Chapter 1 Managing and Performing LEARNING OBJECTIVES 1 Summarize the major challenges of managing in the new competitive landscape. 2 Describe the sources of competitive advantage for a company. 3 Explain how the functions of management are evolving in today’s business environment. 4 Compare how the nature of management varies at different organizational levels. 5 Define the skills you need to be an effective manager. 6 Understand the principles that will help you manage your career. CHAPTER OUTLINE Managing in a Competitive World Globalization Technological Change Knowledge Management Collaboration across Boundaries Managing for Competitive Advantage Innovation Quality Service Speed Cost Competitiveness Sustainability Delivering All Types of Performance The Functions of Management Planning: Delivering Strategic Value Organizing: Building a Dynamic Organization Leading: Mobilizing People Controlling: Learning and Changing Performing All Four Management Functions Management Levels and Skills Top-Level Managers Middle-Level Managers Frontline Managers Working Leaders with Broad Responsibilities Must-Have Management Skills Technical Conceptual and Decision Interpersonal and Communication You and Your Career Be Both a Specialist and a Generalist Be Self-Reliant Connect with People Actively Manage Your Relationship with Your Organization Survive and Thrive CHAPTER RESOURCES Experiential Exercises 1.1 Your Personal Network 1.2 Are You an Effective Manager? 1.3 Career Skills Development Cases A New Manager at USA Hospital Supply Social Enterprise Ashoka’s Bill Drayton, Pioneer of Social Entrepreneurship Lecturettes 1.1: An Analysis of United States vs. Japanese Management 1.2: An Examination of Managerial Roles Connect Video Case: Managing Big Ideas at IDEO Connect Video Case: Home Run Inn Pizza Connect Click and Drag: The Four Functions of Management at Trader Joe’s Connect Self-Assessment: Assessing Your Empathy Skills (Perspective Taking) Connect Self-Assessment: What Is Your Level of Emotional Intelligence? Connect Application Exercise: Would You Call Isabel McDonald “Likely to Succeed?” KEY STUDENT QUESTIONS Students who enroll in an introductory management course typically have two primary questions: 1. “What makes a “good” manager?” 2. “How can I apply the material we learn in this class to my daily life?” How you answer these questions depends on your teaching style and the tone you want to set for the class. •To increase class involvement, ask two or three students to describe the best managers they have ever known. Capture what the students say, and then ask the class to tell you what similarities and differences they hear in the stories. •Link the similarities to the skills needed for planning, organizing, leading and controlling, and then discuss the differences regarding leadership style and the flexibility leaders need to react differently to different situations. It is important to let students know that there is not a single set of skills or guidelines to become a “good” manager. The best managers are the ones who have a wide range of skills which they apply in different situations. Then ask students to describe situations they have encountered recently where they needed to use planning, organizing, leading and/or controlling. •Based on the discussion, help students to see that the best way for them to apply the material is to think about how to use each concept in their own lives. One useful analogy here is to compare technical, interpersonal, and conceptual skills to different types of tools. Not every tool is right for every person, and not every tool is right for every task, but the more tools you have in a toolbox, the more likely it is that you will be able to get the job done effectively. •To help engage your class in discussion, start the class by saying, “This is your first day as a manager.” Explain that whenever anyone creates a “to do” list, he or she are planning, whenever anyone tries to persuade someone else to do something they are leading, whenever anyone plans their day in the morning they are organizing, and whenever anyone balances a checkbook, he or she are controlling. Go on to explain that just as people have different styles of writing “to do” lists and keeping track of their schedules, managers use different styles of management. However, certain key skills have emerged and that the purpose of the class is to help students learn these skills. Teaching Tip: The first day of class sets the tone for the rest of the quarter. If at all possible, I try to do three things on the first day of class: 1) go over the class syllabus (which helps the students understand my expectations for the class); 2) find out about your students—what are their majors, hobbies, future goals? 3) cover introductory material from Chapter 1 of the text (usually managerial skills, levels of management, etc.) By starting to lecture and discuss material on the first day of class, you convey your excitement about the subject matter, and you help your students become more excited about it, too. CLASS ROADMAP The Class Roadmap, gives Learning Objectives at appropriate places and lists PowerPoints. The boxes Management in Action and Multiple Generations at Work are addressed. Teaching Tips and Examples are presented and. Connect activities are also given to enhance class instruction. POWERPOINTS Slide 1 Managing and Performing Chapter One Slide 2 Chapter Opening Quote Slide 3 Learning Objectives Management in Action Introducing the Best: Facebook’s Mark Zuckerberg What does a manager do? Dream up a bold new mission for the company? Build a corporate structure that ensures success? Lead and inspire others? Keep the company on track toward its goals? Few managers have been more successful the Mark Zuckerberg, founder, and CEO of Facebook, in fulfilling these functions. Zuckerberg has seen his company grow into a unique worldwide phenomenon with almost 2 billion active users and $8.8 billion in revenue in 2016. Zuckerberg and Facebook faced several significant challenges