1. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Introduction to Management  Managing Strategically  Organizational External Environment  Organizational Internal Environment  Corporate, Global and Firm Level Strategies  Implementing Strategies-Management Issues  Organizational Structure  Ethics and Social Responsibility  Planning 1

2. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Decision Making  Managing Information  Control  Global Management  Innovation Management  Change Management  Designing Adaptive Organizations  Managing Diversity  Managing Teams  Determining Human Resource Needs 2

3. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Finding and Developing Qualified Workers  Performance Appraisal Management and Retention  Managing Service and Manufacturing Operations  Motivation Theories  Motivating through the design of Work  Leadership Theories  Managing Communication  Stress Management 3

4. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Personality Traits and Outcomes  Justice, Fair Treatment & Dismissal Management  Safety and Health Management  Labor Relations and Collective Bargaining 4

5. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Reference Material  Management by Chuck Williams  Other Organizational management and strategy books  Online search 5

6. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 Lecture 1 Introduction to Management Prepared by dr Amna Yousaf PhD (university of Twente, the Netherlands COMSATS Institute of Information Technology, Islamabad

7. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 Learning Outcomes 1. describe what management is. 2. explain the four functions of management. 3. describe different kinds of managers. 4. explain the major roles and sub-roles that managers perform in their jobs. 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. 8. explain how and why companies can create competitive advantage through people.

8. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 Management Is… Effectiveness Efficiency Getting work done through others 1 1

9. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management Is…  Pat Carrigan - Manager at GM car parts  Efficiency entails minimum waste, effort and expense  Effectiveness is accomplishing tasks that help fulfill organizational objectives  Chrysler 9

10. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling Management Functions 2 2

11. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 Planning 2.1 Planning Determining organizational goals and a means for achieving them

12. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 What Really Works: Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success76% This statistic shows that an employee hired on the basis of a good score on a general mental ability test stands a 76 percent chance of being a better performer than someone picked at random from the pool of all job applicants. Meta-Analysis is a study of studies that shows what works and when.

13. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 Organizing  Deciding where decisions will be made  Who will do what jobs and tasks  Who will work for whom 2.2

14. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Leading Motivating Inspiring LeadingLeading 2.3 For Anne, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.

15. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed

16. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards

17. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Effective Managers  Effective managers plan, Organize, Lead and Control better  Probability of promotion at AT&T 17

18. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Old versus New Management Styles  Manager as boss versus managers as sponsors/team leaders / internal consultants  Reporting relationships versus managers open to anyone anywhere in hierarchy  Individual decisions versus participative decision making  Long hours versus results  Keeping proprietary company information secret versus sharing with others 18

19. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Making things Happen  Planning  Decision making  Managing information  Controlling William End CEO of Land’s End (a succesful retailer) introduced latest management techniques such as performance appraisals based on peer reviews; production teams, training courses, effective communication. Lost or undelivered orders were result. Why? 19

20. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Meeting the competition  Global Management Free trade agreements, falling entry barriers, shorter product life cycles  Organizational Strategy  Innovation and Change  Designing adaptive organizations IBM once market leader lost its share from 80 to 8% because of stiff competition from COMPAQ Dell etc in 1980’s. 20

21. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Organizing people, projects and processes  Managing individual and diverse workforce  Managing Teams  Managing Human Resource Systems  Managing service and Manufacturing Operations When FORD purchased Jaguar….  Leading  Motivation  Leadership  Managing communication Herb Kelleher Founder SouthWest Airlines: Jokester and storyteller 21

22. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22 Kinds of Managers  Top Managers  Middle Managers  First-Line Managers  Team Leaders 3 3

23. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23 Top Managers 3 3.1  Chief Executive Officer (CEO)  Chief Operating Officer (COO)  Chief Financial Officer (CFO)  Chief Information Officer (CIO)

24. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24 Responsibilities of Top Managers Creating a context for change (Vision) - CEO of GM and Kodak Creating a context for change (Vision) - CEO of GM and Kodak Developing commitment and ownership in employees - Herb Kelleher at 4 Developing commitment and ownership in employees - Herb Kelleher at 4 Creating a positive organizational culture through language and action -Memo writing -David Glass and stories of Thriftiness of Sam Walton Creating a positive organizational culture through language and action -Memo writing -David Glass and stories of Thriftiness of Sam Walton Monitoring their business environments - David Glass and KMart Monitoring their business environments - David Glass and KMart 3.1

25. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25 Middle Managers 3 3.2  Plant Manager  Regional Manager  Divisional Manager

26. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26 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 Andy Wilson Regional Vice President of Walmart visits Stores to see product placement, replacement of products, keeps a check on prices Andy Wilson Regional Vice President of Walmart visits Stores to see product placement, replacement of products, keeps a check on prices

27. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27 First-Line Managers 3 3.3  Office Manager  Shift Supervisor  Department Manager

28. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28 Responsibilities of First-Line Managers 3.3 Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Managers tracking phone calls of telemarketing reps Encourage, monitor, and reward the performance of workers Managers tracking phone calls of telemarketing reps Teach entry-level employees how to do their jobs Make detailed schedules and operating plans

29. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29 Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships 3.4 Manage external relations

30. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30 Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.4 4 4 InterpersonalInformationalDecisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

31. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31 Managerial Roles Figurehead Leader Liaison Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units 4.1 Interpersonal Roles

32. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32 Managerial Roles 4.2 Monitor Disseminator Spokesperson 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 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

33. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 33 Entrepreneur Disturbance Handler Resource Allocator Negotiator 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 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

34. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 34 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Conceptual Skills Motivation to Manage 5 5

35. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Skill Composition  Technical skills : the ability to apply the specialized procedures, techniques and knowledge required to get the job done  Human skills: the ability to work well with others  Conceptual skills: the ability to see the organization as a whole; how the different parts affect each other; how well company is working in relation to environment  Motivation to manage: an assessment of how enthusiastic employees are about managing work of others 35

36. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 36 What Companies Look for in Managers 5 5 Skills are more or less important at different levels of management:

37. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 37 Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 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 6 6

38. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 38 The First Year Management Transition  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 be problem-solver and troubleshooter  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  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 Adapted from Exhibit 1.7 7 7

39. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 39 Management Practices in Top Performing Companies Competitive Advantage through People Adapted from Exhibit 1.8 1. Employment Security 2. Selective Hiring 3. Promotion from within 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information 8 8 8. Participation and Empowerment