Chapter 1
Management
MGMT3
Chuck Williams
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1
Copyright ©2011 by Cengage Learning. All rights reserved
What Is Management?
After reading the next two sections,
you should be able to:
1. describe what management is.
2. explain the four functions of management.
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Management
Functions
Planning
Organizing
Leading
Controlling
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3
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Planning
Planning
Determining organizational goals and a
means for achieving them.
2.1
4
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Organizing
• Deciding where
decisions will be
made
• Deciding who will do
what jobs and tasks
• Deciding who will
work for whom
2.2
5
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Leading
Inspiring
Leading
Motivating
For Anne Mulcahy, former CEO of
Xerox, the key to successful
leadership is communicating with
the company’s most important
constituents: employees and
customers.
2.3
6
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Controlling
Controlling
Monitoring progress toward goal
achievement and taking corrective action
when needed
2.4
7
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The Control Process
Set standards to
achieve goals
Make changes
to return
performance to
standards
Compare actual
performance to
standards
2.4
8
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What Do Managers Do?
After reading the next two sections,
you should be able to:
3. describe different kinds of managers.
4. explain the major roles and subroles that
managers perform in their jobs.
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Kinds of Managers
• Top Managers
• Middle Managers
• First-Line Managers
• Team Leaders
3
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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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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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Top Managers in
Action
Beyond the Book
• CEO James Griffith has worked hard to position Timken,
the maker of specialty steel industrial parts, to weather
economic hard times.
• Before the recession, Griffith reduced Timken’s
dependence on the Detroit automakers from 40% of
revenue to 20%.
• Timken is branching into industries with high cost of part
failure, like aerospace, windmills, and offshore pipelines.
• Griffith has reduced his workforce by 20% for added
flexibility.
Source: S. Baker, “Timken Plots a Rust Belt Resurgence”, Business Week, 26 October 2009. 58.
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Middle Managers
• Plant Manager
• Regional Manager
• Divisional Manager
3.2
3
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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
15
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Middle Managers in
Action
Beyond the Book
• Ford’s chief diesel engineer, Adam Gryglak, was charged
with producing a new diesel engine in 36 months.
• Gryglak handpicked his team of engineers from different
areas of the company.
• Gryglak saved time in decision making by having his
team work offsite away from the Ford hierarchy. He also
allowed parts suppliers to work more independently.
•Ford released their new Super Duty pickup on time, with
the new engine, in September 2009.
Source: D. Kiley, “Putting Ford on Fast-Forward”, Business Week, 26 October 2009. 56-57.
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First-Line Managers
• Office Manager
• Shift Supervisor
• Department Manager
3.3
3
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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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Responsibilities of Team
Leaders
Facilitate team performance
Facilitate internal team relationships
Manage external relations
3.4
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Mintzberg’s Managerial Roles
Interpersonal
Informational
Decisional
Figurehead
Monitor
Entrepreneur
Leader
Disseminator
Disturbance
Handler
Liaison
Spokesperson
Resource
Allocator
Negotiator
4
H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975).
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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
21
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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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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
23
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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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What Companies Look for
in Managers
Technical Skills
Human Skills
Conceptual Skills
Motivation to Manage
5
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Management Skills
Skills are more or less important at different
levels of management:
5
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Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
© Don Farrall/Photodisc/Getty Images
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 McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today, Feb 1983.
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Transition to Management
(The First Year)
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
 Job is to be
problem-solver
and troubleshooter
After a Year
As a Manager
 No longer “doer”
 Communication,
listening, positive
reinforcement
 Learning to adapt
and control stress
 Job is people
development
7
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Beyond the Book
Boss ≠ Bossy
• Carol Smith, CEO Elle Group, tells the following story
about how managers need to win over their employees:
“In sixth grade, I was head of the project to create a
mural for the graduating class to hang in the
auditorium. That’s a big deal. I got a clipboard, I
remember, and then I had all this power and I started
bossing everyone around. And within days it was
apparent that I was going to have a mutiny on my
hands, and I was fired from the mural.”
Source: C. Smith, “Corner Office: No Doubt: Women are Better Managers”, interview by A. Bryant, The New York Times, 25 July 2009.
http://www.nytimes.com/2009/07/26/business/26corner.html (accessed 10/23/2009).
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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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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
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Competitive Advantage
through People
Competitive Advantages of
Well-Managed Companies
Sales revenues
Profits
Customer satisfaction
8
Stock market returns
32
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