along the way. There were funding challenges, a significant stock price drop following its initial public offering, a lag positioning the company to generate revenue from smartphone users, and recently charges of promoting fake news and censorship of posts. Business success invites competitors to enter the market, and Facebook has had to continually add features to maintain its position. Zuckerberg is ready to lead his company to even greater heights. His next goal is to bring all of humanity together in a safe and informed “global community.” POWERPOINTS Slide 4 Managing in the New Competitive Environment Slide 5 Globalization Slide 6 Technological Change: The Internet Slide 7 Knowledge Management Slide 8 Collaboration Across Boundaries LO 1: Summarize the major challenges of managing in the new competitive landscape. I. Introduction A. Globalization 1. Business leaders recognize that the change from a local to a global marketplace is gaining momentum and it is irreversible. 2. Today the most admired companies come from countries around the world such as Spain, South Korea, and Norway in addition to the United States. 3. Many companies are seeing exponential growth in markets outside the United States and are drawing their talent from many countries. 4. Ideally, transnational companies have managers who specialize not only in particular businesses and functions but also particular countries. 5. Today, business schools must encourage students to explore the global market, not just their own region or community. Example 1.1 Technological Change In today’s world, communications rarely take place via letters or faxes, e-mail and text messaging are the order of the day. But with more efficient delivery systems also come problems. The U.S. government has implemented Federal Rules of Civil Procedure that require companies to save all electronic communications for up to seven years. Of even more concern, at least to some banks, is being sure that as much care is being given to data destruction as it is to data retention. For example, UBS, a large investment bank, was fined $29 million after losing a lawsuit that centered on deleted, then recovered, e-mails. B. Technological Change 1. The Internet has changed the way management thinks and acts. 2. Technology creates new opportunities and also brings new complications. 3. The percentage of trade that takes place on the Internet is growing at an amazing rate, as is the number of Internet users worldwide. Example 1.2 Innovation The most innovative companies are those that re-envision more than just the product itself. For example, Zipcar has been recognized for its innovation across six different areas: 1) a profit model that lets customers rent by the hour, 2) a simple process that allows customers access via a swipe card, 3) the use of mobile apps to aid in locating and renting cars, 4) branding catering to environmentally conscious drivers, 5) strategies to increase customer engagement such as naming cars, and 6) improving product performance by bundling charges. C. Knowledge Management 1. Knowledge management is the set of practices aimed at discovering and harnessing an organization’s intellectual resources. D. Collaboration across “Boundaries” 1. Effective collaboration requires productive communications between different departments, divisions, or other subunits of the organization. 2. Companies today also must motivate and capitalize on the ideas of people outside the traditional company boundaries. a. Getting customers more involved in company decisions. b. Keeping customers engaged via creative thinking and talking with one another online to come up with new product and service ideas. 3. Knowledge management is about finding, unlocking, sharing, and altogether capitalizing on the most precious resources of an organization. a. Workers’ Expertise b. Job Skills c. Wisdom d. Relationships CONNECT Video Case: Managing Big Ideas at IDEO SUMMARY IDEO (pronounced “eye-dee-oh”) is an award-winning global design firm that takes a human-centered, design-based approach to helping organizations in the public and private sectors innovate and grow. IDEO’s unique approach gives it tangible competitive advantages, which are critical to a firm’s success in the modern business environment. Key factors in IDEO’s success are its creativity, innovation, speed and use of collaboration and knowledge management. Successful companies today know that these and other elements must be utilized to constantly adapt to new circumstances and realities. In the eight-minute video, IDEO works with the creator of the Dilbert comic strip to design a new “dream cube” for the modern office. The project became an “exercise in innovation.” ACTIVITY After viewing the video, students are directed to answer a series of multiple-choice questions. CLASS DISCUSSION IDEAS To explore how creativity can foster innovation, ask the students what methods can an organization apply (beyond having a famous cartoonist visit)? Multiple Generations at Work The workforce is changing rapidly. A large number of Baby Boomers (born from 1946–64) will be exiting the workforce over the next 15 years. An important consideration is that before Gen Xers and Millennials can assume higher level positions in businesses, schools, government agencies, and nonprofits, organizational knowledge must be transferred from senior management to the less-experienced Gen Xers and Millennial employees. Teaching Tip: Ask students to identify a time that they shared feedback with a company about its products, whether through online product ratings or reviews, in person, via e-mail, etc. Then ask students to report whether they thought their feedback was actually used to improve the company’s products or services. II. MANAGING FOR COMPETITIVE ADVANTAGE POWERPOINTS Slide 9 Staying Ahead of the Competition Slide 10 Managing for Competitive Advantage Innovation Slide 11 Managing for Competitive Advantage Quality Slide 12 Managing for Competitive Advantage Service and Speed Slide 13 Managing for Competitive Advantage Cost and Sustainability Slide 14 Social Enterprise LO 2: Describe the sources of competitive advantage for a company. Transformational industries, such as industries centered around the Internet today and the car 100 years ago, show us that the key to having a competitive advantage is being able to sustain that advantage over time. 1. To survive in business, you must gain an advantage over your competitors and earn a profit. 