ch1 mgmt349

Stage-setting: Why the principles of management matter

• Principles of management are highly applicable across all areas of life (personal, professional, extracurricular).

• Many students take the course as a prerequisite, but the skills are broadly useful for achieving goals through systems and soft skills.

• Emphasis on balancing systems (structure) with soft skills (people-centric capabilities) to stay current, profitable, and effective.

• Reflection prompt: when you were a kid (or now), who influenced your dream (who, what, when, where)? Mentors, family, heroes, brands, media, athletes. Consider how these influences shape identity and brand associations today.

• Brand and personality choices matter for organizations: the kind of culture and market positioning a company adopts influences how customers (and potential employees) perceive and engage with it.

• Businesses think strategically about target markets, customer needs, and how to gain or retain market share through value propositions and branding.

Feld Entertainment: a case study in branding, systems, and growth

• Feld Entertainment is a family-owned business behind multiple live entertainment brands: Disney on Ice, Ringling Bros. and Barnum & Bailey, Monster Jam, etc.

• Core idea: they light up arenas, create memories, and tailor experiences to diverse audiences across multiple shows.

• They replicate a core system across different shows: same underlying processes (planning, production, audience engagement), just in different content domains.

• Customer understanding: different shows attract different segments, e.g., Trolls, Monster Jam; fans may have overlapping or distinct interests.

• COVID-19 impact and strategic pivot: expanded into related services (supply chain management, hauling) to move product and stay afloat when live shows were restricted.

• Lessons for personal growth: organizations need creative people, continuous improvement, and the ability to adapt to new needs and markets.

The four functions of management (the core framework)

• Planning: determining courses of action and objectives. ext{Planning}
  ightarrow ext{What to do? What to accomplish?}

• Organizing: coordinating activities and resources; deciding where decisions are made and who does what. ext{Organizing}
  ightarrow ext{Allocation of tasks and resources}

• Leading: directing, motivating, and influencing people to achieve goals. ext{Leading}
  ightarrow ext{Motivation and guidance}

• Controlling: monitoring progress and evaluating outcomes; making adjustments to stay on track. ext{Controlling}
  ightarrow ext{Feedback and corrective action}

• These four functions form the core of how organizations plan, implement, and adapt to achieve objectives.

• In the field examples, success comes from applying all four functions in a balanced way rather than over-emphasizing one.

Efficiency vs. effectiveness: two essential performance concepts

• Efficiency: getting work done with minimal wasted effort, time, or cost. Definition often framed as a ratio of outputs to inputs.

  • \text{Efficiency} = \dfrac{\text{Outputs}}{\text{Inputs}}

• Effectiveness: accomplishing tasks that advance organizational objectives and produce the desired outcomes.

• Important trade-off: highly effective work can be costly (high inputs for a big impact); extremely efficient work might skip important steps and reduce impact.

• Visual note: a balance is often ideal; doing things cheaper (high efficiency) without achieving the goal is not helpful.

Four kinds of managers and example roles at KTM

• CEO (top-level, strategic): Stefan Pierer

  • Sets the organization’s vision, long-range goals, and overall commitments.

  • Not involved in nitty-gritty technical tasks (e.g., spark plugs) but focuses on high-level strategy and direction.

• Middle managers: Pitt Beirer (Head of Motorsports), Joel Smets (Factory Racing Sports Director)

  • Decide how to deploy resources, coordinate sub-units, implement top-down plans, and bridge strategy with operations.

• First-line managers: Roger DeCoster (Red Bull KTM Team Manager), Ian Harrison (Technical Director)

  • Oversee day-to-day operations, monitor performance, and manage front-line teams; direct support staff (trainers, mechanics, etc.).

• Other key personnel involved in the racing ecosystem:

  • Aldon Baker (trainer for Husqvarna): focuses on athlete conditioning, diet, and peak performance

  • Carlos Rivera (mechanic)

  • Doc G (chiropractor): supports athletes’ physical health pre-race and during events

• The idea: a successful team relies on a network of roles across levels, all contributing to planning, organizing, leading, and controlling.

• The move from Suzuki to KTM by Roger DeCoster demonstrates how organizational choices (employment security, better investment in people) shape talent retention and competitive results.

