chapter 1 management

Chapter 1

Management

Management 6th Edition • Chuck Williams

What Would You Do?• Over the last two years, Starbucks closed 800 stores and laid off

25,000 workers as consumers turned to less expensive options such as McDonald's and Dunkin' Donuts.

• Historically, to make sure that customers didn’t “camp out” at tables, Starbucks charged for wireless access, while competitors did not, or charged less.

• Paula Rosenblum, of Retail Systems Research, says, “[Free Wi-Fi is] a part of Panera's value proposition because I think that they like to increase average transaction value and get loyalty at the same time.”

How can Starbucks use technology to do a better job of connecting with its customers?

Starbucks Headquarters, Seattle, Washington.

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.

Management Is…

EffectivenessEffectiveness

EfficiencyEfficiencyGetting workdone through

others

Getting workdone through

others

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Management Functions

Planning

Organizing

Leading

Controlling

Planning

Organizing

Leading

Controlling

ManagementFunctions

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Planning

PlanningDetermining organizational goals and a means for achieving them

2.12.1

Organizing

• Deciding where decisions will be made

• Who will do what jobs and tasks

• Who will work for whom

2.22.2

Leading

MotivatingMotivating

InspiringInspiring

LeadingLeading

“The CEO hasa very specific job that onlyhe or she can do: Link the

external world with the internal organization.”

A. G. LAFLEY, FORMER CEO, PROCTER & GAMBLE

2.32.3

Controlling

Controlling

Monitoring progress toward goal achievement and taking corrective action when needed

2.42.4

The Control ProcessSet standards to

achieve goals

Compare actualperformance to

standards

Make changesto return

performance tostandards

2.42.4

What Do Managers Do?

After reading the next two sections, you should be able to:

3. describe different kinds of managers. 4. explain the major roles and subroles

that managers perform in their jobs.

Kinds of Managers• Top Managers

• Middle Managers

• First-Line Managers

• Team Leaders

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Top Managers

• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)

3.13.1

Responsibilitiesof Top Managers

Creating a context for changeCreating a context for change

Developing commitmentand ownership in employees

Developing commitmentand ownership in employees

Creating a positive organizational culture through language and actionCreating a positive organizational

culture through language and action

Monitoring their business environmentsMonitoring their business environments

3.13.1

Middle Managers• Plant Manager

• Regional Manager

• Divisional Manager

3.23.2

Responsibilitiesof Middle Managers

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

3.23.2

First-Line Managers• Office Manager

• Shift Supervisor

• Department Manager

3.33.3

Responsibilities ofFirst-Line Managers

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

3.33.3

Responsibilitiesof Team Leaders

Facilitate team performanceFacilitate team performance

Facilitate internal team relationshipsFacilitate internal team relationships

Manage external relations Manage external relations

3.43.4

Managerial Roles

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

Adapted from Exhibit 1.3

Interpersonal Informational DecisionalFigurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

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Biz Flix: In Good Company 1. Which management skills discussed in this

chapter does the character Mark Steckle seem to lack?

2. The sequence shows three people who represent different hierarchical levels in the company. Based on this scene, which of the four kinds of managers do you think each of them might be?

3. Which of the characters in this clip exhibited the strongest human skills?

Watch this clip!

http://www.thomsonedu.com/resource_uploads/static_resources/0324595840/17820/ch01.html

Managerial Roles

Figurehead

Leader

Liaison

Figurehead

Leader

Liaison

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

Managers perform ceremonial duties

Managers motivate and encourageworkers to accomplish objectives

Managers deal with people outsidetheir units

Interpersonal Roles

4.14.1

Managerial Roles

Monitor

Disseminator

Spokesperson

Monitor

Disseminator

Spokesperson

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Managers scan their environmentfor information

Managers share information with others in their company

Managers share informationwith others outside their departments or companies

Informational Roles

4.24.2

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Managerial Roles

Managers adapt to incremental change

Managers respond to problems thatdemand 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 thatdemand immediate action

Managers decide who gets what resources

Managers negotiate schedules, projects, goals, outcomes, resources, and raises

Decisional Roles

4.34.3

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.

What CompaniesLook for in Managers

Technical SkillsTechnical Skills Human SkillsHuman Skills

Conceptual Skills

Conceptual Skills

Motivation to ManageMotivation to Manage

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What CompaniesLook for in Managers

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

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Mistakes Managers Make

Adapted from Exhibit 1.5McCall & 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 ambitious 4. 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 strategically 8. 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

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The First YearManagement 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-solverand troubleshooter

Initial expecta-tions were wrong

Fast pace Heavy workload Job is to be

problem-solverand troubleshooter

No longer “doer” Communication,

listening, positivereinforcement

Learning to adaptand control stress

Job is peopledevelopment

No longer “doer” Communication,

listening, positivereinforcement

Learning to adaptand control stress

Job is peopledevelopment

Managers’Initial Expectations

After Six MonthsAs a Manager

After a YearAs a Manager


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Why Management Matters

After reading this section, you should be able to:

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

Management Practices in Top Performing CompaniesManagement Practices in Top Performing Companies

Competitive Advantage through People


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 Performance 4. 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

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After 6 years on Fortune’s list of BestCompanies to Work for, NetApp jumpedto the top in 2009. One reason is employees’ enthusiasm for the company’s egalitarian culture.



Competitive Advantages of Well-Managed Companies

Competitive Advantages of Well-Managed Companies

Sales RevenuesSales Revenues ProfitsProfits

Stock Market Returns

Stock Market Returns

Customer SatisfactionCustomer Satisfaction

http://www.greatplacetowork.com/best/list-bestusa.htmWeb Link

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