CHAPTER 1 - MANAGEMENT LEARNING OBJECTIVES After reading this chapter, you should be able to 1. 2. 3. 4. 5. 6. 7. 8. describe what management is. explain the four functions of management. describe different kinds of managers. explain the major roles and sub-roles that managers perform in their jobs. explain what companies look for in managers. discuss the top mistakes that managers make in their jobs. describe the transition that employees go through when they are promoted to management. explain how and why companies can create competitive advantage through people. WHAT WOULD YOU DO? Think about the case before you read the chapter. Consider the following questions to help you in your analysis: Observation: What is the responsibility of a CEO compared to middle managers? How do the CEO and middle management roles change as the company and the business environment change? Interpretation: What is good management regardless of what level of management (CEO, middle, firstline) is being considered? Application: If you were Bob Nardelli, (Chairman, President, and CEO of Home Depot) what would you do? PRETEST Answer the following questions to see how well you understand the material. Re-take it after you review to check yourself. 1. What is management? 2. How are top managers different from middle managers? 3. What sorts of skills do companies look for in managers? Chapter 1: Management 1 4. What is a type of mistake that top managers typically make? CHAPTER OUTLINE WHAT IS MANAGEMENT? 1 Management Is.... A. Good management is working through others to accomplish tasks that help fulfill organizational objectives as efficiently as possible. B. Efficiency versus effectiveness: efficiency is doing things right and effectiveness is doing the right things. Both are necessary for good management. management: getting work done through others efficiency: getting work done with a minimum of effort, expense, or waste effectiveness: accomplishing tasks that help fulfill organizational objectives 2 Management Functions Traditionally, a manager’s job has been classified according to the following four functions: planning: determining organizational goals and the means for achieving them organizing: deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom leading: inspiring and motivating workers to work hard to achieve organizational goals controlling: monitoring progress towards goal achievement and taking corrective action when needed A. Good managers are those who perform these functions well. B. New-style managers are changing the way they perform these functions, thinking of themselves more like sponsors, team leaders, or internal consultants. They work with anyone who can help them accomplish their goals rather than only following the chain of command. They ask others to participate in making decisions and share information with others. C. New-style managers perform four functions that have evolved out of the traditional functions: making things happen; meeting the competition; organizing people, projects, and processes; and leading. WHAT REALLY WORKS? meta-analysis: a study of studies, a statistical approach that provides one of the best scientific estimates of how well management theories and practices work 2 Managers often look to research to find out what works. Sometimes management research results disagree about whether a management technique works. Managers can use the results of meta-analysis, a way to combine the results of several studies, to estimate the probability of success of a management technique. Watch for future “What Really Works” sections for management techniques that make a difference. Chapter 1: Management 2.1 Making Things Happen: To make things happen you must determine what you want to accomplish, plan how to achieve these goals, gather and manage the information needed to make a good decision, and control performance, so that you can take corrective action if performance falls short. 2.2 Meeting the Competition: Free trade agreements, shorter product development cycles, and fewer barriers to entering industries have created increased competition. Companies must consider how to deal with international competitors, have a well-thought-out competitive strategy, be able to embrace change and foster new product and service ideas, and structure their organizations to quickly adapt to changing customers and competitors. 2.3 Organizing People, Projects, and Processes: Changes in how a company is organized must consider both people issues and work processes (how the work gets done). 2.4 Leading: Motivating and inspiring workers. WHAT DO MANAGERS DO? 3 Kinds of Managers 3.1 Top Managers (e.g., chief executive officer, chief operating officer) top managers: executives responsible for the overall direction of the organization Top managers are responsible for: A. creating the context for change. B. developing in employees the attitudes of commitment to and ownership in the company’s performance. C. creating a positive organizational culture through language and action. D. monitoring the business environments. 3.2 Middle Managers (e.g., plant manager, regional manager) middle managers: managers responsible for setting objectives consistent with top management’s goals and planning and implementing subunit strategies for achieving these objectives Middle managers hold the following specific responsibilities: A. plan and allocate resources to meet objectives. B. coordinate and link groups, departments, and divisions within a company. C. monitor and manage the performance of the subunits and individual managers who report to them. D. implement changes or strategies generated by top managers. 3.3 First-Line Managers (e.g., office manager, shift supervisor, or department manager) first-line managers: managers who train and supervise performance of non-managerial employees who are directly responsible for producing the company’s products or services First-line managers: A. encourage and reward performance B. teach entry-level employees how to do their jobs. Chapter 1: Management 3 C. make detailed schedules and operating plans based on middle management’s intermediate range plans. 