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Management, 9/e
John R. Schermerhorn, Jr. Chapter 1: Introducing Management

Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.

Planning Ahead Chapter 1 Study Questions

What are the challenges of working in the new economy? What are organizations like in the new workplace? Who are managers and what do they do? What is the management process? How do you learn the essential managerial skills and competencies?

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Overview of the New Workplace

A highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties. Smart people and smart organizations create their own futures. Companies with a future are committed to people. Companies with a future have high performance expectations and provide supportive work environments. High performing companies gain extraordinary results from people.

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Study Question 1: What are the challenges of working in the new economy?

Intellectual capital
People

are the the ultimate foundations of organizational performance. Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. A knowledge worker adds to the intellectual capital of an organization.

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Study Question 1: What are the challenges of working in the new economy?

Globalization
National

boundaries of world business have largely disappeared. is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy.
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Globalization

Study Question 1: What are the challenges of working in the new economy?

Technology

Continuing transformation of the modern workplace through: The Internet World Wide Web Computer networking Information technology Telecommuting/virtual teaming Increasing demand for knowledge workers with the skills to fully use technology.

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Study Question 1: What are the challenges of working in the new economy?

Diversity
Workforce

diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness. A diverse and multicultural workforce both challenges and offers opportunities to employers.
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Study Question 1: What are the challenges of working in the new economy?

How diversity bias can occur in the workplace:

Prejudice Discrimination Glass

ceiling effect

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Study Question 1: What are the challenges of working in the new economy?

Ethics
Code

of moral principles that set standards of conduct.

Ethical expectations for modern businesses:

Integrity

and ethical leadership Natural environment Consumer protection Human rights

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Study Question 1: What are the challenges of working in the new economy?

Corporate governance
Active

oversight of management decisions and company actions by board of directors.

More emphasis today on restoring strength of corporate governance:

Enron,

WorldCom, Arthur Anderson failures Boards to hold management more accountable for ethical and socially responsible behavior

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Study Question 1: What are the challenges of working in the new economy?

Careers
Core workers, contract workers, and parttime workers. People must be prepared to be any one of these types of workers. People must make sure that their skills are portable and of current value in employment markets.

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Study Question 2: What are organizations like in the new workplace?

Critical skills for success in the new workplace

Mastery Contacts Entrepreneurship Love

of technology Marketing Passion for renewal

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Study Question 2: What are organizations like in the new workplace?

Organization
A

collection of people working together provide useful goods

to achieve a common purpose.

Organizations

and/or services that return value to society and satisfy customer needs.

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Study Question 2: What are organizations like in the new workplace?

Organizations are open systems

Composed

of interrelated parts that function together to achieve a common purpose. Interact with their environments. Transform resource inputs into product outputs (goods and services). Environmental feedback tells organization how well it is meeting the needs of customers and society.

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Figure 1.1 Organizations as open systems.

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Study Question 2: What are organizations like in the new workplace?

Organizational performance
Value

creation is a very important notion for organizations. Value is created when an organizations operations adds value to the original cost of resource inputs. When value creation occurs:
Businesses earn a profit. Nonprofit organizations add wealth to society.

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Study Question 2: What are organizations like in the new workplace?

Organizational performance
Productivity

An overall measure of the quantity and quality of work performance with resource utilization taken into account.

Performance

effectiveness efficiency

An output measure of task or goal accomplishment. An input measure of the resource costs associated with goal accomplishment.

Performance

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Figure 1.2 Productivity and the dimensions of organizational performance.

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Study Question 2: What are organizations like in the new workplace?

Workplace changes that provide a context for studying management

Belief in human capital Demise of command-and-control Emphasis on teamwork Preeminence of technology Embrace of networking New workforce expectations Concern for work-life balance Focus on speed

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Study Question 3: Who are managers and what do they do?

Importance of human resources and managers

People High

are not costs to be controlled.

performing organizations treat people as valuable strategic assets. must ensure that people are treated as strategic assets.

Managers

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Study Question 3: Who are managers and what do they do?

A manager is a person in an organization who directly supports and helps activate the work efforts and performance accomplishments of others. The people who managers help are the ones whose tasks represent the real work of the organization.
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Study Question 3: Who are managers and what do they do?

