Chapter 1 Management MGMT3. Chuck Williams. Designed & Prepared by B-books, Ltd. Copyright 2011 by Cengage Learning. All rights reserved

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

2 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

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

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

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

6 Leading Leading Inspiring 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

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

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

9 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

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

11 Top Managers Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO) Copyright 2011 Cengage Learning. All rights reserved 11

12 Responsibilities of Top Managers Creating a context for change Developing commitment and ownership in in employees Creating a positive organizational culture through language and action Monitoring their business environments

13 Top Managers in Beyond the Book 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

14 Middle Managers Plant Manager Regional Manager Divisional Manager Copyright 2011 Cengage Learning. All rights reserved 14

15 Responsibilities of Middle Managers Plan and allocate resources to to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage the performance of of subunits and managers who report to to them 3.2 Implement changes or or strategies generated by top managers 15

16 Middle Managers in Beyond the Book 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 Source: D. Kiley, Putting Ford on Fast-Forward, Business Week, 26 October

17 First-Line Managers Office Manager Shift Supervisor Department Manager Copyright 2011 Cengage Learning. All rights reserved 17

18 Responsibilities of First-Line Managers Manage the performance of of entry-level employees Encourage, monitor, and reward the performance of of workers Teach entry-level employees how to to do their jobs 3.3 Make detailed schedules and operating plans 18

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

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

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

22 Managerial Roles Informational Roles Monitor Disseminator Managers scan their environment for for information Managers share information with others in in their company 4.2 Managers Spokesperson share information with others outside their departments or or companies 22

23 Managerial Roles Decisional Roles 4.3 Managers Entrepreneur adapt to to incremental change Managers respond to to problems that that Disturbance demand immediate action Handler Managers decide who who gets gets Resource what resources Allocator Managers negotiate schedules, Negotiator projects, goals, outcomes, resources, and and raises 23

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. 24

25 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Motivation to to Manage 5 25

26 Management Skills Skills are more or less important at different levels of management: 5 26

27 Mistakes Managers Make Don Farrall/Photodisc/Getty Images Insensitive to to others Cold, aloof, arrogant Betrayal of of trust Overly ambitious Specific performance problems with the business Overmanaging: unable to to delegate or or build a team Unable to to staff effectively Unable to to think strategically Unable to to adapt to to boss with different style 10. Overdependent on on advocate or or mentor 6 Adapted from McCall and Lombardo, What Makes a Top Executive?, Psychology Today, Feb

28 Transition to Management (The First Year) Managers Initial Expectations Be Be the the boss boss Formal authority Manage tasks Job Job is is not not managing people After Six Months As a Manager Initial expectations were wrong Fast Fast pace Heavy workload Job Job is is to to be be problem-solver and and troubleshooter After a Year As a Manager No No longer doer Communication, listening, positive reinforcement Learning to to adapt and and control stress Job Job is is people development 7 28

29 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 (accessed 10/23/2009). 29

30 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

31 Competitive Advantage through People Management Practices in Top Performing Companies Employment Security Selective Hiring Self-Managed Teams and Decentralization High Wages Contingent on Org. Performance Training and Skill Development Reduction of of Status Differences Sharing Information 8 31

32 Competitive Advantage through People Competitive Advantages of Well-Managed Companies Sales revenues Profits Customer satisfaction 8 Stock market returns 32