Robert "Bob" Eaton is now in charge at Chrysler, trying to fill some of the biggest shoes in the automobile industry, those of Lee Iacocca. When Iacocca assumed the presidency of Chrysler in 1979, the company gad just suffered its worst one-quarter loss in history. The U.S. auto industry was beset by foreign competition, and the country was entering a lengthy recession Interest rates were at all-time highs, depressing demand for autos and other durable consumer goods. Actual and threatened auto industry layoffs, along with wage and benefit cuts, had produced a difficult labor relations climate. Iacocca had his work cut out for him. But 14 years later in 1992, he could look back on a remarkable career of accomplishment for both Chrysler and himself. Throughout his career, Iacocca had an uncanny knack for sensing market needs and creating products to meet those needs. He had a reputation for getting the must out of his subordinates, for creating enthusiasm, for making difficult decision, and for working harder than anyone around him. Iacocca lived up to and even surpassed, his advanced billing as a miracle worker. He jawboned the union, made television commercials, and at all times maintained the appearance of a vibrant, forceful, in-charge-though kindly-executive. Dissatisfaction with Iacocca's actions was immediate, but chrysler was on its way to recovery. The improvement was not just a flash in the pan. At Chrysler's 1989model preview. Iacocca forecast a 15 percent share of the U.S. auto and light truck market by the 1990s. Chrysler acquired American Morots, with its popular Jeep line, in 1987, and in the same year exceeded Iacocca's 15 percent estimate. Chrysler also made the top ten on the Fortune 500 list, and Chrysler's stock experienced two three-for-two splits and was still trading in the mid twenties, up from $2 at the depth of the 1982 recession. In 1992, Iacocca retired at age 68, with his company financially sound. Several so-called heir-apparents were passed over in favor of 52-years-old Robert "Bob" Eaton. Eaton, a long-time Chrysler man, was quite successful in Chrysler's European operations, but running a division of Chrysler and managing the entire company are quite different. Eaton took over with zeal and an attitude that Chrysler management style must center around committed people and quality products. Chrysler. After all, Chrysler's LH cars were referred to as the "Last Hope" for Chrysler. Eaton's decision to maintain the solid management style of his predecessor, combined with the new LH line of cars, quickly paid off. By 1993, the LH cars-the Chrysler Concorde, the Dodge Intrepid, the Eagle Vision, and the New Yorker wer hugely successful. Eaton's effective management approach resulted in Chrysler's sales rising by 26 percent, twice Ford's 13 percent increase, and over five times GM's five percent growth rate. What accounts for Chrysler's success? Most would agree that effective management plays a major role. This book is about management, which consists of getting things done through the efforts of other people. At Chrysler, management involved negotiations with government and with unions. The management portunities and preparing to take advantage of them. An executive team has to be developed. Through motivation and leadership, the company's man and women were given a boost and were made to pull together toward common or at least compatible, goals. A complex organization had to be administered and improved. Finally, management at Chrysler involved executive succession, as Iacocca prepared Bob Eaton to take over. Most managerial situation are not exciting as the ones that Iacocca and Eaton faced. And not all business adventures end in success. In many of these cases, the cause of failure is ineffective management. The costs of poor management to individuals and to society are great. Not only are financial and physical resources wasted, but individuals often suffer psychological damage from business failures. Therefore, it is vitally important the effective management techniques be instilled int everyone who wishes to enter the world of business. We live in a society of large and small organization. Within these organizations people work together to accomplish goals that are too challenging to be achieved by a single individual. Throughout life, each person has experiences with a variety of organizations-hospital, schools, churches, the military, businesses, colleges, government agencies, and other types of institutions More and more it is being recognized that the most significant factor in determining the performance and success of any organization is the quality of its management. The job of managing is likely to become even more challenging. Foreign competition, coupled with the large number of corporate takeovers and restructurings, has resulted in new "lean and mean" organizations. Many companies like Chrysler, USX Corporation, Bank America, and General Electric have cut out layers of managers and made greater demands on those who remain Similar efficiency measures were necessary at thousands of smaller firms as they tried to survive and prosper. Manager will no longer succeed because they master the bureaucracy; they must instead add real value to their organizations. Why are some managers successful and others not? The reasons are as diverse as individual personalities. In this book, we talk about the concepts and techniques used by good managers, such as Bob Eaton. We present ideas, concepts, and ization. We emphasize human behavior in organization, both large and small. It to large business firms, in many ways, the U.S. economy is driven b smaller firaccounted for over 90 percent of all job growth. Our primary focus is for-profit businesses; however, we include not-for-profit examples, since most of what can be said about one applies to he other. In This first chapter, we discuss management as a concept and describe the four management functions. We then present decision making as a topic that relates to all of them. The manner in which management differs at various levels in the organization and the skills managers need come next. Then, we examine the desirability of entering management and the global perspective of management. Finally, we address the productivity challenge management faces. We live in a society of large and small organizations. Within these organizations people work together to accomplish goals that are too challenging to be achieved by a single individual. Such efforts are often headed by a volunteer manager from the community.
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