2. You gain and sustain a competitive advantage by providing greater value than the competition. 3. Winners deliver performance. LO 3: Explain how the functions of management are evolving in today’s business environment. A. Innovation 1. Innovation is the introduction of new goods and services. 2. Your company must innovate or die. 3. The need for innovation is driven by globalization. 4. Innovation comes from people. 5. Innovation must be a strategic goal. 6. Innovation must be managed properly. Example 1.3 Leading Are “Generation Y” employees really that much different in their motivational needs than Baby Boomers or Generation X employees? Andrea S. Hershatter, the director of the undergraduate business program at Emory University, thinks so. She believes that Gen Y employees need more direction from their employers because they dislike ambiguity and risk. At the same time, she says “. . . they feel entitled to have others support them in their efforts to accomplish and achieve.” B. Quality 1. Quality is the excellence of a product, including its attractiveness, lack of defects, reliability, and long-term dependability. 2. Quality can be measured in terms of performance, various service dimensions, reliability (failure or breakdowns), conformance to standards, durability, serviceability, and aesthetics. 3. Total quality includes preventing defects before they occur, achieving zero defects in production, and designing products for quality. 4. Quality is provided by customizing goods and services to the wishes of the individual customer. C. Service 1. Service means giving customers what they want or need when they want it—Get more customers. 2. Service is focused on continually meeting the needs of customers to establish mutually beneficial long-term relationships—Keep your customers. 3. An important dimension of service quality is making it easy and enjoyable for customers to experience a service or to buy and use products. D. Speed 1. Speed involves rapid execution, response, and delivery of results. It often separates the winners from the losers. 2. Speed is not everything – you cannot get sloppy in your drive to be first. 3. All things being equal, fast-moving companies are more likely to be winners. For some companies, speed has become a strategic imperative. E. Cost Competitiveness 1. Cost competitiveness means keeping costs low enough so that the company can realize profits and price its products at levels that are attractive to consumers. 2. Costs that need to be managed carefully: a. Raw material b. Equipment c. Capital d. Manufacturing e. Marketing f. Delivery g. Labor 3. Managing costs and keeping them low requires efficiency – accomplishing goals by using resources wisely and minimizing waste. 4. Customers’ use of the Internet for easy cost comparisons highlights the need for companies also to be mindful of pricing. F. Sustainability 1. Sustainability is the effort to minimize the use of resources, especially those that are polluting and nonrenewable. 2. The next decade is likely to focus more on resource productivity, the emergence of clean-tech industries, and increased regulation. 3. Sustainability is focused on protecting our options to live and work in ways that can be managed over generations without depleting or harming our resources. G. Delivering All Types of Performance 1. The best managers and companies don’t pay attention to just one competitive advantage - they deliver all six of them. CONNECT Video Case: Home Run Inn Pizza SUMMARY Home Run Inn Pizza is a family-owned business that got its start from the original Home Run Inn. In the video, CEO, Joe Perrino, explains how he makes strategic decisions that allow the company to grow without sacrificing quality. Homerun Pizza emphasizes producing the highest possible quality regardless of the price. From transitioning from a traditional restaurant, to frozen-food manufacturing, to introducing innovative technology, and direct delivery the company has come to dominate the frozen pizza industry. ACTIVITY After viewing the nine-minute video, students are directed to answer a series of multiple-choice questions. CLASS DISCUSSION IDEAS To summarize the case, ask the students to discuss how the organization applies the four functions of management. III. THE FUNCTIONS OF MANAGEMENT POWERPOINTS Slide 15 Management Defined Slide 16 The Functions of Management Slide 17 Performing All Four Management Functions Management is the process of working with people and resources to accomplish organizational goals. 1. Effectiveness is about achieving organizational goals. 2. Efficiency is achieving goals with minimal waste of resources. The fundamentals of management include the four traditional functions of management: 1) Planning, 2) Organizing 3) Leading 4) Controlling CONNECT Click and Drag: The Four Functions of Management at Trader Joe’s SUMMARY In the business world today, the great executives not only adapt to changing conditions but also apply—fanatically, rigorously, consistently, and with discipline—the fundamental management principles. These principles remain as relevant as ever, but their form has evolved. ACTIVITY In this click and drag exercise, students learn about Trader Joe's, an upscale specialty supermarket chain. As the read the mini-case, they are directed to keep an eye out for evidence of each of the four functions of management: planning, organizing, leading, and controlling. CLASS DISCUSSION IDEAS The instructor may wish to ask if the functions would apply in the same way to a company such as Walmart. How might the four functions apply to a college? A. Planning: Delivering Strategic Value 1. