1. Chapter 1 Management Dr. Ellen A. Drost

2. Objectives Numi Tea video What is Management What do managers do?
What kinds of managers are there?
What roles do managers play?
What does it take to be a manager?
Why does management matter?
Numi Tea video 3

3. What is Management Management Is…
Effectiveness
Efficiency
Getting work done through others
Management is getting work done through others.
Managers have to be concerned with efficiency and effectiveness in the workplace. Efficiency is getting work done with a minimum of effort, expense, or waste. Effectiveness is accomplishing tasks that help full organizational objectives, such as customer service and satisfaction. 1

4. Management Functions Planning Organizing Leading Controlling 2
Functions of management include planning, organizing, leading, and controlling.
Planning is determining organizational goals and a means for achieving them. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. Leading is inspiring and motivating workers to work hard to achieve organizational goals. Controlling is monitoring progress toward goal achievement and taking corrective action when progress isn’t being made.
The textbook is organized based on the four management functions, as shown on this slide. 2

5. Planning
Planning
Determining organizational goals and a means for achieving them
2.1

6. Organizing Deciding where decisions will be made
Who will do what jobs and tasks
Who will work for whom
2.2

7. Leading Inspiring Leading Motivating For Anne Mulcahy, CEO of Xerox,
the key to successful leadership is
communicating with the company’s
most important constituents:
employees and customers.
Leading involves inspiring and motivating workers to work hard to achieve organizational goals.

8. Controlling Controlling
Monitoring progress toward goal achievement and taking corrective action when needed
2.4

9. Set standards to achieve goals
The Control Process
Set standards to achieve goals
Make changes to return performance to standards
Compare actual performance to standards

10. What Do Managers Do? Kinds of Managers
Top Managers
Middle Managers
First-Line Managers
Team Leaders
There are four kinds of managers, each with different jobs and responsibilities. A discussion of managers follows on the following slides.
The jobs and responsibilities of the four kinds of managers are summarized in Exhibit 1.1. 3

11. Top Managers Chief Executive Officer (CEO)
Chief Operating Officer (COO)
Chief Financial Officer (CFO)
Chief Information Officer (CIO)
3.1 3

12. Responsibilities of Top Managers
Creating a context for change
Developing commitment and ownership in employees
Creating a positive organizational culture through language and action
Monitoring their business environments
Top managers hold positions like the CEO, the COO, the CFO, and the CIO and are responsible for the overall direction of the organization.
3.1

13. Middle Managers Plant Manager Regional Manager Divisional Manager 3.2

14. Responsibilities of Middle Managers
Coordinate and link groups, departments, and divisions
Monitor and manage the performance of subunits and managers who report to them
Implement changes or strategies generated by top managers
Plan and allocate resources to meet objectives
Middle managers hold positions like plant manager, regional manager, or divisional manager.
Note how middle managers’ responsibilities are influenced by those of top managers.
Note also how their responsibilities are more narrowly focused than of top managers.
3.2

15. First-Line Managers Office Manager Shift Supervisor Department Manager
First-line managers are the only managers who don’t supervise other managers.
3.3 3

16. Responsibilities of First-Line Managers
Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers
Teach entry-level employees how to do their jobs
Make detailed schedules and operating plans
First-line managers hold positions like office manager, shift supervisor, or department manager.
First-line managers are the only managers who don’t supervise other managers. They are closest to employees and have daily contact with employees.
3.3

17. Responsibilities of Team Leaders
Facilitate team performance
Manage external relations
Facilitate internal team relationships
This is a relatively new kind of management job that developed as companies shifted to self-managing teams, which, by definition, have no formal supervisor.
Instead of directing individuals’ work, team leaders facilitate team activities toward goal accomplishment. They have less formal authority, so they lead more through relationships and respect.
3.4

18. Mintzberg’s Managerial Roles
Interpersonal Informational Decisional
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator 4
H. Mintzberg, The Nature of Managerial Work. (New York: Harper & Row, 1973).

