Planning Ahead — Chapter 1 Study Questions

1. PowerPoint Presentation to Accompany Chapter 1 ofManagement FundamentalsCanadian EditionSchermerhorn  Wright

2. Planning Ahead — Chapter 1 Study Questions • What are the challenges of working in the new economy? • What are organizations like in the new workplace? • Who are managers and what do they do? • What is the management process? • How do you learn the essential managerial skills and competencies? Management Fundamentals - Chapter 1

3. Overview of the 21st century workplace • Organizations must adapt to rapidly changing society. • Economy is global and driven by innovation and technology. • High performing companies gain extraordinary results from people working for them. • Interdependent, knowledge based Management Fundamentals - Chapter 1

4. What is CAPITAL? • Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc. • Real Capital or Economic Capital comprises physical goods that assist in the production of other goods and services, e.g. shovels for gravediggers, sewing machines for tailors, or machinery and tooling for factories. Management Fundamentals - Chapter 1

5. Study Question 1: What are the challenges of working in the new economy? • Intellectual capital • People are the ultimate foundation of organizational performance. • Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. • A knowledge worker adds to the intellectual capital of an organization. • Mayor Michael Bloomberg on Intellectual Capital http://youtu.be/tbhegd9OfXs

6. Human Capital • The value that the employees of a business provide through the application of skills, know how and expertise.[4] • Human capital is an organization’s combined human capability for solving business problems. Human capital is inherent in people and cannot be owned by an organization. • Therefore, human capital can leave an organization when people leave. Management Fundamentals - Chapter 1

7. Study Question 1: What are the challenges of working in the new economy? • Globalization … • National boundaries of world business have largely disappeared. • Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy. Management Fundamentals - Chapter 1

8. Study Question 1: What are the challenges of working in the new economy? • Technology … • Continuing transformation of the modern workplace through: • The Internet • World Wide Web • Computers • Information technology • Increasing demand for knowledge workers with the skills to fully utilize technology.

9. Study Question 1: What are the challenges of working in the new economy? • Diversity … • Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness. • A diverse and multicultural workforce both challenges and offers opportunities to employers. Management Fundamentals - Chapter 1

10. Study Question 1: What are the challenges of working in the new economy? • Ethics … • Code of moral principles. • Society requires businesses to operate according to high moral standards. • Emphasis today on restoring the strength of corporate governance Management Fundamentals - Chapter 1

11. Study Question 1: What are the challenges of working in the new economy? • Careers … • Career of 21st century won’t be uniformly full-time and limited to a single large employer • Skills must be portable and always of current value Management Fundamentals - Chapter 1

12. Study Question 2: What are organizations like in the new workplace? • Critical skills for success in the new workplace … • Mastery • Contacts • Entrepreneurship • Love of technology • Marketing • Passion for renewal Management Fundamentals - Chapter 1

13. Study Question 2: What are organizations like in the new workplace? • Organization • A collection of people working together to achieve a common purpose. • Organizations provide useful goods and/or services that return value to society and satisfy customer needs. Management Fundamentals - Chapter 1

14. Study Question 2: What are organizations like in the new workplace? • Organizations are open systems • Composed of interrelated parts that function together to achieve a common purpose. • Interact with their environments. • Transform resource inputs into product outputs (goods and services). • Environmental feedback tells organization how well it is meeting the needs of customers and society. Management Fundamentals - Chapter 1

15. Figure 1.1 Organizations as open systems. Management Fundamentals - Chapter 1

16. Study Question 2: What are organizations like in the new workplace? • Organizational performance • Value is created when an organization’s operations adds value to the original cost of resource inputs. • i.e. ice cream and cookies are worth $2.00 together but as a sandwich are worth $4.00 • When value creation occurs: • Businesses earn a profit. • Nonprofit organizations add wealth to society.

17. Study Question 2: What are organizations like in the new workplace? • Organizational performance • Productivity • An overall measure of the quantity and quality of work performance with resource utilization taken into account. • Performance effectiveness • An output measure of task or goal accomplishment. • Performance efficiency • An input measure of the resource costs associated with goal accomplishment. Management Fundamentals - Chapter 1

18. IN SUMMARY: • Efficiency = Doing this right • Effectiveness = Doing the right things • HIGH PRODUCTIVITY = EFFICIENT + EFFECTIVE Management Fundamentals - Chapter 1

19. Changing nature of organizations • Belief in human capital • Demise of demand and control • Emphasis on teamwork • Pre-eminence of technology • Embrace of networking • New workforce expectations • Concern for work-life balance • Focus on speed http://higheredbcs.wiley.com/legacy/college/schermerhorn/0471454761/assessments/main.html Management Fundamentals - Chapter 1

20. Management Scenarios • Form into groups as per your card. • You have 10 minutes to brainstorm how you will present your scenario. • At least one person must play the role of the manager • Your role play should answer the following question: • How would a good/bad manager deal with this situation? Management Fundamentals - Chapter 1

21. Homework • Read pgs. Of the text book. • Answer the following question in 5 bullet points or 3 sentences: • “How do you like to be managed?” Management Fundamentals - Chapter 1