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals. 2. Planning activities include analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies, and determining the resources needed to achieve the organization’s goals. 3. Delivering strategic value is a process in which people throughout the organization use their brains and the brains of customers, suppliers, and other stakeholders to identify opportunities to create, seize, strengthen, and sustain competitive advantage. B. Organizing: Building a Dynamic Organization 1. Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. 2. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success. C. Leading: Mobilizing People 1. Leading is stimulating people to be high performers. 2. Leading includes motivating and communicating with employees, individually and in groups. 3. Leading involves close day-to-day contact with people to guide and inspire them to achieve organizational goals. D. Controlling: Learning and Changing 1. Controlling monitors progress and implements necessary changes. 2. Makes sure that organizational goals are met, and resources are used as planned. 3. The four management functions of planning, organizing, leading and controlling apply to managers on a personal level as well. E. Performing All Four Management Functions 1. Most managers have to perform all four management functions more or less simultaneously. Management in Action Progress Report Control Systems at Facebook Controlling performance at Facebook takes many forms. One is Mark Zuckerberg’s creation of new partnerships with third-party companies to ensure that his company reports accurate data about users’ response to advertising. Another means of control is Facebook’s new partnerships with outside fact checkers, who are empowered to flag questionable stories as “disputed” to alert readers to possible hoaxes and false reports. Zuckerberg is also betting on artificial intelligence (AI) to help Facebook filter content users don’t want to see Mark Zuckerberg’s original vision of Facebook was an interactive message board to help his Harvard classmates keep in touch with each other. Do you think he had to consider many control mechanisms at that time? Why does the site need them now? What other aspects of Facebook’s performance probably have control mechanisms in place? IV. MANAGEMENT LEVELS AND SKILLS POWERPOINTS Slide 18 Management Levels Slide 19 Management Roles: What Managers Do Slide 20 Roles of Management Slide 21 Management Skills LO 4: Compare how the nature of management varies at different organizational levels. A. Top-level managers 1. Top-level managers are senior executives of an organization and are responsible for its overall management. 2. Referred to as strategic managers, they focus on long-term issues. 3. The chief executive officer (CEO) is one type of top-level manager. 4. Some other top-level managers include the: •COO: chief operating officer •CIO: chief information officer •CFO: chief financial officer 5. These are the true organizational leaders. Example 1.4 Top-level managers It used to be that top-level management was the purview of white males. However, times are changing, and even though minorities and women still face glass ceilings, they are also breaking through to the executive suite. In 2012, Marissa Mayer assumed the role of CEO of Yahoo and, at age 37, also became the youngest CEO of a Fortune 500 company. One of her first actions was a controversial decision to ban telecommuting at Yahoo. Defending her decision, Mayer stated, “To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side.” B. Middle-level managers 1. Middle-level managers are located in the organization’s hierarchy below top-level management and above frontline managers. 2. Called tactical managers, they are responsible for translating the general goals and plans developed by strategic managers into more specific objectives and activities. 3. Middle-level managers take corporate objectives and break them down into business unit targets, put together plans, and serve as linchpins of internal communication. C. Frontline managers 1. Frontline managers are operational managers are lower-level managers who supervise the operations of the organization. Titles may include supervisor or team leader. 2. They are charged with implementing the plans developed by the middle managers. 3. This is often a person’s first management position. 4. They are crucial to creating and sustaining quality operations in support of company strategy. 5. They are drivers of financial performance. D. Working leaders with broad responsibilities 1. Complete businesspeople. 2. Knowledge of all business functions. 3. Accountable for results. 4. Focus on serving customers both inside and outside their firms. 5. The best managers focus on two key areas: •Relationships with people. •Achieving results. LO 5: Define the skills you need to be an effective manager. E. Must-Have Management Skills—Managers need a variety of skills to do things well. 1. Technical skill is the ability to perform a specialized task that involves a certain method or process. a. Specific abilities that result from knowledge, information, practice, and aptitude. 2. Conceptual and decision skills involve the manager’s ability to identify and resolve problems for the benefit of the organization and everyone concerned. 