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 todays 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
Todays enterprises are global, with offices and production facilities in countries all over the world Means that a companys talent can come from anywhere Internet makes globalization inevitable

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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 organizations intellectual resources Knowledge workers

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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

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Managing for Competitive Advantage

Innovation

Cost Competitiveness

Quality

Speed

Service
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Question
___________ is the fast and timely execution, response, and delivery of results. A. Innovation B. Quality C. Speed D. Service

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Managing for Competitive Advantage

Innovation
the introduction of new goods and services often the most important innovation is not the product itself, but how it is delivered

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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 and having continuous improvement in how the firm operates

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Managing for Competitive Advantage

Service
The speed and dependability with which an organization delivers what customers want

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Managing for Competitive Advantage

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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The Functions of Management

Management
The process of working with people and resources to accomplish organizational goals Efficient, effective

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Question
____________ is monitoring performance and making needed changes. A. Planning B. Organizing C. Leading D. Controlling

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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,

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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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The Functions of Management

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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 dont neglect any of the four management functions

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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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Question
Which management skill is the ability to lead, motivate, and communicate effectively with others? A. Technical B. Conceptual C. Decision D. Interpersonal
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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

Be connected

Actively manage your relationship with your organization

Survive and thrive

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Keys to Career Management

Table 1.3

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Two Relationships: Which Will You Choose?

Figure 1.1
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Managerial Action Is Your Opportunity to Contribute

Figure 1.2
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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 dont just think, they do, based on a sound, ethical plan. They take responsibility for decisions. They focus on opportunities rather than problems.

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Destination CEO: Darden Restaurants

What position did Otis hold before being named CEO of Darden Restaurants? What management skills are you developing in a job or in college that will aid you in your future career?

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