CH-1 Managers and Entrepreneurs – Management : Book Guide

Chapter 1 Managers and Entrepreneurs END OF CHAPTER FEATURES • Terms to Understand – encourage students to make use of the flashcards available on the student website. Also, suggest they visit the Manager’s Toolkit section on the website for tips and suggestions for aspiring managers. • Action Learning Exercise – Do You Have the Right Stuff to be an Entrepreneur? Encourage students to complete the self-assessment, respond to the questions for consideration at the end, and discuss the results in class. • Ethics Exercise – Do The Right Thing, The off shoring of Jobs Issue. After reading both the American and the Indian perspectives have students respond to the questions that follow. A few possible responses they are likely to offer are included. What are the ethical implications of the following interpretations? 1. Corporations have an obligation to their customers and shareholders to hire the best talent anywhere in the world at the lowest cost. Answer: For American corporations the ethical concerns include working conditions and quality control. 2. Sending jobs to foreign countries is unpatriotic and unethical because it leads to unemployment and lower wages at home. Answer: Proponents for offshoring would argue that sending lower level jobs overseas creates opportunities for greater prosperity as manual labor workers retrain to become knowledge workers with increased earning potential. Companies would also express their obligation to earn a profit to continue to contribute to the nation’s economy and remain in business. Finally, there is the group that will agree with this statement creating great opportunity for dialogue. 3. Employees in low-wage countries deserve the opportunity to work hard and get ahead in life by working for foreign-owned companies. Answer: Proponents will say that this is the reality of a global economy and in the end commerce and jobs will balance out. Many will disagree with this notion arguing that companies should have a responsibility to the citizens in their home country first before providing opportunities for other nations. • Managers-In-Action Video Case Study – Preserve® by recycline – Corporate Culture Preserve® by recycline – corporate culture The Environment and Corporate Culture: A Natural Advantage Length: 7 minutes and 11 seconds Topics: Systems, Corporate culture, Core values, Entrepreneurship, Adapting to Change, Small Business Management, Creative Thinking, Decision making, Empowerment, Eco-friendliness, Green Products, and Competition. Company Background From the Preserve Products website December 30, 2010. http://www.preserveproducts.com/aboutus/index.html Preserve® makes stylish, high performance, eco-friendly products for your home. As a company, we strive to combine socially and environmentally responsible business practices with groundbreaking design to create products that people feel good about having in their homes. We believe that choosing eco-friendly products doesn't mean having to sacrifice quality, price, or performance. In 1996, founder and president Eric Hudson was committed to the need to use our earth's resources more efficiently and responsibly. The developing plastic recycling market represented a great new opportunity to reuse our earth's resources (plastics are made from oil and natural gas—making up roughly 9% of the world's petroleum usage). However, at the time that Preserve was formed, there was a lot of concern that recyclables were not necessarily turning into new products. Seeing an opportunity, Eric started Preserve to reuse Earth's precious resources and turn them back into products that people wanted. He worked with dentists, scientists and engineers to create Preserve's first high-quality product from recycled plastics—the Preserve Toothbrush. Since then, Preserve has grown into a dynamic, green lifestyle company offering a range of everyday products for almost every room in your home. Using innovative methods, we turn used materials into razors, colanders, cutting boards, tableware and more! As we grow, our core principles remain the same • Preserve products are made from 100% recycled plastics and 100% post-consumer paper. By using recycled materials, we save energy, preserve natural resources and create an incentive for communities to recycle. • All of our plastic products are recyclable, either through our postage-paid labels and mailers (toothbrushes and razor handles) or at the curb in communities that recycle #5 plastic. • We make our products in the USA, so that we can ship them shorter distances, using less fuel and limiting our environmental footprint. • We don't test on animals. Period. • Preserve products are made to last—and to look good doing it. The Preserve team is made up of 17 people and a host of talented interns who bike, walk, train, and drive (some in bio-diesel fueled cars) to our office outside of Boston intent on bringing Preserve and our mission into more homes every day. Synopsis of Video Preserve® by Recycline Founder Eric Hudson begins by sharing his vision and inspiration. Although he has a formal business education including an MBA, he wanted to start a company that was built around systems without the stiff corporate culture. It was important that the brand was a reflection of the company. He provides several examples of this including how employees commute to work on foot, bike, train, or drive in eco-friendly vehicles. Several employees discuss various aspects of their corporate culture. One talks about the entrepreneurial environment and how decisions get made more quickly because there are fewer employees which enables them to pull together the necessary resources, make a decision and move forward. Another component of the entrepreneurial spirit is apparent when an employee describes how everyone is encouraged to advance new initiatives (while continuing to complete their primary responsibilities). This approach fosters creativity and ambition. As a small company competing with big corporations like Gillette and Procter & Gamble, the ability to innovate and compete is essential. The video also describes how the company’s core values align with their brand. They are an environmentally friendly company committed to sustainability by producing green products. Although it is not articulated in the video, it appears that the employees feel empowered and seem to enjoy their work environment, including the corporate culture and mission. In addition to the questions below, consider engaging your students by having them visit the website to learn more about the Preserve process. After completing Chapter 7, you may wish to challenge your students to complete a SWOT analysis for Preserve based on what they learned from the video and the company website. Previewing Questions 1. From a management perspective, how would you describe efficiency and effectiveness? Answer: Efficiency enters the picture when the resources required to achieve an objective are weighed against what was actually accomplished. Effectiveness entails promptly achieving a stated organizational objective. 2. What overarching societal changes are impacting managers and organizations today? Answer: Globalization, the evolution of product quality, green management and sustainability, an ethical reawakening, and the Internet and Social Media revolution. 3. How do entrepreneurs and administrators differ? Answer: See Table 1.4, entrepreneurs tend to focus on what is possible preoccupied with “how to?” rather than “why not?”