1. PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 1 Introduction

2. 2 ©2005 Prentice Hall Learning Objectives Answer the question: What is management? Explain why management must be understood within the context of organizations and how organizations affect the practice of management. After studying this chapter, you should be able to:

3. 3 ©2005 Prentice Hall Learning Objectives Describe the role of working with and through people in effective management. Explain managerial paradoxes and how dealing with them lies at the core of management. Specify the nature and extent of commitment required for managerial excellence. After studying this chapter, you should be able to:

4. 4 ©2005 Prentice Hall Learning Objectives Define the term “entrepreneurial mindset” and explain its importance for managers. Describe and compare the different elements of managerial work and the different managerial roles. Discuss the skills necessary to be an effective manager. After studying this chapter, you should be able to:

5. 5 ©2005 Prentice Hall Managing Effectively: Three Critical Challenges GLOBALISM TECHNOLOGY CHANGE Management Challenges for the 21 st Century Adapted from Exhibit 1-1: Critical Management Challenges for the 21 st Century

6. 6 ©2005 Prentice Hall Managing Strategically to Meet the Challenges Importance of knowledge and intellectual capital Change requires managers to Manage within an organizational context Accomplish tasks with and through people Manage paradoxes Make a substantial commitment and manage in an entrepreneurial manner

7. 7 ©2005 Prentice Hall What is Management? It is a process A series of activities and operations, such as planning, deciding, and evaluating Of assembling and using sets of resources Human, financial, material and information In a goal ‑ directed manner to accomplish tasks A purposeful activity In an organizational setting It is undertaken in organizations By people with different functions intentionally structured and coordinated to achieve common purposes

8. 8 ©2005 Prentice Hall Management Perspective 1: The Organizational Context Management occurs in organizations, not in isolation There are many different types of organizations Each organization has its own characteristics that influence effective management Effective managers must understand organizations

9. 9 ©2005 Prentice Hall Management Perspective 2: The Human Factor Effective managers must be adept at Assessing other people’s capabilities Matching people’s capabilities with appropriate responsibilities Motivating people

10. 10 ©2005 Prentice Hall Management Perspective 3: Managing Paradoxes Management requires simultaneously mastering multiple and potentially conflicting situations Integration and fragmentation Consistency & Flexibility Reflection & Action Global Perspective and Local Understanding

11. 11 ©2005 Prentice Hall Management Perspective 4: Entrepreneurial Mindset Managers must continuously search for and exploit new opportunities An entrepreneurial mindset requires a commitment to constantly learning new skills and acquiring new knowledge An entrepreneurial mindset also requires a commitment to adding value to other people’s efforts and to society

12. 12 ©2005 Prentice Hall What Managers Do Managerial activities differ by The functions managers serve The roles in which managers operate The dimensions of each manager’s job

13. 13 ©2005 Prentice Hall Managerial Functions Planning Organizing Directing Controlling Managing Adapted from Exhibit 1.2: Managerial Functions

14. 14 ©2005 Prentice Hall Planning Planning involves Estimating future conditions and circumstances Making decisions based on these estimations about what work is to be done By the manager By all of those for whom she or he is responsible

15. 15 ©2005 Prentice Hall Organizing Organizing involves paying attention to The structure of relationships among positions The people occupying those positions Linking that structure to the overall strategic direction of the organization

16. 16 ©2005 Prentice Hall Directing (Leading) Directing is the process of influencing other people to attain organizational objectives Motivating others Interacting effectively in group and team situations Communicating in support of others’ efforts on behalf of achieving their work and organizational goals

17. 17 ©2005 Prentice Hall Controlling Regulating the work of those for whom a manager is responsible which may include Setting standards of performance in advance Monitoring ongoing (real ‑ time) performance Assessing a completed performance Results of the control process (evaluation) are fed back into the planning process

18. 18 ©2005 Prentice Hall Managerial Roles Adapted from Exhibit 1.3: Types of Managerial Roles Interpersonal Roles Figurehead Leader Liaison Informational Roles Monitor Disseminator Spokesperson Decisional Roles Entrepreneurial Disturbance Handler Resource Allocator Negotiator

