MGT 340 Unit 1 Exam

Chapter 1 – Introduction to Management

• Roles and responsibilities of managers

• Managerial characteristics, activities, and skills

Interpersonal Roles:

  • •Figurehead roles

  • Formal authority and leadership

  • •Liaison roles – maintain contacts outside of the vertical chain of command

Informational Roles:

  • •Gather information and disseminate to other groups

  • •Monitor role – scanning the environment

  • •Spokesperson role – inform people outside the organization

Decisional Roles

  • •Entrepreneur – improve business, adapt to change and react to opportunities

    •Crisis Handler – involuntarily react to conditions

    •Resource Allocator – decide who gets what, how much, when, and why

    •Negotiator – with other employees, customers, suppliers and others

Manager Responsibilities:

  • Environmental Scanning: managers must continually watch for changes in the business environment and monitor business indicators such as returns on equity or investment, economic indicators, business cycles, and so forth.

  • Long Range planning: managers occupying executive positions are frequently involved in strategic planning and development.

  • Controlling: managers evaluate and take corrective action concerning the allocation and use of human, financial, and material resources.

  • Supervision: managers continually oversee the work of their subordinates.

  • Coordination: managers often must coordinate the work of others both inside the work unit and out.

  • Internal Consulting: some managers make use of their technical expertise to solve internal problems, acting as inside consultants for organizational change and development.

  • Community Relations: contact must be maintained and nurtured with representatives from various constituencies outside the company, including state and federal agencies, local civic groups, and suppliers.

  • Monitoring Products and Services: managers get involved in planning, scheduling, and monitoring the design, development, production, and delivery of the organization’s products and services.

Characteristics, Skills, activities

  • efficiency is a core skill, with less time than they need.

Three types of manegerial skills:

  1. Technical skills. Managers must have the ability to use the tools, procedures, and techniques of their special areas. An accountant must have expertise in accounting principles, whereas a production manager must know operations management. These skills are the mechanics of the job.

  2. Human relations skills. Human relations skills involve the ability to work with people and understand employee motivation and group processes. These skills allow the manager to become involved with and lead his group.

  3. Conceptual skills. These skills represent a manager’s ability to organize and analyze information in order to improve organizational performance. They include the ability to see the organization as a whole and to understand how various parts fit together to work as an integrated unit. These skills are required to coordinate the departments and divisions successfully so that the entire organization can pull together.

EXECUTIVE MANAGERS: more conceptual, middle Human, Less Technical

MIDDLE MANAGERS: Less Conceptual, middle Human, More Technical

FIRST LINE MANAGERS: Little Conceptual, Middle Human, Lots of Technical


Chapter 3 – History of Management

• Importance of industrial revolution, Hawthorne Effect, Discussion of Nepotism

• Key leaders - Adam Smith, Henri Fayol, Max Weber, and Mary Follet

• Frederick Taylor – principles of scientific management

• Bureaucracy, principles, advantages and disadvantages

Industrial Revolution Importance:

  • This further development of trade led to the establishment of the marketplace as a dominant means of organizing the exchange of goods. The market would coordinate the actions and activities of various participants, thus allowing resources to flow to their most efficient uses.

Henri Fayol and Max Weber wrote complementary contributions to Taylor’s four principles of scientific management framework. Whereas Taylor focused on frontline managers, those who handle workers, Fayol focused on top managers, who set strategy, and Weber focused on middle managers, who implement strategy.

Fayol emphasized three key management principles. First, he stressed unity of command, ensuring each employee received direction from only one supervisor to maintain clarity and accountability. Second, he recognized the importance of social cohesion at work, encouraging teamwork and shared commitment through strong communication. Lastly, he highlighted the need for fairness in decision-making, ensuring justice within the organization to minimize bias.

Fayolism consists of the 14 principles of management:

  1. Division of Work

  2. Authority

  3. Discipline

  4. Unity of Command

  5. Unity of Direction

  6. Subordination of Individual Interest

  7. Remuneration

  8. Centralization

  9. Scalar Chain

  10. Order

  11. Equity

  12. Stability of Tenure of Personnel

  13. Initiative—Employees should be given the necessary level of freedom to create and carry out plans.

  14. Esprit de Corps

In addition to the 14 principles, Fayol identified the five functions of management:

  1. Planning

  2. Organizing

  3. Staffing

  4. Controlling

  5. Directing

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