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Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Course Outline
 Introduction to Management
 Managing Strategically
 Organizational External Environment
 Organizational Internal Environment
 Corporate, Global and Firm Level Strategies
 Implementing Strategies-Management
Issues
 Organizational Structure
 Ethics and Social Responsibility
 Planning
1
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Course Outline
 Decision Making
 Managing Information
 Control
 Global Management
 Innovation Management
 Change Management
 Designing Adaptive Organizations
 Managing Diversity
 Managing Teams
 Determining Human Resource Needs
2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Course Outline
 Finding and Developing Qualified Workers
 Performance Appraisal Management and
Retention
 Managing Service and Manufacturing
Operations
 Motivation Theories
 Motivating through the design of Work
 Leadership Theories
 Managing Communication
 Stress Management
3
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Course Outline
 Personality Traits and Outcomes
 Justice, Fair Treatment & Dismissal
Management
 Safety and Health Management
 Labor Relations and Collective Bargaining
4
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Reference Material
 Management by Chuck Williams
 Other Organizational management and
strategy books
 Online search
5
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6
Lecture 1 Introduction to
Management
Prepared by
dr Amna Yousaf PhD (university of
Twente, the Netherlands
COMSATS Institute of Information
Technology, Islamabad
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7
Learning Outcomes
1. describe what management is.
2. explain the four functions of management.
3. describe different kinds of managers.
4. explain the major roles and sub-roles that
managers perform in their jobs.
5. explain what companies look for
in managers.
6. discuss the top mistakes that managers
make in their jobs.
7. describe the transition that employees go through when they
are promoted to management.
8. explain how and why companies can create competitive
advantage through people.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8
Management Is…
Effectiveness
Efficiency
Getting work
done through
others
1
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Management Is…
 Pat Carrigan - Manager at GM car parts
 Efficiency entails minimum waste, effort and
expense
 Effectiveness is accomplishing tasks that help
fulfill organizational objectives
 Chrysler
9
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10
Management Functions
Planning
Organizing
Leading
Controlling
Management Functions
2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11
Planning
2.1
Planning
Determining organizational goals and a
means for achieving them
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12
What Really Works: Meta-Analysis
General Mental Ability
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 76%
This statistic shows that an employee hired on the basis of a good score
on a general mental ability test stands a 76 percent chance of being a
better performer than someone picked at random from the pool of all job
applicants.
Meta-Analysis is a study of studies that
shows what works and when.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13
Organizing
 Deciding where decisions will be made
 Who will do what jobs and tasks
 Who will work for whom
2.2
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14
Leading
Motivating
Inspiring
Leading
2.3
For Anne, CEO of Xerox,
the key to successful leadership is
communicating with the company’s
most important constituents:
employees and customers.
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15
Controlling
2.4
Controlling
Monitoring progress toward goal
achievement and taking corrective action
when needed
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16
The Control Process
2.4
Set standards to
achieve goals
Compare actual
performance to
standards
Make changes
to return
performance to
standards
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Effective Managers
 Effective managers plan, Organize, Lead
and Control better
 Probability of promotion at AT&T
17
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Old versus New Management
Styles
 Manager as boss versus managers as
sponsors/team leaders / internal consultants
 Reporting relationships versus managers open
to anyone anywhere in hierarchy
 Individual decisions versus participative
decision making
 Long hours versus results
 Keeping proprietary company information
secret versus sharing with others
18
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Management functions – Old and
New
 Making things Happen
 Planning
 Decision making
 Managing information
 Controlling
• William End CEO of Land’s End (a succesful
retailer) introduced latest management
techniques such as performance appraisals
based on peer reviews; production teams,
training courses, effective communication.
Lost or undelivered orders were result. Why?
19
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Management functions – Old and
New
 Meeting the competition
 Global Management
• Free trade agreements, falling entry barriers,
shorter product life cycles
 Organizational Strategy
 Innovation and Change
 Designing adaptive organizations
• IBM once market leader lost its share from 80
to 8% because of stiff competition from
COMPAQ Dell etc in 1980’s.
20
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Management functions – Old and
New
 Organizing people , projects and processes
 Managing individual and diverse workforce
 Managing Teams
 Managing Human Resource Systems
 Managing service and Manufacturing Operations
• When FORD purchased Jaguar….
