chapter 1 management - orange coast...

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Copyright ©2011 by Cengage Learning. All rights reserved

Chapter 1 Management

Designed & Prepared byB-books, Ltd.

MGMT3

Chuck Williams

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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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Copyright ©2011 Cengage Learning. All rights reserved

Management Functions

Planning

Organizing

Leading

Controlling

Planning

Organizing

Leading

Controlling

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4Copyright ©2011 by Cengage Learning. All rights reserved

Planning

2.12.1

Planning

Determining organizational goals and a means for achieving them.


• Deciding where decisions will be made

• Deciding who will do what jobs and tasks

• Deciding who will work for whom

2.22.2

Organizing


Leading

MotivatingMotivating

InspiringInspiring

LeadingLeadingLeading

2.32.3

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

2.42.4

Controlling

Monitoring progress toward goal achievement and taking corrective action when needed

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The Control Process

2.42.4

Set standards toachieve goals

Compare actualperformance to

standards

Make changesto return

performance tostandards

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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

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Top Managers

33.13.1

• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)

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Responsibilities of Top Managers

Creating a context for changeCreating a context for change

Developing commitmentand ownership in employees

Developing commitmentand ownership in employees

Creating a positive organizational culture through language and actionCreating a positive organizational

culture through language and action

Monitoring their business environmentsMonitoring their business environments

3.13.1

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Beyond the BookTop 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.

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Middle Managers

33.23.2

• Plant Manager

• Regional Manager

• Divisional Manager

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Responsibilities of Middle Managers

3.23.2

Coordinate and link groups, departments, and divisions

Coordinate and link groups, departments, and divisions

Monitor and manage the performance of subunits and managers who report to them

Monitor and manage the performance of subunits and managers who report to them

Implement changes or strategies generated by top managers

Implement changes or strategies generated by top managers

Plan and allocate resources to meet objectivesPlan and allocate resources to meet objectives

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Beyond the BookMiddle 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.

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First-Line Managers

33.33.3

• Office Manager

• Shift Supervisor

• Department Manager

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Responsibilities of First-Line Managers

3.33.3

Manage the performance of entry-level employees

Manage the performance of entry-level employees

Encourage, monitor, and reward the performance of workers

Encourage, monitor, and reward the performance of workers

Teach entry-level employees how to do their jobsTeach entry-level employees how to do their jobs

Make detailed schedules and operating plansMake detailed schedules and operating plans

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Responsibilities of Team Leaders

Facilitate team performanceFacilitate team performance

Manage external relationsManage external relations

3.43.4

Facilitate internal team relationshipsFacilitate internal team relationships


Mintzberg’s Managerial Roles

H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975).

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Interpersonal Informational DecisionalFigurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

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Managerial Roles

Figurehead

Leader

Liaison

Figurehead

Leader

Liaison

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

4.14.1

Interpersonal Roles

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Managerial Roles

4.24.2

Monitor

Disseminator

Spokesperson

Monitor

Disseminator

Spokesperson

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Informational Roles

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Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Managerial Roles

4.34.3

Managers adapt to incremental change

Managers respond to problems thatdemand immediate action

Managers decide who gets what resources

Managers negotiate schedules, projects, goals, outcomes, resources, and raises

Managers adapt to incremental change

Managers respond to problems thatdemand immediate action

Managers decide who gets what resources

Managers negotiate schedules, projects, goals, outcomes, resources, and raises

Decisional Roles

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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 SkillsTechnical Skills Human SkillsHuman Skills

Conceptual SkillsConceptual Skills Motivation to ManageMotivation to Manage

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Management Skills

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

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1. Insensitive to others1. Insensitive to others

2. Cold, aloof, arrogant2. Cold, aloof, arrogant

3. Betrayal of trust3. Betrayal of trust

4. Overly ambitious 4. Overly ambitious

5. Specific performance problems with the busines s5. Specific performance problems with the busines s

6. Overmanaging: unable to delegate or build a t eam6. Overmanaging: unable to delegate or build a t eam

7. Unable to staff effectively7. Unable to staff effectively

8. Unable to think strategically 8. Unable to think strategically

9. Unable to adapt to boss with different style9. Unable to adapt to boss with different style

10. Overdependent on advocate or mentor10. Overdependent on advocate or mentor

Mistakes Managers Make

Adapted from McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today, Feb 1983.66

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Transition to Management (The First Year)

�Be the boss

�Formal authority

�Manage tasks

� Job is not managing people

�Be the boss

�Formal authority

�Manage tasks

� Job is not managing people

� Initial expecta-tions were wrong

�Fast pace

�Heavy workload

� Job is to beproblem-solverand troubleshooter

� Initial expecta-tions were wrong

�Fast pace

�Heavy workload

� Job is to beproblem-solverand troubleshooter

�No longer “doer”

�Communication,listening, positivereinforcement

� Learning to adaptand control stress

� Job is peopledevelopment

�No longer “doer”

�Communication,listening, positivereinforcement

� Learning to adaptand control stress

� Job is peopledevelopment

Managers’Initial Expectations

After Six MonthsAs a Manager

After a YearAs a Manager

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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.


Management Practices in Top Performing CompaniesManagement Practices in Top Performing Companies

Competitive Advantage through People

1. Employment Security1. Employment Security

2. Selective Hiring2. Selective Hiring

3. Self-Managed Teams and Decentralization3. Self-Managed Teams and Decentralization

4. High Wages Contingent on Org. Performance 4. High Wages Contingent on Org. Performance

5. Training and Skill Development5. Training and Skill Development

6. Reduction of Status Differences6. Reduction of Status Differences

7. Sharing Information7. Sharing Information

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Competitive Advantage through People

Competitive Advantages of Well-Managed Companies

Competitive Advantages of Well-Managed Companies

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Sales revenues

Profits

Stock market returns

Customer satisfaction

Stock market returns

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