Title: Management
1Management
- The complete story
- By
- Norris Dorsey
2Managing In The New Era
- Managerial practices will always separate
effective from ineffective organizations - Four key elements are new elements in business
today
New Era Management
3Managing In The New Era (cont.)
- The Internet
- communication technologies are driving massive
change - initial enthusiasm for e-business has dwindled
- 25 of publicly-held Web companies became
profitable in 2002 - most profitable Web companies sell
information-based products that dont require
shipping - old economy types now using the Internet as a
tool to solidify their future
4Managing In The New Era (cont.)
- Globalization
- far more than in the past, enterprises are global
- competing globally is not easy
- companies often overestimate the attractiveness
of foreign markets - even small firms that do not operate on a global
scale must make strategic decisions based on
international considerations - face intense competition from high-quality
foreign producers
5Managing In The New Era (cont.)
- Knowledge management
- practices aimed at discovering and harnessing an
organizations intellectual resources - unlock peoples expertise, skills, wisdom, and
relationships - intellectual capital is the collective brainpower
of the organization - Collaboration across boundaries
- capitalize on the ideas of people outside the
traditional company boundaries - occurs between as well as within organizations
- e.g., must effectively capitalize on customers
brains
6Managing For Competitive Advantage
- Best managers and companies deliver all four
Competitive Advantage
7Managing For Competitive Advantage(cont.)
- Innovation
- the introduction of new goods and services
- comes from people
- must be a strategic goal
- must be managed properly
- Quality
- excellence of a product, including its
attractiveness, lack of defects, reliability, and
long-term durability - importance of quality has increased dramatically
- catering to customers other needs creates more
perceived quality
8Managing For Competitive Advantage (cont.)
- Speed
- fast and timely execution, response, and delivery
of results - often separates winners from losers in world
competition - requirement has increased exponentially
- Cost competitiveness
- costs are kept low enough so that you can realize
profits and price your products at levels that
are attractive to consumers - key is efficiency - accomplishing goals by using
resources wisely and minimizing waste - little things can save big money
- cost cuts involve tradeoffs
9The Functions Of Management
- Management
- the process of working with people and resources
to accomplish organizational goals - good managers must be
- effective - achieve organizational goals
- efficient - achieve goals with minimum waste of
resources - there are timeless principles of management
- still important for making managers and companies
great - must add fresh thinking and new approaches
10The Functions Of Management (cont.)
- The manager who does not devote adequate
attention and resources to all four functions
will fail
11The Functions Of Management (cont.)
- Planning
- specifying the goals to be achieved and deciding
in advance the appropriate actions taken to
achieve those goals - delivering strategic value - planning function
for the new era - a dynamic process in which the organization uses
the brains of its members and of stakeholders to
identify opportunities to maintain and increase
competitive advantage - process intended to create more value for the
customer
12The Functions Of Management (cont.)
- Organizing
- assembling and coordinating the human, financial,
physical, informational, and other resources
needed to achieve goals - building a dynamic organization - organizing
function for the new era - viewing people as the most valuable resource
- the future requires building flexible
organizations
13The Functions Of Management (cont.)
- Leading
- stimulating people to be high performers
- in the new era, managers must be good at
mobilizing people to contribute their ideas - Controlling
- monitoring progress and implementing necessary
changes - makes sure that goals are met
- new technology makes it possible to achieve more
effective controls - for the future, will have to be able to monitor
continuous learning and changing
14Management Levels
- Top-level managers (strategic managers)
- senior executives responsible for the overall
management and effectiveness of the organization - focus on long-term issues
- emphasize the survival, growth, and effectiveness
of the firm - concerned with the interaction between the
organization and its external environment - titles include Chief Executive Officer (CEO),
Chief Operating Officer (COO), company presidents
and vice presidents
15Management Levels (cont.)
- Middle-level managers (tactical managers)
- located between top-level and frontline managers
in the organizational hierarchy - responsible for translating strategic goals and
plans into more specific objectives and
activities - traditional role was that of an administrative
controller who bridged the gap between higher and
lower levels - provide operating skills and practical problem
solving the keep the company working
16Management Levels (cont.)
