Chapter 1 The Changing Paradigm of Management & Foundations of Learning Organizations © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Learning Objectives Explain the differences between efficiency and effectiveness and their importance for organizational performance. Define ten roles that managers perform in organizations. Discuss the management competencies needed to deal with today’s turbulent environment, including issues such as diversity, globalization, and rapid changes and the skills needed for crisis management. Describe the learning organization and the changes in structure, empowerment, and information sharing managers make to support it. Understand how historical forces influence the practice of management © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Learning Objectives (contd.) Learning Objectives (contd.) Identify and explain major developments in the history of management thought. Describe the major components of the classical and humanistic management perspectives. Discuss the scientific management perspective and its current uses in organizations. What role does contingency play in organizations? Explain the major components of total quality management. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Definition of Management Definition of Management The attainment of organizational goals in an effective and efficient manner through: Planning, Organizing, Leading, and Controlling of organizational resources. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex 1.1 The Process of Management Planning Leading Resources Controlling Organizing Performance Human Financial Raw Materials Technological Information Attain goals Products Services Efficiency Effectiveness Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Organization An organization is a social entity that is goal directed and deliberately structured. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Effectiveness and Efficiency Effectiveness and Efficiency Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational efficiency refers to the amount of resources used to achieve an organization’s goal. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex. 1.2 Relationship of Conceptual, Human, and Technical Skills to Management Level Technical Skills Human Skills Conceptual Skills Management Level Top Managers Middle Managers First-Line Managers Non-managers (Personnel) © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Informational Interpersonal Decisional Monitor Disseminator Ex. 1.3 Ten Manager Roles Informational Interpersonal Decisional Monitor Disseminator Spokesperson Figurehead Leader Liaison Entrepreneur Disturbance handler Resource allocator Negotiator © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Characteristics of the New Workplace Characteristics of the New Workplace Centered around information and ideas Work is free-flowing and flexible Organized around networks,work is often virtual © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Management Competencies of Today Management Competencies of Today Embrace ambiguity Create organizations that are: Fast Flexible Adaptable Relationship-oriented Focus on: Leadership Staying connected to employees and customers Team building Developing a learning organization © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Crisis Management Skills Crisis Management Stay Calm Be visible Crisis Management Skills Put people before business Know when to get back to business Tell the truth © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex. 1.5 Elements of a Learning Organization Ex. 1.5 Elements of a Learning Organization Team-Based Structure Learning Organization Empowered Employees Open Information © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex. 1.6 Three Types of E-Commerce Ex. 1.6 Three Types of E-Commerce E-commerce represents business exchanges or transactions that occur electronically. It replaces or enhances the exchange of money and products with the exchange of data and information from one computer to another. Exhibit 1.6 © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Management & Organization Management & Organization Social Forces … values, needs, and standards of behavior. Political Forces … influence of political and legal institutions on people & organizations. Economic Forces … forces that affect the availability, production, & distribution of a society’s resources. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex. 1.7 Management Perspectives Over Time (adapted) Ex. 1.7 Management Perspectives Over Time (adapted) The Technology-Driven Workplace The Learning Organization Total Quality Management Contingency Views Systems Theory Management Science Perspective Humanistic Perspective Classical Perspective 1890 1940 1960 1980 2000 2010 © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Classical Perspective Emphasized a rational, scientific approach to the study of management. Sought to make organizations efficient. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Classical Perspective Three Subfields Classical Perspective Three Subfields Scientific management Administrative principles Bureaucratic organizations © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Humanistic Perspective Humanistic Perspective Emphasized understanding human behavior. Dealt with needs & attitudes in the workplace. Truly effective control comes from within the individual worker rather than authoritarian control. Hawthorne Studies brought this perspective to forefront. © 2006 by South-Western, a division of Thomson Learning. All rights reserved

Dislike responsibility People are self-centered Ex. 1.9 Theory X & Y (adapted) Theory X Theory Y People are lazy People lack ambition Dislike responsibility People are self-centered People don’t like change People are energetic People want to make contributions People do have ambition People will seek responsibility © 2006 by South-Western, a division of Thomson Learning. All rights reserved

The Contingency Approach The Contingency Approach … means that one thing depends on other things, and for organizations to be effective, there must be a “goodness of fit” between their structure and the conditions in their external environment. © 2006 by South-Western, a division of Thomson Learning. All rights reserved