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Chapter

1
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Managing

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Learning Objectives

After studying Chapter 1, you will know:

the major challenges of managing in the new era the drivers of competitive advantage for your company the functions of management and how they are evolving in todays business environment the nature of management at different organizational levels the skills you need to be an effective manager what to strive for as you manage your career

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Managing In The New Era

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Managerial practices will always separate effective from ineffective organizations Four key elements are new elements in business today
Internet Globalization

New Era Management

Knowledge Management
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Collaboration Across Boundaries

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Managing In The New Era (cont.)

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The Internet

communication technologies are driving massive change initial enthusiasm for e-business has dwindled

25% of publicly-held Web companies became profitable in 2002

most profitable Web companies sell information-based products that dont require shipping old economy types now using the Internet as a tool to solidify their future

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Managing In The New Era (cont.)

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Globalization

far more than in the past, enterprises are global competing globally is not easy

companies often overestimate the attractiveness of foreign markets

even small firms that do not operate on a global scale must make strategic decisions based on international considerations

face intense competition from high-quality foreign producers

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Managing In The New Era (cont.)

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Knowledge management

practices aimed at discovering and harnessing an organizations intellectual resources

unlock peoples expertise, skills, wisdom, and relationships

intellectual capital is the collective brainpower of the organization capitalize on the ideas of people outside the traditional company boundaries

Collaboration across boundaries

occurs between as well as within organizations

e.g., must effectively capitalize on customers brains

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Managing For Competitive Advantage

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Best managers and companies deliver all four

Cost Competitiveness Innovation

Competitive Advantage

Quality
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Speed
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Managing For Competitive Advantage (cont.)

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Innovation

the introduction of new goods and services

comes from people must be a strategic goal must be managed properly

Quality

excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability importance of quality has increased dramatically catering to customers other needs creates more perceived quality
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Managing For Competitive Advantage (cont.)

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Speed

fast and timely execution, response, and delivery of results often separates winners from losers in world competition requirement has increased exponentially costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers key is efficiency - accomplishing goals by using resources wisely and minimizing waste little things can save big money

Cost competitiveness

cost cuts involve tradeoffs

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The Functions Of Management

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Management

the process of working with people and resources to accomplish organizational goals good managers must be:

effective - achieve organizational goals efficient - achieve goals with minimum waste of resources still important for making managers and companies great must add fresh thinking and new approaches

there are timeless principles of management

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The Functions Of Management (cont.)

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The manager who does not devote adequate attention and resources to all four functions will fail

Leading

Organizing

Controlling

Planning
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The Functions Of Management (cont.)

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Planning

specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals delivering strategic value - planning function for the new era

a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage process intended to create more value for the customer

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The Functions Of Management (cont.)

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Organizing

assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals building a dynamic organization - organizing function for the new era

viewing people as the most valuable resource the future requires building flexible organizations

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The Functions Of Management (cont.)

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Leading

stimulating people to be high performers in the new era, managers must be good at mobilizing people to contribute their ideas monitoring progress and implementing necessary changes makes sure that goals are met new technology makes it possible to achieve more effective controls for the future, will have to be able to monitor continuous learning and changing
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Controlling

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Management Levels

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Top-level managers (strategic managers)

senior executives responsible for the overall management and effectiveness of the organization focus on long-term issues emphasize the survival, growth, and effectiveness of the firm concerned with the interaction between the organization and its external environment titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents

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Management Levels (cont.)

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Middle-level managers (tactical managers)

located between top-level and frontline managers in the organizational hierarchy responsible for translating strategic goals and plans into more specific objectives and activities traditional role was that of an administrative controller who bridged the gap between higher and lower levels provide operating skills and practical problem solving the keep the company working

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Management Levels (cont.)

