Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 Instructor Manual

Chapter 1: Management and Its History

Work Application Sample Answers

Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

1-1. Describe the specific resources used by a present or past boss. Give the ’s job title and department.

My boss was the branch manager at Merchants Bank. The primary resource she used was the tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch or on break, she and the other tellers conducted banking transactions for savings and checking accounts on the computer terminal (physical resources), which was connected to the mainframe computer at the home office. The computer was the main information resource on account activities. We were handling financial resources all day long.

1-2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him or her successful or unsuccessful. Give examples.

My boss owns Bill’s Homemade Ice Cream. Bill’s is only open in the summer. Bill, who is around age 50, is successful because he only checks in a couple of times a day. The rest of the day he is free to go where he wants to and do whatever he wants to do. The reason for his success is that he hires good college students to work and trains them well so that he does not need to be around to supervise them.

1-3. Select a manager, preferably one who is or was your boss, and state the specific management skills he or she uses on the job.

My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part of his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needs interpersonal skills in order to motivate his employees to come to work and to do a good Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 job. Jeff uses his decision-making skills to determine how many people to schedule, when to schedule them, when to order more supplies, and so on.

1-4. Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs each of the four management functions.

My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15 employees. She has to assign her customers to specific hairdressers, pedicurists, and/or manicurists. When people have multiple services, coordination is important so that customers don’t have to wait around for the next service. Sonia does the staffing by hiring and training all the employees. Sonia leads employees to get them to do a good job. She continually reminds all of us how important customer satisfaction is. It works because most of our customers always come back to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to the customers and making sure they are happy with their haircut or nails; and if they are not, she has the employee try to fix the problem. Once in a while she will give a customer the next visit free so she doesn’t lose that person’s business.

1-5. Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs in each of the three management role categories. Be sure to identify at least one of the three or four roles in each category.

I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss, John, spent most of the time playing the interpersonal role of leader because the job was pretty boring, and he tried to help us have a good time by joking around and gaining satisfaction from the people we work with. John spent most of his time in the informational role as the monitor. When the machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d play the disseminator role to get maintenance to come fix the machines. When we have a machine not working, it’s a crisis, and John plays the decisional role of disturbance handler to fix them.

1-6. Identify the three levels of management in a specific organization by level and title. Be sure to give the organization’s name. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office manager, service manager, sales manager, and auto body manager. These four supervisors report to the general manager, who reports to the top manager, president/owner, Mr. Casey.

1-7. Identify which type of boss you have now or have had previously. If that person is or was a functional manager, be sure to specify the functional tasks of the department.

When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a functional manager and is responsible for the produce department. Karen did not hire the staff, but she did have the functional tasks of training them to stock the shelves with produce and supervising their work.

1-8. Would you prefer to work for a small or large business, and a profit or not-for-profit organization?

I’d really like to work for Google, and it is a very large for-profit business.

Review Question Answers

1-1. What are a manager’s resources?

The manager’s resources are human, financial, physical, and informational.

1-2. What are the three management skills?

Management skills include technical, interpersonal, and decision-making skills.

1-3. What are the four functions of management?

The four functions of management include planning, organizing, leading, and controlling.

1-4. What are the three management role categories?

The three management role categories include interpersonal, informational, and decisional roles.

1-5. What are the three levels of management?

The three levels of management are top managers, middle managers, and first-line managers.

1-6. What are the three types of managers?

The three types of managers are general managers, functional managers, and project managers. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 1-7. What are the objectives of this book?

The objectives of this book are to teach you the important concepts of management, to develop your ability to apply the management concepts through critical thinking, and to develop your management skills in your personal and professional lives.

Communication Skills Answers

Applications may also be used as class discussion questions or written assignments to develop communication skills.

1-1. Are you interested in being a manager?

Answers will vary.

1-2. Why is it important to take this course in management?

Answers will vary. Some of the reasons may include that it is important to learn about management because knowledge of what management is can help you to be a better employee, because this course can help you to qualify to become a manager, and because it can help you if you become a manager.

1-3. Is it more important for managers to be efficient or effective? Can you improve both at the same time?