19. Managerial Roles Interpersonal Roles Figurehead Leader Liaison
Managers perform ceremonial duties
Managers motivate and encourage workers to accomplish objectives
Managers deal with people outside their units
Interpersonal Roles–interacting with others
figurehead role: managers perform ceremonial duties
leader role: managers motivate and encourage workers to accomplish organizational objectives
liaison role: managers deal with people outside their units
4.1

20. Managerial Roles Informational Roles
Monitor
Disseminator
Spokesperson
Managers scan their environment for information
Managers share information with others in their company
Managers share information with others outside their departments or companies
Informational Roles–obtaining and sharing information
monitor role: managers scan their environment for information, actively contact others for information
disseminator role: managers share the information they have collected with their subordinates and others in the company
4.2

21. Managerial Roles Decisional Roles Managers adapt to incremental change
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Managers adapt to incremental change
Managers respond to problems that demand immediate action
Managers decide who gets what resources
Managers negotiate schedules, projects, goals, outcomes, resources, and raises
Decisional Roles–making good decisions
entrepreneur role: managers adapt themselves, their subordinates, and their units to incremental change
disturbance handler role: managers respond to pressures and problems so severe that they demand immediate attention and action
resource allocator role: managers decide who will get what resources and how many resources they get
negotiator role: managers negotiate schedules, projects, goals, outcomes, resources, and employee raises
4.3

22. What Does It Take to Be a Manager? What Companies Look for in Managers
Technical Skills
Human Skills
Conceptual Skills
Motivation to
Manage
Technical skills are the ability to apply the specialized procedures, techniques, and knowledge required to get the job done.
Technical skills are most important for lower level managers, because these managers supervise the workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical skills become less important as managers rise through the managerial ranks, but they are still important.
Human skills, the ability to work well with others, are equally important at all levels of management, from first-line supervisors to CEOs. However, because lower level managers spend much of their time solving technical problems, upper level managers may actually spend more time dealing directly with people.
Conceptual skills are the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Conceptual skill increases in importance as managers rise through the management hierarchy.
Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels.
Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage. 5

23. Management Skills
Skills are more or less important at different levels of management:
Technical skills are the ability to apply the specialized procedures, techniques, and knowledge required to get the job done.
Technical skills are most important for lower level managers, because these managers supervise the workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical skills become less important as managers rise through the managerial ranks, but they are still important.
Human skills, the ability to work well with others, are equally important at all levels of management, from first-line supervisors to CEOs. However, because lower level managers spend much of their time solving technical problems, upper level managers may actually spend more time dealing directly with people.
Conceptual skills are the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Conceptual skill increases in importance as managers rise through the management hierarchy.
Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels.
Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage.

24. Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor
These mistakes make the difference between “arrivers”—managers who made it all the way to the top of their companies-- and “derailers”—managers who were successful early in their careers but were knocked off the fast track at the middle to upper management levels. Both groups were very similar and had enjoyed past success. The biggest difference between the two were how they managed people. Arrivers were much more effective in their interpersonal skills than were derailers.
Derailers were insensitive to others by
an abrasive, intimidating, and bullying management style
Being cold, aloof, or arrogant
Lacking concern for others
Being overly political
Use this fact to reinforce the importance of being able to manage people rather than just processes, when it comes to management effectiveness. 6
Adapted from McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983.

25. Transition to Management (The First Year)
Be the boss
Formal authority
Manage tasks
Job is not managing people
Initial expectations
were wrong
Fast pace
Heavy workload
Job is to be problem-solver and troubleshooter
No longer “doer”
Communication, listening, positive reinforcement
Learning to adapt and control stress
Job is people development
Managers’ Initial Expectations
After Six Months As a Manager
After a Year As a Manager
In the book Becoming a Manager: Master of a New Identity, Harvard Business School professor Linda Hill followed the development of 19 people in their first year as managers. Becoming a manager produced a profound psychological transition that changed the way these managers viewed themselves and others.
Exhibit 1.4 describes the transition to management. 7

26. Why Management Matters? Competitive Advantage through People
Management Practices in Top Performing Companies
1. Employment Security
2. Selective Hiring
3. Self-Managed Teams and Decentralization
4. High Wages Contingent on Org. Performance
5. Training and Skill Development
6. Reduction of Status Differences
7. Sharing Information
In a study by Stanford University professor Jeffrey Pfeffer, companies who used the management practices listed on this slide achieved financial performance that, on average, was 40 percent higher than that of other companies. 8

27. Management Workplace Numi Organic Tea
Who is Danielle Oviedo at Numi Organic Tea? What was her task at Numi?
What is management, according to Danielle.
How does Numi see efficiency and effectiveness
List the type of managers referenced in video.
What is Danielle’s job as the distribution manager at Numi?
From watching the video, what is the role of a manager?
According to other managers, what made Danielle Oviedo a successful manager at Numi? 3