Chapter 1: Management

Chapter Outline
WHAT IS MANAGEMENT?

Management Is.... Learning objective: Describe what management is.

Good management is working through others to accomplish tasks that help fulfill organizational objectives as efficiently as possible. Efficiency versus effectiveness: efficiency is doing things right, and effectiveness is doing the right things. Both are necessary for good management. DOING THE RIGHT THING Unlike the military, there is no set code of conduct for managers. Managers set the standard for workplace conduct, so unethical behavior can spread when they dont do the right thing. Management: getting work done through others Efficiency: getting work done with a minimum of effort, expense, or waste Effectiveness: accomplishing tasks that help fulfill organizational objectives WHAT REALLY WORKS? Meta-analysis: a study of studies, a statistical approach that provides the best scientific estimate of how well management theories and practices work. Managers often look to research to find out what works. Sometimes management research results disagree about whether a management technique works. Managers can use the results of meta-analysis, a way to combine the results of several studies, to estimate the probability of success of a management technique.

Management Functions Learning objective: Explain the four functions of management. Traditionally, a managers job has been classified according to these four functions: 2.1 Planning is determining organizational goals and a means for achieving them. Planning is one of the best ways to improve performance. It encourages people to work harder, to work hard for extended periods, to engage in behaviors directly related to goal accomplishment, and to think of better ways to do their jobs. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom. Changes in how a company is organized must consider both people issues and work processes (how the work gets done).

2.2

2.3

Leading is motivating and inspiring workers to work hard to achieve organizational goals. Controlling is monitoring progress towards goal achievement and taking corrective action when needed. The basic control process involves setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance to those standards.

2.4

Good managers are those who perform these functions well.

WHAT DO MANAGERS DO?

Kinds of Managers Learning objective: Describe different kinds of managers. Reference: Exhibit 1.3, Jobs and Responsibilities of Four Kinds of Managers 3.1 Top Managers (e.g., chief executive officer, chief operating officer, general in the military) Top managers: executives responsible for the overall direction of the organization Top managers are responsible for: 1. Creating the context for change. 2. Developing in employees the attitudes of commitment to and ownership in the companys performance. 3. Creating a positive organizational culture through language and action. 4. Monitoring the business environments. 3.2 Middle Managers (e.g., plant manager, regional sales manager, divisional vicepresident) Middle managers: managers responsible for setting objectives consistent with top managements goals and for planning and implementing subunit strategies for achieving these objectives. Middle managers hold the following specific responsibilities: 1. Plan and allocate resources to meet objectives. 2. Coordinate and link groups, departments, and divisions within a company. 3. Monitor and manage the performance of the subunits and individual managers who report to them. 4. Implement changes or strategies generated by top managers. 3.3 First-Line Managers (e.g., office manager, shift supervisor, department manager) First-line managers: managers who train non-managerial employees and supervise their performance and who are directly responsible for producing the companys products or services.

First-line managers: 1. Encourage, monitor and reward performance. 2. Teach entry-level employees how to do their jobs. 3. Make detailed schedules and operating plans based on middle managements intermediate range plans.

DOING THE RIGHT THING: Tell and Show People That Ethics Matter. There is much more to making a company ethical than writing ethical policies. What is the most important thing a manager can do to encourage ethical behavior? What specific tactics might a manager follow if she wants her subordinates or team members to follow a new ethical policy? 3.4 Team Leaders (e.g., team leader of a new product launch, cost savings program, new technology development) Team leaders: managers responsible for facilitating team activities toward goal accomplishment. Team leader is a relatively new kind of management job. Team leaders fulfill the following responsibilities: 1. Facilitate team performance (but the team as a whole is responsible for performance itself). 2. Manage external relationships, for example, those with other teams. 3. Manage internal team relationships, for example, resolving conflicts.

