Learning Objectives

1
Learning Objectives

• After studying, you will know
• the major challenges of managing in the new era
• the drivers of competitive advantage for your
  company
• the functions of management and how they are
  evolving in todays business environment
• the nature of management at different
  organizational levels
• the skills you need to be an effective manager
• what to strive for as you manage your career

2
Managing In The New Era

• Managerial practices will always separate
  effective from ineffective organizations
• Four key elements are new elements in business
  today

New Era Management
3
Managing In The New Era (cont.)

• The Internet
• communication technologies are driving massive
  change
• initial enthusiasm for e-business has dwindled
• 25 of publicly-held Web companies became
  profitable in 2002
• most profitable Web companies sell
  information-based products that dont require
  shipping
• old economy types now using the Internet as a
  tool to solidify their future

4
Managing In The New Era (cont.)

• Globalization
• far more than in the past, enterprises are global
• competing globally is not easy
• companies often overestimate the attractiveness
  of foreign markets
• even small firms that do not operate on a global
  scale must make strategic decisions based on
  international considerations
• face intense competition from high-quality
  foreign producers

5
Managing In The New Era (cont.)

• Knowledge management
• practices aimed at discovering and harnessing an
  organizations intellectual resources
• unlock peoples expertise, skills, wisdom, and
  relationships
• intellectual capital is the collective brainpower
  of the organization
• Collaboration across boundaries
• capitalize on the ideas of people outside the
  traditional company boundaries
• occurs between as well as within organizations
• e.g., must effectively capitalize on customers
  brains

6
Managing For Competitive Advantage

• Best managers and companies deliver all four

Competitive Advantage
7
Managing For Competitive Advantage(cont.)

• Innovation
• the introduction of new goods and services
• comes from people
• must be a strategic goal
• must be managed properly
• Quality
• excellence of a product, including its
  attractiveness, lack of defects, reliability, and
  long-term durability
• importance of quality has increased dramatically
• catering to customers other needs creates more
  perceived quality

8
Managing For Competitive Advantage (cont.)

• Speed
• fast and timely execution, response, and delivery
  of results
• often separates winners from losers in world
  competition
• requirement has increased exponentially
• Cost competitiveness
• costs are kept low enough so that you can realize
  profits and price your products at levels that
  are attractive to consumers
• key is efficiency - accomplishing goals by using
  resources wisely and minimizing waste
• little things can save big money
• cost cuts involve tradeoffs

9
The Functions Of Management

• Management
• the process of working with people and resources
  to accomplish organizational goals
• good managers must be
• effective - achieve organizational goals
• efficient - achieve goals with minimum waste of
  resources
• there are timeless principles of management
• still important for making managers and companies
  great
• must add fresh thinking and new approaches

10
The Functions Of Management (cont.)

• The manager who does not devote adequate
  attention and resources to all four functions
  will fail

11
The Functions Of Management (cont.)

• Planning
• specifying the goals to be achieved and deciding
  in advance the appropriate actions taken to
  achieve those goals
• delivering strategic value - planning function
  for the new era
• a dynamic process in which the organization uses
  the brains of its members and of stakeholders to
  identify opportunities to maintain and increase
  competitive advantage
• process intended to create more value for the
  customer

12
The Functions Of Management (cont.)

• Organizing
• assembling and coordinating the human, financial,
  physical, informational, and other resources
  needed to achieve goals
• building a dynamic organization - organizing
  function for the new era
• viewing people as the most valuable resource
• the future requires building flexible
  organizations

13
The Functions Of Management (cont.)

• Leading
• stimulating people to be high performers
• in the new era, managers must be good at
  mobilizing people to contribute their ideas
• Controlling
• monitoring progress and implementing necessary
  changes
• makes sure that goals are met
• new technology makes it possible to achieve more
  effective controls
• for the future, will have to be able to monitor
  continuous learning and changing

14
Management Levels

• Top-level managers (strategic managers)
• senior executives responsible for the overall
  management and effectiveness of the organization
• focus on long-term issues
• emphasize the survival, growth, and effectiveness
  of the firm
• concerned with the interaction between the
  organization and its external environment
• titles include Chief Executive Officer (CEO),
  Chief Operating Officer (COO), company presidents
  and vice presidents

15
Management Levels (cont.)

• Middle-level managers (tactical managers)
• located between top-level and frontline managers
  in the organizational hierarchy
• responsible for translating strategic goals and
  plans into more specific objectives and
  activities
• traditional role was that of an administrative
  controller who bridged the gap between higher and
  lower levels
• provide operating skills and practical problem
  solving the keep the company working