- Frontline managers (operational managers)
- lower-level managers who supervise the
operational activities of the organization - directly involved with nonmanagement employees
- increasingly being called on to be innovative and
entrepreneurial - titles include supervisor or sales manager
- Working leaders with broad responsibilities
- in small firms and large firms that have adapted
to the times, managers have strategic, tactical,
and operational responsibilities
17Management Skills
- Skill - specific ability that results from
knowledge, information, and aptitude - Technical skill
- ability to perform a specialized task that
involves a certain method or process - managers at higher levels rely less on technical
skills - Conceptual and decision skills
- ability to identify and resolve problems for the
benefit of the organization - assume greater importance as manager acquires
more responsibility
18Management Skills (cont.)
- Interpersonal and communication skills
- ability to lead, motivate, and communicate
effectively with others - people skills
- important throughout your career at every level
of management
19You And Your Career
- Jobs are no longer as secure for managers as they
used to be - organizations still try to develop and retain
good employees - employee loyalty and commitment are still
important - Companies offering employability to workers
tend to be more successful - provide training and other learning experiences
- employees perform work with greater responsibility
20You And Your Career (cont.)
- Be both a specialist and generalist
- specialist - expert in something
- provide concrete, identifiable value to the firm
- generalist - knowing about a variety of business
functions so that you can understand work with
different perspectives - Be self-reliant
- take responsibility for yourself, your actions,
and your career regardless of where you work - think and act like an entrepreneur
- look for opportunities to contribute in new ways
- generate constructive change
21You And Your Career (cont.)
- Be connected
- establish many good working relationships
- be a team player with strong interpersonal skills
- all business is a function of human relationships
- competitive advantage depends upon you and other
people
22Keys to Career Management
1. Think of yourself as a business. 2. Define
your product What is your area of expertise? 3.
Know your target market To whom are you going
to sell this? 4. Be clear on why your customer
buys from you. What is your value
proposition - what are you offering that causes
him to use you? 5. As in any business,
strive for quality and customer satisfaction,
even if your customer is just someone else
in your organization - like your boss. 6.
Know your profession or field and whats going on
there. 7. Invest in your own growth and
development, the way a company invests in
research and development. What new products will
you be able to provide? 8. Be willing to
consider changing your career.
23You And Your Career (cont.)
- Actively manage your relationship with your
organization - two ways to think about the nature of the
relationships between you and your employer - view yourself as an employee
- model for just getting by
- contributions likely to be minimal
- two-way, mutually-beneficial exchange
relationship - think about how you can contribute and act
accordingly - figure out new ways to add value
- organization likely provide full and fair
rewards, support further personal development,
and offer more gratifying work environment
24Managerial Action Is Your Opportunity To
Contribute
You
Your Organization
25Environmental Analysis
Environment
26Characteristics Of Managerial Decisions
27Characteristics Of Managerial Decisions(cont.)
- Lack of structure
- the usual state of affairs in managerial decision
making - programmed decisions - decisions that have been
encountered and made in the past - have objectively correct answers
- are solvable by using simple rules, policies, or
numerical computations - nonprogrammed decisions - new, novel, complex
decisions having no proven answers - decision maker must create or impose a method for
making the decision
28Characteristics Of Managerial Decisions (cont.)
- Uncertainty and risk
- certainty - have sufficient information to
predict precisely the consequences of ones
actions - uncertainty - have insufficient information to
know the consequences of different actions - cannot estimate the likelihood of various
consequences of their actions - risk - available information permits estimation
of the likelihood of various consequences - probability of an action being successful is less
than 100 percent, and losses may occur - good managers prefer to manage risk
29Characteristics Of Managerial Decisions (cont.)
- Conflict
- opposing pressures from different sources
- occurs at two levels
- psychological conflict - individual decision
makers - perceive several attractive options
- perceive no attractive options
- conflict between individuals or groups
- few decisions are without conflict
30An Overview Of Planning Fundamentals
- Planning
- the conscious, systematic process of making
decisions about goals and activities to be
pursued in the future - importance of formal planning has grown
dramatically - Basic planning process
- Step one situational analysis
- a process planners use, within time and resource
constraints, to gather, interpret, and summarize
all information relevant to the planning issue
under consideration - study past and current conditions, and forecast
future trends - focuses on internal forces and influences from
the external environment
31An Overview Of Planning Fundamentals (cont.)
