1-1

Chapter

Managing

McGraw-Hill/Irwin
Management, 7/e

Copyright 2007 The McGraw-Hill Companies, Inc. All rights reserve

1-3

Learning Objectives
The major challenges of managing in the new

competitive landscape
The drivers of competitive advantage for your
company
The functions of management and how they
are evolving in todays business environment
The nature of management at different
organizational levels
The skills you need to be an effective
manager

1-4

The New World

The Darwinian struggle of daily business will
be won by people and the organizations
that adapt most successfully to the new world
that is unfolding.
- Business Week August 21-28, 2000

1-5

Managing in the New

Competitive Landscape
Four elements that are defining the current

business environment
Globalization
Internet
Importance of knowledge and ideas
Collaboration across organizational
boundaries

Comments on the
Competitive Landscape

1-6

Managing for Competitive

Advantage
Good managers know that they are in a

competitive struggle to survive and win

To survive and win you must gain an
advantage over your competitors
The key to long-term success is the
competitive advantage held by the company

1-7

Managing for Competitive

Advantage
Sources of competitive advantage
Innovation
Quality
Speed
Cost

1-8

Managing for Competitive

Advantage
Which strategy

should a manager
use?
The best managers
and companies
deliver them all

1-9

The Functions of
Management
Management is the process of working with

1-10

people and resources to accomplish

organizational goals
Good managers are both effective and
efficient in this process
Efficient means goals are achieved with
minimal resources wasted
Effective means that the organizational goals
are achieved

The Functions of
Management
What do managers do?
Plan
Organize
Lead
Control

1-11

The Functions of
Management
Planning: Delivering

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

Organizing: Building a

1-12

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

The Functions of
Management
Leading: Mobilizing

People
Stimulating people to be
high performers;
includes motivating and
communicating with
employees, individually
and in groups

Controlling: Learning

1-13

and Changing
Monitoring performance
and making needed
changes

Management Levels and

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

1-14

the overall management and effectiveness of

the organization
Middle-Level: these managers are located in
the middle layers of the organizational
hierarchy and report to top-level executives
Frontline: lower-level managers who supervise
the operational activities of the organization

Management Levels and

Skills

1-15

1-16

Managerial Roles

1-17

Managerial Skills
Technical Skill: Ability to perform a

specialized task involving a particular method

or process
Conceptual and decisional skill: Skills
pertaining to the ability to identify and
resolve problems for the benefit of the
organization and its members
Interpersonal and Communication Skills:
People skills; the ability to lead, motivate,
and communicate effectively with others

1-18

You and Your Career

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

Looking Ahead to Chapter

2
The External Environment Organizational

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

1-19

1-20

Innovation
Innovation is the introduction new goods and services
Innovation is todays holy grail
The most potent means of creating

new wealth
It comes from people; it must be a
strategic goal; and it must be
managed properly

Tide took its well established

detergent into new directions including
Tide for cold-water washing, and a
scrub brush to get out stainsall
branded with the Tide name.

Return

1-21

Quality
The excellence of your product (goods or
services)
Has increased in importance
Has two vital areas
Product
Relates to the actual
product/service
Is now system focused
continuous improvement
Return

Service
Making things easy for
customers
Customizing products
Customer relationship
Management

1-22

Speed
Fast and timely

execution,
response, and
delivery of results
Speed is no longer
just a goal of some
companies; it is a
strategic
imperative
Return

1-23

Cost
Keeping costs low in

order to achieve
profits and be able to
offer prices that are
attractive to
consumers

Return