Management A Practical Introduction Third Edition

Management A Practical IntroductionThird Edition Angelo Kinicki & Brian K. Williams

Chapter 1: The Exceptional Manager What You Do, How You Do It • Rewards • Six Challenges • Four Functions • Levels & Areas of Management • Roles Managers Play • Entrepreneurship • Skills Managers Need

1.1 Management: What It Is, What Its Benefits Are Managementis defined as 1) the pursuit of organizational goals efficiently and effectively by 2) integrating the work of people through 3) planning, organizing, leading, and controlling the organization’s resources(four functions of management)

1.1 Management: What It Is, What Its Benefits Are where: efficiencyis the means of attaining the organization’s goals • Efficient organizations use resources like people, money, and raw materials wisely and cost effectively

1.1 Management: What It Is, What Its Benefits Are and: effectivenessis the ends or goals the organization is trying to achieve • Effective organizations achieve results, make the right decisions, and successfully carry them out so that the goals are achieved

1.1 Management: What It Is, What Its Benefits Are WHY ORGANIZATIONS VALUE MANAGERS: THE MULTIPLIER EFFECT • Good managers create value through the multiplier effect where their influence on the organization is multiplied beyond what could be achieved by someone acting alone • The rewards of being an exceptional manager typically include good salaries and many benefits

1.1 Management: What It Is, What Its Benefits Are You can benefit from studying and practicing management by • learning how to deal with organizations from the outside • understanding how to relate to supervisors and how to interact with coworkers • understanding how to manage yourself in the workplace • experiencing a sense of accomplishment • stretching your abilities and magnifying your range of accomplishments • building a catalog of successful products or services

Chapter 1: The Exceptional Manager CLASSROOM PERFORMANCE SYSTEM Which of the following is not a reward from studying management? A) building a catalog of successful products or services B) understanding how to relate to supervisors C) understanding how to interact with coworkers D) understanding how to deal with organizations from the outside

1.2 Six Challenges To Being A Star Manager To be a star manager, you need to • manage for competitive advantage • manage for diversity in race, ethnicity, gender, and so on • manage for the effects of globalization • manage for the effects of information technology • manage to maintain ethical standards • manage for the achievement of your own happiness and lifetime goals

1.2 Six Challenges To Being A Star Manager CHALLENGE #1: MANAGING FOR COMPETITIVE ADVANTAGE—STAYING AHEAD OF RIVALS • Competitive advantage is the ability of an organization to produce goods or services more efficiently than competitors do, thereby outperforming them

1.2 Six Challenges To Being A Star Manager In order to stay ahead of rivals, firms need to be better at responding to: • customers • innovation • quality • efficiency

Chapter 1: The Exceptional Manager CLASSROOM PERFORMANCE SYSTEM In order to stay ahead of rivals, firms need to be better at all of the following except A) innovation B) implementation C) efficiency D) quality

1.2 Six Challenges To Being A Star Manager CHALLENGE #2: MANAGING FOR DIVERSITY—THE FUTURE WON’T RESEMBLE THE PAST • In the future, managers will be challenged to maximize the contributions of employees that are diverse in gender, age, race, and ethnicity

1.2 Six Challenges To Being A Star Manager CHALLENGE #3: MANAGING FOR GLOBALIZATION—THE EXPANDING MANAGEMENT UNIVERSE • Managing for globalization is a complex, ongoing challenge • It is important for managers to understand how cultural differences affect an organization

1.2 Six Challenges To Being A Star Manager CHALLENGE #4: MANAGING FOR INFORMATION TECHNOLOGY • Managing the Internet (the global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world) is perhaps the biggest information technology challenge for managers

1.2 Six Challenges To Being A Star Manager • E-commerce (electronic commerce—the buying and selling of goods or services over computer networks) is changing the way entire industries work • Information technology has facilitated e-business (using the Internet to facilitate every aspect of running a business), e-mail(text messages and documents transmitted over a computer network) and project management software (programs for planning and scheduling the people, costs, and resources to complete a project on time)

1.2 Six Challenges To Being A Star Manager Thanks to new technologies, employees may • telecommute(work from home or a remote location using a variety of information technologies) • use videoconferencing video and audio links along with computers that let people in different locations see, hear, and talk with one another) • engage in collaborative computing (state-of-the-art computer software and hardware that helps people work better together) • use knowledge management (implementing of systems and practices to increase the sharing of knowledge and information throughout an organization)

1.2 Six Challenges To Being A Star Manager CHALLENGE #5: MANAGING FOR ETHICAL STANDARDS • Pressure to meet sales, production, and other targets can create ethical dilemmas for managers CHALLENGE #6: MANAGING FOR YOUR OWN HAPPINESS AND LIFE GOALS • Managers need to consider whether meeting the organization’s challenges is also personally fulfilling

