1. Managing Chapter 01 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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 1-2

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  Internet makes globalization inevitable 1-3

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

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 1-5

6. Knowledge Management  Knowledge management  Practices aimed at discovering and harnessing an organization’s intellectual resources  Knowledge workers 1-6

7. Collaboration across “Boundaries”  Requires productive communications among different departments, divisions, or other subunits of the organization 1-7

8. 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 1-8

9. Managing for Competitive Advantage InnovationQuality ServiceSpeed Cost Competitiveness 1-9

10. Question ___________ is the fast and timely execution, response, and delivery of results. A.Innovation B.Quality C.Speed D.Service 1-10

11. Managing for Competitive Advantage 1-11  Innovation  the introduction of new goods and services  often the most important innovation is not the product itself, but how it is delivered

12. 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 1-12

13. Managing for Competitive Advantage  Today quality is about preventing defects and having continuous improvement in how the firm operates 1-13

14. Managing for Competitive Advantage  Service  The speed and dependability with which an organization delivers what customers want 1-14

15. Managing for Competitive Advantage  Speed  Fast and timely execution, response, and delivery of results. 1-15

16. Managing for Competitive Advantage  Cost competitiveness  Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers. 1-16

17. The Functions of Management  Management  The process of working with people and resources to accomplish organizational goals  Efficient, effective 1-17

18. Question ____________ is monitoring performance and making needed changes. A.Planning B.Organizing C.Leading D.Controlling 1-18

19. 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 1-19

20. 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, 1-20

21. The Functions of Management  Leading  stimulating people to be high performers  Controlling  monitoring performance and making needed changes. 1-21

22. The Functions of Management 1-22

23. 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 1-23

24. Performing All Four Management Functions  Good managers don’t neglect any of the four management functions 1-24

25. Management Levels and Skills 1-25 Top Level Managers Middle-Level Managers Frontline Managers

26. 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. 1-26

27. Management Levels and Skills  Frontline managers  Lower-level managers who supervise the operational activities of the organization 1-27

28. Transformation of Management Roles and Activities 1-28 Table 1.1

29. Managerial Roles: What Managers Do 1-29 Table 1.2

30. Question Which management skill is the ability to lead, motivate, and communicate effectively with others? A.Technical B.Conceptual C.Decision D.Interpersonal 1-30

31. Management Skills  Technical skill  The ability to perform a specialized task involving a particular method or process 1-31

32. 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. 1-32

33. Management Skills  Interpersonal and communication skills  People skills; the ability to lead, motivate, and communicate effectively with others. 1-33

34. 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 1-34

35. You and Your Career 1-35 Be both a specialist and a generalist Be self-reliantBe connected Actively manage your relationship with your organization Survive and thrive

36. Keys to Career Management 1-36 Table 1.3

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

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

39. Common Practices of Successful Executives  They ask “What needs to be done?” rather than “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. 1-39

40. Destination CEO: Darden Restaurants  What position did Otis hold before being named CEO of Darden Restaurants?  What management skills are you developing in a job or in college that will aid you in your future career? 1-40