. Administrators tend to possess managerial knowledge and experience they use to focus on the present. They have lower risk tolerance. Postviewing Questions 4. As a small business, how does Preserve achieve both efficiency and effectiveness? Answer: The entrepreneurial environment fosters a place where employees are able to pull together the necessary resources quickly allowing them to be highly efficient. The clear branding, core values, and mission create an environment where employees know what the company goals are and they work to be effective in achieving them. 5. Of the five overarching changes mentioned in this chapter, choose one and discuss how Preserve is adapting to this change to gain a competitive advantage? Answer: Students may choose globalization, the evolution of product quality, green management and sustainability, an ethical reawakening, and the Internet and Social Media revolution. Most will likely choose the environment and sustainability as this is a major aspect of Preserve’s culture and brand. They leverage their eco-friendly products to gain competitive advantage. Change: Sustainability and Environmental Responsibility How Preserve is Adapting: Preserve, a company known for its commitment to sustainability, is leveraging the growing consumer demand for environmentally responsible products to gain a competitive advantage. The shift towards sustainability represents a significant change in consumer behavior and business practices, and Preserve has adeptly positioned itself to meet this demand through several key strategies: 1. Recycled Materials: Preserve manufactures its products using 100% recycled plastics, primarily sourced from post-consumer waste. This approach not only reduces the need for virgin materials but also diverts plastic waste from landfills, aligning with the growing environmental consciousness among consumers. 2. Product Design and Innovation: Preserve focuses on creating durable, high-quality products designed for longevity. By offering products that are both sustainable and functional, Preserve meets the dual consumer desire for eco-friendly products that do not compromise on performance. 3. Collaborative Partnerships: Preserve has formed partnerships with companies and organizations that share its commitment to sustainability. For example, the "Preserve Gimme 5" program encourages consumers to recycle #5 plastics (polypropylene) through collection bins placed in retail locations. This initiative not only promotes recycling but also builds brand loyalty by engaging consumers in the recycling process. 4. Transparency and Education: Preserve is transparent about its manufacturing processes and the environmental impact of its products. The company actively educates consumers on the importance of sustainability and the benefits of using recycled materials. By fostering an informed customer base, Preserve enhances its brand reputation and encourages more sustainable consumer choices. 5. Community Engagement: Preserve engages with local communities and environmental organizations to promote sustainability initiatives. By participating in community events and environmental campaigns, Preserve strengthens its brand presence and reinforces its commitment to social responsibility. Competitive Advantage: By adapting to the change towards sustainability and environmental responsibility, Preserve gains a competitive advantage in several ways: 1. Brand Differentiation: In a market where consumers are increasingly concerned about the environmental impact of their purchases, Preserve’s commitment to sustainability sets it apart from competitors. This differentiation helps attract environmentally conscious consumers who prioritize sustainable products. 2. Customer Loyalty: Preserve’s transparency and efforts to involve consumers in its recycling programs build strong customer loyalty. Customers who feel they are contributing to positive environmental change through their purchases are more likely to remain loyal to the brand. 3. Market Leadership: By leading the way in sustainable practices, Preserve positions itself as a market leader in the eco-friendly product segment. This leadership can attract partnerships, media attention, and further opportunities for growth. 4. Regulatory Compliance: As regulations around environmental sustainability become more stringent, Preserve’s proactive approach ensures it remains ahead of compliance requirements. This readiness can prevent potential legal issues and associated costs. In summary, Preserve’s adaptation to the overarching change towards sustainability and environmental responsibility not only aligns with current consumer trends but also establishes a strong foundation for long-term competitive advantage. Through innovative use of recycled materials, community engagement, and a focus on transparency, Preserve effectively meets the demands of today’s environmentally conscious market while positioning itself for future growth. 6. What is unique about Preserve’s work environment and employee values that allow them to collaborate, innovate, and make decisions quickly? Answer: It is apparent that employees buy-in to the company values as they commute to work using eco-friendly modes of transportation. With their entrepreneurial environment they can make decisions quickly and are encouraged to advance new initiatives. The culture and the values provide for collaboration and innovation. 7. What do Zappos and Preserve have in Common? Answer: Both companies have written core values that are consistent with their brand. 8. Why do you think company values are important and how do they impact companies like Zappos and Preserve? Answer: Core values are the foundation of each company’s corporate culture. They impact every aspect of the company by guiding management and employee decision making and actions. CLOSING CASE: SOLUTION Jennifer reingold samples a day in the life of a manager 1. How would you rate the effectiveness and efficiency of Jennifer Reingold (aka Kelly Myers)?. Answer: Not very good on either effectiveness or efficiency. It’s difficult to be either effective or efficient when you’re thrown into the middle of a job with no real experience and you end up fighting fires. 2. Which of the eight managerial functions are evident in this case? Answer: There are four obvious managerial functions, although a case could be made for more: • Planning – Jennifer tried to plan ahead by reviewing information on the company before the simulation. • Decision Making – Jennifer had to face one decision after another; a lot of her decisions involved how to prioritize to determine what to tackle first. • Communicating – e-mails and putting together a business plan. • Motivating – getting Marty’s buy-in on the centralization plan. 3. In what respects is this a manager’s typical day? Answer: Fighting fires, having too much to finish, the variety of roles and responsibilities. 4. Based on the trait profiles in Table 1.4 did Jennifer Reingold act more like an administrator or an entrepreneur? Answer: More like an administrator. Jennifer was definitely focused on the present and took few risks. The one place where she acted more like an entrepreneur was with her business plan—focusing on marketing rather than on the numbers—but that was only because she didn’t feel competent to handle the number side of the project. INSTRUCTIONAL TIPS 1. Have your students give brief, impromptu reports on their experiences either acting as managers or being managed. Encourage a combination of good and bad experiences. This can lead to an analysis of the importance of the role of managers, both in an organization and in individual lives. 