McGraw-Hill/Irwin Principles of Management

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Management

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

Learning Objectives

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1.

2.

3.

4.

5.

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

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

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Process Vision Establishment Development and Networking Vision Execution Management * Plans and budgets * Develops process steps and set timelines * Organizes and staffs * Maintain structure * Controls processes * Identifies problems Vision Outcome * Manages vision order and predictability * Provides expected results Leadership * Set the direction and develops the vision * Develops strategic plans to achieve the vision * Aligns organization * Communicates the vision, mission, and direction * Motivates and inspires * Energizes employees to overcome barriers to change * Promotes useful and dramatic changes Source: Adapted from “Leadership versus management: What’s the difference?”, The Journal for Quality and Participation, 2006

Controlling

Functions of Management

Planning & Strategizing Organizing 1 - 6 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 • 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

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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 1 - 8

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 organization’s interests

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Benefits & Incentives

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2.

3.

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6.

7.

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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

Leading & Developing

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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.

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 • Get the best out of people • Build a high-quality team

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America’s Best Leaders

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• 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

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

1 - 16 General Managers Functional Managers Frontline Managers

Question

• a.

b.

c.

d.

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.

general; functional frontline; general functional; frontline general; frontline

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Multi-divisional Management Hierarchy

Corporate-level general managers

Division R&D

Business-level general managers Functional managers Frontline managers

Production CEO Division Marketing Division Sales Division Team Team Team

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Becoming a Manager

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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 •

Mastering the Job

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

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Management Roles

Interpersonal roles

Leader Figurehead Liaison Negotiator Managerial Resource Allocator Disturbance handler

Decisional roles

Entrepreneur roles Monitor Disseminator Spokesperson

Informational roles

Interpersonal Roles

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Roles that involve interacting with other people inside and outside the organization

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Management jobs are people-intensive

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Interpersonal roles:

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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

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Informational Roles

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Collecting, Processing and Disseminating

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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

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Decisional roles:

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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

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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.

5.

During the downturn, he focused on cutting waste and streamlining his airplane production lines He then bet the company’s future on a set of new technologies that are now turning Boeing’s 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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Skills Management Competencies Motivational Preferences Includes Values

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Managerial Skills

1 - 26 Conceptual Skills Technical Skills Human Skills

Managerial Values

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Enacted Values

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Espoused Values

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Shared Values

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Ethical Values

Managerial Motivation

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Desire

to Compete

Desire

to Exercise Power

Desire

to be Distinct

Desire

to Take Action