Summary of Chapters 1 - 8.docx

Summary of Chapters 1 - 8.docx - Chapter 1 The Art of...

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Chapter 1 The Art of Management Defined Getting things done. Through people. Thus, managers are task oriented, achievement oriented, and people oriented. And they operate within an organization—a group of people who work together to achieve some specific purpose. More formally, management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization’s resources. Note the words efficiently and effectively, which basically mean “doing things right.” Efficiency—the means. Efficiency is the means of attaining the organization’s goals. To be efficient means to use resources—people, money, raw materials, and the like—wisely and cost-effectively. Effectiveness—the ends. Effectiveness regards the organization’s ends, the goals. To be effective means to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization’s goals. Good managers create value. The reason is that in being a manager you have a multiplier effect: Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone. Thus, while a solo operator such as a salesperson might accomplish many things and incidentally make a very good living, his or her boss could accomplish a great deal more—and could well earn two to seven times the income. And the manager will undoubtedly have a lot more influence. The business press frequently reports on the astronomical earnings of top chief executive officers. The top earner in 2014 was David M. Zaslav, CEO of Discovery Communications, whose total compensation topped $156.1 million.23 However, this kind of huge payday isn’t common. Median compensation for top-ranked CEOs in North America in 2015, based on a survey of 500 bosses of companies listed by Standard & Poor, was $10.8 million.24 The more usual median wage for CEOs in 2015 was $737,613, according to Salary.com, and for general and operations managers $102,750, according to the Bureau of Labor Statistics.25 Managers farther down in the organization usually don’t make this much, of course; nevertheless, they do fairly well compared with most workers. At the lower rungs, managers may make between $35,000 and $60,000 a year; in the middle levels, between $45,000 and $120,000. (For examples of managerial salaries, go to ) There are also all kinds of fringe benefits and status rewards that go with being a manager, ranging from health insurance to stock options to large offices. And the higher you ascend in the management hierarchy, the more privileges may come your way: personal parking space, better furniture, on up to— for those on the top rung of big companies—company car and driver, corporate jet, company-paid resort-area villa, and even executive sabbaticals (months of paid time off to pursue alternative projects).
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Here are just a few of the payoffs of studying management as a discipline: You will understand how to deal with organizations from the outside.
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