 Leading
 Motivation
 Leadership
 Managing communication
• Herb Kelleher Founder SouthWest Airlines:
Jokester and storyteller
21
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22
Kinds of Managers
 Top Managers
 Middle Managers
 First-Line Managers
 Team Leaders
3
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23
Top Managers
3
3.1
 Chief Executive Officer (CEO)
 Chief Operating Officer (COO)
 Chief Financial Officer (CFO)
 Chief Information Officer (CIO)
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24
Responsibilities of Top Managers
Creating a context for change (Vision)
- CEO of GM and Kodak
Developing commitment
and ownership in employees
- Herb Kelleher at 4
Creating a positive organizational
culture through language and action
-Memo writing
-David Glass and stories of
Thriftiness of Sam Walton
Monitoring their business environments
- David Glass and KMart
3.1
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25
Middle Managers
3
3.2
 Plant Manager
 Regional Manager
 Divisional Manager
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26
Responsibilities of Middle Managers
3.2
Coordinate and link groups,
departments, and divisions
Monitor and manage the performance
of subunits and managers who report to them
Implement changes or strategies
generated by top managers
Plan and allocate resources to meet objectives
Andy Wilson Regional Vice President of Walmart visits Stores
to see product placement, replacement of products, keeps a
check on prices
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27
First-Line Managers
3
3.3
 Office Manager
 Shift Supervisor
 Department Manager
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28
Responsibilities of First-Line Managers
3.3
Manage the performance of
entry-level employees
Encourage, monitor, and reward
the performance of workers
Managers tracking phone calls of telemarketing reps
Teach entry-level employees how to do their jobs
Make detailed schedules and operating plans
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29
Responsibilities of Team Leaders
Facilitate team performance
Facilitate internal team relationships
3.4
Manage external relations
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30
Managerial Roles
H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.
Adapted from Exhibit 1.4
4
Interpersonal Informational Decisional
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31
Managerial Roles
Figurehead
Leader
Liaison
Managers perform ceremonial duties
Managers motivate and encourage
workers to accomplish objectives
Managers deal with people outside
their units
4.1
Interpersonal Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32
Managerial Roles
4.2
Monitor
Disseminator
Spokesperson
Managers scan their environment
for information
Managers share information
with others in their company
Managers share information
with others outside their
departments or companies
Informational Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 33
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Managerial Roles
4.3
Managers adapt to incremental change
Managers respond to problems that
demand immediate action
Managers decide who gets
what resources
Managers negotiate schedules,
projects, goals, outcomes, resources,
and raises
Decisional Roles
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 34
What Companies Look for
in Managers
Technical Skills Human Skills
Conceptual Skills Motivation to Manage
5
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Skill Composition
 Technical skills : the ability to apply the
specialized procedures, techniques and
knowledge required to get the job done
 Human skills: the ability to work well with
others
 Conceptual skills: the ability to see the
organization as a whole; how the different parts
affect each other; how well company is working
in relation to environment
 Motivation to manage: an assessment of how
enthusiastic employees are about managing
work of others 35
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 36
What Companies Look for
in Managers
5
Skills are more or less important at different
levels of management:
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 37
Mistakes Managers Make
Adapted from Exhibit 1.6
McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983
1. Insensitive to others
2. Cold, aloof, arrogant
3. Betrayal of trust
4. Overly ambitious
5. Specific performance problems with the business
6. Overmanaging: unable to delegate or build a team
7. Unable to staff effectively
8. Unable to think strategically
9. Unable to adapt to boss with different style
10. Overdependent on advocate or mentor
6
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 38
