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Chapter

Chapter

ManagingManaging

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McGraw-Hill/IrwinMcGraw-Hill/IrwinManagement, 7/eManagement, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Objectives

The major challenges of managing in the new competitive landscape

The drivers of competitive advantage for your company

The functions of management and how they are evolving in today’s business environment

The nature of management at different organizational levels

The skills you need to be an effective manager

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The ‘New’ World

“The Darwinian struggle of daily business will be won by people – and the organizations – that adapt most

successfully to the new world that is unfolding.”

- Business Week August 21-28, 2000

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Managing in the New Competitive Landscape

Four elements that are defining the current business environment Globalization Internet Importance of knowledge and ideas Collaboration across organizational

boundaries

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Comments on the Competitive Landscape

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Managing for Competitive Advantage

Good managers know that they are in a competitive struggle to survive and win

To survive and win you must gain an advantage over your competitors

The key to long-term success is the competitive advantage held by the company

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Managing for Competitive Advantage

Sources of competitive advantage Innovation Quality Speed Cost

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Managing for Competitive Advantage

Which strategy should a manager use? The best managers

and companies deliver them all

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The Functions of Management

Management is the process of working with people and resources to accomplish organizational goals

Good managers are both effective and efficient in this process

Efficient means goals are achieved with minimal resources wasted

Effective means that the organizational goals are achieved

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The Functions of Management

What do managers do? Plan Organize Lead Control

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The Functions of Management

Planning: Delivering Strategic Value Systematically making

decisions about the goals and activities that an individual, group, work unit, or organization will pursue in the future

Organizing: Building a Dynamic Organization Assembling and

coordinating human, financial, physical, informational, and other resources needed to achieve goals

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The Functions of Management

Leading: Mobilizing People Stimulating people to

be high performers; includes motivating and communicating with employees, individually and in groups

Controlling: Learning and Changing Monitoring performance

and making needed changes

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Management Levels and Skills

Three levels of management Top-Level: these managers are responsible

for the overall management and effectiveness of the organization

Middle-Level: these managers are located in the middle layers of the organizational hierarchy and report to top-level executives

Frontline: lower-level managers who supervise the operational activities of the organization

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Management Levels and Skills

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Managerial Roles

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Managerial Skills

Technical Skill: Ability to perform a specialized task involving a particular method or process

Conceptual and decisional skill: Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members

Interpersonal and Communication Skills: People skills; the ability to lead, motivate, and communicate effectively with others

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You and Your Career

Develop ‘EQ’ Be both a specialist and generalist Be Self-Reliant Be Connected Actively manage Relationships Survive and Thrive

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Looking Ahead to Chapter 2

The External Environment Organizational Culture The Macro-environment The competitive environment Environmental Analysis Responding to the Environment Culture and the Internal Environment of

Organizations

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Innovation

Tide took its well established detergent into new directions including Tide for cold-water washing, and a scrub brush to get out stains—all branded with the Tide name.

Innovation is today’s holy grail The most potent means of

creating new wealth It comes from people; it must be a

strategic goal; and it must be managed properly

Innovation is the introduction new goods and services

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Quality

Product Relates to the actual

product/service Is now system focused –

continuous improvement

Service Making things easy for

customers Customizing products Customer relationship

Management

•The excellence of your product (goods or services)

•Has increased in importance

•Has two vital areas

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Speed

Fast and timely execution, response, and delivery of results

Speed is no longer just a goal of some companies; it is a strategic imperative

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Cost

Keeping costs low in order to achieve profits and be able to offer prices that are attractive to consumers

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