existence.
C.
D.
Organizations as systems. (See PowerPoint Slide 12 for Chapter 1.)

1.
Organizations are systems composed of interrelated parts that function together

to achieve a common purpose.
2.
Organizations are open systems that interact with their environments in the
continual process of transforming resource inputs into product outputs in the
form of finished goods and/or services.
3.
Figure 1.1 from the textbook illustrates an open system.
4.
The external environment is a critical element of the open systems view of

organizations because it is both a supplier of resources and the source of
customers, and has a significant impact on the organizations operations and
outcomes. Feedback from the environment tells an organization how well it is
doing in meeting the needs of customers and society.
Organizational performance.
1.
E.
(See PowerPoint Slide 14 for Chapter 1.) When organizations are viewed as
open systems, the notion of value creation is very important. If operations add
value to the original cost of resource inputs, then:
a.
A business organization can earn a profit (sell a product or service for

more than it costs to produce it).
b.
A nonprofit organization can add wealth to society (provide a public

service that is worth more than its cost).
2.
Productivity is an overall measure of the quantity and quality of work

performance with resource utilization taken into account. (See PowerPoint Slide
15 for Chapter 1.)
3.
Figure 1.2 from the textbook shows that productivity can be viewed in terms of
effectiveness and efficiency as a function of goal attainment and resource
utilization. (See PowerPoint Slide 15 for Chapter 1.)
a.
Performance effectiveness is an output measure of task or goal

accomplishment.
b.
Performance efficiency is an input measure of the resource costs

associated with goal accomplishment.
Changing nature of organizations.

1.
The following list identifies workplace changes that provide an important context
for the study of management. (See PowerPoint Slide 17 for Chapter 1.)
a.
Belief in human capital.
b.
Demise of command-and-control.
IV.
c.
Emphasis on teamwork.
d.
Preeminence of technology.
e.
Embrace of networking.
f.
New workforce expectations.
g.
Concern for work-life balance.
h.
Focus on speed.
2.
Organizations that fail to listen to their customers and fail to deliver quality
goods and services at reasonable prices will be left struggling in a highly
competitive environment.
3.
Total quality management (TQM) involves managing with an organizationwide commitment to continuous improvement and meeting customer needs
completely.

A.
B.
C.
Importance of human resources and managers. (See PowerPoint Slide 19 for Chapter 1.)
1.
Toxic workplaces describe organizations that treat their employees mainly as

costs to be reduced.
2.
True high performing organizations treat people as valuable strategic assets.
3.
Those who serve in managerial roles have a special responsibility for ensuring
that the commitment to people as the organizations most important asset is
fulfilled.
What is a manager? (See PowerPoint Slide 19 for Chapter 1.)

1.
A manager is a person in an organization who directly supports and helps

activate the work efforts and performance accomplishments of others.
2.
The people who are supported and helped by managers are usually called direct
reports, team members, work associates or subordinates. These people are the
essential human resources whose tasks represent the real work of the
organization.
3.
Every managers job includes the responsibility of helping other people to

achieve high performance.
Levels and types of managers.

1.
Levels of management. (See PowerPoint Slide 20 for Chapter 1.)

a.
Top managers are responsible for the performance of an organization as

a whole or for one of its larger parts.
b.
c.
(1)
Common job titles for top managers are chief executive officer
(CEO), president, and vice-president.
(2)
Top managers scan the environment, create and communicate

long-term vision, and ensure that strategies and performance
objectives are consistent with the organizations purpose and
mission.
Middle managers are in charge of relatively large departments or

divisions consisting of several smaller work units.
(1)
Common job titles for middle managers are clinic directors in

hospitals; deans in universities; and division managers, plant
managers, and branch sales managers in businesses.
(2)
Middle managers work with top managers and coordinate with

peers to develop and implement action plans to accomplish
organizational objectives.
(3)
A project manager is someone who coordinates complex

projects with task deadlines and while working with many
persons of different expertise both within and outside the
organization. Project management is a very important middle
management job.
A team leader or supervisor is someone in charge of a small work

group composed of non-managerial workers.
(1)
Though job titles for these managerial positions vary greatly,

