Chapter 01 – Managing and Performing
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chapter
Managing and Performing
Bottom Line
Learning Objectives 2
Key Student Questions 3
Class Roadmap 4
CHAPTER CONTENTS
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1 Summarize the major challenges of managing in the new competi-
tive landscape.
2 Describe the sources of competitive advantage for a company.
LEARNING OBJECTIVES
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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 simi-
larities and differences they hear in the stories.
• Link the similarities to the skills needed for planning, organizing, leading and controlling, and
• 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 they 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
they 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 quar-
ter. If at all possible, I try to do three things on the first day of class:
you help your students become more excited about it, too.
KEY STUDENT QUESTIONS
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Management in Action
Introducing the Best: Amazon’s Jeff Bezos
A company that didn’t exist two decades ago, Amazon jumped into e-commerce in a big way, quickly
becoming the world’s biggest retailer. And its founder, Jeffrey T. Bezos, remains at the helm today. Bezos
LO 1: Summarize the major challenges of managing in the new competitive landscape.
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,
E.G.
Use Example 1.1 – Technological Change here
B. Technological Change
1. The Internet has changed the way management thinks and acts.
I. MANAGING IN THE NEW COMPETITIVE
LANDSCAPE
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3. The percentage of trade that takes place on the Net is growing at an amazing rate, as is the
number of Internet users worldwide.
E.G.
Use Example 1.2 – Innovation here
C. Knowledge Management
D. Collaboration across “Boundaries”
1. Effective collaboration requires productive communications between different departments,
divisions, or other subunits of the organization.
2. Knowledge management is about finding, unlocking, sharing, and altogether capitalizing on
the most precious resources of an organization.
a. Workers’ Expertise
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 twenty years. An important consideration is that before
Gen Xers and Millennials can assume higher level positions in businesses, schools, government agencies,
and non-profits, organizational knowledge must be transferred from senior management to the less expe-
rienced Gen Xers and Millennial employees.
Teaching Tip:
Ask students to identify a time that they shared feedback with a company about its products, whether
II. MANAGING FOR COMPETITIVE
ADVANTAGE
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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
LO 3: Explain how the functions of management are evolving in today’s business environ-
ment.
A. Innovation
1. Innovation is the introduction of new goods and services.
2. Your company must innovate or die.
E.G.
Use Example 1.3 – Leading here
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, relia-
C. Service
1. Service means giving customers what they want or need, when they want it….Get
more customers.
Chapter 01 – Managing and Performing
D. Speed
1. Speed involves rapid execution, response, and delivery of results. It often separates the win-
ners from the losers.
E. Cost Competitiveness
1. Cost competitiveness means keeping costs low enough so that the company can realize prof-
its and price its products at levels that are attractive to consumers.
2. Costs that need to be managed carefully:
a. Raw material
3. Managing costs and keeping them low requires efficiency – accomplishing goals by using re-
F. Sustainability
1. Sustainability is the effort to minimize the use of resources, especially those that are pollut-
ing and nonrenewable.
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.
Management is the process of working with people and resources to accomplish organizational
goals.
III. THE FUNCTIONS OF MANAGEMENT
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The fundamentals of management include the four traditional functions of management:
1) Planning,
A. Planning: Delivering Strategic Value
2. Planning activities include analyzing current situations, anticipating the future, determining
3. Delivering strategic value is a process in which people throughout the organization use their
B. Organizing: Building a Dynamic Organization
1. Organizing is assembling and coordinating the human, financial, physical, informational, and
other resources needed to achieve goals.
C. Leading: Mobilizing People
1. Leading is stimulating people to be high performers.
D. Controlling: Learning and Changing
1. Controlling monitors progress and implements necessary changes.
E. Performing All Four Management Functions
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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 over-
E.G.
Use Example 1.4 – Top-level managers here
B. Middle-level managers
1. Middle-level managers are located in the organization’s hierarchy below top-level manage-
ment and above frontline managers.
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.
D. Working leaders with broad responsibilities
1. Complete businesspeople.
2. Knowledge of all business functions.
3. Accountable for results.
IV. MANAGEMENT LEVELS AND SKILLS
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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. A 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.
