WHAT IS MANAGEMENT - McGraw-Hill
What is
MANAGEMENT?
Other Teaching Tools 1.2
Video Notes 1.3
Brief Chapter Outline and Learning Goals 1.4
Lecture Outline and Lecture Notes 1.5
Notes for End-of-Chapter Materials 1.18
Review questions 1.18
discussion exercise 1.1 For UPS Managers, a School of 1.18
Hard Knocks
discussion exercise 1.2 New on the Job: Rookie Flubs 1.19
Career Management Notes 1.21
Study Skills Notes 1.22
Lecture Links 1.23
lecture link 1-1 Performing Managerial Roles 1.23
lecture link 1-2 Learning Management Skills 1.23
LectURE LINK 1-3 Beware of Bad Bosses 1.25
Bonus Internet Exercises 1.27
BONUS INternet Exercise 1-1 Researching Careers in Health 1.27
Care Management
BONUS INternet Exercise 1-2 Researching Philanthropy 1.28
Critical Thinking Exercises 1.29
critical thinking exercise 1-1 Management Tasks 1.29
critical thinking exercise 1-2 Rate Your Management Skills 1.30
Bonus Cases 1.31
BONUS case 1-1 Meg Whitman: A New Kind of Auction Hero 1.31
BONUS case 1-2 Moving up the Corporate Ladder 1.33
BONUS case 1-3 The World’s Largest Charity 1.35
Other Teaching Tools
For a description of each of these valuable teaching tools, please see the Preface in this manual.
Student Learning Tools
Student Online Learning Center (OLC) (ghillyermanagement)
Student Study Guide
Spanish Translation Glossary (OLC)
Spanish Translation Quizzes (OLC)
Instructor Teaching Tools
Instructor Online Learning Center (ghillyermanagement)
Annotated Instructor’s Resource Manual
IRCD (Instructor’s Resource Manual, Test Bank, PowerPoints, EZtest)
Asset Map
PageOut
PowerPoint Presentations (on IRCD and OLC)
Test Bank
Management at the Movies (DVD)
Management Videos on DVD
Enhanced Cartridge Option
Spanish Translation Glossary (OLC)
video NOTES
Two video series are available for use with Management: A Real-World Approach.
Management at the Movies
This innovative video collection includes video clips from twenty of the best Hollywood films. The Video Notes section of this Instructor’s Resource Manual (beginning on page V.1) provides Instructor’s Teaching Notes for each of the video segments, along with Student Materials keyed to chapter concepts.
Movie 1. “Fast Times at Ridgemont High” (2:14)
ILLUSTRATES THE DIFFERENT ACTIONS A MANAGER MAY TAKE WHEN DEALING WITH CUSTOMER CONFLICT.
Management Videos on DVD
Also included are twenty videos geared to individual chapter topics. The teaching notes for these videos are also included in the Video Notes section of this Instructor’s Resource Manual (beginning on page V.50).
Video 1: “Winning Advice from Jack Welch” (6:15)
This video focuses on key management advice from Jack Welch. It is a good 10,000 foot overview, which tailors it nicely to this chapter.
Video “A Happy Customer Is a Repeat Customer”
The manager in this video offers good advice to a subordinate. This demonstrates a very basic approach to management.
BRIEF CHAPTER OUTLINE AND LEARNING GOALS
CHAPTER 1
What Is Management?
I. WHAT IS MANAGEMENT?
Learning objective 1
Define management.
A. Defining Management
B. Levels of Management
Learning objective 2
Identify and explain the levels of management.
C. Senior Management
D. Middle Management
E. Supervisory Management
II. THE MANAGEMENT PROCESS
Learning objective 3
Explain the management process.
A. Management Tasks
B. Manager Roles
Learning objective 4
Explain the basic principles of management.
C. Management Skills
III. THE MANAGEMENT AGREEMENT
IV. the changing nature of the manager’s environment
Learning objective 5
Identify the changing nature of the manager’s environment.
A. Information Availability
B. Attitude Toward the Work Environment
C. Demographics
D. Diversity
E. Business Ethics
lecture OUTLINE AND LECTURE NOTES
The world of work:
Tony Gets a Promotion (Text pages 2-3)
The chapter begins with a case involving Tony Davis, a four-year employee of Taco Barn. Tony has worked for the local Taco Barn after high school and has been trained in every area in the restaurant. Tony’s supervisor, Jerry Smith, is being promoted to regional manager, leaving the position of unit manager open. Tony is now meeting with Dawn Williams, regional manager for his area. Williams gives Tony glowing praise and then offers him Jerry’s old position as unit manager. This case will be revisited at the end of this chapter as Tony learns the challenges he will face.
1. Do you think Tony is ready for this promotion? Why or why not?
Tony feels excited about being complimented and wanted by the company. By feeling wanted, it is normal to feel confident and ready to set the world on fire. However, Tony is still a young person who lacks some of the emotional, educational, and life maturity that it takes to be a good manager right away. Tony has operated under a good boss, who has probably been through the battles of the job, and has been educated from the “school of hard knocks”. Tony might think he is ready for the challenge – an important quality. But, without question, he will face some difficult challenges. He will need some seasoned, veteran leadership both on his staff and in the higher ranks to give him sound advice and guidance.
2. The team at Tony’s location is performing well. Is there anything that he needs to change?
Initially, Tony can enjoy the benefits of the sound model his boss developed at this location. However, Tony might have some tweaking to do as he learns more about his own job expectations and the strengths and weaknesses of his staff, and as he becomes more familiar with all the tasks of being a manager (see the Lecture Outline and discuss the duties of Supervisory Management). As time goes on, the current staff will remember less of their old boss and will respond to the needs and commands of their new boss.
3. What skills do you think Tony will need to succeed in his new role? Refer to the “Management Roles” section on pages 8-10 for guidance here.
Tony is young and has moved into the management position after his years on the job while in high school. Tony needs more training on what his company is really like on the inside to become better at developing the mission and vision of the company (see “Senior Management” in the Lecture Outline). Next, Tony needs more formal education at the local community college to get a better handle on what his main function is – managing people. Third, Tony needs to spend time with the middle management staff to learn more about what their roles are and how they affect his job at the store level. Additionally, Tony needs to see the middle level management operate so he has a sense of what they do, how they influence his job and performance, and so he can get an idea of what it might be like to move onto the next level of job category should he become successful at the store level.
4. What should Tony do in his first week as manager?
Tony would do well to meet with all of his employees to explain his hiring for the position and the promotion of his former boss. This is extremely important to make sure that everyone is clear on the management changes and that they hear it directly from him (some rumors almost always exist when a management change occurs). Next, Tony should assure everyone that the store is running smoothly and that he intends to keep everything running the same without any immediate changes (this also assures everyone that they still have their jobs and as that all is well with the company). Third, Tony should ask that all employees follow the same, previous chain of command but also let them know that his door is open should something out of the ordinary come up. Finally, Tony should immediately begin making his own mental notes as to how each employee is handling his/her job and duties, as his main function as the manager is to get the best performance from the best staff he can produce. His job depends upon results, and it is in his best interest to assess what he has and what planning and development might be needed to keep his store running at a high level.
