In this paper theimmediatemanagerial environment in sport and physical education, or physical education and athletics, is the major point of departure and is discussed in detail. Thegeneralmanagerial environment is described in broader terms only as part of a concluding statement. It is argued that the immediate environment of the physical education and athletics unit includes the organizational climate, suppliers, controllers, controllees, advisers, adversaries, and so-called publics with opinions. Four phenomena are explained that make the organizational system of the department, school, or college open to a greater or lesser degree (e.g., departmental members who enter and exit from the unit). After discussing each of the components of the immediate environment (e.g., the suppliers), it is asserted that a manager should also plan to assist the larger community (the general environment) as well by accepting some responsibility for the structure and function of the larger society. This includes the promotion of internationalism in sport and developmental physical activity as well as part of a growing world family. Finally, it is stressed that search committees should increasingly select people who are committed to sound management theory in accord with ethical practice.