chapter

1
Management

McGraw-Hill/Irwin
Principles of Management 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
 1-3

Learning Objectives

1. Describe the basic functions of management

2. Identify where in an organization managers are
located
3. Discuss the challenges people encounter as they
become first-line managers
4. Describe the roles managers adopt to perform the
basic functions of management
5. Outline the competencies managers must have to be
effective
 1-4

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
 1-5

Leaders versus Managers

Process Management Leadership

Vision * Plans and budgets * Set the direction and develops
Establishment * Develops process steps the vision
and set timelines * Develops strategic plans to
achieve the vision
Development * Organizes and staffs * Aligns organization
and * Maintain structure * Communicates the vision,
Networking mission, and direction
Vision * Controls processes * Motivates and inspires
Execution * Identifies problems * Energizes employees to
overcome barriers to change
Vision Outcome * Manages vision order * Promotes useful and dramatic
and predictability changes
* Provides expected results
Source: Adapted from Leadership versus management: Whats the difference?, The Journal for Quality and Participation, 2006
 1-6

Functions of
Management
Planning &
Strategizing

Controlling Organizing

Leading &
Developing
 1-7

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
 1-8

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

Source: Improving Strategic Planning: A McKinsey Survey, The McKinsey Quarterly, September 2006
 1-9

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?
 1 - 10

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
organizations interests
 1 - 11

Benefits & Incentives

1. Performance Bonuses
2. Health Benefits
3. Performance-based Time Off
4. Education and Learning
5. Recognition and Awards
6. Retirement Planning and 401(k)
7. Promotion
8. Child Care and Elder Care Assistance
 1 - 12

Leading & Developing

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.
 1 - 13

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
 1 - 14

Americas Best Leaders

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

 1 - 15

Question

Are the functions of

management only for
managers in
organizations or can they
apply to you as a student
as well? Explain.
 1 - 16

Types of Managers

General
Managers

Functional
Managers

Frontline
Managers
 1 - 17

Question

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.
a. general; functional
b. frontline; general
c. functional; frontline
d. general; frontline
 1 - 18

Multi-divisional
Management Hierarchy
Corporate-level
general managers CEO

Division Division Division Division

R&D Production Marketing Sales

Team

Business-level Team
general managers
Team
Functional
managers
Frontline
managers
 1 - 19

Becoming a Manager

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
 1 - 20

Management Roles
Interpersonal roles
Leader
Figurehead Liaison

Negotiator Managerial Monitor

Resource roles
Allocator Disseminator
Disturbance
handler Spokesperson
Entrepreneur Informational
Decisional roles
roles
 1 - 21

Interpersonal Roles

Roles that involve interacting with other people

inside and outside the organization
Management jobs are people-intensive
Interpersonal roles:
- 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
 1 - 22

Informational Roles

Collecting, Processing and

Disseminating
Roles: Monitor,
disseminator, and
spokesperson
 1 - 23

Decisional Roles

Whereas interpersonal roles deal with people and

informational roles deal with knowledge, decisional roles
deal with action

Decisional roles:
- 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
 1 - 24

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. During the downturn, he focused on cutting waste
and streamlining his airplane production lines
5. He then bet the companys future on a set of new
technologies that are now turning Boeings super
efficient 787 Dreamliner into the hottest-selling
new jetliner in history
Source: Best of 2005, Business Week, December 19, 2005
 1 - 25

Management
Competencies

Motivational
Preferences

Skills Includes Values

 1 - 26

Managerial Skills

Conceptual
Skills

Technical
Skills

Human
Skills
 1 - 27

Managerial Values

Enacted Values
Espoused Values
Shared Values
Ethical Values
 1 - 28

Managerial Motivation

Desire to Compete
Desire to Exercise Power
Desire to be Distinct
Desire to Take Action