PowerPoint Presentation
to Accompany Chapter 1 of
Management Fundamentals
Canadian Edition
Schermerhorn  Wright
Planning Ahead — Chapter 1 Study Questions
What are the challenges of working in the
new economy?
What are organizations like in the new
workplace?
Who are managers and what do they do?
What is the management process?
How do you learn the essential managerial
skills and competencies?
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Overview of the 21st century workplace
 Organizations must adapt to rapidly
changing society.
 Economy is global and driven by innovation
and technology.
 High performing companies gain
extraordinary results from people working
for them.
 Interdependent, knowledge based
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What is CAPITAL?
 Financial capital can refer to money used by
entrepreneurs and businesses to buy what they need to
make their products or provide their services or to that
sector of the economy based on its operation, i.e. retail,
corporate, investment banking, etc.
 Real Capital or Economic Capital comprises physical
goods that assist in the production of other goods and
services, e.g. shovels for gravediggers, sewing machines
for tailors, or machinery and tooling for factories.
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Study Question 1: What are the challenges of
working in the new economy?
 Intellectual capital
– People are the ultimate foundation of
organizational performance.
– Intellectual capital is the collective
brainpower or shared knowledge of a
workforce that can be used to create value.
– A knowledge worker adds to the intellectual
capital of an organization.
– Mayor Michael Bloomberg on Intellectual
Capital http://youtu.be/tbhegd9OfXs
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Human Capital
 The value that the employees of a business provide
through the application of skills, know how and
expertise.[4]
 Human capital is an organization’s combined human
capability for solving business problems. Human capital is
inherent in people and cannot be owned by an
organization.
 Therefore, human capital can leave an organization when
people leave.
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Study Question 1: What are the challenges of
working in the new economy?
 Globalization …
– 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.
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Study Question 1: What are the challenges of
working in the new economy?
 Technology …
– Continuing transformation of the modern
workplace through:
•
•
•
•
The Internet
World Wide Web
Computers
Information technology
– Increasing demand for knowledge workers with
the skills to fully utilize technology.
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Study Question 1: What are the challenges of
working in the new economy?
 Diversity …
– 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.
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Study Question 1: What are the challenges of
working in the new economy?
 Ethics …
– Code of moral principles.
– Society requires businesses to operate
according to high moral standards.
– Emphasis today on restoring the strength
of corporate governance
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Study Question 1: What are the challenges of
working in the new economy?
 Careers …
– Career of 21st century won’t be uniformly
full-time and limited to a single large
employer
– Skills must be portable and always of
current value
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Study Question 2: What are organizations like
in the new workplace?
 Critical skills for success in the new
workplace …
–
–
–
–
–
–
Mastery
Contacts
Entrepreneurship
Love of technology
Marketing
Passion for renewal
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Study Question 2: What are organizations like
in the new workplace?
 Organization
– 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.
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Study Question 2: What are organizations like
in the new workplace?
 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.
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Figure 1.1 Organizations as open systems.
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Study Question 2: What are organizations like
in the new workplace?
 Organizational performance
– Value is created when an organization’s
operations adds value to the original cost of
resource inputs.
– i.e. ice cream and cookies are worth $2.00 together but as a
sandwich are worth $4.00
– When value creation occurs:
• Businesses earn a profit.
• Nonprofit organizations add wealth to society.
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Study Question 2: What are organizations like
in the new workplace?
 Organizational performance
– Productivity
• An overall measure of the quantity and quality of
work performance with resource utilization taken
into account.
– Performance effectiveness
• An output measure of task or goal accomplishment.
– Performance efficiency
• An input measure of the resource costs associated
with goal accomplishment.
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IN SUMMARY:
 Efficiency = Doing this right
 Effectiveness = Doing the right things
 HIGH PRODUCTIVITY = EFFICIENT +
EFFECTIVE
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Changing nature of organizations
 Belief in human capital
 Demise of demand and control
 Emphasis on teamwork
 Pre-eminence of technology
 Embrace of networking
 New workforce expectations
 Concern for work-life balance
 Focus on speed
http://higheredbcs.wiley.com/legacy/college/schermerhorn/0471454761/assessments/main.html
Management Fundamentals - Chapter 1
Management Scenarios
 Form into groups as per your card.
 You have 10 minutes to brainstorm how you will
present your scenario.
 At least one person must play the role of the
manager
 Your role play should answer the following
question:
 How would a good/bad manager deal with this
situation?
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Homework
 Read pgs. Of the text book.
 Answer the following question in 5 bullet points
or 3 sentences:
 “How do you like to be managed?”
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