It is more important for managers to be effective than efficient because even if managers do the wrong things very well, they will not be successful.

No. You really can’t improve both at the same time in the sense that you have to be effective before you can be efficient.

1-4. Is management ability universal? In other words, can a good manager in one environment (e.g., computers) also be effective in another (e.g., banking)?

Generally, the answer is yes. Many managers change industries throughout their careers and are effective in more than one industry.

1-5. Some people say the hard skills (technical, finance, quantitative analysis) are more important for managers than soft skills (interpersonal), and some say the opposite is true. What is your view? Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 Although it can make a good debate, it is really hard to say whether one is really more important than the other. A truly good manager has both hard and soft skills; most people don’t progress in management without both.

1-6. Is your college professor a manager? Why or why not?

No. College professors are not really managers, even though they do perform the four functions of management. Students are not employees of the college; in essence, students are customers, so your professor is not a manager.

1-7. When a good employee is promoted to management, which management level is the promotion usually to, and how do the management skills and functions change with the job promotion?

When an employee is promoted, it is usually to the first-line management position. The employee’s technical skills are still important, but interpersonal skills and decision-making skills become more important as a manager. The nonmanager operative employee performs mostly non-management functions. However, as a manager, the new supervisor will have to spend more time planning, organizing, leading, and controlling.

1-8. When an employee is promoted to a manager, do most organizations provide some type of training? Should they? Why or why not?

No. Most organizations don’t provide any training when an employee is promoted to a manager.

Yes. The organization should provide some type of training for the employee. Most successful leaders have had extensive training.

Applying the Concept Answers

Applying the Concept 1-1: Management Skills

Identify each activity as being one of the following types of management skills:

A. Technical

B. Interpersonal

C. Decision making

1—3. The manager is working on fixing a broken machine. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 A. Technical. Fixing a machine takes technical skills.

2—4. The manager is sending an email letting the employees know they exceeded the sales goal.

B. Interpersonal. Although writing an e-mail does require some limited technical ability everyone seems to have in business today, the focus is on communication of information. And communication is an important part of interpersonal skills.

3—5. The manager is scheduling which machines will produce each product next week

C. Decision-making. Scheduling requires the manager to make decisions.

4—1. The manager is trying to figure out a way to solve a problem.

C. Decision-making. Part of the definition of decision-making is solving problems.

5—2. The manager is giving an employee praise for a job well done.

B. Interpersonal. Thanking someone with praise is a form of motivation.

Applying the Concept 1-2: Management Functions

Indicate which type of function the manager is performing in each situation:

A. Planning

B. Organizing

C. Leading

D. Controlling

E. Non-management

6. The manager is encouraging an employee to get a college degree so she can become a manager. C. Leading. The manager is trying to influence the employee; influencing is in the definition of leadership.

7. The manager is conducting a job interview to select a new employee for a new open position in sales. B. Organizing. As stated in the text, selecting is part of staffing-organizing function. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 8. The manager is emptying his trash.

E. Non-management. The manager get the job done through others, and this is not really performing any of the management functions.

9. The manager is scheduling employee work hours for next week.

A. Planning. Scheduling future work hours is part of planning.

10. The manager is giving the workers a pep talk to motivate them to work hard to meet the production quota today with an absent employee.

C. Leading. The pep talk is given to motivate employees, which is intended to influence their performance

11. The manager is conducting an employee’s annual performance evaluation.

B. Organizing. As stated in the text, evaluating employees is part of the staffing-organizing function.

12. The manager is checking how many new computers have been produced so far today.

D. Controlling. The manager is monitoring and measuring progress, which is in the definition of controlling.

Applying the Concept 1-3: Management Roles

Identify each of the managerial activities as part of one of the three role categories:

A. Interpersonal role

B. Informational role

C. Decisional role

13. The manager discusses next year’s budget.

C. Decisional role. As stated in the text, Budgeting is part of the resource allocation role

14. The mayor is cutting the ribbon at the groundbreaking for the new town hall.

A. Interpersonal role. The manager is playing the figurehead role--ceremonial activity.

15. The manager develops a new app that will be sold as an additional source of income. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 C. Decisional role. The manager is playing the entrepreneur role by developing a new app.

