Chapter 1

Management

Management 6th Edition Chuck Williams

What Would You Do?

Starbucks Headquarters, Seattle, Washington.

Over the last two years, Starbucks closed 800 stores and laid off 25,000 workers as consumers turned to less expensive options such as McDonald's and Dunkin' Donuts. Historically, to make sure that customers didnt camp out at tables, Starbucks charged for wireless access, while competitors did not, or charged less. Paula Rosenblum, of Retail Systems Research, says, [Free Wi-Fi is] a part of Panera's value proposition because I think that they like to increase average transaction value and get loyalty at the same time. How can Starbucks use technology to do a better job of connecting with its customers?

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.

Management Is

Getting work done through others

Efficiency Effectiveness

Management Functions
Management Functions

Planning

Organizing
Leading Controlling
2

Planning
Planning
Determining organizational goals and a means for achieving them

2.1

Organizing
Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom

2.2

Leading
Inspiring

Leading
Motivating

The CEO has a very specific job that only he or she can do: Link the external world with the internal organization. A. G. LAFLEY, FORMER CEO, PROCTER & GAMBLE

2.3

Controlling
Controlling
Monitoring progress toward goal achievement and taking corrective action when needed

2.4

The Control Process

Set standards to achieve goals

Make changes to return performance to standards

Compare actual performance to standards

2.4

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 subroles that managers perform in their jobs.

Kinds of Managers
Top Managers Middle Managers

First-Line Managers
Team Leaders

Top Managers
Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO)

Chief Information Officer (CIO)

3.1

Responsibilities of Top Managers

Creating a context for change Developing commitment and ownership in employees

Creating a positive organizational culture through language and action

Monitoring their business environments
3.1

Middle Managers
Plant Manager

Regional Manager
Divisional Manager

3.2

Responsibilities of Middle Managers

Plan and allocate resources to meet objectives

Coordinate and link groups, departments, and divisions

Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers

3.2

First-Line Managers
Office Manager Shift Supervisor

Department Manager

3.3

Responsibilities of First-Line Managers

Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers

Teach entry-level employees how to do their jobs

Make detailed schedules and operating plans

3.3

Responsibilities of Team Leaders

Facilitate team performance

Manage external relations

Facilitate internal team relationships

3.4

Managerial Roles
Interpersonal
Figurehead
Leader Liaison

Informational
Monitor
Disseminator Spokesperson

Decisional
Entrepreneur

Disturbance Handler
Resource Allocator Negotiator

H. Mintzberg, The Managers Job: Folklore and Fact:. Harvard Business Review, July-August 1975.

Adapted from Exhibit 1.3

Biz Flix: In Good Company

1. Which management skills discussed in this chapter does the character Mark Steckle seem to lack? 2. The sequence shows three people who represent different hierarchical levels in the company. Based on this scene, which of the four kinds of managers do you think each of them might be? 3. Which of the characters in this clip exhibited the strongest human skills?

Watch this clip!

Managerial Roles
Interpersonal Roles
Figurehead Managers perform ceremonial duties

Leader

Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units

Liaison

4.1

Managerial Roles
Informational Roles
Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies

Monitor

Disseminator

Spokesperson

4.2

4.3

Managerial Roles
Decisional Roles
Entrepreneur
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

Disturbance Handler
Resource Allocator Negotiator

What Does It Take to Be a Manager?

After reading the next three sections, you should be able to:
5. 6. 7. explain what companies look for in managers. discuss the top mistakes that managers make in their jobs. describe the transition that employees go through when they are promoted to management.

What Companies Look for in Managers

Technical Skills Human Skills

Conceptual Skills

Motivation to Manage

What Companies Look for in Managers

Skills are more or less important at different levels of management:

Mistakes Managers Make

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

Adapted from Exhibit 1.5 McCall & Lombardo, What Makes a Top Executive? Psychology Today, Feb 1983

The First Year Management Transition

Managers Initial Expectations After Six Months As a Manager
Initial expectations were wrong

After a Year As a Manager

No longer doer Communication, listening, positive reinforcement Learning to adapt and control stress Job is people development

Be the boss Formal authority Manage tasks Job is not managing people

Fast pace
Heavy workload Job is to be problem-solver and troubleshooter

Adapted from Exhibit 1.6

Why Management Matters

After reading this section, you should be able to:

8. explain how and why companies can create competitive advantage through people.

Competitive Advantage through People

Management Practices in Top Performing Companies
1. Employment Security 2. Selective Hiring 3. Self-Managed Teams and Decentralization 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information

Adapted from Exhibit 1.7

Competitive Advantage through People

After 6 years on Fortunes list of Best Companies to Work for, NetApp jumped to the top in 2009. One reason is employees enthusiasm for the companys egalitarian culture.

Competitive Advantage through People

Competitive Advantages of Well-Managed Companies
Sales Revenues Profits

Stock Market Returns

Customer Satisfaction

Web Link

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