2. Challenge your students to consider the managerial implications of various current issues. Topics such as global warming, economic shifts, national and international political tensions, terrorism, health care issues, and e-business can prompt vigorous discussion, as well as encouraging students to understand the global implications of a manager’s role. 3. One way to encourage “real world” exposure to the job of a manager is to have students interview a manager and then report their findings. Interview questions can be developed from the lists of managerial functions and roles, as well as from the information provided in “Some Managerial Facts of Life.” 4. To help students understand the different challenges facing small-business managers, you may have your students interview various small-business managers or owners and report their findings to the class. Questions could include the incentives available to motivate employees, the nature of their daily activities, dealing with constant change, surviving in tough times, and the differences they perceive between what they do and what managers in larger organizations do. 5. To gain a better understanding of the personality of the entrepreneur, have each student research and report on a well-known entrepreneur (these can be found in the Inc. magazine profiles or in Fast Company magazine: http://www.fastcompany.com/backissues). After the reports, students can compare notes on the characteristics the entrepreneurs share. Additional Discussion/Essay Questions 1. Which of the eight management functions do you think is the most important for a manager to succeed in the long run? Why? Answer: To determine which of the eight management functions is the most important for a manager to succeed in the long run, it is essential to first understand what these functions are. The eight management functions typically include planning, organizing, leading, controlling, staffing, coordinating, reporting, and budgeting. Each function plays a critical role in ensuring that a manager can effectively guide their team and organization towards achieving its goals. However, among these, planning stands out as the most crucial for long-term success. Planning: The Cornerstone of Long-term Success Planning is fundamentally about setting objectives and determining the best course of action to achieve them. It involves forecasting future conditions, defining goals, and developing strategies to attain these goals. Here's why planning is the most important function for a manager's long-term success: 1. Provides Direction and Focus: Planning helps managers establish clear, achievable goals. It gives direction to the organization, ensuring that all efforts are aligned towards a common objective. Without a well-defined plan, managers and their teams may drift aimlessly, leading to inefficiencies and a lack of purpose. 2. Facilitates Decision Making: Effective planning involves analyzing various alternatives and choosing the best course of action. This process aids in informed decision-making, allowing managers to anticipate potential challenges and opportunities. A well-thought-out plan reduces uncertainty and provides a framework for making consistent, rational decisions. 3. Enhances Coordination and Integration: Through planning, managers can coordinate activities and integrate resources across different departments. This ensures that all parts of the organization work together harmoniously towards common goals. Coordinated efforts lead to better resource utilization and avoid duplication of work. 4. Promotes Proactive Management: Planning encourages managers to look ahead and anticipate future trends and changes in the external environment. By being proactive, managers can develop contingency plans to address potential problems before they arise, thereby reducing risks and improving the organization’s adaptability. 5. Sets Performance Standards: Planning establishes benchmarks and performance standards against which actual performance can be measured. This allows managers to monitor progress, identify deviations from the plan, and take corrective actions. It also provides a basis for evaluating employee performance and organizational success. 6. Drives Innovation and Growth: A robust planning process encourages creativity and innovation. It challenges managers to think strategically about the future, explore new opportunities, and develop innovative solutions. This forward-thinking approach is essential for sustained growth and competitiveness in a dynamic business environment. Conclusion: While all eight management functions are important, planning is the foundation upon which the others are built. It sets the stage for organizing, leading, controlling, and all other managerial activities. Without a solid plan, managers may struggle to coordinate efforts, make informed decisions, and achieve long-term objectives. Therefore, planning is the most critical function for a manager to succeed in the long run, providing direction, fostering proactive management, and driving sustained organizational growth. 2. What managerial skills do you feel you have already? Which ones do you think will be important for you to develop to succeed in management? Answer: Reflecting on my current managerial skills and those I need to develop for future success in management requires a thoughtful assessment of my strengths and areas for improvement. Here are the managerial skills I believe I already possess and those I need to develop: Managerial Skills I Already Possess: 1. Communication Skills: • I excel in both verbal and written communication, which allows me to convey ideas clearly and effectively to my team. This skill is crucial for ensuring that everyone understands their roles and responsibilities. 2. Analytical Skills: • I have a strong ability to analyze data and make informed decisions based on my findings. This skill helps me identify problems, assess situations, and develop effective solutions. 3. Organizational Skills: • I am proficient in organizing tasks, setting priorities, and managing my time efficiently. This ability ensures that projects are completed on time and resources are used effectively. 4. Interpersonal Skills: • I have a natural ability to build relationships and work well with others. This skill helps me to motivate my team, resolve conflicts, and foster a collaborative work environment. 5. Problem-Solving Skills: • I am adept at identifying problems, brainstorming possible solutions, and implementing the best course of action. This skill enables me to tackle challenges head-on and find effective ways to overcome them. Managerial Skills to Develop: 1. Strategic Thinking: • To succeed in management, I need to enhance my ability to think strategically. This involves understanding the broader business environment, anticipating future trends, and making long-term plans that align with the organization's goals. 2. Leadership Skills: • While I have strong interpersonal skills, I need to develop my leadership capabilities further. This includes learning how to inspire and influence others, build a cohesive team, and lead by example. 3. Financial Acumen: • Understanding financial statements, budgeting, and financial planning is essential for making informed business decisions. Developing a strong financial acumen will help me manage resources more effectively and contribute to the organization's financial health. 4. Adaptability: • The ability to adapt to changing circumstances and remain flexible in the face of uncertainty is critical for successful management. I need to work on becoming more adaptable and open to new ideas and approaches. 5. Delegation Skills: • As a manager, it is important to delegate tasks effectively. This involves trusting others to take on responsibilities and empowering them to make decisions. Improving my delegation skills will help me manage my workload and develop my team's capabilities. 