1.3 What Managers Do: The Four Principal Functions WHAT MANAGERS DO: THE FOUR PRINICPAL FUNCTIONS • Four functions: planning, organizing, leading, and controlling make up the management process

1.3 What Managers Do: The Four Principal Functions 1.3 What Managers Do: The Four Principal Functions Figure 1.1: The Management Process Figure 1.1: The Management Process Figure 1.1: The Management Process

1.3 What Managers Do: The Four Principal Functions • Planning is setting goals and deciding how to achieve them • Organizing involves arranging tasks, people, and other resources to accomplish work • Leading is defined as motivating, directing, and otherwise influencing people to work hard to achieve the organization’s goals • Controllinginvolves monitoring performance, comparing it with goals, and taking corrective action as needed

1.4 Pyramid Power: Levels & Areas of Management PYRAMID POWER: LEVELS & AREAS OF MANAGEMENT • There are three levels of management: top, middle, and first line • Managers can also be general managers and functional managers • While the traditional management structure is a pyramid-like model with the CEO at the top and layers of managers below, the model of the future is more like an orchestra where workers are the musicians, and their manager is the conductor

1.4 Pyramid Power: Levels & Areas of Management 1.4 Pyramid Power: Levels & Areas of Management Figure 1.2: The Levels and Areas of Management

Chapter 1: The Exceptional Manager CLASSROOM PERFORMANCE SYSTEM Which of the following is not one of the four management functions? A) planning B) controlling C) leading D) implementing

1.4 Pyramid Power: Levels & Areas of Management • Top managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it • Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them • First line managers make short-term operating decisions, directing the daily tasks of non-managerial personnel

1.4 Pyramid Power: Levels & Areas of Management AREAS OF MANAGEMENT: FUNCTIONAL MANAGERS VERSUS GENERAL MANAGERS Organizations are run by two types of managers: • functional managers are responsible for just one organizational activity for example Director of Finance • general managers are responsible for several organizational activities like Executive Vice President

1.4 Pyramid Power: Levels & Areas of Management There are three types of organizations: • for-profit organizations are formed to make money by selling products or services • not-for-profit organizations (ex. The Red Cross) offer services without making a profit for its owners • mutual-benefit organizations like trade associations advance members’ interests • Managers perform the same management functions regardless of the type of organization

1.5 Roles Managers Must Play Successfully Research shows that • managers rely more on verbal than on written communication • managers work long hours at an intense pace • managers’ work is characterized by fragmentation, brevity, & variety

1.5 Roles Managers Must Play Successfully To be successful, managers must be able to play three roles: • interpersonal roles (figurehead, leader, and liaison) involve managers interacting with people inside and outside their work units • informational roles (monitor, disseminator, and spokesperson) require managers to receive and communicate information • decisional roles (entrepreneur, disturbance handler, resource allocator, and negotiator) require managers to make decisions to solve problems or take advantage of opportunities

Chapter 1: The Exceptional Manager CLASSROOM PERFORMANCE SYSTEM Which of the following is an informational role? A) entrepreneur B) liaison C) monitor D) negotiator

1.6 The Entrepreneurial Spirit THE ENTREPRENEURIAL SPIRIT • Entrepreneurshipis the process of taking risks to create a new enterprise • Anentrepreneuris someone who sees a new opportunity for a product or service and launches a business to try to realize it • Anintrapreneuris someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization’s resources to try to realize it

1.6 The Entrepreneurial Spirit How Do Entrepreneurs & Managers Differ? • Entrepreneurs start businesses, managers grow or maintain businesses Both entrepreneurs and managers • -have a high need for achievement • -believe in personal control of destiny • -have high energy levels and an action orientation • -have a high tolerance for ambiguity Entrepreneurs more than managers • -have high self confidence and tolerance for risk

1.7 The Skills Star Managers Need THE SKILLS STAR MANAGERS NEED Good managers need to have • technical skills -the ability to perform a specific job • conceptual skills -the ability to think analytically and • human skills -the ability to interact with others

1.7 The Skills Star Managers Need Today, companies want managers with • -the ability to motivate and engage others • -the ability to communicate • -work experience outside the U.S. • -high energy levels to meet the demands of global travel and a 24/7 world

Chapter 1: The Exceptional Manager CLASSROOM PERFORMANCE SYSTEM Which of the following is not one of the three skills managers should cultivate? A) technical skills B) entrepreneurial skills C) conceptual skills D) human skills

Management A Practical Introduction Third Edition