PowerPoint Presentation to Accompany Management Third Canadian Edition John R. Schermerhorn, Jr. Barry Wright Prepared by: Jim LoPresti University of Colorado, Boulder Revised by: Dr. Shavin Malhotra Ryerson University, Toronto, Ontario

Chapter 1: Introducing Management Management 3e- Chapter 1 2

Chapter 1 Learning Objectives 1.1 Describe the current workplace environment in Canada. 1.2 Identify the characteristics of an organization. 1.3 Describe the dynamic forces that make up the general environment, who are the important organizational stakeholders, and what competitive advantage encompasses. 1.4 Identify who managers are and explain what they do. 1.5 Describe the management process and how managerial skills and competencies are learned. Management 3e- Chapter 1 3

Working Today The dynamics of ever-present change extend into the workplace and raise a host of new career challenges. Smart people commit their energies and intellect to continuous learning and personal development. Companies with a future are committed to people. Companies with a future offer inspirational leadership, reward and respect people, and provide supportive work environments. High performing companies gain extraordinary results from people. Management 3e- Chapter 1 4

Working Today Talent People and their talents are the ultimate foundations of organizational performance. Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. A knowledge worker’s mind is a critical asset to employers and adds to the intellectual capital of an organization. Management 3e- Chapter 1 5

Working Today Diversity Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and ablebodiedness. A diverse and multicultural workforce both challenges and offers opportunities to employers. Many call diversity a “business imperative” and view it as an asset How diversity bias can occur in the workplace: Prejudice Discrimination Glass ceiling effect Management 3e- Chapter 1 6

Working Today Globalization National boundaries of world business have largely disappeared. Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy. Management 3e- Chapter 1

Working Today Technology Continuing transformation of the modern workplace through: The Internet World Wide Web Computer networking Information technology Telecommuting/virtual teaming/mobile offices Increasing demand for knowledge workers with the skills to fully use technology. Management 3e- Chapter 1 9

Working Today Ethics Code of moral principles that set standards of conduct of what is good and right. Ethical expectations for modern businesses: Integrity and ethical leadership at all levels Sustainable development Natural environment protection Consumer protection Human rights Management 3e- Chapter 1 10

Working Today Careers Core workers, contract workers, and part-time workers. People must be prepared to be any one of these types of workers. People must make sure that their skills are portable and of current value in employment markets. Management 3e- Chapter 1 11

Organizations Critical skills for success in the new workplace Mastery Networking Entrepreneurship Love of technology Marketing Passion for renewal Management 3e- Chapter 1 12

Organizations Organization A collection of people working together to achieve a common purpose. Organizations provide useful goods and/or services that return value to society and satisfy customer needs. Management 3e- Chapter 1

Organizations Organizations are open systems Composed of interrelated parts that function together to achieve a common purpose. Interact with their environments. Transform resource inputs into product outputs (goods and services). Environmental feedback tells organization how well it is meeting the needs of customers and society. Management 3e- Chapter 1 14

Figure 1.2 Organizations as open systems. Management 3e- Chapter 1 15

Organizations Organizational performance Value creation is a very important notion for organizations. Value is created when an organization’s operations adds value to the original cost of resource inputs. When value creation occurs: Businesses earn a profit. Nonprofit organizations add wealth to society. Management 3e- Chapter 1 16

Organizations Organizational performance Productivity An overall measure of the quantity and quality of outputs relative to the cost of inputs. Performance effectiveness An output measure of task or goal accomplishment. Performance efficiency An input measure of the resource costs associated with goal accomplishment. Management 3e- Chapter 1 17

Organizations Figure 1.3 Productivity and the dimensions of organizational performance. Management 3e- Chapter 1 18

Organizations Workplace changes that provide a context for studying management Priorities on sustainability Valuing human capital Demise of “command-and-control” Emphasis on teamwork Preeminence of technology Importance of networking New workforce expectations Focus on speed Management 3e- Chapter 1 19

Organizational Environment The general environment — all of the background conditions in the external environment of the organization including: Economic – health of the economy Legal-political – norms, customs, social values Socio-cultural – philosophy/objectives of political party running the government Technological – development and availability of technology Natural environment – nature and conditions of environment Management 3e- Chapter 1 20

Organizational Environment Figure 1.4 Sample general environment conditions faced by firms like Starbucks Management 3e- Chapter 1 21

Organizational Environment The specific (task) environment: actual organizations, groups, and persons with whom an organization interacts and conducts business. Includes important stakeholders such as: Customers Suppliers Competitors Regulators Investors/owners Value creation is creating value for and satisfying the needs of constituencies Management 3e- Chapter 1 22

Organizational Environment Figure 1.5 Multiple stakeholders in the specific or task environment of a typical business firm Management 3e- Chapter 1 23

Organizational Environment Competitive advantage: a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace. Companies may achieve competitive advantage in many ways, including: Cost efficiency Higher quality Better delivery Greater flexibility Management 3e- Chapter 1 24

Organizational Environment Environmental uncertainty: a lack of complete information regarding what exists and what developments may occur in the external environment. Two dimensions of environmental uncertainty: Degree of complexity Rate of change Management 3e- Chapter 1 26

Figure 1.6 Dimensions of uncertainty Organizational Environment Figure 1.6 Dimensions of uncertainty Management 3e- Chapter 1 27