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Frontline managers (operational managers)

lower-level managers who supervise the operational activities of the organization directly involved with nonmanagement employees increasingly being called on to be innovative and entrepreneurial titles include supervisor or sales manager in small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities
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Working leaders with broad responsibilities

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Transformation of Frontline Management Roles and Tasks

Changing roles Primary value From operational implementers to aggressive entrepreneurs

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Driving business performance by focusing on productivity, innovation and growth within frontline units Creating and pursuing new opportunities for the business Attracting and developing resources and competencies Managing continuous performance improvement within the unit

Key activities

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Transformation of Middle-Level Management Roles and Tasks

Changing roles Primary value From administrative controllers to supportive coaches Providing the support and coordination to bring large company advantage to the independent frontline units Developing individuals and supporting their activities Linking dispersed knowledge, skills, and best practices across units Managing the tension between short-term performance and long-term ambition
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Key activities

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Transformation of Top-Level Management Roles and Tasks

Changing roles Primary value From resource allocators to institutional leaders

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Creating and embedding a sense of direction, commitment and challenge to people throughout the organization Challenging embedded assumptions while establishing a stretching opportunity horizon and and performance standards

Key activities

Institutionalizing a set of norms and values to support cooperation and trust

Creating an overarching corporate purpose and ambition
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Management Skills
Skill - specific ability that results from knowledge, information, and aptitude Technical skill

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ability to perform a specialized task that involves a certain method or process managers at higher levels rely less on technical skills

Conceptual and decision skills

ability to identify and resolve problems for the benefit of the organization assume greater importance as manager acquires more responsibility
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Management Skills (cont.)

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Interpersonal and communication skills

ability to lead, motivate, and communicate effectively with others

people skills

important throughout your career at every level of management

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You And Your Career

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Jobs are no longer as secure for managers as they used to be

organizations still try to develop and retain good employees employee loyalty and commitment are still important

Companies offering employability to workers tend to be more successful

provide training and other learning experiences employees perform work with greater responsibility

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You And Your Career (cont.)

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Be both a specialist and generalist

specialist - expert in something

provide concrete, identifiable value to the firm

generalist - knowing about a variety of business functions so that you can understand work with different perspectives take responsibility for yourself, your actions, and your career regardless of where you work think and act like an entrepreneur

Be self-reliant

look for opportunities to contribute in new ways generate constructive change

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You And Your Career (cont.)

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Be connected

establish many good working relationships be a team player with strong interpersonal skills all business is a function of human relationships

competitive advantage depends upon you and other people

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Keys to Career Management

1. 2. 3. 4. Think of yourself as a business. Define your product: What is your area of expertise? Know your target market: To whom are you going to sell this? Be clear on why your customer buys from you. What is your value proposition - what are you offering that causes him to use you? As in any business, strive for quality and customer satisfaction, even if your customer is just someone else in your organization - like your boss. Know your profession or field and whats going on there. Invest in your own growth and development, the way a company invests in research and development. What new products will you be able to provide? Be willing to consider changing your career.
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5.
6. 7.

8.

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You And Your Career (cont.)

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Actively manage your relationship with your organization

two ways to think about the nature of the relationships between you and your employer

view yourself as an employee

model for just getting by contributions likely to be minimal

think about how you can contribute and act accordingly figure out new ways to add value organization likely provide full and fair rewards, support further personal development, and offer more gratifying work environment
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two-way, mutually-beneficial exchange relationship

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Two Relationships: Which Will You Choose?

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#1 You as a passive employee Employer

#2

You as an active contributor in a productive relationship

You

You

Your Organization

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Managerial Action Is Your Opportunity To Contribute

You

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Your Organization

Managerial Actions 1. Delivering Strategic Value 2. Building a Dynamic Organization 3. Mobilizing People 4. Learning and Changing
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You And Your Career (cont.)

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Survive and thrive

be prepared to move from project to project, team to team be a master at something that the world values develop a strong network of colleagues who can help with current and future projects have entrepreneurial skills that help you act as if you were running your own business love technology market yourself be willing to constantly improve and even reinvent yourself
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