Managing and Performing Chapter One Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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

1-3 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

1-4 Technological Change: The Internet  Marketplace  Means for manufacturing goods and services  Distribution channel  An information service

1-5 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

1-6 Knowledge Management  Knowledge management  Practices aimed at discovering and harnessing an organization’s intellectual resources

1-7 Knowledge Management  Knowledge workers  Workers whose primary contributions are ideas and problem-solving expertise  Knowledge managers find these human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations.

1-8 Knowledge Management  Knowledge management is about finding, unlocking, sharing, and altogether capitalizing on the most precious resources of an organization: people’s expertise, skills, wisdom, and relationships.

1-9 Collaboration across Boundaries  Requires productive communications among different departments, divisions, or other subunits of the organization

1-10 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  Companies must realize that the need to serve the customer drives everything else

1-11 Managing for Competitive AdvantageInnovationQualityService Speed Cost Competitiveness Sustainability

1-12 Question ___________ is the fast and timely execution, response, and delivery of results. A. Innovation B. Quality C. Speed D. Service

1-13 Managing for Competitive Advantage  Innovation  the introduction of new goods and services  A firm must:  adapt to changes in consumer demands and to new competitors.  be ready with new ways to communicate with customers and deliver the products to them.

1-14 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

1-15 Managing for Competitive Advantage  Today quality is about preventing defects before they occur, achieving zero defects in manufacturing, and designing products for quality

1-16 Managing for Competitive Advantage  Service  giving customers what they want or need, when they want it  focused on continually meeting the needs of customers to establish mutually beneficial long- term relationships.  Speed  Fast and timely execution, response, and delivery of results.

1-17 Managing for Competitive Advantage  Cost competitiveness  Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers.

1-18 Managing for Competitive Advantage  Sustainability  The effort to minimize the use of resources, especially those that are polluting and nonrenewable.

1-19 The Functions of Management  Management  The process of working with people and resources to accomplish organizational goals  Efficiently, effectively

1-20 Question ____________ is monitoring performance and making needed changes. A. Planning B. Organizing C. Leading D. Controlling

1-21 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

1-22 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, and creating conditions so that people and things work together to achieve maximum success

1-23 The Functions of Management  Leading  stimulating people to be high performers  Controlling  monitoring performance and making needed changes.

1-24 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

1-25 Performing All Four Management Functions  Good managers devote adequate attention and resources to all four management functions.

1-26 Management Levels and Skills Top Level Managers Middle-Level Managers Frontline Managers

1-27 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.

1-28 Management Levels and Skills  Frontline managers  Lower-level managers who supervise the operational activities of the organization

1-29 Transformation of Management Roles and Activities Table 1.1

1-30 Managerial Roles: What Managers Do Table 1.2

1-31 Question Which management skill is the ability to lead, motivate, and communicate effectively with others? A. Technical B. Conceptual C. Decision D. Interpersonal

1-32 Management Skills  Technical skill  The ability to perform a specialized task involving a particular method or process

1-33 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.

1-34 Management Skills  Interpersonal and communication skills  People skills; the ability to lead, motivate, and communicate effectively with others.

1-35 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

1-36 You and Your Career Be both a specialist and a generalist Be self-reliant Connect Actively manage your relationship with your organization Survive and thrive

1-37 Two Relationships: Which Will You Choose? Figure 1.1

1-38 Managerial Action Is Your Opportunity to Contribute Figure 1.2

1-39 Common Practices of Successful Executives  They ask “What needs to be done?” not just “What do I want to do?”  They write an action plan. They don’t just think, they do, based on a sound, ethical plan.  They take responsibility for decisions.  They focus on opportunities rather than problems.

1-40 CH2M-Hill  How does CH2M-Hill use knowledge management to operate it’s global business?