Chapter 1
Management
MGMT
2008
Chuck Williams
Designed & Prepared by
B-books, Ltd.
1
Copyright ©2008 by Cengage Learning. All rights reserved
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.
2
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Management
Functions
Planning
Organizing
Leading
Controlling
2
3
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Planning
Planning
Determining organizational goals and a
means for achieving them.
2.1
4
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Organizing
• Deciding where
decisions will be
made
• Deciding who will do
what jobs and tasks
• Deciding who will
work for whom
2.2
5
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Leading
Inspiring
Leading
Motivating
For Anne Mulcahy,CEO of Xerox,
the key to successful leadership is
communicating with the company’s
most important constituents:
2.3
employees and customers.
6
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Controlling
Controlling
Monitoring progress toward goal
achievement and taking corrective action
when needed
2.4
7
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The Control Process
Set standards to
achieve goals
Make changes
to return
performance to
standards
Compare actual
performance to
standards
2.4
8
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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.
9
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Kinds of Managers
• Top Managers
• Middle Managers
• First-Line Managers
• Team Leaders
3
10
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Top Managers
• Chief Executive Officer (CEO)
• Chief Operating Officer (COO)
• Chief Financial Officer (CFO)
• Chief Information Officer (CIO)
3.1
3
11
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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
12
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Middle Managers
• Plant Manager
• Regional Manager
• Divisional Manager
3.2
3
13
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Responsibilities of Middle
Managers
Plan and allocate resources to meet objectives
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
3.2
14
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First-Line Managers
• Office Manager
• Shift Supervisor
• Department Manager
3.3
3
15
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Responsibilities of First-Line
Managers
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
3.3
16
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Responsibilities of Team
Leaders
Facilitate team performance
Facilitate internal team relationships
Manage external relations
3.4
17
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Mintzberg’s Managerial Roles
Interpersonal
Informational
Decisional
Figurehead
Monitor
Entrepreneur
Leader
Disseminator
Disturbance
Handler
Liaison
Spokesperson
Resource
Allocator
Negotiator
4
H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975).
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18
Managerial Roles
Interpersonal Roles
Figurehead
Managers perform ceremonial duties
Leader
Managers motivate and encourage
workers to accomplish objectives
Liaison
Managers deal with people outside
their units
4.1
19
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Managerial Roles
Informational Roles
Monitor
Managers scan their environment
for information
Disseminator
Managers share information
with others in their company
Spokesperson
4.2
Managers share information
with others outside their
departments or companies
20
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Managerial Roles
Decisional Roles
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
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
4.3
21
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Disturbance Handling Beyond the Book
during Toy Recall Crisis
• Mattel recalled 800,000 Fisher-Price toys during Fall
2007, as the toy industry was hit with Chinese imports
containing lead.
• Jerry Storch, CEO of Toys “R” Us, was the only toy
retailer who testified before a Senate subcommittee
during a hearing on toy safety.
• Toys “R” Us developed a plan to use third-party,
independent testers and test products directly off of store
shelves.
• The goal? Catch problems before recall is necessary.
“Mattel recalls 800,000 toys worldwide,” Business Week , 5 September 2007; C. Daniels, “Fast
Talk: Turmoil in Toyland,” Fast Company, December-January 2007-2008, 29.
22
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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.
23
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What Companies Look for
in Managers
Technical Skills
Human Skills
Conceptual Skills
Motivation to Manage
5
24
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Management Skills
Skills are more or less important at different
levels of management:
5
25
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Mistakes Managers Make
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
Adapted from McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today, Feb 1983.
26
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Transition to Management
(The First Year)
Managers’
Initial Expectations
 Be the boss
 Formal authority
 Manage tasks
 Job is not
managing people
After Six Months
As a Manager
 Initial expectations were wrong
 Fast pace
 Heavy workload
 Job is to be
problem-solver
and troubleshooter
After a Year
As a Manager
 No longer “doer”
 Communication,
listening, positive
reinforcement
 Learning to adapt
and control stress
 Job is people
development
7
27
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Why Management Matters
After reading this section,
you should be able to:
8. explain how and why companies can create
competitive advantage through people.
28
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Competitive Advantage
through People
Management Practices in Top Performing Companies
1. Employment Security
2.
3.
4.
5.
6.
7.
Selective Hiring
Self-Managed Teams and Decentralization
High Wages Contingent on Org. Performance
Training and Skill Development
Reduction of Status Differences
Sharing Information
8
29
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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.
8
30
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Competitive Advantage
through People
Competitive Advantages of
Well-Managed Companies
Sales revenues
Profits
Customer satisfaction
8
Stock market returns
31
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