Download Hitt/Black/Porter: Management 1st ed.

Chapter 1
Introduction
PowerPoint slides by
R. Dennis Middlemist
Colorado State University
Learning Objectives
After studying this chapter, you should be
able to:
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Answer the question: What is
management?
Explain why management must be
understood within the context of
organizations and how organizations affect
the practice of management.
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Learning Objectives
After studying this chapter, you should be
able to:
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Describe the role of working with and
through people in effective management.
Explain managerial paradoxes and how
dealing with them lies at the core of
management.
Specify the nature and extent of
commitment required for managerial
excellence.
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Learning Objectives
After studying this chapter, you should be
able to:
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Define the term “entrepreneurial mindset”
and explain its importance for managers.
Describe and compare the different
elements of managerial work and the
different managerial roles.
Discuss the skills necessary to be an
effective manager.
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Managing Effectively: Three
Critical Challenges
Management Challenges
for the 21st Century
CHANGE
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Adapted from Exhibit 1-1: Critical Management Challenges for the 21st Century
Managing Strategically to
Meet the Challenges
 Importance of knowledge and intellectual
capital
 Change requires managers to
 Manage within an organizational context
 Accomplish tasks with and through people
 Manage paradoxes
 Make a substantial commitment and
manage in an entrepreneurial manner
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What is Management?
 It is a process
 A series of activities and operations, such as planning,
deciding, and evaluating
 Of assembling and using sets of resources
 Human, financial, material and information
 In a goal-directed manner to accomplish tasks
 A purposeful activity
 In an organizational setting
 It is undertaken in organizations
 By people with different functions intentionally structured
and coordinated to achieve common purposes
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Management Perspective 1:
The Organizational Context
 Management occurs in organizations, not in
isolation
 There are many different types of organizations
 Each organization has its own characteristics
that influence effective management
 Effective managers must understand
organizations
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Management Perspective 2:
The Human Factor
 Effective managers must
be adept at
 Assessing other people’s
capabilities
 Matching people’s
capabilities with
appropriate responsibilities
 Motivating people
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Management Perspective 3:
Managing Paradoxes
 Management requires simultaneously
mastering multiple and potentially conflicting
situations
 Integration and fragmentation
 Consistency & Flexibility
 Reflection & Action
 Global Perspective and
 Local Understanding
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Management Perspective 4:
Entrepreneurial Mindset
 Managers must continuously search for
and exploit new opportunities
 An entrepreneurial mindset requires a
commitment to constantly learning new
skills and acquiring new knowledge
 An entrepreneurial mindset also requires
a commitment to adding value to other
people’s efforts and to society
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What Managers Do
 Managerial activities differ by
 The functions managers serve
 The roles in which managers
operate
 The dimensions of each
manager’s job
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Managerial Functions
Managing
Organizing
Controlling
Planning
Directing
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Adapted from Exhibit 1.2: Managerial Functions
Planning
 Planning involves
 Estimating future conditions and
circumstances
 Making decisions based on these
estimations about what work is to be done
 By
the manager
 By all of those for whom she or he is responsible
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Organizing
 Organizing involves paying attention to
 The structure of relationships among
positions
 The people occupying those positions
 Linking that structure to the overall strategic
direction of the organization
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Directing (Leading)
 Directing is the process of influencing
other people to attain organizational
objectives
 Motivating others
 Interacting effectively in group and team
situations
 Communicating in support of others’ efforts
on behalf of achieving their work and
organizational goals
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Controlling
 Regulating the work of those for whom a
manager is responsible which may include
 Setting standards of performance in advance
 Monitoring ongoing (real-time) performance
 Assessing a completed performance
 Results of the control process (evaluation)
are fed back into the planning process
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Managerial Roles
 Interpersonal Roles
 Figurehead
 Leader
 Liaison
 Informational Roles
 Monitor
 Disseminator
 Spokesperson
 Decisional Roles
 Entrepreneurial
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Disturbance Handler
Resource Allocator
Negotiator
Adapted from Exhibit 1.3: Types of Managerial Roles
Managerial Job Dimensions
Demands
 Activities or duties that
must be carried out
 Standards or levels of
minimum performance
that must be met.