E.G.
Use Example 1.5 – Interpersonal and communication skills here
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.
B. Be Both a Specialist and Generalist
1. To become a specialist: you must be an expert in something – Have specific skills that pro-
C. Be Self-Reliant
1. Take full responsibility for yourself, your actions, and your career.
2. Find new ways to improve your overall performance.
V. YOU AND YOUR CAREER
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Teaching Tip:
This is a good point in the lecture to tell your students about your university’s career development center,
D. Connect with People
1. Have many good working relationships and be a team player with strong interpersonal skills.
E. Actively Manage Your Relationships with Your Organization
1. Managerial action is your opportunity to contribute
a. Utilize human skills
F. Survive and Thrive
1. Successful executives share some common practices:
a. They ask “what needs to be done?”
E.G.
Use Example 1.6 – Survive and Thrive here
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p. 7: 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
p. 12: 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
p. 23: 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
BOTTOM LINE
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Global Business Leaders Push for Zero CO2 Emissions by 2050
1. To what degree do you agree or disagree with the B-Team’s goal for world governments to
reach net zero CO2 or greenhouse gas (GHG) emissions by 2050?
Climate chance should be taken quite seriously. Science has shown that climate change is real,
2. Should governments of developing economies like China and Brazil be held to the same goals
for the reduction of CO2 or greenhouse gas (GHG) emissions as the governments of developed
nations?
Developed nations have a greater responsibility to utilize innovation and wealth to reduce CO2
SOCIAL ENTERPRISE
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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 cofounder of Honda Motor Company, T. Fujisawa, observed that, “Japanese and
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 employ-
ee.
THE WORKFORCE
Japanese workers cooperate for good of the organization, avoiding individual recognition in favor of
group, corporate, and national accomplishments. The American worker is viewed as an individual
who looks out for number one.
LECTURETTES
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MANAGEMENT STYLE
The American management style tends to impose control through explicit and formal rules and regu-
lations 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 be-
comes 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 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
SUPERIOR-SUBORDINATE RELATIONSHIPS
There is a clear superior-subordinate relationship in American companies and this relationship is of-
ten 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 rela-
tionship that is almost Godfather-like: a relationship that is both functional and emotional. The Japa-
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 group participa-
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ering more information as they go, changing that general direction as necessary, and making a deci-
sion at the last moment. 1
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
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 hun-
dreds of brief episodes, few of which are brought to closure. Interruptions and disconti-
nuity is commonplace. American executives tend to spend less than nine minutes on any
one issue or activity. This pressure often extends throughout an organization. For exam-
ple, 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.
1 Adapted from Gene Burton, “Japan vs. United States: A Comparison of Corporate Environments and Characteristics,” Human Systems
Management 8, No. 2, 1989, 167-173; Graef Crystal, “The Great CEO Pay Sweepstakes,” Fortune, June 18, 1990, 94-102; Boyle DeMente, The
Japanese Way of Doing Things (Englewood Cliffs, NJ: Prentice-Hall, Inc., 1981); Robert Doctor, “Asian and American CEOs: A Comparative
Study,” Organizational Dynamics, Winter 1990, 45-46; Frank Gibney, Japan: The Fragile Super Power (New York: W.W. Norton and Co., Inc.,
Chapter 01 – Managing and Performing
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6. Verbal activities dominate the manager’s time. In two British studies, managers were
7. Managers use many contacts and tend to network. Because of their high-level involve-
ment in verbal communication, managers tend to have contacts with many people. The
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 mean-
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
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,
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.
THE ROLES A MANAGER MUST PERFORM
Chapter 01 – Managing and Performing
Mintzberg and others have identified ten major roles that managers must fulfill:
1. Interpersonal roles
➢ Figurehead – Entails symbolic duties associated with the formal organization.
2. Informational roles
➢ Monitor – Seeks appropriate information from both internal and external sources.
3. Decisional roles
➢ Entrepreneur – initiates and encourages change, creativity, and innovation.
➢ Disturbance Handler – Initiates the corrective action needed to deal with important,