- Basic planning process (cont.)
- Step two alternative goals and plans
- generate alternative future goals and plans to
achieve them - goals - targets or ends the manager wants to
reach - should be specific, challenging, and realistic
- should be acceptable to those charged with
achieving them - plans - the actions or means intended to achieve
goals - identify alternative actions, needed resources,
and potential obstacles - single use plans - designed to achieve goals that
are unlikely to be repeated in the future - standing plans - designed to achieve an enduring
set of goals - contingency plans - actions to be taken when
initial plans fail or if events in the external
environment require a sudden change
32An Overview Of Planning Fundamentals (cont.)
- Basic planning process (cont.)
- Step three goal and plan evaluation
- evaluate the advantages, disadvantages, and
potential effects of each alternative goal and
plan - prioritize those goals
- consider the implications of alternative plans
- Step four goal and plan selection
- identify the priorities and trade-offs among
goals and plans - leads to a written set of goals and plans that
are appropriate and feasible within a predicted
set of circumstances - scenario - narrative that describes a set of
future conditions - a contingency plan is attached to each scenario
33An Overview Of Planning Fundamentals (cont.)
- Basic planning process (cont.)
- Step five implementation
- plans are useless unless they are implemented
properly - managers must understand the plan, have the
necessary resources, and be motivated to
implement it - implementation likely to be more successful if
managers and employees have participated in the
previous planning steps - the plan should be linked to other systems in the
organization - Step six monitor and control
- must continually monitor the actual performance
in relation to the goals and plans - develop control systems to take corrective action
34Decision-Making Stages And Formal Planning Steps
General decision- making stages
Specific formal planning steps
35An Overview Of The HR Planning Process
36The Global Environment
- Global environment
- becoming more integrated than ever before
- World Trade Organization (WTO)
- rules apply to over 90 percent of international
trade - has 144 member nations, including China
- moved from reducing tariffs to eliminating
nontariff barriers - International Monetary Fund (IMF)
- established by the United Nations
- has 184 member countries
37The Global Environment (cont.)
- European unification
- European Union (EU)
- allows goods, services, capital, and human
resources to flow freely across national borders - goal is to strengthen Europe as an economic
superpower - Maastrict Treaty
- agreement to adopt a common European currency
- Euro
- impact of EU is hard to predict
- Fortress Europe may restrict trade with
countries outside of the EU
38The Global Environment (cont.)
- Pacific Rim
- important economic players include Japan and
China - four tigers - Korea, Taiwan, Singapore, and Hong
Kong - Asia-Pacific Economic Cooperation (APEC)
- trying to
- reduce trade barriers
- establish general rules for investment
- develop policies that encourage foreign
investment - holds promise in facilitating and strengthening
international business relationships - member countries represent 40 percent of the
worlds population and 50 percent of the worlds
economic output
39The Global Environment (cont.)
- North America
- North American Free Trade Agreement (NAFTA)
- an economic pact that combined the economies of
the U.S., Canada, and Mexico - constitutes the worlds largest trading bloc
- provides access to previously protected markets
in each country - Mexico will have to bolster its infrastructure
and take care of troubling environmental issues - Border Environment Cooperation Commission (BECC)
- addresses environmental concerns of communities
on the border
40The Global Environment (cont.)
- Rest of the world
- globalization has left out three huge,
high-potential regions - Middle East
- Africa
- Latin America
- these regions have a major share of the earths
natural resources
41Conventional Organization Chart
42The Vertical Structure (cont.)
- Delegation
- assignment of authority and responsibility to a
subordinate - can occur between any two individuals in any type
of structure with regard to any task - responsibility - assignment of a task that an
employee is supposed to carry out - should delegate enough authority to complete the
task - accountability - expectation that employees
perform a job, take corrective action when
necessary, and report upward on the status and
quality of their performance - managers remain responsible and accountable for
their own actions and those of their subordinates
43The Vertical Structure (cont.)
- Delegation (cont.)