6. Conflict Resolution: • While I have good interpersonal skills, I need to strengthen my ability to manage and resolve conflicts. This involves developing techniques for addressing disagreements constructively and finding mutually beneficial solutions. Conclusion: In summary, while I possess strong communication, analytical, organizational, interpersonal, and problem-solving skills, there are several areas I need to develop to succeed in management. Enhancing my strategic thinking, leadership skills, financial acumen, adaptability, delegation skills, and conflict resolution abilities will be crucial for my growth as a manager. By focusing on these areas, I can become a more effective leader and contribute significantly to my organization's success. 3. Why is the small-business approach so successful in the United States? What can the government do to encourage the development of more small businesses? Answer: Small businesses play a crucial role in the economic landscape of the United States, contributing significantly to job creation, innovation, and economic dynamism. There are several reasons why the small-business approach is particularly successful in the U.S.: Reasons for Success of Small Businesses in the U.S. 1. Entrepreneurial Culture: The U.S. has a strong entrepreneurial culture that encourages individuals to start their own businesses. This culture is supported by a social environment that values innovation, risk-taking, and self-reliance. 2. Access to Capital: There is relatively easy access to various forms of capital in the U.S. Entrepreneurs can seek funding from venture capitalists, angel investors, crowdfunding platforms, and small-business loans from banks and the Small Business Administration (SBA). 3. Regulatory Environment: While regulation can sometimes be a challenge, the U.S. generally has a regulatory environment that is conducive to starting and running a small business. This includes protections for intellectual property, contract enforcement, and a relatively straightforward process for business registration. 4. Market Size and Diversity: The large and diverse U.S. market provides ample opportunities for small businesses to find niche markets and target specific customer segments effectively. 5. Support Systems and Networks: There are numerous support systems available for small businesses, including business incubators, accelerators, mentorship programs, and extensive networking opportunities. Organizations like the SBA and SCORE offer valuable resources and guidance. 6. Technological Advancements: The proliferation of technology and digital tools has leveled the playing field, allowing small businesses to compete more effectively with larger corporations. E-commerce platforms, digital marketing tools, and cloud-based services have all contributed to the success of small businesses. Government Initiatives to Encourage Small Business Development To further support and encourage the development of small businesses, the government can undertake several initiatives: 1. Access to Funding: Expand funding programs specifically for small businesses, such as providing more grants, low-interest loans, and microloans. Increasing the budget and reach of the SBA can also help more entrepreneurs access the capital they need. 2. Tax Incentives: Implement tax incentives and credits for small businesses, especially those that invest in innovation, technology, and job creation. Simplifying the tax code for small businesses can also reduce the administrative burden and costs associated with compliance. 3. Regulatory Simplification: Streamline and simplify regulatory processes to reduce the bureaucratic burden on small businesses. This includes making it easier to register a business, obtain necessary permits, and comply with labor laws and other regulations. 4. Education and Training: Invest in educational programs and training workshops that equip aspiring entrepreneurs with the skills and knowledge they need to start and grow their businesses. Partnerships with community colleges, universities, and non-profit organizations can be effective in providing these resources. 5. Infrastructure Development: Improve physical and digital infrastructure to support small businesses. This includes ensuring widespread access to high-speed internet, improving transportation networks, and providing affordable workspace options such as co-working spaces. 6. Government Contracts: Increase the share of government contracts awarded to small businesses. Implementing policies that prioritize small businesses in government procurement can provide significant revenue opportunities and help them scale. 7. Support for Innovation: Encourage innovation through grants, research and development tax credits, and support for technology transfer programs. Facilitating partnerships between small businesses and research institutions can also drive innovation and growth. 8. Networking and Mentorship Programs: Expand networking opportunities and mentorship programs that connect small business owners with experienced entrepreneurs and industry experts. This can provide valuable insights, advice, and support to help new businesses thrive. By fostering a supportive environment through these initiatives, the government can enhance the success and proliferation of small businesses, which in turn contributes to a robust and resilient economy. 4. What are some of the traits that characterize entrepreneurs, and how do they contrast with the traits of general administrators? Answer: Entrepreneurs and general administrators often possess distinct traits that align with their respective roles. Understanding these differences can illuminate why each type of individual excels in their specific domain. Traits of Entrepreneurs 1. Risk-Taking: Entrepreneurs are often characterized by their willingness to take risks. They are not deterred by uncertainty and are comfortable with the potential for failure, viewing it as an opportunity to learn and grow. 2. Innovative Thinking: Entrepreneurs are typically highly innovative. They have a knack for identifying gaps in the market and developing new products or services to fill those gaps. Their creativity allows them to think outside the box and come up with unique solutions. 3. Proactiveness: Entrepreneurs are proactive, always seeking out new opportunities and staying ahead of market trends. They are often the first to move into new markets or adopt new technologies. 4. Resilience: The entrepreneurial journey is fraught with challenges, and successful entrepreneurs exhibit a high level of resilience. They are able to bounce back from setbacks and persist in the face of adversity. 5. Passion and Vision: Entrepreneurs are driven by a strong passion for their ideas and a clear vision of what they want to achieve. This passion often inspires others and drives the entrepreneurial venture forward. 6. Decisiveness: Entrepreneurs are decisive and are able to make quick decisions, often with limited information. They trust their instincts and are comfortable with making high-stakes decisions. Traits of General Administrators 1. Organizational Skills: General administrators excel in organizing and managing resources efficiently. They are adept at creating systems and processes that ensure smooth operations within an organization. 2. Attention to Detail: Administrators pay close attention to detail, ensuring that all aspects of a project or operation are accounted for and running as planned. This meticulousness helps maintain high standards and consistency. 3. Reliability and Consistency: Administrators are reliable and consistent in their work. They focus on maintaining stability and predictability within the organization, ensuring that day-to-day operations run smoothly. 