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Management, 9/eJohn R. Schermerhorn, Jr.
Chapter 1:
Prepared by: Jim LoPresti
University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.
Chapter 1: Introducing Management
Planning Ahead — Chapter 1 Study Questions
�What are the challenges of working in the new economy?
�What are organizations like in the new workplace?
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new workplace?
�Who are managers and what do they do?
�What is the management process?
�How do you learn the essential managerial skills and competencies?
Overview of the New Workplace
� A highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties.
� Smart people and smart organizations create their own futures.
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their own futures.
� Companies with a future are committed to people.
� Companies with a future have high performance expectations and provide supportive work environments.
� High performing companies gain extraordinary results from people.
Study Question 1: What are the challenges of
working in the new economy?
� Intellectual capital …
� People are the the ultimate foundations of organizational performance.
� Intellectual capital is the collective
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� Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value.
� A knowledge worker adds to the intellectual capital of an organization.
Study Question 1: What are the challenges of
working in the new economy?
�Globalization …
� National boundaries of world business
have largely disappeared.
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� Globalization is the worldwide
interdependence of resource flows,
product markets, and business
competition that characterize the new
economy.
Study Question 1: What are the challenges of
working in the new economy?
� Technology …
� Continuing transformation of the modern workplace through:
� The Internet
World Wide Web
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� World Wide Web
� Computer networking
� Information technology
� Telecommuting/virtual teaming
� Increasing demand for knowledge workers with the skills to fully use technology.
Study Question 1: What are the challenges of
working in the new economy?
�Diversity …� Workforce diversity reflects differences with respect to gender, age, race, ethnicity,
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gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness.
� A diverse and multicultural workforce both challenges and offers opportunities to employers.
Study Question 1: What are the challenges of
working in the new economy?
�How diversity bias can occur in the
workplace:
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� Prejudice
� Discrimination
� Glass ceiling effect
Study Question 1: What are the challenges of
working in the new economy?
� Ethics
� Code of moral principles that set standards of conduct.
� Ethical expectations for modern
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� Ethical expectations for modern businesses:
� Integrity and ethical leadership
� Natural environment
� Consumer protection
� Human rights
Study Question 1: What are the challenges of
working in the new economy?
� Corporate governance
� Active oversight of management decisions and company actions by board of directors.
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directors.
�More emphasis today on restoring strength of corporate governance:
� Enron, WorldCom, Arthur Anderson failures
� Boards to hold management more accountable for ethical and socially responsible behavior
Study Question 1: What are the challenges of
working in the new economy?
� Careers …
� Core workers, contract workers, and part-time workers.
� People must be prepared to be any one
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� People must be prepared to be any one of these types of workers.
� People must make sure that their skills are portable and of current value in employment markets.
Study Question 2: What are organizations like in the
new workplace?
� Critical skills for success in the new workplace …� Mastery
� Contacts
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� Contacts
� Entrepreneurship
� Love of technology
� Marketing
� Passion for renewal
Study Question 2: What are organizations like in the
new workplace?
�Organization
� A collection of people working together
to achieve a common purpose.
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to achieve a common purpose.
� Organizations provide useful goods
and/or services that return value to
society and satisfy customer needs.
Study Question 2: What are organizations like in the new workplace?
�Organizations are open systems� Composed of interrelated parts that function together to achieve a common purpose.
Interact with their environments.
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� Interact with their environments.
� Transform resource inputs into product outputs (goods and services).
� Environmental feedback tells organization how well it is meeting the needs of customers and society.
Figure 1.1 Organizations as open systems.
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Study Question 2: What are organizations like in the
new workplace?
�Organizational performance� “Value creation” is a very important notion for organizations.
� Value is created when an organization’s operations adds value to the original
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� Value is created when an organization’s operations adds value to the original cost of resource inputs.
� When value creation occurs:� Businesses earn a profit.
� Nonprofit organizations add wealth to society.
Study Question 2: What are organizations like in the
new workplace?
�Organizational performance� Productivity
� An overall measure of the quantity and quality of work performance with resource utilization taken into account.
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utilization taken into account.
� Performance effectiveness� An output measure of task or goal accomplishment.
� Performance efficiency� An input measure of the resource costs associated with goal accomplishment.
Figure 1.2 Productivity and the dimensions of
organizational performance.
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Study Question 2: What are organizations like in the
new workplace?
� Workplace changes that provide a context for studying management …� Belief in human capital
� Demise of “command-and-control”
� Emphasis on teamwork
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� Emphasis on teamwork
� Preeminence of technology
� Embrace of networking
� New workforce expectations
� Concern for work-life balance
� Focus on speed
Study Question 3: Who are managers and what do
they do?
� Importance of human resources and
managers …
� People are not ‘costs to be controlled.’
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� High performing organizations treat
people as valuable strategic assets.
� Managers must ensure that people are
treated as strategic assets.
Study Question 3: Who are managers and what do
they do?
� A manager is a person in an
organization who directly supports and
helps activate the work efforts and
performance accomplishments of
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performance accomplishments of
others.
� The people who managers help are the
ones whose tasks represent the real
work of the organization.
Study Question 3: Who are managers and what do
they do?
� Levels of management
� Top managers — responsible for
performance of an organization as a whole
or for one of its larger parts.
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or for one of its larger parts.
