Managing and
Performing
Chapter One
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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
Globalization
Today’s enterprises are global, with offices
and production facilities in countries all over
the world
Means that a company’s talent can come
from anywhere
1-3
Technological Change: The Internet
Marketplace
Means for manufacturing goods and services
Distribution channel
An information service
1-4
Technological Change: The Internet
Drives down costs and speeds up
globalization.
Improves efficiency of decision making.
Facilitates design of new products, from
pharmaceuticals to financial services
1-5
Knowledge Management
 Knowledge
management
 Practices aimed at
discovering and
harnessing an
organization’s
intellectual resources
1-6
Knowledge Management
Knowledge workers

Workers whose primary contributions are ideas
and problem-solving expertise
 Knowledge managers find these human assets,
help people collaborate and learn, help people
generate new ideas, and harness those ideas
into successful innovations.
1-7
Knowledge Management
Knowledge management is about finding,
unlocking, sharing, and altogether capitalizing
on the most precious resources of an
organization: people’s expertise, skills,
wisdom, and relationships.
1-8
Collaboration across Boundaries
 Requires productive
communications
among different
departments,
divisions, or other
subunits of the
organization
1-9
Collaboration across “Boundaries”
Companies today must motivate and
capitalize on the ideas of people outside the
organization e.g. its consultants, ad agencies,
and suppliers
Companies must realize that the need to
serve the customer drives everything else
1-10
Managing for Competitive Advantage
Innovation
Quality
Service
Speed
Cost
Competitiveness
Sustainability
1-11
Question
___________ is the fast and timely execution,
response, and delivery of results.
A. Innovation
B. Quality
C. Speed
D. Service
1-12
Managing for Competitive Advantage
Innovation

the introduction of new goods and services
A firm must:


adapt to changes in consumer demands and to
new competitors.
be ready with new ways to communicate with
customers and deliver the products to them.
1-13
Managing for Competitive Advantage
Quality

The excellence of your product (goods or
services)
Historically, quality referred to attractiveness,
lack of defects, reliability, and long-term
dependability
1-14
Managing for Competitive Advantage
 Today quality is about
preventing defects
before they occur,
achieving zero defects
in manufacturing,
and designing
products for quality
1-15
Managing for Competitive Advantage
Service


giving customers what they want or need, when
they want it
focused on continually meeting the needs of
customers to establish mutually beneficial longterm relationships.
Speed

Fast and timely execution, response, and delivery
of results.
1-16
Managing for Competitive Advantage
 Cost competitiveness
 Keeping costs low to
achieve profits and
be able to offer
prices that are
attractive to
consumers.
1-17
Managing for Competitive Advantage
Sustainability

The effort to minimize the use of resources,
especially those that are polluting and
nonrenewable.
1-18
The Functions of Management
Management


The process of working with people and
resources to accomplish organizational goals
Efficiently, effectively
1-19
Question
____________ is monitoring performance and
making needed changes.
A. Planning
B. Organizing
C. Leading
D. Controlling
1-20
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
1-21
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,
and creating conditions so that people and things
work together to achieve maximum success
1-22
The Functions of Management
Leading

stimulating people to be high performers
Controlling

monitoring performance and making needed
changes.
1-23
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
1-24
Performing All Four
Management Functions
 Good managers
devote adequate
attention and
resources to all four
management
functions.
1-25
Management Levels and Skills
Top Level
Managers
Middle-Level
Managers
Frontline
Managers
1-26
Management Levels and Skills
Top-level managers

Senior executives responsible for the overall
management and effectiveness of the
organization.
Middle-level managers

Managers located in the middle layers of the
organizational hierarchy, reporting to top-level
executives.
1-27
Management Levels and Skills
 Frontline managers
 Lower-level
managers who
supervise the
operational activities
of the organization
1-28
Transformation of Management
Roles and Activities
Table 1.1
1-29
Managerial Roles:
What Managers Do
Table 1.2
1-30
Question
Which management skill is the ability to lead,
motivate, and communicate effectively with
others?
A. Technical
B. Conceptual
C. Decision
D. Interpersonal
1-31
Management Skills
 Technical skill
 The ability to
perform a specialized
task involving a
particular method or
process
1-32
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.
1-33
Management Skills
Interpersonal and communication skills

People skills; the ability to lead, motivate, and
communicate effectively with others.
1-34
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
1-35
You and Your Career
Be both a specialist and a generalist
Be self-reliant
Connect
Actively manage your relationship with
your organization
Survive and thrive
1-36
Two Relationships:
Which Will You Choose?
Figure 1.1
1-37
Managerial Action Is Your
Opportunity to Contribute
Figure 1.2
1-38
Common Practices of Successful
Executives
They ask “What needs to be done?” not just
“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.
1-39
CH2M-Hill
 How does CH2M-Hill
use knowledge
management to
operate it’s global
business?
1-40