Chapter 1

Management

©2004 by Nelson, a division of Thomson Canada Limited

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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 Canada Limited
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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 Canada Limited

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Management is …
Getting work done through others.

Managers are concerned with:

 efficiency
 getting work done with a minimum of effort,
expense or waste.

 effectiveness

accomplishing tasks that help fulfill
organizational objectives.

©2004 by Nelson, a division of Thomson Canada Limited

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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 Canada Limited

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 What Really Works

Meta-Analysis

©2004 by Nelson, a division of Thomson Canada Limited

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Management Functions
“Old” “New”
 Planning  Making Things
 Organizing Happen
 Leading  Meeting the
Competition
 Controlling
 Organizing
People,
Projects, and
Processes
©2004 by Nelson, a division of Thomson Canada Limited
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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 Canada Limited
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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 Canada Limited
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Organizing People,
Projects, and Processes

 Consideration of
people issues.

 Consideration of work
processes.

©2004 by Nelson, a division of Thomson Canada Limited

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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 Canada Limited
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Kinds of Managers
 Top Managers
 Middle Managers
 First-Line
Managers
 Team Leaders

©2004 by Nelson, a division of Thomson Canada Limited

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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
©2004 by Nelson, a division of Thomson Canada Limited
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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 Canada Limited
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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

management’s intermediate range
plans.
©2004 by Nelson, a division of Thomson Canada Limited
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Team Leaders
Responsible for:
 Facilitating team

performance.
 Managing external

relationships.
 Internal team

relationships.

©2004 by Nelson, a division of Thomson Canada Limited

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Managerial Roles

Interpersonal
- figurehead
- leader
- liaison

Decisional
Informational
-entrepreneur
-monitor
-disturbance handler
-disseminator
-resource allocator
-spokesperson
-negotiator

Adapted from Exhibit 1.3

©2004 by Nelson, a division of Thomson Canada Limited
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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 Canada Limited
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What Companies
Look for in Managers
 Technical Skills
 Specialized knowledge
 Human Skill
 Ability to work with others
 Conceptual Skill
 Ability to see the whole organization
 Motivation to Manage
 A desire to be in charge
©2004 by Nelson, a division of Thomson Canada Limited
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Relative Importance
of Managerial Skills to
Different Managerial Jobs

Exhibit 1.4
©2004 by Nelson, a division of Thomson Canada Limited
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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 Canada Limited

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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 Canada Limited
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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 Canada Limited
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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 Canada Limited
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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 Canada Limited
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The Transition to
Management
Initial Reality
Assumptions  Cannot be

 Exercise formal “bossy”

authority  Manage people
 Managing tasks not tasks
not people  Coach employee

 Help employees performance

do their jobs  Fast pace, heavy

 Hire and fire workload

©2004 by Nelson, a division of Thomson Canada Limited
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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 Canada Limited

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Competitive Advantage
Through People:
Management Practices
 Employment  Training and skill
security development
 Selective hiring  Reduction of
 Self-managed status differences
teams and  Sharing
decentralization information
 High wages
contingent on
organizational
performance
©2004 by Nelson, a division of Thomson Canada Limited Adapted from Exhibit 1.7
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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 Canada Limited
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