mse 401 management 1

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McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights resMcGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights res

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Chapter

1 Managing


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Learning ObjectivesLearning Objectives

After studying Chapter 1, you will know:

the major challenges of managing in the new era

the drivers of competitive advantage for your company

the functions of management and how they are evolving intodays business environment

the nature of management at different organizational levels

the skills you need to be an effective manager

what to strive for as you manage your career


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New Era

Management

Internet

Collaboration

Across

Boundaries

Knowledge

Management

Globalization

Managing In The New EraManaging In The New Era

Managerial practices will always separate effective from

ineffective organizations

Four key elements are new elements in business today


5/31McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights resMcGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights res

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Managing In The New Era (cont.)Managing In The New Era (cont.)

The Internet

communication technologies are driving massive change

initial enthusiasm for e-business has dwindled

25% of publicly-held Web companies became profitable in 2002most profitable Web companies sell information-based

products that dont require shipping

old economy types now using the Internet as a tool to solidify

their future



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Globalization

far more than in the past, enterprises are global

competing globally is not easy

companies often overestimate the attractiveness of foreignmarkets

even small firms that do not operate on a global scale must

make strategic decisions based on international considerations

face intense competition from high-quality foreign producers



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Knowledge managementpractices aimed at discovering and harnessing an

organizations intellectual resources

unlock peoples expertise, skills, wisdom, and relationships

intellectual capital is the collective brainpower of the

organization

Collaboration across boundaries

capitalize on the ideas of people outside the traditionalcompany boundaries

occurs between as well as within organizations

e.g., must effectively capitalize on customers brains



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Competitive

Advantage

Cost

Competitiveness

SpeedQuality

Innovation

Managing For Competitive AdvantageManaging For Competitive Advantage

Best managers and companies deliver all four



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(cont.)(cont.)

Innovation

the introduction of new goods and services

comes from people

must be a strategic goal

must be managed properly

Quality

excellence of a product, including its attractiveness, lack of

defects, reliability, and long-term durability importance of quality has increased dramatically

catering to customers other needs creates more perceived

quality



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(cont.)(cont.)

Speed

fast and timely execution, response, and delivery of results

often separates winners from losers in world competition

requirement has increased exponentially

Cost competitiveness

costs are kept low enough so that you can realize profits and

price your products at levels that are attractive to consumers

key is efficiency- accomplishing goals by using resources wiselyand minimizing waste

little things can save big money

cost cuts involve tradeoffs



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The Functions Of ManagementThe Functions Of Management

Management

the process of working with people and resources to

accomplish organizational goals

good managers must be: effective - achieve organizational goals

efficient- achieve goals with minimum waste of resources

there are timeless principles of management

still important for making managers and companies great must add fresh thinking and new approaches

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Planning

Leading

Controlling

The Functions Of Management (cont.)The Functions Of Management (cont.)

Organizing

The manager who does not devote adequate attention and

resources to all fourfunctions will fail

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Planning specifying the goals to be achieved and deciding in advance

the appropriate actions taken to achieve those goals

delivering strategic value - planning function for the new era

a dynamic process in which the organization uses the brains of

its members and of stakeholders to identify opportunities to

maintain and increase competitive advantage

process intended to create more value for the customer

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Organizingassembling and coordinating the human, financial, physical,

informational, and other resources needed to achieve goals

building a dynamic organization - organizing function for the

new era

viewing people as the most valuable resource

the future requires building flexible organizations

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Leading

stimulating people to be high performers

in the new era, managers must be good at mobilizing people to

contribute their ideas

Controlling

monitoring progress and implementing necessary changes

makes sure that goals are met

new technology makes it possible to achieve more effectivecontrols

for the future, will have to be able to monitor continuous

learning and changing

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Management LevelsManagement Levels

Top-level managers (strategic managers)

senior executives responsible for the overall management and

effectiveness of the organization

focus on long-term issues emphasize the survival, growth, and effectiveness of the firm

concerned with the interaction between the organization and

its external environment

titles include Chief Executive Officer (CEO), Chief OperatingOfficer (COO), company presidents and vice presidents

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Management Levels (cont.)Management Levels (cont.)