Levels of management
Top

managers responsible for performance of an organization as a whole or for one of its larger parts. managers in charge of relatively large departments or divisions. leaders or supervisors in charge of a small work group of non-managerial workers.
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Middle Team

Study Question 3: Who are managers and what do they do?

Responsibilities of team leaders:

Plan meetings and work schedules. Clarify goals and tasks, and gather ideas for improvement. Appraise performance and counsel team members. Recommend pay raises and new assignments. Recruit, develop, and train team members.

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Study Question 3: Who are managers and what do they do?

Responsibilities of team leaders (cont.):

Encourage high performance and teamwork. Inform team members about organizational goals and expectations. Inform higher levels of work unit needs and accomplishments. Coordinate with others teams and support the rest of the organization.

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Study Question 3: Who are managers and what do they do?

Types of managers

Line managers are responsible for work activities that directly affect organizations outputs. Staff managers use technical expertise to advise and support the efforts of line workers. Functional managers are responsible for a single area of activity. General managers are responsible for more complex units that include many functional areas. Administrators work in public and nonprofit organizations.

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Study Question 3: Who are managers and what do they do?

Managerial performance and accountability
Accountability

is the requirement of one person to answer to a higher authority for relevant performance results. managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work.

Effective

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Study Question 3: Who are managers and what do they do?

Quality of work life (QWL)

An indicator of the overall quality of human experiences in the workplace. QWL indicators: Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in work itself and in the organization

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Study Question 3: Who are managers and what do they do?

High performing managers

Are

well informed of their teams needs. alongside those they supervise.

Work

Provide

advice and develop support for their team. their people perform to the best of their abilities.

Help

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Study Question 3: Who are managers and what do they do?

The organization as an upside-down pyramid

Each A

individual is a value-added worker.

managers job is to support workers efforts. best managers are known for helping and supporting.

The

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Figure 1.3 The organization viewed as an upsidedown pyramid.

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Study Question 4: What is the management process?

Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals. All managers are responsible for the four functions. The functions are carried on continually.
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Figure 1.4 Four functions of management.

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Study Question 4: What is the management process?

Functions of management
Planning

The process of setting objectives and determining what actions should be taken to accomplish them. The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans.
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Organizing

Study Question 4: What is the management process?

Functions of management
Leading

The process of arousing peoples enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. The process of measuring work performance, comparing results to objectives, and taking corrective action as needed.
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Controlling

Study Question 4: What is the management process?

Managerial activities and roles

Interpersonal

roles roles

Involve interactions with persons inside and outside the work unit. Involve giving, receiving, and analyzing of information.

Informational

Decisional

roles

Involve using information to make decisions in order to solve problems or address opportunities.
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Figure 1.5 Mintzbergs 10 Managerial Roles.

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Study Question 4: What is the management process?

Characteristics of managerial work

Managers

work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Managers work largely through interpersonal relationships.
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Study Question 4: What is the management process?

Managerial agendas and networks

Agenda

setting

Development of action priorities for ones job. Include goals and plans that span long and short time frames.
Networking

Process of building and maintaining positive relationships with people whose help may be needed to implement ones work agendas.

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Study Question 4: What is the management process?

Lifelong learning
The

process of continuously learning from daily experiences and opportunities.

Career success depends on real commitment to learning. Not just formal classroom learning.

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Study Question 5: How do you learn the essential managerial skills and competencies?

Essential managerial skills

Skill the ability to translate knowledge into action that results in desired performance. Technical skill the ability to apply a special proficiency or expertise to perform particular tasks. Human skill the ability to work well in cooperation with others. Conceptual skill the ability to think critically and analytically to solve complex problems.

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Figure 1.6 Katzs Essential Managerial Skills.

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Study Question 5: How do you learn the essential managerial skills and competencies?

Managerial competency
A

skill-based capability that contributes to high performance in a management job. competencies are implicit in:
organizing, leading, and controlling. interpersonal, and decisional roles.
Planning,

Managerial

Informational, Agenda

setting and networking.

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Study Question 5: How do you learn the essential managerial skills and competencies?

Competencies for managerial success:

Communication Teamwork Self-management Leadership Critical

thinking

Professionalism

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Figure 1.7 Understanding Management from Theory to Practice.

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