Download Chapter 1

Managing
Chapter 01
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO 1 Summarize the major challenges of managing in the
new competitive landscape
LO 2 Describe the sources of competitive advantage for a
company
LO 3 Explain how the functions of management are
evolving in today’s business environment
LO 4 Compare how the nature of management varies at
different organizational levels
LO 5 Define the skills you need to be an effective
manager
LO 6 Discuss the principles that will help you manage
your career
1-2
TODAY
 GLOBALIZATION
 TECHNOLOGY
 KNOWLEDGE
 COLLABORATION
1-3
Managing for Competitive Advantage
Innovation
Cost
Competitiveness
Speed
Quality
Service
1-4
Managing for Competitive Advantage
 Today quality is about
preventing defects and
having continuous
improvement in how
the firm operates
1-5
Ex 1.1
The Process of Management
Planning
Select goals and
ways to attain
them
Resources
•Human
•Financial
•Raw Materials
Controlling
Monitor activities and
make corrections
•Technological
•Information
Performance
•Attain goals
Organizing
•Products
Assign responsibility
for task
accomplishment
•Services
•Efficiency
•Effectiveness
Leading
Use influence to
motivate employees
© 2006 by South-Western, a
1-6
division of Thomson Learning.
All rights reserved
Effectiveness and Efficiency
Organizational effectiveness is the degree to
which the organization achieves a stated goal, or
succeeds in accomplishing what it tries to do.
Organizational efficiency refers to the amount of
resources used to achieve an organization’s goal.
© 2006 by South-Western, a
1-7
division of Thomson Learning.
All rights reserved
The Functions of Management
 Management
 The process of working with people and resources
to accomplish organizational goals
 Efficient, effective
 Planning, Organizing, Leading And Controlling
1-8
The Functions of Management
 Planning
 Systematically making decisions about the goals
and activities that an individual, a group, a work
unit, or the overall organization will pursue
 analyzing current situations, anticipating the
future, determining objectives, deciding in what
types of activities the company will engage
1-9
The Functions of Management
 Organizing
 assembling and coordinating the human, financial,
physical, informational, and other resources
needed to achieve goals
 specifying job responsibilities, grouping jobs into
work units, marshaling and allocating resources,
1-10
The Functions of Management
 Leading
 stimulating people to be high performers
 Controlling
 monitoring performance and making needed
changes.
1-11
Performing All Four Management
Functions
 A typical day for a manager is not neatly
divided into the four functions
 Days are busy and fractionated, and spent
dealing with interruptions, meetings, and
firefighting
 Conscious always of the four functions of
management
1-12
Performing All Four Management
Functions
 Good managers
don’t neglect any of
the four
management
functions
1-13
Managerial Roles: What
Managers Do
Table 1.2
1-14
Management Skills
 Technical skill
 The ability to
perform a specialized
task involving a
particular method or
process
1-15
Management Skills
 Conceptual and decision skills
 Skills pertaining to the ability to identify and
resolve problems for the benefit of the
organization and its members.
1-16
Management Skills
 Interpersonal and communication skills
 People skills; the ability to lead, motivate, and
communicate effectively with others.
1-17
You and Your Career
 Emotional
intelligence
 The skills of
understanding
yourself, managing
yourself, and dealing
effectively with
others.
 Social capital
 Goodwill stemming
from your social
relationships
1-18
You and Your Career
Be both a
specialist and a
generalist
Be self-reliant
Actively manage
your relationship
with your
organization
Be connected
Survive and
thrive
1-19
Keys to Career Management
Table 1.3
1-20
Management Competencies
of Today
 Embrace ambiguity
 Create organizations that are:




Fast
Flexible
Adaptable
Relationship-oriented
 Focus on:




Leadership
Staying connected to employees and customers
Team building
Developing a learning organization
© 2006 by South-Western, a
1-21
division of Thomson Learning.
All rights reserved
Managerial Action Is Your
Opportunity to Contribute
Figure 1.2
1-22
Common Practices of Successful Executives
 They ask “What needs to be done?” rather than
“What do I want to do?”
 They write an action plan. They don’t just think, they
do, based on a sound, ethical plan.
 They take responsibility for decisions.
 They focus on opportunities rather than problems.
 Covey
1-23
Ex. 1.9
Theory X & Y (adapted)
Theory X




People are lazy
People lack ambition
Dislike responsibility
People are selfcentered
 People don’t like
change
Theory Y
 People are energetic
 People want to make
contributions
 People do have
ambition
 People will seek
responsibility
© 2006 by South-Western, a
1-24
division of Thomson Learning.
All rights reserved