|Lecture outline lecture notes |
| I. What is Management? | |
|Learning objective 1 |Powerpoint 1-1 |
|Define management. (Text page 4) |Chapter Title |
|A. Constant change affects all organizations, creating new challenges for managers. |(Refers to text page 1) |
|1. Concern for the environment changes the way management thinks about their actions. | |
|2. Companies face competition from all over the world. | |
|3. Workplaces are increasingly diverse. |PowerPoint 1-2 |
|B. Defining Management |Learning Objectives |
|1. Management is the process of deciding the best way to use an organization’s resources to produce |(Refers to text page 3) |
|goods or provide services. | |
|2. The organization’s resources include its employees, equipment, and money. | |
|3. But, within that definition, management is very complex. | |
|Learning objective 2 | |
|Identify and explain the levels of management. (Text pages 4-5.) | |
|C. Levels of Management | |
|1. All organizations, large and small, need managers. | |
|D. Senior Management | |
|1. Senior management is the highest level of management. | |
|a. It sets the organization’s goals. |PowerPoint 1-3 |
|b. It decides which actions are necessary to meet those goals. |What Is Management? |
|c. It decides how to use the organization’s resources. |(Refers to text page 4) |
|2. Job titles at this level include Chairperson of the Board, CEO, COO, CFO, and senior vice | |
|presidents. | |
|3. Senior managers concentrate on setting the direction the company will follow, not day-to-day | |
|operations. | |
|E. Middle Management | |
|1. Middle management is responsible for implementing and achieving organizational objectives. | |
|2. Examples: department heads and district sales managers. | |
|3. Middle managers set goals for specific areas and decide what the employees must do to meet those | |
|goals. | |
|F. Supervisory Management | |
|1. Supervisory management, the first-level of management, manages operative employees. | |
|2. These managers oversee day-to-day operations (examples: forepersons, crew leaders, and store | |
|managers.) | |
|3 The text uses the example of management levels at JC Penney. | |
|4. The three levels of management form a hierarchy, or a group ranked in order of importance, with |TEXT Figure 1.1 |
|very few senior managers at the top and many supervisory managers at the bottom. |The Management Pyramid |
| |(Text page 6) |
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| |Bonus Case 1-1 |
| |Meg Whitman: A New Kind of Auction |
| |Hero |
| |Meg Whitman turned an online auction |
| |site into one of the world’s biggest |
| |dot-com success stories. (See complete|
| |case, discussion questions, and |
| |suggested answers on page 1.31 of this|
| |manual.) |
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| |Bonus internet |
| |exercise 1-1 |
| |Researching Careers in Health Care |
| |Management |
| |This Internet exercise directs |
| |students to explore the field of |
| |health care management. (See complete |
| |exercise on page 1.27 of this manual.)|
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| |TEXT Figure 1.2 |
| |Levels of Management |
| |(Text page 6) |
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| |PowerPoint 1-4 |
| |Levels of Management |
| |(Refers to text page 7) |
| II. THE MANAGEMENT PROCESS | |
|Learning objective 3 |PowerPoint 1-5 |
|Explain the management process. (Text pages 5-8) |The Management Process |
|A. Ways to Understand Management |(Refers to text page 6) |
|1. Divide the tasks that managers perform into categories. | |
|2. Look at the roles that different types of managers play. | |
|a. A role is a set of behaviors associated with a particular job. |TEXT REFERENCE: |
|3. Look at the skills that managers need to do their jobs. |Career Management: |
|B. Management Tasks or Functions |Understanding Career Planning |
|1. Managers in all organizations engage in basic activities. |Career planning is the process by |
|a. Planning is the process of deciding what objectives to pursue during a future period and what to |which an individual develops |
|do to achieve those objectives. |objectives for the future and acquires|
|b. Organizing is grouping activities, assigning activities, and providing the authority necessary to |the necessary resources and takes |
|carry out the activities. |appropriate steps to achieve the |
|c. Staffing is determining human resource needs and recruiting, selecting, training, and developing |desired career outcome. The key is to |
|human resources. |start planning now. (Box in text on |
|d. Leading is directing and channeling human behavior toward the accomplishment of objectives. |page 6.) An additional exercise and |
|e. Controlling is measuring performance against objectives, determining the causes of deviations, and|discussion is available in this |
|taking corrective action where necessary. |chapter on page 1.21. |
|2. Many management activities and functions overlap. | |
|3. Different levels of management focus on different activities. | |
|a. Senior managers divide their time almost equally among the five functions. |PowerPoint 1-6 |
|b. Middle managers spend most of their time leading and controlling. |Management Tasks |
|c. Supervisory managers spend little time planning and a lot of time leading and controlling. |(Refers to text pages 6-7) |
|progress Check Questions (Text page 8) | |
|What is management? | |
|Describe the three levels of management. |critical thinking |
|Describe the five categories of management tasks. |exercise 1-1 |
|Which of the management tasks is most important for a front-line manager? Why? |Management Tasks |
|Learning objective 4 |This exercise asks students to |
|Explain the basic principles of management. (Text pages 8-14) |organize managerial activities they |
|C. Management Roles |have performed into the five |
|1. In exercising their authority within the organization, managers take on different roles. |management tasks, or functions. (See |
|2. Henry Mintzberg identified 10 key managerial roles, split into three categories. |complete exercise on page 1.29 of this|
|a. Interpersonal |manual.) |
|i. the figurehead role | |
|ii. the leader role | |
|iii. the liaison role |PowerPoint 1-7 |
|b. Informational |Management Task |
|i. the monitor role |Examples |
|ii. the disseminator role |(Refers to text page 7) |
|iii. the spokesperson role | |
|c. Decisional |PowerPoint 1-8 |
|i. the entrepreneur role |Management Task |
|ii. the disturbance handler role |Examples (continued) |
|iii. the resource allocator role |(Refers to text page 7) |
|iv. the negotiator role | |
|3. Mintzberg found that managers were more often “in the moment” rather than focused on strategic | |
|plans, jumping from problem to problem. | |
|progress Check Questions (Text page 10) |TEXT Figure 1.3 |
|What are Mintzberg’s three categories of managerial roles? |Relative Amount of Emphasis Placed on |
|Describe and provide an example of five of the 10 managerial roles. |Each Function of Management |
|Think of a manager you work for currently (or have worked for in the past). How would you describe |(Text page 7) |
|his or her combination of managerial skills? | |
|Why are managers called upon to be “in the moment”? | |
|D. Management Skills | |
|1. Managers need to have three types of skills. |TEXT Figure 1.4 |
|a. Conceptual skills involve understanding the relationship of the parts of a business to one |Management Roles |
|another and to the business as a whole. |(Text page 9) |
|b. Human relations skills: Drawn from the Hawthorne Studies and the work of Elton Mayo, the human | |
|relations movement argued that workers respond primarily to the social aspects of their work | |
|environment. | |
|c. Technical skills involve the ability to perform the mechanics of a particular job. | |
|2 All levels of management require a different combination of these skills, but different skills are | |
|more important at different levels of management. | |
|progress Check Questions (Text page 11) | |
|Why is it important to understand the skills required to perform a particular job? | |
|Give an example of each of the three managerial skills. | |
|Find a job description for a management position from your local newspaper or a website such as | |
| or . How do the responsibilities outlined in that job description | |
|match-up to the three managerial skills? | |
|Why are human relationship skills important at all levels of management? | |
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| |TEXT Figure 1.4 |
| |Management Roles |
| |(Refers to text page 9) |
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| |PowerPoint 1-9 |
| |Managing Roles |
| |(Refers to text pages 8-9) |
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| |Lecture link 1-1 |
| |Performing the Management Roles |
| |Senior management is often called on |
| |to perform the very visible roles of |
| |spokesperson and figurehead. (See |
| |complete lecture link on page 1.23 of |
| |this manual.) |
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| |PowerPoint 1-10 |
| |Management Skills |
| |(Refers to text pages 10-11) |
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| |lecture link 1-2 |
| |Learning Management Skills |
| |Another way of classifying specific |
| |management skills is presented here. |
| |(See complete lecture link on page |
| |1.23 of this manual.) These concepts |
| |are also used in Critical Thinking |
| |Exercise 1-2 below. |
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| |critical thinking |
| |exercise 1-2 |
| |Rate Your Management Skills |
| |This exercise expands on the |
| |classification of management skills |
| |(based on Lecture Link 1-2 above.) See|
| |complete exercise on page 1.30 of this|
| |manual. |
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| |TEXT Figure 1.5 |
| |Mix of Skills Used at |
| |Different Levels of |
| |Management |
| |(Text page 11) |
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| |TEXT REFERENCE |
| |Study Skills Box: Study Skills Are a |
| |Learned Behavior! Studying is a |
| |learned behavior that can improve with|
| |practice. (Box in text on page 11.) An|
| |additional exercise and discussion is |
| |available in this chapter on page |
| |1.22. |
|CASE INCIDENT 1.1 |
|The Wadsworth Company (Text page 12) |
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|Donna Carroll has been supervisor of the small parts subassembly department of the Wadsworth Company for a year. Donna decided to have two |
|group leaders report to her, Evelyn Castalos and Bill Degger. Evelyn made work assignments and Bill assumed the task of training new |
|employees. Now some employees are complaining about how Donna and her two group leaders have been performing. |
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|1. Do you think Donna should have delegated the duties Evelyn and Bill are handling? Why or why not? |
|Delegation is an essential activity of all companies no matter their size or structure. Delegation is a helpful tool, but it can be misused |
|and nonproductive if not developed and carried out correctly. Part of delegating is knowing how to use and motivate employees, as well |
|understanding how to accomplish the company’s goals and missions without creating a sense of power and self-service in the person in charge.|
|Finally, delegation at its heart must be done in fairness to help motivate employees and to wake up nonproductive ones. However, it must be |
|done with good cause and equity. |
|To answer the question, Donna had good cause to use some levels of delegation considering she supervises 28 employees. Her choices for |
|delegating work assignments and training may be questioned and scrutinized. Further investigation as to her choices of Evelyn and Bill could|
