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Chapter 1 Management: 

1 Chapter 1 Management Designed & Prepared by B-books, Ltd. MGMT3 Chuck Williams

What Is Management?: 

2 What Is Management? After reading the next two sections, you should be able to: describe what management is. explain the four functions of management.

Management Functions: 

3 Management Functions Planning Organizing Leading Controlling 2

Planning: 

4 Planning 2.1 Planning Determining organizational goals and a means for achieving them.

PowerPoint Presentation: 

5 Deciding where decisions will be made Deciding who will do what jobs and tasks Deciding who will work for whom 2.2 Organizing

Leading: 

6 Leading Motivating Inspiring Leading 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.

Controlling: 

7 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed

The Control Process: 

8 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards

What Do Managers Do?: 

9 What Do Managers Do? After reading the next two sections, you should be able to: describe different kinds of managers. explain the major roles and subroles that managers perform in their jobs.

Kinds of Managers: 

10 Kinds of Managers Top Managers Middle Managers First-Line Managers Team Leaders 3

Top Managers: 

11 Top Managers 3 3.1 Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO)

Responsibilities of Top Managers: 

12 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

Top Managers in Action: 

13 Beyond the Book Top Managers in Action 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.

Middle Managers: 

14 Middle Managers 3 3.2 Plant Manager Regional Manager Divisional Manager

Responsibilities of Middle Managers: 

15 Responsibilities of Middle Managers 3.2 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 Plan and allocate resources to meet objectives

Middle Managers in Action: 

16 Beyond the Book Middle Managers in Action 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.

First-Line Managers: 

17 First-Line Managers 3 3.3 Office Manager Shift Supervisor Department Manager

Responsibilities of First-Line Managers: 

18 Responsibilities of First-Line Managers 3.3 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

Responsibilities of Team Leaders: 

19 Responsibilities of Team Leaders Facilitate team performance Manage external relations 3.4 Facilitate internal team relationships

Mintzberg’s Managerial Roles: 

20 Mintzberg’s Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975). 4 Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

Biz Flix: In Good Company : 

21 Biz Flix : In Good Company Take Two Video Click Which management skills discussed in this chapter does the character Mark Steckle seem to lack? Which of the characters in this clip exhibited the strongest human skills? Beyond the Book

Managerial Roles: 

22 Managerial Roles Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units 4.1 Interpersonal Roles

Managerial Roles: 

23 Managerial Roles 4.2 Monitor Disseminator Spokesperson Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Informational Roles

Managerial Roles: 

24 Entrepreneur Disturbance Handler Resource Allocator Negotiator Managerial Roles 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 Decisional Roles

What Does It Take to Be a Manager?: 

25 What Does It Take to Be a Manager? After reading the next three sections, you should be able to: 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.

What Companies Look for in Managers: 

26 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Motivation to Manage 5

Management Skills: 

27 Management Skills 5 Skills are more or less important at different levels of management:

Mistakes Managers Make: 

28 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 Mistakes Managers Make Adapted from McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today , Feb 1983. 6 © Don Farrall/Photodisc/Getty Images

Transition to Management (The First Year): 

29 Transition to Management (The First Year) Be the boss Formal authority Manage tasks Job is not managing people Initial expecta- tions were wrong Fast pace Heavy workload Job is to be problem-solver and troubleshooter No longer “doer” Communication, listening, positive reinforcement Learning to adapt and control stress Job is people development Managers’ Initial Expectations After Six Months As a Manager After a Year As a Manager 7

Boss ≠ Bossy: 

30 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).

Why Management Matters: 

31 Why Management Matters After reading this section, you should be able to: explain how and why companies can create competitive advantage through people.

Competitive Advantage through People: 

32 Management Practices in Top Performing Companies Competitive Advantage through People 1. Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Org. Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information 8

Competitive Advantage through People: 

33 Competitive Advantage through People Competitive Advantages of Well-Managed Companies 8 Sales revenues Profits Stock market returns Customer satisfaction Stock market returns