Copyright 2004 by South-Western, a division of Thomson Learning.

All rights reserved.

CHAPTER 1

Management and
Managers:
Yesterday, Today and
Tomorrow

Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Slides Prepared by
Zulema Seguel

Learning Objectives

slide 1 of 2

1. Describe the terms management and

leadership, as well as the relationship between
the two concepts.
2. Define the concept of management within an
organizational context and as a process.
3. Identify the roles played by managers.
4. Discuss the scope of responsibilities of
functional and general managers.
5. Describe the three levels of managers in

skills they need and the

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

terms of the
2

40

Learning Objectives

slide 2 of 2

6. Describe the underlying forces of the new

economy.
7. Describe the environmental trends that are
affecting the way organizations operate and
the way managers do their jobs.
8. Identify and discuss the organizational
changes that are
affecting managers jobs.
9. Describe the manager of tomorrow in terms of
the managerial style, leadership capabilities,
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

Management: The Classic Definition

The art of getting things done

through people.
Mary Parker Follet

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

Management: A Broader Definition

The process of administering and

coordinating resources effectively,
efficiently, and in an effort to achieve
the goals of the organization.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

Effectiveness vs. Efficiency

Effectiveness
Effectiveness is achieved when the
organization pursues appropriate goals.
This means doing the right thing.
Efficiency
Efficiency is achieved by using the fewest
inputs (e.g., people and money) to generate a
given output. This means doing things
right.
The end result of effective and efficient
management is organizational success.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

Management Theory
It is critical for managers to be able to lead
people through the fast pace of change
Leadership is about:
Coping with complexity and, more
importantly,
Coping with change
As change becomes more dynamic and rapid
so managers at all levels must hone their
leadership skills.
Therefore, leaders are managers and
managers are leaders.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

What Is An Organization?

An organization is a group of
individuals who work together
toward common goals.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

What Do All
Organizations Have in Common?
They are made up of people, and
The efforts of these people must be
coordinated if the organization is to
accomplish its goals.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40

The Four
Functions of Management

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

slide 1 of 4

10 40

Planning And Organizing

Planning
Setting goals and defining the actions
necessary to achieve those goals.

Organizing
The process of determining the tasks to be
done, who will do them, and how those tasks
will be managed and coordinated.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

11 40

Leading
The capacity to lead the members of work
groups toward the accomplishment of
organizational goals.
Requires a number of skill sets including:
Understanding individual/group behavior
dynamics
The ability to motivate employees
Be effective communicators
Able to envision future and share that vision
3Cs Leadership Model
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

12 40

Controlling
Monitoring the performance of the
organization and the progress in
implementing strategic and operational
plans.
Identifying deviations between planned and
actual results.
Taking corrective action
Ensuring that the organization is moving
toward the achievement of its goals.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

13 40

Managers
Managers are the people who plan, organize,
lead, and control the activities of the
organization so that its goals can be
achieved.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

14 40

Mintzbergs Managerial Roles

slide 1 of 3

Interpersonal Roles
The managers responsibility
for managing relationships with
organizational members and
other constituents:
Figurehead
Leader
Liaison

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

15 40

Mintzbergs Managerial Roles

slide 2 of 3

Informational Roles
The managers responsibility
for gathering and disseminating
information to the stakeholders
of the organization:
Monitor
Disseminator
Spokesperson

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

16 40

Mintzbergs Managerial Roles

slide 3 of 3

Decisional Roles
The managers responsibility
for processing information and
reaching conclusions:
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

17 40

Scope of Responsibility
Functional Managers
Managers who are responsible for managing
a work unit that is grouped based on the
function served.

General Managers
Managers who are responsible for managing
several different departments that are
responsible for different tasks.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

18 40

Functional Manager
Chief Executive
General Parts Inc.

VP of
Production
Plant
Manager

Service
Manager

VP of
Finance
Account
Manager

Payroll
Manager

A functional manager is a manager responsible

for a work group segmented by function.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

19 40

General Manager
General Manager
Supermarket, Inc.

Produce
Manager

Grocery
Manager

Bakery
Manager

A general manager is a manager

responsible for several different work
groups segmented by task.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

20 40

Levels of Management
Top-level Managers
Middle Managers
First-line Managers
Operational Employees

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

21 40

Management Skills
Technical Skills
The ability to utilize the knowledge of tools,
techniques, and procedures that are specific to a
particular field.

Human Skills
The ability to work effectively with ones own
work group as well as others within the
organization.