|be reviewed. Their training and supervision need to be looked at in order to understand their selection as supervisors. Finally, the upper |
|level manager(s) Donna reports to should have some say in the hiring of these supervisors, as well as the development and selection of |
|future supervisors. |
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|2. What difficulties do you see for Evelyn and Bill in being both group leaders and operative employees? |
|A supervisory role has levels of authority that must be respected if it is to be effective. When an employee moves into a supervisory role, |
|it is unwise to have him/her maintain previous non-supervisory duties at the same time; their new supervisory role needs to be entrenched in|
|the company model to be most effective. Dual roles often diminish the supervisory function and the effectiveness that take place during the |
|transition process (see “The Management Agreement” in the Lecture Outline and review the “new rules” for the supervisor). As a result, |
|Evelyn and Bill should be properly groomed and then placed in supervisory roles, so that this department can function at a higher level. |
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|3. Do you consider Evelyn and Bill to be managers? Why or why not? |
|Yes, Evelyn and Bill now act as managers. But not good managers. Bill and Evelyn could become good managers with proper training and support|
|in their new roles. However, the misuse of their authority and the possible mistakes they are making could lead to more problems in morale |
|and performance rather than raising department productivity and output. Early review of Bill and Evelyn’s performance lead you to believe |
|that they are poor managers. However, more information needs to be gathered to make a full, accurate assessment. Once established, better |
|training for Bill and Evelyn would be necessary for the short and long-term growth and development of their jobs. |
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|4. Is Donna doing the right thing in referring employee complaints back to Bill or Evelyn? Why or why not? |
|If Bill and Evelyn were hired in a fair and equitable manner and if Donna and her direct supervisor(s) correctly supported their promotion, |
|you could argue that the normal chain of command for Donna’s employees is to address their immediate concerns with their direct supervisor. |
|However, it appears that the supervisor system is not operating with the right training and support, causing rifts and complaint levels that|
|are above normal. The frequency of complaints and employee reluctance to take complaints to their direct supervisor suggests that Bill and |
|Evelyn’s performance is less than satisfactory. It is probably in Donna’s best interest to get directly involved and to fix these problems |
|before she loses total control of the work assignments and training functions that are vitally important to her department’s success. |
| III. THE MANAGEMENT AGREEMENT | |
|A. A promotion to management brings more power and responsibility. |PowerPoint 1-11 |
|B. However, the manager must also set the standard for the behavior of department employees. |The Management |
|C. A manager must abide by the management agreement: “with power comes responsibility.” |Agreement |
|D. One of the toughest challenges with a management promotion is developing a new relationship with |(Refers to text pages 12-13) |
|former friends and colleagues. | |
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| |lecture link 1-3 |
| |Beware of Bad Bosses |
| |Bad bosses have always been with us. |
| |This lecture link explains some ways |
| |to handle them. (See complete |
| |lecture link on page 1.25 of this |
| |manual.) |
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|CASE INCIDENT 1.2 |
|The Expansion of Blue Streak (Text page 13) |
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|Arthur Benton started the Blue Streak Delivery Company five years ago. He started with himself, one clerk, and one driver. Within three |
|years, Art decided to expand to provide state-wide service. The new service was an immediate success. The next year, Art decided to expand |
|into two neighboring states. However, the new operations don’t seem to be performing as well as expected and Art spends a significant part |
|of his time traveling between the three states putting out fires. |
|Art decided to have a one-day meeting that all of his office managers would attend in order to discuss the company’s problems and come up |
|with some solutions. |
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|1. Why do you think Blue Streak is struggling to grow? |
|Expansion of a business offers great challenges. If done correctly, a small business can grow exponentially. However, a small business owner|
|has to learn how to develop the “system” and to find the best people who can learn and carry out the mission at a high level. In the case of|
|Blue Streak’s struggles, Art has some work to do if he thinks more growth for the company is essential. One, Art has to look at his business|
|model to see if it is sound and adaptive to each new market he penetrates. Second, Art has to develop the site manager’s duties and |
|responsibilities as clearly as possible, including establishing authority and trust levels so they can truly be the site managers, not |
|babysitters. Third, Art has to make sure he examines each new market to see if his business model can survive, considering the level of |
|sales he would like to obtain, the type and size of the competition, and the potential growth of each site compared to the vision and |
|mission of the company. Not all site selections will grow and prosper; there will be normal attrition. It is just as important move on and |
|cut losses that are draining and nonproductive to the company as it is to stay make something work. |
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|2. Was it a good idea to change managers in all four out-of-state offices? Why or why not? |
|In this case, it appears this was not a good decision. One, two of the four locations were performing well. Second, firing all the managers |
|was too dramatic; nothing was learned as to why such ineffectiveness was occurring. Third, too much pressure was now placed on the new |
|replacement managers. |
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|3. What suggestions would you offer to Art to improve his operation? |
|Art has seen both success and failure. In the process, he has also learned some valuable lessons – good employees with sound guidelines and |
|good training and support can learn and develop into highly productive employees. Once he is able to find a team of senior and middle |
|managers that can help move his business’s vision and mission, Art needs to spend more time on developing the vision and mission of his |
|company. Creating this team and hierarchy will help develop his business model and will create an expectation and culture to which all |
|levels of employees will aspire to and follow. Once Art can do this, he can remove himself from the daily tasks of the store level and allow|
|the talent and dedication of his managers to carry out the goals and objectives of the company. |
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|4. What management skills must Art master if he is to resolve his company’s problems and continue to grow? |
|Art has to be more of a senior manager, spending more time looking at the growth of the company, the challenges of competition and changing |
|demographics rather than worrying about whether an employee showed up for work or if a supply delivery reached a store on a given day. Art |
|has to look at the overall productivity of the company and make strategic decisions for the future growth and well being of his employees |
|and stock holders. |
|progress Check Questions (Text page 14) | |
|Why is management such a difficult subject to study? | |
|Why should a manager model the behavior s/he expects from his/her people? | |
|Consider the list of behaviors one must give up to become a successful manager. Which one would be | |
|the hardest to give up? Why? | |
|Think of your current job (or a job you have had in the past). How well does/did your manager abide | |
|by the “management agreement”? | |
| IV. THE CHANGING NATURE OF THE MANAGER’S ENVIRONMENT | |
|Learning objective 5 |PowerPoint 1-12 |
|Identify the changing nature of the manager’s environment. (Text pages 14-18) |The Changing Nature |
|A. Rapid changes in lifestyles, resources, information availability, and the business environment |of the Manager’s |
|affects management. |Environment |
|B. Information Availability |(Refers to text page 14) |
|1. New data and information are available through access to the Internet, cell phones, e-mail, etc. | |
|2. Increased information availability increases technological change. | |
|a. Managers need more technical skills to deal with change. | |
|b. The organization also needs more skilled and trained employees. | |
|3. New approaches to motivation and leadership are needed. | |
|C. Attitude toward the Work Environment | |
|1. The quality of work life has improved, including: |PowerPoint 1-13 |
|a. Safe and healthy working conditions |Information Availability |
|b. Opportunity to use and develop individual capabilities. |(Refers to text page 14) |
|c. Opportunity for personal and professional growth. | |
|d. Work schedules, career demands, and travel requirements that do not regularly take up family and | |
|leisure time. | |
|e. The right to personal privacy, free speech, equitable treatment, and due process. | |
|2. These work-life changes have had a major impact on the manager’s job. | |
|D. Demographics | |
|1. The United States is becoming older and more diverse. | |
|2. Hispanics are now the largest ethnic group. | |
| |Bonus Case 1-2 |
| |Moving Up the Corporate Ladder |
| |How one person rose through the ranks |
| |to become a successful executive,|
| |then a successful entrepreneur. (See |
| |complete case, discussion questions, |
| |and suggested answers on page 1.33 of |
| |this manual.) |
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| |PowerPoint 1-14 |
| |Attitude Toward the Work Environment |
| |(Refers to text page 15) |
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| |PowerPoint 1-15 |
| |Demographics and |
| |Diversity |
| |(Refers to text page 15) |
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| |TEXT Figure 1.6 |
| |Median Ages of The Labor Force by Sex,|
| |Race, and Hispanic Origin, Selected |
| |Historical Years and Projected 2010 |
| |(Text page 15) |
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| |TEXT Figure 1.7 |
| |Projected Population of the United |
| |States, by Demographic Group: |
| |2010–2050 |
| |(Text page 16) |
|THE WORLD OF WORK |
|Tony Gets Some Advice (Text page 17) |
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|After the heady excitement of his promotion, Tony realizes that needs to learn his new position very quickly, as Jerry will be leaving in a |
|week. He finds he is facing staffing problems, scheduling issues, and introduction of new menu items. |
|1. What do you think the team’s reaction to Tony’s promotion will be? |
|Any time someone in a supervisory role moves on, there will be some positive and negative reactions from staff affected by the decision. |
|Based on the success of this store, it appears that most employees were pleased with their boss and will miss working for him. It is easier |
|to work with the known rather than the unknown. Jerry was a known and well-liked boss, and employees may view Tony with some apprehension. |
