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Chapter 1
Management
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What Would You Do?
Charlie Kim creates a company filled with family and friends
Discontent and disorganization develop What mistakes do managers tend to make? What does it take to be a manager?
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After discussing this section, you should be able to:
Learning ObjectivesWhat is Management?
1. describe what management is.
2. explain the four functions of management.
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Management is...
Getting work done through others Managers are concerned with:
efficiency getting work done with a minimum of effort, expense or
waste effectiveness
accomplishing tasks that help fulfill organizational objectives
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What Really Works
General Mental Ability and Job Performance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||76% probability of success
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Management Functions
“Old” Planning Organizing Leading Controlling
“New” Making Things
Happen Meeting the
Competition Organizing People,
Projects, and Processes
LeadingAdapted from Exhibit 1.1
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Making Things Happen
Determining what you want to accomplish Planning how to achieve those goals Gathering and managing the information
needed to make good decisions Controlling performance
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Meeting the Competition
Consider the threat from international competitors
Have a well-thought-out competitive strategy Be able to embrace change and foster new
product and service ideas Structure their organizations to quickly adapt
to changing customers and competitors
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Organizing People, Projects, and Processes
Consideration of people issues Consideration of work processes
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Leading
Motivation Inspiration Communication Perspiration
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After discussing this section, you should be able to:
Learning ObjectivesWhat Do Managers Do?
3. describe different kinds of managers.
4. explain the major roles and subroles that managers perform in their jobs.
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Kinds of Managers
Top Managers Middle Managers First-Line Managers Team Leaders
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Top Managers
Responsible for: Creating a context for change Developing attitudes of commitment and
ownership in employees Creating a positive organizational culture
through language and action Monitoring their business environments
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Middle ManagersResponsible for:
Planning and allocating resources to meet objectives
Coordinating and linking groups, departments, and divisions
Monitoring and managing the performance of the subunits and individual managers who report to them
Implementing the changes or strategies generated by top managers
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First-Line Managers
Responsible for: Managing the performance of entry-level
employees Teaching entry-level employees how to do
their jobs Making detailed schedules and operating
plans based on middle management’s intermediate range plans
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Team Leaders
Responsible for: Facilitating team performance Managing external relationships Internal team relationships
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Managerial Roles
Interpersonalfigurehead
leaderliaison
Informationalmonitor
disseminatorspokesperson
Decisionalentrepreneur
disturbance handlerresource allocator
negotiator
H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973)Adapted from Exhibit 1.3
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After discussing this section you should be able to:
Learning ObjectivesWhat Does It Take to Be a Manager?
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.
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What Companies Look For in Managers Technical skills
specialized knowledge Human Skills
ability to work with others Conceptual Skill
ability to see the organization as whole Motivation to Manage
a desire to be in charge
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Low Importance High ImportanceTop Managers
Middle Managers
First-line Managers
Team LeadersAdapted fromExhibit 1.4
Human Skills
Technical Skills
Motivation toManage
Conceptual Skills
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Mistakes Managers Make
Insensitive to others Cold, aloof, and/or arrogant Betraying a trust Overly ambitious Specific performance problems
with the business
Adapted from Exhibit 1.5
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Mistakes Managers Make (cont’d) Overmanaging: unable to delegate or build a
team Unable to staff effectively Unable to think strategically Unable to adapt to boss with different style Overdependent on advocate or mentor
Adapted from Exhibit 1.5
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First-Year Management TransitionManagers’
InitialExpectations
After SixMonths
as a Manager
After a Yearas a Manager
Be the boss Formal
authority Manage tasks Job is not
managingpeople
Initialexpectationswere wrong
Fast pace Heavy
workload Job is people
development
No longer “doers” Communication,
listening, & positivereinforcement
Job is to beproblem-solverand trouble-shooter forsubordinates.
Adapted from Exhibit 1.6
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Been There, Done That
Travis Reynolds, 24, is a new first-level manager
First month was high stress empowered, but wasn’t empowering others overly tough on employees tried too hard to prove himself
Learned from his mistakes now loves his job
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The Transition to Management
Initial Assumptions Exercise formal
authority Managing tasks not
people Help employees do
their jobs Hire and fire
Reality Cannot be “bossy” Manage people not
tasks Coach employee
performance Fast pace, heavy
workload
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After discussing this section, you should be able to:
Learning ObjectivesWhy Management Matters.
explain how and why companies can create competitive advantage through people.
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Competitive Advantage Through People: Management Practices Employment Security Selective Hiring Self-Managed Teams
& Decentralization High Wages
Contingent on Organizational Performance
Training and Skill Development
Reduction of Status Differences
Sharing Information
Adapted from Exhibit 1.7
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What Really Happened
Richard Pregiato hired as CEO Each manager created goals & plans Middle managers added No more “work outs” during work