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Susan Quinn Management Basics Download free ebooks at bookboon.com 2 Management Basics © 2010 Susan Quinn & Ventus Publishing ApS ISBN 978-87-7681-717-6 Download free ebooks at bookboon.com 3 Contents Management Basics Contents Management basics 7 1. Management basics – Calm Seas case 8 2. 2.1 2.2 2.3 2.4 2.5 The Manager’s job Management functions Management roles Management skills Not-for-profit note Questions for the manager’s job 11 11 12 12 14 15 3. Planning – Calm Seas case 16 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Planning in the organization Competitive advantage Strategic planning process SWOT analysis Stakeholders Factors inside the organization Factors outside the organization Grand Strategy Mission statements Action/implementation plan Not-for-profit note 18 18 19 19 20 21 22 22 24 26 26 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. In 2010, our MiM employment rate was 95% within 3 months of graduation*; the majority of graduates choosing to work in consulting or financial services. As well as a renowned qualification from a world-class business school, you also gain access to the School’s network of more than 34,000 global alumni – a community that offers support and opportunities throughout your career. For more information visit www.london.edu/mm, email mim@london.edu or give us a call on +44 (0)20 7000 7573. * Figures taken from London Business School’s Masters in Management 2010 employment report Download free ebooks at bookboon.com 4 Contents Management Basics 4.11 4.12 Strategic planning diagram Questions for organizational planning section: 28 28 5. Organizing – Calm Seas case 30 6. 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 Organizing the organization Structure follows strategy Bureaucracy Authority – staff and line Bureaucratic structures “Rules” of a bureaucracy Disadvantages of a bureaucracy Changing the bureaucratic structure The rise of the “group” structure Not-for-profit note Checklist for Team or Group Effectiveness Questions for organizing section: 31 31 31 32 34 40 40 42 43 44 45 47 7. Leading – Calm Seas case 48 8. 8.1 8.2 8.3 8.4 8.5 Leading in the organization Leader vs. manager Leadership theories Knowing what kind of manager/leader to be Motivation Theories and Concepts Content Theories of motivation 49 49 50 52 52 54 Please click the advert Teach with the Best. Learn with the Best. Agilent offers a wide variety of affordable, industry-leading electronic test equipment as well as knowledge-rich, on-line resources —for professors and students. We have 100’s of comprehensive web-based teaching tools, lab experiments, application notes, brochures, DVDs/ CDs, posters, and more. See what Agilent can do for you. www.agilent.com/find/EDUstudents www.agilent.com/find/EDUeducators © Agilent Technologies, Inc. 2012 u.s. 1-800-829-4444 canada: 1-877-894-4414 Download free ebooks at bookboon.com 5 Please click the advert 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 Process Theories of motivation Maslow Expectancy Theory of Motivation explained in simple terms Equity Theory explained in simple terms What do employees want? Motivation summary Not-for-profit note Motivation exercise Questions on leadership/motivation section: 55 56 57 57 58 60 61 62 64 9. Control – Calm Seas case 65 10. 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 11. Control in the organization What does “control” mean? What kinds of controls? Measure what matters What will we monitor? Flowcharting Critical path planning Not-for-profit note Questions on the controlling function: For further reading 66 66 66 67 68 69 69 71 72 73 12. Definition of terms 76 Endnotes 78 You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. Contents Management Basics Looking for a career where your ideas could really make a difference? UBS’s Graduate Programme and internships are a chance for you to experience for yourself what it’s like to be part of a global team that rewards your input and believes in succeeding together. Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates. www.ubs.com/graduates Download free ebooks at bookboon.com 6 Management basics Management Basics Management basics Susan Quinn is an Associate Professor at the Bissett School of Business at Mount Royal University. The running case in this book is a fictional case. The name of the company and the location are fictional. It is a case that is based on a real industry, so that readers, instructors and students can research the industry to apply the concepts and expand the application of the material contained in this text. Download free ebooks at bookboon.com 7 Management basics – Calm Seas case Management Basics 1. Management basics – Calm Seas case Tasneem Khan is the General Manager for Calm Seas, a small ocean kayak manufacturing company in western Canada. It is the end of the day in mid-October. Tasneem is wondering where the day went. She has gotten nothing done on the “to-do” list that she had with her when she started her day. And yet, she had been busy from the moment she walked in until now. She shrugs her shoulders and starts to tackle some of the work piled up on her desk. Everyone else has left the building by now. Perhaps she can get in a couple of hours of uninterrupted work before she goes home. Tasneem had been promoted to General Manager almost two years ago. She had been the Sales Manager before that for 3 years and had worked in sales for another company for 3 years before that. As she sat at her desk, she thought that the job of General Manager was certainly challenging. Being a manager was tough. There was always something going on to eat up her time and keep her busy. Tasneem wondered sometimes how she ever got anything done. She knew how to do her job – that wasn’t the problem. It was trying to get things finished! She thought back over her day to try to figure out what happened. Her day had started before she even got to the office. Her cell phone