Chapter 1

Management

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What Would You Do?

Charlie Kim creates a company filled with family and friends

Discontent and disorganization develop What mistakes do managers tend to make? What does it take to be a manager?

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After discussing this section, you should be able to:

Learning ObjectivesWhat is Management?

1. describe what management is.

2. explain the four functions of management.

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Management is...

Getting work done through others Managers are concerned with:

efficiency getting work done with a minimum of effort, expense or

waste effectiveness

accomplishing tasks that help fulfill organizational objectives

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What Really Works

General Mental Ability and Job Performance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||76% probability of success

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Management Functions

“Old” Planning Organizing Leading Controlling

“New” Making Things

Happen Meeting the

Competition Organizing People,

Projects, and Processes

LeadingAdapted from Exhibit 1.1

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Making Things Happen

Determining what you want to accomplish Planning how to achieve those goals Gathering and managing the information

needed to make good decisions Controlling performance

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Meeting the Competition

Consider the threat from international competitors

Have a well-thought-out competitive strategy Be able to embrace change and foster new

product and service ideas Structure their organizations to quickly adapt

to changing customers and competitors

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Organizing People, Projects, and Processes

Consideration of people issues Consideration of work processes

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Leading

Motivation Inspiration Communication Perspiration

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After discussing this section, you should be able to:

Learning ObjectivesWhat Do Managers Do?

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

Responsible for: Creating a context for change Developing attitudes of commitment and

ownership in employees Creating a positive organizational culture

through language and action Monitoring their business environments

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Middle ManagersResponsible for:

Planning and allocating resources to meet objectives

Coordinating and linking groups, departments, and divisions

Monitoring and managing the performance of the subunits and individual managers who report to them

Implementing the changes or strategies generated by top managers

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First-Line Managers

Responsible for: Managing the performance of entry-level

employees Teaching entry-level employees how to do

their jobs Making detailed schedules and operating

plans based on middle management’s intermediate range plans

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Team Leaders

Responsible for: Facilitating team performance Managing external relationships Internal team relationships

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Managerial Roles

Interpersonalfigurehead

leaderliaison

Informationalmonitor

disseminatorspokesperson

Decisionalentrepreneur

disturbance handlerresource allocator

negotiator

H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973)Adapted from Exhibit 1.3

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After discussing this section you should be able to:

Learning ObjectivesWhat Does It Take to Be a Manager?

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 skills

specialized knowledge Human Skills

ability to work with others Conceptual Skill

ability to see the organization as whole Motivation to Manage

a desire to be in charge

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Low Importance High ImportanceTop Managers

Middle Managers

First-line Managers

Team LeadersAdapted fromExhibit 1.4

Human Skills

Technical Skills

Motivation toManage

Conceptual Skills

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Mistakes Managers Make

Insensitive to others Cold, aloof, and/or arrogant Betraying a trust Overly ambitious Specific performance problems

with the business

Adapted from Exhibit 1.5

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Mistakes Managers Make (cont’d) Overmanaging: unable to delegate or build a

team Unable to staff effectively Unable to think strategically Unable to adapt to boss with different style Overdependent on advocate or mentor

Adapted from Exhibit 1.5

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First-Year Management TransitionManagers’

InitialExpectations

After SixMonths

as a Manager

After a Yearas a Manager

Be the boss Formal

authority Manage tasks Job is not

managingpeople

Initialexpectationswere wrong

Fast pace Heavy

workload Job is people

development

No longer “doers” Communication,

listening, & positivereinforcement

Job is to beproblem-solverand trouble-shooter forsubordinates.

Adapted from Exhibit 1.6

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Been There, Done That

Travis Reynolds, 24, is a new first-level manager

First month was high stress empowered, but wasn’t empowering others overly tough on employees tried too hard to prove himself

Learned from his mistakes now loves his job

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The Transition to Management

Initial Assumptions Exercise formal

authority Managing tasks not

people Help employees do

their jobs Hire and fire

Reality Cannot be “bossy” Manage people not

tasks Coach employee

performance Fast pace, heavy

workload

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After discussing this section, you should be able to:

Learning ObjectivesWhy Management Matters.

explain how and why companies can create competitive advantage through people.

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Competitive Advantage Through People: Management Practices Employment Security Selective Hiring Self-Managed Teams

& Decentralization High Wages

Contingent on Organizational Performance

Training and Skill Development

Reduction of Status Differences

Sharing Information

Adapted from Exhibit 1.7

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What Really Happened

Richard Pregiato hired as CEO Each manager created goals & plans Middle managers added No more “work outs” during work