3. Interpersonal and communication skills influence the manager’s ability to work well with people. These are often called people skills. Example 1.5 Interpersonal and communication skills PricewaterhouseCoopers releases an annual report on “Annual and Long-Term Incentives.” The report covers how top companies reward their employees. Interestingly enough, the 2007 report shows that companies are moving away from incentives based only on financial measures, and are now rewarding top executives on things like people management skills as well. This shows the importance of interpersonal and communication skills for the practicing manager. V. YOU AND YOUR CAREER POWERPOINTS Slide 21 You and Your Career Slide 22 Exhibit 1.4 Two Relationships: Which Will You Choose? Slide 23 Exhibit 1.5 Managerial Action Is Your Opportunity to Contribute Slide 24 Common Practices of Successful Executives Slide 25 Management in Action Slide 26 In Review LO 6: Define the principles that will help you manage your career. Managers are responsible for the work of an entire group of people. One way of looking at it is that managers are much like conductors who coordinate the efforts of an entire orchestra. •A key human skill is emotional intelligence – the skill of understanding yourself, managing your behavior and attitudes, making good decisions, using self-control, and dealing effectively with others. •Empathy is one of the most important EQ skills for good managers. CONNECT Self-Assessment: Assessing Your Empathy Skills (Perspective-Taking) SUMMARY If students read Harper Lee’s novel, To Kill a Mockingbird, they may remember the character of Atticus Finch. He is a prominent attorney in Alabama. A widower, Atticus devotes himself to his children and stands as one of literature’s strongest and most positive father figures. One of the most famous lines from this classic work—and one that gives the reader great insight into explaining why Atticus lives his life the way he does—is taken from a scene where Atticus is having a heart-to-heart talk with his daughter, Scout, when he tells her: “If you can learn a simple trick, Scout, you’ll get along a lot better with all kinds of folks. You never really understand a person until you consider things from his point of view—until you climb into his skin and walk around in it.” ACTIVITY In this exercise, students are to indicate the extent to which seven statements describe them. After responding to the questions, a description of their perspective, as well as some action ideas, are provided. CLASS DISCUSSION IDEAS Revisiting the Atticus quote from the case, ask the class whether they agree with Atticus. How can you “climb into someone’s skin”? CONNECT Self-Assessment: What Is Your Level of Emotional Intelligence? SUMMARY This self-assessment is a brief survey based on D. Goleman’s Emotional Intelligence: Why It Can Matter More Than IQ. ACTIVITIY Students, when taking this survey, should be aware that there are no right or wrong answers. CLASS DISCUSSION IDEAS Highlight the importance of emotional intelligence by asking students if they would rather work for someone with high emotional intelligence or with a high IQ. B. Be Both a Specialist and Generalist 1. To become a specialist: you must be an expert in something—Have specific skills that provide value to your firm and customers. 2. To be a generalist: know enough about a variety of business or technical disciplines—Think strategically and work with different perspectives. C. Be Self-Reliant 1. Take full responsibility for yourself, your actions, and your career. 2. Find new ways to improve your overall performance. 3. Be an innovator. 4. Pursue continuous improvement and lifelong learning. Teaching Tip. This is a good point in the lecture to tell your students about your university’s career development center if you have one. Most students are unaware that they can get free testing for career aptitude and interests, and that the university offers job postings and a variety of classes designed to help students get jobs in a central location. D. Connect with People 1. Have many good working relationships and be a team player with strong interpersonal skills. 2. Social capital is the goodwill stemming from your social relationships. It can be used to aid career success, compensation, teamwork, and relationships with suppliers and others. 3. Today social capital is often tapped online via social networking sites. E. Actively Manage Your Relationships with Your Organization 1. Managerial action is your opportunity to contribute. a. Utilize human skills b. Deliver strategic value c. Build a dynamic organization d. Mobilize people e. Learn and change F. Survive and Thrive 1. Successful executives share some common practices. a. They ask, “what needs to be done?” b. They write an action plan. c. They take responsibility for decisions. d. They focus on opportunities rather than problems. Example 1.6 Survive and Thrive In his book The One Thing You Need to Know about Great Managing, Great Leading, and Sustained Individual Success, Marcus Buckingham discusses what leaders of companies such as Walgreens and Best Buy have to say about the art of leadership. He outlines six core concepts that help people become great leaders: 1) Leaders rally people toward a better future; 2) Leaders use their clarity about the future to turn anxiety into confidence; 3) Leaders know whom they serve; 4) Leaders know why they are going to win; 5) Leaders identify one key measure to use as a “core score”; and 6) Leaders act—they do things that are both symbolic and systemic. For example, one of Rudy Giuliani’s first actions as the mayor of New York was to rid the streets of “squeegee men” who demanded money for cleaning windshields. His actions were symbolic—intended to tell New Yorkers that Giuliani was serious when he talked about a better quality of life for them. Management in Action Onward Working for Facebook’s Mark Zuckerberg Said to be forward-looking, disciplined, inquisitive, consistent, and good at communicating, Mark Zuckerberg recently earned a 99.3 approval rating from Facebook employees. Zuckerberg believes “[employees] need the ability to fully exercise all their creativity and all their capacity, or else they’re not going to be having the biggest impact that they can have in the world, and they’re going to want to go do something else.” He’s also famous for saying, “I will only hire someone to work directly for me if I would work for that person.” Zuckerberg has delegated the commercial side of Facebook’s operations to chief operating officer Sheryl Sandberg. This leaves him free to stay focused on the technical aspects that led him to start the social