19. 19 ©2005 Prentice Hall Managerial Job Dimensions Activities or duties that must be carried out Standards or levels of minimum performance that must be met. Demands

20. 20 ©2005 Prentice Hall Managerial Job Dimensions Factors that limit the response of the manager Time Budgets Technology Attitudes of subordinates Legal regulations DemandsConstraints

21. 21 ©2005 Prentice Hall Managerial Job Dimensions Discretionary behavior How work is to be done How much work is to be done Who will do the work What initiatives will be undertaken from almost infinite possibilities DemandsConstraintsChoices

22. 22 ©2005 Prentice Hall Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Demands Develop new product with strong market appeal Hold formal weekly progress meeting with boss Frequent travel to other company sites Maintain attractive appearance of restaurant Keep employee costs as low as possible Meet standards for speed of service Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices Two Managerial Jobs

23. 23 ©2005 Prentice Hall Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Constraints 12 month deadline for product development Project budget limit of $1 million No choice in selecting team members Most employees have limited formal education Few monetary incentives to reward outstanding performance Federal and state health and safety regulations Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices Two Managerial Jobs

24. 24 ©2005 Prentice Hall Job A: Project Team Manager Job B: Fast Foods Restaurant Manager Choices The organizational structure of the project team Sequencing of project tasks Budget allocation Selection of employee to promote to supervisor Scheduling of shifts and assignments Local advertising promotions Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices Two Managerial Jobs

25. 25 ©2005 Prentice Hall What Skills Do Managers Need? Interpersonal skills Sensitivity Persuasiveness Empathy Conceptual skills Logical reasoning Judgment Analytical abilities Adapted from Exhibit 1.5: Managers’ Skills Technical skills Specialized knowledge (Including when and how to use the skills)

26. 26 ©2005 Prentice Hall Importance Importance of Managerial Skills at Different Organizational Levels High Low Entry Level Managers Mid-Level Managers Top Level Managers Adapted from Exhibit 1.6: Relative Importance of Managerial Skills at Different Organizational Levels Interpersonal skills Technical skills Conceptual skills

27. 27 ©2005 Prentice Hall Who Succeeds? Who Doesn’t Potential managerial leaders share traits early on: Have survived stressful situations Frequently described as moody or volatile. May be able to keep their temper with superiors during crises but are hostile toward peers and subordinates. Maintain composure in stressful situations, are predictable during crises, are regarded as calm and confident. Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't? Bright, with outstanding track records Have been successful, but generally only in one area or type of job. Have diverse track records, demonstrated ability in many different situations, and a breadth of knowledge of the business or industry.

28. 28 ©2005 Prentice Hall Who Succeeds? Who Doesn’t Potential managerial leaders share traits early on: Ambitious and oriented toward problem solving May attempt to micro- manage a position, ignoring future prospects, may staff with the incorrect people or neglect the talents they have, may depend too much on a single mentor, calling their own decision-making ability into question. While focusing on problem solutions, keep their minds focused on the next position, help develop competent successors, seek advice from many sources. Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't? Have a few flawsCover up problems while trying to fix them. If the prob- lem can’t be hidden, they tend to go on the defensive and even blame someone else for it. Make a few mistakes, but when they do, they admit to them and handle them with poise and grace.

29. 29 ©2005 Prentice Hall Who Succeeds? Who Doesn’t Potential managerial leaders share traits early on: Those who don’t quite make it: Those who succeed: Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't? Good people skillsMay be viewed as charming but political or direct but tactless, cold, and arrogant. People don’t like to work with them Can get along well with different types of people, are outspoken without being offensive, are viewed as direct and diplomatic. Source: Adapted from M. W. McCall, Jr. and M. M. Lombardo, “Off the Track: Why and How Successful Executives Get Derailed,” Technical Report #21 (Greensboro, N.C.: Center for Creative Leadership, 1983), pp. 9-11.