1. 1 Chapter 2 Management MGT 340 Chapter 2 White Book

2. 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?

3. 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.

4. 4 Management Is… Effectiveness Efficiency Getting work done through others 1 1

5. 5 Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling Management Functions 2 2

6. 6 Planning 2.1 Planning Determining organizational goals and a means for achieving them

7. 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.

8. 8 Organizing  Deciding where decisions will be made  Who will do what jobs and tasks  Who will work for whom 2.2

9. 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.

10. 10 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed

11. 11 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards

12. 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.

13. 13 Kinds of Managers  Top Managers  Middle Managers  First-Line Managers  Team Leaders 3 3

14. 14 Top Managers 3 3.1  Chief Executive Officer (CEO)  Chief Operating Officer (COO)  Chief Financial Officer (CFO)  Chief Information Officer (CIO)

15. 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

16. 16 Middle Managers 3 3.2  Plant Manager  Regional Manager  Divisional Manager

17. 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

18. 18 First-Line Managers 3 3.3  Office Manager  Shift Supervisor  Department Manager

19. 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

20. 20 Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships 3.4 Manage external relations

21. 21 Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.4 4 4 InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

22. 22 Biz Flix: 8 Mile Take Two Video Click What is the quality of Jimmy’s relationship with his boss, Manny? What management roles do you see Manny play in the clip?

23. 23 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

24. 24 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

25. 25 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

26. 26 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.

27. 27 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Conceptual Skills Motivation to Manage 5 5

28. 28 What Companies Look for in Managers 5 5 Skills are more or less important at different levels of management:

29. 29 Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 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 6 6

30. 30 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 1.7 7 7

31. 31 Why Management Matters After reading this section, you should be able to: 8. explain how and why companies can create competitive advantage through people.

32. 32 Management Practices in Top Performing Companies Competitive Advantage through People Adapted from Exhibit 1.8 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

33. 33 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 1998. Smucker’s has extremely low employee turnover and extremely high employee satisfaction. Tim and Richard Smucker are pictured here.

34. 34 Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales Revenues Profits Stock Market Returns Stock Market Returns Customer Satisfaction 8 8 http://www.greatplacetowork.com/best/list-bestusa.htm Web Link