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					                       COB 300A
             Integrated Functional Systems
                      Management




Chapter 1 - The Manager’s Job


                                   © 2004 C. Hamilton & R. Eliason
                                     1.1




           After reading this chapter,
             you should be able to:
1. Explain the term manager and identify
   different types of managers.
2. Describe the process of management,
   including the functions of management.
3. Describe the various managerial roles. Omit
   all except Exhibit 1-4.
4. Identify the basic managerial skills and
   understand how they can be developed.
5. Describe how managers have to synthesize five
   mind-sets to accomplish their work.
6. Identify the major developments in
   management thought, along with several best
   management practices.
                                                                            1
Managerial Levels
                                         Titles
                                   Chairman of the Board, CEO,
            Top-Level              president, executive vice
                                   president, vice president, group
            Managers
                                   team leader, dean

          Middle-Level             Director, branch manager, department
                                   chairperson, chief of surgery
           Managers
            First-Level            Supervisor, office manager,
            Managers               crew chief, team leader

      Individual Contributors       Tool-and-die maker, cook, word
                                    processing technician, assembler
    (Operatives and Specialists)


                                                        Adapted from
                                                       DuBrin Exhibit 1.1
             Managerial Levels
                                                                            1.2
       City of Industry PO Distribution Center

                                                     Titles
                                                 Congress
                    Top-Level                    Marvin Runyon - Postmaster General
                    Managers
Thomas Dugan -                                   Thomas Wilson - Postal Facility Manager
PIS             Middle-Level                     Edward Brassell - Acting Facility Manager
           (Santa Ana Postal District)

                   First-Level                   James Whooper III -
                   Managers                      Supervisor

            Individual Contributors              Bruce Clark -
          (Operatives and Specialists)           Distribution Clerk
                                                           Adapted from Exhibit 1.1
                                                           1.2




                  CanGo                                                                   1
an online retailer of books, videos, CDs and online
                       gaming



                                                        Titles
                 Top-Level                            Elizabeth - CEO and Founder
                 Managers
                                                      Andrew - Dir of Marketing
              Middle-Level                            Ethel - Dir of Accounting
               Managers                               Warren - Dir of Operations
                                                      Maria - Dir of Human Resources
                                                      Clark - Dir of Finance
                 First-Level
                 Managers
                                                      Gail - Senior Staff Member
     Individual Contributors                          Nick - Senior Staff Member
   (Operatives and Specialists)                       Whitney - Senior Staff Member
                                                      Debbie - Adapted from Exhibit 1.1
                                                                Senior Staff Member
        The Timberland Company

•   Founded in 1955 as the Abington
    Shoe Company
•   Started in Stratham, New
    Hampshire
•   Design, engineer, market,
    distribute and sell premium-quality
    footwear, apparel and accessories
    for men, women and children.
•   77 Retail Stores, 5400 employees,
    $1.5 Billion in Revenues
Feller’s Diamond
                                              1

                    Management




      Temporary   Technical         Retired
       Seasonal                     Expert
                    Core
                      Technical
                       Support

                   Administrative
                     Support
                                                                                                                       1.3


              The Process of Management
                                                                                                                             2
                                                                                                  ng
                                                                                            S taffi
                                                                            g&               ing
                                                                 ng     zin        g     oll
                                                              ni
                                                           lan Org  ani       a din ontr
                                                         P                 Le      C
                         Human
                        Resources
                        Financial
                        Resources
Manager                                                                                                  Goals
                         Physical
                        Resources
                      Information
                       Resources
                                                        Managerial Functions
    Source: Ricky W. Griffin, Management, 4e, Copyright © 1993 by Houghton Mifflin Co., p. 6.        Adapted from DuBrin
                                                                                                      Exhibit 1.2
                                     Time Spent on Supervising Individuals
                                      at the Three Levels of Management *
                                                                                                                      1.4




                                                                            63
                                70                                                                        Managing
                                                                                                 56       Individual
                                                                           40
                                                                                                         Performance
                             Percentage



                                                                                                 36              45


                                                                                                                 27
                                                                                                  Instructing
                                                                                                 Subordinates
                                  0
                                                                First-Line                     Middle       Executive
                                                                Supervisor                     Manager
                   * Numbers refer to % of managers who said task was of “the utmost” or “considerable” importance.



Source: Allen I. Kraut et al., “The Role of the Manager: What’s Really Important in Different                                Adapted from DuBrin
Management Jobs,” The Academy of Management Executive (November 1989): p. 287.                                                   Exhibit 1.3
                                                           Time Spent on Monitoring                                           1.5



                                                           the Business Environment *

                                70
                                                                                          Monitoring the
                                                                                            Business           34
                             Percentage



                                                                                          Environment
                                                                                                    20
                                                                              13



                                  0
                                                                First-Line                       Middle    Executive
                                                                Supervisor                       Manager

                   * Numbers refer to % of managers who said task was of “the utmost” or “considerable” importance.