16. The manager is reading the monthly budget report.

B. Informational role. The manager is playing the monitor role by reading the report to receive information.

17. The manager shows a new employee how to record her working hours.

A. Interpersonal role. The manager is playing the leader role by showing the employee how to record working hours. Applying the Concept 1-4: Differences among Management Levels

Identify the level of management in the following five instances:

A. Top

B. Middle

C. First-line

18. Managers who report to executives.

B. Middle. Middle managers report to an executive.

19. Managers who need technical skills more than decision-making skills.

C. First-line. First-line managers have a greater need for technical skills than do top or middle managers.

20. Managers who tend to spend more time planning and organizing.

A. Top. Top managers spend more time planning and organizing than do first-line or middle managers.

21. Managers who have operative employees reporting to them.

C. First-line. First-line managers supervise operative employees.

22. Managers who take the long-term strategy and develop short-term operating plans.

B. Middle. Middle managers have a more balanced need for the management skills and functions. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019

Applying the Concept 1-5: Matching History of Management People and Theories

23. Focused on the use of math to make decisions in operations management.

D. Management science. Essentially definition from book.

24. Elton Mayo, human relations movement

B. Behavioral theory. Mayo is listed in the text as a contributor to this theory.

25. Eric Trist, focus on integrating people and technology

E. Sociotechnical theory. Name and definition from book.

26. Henry Fayol, Administrative Theory

A. Classical theory. Fayol is listed as a contributor to this theory.

27. Russell Ackoff, focus on viewing the organization as a whole and as the interrelationship of its parts

D. Systems theory. Name and definition from book.

28. and George Stalker, didn’t believe there is on best management approach for all situations.

F. Contingency theory. Name and revised definition from book.

Join the Discussion Answers

Join the Discussion 1-1: Executive Compensation

In 2013, the CEO-to-worker pay ratio was 331:1, and the CEO-to-minimum-wage-worker pay ratio was 774:1. Oracle’s CEO made an estimated $189,000 per hour in one year. A minimum- wage full-time employee at Walmart would have to work 1,372 hours to earn as much as the CEO makes in one hour. Some say top executives are being overpaid. Fortune 500 CEOs all make millions.

However, not everyone agrees. In capitalist countries, talented CEOs, like in pro sports, are entitled to fetch their price. Top executives should be paid multimillion-dollar compensation Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 packages; after all, if it weren’t for effective CEOs, companies would not be making the millions of dollars of profits they make each year. CEOs deserve a piece of the pie they help create.

1. Do executives deserve to make 300 times more than the average worker?

Answers vary

2. Is it ethical for managers to take large pay increases when laying off employees?

Answers vary

3. Is it ethical for managers to get pay raises when their companies lose money?

Answers vary

4. Are companies being socially responsible when paying executives premium compensation?

Answers vary Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 Case Notes

Chapter 1: Management and Its History

Joe Maddon, Manager,

1. What types of resources does Joe Maddon control as the manager of the Chicago Cubs?

The four types of manager’s resources are human, physical, financial, and informational. Joe Maddon is involved in managing all of these resources. The human resources are the players on his team, his coaching staff, and other support staff like trainers. He oversees the physical resources in terms of the set-up of the locker room, dugout, practice fields, and equipment like batting cages and machines. He is involved with financial resources by working with management of the Cubs organization to make decisions about current player contracts and salaries as well as offers extended to players that he would like to trade for or bring up from the minor leagues. Finally, he controls informational resources in terms of his interactions with his players, the media, and fans regarding the team’s performance, the status of specific players, and any issues related to the team’s upcoming plans.

2. What types of management skills does Joe Maddon use as the manager of the Chicago Cubs?

The three types of management skills are technical, informational, and decision-making. Joe Maddon uses all three skills in his job. First, he uses his technical skills to structure and run his team practices. Specifically, he likes to give his players a lot of autonomy and keep the work environment light and relaxed. He uses informational skills to evaluate the status and readiness of his players before and during games. He is open to using data analytics as one source of intelligence to help him to analyze a situation. Finally, he uses decision-making skills to select a course of action for achieving a desired objective. In fact, he is known for making some very unconventional decisions (e.g., using players to Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 play positions other than what they normally do) if he feels that it will help the team to win a game.

