McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives L01: Summarize major challenges of

managing in the new competitive landscape L02: Describe the drivers of competitive

advantage for a company L03: Explain how the functions of

management are evolving in today’s business environment

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Learning Objectives

L04: Compare how the nature of management varies at different levels of an organization

L05: Define the skills you need to be an effective manager

L06: Discuss the principles that will help you manage your career

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Managing in the New Competitive Landscape Globalization Technological change The importance of knowledge and ideas Collaboration across organizational

“boundaries”

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What is Globalization?

Consumer demands transcend national borders

Organizations recruit talent from all over the world

Internet use is increasing consumer demands and changing the way people work

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“The best thing business schools can do to prepare their students is to encourage them to look beyond their own backyards. Globalization has opened the world for many opportunities, and schools should encourage their students to take advantage of them.”

-Jim Goodnight, CEO SAS Institute

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Why is the Internet important? Fulfills many business functions:

MarketplaceManufacturing goods and servicesDistribution channelAn information service

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Why is the Internet important? Drives down costs Speeds up globalization Provides access to information, allows

better-informed decisions, and improves efficiency of decision making

Facilitates design of new products

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Importance of Knowledge Knowledge workers - Workers whose

primary contributions are ideas and problem-solving expertise

Knowledge management – Practices aimed at discovering and harnessing an organization’s intellectual resources

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Challenges of managing knowledge workers Job performance evaluation is difficult

because of the lack of quantitative measures of output

Motivated by interesting jobs not rewards

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Knowledge Management involves Finding, unlocking, sharing and

altogether capitalizing on employees’ expertise, skills, wisdom, and relationships.

Relies on software to allow employees to contribute and readily share knowledge with one another

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Collaborating for success

Knowledge management ensures communication across boundaries to facilitate collaboration.

Collaboration occurs inside the organization (across levels, functions, departments) as well as outside (with customers, competitors, investors)

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Managing for Competitive Advantage Fundamental success drivers:

InnovationQualityServiceSpeedCost Competitiveness

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Innovation

Introduction of new goods and services “Today’s holy grail.”

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Quality

The excellence of goods or services Historically: pertained to the physical goods

that customers bought and the attractiveness, lack of defects, reliability, and long-term dependability

More recently: preventing defects before they occur, achieving zero defects in manufacturing, designing products for quality, meets consumer wishes,

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Service

The speed and dependability with which an organization delivers what customers want

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Speed

Fast and timely execution, response and delivery of results

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Cost Competitiveness

Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers

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Management success is … Delivering them all:

InnovationQualityServiceSpeedCost Competitiveness

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The Functions of Management Management is the process of working

with people and resources to accomplish organizational goals

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Management is…

Effective – to achieve organizational goals

Efficient – to achieve goals with minimal waste of resources

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Four Management Functions Planning Organizing Leading Controlling

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Planning

Specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals.

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Organizing

Assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals.

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Leading

Stimulating people to be high performers

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Controlling

Monitoring performance and implements necessary changes.

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Management Levels

Top Level Middle level Frontline

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Top managers Senior executives Responsible for overall management Concerned with organization’s interactions

with the external environment Strategic managers (set overall direction by

formulating strategy and controlling resources)focus on long-term issuesEmphasize the survival, growth, and overall

effectiveness of the organization

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Middle Managers

Located below top-level managers and above front-line managers

Tactical managersResponsible for translating the general

goals and plans developed by strategic managers into specific objectives and activities

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Frontline Managers

Lower level managers Operational managers

Supervise the operations of the organization

Directly involved with nonmanagement employees

Implementing the specific plans developed by middle managers

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Transformation of Management Roles and Activities

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Management Roles

InterpersonalLeaderLiaisonFigurehead

InformationalMonitorDisseminatorSpokesperson

DecisionalEntrepreneurDisturbance handlerResource allocatorNegotiation

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Skills YOU need to be a successful manager

Technical skillsAbility to perform a specialized task that involves

a certain method or process

Interpersonal and communication skillsAbility to work well with people

Conceptual and decision skillsAbility to identify and resolve problems for the

benefit of the organization and everyone concerned

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YOU and Your Career You need:

Emotional intelligenceTo be a specialist and generalistTo be self-reliantTo have a social networkTo actively manage your relationship with

your organization

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What’s your EQ?

How well do you understand your strengths and limitations?

How well do you manage your emotions, make good decisions, seek and use feedback, and exercise self-control?

How well do you effectively listen, show empathy, motivate and lead others?

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You and Your organization

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A Resume’ for the 21st Century

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Successful executives are Proactive Action Planners Responsible Problem solvers

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Review of Learning Objectives L01: Summarize major challenges of

managing in the new competitive landscape

L02: Describe the drivers of competitive advantage for a company

L03: Explain how the functions of management are evolving in today’s business environment

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Review of Learning Objectives L04: Compare how the nature of

management varies at different levels of an organization

L05: Define the skills you need to be an effective manager

L06: Discuss the principles that will help you manage your career

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Test your Knowledge

How does the nature of management vary at different levels of an organization?

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Test Your Skills

Glass Slipper ProjectDescribe how the four functions of

management apply to the Glass Slipper Project, its founders and participants

Describe some of the specific skills you think Jim Nutini must have to get the dresses cleaned, packaged, and delivered in time for shopping days.

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Test your knowledge

Summarize the major challenges in the new competitive landscape

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Test Your Knowledge

Describe the drivers of competitive advantage for a company

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