1. Management, 7e Schermerhorn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc

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3. Schermerhorn - Chapter 1 3 Chapter 1 The Dynamic New Workplace  Planning ahead—study questions –What are the challenges of working in the new economy? –What are organizations like in the new workplace? – Who are managers and what do they do? – What is the management process? – How do you learn the essential managerial skills and competencies?

4. Schermerhorn - Chapter 1 4 Overview of the New Economy  A highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties.  Smart people and smart organizations create their own futures.  Companies with a future are committed to people.  Companies with a future have high performance expectations and provide supportive work environments.  High performing companies gain extraordinary results from people.

5. Schermerhorn - Chapter 1 5 What are the challenges of working in the new economy?  Intellectual capital … – People are the 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 knowledge worker adds to the intellectual capital of an organization.

6. Schermerhorn - Chapter 1 6 What are the challenges of working in the new economy?  Globalization … – National boundaries of world business are disappearing rapidly. –Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy.

7. Schermerhorn - Chapter 1 7 What are the challenges of working in the new economy?  Technology … –Continuing transformation of the modern workplace through: The Internet World Wide Web Computers Information technology –Increasing demand for knowledge workers with the skills to fully utilize technology.

8. Schermerhorn - Chapter 1 8 What are the challenges of working in the new economy?  Diversity … –Changing demographics are making the workforce increasingly diverse. –A diverse and multicultural workforce both challenges and offers opportunities to employers. –Truly valuing diversity is a societal responsibility that is not easy to accomplish.

9. Schermerhorn - Chapter 1 9 What are the challenges of working in the new economy?  How diversity bias can occur in the workplace: –Prejudice –Discrimination –Glass ceiling effect

10. Schermerhorn - Chapter 1 10 What are the challenges of working in the new economy?  Ethical expectations for contemporary businesses: –Sustainable development and protection of the natural environment. –Protection of consumers through product safety and fair practices. –Protection of human rights, including employment policies and practices.

11. Schermerhorn - Chapter 1 11 What are the challenges of working in the new economy?  Workplace pressures involving ethics toward human capital: –Equal employment opportunity –Equity in compensation and benefits –Privacy and due process –Freedom from sexual harassment –Job security –Occupational health and safety

12. Schermerhorn - Chapter 1 12 What are the challenges of working in the new economy?  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.

13. Schermerhorn - Chapter 1 13 What are organizations like in the new workplace?  Critical skills for success in the new workplace … –Mastery –Contacts –Entrepreneurship –Love of technology –Marketing –Passion for renewal

14. Schermerhorn - Chapter 1 14 What are organizations like in the new workplace?  Organization –A collection of people working together to achieve a common purpose. –The purpose of any organization is to provide useful goods and/or services that return value to society and satisfy customer needs in order to justify continued existence.

15. Schermerhorn - Chapter 1 15 What are organizations like in the new workplace?  Organizations as systems –Composed of interrelated parts that function together to achieve a common purpose. Organizations are open systems that interact with their environments. Organizations transform resource inputs into product outputs (goods and services). Feedback from the environment tells an organization how well it is meeting the needs of customers and society.

16. Schermerhorn - Chapter 1 16 What are organizations like in the new workplace?  Organizational performance –“Value-added” is a very important notion for organizations. –Value-added occurs when an organization, through it operations, adds value to the original cost of resource inputs. –When value-added occurs: Businesses earn a profit. Nonprofit organizations add wealth to society.

17. Schermerhorn - Chapter 1 17 What are organizations like in the new workplace?  Organizational performance –Productivity A summary measure of the quantity and quality of work performance with resource utilization taken into account. –Performance effectiveness A measure of task output or goal accomplishment. –Performance efficiency A.measure of the resource costs associated with goal accomplishment.

