Chapter 1 Management MGMT 3 Chuck Williams Copyright

Chapter 1 Management MGMT 3 Chuck Williams Copyright © 2011 by Cengage Learning. All rights reserved Designed & Prepared by B-books, Ltd.

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. 2 Copyright © 2011 by Cengage Learning. All rights reserved

Management Functions Planning Organizing Leading Controlling 2 3 Copyright © 2011 Cengage Learning. All rights reserved

Planning Determining organizational goals and a means for achieving them. 2. 1 4 Copyright © 2011 by Cengage Learning. All rights reserved

Organizing • Deciding where decisions will be made • Deciding who will do what jobs and tasks • Deciding who will work for whom 2. 2 5 Copyright © 2011 by Cengage Learning. All rights reserved

Leading Inspiring Leading Motivating 2. 3 For Anne Mulcahy, former CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers. 6 Copyright © 2011 by Cengage Learning. All rights reserved

Controlling Monitoring progress toward goal achievement and taking corrective action when needed 2. 4 7 Copyright © 2011 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 2. 4 8 Copyright © 2011 by Cengage Learning. All rights reserved

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. 9 Copyright © 2011 by Cengage Learning. All rights reserved

Kinds of Managers • Top Managers • Middle Managers • First-Line Managers • Team Leaders 3 10 Copyright © 2011 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 © 2011 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 © 2011 by Cengage Learning. All rights reserved

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. 13 Copyright © 2011 by Cengage Learning. All rights reserved

Middle Managers • Plant Manager • Regional Manager • Divisional Manager 3. 2 3 14 Copyright © 2011 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 15 Copyright © 2011 by Cengage Learning. All rights reserved

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. 16 Copyright © 2011 by Cengage Learning. All rights reserved

First-Line Managers • Office Manager • Shift Supervisor • Department Manager 3. 3 3 17 Copyright © 2011 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 18 Copyright © 2011 by Cengage Learning. All rights reserved

Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships Manage external relations 3. 4 19 Copyright © 2011 by Cengage Learning. All rights reserved

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). Copyright © 2011 by Cengage Learning. All rights reserved 20

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 Copyright © 2011 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 4. 2 Managers share information with others outside their departments or companies 22 Copyright © 2011 by Cengage Learning. All rights reserved

Managerial Roles Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator 4. 3 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 23 Copyright © 2011 by Cengage Learning. All rights reserved

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. 24 Copyright © 2011 by Cengage Learning. All rights reserved

What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Motivation to Manage 5 25 Copyright © 2011 by Cengage Learning. All rights reserved

Management Skills are more or less important at different levels of management: 5 Copyright © 2011 by Cengage Learning. All rights reserved

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 Mc. Call and Lombardo, “What Makes a Top Executive? , ” Psychology Today, Feb 1983. 27 Copyright © 2011 by Cengage Learning. All rights reserved

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 28 Copyright © 2011 by Cengage Learning. All rights reserved

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/26 corner. html (accessed 10/23/2009). 29 Copyright © 2011 by Cengage Learning. All rights reserved

Why Management Matters After reading this section, you should be able to: 8. explain how and why companies can create competitive advantage through people. 30 Copyright © 2011 by Cengage Learning. All rights reserved

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 31 Copyright © 2011 by Cengage Learning. All rights reserved

Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales revenues Profits Customer satisfaction 8 Stock market returns 32 Copyright © 2011 by Cengage Learning. All rights reserved