Managing and

Performing

Chapter One

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

LO 1 Summarize the major challenges of managing in the new competitive landscape.

LO 2 Describe the sources of competitive advantage for a company.

LO 3 Explain how the functions of management are evolving in today’s business environment.

LO 4 Compare how the nature of management varies at different organizational levels.

LO 5 Define the skills you need to be an effective manager.

LO 6 Discuss the principles that will help you manage your career.

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Globalization

Today’s enterprises are global, with offices and production facilities in countries all over the world

Means that a company’s talent can come from anywhere

Internet makes globalization inevitable

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Technological Change: The Internet

MarketplaceMeans for manufacturing goods and

services Distribution channelAn information service

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Technological Change: The Internet

Drives down costs and speeds up globalization.

Improves efficiency of decision making. Facilitates design of new products, from

pharmaceuticals to financial services

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Knowledge Management

Knowledge management Practices aimed at

discovering and harnessing an organization’s intellectual resources

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Knowledge Management

Knowledge workers Workers whose primary contributions are

ideas and problem-solving expertise

Knowledge managers find these human assets, help people collaborate and learn, help people generate new ideas, and harness those ideas into successful innovations.

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Knowledge Management

Knowledge management is about finding, unlocking, sharing, and altogether capitalizing on the most precious resources of an organization: people’s expertise, skills, wisdom, and relationships.

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Collaboration across “Boundaries”

Requires productive communications among different departments, divisions, or other subunits of the organization

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Collaboration across “Boundaries”

Companies today must motivate and capitalize on the ideas of people outside the organization e.g. its consultants, ad agencies, and suppliers

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Managing for Competitive Advantage

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Question

___________ is the fast and timely execution, response, and delivery of results.

A.Innovation

B.Quality

C.Speed

D.Service

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Managing for Competitive Advantage

Innovation the introduction of new goods and services

A firm must: adapt to changes in consumer demands and

to new competitors. be ready with new ways to communicate with

customers and deliver the products to them.

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Managing for Competitive Advantage

Quality The excellence of your product (goods or

services) Historically, quality referred to attractiveness,

lack of defects, reliability, and long-term dependability

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Managing for Competitive Advantage

Today quality is about preventing defects and having continuous improvement in how the firm operates

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Managing for Competitive Advantage

Service giving customers what they want or need,

when they want it focused on continually meeting the needs of

customers to establish mutually beneficial long-term relationships.

Speed Fast and timely execution, response, and

delivery of results.

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Managing for Competitive Advantage

Cost competitiveness Keeping costs low to

achieve profits and be able to offer prices that are attractive to consumers.

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Managing for Competitive Advantage

Sustainability The effort to minimize the use of resources,

especially those that are polluting and nonrenewable.

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The Functions of Management

Management The process of working with people and

resources to accomplish organizational goals Efficiently, effectively

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Question

____________ is monitoring performance and making needed changes.

A.Planning

B.Organizing

C.Leading

D.Controlling

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The Functions of Management

Planning Systematically making decisions about the

goals and activities that an individual, a group, a work unit, or the overall organization will pursue

analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage

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The Functions of Management

Organizing assembling and coordinating the human,

financial, physical, informational, and other resources needed to achieve goals

specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources,

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The Functions of Management

Leading stimulating people to be high performers

Controlling monitoring performance and making needed

changes.

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Performing All Four Management Functions

A typical day for a manager is not neatly divided into the four functions

Days are busy and fractionated, and spent dealing with interruptions, meetings, and firefighting

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Performing All Four Management Functions

Good managers devote adequate attention and resources to all four management functions.

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Management Levels and Skills

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Management Levels and Skills

Top-level managers Senior executives responsible for the overall

management and effectiveness of the organization.

Middle-level managers Managers located in the middle layers of the

organizational hierarchy, reporting to top-level executives.

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Management Levels and Skills

Frontline managers Lower-level

managers who supervise the operational activities of the organization

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Transformation of Management Roles and Activities

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Table 1.1

Managerial Roles: WhatManagers Do

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Table 1.2

Question

Which management skill is the ability to lead, motivate, and communicate effectively with others?

A.Technical

B.Conceptual

C.Decision

D.Interpersonal

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Management Skills

Technical skill The ability to

perform a specialized task involving a particular method or process

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Management Skills

Conceptual and decision skills Skills pertaining to the ability to identify and

resolve problems for the benefit of the organization and its members.

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Management Skills

Interpersonal and communication skills People skills; the ability to lead, motivate,

and communicate effectively with others.

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You and Your Career

Emotional intelligence The skills of

understanding yourself, managing yourself, and dealing effectively with others.

Social capital Goodwill stemming

from your social relationships

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You and Your Career

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Two Relationships: Which Will You Choose?

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Figure 1.1

Managerial Action Is YourOpportunity to Contribute

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Figure 1.2

Common Practices of Successful Executives

They ask “What needs to be done?” rather than “What do I want to do?”

They write an action plan. They don’t just think, they do, based on a sound, ethical plan.

They take responsibility for decisions.They focus on opportunities rather than

problems.

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Video Case: AFLAC and Dan Amos

Why does AFLAC CEO, Dan Amos, want shareholders to vote on his compensation package?

What are the consequences of paying an underperforming CEO an exorbitant severance package?

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