Chapter 2 Management

1. Chapter 2 Management MGT 340 Chapter 2 White Book

2. What Would You Do? Headquarters, Amazon.com, Seattle, Georgia. • Amazon grew so fast that it lost control of the basics • Sales were growing, but the company was poorly managed • Amazon has lost over $3 billion since its inception, but is finally earning profits How can Amazon do a better job to fix what’s going wrong?

3. What Is Management? After reading the next two sections, you should be able to: describe what management is. explain the four functions of management.

4. Getting workdone throughothers Efficiency Effectiveness Management Is… 1

5. Management Functions Management Functions Planning Organizing Leading Controlling 2

6. Planning Determining organizational goals and a means for achieving them Planning 2.1

7. probability of success 76% What Really Works: Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Meta-Analysis is a study of studies that shows what works and when. This statistic shows that an employee hired on the basis of a good score on a general mental ability test stands a 76 percent chance of being a better performer than someone picked at random from the pool of all job applicants.

8. Organizing • Deciding where decisions will be made • Who will do what jobs and tasks • Who will work for whom 2.2

9. Leading Inspiring Motivating Leading For Anne Mulcahy, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers. 2.3

10. Controlling Monitoring progress toward goal achievement and taking corrective action when needed Controlling 2.4

11. The Control Process Set standards toachieve goals Compare actualperformance tostandards Make changesto returnperformance tostandards 2.4

12. What Do Managers Do? After reading the next two sections, you should be able to: describe different kinds of managers. explain the major roles and subroles that managers perform in their jobs.

13. Kinds of Managers • Top Managers • Middle Managers • First-Line Managers • Team Leaders 3

14. Top Managers • Chief Executive Officer (CEO) • Chief Operating Officer (COO) • Chief Financial Officer (CFO) • Chief Information Officer (CIO) 3.1 3

15. Creating a context for change Developing commitmentand ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments Responsibilities of Top Managers 3.1

16. Middle Managers • Plant Manager • Regional Manager • Divisional Manager 3.2 3

17. Responsibilities of Middle Managers Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers 3.2

18. First-Line Managers • Office Manager • Shift Supervisor • Department Manager 3.3 3

19. Responsibilities of First-Line Managers Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans 3.3

20. Responsibilities of Team Leaders Facilitate team performance Manage external relations Facilitate internal team relationships 3.4

21. Managerial Roles Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator 4 Adapted from Exhibit 1.4 H. Mintzberg, “The Manager’s Job: Folklore and Fact:.”Harvard Business Review, July-August 1975.

22. Biz Flix: 8 Mile What is the quality of Jimmy’s relationship with his boss, Manny? What management roles do you see Manny play in the clip? Take Two Video Click

23. Managerial Roles Interpersonal Roles Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourageworkers to accomplish objectives Managers deal with people outsidetheir units 4.1

24. Monitor Disseminator Spokesperson Managers scan their environmentfor information Managers share information with others in their company Managers share informationwith others outside their departments or companies Managerial Roles Informational Roles 4.2

25. Managerial Roles Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator Managers adapt to incremental change Managers respond to problems thatdemand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises 4.3

26. What Does It Take to Be a Manager? After reading the next three sections, you should be able to: explain what companies look for in managers. discuss the top mistakes that managers make in their jobs. describe the transition that employees go through when they are promoted to management.

27. Technical Skills Human Skills Conceptual Skills Motivation to Manage What Companies Look for in Managers 5

28. What Companies Look for in Managers Skills are more or less important at different levels of management: 5

29. 1. Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor Mistakes Managers Make 6 Adapted from Exhibit 1.6McCall & Lombardo, “What Makes a Top Executive?”Psychology Today, Feb 1983

30. Managers’Initial Expectations After Six MonthsAs a Manager After a YearAs a Manager • Be the boss • Formal authority • Manage tasks • Job is not managing people • Initial expecta-tions were wrong • Fast pace • Heavy workload • Job is to beproblem-solverand troubleshooter • No longer “doer” • Communication,listening, positivereinforcement • Learning to adaptand control stress • Job is peopledevelopment The First Year Management Transition 7 Adapted from Exhibit 1.7

31. Why Management Matters After reading this section, you should be able to: explain how and why companies can create competitive advantage through people.

32. 1. Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information Competitive Advantage through People Management Practices in Top Performing Companies 8 Adapted from Exhibit 1.8

33. Competitive Advantage through People J.M. Smucker Company has been on Fortune’s list of 100 Best Companies to Work For since the list was started in 1998. Smucker’s has extremely low employee turnover and extremely high employee satisfaction. Tim and Richard Smucker are pictured here.

34. Sales Revenues Profits Stock Market Returns Customer Satisfaction Web Link http://www.greatplacetowork.com/best/list-bestusa.htm Competitive Advantage through People Competitive Advantages of Well-Managed Companies 8