Chapter 1

Management

2004 by Nelson, a division of Thomson Canada Limited

What Would You Do?

Mario had founded a small management

consulting firm in Moncton.
Opportunities to help firms build and
manage competitive intelligence were
many.
What are the challenges Mario faces?
What should Mario do?
2004 by Nelson, a division of Thomson Canada Limited

Learning Objectives:
What is Management?
After discussing this section
you should be able to:
1. describe what management is.
2. explain the three functions of
management.

2004 by Nelson, a division of Thomson Canada Limited

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

objectives.

2004 by Nelson, a division of Thomson Canada Limited

organizational

Meta-analysis
A study of studies.

A statistical approach that

provides the best scientific
estimate of how well
management theories and
practices work.

2004 by Nelson, a division of Thomson Canada Limited

What Really Works

Meta-Analysis

2004 by Nelson, a division of Thomson Canada Limited

Management Functions

Old
Planning
Organizing
Leading
Controlling

2004 by Nelson, a division of Thomson Canada Limited

New
Making Things
Happen
Meeting the
Competition
Organizing People,
Projects, and
Processes
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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.
2004 by Nelson, a division of Thomson Canada Limited

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.

2004 by Nelson, a division of Thomson Canada Limited

Organizing People,
Projects, and Processes

Consideration of people
issues.
Consideration of work
processes.

2004 by Nelson, a division of Thomson Canada Limited

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Learning Objectives:
What Do Managers Do?
After discussing this section, you
should be able to:
3. describe different kinds of managers.
4. explain the major roles and subroles
that managers perform in their jobs.

2004 by Nelson, a division of Thomson Canada Limited

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Kinds of Managers

Top Managers
Middle Managers
First-Line Managers
Team Leaders

2004 by Nelson, a division of Thomson Canada Limited

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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.
2004 by Nelson, a division of Thomson Canada Limited

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Middle Managers
Responsible for:

Planning and allocating resources to meet
objectives.

Coordinating and linking groups, department
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.
2004 by Nelson, a division of Thomson Canada Limited

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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 on middle managements intermediate
range plans.
2004 by Nelson, a division of Thomson Canada Limited

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Team Leaders
Responsible for:

Facilitating team
performance.

Managing external
relationships.

Internal team relationships.

2004 by Nelson, a division of Thomson Canada Limited

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Managerial Roles
Interpersonal
- figurehead
- leader
- liaison

Informational
-monitor
-disseminator
-spokesperson

Decisional
-entrepreneur
-disturbance handler
-resource allocator
-negotiator

Adapted from Exhibit 1.3

2004 by Nelson, a division of Thomson Canada Limited

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Learning Objectives:
What Does It Take to Be a
Manager?
After discussing this section, 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.
2004 by Nelson, a division of Thomson Canada Limited

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What Companies
Look for in Managers

Technical Skills

Human Skill

Ability to work with others

Conceptual Skill

Specialized knowledge

Ability to see the whole organization

Motivation to Manage

A desire to be in charge

2004 by Nelson, a division of Thomson Canada Limited

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Relative Importance
of Managerial Skills to
Different Managerial Jobs

Exhibit 1.4
2004 by Nelson, a division of Thomson Canada Limited

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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

2004 by Nelson, a division of Thomson Canada Limited

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Mistakes Managers Make

Overmanaging: unable to delegate or

build a team
Unable to staff effectively
Unable to think strategically
Unable to boss with different style
Overdependent on advocate or mentor

2004 by Nelson, a division of Thomson Canada Limited

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First-Year Management
Transition
Managers Initial Expectations

Be the boss

Formal authority

Manage tasks

Job is not managing people

Adapted from Exhibit 1.6

2004 by Nelson, a division of Thomson Canada Limited

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First-Year Management
Transition
After Six Months as a Manager

Initial expectations were wrong

Fast pace

Heavy workload

Job is to be problem-solver and troubleshooter for subordinates
Adapted from Exhibit 1.6
2004 by Nelson, a division of Thomson Canada Limited

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First-Year Management
Transition
After a Year as a Manager

No longer doers

Communication, listening, & positive
reinforcement

Job is people development

Adapted from Exhibit 1.6

2004 by Nelson, a division of Thomson Canada Limited

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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
2004 by Nelson, a division of Thomson Canada Limited

Reality

Cannot be bossy

Manage people not
tasks

Coach employee
performance

Fast pace, heavy
workload
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Learning Objectives:
Why Management Matters
After reading this section,
you should be able to:
8. explain how and why
companies can create
competitive advantage
through people

2004 by Nelson, a division of Thomson Canada Limited

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Competitive Advantage Through

People: Management Practices

Employment security
Selective hiring
Self-managed teams
and decentralization
High wages
contingent on
organizational
performance
2004 by Nelson, a division of Thomson Canada Limited

Training and skill

development
Reduction of status
differences
Sharing information

Adapted from Exhibit 1.7

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What Really Happened

Theriault developed in-house capabilities for

collecting and analyzing information.
A market niche was and potential
partnerships with competitors were identified.
Leadership identified the niche and the
strategy.
The company structure was based on growth
and use of technology.
2004 by Nelson, a division of Thomson Canada Limited

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