Informational and leadership roles of managers

• Informational roles:

  • Figurehead: symbolic representation of the organization (ceremonial tasks, public presence)

  • Leader: motivate and guide people toward goals

  • Liaison: interact with people outside the unit; relay information across boundaries

  • Monitor/Disseminator: scan the environment, gather information, and share it with subordinates

  • Spokesperson: communicate with external stakeholders

• Decision-making roles:

  • Entrepreneurial: identify opportunities and innovate; adapt strategies to changing conditions

  • Disturbance handler: respond to crises and urgent problems; allocate resources under pressure

  • Resource allocator: decide where to invest time, money, and people; schedule and prioritize

  • Negotiator: negotiate schedules, projects, resources, and outcomes

Managerial skills and what different levels demand

• Technical skills: specialized knowledge and methods; essential for lower-level management (
  e.g., understanding procedures, equipment, and operations)

• Human skills: the ability to work with others; critical at all levels; fosters teamwork and collaboration

• Conceptual skills: the ability to see the organization as a whole; understand how parts fit into the environment

• Motivation and attitude: the ability to assess and cultivate enthusiasm and commitment in others; essential for leadership roles

• Notes on soft skills: many employers value conceptual and human skills alongside technical expertise; motivation is key to managing and inspiring others

Practical implications: lessons from real-world cases

• Competitive advantage through people:

  • Successful firms attract and retain top talent; management practices influence brand performance and market share.

  • Example: DeCoster’s move to KTM and the subsequent impact on KTM’s performance demonstrate how talent, security, and culture shape organizational success.

• Hiring and retention at KTM:

  • Industries’ emphasis on racing backgrounds, cutting-edge designers, and robust training development.

  • The firm invests in talent, practices safety-first progression (don’t push a novice to win prematurely), and plans for the future with long-term development.

• Brand strategy and audience targeting:

  • Feld Entertainment aligns brands to target families with kids; they optimize for cross-show synergy and consumer touchpoints (merchandise, guest stores, branding across experiences).

  • Kids influence parental buying choices; brand sponsorships with athletes affect both children and adult consumers.

• Marketing and sponsorship dynamics:

  • Monster Energy Supercross illustrates strong branding: multiple sponsors, rider-team-brand alignment, and the ability to create a cohesive consumer experience across events.

  • Endorsements (e.g., Wheaties featuring Ryan Dungey) reinforce personal and brand credibility; the front-of-box image shows the integration of athlete identity with sponsor brands (e.g., KTM).

• Product and price implications:

  • Related toys and merchandise (e.g., toy motorcycles) command higher prices due to branding and fan loyalty: typical ranges include \$30-\$40 for smaller items and \$60+ for premium items.

• Brand-driven consumer behavior:

  • Fans may identify with teams, riders, and brands; their loyalty can influence broader market decisions (e.g., color associations with motorcycles: orange for KTM, green for certain brands).

• The role of culture and structure in success:

  • A positive organizational culture paired with effective planning, organizing, leading, and controlling supports sustained performance and growth.

• Real-world lesson: avoid complacency; evolving customer needs and technology require ongoing application of the four management functions.

Ramifications for practice and study

• The four functions of management provide a framework to analyze any organization, from sports teams to entertainment brands to multinational tech firms.

• Distinguishing efficiency and effectiveness helps managers allocate resources wisely and avoid trade-offs that hurt long-term goals.

• The importance of people: competitive advantages often hinge on talent management, development, and organizational culture.

• Real-world examples illustrate how good managers turn opportunities into sustained performance through systems, people, and strategic actions.

Slido prompts (engagement reflection)

• The primary functions of management are planning, organizing, leading, and controlling. Which function do you like performing best and why? What do you struggle with most and why? Where do you get hung up when trying to accomplish goals? Share your thoughts and be prepared to discuss.

• Contact: se-shike@wiu.edu for questions.

Connections to foundational principles and real-world relevance

• This content ties practice (case studies from Feld/KTM/Dungey) to core theories in MGMT1 Chapter 1: planning, organizing, leading, controlling; the efficiency vs. effectiveness dichotomy; and the role of people in sustaining competitive advantage.

• Real-world relevance: branding, sponsorships, and talent management are essential to profitability and long-term viability in any industry.