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Chapter 1 Innovative Management for a Changing World.

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1 Chapter 1 Innovative Management for a Changing World

2 What do Beaunit Mills, Hercules Powder, and Liebmann Breweries have in common? On 1st Fortune List (1955) On 1st Fortune List (1955) They Don’t Exist Today “BAD Management” Not “Keeping up the Good Work” Not “Keeping up the Good Work” Not adapting to Environmental Changes Not adapting to Environmental Changes

3 ManagementManagement The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Organization A formally structured collection of individuals working toward common (shared) goals.

4 Organizational Performance Effectiveness : the degree to which the organization achieves a stated goal Efficiency : the use of minimal resources (input) to produce a desired volume of output. Efficient, but not Effective: - Goals not achieved - Goals not achieved Effective, but not Efficient - Wasted Resources - Wasted Resources (You may have to choose between the two.)

5 The Four Functions of Management Planning Select goals & ways to attain them Organizing Assign responsibility for tasks Leading Use influence to motivate Controlling Monitor activities & make corrections


7 MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS Plan. Organ. Lead. Control. Plan. Organ. Lead. Control. Top 28% 36% 22% 14% Middle 18% 33% 36% 13% Lower 15% 24% 51% 10%

8 Management Skills Conceptual Skills : cognitive ability to see the organization as a whole and the relationship among its parts Human Skills : ability to work with and through other people and to work effectively as a group member Technical Skills : understanding of and proficiency in the performance of specific tasks.

9 What Is It Like to Be a Manager? Managerial Activities - Long hours - Most time spent in oral communication - Characterized by variety, fragmentation, and brevity - Fast paced and require a high energy level to be successful Managers give up the right to: - Be one of the gang - Put your self-interest first - Ask others to do things you wouldn’t do - Vent your frustrations - Resist change

10 Supervisors’ Responsibilities Plan and schedule work Clarify tasks and gather ideas for improvement Appraise and counsel employees Recommend job assignments and pay Inform employees of organizational goals Inform higher managers of work unit needs and accomplishments Recruit, train, and develop workers Encourage and maintain high and enthusiasm

11 Informational Roles to develop and maintain information network The monitor seeks current information from many sources. The disseminator transmits information to others both inside and outside the organization. The spokesperson provides official statements to people outside the organization about company policies, actions, or plans.

12 Interpersonal Roles pertain to relationships with others The figurehead engages in ceremonial activities The figurehead engages in ceremonial activities The leader motivates, communicates, and influences subordinates. The leader motivates, communicates, and influences subordinates. The liaison develops relationships outside his/her unit both inside and outside the organization. The liaison develops relationships outside his/her unit both inside and outside the organization.

13 Decisional Roles to make choices requiring conceptual & human skills. The entrepreneur initiates change. The resource allocator allocates resources to achieve outcomes. The negotiator bargains for his/her unit. The disturbance handler resolves conflicts.

14 How Do You Learn to Manage ? 50% from job experience 30% from other persons 20% from education & training (Based on study of successful managers at Honeywell)

15 Successful Managers’ Attributes Leadership Team-Building Skills Self-objectivity Analytic Thinking Creative Thinking Behavioral Flexibility Oral Communication Written Communication Personal Impact Resistance to Stress Tolerance of Uncertainty

16 Some Types of Changes Impacting Organizations: ProductsTechnologiesMarkets Speed Requirements Management Techniques

17 Pre-Classical Management Anything before about 1900: e.g., Attila the Hun Attila the Hun Henry Towne Henry Towne

18 Classical Perspective Emphasized a rational, scientific approach to study of management and sought to make workers and organizations like efficient operating machines Classical Categories Scientific Management Frederick Taylor Frank and Lillian Gilbreth Bureaucratic Organizations Max Weber Administrative Principles Henri Fayol

19 Scientific Management Develop a standard method for performing each job Select appropriate workers Train workers in standard method Plan work and eliminate interruptions Provide incentives for increased output.

20 Bureaucratic Organizations Clearly defined authority and responsibility Set procedures for each situation Goals of fairness and efficiency Separation of management and ownership i.e., run by professional mgrs.

21 Bureaucratic Organizations Become “dysfunctional” when: -There is no effort to recognize exceptions to rules or to change rules when necessary -Enforcement of rules takes precedence over pursuit of the organization’s mission Relatively High in Bureaucracy: United Parcel Service U.S. Postal Service Relatively Low in Bureaucracy: Hewlett-Packard Disney Studios

22 Administrative Management - Henri Fayol 14 Principles Unity of command Division of work Unity of direction Scalar chain-of-command Authority=Responsibility(etc.) Five basic management functions Planning Organizing Commanding Coordinating Controlling

23 Humanistic Perspective Emphasizes enlightened treatment of workers and power sharing between managers and employees. Emphasized satisfaction of employees’ social/psychological needs as the key to increased worker productivity. Supported by Hawthorne Studies

24 The Hawthorne Studies “Social Man” Methodological Problems, but Profound Influence on Management Thought “Hawthorne Effect” Interviewing Techniques

25 The Human Resources Perspective Jobs should be designed to allow workers to use their full potential Abraham Maslow’s Hierarchy of Needs (Ch. 12) Douglas McGregor’s Theory X vs. Theory Y (comparison of Classical Mgmt to Human Resources)

26 Theory X (Classical): People dislike work and prefer to be directed Must be coerced to work Want to avoid responsibility and have little ambition Want security above everything Theory Y (Human Resources): People will accept responsibility Have intellect that could be applied to organizational goals Only partially use their intellectual potential.

27 Behavioral Sciences Approach = Applied Social Sciences Study of human behavior in organizations Draws on Disciplines of: EconomicsPsychologySociologyCommunicationAnthropology

28 Management Science Perspective Involves Mathematics, Computers Examples:Forecasting Inventory control Scheduling Break-even analysis

29 Contemporary Approaches ä Systems Theory ä How the parts fit together (“Synergy” is a key concept) ä How the org. interacts with its environment ä Understanding systems requires Conceptual Skills ä Contingency View ä Integrates many of the other viewpoints ä “No one best way to manage - the best way depends on the situation”

30 Total Quality Management Emphasizes Continuous Improvement in all Organizational Processes (i.e., in more than Manufacturing)

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