|Some employees will make the adjustment fairly easy; some will not. In the short term, the transition should be workable. However, as new |
|and different changes and outcomes happen over time, some employees will grow and develop with the transition, while others will choose to |
|hang on to the previous management style and may never fully adjust to Tony as the new manager. |
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|2. Do you think a week will be enough time for Tony to get all the information from Jerry that he needs to run the store? Why or why not? |
|It is not possible to learn everything in a week. Jerry already has new challenges on his mind and is mentally moving on to his new |
|situation. During this process Tony will be so new to the job that he won’t know all the questions he should ask. Because of these two |
|dynamics, one week will not make the transition as easy as it might be. |
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|3. What else can Jerry do to better prepare Tony for success in his new role? |
|Jerry can emphasize the need to learn what managers do and strongly encourage Tony to examine his role as a manager and the expectations |
|held by the higher levels of the company. Tony will need to understand that his role is governed more by the company’s goals and objectives |
|rather than his own emotions. Jerry needs to assure Tony that there is a management model that can help him do his job and give Tony the |
|confidence to carry out the mission of the company in the process. |
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|4. If you were in Tony’s shoes, what would you do now? |
|Taking on the managers’ job is challenging, especially for the first time. Tony needs to trust his support system, using Dawn for immediate |
|help. She is interested in his store and his success. Tony must also trust the employees he has and count on them to do their jobs as well |
|as they have previously performed (without their taking advantage of the new, inexperienced manager). Finally, Tony must commit to learning |
|good management skills so that he does not make costly mistakes that can hurt his store performance and his future career. Tony must also |
|learn, mature and grow in his new role if he wants to reach his potential and create new, exciting challenges for his career – whether it is|
|for Taco Barn or for other potential companies looking for good, productive managers. |
| E. Diversity | |
|1. Diversity means including people of different genders, races, religions, nationalities, ethnic |Bonus Case 1-3 |
|groups, age groups, and physical abilities. |The World’s Largest |
|2. The workforce now consists of more women and minorities and a smaller proportion of white males. |Charity |
|3. Recently more and more women and minorities have joined the workforce. |Three of the wealthiest persons in |
|4. However, most senior managers in the U.S. are still white men. |the world are busy giving money away |
|5. The problems women and minorities have in winning promotions have created the glass ceiling. |through the Bill and Melinda Gates |
|6. The glass ceiling refers to a level within the managerial hierarchy beyond which very few |Foundation. (See complete case, |
|women and minorities advance. |discussion questions, and suggested |
|F. Business Ethics |answers on page 1.35 of this manual.) |
|1. Business ethics are the application of standards of moral behavior to business situations. | |
|2. Recent business scandals – Enron, WorldCom, Tyco and others – have highlighted the issue of |Bonus internet |
|ethical business management. |exercise 1-2 |
|3. The passage of the 2002 Sarbanes-Oxley Act greatly increased managers’ responsibilities to |Researching Philanthropy |
|accurately report on how the company is performing. |This Internet exercise explores a|
|4. Many organizations have added a chief ethics officer to the senior management team. |charitable organization created by the|
| |founder of Microsoft. (See complete |
| |exercise on page 1.28 of this manual.)|
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| |PowerPoint 1-16 |
| |Business Ethics |
| |(Refers to text pages 17-18) |
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ETHICAL MANAGEMENT (Text page 18)
You are a tech-support specialist for a small computer software manufacturer. Your supervisor informs you that a bug has been found in the software that will take several weeks to fix. You are instructed to “handle” all calls without admitting the existence of the bug. Specific examples are provided to “fob off” the customer, with suggestions of user error and concerns about hardware problems and conflicts with other software packages. The bug, you are told, will be fixed in a scheduled version upgrade without any admission of its existence. Could you do that?
This ethical dilemma can be a good discussion starter. First, what is an employee’s responsibility to perform assignments given to him or her? Is it every right to lie to customers? What would be your future with the company if you decide to tell the truth? Which value is more important: business duties or personal ethics?
Notes for END-OF-CHAPTER MATERIAL
REVIEW QUESTIONS
1. MANAGEMENT HAS OFTEN BEEN DESCRIBED AS A UNIVERSAL PROCESS, MEANING THE BASICS OF MANAGEMENT CAN BE TRANSFERRED AND APPLIED IN ALMOST ANY ENVIRONMENT. DO YOU BELIEVE A GOOD MANAGER IN A BANK COULD BE EQUALLY EFFECTIVE IN A COLLEGE OR UNIVERSITY? EXPLAIN YOUR REASONING.
Students will have differing opinions on this. In many cases it is true that a good manager is universal. Good management skills are very valuable and can be in high demand. However, part of being a good manager is understanding a competitive environment and customer needs. If a good manager does not know his/her competition, s/he can make mistakes that competing businesses can capitalize upon. Also, without a deep understanding customer needs, good managers can become ineffective if they manage from a concept rather than from the ultimate measure of success – a high level of customer satisfaction
2. How does one decide who is and who is not a manager in a given organization? For example, is the operator of a one-person business, such as a corner grocery store, a manager? Explain.
At any level of job performance, all employees are managers of their job duties and responsibilities. As more duties are required, more managing occurs. Therefore, all employees have to manage, some more informally and others with more specific titles and job responsibilities. Some employees will carry the title of manager, which usually connotes some managing responsibilities and operational duties.
3. Do you think management can be learned through books and study or only through experience?
This is a great debate. Some individuals have great leadership qualities, but without proper training may not be effective managers. Likewise, some good managers cannot reach higher levels of managing without more specific training and learning that usually comes from course work and text books. As a result, a good manager is a combination of both learned job skills and additional text instruction, where ideas about management can be expanded and explained in great detail. To summarize, good managers can be taught and good leaders can be trained.
4. Consider your own personality, skills, and work experience. Do you think you would make a good manager? Why or why not?
Management experience is unique to the person. To properly answer this question, each student has to look at each management situation and make a fair and honest assessment. Once done, discussions can bring out the challenges and variables involved. Each person can look at their overall success and determine whether they are or will be a good manager.
discussion exercise 1.1
For UPS Managers, a School of Hard Knocks
1. Do you think other companies could benefit from programs like the Community Internship Program? Why or why not?
Yes. When eyes are opened to the issues faced by the less fortunate, a new appreciation of employee development can be gained and a new dynamic that benefits all can form. Managers need to understand the specific lifestyle issues that their employees struggle with on a daily basis. Diversity education can be a rewarding experience to all employees, and the long-term effects can build a strong team that recognizes and respects these differences and uses this knowledge to create a realistic management style that looks for new ways to solve employee issues.
2. “UPS concedes that it has no concrete evidence that the program works.” Why would a cost-conscious organization like UPS continue to fund this $13 million program without concrete evidence of its effectiveness?
While actual numbers on how this program benefits the company are not revealed, one can look at operating costs of hiring, training and employee development to realize its annual savings to the company. Hiring new employees has real costs. Each new hire is an investment that can pay off in properly trained and productive employees to the company. These costs include training expenses, lack of staffing until new people are hired, and the time it takes for new employees to adjust to the job. When this process is done correctly, costs are minimized. When hiring is not successful, turnover costs are enormous and companies lose productivity. That has dramatic effects on the bottom line. Therefore, more understanding about employees and their specific issues can help managers re-examine how to help them deal with theses issues and, over time, help them develop as productive company employees.
3. What do you think the managers gain from participating in the CIP?
The CIP program helps managers experience something rather than just hearing of the benefits of hiring and properly developing non-traditional employees. The real value of CIP is letting managers experience the process and learning how to work with the specific issues and supporting the process themselves. Without question, we can be told to perform certain functions and not fully understand the why and how it really works. However, when we see the process with our own eyes and start to understand how to best develop and support the best use of these valuable employees, the payoff can be tremendous for the entire company.
4. How would you implement a program like the CIP in your current job (or a job you have had in the past)? Provide specific evidence of the kinds of opportunities you would introduce and what the likely reaction of your fellow employees would be?
This is a great time for students to think about diversity training and how they would use and implement such a program. Each student will see this program from their own background and experiences, and this alone should garnish great discussion. Make sure students are allowed the chance to express their views .In the process the entire class will be exposed to all the insight into the real struggles of specific groups and how companies with a real interest in hiring and developing these ethnic groups can greatly benefit.
discussion exercise 1.2
New on the Job: Rookie Flubs
1. Which of these six tips made the greatest impact on you? Why?
To maximize this exercise, have a brief discussion about each of the six tips for beginners to avoid or, better yet, to manage effectively. Make sure students understand how the size and culture of a company affects the dynamics of the situation. Large companies have many departments and a high number of employees, giving you more room for maneuverability, while mid-size companies might expose you, both good and bad, at a higher rate. In a smaller company setting you have to pay greater attention to all your actions, as these actions are much more easily seen by upper level management.