4. Risk Aversion: Unlike entrepreneurs, administrators tend to be more risk-averse. They prioritize minimizing risks and ensuring compliance with established policies and procedures. 5. Effective Communication: Administrators are skilled communicators, capable of conveying information clearly and effectively to their teams. They ensure that everyone is on the same page and that organizational goals are understood and pursued collectively. 6. Leadership and Management: Administrators possess strong leadership and management skills. They are able to motivate and guide their teams, delegate tasks appropriately, and manage personnel effectively. Contrasts Between Entrepreneurs and General Administrators 1. Risk Orientation: Entrepreneurs embrace risk and are willing to navigate uncertainty, while administrators focus on risk mitigation and maintaining stability. 2. Innovation vs. Efficiency: Entrepreneurs prioritize innovation and are constantly seeking new opportunities for growth. Administrators prioritize efficiency and effectiveness, ensuring that existing processes and systems operate optimally. 3. Proactivity vs. Reactivity: Entrepreneurs are proactive, often initiating change and exploring new avenues. Administrators are more reactive, responding to changes and challenges as they arise to maintain smooth operations. 4. Visionary vs. Operational Focus: Entrepreneurs are visionaries who focus on long-term goals and big-picture thinking. Administrators focus on the operational aspects, ensuring that the organization functions effectively on a day-to-day basis. 5. Flexibility vs. Structure: Entrepreneurs thrive in flexible, dynamic environments where they can adapt quickly. Administrators excel in structured environments where processes and procedures are clearly defined. By understanding these traits, organizations can better appreciate the complementary roles that entrepreneurs and administrators play. Entrepreneurs drive innovation and growth, while administrators ensure that these initiatives are implemented efficiently and sustainably. 5. If you had a choice, would you work for someone else or start your own business? Why? Answer: If I had a choice between working for someone else or starting my own business, I would choose to start my own business. This decision is influenced by several personal and professional factors: Personal Fulfillment and Passion 1. Passion for Innovation: I have a strong passion for innovation and creating new solutions to problems. Starting my own business would allow me to channel this passion into developing unique products or services that could make a meaningful impact on the market and society. 2. Autonomy and Control: Being an entrepreneur provides a high level of autonomy and control over decisions. I value the freedom to set my own goals, define my work environment, and make strategic decisions without the constraints often found in traditional employment. Professional Growth and Opportunities 1. Growth Potential: Starting a business offers the potential for significant professional and financial growth. The opportunity to scale a business, enter new markets, and achieve financial independence is highly appealing to me. 2. Skill Development: Entrepreneurship requires a diverse skill set, from marketing and finance to leadership and strategic planning. The challenge of developing and honing these skills is something I find exciting and fulfilling. Impact and Legacy 1. Creating Jobs: By starting my own business, I would have the opportunity to create jobs and contribute to the economy. This aspect of entrepreneurship is particularly motivating, as it allows me to support others and foster a positive work culture. 2. Legacy Building: Building a business from the ground up provides the chance to leave a lasting legacy. I aspire to create something enduring that reflects my values and vision, and that can positively influence future generations. Balancing Risks and Rewards 1. Risk Management: While starting a business involves inherent risks, I am confident in my ability to manage these risks through careful planning, research, and a willingness to learn from failures. The potential rewards of entrepreneurship outweigh the risks for me. 2. Flexibility: Entrepreneurship offers flexibility in terms of work hours and location. This flexibility is important for achieving a work-life balance that suits my personal and family needs. Conclusion In conclusion, the choice to start my own business stems from a desire for personal fulfillment, professional growth, and the ability to make a lasting impact. The challenges and rewards of entrepreneurship align with my aspirations and values, making it the preferred path for my career. However, it is essential to recognize that this choice may not be suitable for everyone, as individual circumstances and goals vary widely. For those who prefer stability, structured environments, and less risk, working for someone else can be an equally fulfilling and viable option. Discussion Starter:
Bad managers; Learning to manage The fact that bad bosses are the subject of movies, television sitcoms, and cartoons is because so many people can relate to the situations presented through various forms of humor. Although these satirical portrayals of horrible bosses provide a great source for laughter, they also are sad reminder for many of their daily lives at work. How do so many horrible managers climb the ladder? For Discussion: 1. What lessons have bad managers in your life taught you about how not to manage? Answer: Reflecting on experiences with bad managers can provide valuable lessons on how not to manage, highlighting practices and behaviors to avoid in leadership roles. Here are some key lessons I've learned from bad managers in my life: Lack of Communication 1. Poor Communication: Bad managers often fail to communicate effectively. They might provide unclear instructions, neglect to share important information, or avoid regular check-ins. This leads to confusion, mistakes, and a lack of direction among team members. Effective management requires clear, consistent, and transparent communication. 2. Ignoring Feedback: Managers who do not listen to or value feedback from their team create a demoralizing work environment. Ignoring feedback can result in unresolved issues and missed opportunities for improvement. Good managers actively seek and act upon feedback to foster a collaborative and responsive workplace. Micromanagement 1. Micromanagement: Overly controlling managers who micromanage every detail can stifle creativity, reduce employee autonomy, and increase stress levels. Employees feel undervalued and distrusted, which can lead to decreased job satisfaction and productivity. Trusting employees and empowering them to make decisions is crucial for effective management. Lack of Empathy and Support 1. Lack of Empathy: Managers who lack empathy fail to understand or address the personal and professional needs of their employees. This can lead to a disengaged and unmotivated workforce. Demonstrating empathy, showing genuine concern for employees' well-being, and supporting them through challenges are essential for building a positive work environment. 2. Failing to Support Growth: Managers who do not support their team's professional development hinder both individual and organizational growth. Bad managers might overlook training opportunities, fail to provide constructive feedback, or neglect to recognize achievements. Good managers invest in their employees' development and celebrate their successes. Favoritism and Unfair Treatment 1. Favoritism: Showing favoritism or unfairly distributing opportunities and rewards can create resentment and divide the team. It undermines trust and morale. Effective managers treat all employees fairly and recognize contributions based on merit. Incompetence and Lack of Accountability 1. Incompetence: Managers who lack the necessary skills, knowledge, or experience can lead their teams astray. Their poor decision-making and inability to provide proper guidance can cause frustration and hinder performance. Continuous learning and competence are essential for effective leadership. 