some of the more common ones are department head, group
leader, and unit manager.
(2)
Team leaders or supervisors ensure that their work teams or units

meet performance objectives that are consistent with higher-level
organizational goals.
ENHANCEMENT
To illustrate the differences among different levels management, ask students to identify people they
know who have been or are now managers. Have these students describe the nature of the work that is
done by the managers they know. Then have the students analyze these descriptions and classify them
according to top managers, middle managers, and team leaders and supervisors.
(3)
Managers Notepad 1.2 from the textbook identifies the

responsibilities of team leaders. These responsibilities are to (see
PowerPoint Slides 22 and 22 for Chapter 1):
(a)
Plan meetings and work schedules.

(b)
Clarify goals and tasks, and gather ideas for

improvement.
(c)
Appraise performance and counsel team members.
(d)
Recommend pay raises and new assignments.
(e)
Recruit, train, and develop team members to meet

performance goals.
(f)
Encourage high performance and teamwork.
(g)
Inform team members about organizational goals and

expectations.
(h)
Inform higher levels of team needs and

accomplishments.
(i)
Coordinate with other teams and support the rest of the

organization.
ENHANCEMENT
Ask the students if they have had any experience as team leaders or supervisors. After having those with
such experience describe their jobs, relate the job components to the list of performance responsibilities of
team leaders and supervisors that is presented in Managers Notepad 1.2. Compare the students
responses to the items on this list.
2.
D.
Types of managers. (See PowerPoint Slide 23 for Chapter 1.)

a.
Line managers are responsible for work activities that make a direct
contribution to the organizations outputs.
b.
Staff managers use special technical expertise to advise and support the
efforts of line workers.
c.
Functional managers have responsibility for a single area of activity.
d.
General managers are responsible for more complex units that include
many functional areas.
e.
Administrators are managers working in public and nonprofit

organizations.
Managerial performance.
1.
All managers help others, working individually and in groups, to achieve

productivity while using their talents to accomplish organizational goals.
2.
Accountability. (See PowerPoint Slide 24 for Chapter 1.)
3.
a.
Accountability is the requirement of one person to answer to a higher

authority for performance results achieved in his or her area of work
responsibility.
b.
Effective managers help others to both achieve high performance

outcomes and experience satisfaction in their work.
Quality of work life. (See PowerPoint Slide 25 for Chapter 1.)

a.
Quality of work life (QWL) is frequently used as an indicator of the

overall quality of human experiences in the workplace.
b.
A high quality of work life is one that offers the individual worker such
things as:
c.
E.
(1)
Fair pay.
(2)
Safe working conditions.
(3)
Opportunities to learn and use new skills.
(4)
Room to grow and progress in a career.
(5)
Protection of individual rights.
(6)
Pride in the work itself and in the organization.
All managers should try to achieve high performance outcomes while

maintaining a high quality of work life environment.
Changing nature of managerial work.

1.
High performing managers are good at building working relationships with

others, helping others to develop their skills and performance competencies,
fostering teamwork, and otherwise creating a work environment that is both
performance driven and satisfying to those who do the required work. (See
PowerPoint Slide 26 for Chapter 1.)
2.
Figure 1.3 from the textbook illustrates the upside-down pyramid, which
provides an alternative way of viewing organizations and the role played by
managers within them. Customers and clients are at the top of the upside-down
pyramid. They are served by the operating workers, who are supported by the
team leaders and managers. In turn, the team leaders and managers are supported
by the top managers. (See PowerPoint Slide 27 for Chapter 1.)
a.
Each individual is a value-added worker, i.e., someone who creates

eventual value for the organizations customers or clients.
b.
The best managers are often known for helping and supporting
rather than directing and order-giving.

V.

