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Inc. All rights reserved.

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Chapter
1
Managing
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Learning Objectives
After studying Chapter 1, you will know:
the major challenges of managing in the new era
the drivers of competitive advantage for your company
the functions of management and how they are evolving in
todays business environment
the nature of management at different organizational levels
the skills you need to be an effective manager
what to strive for as you manage your career
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New Era
Management
Internet
Collaboration
Across
Boundaries
Knowledge
Management
Globalization
Managing In The New Era
Managerial practices will always separate effective from
ineffective organizations
Four key elements are new elements in business today
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Managing In The New Era (cont.)
The Internet
communication technologies are driving massive change
initial enthusiasm for e-business has dwindled
25% of publicly-held Web companies became profitable in 2002
most profitable Web companies sell information-based
products that dont require shipping
old economy types now using the Internet as a tool to solidify
their future
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Managing In The New Era (cont.)
Globalization
far more than in the past, enterprises are global
competing globally is not easy
companies often overestimate the attractiveness of foreign
markets
even small firms that do not operate on a global scale must
make strategic decisions based on international considerations
face intense competition from high-quality foreign producers
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Managing In The New Era (cont.)
Knowledge management
practices aimed at discovering and harnessing an
organizations intellectual resources
unlock peoples expertise, skills, wisdom, and relationships
intellectual capital is the collective brainpower of the
organization
Collaboration across boundaries
capitalize on the ideas of people outside the traditional
company boundaries
occurs between as well as within organizations
e.g., must effectively capitalize on customers brains
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Competitive
Advantage
Cost
Competitiveness
Speed Quality
Innovation
Managing For Competitive Advantage
Best managers and companies deliver all four
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Managing For Competitive Advantage
(cont.)
Innovation
the introduction of new goods and services
comes from people
must be a strategic goal
must be managed properly
Quality
excellence of a product, including its attractiveness, lack of
defects, reliability, and long-term durability
importance of quality has increased dramatically
catering to customers other needs creates more perceived
quality
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Managing For Competitive Advantage
(cont.)
Speed
fast and timely execution, response, and delivery of results
often separates winners from losers in world competition
requirement has increased exponentially
Cost competitiveness
costs are kept low enough so that you can realize profits and
price your products at levels that are attractive to consumers
key is efficiency - accomplishing goals by using resources
wisely and minimizing waste
little things can save big money
cost cuts involve tradeoffs
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The Functions Of Management
Management
the process of working with people and resources to
accomplish organizational goals
good managers must be:
effective - achieve organizational goals
efficient - achieve goals with minimum waste of resources
there are timeless principles of management
still important for making managers and companies great
must add fresh thinking and new approaches
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Planning
Leading
Controlling
The Functions Of Management (cont.)
Organizing
The manager who does not devote adequate attention and
resources to all four functions will fail
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The Functions Of Management (cont.)
Planning
specifying the goals to be achieved and deciding in advance
the appropriate actions taken to achieve those goals
delivering strategic value - planning function for the new era
a dynamic process in which the organization uses the brains of
its members and of stakeholders to identify opportunities to
maintain and increase competitive advantage
process intended to create more value for the customer
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The Functions Of Management (cont.)
Organizing
assembling and coordinating the human, financial, physical,
informational, and other resources needed to achieve goals
building a dynamic organization - organizing function for the
new era
viewing people as the most valuable resource
the future requires building flexible organizations

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The Functions Of Management (cont.)
Leading
stimulating people to be high performers
in the new era, managers must be good at mobilizing people to
contribute their ideas
Controlling
monitoring progress and implementing necessary changes
makes sure that goals are met
new technology makes it possible to achieve more effective
controls
for the future, will have to be able to monitor continuous
learning and changing
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Management Levels
Top-level managers (strategic managers)
senior executives responsible for the overall management and
effectiveness of the organization
focus on long-term issues
emphasize the survival, growth, and effectiveness of the firm
concerned with the interaction between the organization and
its external environment
titles include Chief Executive Officer (CEO), Chief Operating
Officer (COO), company presidents and vice presidents
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Management Levels (cont.)
Middle-level managers (tactical managers)
located between top-level and frontline managers in the
organizational hierarchy
responsible for translating strategic goals and plans into more
specific objectives and activities
traditional role was that of an administrative controller who
bridged the gap between higher and lower levels
provide operating skills and practical problem solving the keep
the company working
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Management Levels (cont.)
Frontline managers (operational managers)
lower-level managers who supervise the operational activities
of the organization
directly involved with nonmanagement employees
increasingly being called on to be innovative and
entrepreneurial
titles include supervisor or sales manager
Working leaders with broad responsibilities
in small firms and large firms that have adapted to the times,
managers have strategic, tactical, and operational
responsibilities
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Transformation of Frontline
Management Roles and Tasks
From operational implementers to aggressive
entrepreneurs
Driving business performance by focusing on
productivity, innovation and growth within frontline
units
Changing roles
Primary value
Key activities Creating and pursuing new opportunities for the
business