Managerial Roles Learning objective: Explain the major roles and subroles that managers perform in their jobs. Reference: Exhibit 1.4, Mintzbergs Managerial Roles and Subroles 4.1 Interpersonal Roles Management jobs are people intensive, with at least two thirds of time spent communicating with others. Three interpersonal subroles are as follows: 1. Figurehead role: the interpersonal role managers play when they perform ceremonial duties. 2. Leader role: the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives. 3. Liaison role: the interpersonal role managers play when they deal with people outside their units. 4.2 Informational Roles Managers spend 40 percent of their time gathering and sharing information through the following subroles: 1. Monitor role: the informational role managers play when they scan their environment for information. 2. Disseminator role: the informational role managers play when they share information with others in their department or companies. 3. Spokesman role: the informational role managers play when they share information with people outside their departments or companies. 4.3 Decisional Roles

One purpose of communicating with people to gather and share information is to make decisions. There are four decisional subroles: 1. Entrepreneur role: the decisional role managers play when they adapt themselves, their subordinates, and their units to incremental change. 2. Disturbance handler role: the decisional role managers play when they respond to severe problems that demand immediate action. 3. Resource allocator role: the decisional role managers play when they decide who gets what resources. 4. Negotiator role: the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises.

WHAT DOES IT TAKE TO BE A MANAGER?

What Companies Look for in Managers: Learning objective: Explain what companies look for in managers. Reference: Exhibit 1.5, Relative Importance of Managerial Skills to Different Managerial Jobs Companies look for three major skills in their managers: technical, human, and conceptual. Technical skills: the ability to apply the specialized procedures, techniques, and knowledge required to get the job done. This is most important for lower level managers. Example: Technical skills include knowing how to design an integrated circuit in a high-tech firm or knowing how to use a variety of computer software applications in an office. Human skill: the ability to work well with others. Human skills are equally important for all levels of management. Upper level management spends most time dealing directly with people. Example: A department manager uses human skills to establish rapport with her subordinates or to gain support from top management for her department. Conceptual skill: the ability to see the organization as a whole, how the different parts affect each other, and how the company fits into or is affected by its environment. Conceptual skills increase in importance as managers move up the hierarchy. Managers with above-average intelligence outperform managers with average intelligence. Example: A vice-president of finance may not only understand how his department impacts the organization but how the organizations financial performance compares with that of competitors.

Motivation to manage: an assessment of how enthusiastic employees are about managing the work of others. Managers at higher levels typically have stronger motivation to manage than their subordinates.

Managers with stronger motivation to manage are promoted faster, are rated as better managers by their employees, and earn more than managers with a weak motivation to manage. Mistakes Managers Make Learning objective: Discuss the top mistakes that managers make in their jobs. Reference: Exhibit 1.6, Top Ten Mistakes that Managers Make A comparison of arrivers, those who made it all the way to the top of their companies, and derailers, those who were successful early but were knocked off the fast track, shows that although both groups had talent and weaknesses, the derailers had some fatal flaws. Here are the top ten mistakes made by derailers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Insensitive to others: abrasive, intimidating, bullying style. Cold, aloof, arrogant. Betrayal of trust. Overly ambitious: thinking of next job, playing politics. Specific performance problems with the business. Overmanaging: unable to delegate or build a team. Unable to staff effectively. Unable to think strategically. Unable to adapt to boss with different style. Overdependent on advocate or mentor.

The Transition to Management: The First Year Learning objective: Describe the transition that employees go through when they are promoted to management. Reference: Exhibit 1.7, The Transition to Management: Initial Expectations, after Six Months, and after a Year Becoming a manager produced a profound change in how managers viewed themselves and others. The only way to really learn how to manage was to manage. New managers changed their initial expectations of their job. Initially they thought they were to exercise formal authority and manage tasks. Later they realized the importance of communication and people development.

PERSONAL PRODUCTIVITY TIP: Find Someone to Talk To Of those of you in management, to whom do you speak when you are frustrated with a management issue? What are the pros and cons of speaking to someone in the same company? Of speaking to someone outside?

WHY MANAGEMENT MATTERS

Competitive Advantage through People Learning objective: Explain how and why companies can create competitive advantage through people. Reference: Exhibit 1.8, Competitive Advantage through People: Management Practices. Top-performing companies recognize the importance of the way they treat their work forces. These companies use ideas such as employee security, selective recruiting, high wages contingent on organizational performance, reduction of status differences, sharing information, self-managed teams, and training and skill development (see Exhibit 1.7). Investing in people will create long-lasting competitive advantages that are difficult for other companies to duplicate. Sound management practices can produce substantial advantages in sales, revenues, and customer satisfaction. Poorly performing companies that adopted management techniques as simple as setting expectations, coaching, and rewarding were able to substantially improve return on investment. Good management can increase customer satisfaction because employees tend to treat customers the same way that their managers treat them.