Chapter One

Managers and Managing

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

1-2

Learning Objectives

Exams will consist of objective questions (multiple choice) involving knowledge and application of course concepts and short answer questions based on the chapter learning objectives

≈ The people who work in an organization are considered: A. raw materialsB. machineryC. resourcesD. financial capitalE. none of the above

• (LO 1, Knowledge, easy)

4. Distinguish between three kinds of managerial skill, and explain why managers are divided into different departments to perform their tasks more efficiently and effectively.

1-3

What is Management?

Managers ≈The people responsible for supervising the use

of an organization’s resources to meet its goals

1-4

What is Management?

Management ≈The planning, organizing, leading, and

controlling of human and other resources to achieve organizational goals effectively and efficiently

1-5

Figure 1.1

Efficiency and Effectiveness

1-6

Four Functions of Management

Figure 1.2

1-7

Steps in the Planning Process

1. Deciding which goals the organization will pursue

2. Deciding what courses of action to adopt to attain those goals

3. Deciding how to allocate organizational resources

1-8

Organizing

Involves grouping people into departments according to the kinds of job-specific tasks they perform

Managers lay out lines of authority and responsibility

Decide how to coordinate organizational resources

1-9

Organizing

Organizational structure≈A formal system of task and reporting

relationships that coordinates and motivates members so that they work together to achieve organizational goals

1-10

Leading

Leadership involves using power, personality, and influence, persuasion, and communication skills

It revolves around encouraging all employees to perform at a high level

Outcome of leadership is highly motivated and committed workforce

1-11

Controlling

The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness

Managers must decide which goals to measure

1-12

Decisional Roles

Roles associated with methods managers use in planning

strategy and utilizing resources.≈Entrepreneur—deciding which new projects or programs to

initiate and to invest resources in. ≈Disturbance handler—managing an unexpected event or

crisis.≈Resource allocator—assigning resources between

functions and divisions, setting the budgets of lower managers.

≈Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

1-13

Interpersonal Roles

Roles that managers assume to provide direction and

supervision to both employees and the organization as a

whole.≈Figurehead—symbolizing the organization’s mission and

what it is seeking to achieve.≈Leader—training, counseling, and mentoring high employee

performance.≈Liaison—linking and coordinating the activities of people

and groups both inside and outside the organization.

1-14

Informational Roles

Roles associated with the tasks needed to obtain and

transmit information in the process of managing the

organization.≈Monitor—analyzing information from both the internal and

external environment.≈Disseminator—transmitting information to influence the

attitudes and behavior of employees.≈Spokesperson—using information to positively influence the

way people in and out of the organization respond to it.

1-15

Levels of Management

First-line managers ≈responsible for the daily supervision of the

nonmanagerial employees

Middle managers ≈responsible for finding the best way to organize

human and other resources to achieve organizational goals

1-16

Levels of Management

Top managers ≈responsible for the performance of all

departments≈establish organizational goals≈decide how different departments should

interact≈monitor how well middle managers utilize

resources to achieve goals

1-17

Relative Amount of Time That Managers Spend on the Four Managerial Functions

Figure 1.4

1-18

Managerial Skills

Conceptual skills≈The ability to analyze and diagnose a situation and

distinguish between cause and effect.

Human skills≈The ability to understand, alter, lead, and control the

behavior of other individuals and groups.

Technical skills≈Job-specific skills required to perform a particular type

of work or occupation at a high level.

1-19

“Why CEOs Fail”

Bad Execution≈Not getting things done≈Being indecisive≈Not delivering on commitments

Failure to put the right people in the right jobs Failure to fix people problems in time≈Jack Welch (former CEO of GE): “We spend all our

time on people. The day we screw up the people thing, this company is over.”

Source: Fortune, 6/21/99 Note value of business periodicals for lessons learned re:

applications of MNGT principles, longevity of certain lessons

1-20

Core Competency

Core competency≈Specific set of departmental skills, abilities,

knowledge and experience that allows one organization to outperform its competitors

≈Skills for a competitive advantage

1-21

Restructuring

Restructuring≈Involves simplifying, shrinking, or downsizing

an organization’s operations to lower operating costs

Outsourcing ≈Contracting with another company, usually in a

low cost country abroad, to perform a work activity the company previously performed itself

1-22

Empowerment

Empowerment≈ Involves giving employees more authority and

responsibility over the way they perform their work activities

1-23

Building Blocks of Competitive Advantage

Figure 1.6

1-24

Competitive Advantage

“In the long run, the only sustainable source of competitive advantage is your organization’s ability to learn faster than its competition.”

-- Peter Senge, The Fifth Discipline Handbook

Organizations must have managers who are≈ Acquiring information (from sources such as the Wall Street Journal, Business

Week, Fortune, and trade publications [such as Supermarket News]) E.g., “Flu Scare Provides Retail Lessons, Opportunities,” 5/11/09, available via Rice Library

online database LexisNexis Academic.

≈ Digesting implications≈ Sharing w/ colleagues≈ Identifying opportunities/threats (planning)

1-25

My Best Manager

Related to “Building Management Skills: Thinking About Managers and Management,” pp. 32-33

Make a list of the attributes that describe the best manager you ever worked for. (If you have trouble identifying an actual manager, make a list of attributes you would like the manager in your next job to have.)

Form a group (3-4 persons) and share your lists.≈Create one list that combines all the unique attributes

of the ‘best’ managers represented in your group.≈Check those that were reported by two or more

members.