1. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. CHAPTER ONE Management Effective Management 3 rd Edition Chuck Williams 1

2. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Headquarters, Amazon.com Seattle, Georgia ●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. How can Amazon do a better job to fix what’s going wrong? What Would You Do? 2

3. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. 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 3

4. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Management is… Effectiveness Efficiency Getting work done through others 1 1 4

5. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. MANAGEMENT FUNCTIONS Planning Organizing Leading Controlling 1 2 3 4 2 2 5

6. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Planning Determining organizational goals and a means for achieving them 2.1 6

7. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. What Really Works 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. 7 Meta-Analysis

8. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Organizing Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom 2.2 8

9. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Leading Motivating Inspiring LeadingLeading For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers. 2.3 9

10. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Controlling Monitoring progress toward goal achievement and taking corrective action when needed 2.4 10

11. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. The Control Process Set standards to achieve goals Make changes to return performance to standards Compare actual performance to standards 2.4 11

12. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. 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 12

13. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. KINDS OF MANAGERS Top Managers Middle Managers First-Line Managers Team Managers 3 3 13

14. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Top Managers Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Informational Officer (CIO) 3.1 14

15. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. 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 15

16. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Middle Managers Plant Manager Regional Manager Divisional Manager 3.2 16

17. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Responsibilities of Middle Managers Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Implement changes or strategies generated by top managers 3.2 17

18. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. First-Line Managers Office Manager Shift Manager Department Manager 3.3 18

19. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Responsibilities of First-Line Managers Manage the performance of entry-level employees Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Teach entry-level employees how to do their jobs Make detailed schedules and operating plans 3.3 19

20. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Responsibilities of Team Managers Facilitate team performance Manage external relations Facilitate internal team relationships 3.4 20

21. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.3 InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator Managerial Roles 4 4 21

22. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Managerial Roles Interpersonal 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 22

23. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Managerial Roles Informational Roles 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 4.2 23

24. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Managerial Roles Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator Entrepreneur Disturbance Handler Resource Allocator Negotiator 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 4.3 24

25. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. 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 25

26. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Technical Skills Human Skills Conceptual Skills Conceptual Skills Motivation to Manage 5 5 26

27. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Skills are more or less important at different levels of management: 5 5 27

28. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Mistakes Managers Make 1. 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 Adapted from Exhibit 1.5, McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 6 6 28

29. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. 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 expectations were wrong  Fast pace  Heavy workload  Job is to be problem-solver and troubleshooter  Initial expectations 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 1.6 7 7 29

30. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Why Management Matters After reading the next section, you should be able to: 8.explain how and why companies can create competitive advantage through people 30

31. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Competitive Advantage through People Management Practices in Top Performing Companies 1. 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 31 Adapted from Exhibit 1.7

32. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Competitive Advantage through People Tim and Richard Smucker are pictured here. J.M. Smucker Company has been on Fortune ’s list of 100 Best Companies to Work For since the list was started in 1998. Smucker’s has extremely low employee turnover and extremely high employee satisfaction. 32

33. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved. Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales Revenues Profits Stock Market Returns Customer Satisfaction http://www.greatplacetowork.com/best/list-bestusa.htm Web Link 8 8 33