Managing and Performing

Chapter One

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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

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Globalization

Today’s enterprises are global, with offices and production facilities in countries all over the world

Means that a company’s talent can come from anywhere

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Technological Change: The Internet

Marketplace

Means for manufacturing goods and services

Distribution channel

An information service

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Technological Change: The Internet

Drives down costs and speeds up globalization.

Improves efficiency of decision making.

Facilitates design of new products, from pharmaceuticals to financial services

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Knowledge Management

Knowledge management

Practices aimed at discovering and harnessing an organization’s intellectual resources

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Knowledge Management

Knowledge workers

Workers whose primary contributions are ideas and problem-solving expertise

Knowledge managers find these human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations.

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Knowledge Management

Knowledge management is about finding, unlocking, sharing, and altogether capitalizingon the most precious resources of an organization: people’s expertise, skills, wisdom, and relationships.

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Collaboration across Boundaries

Requires productive communications among different departments, divisions, or other subunits of the organization

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Collaboration across “Boundaries”

Companies today must motivate and capitalize on the ideas of people outside the organization e.g. its consultants, ad agencies, and suppliers

Companies must realize that the need to serve the customer drives everything else

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Managing for Competitive Advantage

Innovation Quality Service

Speed Cost Competitiveness Sustainability

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Managing for Competitive Advantage

Innovation

the introduction of new goods and services

A firm must:

adapt to changes in consumer demands and to new competitors.

be ready with new ways to communicate with customers and deliver the products to them.

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Managing for Competitive Advantage

Quality

The excellence of your product (goods or services)

Historically, quality referred to attractiveness, lack of defects, reliability, and long-term dependability

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Managing for Competitive Advantage

Today quality is about preventing defects before they occur, achieving zero defects in manufacturing, and designingproducts for quality

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Managing for Competitive Advantage

Service

giving customers what they want or need, when they want it

focused on continually meeting the needs of customers to establish mutually beneficial long-term relationships.

Speed

Fast and timely execution, response, and delivery of results.

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Managing for Competitive Advantage

Cost competitiveness

Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers.

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Managing for Competitive Advantage

Sustainability

The effort to minimize the use of resources, especially those that are polluting and nonrenewable.

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The Functions of Management

Management

The process of working with people and resources to accomplish organizational goals

Efficiently, effectively

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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

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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,and creating conditions so that people and things work together to achieve maximum success

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The Functions of Management

Leading

stimulating people to be high performers

Controlling

monitoring performance and making needed changes.

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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

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Performing All Four Management Functions

Good managers devote adequate attention and resources to all four managementfunctions.

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Management Levels and Skills

Top Level Managers

Middle-Level Managers

Frontline Managers

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Management Levels and Skills

Top-level managers

Senior executives responsible for the overall management and effectiveness of the organization.

Middle-level managers

Managers located in the middle layers of the organizational hierarchy, reporting to top-level executives.

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Management Levels and Skills

Frontline managers

Lower-level managers who supervise the operational activities of the organization

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Transformation of Management Roles and Activities

Table 1.1

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Managerial Roles: What Managers Do

Table 1.2

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Management Skills

Technical skill

The ability to perform a specialized task involving a particular method or process

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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.

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Management Skills

Interpersonal and communication skills

People skills; the ability to lead, motivate, and communicate effectively with others.

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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

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You and Your Career

Be both a specialist and a generalist

Be self-reliant

Connect

Actively manage your relationship with your organization

Survive and thrive

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Two Relationships: Which Will You Choose?

Figure 1.1

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Managerial Action Is YourOpportunity to Contribute

Figure 1.2