PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights reserved. Chapter 1 ManagingManaging

Fundamentals of Managment Augmented and truncated by Mr.Welcher 1–21–2Copyright © 2006 Thomson Business and Economics. All rights reserved.

1–31–3 Why Study OB & Management? The better you can work with people, the more successful you will be in both your personal and your professional lives. –Employers want to hire employees who can participate in managing the firm. –Even nonmanagers (Individual Contributors) are being trained to perform management functions.

1–41–4Copyright © 2006 Thomson Business and Economics. All rights reserved. Why Study OB & Management? (cont’d) The study of management builds the skills needed in today’s workplace to succeed in: –Becoming a partner in managing your organization through participative management. –Working in a team and sharing in decision making and other management tasks. The study of management also applies directly to your personal life in helping you to: –Communicate with and interact with people every day. –Make personal plans and decisions, set goals, prioritize what you will do, and get others to do things for you. Society Needs Leaders and Team Players –Be Successful in our Community, Religious, Social, Professional, Recreational and Other Organizations. –Become Leaders for a “Just and Humane World”

1–51–5Copyright © 2006 Thomson Business and Economics. All rights reserved. What Is a Manager’s Responsibility? Manager –The individual responsible for achieving organizational objectives through efficient and effective utilization of resources. Participative? The Manager’s Resources –Human, financial, physical, and informational Performance –Means of evaluating how effectively and efficiently managers use resources to achieve objectives. –Today often means “How” as well as “What”

1–61–6Copyright © 2006 Thomson Business and Economics. All rights reserved. What Does It Take to Be a Successful Manager? Exhibit 1–2 Management Qualities (Survey of Execs.) –Integrity, industriousness, and the ability to get along with people Management Skills –Technical –Human and communication (Teaming) –Conceptual and decision-making skills “Systems Thinking” & “Critical Thinking” The Ghiselli Study(6 Traits of Manager Success – Inverse Order) 6) Initiative, 5)self-assurance,4) decisiveness, 3) intelligence, 2) need for occupational achievement, and 1) supervisory ability

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1–81–8 What Do Managers Do? Management Functions (Different Scope at job level) –Planning Setting objectives and determining in advance exactly (?) how the objectives will be met. Monitor for Change and Anticipate or React PDCA – Plan – Do – Check - Act –Organizing Delegating and coordinating tasks and allocating resources to achieve objectives. –Leading Influencing employees to work toward achieving objectives. Setting an Example (Shadow of the Leader) –Controlling Establishing and implementing mechanisms to ensure that objectives are achieved.

1–91–9Copyright © 2006 Thomson Business and Economics. All rights reserved.

1–10Copyright © 2006 Thomson Business and Economics. All rights reserved. The Systems Relationship among the Management Functions Exhibit 1–3 Management Functions Management Skills

1–11Copyright © 2006 Thomson Business and Economics. All rights reserved. Management Roles Role –A set of expectations of how one will behave in a given situation. Management Role Categories (Mintzberg) –Interpersonal Figurehead, leader, and liaison –Informational Monitor, disseminator, and spokesperson –Decisional Entrepreneur, disturbance handler, resource allocator, and negotiator

1–12Copyright © 2006 Thomson Business and Economics. All rights reserved. Ten Roles Managers Play Exhibit 1–4 Managers play various roles as necessary while performing their management functions so as to achieve organizational objectives.

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1–14Copyright © 2006 Thomson Business and Economics. All rights reserved. Differences Among Managers The Three Levels of Management –Top managers CEO, president, or vice president –Middle managers Sales manager, branch manager, or department head –First-line managers Crew leader, supervisor, head nurse, or office manager –Individual Contributors (ICs) Non-management operative employees –Workers in the organization who are supervised by first-line managers. Professionals/Specialists/Technicians (Knowledge Workers)

1–15Copyright © 2006 Thomson Business and Economics. All rights reserved. Management Levels and Functional Areas Exhibit 1–5 INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE SOME ORGANIZATIONS “FLIP” THIS CHART UPSIDE DOWN

1–16Copyright © 2006 Thomson Business and Economics. All rights reserved. Types of Managers General Managers –Supervise the activities of several departments. Functional Managers –Supervise the activities of related tasks. –Common functional areas: Marketing/Sales/Product Development Operations/Production/Services Delivery Finance/Accounting Human Resources/personnel management Infrastructure (IT, Real Estate, Legal) Project Managers –Coordinate employees across several functional departments to accomplish a specific task.

1–17Copyright © 2006 Thomson Business and Economics. All rights reserved. Management Skills and Functions Differences among management levels in skill needed and the functions performed: Exhibit 1–6

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1–19Copyright © 2006 Thomson Business and Economics. All rights reserved. Individual Management Styles Skill Builder 2 – Page 31 What is Your Preferred Management Style? 12 Points Possible… –Autocratic –Consultative –Participative –Empowerment –Combinations or Flexible Best Management Style? – Adaptive or Situational Leadership

1–20Copyright © 2006 Thomson Business and Economics. All rights reserved. Differences between Large and Small Businesses Exhibit 1–7

1–21Copyright © 2006 Thomson Business and Economics. All rights reserved. Differences between Large and Small Businesses (cont’d) Exhibit 1–7 cont’d ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC ORGANIZATIONS, WITH FOCUS ON THEIR MISSION

1–22Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges Technology and Speed Globalization and Diversity Knowledge, Learning, Quality, and Continuous Improvement Change, Creativity, Innovation, and Entrepreneurship Participative Management, Empowerment, and Teams Knowledge Management Ethics and Social Responsibility Networking and Boundaryless Relationships GENERATIONAL DIFFERENCES

1–23Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (cont’d) Knowledge, Learning, Quality, and Continuous Improvement –Information is the foundation of knowledge which, in turn, is the foundation of competitive advantage. People (employees) are the competitive advantage! Knowledge workers The learning organization Knowledge Management –Involves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes.

1–24Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (cont’d) Change, Creativity, Innovation, and Entrepreneurship –Knowledge management requires that people change in order to continually improve. –The speed of change in modern business has increased because of globalization and changes in technology. And other factors listed. –Creativity is coming up with new ideas for improvements, and innovation is implementing those ideas. –Entrepreneurship is about generating creative ideas and using them through innovation.

1–25Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (cont’d) Participative Management, Empowerment, and Teams –Empowering employees to share in performing management functions by working in teams. –Learning organizations manage knowledge well by empowering teams to be creative and innovative. Ethics and Social Responsibility –Managerial integrity SOX Compliance after Financial Scandals –Situational responses e. g. Katrina

1–26Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (cont’d) Networking and Boundaryless Relationships –Electronic networks Beware the informality of , miss-interpreted messages and first impressions Can be distracting/off task –Relationship networks –Virtual integration QUESTION – ARE ELECTRONIC “TOOLS” CHANGING THE QUALITY OF RELATIONSHIPS? , NetMeeting, Video Conferences?

1–27Copyright © 2006 Thomson Business and Economics. All rights reserved. New Workplace Issues and Challenges (cont’d) Technology and Speed –E-business: work done by using electronic linkages (including the Internet) between employees, partners, suppliers, and customers. –E-commerce: business exchanges or transactions that occur electronically. Globalization and Diversity –Mergers are creating larger globalized firms. –Firms competing globally have to act locally. –Diversity is increasing as minorities grow and markets globalize.