3.4 Team Leaders team leaders: managers responsible for facilitating team activities toward goal accomplishment Team leader is a relatively new kind of management job. Team leaders fulfill the following responsibilities: A. facilitate team performance (but the team as a whole is responsible for performance itself). B. manage external relationships, for example those with other teams. C. manage internal team relationships, for example by resolving conflicts. 4 Managerial Roles Henry Mintzberg identified three main categories of managerial roles: 4 4.1 Interpersonal Roles: Management jobs are people-intensive. Most managers spend between 60 and 80 percent of their communicating with others. Three interpersonal subroles are as follows: A. figurehead role: the interpersonal role managers play when they perform ceremonial duties B. leader role: the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives C. liaison role: the interpersonal role managers play when they deal with people outside their units 4.2 Informational Roles: Managers spend 40 percent of their time gathering and sharing information through the following subroles: A. monitor role: the informational role managers play when they scan their environment for information B. disseminator role: the informational role managers play when they share information with others in their department or companies C. spokesperson role: the informational role managers play when they share information with people outside their departments or companies 4.3 Decisional Roles: One purpose of communicating with people to gather and share information is to make decisions. There are four decisional subroles: A. entrepreneur role: the decisional role managers play when they adapt themselves, their subordinates, and their units to incremental change B. disturbance handler role: the decisional role managers play when they respond to severe problems that demand immediate action C. resource allocator role: the decisional role managers play when they decide who gets what resources D. negotiator role: the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises Chapter 1: Management WHAT DOES IT TAKE TO BE A MANAGER? 5 What Companies Look for in Managers: A. technical skills: the ability to apply the specialized procedures, techniques, and knowledge required to get the job done 1. Most important for lower level managers. B. human skill: the ability to work well with others 1. Equally important for all levels of management. 2. Upper level management spends most time dealing directly with people. C. conceptual skill: the ability to see the organization as a whole, how the different parts affect each other, and how the company fits into or is affected by its environment 1. Increases in importance as managers move up hierarchy. 2. Managers with above-average intelligence outperform managers with average intelligence. D. motivation to manage: an assessment of how enthusiastic employees are about managing the work of others 1. Managers at higher levels typically have stronger motivation to manage than their subordinates. 2. Managers with stronger motivation to manage are promoted faster, are rated as better managers by their employees, and earn more than managers with a weak motivation to manage. 6 Mistakes Managers Make: A comparison of “arrivers,” those who made it all the way to the top of their companies, and “derailers,” those who were successful early but were knocked off the “fast track,” shows that although both groups had talent and weaknesses, the “derailers” had some fatal flaws. Here are the top ten mistakes made by derailers (see Exhibit 1.5): 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 7 Insensitive to others: abrasive, intimidating, bullying style. Cold, aloof, arrogant. Betrayal of trust. Overly ambitious: thinking of next job, playing politics. Specific performance problems with the business. Overmanaging: unable to delegate or build a team. Unable to staff effectively. Unable to think strategically. Unable to adapt to boss with different style. Overdependent on advocate or mentor. The Transition to Management: The First Year A. Becoming a manager produced a profound change in how managers viewed themselves and others. B. The only way to really learn how to manage is to manage. C. New managers changed their initial expectations of their job. Initially they thought they were to exercise formal authority and manage tasks. Later they realized the importance of communication and people development. Chapter 1: Management 5 BEEN THERE, DONE THAT To give you a real-life example of a new manager, this box features an interview with Travis Reynolds, first-level manager at a financial services company. His experience illustrates some common problems new managers encounter as they make the transition from “doer” to “manager”: Travis discovered that managers spend most of their time interacting with people. At first, he neglected to consider people when making decisions. He found the job much harder at first than he thought it would be. After a rocky start, Travis learned that good management really means: Empowering subordinates rather than being autocratic. Coaching subordinates rather than trying to control them. WHY MANAGEMENT MATTERS 8 Competitive Advantage through People A. Top-performing companies recognize the importance of the way they treat their work forces. B. These companies use ideas such as employee security, selective recruiting, high wages contingent on organizational performance, reduction of status differences, sharing information, self-managed teams, and training and skill development (see also Exhibit 1.7). C. Investing in people will create long-lasting competitive advantages that are difficult for other companies to duplicate. D. Sound management practices can produce substantial advantages in sales, revenues, and customer satisfaction. E. Poorly performing companies that adopted management techniques as simple as setting expectations, coaching, and rewarding were able to substantially improve return on investment. F. Good management can increase customer satisfaction because employees tend to treat customers the same way that their managers treat them. TRUE/FALSE QUESTIONS As you answer the questions in this section, think about why a false statement is false and what would make it true. 1. T F Good management is effective but not necessarily efficient. 