media giant as a simple site he once ran from his Harvard dorm room. As an early career employee at Facebook, what steps could you take to get noticed and position yourself for eventual promotion to frontline manager? Most of Facebook’s core top employees have been with the company for much of its 13-year life. What do you think accounts for their commitment? CONNECT Application Exercise: Would You Call Isabel McDonald “Likely to Succeed?” SUMMARY Successful executives share some common practices. They ask, “What needs to be done?” rather than “What do I want to do?” They write action plans—they don’t just think, they do, based on a sound, ethical plan. They take responsibility for decisions, checking up, revisiting, and changing if necessary. Finally, they focus on opportunities rather than problems. In this exercise, students will consider those common practices of executives to help Isabel McDonald’s organization decide whether she should be identified as likely to be successful in a newly created executive position. Isabel is a young manager in a large software firm. Her employees say that she's like a whirlwind—that she approaches each task with a passion for identifying the core underlying problem and crafting solutions for those problems. ACTIVITY Students are directed to read the mini-case and answer the multiple-choice questions that follow. CLASS DISCUSSION IDEAS To summarize the assignment, instructors may ask students how they would coach Isabel to make her more promotable. BOTTOM LINE Which of these advantages do you think it would be hard to deliver at the same time? This opinion question aims to get students thinking about the challenges of being a real-world manager today. Combinations of objectives have traditionally forced managers to make trade-offs are quality vs. speed and cost vs. innovation, quality, service, or sustainability. Students may see other trade-offs as well. Future chapters will show how innovative companies are using creative thinking to make these goals work together, rather than compete. For example, many sustainability efforts can reduce costs, and improve the quality of work processes can get innovative products to the market faster. Imagine you’re in your first management job, supervising a team of six. Would you focus only on one performance measure—say, costs—or on all six? Today’s managers are expected to deliver on all six performance measures. To be successful even in one’s first management job requires consideration of innovation, quality, service, speed, cost competitiveness, and sustainability. If you want people who see your LinkedIn profile to think of you as a future manager, what kinds of information should not be on the profile? Any information or posts that conflict with the kind of person who would be an effective manager would not belong on the profile of a would-be manager. To function effectively in today’s world, students must develop their ability to distinguish between content that is social and fun and content that is awkward and inappropriate. They also must be aware that the boundaries between what is private and what is public online are not always as clear and firm as they might seem at first impression. SOCIAL ENTERPRISE Ashoka’s Bill Drayton, Pioneer of Social Entrepreneurship Can a company do well and do good at the same time? The idea that business success and positive social change can and indeed should happen together is the driving force behind the social enterprise or social entrepreneurship. Think of social entrepreneurs as change agents, managers who commit themselves and their organizations to creating not only private value in the form of profit, but also social value in various forms including innovation, sustainability, and accountability. A leading force behind the growing strength of social enterprise is Ashoka, founded by Bill Drayton in 1980 as a group of Fellows, or social entrepreneurs, then mostly in developing countries. Since its founding, the group has grown to include more than 3,000 social entrepreneurs around the world. Ashoka works worldwide to enable everyone to be a “changemaker” by identifying and supporting Fellows, creating communities for them and helping build business, social, and financial systems to encourage even more social innovation In Drayton’s view, anyone can be a social entrepreneur. All it takes, he says, is the ability to see a problem, put others’ skepticism aside, and allow yourself the time to inch your way first toward a vision and then to a solution that works. Do you think every manager should have the responsibility to do good and do well? Why or why not? Student discussion will vary and may focus on how to do “good,” and the extent of such activities are appropriate. Students may debate between profit and social responsibility type actions. What other means to create social innovation besides efforts like Ashoka’s do you think can be effective? Student answers will vary; however, government, non-profit and church activities may be mentioned. Students may also discuss social media-based activities. LECTURETTES LECTURETTE 1.1: An Analysis of United States vs. Japanese Management Research conducted in comparing American style management vs. the Japanese style of management shows that they are clearly separate and distinct styles. As an example, the co-founder of Honda Motor Company, T. Fujisawa, observed that “Japanese and American managers are 95 percent the same and differ in all important aspects.” On the one hand, managers must cope with the same challenges and opportunities-irrespective of whether they are operating in Tokyo or Los Angeles. However, in five critical areas, the business environment is very different. NATIONAL CULTURE The American worker usually perceives the job (even a good job) as primarily a means to an end: a source of funds through which one enjoys life off the job. The American individualistic values run contrary to the corporate workgroup. The “Go west, young man” worker mobility work ethic in America limits company