Chapter 1 Management

2 What Would You Do? Charlie Kim creates a company filled with family and friends Discontent and disorganization develop What mistakes do managers tend to make? What does it take to be a manager?

3 After discussing this section, you should be able to: Learning Objectives What is Management? 1. describe what management is. 2. explain the four functions of management.

4 Management is... Getting work done through others Managers are concerned with:  efficiency getting work done with a minimum of effort, expense or waste  effectiveness accomplishing tasks that help fulfill organizational objectives

5 What Really Works

6 Management Functions “Old” Planning Organizing Leading Controlling “New” Making Things Happen Meeting the Competition Organizing People, Projects, and Processes Leading Adapted from Exhibit 1.1

7 Making Things Happen Determining what you want to accomplish Planning how to achieve those goals Gathering and managing the information needed to make good decisions Controlling performance

8 Meeting the Competition Consider the threat from international competitors Have a well-thought-out competitive strategy Be able to embrace change and foster new product and service ideas Structure their organizations to quickly adapt to changing customers and competitors

9 Organizing People, Projects, and Processes Consideration of people issues Consideration of work processes

10 Leading Motivation Inspiration Communication Perspiration

11 After discussing this section, you should be able to: Learning Objectives What Do Managers Do? 3. describe different kinds of managers. 4. explain the major roles and subroles that managers perform in their jobs.

12 Kinds of Managers Top Managers Middle Managers First-Line Managers Team Leaders

13 Top Managers Responsible for: Creating a context for change Developing attitudes of commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments

14 Middle Managers Responsible for: Planning and allocating resources to meet objectives Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of the subunits and individual managers who report to them Implementing the changes or strategies generated by top managers

15 First-Line Managers Responsible for: Managing the performance of entry-level employees Teaching entry-level employees how to do their jobs Making detailed schedules and operating plans based on middle management’s intermediate range plans

16 Team Leaders Responsible for: Facilitating team performance Managing external relationships Internal team relationships

17 Managerial Roles Interpersonal figurehead leader liaison Informational monitor disseminator spokesperson Decisional entrepreneur disturbance handler resource allocator negotiator H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973) Adapted from Exhibit 1.3

18 After discussing this section you should be able to: Learning Objectives What Does It Take to Be a Manager? 5. explain what companies look for in managers. 6. discuss the top mistakes that managers make in their jobs. 7. describe the transition that employees go through when they are promoted to management.

19 What Companies Look For in Managers Technical skills  specialized knowledge Human Skills  ability to work with others Conceptual Skill  ability to see the organization as whole Motivation to Manage  a desire to be in charge

20 Low ImportanceHigh Importance Top Managers Middle Managers First-line Managers Team Leaders Adapted from Exhibit 1.4 Human Skills Technical Skills Motivation to Manage Conceptual Skills

21 Mistakes Managers Make Insensitive to others Cold, aloof, and/or arrogant Betraying a trust Overly ambitious Specific performance problems with the business Adapted from Exhibit 1.5

22 Mistakes Managers Make (cont’d) Overmanaging: unable to delegate or build a team Unable to staff effectively Unable to think strategically Unable to adapt to boss with different style Overdependent on advocate or mentor Adapted from Exhibit 1.5

23 First-Year Management Transition Adapted from Exhibit 1.6

24 Been There, Done That Travis Reynolds, 24, is a new first-level manager First month was high stress  empowered, but wasn’t empowering others  overly tough on employees  tried too hard to prove himself Learned from his mistakes  now loves his job

25 The Transition to Management Initial Assumptions Exercise formal authority Managing tasks not people Help employees do their jobs Hire and fire Reality Cannot be “bossy” Manage people not tasks Coach employee performance Fast pace, heavy workload

26 After discussing this section, you should be able to: Learning Objectives Why Management Matters. ³ explain how and why companies can create competitive advantage through people.

27 Competitive Advantage Through People: Management Practices Employment Security Selective Hiring Self-Managed Teams & Decentralization High Wages Contingent on Organizational Performance Training and Skill Development Reduction of Status Differences Sharing Information Adapted from Exhibit 1.7

28 What Really Happened Richard Pregiato hired as CEO Each manager created goals & plans Middle managers added No more “work outs” during work