- advantages of delegation
- permits getting work done through others
- manager saves time
- manager frees herself/himself to devote energy
to other important, higher-level activities - provides subordinates with more important jobs
- provides subordinates with the opportunity to
develop new skills and to demonstrate potential - from the organizations perspective, jobs are
done more efficiently and cost-effectively
44Steps In Effective Delegation
45Diversity Today
- Diversity
- broad term used to refer to all kinds of
differences - members of different groups share common values,
attitudes, and perceptions - there is still much diversity within each group
- U.S. businesses must learn to manage a diverse
workforce - Managing diversity
- must be aware of characteristics common to a
group - must manage employees as individuals
- must support, nurture, and utilize these
differences to the organizations advantage
46Components Of A Diversified Workforce
Gender
Age
Racial and ethnic minorities in the United States
Other Religious affiliation Veteran
status Sexual orientation Expectations and
values Lifestyle Skill level Educational
level Economic class Workstyle Function and/or
position within the company
Immigrants
Physically and mentally disabled
47How Effective Is Your Diversity Program?
Very Effective 8
Somewhat ineffective
Effective 22
8
48Diversity Today (cont.)
- Size of the workforce
- U.S. civilian labor force is expected to reach
158 million by 2010 - slowing in both the number of people joining the
labor force and the rate of labor force growth - U.S. traditionally had a surplus of labor
- number of jobs created expected to exceed the
growth of the labor force - employers likely to outsource some work
49Diversity Today (cont.)
- Workers of the future
- until recently, white, American born males
dominated the U.S. workforce - now, they only account for 15 percent of the net
growth
50Women In The Workforce
- Women make up about 47 percent of the workforce
- 99 percent of women will work for pay at some
point in their lives - Overall labor force participation rate of women
continues increasing while the participation rate
of men declines - The long-term increase in the female labor force
largely reflects the greater frequency of paid
work by mothers - Today, 40 percent of multiple job holders are
women - One of every five married women who works outside
the home earns more than her husband
51Minorities And Immigrants
- Nonwhites make up about one-third of the growth
rate in the workforce - Ethnic Americans now comprise nearly 25 percent
of the total population - By 2020, most of Californias entry-level workers
will be Hispanic - English has become the second language for much
of the population in California, Texas, and
Florida - The number of foreign-born U.S. residents is at
its highest level in U.S. history (one in ten
residents) - The younger Americans are, the more likely they
are to be persons of color - 6.8 million people in the U.S. identify
themselves as multiracial
52Percentage Of Minority Managers
53Vision
- Vision
- a mental image of a possible and desirable future
state of the organization - having a vision and communicating it to others
are essential components of great leadership - the best visions are both
- ideal - communicates a standard of excellence and
clear choice of positive values - unique - communicates and inspires pride in being
different from other organizations
54Vision (cont.)
- Important points about visions
- a vision is necessary for effective leadership
- a person or team can develop a vision for any job
- many people, including managers who do not
develop into strong leaders, do not develop a
clear vision - Visions can be inappropriate
- may reflect merely the leaders personal needs
- may ignore stakeholders needs
- the vision must change when circumstances change
55Leading And Managing
- Ability to lead effectively sets excellent
managers apart from average ones - managers deal with ongoing organizational
activities - planning and budgeting routines, structuring the
organization - leadership includes orchestrating organizational
change - creating a vision for the firm and inspiring
people to attain it - management and leadership are both vitally
important - supervisory leadership - provides guidance,
support, and corrective feedback for day-to-day
activities of work unit members - strategic leadership - gives purpose and meaning
to organizations
56Leading And Following
- Organizations succeed or fail because of how well
followers follow - effective followers
- are capable of independent thinking
- are actively committed to organizational goals
- are enthusiastic about ideas and purposes beyond
their own self interest - master skills that are useful to the organization
- hold performance standards that are higher than
required
57Power And Leadership
- Power
- ability to influence other people
- Sources of power
- legitimate power - leader has organizational
authority - employees are obligated to comply with legitimate
orders - reward power - leader has control over valued
rewards - coercive power - leader has control over
punishments - referent power - leader has personal
characteristics that appeal to others and make
them desirous of the leaders approval - expert power - leader has knowledge that others
feel will be of benefit to them
58Sources Of Power
Power
59Traditional Approaches To Understanding
Leadership
- Leader traits
- trait approach - focussed on individual leaders
to determine the personal characteristics that
great leaders share - characteristics that distinguish effective
leaders - drive - characteristics that reflect a high level
of effort - leadership motivation - they want to lead
- integrity - actions correspond to words
- self-confidence - expectation that one is able to
overcome obstacles and make good decisions in the
face of uncertainty - knowledge of the business - ability to interpret
information - ability to perceive the needs of others and to
adjust ones behavior accordingly
60Traditional Approaches To Understanding
Leadership (cont.)
