In this report Manager is an order variable. PROC REPORT arranges the rows first by the value of Manager (because it is the first variable in the COLUMN statement). ORDER= specifies that values of Manager are arranged according to their formatted values. FORMAT= specifies the format to use for this variable. Text in quotation marks specifies the column headers. 
   define manager / order
                    order=formatted
                    format=$mgrfmt.
                    'Manager';