The First Year Management Transition
 Be the boss
 Formal authority
 Manage tasks
 Job is not
managing people
 Initial expecta-
tions were wrong
 Fast pace
 Heavy workload
 Job is to be
problem-solver
and troubleshooter
 No longer “doer”
 Communication,
listening, positive
reinforcement
 Learning to adapt
and control stress
 Job is people
development
Managers’
Initial Expectations
After Six Months
As a Manager
After a Year
As a Manager
Adapted from Exhibit 1.7
7
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 39
Management Practices in Top Performing Companies
Competitive Advantage
through People
Adapted from Exhibit 1.8
1. Employment Security
2. Selective Hiring
3. Promotion from within
4. High Wages Contingent on Organizational Performance
5. Training and Skill Development
6. Reduction of Status Differences
7. Sharing Information
8
8. Participation and Empowerment

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lecture1.management.MBA Class semester 1

  • 1. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Introduction to Management  Managing Strategically  Organizational External Environment  Organizational Internal Environment  Corporate, Global and Firm Level Strategies  Implementing Strategies-Management Issues  Organizational Structure  Ethics and Social Responsibility  Planning 1
  • 2. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Decision Making  Managing Information  Control  Global Management  Innovation Management  Change Management  Designing Adaptive Organizations  Managing Diversity  Managing Teams  Determining Human Resource Needs 2
  • 3. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Finding and Developing Qualified Workers  Performance Appraisal Management and Retention  Managing Service and Manufacturing Operations  Motivation Theories  Motivating through the design of Work  Leadership Theories  Managing Communication  Stress Management 3
  • 4. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Course Outline  Personality Traits and Outcomes  Justice, Fair Treatment & Dismissal Management  Safety and Health Management  Labor Relations and Collective Bargaining 4
  • 5. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Reference Material  Management by Chuck Williams  Other Organizational management and strategy books  Online search 5
  • 6. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 Lecture 1 Introduction to Management Prepared by dr Amna Yousaf PhD (university of Twente, the Netherlands COMSATS Institute of Information Technology, Islamabad
  • 7. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 Learning Outcomes 1. describe what management is. 2. explain the four functions of management. 3. describe different kinds of managers. 4. explain the major roles and sub-roles that managers perform in their jobs. 5. explain what companies look for in managers. 6. discuss the top mistakes that managers make in their jobs. 7. describe the transition that employees go through when they are promoted to management. 8. explain how and why companies can create competitive advantage through people.
  • 8. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 Management Is… Effectiveness Efficiency Getting work done through others 1
  • 9. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management Is…  Pat Carrigan - Manager at GM car parts  Efficiency entails minimum waste, effort and expense  Effectiveness is accomplishing tasks that help fulfill organizational objectives  Chrysler 9
  • 10. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 Management Functions Planning Organizing Leading Controlling Management Functions 2
  • 11. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 Planning 2.1 Planning Determining organizational goals and a means for achieving them
  • 12. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 What Really Works: Meta-Analysis General Mental Ability 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% This statistic shows that an employee hired on the basis of a good score on a general mental ability test stands a 76 percent chance of being a better performer than someone picked at random from the pool of all job applicants. Meta-Analysis is a study of studies that shows what works and when.
  • 13. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 Organizing  Deciding where decisions will be made  Who will do what jobs and tasks  Who will work for whom 2.2
  • 14. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Leading Motivating Inspiring Leading 2.3 For Anne, CEO of Xerox, the key to successful leadership is communicating with the company’s most important constituents: employees and customers.