3. How does Joe Maddon carry out the four management functions as the manager of the Chicago Cubs?

The four management functions are planning, organizing, leading, and controlling. Joe Maddon carries out all of these functions in his job. First, he addresses the planning function by developing goals for the team and strategies for achieving these goals. For Maddon, this involved winning a which he achieved in only two years after taking over as the general manager of the Cubs. He engages in the organizing function through the way in which he structures the team by position type (i.e., pitchers and , infielders, outfielders) and the responsibilities he gives to his assistant coaches. He also uses the organizing function by structuring how the team practices and other training methods for player development such as batting practice and scrimmages. In terms of the leading function, Maddon is a master of developing good relationships with his players, like pitcher , and knowing what to say and do to keep them motivated to perform at their best in game situations. Finally, Madison uses the controlling function to evaluate his players and the team’s overall performance after every game. He may then make adjustments to his plan, if he feels that there is a more effective strategy for achieving the team’s goal to win more games, and ultimately, the World Series (again!).

4. How does Joe Maddon apply contingency theory of management in his job as manager of the Chicago Cubs?

A contingency theory of management says that there is no one best way to manage as it depends on the characteristics of the situation. Joe Maddon understands this given his propensity to make unconventional decisions in games because he believes that they are the most appropriate course of action in a particular situation. As noted before, he may use a pitcher to play an infield position or to pinch hit, if the situation calls for it. In the World Series of 2016, he brought in the team’s top relief pitcher, , and kept him in key games for more than one inning which is not common for a pitcher who is typically used to “close” the game in the last inning. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 5. Would you like to work for a manager like Joe Maddon? Why or why not?

Answers will vary based on student responses.

6. What is there to learn about how to be a good manager in a business organization based on studying coaches from the sports industry?

Answers will vary based on student responses.

Jiffy Lube University

1. Which organizational resources did Jiffy Lube Utilize? Explain.

Human resources: Leadership training in Jiffy Lube helps demonstrate the values of the company and the behavior that should be exemplified while leading in this organization.

Physical resources: By having more than 2,100 outlets throughout North America Jiffy Lube facilities provides not only oil changes but maintenance services for air conditioning, fuel systems, and transmissions.”

Informational resources: Training employees not only on job-related technical skills but on store management and leaderships skills using principles from top leadership and business books and insight from industry experts.

Resources and performance: Based on effectiveness and efficiency, which is the objective of the management training program. Managers are aware of the organizational goals and know what they are working towards as indicated by higher customer service scores and car counts, plus lower rates of discounts and turnover.

2. How does Jiffy Lube University develop interpersonal skills?

The University facilitates managerial success since the skills learned or sharpened at the University produce more positive employee and customer interactions that benefits the company as a whole. By going through the training, managers have the opportunity to experience how a store should be managed through an innovative online simulation module. The participants must resolve 32 real-life scenarios, earning points based on the quality of the response. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 3. Explain how the management training contributes the four management functions: planning, organizing, leading and controlling.

By participating in the online simulation resolving 32 real-life scenarios, managers are exposed to all of the facets of daily store management.

Planning (decision-making): Managers must make decisions not only looking at the short-term situation but also factoring in the impact of those decisions long term on employee performance and customer retention.

Organization (structure/authority): Managers have the support of their supervisors through systematic, structured follow-up to the training which reinforces the online learning.

Leading (the industry): Jiffy Lube University leadership training continued the firm’s leadership in employee training as it surged to the top spot on the 2016 Training Top 125 and earned an additional victory lap with its fourth consecutive finish in the Top 5, making it eligible for induction into the Training Top 10 Hall of Fame in 2017

Controlling: After the 3-day instructor led training, the skills the managers learned were applied in the simulations and followed up 30, 60, 90, and 180 days following the session to assess their development as a leader as they continued application of that knowledge.

