MGT 371 Chapter 1

Chapter 1
Management

MGMT3
Designed & Prepared by
Chuck Williams B-books, Ltd.

1
Copyright ©2011 by Cengage Learning. All rights reserved

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.

2

Management
Functions

Planning

Organizing

Leading

Controlling

2
3
Copyright ©2011 Cengage Learning. All rights reserved

Planning

Planning

Determining organizational goals and a
means for achieving them.

2.1
4

Organizing
• Deciding where
decisions will be
made

• Deciding who will do
what jobs and tasks

• Deciding who will
work for whom

2.2
5

Leading
Inspiring
Leading
Motivating

For Anne Mulcahy, former CEO of
Xerox, the key to successful
leadership is communicating with
the company’s most important
constituents: employees and
customers.
2.3
6

Controlling

Controlling

Monitoring progress toward goal
achievement and taking corrective action
when needed

2.4
7

The Control Process
Set standards to
achieve goals

Make changes Compare actual
to return performance to
performance to standards
standards
2.4
8

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.

9

Kinds of Managers

• Top Managers

• Middle Managers

• First-Line Managers

• Team Leaders

3
10

Top Managers
• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)

3.1
3
11

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
12

Top Managers in
Beyond the Book

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.

13

Middle Managers
• Plant Manager

• Regional Manager

• Divisional Manager

3.2
3
14

Responsibilities of Middle
Managers
Plan and allocate resources to meet objectives

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
3.2
15

Middle Managers in
Beyond the Book

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.

16

First-Line Managers
• Office Manager

• Shift Supervisor

• Department Manager

3.3
3
17

Responsibilities of First-Line
Managers
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
3.3
18

Responsibilities of Team
Leaders
Facilitate team performance

Facilitate internal team relationships

Manage external relations

3.4
19

Mintzberg’s Managerial Roles

Interpersonal Informational Decisional
Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance
Handler
Liaison Spokesperson
Resource
Allocator

Negotiator
4
H. Mintzberg, “The Manager’s Job: Folklore and Fact,” Harvard Business Review (July-August 1975). 20

Managerial Roles
Interpersonal Roles

Figurehead Managers perform ceremonial duties

Leader Managers motivate and encourage
workers to accomplish objectives

Liaison Managers deal with people outside
their units

4.1
21

Managerial Roles
Informational Roles

Managers scan their environment
Monitor
for information

Managers share information
Disseminator
with others in their company

Managers share information
Spokesperson
with others outside their
4.2 departments or companies
22

Managerial Roles
Decisional Roles

Managers adapt to incremental change
Entrepreneur
Managers respond to problems that
Disturbance demand immediate action
Handler
Managers decide who gets
Resource what resources
Allocator
Managers negotiate schedules,
Negotiator projects, goals, outcomes, resources,
and raises
4.3
23

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.

24

What Companies Look for
in Managers

Technical Skills Human Skills

Conceptual Skills Motivation to Manage

5
25

Management Skills
Skills are more or less important at different
levels of management:

5
26

Mistakes Managers Make
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
© Don Farrall/Photodisc/Getty Images

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

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

27

Transition to Management
(The First Year)
Managers’ After Six Months After a Year
Initial Expectations As a Manager As a Manager

 Be the boss  Initial expecta-  No longer “doer”
tions were wrong
 Formal authority  Communication,
 Fast pace listening, positive
 Manage tasks reinforcement
 Heavy workload
 Job is not  Learning to adapt
managing people  Job is to be
problem-solver and control stress
and troubleshooter  Job is people
development

7
28

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).

29

Why Management Matters

After reading this section,

8. explain how and why companies can create
competitive advantage through people.

30

Competitive Advantage
through People
Management Practices in Top Performing Companies

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

8
31

Competitive Advantage
through People
Competitive Advantages of
Well-Managed Companies

Sales revenues

Profits

Customer satisfaction

Stock market returns
8
32

MGT 371 Chapter 1

Recommended

Recommended

More Related Content

What's hot

What's hot (9)

Viewers also liked

Viewers also liked (14)

Similar to MGT 371 Chapter 1

Similar to MGT 371 Chapter 1 (20)

Recently uploaded

Recently uploaded (20)

MGT 371 Chapter 1