2. T F Meta-analysis is one of the skills needed to be a manager. 3. T F Management is getting work done through others. 4. T F Traditionally, the four functions of management are planning, organizing, leading, and controlling. 6 Chapter 1: Management 5. T F Controlling is only monitoring progress toward a goal. 6. T F New-style managers follow the chain of command very strictly. 7. T F New-style managers ask others to participate in making decisions. 8. T F Making things happen involves planning, gathering information, and controlling performance. 9. T F Jeremy had just been promoted to store manager at the Piggly Wiggly where he works. He is excited because he has been waiting for the opportunity to be in charge of the cashiers. Jeremy is a new-style manager because he considers himself to be the boss. 10. T F Top managers are responsible for developing employees’ attitudes of commitment to and ownership in company performance. 11. T F At the Panera where she works, Claire is responsible for scheduling employees, organizing the bread displays, and resolving any customer relationship problems. Clair is a middle manager. 12. T F First-line managers are responsible for creating a positive organizational culture. 13. T F Sunil is planning on taking several classes in communication even though he is a management major. This is a good idea because managers spend at least two-thirds of their time in face-to-face communication with others. 14. T F The informational role involves both gathering and disseminating information. 15. T F Burton has just learned of a new sales initiative that top management wants all regions to implement. Burton called a meeting to relay the information to his sales force. Burton is fulfilling the liaison role because his talking to people inside his managerial unit. 16. T F Sharing information outside one’s department is the spokesperson role. 17. T F Monitor, entrepreneur, and disturbance handler are subroles of the decisional role. 18. T F When Kmart hired a new CEO after the company declared bankruptcy, the new CEO fulfilled the disturbance handler role because he needed to respond to severe problems at Kmart that demanded serious action. 19. T F Technical skills are most important for lower level managers. 20. T F All levels of managers spend equal time using human skills. 21. T F Managers at higher levels typically have a stronger motivation to manage than do their subordinates. 22. T F Conceptual skills are most important for middle managers. 23. T F Managers who were knocked off the “fast track” typically show some similar fatal flaws. Chapter 1: Management 7 24. T F Investing in people will create long-lasting competitive advantages that are difficult for other companies to duplicate. 25. T F Poorly performing companies who adopted management techniques such as setting expectations were able to improve return on investment. MULTIPLE CHOICE After you have read the chapter in the textbook, answer the questions below. Be sure to choose the one best answer. Answers appear at the end of the study guide chapter. If your answer is wrong, think about why it is wrong. If you are still confused, visit your instructor during office hours. 1. Getting work done with a minimum of effort, expense, or waste is the definition of A. management B. planning C. efficiency D. effectiveness E. organizing . 2. Dr. Richards has gathered 20 studies that investigate whether employee participation is related to job satisfaction. She uses a statistical procedure to combine them and estimate the results as a whole. This statistical procedure is known as . A. meta-analysis B. statistical process control C. controlling D. efficiency E. multivariate study analysis 3. Management is . A. exerting power over others B. getting work done through others C. formal authority D. managing tasks E. organizing people 4. The traditional functions of management are . A. planning, organizing, leading, controlling B. motivation, efficiency, authority, effectiveness C. making things happen, meeting the competition, organizing people, leading D. making things happen, meeting the competition, organizing people, planing for change E. planning, bossing, controlling, organizing 5. Top managers are responsible for . A. facilitating team activities B. producing the company’s goods and services C. setting objectives D. the overall direction of the organization E. organizing work flow 8 Chapter 1: Management 6. Middle managers are primarily responsible for all of the following EXCEPT: A. monitoring the business environment B. planning and allocating resources to meet objectives C. implementing changes or strategies generated by top managers D. coordinating groups, departments, or divisions within a company E. monitor and manage performance 7. The newest type of managerial job is A. top manager B. middle manager C. first-line manager D. team leader E. coach . 8. Determining what you want to accomplish, planning how to achieve goals, and gathering information are examples of . A. making things happen B. meeting the competition C. organizing people D. leading E. organizing projects 9. Free trade agreements have the most impact on A. making things happen B. meeting the competition C. organizing people, projects, and processes D. leading E. global teams . 