- Leader behaviors
- behavioral approach - sought to identify what
behaviors good leaders exhibit - task performance - leaders efforts to ensure
that the work unit reaches its goals - focus on work speed, quality and quantity of
output, and rules - group maintenance - actions taken to ensure
satisfaction - develop and maintain harmonious work
relationships - leader-member exchange theory - focuses on the
leaders behavior toward individuals - focus is primarily on group maintenance behaviors
- potential for cross-cultural differences
61Traditional Approaches To Understanding
Leadership (cont.)
- Leader behaviors (cont.)
- participation in decision making - leader
behaviors that managers perform in involving
their employees in making decisions - autocratic leadership - makes decisions and then
announces them to the group - democratic leadership - solicits input from
others - uses consensus or majority vote to make the final
choice
62Traditional Approaches To Understanding
Leadership (cont.)
- Leader behaviors (cont.)
- effects of leader behavior
- decision styles
- democratic approach resulted in the most positive
attitudes - autocratic approach resulted in somewhat higher
performance - laissez-faire - leadership philosophy
characterized by an absence of managerial
decision making - characteristics of the situation, leader, and the
follower determine the appropriate
decision-making style
63Behaviors That Companies Want Employees To Exhibit
Companies must motivate workers to
64Setting Goals
- Goal setting theory
- people have conscious goals that energize them
and direct their thoughts and behaviors toward a
particular end - Goals that motivate
- goals should be acceptable to employees
- goals should be challenging but attainable
- goals should be specific, quantifiable, and
measurable - Limitations of goal setting
- individualized goals create competition and
reduce cooperation - single productivity goals interfere with other
dimensions of performance
65The Consequences Of Behavior
Behavior
66Understanding Peoples Needs
- Content theories
- indicate the kinds of needs that people want to
satisfy - the extent to which and the ways in which a
persons needs are met or not met affect her/his
behavior on the job - Maslows need hierarchy
- human needs are organized into five major types
- physiological - food, water, sex, and shelter
- safety or security - protection against threat
and deprivation - social - friendship, affection, belonging, and
love - ego - independence, achievement, freedom,
recognition, and self-esteem - self-actualization - realizing ones potential
67Understanding Peoples Needs (cont.)
- Maslows need hierarchy (cont.)
- postulates that people satisfy these needs one at
a time, from bottom to top - people motivated to satisfy lower needs before
they try to satisfy higher needs - once satisfied, a need is no longer a powerful
motivator - not altogether accurate theory of human
motivation - nonetheless, made three major contributions
- identified important need categories
- helped to think in terms of lower- and
higher-level needs - increased salience of personal growth and
self-actualization
68Understanding Peoples Needs (cont.)