2. Lack of Accountability: Managers who do not hold themselves accountable for their actions or decisions set a poor example. Blaming others for mistakes or failing to take responsibility can erode respect and trust. Good managers lead by example, taking ownership of their actions and encouraging accountability within their teams. Resistance to Change 1. Resistance to Change: Managers who are resistant to change or new ideas can stifle innovation and adaptability. In a rapidly evolving business environment, being open to change and encouraging a culture of continuous improvement are critical for success. Conclusion In conclusion, the lessons learned from bad managers emphasize the importance of effective communication, trust, empathy, support for growth, fairness, competence, accountability, and openness to change. By avoiding the pitfalls of poor management practices, aspiring leaders can create a positive, productive, and motivating work environment that benefits both employees and the organization. 2. What does it take to turn around a bad manager? Answer: Turning around a bad manager requires a comprehensive approach that addresses the root causes of their ineffective management and fosters positive change. Here are key strategies to facilitate this transformation: Identifying and Addressing Core Issues 1. Conducting a Thorough Assessment: The first step is to identify the specific behaviors and practices that make the manager ineffective. This can be done through feedback from team members, performance reviews, and self-assessment tools. Understanding the core issues is essential for targeted improvement. 2. Providing Constructive Feedback: Honest and constructive feedback is crucial. It should be specific, focusing on observable behaviors and their impacts, rather than personal attributes. The feedback should be delivered in a supportive manner, emphasizing the goal of professional growth. Implementing Professional Development 1. Training and Development Programs: Enrolling the manager in leadership development programs can equip them with essential skills. Training on communication, conflict resolution, emotional intelligence, and delegation can address specific areas of weakness. 2. Coaching and Mentoring: Pairing the manager with a coach or mentor can provide personalized guidance and support. Coaches and mentors can offer valuable insights, share experiences, and provide strategies for effective management. Enhancing Self-Awareness and Emotional Intelligence 1. Encouraging Self-Reflection: Encouraging the manager to engage in self-reflection can help them recognize their behaviors and their effects on the team. Tools like journaling, self-assessment questionnaires, and reflective exercises can be useful. 2. Building Emotional Intelligence: Developing emotional intelligence is key to improving interpersonal relationships and management effectiveness. Training in self-awareness, self-regulation, empathy, and social skills can help the manager better understand and respond to their team's needs. Creating a Supportive Environment 1. Setting Clear Expectations and Goals: Clearly defined expectations and goals provide a roadmap for improvement. Regularly reviewing progress towards these goals helps keep the manager accountable and motivated. 2. Fostering a Supportive Culture: Creating a culture of continuous improvement and support within the organization can help the manager feel more comfortable seeking help and making changes. Encouraging open communication and providing resources for development can reinforce this culture. Monitoring Progress and Providing Ongoing Support 1. Regular Check-Ins and Feedback: Continuous monitoring of the manager's progress through regular check-ins and feedback sessions helps track improvement and address any emerging issues promptly. This also reinforces the commitment to their development. 2. Recognizing Improvements: Acknowledging and rewarding positive changes and improvements can motivate the manager to continue their development journey. Positive reinforcement helps build confidence and reinforces desired behaviors. Addressing Structural and Systemic Issues 1. Reviewing Organizational Policies and Practices: Sometimes, a manager's poor performance may be influenced by broader organizational issues. Reviewing and adjusting policies, practices, and the organizational culture can create an environment that supports better management practices. Conclusion Turning around a bad manager requires a multifaceted approach that includes assessment, feedback, training, self-awareness, support, and continuous monitoring. By addressing the underlying issues and providing the necessary resources and environment for growth, organizations can help bad managers transform into effective leaders, ultimately benefiting the entire team and organization. Discussion Starter:
Entrepreneurs; Small Business; Family Businesses Family owned businesses present some unique opportunities and challenges for the family members. Many family owned businesses assume that the next generation will automatically be groomed for future leadership positions. In contrast, there are some business owners that prefer their family members have nothing to do with the business. What would you do if you owned a business and had kids? For Discussion: 1. From the viewpoint of a family member, what would be the pros and cons of working for a family-owned and -operated business? Answer: Working for a family-owned and -operated business can offer a unique set of advantages and challenges. Here are the pros and cons from the viewpoint of a family member: Pros 1. Trust and Loyalty: Being part of a family business often means a higher level of trust and loyalty. Family members are typically more committed to the success of the business and can rely on each other for support. 2. Shared Vision and Values: Family businesses often have a strong sense of shared vision and values, which can create a cohesive and motivated work environment. This alignment can lead to a more unified approach to business goals and decision-making. 3. Long-Term Orientation: Family businesses tend to have a long-term perspective, focusing on sustainability and legacy rather than short-term profits. This can lead to more stable and thoughtful business strategies. 4. Flexibility and Informality: The work environment in family businesses is often more flexible and informal, allowing for quicker decision-making and a more personal approach to management and operations. 5. Opportunities for Growth: Family members might have more opportunities for growth and advancement within the business. The trust and familiarity within the family can lead to more responsibilities and leadership roles being offered. Cons 1. Blurring of Personal and Professional Boundaries: One of the biggest challenges in a family business is the overlap between personal and professional relationships. Conflicts in the business can spill over into family life and vice versa, making it difficult to separate the two. 2. Potential for Nepotism: Family businesses might face accusations of nepotism, where family members are favored for promotions and opportunities regardless of their qualifications. This can lead to resentment among non-family employees and affect morale. 