2. Which of these six tips had the least impact on you? Why?
Have students internalize each of the six tips and understand why each is essential. During this close examination, discuss why each is important and why each might be less important. Try to get class consensus of the importance of each tip; see how this develops. The resulting list might not be the perfect order, but it forces the students to look more closely at each tip and see the real benefits and overall objectives of this list.
3. Could you apply these tips in your current job (or a job you have held in the past)? Why or why not?
In the progression of this exercise, take the discussion to the students’ real work environment and let them apply these tips to their personal experiences. This should change their views and discussions, as students see the value of some of the tips and move away from the ones that do not help them. Try to get a new consensus of how they view the list and compare it to the list made in question number two. Why did the list change (if it did) and what new lessons did students learn from this exercise?
4. What other suggestions would you add to this list of recommendations for new hires?
As a conclusion to this assignment, ask students to add new tips that might not have been mentioned. Make sure students consider new employee factors, such as the type and importance of training to their job, the type of employees they spend time with, and what this means for their career development. Have them factor in the personal goals and objectives they want from their own careers. Remember, being a job climber does not mean that all the employees you work for or with share your mind set. Learn to size up associates and bosses as to how they factor into your needs and success on the job.
CAREER MANAGEMENT NOTES
Understanding Career Planning
Instructor’s Notes on Text Box One: Objectives to consider and implement to increase students’ knowledge, usage and understanding of the concepts.
Career planning is often overlooked because of a lack or courses and guides designed to help students better prepare for their own careers. Often students, who have just completed the rigors of college work in hopes of landing a career job still lack career preparation, make poor job choices and become frustrated by the process. Without career planning, it is very difficult to understand how you might fit into a company or how the hiring process takes place. Subsequently, developing a career plan can show an employer that you have knowledge about a specific industry and a company you have targeted for employment, making you look informed and interested, and ultimately a better decision-maker no matter what the outcome might be.
Student Exercise:
1. REVIEW WITH THE STUDENTS THE IMPORTANCE OF UNDERSTANDING WHAT CAREER PLANNING AWARENESS CAN DO BY HELPING STUDENTS REALIZE THAT THEY NEED TO START WORKING ON THEIR OWN CAREER PLANS AS SOON AS THEY BEGIN THEIR COLLEGE CAREERS. ASK THE BASIC QUESTION: IF YOU COULD CHOOSE YOUR “DREAM JOB”, WHAT WOULD IT BE? NEXT, ASK THEM HOW IMPORTANT CAREER PLANNING SKILLS ARE IF YOU ALREADY KNOW WHERE YOU WOULD LIKE TO WORK. CONTINUE THE DISCUSSION, ALLOWING STUDENTS THE OPPORTUNITY TO EXPRESS HOW THEY RATE THE IMPORTANCE OF DEVELOPING THEIR CAREERS AND HOW THEIR WORK NOW CAN PAYOFF AT A LATER TIME.
Study Skills Notes
Study Skills Are a Learned Behavior!
Instructor’s Notes on Text Box One: Objectives to consider and implement to increase students’ knowledge, usage and understanding of the concepts.
Being good at studying is like anything you try: some things you might be better at than others! Do you participate in any extracurricular activities? What are you good at? What are you average or below average at and why? Studying is a learned behavior like any engaged activity and you can improve your study habits and performance with more practice. However, before you jump into doing more, let’s figure out what you need ‘more’ of. Improving your study increases your knowledge of the two main areas of studying that can change your outcome and performance: study preparation and study execution.
Study preparation involves all the activities and aids that help you get the most out of the reading, note-taking and concentration required to learn and master the materials your will be tested on.
Study execution involves the actions you take to ensure that you get the positive testing results you seek. Just like an athlete practices his/her sport, s/he also knows s/he must use the same techniques in competition to assure success. However, often times an athlete – just like a student – has good practice skills but is not mentally tough enough or ready to perform when it counts. Good students understand preparation and “battle readiness” are both necessary to achieve a high level of success. Both skills are necessary to be considered a good athlete, a good student, a good teacher, etc. Often times, students think that they are putting in the time necessary to do well in their classes, but somehow this does not translate into consistently good grades. Learning test-taking techniques can help achieve better results.
Student Exercise:
1. EXPLAIN TO STUDENTS THE DIFFERENCE BETWEEN PREPARATION AND EXECUTION. ASK STUDENTS TO DESCRIBE HOW THEY HAVE PREPARED FOR SOMETHING IMPORTANT THAT REQUIRED A CERTAIN AMOUNT OF PREPARATION IN ORDER TO REACH A HIGH LEVEL OF SUCCESS. ASK STUDENTS TO ALSO DESCRIBE AN EVENT WHERE THEY HAD TO PERFORM OR EXECUTE AS WELL AS THEY FELT THEY COULD TO REACH A HIGH LEVEL OF SUCCESS. DISCUSS THE TWO EXAMPLES AND HOW IT FELT WHEN GOOD PREPARATION LED TO THE DESIRED RESULTS. DISCUSS WHEN THE TWO ACTIVITIES OCCURRED AND DESIRED RESULTS WERE NOT ACHIEVED. ASK THE STUDENTS WHAT MIGHT HAVE LED TO THE LESS THAN DESIRABLE OUTCOME.
lecture links
lecture link 1-1
PERFORMING MANAGERIAL ROLES
Managers in all organizations perform each of the management roles discussed in the text. In addition to acting as negotiator, disturbance handler, information disseminator, etc., senior management is often called on to perform the very visible roles of spokesperson and figurehead. Whether it is the tobacco executives testifying about nicotine and tobacco or former WorldCom executives testifying about the nation’s largest bankruptcy case, managers present the face of the company to bodies of government oversight, such as congressional organizations.
Throughout 2007, parents all over the country discovered that millions of toys manufactured in China posed health problems, including lead paint poisoning. In June of that same year, toy maker RC2 Corp. voluntarily recalled 1.5 million wooden railroad toys and set parts from its Thomas & Friends Wooden Railway product line due to lead paint contamination. In July 2007, Hasbro Inc. recalled Chinese-made Easy Bake ovens after receiving reports of second and third-degree burns to children.
But the hardest hit company was Mattel, Inc. More than 21 million toys, many of them among the most popular items for kids, were recalled by Mattel in 2007 due to the presence of magnets children could swallow or dangerous levels of lead paint. Polly Pocket dolls, Elmos, Big Birds, Batman action figures, Barbie toys, and Sarge figurines from the Disney Cars movie were among the recalled toys.
The recall has cast a large shadow over Mattel and the entire toy industry. About 80% of the toys sold worldwide are made in China, as the cost of doing business there is lower. In an effort to cut costs, Mattel CEO Robert Eckert, who took the helm of the company in 2000, had closed the company’s Kentucky factory (Mattel’s last in the U.S.) and outsourced all production, mostly to China and Mexico.
When called before a U.S. Senate panel, Eckert testified that Mattel was stepping up safety testing for all their toy suppliers in the wake of ongoing fears about the safety of toys made in China. Eckert, who apologized to parents who might have bought unsafe toys from his company, said the manufacturer also launched a new campaign to improve communications with customers, including paid advertising and the establishment of an 800 number and a website.
Eckert also said Mattel now required that every batch of paint used on toys had to come from a certified supplier and then be retested. Paint on finished toys must also be sampled for lead before toys hit the shelves, and the company would increase unannounced safety inspections of subcontractors.
Mattel’s recalls occurred throughout the summer and fall of 2007 and threatened to disrupt the lucrative Christmas sales season. By acting as spokesperson and public representative for the company, Eckert tried to reassure the public that their children’s Christmas toys would be safe. However, Eckert’s testimony was criticized by some industry critics as being “too little, too late.”[i]
lecture link 1-2
LEARNING MANAGEMENT SKILLS
Now that you know some of the broad categories of skills needed by various levels of management, we can look at the more specific skills an aspiring manager needs to learn. Remember that customer satisfaction is the key to success in almost business.
In general, it’s a good idea to take as many courses as are available in oral communication, writing, computers, and human relations. In all managerial jobs, these are the skills in greatest demand. Naturally, it’s also important to develop technical skills in some selected area. There are at least six skills students need to develop their managerial potential: verbal skills, writing skills, computer skills, human relations skills, time management skills, and other technical skills.
Verbal Skills
The bulk of the duties as a manager involve communicating with others. Managers have to give talks, conduct meetings, make presentations, and generally communicate their ideas to others. To prepare for such tasks, students should take oral communication courses and become active in various student groups. It helps to become an officer and assume responsibility for conducting meetings and giving speeches. It also helps to join a choir or other group to become comfortable performing in front of others.
