Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 CHAPTER ONE CHAPTER ONE Management Prepared by Deborah Baker Texas Christian University Management 3rd Edition Chuck Williams

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 CHAPTER ONE What Would You Do?  Market share is shrinking for the first time  Inefficiencies exist everywhere  Company culture has changed—for the worse You are the new CEO of Home Depot… How can you turn things around?

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 CHAPTER ONE What Is Management? After reading the next two sections, you should be able to: 1.describe what management is. 2.explain the four functions of management.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 CHAPTER ONE Management is… 1 EffectivenessEffectiveness EfficiencyEfficiency Getting work done through others

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 CHAPTER ONE Management Functions Planning Controlling Organizing Leading Planning Controlling Organizing Leading Making Things Happen Meeting the Competition Organizing People, Projects, and Processes Leading Making Things Happen Meeting the Competition Organizing People, Projects, and Processes Leading Classical Management Functions Updated Management Functions 2

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 CHAPTER ONE What Really Works Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success76%

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 CHAPTER ONE Making Things Happen  Determine what you want to accomplish  Plan how to achieve those goals  Gather and manage the information needed to make good decisions  Control performance 2.1

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 CHAPTER ONE Meeting the Competition 2.2  Consider the threat from international competitors  Have a well-thought-out competitive strategy  Embrace change and foster new product and service ideas  Structure their organizations to adapt to changing customers and competitors

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 CHAPTER ONE Organizing People, Projects, and Processes  Consideration of people issues  Consideration of work processes 2.3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 CHAPTER ONE Leading  Motivation  Inspiration  Communication  Perspiration 2.4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 CHAPTER ONE What Do Managers Do? After reading the next two sections, you should be able to: 3.describe different kinds of managers. 4.explain the major roles and subroles that managers perform in their jobs. 3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 CHAPTER ONE Kinds of Managers  Top Managers  Middle Managers  First-Line Managers  Team Leaders 3 More

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 CHAPTER ONE Jobs and Responsibilities 3 CEO COO CIO General Mgr Plant Mgr Regional Mgr Office Manager Shift Supervisor Department Manager Team Leader

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 CHAPTER ONE Top Managers 3.1 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

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 CHAPTER ONE Middle Managers 3.2 Responsible for… Setting objectives consistent with top management goals, planning strategies Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of subunits and managers who report to them Implementing the changes or strategies generated by top managers

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 CHAPTER ONE First-Line Managers 3.3 Responsible for… Managing the performance of entry-level employees Teaching entry-level employees how to do their jobs Making schedules and operating plans based on middle management’s intermediate-range plans

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 CHAPTER ONE Team Leaders 3.4 Responsible for… Facilitating team performance Managing external relationships Facilitating internal team relationships

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 CHAPTER ONE Managerial Roles 4 Figurehead Leader Liaison Figurehead Leader Liaison Monitor Disseminator Spokesperson Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator Entrepreneur Disturbance Handler Resource Allocator Negotiator InterpersonalInformationalDecisional H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973) Adapted from Exhibit 1.3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 CHAPTER ONE What Does It Take to Be a Manager? After reading the next three sections, you should be able to: 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.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 CHAPTER ONE What Companies Look for in Managers 5 Technical Skills Human Skill Conceptual Skill Conceptual Skill Motivation to Manage

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 21 CHAPTER ONE Mistakes Managers Make 6 Adapted from Exhibit 1.5 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitions 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 CHAPTER ONE The First Year Management Transition 7  Be the boss  Formal authority  Manage tasks  Job is not managing people  Be the boss  Formal authority  Manage tasks  Job is not managing people  Initial expecta- tions were wrong  Fast pace  Heavy workload  Job is to be problem-solver and troubleshooter  Initial expecta- tions were wrong  Fast pace  Heavy workload  Job is to be problem-solver and troubleshooter  No longer “doers”  Communication, listening, positive reinforcement  Learning to adapt and control stress  Job is people development  No longer “doers”  Communication, listening, positive reinforcement  Learning to adapt and control stress  Job is people development Managers’ Initial Expectations After Six Months As a Manager After a Year As a Manager Adapted from Exhibit 1.6

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 CHAPTER ONE The First Year Management Transition 7  Exercise formal authority  Manage tasks, not people  Help employees do their jobs  Hire and fire  Exercise formal authority  Manage tasks, not people  Help employees do their jobs  Hire and fire  Cannot be “bossy”  Manage people, not tasks  Coach employee performance  Fast pace, heavy workload  Cannot be “bossy”  Manage people, not tasks  Coach employee performance  Fast pace, heavy workload Initial AssumptionsReality

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 CHAPTER ONE Been There Done That  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  learned a new system of management  now loves his management job Travis Reynolds, 24, has been a first-level manager for nine months…

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 25 CHAPTER ONE Why Management Matters After reading this section, you should be able to: 8.explain how and why companies can create competitive advantage through people.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 26 CHAPTER ONE Competitive Advantage through People 8 Adapted from Exhibit Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information MANAGEMENT PRACTICES

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 27 CHAPTER ONE Competitive Advantage through People 8  Work forces are smarter, better trained, more motivated, more committed  Greater revenues and profits  Satisfied employees who provide better service to customers  Improved customer satisfaction Competitive Advantages of Well-Managed Companies