3. Limited Career Diversification: Working in a family business can sometimes limit exposure to different industries and career paths. Family members might feel obligated to stay within the business even if they have other professional interests or aspirations. 4. Succession Challenges: Succession planning can be a complex and sensitive issue in family businesses. Conflicts can arise over who should take over leadership roles, and differing visions for the future of the business can create tension. 5. Resistance to Change: Family businesses can sometimes be resistant to change, holding onto traditional ways of doing things. This can hinder innovation and adaptation in a rapidly changing business environment. Conclusion From the viewpoint of a family member, working for a family-owned and -operated business offers the advantages of trust, shared values, long-term orientation, flexibility, and growth opportunities. However, it also presents challenges such as blurred boundaries, potential nepotism, limited career diversification, succession issues, and resistance to change. Balancing these pros and cons requires clear communication, professional management practices, and a commitment to both family and business success. 2. From the viewpoint of someone who is not a family member, what would be the pros and cons of working for a family-owned and -operated business? Answer: Working for a family-owned and -operated business as a non-family member can provide unique experiences and challenges. Here are the pros and cons from this perspective: Pros 1. Strong Organizational Culture: Family-owned businesses often have a strong, cohesive culture based on shared values and long-term goals. This can create a supportive and close-knit work environment that is rewarding to be a part of. 2. Stability and Loyalty: These businesses tend to prioritize stability and long-term success over short-term gains. This focus can translate into job security and loyalty to employees, as family-owned businesses often have lower turnover rates. 3. Quick Decision-Making: The flexibility and informal structure in family businesses can lead to faster decision-making processes. Employees may find it easier to communicate ideas and see them implemented without the bureaucratic delays often found in larger corporations. 4. Opportunities for Broad Experience: Non-family employees in a family business might have the opportunity to take on a variety of roles and responsibilities, leading to a more diverse skill set and broader experience. 5. Personal Relationships: Working closely with family members can lead to strong personal relationships. Non-family employees may feel valued and appreciated, becoming almost like an extended part of the family. Cons 1. Limited Career Advancement: Opportunities for advancement can be limited, as key leadership positions might be reserved for family members. This can be frustrating for non-family employees who aspire to higher roles within the company. 2. Potential for Nepotism: Non-family employees may feel that family members are favored, regardless of their performance or qualifications. This perceived or actual nepotism can lead to resentment and lower morale. 3. Blurred Professional Boundaries: The informal nature of family businesses can sometimes blur professional boundaries, leading to unclear job roles and expectations. This can result in confusion and challenges in maintaining professionalism. 4. Resistance to Change: Family businesses may be resistant to change, sticking to traditional ways of doing things. This resistance can stifle innovation and make it difficult for non-family employees to implement new ideas or processes. 5. Conflict and Tension: Family dynamics can sometimes create conflict and tension within the business. Non-family employees may find themselves caught in the middle of family disputes, which can create an uncomfortable and unproductive work environment. Conclusion From the viewpoint of a non-family member, working for a family-owned and -operated business offers the benefits of a strong organizational culture, stability, quick decision-making, diverse experience, and personal relationships. However, it also presents challenges such as limited career advancement, potential nepotism, blurred boundaries, resistance to change, and potential conflict. Balancing these pros and cons requires clear communication, fair management practices, and an understanding of the unique dynamics of family-owned businesses. BONUS VIDEOS BIZFLIX VIDEO CASES FROM THE TEXTBOOK WEBSITE Discussion Questions and Guide Chapter 1 Video Case: In Good Company Video Case Synopsis A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age. Carter Duryea (Topher Grace), Dan’s new boss, wants to prove his worth as the new marketing chief at Sports America, Waterman Publishing’s flagship magazine. Carter applies his unique approaches while dating Dan’s daughter, Alex (Scarlett Johansson). This sequence starts with Carter Duryea entering Dan Foreman’s office. It follows Foreman’s reaction toward the end of a speech given by Teddy K. (Malcolm McDowell), Globecom CEO. Carter Duryea enters while saying, “Oh, my God, Dan. Oh, my God.” Mark Steckle (Clark Gregg) soon follows. The sequence ends with Carter asking, “Any ideas?” Dan Foreman says, “One.” Video Case Discussion Questions and Suggested Answers 1. Which of Wilson’s management skills discussed in this chapter does Mark Steckle possess? Which does he lack? Answer: Mark Steckle likely has the technical skills that helped him rise to his current position of Marketing Manager in Waterman Publishing. However, he does not seem to fit any of the teambuilding and drive skills discussed in the chapter. For example, he uses threats and intimidation to exert pressure instead of using the listening, coaching, and cooperating skills described earlier. 2. The sequence shows three people who represent different hierarchical levels in the company. Which hierarchical levels do you attribute to Carter Duryea, Dan Foreman, and Mark Steckle? Answer: Mark Steckle holds a mid-level management position and Carter Duryea reports to him. Dan Foreman has a non-management position and reports to Duryea. Graphically you can think of these relationships as: Steckle  Duryea  Foreman. 3. Critique the behavior shown in the sequence. What are the positive and negative aspects of the behavior shown? Answer: From the clip, students should assume that Mark has not given either Carter or Dan any notice of poor performance before he announces he is firing either of them. He also violates the strong human resource management recommendation of performance documentation. Mark does not follow any disciplinary procedures commonly recommended in human resource management. Carter and Dan could likely appeal their discharge and have it reversed. You can extend the discussion of the scene to consider the ethics of Mark’s actions. Bonus lecture I. WHAT DOES IT TAKE TO BECOME A SUCCESSFUL MANAGER? Although there is no sure-fire formula for getting to the top of the managerial ladder, there are three general preconditions for lasting managerial success: Ability (A) Motivation to Manage (M) Opportunity (O) The formula for success (S) is S = A  M  O. The multiplication symbol is used because a balanced combination of the three is needed. The absence of any one will cancel out the others. A. Ability 1. Managerial ability is the demonstrated capacity to achieve organizational objectives both effectively and efficiently. 