At least half of communication is skilled listening. A good manager mixes with other managers, workers, clients, stockholders and others outside the firm. He or she listens to recommendations and complaints and acts on them. Active listening requires asking questions and offering feedback on what you’ve heard to let others know that you’re truly interested in what they say.
Writing Skills
Managers must also be able to write clearly and precisely. Much of what they want others to do must be communicated through memos, reports, policies and letters. Much of what was said in the past by phone or letter is now communicated by e-mail or fax. While secretaries often wrote and/or corrected letters in the past, managers themselves now send most e-mail and fax messages. Consequently, organizations everywhere are complaining about many college graduates’ inability to write clearly. Students who develop good writing skills now will be miles ahead of the competition. That means taking courses in grammar, composition and keyboarding. To learn to write, people must practice. It helps to write anything: a diary, letters, notes, and so on. With practice, people will develop the ability to write fluidly – just as they speak. With this skill, they will be more ready for a career in management.
Computer Skills
The office of the future will be one full of computers and related technology. As noted above, memos, charts, letters, e-mail and fax messages, and most other communicative efforts will involve the computer. The truly efficient manager of the future can effectively use and take advantage of continually developing in technology. That includes the ability to surf the Internet to find needed facts and figures quickly.
Human Relations Skills
A manager works with people. This means that good managers know how to get along with people, motivate them, and inspire them. People skills are learned through work with people. That means aspiring managers should join student groups, volunteer to help at their church, temple or local charities, and get involved in political organizations. They should try to assume leadership positions where they are responsible for contacting others, assigning them work, and motivating them. Good leaders begin early by assuming leadership positions in sports, community groups, and the like.
Time Management Skills
One of the more important skills for new managers to learn is how to budget their time effectively. There are many demands a manager’s time that must be controlled: telephone interruptions, visits from colleagues, questions from team members, meetings scheduled by top management, and such. Time management courses or workshops will help you develop skills in setting priorities, delegating work, choosing activities that produce the most results, doing your work when you’re at your best, and dealing with interruptions.
Technical Skills
To rise through the ranks of accounting, marketing, finance, production, or any other functional area, it is important to be proficient in that specific area. Therefore, students should choose some area of specialization. To rise to top management, it’s a good idea to supplement undergraduate studies with an MBA (Master of Business Administration) or some similar degree in government, economics, or hospital administration. More and more students go on to obtain advanced degrees; so you, too, may need such a degree to keep up with your colleagues.
(Critical Thinking Exercise 1-2, “Rate Your Management Skills,” on page 1.30 gives students an opportunity to evaluate their skill level in these five important areas.)
lecture link 1-3
BEWARE OF BAD BOSSES
Bad bosses – be they jerks, bullies or micro-managers – have always been with us. Today, however, there seem to be more bad bosses than ever. As a result of downsizing, overextended managers are short-tempered and too busy to provide staff with the support they need. No one has as much power as a bad boss to unnerve you or wreak havoc on your self-esteem. This is why it is commonly said that people don’t quit jobs – they quit bosses. What makes for a bad boss? While some are just plain mean, a bad boss is often all in the eye of the beholder. One person’s boss from hell may be another person’s pin-up.
The key to getting along with a boss is to manage him/her by understanding his/her underlying motivations, which may be different than you think. Here are some common types of bad bosses, their motivations, and some strategies for dealing with them.
The Weak Manager
S/he won’t stand up for you. S/he aggressively avoids taking risks. S/he’s vague, with commitments have the sticking power of water. But the underlying causes of this behavior can vary. Often, s/he simply wants to be liked by everyone and can’t stand conflict. It’s also possible s/he’s too busy to understand when there is a problem or too burned out to care. Frequently, such managers are reluctant to be managers at all, and would much rather be doing their own work. They may also be ill-trained and lack management skills.
If you are dealing with a weak manager, identify the problem. For example, if your manager needs to be liked by everyone, avoid communications that suggest contentious or highly charged emotional issues. Where you can, solve conflicts yourself. If the problem is that s/he is spineless and refuses to take on any leadership role, consider talking to your boss’s boss.
If your boss is too burned out to care or is a reluctant manager, work around him/her. Take the initiative to set out the parameters of the work. Make your boss’s life easy by only talking to him/her about critical issues. If your boss is lacking management skills, explain what you need from him/her to do your job. Then cover yourself by sending an e-mail.
The Political Manager
S/he has an unerring ability to know what will make her/him look good. S/he will go to bat for you only on issues that serve his/her political agenda. S/he’s sneaky and plays favorites, and won’t think twice about using you as a sacrificial lamb to support his/her own career goals. Support this boss’s high need for recognition by making him/her look good on strategic projects. Focus your own efforts on “high-value” work. Be prepared to share the limelight, even if it kills you. Don’t trust this boss to have your own interests at heart. Present the work you want to do by emphasizing its profile and importance to senior management.
The Obsessive Micro-Manager
S/he trusts you the way you’d trust a five-year-old behind the wheel of the car. No matter how much detail you provide or how many times you redo a piece of work, it’s still not right. You’re losing motivation and have lost your sense of competence. Why is s/he so untrusting? Is s/he anxious about failing to please his/her boss, or is s/he simply a control freak? If the problem is his/her own insecurity, anticipate issues that will make your boss anxious with reassurance that you have covered all the bases. Say, for example, “In completing this I spoke to Jane Doe and took the following issues into account . . .” Write it down as well, as s/he may be too anxious to fully process what you are saying.
The Invisible Manager
You have no one to go to for direction. S/he doesn’t have a clue about the volume or pace of your work. You’re killing yourself, but no one notices or gives you feedback. This manager shares many of the underlying motivations of the weak manager. S/he may be invisible because s/he’s too busy, or is a reluctant or unskilled manager. If s/he is pressed for time, do your homework beforehand to make meetings with this boss as efficient as possible. Give yourself direction and feedback by setting milestones and regularly evaluating your effectiveness against them. Establish a mechanism for getting direction, whether it be weekly or monthly meetings at an agreed upon time. Hold your boss to his/her commitment.
The Task Master
S/he doesn’t have a life and doesn’t expect you to either. You’re drowning in work, but s/he keeps heaping on more. His/her timelines are ridiculous. Sometimes an extremely task-focused manager is simply shy or preoccupied or so focused on getting the work done that s/he’s not aware of the impact of his/her behavior on other people. Is s/he aware of your work load? If you’ve talked to your boss and s/he still doesn’t get it, create your own standards for evaluating what is realistic and doable. Don’t be apologetic about wanting time for a personal life. Work-life balance is your right, not a privilege. If your organization wants to “be an employer of choice,” remind your boss of the incongruity between policy and behavior.
The Nasty Manager
S/he’s ruthless. S/he seems to take pleasure in watching you squirm. S/he has pets, and you are not one of them. Sometimes an apparently nasty boss is simply so task-focused that s/he is oblivious to how his/her behavior makes you feel. Underneath a gruff exterior, as the saying goes, may be the heart of a pussycat. When you confront your boss, does s/he apologize or get mad? Regardless of what type of boss you have, your first line of defense is to speak to him/her, as s/he may not be aware of his/her behavior. Don’t make sweeping generalizations about your boss’s personality. Rather, speak to the specific behavior in question and tell your boss how it makes you feel. You can soften your comments and avoid defensiveness by allowing your boss to save face. Introduce your statements with “You may not be aware …” or “You may not realize ...” or “You may not intend …”
If none of these strategies work, you have two choices. If you have good personal reasons for staying in your job – you love your work, you’re learning a lot, or you like the people you’re working with – you can hold your nose and ignore your boss as best you can. Or, you can quit. Use the experience to learn and then move on.[ii]
BONUS Internet exercises
BONUS Internet Exercise 1-1[iii]
RESEARCHING CAREERS IN HEALTH CARE MANAGEMENT
As the nation ages, the health care industry continues to grow rapidly. The health care industry is changing in terms of how and where care is delivered, who is providing those services, and how that care is financed. Go to the website for the American College Healthcare Executives () and answer the questions below. (Sometimes the web address for a location changes. You might need to search to find the exact location mentioned.)
1. What are the requirements for senior-level management positions?
2. How many people are employed in health management positions?
3. Other than hospitals and physicians’ offices, list five types of facilities that would employ a health care manager?
4. Follow the link to the Bureau of Labor statistics provided. (If link is not active, go to and search for health care management.) What is the job outlook for health care managers?
BONUS Internet Exercise 1-2
RESEARCHING PHILANTHROPY
The world’s largest charitable organization is the Bill and Melinda Gates Foundation, created by the Microsoft founder. Go to the Foundation website (,) and answer the questions below. (Sometimes the web address for a location changes. You might need to search to find the exact location mentioned.) Bonus Case 1-3 on page 1.35 in this manual further explores the Gates Foundation.