10. Which one is NOT a responsibility of team leaders? A. facilitate performance B. implement changes generated by top managers C. manage external relationships D. facilitate internal relationships E. team assignments 11. According to the meta-analysis results discussed in the text, an employee hired on the basis of a(n) ________ stands a 76% chance of being a better performer than someone picked at random. A. handwriting analysis B. general mental ability test C. human skills test D. interview E. conscientiousness 12. For which type of manager are human skills most important? A. top manager B. middle manager C. first-line manager D. team leaders E. equally important for all Chapter 1: Management 9 13. Julian reads the local paper every day during breakfast. He keeps a special look out for anything that will affect how he manages the restaurant chain where he works. When he gets to work, he reads the Wall Street Journal and a variety of trade magazines to which he subscribes. Julian is fulfilling the role of management. A. leader role B. entrepreneur role C. monitor role D. disseminator role E. liaison role 14. The negotiator subrole is part of the A. interpersonal role B. informational role C. decisional role D. technical role E. planning role . 15. Steve, a marketing manager, is having a meeting with the production manager about a new project, which he will then share with his subordinates. Steve is filling the . A. figurehead role B. leader role C. entrepreneur role D. liaison role 16. The current business environment is one of increasing change. This means that the __________ role of managers is very important in being able to adapt. A. conceptual B. resource allocator C. entrepreneur D. monitor E. negotiator 17. The skill that becomes increasingly important as managers move up the hierarchy is A. technical B. human C. diplomacy D. conceptual E. motivation to manage 18. Managers who were strong in were promoted faster, were rated better as managers by their employees, and earned more than managers who were weak in this skill. A. technical skill B. human skill C. diplomacy D. conceptual sill E. motivation to manage 19. In order for first-line managers to fulfill their leader role by training employees, they have to use their _________ to demonstrate the specialized knowledge or techniques. A. technical skill B. human skill C. diplomacy D. conceptual skill E. motivation to manage 10 Chapter 1: Management 20. Managers who fell off the “fast track” commonly had all of the following problems EXCEPT: A. insensitive to others B. decided they didn’t like management C. cold, aloof, arrogant D. overly ambitious E. unable to delegate 21. Many of the fatal flaws of managers who were initially successful but then fell off the “fast track” had to do with what category of skills? A. technical B. human C. diplomacy D. conceptual E. motivation to manage 22. According to author Linda Hill, new managers initially thought that their job was to A. exercise formal authority B. listen to employee concerns C. develop their employees D. learn as much as they could E. develop their own communication skills . 23. Later, new managers realized that their job was to A. exercise formal authority B. develop their employees C. find a mentor D. communicate with their boss E. tell employees what to do 24. Good management practices, including investing in people, can have which of the following results? A. increasing customer satisfaction B. increasing market value C. increasing employee satisfaction D. increasing competitive advantage E. all of these 25. To develop a trained, motivated, and committed work force, companies use techniques such as A. sharing information B. incentive pay C. skill development D. teams E. all of these are ways companies develop their work forces . SHORT ANSWER 1. List three mistakes made by managers who fell off the fast track. Chapter 1: Management 11 2. Describe the four functions of the new-style manager. 3. As a new manager, you decided to spend a Saturday reading up on the management journals to try to get some new ideas on how to encourage good performance in your employees. You read in one article that a certain management technique worked and in another article that it didn’t. How do you explain this? What technique would combine the results of various studies and help you determine what really works? 4. What skill is most important for first-line managers? Why? 5. What is the name of the interpersonal role that managers play when they deal with people outside their units? 6. In which managerial role do managers spend most of their time? Why do managers spend so much time in this role? 7. Managers with above-average intelligence outperform managers with average intelligence in what skill? How would you explain why this is so? 8. Describe the four decisional roles. 9. What is the difference between effectiveness and efficiency? 12 Chapter 1: Management 10. How is organizing different for new-style managers versus old-style managers? AGREE/DISAGREE For the following statements, indicate reasons why you may agree and disagree with the statement. 1. The only way to learn how to manage is to manage. Reason(s) to agree: Reason(s) to disagree 2. Only students who are majoring in management should be required to take management courses. Reason(s) to agree. Reason(s) to disagree. 3. Management primarily involves managing people. Reason (s) to agree: Reason(s) to disagree: SCENARIO After you read the management scenario, answer the questions that follow. Sharon Anderson, Regional Plant Manager for a small manufacturing firm, was running a late today. Her children had been particularly slow this morning, and she had to drop the dog off at the veterinarian. As she rushed into her office, her administrative assistant tried to hand her a stack of messages that he felt needed her immediate attention. Sharon was feeling “hassled” and basically at her assistant, telling him that she would take care of those later. In her frustration over her bad morning, Sharon slammed her door and dropped into her chair to catch her breath. She just needed five minutes to herself. After she caught her breath, Sharon began to think about what she had to get done that morning. She Chapter 1: Management 13 turned on her computer and checked her calendar for the day. It was going to be a busy day. First, she had to meet with the union representative to discuss a number of concerns that workers had expressed at their