Managing

Chapter 1

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
1-2
Learning Objectives

 Summarize major challenges of managing in the new

competitive landscape
 Describe the drivers of competitive advantage for a
company
 Explain how the functions of management are evolving
in today’s environment
 Compare how the nature of management varies at
different levels of an organization
 Define the skills you need to be an effective manager
 Discuss the principles that will help you manager your
career

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Managing in the New Competitive
Landscape

Globalization Technological
Change

Knowledge Collaboration
Management across
Boundaries

1-4
 Managing for Competitive Advantage

Key Concept Definition

The introduction of new
goods and services
Innovation
The excellence of your
product
Quality
Giving customers what
they want or need, the way
they want it
Service

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Managing for Competitive Advantage

Key Concept Definition

Speed Fast and timely execution,
response, and delivery of
results
Cost competitiveness Keeping costs low to
achieve profits and offer
prices attractive to
customers

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Managing for Competitive Advantage

Key Concept Definition

Delivering all five Incorporating innovation,

quality, service, speed, and
cost competitiveness

Although managers must make some trade-offs,

managing for competitive advantage means successfully
delivering a winning mix

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Defining Management

 Management
 The process of working with people and resources
to accomplish organizational goals effectively and
efficiently

 Effectiveness
 Achieving organizational goals

 Efficiency
 Achieving goals with minimal waste of money, time,
materials, and people

1-8
The Functions of Management

Planning Delivering strategic value

Organizing Building a dynamic organization

Leading Mobilizing people

Controlling Learning and changing

1-9
Performing all Four Functions of
Management
A manager’s day is not neatly divided into the
four functions

 Successful
managers handle all four functions
simultaneously

1-10
Management Levels and Skills

Top-Level
Managers

Middle-Level Managers

Frontline Managers

1-11
Management Levels and Skills

Top-level managers Senior executive responsible for the overall

management of the organization

Middle-level managers Located in the middle layers of the organizational

hierarchy reporting to top-level managers

Frontline managers Supervise the operational activities of the

organization; also called operational managers

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What Do Managers Do?

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Management Levels and Skills

 Working leaders with broad responsibilities

 Today’s trends are toward less hierarchy and more
teamwork
 The best managers are “working leaders”

1-14
Management Levels and Skills

 Working leaders tend to engage in 10 activities

that fall into three categories or roles
 Interpersonal roles
 Informational roles
 Decisional roles

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Management Levels and Skills

Key Skill Definition

Technical skill The ability to perform a specialized task involving a
particular method or process

Conceptual and The ability to identify and resolve problems for the
decisional skills benefit of the organization and its members

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

communication skills communication effectively with others

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You and Your Career

 Emotional intelligence
 Understanding yourself
 Managing yourself
 Dealing effectively with others

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You and Your Career

1-18
You and Your Career

Tips for Success

Be both a specialist and a generalist

Be self-reliant

Be connected

Actively manage your relationship with your

organization
Survive and thrive

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You and Your Career

 Social capital
 Goodwill stemming from your social relationships

 Business decisions both inside and outside the

organization involve networks of people

 Socialcapital leverages your goodwill to make

you and your organization more successful

1-20
You and Your Career

1-21
You and Your Career

1-22
Globalization

 Strong demand for  Strong demand for talent

products/services

 Internet access across  Global marketplace

the globe

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original slide 1-23
Technological Change

 The Internet’s impact on globalization

 Increased speed of communication
 The Internet as a marketplace

 Problems
 Stress when employees/supervisors do not set
limits on being connected
 Lengthening of the workday due to constant access

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original slide 1-24
Knowledge Management

 Growing
need for good, new ideas generates
demand for knowledge workers
 Managers cannot simply measure output of
knowledge workers
 Managers should provide knowledge workers with
interesting work to increase motivation

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original slide 1-25
Collaboration across Boundaries

 People in different parts of the organization

must collaborate with one another

 Collaborationalso entails moving beyond the

boundaries of the organization itself

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original slide 1-26
Innovation

 Managers must adapt to

 Changes in consumer demand
 Changes in new competitors

 Alternativeproduct/service delivery can be as

innovative as new products/services
themselves

 Innovation is driven by globalization

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original slide 1-27
Quality

 Quality standards are increasing

 Total quality management

 Preventing defects before they occur
 Achieving zero defects in manufacturing
 Designing products for quality

 Goal:
Continuous improvement in how the
company operates

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original slide 1-28
Service

 Continuallymeet customer needs to establish

mutually beneficial long-term relationships

 Make it easy for customers to experience a

service or buy and use products

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original slide 1-29
Speed

 Speed involves rapidly

 Developingand getting products to market
 Responding to customer requests

 Speedcombined with quality is a measure of

whether a company is operating efficiently

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original slide 1-30
Cost Competitiveness

 Managing costs requires efficiency

 Efficiencyis accomplishing goals by using
resources wisely and minimizing waste

 Understanding all product/service specific

costs is essential to managing for cost
competitiveness

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original slide 1-31
Understanding Yourself

 Realizing your strengths and limitations

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original slide 1-32
Managing Yourself

 Dealing with your emotions

 Making good decisions

 Seeking and using feedback

 Exercising self-control

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original slide 1-33
Dealing Effectively with Others

 Listening

 Showing empathy

 Motivating

 Leading

 Other similar traits

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original slide 1-34