Organizational Environment Organizational Effectiveness – sustainable high performance in using resources to accomplish mission and objectives. Systems resource approach focuses on resource acquisition Internal process approach focuses on operations efficiency Goal approach focuses on accomplishing key objectives Strategic Constituencies focuses on stakeholder impact Management 3e- Chapter 1 28

Managers in the New Workplace Importance of human resources and managers People are not ‘costs to be controlled.’ High performing organizations treat people as valuable strategic assets. Managers must ensure that people are treated as strategic assets. Management 3e- Chapter 1

Managers in the New Workplace directly supports and helps activate the work efforts and performance accomplishments of others. the people who managers help are the ones whose tasks represent the real work of the organization Management 3e- Chapter 1 30

Managers in the New Workplace Levels of management Top managers — responsible for performance of an organization as a whole or for one of its larger parts. Middle managers — in charge of relatively large departments or divisions. Team leaders or supervisors — in charge of a small work group of non-managerial workers. Management 3e- Chapter 1 31

Managers in the New Workplace Figure 1.8 Management levels in a typical business and non-profit organizations Management 3e- Chapter 1 32

Managers in the New Workplace Responsibilities of team leaders: Plan meetings and work schedules. Clarify goals and tasks, and gather ideas for improvement. Appraise performance and counsel team members. Recommend pay raises and new assignments. Recruit, train, and develop team members. Management 3e- Chapter 1 33

Managers in the New Workplace Responsibilities of team leaders (cont.): Encourage high performance and teamwork. Inform team members about organizational goals and expectations. Inform higher levels of work unit needs and accomplishments. Coordinate with others teams and support the rest of the organization. Management 3e- Chapter 1 34

Managers in the New Workplace Types of managers Line managers are responsible for work activities that directly affect organization’s outputs. Staff managers use technical expertise to advise and support the efforts of line workers. Functional managers are responsible for a single area of activity. General managers are responsible for more complex units that include many functional areas. Administrators work in public and nonprofit organizations. Management 3e- Chapter 1 35

Managers in the New Workplace Managerial performance and accountability Accountability is the requirement of one person to answer to a higher authority for relevant performance results. Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work. Management 3e- Chapter 1 36

Managers in the New Workplace Quality of work life (QWL) An indicator of the overall quality of human experiences in the workplace. QWL indicators: Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in work itself and in the organization Management 3e- Chapter 1 37

Managers in the New Workplace High performing managers Are well informed of their team’s needs. Work alongside those they supervise. Provide advice and develop support for their team. Help their people perform to the best of their abilities. Management 3e- Chapter 1 38

Managers in the New Workplace The organization as an upside-down pyramid Reflects the changing nature of work today. A manager’s job is to support workers’ efforts. Whole organization is devoted to serving the customer. Management 3e- Chapter 1 39

The Management Process Managers achieve high performance for their organizations by best utilizing its human and material resources. Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals. All managers are responsible for the four functions. The functions are carried on continually. Management 3e- Chapter 1 40

Figure 1.10 Four functions of management. The Management Process Figure 1.10 Four functions of management. Management 3e- Chapter 1 41

The Management Process Functions of management … Planning The process of setting objectives and determining what actions should be taken to accomplish them. Organizing The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans. Management 3e- Chapter 1 42

The Management Process Functions of management … Leading The process of arousing people’s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. Controlling The process of measuring work performance, comparing results to objectives, and taking corrective action as needed. Management 3e- Chapter 1 43

The Management Process Managerial activities and roles Informational roles Involve giving, receiving, and analyzing of information. Interpersonal roles Involve interactions with persons inside and outside the work unit. Decisional roles Involve using information to make decisions in order to solve problems or address opportunities. Management 3e- Chapter 1 44

Figure 1.11 Mintzberg’s 10 Managerial Roles. The Management Process Figure 1.11 Mintzberg’s 10 Managerial Roles. Management 3e- Chapter 1 45

The Management Process Characteristics of managerial work Managers work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Managers work largely through interpersonal relationships. Management 3e- Chapter 1

The Management Process Managerial agendas and networks Agenda setting Development of action priorities for one’s job. Include goals and plans that span long and short time frames. Networking Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas. Management 3e- Chapter 1 47

The Management Process Learning The change in a behaviour that results from experience Lifelong learning The process of continuously learning from daily experiences and opportunities. Career success depends on real commitment to learning. Not just formal classroom learning. Management 3e- Chapter 1 48

The Management Process Essential managerial skills Skill — the ability to translate knowledge into action that results in desired performance. Technical skill — the ability to apply a special proficiency or expertise to perform particular tasks. Human or interpersonal skill — the ability to work well in cooperation with others. Emotional intelligence is the ability to manage ourselves and relationships effectively Conceptual skill — the ability to think critically and analytically to solve complex problems. Management 3e- Chapter 1 49

Figure 1.12 Katz’s Essential Managerial Skills. The Management Process Figure 1.12 Katz’s Essential Managerial Skills. Management 3e- Chapter 1 50

The Management Process Managerial competency A skill-based capability that contributes to high performance in a management job. Competencies for managerial success: Communication Teamwork Self-management Leadership Critical thinking Professionalism Management 3e- Chapter 1 51

Learning Model Commitment to experience and self-assessment Learning from others Learning about yourself End chapter self-assessments Inquiry and Reflection Real-life examples Research brief Learning checks Self-test Analysis and Application Real ethics Issues and situations Class exercise Case study Management 3e- Chapter 1 53

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