last union meeting. She needed to review the monthly reports from the home office and summarize those for a meeting with the managers of the plant. And then, she had a Red Cross benefit luncheon where she needed to represent her company. Sharon didn’t even want to think about all she needed to get done that afternoon. To make matters worse, she would also need to pick up the dog from the veterinarian, fix dinner, and help the kids with their homework. Sharon was beginning to think that working full time might not be the right choice for her at this stage of her life. Oh well, she would think about that later. True/False: ______ 1. In her position as Regional Plant Manager, Sharon would be considered “top management.” ______ 2. When she attended the Red Cross luncheon, Sharon would be acting in her role as a figurehead for her company. ______ 3. Reviewing the reports from the home office and providing that information to managers would fall into one of the decisional roles described by Mintzberg. Multiple Choice: 4. In her position as a regional manager, Sharon’s responsibilities would include . A. setting long-term objectives for the company B. setting objectives consistent with top management’s goals and planning and implementing subunit strategies for achieving these objectives C. managing the performance of entry-level employees D. setting the production schedule for the week E. None of these would be Sharon’s responsibility. 5. When Sharon meets with the union representative, she is acting in the role of . A. liaison B. monitor C. disturbance handler D. negotiator E. Sharon could be acting in one or all of these roles, depending on her objectives and the issues to be discussed in the meeting. 6. When Sharon snapped at her administrative assistant, she demonstrated that she might need to work on her _____________ skills. A. technical B. conceptual C. decision making D. goal setting E. human Short Answer: 7. 14 When Sharon questioned whether or not she was in the right job and even whether or not she should work at all, what personal skill was she questioning? Chapter 1: Management 8. What common mistake did Sharon make when she snapped at her administrative assistant? Why should managers be careful not to make these kinds of mistakes? MANAGEMENT DECISION Chris Gorog, Chairman and CEO of Roxio, Inc. had some big decisions to make. Since his arrival at Roxio in September of 2000 he and his team had faced some tough challenges. He had successful spun off Roxio from its parent company Adaptec and in 2001, his company had reported record fiscal revenues. Roxio was currently one of the best-selling CD recording and digital media software companies in the world. Looking back over the past three years, Gorog knew he had made a lot of things happen. For instance, he had recently entered into a strategic alliance with music giant EMI Recorded Music, and he was working on a strategic alliance with Microsoft. He had also spent a lot of time building his team of senior managers and felt that the company now had a very strong foundation in place to expand its leadership in digital media. The big decision he was facing was what to do with Napster. Roxio had purchased the assets of Napster after the company had been forced to close in the wake of lawsuits charging the company with music piracy. Napster was the brainchild of a 19 year-old student named Shawn Fanning. Fanning had dropped out of college in 1999 to build a piece of software that would allow people all over the world to freely swap music files in a format that compressed digital recordings without sacrificing quality. The company experienced phenomenal growth and in a matter of months, claimed a user base of over 60 million. Unfortunately that growth brought on the wrath of the music industry and in the wake of multiple lawsuits, the company filed for bankruptcy in June of 2002. In November of that year, Roxio purchased the brand name and all of the assets of Napster. Gorog now needed to figure out what to do with Napster. If he was going to bring the product back onto the market, he needed to do it in a way that would not anger the major recording studios. If he was going to make that happen, he needed to be sure that Napster would not be charged with music piracy again. During Napster’s court trials, many other music companies had sprung up on the Web. Most were now charging a downloading fee or a subscription fee that was then paid to the major recording studios. Gorog had to figure out what Napster had going for it that the competition did not have. Questions 1. Who would you get to lead Napster and how would you re-introduce Napster to the marketplace? 2. How would you recommend satisfying the needs of Napster’s customers and the demands of the recording industry? 3. What type of competitive edge would you recommend? Chapter 1: Management 15 CRITICAL THINKING 1. In what ways are team leaders similar to and different from first-line managers? 2. Describe the transition that new managers make in their first year between what they expected and what a management job is really like. 3. Give two examples of situations in which a manager is filling more than one role or subrole at a time. 4. How do managers who fell off the fast track differ from managers who made it to the top, in terms of the mistakes they are prone to make? 5. List some reasons why investing in people is important for competitive advantage. 