Managing in Turbulent Times Chapter 1 Managing in Turbulent Times

The Definition of Management Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Managers get things done through the organization Create right systems and environment Organizations need good managers Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

1.1 What Do Managers Do? Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

1.2 The Process of Management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Organizational Performance An organization is a social entity that is goal directed and deliberately structured Organizational effectiveness – providing a product or service that customers value Organizational efficiency refers to the amount of resources used to achieve an organizational goal Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Management Skills Three categories of skills: conceptual, human, technical The degree of the skills may vary but all managers must possess the skills The application of management skills change as managers move up the hierarchy Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

1.3 Relationship of Skills to Management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

When Skills Fail During turbulent times, managers must apply their skills Common management failures: Not listening to customers Misinterpreting signals from marketplace Not building cohesive teams Inability to execute strategies Failure to comprehend and adapt to change Poor communication and interpersonal skills Treating people as instruments, suppressing dissent, and the inability to build a management team characterized by mutual trust and respect Missteps and unethical behavior have been in the news Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Management Types: Vertical Top managers are responsible for the entire organization (titles such as CEO, president, executive director, vice president etc) Middle managers are responsible for business units (department head, division head, manager of quality control etc.) First-line managers are responsible for production of goods and services (supervisor, section chief, line manager, office manager etc.) Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Management Types: Horizontal Functional Managers are responsible for departments that perform specific tasks Line managers (e.g., production managers) Staff managers (e.g., finance, accounting, HR) General Managers are responsible for several departments Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

1.5 Management Levels Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Making The Leap: Becoming A New Manager Organizations often promote star performers to management Becoming a manager is a transformation Move from being a doer to a coordinator Many new managers expect more freedom to make changes Successful managers build teams and networks Many make the transformation “trial by fire” Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Ten Manager Roles Decisional Informational Interpersonal Entrepreneur Monitor Disseminator Spokesperson Interpersonal Figurehead Leader Liaison Decisional Entrepreneur Disturbance Handler Resource Allocator Negotiator Informational roles: Include functions used to maintain and develop an information network Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Manager Roles Manager roles are important to understand but they are not discrete activities Management can’t be practiced as independent parts Managers need time to plan and think Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

New Management Competencies Collaboration across functions, levels, customers, and companies Experimentation and learning are key values Knowledge and information sharing More challenges and changes are on the horizon! This is an exciting time in management. Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.