Chapter 1 Management Prepared by Deborah Baker Texas Christian University Management 4th Edition Chuck Williams
What Would You Do? <ul><li>Amazon grew so fast that it lost control of the basics </li></ul><ul><li>Sales were growing, but the company was poorly managed </li></ul><ul><li>Amazon has lost over $3 billion since its inception, but is finally earning profits </li></ul>Headquarters, Amazon.com, Seattle, Georgia. How can Amazon do a better job to fix what’s going wrong?
What Is Management? After reading the next two sections, you should be able to: <ul><li>describe what management is. </li></ul><ul><li>explain the four functions of management. </li></ul>
Management Is… 1 Effectiveness Efficiency Getting work done through others
Management Functions Planning Organizing Leading Controlling Management Functions 2
Planning 2.1 Planning Determining organizational goals and a means for achieving them
What Really Works: Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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. probability of success 76%
Organizing <ul><li>Deciding where decisions will be made </li></ul><ul><li>Who will do what jobs and tasks </li></ul><ul><li>Who will work for whom </li></ul>2.2
Leading 2.3 For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers. Motivating Inspiring Leading
Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed
The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards
What Do Managers Do? After reading the next two sections, you should be able to: <ul><li>describe different kinds of managers. </li></ul><ul><li>explain the major roles and subroles that managers perform in their jobs. </li></ul>
Responsibilities of Top Managers 3.1 Creating a context for change Developing commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments
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
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
Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships 3.4 Manage external relations
Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.4 4 Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator
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
Managerial Roles 4.2 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
Managerial Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator 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
What Does It Take to Be a Manager? After reading the next three sections, you should be able to: <ul><li>explain what companies look for in managers. </li></ul><ul><li>discuss the top mistakes that managers make in their jobs. </li></ul><ul><li>describe the transition that employees go through when they are promoted to management. </li></ul>
What Companies Look for in Managers 5 Technical Skills Human Skills Conceptual Skills Motivation to Manage
What Companies Look for in Managers 5 Skills are more or less important at different levels of management:
Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today , Feb 1983 6 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
The First Year Management Transition Adapted from Exhibit 1.7 7 <ul><li>Be the boss </li></ul><ul><li>Formal authority </li></ul><ul><li>Manage tasks </li></ul><ul><li>Job is not managing people </li></ul><ul><li> </li></ul><ul><li>Initial expecta- tions were wrong </li></ul><ul><li>Fast pace </li></ul><ul><li>Heavy workload </li></ul><ul><li>Job is to be problem-solver and troubleshooter </li></ul><ul><li>No longer “doer” </li></ul><ul><li>Communication, listening, positive reinforcement </li></ul><ul><li>Learning to adapt and control stress </li></ul><ul><li>Job is people development </li></ul>Managers’ Initial Expectations After Six Months As a Manager After a Year As a Manager
Why Management Matters After reading this section, you should be able to: <ul><li>explain how and why companies can create competitive advantage through people. </li></ul>
Competitive Advantage through People Management Practices in Top Performing Companies Adapted from Exhibit 1.8 8 1. Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information
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.
Competitive Advantage through People Competitive Advantages of Well-Managed Companies 8 Sales Revenues Profits Stock Market Returns Customer Satisfaction http://www.greatplacetowork.com/best/list-bestusa.htm Web Link
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