16 Chapter 1: Management ONLINE EXERCISE INTERNET EXERCISE: Doing Research on the Internet The Internet is composed of more than 20 million host computers and tons and tons of information. When we refer to the World Wide Web, we are referring to the graphical portion of the Internet. The key to doing effective research on the Internet is getting to the right information quickly. There are a number of excellent sites that will provide you with the “basics” of using the Internet and pointers on using Internet search engines to find the information you need. Some of the better sites include: Getting Started on the Internet http://www.imagescape.com/helpweb Learn the Net http://www.learnthenet.com/english/index.html The major search engines include: AltaVista http://www.altavista.com Ask Jeeves http://www.askjeeves.com CNet http://www.search.com Excite http://www.excite.com Google http://www.google.com Hotbot http://www.hotbot.com Infoseek http://www.infoseek.com Lycos http://www.lycos.com Northern Light http://www.northernlight.com/search.html WebCrawler http://www.webcrawler.com Yahoo http://www.yahoo.com. Some of these answers for the Internet Scavenger Hunt require only a URL, while others will require students to search within a site to find the “answer” to the question. Information on the Internet is continually changing, and there are undoubtedly numerous sites where this information can be found. I have suggested a few addresses for each answer. If students have provided an answer and an address that seems logical, I accept their answer. For more resources, visit the Management Web site at http://williams.swlearning.com. Internet Exercise - Internet Scavenger Hunt This scavenger hunt works much like a traditional scavenger hunt, except you must search the Internet to find the answers. Once you have located the answer, list the answer and the URL(Uniform Resource Locator—the "Internet Address") where you found the information. I like to watch Fox News for news each morning. Unfortunately, I’m too cheap to subscribe to cable. Where might I find Fox News on the WWW? I also like to read The Wall Street Journal, but once again I’m too cheap to subscribe. Any ideas? The other day I read an editorial in the New York Times, and I’d like to give that guy a piece of my mind. If I wanted to send a "snail mail" (U.S. Post Office) letter to the New York Times editor, where would I send it? It’s always been my opinion that duct tape could fix anything. I wonder if others agree? Where might I look on the WWW to see what others think about duct tape? Chapter 1: Management 17 I have guests coming to dinner Friday night and I want to make something "new and different." I’ve always been a fan of Julia Child (I love her voice!). Maybe I could find some of her recipes and hints on the Net. Ideas? I’m writing a report for my zoology class, and I don’t know how to spell rinoserus, or is it rhinosarus, or maybe rinosarus? How would I find out how to spell the name of this large, "elephant-like" animal? I guess it’s time we get back to business. In fact, I know how much you love business, so I think you should work on your MBA. Before you decide where to attend school, you might want a list of business schools. Where might you look on the Net? Okay, so maybe you’ve had enough school for awhile. What about starting your own business? Okay, I realize you don’t have any money, but there are venture capitalists out there willing to lend money for good ideas. Maybe you should come up with a list of these folks. All this searching is hard work. I need a beer. Once again, I’m really cheap, so I think I’ll brew my own beer at home. I need to find out more about home-brewing. There must be a few places on the net that might be helpful. When I drink beer, I also like to juggle. I wonder if there’s a juggling home page or information service on the Net. Any ideas where I might look? SOLUTIONS Pre-Test 1. (p. 5) Management is working through others to accomplish tasks that help fulfill organizational objectives as efficiently and effectively as possible. 2. (pp. 12-14) Top managers are responsible for the overall direction of the organization, including creating the context for change, developing employee commitment, and creating a positive organizational culture. Middle managers are responsible for setting objectives for their subunit which are consistent with top management’s goals. Middle managers are also responsible for planning and implementing these strategic objectives. 3. (pp. 21-22) Managers need a variety of skills including technical skills, human or interpersonal skills, conceptual skills, and the motivation to manage. 4. (pp. 22-23) Mistakes managers make often have to do with their ability to interact with people. They may be insensitive to others, cold or aloof, betray trust, or be overly ambitious. Other mistakes include specific performance problems, overmanaging, being unable to staff effectively, being unable to think 18 Chapter 1: Management strategically, being unable to adapt to a boss with a different style, or being overdependent on an advocate or mentor. True-False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. F F T T F F T T F T F 5 8 4 5-6 56 7 7 6 6 12 14-15 12. 13. 14. 15. 16. 17. 18. 19. 20. F T T F T F T T F 12 17 17-18 18 18 18-20 19 21 21 21. 22. 23. 24. 25. T F T T T 22 231 22 29 29 Good management is both effective and efficient. Meta-analysis is a data-analysis technique. Controlling is both monitoring and taking corrective action. New-style managers work with anyone who can help them. See Exhibit 1.1. New-style managers think of themselves as sponsors or coaches. Claire is a first-line manager because she makes detailed schedules and operating plans. Top managers are responsible for this. The liaison role involves talking to people outside one’s unit. Monitor is not part of the decisional role. Human skills are equally important, but all levels don’t spend equal time doing them. Conceptual skills increase in importance as one moves up the hierarchy. Multiple Choice 1. 2. 3. 4. 5. 6. 7. 8. 9. C A B A D A D A B 5 8-9 5 5-6 12 13-14 15 9 10 10. 11. 12. 13. 14. 15. 16. 17. B B E C C D C D 15-16 8 21-22 18 18-20 17 18 21 18. 19. 20. 21. 22. 23. 24. 25. E A B B A B E E 22 21 22-23 22 24-25 25 26-29 27 Short Answer 1. (p. 22) Managers who fell off the fast track made several common mistakes: 1. Insensitive to others: abrasive, intimidating, bullying style. 2. Cold, aloof, arrogant. 3. Betrayal of trust. 4. Overly ambitious: thinking of next job, playing politics. Chapter 1: Management 19 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. 