Ch. 1 Outline Managing in The New Competitive Landscape Managing for Competitive Advantage The Functions of Management Management Levels and Skills You and Your Career

Learning Objectives The major challenges of managing in the new competitive landscape The drivers of competitive advantage for your company The functions of management and how they are evolving in today’s business environment The nature of management at different organizational levels The skills you need to be an effective manager After finishing this chapter students will understand the following objectives.

Managing in the New Competitive Landscape Four elements that are defining the current business environment Globalization Technological Change--Internet Importance of knowledge and ideas Collaboration across organizational boundaries

Knowledge Management The set of practices aimed at discovering an harnessing an organizations intellectual resources. This involves finding and capitalizing on the expertise, skills, wisdom and relationships of the people within the organization.

Managing for Competitive Advantage Good managers know that they are in a competitive struggle to survive and win To survive and win you must gain an advantage over your competitors The key to long-term success is the competitive advantage held by the company

A Competitive Advantage Our text—being better than your competitors at doing valuable things for your customers Other texts: Advantage over competitors gained by offering greater value, either through lower prices or by providing higher quality to justify higher prices What sets an organization apart from its competitors in the minds of its consumers. The competitive advantage comes from the organizations core competencies.

Managing for Competitive Advantage Sources of competitive advantage Innovation Quality Speed Cost

Example of CA Based on Innovation (on-line radio station) When they wanted to give advertisers a way to reach young, tech-savvy Hispanics, Batanga.com started a new magazine - Batanga Latin Music. But the magazine soon caught on, and Batanga was soon getting requests for subscriptions and to carry the magazine on newsstands. In 2004, the magazine brought the company $250,000 in revenue, and it should grow 30% in the next few years.[1] [1] Monahan New products come from all kinds of sources. For example, Batanga.com, Inc. is a North Carolina internet, J. “All systems grow.” Entrepreneur, March, 2005, pp. 79-82.

The Functions of Management Management is the process of working with people and resources to accomplish organizational goals Good managers are both effective and efficient in this process Efficient means goals are achieved with minimal resources wasted Effective means that the organizational goals are achieved

The Functions of Management What do managers do? Plan Organize Lead Control While fresh thinking and new approaches are required now more than ever, much of what has already been learned about successful management practices remains relevant, useful, and adaptable, with fresh thinking, to the 21st-century business environment. To use an analogy: Engineering practices evolve continually, but the laws of physics are relatively constant.75 In the business world today, the great executives not only adapt to changing conditions but also apply—fanatically, rigorously, consistently, and with discipline—the fundamental management principles.

The Functions of Management Planning: Delivering Strategic Value Systematically making decisions about the goals and activities that an individual, group, work unit, or organization will pursue in the future Organizing: Building a Dynamic Organization Assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals

The Functions of Management Leading: Mobilizing People Stimulating people to be high performers; includes motivating and communicating with employees, individually and in groups Controlling: Learning and Changing Monitoring performance and making needed changes

The Management Pyramid Top Managers Middle Managers The organizing function will be discussed in detail in Chapter 7. In this chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--commonly known as the management pyramid. In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers. First-line Managers

The Management Pyramid First-line Managers Middle Top President, CEO, VP Make long-range plans Establish policies Represent the company In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers.

The Management Pyramid First-line Managers Middle Top Controller, Marketing Manager, Sales Manager Implement goals Make decisions Direct first-line managers Middle managers have similar responsibilities, but usually for just one division or unit. They develop plans for implementing the broad goals set by top managers, and they coordinate the work of first-line managers. In traditional organizations, managers at the middle level are plant managers, division managers, branch managers, and other similar positions. But in more innovative management structures, middle managers often function as team leaders who are expected to supervise and lead small groups of employees in a variety of job functions. Similar to consultants, they must understand every department’s function, not just their own area of expertise. Furthermore, they are granted decision-making authority previously reserved for only high-ranking executives.

The Management Pyramid First-line Managers Middle Top Office Manager, Supervisor, Foreman, Department Head Implement plans Oversee workers Assist middle managers At the bottom of the management pyramid are first-line managers (or supervisory managers). They oversee the work of operating employees, and they put into action the plans developed at higher levels. Positions at this level include supervisor, department head, and office manager.

Management Levels and Skills Three levels of management Top-Level: these managers are responsible for the overall management and effectiveness of the organization Middle-Level: these managers are located in the middle layers of the organizational hierarchy and report to top-level executives Frontline: lower-level managers who supervise the operational activities of the organization

Management Roles Interpersonal Roles – involve people and duties that are ceremonial and symbolic in nature Informational Roles – receiving, collecting, and dissemination information Decisional Roles – revolve around making choices Note: the emphasis a specific manager gives to the various roles changes with their level of management.

Managerial Skills Technical Skill: Ability to perform a specialized task involving a particular method or process Conceptual and decisional skill: Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members Interpersonal and Communication Skills: People skills; the ability to lead, motivate, and communicate effectively with others