1. PowerPoint slides by Susan A. Peterson, Scottsdale Community College PowerPoint slides by Susan A. Peterson, Scottsdale Community College Chapter 1: The Nature of Management Chapter 1: The Nature of Management m a n a g e m e n t 2e H i t t / B l a c k / P o r t e r

2. © 2008 Prentice-Hall Business Publishing 2 Learning Objectives After studying this chapter, you should be able to: Define the term management Explain the major challenges with which managers must deal Describe how historical research on management has contributed to the current practice of management Identify and discuss the primary managerial functions After studying this chapter, you should be able to: Define the term management Explain the major challenges with which managers must deal Describe how historical research on management has contributed to the current practice of management Identify and discuss the primary managerial functions

3. © 2008 Prentice-Hall Business Publishing 3 Learning Objectives Explain the three general roles involved in managerial work and the specific roles within each Explore and describe the three dimensions of managerial jobs Discuss the primary skills required to be an effective manager Explain the three general roles involved in managerial work and the specific roles within each Explore and describe the three dimensions of managerial jobs Discuss the primary skills required to be an effective manager

4. © 2008 Prentice-Hall Business Publishing 4 What is Management? Management is a process that involves: Assembling and using sets of resources Acting in a goal-directed manner to accomplish tasks Activities carried out in an organizational setting Management is a process that involves: Assembling and using sets of resources Acting in a goal-directed manner to accomplish tasks Activities carried out in an organizational setting

5. © 2008 Prentice-Hall Business Publishing 5 Managerial Challenges Managerial Challenges Managing Change Managing Resources Managing Strategically Managing Entrepreneurially

6. © 2008 Prentice-Hall Business Publishing 6 Managerial Challenges: Managing Change Managing change: Is the most persistent, pervasive and powerful challenge for managers Requires managers to gain employee acceptance Two causes of change: Technology Globalization

7. © 2008 Prentice-Hall Business Publishing 7 Managerial Challenges: Managing Resources Managers must manage resources, including: Financial capital Human resources Physical resources Technology Managers must manage resources, including: Financial capital Human resources Physical resources Technology

8. © 2008 Prentice-Hall Business Publishing 8 Managerial Challenges: Managing Strategically Managers must: Develop strategies to achieve the organization’s goals Implement the strategies effectively by managing human resources

9. © 2008 Prentice-Hall Business Publishing 9 Managerial Challenges: Managing Entrepreneurially Managing entrepreneurially involves: Searching for new opportunities Identifying new ideas for new markets Emphasizing actions to take advantage of uncertainty Managing entrepreneurially involves: Searching for new opportunities Identifying new ideas for new markets Emphasizing actions to take advantage of uncertainty

10. © 2008 Prentice-Hall Business Publishing 10 Historical Approaches to Management Ancient China and art of warfare Ancient Egypt and building of pyramids Roman Empire and building of roads and viaducts Industrial Revolution and modern management Ancient China and art of warfare Ancient Egypt and building of pyramids Roman Empire and building of roads and viaducts Industrial Revolution and modern management

11. © 2008 Prentice-Hall Business Publishing 11 What Managers Do Managerial activities differ by: The functions managers serve The roles in which managers operate The dimensions of each manager’s job

12. © 2008 Prentice-Hall Business Publishing 12 Managerial Functions Planning Organizing Directing Controlling Managing Adapted from Exhibit 1.1

13. © 2008 Prentice-Hall Business Publishing 13 Planning Planning involves: Estimating future conditions and circumstances Making decisions based on these estimations about what work is to be done: -By the manager -By all of those for whom she or he is responsible

14. © 2008 Prentice-Hall Business Publishing 14 Organizing Organizing involves paying attention to: The structure of relationships among positions The people occupying those positions Linking that structure to the overall strategic direction of the organization Organizing involves paying attention to: The structure of relationships among positions The people occupying those positions Linking that structure to the overall strategic direction of the organization

15. © 2008 Prentice-Hall Business Publishing 15 Directing Directing is the process of influencing other people to attain organizational objectives: Motivating others Interacting effectively in group and team situations Communicating in support of others’ efforts Directing is the process of influencing other people to attain organizational objectives: Motivating others Interacting effectively in group and team situations Communicating in support of others’ efforts

16. © 2008 Prentice-Hall Business Publishing 16 Controlling Regulating the work of those for whom a manager is responsible, including: Setting standards of performance in advance Monitoring ongoing (real ‑ time) performance Assessing a completed performance Results of the control process (evaluation) are fed back to the planning process Regulating the work of those for whom a manager is responsible, including: Setting standards of performance in advance Monitoring ongoing (real ‑ time) performance Assessing a completed performance Results of the control process (evaluation) are fed back to the planning process

17. © 2008 Prentice-Hall Business Publishing 17 Managerial Roles Interpersonal Roles Interpersonal Roles Figurehead Leader Liaison Adapted from Exhibit 1.2 Figurehead: attending ceremonial activities Leader: influencing or directing others Liaison: contacting others outside the formal chain of command Figurehead: attending ceremonial activities Leader: influencing or directing others Liaison: contacting others outside the formal chain of command