1. What year was the Foundation created?
2. Who are the Foundation’s officers?
3. What is the Foundation’s total endowment?
4. List three recent grant recipients and the amount granted.
5. What are the key values, or mission, of the Foundation?
Critical thinking exercises
critical thinking exercise 1-1
MANAGEMENT TASKS
Remember the five management tasks? They are: planning, organizing, staffing, leading, and controlling. Think of a job you have now or one you’ve had in the past. List the managerial activities you have done or observed. If you have never had a paid job, remember it takes management skills to manage a home, run a baseball team, or lead a church group. Classify each activity of your job according to its use of planning, organizing, staffing, leading, or controlling tasks.
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critical thinking exercise 1-2
RATE YOUR MANAGEMENT SKILLS
Rate yourself on each of these key management skills.
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NOTES ON CRITICAL THINKING EXERCISE 1-2
LECTURE LINK 1-2, “LEARNING MANAGEMENT SKILLS,” ON PAGE 1.25 DISCUSSES THESE SIX IMPORTANT MANAGEMENT SKILLS.
BONUS cases
BONUS case 1-1
MEG WHITMAN: A NEW KIND OF AUCTION HERO
Going, going, gone! Turning an online auction site into one of the world’s biggest dotcom success stories will keep Meg Whitman, president and chief executive officer (CEO) of eBay, in the spotlight for some time to come. Few people know more about meeting the challenges of today’s dynamic business environment than Whitman. When she took over eBay, it had $6 million in revenue. Today, revenue totals $6.7 billion a year and is growing rapidly. It is no wonder, then, that Worth magazine chose her as number 5 on its list of best CEOs.
How did Whitman get to such a lofty position? She began her career in product management at Procter & Gamble. That experience led to 10 years in consulting with Bain & Company. From there, Whitman went on to Disney, where, among her other accomplishments, she opened the first Disney store in Japan. She then moved on to Stride Rite, where she added to her reputation by revising the Keds brand. Her successes led to her appointment as the CEO of Florists’ Transworld Delivery (FTD) and her launch of FTD’s Internet strategy. That experience proved invaluable to her long-term career. In the interim, she went to Hasbro’s Playskool division – which you may know as the maker of Mr. Potato Head.
With such a successful career, not to mention two children, Whitman didn’t need any new challenges. When eBay asked her to come to California, she hesitated. It was a huge risk for her to take the job, but she had the guts to leave what was comfortable and follow her instincts.
In 1998, everyone was talking about portals like Yahoo! and shopping sites like Amazon, not online auctions. Whitman saw in the tiny Internet auction company something beyond the conventional. eBay began as an Internet auction company that resembled an online garage sale. The process involved bidding for items – mostly used goods – and waiting to see if others outbid you. It turned out to be a wonderful way of selling stuff that was cluttering up the house. It also became a great way to find collectors’ items and goods of all kinds. Suddenly people had a way of buying and selling used goods, as well as new but unneeded items received at weddings, birthdays, and other events. Today, customers are so devoted to the site that they don’t consider themselves “bidding” for items so much as “winning” them. But just how did Meg Whitman turn an online auction process into a profitable business?
eBay isn’t just a dynamic, sprawling business. It is a totally new marketplace. There has never been a guidebook. Like all pioneers of new industries, Whitman and eBay have had to write the rules as they went along. It was messy, but it must have been exhilarating.
Whitman has expanded available goods from garage sale-type items to more expensive goods such as homes, antiques, automobiles, boats, and computers. The company adjusts to the wants and needs of the market very quickly. The question becomes, where does it stop? Whitman’s goal is to make overseas sales reach half of eBay’s total sales. [iv]
discussion questions for BONUS case 1-1
1. WHY WOULD SOMEONE LIKE MEG WHITMAN GIVE UP THE COMFORT OF WORKING FOR SOMEONE ELSE AND OF TAKING HOME A NICE SALARY AND FRINGE BENEFITS FOR THE STRESS OF RUNNING A NEW KIND OF BUSINESS THAT MAY OR MAY NOT SUCCEED?
2. What has surprised you about the rapid rise of eBay? What kind of products do they sell that you didn’t expect?
3. What have you bought or sold on eBay? Did you enjoy the experience? What might have made it better?
answers to discussion questions for BONUS case 1-1
1. WHY WOULD SOMEONE LIKE MEG WHITMAN GIVE UP THE COMFORT OF WORKING FOR SOMEONE ELSE AND OF TAKING HOME A NICE SALARY AND FRINGE BENEFITS FOR THE STRESS OF RUNNING A NEW KIND OF BUSINESS THAT MAY OR MAY NOT SUCCEED?
Nothing compares with taking on a major challenge in life and making it work. This is true even when you have a couple of kids to raise and other pressing things to attend to. It is a personal challenge and an opportunity to show what you can do. This same motivation drives great athletes and great racecar drivers.
2. What has surprised you about the rapid rise of eBay? What kind of products do they sell that you didn’t expect?
There is almost nothing in the world that can’t be sold on eBay. Selling services could be challenging, because service marketing is very different from goods marketing. It is one thing to sell a book or a car or a lamp. It is quite another to sell things like insurance, legal protection, and phone services.
3. What have you bought or sold on eBay? Did you enjoy the experience? What might have made it better?
This is a rather personal question. Students may enjoy hearing about the unusual things that other students have sold or stories they have heard about other people selling. The experience depends on how familiar one is with the process. The more one sells, the easier it becomes. Besides, one can always go to one of the stores that help you sell on eBay.
BONUS case 1-2
MOVING UP THE CORPORATE LADDER
Luther and Lenora Cain left farm life to find greater opportunity in the business world. Luther found a job as a porter and Lenora as a maid. In fact, to earn enough to raise a family, Luther took on three jobs, including one as a chauffeur at Coca-Cola. Soon he became the chauffeur and personal valet to the president of Coca-Cola.
Herman Cain is Luther and Lenora’s son. He learned from his parents that hard work and dedication pay off in the long run. He finished high school second in his class and attended Morehouse College, working after school and summers to help pay his tuition. His father had saved enough money to buy a grocery store, and Herman worked there for a while as well. Inspired by Dr. Martin Luther King, Jr., Herman Cain went on to get a Master’s degree at Purdue University and landed a job at Coca-Cola as an analyst. Four years later, he and his supervisor moved to Pillsbury, where in another five years Cain became vice president for corporate systems and services. His goal was to become president of a firm.
The president of Pillsbury told Cain that he would most likely reach his goal by rising up through the ranks at Burger King, a division of the company at the time. But that meant starting from the bottom, flipping hamburgers and giving up his company car and nice office! Cain hoped it was the right thing to do and, as it turned out, it was. He completed the usual two-year training program in nine months and was named Burger King’s vice president of the Philadelphia region, in charge of 450 units. His region had been a slow-growing one, but Cain turned it into the company’s best region for growth, sales, and profit.
Cain was so successful at Burger King that he was chosen to become president of Pillsbury’s Godfather’s Pizza. Having reached his goal, Cain began his work as president of Godfather’s by streamlining operations. Unprofitable units were closed, and others were made more efficient. Eventually Cain and a partner bought Godfather’s from Pillsbury for $50 million. Since then, the value of the company has doubled. Cain says that service is the driving force behind his business and that his number one rule is “The customer is always right.” He also says that if you love what you are doing, you will be successful. Following that philosophy, Cain became the first African-American president of the National Restaurant Association.
Now Cain works hard to support his community. He supports an outreach program for troubled teens and gives speeches about what it takes to be a success. Many young people think the fast-food industry offers only dead-end jobs. Herman Cain doesn’t see it that way. He sees such jobs as a chance to eventually run something, to own something. He sees opportunity.
discussion questions for bonus case 1-2
1. WHY DO MANY YOUTHS RESIST WORKING FOR FAST-FOOD RESTAURANTS WHEN SUCH JOBS CAN PROVIDE A PATH TO LONG-TERM SUCCESS AS A MANAGER AND POTENTIAL OWNER?
2. What are the risks and opportunities involved in changing your job to seek faster advancement, as Herman Cain did?
3. What obligations do small-business owners have to give back to the community that made them a success?
4. Which career path has the most appeal to you: working your way up through a large corporation or working for yourself? Why?
answers to the discussion questions for bonus case 1-2
1. WHY DO MANY YOUTHS RESIST WORKING FOR FAST-FOOD RESTAURANTS WHEN SUCH JOBS OFTEN PROVIDE A PATH TO LONG-TERM SUCCESS AS A MANAGER AND POTENTIAL OWNER?
