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Chapter 1Management

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What is management?

After reading the next two sections,

you should be able to:

1. Describe what management is.

2. Explain the four functions of management.

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Management is

Effectiveness

Efficiency

Getting workdone throughothers

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Management functions

Planning

Organising

Leading

Controlling

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Planning

Determining organisational goalsand a means for achieving them.

Determining organisational goalsand a means for achieving them.

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Deciding where

decisions will be made.

Who will do what jobs

and tasks.

Who will work for

whom.

Organising

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Leading

Motivating

Inspiring

Leading

For Anne Mulcahy, CEO of Xerox, the key to successful leadership

is communicating with the companys most important constituents:

employees and customers.

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Controlling

Monitoring progress toward goal

achievement and taking correctiveaction when needed.

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The control processSet standards to

achieve goals

Compare actual

performance tostandards

Make changes

to returnperformance to

standards

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What do managers do?

After reading the next two sections,

you should be able to:

3. Describe different kinds of managers.

4. Explain the major roles and sub-roles that

managers perform in their jobs.

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Kinds of managers

Top managers

Middle managers

First-line managers

Team leaders

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Top managers

Chief Executive Officer (CEO)

Chief Operating Officer (COO)

Chief Financial Officer (CFO)

C

hief Information Officer (C

IO)

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Responsibilities of top managers

Creating a context for change.Creating a context for change.

Developing commitment

and ownership in employees.

Developing commitment

and ownership in employees.

Creating a positive organisational

culture through language and action.

Creating a positive organisational

culture through language and action.

Monitoring their business environments.Monitoring their business environments.

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Middle managers

Factory manager

Regional manager

Divisional manager

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Responsibilities of middle managers

Coordinate and link groups, departments and

divisions.

Coordinate and link groups, departments and

divisions.

Monitorand manage the performance

of sub-units and managers who report to them.

Monitorand manage the performance

of sub-units and managers who report to them.

Implement changes or strategiesgenerated by top managers.

Implement changes or strategiesgenerated by top managers.

Plan and allocate resources to meet objectives.Plan and allocate resources to meet objectives.

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First-line managers

Office manager

Shift supervisor

Department manager

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Responsibilities of first-line managers

Manage the performance of entry-level employees.Manage the performance of entry-level employees.

Encoura

ge, monitora

nd rewa

rd the performa

nceof workers.Encoura

ge, monitora

nd rewa

rd the performa

nceof workers.

Teach entry-level employees how to do their jobs.Teach entry-level employees how to do their jobs.

Make detailed schedules and operating plans.Make detailed schedules and operating plans.

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Responsibilities of team leaders

Facilitate team performance.Facilitate team performance.

Facilitate internal team relationships.Facilitate internal team relationships.

Manage external relations.Manage external relations.

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Mintzbergs managerialroles

H. Mintzberg, The Nature of Managerial Work. (New York: Harper & Row, 1973).

Interpersonal Informational Decisional

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance

handler

Resource

allocator

Negotiator

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Managerialroles

Figurehead

Leader

Liaison

Managers perform ceremonial duties.

Managers motivate and encourage

workers to accomplish objectives.

Managers deal with people outsidetheir units.

Interpersonal roles

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Managerialroles

Monitor

Disseminator

Spokesperson

Managers scan their environment

for information.

Managers share information

with others in their company.

Managers share informationwith others outside their

departments or companies.

Informational roles

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Entrepreneur

Disturbance

handler

Resource

allocator

Negotiator

Managerialroles

Managers adapt to incremental change.

Managers respond to problems that

demand immediate action.

Managers decide who gets

what resources.

Managers negotiate schedules,

projects, goals, outcomes, resources

and raises.

Decisional roles

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Managers quickresponse

saves clients

AnneMulcahy, CEO of Xerox, took over whenthe company was US$17.1 billion in debt.

Anne travelled, sometimes to two or threecities per day, imploring staff to watch costsand keep selling.

Thanks to motivational actions, Xerox has now

returned to profitability and financial stability.

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What does it take to be a manager?

After reading the next three sections,

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 gothrough when they are promoted to

management.

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What companies look for in managers

Technical skillsTechnical skills Human skillsHuman skills

Conceptual skillsConceptual skills Motivation to manageMotivation to manage

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Management skills

Skills are more or less important at different levelsof management:

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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

Adapted from McCall & Lombardo, What Makes a Top Executive? PsychologyToday, Feb 1983.

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Transition to management (the first year)

Be the boss

Form

alauthority

Manage tasks

Job is not

managing people

Initial expecta-

tions were wrong

Fast pace

Heavy workload

Job is to be

problem-solver

and troubleshooter

No longer doer

Communication,

listening, positive

reinforcement

Learning to adapt

and control stress

Job is about peopledevelopment

Managers

initial expectations

After six monthsas a manager

Aftera yearas a manager

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Why management matters

After reading this section,

you should be able to:

8. Explain how and why companies can create

competitive advantage through people.

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Management practices in top performing companies

Competitive advantage through people

1. Employment security

2. Selective hiring

3. Self-managed teams and decentralisation

4. High wages contingent on organisational performance

5. Training and skill development

6. Reduction of status differences

7. Sharing information

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Competitive advantage through people

People who worked for companies on

Fortunes list of 100 Best Companies to

Work For are consistently moresatisfied with their jobs. These

differences strongly relate to stock

market performance.

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Competitive advantage through people

Competitive advantages ofwell-managed companies

Competitive advantages ofwell-managed companies

Sales revenues

Profits

Customer satisfaction

Stock market returns