1. Managing Chapter 01 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Learning Objectives LO 1 Summarize the major challenges of managing in the new competitive landscape LO 2 Describe the sources of competitive advantage for a company LO 3 Explain how the functions of management are evolving in today’s business environment LO 4 Compare how the nature of management varies at different organizational levels LO 5 Define the skills you need to be an effective manager LO 6 Discuss the principles that will help you manage your career 1-2

3. TODAY  GLOBALIZATION  TECHNOLOGY  KNOWLEDGE  COLLABORATION 1-3

4. Managing for Competitive Advantage 1-4

5. Managing for Competitive Advantage  Today quality is about preventing defects and having continuous improvement in how the firm operates 1-5

6. © 2006 by South-Western, a division of Thomson Learning. All rights reserved 1-6 Ex 1.1 The Process of Management Planning Leading Resources Controlling Organizing Performance Human Financial Raw Materials Technological Information Attain goals Products Services Efficiency Effectiveness Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections

7. © 2006 by South-Western, a division of Thomson Learning. All rights reserved 1-7 Effectiveness and Efficiency Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational efficiency refers to the amount of resources used to achieve an organization’s goal.

8. The Functions of Management  Management  The process of working with people and resources to accomplish organizational goals  Efficient, effective  Planning, Organizing, Leading And Controlling 1-8

9. The Functions of Management  Planning  Systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue  analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage 1-9

10. The Functions of Management  Organizing  assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals  specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, 1-10

11. The Functions of Management  Leading  stimulating people to be high performers  Controlling  monitoring performance and making needed changes. 1-11

12. Performing All Four Management Functions  A typical day for a manager is not neatly divided into the four functions  Days are busy and fractionated, and spent dealing with interruptions, meetings, and firefighting  Conscious always of the four functions of management 1-12

13. Performing All Four Management Functions  Good managers don’t neglect any of the four management functions 1-13

14. Managerial Roles: What Managers Do 1-14 Table 1.2

15. Management Skills  Technical skill  The ability to perform a specialized task involving a particular method or process 1-15

16. Management Skills  Conceptual and decision skills  Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members. 1-16

17. Management Skills  Interpersonal and communication skills  People skills; the ability to lead, motivate, and communicate effectively with others. 1-17

18. You and Your Career  Emotional intelligence  The skills of understanding yourself, managing yourself, and dealing effectively with others.  Social capital  Goodwill stemming from your social relationships 1-18

19. You and Your Career 1-19

20. Keys to Career Management 1-20 Table 1.3

21. © 2006 by South-Western, a division of Thomson Learning. All rights reserved 1-21 Management Competencies of Today  Embrace ambiguity  Create organizations that are:  Fast  Flexible  Adaptable  Relationship-oriented  Focus on:  Leadership  Staying connected to employees and customers  Team building  Developing a learning organization

22. Managerial Action Is Your Opportunity to Contribute 1-22 Figure 1.2

23. Common Practices of Successful Executives  They ask “What needs to be done?” rather than “What do I want to do?”  They write an action plan. They don’t just think, they do, based on a sound, ethical plan.  They take responsibility for decisions.  They focus on opportunities rather than problems.  Covey 1-23

24. © 2006 by South-Western, a division of Thomson Learning. All rights reserved 1-24 People are lazy People lack ambition Dislike responsibility People are self- centered People don’t like change People are energetic People want to make contributions People do have ambition People will seek responsibility Ex. 1.9 Theory X & Y (adapted) Theory X Theory Y