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introduction to management
- 1. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved MANAGEMENTMANAGEMENT Chapter 1 MBH1113MBH1113
- 2. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2 Management Is… EffectivenessEffectiveness EfficiencyEfficiency Getting workGetting work done throughdone through othersothers Getting workGetting work done throughdone through othersothers 11
- 3. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 3 Efficiency and Effectiveness Efficiency Getting work done with a minimum of effort, expense, or waste Doings things right—most output for least input Effectiveness Accomplishing tasks that help fulfill organizational objectives Doing the right things
- 4. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 4 Management Functions Planning Organizing Leading Controlling Planning Organizing Leading Controlling Management Functions 22
- 5. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 5 Planning 2.12.1 Planning Determining organizational goals and a means for achieving them
- 6. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 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.
- 7. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 Organizing Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom 2.22.2
- 8. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 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.
- 9. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 9 Controlling 2.42.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed
- 10. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 The Control Process 2.42.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards
- 11. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 Kinds of Managers Top Managers Middle Managers First-Line Managers Team Leaders 33
- 12. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 Top Managers 3 3.13.1 Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO)
- 13. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 Responsibilities of Top Managers Creating a context for changeCreating a context for change Developing commitment and ownership in employees Developing commitment and 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
- 14. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Middle Managers 3 3.23.2 Plant Manager Regional Manager Divisional Manager
- 15. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 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
- 16. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 First-Line Managers 3 3.33.3 Office Manager Shift Supervisor Department Manager
- 17. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 17 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
- 18. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 18 Responsibilities of Team Leaders Facilitate team performanceFacilitate team performance Facilitate internal team relationshipsFacilitate internal team relationships 3.43.4 Manage external relationsManage external relations
- 19. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 19 Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.4 44 Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator
- 20. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 20 Managerial Roles Figurehead Leader Liaison Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units 4.14.1 Interpersonal Roles
- 21. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 21 Managerial Roles 4.24.2 Monitor Disseminator Spokesperson 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 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
- 22. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22 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 that demand 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 that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Decisional Roles
- 23. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23 What Companies Look for in Managers Technical SkillsTechnical Skills Human SkillsHuman Skills Conceptual SkillsConceptual Skills Motivation to ManageMotivation to Manage 55
- 24. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24 Managers’ Skills Skills Approach Technical skills • Knowledge and proficiency in a specific field Human skills • The ability to work well with other people Conceptual skills • The ability to think and conceptualize about abstract and complex situations concerning the organization
- 25. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25 What Companies Look for in Managers 55 Skills are more or less important at different levels of management:
- 26. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26 Mistakes Managers Make Adapted from Exhibit 1.6 McCall & 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 ambitious4. 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 strategically8. 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 66
- 27. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27 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 be problem-solver and troubleshooter 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 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 Adapted from Exhibit 1.7 77
- 28. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28 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 Performance4. 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 88
- 29. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29 Competitive Advantage through People Competitive Advantages of Well-Managed Companies Competitive Advantages of Well-Managed Companies Sales RevenuesSales Revenues ProfitsProfits Stock Market ReturnsStock Market Returns Customer SatisfactionCustomer Satisfaction 88 http://www.greatplacetowork.com/best/list-bestusa.htm Web Link
- 30. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30 How The Manager’s Job Is Changing The Increasing Importance of Customers Customers: the reason that organizations exist • Managing customer relationships is the responsibility of all managers and employees. • Consistent high quality customer service is essential for survival. Innovation Doing things differently, exploring new territory, and taking risks • Managers should encourage employees to be aware of and act on opportunities for innovation.
Editor's Notes
- 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.
- 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.
- Meta-analysis, which is a study of studies, is helping management scholars understand how well their research supports management theories. Each meta-analysis reported in the "What Really Works?" section of this textbook is accompanied by an easy-to-understand statistic called the probability of success. The probability of success shows how often a management technique will work. Meta-analyses suggest that it’s wise to have job applicants take a general mental ability test. In fact, the probability of success, shown in graphical form on this slide, is 76 percent. This means 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. So, chances are, you’re going to be right much more often than wrong if you use a general mental ability test to make hiring decisions.
- Leading involves inspiring and motivating workers to work hard to achieve organizational goals.
- 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 1.3.
- Top managers hold positions like the CEO, the COO, the CFO, and the CIO and are responsible for the overall direction of the organization.
- 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.
- First-line managers are the only managers who don’t supervise other managers.
- 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.
- 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.
- 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
- 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
- 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
- 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.
- 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.
- Exhibit 1.6 lists the top 10 mistakes managers make. 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.
- 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 1.7 describes the transition to management.
- 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.
- In using examples such as the “100 Best Companies to Work for in America,” you can emphasize how companies can secure a competitive advantage over others by how effectively they manage their people. These practices reflect how managers from companies such as these interact with their employees. Employee satisfaction is often translated into satisfied customers.