Source: Allen I. Kraut et al., “The Role of the Manager: What’s Really Important in Different                        Adapted from DuBrin
Management Jobs,” The Academy of Management Executive (November 1989): p. 288.                                          Exhibit 1.4
   J.C. Penney Company, Inc.
    began in 1902 when James
    Cash Penney opened the
    Golden Rule Store in
    Kemmerer, Wyoming. The
    chain incorporated in 1913.


 Between 1920 and 1930,
    Penney’s opened 1,250
    stores on the main streets
    of small town America.
 After WWII, JC Penney
  responded to the rapid
  growth of suburbs by
  remodeling stores and
  offering a wider selection
  of merchandise at
  suburban shopping
  centers—becoming a mall
  anchor by the 70s.



                               Today, JC Penney has 1,075
                                department stores in 50
                                states, Puerto Rico and
                                Mexico. It also operates 50
                                Renner stores in Brazil.
Target Market
Starting Outs
Less than 35 years of age; Singles, young
families; 0 to 1 children
Shopping patterns & relationships emerging;
No strong retail loyalties
28% of U.S. households
Segment potential
Currently 16% of sales - Potentially 30% of sales
                         Modern Spenders
                         • 35-54 years of age; Dual-earner households; 0 to 2
                         children (teenagers)
Median Income: $48,000   • Consumption oriented; Retail loyalties more
                         likely; Established shopping patterns; Time-starved
                         • 27% of U.S. households
                         Segment potential
                         Currently 43% of sales - Potentially 50% of sales
         J.C. Penney-SWOT Analysis
           Strengths                     Weaknesses                   Opportunities
   New CEO experienced        ✺ A dinosaur – 100 years old!   ✾ Potential growth of 12%
    in turnaround situations                                   to 15% a year
                               ✺ Strong J.C. Penney Brand
   100 years old
                               ✺ First operating loss in 100             Threats
   National presence
                               years in 2000                   ✬ Discount chains: Target,
   Strong catalog and
    online business            ✺ Unhappy employees             Wal-Mart, Kohl’s, Old Navy
    components                 ✺ Declining market value        ✬ Quickly changing fashions
                               from $20b to $3b
                               ✺ Cost structure too high
                               ✺ Merchandising
                               decentralized
                               ✺ HQ in Plano, Tx
                               ✺ Diluted brand
                              COB 300A
                    Integrated Functional Systems
                             Management




Chapter 1 - The Manager’s Job - continued
                                  USPS Financial Highlights
    (dollars in millions)         1999        2000        2001        2002        2003        2004

   Operating Revenue            $62,726     $64,540     $65,834     $66,463     $68,529     $68,996
   Operating Expenses            60,642      62,992      65,640      65,234      63,902      65,851
    Operating Income             2,084       1,548        194        1,229       4,627       3,145
    Operating Margin              3.3%        2.4%        0.3%        1.8%        6.8%        4.6%
    Net (Loss) Income             $363       $(199)     $(1,680)     $(676)      $3,868      $3,065


  Capital Cash Outlays           $3,917      $3,337      $2,961      $1,705      $1,314      $1,685

        Total Debt               6,917       9,316       11,315      11,115      7,274       1,800
    Interest Expense on
         Borrowing                158         220         306         340         334          10

Capital Contributions of U.S.
           Govt.                 $3,034      $3,034      $3,034      $3,034      $3,034      $3,034
 Net Accumulated Losses at
        End of Year              (3,481)     (3,680)     5,360       (6,036)    $(2,168)      $897
Total Net Capital (Deficiency)    $(447)      $(646)     $(2,326)    $(3,002)      $866       $3,931

Number of Career Employees
                                797,795     787,538     775,903     752,949     729,035     707,485

  Mail Volume (million)         201,644     207,882     207,463     202,822     202,185     206,106

 New Addresses Served           1,459,261   1,893,377   1,736,256   1,770,172   1,908,797   1,782,900
Schools of Management Thought                             1.8




                     Classical School
      Searches for solid principles to manage people
          and work productivity. Uses planning,
      organizing, leading, and controlling framework.

    Human Resources               Management-Science
         School                          School
     Focuses on the                 Concentrates on
  psychological makeup            providing a scientific
  of people and issues,             basis for solving
   such as leadership,            problems and making
     motivation, and                    decisions.
        conflict.
             Traditional versus Modern Managerial Roles

          Old Manager                                                                            New Manager                  1.7


   Thinks of self as manager                                                      ❇ Thinks of self as sponsor, team leader, or
    or boss                                                                                     internal consultant
   Follows chain of command                                                        ❇ Deals with anyone necessary to get job
   Works within a set                                                                                  done
    organizational structure                                                         ❇ Changes organizational structure in
   Makes most decisions alone                                                              response to market change
   Hoards information                                                             ❇ Invites others to join in decision making
   Tries to master one major                                                                 ❇ Shares information
    discipline                                                                     ❇ Tries to master broad array of disciplines
   Demands long hours                                                                         ❇ Demands results


           Source: Adapted from Brian Dumaine, “The New Non-Managers,” Fortune, February 22, 1991, p. 81; Joe
           McGavin, “You’re a Good Manager If You. . .,” Manager’s Edge, September 1998, p. 7.
                                                                                                                Adapted from DuBrin
                                                                                                                     Exhibit 1.6

				
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