Managing

Chapter 01
Copyright 2011 by the McGraw-Hill Companies, I nc. All rights reserved. McGraw-Hill/I rwin
Learning Objectives
LO 1 Summarize the major challenges of managing in the
new competitive landscape
LO 2 Describe the sources of competitive advantage for a
company
LO 3 Explain how the functions of management are
evolving in todays business environment
LO 4 Compare how the nature of management varies at
different organizational levels
LO 5 Define the skills you need to be an effective
manager

1-2
Globalization
Todays enterprises are global, with offices
and production facilities in countries all over
the world
A companys talent can come from anywhere
Internet makes globalization inevitable
1-3
Technological Change: The Internet
Marketplace
Means for manufacturing goods and services
Distribution channel
An information service
1-4
Technological Change: The Internet
Drives down costs and speeds up
globalization.
Improves efficiency of decision making.
Facilitates design of new products, from
pharmaceuticals to financial services

1-5
Managing for Competitive Advantage
Innovation
Quality
Service Speed
Cost
Competitiveness
1-6
Managing for Competitive Advantage
1-7
Innovation
the introduction of new goods and services
often the most important innovation is not the
product itself, but how it is delivered

Managing for Competitive Advantage
Quality
The excellence of your product (goods or services)
Historically, quality referred to attractiveness, lack
of defects, reliability, and long-term dependability

1-8
Managing for Competitive Advantage
Service
The speed and dependability with which an
organization delivers what customers want
1-9
Managing for Competitive Advantage
Speed
Fast and timely execution, response, and delivery
of results.
1-10
Managing for Competitive Advantage
Cost
competitiveness
Keeping costs low to
achieve profits and
be able to offer
prices that are
attractive to
consumers.
1-11
The Functions of Management
Management
The process of working with people and resources
to accomplish organizational goals
Efficient, effective
1-12
The Functions of Management
Planning
Systematically making decisions about the goals
and activities that an individual, a group, a work
unit, or the overall organization will pursue
analyzing current situations, anticipating the
future, determining objectives, deciding in what
types of activities the company will engage
1-13
The Functions of Management
Organizing
assembling and coordinating the human, financial,
physical, informational, and other resources
needed to achieve goals
specifying job responsibilities, grouping jobs into
work units, marshaling and allocating resources,
1-14
The Functions of Management
Leading
stimulating people to be high performers
Controlling
monitoring performance and making needed
changes.

1-15
Managerial Roles: What
Managers Do
1-16
Table 1.2
Management Skills
Technical skill
The ability to
perform a specialized
task involving a
particular method or
process
1-17
Management Skills
Conceptual and decision skills
Skills pertaining to the ability to identify and
resolve problems for the benefit of the
organization and its members.
1-18
Management Skills
Interpersonal and communication skills
People skills; the ability to lead, motivate, and
communicate effectively with others.
1-19