2. AACSB International (the Association to Advance Collegiate Schools of Business) has assembled a list of skills and characteristics that help define the concept: a) Leadership b) Oral communication and presentation skills c) Written communication d) Planning and organizing e) Information gathering and problem analysis f) Decision making g) Delegation and control h) Self-objectivity (being aware of one’s strengths and limitations) i) A willingness and desire to lead others in new directions B. Motivation to Manage 1. Ability will not lead to success without a persistent desire to move ahead. 2. Motivation to manage is the desire to succeed in managerial functions and roles. 3. There are seven dimensions that John B. Miner, a management researcher, uses to measure one’s motivation to manage. a) Favorable attitude toward those in positions of authority, such as superiors b) Desire to engage in games or sports competition with peers c) Desire to engage in occupational or work-related competition with peers d) Desire to assert oneself and take charge e) Desire to exercise power and authority over others f) Desire to behave in a distinctive way, which includes standing out from the crowd g) A sense of responsibility in carrying out the routine duties associated with managerial work 4. The higher the scores on these traits, the greater the motivation to manage. 5. This instrument has been used to study business students over the years, with some interesting results. a) During the 1960s and early 1970s, motivation to manage in the United States declined. The decline later stopped, but the motivation level stayed low. b) During this time, female students moved up on the scale until they were even with the male students. c) In more recent international studies by Miner, students from Mexico, Japan, China, Korea, and Taiwan scored consistently higher than U.S. students. Miner perceives this pattern as a potential threat to U.S. global competitiveness. C. Opportunity to Manage There are plenty of opportunities around the world for those seeking a managerial position. 1. Managerial opportunities in the United States have increased 11 percent since 1992, and women are approaching an equal footing with men in this area. 2. There will always be a need for good managers. bONUS PROJECT ASSIGNMENT What Do You Want to Do When You Grow Up? Inside the company that developed the game Cranium, there is no President, no Vice President of Operations, no Director of Marketing. Instead, titles include Grand Pooh-bah, Chief Noodler, and Major Mojo. Goals, culture, and strategies are unique and nontraditional too—with the kind of flexibility that makes the idea of starting your own company so appealing. Other companies have generated equally nonstandard titles—some to represent a new approach to an old position, some describing all new positions. A recruiter at Florida-based Xcelerate has a Chief Talent Scout in charge of recruiting. A Chief Experience Officer is in charge of every aspect of a customer’s contact with a firm, and with the increasing concerns of security and exposure, some firms are finding a need for a Director of Privacy. At the same time, careers are changing too. Now it’s rare for a person to stay in the same company, job category, or even field during the course of a career. A clear understanding of who you are and what kind of position will best suit your skills and temperament will help you effectively position yourself to achieve that position. As the titles above show, it’s important to think “outside the box” when determining your ideal position. After all, CEOs are really a dime a dozen, when compared to the number of “Chief Solvers of Difficult Problems.” Visualizing your ideal job is the first step to achieving it. If you don’t know where you want to go, you don’t have much of a chance of getting there. The challenge is to avoid the clichés and standard approaches. We’re also not talking about money, status, or any position that already exists. Using the questions provided below as a starting point, complete the following assignments. 1. Define your ideal job, along with an appropriate job title. Ideal Job Title: Chief Innovation Catalyst 2. Describe it in two minutes or less. As the Chief Innovation Catalyst, my role is to drive creativity and innovation across the organization, fostering a culture that encourages out-of-the-box thinking and continuous improvement. I thrive on identifying new opportunities, developing creative solutions, and leading projects that challenge the status quo. I am passionate about collaborating with diverse teams to bring fresh perspectives and novel ideas to life, ensuring that our company remains at the forefront of industry trends and technological advancements. 3. Write a 30-second ad for applicants to fill a job for which you are the ideal candidate. Are you a visionary thinker who thrives on creativity and innovation? Do you love solving complex problems with unique solutions? Join us as the Chief Innovation Catalyst, where you'll lead cross-functional teams to develop groundbreaking ideas and drive our company's innovation strategy. We're looking for someone who can inspire and energize others, foster a culture of continuous improvement, and turn imaginative concepts into reality. If you're ready to make a significant impact and push the boundaries of what's possible, apply now! Thought-provoking questions: • What are you really good at and love doing? What are you really bad at and hate doing? I am really good at brainstorming and developing creative solutions to complex problems, and I love collaborating with others to bring these ideas to fruition. I am bad at and hate doing highly repetitive tasks that lack variety and challenge. • Do you get more energized by working with others or by working by yourself? I get more energized by working with others, especially in a collaborative and dynamic team environment where ideas can be exchanged and developed collectively. • How much patience do you have for repetitive tasks? I have very little patience for repetitive tasks. I prefer engaging in activities that offer variety and challenge. • What proportion of creative work do you want in your day? I want a significant proportion of my day, ideally around 70-80%, to involve creative work, including brainstorming sessions, innovation workshops, and strategic planning. • Do you want to specialize in something and understand and do it very well, or do you want to have a variety of responsibilities? I prefer to have a variety of responsibilities that allow me to engage with different aspects of the business and continuously learn new things. • Do you prefer stability or change in your work? I prefer change in my work. I thrive in dynamic environments where I can constantly adapt and innovate. • Are you more comfortable with multitasking or with linear projects? I am more comfortable with multitasking, as it allows me to juggle multiple projects and ideas simultaneously, keeping me engaged and motivated. • What kind of problems do you like to solve? Logistical? Innovative? People? Other? I like to solve innovative problems that require creative thinking and novel solutions. I also enjoy addressing people-related challenges that involve enhancing team collaboration and morale. • Do you prefer to gather information together or disseminate it? I prefer to gather information together and synthesize it into actionable insights and innovative ideas. • Would you rather make decisions independently or as part of a team? I prefer to make decisions as part of a team, valuing the diverse perspectives and collaborative input that enhance the decision-making process. • Do you want to work with the same group of people all the time or do you prefer a constant variety? I prefer a constant variety in the people I work with, as it brings fresh perspectives and keeps the work environment dynamic and stimulating. Solution Manual for Management Robert Kreitner, Charlene Cassidy 9781111221362