MGTA01 – LECTURE 8 – MANAGERS AND MANAGING
4 FUNCTIONS OF THE MANAGEMENT PROCESS
1) Planning – There are Different layers of planning
At the top, there is the senior mgmt. team (chief executive officer [CEO], chief
operating officer [COO], chief financial officer [CFO], etc.)
o They are focused on setting the longer-term plans. Once these plans have been
set, there are other levels of planning that are necessary to be managed by
other layers of the firm—middle mgmt. layer
Middle Mgmt Layer
o Ppl who will take the senior mgmt. plans and turn them into monthly, yearly,
and maybe a couple year out plans on how to execute in a way consistent with
those strategic plans.
e.g., manufacturing company senior says they want to expand manufacturing base
in a certain country. They will set the plans, create the budgets, create the
requirements (i.e., what kind of plant is it? What capacity will it have? When will it
be built? How will we raise the money? these are fairly senior level plans around
o The next level will be sort of middle level mgmt. planning How do we staff
it? Where do we get the ppl needed? How do we support the plant? What are
some of the manufacturing goals, say monthly, quarterly, annually, to come
out of those plants? these will be handled by middle managers, such as dept
heads; they are not executives
Lowest level plans (i.e. daily, weekly, monthly plans) How many units should we
be completed? What quality levels? How do we get people trained/hired?
Executed by 1 and 2 level managers (lower level) and supervisors of the firm and
they make sure the work is getting done and meeting the requirements set out by the
higher level managers.
Organizing the resources to work together most effectively and efficiently
Should we build the products or should we buy them from outsourcing companies
that make modules that we can buy from them and incorporate them into our own
products? Called the make vs. buy decision.
o e.g., automobile companies
► Today, the avg auto company does not manufacture a number of
components of their product. Instead, they usually design the product,
market the product, and assemble the product (sometimes with a few
of its own components, particularly the engine). Usually the company is buying its wheels, windows, its little components (e.g., electronics)
from 3 party manufacturers that focus on those sorts of products and
build them best and most cheaply. Then they are supplied to the car
manufacturers who then assemble those things in their assembly plants
into a finished vehicle
Do we organize our business based on building every single product ourselves or NO
do we just build certain types and let a 3 party partners build the others.
Other types of organizing are organizing the labour force within.
o e.g., Hewlett-Packard changes took place over 10 years. It used to be a
confederation of small business units—fairly autonomous, not really working
together all that well (i.e. someone working over at video capture here at HP
wouldn‘t have anything to do with HP‘s work in printing. They started
realized that that organizational strategy was no longer relevant or best suited
to the new emerging world that is so networked. It realized that it needed to
pull those businesses together into a little more cohesive organization
Managers need to make these decisions: How do we organize? + When is it necessary
to evolve the current organization methods?
Both the same and very different from the concept of just managing
o When we think of managing, we‘re thinking often of the 4 point (controlling)
which is making sure the job gets done.
Leading tends to be more about motivation and getting ppl to buy in
Leading is about telling the story of your company TO YOUR COMPANY, TO
YOUR EMPLOYEES. Giving them a sense of the mission under which you as the
executive is operating. Helping them to see why their role matters and helping them
to understand that they are on a good place for their careers right now, this is the
company they should be with, this is a company where they should work a little extra
hard and care about the quality of what they are doing.
It‘s about getting ppl behind the mission of the company and to truly say YES!
o Think about how important this is?
o First of all, you just want to do right by your employees. You want them to
have a sense of accomplishment and feel a sense of belonging.
o Secondly, if you engender those feelings, you‘ll also start to realize that they
need to be monitored less. It‘ll be a less costly job to make sure they are doing
things well and efficiently
When you put these things together, you realize that it‘s not just about managing the
job it‘s about leading ppl as well. 4) Controlling
It is important that the mgmt. team control the uses of the resources of the firm.
Everything you do in a company costs money. It‘s important to recognize that a
company needs to operate effectively and efficiently and that you are not wasting
money while you are getting the job done.
Companies that operate more effectively and efficiently last longer and they are more
successful. There is more to give around to successful employees. There is more
opportunities for growth and expansion duties and making more money for yourself.
It is necessary.