� Middle managers — in charge of relatively
large departments or divisions.
� Team leaders or supervisors — in charge
of a small work group of non-managerial
workers.
Study Question 3: Who are managers and what do
they do?
� Responsibilities of team leaders:
� Plan meetings and work schedules.
� Clarify goals and tasks, and gather ideas for improvement.
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ideas for improvement.
� Appraise performance and counsel team members.
� Recommend pay raises and new assignments.
� Recruit, develop, and train team members.
Study Question 3: Who are managers and what do
they do?
� Responsibilities of team leaders (cont.):
� Encourage high performance and teamwork.
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teamwork.
� Inform team members about organizational goals and expectations.
� Inform higher levels of work unit needs and accomplishments.
� Coordinate with others teams and support the rest of the organization.
Study Question 3: Who are managers and what do
they do?
� Types of managers� Line managers are responsible for work activities
that directly affect organization’s outputs.
� Staff managers use technical expertise to advise and support the efforts of line workers.
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and support the efforts of line workers.
� Functional managers are responsible for a single area of activity.
� General managers are responsible for more complex units that include many functional areas.
� Administrators work in public and nonprofit organizations.
Study Question 3: Who are managers and what do
they do?
�Managerial performance and
accountability
� Accountability is the requirement of
one person to answer to a higher
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one person to answer to a higher
authority for relevant performance
results.
� Effective managers fulfill performance
accountability by helping others to
achieve high performance outcomes
and experience satisfaction in their
work.
Study Question 3: Who are managers and what do
they do?
� Quality of work life (QWL)
� An indicator of the overall quality of human experiences in the workplace.
� QWL indicators:
Fair pay
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� Fair pay
� Safe working conditions
� Opportunities to learn and use new skills
� Room to grow and progress in a career
� Protection of individual rights
� Pride in work itself and in the organization
Study Question 3: Who are managers and what do
they do?
�High performing managers …
� Are well informed of their team’s
needs.
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� Work alongside those they supervise.
� Provide advice and develop support for
their team.
� Help their people perform to the best of
their abilities.
Study Question 3: Who are managers and what do
they do?
� The organization as an upside-down
pyramid …
� Each individual is a value-added
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worker.
� A manager’s job is to support workers’
efforts.
� The best managers are known for
helping and supporting.
Figure 1.3 The organization viewed as an upside-
down pyramid.
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Study Question 4: What is the management process?
�Management is the process of
planning, organizing, leading, and
controlling the use of resources to
accomplish performance goals.
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accomplish performance goals.
� All managers are responsible for the
four functions.
� The functions are carried on
continually.
Figure 1.4 Four functions of management.
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Study Question 4: What is the management process?
� Functions of management …
� Planning
� The process of setting objectives and
determining what actions should be taken
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determining what actions should be taken
to accomplish them.
� Organizing
� The process of assigning tasks, allocating
resources, and arranging the coordinated
activities of individuals and groups to
implement plans.
Study Question 4: What is the management process?
� Functions of management …
� Leading
� The process of arousing people’s enthusiasm to work hard and direct their
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enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives.
� Controlling
� The process of measuring work performance, comparing results to objectives, and taking corrective action as needed.
Study Question 4: What is the management process?
�Managerial activities and roles …
� Interpersonal roles� Involve interactions with persons inside and outside the work unit.
Informational roles
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� Informational roles� Involve giving, receiving, and analyzing of information.
� Decisional roles� Involve using information to make decisions in order to solve problems or address opportunities.
Figure 1.5 Mintzberg’s 10 Managerial Roles.
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Study Question 4: What is the management process?
� Characteristics of managerial work
� Managers work long hours.
� Managers work at an intense pace.
� Managers work at fragmented and
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� Managers work at fragmented and varied tasks.
� Managers work with many communication media.
� Managers work largely through interpersonal relationships.
Study Question 4: What is the management process?
�Managerial agendas and networks
� Agenda setting
� Development of action priorities for one’s job.
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job.
� Include goals and plans that span long and short time frames.
� Networking
� Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas.
Study Question 4: What is the management process?
� Lifelong learning
� The process of continuously learning from daily experiences and
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from daily experiences and opportunities.
� Career success depends on real commitment to learning.
� Not just formal classroom learning.
Study Question 5: How do you learn the essential
managerial skills and competencies?
� Essential managerial skills
� Skill — the ability to translate knowledge into
action that results in desired performance.
� Technical skill — the ability to apply a special
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Technical skill — the ability to apply a special
proficiency or expertise to perform particular
tasks.
� Human skill — the ability to work well in
cooperation with others.
� Conceptual skill — the ability to think critically
and analytically to solve complex problems.
Figure 1.6 Katz’s Essential Managerial Skills.
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Study Question 5: How do you learn the essential
managerial skills and competencies?
�Managerial competency …
� A skill-based capability that contributes
to high performance in a management
job.
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job.
� Managerial competencies are implicit
in:
� Planning, organizing, leading, and
controlling.
� Informational, interpersonal, and
decisional roles.
� Agenda setting and networking.
Study Question 5: How do you learn the essential
managerial skills and competencies?
� Competencies for managerial
success:
� Communication
Teamwork
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� Teamwork
� Self-management
� Leadership
� Critical thinking
� Professionalism
Figure 1.7 Understanding Management from
Theory to Practice.
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