A.
Functions of management.
1.
Management is the process of planning, organizing, leading, and controlling the

use of resources to accomplish performance goals. (See PowerPoint Slide 29 for
Chapter 1.)
2.
Figure 1.4 from the textbook illustrates the four functions of management and
their interrelationships. (See PowerPoint Slide 29 for Chapter 1.)
a.
All managers are responsible for the four functions.
b.
The functions are engaged in continually as managers move from task to

task; they are not pursued in a linear step-by-step fashion.
3.
Planning is the process of setting objectives and determining what actions

should be taken to accomplish them. (See PowerPoint Slide 31 for Chapter 1.)
4.
Organizing is the process of assigning tasks, allocating resources, and arranging

the coordinated activities of individuals and groups to implement plans. (See
PowerPoint Slide 31 for Chapter 1.)
5.
Leading is the process of arousing peoples enthusiasm to work hard and direct
their efforts to fulfill plans and accomplish objectives. (See PowerPoint Slide 32
for Chapter 1.)
6.
Controlling is the process of measuring work performance, comparing results to

objectives, and taking corrective action as needed. (See PowerPoint Slide 32 for
Chapter 1.)
ENHANCEMENT
Divide students into discussion groups of five to six members. Have each group select a different campus
organization to analyze. Each group should explore how planning, organizing, leading, and controlling
are exhibited in the chosen campus organization.
B.
Managerial activities and roles.

1.
Figure 1.5 from the textbook lists the ten different managerial roles that
management researcher Henry Mintzberg identified. These managerial roles
which involve managing information, people, and action are organized as
indicated below (see PowerPoint Slide 33 for Chapter 1):
a.
Interpersonal roles (i.e., figurehead, leader, and liaison) involve

interactions with people inside and outside the work unit.
b.
Informational roles (i.e., monitor, disseminator, and spokesperson)

involve giving, receiving, and analyzing information.

c.
Decisional roles (i.e., entrepreneur, disturbance handler, resource

allocator, and negotiator) involve using information to make decisions in
order to solve problems or address opportunities.
ENHANCEMENT
Have students draw on their work, educational, athletic team, or other extracurricular experiences to
identify examples of how people in managerial and leadership positions enact the various interpersonal,
informational, and decisional roles.
2.
C.
VI.
Managerial work has the following characteristics (see PowerPoint Slide 35 for
Chapter 1):
a.
Managers work long hours.
b.
Managers work at an intense pace.
c.
Managers work at fragmented and varied tasks.
d.
Managers work with many communication media.
e.
Managers work largely through interpersonal relationships.
Managerial agendas and networks. (See PowerPoint Slide 36 for Chapter 1.)
1.
According to management scholar John Kotter, agenda setting and networking

are the two basic challenges that effective managers must master.
2.
Agenda setting involves managers development of action priorities for their

jobs; these action priorities include goals and plans spanning long and short time
frames.
3.
Networking is the process of building and maintaining positive relationships with

people whose help may be needed to implement ones work agendas.
A.
B.
Expectations for skill development.

1.
Workers everywhere are expected to become involved, participate fully,

demonstrate creativity, and find self-fulfillment in their work.
2.
These expectations place a premium on lifelong learning, which is the process of

continuously learning from our daily experiences and opportunities.
Essential managerial skills. (See PowerPoint Slide 37 for Chapter 1.)

1.
A skill is an ability to translate knowledge into action that results in desired

performance.

2.
Robert Katz has classified the essential skills of mangers into three categories
technical, human, and conceptual. As shown in Figure 1.6 from the textbook, the
three classes of skills are important for all managers but their relative importance
varies by level of management responsibility. As one moves up the managerial
hierarchy, technical skills decrease in importance; conceptual skills increase in
importance; and human skills remains relatively constant in importance.
a.
A technical skill is the ability to use a special proficiency or expertise to

perform particular tasks.
(1) Technical skills are very important at career entry levels.
b.
c.
A human skill is the ability to work well in cooperation with other

persons.
(1)
Emotional intelligence the ability to effectively manage

ourselves and our relationships is an important component of
human skills.
(2)
Human skills are consistently important across all managerial

levels.
A conceptual skill is the ability to think critically and analytically to

solve complex problems.
(1)
Conceptual skills gain in relative importance for top managers.
ENHANCEMENT
Have students discuss the roles that technical skills, human skills, and conceptual skills play in their
professors performance of their jobs. Then have the students think of their own educational pursuits as a
job. What roles do technical skills, human skills, and conceptual skills play in the students performance
of their jobs?
C.
Skill and outcome assessment.

