Chapter 1

Management
 What is management?
After reading the next two sections,
you should be able to:

1. Describe what management is.

2. Explain the four functions of management.
 Management is…

Efficiency
Efficiency
Getting
Getting work
work
done
done through
through
others
others Effectiveness
Effectiveness
Management functions

Planning

Organising

Leading

Controlling
 Planning

Determining organisational goals

and a means for achieving them.
 Organising

• Deciding where
decisions will be made.
• Who will do what jobs
and tasks.
• Who will work for
whom.
 Leading
Inspiring
Inspiring
Leading
Leading
Motivating
Motivating

For Anne Mulcahy, CEO of Xerox, the key to successful leadership

is communicating with the company’s most important constituents:
employees and customers.
 Controlling

Monitoring progress toward goal

achievement and taking corrective
action when needed.
 The control process
Set standards to
achieve goals

Make changes Compare actual

to return performance to
performance to standards
standards
 What do managers do?
After reading the next two sections,
you should be able to:

3. Describe different kinds of managers.

4. Explain the major roles and sub-roles that
managers perform in their jobs.
Kinds of managers
• Top managers

• Middle managers

• First-line managers

• Team leaders
 Top managers
• Chief Executive Officer (CEO)

• Chief Operating Officer (COO)

• Chief Financial Officer (CFO)

• Chief Information Officer (CIO)

Responsibilities of top managers

Creating
Creating aa context
context for
for change.
change.

Developing
Developing commitment
commitment
and
and ownership
ownership in
in employees.
employees.
Creating
Creating aa positive
positive organisational
organisational
culture
culture through
through language
language and
and action.
action.

Monitoring
Monitoring their
their business
business environments.
environments.
 Middle managers

• Factory manager

• Regional manager

• Divisional manager
Responsibilities of middle managers

Plan
Plan and
and allocate
allocate resources
resources to
to meet
meet objectives.
objectives.

Coordinate
Coordinate and
and link
link groups,
groups, departments
departments and
and
divisions.
divisions.

Monitor
Monitor and
and manage
manage the
the performance
performance
of
of sub-units
sub-units and
and managers
managers who
who report
report to
to them.
them.

Implement
Implement changes
changes oror strategies
strategies
generated
generated by
by top
top managers.
managers.
First-line managers
• Office manager

• Shift supervisor

• Department manager
Responsibilities of first-line managers

Manage
Manage the
the performance
performance of
of entry-level
entry-level employees.
employees.

Encourage,
Encourage, monitor
monitor and
and reward
reward the
the performance
performance
of
of workers.
workers.

Teach
Teach entry-level
entry-level employees
employees how
how to
to do
do their
their jobs.
jobs.

Make
Make detailed
detailed schedules
schedules and
and operating
operating plans.
plans.
Responsibilities of team leaders

Facilitate
Facilitate team
team performance.
performance.

Manage
Manage external
external relations.
relations.

Facilitate
Facilitate internal
internal team
team relationships.
relationships.
 Mintzberg’s managerial roles

Interpersonal Informational Decisional

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

handler
Liaison Spokesperson
Resource
allocator

H. Mintzberg, The Nature of Managerial Work. (New York: Harper & Row, 1973). Negotiator
 Managerial roles
Interpersonal roles

Figurehead
Figurehead Managers
Managersperform
performceremonial
ceremonialduties.
duties.

Leader
Leader Managers
Managersmotivate
motivateand
andencourage
encourage
workers
workersto
toaccomplish
accomplishobjectives.
objectives.

Liaison
Liaison Managers
Managersdealdealwith
withpeople
peopleoutside
outside
their
theirunits.
units.
 Managerial roles
Informational roles
Managers
Managersscan
scantheir
theirenvironment
environment
Monitor
Monitor for
forinformation.
information.

Managers
Managersshare
shareinformation
information
Disseminator
Disseminator with
withothers
othersin
intheir
theircompany.
company.

Managers
Managersshare
shareinformation
information
Spokesperson
Spokesperson with
withothers
othersoutside
outsidetheir
their
departments
departmentsororcompanies.
companies.
 Managerial roles
Decisional roles

Entrepreneur
Entrepreneur Managers
Managersadapt
adaptto
toincremental
incrementalchange.
change.