Middle-level managers (tacticalmanagers)

located between top-level and frontline managers in the

organizational hierarchy

responsible for translating strategic goals and plans into morespecific objectives and activities

traditional role was that of an administrative controller who

bridged the gap between higher and lower levels

provide operating skills and practical problem solving thekeep the company working


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T f i f Middl L lT f ti f Middl L l


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Transformation of Middle-LevelTransformation of Middle-Level

Management Roles and TasksManagement Roles and Tasks

From administrative controllers to supportivecoaches

Providing the support and coordination to bring

large company advantage to the independent

frontline units

Developing individuals and supporting their

activities

Linking dispersed knowledge, skills, and best

practices across units

Managing the tension between short-term

performance and long-term ambition

Changing roles

Primary value

Key activities

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T f ti f T L lT f ti f T L l


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Transformation of Top-LevelTransformation of Top-Level

Management Roles and TasksManagement Roles and Tasks

From resource allocators to institutional leaders

Creating and embedding a sense of direction,

commitment and challenge to people throughout

the organization

Challenging embedded assumptions while

establishing a stretching opportunity horizon and

and performance standards

Institutionalizing a set of norms and values to

support cooperation and trust

Creating an overarching corporate purpose and

ambition

Changing roles

Primary value

Key activities

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kill


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Management SkillsManagement Skills

Skill - specific ability that results from knowledge,information, and aptitude

Technical skill

ability to perform a specialized task that involves a certain

method or process

managers at higher levels rely less on technical skills

Conceptual and decision skills

ability to identify and resolve problems for the benefit of theorganization

assume greater importance as manager acquires more

responsibility


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Y A d Y CY A d Y C


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You And Your CareerYou And Your Career

Jobs are no longer as secure for managers as they used to be

organizations still try to develop and retain good employees

employee loyalty and commitment are still important

Companies offering employability to workers tend to bemore successful

provide training and other learning experiences

employees perform work with greater responsibility

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Y A d Y C ( )Y A d Y C ( )


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Be both a specialist and generalistspecialist- expert in something

provide concrete, identifiable value to the firm

generalist- knowing about a variety of business functions so

that you can understand work with different perspectives

Be self-reliant

take responsibility for yourself, your actions, and your career

regardless of where you work

think and act like an entrepreneur

look for opportunities to contribute in new ways

generate constructive change

You And Your Career (cont.)You And Your Career (cont.)


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Keys to Career ManagementKeys to Career Management

1. Think of yourself as a business.2. Define your product: What is your area of expertise?

3. Know your target market: To whom are you going to sell this?

4. Be clear on why your customer buys from you. What is your

value proposition - what are you offering that causes him to

use you?

5. As in any business, strive for quality and customer satisfaction, even

if your customer is just someone else in your organization - like

your boss.

6. Know your profession or field and whats going on there.

7. Invest in your own growth and development, the way a company

invests in research and development. What new products will you

be able to provide?

8. Be willing to consider changing your career.

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Y A d Y C ( t )Y A d Y C ( t )


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Actively manage your relationship with your organization two ways to think about the nature of the relationships

between you and your employer

view yourself as an employee

model for just getting by

contributions likely to be minimal

two-way, mutually-beneficial exchange relationship

think about how you can contribute and act accordingly

figure out new ways to add value organization likely provide full and fair rewards, support further

personal development, and offer more gratifying work environment



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You And Your Career (cont )You And Your Career (cont )


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Survive and thrivebe prepared to move from project to project, team to team

be a master at something that the world values

develop a strong network of colleagues who can help withcurrent and future projects

have entrepreneurial skills that help you act as if you were

running your own business

love technologymarket yourself

be willing to constantly improve and even reinvent yourself


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