Chapter 1
Management
What Would You Do?
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Charlie Kim creates a company filled with family
and friends
Discontent and disorganization develop
What mistakes do managers tend to make?
What does it take to be a manager?
2
Learning Objectives
What is Management?
After discussing this section,
you should be able to:
1.
2.
describe what management is.
explain the four functions of management.
3
Management is...
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Getting work done through others
Managers are concerned with:

efficiency
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getting work done with a minimum of effort, expense or
waste
effectiveness

accomplishing tasks that help fulfill organizational
objectives
4
What Really Works
General Mental Ability and Job Performance
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||76% probability of success
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Management Functions
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“Old”
Planning
Organizing
Leading
Controlling
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“New”
Making Things
Happen
Meeting the
Competition
Organizing People,
Projects, and
Processes
Leading
Adapted from Exhibit 1.1
6
Making Things Happen
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Determining what you want to accomplish
Planning how to achieve those goals
Gathering and managing the information
needed to make good decisions
Controlling performance
7
Meeting the Competition
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Consider the threat from international
competitors
Have a well-thought-out competitive strategy
Be able to embrace change and foster new
product and service ideas
Structure their organizations to quickly adapt
to changing customers and competitors
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Organizing People, Projects, and
Processes
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Consideration of people issues
Consideration of work processes
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Leading
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Motivation
Inspiration
Communication
Perspiration
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Learning Objectives
What Do Managers Do?
After discussing this section,
you should be able to:
3.
4.
describe different kinds of managers.
explain the major roles and subroles that
managers perform in their jobs.
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Kinds of Managers
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Top Managers
Middle Managers
First-Line Managers
Team Leaders
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Top Managers
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Responsible for:
Creating a context for change
Developing attitudes of commitment and
ownership in employees
Creating a positive organizational culture
through language and action
Monitoring their business environments
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Middle Managers
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Responsible for:
Planning and allocating resources to meet
objectives
Coordinating and linking groups,
departments, and divisions
Monitoring and managing the performance
of the subunits and individual managers who
report to them
Implementing the changes or strategies
generated by top managers
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First-Line Managers
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Responsible for:
Managing the performance of entry-level
employees
Teaching entry-level employees how to do
their jobs
Making detailed schedules and operating
plans based on middle management’s
intermediate range plans
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Team Leaders
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Responsible for:
Facilitating team performance
Managing external relationships
Internal team relationships
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Managerial Roles
Interpersonal
figurehead
leader
liaison
Informational
monitor
disseminator
spokesperson
Adapted from Exhibit 1.3
Decisional
entrepreneur
disturbance handler
resource allocator
negotiator
H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973)
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Learning Objectives
What Does It Take to Be a
Manager?
After discussing this section you should be able to:
5.
6.
7.
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.
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What Companies Look For in
Managers
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Technical skills
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Human Skills
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ability to work with others
Conceptual Skill
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specialized knowledge
ability to see the organization as whole
Motivation to Manage

a desire to be in charge
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Human Skills
Technical
Skills
Motivation to
Manage
Conceptual
Skills
Low Importance
Adapted from
Exhibit 1.4
Top Managers
Middle Managers
High Importance
First-line Managers
Team Leaders
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Mistakes Managers Make
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Insensitive to others
Cold, aloof, and/or arrogant
Betraying a trust
Overly ambitious
Specific performance problems
with the business
Adapted from Exhibit 1.5
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Mistakes Managers Make (cont’d)
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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
Adapted from Exhibit 1.5
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First-Year Management Transition
Managers’
Initial
Expectations
 Be the boss
 Formal
authority
 Manage tasks
 Job is not
managing
people
After Six
After a Year
Months
as a Manager
as a Manager
 Initial
 No longer “doers”
expectations
 Communication,
were wrong
listening, & positive
 Fast pace
reinforcement
 Heavy
 Job is to be
workload
problem-solver
 Job is people
and troubledevelopment
shooter for
subordinates.
Adapted from Exhibit 1.6
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Been There, Done That
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Travis Reynolds, 24, is a new first-level
manager
First month was high stress
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empowered, but wasn’t empowering others
overly tough on employees
tried too hard to prove himself
Learned from his mistakes
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now loves his job
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The Transition to Management
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Initial Assumptions
Exercise formal
authority
Managing tasks not
people
Help employees do
their jobs
Hire and fire
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Reality
Cannot be “bossy”
Manage people not
tasks
Coach employee
performance
Fast pace, heavy
workload
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Learning Objectives
Why Management Matters.
After discussing this section, you should be
able to:

explain how and why companies can create
competitive advantage through people.
26
Competitive Advantage Through
People: Management Practices
Employment
Security
 Selective Hiring
 Self-Managed
Teams &
Decentralization
 High Wages
Contingent on
Organizational
AdaptedPerformance
from Exhibit 1.7
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Training and Skill
Development
Reduction of Status
Differences
Sharing Information
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What Really Happened
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Richard Pregiato hired as CEO
Each manager created goals & plans
Middle managers added
No more “work outs” during work
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