  • 15. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 Controlling 2.4 Controlling Monitoring progress toward goal achievement and taking corrective action when needed
  • 16. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 The Control Process 2.4 Set standards to achieve goals Compare actual performance to standards Make changes to return performance to standards
  • 17. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Effective Managers  Effective managers plan, Organize, Lead and Control better  Probability of promotion at AT&T 17
  • 18. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Old versus New Management Styles  Manager as boss versus managers as sponsors/team leaders / internal consultants  Reporting relationships versus managers open to anyone anywhere in hierarchy  Individual decisions versus participative decision making  Long hours versus results  Keeping proprietary company information secret versus sharing with others 18
  • 19. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Making things Happen  Planning  Decision making  Managing information  Controlling • William End CEO of Land’s End (a succesful retailer) introduced latest management techniques such as performance appraisals based on peer reviews; production teams, training courses, effective communication. Lost or undelivered orders were result. Why? 19
  • 20. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Meeting the competition  Global Management • Free trade agreements, falling entry barriers, shorter product life cycles  Organizational Strategy  Innovation and Change  Designing adaptive organizations • IBM once market leader lost its share from 80 to 8% because of stiff competition from COMPAQ Dell etc in 1980’s. 20
  • 21. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Management functions – Old and New  Organizing people , projects and processes  Managing individual and diverse workforce  Managing Teams  Managing Human Resource Systems  Managing service and Manufacturing Operations • When FORD purchased Jaguar….  Leading  Motivation  Leadership  Managing communication • Herb Kelleher Founder SouthWest Airlines: Jokester and storyteller 21
  • 22. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22 Kinds of Managers  Top Managers  Middle Managers  First-Line Managers  Team Leaders 3
  • 23. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23 Top Managers 3 3.1  Chief Executive Officer (CEO)  Chief Operating Officer (COO)  Chief Financial Officer (CFO)  Chief Information Officer (CIO)
  • 24. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24 Responsibilities of Top Managers Creating a context for change (Vision) - CEO of GM and Kodak Developing commitment and ownership in employees - Herb Kelleher at 4 Creating a positive organizational culture through language and action -Memo writing -David Glass and stories of Thriftiness of Sam Walton Monitoring their business environments - David Glass and KMart 3.1
  • 25. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25 Middle Managers 3 3.2  Plant Manager  Regional Manager  Divisional Manager
  • 26. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26 Responsibilities of Middle Managers 3.2 Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Plan and allocate resources to meet objectives Andy Wilson Regional Vice President of Walmart visits Stores to see product placement, replacement of products, keeps a check on prices
  • 27. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27 First-Line Managers 3 3.3  Office Manager  Shift Supervisor  Department Manager
  • 28. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28 Responsibilities of First-Line Managers 3.3 Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Managers tracking phone calls of telemarketing reps Teach entry-level employees how to do their jobs Make detailed schedules and operating plans
  • 29. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29 Responsibilities of Team Leaders Facilitate team performance Facilitate internal team relationships 3.4 Manage external relations
  • 30. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30 Managerial Roles H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975. Adapted from Exhibit 1.4 4 Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator
  • 31. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31 Managerial Roles Figurehead Leader Liaison Managers perform ceremonial duties Managers motivate and encourage workers to accomplish objectives Managers deal with people outside their units 4.1 Interpersonal Roles
  • 32. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32 Managerial Roles 4.2 Monitor Disseminator Spokesperson Managers scan their environment for information Managers share information with others in their company Managers share information with others outside their departments or companies Informational Roles
  • 33. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 33 Entrepreneur Disturbance Handler Resource Allocator Negotiator Managerial Roles 4.3 Managers adapt to incremental change Managers respond to problems that demand immediate action Managers decide who gets what resources Managers negotiate schedules, projects, goals, outcomes, resources, and raises Decisional Roles
  • 34. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 34 What Companies Look for in Managers Technical Skills Human Skills Conceptual Skills Motivation to Manage 5
  • 35. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Skill Composition  Technical skills : the ability to apply the specialized procedures, techniques and knowledge required to get the job done  Human skills: the ability to work well with others  Conceptual skills: the ability to see the organization as a whole; how the different parts affect each other; how well company is working in relation to environment  Motivation to manage: an assessment of how enthusiastic employees are about managing work of others 35
  • 36. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 36 What Companies Look for in Managers 5 Skills are more or less important at different levels of management:
  • 37. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 37 Mistakes Managers Make Adapted from Exhibit 1.6 McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983 1. Insensitive to others 2. Cold, aloof, arrogant 3. Betrayal of trust 4. Overly ambitious 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor 6
  • 38. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 38 The First Year Management Transition  Be the boss  Formal authority  Manage tasks  Job is not managing people  Initial expecta- tions were wrong  Fast pace  Heavy workload  Job is to be problem-solver and troubleshooter  No longer “doer”  Communication, listening, positive reinforcement  Learning to adapt and control stress  Job is people development Managers’ Initial Expectations After Six Months As a Manager After a Year As a Manager Adapted from Exhibit 1.7 7
  • 39. Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 39 Management Practices in Top Performing Companies Competitive Advantage through People Adapted from Exhibit 1.8 1. Employment Security 2. Selective Hiring 3. Promotion from within 4. High Wages Contingent on Organizational Performance 5. Training and Skill Development 6. Reduction of Status Differences 7. Sharing Information 8 8. Participation and Empowerment