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Managerial Job Dimensions
Demands
Constraints
 Factors that limit the
response of the
manager
 Time
 Budgets
 Technology
 Attitudes of subordinates
 Legal regulations
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Managerial Job Dimensions
Demands
 Discretionary behavior
 How work is to be done
Constraints
Choices
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 How much work is to be
done
 Who will do the work
 What initiatives will be
undertaken from almost
infinite possibilities
Two Managerial Jobs
Demands
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Job A: Project
Team Manager
Job B: Fast Foods
Restaurant Manager
 Develop new product
 Maintain attractive
with strong market
appeal
 Hold formal weekly
progress meeting with
boss
 Frequent travel to
other company sites
appearance of
restaurant
 Keep employee costs
as low as possible
 Meet standards for
speed of service
Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices
Two Managerial Jobs
Constraints
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Job A: Project
Team Manager
Job B: Fast Foods
Restaurant Manager
 12 month deadline for
 Most employees have
product development
 Project budget limit of
$1 million
 No choice in selecting
team members
limited formal education
 Few monetary
incentives to reward
outstanding
performance
 Federal and state
health and safety
regulations
Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices
Two Managerial Jobs
Choices
Job A: Project
Team Manager
Job B: Fast Foods
Restaurant Manager
 The organizational
 Selection of employee
structure of the project
to promote to
team
supervisor
 Sequencing of project  Scheduling of shifts and
tasks
assignments
 Budget allocation
 Local advertising
promotions
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Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices
What Skills Do Managers
Need?
 Interpersonal skills
 Sensitivity
 Persuasiveness
 Empathy
 Technical skills
 Specialized knowledge
 Logical reasoning
 (Including when and
 Judgment
how to use the skills)
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 Conceptual skills
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 Analytical abilities
Adapted from Exhibit 1.5: Managers’ Skills
Importance of Managerial Skills at
Different Organizational Levels
Importance
High
Interpersonal skills
Technical skills
Conceptual skills
Low
Entry Level
Managers
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Mid-Level
Managers
Top Level
Managers
Adapted from Exhibit 1.6: Relative Importance of Managerial Skills at Different Organizational Levels
Who Succeeds? Who Doesn’t
Potential managerial leaders
share traits early on:
Bright, with outstanding
track records
Those who don’t quite
make it:
Have been successful, but
generally only in one area or
type of job.
Have survived stressful
situations
Frequently described as
moody or volatile. May be
able to keep their temper
with superiors during crises
but are hostile toward peers
and subordinates.
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Those who succeed:
Have diverse track
records, demonstrated
ability in many different
situations, and a breadth
of knowledge of the
business or industry.
Maintain composure in
stressful situations, are
predictable during crises,
are regarded as calm and
confident.
Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?
Who Succeeds? Who Doesn’t
Potential managerial leaders
share traits early on:
Have a few flaws
Those who don’t quite
Those who succeed:
make it:
Cover up problems while
Make a few mistakes, but
trying to fix them. If the prob- when they do, they admit
lem can’t be hidden, they
to them and handle them
tend to go on the defensive
with poise and grace.
and even blame someone
else for it.
Ambitious and oriented
toward problem solving
May attempt to micromanage a position, ignoring
future prospects, may staff
with the incorrect people or
neglect the talents they
have, may depend too much
on a single mentor, calling
their own decision-making
ability into question.
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While focusing on problem
solutions, keep their minds
focused on the next
position, help develop
competent successors,
seek advice from many
sources.
Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?
Who Succeeds? Who Doesn’t
Potential managerial leaders
share traits early on:
Good people skills
Those who don’t quite
make it:
May be viewed as charming
but political or direct but
tactless, cold, and arrogant.
People don’t like to work
with them
Those who succeed:
Can get along well with
different types of people,
are outspoken without
being offensive, are
viewed as direct and
diplomatic.
Source: Adapted from M. W. McCall, Jr. and M. M. Lombardo, “Off the Track: Why and How Successful
Executives Get Derailed,” Technical Report #21 (Greensboro, N.C.: Center for Creative Leadership, 1983),
pp. 9-11.
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Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?