Chapter 1 Management Dr. Ellen A. Drost 1 Copyright ©2008 by Cengage Learning. All rights reserved Objectives • • • • • • What is Management What do managers do? What kinds of managers are there? What roles do managers play? What does it take to be a manager? Why does management matter? Numi Tea video 3 2 Copyright ©2008 by Cengage Learning. All rights reserved What is Management Management Is… Getting work done through others Efficiency Effectiveness 1 3 Copyright ©2008 by Cengage Learning. All rights reserved Management Functions Planning Organizing Leading Controlling 2 4 Copyright ©2008 Cengage Learning. All rights reserved Planning Planning Determining organizational goals and a means for achieving them 2.1 5 Copyright ©2008 by Cengage Learning. All rights reserved Organizing • Deciding where decisions will be made • Who will do what jobs and tasks • Who will work for whom 2.2 6 Copyright ©2008 by Cengage Learning. All rights reserved Leading Inspiring Leading Motivating For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers. 7 Copyright ©2008 by Cengage Learning. All rights reserved Controlling Controlling Monitoring progress toward goal achievement and taking corrective action when needed 2.4 8 Copyright ©2008 by Cengage Learning. All rights reserved The Control Process Set standards to achieve goals Make changes to return performance to standards Compare actual performance to standards 9 Copyright ©2008 by Cengage Learning. All rights reserved What Do Managers Do? Kinds of Managers • Top Managers • Middle Managers • First-Line Managers • Team Leaders 3 10 Copyright ©2008 by Cengage Learning. All rights reserved Top Managers • Chief Executive Officer (CEO) • Chief Operating Officer (COO) • Chief Financial Officer (CFO) • Chief Information Officer (CIO) 3.1 3 11 Copyright ©2008 Cengage Learning. All rights reserved 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 Copyright ©2008 by Cengage Learning. All rights reserved Middle Managers • Plant Manager • Regional Manager • Divisional Manager 3.2 3 13 Copyright ©2008 Cengage Learning. All rights reserved 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 Copyright ©2008 by Cengage Learning. All rights reserved First-Line Managers • Office Manager • Shift Supervisor • Department Manager 3.3 3 15 Copyright ©2008 Cengage Learning. All rights reserved 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 Copyright ©2008 by Cengage Learning. All rights reserved Responsibilities of Team Leaders Facilitate team performance Manage external relations Facilitate internal team relationships 3.4 17 Copyright ©2008 by Cengage Learning. All rights reserved Mintzberg’s Managerial Roles Interpersonal Informational Decisional Monitor Entrepreneur Leader Disseminator Disturbance Handler Liaison Spokesperson Figurehead 4 Resource Allocator Negotiator H. Mintzberg, The Nature of Managerial Work. (New York: Harper & Row, 1973). Copyright ©2008 by Cengage Learning. All rights reserved 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 Copyright ©2008 by Cengage Learning. All rights reserved Managerial Roles Informational Roles Monitor Managers scan their environment for information Disseminator Managers share information with others in their company Spokesperson Managers share information with others outside their departments or companies 4.2 20 Copyright ©2008 by Cengage Learning. All rights reserved Managerial Roles Decisional Roles Managers adapt to incremental change Entrepreneur Disturbance Handler Resource Allocator Negotiator 4.3 Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises 21 Copyright ©2008 by Cengage Learning. All rights reserved What Does It Take to Be a Manager? What Companies Look for in Managers Technical Skills Human Skills Motivation to Conceptual Skills Manage 5 22 Copyright ©2008 by Cengage Learning. All rights reserved Management Skills Skills are more or less important at different levels of management: 23 Copyright ©2008 by Cengage Learning. All rights reserved 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 6 10. Overdependent on advocate or mentor Adapted from McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983. Copyright ©2008 by Cengage Learning. All rights reserved 24 Transition to Management Managers’ Initial Expectations Be the boss Formal authority After Six Months As a Manager (The First Year) After a Year As a Manager Initial expectations No longer “doer” were wrong Manage tasks Fast pace Job is not managing people Heavy workload Communication, listening, positive reinforcement Learning to adapt and control stress Job is to be problem-solver and troubleshooter Job is people development 7 25 Copyright ©2008 by Cengage Learning. All rights reserved Why Management Matters? 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 26 Copyright ©2008 by Cengage Learning. All rights reserved Management Workplace Numi Organic Tea 1. Who is Danielle Oviedo at Numi Organic Tea? What was her task at Numi? 2. What is management, according to Danielle. 1. How does Numi see efficiency and effectiveness 3. List the type of managers referenced in video. 4. What is Danielle’s job as the distribution manager at Numi? 5. From watching the video, what is the role of a manager? 6. According to other managers, what made Danielle Oviedo a successful manager at Numi? 3 27 Copyright ©2008 by Cengage Learning. All rights reserved