Disturbance Managers
Managersrespond
respondto
toproblems
problemsthat
that
Disturbance
handler demand
demandimmediate
immediateaction.
action.
handler
Managers
Managersdecide
decidewho
whogets
gets
Resource
Resource what
whatresources.
resources.
allocator
allocator
Managers
Managersnegotiate
negotiateschedules,
schedules,
Negotiator
Negotiator projects,
projects,goals,
goals,outcomes,
outcomes,resources
resources
and
andraises.
raises.
 Manager’s quick response
saves clients
• Anne Mulcahy, CEO of Xerox, took over when
the company was US$17.1 billion in debt.
• Anne travelled, sometimes to two or three
cities per day, imploring staff to watch costs
and keep selling.
• Thanks to motivational actions, Xerox has now
returned to profitability and financial stability.
 What does it take to be a manager?
After reading the next three sections,
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.
What companies look for in managers

Technical
Technical skills
skills Human
Human skills
skills

Conceptual
Conceptual skills
skills Motivation
Motivation to
to manage
manage
 Management skills
Skills are more or less important at different levels
of management:
 Mistakes managers make
1.
1. Insensitive
Insensitiveto
toothers
others
2.
2. Cold,
Cold,aloof,
aloof,arrogant
arrogant
3.
3. Betrayal
Betrayalof
oftrust
trust
4.
4. Overly
Overlyambitious
ambitious
5.
5. Specific
Specificperformance
performanceproblems
problemswith
withthe
thebusiness
business
6.
6. Overmanaging:
Overmanaging: unable
unableto
todelegate
delegateor
orbuild
buildaateam
team
7.
7. Unable
Unableto
tostaff
staffeffectively
effectively
8.
8. Unable
Unableto
tothink
thinkstrategically
strategically
9.
9. Unable
Unableto
toadapt
adaptto
toboss
bosswith
withdifferent
differentstyle
style
10.
10.Overdependent
Overdependentononadvocate
advocateor
ormentor
mentor

Adapted from McCall & Lombardo, “What Makes a Top Executive?” Psychology Today, Feb 1983.
 Transition to management (the first year)
Managers’ After six months After a year
initial expectations as a manager as a manager

 
Initial
Initialexpecta-
expecta- 
NoNolonger
longer‘doer’
‘doer’
Be
Bethe
theboss
boss
tions
tionswere
werewrong
wrong 

Formal
Formalauthority
authority Communication,
Communication,

Fast
Fastpace
pace listening,
listening,positive
positive

Manage
Managetasks
tasks  reinforcement
reinforcement
Heavy workload
Heavy workload

Job
Jobis
isnot
not 

Job
Jobis
isto
tobe
be Learning
Learningto toadapt
adapt
managing
managingpeople
people and control stress
problem-solver
problem-solver and control stress
and
andtroubleshooter
troubleshooter 
Job
Jobis isabout
aboutpeople
people
development
development
 Why management matters
After reading this section,
you should be able to:

8. Explain how and why companies can create

competitive advantage through people.
Competitive advantage through people
Management
Management practices
practices in
in top
top performing
performing companies
companies

1.
1. Employment
Employment security
security
2.
2. Selective
Selective hiring
hiring
3.
3. Self-managed
Self-managed teams
teams and
and decentralisation
decentralisation
4.
4. High
High wages
wages contingent
contingent on
on organisational
organisational performance
performance
5.
5. Training
Training and
and skill
skill development
development
6.
6. Reduction
Reduction of
of status
status differences
differences
7.
7. Sharing
Sharing information
information
Competitive advantage through people

People who worked for companies on

Fortune’s list of ‘100 Best Companies to
Work For’ are consistently more
satisfied with their jobs. These
differences strongly relate to stock
market performance.
Competitive advantage through people
Competitive
Competitive advantages
advantages of
of
well-managed
well-managed companies
companies

Sales revenues

Profits

Customer satisfaction

Stock market returns