had rung when she was driving to work. The caller was one of her sales staff who was on his way to a client’s office, but his car had broken down. A car was essential for the sales person’s job and he had an important client visit to make that morning. He had tried to contact the Sales Manager, but he was on a plane and couldn’t answer his phone. She promised to see what she could do about it when she got to the office. As she walked through the parking lot, she saw the sign on the wall of their building, advertising for two more production assistants. That sign looked as though it had been up there for ever. They were always looking for production assistants. Tasneem made a mental note to ask their Human Resource Administrator about that. When she walked into the office, Tasneem asked her Administrative Assistant to arrange for a rental car company to take a car out to their sales person, stranded on the side of the road. Tasneem turned her computer on, knew it would take awhile to start and decided to go to the employee lounge for a coffee. She chatted for a few minutes to a couple of other employees who were there, flipped through the morning paper, glanced at the notices on the bulletin board and returned to her office. She opened up her e-mail and watched all of the new e-mails enter her inbox. She shook her head and wondered how she could have so many new ones. She had checked her e-mail from home last evening and had gotten caught up. Now, she had 60 new e-mails! How was that even possible? She looked more closely and realized that half of them were e-mails that she had been copied on, but didn’t necessarily need to see. She was tempted to delete a lot of them, but then thought she might miss out on some information that she needed to know. She sighed and opened up her calendar to see what was scheduled. Download free ebooks at bookboon.com 8 Management basics – Calm Seas case Management Basics She had appointments that day with the company lawyers to go over the papers to buy a small piece of land beside their office so that they could build an extension of their building. They needed more production capability and they were delighted when this land came up for sale. She got it for a fairly good price and the expansion could start at the end of the month. In addition, there was an appointment scheduled with the contractors to review the designs for the new building. This was the first meeting for them to get together and they needed to really get detailed on their requirements and budget for the construction. Just as she had returned to look at her e-mail, her Administrative Assistant had come in to her office, complaining that she couldn’t get the numbers to reconcile on the sales reports. The Assistant was responsible for ensuring all of the sales figures submitted by the sales staff matched the invoices. Usually she had no problem with this, but they had just installed a new software program and this month, the numbers didn’t work out. Tasneem sat down with her and spent the next thirty minutes trying to figure it out. Finally, one of their delivery people, who was good at computers, came along and gave them some ideas for trouble-shooting. Fifteen minutes later, they solved it. As Tasneem walked back to her office, the sales staff with the car problem phoned back to say his rental car still had not arrived and he was getting anxious about his upcoming client visit. They talked for a few minutes and as he was talking, the car arrived. Tasneem got off the phone. The meeting with the lawyers came next. These were lawyers they had used on a number of occasions before for legal issues, so after the legal matters had been taken care of, they visited with one another and chatted over more coffee. The meeting lasted an hour. After the lawyers left the building, the Production Supervisor waved at Tasneem and asked her to come into the production room. There was a problem with the finish surface on four of the kayaks that were being completed. The finish on the kayaks looked bumpy, which was unusual and spoiled the look of the kayak. This had not happened before and the kayaks could not be shipped to customers in that condition! Tasneem asked the Production Supervisor to call the Production Manager, the production operator and the buyer, who was also a chemist, for a meeting to figure out this problem. An hour and a half later, the bumpiness on the surface was gone and the finish looked perfect. Tasneem next drove to the bank. She had an appointment there to discuss the financial arrangements that they needed for the expansion. As she drove there, she called the friend she was supposed to have lunch with, and cancelled. No time for lunch today. She rummaged around in her briefcase for an energy bar. She made a mental note to grab a sandwich later. The afternoon just sped by. Tasneem had the meeting with the contractors, got reports from the sales staff containing recommendations on pricing structures, had a conversation with the Sales Manager for some new product ideas and talked to accounting about some budget projections that she had to present at Calm Seas next Executive meeting. She asked her Administrative Assistant to run out and buy her a sandwich. Download free ebooks at bookboon.com 9 Management basics – Calm Seas case Management Basics Finally she caught up with the Human Resource Administrator before he left for the day and they discussed the problem they were having finding good production assistants. Tasneem wondered if the Human Resource Administrator was having trouble doing his job. She had hired him only two months ago and thought that she’d have to check in more often to see how he was doing with his responsibilities. That brought Tasneem to the end of the day. The building was quiet now. Most people had left for the day. She looked at her computer and sighed. Over 100 e-mails! She opened up her sandwich and settled in to examine her messages. Another busy day. Download free ebooks at bookboon.com 10