ManagingChapter 01Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Learning ObjectivesLO 1 Summarize the major challenges of managing in the new competitive landscapeLO 2 Describe the sources of competitive advantage for a companyLO 3 Explain how the functions of management are evolving in todays business environmentLO 4 Compare how the nature of management varies at different organizational levelsLO 5 Define the skills you need to be an effective managerLO 6 Discuss the principles that will help you manage your career

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GlobalizationTodays enterprises are global, with offices and production facilities in countries all over the worldMeans that a companys talent can come from anywhere Internet makes globalization inevitable1-*

Technological Change: The InternetMarketplaceMeans for manufacturing goods and services Distribution channelAn information service1-*

Technological Change: The InternetDrives down costs and speeds up globalization. Improves efficiency of decision making. Facilitates design of new products, from pharmaceuticals to financial services

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Knowledge ManagementKnowledge managementPractices aimed at discovering and harnessing an organizations intellectual resourcesKnowledge workers1-*

Collaboration across BoundariesRequires productive communications among different departments, divisions, or other subunits of the organization1-*

Collaboration across BoundariesCompanies today must motivate and capitalize on the ideas of people outside the organization e.g. its consultants, ad agencies, and suppliers1-*

Managing for Competitive Advantage1-*

Question___________ is the fast and timely execution, response, and delivery of results.InnovationQualitySpeedService 1-*

Managing for Competitive Advantage1-*Innovation the introduction of new goods and servicesoften the most important innovation is not the product itself, but how it is delivered

Managing for Competitive AdvantageQualityThe excellence of your product (goods or services)Historically, quality referred to attractiveness, lack of defects, reliability, and long-term dependability

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Managing for Competitive AdvantageToday quality is about preventing defects and having continuous improvement in how the firm operates1-*

Managing for Competitive AdvantageServiceThe speed and dependability with which an organization delivers what customers want1-*

Managing for Competitive AdvantageSpeedFast and timely execution, response, and delivery of results.1-*

Managing for Competitive AdvantageCost competitivenessKeeping costs low to achieve profits and be able to offer prices that are attractive to consumers.1-*

The Functions of ManagementManagementThe process of working with people and resources to accomplish organizational goalsEfficient, effective1-*

Question____________ is monitoring performance and making needed changes.PlanningOrganizingLeadingControlling 1-*

The Functions of ManagementPlanningSystematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursueanalyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage1-*

The Functions of ManagementOrganizing assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goalsspecifying job responsibilities, grouping jobs into work units, marshaling and allocating resources,1-*

The Functions of ManagementLeading stimulating people to be high performersControllingmonitoring performance and making needed changes.

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The Functions of Management1-*

Performing All Four Management FunctionsA typical day for a manager is not neatly divided into the four functionsDays are busy and fractionated, and spent dealing with interruptions, meetings, and firefighting

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Performing All Four Management FunctionsGood managers dont neglect any of the four management functions

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Management Levels and Skills1-*

Management Levels and SkillsTop-level managersSenior executives responsible for the overall management and effectiveness of the organization.Middle-level managersManagers located in the middle layers of the organizational hierarchy, reporting to top-level executives.1-*

Management Levels and SkillsFrontline managersLower-level managers who supervise the operational activities of the organization

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Transformation of Management Roles and Activities1-*Table 1.1

Managerial Roles: WhatManagers Do1-*Table 1.2

QuestionWhich management skill is the ability to lead, motivate, and communicate effectively with others?TechnicalConceptualDecisionInterpersonal

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Management SkillsTechnical skillThe ability to perform a specialized task involving a particular method or process1-*

Management SkillsConceptual and decision skillsSkills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members.1-*

Management SkillsInterpersonal and communication skillsPeople skills; the ability to lead, motivate, and communicate effectively with others.1-*

You and Your CareerEmotional intelligenceThe skills of understanding yourself, managing yourself, and dealing effectively with others.

Social capitalGoodwill stemming from your social relationships

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You and Your Career1-*

Keys to Career Management1-*Table 1.3

Two Relationships: Which Will You Choose?1-*Figure 1.1

Managerial Action Is YourOpportunity to Contribute1-*Figure 1.2

Common Practices of Successful ExecutivesThey ask What needs to be done? rather than What do I want to do?They write an action plan. They dont just think, they do, based on a sound, ethical plan.They take responsibility for decisions.They focus on opportunities rather than problems.

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Destination CEO: Darden RestaurantsWhat position did Otis hold before being named CEO of Darden Restaurants?

What management skills are you developing in a job or in college that will aid you in your future career?

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The correct answer is c speed. See slide 1-10*The correct answer is D - controlling*The correct answer is D interpersonal. See slide 1-27*From restaurant server to CEO. . . Growing up in the Watts ghetto of Los Angeles during the 60s as the son of a janitor, Clarence Otis parents set high expectations for him. Instead of getting involved in neighborhood gangs, Otis became a standout student who went on to graduate from college with Phi Beta Kappa honors; eventually earning a law degree from Stanford University.A strong financial and legal background prepared Otis for his position of CEO of Darden Restaurants, the largest publicly traded casual dining chain in the world. Yet Otis learned the importance of getting along with all types of people early in his career while working as a server at a restaurant at the Los Angeles International Airport. Otis has guided Darden to healthy earnings as a result of his sound financial strategies, while also creating a shared vision for Darden that embraces diversity. Otis is one of less than a handful of African American chief executives of a Fortune 500 corporation. Darden Restaurants, Inc., (NYSE:DRI) is the parent company of over 1,400 eating establishments, among them Red Lobster and Olive Garden. Multiple Choice QuestionsWhich of the following positions did Otis hold before being named CEO of Darden Restaurants?CEO of McDonaldsCFO of DardenLegal council for DardenPresident of Citicorp An important part of Otis background involves his childhood growing up in what city?New YorkChicagoBiloxiLos Angeles Otis learned a great deal about working with diverse groups of people from his first job, where he was employed as a:Server in a restaurantLaw clerk in Washington, D.C.Janitor at the Los Angeles International AirportCarrier for a newspaper route Essay QuestionsWhat management skills are you developing in a job or in college that will aid you in your future career? Students responses will vary. Typical answers may include technical skills such as Otis finance and law background. Another response may include soft skills such as Otis ability to get along with a diverse group of people. Finally, students may identify conceptual skills such as Otis ability to create a vision of diversity for Darden. Provide examples of forces in the external environment that Otis must consider. Students responses will vary. As an example, the Food and Drug Administration could pass new laws regarding food safety. Economic conditions such as growth or recession affect availability and cost of capital. Laws regarding affirmative hiring may change. Conduct research on the number of minority CEOs in Fortune 500 companies. Report your findings with citations. Students responses will vary. As of 2007, only 10 of the 500 Fortune 500 CEOs were female. Fortune does not provide data on the number of minority CEOs, yet their number remains in single digits. More minority-owned businesses are being created in this country than ever before, leading to more minority CEOs which eventually may become Fortune 500 companies. Look especially for Hispanic CEOs to increase as the U.S. population continues to increase in the number of Hispanic entrepreneurs.

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