1. Copyright ©2011 by Cengage Learning. All rights reserved 1 Chapter 1 Management Designed & Prepared by B-books, Ltd. MGMT3 Chuck Williams

2. Copyright ©2011 by Cengage Learning. All rights reserved 2 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. Copyright ©2011 Cengage Learning. All rights reserved 3 Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling 2 2

4. Copyright ©2011 by Cengage Learning. All rights reserved 4 Planning 2.1 Planning Determining organizational goals and a means for achieving them.

5. Copyright ©2011 by Cengage Learning. All rights reserved 5 Deciding where decisions will be made Deciding who will do what jobs and tasks Deciding who will work for whom 2.2 Organizing

6. Copyright ©2011 by Cengage Learning. All rights reserved 6 Leading Motivating Inspiring LeadingLeading 2.3 For Anne Mulcahy, former CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.

7. Copyright ©2011 by Cengage Learning. All rights reserved 7 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed

8. Copyright ©2011 by Cengage Learning. All rights reserved 8 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards

9. Copyright ©2011 by Cengage Learning. All rights reserved 9 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.

10. Copyright ©2011 by Cengage Learning. All rights reserved 10 Kinds of Managers Top Managers Middle Managers First-Line Managers Team Leaders 3 3

11. Copyright ©2011 Cengage Learning. All rights reserved 11 Top Managers 3 3.1 Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO)

12. Copyright ©2011 by Cengage Learning. All rights reserved 12 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

13. Copyright ©2011 by Cengage Learning. All rights reserved 13 Beyond the Book Top Managers in Action CEO James Griffith has worked hard to position Timken, the maker of specialty steel industrial parts, to weather economic hard times. Before the recession, Griffith reduced Timken’s dependence on the Detroit automakers from 40% of revenue to 20%. Timken is branching into industries with high cost of part failure, like aerospace, windmills, and offshore pipelines. Griffith has reduced his workforce by 20% for added flexibility. Source: S. Baker, “Timken Plots a Rust Belt Resurgence”, Business Week, 26 October 2009. 58.

14. Copyright ©2011 Cengage Learning. All rights reserved 14 Middle Managers 3 3.2 Plant Manager Regional Manager Divisional Manager

15. Copyright ©2011 by Cengage Learning. All rights reserved 15 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

16. Copyright ©2011 by Cengage Learning. All rights reserved 16 Beyond the Book Middle Managers in Action Ford’s chief diesel engineer, Adam Gryglak, was charged with producing a new diesel engine in 36 months. Gryglak handpicked his team of engineers from different areas of the company. Gryglak saved time in decision making by having his team work offsite away from the Ford hierarchy. He also allowed parts suppliers to work more independently. Ford released their new Super Duty pickup on time, with the new engine, in September 2009. Source: D. Kiley, “Putting Ford on Fast-Forward”, Business Week, 26 October 2009. 56-57.

17. Copyright ©2011 Cengage Learning. All rights reserved 17 First-Line Managers 3 3.3 Office Manager Shift Supervisor Department Manager

18. Copyright ©2011 by Cengage Learning. All rights reserved 18 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

19. Copyright ©2011 by Cengage Learning. All rights reserved 19 Responsibilities of Team Leaders Facilitate team performance Manage external relations 3.4 Facilitate internal team relationships

20. Copyright ©2011 by Cengage Learning. All rights reserved 20 Mintzberg’s Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975). 4 4 InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

21. Copyright ©2011 by Cengage Learning. All rights reserved 21 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

22. Copyright ©2011 by Cengage Learning. All rights reserved 22 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

23. Copyright ©2011 by Cengage Learning. All rights reserved 23 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

24. Copyright ©2011 by Cengage Learning. All rights reserved 24 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. Copyright ©2011 by Cengage Learning. All rights reserved 25 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Conceptual Skills Motivation to Manage 5 5

26. Copyright ©2011 by Cengage Learning. All rights reserved 26 Management Skills 5 5 Skills are more or less important at different levels of management:

27. Copyright ©2011 by Cengage Learning. All rights reserved 27 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 Mistakes Managers Make Adapted from McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today, Feb 1983. 6 6 © Don Farrall/Photodisc/Getty Images

28. Copyright ©2011 by Cengage Learning. All rights reserved 28 Transition to Management (The First Year)  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 7 7

29. Copyright ©2011 by Cengage Learning. All rights reserved 29 Beyond the Book Boss ≠ Bossy Carol Smith, CEO Elle Group, tells the following story about how managers need to win over their employees: “In sixth grade, I was head of the project to create a mural for the graduating class to hang in the auditorium. That’s a big deal. I got a clipboard, I remember, and then I had all this power and I started bossing everyone around. And within days it was apparent that I was going to have a mutiny on my hands, and I was fired from the mural.” Source: C. Smith, “Corner Office: No Doubt: Women are Better Managers”, interview by A. Bryant, The New York Times, 25 July 2009. http://www.nytimes.com/2009/07/26/business/26corner.html (accessed 10/23/2009). http://www.nytimes.com/2009/07/26/business/26corner.html

30. Copyright ©2011 by Cengage 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.

31. Copyright ©2011 by Cengage Learning. All rights reserved 31 Management Practices in Top Performing Companies Competitive Advantage through People 1. Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Org. Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information 8 8

32. Copyright ©2011 by Cengage Learning. All rights reserved 32 Competitive Advantage through People Competitive Advantages of Well-Managed Companies 8 8 Sales revenues Profits Stock market returns Customer satisfaction Stock market returns