1. Chapter 1: Management Fundamentals
Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
© John Wiley & Sons Canada, Ltd.

2. Planning Ahead — Chapter 1 Learning Goals
Understand the current workplace environment in Canada
Identify the characteristics of an organization
Understand who managers are and what they do
Describe the management process and how managerial skills and competencies are learned

3. Overview of the New WorkPlace
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 and rewards, respect people, and provide supportive work environments.
High performing companies gain extraordinary results from people.

4. WORKING TODAY
Talent
Diversity
Globalization
Technology
Ethics
Careers

5. 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 knowledgeable worker’s mind is a critical asset to employers and adds to the intellectual capital of an organization.

6. DIVERSITY
Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness.
A diverse and multicultural workforce both challenges and offers opportunities to employers.
Many call diversity a “business imperative” and view it as an asset.

7. Diversity (Cont’d) How diversity bias can occur in the workplace:
Prejudice: the display of negative, irrational attitudes toward members of a diverse population.
Discrimination: actively denies minority members the full benefits of organizational membership.
Glass ceiling effect: an invisible barrier limiting career advancement of women and minorities.

8. VideO: A Science Glass Ceiling - Globe & mail
(external link)
Link to video:

9. 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.
© John Wiley & Sons Canada Ltd.

10. 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.

11. Video: SOCIAL MEDIA revolution
Social Media Revolution by Erik Qualman
(external link)
Link to video:

12. ETHICS
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

13. 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

14. EARLY CAREER SURVIVAL SKILLS
Critical skills for success in the new workplace
Mastery
Networking
Entrepreneurship
Love of technology
Marketing
Passion for renewal

15. What is an 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

16. organizations (Cont’d)
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

17. Figure 1.3 organizations as open systems

18. organizations (Cont’d)
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
© John Wiley & Sons Canada Ltd.

19. 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

20. Figure 1.4 productivity and the dimensions of organizational performance

21. Changing nature of organizations
Workplace changes that provide a context for studying management:
Renewed belief in employees
Disappearance of “command-and-control”
Emphasis on teamwork
Prominence of technology
Embrace of networking
New workforce expectations
Concern for work-life balance
Focus on speed

22. 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.

23. managers
Directly support and help 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

24. Levels of management
Top managers: responsible for the 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

25. Figure 1.5 management levels in a typical business and non-profit organizations

26. 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

27. 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

28. Organizational effectiveness
In order to attain sustainable high performance, organizations use resources effectively to accomplish missions and objectives.
The Systems Resource Approach focuses on resource acquisition
The Internal Process Approach focuses on operations efficiency
The Goal Approach focuses on accomplishing key objectives
Strategic Constituencies focus on stakeholder impact

29. Managerial performance
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.

30. Managerial performance (Cont’d)
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

31. 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 others perform to the best of their abilities

32. 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

33. Figure 1.6 – the organization as an upside-down pyramid

34. 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.

35. Figure 1.7 the four functions of management

36. 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

37. Functions of management (Cont’d)
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

38. Managerial roles and activities
Informational roles:
Involves giving, receiving, and analyzing information
Interpersonal roles:
Involves interactions with persons inside and outside the work unit
Decisional roles:
Involves using information to make decisions, solve problems, or address opportunities

39. Figure 1.8 mintzberg’s 10 managerial roles

40. 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 communications media
Managers work largely through interpersonal relationships

41. 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
Social Capital
Capacity to attract support and help from others in order to get things done

42. Essential managerial skills
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

43. Essential managerial skills (Cont’d)
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

44. Figure 1.9 katz’s essential managerial skills

45. Managerial competency
A skill-based capability that contributes to high performance in a management job

46. Competencies for managerial success
Communication
Teamwork
Self-management
Leadership
Critical thinking
Professionalism
© John Wiley & Sons Canada Ltd.

47. COPYRIGHT
Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.