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

2. o Understand the current workplace environment in Canada o Identify the characteristics of an organization o Understand who managers are and what they do o Describe the management process and how managerial skills and competencies are learned PLANNING AHEAD — CHAPTER 1 LEARNING GOALS

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. Talent Diversity Globalization Technology Ethics Careers WORKING TODAY

5. 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. TALENT

6. 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. DIVERSITY

7. 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. DIVERSITY (CONT’D)

8. VIDEO: A SCIENCE GLASS CEILING - GLOBE & MAIL A Science Glass Ceiling (external link)

9. 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. GLOBALIZATION

10. 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. TECHNOLOGY

11. Social Media Revolution by Erik Qualman (external link) VIDEO: SOCIAL MEDIA REVOLUTION

12. 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 ETHICS

13. 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 CAREERS

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

15. ORGANIZATIONS IN THE NEW WORKPLACE P9-13

16. 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 WHAT IS AN ORGANIZATION?

17. 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 ORGANIZATIONS (CONT’D)

18. FIGURE 1.3 ORGANIZATIONS AS OPEN SYSTEMS

19. 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. ORGANIZATIONS (CONT’D)

20. 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 ORGANIZATIONAL PERFORMANCE

21. FIGURE 1.4 PRODUCTIVITY AND THE DIMENSIONS OF ORGANIZATIONAL PERFORMANCE

22. 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 CHANGING NATURE OF ORGANIZATIONS

23. MANAGERS IN THE NEW WORKPLACE P 13-17

24. 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. MANAGERS IN THE NEW WORKPLACE

25. 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 MANAGERS

26. 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 LEVELS OF MANAGEMENT

27. FIGURE 1.5 MANAGEMENT LEVELS IN A TYPICAL BUSINESS AND NON-PROFIT ORGANIZATIONS

28. 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 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 RESPONSIBILITIES OF TEAM LEADERS

29. 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 TYPES OF MANAGERS

30. 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 ORGANIZATIONAL EFFECTIVENESS

31. 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. MANAGERIAL PERFORMANCE

32. 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 MANAGERIAL PERFORMANCE (CONT’D)

33. 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 HIGH PERFORMING MANAGERS

34. Reflects the changing nature of work today A manager’s job is to support workers’ efforts Whole organization is devoted to serving the customer THE ORGANIZATION AS AN UPSIDE- DOWN PYRAMID

35. FIGURE 1.6 – THE ORGANIZATION AS AN UPSIDE-DOWN PYRAMID

36. THE MANAGEMENT PROCESS P 17-23

37. 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. MANAGEMENT PROCESS

38. FIGURE 1.7 THE FOUR FUNCTIONS OF MANAGEMENT

39. 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 FUNCTIONS OF MANAGEMENT

40. 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 FUNCTIONS OF MANAGEMENT (CONT’D)

41. 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 MANAGERIAL ROLES AND ACTIVITIES

42. FIGURE 1.8 MINTZBERG’S 10 MANAGERIAL ROLES

43. 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 CHARACTERISTICS OF MANAGERIAL WORK

44. 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 MANAGERIAL AGENDAS AND NETWORKS

45. 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 ESSENTIAL MANAGERIAL SKILLS

46. 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 ESSENTIAL MANAGERIAL SKILLS (CONT’D)

47. FIGURE 1.9 KATZ’S ESSENTIAL MANAGERIAL SKILLS

48. A skill-based capability that contributes to high performance in a management job MANAGERIAL COMPETENCY

49. Communication Teamwork Self-management Leadership Critical thinking Professionalism COMPETENCIES FOR MANAGERIAL SUCCESS

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