Chapter 1

Introduction

PowerPoint slides by R. Dennis Middlemist Colorado State University

Learning Objectives
After studying this chapter, you should be able to:

Answer the question: What is management? Explain why management must be understood within the context of organizations and how organizations affect the practice of management.

2005 Prentice Hall

Learning Objectives
After studying this chapter, you should be able to:

Describe the role of working with and through people in effective management. Explain managerial paradoxes and how dealing with them lies at the core of management. Specify the nature and extent of commitment required for managerial excellence.

2005 Prentice Hall

Learning Objectives
After studying this chapter, you should be able to:

Define the term entrepreneurial mindset and explain its importance for managers. Describe and compare the different elements of managerial work and the different managerial roles. Discuss the skills necessary to be an effective manager.

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Managing Effectively: Three Critical Challenges

Y GY G LO LO NO NO CH CH TE TE
G LO B AL IS M
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Management Challenges for the 21st Century CHANGE

Adapted from Exhibit 1-1: Critical Management Challenges for the 21st Century

Managing Strategically to Meet the Challenges

Importance of knowledge and intellectual

capital Change requires managers to

Manage within an organizational context Accomplish tasks with and through people Manage paradoxes Make a substantial commitment and

manage in an entrepreneurial manner

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What is Management?
It is a process A series of activities and operations, such as planning, deciding, and evaluating Of assembling and using sets of resources

Human, financial, material and information

In a goaldirected manner to accomplish tasks A purposeful activity In an organizational setting It is undertaken in organizations By people with different functions intentionally structured and coordinated to achieve common purposes
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Management Perspective 1: The Organizational Context

Management occurs in organizations, not in

isolation There are many different types of organizations Each organization has its own characteristics that influence effective management Effective managers must understand organizations

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Management Perspective 2: The Human Factor

Effective managers must

be adept at
Assessing other peoples

capabilities Matching peoples capabilities with appropriate responsibilities Motivating people

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Management Perspective 3: Managing Paradoxes

Management requires simultaneously mastering

multiple and potentially conflicting situations

Integration and fragmentation Consistency & Flexibility Reflection & Action Global Perspective and Local Understanding

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Management Perspective 4: Entrepreneurial Mindset

Managers must continuously search for

and exploit new opportunities An entrepreneurial mindset requires a commitment to constantly learning new skills and acquiring new knowledge An entrepreneurial mindset also requires a commitment to adding value to other peoples efforts and to society
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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
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Adapted from Exhibit 1.2: Managerial Functions

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 (Leading)
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 on behalf of achieving their work and organizational goals
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Controlling
Regulating the work of those for whom a

manager is responsible which may include

Setting standards of performance in advance Monitoring ongoing (realtime) performance Assessing a completed performance

Results of the control process (evaluation)

are fed back into the planning process

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Managerial Roles
Interpersonal Roles Figurehead
Leader Liaison

Informational Roles Monitor Disseminator Spokesperson

Decisional Roles
Entrepreneurial

Disturbance Handler Resource Allocator Negotiator

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Adapted from Exhibit 1.3: Types of Managerial Roles

Managerial Job Dimensions

Demands
Activities or duties that

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

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Managerial Job Dimensions

Demands Constraints
Factors that limit the

response of the manager

Time Budgets Technology Attitudes of subordinates Legal regulations

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Managerial Job Dimensions

Demands Constraints Choices
Discretionary behavior
How work is to be done How much work is to be

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

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Two Managerial Jobs

Job A: Project Team Job B: Fast Foods Manager Restaurant Manager Demands
Develop new product Maintain attractive

with strong market appearance of restaurant appeal Keep employee costs as Hold formal weekly low as possible progress meeting with Meet standards for speed boss of service Frequent travel to other company sites

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Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices

Two Managerial Jobs

Job A: Project Team Job B: Fast Foods Manager Restaurant Manager Constraints
12 month deadline for Most employees have

product development Project budget limit of $1 million No choice in selecting team members

limited formal education Few monetary incentives to reward outstanding performance Federal and state health and safety regulations

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Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices

Two Managerial Jobs

Job A: Project Team Job B: Fast Foods Manager Restaurant Manager Choices
The organizational Selection of employee to

structure of the project promote to supervisor team Scheduling of shifts and Sequencing of project assignments tasks Local advertising Budget allocation promotions

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Adapted from Exhibit 1.4: Two Managerial Jobs with Different Demands, Constraints and Choices

What Skills Do Managers Need?

Interpersonal skills Sensitivity Persuasiveness Empathy Technical skills Specialized knowledge (Including when and Conceptual skills Logical reasoning Judgment Analytical abilities
Adapted from Exhibit 1.5: Managers Skills

how to use the skills)

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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

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Adapted from Exhibit 1.6: Relative Importance of Managerial Skills at Different Organizational Levels

Who Succeeds? Who Doesnt

Potential managerial 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

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

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Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?

Who Succeeds? Who Doesnt

Potential managerial 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. May attempt to micromanage a position, ignoring future prospects, may staff with the incorrect people or neglect the talents they have, may depend too much on a single mentor, calling their own decision-making ability into question. 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

While focusing on problem solutions, keep their minds focused on the next position, help develop competent successors, seek advice from many sources.

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Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?

Who Succeeds? Who Doesnt

Potential managerial leaders share traits early on: Good people skills Those who dont quite Those who succeed: make it: May be viewed as charming Can get along well with but political or direct but different types of people, tactless, cold, and arrogant. are outspoken without People dont like to work with being offensive, are them viewed as direct and diplomatic.

Source: Adapted from M. W. McCall, Jr. and M. M. Lombardo, Off the Track: Why and How Successful Executives Get Derailed, Technical Report #21 (Greensboro, N.C.: Center for Creative Leadership, 1983), pp. 9-11.

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Adapted from Exhibit 1.7: Who Succeeds? Who Doesn't?