MGT 371 Chapter 1

Copyright ©2011 by Cengage Learning. All rights reserved

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Chapter 1 Management

Designed & Prepared by B-books, Ltd.

MGMT3

Chuck Williams


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What Is Management?

After reading the next two sections,

you should be able to:

1. describe what management is.

2. explain the four functions of management.

Copyright ©2011 Cengage Learning. All rights reserved

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Management Functions

Planning

Organizing

Leading

Controlling

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Planning

2.1

Planning

Determining organizational goals and a

means for achieving them.


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• Deciding where decisions will be made

• Deciding who will do what jobs and tasks

• Deciding who will work for whom

2.2

Organizing


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Leading

Motivating

Inspiring

Leading

2.3

For Anne Mulcahy, former CEO of

Xerox, the key to successful

leadership is communicating with

the company’s most important

constituents: employees and

customers.


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Controlling

2.4

Controlling

Monitoring progress toward goal

achievement and taking corrective action

when needed


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The Control Process

2.4

Set standards to

achieve goals

Compare actual

performance to

standards

Make changes

to return

performance to

standards


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What Do Managers Do?

After reading the next two sections,


3. describe different kinds of managers.

4. explain the major roles and subroles that

managers perform in their jobs.


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Kinds of Managers

• Top Managers

• Middle Managers

• First-Line Managers

• Team Leaders

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Top Managers

3 3.1

• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)


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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

3.1


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Beyond the Book Top Managers in Action • CEO James Griffith has worked hard to position Timken,

the maker of specialty steel industrial parts, to weather

economic hard times.

• Before the recession, Griffith reduced Timken’s

dependence on the Detroit automakers from 40% of

revenue to 20%.

• Timken is branching into industries with high cost of part

failure, like aerospace, windmills, and offshore pipelines.

• Griffith has reduced his workforce by 20% for added

flexibility.

Source: S. Baker, “Timken Plots a Rust Belt Resurgence”, Business Week, 26 October 2009. 58.


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Middle Managers

3 3.2

• Plant Manager

• Regional Manager

• Divisional Manager


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Responsibilities of Middle Managers

3.2

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


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Beyond the Book Middle Managers in Action • Ford’s chief diesel engineer, Adam Gryglak, was charged

with producing a new diesel engine in 36 months.

• Gryglak handpicked his team of engineers from different

areas of the company.

• Gryglak saved time in decision making by having his

team work offsite away from the Ford hierarchy. He also

allowed parts suppliers to work more independently.

•Ford released their new Super Duty pickup on time, with

the new engine, in September 2009.

Source: D. Kiley, “Putting Ford on Fast-Forward”, Business Week, 26 October 2009. 56-57.


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First-Line Managers

3 3.3

• Office Manager

• Shift Supervisor

• Department Manager


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Responsibilities of First-Line Managers

3.3

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


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Responsibilities of Team Leaders

Facilitate team performance

Manage external relations

3.4

Facilitate internal team relationships


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Mintzberg’s Managerial Roles

H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975).

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Interpersonal Informational Decisional

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance

Handler

Resource

Allocator

Negotiator


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Managerial Roles

Figurehead

Leader

Liaison

Managers perform ceremonial duties

Managers motivate and encourage

workers to accomplish objectives

Managers deal with people outside

their units

4.1

Interpersonal Roles


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Managerial Roles

4.2

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


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Entrepreneur

Disturbance

Handler

Resource

Allocator

Negotiator

Managerial Roles

4.3

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


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What Does It Take to Be a Manager?

After reading the next three

sections, you should be able to:

5. explain what companies look for

in managers.

6. discuss the top mistakes that managers

make in their jobs.

7. describe the transition that employees go through

when they are promoted to management.


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What Companies Look for in Managers

Technical Skills

Human Skills

Conceptual Skills

Motivation to Manage

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Management Skills

5

Skills are more or less important at different

levels of management:


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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

Mistakes Managers Make

Adapted from McCall and Lombardo, “What Makes a Top Executive?,” Psychology Today, Feb 1983. 6

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Transition to Management (The First Year)

Be the boss

Formal authority

Manage tasks

Job is not

managing people

Initial expecta-

tions 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

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Beyond the Book

Boss ≠ Bossy

• Carol Smith, CEO Elle Group, tells the following story

about how managers need to win over their employees:

“In sixth grade, I was head of the project to create a

mural for the graduating class to hang in the

auditorium. That’s a big deal. I got a clipboard, I

remember, and then I had all this power and I started

bossing everyone around. And within days it was

apparent that I was going to have a mutiny on my

hands, and I was fired from the mural.”

Source: C. Smith, “Corner Office: No Doubt: Women are Better Managers”, interview by A. Bryant, The New York Times, 25 July 2009.

http://www.nytimes.com/2009/07/26/business/26corner.html (accessed 10/23/2009).

http://www.nytimes.com/2009/07/26/business/26corner.html


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Why Management Matters

After reading this section,


8. explain how and why companies can create

competitive advantage through people.


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Management Practices in Top Performing Companies

Competitive Advantage through People

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

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Competitive Advantage through People Competitive Advantages of Well-Managed Companies

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Sales revenues

Profits

Stock market returns

Customer satisfaction

Stock market returns

MGT 371 Chapter 1

Education

cengage learning

managers middle managers

managers job

objectivesliaison managers

line managers team leaders3

different kinds of managers

team of engineers

performance of subunits