The controller someone who is looking at budgets, at the use of labour but also the
use of the resources of the firm and making sure that those uses line up with the
mission of the firm (e.g., making sure you get the best price when you are going to
bid for a component of your product, making sure that with labour if they are using
overtime that it‘s absolutely necessary, making sure that people are showing up for
work when they need to and staying for as long as they need to).
LEVELS OF MANAGEMENT
1) Senior Management
Responsible for the company‘s overall performance and for developing strategy and
long range plans (2-5 years out)
Includes the roles of CEO, COO, CFO
Works to define the mission of that company and the strategic goals of that company
When defining a strategy/mission it‘s important for the company, the senior
executives think relatively broadly and think out in time because you don‘t want too
narrow a mission and one that is just defined by what you might succeed at in the
next 6-12 months
First of all, you have to define the mission. What do you really do for a living? (e.g.,
is it about electronics or making the home a smarter home?) What is really at the
heart of what they want to accomplish and what they are resourced to accomplish?
o Connected to the mission is the long-term goals/plans for the company i.e.
looking out 3-5 years and saying: What can we accomplish that no one else
can? Then, set those long-term goals and then the strategies in place to help in
achieving those goals
► The long-term goals may be, for example, we want to be #1 in eBooks
around the world in 3 years this is a goal.
► The next step would be creating a strategy to meet this goal done by
► Who do we hire? Do we partner up with certain universities for the
technology? Where do we set up manufacturing? - These large, usually investment-intensive decisions are
necessary to set the company on course to achieve those
Long-term planning tends to be looked at usually twice a year. Senior mgmt. would
meet up and evaluate this level of planning and the progress.
2) Middle Management
Responsible for implementing the strategies, policies and decisions of senior mgmt.
Can be a few different levels within the company
Interesting/challenging role in that they need to look up and look down at the same
time They need to understand the strategies and long-term plans set forth by the
executive team/senior level mgmt. and then they have to look down and see what
kind of team they have and the team they need in terms of employees and junior
managers to find ways to create ways to enact and achieve the strategies set out by
e.g., if senior mgmt. said we need to buy components for this area of our product and
no longer build them that would be a strategic senior executive decision
o Middle mgmt. would be busy finding those partners, training those partners,
developing contracts with those partners, and starting to build those products
through those partners.
e.g., if senior mgmt. said they want to be in 20 new countries in 3-5 years
o Middle managers will also start to send their teams out to investigate how to
do that? Where should they go first? What makes best sense for our product
o They will start to actually engage those decisions and start growing the
business out geographically in line with the goals of senior mgmt.
e.g., senior mgmt. might say we need to reduce our workforce by 20% in the next 3
o Middle mgmt. would be tasked with figuring out how to automate more of the
functions of the business or how to outsource things to different companies to
meet that objective of 20% reduction.
3) First-Line Management
e.g., supervisors, office managers, group or team leaders
Main role is to supervise the work of the employees
People have assumed these roles because they were good at what they were doing as
e.g., customer service desk worker for the last 2-3 years they were really good at
handling customer service calls. If you‘re one of the middle managers running the
support departments, you look at the employee and you say ―You know what, I‘d like you to become the call center supervisor because I want you to influence how
everyone else is answering their calls.‖ As the middle manager, you would elevate
them to a supervisory role.
o This is great because you can in a way influence the next generation of your
o Sometimes, however, it can work against you because you just lost your best
performer. That performer may have been best at their task, but when they try
to become a manager and explain and teach and motivate people to do the
same, sometimes they are not as good as that as you would have thought.
► This is where it takes some thought and effort on the middle manager‘s
part where they need to say: I need to help this person transition from
an employee role to a supervisory role. I need to get them trained and
practiced and supported and I need to work with them and it will take a
few months before they engage effectively in this new role
First-line managers play a large role in the control function in terms of supervising
the actions of the employees and making sure they are showing up, making sure they
are doing an effective and efficient job and making sure quality is not being left
behind and making sure customers are being satisfied.
o Sometimes an important part of supervisors‘ work is to call customers and ask
―How is it going? How are our employees treating you?‖ and learning so we
can do a better job each day.
Ultimately, first line managers make sure the work is getting done by the employees
AREAS OF MANAGEMENT
- They are the department are