4. Does using a simulator that looks at “situations” help or hurt management? Explain your answer.

It depends how the employees apply what they learned on the job site. If the employees are using their talking points to enrich the conversation with the customer while reaching the objective of the store than it is extremely helpful. If the employee is now approaching the sale rehearsed lacking interpersonal skill, then it is extremely hurtful to management. 5. What are the benefits to having Jiffy Lube University?

By having Jiffy Lube University, Jiffy Lube is providing education and training to all employees in various regions. Being the central source of knowledge gives them an advantage of being consistent with management and sales in all locations. In addition, exposing managers on how to approach situations has been proven to increase customer Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 service scores and car counts, plus lower rates of discounts and turnover. Knowledge is powerful in a continuous changing competitive environment and Jiffy Lube is a step ahead by ensuring that knowledge is universal throughout all locations.

6. Would you like to attend Jiffy Lube University or a similar program for job training?

Answers will vary based on preference and experience.

Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 Class Activities

Chapter 1: Management and Its History Learning Outcomes

1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers.

1-3. Explain the four management functions and the three management role categories.

1-4. Recall the hierarchy of management levels and describe the differences among the levels in terms of skills needed and functions performed.

1-5. Summarize the major similarities and differences between the classical and behavioral theorists.

Activity 1: Case Studies

Read the following scenarios. Based on your readings, determine what actions you as the manager should take.

1. You are a manager of a hardware store and you are responsible for the following resources: Human, Financial, Physical, and Informational.

A call comes in from Nancy’s German bakery requesting a new door for a security closet. You have one door specialist that is skiing in the Catskills for the week with his family. The customer needs the door completed and ready to be hinged by Wednesday. What should you do?

2. You are a consultant for an Altruistic Management Consultants Inc. You have to meet a client that wants to create small plants closer to their manufacturer. You are charged with comparing a large and small Business for planning, respectively. You find out that large companies have formal written objectives versus the smaller companies that commonly have informal objectives and plans that are not written down. How should begin your presentation to your senior manager? Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 3. You just graduated from the university and you are now beginning your first job. You remember that management skills include technical skills, interpersonal skills, and decision making skills. This is your first day on the job. How are your skills in these three areas at the present time (given that you have no prior experience)? How can you build your skill levels?

4. You and your partner are now in charge of your family business. Your father and mother were from the old school and worked very hard and had certain systems in place. You and your partner realize that the old workplace, in which managers simply told employees what to do, is gone. Today, employees want to be involved in management, and organizations expect employees to work in teams and share in decision making and other management tasks.

This is your first meeting with the workers that have been with the business for more than twenty years but you have just hired three new people with degrees in business management from the local university placement office. How do you address your employees in this meeting?

1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers.

1-3. Explain the four management functions and the three management role categories.

1-4. Recall the hierarchy of management levels and describe the differences among the levels in terms of skills needed and functions performed.

Activity 2: What Managers Do You Know?

Reflect on experiences with managers:

1. Describe the best manager you have personally known.

2. Describe your favorite manager from a novel or from a film.

3. Identify a favorite quotation pertaining to management.

4. Describe your own best management experience.

5. Draw a visual symbol of your view of management.

How do your reflections compare to the description of managers in your text? Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers.

1-3. Explain the four management functions and the three management role categories.

Activity 3: My Best Manager

Ask students to think of their experiences in organizations, this could be full time employment, part-time employment, volunteer work, a student organization or a club. Ask them to think about their best manager in those experiences and describe the attributes that made that person a good manager. Create a list of qualities that describe the manager.

1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers.

Activity 4: What Is Management?

Create a PowerPoint presentation that answers the following questions: What is management? What do managers do? What do managers need to know? How are managers similar to and different to leaders?

1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers.

1-3. Explain the four management functions and the three management role categories.

1-4. Recall the hierarchy of management levels and describe the differences among the levels in terms of skills needed and functions performed.

Activity 5: Classical versus Behavioral Theory-Based Management

Compare and contrast classical versus behavioral based management styles. What style is most effective and why?

1-1. Describe a manager’s responsibility.

1-2. List the three skills of effective managers. Instructor Resource Lussier, Management Fundamentals 8e SAGE Publishing, 2019 1-6. Summarize the major similarities and differences between the classical and behavioral theorists.