Chapter 1

Managers and Entrepreneurs

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Chapter Outline
Management Defined
Working with and through Others Achieving Organizational Objectives Balancing Effectiveness and Efficiency Making the Most of Limited Resources Coping with a Changing Environment

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Chapter Outline
(continued)

What Do Managers Do?

Managerial Functions Managerial Roles Merging Functions and Roles Some Managerial Facts of Life (With No Sugar Coating)

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Chapter Outline
(continued)

What Does It Take to Become a Successful Manager?

Ability Motivation to Manage Opportunity to Manage

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Chapter Outline
(continued)

Learning to Manage
How Do Managers Learn to Manage? How Can Future Managers Learn to Manage?

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Chapter Outline
(continued)

Small-Business Management
Exploding Myths about Small Businesses Career Opportunities in Small Business Entrepreneurship

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MANAGEMENT DEFINED
Management is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources.

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Figure 1.1 Key Aspects of the Management Process

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Figure 1.2 Balancing Effectiveness and Efficiency

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Figure 1.4 Identifiable Functions in the Management Process

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PROFILE OF THE 21st CENTURY MANAGER Table 1.1 Administrative role: Team member / facilitator
/ teacher / sponsor / advocate / coach

Cultural orientation: Multicultural /

multilingual

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PROFILE OF THE 21st CENTURY MANAGER

(continued)

Quality / ethics / environmental impacts:

Forethought (unifying themes)

Power bases: Knowledge; relationships; rewards

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PROFILE OF THE 21st CENTURY MANAGER

(continued)

Primary organizational unit: Team Interpersonal dealings: Cooperation; win-win

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PROFILE OF THE 21st CENTURY MANAGER

(continued)

Learning: Continuous (lifelong; learner-driven)

Problems: Opportunities for learning and

continuous improvement

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PROFILE OF THE 21st CENTURY MANAGER

(continued)

Change and conflict: Anticipate / seek / channel Information: Increase access / share

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Figure 1.3 World Population Growth Projections

Source: Scott Pendleton, in The Christian Science Monitor, October 21, 1992. The Christian Science Publishing Society. Copyright Houghton Mifflin Company. All rights reserved.

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PROFILE OF THE 21st CENTURY MANAGER

(continued)

For Discussion:
1. What will be most difficult about being a manager in the 21st century? 2. What skills do you need to develop to match this profile of the 21st-century manager?
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Figure 1.5 Mintzbergs Managerial Roles (a)

Interpersonal roles

Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110. Copyright Houghton Mifflin Company. All rights reserved.

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Figure 1.5 Mintzbergs Managerial Roles (b)

Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110. Copyright Houghton Mifflin Company. All rights reserved.

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Figure 1.5 Mintzbergs Managerial Roles (c)

Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971): B97-B110. Copyright Houghton Mifflin Company. All rights reserved.

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ETHICS SURVEY For Discussion: What should managers do to

improve the ethical climate in todays organizations?

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Question: By aETHICS SURVEY of you have show of hands, how many

observed each of the following ethical problems in the workplace during the past year?

Lying to supervisors Lying on reports or falsifying records Stealing and theft Sexual harassment Abusing drugs or alcohol Conflict of interest
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THE INTERNET AND E-COMMERCE REVOLUTION For Discussion: What roles do the Internet and ecommerce play in your present life? How will the Web likely affect your life (both work and leisure) during the next 5 years?

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THE EVOLUTION OF PRODUCT QUALITY

The fix-it-in approach The inspect-it-in approach The build-it-in approach The design-it-in approach

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THINGS MANAGERS LOSE THEIR RIGHT TO DO Lose your temper. Be one of the gang. Bring your personal problems to work.

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THINGS MANAGERS LOSE THEIR RIGHT TO DO

(continued)

Vent your frustrations and express all your opinions at work. Resist change. Pass the buck on tough assignments. Get even with your adversaries.
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THINGS MANAGERS LOSE THEIR RIGHT TO DO

(continued)

Play favorites. Put your self-interests first. Ask others to do what you wouldnt do. Expect to be immediately recognized and rewarded for doing a good job.

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THINGS MANAGERS LOSE THEIR RIGHT TO DO

(continued)

For Discussion: Does this list make you more (or

less) interested in being a manager?

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THE FORMULA FOR MANAGERIAL SUCCESS

S=AxMxO
Success = Ability X Motivation to manage X Opportunity

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Figure 1.7 Executives, Administrators, and Managers in the U.S. Civilian Labor Force in 1999

Source: U.S. Bureau of Labor Statistics (http://stats.bls.gov/ news.release/ wkyeng.103.htm).

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MOTIVATION TO MANAGE SURVEY Instructions: Rate yourself on each of the

following dimensions and calculate your total score. 1. Favorable attitude toward those in positions of authority, such as superiors.
--2---3---4---5---6---7---8---9---10

1-

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MOTIVATION TO MANAGE SURVEY

(continued)

2.

Desire to engage in games or sports competition with peers.

1---2---3---4---5---6---7---8---9---10

3.

Desire to engage in occupational or workrelated competition with peers.

1---2---3---4---5---6---7---8---9---10

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MOTIVATION TO MANAGE SURVEY

(continued)

4.

Desire to assert oneself and take charge.

1---2---3---4---5---6---7---8---9---10

5.

Desire to exercise power and authority over others.

1---2---3---4---5---6---7---8---9---10
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MOTIVATION TO MANAGE SURVEY

(continued)

6.

Desire to behave in a distinctive way, which includes standing out from the crowd.
1---2---3---4---5---6---7---8---9---10

7.

Sense of responsibility in carrying out the routine duties associated with managerial work.
1---2---3---4---5---6---7---8---9---10
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MOTIVATION TO MANAGE SURVEY

(continued)

Total score=_______

Scale:
manage

7-21 = Low motivation to manage 22-49 = Moderate motivation to 50-70 = High motivation to manage

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HOW DO MANAGERS LEARN TO Making a big mistake MANAGE? Being overstretched by aHARD KNOCKS) (THE SCHOOL OF difficult assignment Feeling threatened Being stuck in an impasse or dilemma Suffering an injustice at work Losing out to someone else Being personally attacked
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Figure 1.8 The Honeywell Study: How Managers Learn to Manage

Source: Data from Ron Zemke, The Honeywell Studies: How Managers Learn to Manage, Training, 22 (August 1985): 46-51.

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HOW DO MANAGERS LEARN TO MANAGE? (THE SCHOOL OF HARD KNOCKS)

(continued)

For Discussion: What important life lessons

have you learned from any of these hard knocks?

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TRAIT PROFILE FOR ENTREPRENEURS

Focus on envisioned futures Emphasize external / market dimensions Display a medium-to-high tolerance for ambiguity Exhibit moderate-to-high risk-taking behavior Obtain motivation from a need to achieve Possess technical knowledge and experience in the innovative area
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Figure 1.9 Acquiring the Ability to Manage by Merging Theory and Practice

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TRAIT PROFILE FOR ENTREPRENEURS

(continued)

For Discussion: Do you have a strong desire to

start and run your own business? If so, how well do you fit this entrepreneurial profile? What are your chances of success?

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