16
Management Levels (cont.)

• Frontline managers (operational managers)
• lower-level managers who supervise the
  operational activities of the organization
• directly involved with nonmanagement employees
• increasingly being called on to be innovative and
  entrepreneurial
• titles include supervisor or sales manager
• Working leaders with broad responsibilities
• in small firms and large firms that have adapted
  to the times, managers have strategic, tactical,
  and operational responsibilities

17
Transformation of Frontline Management Roles and
Tasks

• From operational implementers to aggressive
• entrepreneurs

• Driving business performance by focusing on
• productivity, innovation and growth within
  frontline
• units

• Creating and pursuing new opportunities for the
• business
• Attracting and developing resources and
• competencies
• Managing continuous performance improvement
• within the unit

18
Transformation of Middle-Level Management Roles
and Tasks

• From administrative controllers to supportive
• coaches

• Providing the support and coordination to bring
• large company advantage to the independent
• frontline units

• Developing individuals and supporting their
• activities
• Linking dispersed knowledge, skills, and best
• practices across units
• Managing the tension between short-term
• performance and long-term ambition

19
Transformation of Top-Level Management Roles and
Tasks

• From resource allocators to institutional leaders

• Creating and embedding a sense of direction,
• commitment and challenge to people throughout
• the organization

• Challenging embedded assumptions while
• establishing a stretching opportunity horizon
  and
• and performance standards
• Institutionalizing a set of norms and values to
• support cooperation and trust
• Creating an overarching corporate purpose and
• ambition

20
Management Skills

• Skill - specific ability that results from
  knowledge, information, and aptitude
• Technical skill
• ability to perform a specialized task that
  involves a certain method or process
• managers at higher levels rely less on technical
  skills
• Conceptual and decision skills
• ability to identify and resolve problems for the
  benefit of the organization
• assume greater importance as manager acquires
  more responsibility

21
Management Skills (cont.)

• Interpersonal and communication skills
• ability to lead, motivate, and communicate
  effectively with others
• people skills
• important throughout your career at every level
  of management

22
You And Your Career

• Jobs are no longer as secure for managers as they
  used to be
• organizations still try to develop and retain
  good employees
• employee loyalty and commitment are still
  important
• Companies offering employability to workers
  tend to be more successful
• provide training and other learning experiences
• employees perform work with greater responsibility

23
You And Your Career (cont.)

• Be both a specialist and generalist
• specialist - expert in something
• provide concrete, identifiable value to the firm
• generalist - knowing about a variety of business
  functions so that you can understand work with
  different perspectives
• Be self-reliant
• take responsibility for yourself, your actions,
  and your career regardless of where you work
• think and act like an entrepreneur
• look for opportunities to contribute in new ways
• generate constructive change

24
You And Your Career (cont.)

• Be connected
• establish many good working relationships
• be a team player with strong interpersonal skills
• all business is a function of human relationships
• competitive advantage depends upon you and other
  people

25
Keys to Career Management
1. Think of yourself as a business. 2. Define
your product What is your area of expertise? 3.
Know your target market To whom are you going
to sell this? 4. Be clear on why your customer
buys from you. What is your value
proposition - what are you offering that causes
him to use you? 5. As in any business,
strive for quality and customer satisfaction,
even if your customer is just someone else
in your organization - like your boss. 6.
Know your profession or field and whats going on
there. 7. Invest in your own growth and
development, the way a company invests in
research and development. What new products will
you be able to provide? 8. Be willing to
consider changing your career.
26
You And Your Career (cont.)

• Actively manage your relationship with your
  organization
• two ways to think about the nature of the
  relationships between you and your employer
• view yourself as an employee
• model for just getting by
• contributions likely to be minimal
• two-way, mutually-beneficial exchange
  relationship
• think about how you can contribute and act
  accordingly
• figure out new ways to add value
• organization likely provide full and fair
  rewards, support further personal development,
  and offer more gratifying work environment

27
Two Relationships Which Will You Choose?
2 You as an active contributor in a productive
relationship
1 You as a passive employee
You
Your Organization
28
Managerial Action Is Your Opportunity To
Contribute
You
Your Organization
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You And Your Career (cont.)

• Survive and thrive
• be prepared to move from project to project, team
  to team
• be a master at something that the world values
• develop a strong network of colleagues who can
  help with current and future projects
• have entrepreneurial skills that help you act as
  if you were running your own business
• love technology
• market yourself
• be willing to constantly improve and even
  reinvent yourself