Chapter 1: Management Overview © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Learning Objectives After reading and studying this chapter, you should be able to: Explain why organizations need managers Outline factors that affect a manager’s universe Identify three levels of management Describe five management functions Apply management functions to each level of management Summarize ten management roles ©2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Learning Objectives (Cont.) After reading and studying this chapter, you should be able to: Analyze three management skills Contrast the myths with the realities of a manager’s job Discuss the criteria used to evaluate a manager’s performance . © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management and Managers People who allocate and oversee the use of resources Management One or more managers individually and collectively setting and achieving goals by exercising related functions and coordinating various resources © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management and Managers (cont’d) Goal An outcome to be achieved or a destination to be reached over a period of time through the exercise of management functions and the expenditure of resources Objective A short term goal that is achieved in less than a year Specific Measurable Attainable Results-oriented Time-limited © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Organizational Need for Managers 1 Organizational Need for Managers Organization An entity managed by one or more persons to achieve stated goals Basic Tasks of Management (Drucker) Running a business Building an organization Coordinating activities while accepting the values and goals of the organization Values constitute beliefs and basic tenets that are important and meaningful to those individuals and organizations that hold them. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Manager’s Universe 2 The Manager’s Universe Constant change in business requires that managers and organizations meet needs for: Pleasing customers Improving products and services continuously Providing leadership Acting ethically Valuing diversity in their employees Learning to cope with global challenges © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Please Customers Quality The features and characteristics of a product or service that allow it to satisfy requirements of those who use or consume them Customer Any person or group, both inside and outside an organization, who uses or consumes outputs from an organization or its members © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Please Customers (Cont.) Website Company’s lifeline to its customers. Web 2.0 Refers to blogs, wikis, and social networking Customer Relationship Management Long-term management approach to customer relationships which attempts to strengthen ties between the customer and the organization © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

What Is Web 2.0? © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Provide Leadership The ability to get people to follow voluntarily Leaders Develop and articulate the organization’s goals Initiate and facilitate change by exhibiting sets of values, skills, abilities, and traits that are needed by and are an inspiration to others. Create and maintain supportive environments in which employees can figure out what needs to be done Must be present at every level in the organization © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Act Ethically Ethics The branch of philosophy concerned with what constitutes right and wrong human conduct, including values and actions, in a given set of circumstances Personal Ethics Experiences create a moral code of values and attitudes— conscience Managers cannot be leaders without a strong set of moral and ethical values and a commitment to avoid compromising them. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Value Diversity Differing Age Groups Genders Sources of Diversity Cultural and National Origins Ethnic and Racial Backgrounds Mental and Physical Capabilities © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Value Diversity (cont’d) Challenges for Managers Integrating the diversity that exists in their communities and external customers into their work forces Learning about and understanding their employees’ differences Finding ways to utilize and celebrate these differences © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

The Need to Cope with Global Challenges Technological Advances Economic Changes Global Challenges Crises and Terrorism Natural Disasters Social and Political Changes © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

First-Line Management 3 Levels of Management Top Management The chief executive officer (CEO) and/or president and his, her, or their immediate subordinates, usually called vice presidents Middle Management Includes managers below the rank of vice president but above the supervisory level First-Line Management Supervisors, team leaders, and team facilitators who oversee the work of nonmanagement people (e.g., operative employees) Functional Managers Managers whose expertise lies primarily in one or another of the specialty areas—marketing, operations, finance, and human resources © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Figure 1.1 Levels of the management hierarchy © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Figure 1.2 Typical titles in the three levels of management © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Functions 4 Management Planning Organizing Leading Staffing Controlling © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Functions Planning Foundation for the other functions Identify goals and ways to achieve them Assign priorities to each goal Determine the resources required Determine actions that commit: individuals departments entire organization © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Planning Considerations External and Internal Influences on Planning Duration and Scope of Planning Planning Flexibility in Planning © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Functions (cont’d) Organizing Creates a structure in meeting goals by: Determining the tasks to be accomplished Grouping these tasks by employee position Deciding on the relationships the positions have to one another © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Functions (cont’d) Staffing Execute HR management activities: Determine skills and experiences of each position Determine number of persons needed Train employees for positions Leading Help organization and employees achieve goals Serve as role models for expected behaviors Coach, counsel, inspire, and encourage Communicate and listen Respond to concerns and resolve disputes © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Functions (cont’d) Controlling Mechanism to ensure things go according to plan Prevent, identify, and correct deviations from guidelines Identify and correct the causes of deviations © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

5 Figure 1.3 Relative emphasis on each management function at different management levels © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Figure 1.4 Mintzberg’s ten management roles 6 Figure 1.4 Mintzberg’s ten management roles INTERPERSONAL Figurehead Performs symbolic duties Leader Motivates subordinates Liaison Maintains network of contacts INFORMATIONAL Monitor Seeks and receives variety of special information Disseminator Transmits information received to others Spokesperson Transmits to outsiders information about organization DECISIONAL Entrepreneur Searches organization and environment for opportunities Disturbance Initiates corrective action Handler Resource Fulfills responsibility for allocation of organizational resources Allocator Negotiator Represents the organization in major negotiations Source: Chart from The Nature of Managerial Work, by Henry Mintzberg. Copyright © 1973 by Henry Mintzberg. Reprinted by permission of the author. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Figure 1.5 Conflicting role demands on a manager © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Skills 7 Technical Skills The abilities to use the processes, practices, techniques, and tools of the specialty area a manager supervises Human Skills The abilities to interact and communicate successfully with other persons Conceptual Skills The mental capacity to conceive and manipulate ideas and abstract relationships © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Figure 1.6 Proportions of management skills needed by management level © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Management Myths and Realities 8 Management Myths and Realities Myth #1. Managers are reflective, methodical planners with time to systematically plan and work through a day. Myth #2. Effective managers have no regular duties to perform. They establish others’ responsibilities in advance and then relax to watch others do the work. Myth #3. The manager’s job is a science; managers work systematically and analytically to determine programs and procedures. Myth #4. “Managers are self-starting, self-directing, and autonomous, or they would not be managers.” Myth #5. “Good managers seek out the information they need.” Myth #6. “Competition among managers is good for . . . business.” © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Evaluating a Manager’s Performance 9 Evaluating a Manager’s Performance Managers are evaluated by: How effectively they play the three sets of management roles Whether they possess and properly apply management skills How effective they are in setting objectives and achieving goals How efficiently they use their talents and resources How well they demonstrate leadership Whether they act ethically How effectively they make use of the diversity of their people How effectively they and their people please customers © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Why Managers Fail Reasons for Failure Uncertainty about the boss’s expectations Inability to make tough decisions Reasons for Failure Inability to build relationships Taking too long to learn the job Lack of political savvy © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.

Key Terms management hierarchy manager middle management organization quality role technical skills technology top management Web 2.0 conceptual skills customer customer relationship management (CRM) diversity ethics first-line management functional managers goal human skills Leadership management © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom.