Page 35 - Fundamentals of Management Myths Debunked (2017)_Flat

34 Part 1 • Introduction
Exhibit 1–6 Management Activities by Organizational Level

Organizing
24% Organizing Planning
Planning Planning 33% 28%
15% 18% Organizing
Controlling Controlling Controlling 36%
C
10% Leading 13% 14%
51% Leading Leading
36% 22%

First-Level Managers Middle Managers Top Managers
Source: Based on T. A. Mahoney, T. H. Jerdee, and S. J. Carroll, “The Job(s) of Management,”
Industrial Relations 4, no. 2 (1965), p. 103.

necessarily constant. In addition, “what” they plan, organize, lead, and control changes with
small business the manager’s level. For example, as we’ll demonstrate in Chapter 6, top managers are con-
An independent business having fewer than 500 cerned with designing the overall organization’s structure, whereas lower-level managers
employees that doesn’t necessarily engage in any
new or innovative practices and has relatively little focus on designing the jobs of individuals and work groups.
impact on its industry
PrOfit versus nOt-fOr-PrOfit. Does a manager who works for the U.S. Postal Service,
the Memorial Sloan-Kettering Cancer Center, or the Red Cross do the same things that a man-
This first-grader participates in a 10-week
circus arts program offered by Marquis ager at Amazon or Symantec does? That is, is the manager’s job the same in both profit and
Studios, a not-for-profit group that offers arts- not-for-profit organizations? The answer, for the most part, is yes. All managers make deci-
in-education services to New York City public sions, set goals, create workable organization structures, hire and motivate employees, secure
schools. Managed in much the same way as
for-profit firms, Marquis provides programs legitimacy for their organization’s existence, and develop internal political support in order to
that encourage students to explore visual implement programs. Of course, the most important difference between the two is how per-
arts, theater, music, dance, architecture, circus formance is measured. Profit—the “bottom line”—is an unambiguous measure of a business
arts, and puppetry.
organization’s effectiveness. Not-for-profit organiza-
tions don’t have such a universal measure, which
makes performance measurement more difficult. But
don’t think this means that managers in those organi-
zations can ignore finances. Even not-for-profit orga-
nizations need to make money to continue operating.
However, in not-for-profit organizations, “making a
profit” for the “owners” is not the primary focus.
size Of OrganizatiOn. Would you expect the
job of a manager in a local FedEx store that employs
12 people to be different from that of a manager
who runs the FedEx global distribution center in
Memphis? This question is best answered by looking
at the jobs of managers in small businesses and com-
paring them with our previous discussion of manage-
rial roles. First, however, let’s define a small business.
No commonly agreed-upon definition of a small
business is available because different criteria are used
to define small. For example, an organization can be
classified as a small business using such criteria as
number of employees, annual sales, or total assets. For
our purposes, we’ll describe a small business as an
independent business having fewer than 500 employ-
ees that doesn’t necessarily engage in any new or in-
novative practices and has relatively little impact on its
9
industry. So, is the job of managing a small business
different from that of managing a large one? Yes, some
Staten Island Advance/Landov