2. (pp. 7-11) Making Things Happen: Determine what you want to accomplish, plan how to achieve these goals, gather and manage the information needed to make a good decision, and control performance, so that you can take corrective action if performance falls short. Meeting the Competition: Companies must consider how to deal with international competitors, have a wellthought-out competitive strategy, be able to embrace change and foster new product and service ideas, and structure their organizations to quickly adapt to changing customers and competitors. Organizing People, Projects, and Processes: Changes in how a company is organized must consider both people issues and work processes (how the work gets done). Leading: Motivating and inspiring workers. 3. (p. 8) Management techniques may work better in some situations, in some industries, with some employees than with others. Meta-analysis aggregates the results of several studies to give managers a better idea of the probability of success of a given management technique. 4. (p. 21) Technical skills are most important for lower-level managers. They need to know the job responsibilities of their employees and are often involved in training them. 5. (p. 17) Managers play the liaison role with people outside their units. 6. (p. 16) Managers spend most of their time in the interpersonal role. They need to interact with people in order to gather information and make decisions, so the interpersonal role is actually important for all three roles. 7. (p. 21) Managers with above-average intelligence outperform managers with average intelligence in conceptual skills. Conceptual skills can aid managers in interpreting information, decision making, and many of the other tasks they perform. 8. (pp. 18-19) Entrepreneur role: the decisional role managers play when they adapt themselves, their subordinates, and their units to incremental change. Disturbance handler role: the decisional role managers play when they respond to severe problems that demand immediate action. Resource allocator role: the decisional role managers play when they decide who gets what resources. Negotiator role: the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises. 9. (p. 5) Efficiency is getting work done with a minimum of effort, expense, or waste. In other words, it means doing things the right way. Effectiveness is accomplishing tasks that help fulfill organizational objectives, or in other words, doing the right things. 10. (p. 6-7) For new-style managers, there is more of a focus on people in addition to the process of how things get done. Agree/Disagree 1. Reason(s) to agree: Clearly, the individuals in Hill’s study learned a great deal when they entered their first job. There are things that are difficult to truly realize in a classroom. Reason(s) to disagree: Since you are taking this class, there must be some things you can learn without 20 Chapter 1: Management actually being a manager. Hopefully, this course will prepare you for the situations you will confront in the future and give you ideas for how to deal with them. 2. Reason(s) to agree: Individuals in many fields will need to use supervisory skills. In the field of nursing, for example, graduates are often placed in supervisory positions within six months. Also, just about everyone will need to interact with coworkers and make decisions, and a course in management provides a wealth of information for doing so. Reason(s) to disagree: It can be difficult to be interested in a topic that is not your major. It can be hard to know how you might use information in the future. 3. Reason(s) to agree: Since management means getting things done through people, managing people is a big part of a manager’s job. Without people and a concern for them, nothing in an organization could get done. Reason(s) to disagree: Managers manage resources, and employees are just one type of resource. Managers need to make sure all resources, including capital, raw materials, and information are used efficiently and effectively to maintain the organization’s competitive advantage. Scenario True-False 1. F 13 2. T 17 3. F 17-18 A regional plant managers would be considered “middle management.” Disseminating information to employees would fall under the information roles described by Mintzberg. Multiple Choice 4. B 13 5. E 16-19 6. E 21 Short Answer 7. 22 8. 22 Sharon was questioning her “motivation to manage.” Sharon was being insensitive and abrasive to her administrative assistant. Managers who make these types of mistakes on a regular basis may find their careers “derailed.” Her chances of being derailed increase with the frequency of this mistake and/or the demonstration of other “fatal flaws.” Management Decision 1. Who would you get to lead Napster and how would you re-introduce Napster to the marketplace? Gorog might consider bringing back Shawn Fanning. Fanning achieved a sort of cult popularity with young music fans. He might be an excellent person to serve in a number of managerial roles, such as that of figurehead, liaison with users, disseminator of information, and spokesperson. The flipside of that argument might be that he would be unable to fulfill many managerial roles with record industry giants. Because he had been the target of the lawsuits, he might not be able to build the interpersonal relationships necessary with the recording studios. 2. How would you recommend satisfying the needs of Napster’s customers and the demands of the Chapter 1: Management 21 recording industry? In order to satisfy both users and the recording industry, Napster will have to charge some sort of fee for downloading music. Part of that fee would go to Napster and part would need to be paid to the recording studio for the use and or sale of the music. 