loyalty and long-term employment commitments on the part of the employee. However, the Japanese culture places extraordinary pressures on one’s obligations-especially those from above. Obligations are inherited at birth and enlarged through education and career. They result in fierce loyalty to one’s employer and one’s country. As a nation, the Japanese enjoy an amazing sense of purpose and are highly disciplined to fulfill these obligations. In Japan, it is said that the job is society, and society is the job. Every Japanese person who joins a company shares equally in it. It is likely that his or her friends work for the same company. THE WORKFORCE Japanese workers cooperate for the good of the organization, avoiding individual recognition in favor of the group, corporate, and national accomplishments. The American worker is viewed as an individual who looks out for number one. Japanese workers perceive an overall duty to work long hours, shun vacations, and commit themselves completely to their work, giving Japan its long history of being called the most goal-oriented country in the world. Apathy on the part of American workers is an increasingly challenging problem. The lack of worker loyalty and work orientation is evidenced by the fact that the average tenure of any United States job is only 4.2 years, whereas the Japanese see the commitment lasting a lifetime. This may also reflect a lack of attention to teambuilding on the part of the company and its managers. Competition among employees is a long-standing American tradition and is seen as one way to keep workers sharp and hard working. As more American companies recognize the fact that this emphasis on competition can undermine worker cooperation and employee morale, they are moving toward departmental competition in which each department sets goals and strives to achieve them by working together. The Japanese see competition as a negative work factor, and research has shown that Japanese worker performance deteriorates under competitive environments. MANAGEMENT STYLE The American management style tends to impose control through explicit and formal rules and regulations that are documented in corporate standard operating manuals. Japanese management control is more subtle, implicit, and informal. Japanese control is a major part of their life and culture. It stems from a set of corporate values that are expressed by management until a corporate culture becomes clearly understood by all employees so that it directs their every behavior. In most American companies, management has focused on an “inspect to quality” philosophy that focuses on the evaluation of a task after it is complete. Japanese management nurtures a “work to quality” culture that creates quality in the work process, as it is being done. More American companies are taking notice of the advances in Japanese organizations and are implementing “total quality management,” “Six Sigma,” and “Lean Operations” strategies. The American executive places fundamental priority on organizational efficiency, while the Japanese executive is dedicated to “Wa” or the achievement of peace and harmony, without which the firm will fail. The CEO of a Japanese firm is a true representative of that organization and its values. Japanese CEOs receive only a fraction of the compensation given to American CEOs, although the Japanese traditionally work longer hours. Stock options, a popular form of extra compensation for American executives, are not available to Japanese executives. When a firm does poorly, the CEO typically resigns in disgrace. In contrast, CEOs in failing American firms have given themselves huge salary increases. SUPERIOR-SUBORDINATE RELATIONSHIPS There is a clear superior-subordinate relationship in American companies, and this relationship is often shallow and short-term. The Japanese have a very different philosophy reflected in the saying that “It’s the superior’s job to help the subordinate learn the job.” In Japan, there is a mentor-protégé relationship that is almost Godfather-like: a relationship that is both functional and emotional. The Japanese superior assumes the corporate lifetime commitment and accepts the responsibility in a holistic manner (i.e., a responsibility for all aspects of the subordinate’s life for a lifetime). The acceptance of women in the managerial ranks of American companies is well accepted. However, in Japan, management is not viewed as a legitimate position for women. In fact, working beyond the marrying age is not an acceptable activity for women. Japanese management has yet to accept the rights of the working-woman. DECISION MAKING In an individualistic society such as the United States, it is not surprising that there is a tradition that an American manager is skilled at making decisions alone. Seeking advice is often viewed as leaning on others and a definite sign of weakness. Japanese companies, however, often use a participative group process by which everybody has a right and an obligation to contribute. Once a decision is reached, all proceed to implement it-even managers who did not agree with it. Americans admire decisions that are fast and specific. The Japanese dislike decisions in general and will delay them as long as possible. They accept ambiguity as a way of life and work with it until a decision becomes absolutely necessary. They prefer to agree to proceed in a general direction, gathering more information as they go, changing that general direction as necessary, and making a decision at the last moment. LECTURETTE 1.2: An Examination of Managerial Roles An increasing awareness of the management application has resulted in a significant change in the day-to-day work activities that are inherently a part of this dynamic process. THE TASKS OF A PRACTICING MANAGER Extensive studies in the duties and managerial activities have been done by Henry Mintzberg, Morgan McCall, Ann Morrison, Robert Hannan and others. A summary of their findings is presented below. 