18. Schermerhorn - Chapter 1 18 What are organizations like in the new workplace?  Workplace changes that provide a context for studying management … –Pre-eminence of technology –Demise of “command-and-control” –Focus on speed –Embracing networking –Belief in empowerment –Emphasis on teamwork –New workforce expectations –Concern for work-life balance

19. Schermerhorn - Chapter 1 19 Who are managers and what do they do?  Importance of human resources and managers … – High performing organizations treat people as strategic assets. – Managers have a special responsibility for ensuring that people are treated as strategic assets.

20. Schermerhorn - Chapter 1 20 Who are managers and what do they do?  A manager is a person in an organization who directly supports and helps 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.

21. Schermerhorn - Chapter 1 21 Who are managers and what do they do?  Levels of management –Top managers—responsible for performance of an organization as a whole or for one of its larger parts. –Middle managers—report to top managers while being in charge of relatively large departments or divisions. –Team leaders or supervisors—someone in charge of a small work group composed of non- managerial workers.

22. Schermerhorn - Chapter 1 22 Who are managers and what do they do?  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, develop, and train team members.

23. Schermerhorn - Chapter 1 23 Who are managers and what do they do?  Responsibilities of team leaders (cont.): – Encourage high performance and teamwork. – Inform team members about organizational goals and expectations. – Inform higher levels of work unit needs and accomplishments. – Coordinate with others teams and support organization as a whole.

24. Schermerhorn - Chapter 1 24 Who are managers and what do they do?  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.

25. Schermerhorn - Chapter 1 25 Who are managers and what do they do?  Managerial performance and accountability –Managers set the conditions through which individuals and groups contribute to achieving organizational goals. –Accountability is the requirement of one person to answer back to another and show results achieved in assigned work responsibilities. –Effective managers fulfill performance accountability while helping others to achieve high performance outcomes and experience satisfaction in their work.

26. Schermerhorn - Chapter 1 26 Who are managers and what do they do?  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

27. Schermerhorn - Chapter 1 27 Who are managers and what do they do?  High performing managers … – Build working relationships with others. – Help others develop their skills and performance competencies. – Foster teamwork. – Create a work environment that is performance- driven and provides satisfaction for workers.

28. Schermerhorn - Chapter 1 28 Who are managers and what do they do?  The organization as an upside-down pyramid … –Each individual is a value-added worker. –A manager’s job is to support workers’ efforts. –The best managers are known for helping and supporting.

29. Schermerhorn - Chapter 1 29 What is the management process?  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.

30. Schermerhorn - Chapter 1 30 What is the management process?  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.

31. Schermerhorn - Chapter 1 31 What is the management process?  Functions of management … –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.

32. Schermerhorn - Chapter 1 32 What is the management process?  Managerial activities and roles … –Informational roles Involve giving, receiving, and analyzing of information. –Interpersonal roles Involve interactions with persons inside and outside the work unit. –Decisional roles Involve using information to make decisions in order to solve problems or address opportunities.

33. Schermerhorn - Chapter 1 33 What is the management process?  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 communication media. –Managers work largely through interpersonal relationships.

34. Schermerhorn - Chapter 1 34 What is the management process?  Managerial agendas and networks … –Agenda setting Development of action priorities for their jobs. 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.

35. Schermerhorn - Chapter 1 35 How do you learn the essential managerial skills and competencies?  Essential managerial skills –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 skill—the ability to work well in cooperation with others. –Conceptual skill—the ability to think critically and analytically to solve complex problems.

36. Schermerhorn - Chapter 1 36 How do you learn the essential managerial skills and competencies?  Managerial competency … –A skill-based capability that contributes to high performance in a management job. –Managerial competencies are implicit in: –Planning, organizing, leading, and controlling. –Informational, interpersonal, and decisional roles. –Agenda setting and networking.

37. Schermerhorn - Chapter 1 37 How do you learn the essential managerial skills and competencies?  Competencies for managerial success: –Communication –Teamwork –Self-management –Leadership –Critical thinking –Professionalism