This is a great question to allow students to express their views about working in fast-food restaurants – views that may or may not be accurate. For example, they may not know the potential for becoming a manager. They also may not know the advantages of proving that you can show up on time, be responsible, and perform your duties as ordered.
2. What are the risks and opportunities involved in changing your job to seek faster advancement, as Herman Cain did?
The risk is that you won’t get promoted and end up in a job much lower than the one you previously had. The opportunity is to move up quickly and ultimately have a much better position. One must carefully weigh the odds of each outcome before making the decision. Promises made by management may make a huge difference.
3. What obligations do small-business owners have to give back to the community that made them a success?
There is no legal obligation to do so. But there is a moral and ethical obligation because all of us are part of the community and need to contribute as we can.
4. Which career path has the most appeal to you: working your way up through a large corporation or working for yourself? Why?
The question provides a great opportunity for students to weigh in on the advantages and disadvantages of each choice.
Update: Since stepping away from his corporate position, Cain has become a motivational speaker, has hosted his own syndicated talk radio show, and has worked as a business commentator for Fox News. In 2004, Cain unsuccessfully ran as a Republican candidate for the U.S. Senate.
BONUS case 1-3
THE WORLD’S LARGEST CHARITY
Bill Gates is the wealthiest person in the world. According to Forbes magazine, his net worth totals $50 billion. Microsoft’s 2006 earnings were over $51 billion. But at age 50, Bill Gates earned respect in a new way. Along with his wife Melinda, the chairman of Microsoft became the greatest philanthropist in history. Melinda, a former Microsoft colleague, has a Bachelor’s degree in computer science and economics and a Master’s in business from Duke University. Bill dropped out of Harvard at the end of his sophomore year to run Microsoft.
In its short eight-year existence, the Bill and Melinda Gates Foundation has already helped save at least 700,000 lives in poor countries through its investments in vaccinations. In the U.S., its library project has brought computers and Internet access to 11,000 libraries. The fund sponsored the biggest privately funded scholarship program in history, sending over 9,000 high-achieving minority students to college. It is the largest foundation in the world, with an endowment of $35 billion. Each year the Gates Foundation spends almost the same amount as the World Health Organization (WHO.) In 2006, the Foundation made grants totaling over $1.5 billion.
In 1993, advisers gave Bill Gates a copy of the 1993 World Bank Development report. The document explained how many millions of people in poor countries die from diseases that already have cures. Then it listed the most cost-effective methods to prevent those deaths, from immunization to AIDS prevention to nutrition. The document reads like a blueprint for the Gates Foundation.
The Gates run the Seattle-based foundation like a business. They are fluent in the science of public health and both use the language of business to describe their philanthropic work. “There is no better return on investment that saving the life of a newborn,” said Melinda.
The Foundation has been able to instill a rare level of accountability from its grantees. In India, the Foundation runs an HIV/AIDS prevention program, headed by Ashok Alexander. Alexander calls the program’s clinics “franchises.” In 2005, Alexander cut off funding to three nongovernmental organizations because they did not meet agreed upon milestones. “People are not used to being terminated for nonperformance,” says Alexander.
In June 2006, Bill Gates announced that he was stepping down from full-time duties at Microsoft, giving up his role as chief software architect to devote more attention to the Gates Foundation.
Gates did not keep his title of top philanthropist for long. In that same month, Warren Buffett announced that he planned to give away his stake in Berkshire-Hathaway, the company he founded, worth more than $44 billion. Buffett will divide the gift amongst five foundations, but the largest amount will go to the Gates Foundation. Buffett’s donation exceeds the amounts given by the great philanthropists of the past. Andrew Carnegie’s giving totaled about $380 million – $7.6 billion in today’s dollars. Based on the Berkshire stock price on the day the gift was announced, Buffett’s gifts would be worth $37 billion. Because the donation is in the form of Berkshire stock shares given over time, the total donation could grow in value as the company grows.
According to Buffett, he always intended to have his wife oversee his charitable giving after his death. But after she died in 2004, he saw an opportunity to invest in “an existing well-respected foundation run buy two ungodly bright people.” He changed plans and started giving away his fortune in 2006.
Buffett credits his wife Susan for his change in priority. “We agreed with Andrew Carnegie, who said that huge fortunes that flow in large part from society should in large part be returned to society,” said Buffett.
The gift more than doubled the size of the Gates Foundation. “We are awed by our friend Warren Buffett’s decision to use his fortune to address the world’s most challenging inequities,” Bill and Melinda Gates said in a statement. “As we move forward with the work, we do so with a profound sense of responsibility. Working with Warren and with our partners around the world, we have a tremendous opportunity to make a positive difference in people’s lives. [v]
discussion questions for BONUS case 1-3
1. HOW DO BILL AND MELINDA GATES USE BASIC BUSINESS PRINCIPLES TO RUN THE GATES FOUNDATION?
2. Since the Foundation does not earn a profit, how should the success of the Foundation be judged?
3. Most philanthropists are wealthy individuals who begin their charitable work late in life after years of building an enterprise. Why do you think Gates started so early in his life?
4. Why do you think Buffett chose the Gates Foundation for his record-breaking donation?
answers to discussion questions for BONUS case 1-3
1. HOW DO BILL AND MELINDA GATES USE BASIC BUSINESS PRINCIPLES TO RUN THE GATES FOUNDATION?
They use business principles such as return on investment, responsibility, and accountability. Running a philanthropic enterprise is much the same as running a business. You have the same kind of goals, the same need for good workers, the same need to measure performance, and the same need to fire incompetent workers.
2. Since the foundation does not earn a profit, how should the success of the Foundation be judged?
Performance measures will differ by the particular goals established. One goal may be to provide medicine for a certain number of people. Another might be to develop a vaccine for malaria within 6 months. Each goal calls for a different measure of success. One measure may be simply to raise the public’s interest in an issue – such as poor schools or poverty in the United States.
3. Most philanthropists are wealthy individuals who begin their charitable work late in life after years of building an enterprise. Why do you think Gates started so early in his life?
First, he was encouraged to do so by other entrepreneurs. Furthermore, Bill and Melinda have a passion for certain causes and are willing and able to back their interests with the necessary finances. Gates did not leave his business until it was running smoothly and people were in place to keep it going. In fact, new people may add new innovations and help the company continue to grow, creating more wealth for the Gates family and in turn more donations to worthy causes.
4. Why do you think Buffett chose the Gates Foundation for his record-breaking donation?
The Gates Foundation is run like a business, with clear mission, strategies, and controls. This appeals to a businessperson like Buffett. Also, most charities lack the infrastructure to absorb such a large donation. The Gates Foundation already has a large enough network in place.
Endnotes
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[i] Sources: Hope Yen, “Mattel CEO Pledges to Improve Toy Safety,” The Associate Press, September 12, 2007; “Toys R Us, Mattel Take on New Toy Testing Steps in Wake of China Fears,” September 12, 2007; The Associate Press; and Annys Shin, “On Hill, Toy Firm Officials Apologize and Promise Changes,” The Washington Post, September 13, 2007.
[ii] Sources: Barbara Moses, “Bad Bosses and How to Handle Them,” Globe & Mail, May 6, 2002 and Cori Bolger, “When a Royal Pain Reigns, Morale, Productivity Suffer,” The Clarion-Ledger, October 14, 2005.
[iii] The Internet is a dynamic, changing information source. Web links noted in this manual were checked at the time of publication, but content may change over time. Please review the website before recommending it to your students.
[iv] Sources: Hillary Johnson, “Meg Whitman,” Worth, June 2002, pp. 60–61; Melanie Wells, “D-Day for eBay,” Business 2.0, June 2002, pp. 68–70; Alynda Wheat and Matthew Schuerman, “The Power,” Fortune, October 14, 2002, p. 107; Annie Groer, “Furnishing the eBay Way,” The Washington Post, March 27, 2003, pp. HI & H6; David Kirkpatrick, “Tech: Where the Action Is,” Fortune, May 12, 2003, pp. 78–84; and Sallie Krawcheck, “Meg Whitman: A New Kind of Auction Hero,” Time, April 18, 2005.
[v] Sources: Amanda Ripley, “Time Persons of the Year: From Riches to Rags,” Time, December 26, 2005-January 2, 2006, pp. 72-88; Liv Grossman “Bill Gates: Giving it Away in Style,” Time, April 18, 2005; Steven Levy, “Bill Gates Goes Part Time at Microsoft,” Newsweek, June 17, 2006; Yuki Noguchi, “Gates Foundation to Get Bulk of Buffett’s Fortune,” The Washington Post, June 26, 2006; Carol J. Loomis, “Warren Buffett Gives Away his Fortune,” Fortune, June 25, 2006; and information from .
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Chapter
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