Conceptual Skills
The ability to process a tremendous amount of
information about the internal/external environment
of the organization and determine implications of
that information.
22 40

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Skills Needed at
Different Levels of Management
First-line
Management

Middle
Management

Conceptual

Conceptual

Top-Level
Management

Conceptual

Human
Human
Human
Technical
Technical
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Technical
23 40

Hyperchange
A condition of rapid, dramatic, complex, and
unpredictable changes that has a significant
effect on the ways in which organizations are
managed.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

24 40

The New Economy: What Is It?

The convergence of New Economy forces
challenges conventional wisdom and traditional
methods of managing organizations
The expansion of individual opportunity
The disruptive energy that comes from ceaseless
innovation
The transformative power of information and
communication

As a result, new methods for crafting strategy,

launching products, serving customers and
organizations to support creativity and
productivity are emerging.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

25 40

Environmental Trends
Advances in
information
technology
Globalization of
the
marketplace
Increasing predominance
of entrepreneurial firms
The growing importance
of intellectual capital
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

26 40

Advances in Information Technology

Today, there are three central themes of
change in information technology.
The Internet and other forms of globally
connected networks
Electronic commerce
Mobile computing

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

27 40

Globalization of the Marketplace

Most organizations today are involved, in
some way, in the international business
environment
Even the smallest business can reach a
global marketplace with relative ease
The international business arena holds
unique managerial challenges in terms of
complexity and a broader set of
environmental forces.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

28 40

Increasing
Predominance of Entrepreneurial Firms
Entrepreneurial firms are responsible for a
disproportionate number of new products,
services, and process.
Entrepreneurial activities place pressure on
large, bureaucratic firms to be made
innovative and proactive.
Entrepreneurship provides opportunities for
minorities and others who may face barriers
in traditional corporate environments.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

29 40

The Growing
Importance of Intellectual Capital
Intellectual capital encompasses the sum and
synergy of an organizations knowledge,
experience, relationships, processes,
discoveries, innovations, market presence
and community influence.
The three major categories of intellectual
capital are:
Structural Capital
Customer Capital
Human Capital
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

30 40

Organizational Changes
A new model of leadership
From hierarchy to collaborative
work relationships

Increasing diversity in the workplace

A new organizational model
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

31 40

A New Model of Leadership

The 3Cs Model of Leadership

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

32 40

The 3Cs Model of Leadership

Competence
Refers to having the requisite business
acumen and skills to be effective as a leader.
Character
Refers to the leadership values and behaviors
that elicit trust, commitment and
followership.
Community
Refers to the need to be aware of things
beyond oneself and even beyond ones team
and organization.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

33 40

From Hierarchy to
Collaborative Work Relationships
Cross-functional Teams
Teams comprised of individuals from
different functional areas of the organization

Self Managed Teams

Groups of employees who work together
toward the development of strategy for their
work unit and the achievement of established
goals and objectives.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

34 40

Increasing Diversity in the Workplace

Diversity is the heterogeneity of the
population and work force.
The challenge of diversity for todays
business and managers
Organizational success requires a strong
organizational culture and group
cohesiveness
Achieving this may be more difficult when
the workplace includes people with different
backgrounds, from different nations, or with
different cultural frames of reference.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

35 40

A New Organizational Model

Many organizations are moving from the
traditional thinking that bigger is better to
a new model that is lean and flexible.
These organizations go by many names:
The Modular Corporation
The Virtual Corporation
The Network Corporation

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

36 40

The New Manager/Leader Profile

Managers will no longer think of themselves as
the boss, but will view themselves as
sponsors, team leaders, or internal consultants.
Todays leaders can no longer wield control
from the top of the pyramid; nor can they
control the action from the sidelines.
Leaders must empower individual employees to
do whatever is necessary to achieve goals and
make sure that employees have the resources to
get the job done.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

37 40

Competencies of Tomorrows Managers

The great communicator

The individual coach
The team player
The technology master
The problem solver
The foreign ambassador
The change agent
The lifelong learner

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

38 40

Implications for Future Leaders

slide 1 of 2

Keep abreast of changing conditions that

affect the organization.
Develop and understanding of the major
environmental trends that are affecting
organizations across the globe.
Be flexible and adaptable to organizational
changes, as well as proactive in initiating
change when appropriate.
Understand the changing role of the manager
within the corporate structure.
Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

39 40

Implications for Future Leaders

slide 2 of 2

Make the most of your education and

develop the skills and competencies
necessary for managerial success.
Focus on excellence and quality in
everything you do.
Take every opportunity to enhance your
leadership skills.

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

40 40