Chapter
1
Management
Management
4th Edition
Chuck Williams
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Prepared by
Deborah Baker
Texas Christian University
1
What Would You Do?
Headquarters, Amazon.com, Seattle, Georgia.

Amazon grew so fast that it
lost control of the basics

Sales were growing, but
the company was poorly
managed

Amazon has lost over
$3 billion since its inception,
but is finally earning profits
How can Amazon do a better job
to fix what’s going wrong?
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2
What Is Management?
After reading the next two sections,
you should be able to:
1.
2.
describe what management is.
explain the four functions of management.
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3
Management Is…
Getting work
done through
others
Efficiency
Effectiveness
1
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4
Management Functions
Management Functions
Planning
Organizing
Leading
Controlling
2
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5
Planning
Planning
Determining organizational goals and a
means for achieving them
2.1
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6
What Really Works: Meta-Analysis
General Mental Ability
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success
76%
Meta-Analysis is a study of studies that
shows what works and when.
This statistic shows that an employee hired on the basis of a good score
on a general mental ability test stands a 76 percent chance of being a
better performer than someone picked at random from the pool of all job
applicants.
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7
Organizing

Deciding where decisions will be made

Who will do what jobs and tasks

Who will work for whom
2.2
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8
Leading
Inspiring
Leading
Motivating
For Anne Mulcahy, CEO of Xerox,
the key to successful leadership is
communicating with the company’s
most important constituents:
2.3
employees and customers.
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9
Controlling
Controlling
Monitoring progress toward goal
achievement and taking corrective action
when needed
2.4
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10
The Control Process
Set standards to
achieve goals
Make changes
to return
performance to
standards
Compare actual
performance to
standards
2.4
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11
What Do Managers Do?
After reading the next two sections,
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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12
Kinds of Managers

Top Managers

Middle Managers

First-Line Managers

Team Leaders
3
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13
Top Managers

Chief Executive Officer (CEO)

Chief Operating Officer (COO)

Chief Financial Officer (CFO)

Chief Information Officer (CIO)
3.1
3
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14
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
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15
Middle Managers

Plant Manager

Regional Manager

Divisional Manager
3.2
3
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16
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
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17
First-Line Managers

Office Manager

Shift Supervisor

Department Manager
3.3
3
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18
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
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19
Responsibilities of Team Leaders
Facilitate team performance
Manage external relations
Facilitate internal team relationships
3.4
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20
Managerial Roles
Interpersonal
Informational
Decisional
Figurehead
Monitor
Entrepreneur
Leader
Disseminator
Disturbance
Handler
Liaison
Spokesperson
Resource
Allocator
4
Negotiator
Adapted from Exhibit 1.4
H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.
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21
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
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22
Managerial Roles
Informational Roles
Monitor
Managers scan their environment
for information
Disseminator
Managers share information
with others in their company
Spokesperson
4.2
Managers share information
with others outside their
departments or companies
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23
Managerial Roles
Decisional Roles
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Managers adapt to incremental change
Managers respond to problems that
demand immediate action
Managers decide who gets
what resources
Managers negotiate schedules,
projects, goals, outcomes, resources,
and raises
4.3
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24
What Does It Take to Be a Manager?
After reading the next three
sections, you should be able to:
5.
explain what companies look for
in managers.
6.
discuss the top mistakes that managers
make in their jobs.
7.
describe the transition that employees go through
when they are promoted to management.
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25
What Companies Look for
in Managers
Technical Skills
Human Skills
Conceptual Skills
Motivation to Manage
5
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26
What Companies Look for
in Managers
Skills are more or less important at different
levels of management:
5
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27
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
10. Overdependent on advocate or mentor
6
Adapted from Exhibit 1.6
McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983
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28
The First Year Management Transition
Managers’
Initial Expectations
 Be the boss
 Formal authority
 Manage tasks
 Job is not
managing people
After Six Months
As a Manager
 Initial expectations were wrong
 Fast pace
 Heavy workload
After a Year
As a Manager
 No longer “doer”
 Communication,
listening, positive
reinforcement
 Learning to adapt
 Job is to be
and control stress
problem-solver
and troubleshooter  Job is people
development
7
Adapted from Exhibit 1.7
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29
Why Management Matters
After reading this section,
you should be able to:
8.
explain how and why companies can create
competitive advantage through people.
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30
Competitive Advantage
through People
Management Practices in Top Performing Companies
1. Employment Security
2. Selective Hiring
3. Self-Managed Teams and Decentralization
4. High Wages Contingent on Organizational Performance
5. Training and Skill Development
6. Reduction of Status Differences
7. Sharing Information
8
Adapted from Exhibit 1.8
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31
Competitive Advantage through People
J.M. Smucker
Company has been
on Fortune’s list of
100 Best Companies
to Work For since
the list was started
in 1998. Smucker’s
has extremely low
employee turnover
and extremely high
employee
satisfaction.
Tim and Richard Smucker
are pictured here.
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32
Competitive Advantage
through People
Competitive Advantages of
Well-Managed Companies
8
Sales Revenues
Profits
Stock Market Returns
Customer Satisfaction
Web Link
http://www.greatplacetowork.com/best/list-bestusa.htm
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33