chapter

Management

McGraw-Hill/Irwin Principles of Management

2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Learning Objectives
1. Describe the basic functions of management 2. Identify where in an organization managers are located 3. Discuss the challenges people encounter as they become first-line managers 4. Describe the roles managers adopt to perform the basic functions of management 5. Outline the competencies managers must have to be effective

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Management and Managers

Management: The art of getting things done through people in the organization
Managers give organizations a sense of purpose and direction Managers create new ways of producing and distributing goods and services Managers change how the world works through their actions

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Leaders versus Managers

Process Management Leadership * Set the direction and develops the vision * Develops strategic plans to achieve the vision

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Vision * Plans and budgets Establishment * Develops process steps and set timelines

Development and Networking

Vision Execution

* Organizes and staffs * Maintain structure

* Controls processes * Identifies problems

* Aligns organization * Communicates the vision, mission, and direction

* Motivates and inspires * Energizes employees to overcome barriers to change

Vision Outcome * Manages vision order * Promotes useful and dramatic and predictability changes * Provides expected results
Source: Adapted from Leadership versus management: Whats the difference?, The Journal for Quality and Participation, 2006

Functions of Management
Planning & Strategizing

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Controlling

Organizing

Leading & Developing

Planning & Strategizing

Planning a formal process whereby managers choose goals, identify actions, allocate responsibility for implementing actions, measuring the success of actions, and revising plans
Planning is used to develop overall strategies

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A strategy is an action that managers take to attain the goals

Planning goes beyond strategy development to include the regulation of a wide variety of organizational activities Strategizing the process of thinking through on a continual basis what strategies an organization should pursue to attain its goals

Who Makes the Strategic Decisions?

By Senior Group including CEO With Formal Strategic Planning Process By Business Unit Leaders By CEO or Equivalent By Others

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Source: Improving Strategic Planning: A McKinsey Survey, The McKinsey Quarterly, September 2006

Organizing
Organizing involves deciding:
Who will perform the task? Where will decisions be made? Who reports to whom? How will different parts of the organization fit together to accomplish the common goal?

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Controlling
The process of monitoring performance against goals, intervening when goals are not met, and taking corrective action
First step Drafting plans Important aspect is creating incentives that align employees and organizations interests

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Benefits & Incentives

1. 2. 3. 4. 5. 6. 7. 8. Performance Bonuses Health Benefits Performance-based Time Off Education and Learning Recognition and Awards Retirement Planning and 401(k) Promotion Child Care and Elder Care Assistance

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Leading & Developing

Leading is the process of motivating, influencing, and directing others in the organization to work productively in pursuit of organization goals.
Developing employees the task of hiring, training, mentoring, and rewarding employees in an organization, including other managers.

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Skilled Leaders:
Drive strategic thinking
Have a plan for organization Proactively structure the organization Exercise control with a deft hand Use the right kind of incentives

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Get the best out of people

Build a high-quality team

Americas Best Leaders

Steve Jobs, Apple, Pixar Alan Mulally, Boeing Commercial Airplanes Terry Semel, Yahoo! A.G. Lafley, Procter & Gamble Kim Shin Bae, SK Telecom
Source: Best of 2005, Business Week, December 19, 2005

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Question
Are the functions of management only for managers in organizations or can they apply to you as a student as well? Explain.

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Types of Managers

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General Managers

Functional Managers

Frontline Managers

Question

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Dr. John Alexander is the Chair of the Management Department at Global University with their main campus in New York, USA. The President of the university is Dr. Kim Kerry. John can be described as a ________ manager whereas Kim is a _______ manager.
a. b. c. d. general; functional frontline; general functional; frontline general; frontline

Multi-divisional Management Hierarchy

Corporate-level general managers
Division R&D Production Team CEO Division Marketing Division Sales Division

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Business-level general managers Functional managers Frontline managers

Team Team

Becoming a Manager
From Specialist to Manager
- Journey begins when people are successful at a specialist task that they were hired to do - Need to be able to get things done through other people

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Mastering the Job

- Tends to be a large difference between expectations and reality - Workload is tremendous - Biggest challenge within the first year = People challenges

Management Roles
Interpersonal roles
Leader
Figurehead Liaison

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Negotiator
Resource Allocator Disturbance handler

Managerial roles

Monitor Disseminator

Spokesperson

Decisional roles

Entrepreneur

Informational roles

Interpersonal Roles
Roles that involve interacting with other people inside and outside the organization
Management jobs are people-intensive

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Interpersonal roles:
- Figureheads: Greet visitors, Represent the company at
community events, Serve as spokespeople, and Function as emissaries for the organization - Leader: Influence, motivate, and direct others as well as strategize, plan, organize, control, and develop - Liaison: Connect with people outside their immediate unit

Informational Roles

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Collecting, Processing and Disseminating Roles: Monitor, disseminator, and spokesperson

Decisional Roles

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Whereas interpersonal roles deal with people and informational roles deal with knowledge, decisional roles deal with action Decisional roles:
- Entrepreneur: Managers must make sure their organizations innovate, change, develop, and adopt - Disturbance handler: Addressing unanticipated problems as they arise and resolving them expeditiously - Resource allocator: How best to allocate scarce resources - Negotiator: Negotiation is continual for managers

Alan Mulalley, CEO Boeing Commercial Airplanes

Decisional Roles:
1. After September 11 attacks, Mulalley had to renegotiate delivery of some 500 airplanes 2. Cut jet production by more than half 3. Fire 27,000 workers 4. During the downturn, he focused on cutting waste and streamlining his airplane production lines 5. He then bet the companys future on a set of new technologies that are now turning Boeings super efficient 787 Dreamliner into the hottest-selling new jetliner in history
Source: Best of 2005, Business Week, December 19, 2005

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Management Competencies
Motivational Preferences

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Skills

Includes

Values

Managerial Skills

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Conceptual Skills

Technical Skills

Human Skills

Managerial Values
Enacted Values Espoused Values Shared Values Ethical Values

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Managerial Motivation

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Desire to Compete Desire to Exercise Power Desire to be Distinct

Desire to Take Action