3. What type of competitive edge would you recommend? Napster’s strongest competitive edge is brand recognition. Although Napster has been off of the market for over a year, many young music fans view the company as a hero for the stand it took against the recording industry giants. It is very likely that if these users are going to pay a fee to download music, they will prefer to pay that fee to Napster. Napster may be able to leverage their brand in strategic alliances with software giants such as Microsoft. This could provide a win-win situation for both Roxio and for Microsoft. What Really Happened In early October of 2003, Roxio announced that it would be re-introducing Napster to the online music industry during the week of October 6, 2003. Management also announced that it had negotiated contracts with five major record labels and hundreds of independent labels. Customers would be able to purchase individual tracks or albums that could be seamlessly transferred to portable devices and burned to CDs. The company would also be offering unlimited listening and downloading, plus radio and community features. Rumor in the industry was that a major recording artist would be performing for the re-launch celebration. Although Shawn Fanning served as a consultant to Roxio in the Napster re-launch, as of October, 2003, he had not returned to manage Napster. Critical Thinking 1. (pp. 14-15) A first-line manager has more direct responsibility for other employees; a team leader helps the team in their responsibilities. A team leader has more responsibility for relationships among team members and with others outside the team. 2. (pp. 24-26) New managers expected their job to be more about exercising authority and managing tasks—basically being “the boss.” They didn’t expect the hours to be as long. Later they realized that developing their employees and communicating well were of primary importance. 3. (pp. 16-20) Any task in which a manager fills more than one role or subrole at a time is appropriate. For example, resolving a disagreement with the union could involve both the negotiator subrole (decisional role) and the leader subrole (interpersonal role). If a manager works with other managers from different units to come to a decision about an issue affecting all of them, they are filling the liaison role (interpersonal role) and the entrepreneur or resource allocator subrole (decisional role). 4. (pp. 22-24) Studies showed that both “arrivers” and “derailers” were talented and both had weaknesses. In fact, the studies showed few differences between the two. But what distinguished derailers from arrivers was that derailers possessed two or more fatal flaws in the way they managed people. Arrivers, while not perfect, had no more than one fatal flaw. The number one mistake of derailers was insensitivity to others. The other top ten mistakes are listed in Exhibit 1.5. 5. (pp. 26-29) Investing in people is important for competitive advantage because people are an important resource. Smarter, better trained, and more committed work forces provide superior products and service to customers, leading to increases in sales revenues, profits and customer satisfaction. 22 Chapter 1: Management Internet Scavenger Hunt 1) I like to watch Fox News for news each morning. Unfortunately, I’m too cheap to subscribe to cable. Where might I find Fox News on the WWW? http://www.foxnews.com 2) I also like to read The Wall Street Journal, but once again I’m too cheap to subscribe. Any ideas? http://www.wsj.com/ 3) The other day I read an editorial in the New York Times and I’d like to give that guy a piece of my mind. If I wanted to send a “snail mail” (U.S. Post Office) letter to the New York Times editor, where would I send it? Letters to the Editor http://www.nytimes.com/subscribe/help/letters.html The New York Times 229 West 43rd Street New York, NY 10036 fax: (212) 556-3622 4) It’s always been my opinion that duct tape could fix anything. I wonder if others agree? Where might I look on the WWW to see what others think about duct tape? Duct Tape Guys http://www.octanecreative.com/ducttape/new_intro/index.html 101 Uses for Duct Tape http://www.exploremaine.com/~joeho/tape.htm 5) I have guests coming to dinner Friday night and I want to make something “new and different”. I’ve always been a fan of Julia Child (I love her voice!). Maybe I could find some of her recipes and hints on the net. Ideas? Gourmet Guide: Julia Child http://www.globalgourmet.com Chef Julia Child : StarChefs http://www.starchefs.com 6) I’m writing a report for my zoology class and I don’t know how to spell rinoserus, or is it rhinosarus, or maybe rinosarus? How would I find out how to spell the name of this large, “elephant-like” animal? Rhinoceros: any of a family (Rhinocerotidae) of large heavyset herbivorous perissodactyl mammals of Africa and Asia that have one or two upright keratinous horns on the snout and thick gray to brown skin with little hair Hypertext Webster Dictionary http://smac.ucsd.edu/cgi-bin/http_webster http://www.dictionary.com 7) I guess it’s time we get back to business. In fact, I know how much you love business, so I think you should work on your MBA. Before you decide where to attend school, you might want a list of business schools. Where might you look on the net? Graduate Management Admissions Council (GMAC) http://www.gmac.com/gmac/default.htm MBA.com http://www.mba.com/mba/default.htm 8) Okay, so maybe you’ve had enough school for awhile. What about starting your own business? Okay, I realize you don’t have any money, but there are venture capitalists out there willing to lend money for good ideas. Maybe you should come up with a list of these guys or at least read more about venture capitalists. Venture Capital Online http://www.vcapital.com/ Fast Company http://www.fastcompany.com/magazine/01/ventcap.html Chapter 1: Management 23 9) All this searching is hard work. I need a beer. Once again, I’m really cheap, so I think I’ll brew my own beer at home. I need to find out more about homebrewing. There must be a few places on the net that might be helpful. Real Beer Page http://www.realbeer.com The Association of Brewers http://www.beertown.org 10) When I drink beer, I also like to juggle. I wonder if there’s a juggling home page or information service on the net. Any ideas where I might look? Juggling Information Service www.juggling.org Serious Juggling http://www.seriousjuggling.com 24 Chapter 1: Management