- Alderfers ERG theory
- postulates that people have three basic need sets
- Existence needs - material and physiological
desires - Relatedness needs - involve relationships with
other people - satisfied by the process of mutually sharing
thoughts and feelings - Growth needs - motivate people to productivity or
creativity - satisfied by fully utilizing personal capacities
and developing new capacities - postulates that several different needs can be
operating at once - has greater scientific support than Maslows
hierarchy - both theories remind managers of the types of
reinforcers or rewards that can be used to
motivate people
69Comparison Of Maslows Need Hierarchy And ERG
Theory
70The Contributions Of Teams
Effects on organizations
71Benefits Of Groups
- Benefits derived by organizations
- groups have greater total resources than
individuals do - groups have a greater diversity of resources
- groups can aid decision making
- Benefits derived by members
- a group is a useful learning mechanism
- a group can satisfy important personal needs
- group members can provide one another with
feedback - identify opportunities for growth and development
- train, coach, and mentor
72The New Team Environment
- Definitions
- working group - collection of people who work in
the same area or have been drawn together to
undertake a task - do not necessarily come together as a unit and
achieve significant performance improvements - team - small number of people with complementary
skills who are committed to a common purpose,
common performance goals, and a common approach
for which they hold themselves mutually
accountable - real teams are more fully integrated into the
organizational structure - authority of teams is increasing
73The New Team Environment
- Managers determine and plan the
- work
- Jobs are narrowly defined
- Cross-training is viewed as
- inefficient
- Most information is management
- property
- Training for nonmanagers focuses
- on technical skills
- Risk taking is discouraged and
- punished
- People work alone
- Rewards based on individual
- performance
- Managers determine best methods
- Managers and teams jointly determine
- and plan the work
- Jobs require broad skills and knowledge
- Cross-training is the norm
- Most information is freely shared
- Continuous learning requires training
- for all
- Encourage and support measured risk
- taking
- People work together
- Rewards based on contributions to the
- team and individual performance
- Everyone works to improve methods
- and processes
74Improving Communication Skills
- Improving sender skills
- presentation and persuasion skills
- redundancy - state your viewpoint in a variety of
ways - powerful messages are simple and informative
- writing skills - require clear, logical thinking
- strive for clarity, organization, readability,
and brevity - first draft rarely is as good as it could be
- be critical of your own writing
- language - word choice can enhance or interfere
with communications - consider the receivers background and adjust
your language - learn something about foreign language for
overseas business
75Improving Communication Skills (cont.)
- Nonverbal skills
- signals other than those that are spoken or
written - can support or undermine the stated message
- nonverbal cues may make a greater impact than
other signals - can send a positive message with nonverbal
signals by - using time appropriately
- arranging the office to foster open communication
- remembering your body language
- facial expression and tone of voice
- Nonverbal signals in different countries
- need to correctly interpret the nonverbal signals
of others
76Improving Communication Skills (cont.)
- Improving receiver skills
- listening - good listening is difficult and not
nearly as common as needed - reflection - process by which a person states
what s/he believes the other person is saying - listening begins with personal contact
- good listening leads to development of trust
- listening more important for innovation than for
routine work - reading - reading mistakes are common and costly
- read memos promptly and carefully
- note important points for later referral
- read materials outside of your immediate concerns
77Ten Keys To Effective Listening
1. Find an area of interest 2. Judge
content, not delivery 3. Hold your fire 4.
Listen for ideas 5. Be flexible 6. Resist
distraction 7. Exercise your mind 8. Keep
your mind open 9. Capitalize on thought
speed 10. Work at listening
78Managing Change
- Organizational change is managed effectively
when - the organization is moved from its current state
to a planned future state - the change works as planned
- the transition is accomplished without excessive
costs to the organization or to individual
organizational members - People are the key to successful change
- people must take an interest and active role in
helping the organization as a whole - permanent rekindling of individual creativity and
responsibility should be a consequence of change
79Managing Change (cont.)
- Motivating people to change
- people must be motivated to change
- people often resist change
- general reasons for resistance - arise regardless
of the content of the change - inertia - people dont want to disturb the status
quo - timing - managers should introduce change when
people are receptive - surprise - resistance is likely when change is
sudden, unexpected, or extreme - peer pressure - work teams may band together in
opposition to change
80Managing Change (cont.)
- Motivating people to change (cont.)
- change-specific reasons for resistance - arise
from the specific nature of a proposed change - self-interest - fear that something of value will
be lost - misunderstanding - people may resist because they
dont fully understand the purpose of the change - different assessments - employees receive
different - and usually less - information than
management receives - such discrepancies in knowledge cause people to
develop different assessments of proposed changes - management tactics - many fail to commit
employees to change - force the change on employees
- do not provide the necessary resources,
knowledge, or leadership
81Reasons For Resistance To Change
General Reasons For Resistance
Resistance to Change
Change-specific Reasons for Resistance
82Implementing Change
Unfreezing (breaking from the old ways of doing
things)
83Characteristics Of Controls