Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 1 Management Prepared by Deborah Baker Texas Christian University Management 4th Edition Chuck Williams
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2 What Would You Do? Amazon grew so fast that it lost control of the basics Sales were growing, but the company was poorly managed Amazon has lost over $3 billion since its inception, but is finally earning profits Headquarters, Amazon.com, Seattle, Georgia. How can Amazon do a better job to fix what’s going wrong?
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 3 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 ©2007 by South-Western, a division of Thomson Learning. All rights reserved 4 Management Is… Effectiveness Efficiency Getting work done through others 1 1
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 5 Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling Management Functions 2 2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 Planning 2.1 Planning Determining organizational goals and a means for achieving them
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 What Really Works: Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success76% This statistic shows that an employee hired on the basis of a good score on a general mental ability test stands a 76 percent chance of being a better performer than someone picked at random from the pool of all job applicants. Meta-Analysis is a study of studies that shows what works and when.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 Organizing Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom 2.2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 9 Leading Motivating Inspiring LeadingLeading 2.3 For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 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.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 Kinds of Managers Top Managers Middle Managers First-Line Managers Team Leaders 3 3
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Top Managers Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO)
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 Responsibilities of Top Managers Creating a context for change Developing commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments 3.1
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 Middle Managers Plant Manager Regional Manager Divisional Manager
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 17 Responsibilities of Middle Managers 3.2 Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Plan and allocate resources to meet objectives
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 18 First-Line Managers Office Manager Shift Supervisor Department Manager
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 19 Responsibilities of First-Line Managers 3.3 Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 20 Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships 3.4 Manage external relations
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 21 Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August Adapted from Exhibit InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22 Managerial Roles Figurehead Leader Liaison Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units 4.1 Interpersonal Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23 Managerial Roles 4.2 Monitor Disseminator Spokesperson Monitor Disseminator Spokesperson Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Informational Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24 Entrepreneur Disturbance Handler Resource Allocator Negotiator Entrepreneur Disturbance Handler Resource Allocator Negotiator Managerial Roles 4.3 Managers adapt to incremental change Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Managers adapt to incremental change Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Decisional Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25 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 ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Conceptual Skills Motivation to Manage 5 5
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27 What Companies Look for in Managers 5 5 Skills are more or less important at different levels of management:
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28 Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 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 6 6
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29 The First Year Management Transition 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 “doer” Communication, listening, positive reinforcement Learning to adapt and control stress Job is people development No longer “doer” 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
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30 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 ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31 Management Practices in Top Performing Companies Competitive Advantage through People 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 8 8
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32 Competitive Advantage through People J.M. Smucker Company has been on Fortune’s list of 100 Best Companies to Work For since the list was started in Smucker’s has extremely low employee turnover and extremely high employee satisfaction. Tim and Richard Smucker are pictured here.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 33 Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales Revenues Profits Stock Market Returns Stock Market Returns Customer Satisfaction Web Link