1. The managerial workday is long. Managers work long, long hours. The higher one goes up the managerial hierarchy, the longer the working hours. 2. Managers are busy and work at a hectic, unrelenting pace. They begin to work the very moment they walk into the workplace and continue working, without relief, until they leave many hours later. Managers cannot afford the luxury of leisurely coffee breaks-they drink their coffee during endless meetings. They do not enjoy a relaxed lunch — lunch is skipped unless it is used to entertain a client or to orchestrate a group decision. In either case, the meal is secondary to the work that is accomplished during the meal. 3. The manager’s day is fragmented. A manager has so many work demands that there is little time to spend on any one activity. Therefore, the workday is fragmented with hundreds of brief episodes, few of which are brought to closure. Interruptions and discontinuity are commonplace. American executives tend to spend less than nine minutes on any one issue or activity. This pressure often extends throughout an organization. For example, a study found that U.S. foremen engage in an average of 583 separate activities over an eight-hour work shift-an average of one every 48 seconds. 4. The manager’s work is varied. Managers are involved in a wide variety of activities. They must deal with telephone calls, meetings (both scheduled and unscheduled), tours, visits, appearances, speech-making, negotiations, grievance hearings, performance reviews, scheduling, controlling, and interacting with all kinds of people, and dealing with all kinds of paperwork. All these activities deal with all the functional areas within the firm. 5. Mid-level managers stay close to home. Managers can be called “homebodies” because they spend the great bulk of their time engaged in activities within their own organization. However, as managers progress upward in the company hierarchy, increasingly more time is spent outside their own work area and outside the firm itself. 6. Verbal activities dominate the manager’s time. In two British studies, managers were found to spend 66 and 80 percent of their time in verbal communications. Another study found that U.S. CEOs spend 78 percent of their time in verbal communication activities. In fact, most managers prefer verbal communications to paperwork. 7. Managers use many contacts and tend to network. Because of their high-level involvement in verbal communication, managers tend to have contacts with many people. The incessant parade of telephone calls, interpersonal sessions, and meetings result in an almost continuous exchange of information with a growing number of people. This need to exchange voluminous information has led many managers to develop a set of cooperative relationships with certain people whose assistance is often needed. 8. A manager tends to develop an individual “art of management.” Management is rapidly developing the qualities that may someday qualify it as a science. However, in the meantime, managers must develop personal procedures, techniques, and styles that can help them plan, schedule, organize, control, and otherwise deal with the many fragmented tasks with which managers must cope every workday. Managers are forced to use intuition and judgment as the core of most decisions. As such, management becomes an art as developed and conducted by the individual manager. 9. Managers are proactive planners. Typically, managers find too little time for adequate planning. This is a proverbial “Catch 22” situation as many of the fragmented activities that disrupt the manager’s day result from an inherent lack of planning. Consequently, the manager becomes a reflective planner, constantly reacting to the work environment. 10. Information is the core of management. Since managers spend most of their workday collecting, assimilating, analyzing, and disseminating information, information is at the heart of the managerial process. Information management may then become the major key to managerial success. 11. Managers do not practice time management. Managers are seldom aware of the way they spend their time. They typically overestimate the amount of time they spend on reading, writing, production work, and just thinking. They tend to underestimate the time they spend in informal interactions and meetings — especially unscheduled meetings. Thus, it is clear that most managers are not expert at managing their time. 12. Managers lose their rights. As a manager, you may lose your right to: Lose your temper. Be one of the gang. Bring your personal problems to work. Vent your frustrations and express all your opinions at work. Resist change. Pass the buck. Get even. Play favorites. Put your own interests first. Ask others to do what you wouldn’t do. Expect to be immediately recognized and rewarded for doing a good job. THE ROLES A MANAGER MUST PERFORM Mintzberg and others have identified ten major roles that managers must fulfill: 1. Interpersonal roles Figurehead – Entails symbolic duties associated with the formal organization. Leader – Creates and nurtures relationships with subordinates. Liaison – Builds informational networks of contacts outside the workplace. 2. Informational roles Monitor – Seeks appropriate information from both internal and external sources. Disseminator – Transmits information within the organization. Spokesperson – Addresses the transmission of information to outsiders. 3. Decisional roles Entrepreneur – initiates and encourages change, creativity, and innovation. Disturbance Handler – Initiates the corrective action needed to deal with important, unexpected difficulties. Resource Allocator – Distributes organizational resources (funds, equipment, time, human resources, and etcetera). Negotiator – Serves as the organization’s chief negotiator in the manager’s areas of responsibility. Instructor Manual for Management: Leading and Collaborating in a Competitive World Thomas S. Bateman, Scott A. Snell, Robert Konopaske 9781259927645, 9781259546945
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