18. © 2008 Prentice-Hall Business Publishing 18 Managerial Roles Informational Roles Informational Roles Monitor Disseminator Spokesperson Adapted from Exhibit 1.2 Monitor: seeking information to be aware of crucial developments Disseminator: receiving and sending information Spokesperson: representing the views of the unit for which he/she is responsible Monitor: seeking information to be aware of crucial developments Disseminator: receiving and sending information Spokesperson: representing the views of the unit for which he/she is responsible

19. © 2008 Prentice-Hall Business Publishing 19 Managerial Roles Decisional Roles Decisional Roles Entrepreneur Disturbance- handler Disturbance- handler Resource- allocator Resource- allocator Negotiator Adapted from Exhibit 1.2 Entrepreneur: exploring new opportunities Disturbance-handler: acting as a judge or problem solver in conflicts among employees Resource-allocator: deciding how resources will be distributed Negotiator: making accommodations with other units Entrepreneur: exploring new opportunities Disturbance-handler: acting as a judge or problem solver in conflicts among employees Resource-allocator: deciding how resources will be distributed Negotiator: making accommodations with other units

20. © 2008 Prentice-Hall Business Publishing 20 Managerial Job Dimensions Activities or duties that must be carried out Standards or levels of minimum performance that must be met Activities or duties that must be carried out Standards or levels of minimum performance that must be met Demands

21. © 2008 Prentice-Hall Business Publishing 21 Managerial Job Dimensions Factors that limit the response of the manager: Time Budgets Technology Attitudes of subordinates Legal regulations Factors that limit the response of the manager: Time Budgets Technology Attitudes of subordinates Legal regulations Demands Constraints

22. © 2008 Prentice-Hall Business Publishing 22 Managerial Job Dimensions Discretionary behavior How work is to be done How much work is to be done Who will do the work What initiatives will be undertaken from almost infinite possibilities Discretionary behavior How work is to be done How much work is to be done Who will do the work What initiatives will be undertaken from almost infinite possibilities Demands Constraints Choices

23. © 2008 Prentice-Hall Business Publishing 23 Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Demands Develop new product with strong market appeal Hold formal weekly progress meeting with boss Frequent travel to other company sites Maintain attractive appearance of restaurant Keep employee costs as low as possible Meet standards for speed of service Two Managerial Jobs Adapted from Exhibit 1.3

24. © 2008 Prentice-Hall Business Publishing 24 Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Constraints 12 month deadline for product development Project budget limit of $1 million No choice in selecting team members Most employees have limited formal education Few monetary incentives to reward outstanding performance Federal and state health and safety regulations Two Managerial Jobs Adapted from Exhibit 1.3

25. © 2008 Prentice-Hall Business Publishing 25 Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Choices The organizational structure of the project team Sequencing of project tasks Budget allocation Selection of employee to promote to supervisor Scheduling of shifts and assignments Local advertising promotions Two Managerial Jobs Adapted from Exhibit 1.3

26. © 2008 Prentice-Hall Business Publishing 26 What Skills Do Managers Need? TECHNICAL SKILLS Specialized knowledge (Including when and how to use the skills) TECHNICAL SKILLS Specialized knowledge (Including when and how to use the skills) INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities Adapted from Exhibit 1.4

27. © 2008 Prentice-Hall Business Publishing 27 Importance Importance of Managerial Skills at Different Organizational Levels High Low Interpersonal skills Technical skills Conceptual skills Adapted from Exhibit 1.5 Entry-Level Managers Mid-Level Managers Top-Level Managers

28. © 2008 Prentice-Hall Business Publishing 28 Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Have survived stressful situations Often described as moody or volatile. May be able to keep their temper with superiors during crises but are hostile toward peers and subordinates. Maintain composure in stressful situations, are predictable during crises, are regarded as calm and confident. Bright, with outstanding track records Have been successful, but generally only in one area or type of job. Have been successful, but generally only in one area or type of job. Have diverse track records, demonstrated ability in many different situations, and a breadth of knowledge of the business or industry. Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.6

29. © 2008 Prentice-Hall Business Publishing 29 Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Ambitious and oriented toward problem solving Micromanage a position, may staff with the incorrect people or neglect the talents they have, depend on a single mentor. Keep their minds focused on the next position, develop competent successors, seek advice from many sources. Have a few flaws Cover up problems while trying to fix them. If the problem can’t be hidden, they tend to go on the defensive and even blame someone else for it. Make a few mistakes, but when they do, they admit to them and handle them with poise and grace. Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.6

30. © 2008 Prentice-Hall Business Publishing 30 Who Succeeds? Who Doesn’t? Potential leaders share traits early on: Good people skills May be viewed as charming but political or direct but tactless, cold, and arrogant. People don’t like to work with them Can get along well with different types of people, are outspoken without being offensive, are viewed as direct and diplomatic. Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.6