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Chapter 2 Management
MGT 340Chapter 2
White Book
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What Would You Do?
Amazon grew so fast that it lost control of the basics
Sales were growing, but the company was poorly managed
Amazon has lost over $3 billion since its inception, but is finally earning profits
Headquarters, Amazon.com, Seattle, Georgia.
How can Amazon do a better job to fix what’s going wrong?
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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.
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Management Is…
EffectivenessEffectiveness
EfficiencyEfficiencyGetting workGetting workdone throughdone through
othersothers
Getting workGetting workdone throughdone through
othersothers
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Management Functions
Planning
Organizing
Leading
Controlling
Planning
Organizing
Leading
Controlling
Management Functions
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Planning
2.12.1
Planning
Determining organizational goals and a means for achieving them
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What Really Works: Meta-Analysis
General Mental Ability
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 76%
This statistic shows that an employee hired on the basis of a good score on a general mental ability test stands a 76 percent chance of being a better performer than someone picked at random from the pool of all job applicants.
Meta-Analysis is a study of studies that shows what works and when.
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Organizing
Deciding where decisions will be made
Who will do what jobs and tasks
Who will work for whom
2.22.2
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Leading
MotivatingMotivating
InspiringInspiring
LeadingLeadingLeadingLeading
2.32.3
For Anne Mulcahy, 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
2.42.4
Controlling
Monitoring progress toward goal achievement and taking corrective action when needed
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The Control Process
2.42.4
Set standards toachieve goals
Compare actualperformance to
standards
Make changesto return
performance tostandards
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What Do Managers Do?
After reading the next two sections, you should be able to:
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
33.13.1
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 changeCreating a context for change
Developing commitmentand ownership in employees
Developing commitmentand ownership in employees
Creating a positive organizational culture through language and action
Creating a positive organizational culture through language and action
Monitoring their business environmentsMonitoring their business environments
3.13.1
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Middle Managers
33.23.2
Plant Manager
Regional Manager
Divisional Manager
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Responsibilities of Middle Managers
3.23.2
Coordinate and link groups, departments, and divisions
Coordinate and link groups, departments, and divisions
Monitor and manage the performance of subunits and managers who report to them
Monitor and manage the performance of subunits and managers who report to them
Implement changes or strategies generated by top managers
Implement changes or strategies generated by top managers
Plan and allocate resources to meet objectivesPlan and allocate resources to meet objectives
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First-Line Managers
33.33.3
Office Manager
Shift Supervisor
Department Manager
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Responsibilities of First-Line Managers
3.33.3
Manage the performance of entry-level employees
Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers
Encourage, monitor, and reward the performance of workers
Teach entry-level employees how to do their jobsTeach entry-level employees how to do their jobs
Make detailed schedules and operating plansMake detailed schedules and operating plans
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Responsibilities of Team Leaders
Facilitate team performanceFacilitate team performance
Facilitate internal team relationshipsFacilitate internal team relationships
3.43.4
Manage external relations Manage external relations
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Managerial Roles
H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.
Adapted from Exhibit 1.444
Interpersonal Informational DecisionalFigurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
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Biz Flix: 8 Mile
Take Two Video
Click
What is the quality of Jimmy’s relationship with his boss, Manny?
What management roles do you see Manny play in the clip?
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Managerial Roles
Figurehead
Leader
Liaison
Figurehead
Leader
Liaison
Managers perform ceremonial duties
Managers motivate and encourageworkers to accomplish objectives
Managers deal with people outsidetheir units
Managers perform ceremonial duties
Managers motivate and encourageworkers to accomplish objectives
Managers deal with people outsidetheir units
4.14.1
Interpersonal Roles
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Managerial Roles
4.24.2
Monitor
Disseminator
Spokesperson
Monitor
Disseminator
Spokesperson
Managers scan their environmentfor information
Managers share information with others in their company
Managers share informationwith others outside their departments or companies
Managers scan their environmentfor information
Managers share information with others in their company
Managers share informationwith others outside their departments or companies
Informational Roles
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Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Managerial Roles
4.34.3
Managers adapt to incremental change
Managers respond to problems thatdemand immediate action
Managers decide who gets what resources
Managers negotiate schedules, projects, goals, outcomes, resources, and raises
Managers adapt to incremental change
Managers respond to problems thatdemand 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 SkillsTechnical Skills Human SkillsHuman Skills
Conceptual Skills
Conceptual Skills
Motivation to ManageMotivation to Manage
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What Companies Look for in Managers
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Skills are more or less important at different levels of management:
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Mistakes Managers Make
Adapted from Exhibit 1.6McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983
1. Insensitive to others1. Insensitive to others
2. Cold, aloof, arrogant2. Cold, aloof, arrogant
3. Betrayal of trust3. Betrayal of trust
4. Overly ambitious 4. Overly ambitious
5. Specific performance problems with the business5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively7. Unable to staff effectively
8. Unable to think strategically 8. Unable to think strategically
9. Unable to adapt to boss with different style9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor10. Overdependent on advocate or mentor
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The First Year Management Transition
Be the boss
Formal authority
Manage tasks
Job is not managing people
Be the boss
Formal authority
Manage tasks
Job is not managing people
Initial expecta-tions were wrong
Fast pace
Heavy workload
Job is to beproblem-solverand troubleshooter
Initial expecta-tions were wrong
Fast pace
Heavy workload
Job is to beproblem-solverand troubleshooter
No longer “doer”
Communication,listening, positivereinforcement
Learning to adaptand control stress
Job is peopledevelopment
No longer “doer”
Communication,listening, positivereinforcement
Learning to adaptand control stress
Job is peopledevelopment
Managers’Initial Expectations
After Six MonthsAs a Manager
After a YearAs a Manager
Adapted from Exhibit 1.7
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Why Management Matters
After reading this section, you should be able to:
8. explain how and why companies can create competitive advantage through people.
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Management Practices in Top Performing CompaniesManagement Practices in Top Performing Companies
Competitive Advantage through People
Adapted from Exhibit 1.8
1. Employment Security1. Employment Security
2. Selective Hiring2. Selective Hiring
3. Self-Managed Teams and Decentralization3. Self-Managed Teams and Decentralization
4. High Wages Contingent on Organizational Performance 4. High Wages Contingent on Organizational Performance
5. Training and Skill Development5. Training and Skill Development
6. Reduction of Status Differences6. Reduction of Status Differences
7. Sharing Information7. Sharing Information
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Competitive Advantage through People
J.M. Smucker Company has been on Fortune’s list of 100 Best Companies to Work For since the list was started in 1998. Smucker’s has extremely low employee turnover and extremely high employee satisfaction.
Tim and Richard Smucker are pictured here.
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Competitive Advantage through People
Competitive Advantages of Well-Managed Companies
Competitive Advantages of Well-Managed Companies
Sales RevenuesSales Revenues ProfitsProfits
Stock Market Returns
Stock Market Returns
Customer SatisfactionCustomer Satisfaction
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