m a n a g e m e n t 2e

Hitt/Black/Porter

Chapter 1: The Nature of Management

PowerPoint slides by Susan A. Peterson, Scottsdale Community College

Learning Objectives
After studying this chapter, you should be able to:
Define the term management Explain the major challenges with which managers must deal Describe how historical research on management has contributed to the current practice of management

Identify and discuss the primary managerial functions

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Learning Objectives
Explain the three general roles involved in managerial work and the specific roles within each
Explore and describe the three dimensions of managerial jobs Discuss the primary skills required to be an effective manager

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What is Management?

Management is a process that involves: Assembling and using sets of resources Acting in a goal-directed manner to accomplish tasks Activities carried out in an organizational setting

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Managerial Challenges
Managing Change

Managing Entrepreneurially

Managerial Challenges

Managing Resources

Managing Strategically

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Managerial Challenges: Managing Change

Managing change:
Is the most persistent, pervasive and powerful challenge for managers

Requires managers to gain employee acceptance

Two causes of change:

Technology
Globalization

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Managerial Challenges: Managing Resources

Managers must manage resources, including: Financial capital Human resources Physical resources Technology

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Managerial Challenges: Managing Strategically

Managers must: Develop strategies to achieve the organizations goals Implement the strategies effectively by managing human resources

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Managerial Challenges: Managing Entrepreneurially

Managing entrepreneurially involves:
Searching for new opportunities Identifying new ideas for new markets Emphasizing actions to take advantage of uncertainty

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Historical Approaches to Management

Ancient China and art of warfare Ancient Egypt and building of pyramids Roman Empire and building of roads and viaducts Industrial Revolution and modern management

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What Managers Do
Managerial activities differ by:

The functions managers

serve
The roles in which managers operate The dimensions of each managers job

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Managerial Functions

Planning Controlling

Organizing

Managing

Directing
Adapted from Exhibit 1.1
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Planning
Planning involves:
Estimating future conditions and circumstances Making decisions based on these estimations about what work is to be done: - By the manager

- By all of those for whom she or he is responsible

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Organizing
Organizing involves paying attention to: The structure of relationships among positions The people occupying those positions Linking that structure to the overall strategic direction of the organization

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Directing
Directing is the process of influencing other people to attain organizational objectives: Motivating others
Interacting effectively in group and team situations Communicating in support of others efforts

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Controlling
Regulating the work of those for whom a manager is responsible, including: Setting standards of performance in advance Monitoring ongoing (real-time) performance Assessing a completed performance Results of the control process (evaluation) are fed back to the planning process
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Managerial Roles
Interpersonal Roles

Figurehead

Leader

Liaison

Figurehead: attending ceremonial activities

Leader: influencing or directing others

Liaison: contacting others outside the formal chain of command

Adapted from Exhibit 1.2

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Managerial Roles
Informational Roles

Monitor

Disseminator

Spokesperson

Monitor: seeking information to be aware of crucial developments Disseminator: receiving and sending information Spokesperson: representing the views of the unit for which he/she is responsible

Adapted from Exhibit 1.2

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Managerial Roles
Decisional Roles Disturbancehandler Resourceallocator

Entrepreneur

Negotiator

Entrepreneur: exploring new opportunities

Disturbance-handler: acting as a judge or problem solver in conflicts among employees

Resource-allocator: deciding how resources will be distributed Negotiator: making accommodations with other units
Adapted from Exhibit 1.2
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Managerial Job Dimensions

Activities or duties that must be carried out
Standards or levels of minimum performance that must be met

Demands

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Managerial Job Dimensions

Factors that limit the response of the manager:
Time Budgets

Demands

Constraints

Technology Attitudes of subordinates

Legal regulations

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Managerial Job Dimensions

Discretionary behavior

Demands

How work is to be done How much work is to be done

Constraints

Who will do the work What initiatives will be undertaken from almost infinite possibilities

Choices

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Two Managerial Jobs

Job A: Project Team Manager Job B: Fast Foods Restaurant Manager
Maintain attractive appearance of restaurant
Keep employee costs as low as possible Meet standards for speed of service

Demands

Develop new product with strong market appeal

Hold formal weekly progress meeting with boss Frequent travel to other company sites

Adapted from Exhibit 1.3

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Two Managerial Jobs

Job A: Project Team Manager Job B: Fast Foods Restaurant Manager
Most employees have limited formal education Few monetary incentives to reward outstanding performance Federal and state health and safety regulations

Constraints

12 month deadline for product development Project budget limit of $1 million No choice in selecting team members

Adapted from Exhibit 1.3

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Two Managerial Jobs

Job A: Project Team Manager Job B: Fast Foods Restaurant Manager
Selection of employee to promote to supervisor Scheduling of shifts and assignments Local advertising promotions

Choices

The organizational structure of the project team Sequencing of project tasks Budget allocation

Adapted from Exhibit 1.3

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What Skills Do Managers Need?

TECHNICAL SKILLS Specialized knowledge (Including when and how to use the skills)

INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy

CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities

Adapted from Exhibit 1.4
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Importance of Managerial Skills at Different Organizational Levels

High

Interpersonal skills

Importance

Technical skills Conceptual skills

Low
Entry-Level Managers Mid-Level Managers Top-Level Managers
Adapted from Exhibit 1.5
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Who Succeeds? Who Doesnt?

Potential leaders share traits early on: Bright, with outstanding track records Those who dont quite make it: Have been successful, but generally only in one area or type of job. Those who succeed:

Have diverse track records, demonstrated ability in many different situations, and a breadth of knowledge of the business or industry. Maintain composure in stressful situations, are predictable during crises, are regarded as calm and confident.

Have survived stressful situations

Often described as moody or volatile. May be able to keep their temper with superiors during crises but are hostile toward peers and subordinates.

Adapted from Exhibit 1.6

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Who Succeeds? Who Doesnt?

Potential leaders share traits early on: Have a few flaws Those who dont quite make it: Cover up problems while trying to fix them. If the problem cant be hidden, they tend to go on the defensive and even blame someone else for it. Micromanage a position, may staff with the incorrect people or neglect the talents they have, depend on a single mentor. Those who succeed:

Make a few mistakes, but when they do, they admit to them and handle them with poise and grace.

Ambitious and oriented toward problem solving

Keep their minds focused on the next position, develop competent successors, seek advice from many sources.
Adapted from Exhibit 1.6

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Who Succeeds? Who Doesnt?

Potential leaders share traits early on: Good people skills Those who dont quite make it: May be viewed as charming but political or direct but tactless, cold, and arrogant. People dont like to work with them Those who succeed:

Can get along well with different types of people, are outspoken without being offensive, are viewed as direct and diplomatic.

Adapted from Exhibit 1.6

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