Chapter 1

Management

2004 by Nelson, a division of Thomson Canada Limited

What Would You Do?

Mario had founded a small

management consulting firm in
Moncton.
Opportunities to help firms build and
manage competitive intelligence
were many.
What are the challenges Mario faces?
What should Mario do?

2004 by Nelson, a division of Thomson Cana

da Limited

Learning Objectives:
What is Management?
After discussing this
section you should be able
to:
1. describe what
management is.
2. explain the three functions
of
management.
2004 by Nelson, a division of Thomson Cana
da Limited

Management is
Getting work done through others.
Managers are concerned with:

efficiency

getting work done with a minimum of

expense or waste.

effort,

effectiveness

accomplishing tasks that help fulfill

organizational objectives.

2004 by Nelson, a division of Thomson Cana

da Limited

Meta-analysis
A study of studies.

A statistical approach that

provides the best scientific
estimate of how well
management theories and
practices work.

2004 by Nelson, a division of Thomson Cana

da Limited

What Really Works

Meta-Analysis

2004 by Nelson, a division of Thomson Cana

da Limited

Management Functions

Old
Planning
Organizing
Leading
Controlling

New
Making Things
Happen
Meeting the
Competition
Organizing
People, Projects,
and Processes

2004 by Nelson, a division of Thomson Cana

da Limited

Making Things Happen

Determining what you want to

accomplish.
Planning how to achieve those goals.
Gathering and managing the
information needed to make good
decisions.
Controlling performance.

2004 by Nelson, a division of Thomson Cana

da Limited

Meeting the
Competition

Consider the threat from international

competitors.
Have a well-thought-out competitive
strategy.
Be able to embrace change and foster
new product and service ideas.
Structure their organizations to quickly
adapt to changing customers and
competitors.

2004 by Nelson, a division of Thomson Cana

da Limited

Organizing People,
Projects, and Processes

Consideration of
people issues.

Consideration of work
processes.

2004 by Nelson, a division of Thomson Cana

da Limited

10

Learning Objectives:
What Do Managers Do?
After discussing this section, you
should be able to:
3. describe different kinds of
managers.
4. explain the major roles and subroles
that managers perform in their jobs.
2004 by Nelson, a division of Thomson Cana
da Limited

11

Kinds of Managers

Top Managers
Middle Managers
First-Line
Managers
Team Leaders

2004 by Nelson, a division of Thomson Cana

da Limited

12

Top Managers
Responsible for:
Creating a context for change.
Developing attitudes of commitment
and ownership in employees.
Creating a positive organizational
culture through language and action.
Monitoring their business
environments.
2004 by Nelson, a division of Thomson Cana
da Limited

13

Middle Managers
Responsible for:
Planning and allocating resources to
meet objectives.
Coordinating and linking groups,
department and divisions.
Monitoring and managing the
performance of the subunits and
individual managers who report to them.
Implementing the changes or strategies
generated by top managers.
2004 by Nelson, a division of Thomson Cana
da Limited

14

First-Line Managers
Responsible for:
Managing the performance of entry-level
employees.
Teaching entry-level employees how to
do their jobs.
Making detailed schedules and operating
plans on middle managements
intermediate range plans.
2004 by Nelson, a division of Thomson Cana
da Limited

15

Team Leaders
Responsible for:
Facilitating team
performance.
Managing external
relationships.
Internal team
relationships.

2004 by Nelson, a division of Thomson Cana

da Limited

16

Managerial Roles
Interpersonal
- figurehead
- leader
- liaison

Informational
-monitor
-disseminator
-spokesperson

Decisional
-entrepreneur
-disturbance handler
-resource allocator
-negotiator

Adapted from Exhibit 1.3

2004 by Nelson, a division of Thomson Cana

da Limited

17

Learning Objectives:
What Does It Take to Be a
Manager?
After discussing this section, you
should be able to:
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.
2004 by Nelson, a division of Thomson Cana
da Limited

18

What Companies
Look for in Managers

Technical Skills

Human Skill

Ability to work with others

Conceptual Skill

Specialized knowledge

Ability to see the whole organization

Motivation to Manage

A desire to be in charge

2004 by Nelson, a division of Thomson Cana

da Limited

19

Relative Importance
of Managerial Skills to
Different Managerial Jobs

Exhibit 1.4

2004 by Nelson, a division of Thomson Cana

da Limited

20

Mistakes Managers
Make

Insensitive to others
Cold, aloof, and/or arrogant
Betraying a trust
Overly ambitious
Specific performance problems
with the business

2004 by Nelson, a division of Thomson Cana

da Limited

21

Mistakes Managers
Make

Overmanaging: unable to delegate

or build a team
Unable to staff effectively
Unable to think strategically
Unable to boss with different style
Overdependent on advocate or
mentor

2004 by Nelson, a division of Thomson Cana

da Limited

22

First-Year Management
Transition
Managers Initial Expectations
Be the boss
Formal authority
Manage tasks
Job is not managing people

Adapted from Exhibit 1.6

2004 by Nelson, a division of Thomson Cana

da Limited

23

First-Year Management
Transition
After Six Months as a Manager
Initial expectations were wrong
Fast pace
Heavy workload
Job is to be problem-solver and
trouble-shooter for subordinates
Adapted from Exhibit 1.6

2004 by Nelson, a division of Thomson Cana

da Limited

24

First-Year Management
Transition
After a Year as a Manager
No longer doers
Communication, listening, &
positive reinforcement
Job is people development

Adapted from Exhibit 1.6

2004 by Nelson, a division of Thomson Cana

da Limited

25

The Transition to
Management
Initial
Assumptions
Exercise formal
authority
Managing tasks
not people
Help employees do
their jobs
Hire and fire

Reality
Cannot be bossy
Manage people
not tasks
Coach employee
performance
Fast pace, heavy
workload

2004 by Nelson, a division of Thomson Cana

da Limited

26

Learning Objectives:
Why Management
Matters
After reading this
section, you should be
able to:
8. explain how and why
companies can create
competitive advantage
through people
2004 by Nelson, a division of Thomson Cana
da Limited

27

Competitive Advantage
Through People:
Management Practices

Employment
security
Selective hiring
Self-managed teams
and decentralization
High wages
contingent on
organizational
performance

Training and skill

development
Reduction of
status differences
Sharing
information

2004 by Nelson, a division of Thomson Adapted

Canafrom Exhibit 1.7
da Limited

28

What Really Happened

Theriault developed in-house capabilities

for collecting and analyzing information.
A market niche was and potential
partnerships with competitors were
identified.
Leadership identified the niche and the
strategy.
The company structure was based on
growth and use of technology.

2004 by Nelson, a division of Thomson Cana

da Limited

29