1.
A managerial competency is a skill-based capability that contributes to high

performance in a management job. (See PowerPoint Slide 39 for Chapter 1.)
2.
Competencies are implicit in the following (see PowerPoint Slide 39 for Chapter
1):
a.
The planning, organizing, leading, and controlling functions of

management.
b.
The demands of the informational, interpersonal, and decisional

managerial roles
c.
Agenda setting and networking.

3.
The key personal characteristics for managerial success are the following (see
PowerPoint Slide 40 for Chapter 1):
a.
Communication the ability to share ideas and findings clearly in

written and oral expression.
b.
Teamwork the ability to work effectively as a team member and team

leader.
c.
Self-management the ability to evaluate oneself, modify behaviour,

and meet performance obligations.
d.
Leadership the ability to influence and support others to perform

complex and sometimes ambiguous tasks.
e.
Critical thinking the ability to gather and analyze information for

creative problem solving.
f.
Professionalism the ability to sustain a positive impression, instill

confidence, and maintain career advancement.
ENHANCEMENT
Using the above list of personal characteristics for managerial success, have each student assess the extent
to which s/he possesses each characteristic. Divide the students into groups of four or five to share their
results and to discuss how they might address the competencies they need to develop.
VII.
Management Fundamentals Learning Framework

A.
Chapter organization.
1.
As shown in Figure 1.7 from the textbook, the chapters are organized into five
parts to provide a framework for learning:
a.
Part 1: Introducing Management focuses on the new workplace, the

evolution of management thought, and the importance of ethics in
organizational life.
b.
Part 2: Context describes the environmental, global, and

entrepreneurial context for modern management.
c.
Part 3: Mission addresses the purpose and goals of organizations and

the action foundations for their accomplishment.
d.
Part 4: Organization examines the nature of organizations as work

systems and processes.

e.
VIII.
A.
Part 5: Leadership introduces the opportunities of leadership in

organizations, with special emphasis on understanding the personal skills
and competencies that are necessary for leadership success.
Study summary for Chapter 1.

Point out to the students that the texts Chapter 1 Study Questions Summary recaps the key
theories, concepts, and ideas in the chapter in relation to the appropriate study questions.
CHAPTER 1 STUDY QUESTIONS SUMMARY

Todays turbulent environment challenges everyone to understand and embrace continuous

change and developments in a new information-driven and global economy.
Work in the new economy is increasingly knowledge based, and people, with their capacity to
bring valuable intellectual capital to the workplace, are the ultimate foundation of organizational
performance.
The forces of globalization are bringing increased interdependencies among nations and
economies as customer markets and resource flows create intense business competition.
Ever-present developments in information technology and the continued expansion of the Internet
are reshaping organizations, changing the nature of work, and increasing the value of people
capable of performing as knowledge workers.
Organizations must value the talents and capabilities of a workforce whose members are
increasingly diverse with respect to gender, age, race and ethnicity, able-bodiedness, and
lifestyles.
Society has high expectations for organizations and their members to perform with commitment
to high ethical standards and in socially responsible ways, including protection of the natural
environment and human rights.
Careers in the new economy require great personal initiative to build and maintain skill
portfolios that are always up-to-date and valuable to employers challenged by the intense
competition and the information age.
Organizations are collections of people working together to achieve a common purpose.

