Managing Chapter One McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives LO 1 LO 1 Summarize the major challenges of managing in the new competitive landscape LO 2 LO 2 Describe the sources of competitive advantage for a company LO 3 LO 3 Explain how the functions of management are evolving in today’s business environment LO 4 LO 4 Compare how the nature of management varies at different organizational levels LO 5 LO 5 Define the skills you need to be an effective manager LO 6 LO 6 Identify the principles that will help you manage your career 1-2

Where are the Managers?  All types of organizations An organization is a social entity that is goal directed and deliberately structured. – What is a goal? – What does deliberately structured mean? 1-3

What is management?  Management  The process of working with people and resources to accomplish organizational goals  Efficient, effective 1-4

So, what is management?  The process of working with people and resources to accomplish organizational goals  Efficient, effective  Mary Parker Follet said management is “the art of getting things done through people”. What did she mean? 1-5

So, what is management?  The process of working with people and resources to accomplish organizational goals  Efficient, effective  What are resources? People, money, knowledge & information, technology, physical resources, ……..what else? 1-6

So, what is management?  The process of working with people and resources to accomplish organizational goals  Efficient, effective  Page 13: “The best managers maintain a clear focus on both effectiveness and efficiency”. What does this mean?  See page 12, left column, and read about Mark Hurd at Hewlett-Packard. What are efficiency and effectiveness? 1-7

So, what is management?  The process of working with people and resources to accomplish organizational goals  Efficient, effective  And you must provide management in a highly competitive landscape. 1-8

Management happens in a highly competitive, dynamic landscape GlobalizationTechnology Knowledge management CollaborationInnovation Continuous Improvement of Quality Speed Cost Competitiveness Changes occur rapidly. Organizations and managers must keep up to survive – and must stay in front to thrive. 9

Globalization  Today’s enterprises are global, with offices and production facilities in countries all over the world  Means that a company’s talent can come from anywhere  Internet makes globalization inevitable 1-10

Technological Change: The Internet  Marketplace  Means for manufacturing goods and services  Distribution channel  An information service 1-11

Technological Change: The Internet  Drives down costs and speeds up globalization  Improves efficiency of decision making.  Facilitates design of new products, from pharmaceuticals to financial services 1-12

Knowledge Management  Knowledge management  Practices aimed at discovering and harnessing an organization’s intellectual resources  Knowledge workers 1-13

Collaboration across “Boundaries”  Requires productive communications among different departments, divisions, or other subunits of the organization 1-14

Collaboration across “Boundaries”  Companies today must motivate and capitalize on the ideas of people outside the organization e.g. its consultants, ad agencies, and suppliers 1-15

Managing for Competitive Advantage 1-16 InnovationQuality ServiceSpeed Cost Competitiveness

Question ___________ is the fast and timely execution, response, and delivery of results. A. Innovation B. Quality C. Speed D. Service 1-17

Managing for Competitive Advantage  Innovation  the introduction of new goods and services  often the most important innovation is not the product itself, but how it is delivered 1-18

Managing for Competitive Advantage  Quality  The excellence of your product (goods or services)  Historically, quality referred to attractiveness, lack of defects, reliability, and long-term dependability 1-19

Managing for Competitive Advantage  Today quality is about preventing defects and having continuous improvement in how the firm operates 1-20

Managing for Competitive Advantage  Service  The speed and dependability with which an organization delivers what customers want 1-21

Managing for Competitive Advantage  Speed  Fast and timely execution, response, and delivery of results. 1-22

Managing for Competitive Advantage  Cost competitiveness  Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers. 1-23

The Functions of Management  Management  The process of working with people and resources to accomplish organizational goals  Efficient, effective  So how does a manager do this? 4 functions of management. 1-24

Question ____________ is monitoring performance and making needed changes. A. Planning B. Organizing C. Leading D. Controlling 1-25

The Functions of Management  Planning  systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue  analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage 1-26

The Functions of Management  Organizing  assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals  specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, 1-27

The Functions of Management  Leading  stimulating people to be high performers  Controlling  monitoring performance and making needed changes. 1-28

The Functions of Management 1-29

Performing All Four Management Functions  A typical day for a manager is not neatly divided into the four functions  Days are busy and fractionated, and spent dealing with interruptions, meetings, and firefighting  Finish the sentence: A manager’s job is………

Performing All Four Management Functions  Good managers don’t neglect any of the four management functions 1-31

Management Levels and Skills 1-32 Top Level Managers Middle-Level Managers Frontline Managers

Management Levels and Skills  Top-level managers  Senior executives responsible for the overall management and effectiveness of the organization.  Middle-level managers  Managers located in the middle layers of the organizational hierarchy, reporting to top-level executives. 1-33

Management Levels and Skills  Frontline managers  Lower-level managers who supervise the operational activities of the organization 1-34

Transformation of Management Roles and Activities 1-35 Table 1.1

Managerial Roles: What Managers Do 1-36

Question Which management skill is the ability to lead, motivate, and communicate effectively with others? A.Technical B.Conceptual C.Decision D.Interpersonal 1-37

Management Skills  Technical skill  The ability to perform a specialized task involving a particular method or process 1-38

Management Skills  Conceptual and decision skills  Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members. 1-39

Management Skills  Interpersonal and communication skills  People skills; the ability to lead, motivate, and communicate effectively with others. 1-40

You and Your Career  Emotional intelligence  The skills of understanding yourself, managing yourself, and dealing effectively with others.  Social capital  Goodwill stemming from your social relationships 1-41

You and Your Career 1-42 Be both a specialist and a generalist Be self-reliantBe connected Actively manage your relationship with your organization Survive and thrive

Keys to Career Management 1-43

Two Relationships: Which Will You Choose? 1-44 Figure 1.1

Managerial Action Is Your Opportunity to Contribute 1-45 Figure 1.2

Résumé for the 21st Century 1-46 Figure 1.3

Managers must change & adapt  Watch “Ben & Jerry’s Ice Cream” video clip on the course website.  What is Ben & Jerry’s world-wide marketplace presence? How does this relate to the need to change and adapt?  Quality Control – Slicing cartons. How does this relate to the need to change and adapt?  A customer states that what he likes about Ben & Jerry’s is the “Variation…it never gets boring”. How does this relate to the need to change and adapt?  The Flavor Graveyard. How does this relate to the need to change and adapt?  The R & D Test Kitchen. How does this relate to the need to change and adapt?  How many new flavors does Ben & Jerry’s release each year? How does this relate to the need to change and adapt?  Whose job is it to guide the organization through all these changes and adaptations? What happens if the changes are not made? What happens if changes are poorly implemented? Are you ready to change, adapt, and successfully manage? 1-47