Attracting and developing resources and
competencies

Managing continuous performance improvement
within the unit
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Transformation of Middle-Level
Management Roles and Tasks
From administrative controllers to supportive
coaches
Providing the support and coordination to bring
large company advantage to the independent
frontline units
Developing individuals and supporting their
activities

Linking dispersed knowledge, skills, and best
practices across units

Managing the tension between short-term
performance and long-term ambition
Changing roles
Primary value
Key activities
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Transformation of Top-Level
Management Roles and Tasks
From resource allocators to institutional leaders
Creating and embedding a sense of direction,
commitment and challenge to people throughout
the organization
Challenging embedded assumptions while
establishing a stretching opportunity horizon and
and performance standards

Institutionalizing a set of norms and values to
support cooperation and trust

Creating an overarching corporate purpose and
ambition
Changing roles
Primary value
Key activities
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Management Skills
Skill - specific ability that results from knowledge,
information, and aptitude
Technical skill
ability to perform a specialized task that involves a certain
method or process
managers at higher levels rely less on technical skills
Conceptual and decision skills
ability to identify and resolve problems for the benefit of the
organization
assume greater importance as manager acquires more
responsibility
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Management Skills (cont.)
Interpersonal and communication skills
ability to lead, motivate, and communicate effectively with
others
people skills
important throughout your career at every level of
management

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You And Your Career
Jobs are no longer as secure for managers as they used to be
organizations still try to develop and retain good employees
employee loyalty and commitment are still important
Companies offering employability to workers tend to be
more successful
provide training and other learning experiences
employees perform work with greater responsibility
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Be both a specialist and generalist
specialist - expert in something
provide concrete, identifiable value to the firm
generalist - knowing about a variety of business functions so
that you can understand work with different perspectives
Be self-reliant
take responsibility for yourself, your actions, and your career
regardless of where you work
think and act like an entrepreneur
look for opportunities to contribute in new ways
generate constructive change
You And Your Career (cont.)
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You And Your Career (cont.)
Be connected
establish many good working relationships
be a team player with strong interpersonal skills
all business is a function of human relationships
competitive advantage depends upon you and other people
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Keys to Career Management
1. Think of yourself as a business.
2. Define your product: What is your area of expertise?
3. Know your target market: To whom are you going to sell this?
4. Be clear on why your customer buys from you. What is your
value proposition - what are you offering that causes him to
use you?
5. As in any business, strive for quality and customer satisfaction, even
if your customer is just someone else in your organization - like
your boss.
6. Know your profession or field and whats going on there.
7. Invest in your own growth and development, the way a company
invests in research and development. What new products will you
be able to provide?
8. Be willing to consider changing your career.
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Actively manage your relationship with your organization
two ways to think about the nature of the relationships
between you and your employer
view yourself as an employee
model for just getting by
contributions likely to be minimal
two-way, mutually-beneficial exchange relationship
think about how you can contribute and act accordingly
figure out new ways to add value
organization likely provide full and fair rewards, support further
personal development, and offer more gratifying work environment
You And Your Career (cont.)
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Two Relationships: Which Will You
Choose?
#2
You as an active contributor
in a productive relationship
You
Your
Organization
#1
You as a passive employee


Employer


You
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Managerial Action Is Your Opportunity
To Contribute
You
Your
Organization


Managerial Actions
1. Delivering Strategic
Value
2. Building a Dynamic
Organization
3. Mobilizing People
4. Learning and
Changing
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Survive and thrive
be prepared to move from project to project, team to team
be a master at something that the world values
develop a strong network of colleagues who can help with
current and future projects
have entrepreneurial skills that help you act as if you were
running your own business
love technology
market yourself
be willing to constantly improve and even reinvent yourself
You And Your Career (cont.)