As open systems, organizations interact with their environments in the process of transforming
resource inputs into product outputs.
Productivity is a measure of the quantity and quality of work performance, with resource
utilization taken into account.
High performing organizations are both effective, in terms of goal accomplishment, and efficient,
in terms of resource utilization.
Organizations today emphasize total quality management in the context of technology utilization,
empowerment and teamwork, and concern for work-life balance, among other trends.
Managers directly support and facilitate the work efforts of other people in organizations.
Top managers scan the environment, create vision, and emphasize long-term performance goals;
middle managers coordinate activities in large departments or divisions; team leaders and
supervisors support performance at the team or work-unit level.
Functional managers work in specific areas such as finance or marketing; general managers are
responsible for larger multi-functional units; administrators are managers in public or nonprofit
organizations.
Managers are held accountable for performance results that the manager depends on other persons
to accomplish.
The upside-down pyramid view of organizations shows operating workers at the top serving
customer needs while being supported from below by various levels of management.
The changing nature of managerial work emphasizes being good at coaching and supporting
others, rather than simply directing and order-giving.
The management process consists of the four functions of planning, organizing, leading, and
controlling.
Planning sets the direction; organizing assembles the human and material resources; leading
provides the enthusiasm and direction; controlling ensures results.
Managers implement the four functions in daily work that is intense and stressful, involving long
hours and continuous performance pressures.
Managerial success in this demanding context requires the ability to perform well in
interpersonal, informational, and decision-making roles.
Managerial success also requires the ability to utilize interpersonal networks to accomplish wellselected task agendas.
Careers in the new economy demand continual attention to life-long learning from all aspects of
daily experience and job opportunities.
Skills considered essential for managers are broadly described as technical ability to use
expertise; human ability to work well with other people; and conceptual ability to analyze
and solve complex problems.
Skills and outcomes considered as foundations for managerial success include communication,
teamwork, self-management, leadership, critical thinking, and professionalism.
Management fundamentalsfocuses attention on building your career potential through
understanding the practical implications of important concepts and theories.
CHAPTER 1 KEY TERMS

Accountability
Administrators
Conceptual skill
Controlling
Corporate governance
Discrimination
Emotional intelligence
Ethics
Functional managers
General managers
Glass ceiling effect
Globalization
Human skill
Intellectual capital
Knowledge worker
Leading
Lifelong learning
Line managers
Management
Manager
Managerial
competency
Middle managers
Open system
Organization
Organizing
The requirement of one person to answer to a higher authority for

performance results achieved in his or her area of work responsibility.
Managers who work in public or nonprofit organizations.
The ability to think critically and analytically to solve complex
problems.
The process of measuring work performance, comparing results to
objectives, and taking corrective action as needed.
The active oversight of management decisions and company actions
by boards of directors.
Putting members of a population at a disadvantage by treating them
unfairly and denying them the full benefits of organizational
membership.
The ability to effectively manage ourselves and our relationships.
A code of moral principles that sets standards of what is good and
right as opposed to bad or wrong in the conduct of a person or
group.
Managers who have responsibility for a single area of activity.
Managers who are responsible for more complex organizational units
that include many functional areas.
An invisible barrier or ceiling that prevents women and minorities
from rising above a certain level of organizational responsibility.
The worldwide interdependence of resource flows, product markets,
and business competition that characterizes the new economy.
The ability to work well in cooperation with other persons.
The collective brainpower or shared knowledge of a workforce that
can be used to create value.
Someone whose mind is a critical asset to employers and who adds to
the intellectual capital of the organization.
The process of arousing peoples enthusiasm to work hard and direct
their efforts to fulfill plans and accomplish objectives.
The process of continuously learning from our daily experiences and
opportunities.
Managers who are responsible for work activities that make a direct
contribution to the organizations outputs.
The process of planning, organizing, leading, and controlling the use
of resources to accomplish performance goals.
A person in an organization who directly supports and helps activate
the work efforts and performance accomplishments of others.
A skill-based capability that contributes to high performance in a
management job.
Managers who are in charge of relatively large departments or
divisions consisting of several smaller work units.
A system that interacts with its environment in the continual process of
transforming resource inputs into product outputs in the form of
finished goods and/or services.
A collection of people working together to achieve a common
purpose.
The process of assigning tasks, allocating resources, and arranging the
coordinated activities of individuals and groups to implement plans.

Performance
effectiveness
Performance efficiency
Planning
Prejudice
Productivity
Project managers
Quality of work life
Skill
Staff managers
Supervisor
Team leader
Technical skill
Top managers
Total quality
management (TQM)
Workforce diversity
An output measure of task or goal accomplishment.

An input measure of the resource costs associated with goal
accomplishment.
The process of setting objectives and determining what actions should
be taken to accomplish them.
The holding of negative, irrational opinions and attitudes regarding
members of diverse populations.
A summary measure of the quantity and quality of work performance
with resource utilization taken into account.
People who coordinate complex projects with task deadlines and
while working with many persons of different expertise both within and
outside the organization.
The overall quality of human experiences in the workplace.
The ability to translate knowledge into action that results in desired
performance.
Managers who use special technical expertise to advise and support
the efforts of line workers.
Someone in charge of a small work group composed of nonmanagerial workers. The term supervisor is used interchangeably
with the term team leader.
Someone in charge of a small work group composed of nonmanagerial workers. The term team leader is used interchangeably
with the term supervisor.
The ability to use a special proficiency or expertise to perform
particular tasks.
Managers who are responsible for the performance of an
organization as a whole or for one of its larger parts.
Involves managing with an organization-wide commitment to
continuous improvement and meeting customer needs completely.
Describes the composition of the workforce in terms of differences
among members.

CHPT 1

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

CHPT 1

Hochgeladen von

Copyright:

Verfügbare Formate

1 Schermerhorn & Wright: Management Fundamentals

THE DYNAMIC NEW WORKPLACE

What are the challenges of working in the new economy?

CHAPTER 1 LEARNING OBJECTIVES

2 Schermerhorn & Wright: Management Fundamentals

CHAPTER 1 LECTURE OUTLINE

Introduction to the Chapter 1 lecture.

Study Question 2: What are organizations like in the new workplace?

Study Question 3: Who are managers and what do they do?

Study Question 4: What is the management process?

Chapter 1: The Dynamic New Workplace 3

Management Fundamentals Learning Framework.

Study summary for Chapter 1.

CHAPTER 1 SUPPORTING MATERIALS

A 21st-Century Manager (#1)

Emotional Intelligence (#2)

4 Schermerhorn & Wright: Management Fundamentals

Diversity Awareness (#7)

CHAPTER 1 LECTURE NOTES

Introduction to the Chapter 1 lecture.

What are the challenges of working in the new economy?

What are organizations like in the new workplace?

Who are managers and what do they do?

What is the management process?

How do you learn the essential managerial skills and competencies?

A highly competitive global economy, driven by innovation and technology, has

Smart people and smart organizations create their own futures.

Companies with a future share an important commitment of valuing people

Management Fundamentals and your management course are designed to

Chapter 1: The Dynamic New Workplace 5

Characteristics of the new economy.

In general, the new economy is full of challenging opportunities and dramatic

The new economy is:

Intellectual capital. (See PowerPoint Slide 4 for Chapter 1.)

Intellectual capital is the collective brainpower or shared knowledge of a

A knowledge worker is someone whose mind is a critical asset to employers and

Globalization. (See PowerPoint Slide 5 for Chapter 1.)

The national boundaries of world business have largely disappeared.

Globalization is the worldwide interdependence of resource flows, product

Countries and peoples are increasingly interconnected in a globalized economy.

The world is increasingly arranged in global economic blocs.

Technology. (See PowerPoint Slide 6 for Chapter 1.)

6 Schermerhorn & Wright: Management Fundamentals

Changing demographics are making the American workforce increasingly

Workforce diversity describes the composition of a workforce in terms of

Todays diverse and multicultural workforce provides a challenge in terms of

Corporate governance refers to the active oversight of management decisions

Careers. (See PowerPoint Slide 9 for Chapter 1.)

One leaf contains core workers full-time employees who pursue

A second leaf contains contract workers who perform specific tasks as

Workers must be prepared to prosper in any of the shamrocks three leaves.

Chapter 1: The Dynamic New Workplace 7

Study Question 2: What are organizations like in the new workplace?

Overview of organizations in the new workplace.

Mastery you need to be good at something; you need to be able to

Entrepreneurship you must act as if you are running your own

Love of technology you have to embrace technology; you dont have

Marketing you need to be able to communicate your personal

Passion for renewalyou need to be continuously learning, changing,

What is an organization? (See PowerPoint Slide 11 for Chapter 1.)

An organization is a collection of people working together to achieve a common

From societys viewpoint, the purpose of any organization is to provide useful

8 Schermerhorn & Wright: Management Fundamentals

Organizations as systems. (See PowerPoint Slide 12 for Chapter 1.)