Chapter 1 Managing the New Workplace

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

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 goals.

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.)

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

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%

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.

Management Skills Conceptual Skills CEO VPVPVP Mgr MgrMgr MgrMgr OpOpOpOpOp Which level needs conceptual skills the most?

Management Skills Human Skills CEO VPVPVP Mgr MgrMgr MgrMgr OpOpOpOpOp To what degree do various levels of management need human skills? ALL need high degree.

Management Skills Technical Skills CEO VPVPVP Mgr MgrMgr MgrMgr OpOpOpOpOp Least More Most To what degree do the various levels need technical skills?

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

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

Informational roles = maintain & develop information network The monitor = seeking current information from many sources. The disseminator = transmits information to others both inside and outside the organization. The spokesperson = to provide official statements to people outside the organization about company policies, actions, or plans.

Interpersonal roles pertain to relationships with others The figurehead = ceremonial activities The figurehead = ceremonial activities The leader = motivation, communication, and influence of subordinates. The leader = motivation, communication, and influence of subordinates. The liaison = development of information sources both inside and outside the organization. The liaison = development of information sources both inside and outside the organization.

Decisional roles = make choices requiring conceptual & human skills. The entrepreneurial = initiate change. The resource allocator = allocate resources to achieve outcomes. The negotiator = negotiating and bargaining for unit of responsibility. The disturbance handler = resolving conflicts.

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)

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

Centered around information and ideas Work is free-flowing and flexible Organized around networks (and teams),work is often virtual Characteristics of the New Workplace

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

StayCalm Stay Calm Tell the truth Put people before business Be visible Know when to get back to business Crisis Management Skills

The Learning Organization CONTINUOUSLY IMPROVES based on the lessons of experience. Workers must possess and use knowledge. Knowledge needed is increasing. Knowledge needs to be preserved and communicated.

The Learning Organization CONTINOUS IMPROVEMENT through: Teams Open-book management of information Empowered workers Training (for current job and new career paths)

Knowledge Mgmt is Especially Important in 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.

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

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

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.

Scientific Management Still Useful: At a KFC Franchise lowered profits determined to be due to drop-off in drive- through business Found to be slower than other drive-throughs Reduced movements and distance covered by employees filling drive-through orders

Bureaucratic Organizations Clearly defined authority and responsibility Formal record keeping Set procedures for each situation Goals of fairness and efficiency Separation of management and ownership.

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

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

Humanistic Perspective Emphasizes enlightened treatment of workers and power sharing between managers and employees. Supported by Hawthorne Studies Includes: Human Relations Approach Human Resources Appr. Behavior Science Appr.

The Hawthorne Studies “Social Man” Methodological Problems, but Profound Influence on Management Thought “Hawthorne Effect” Interviewing Techniques Informal Groups/Organization

Human Relations Movement Emphasized satisfaction of employees’ social/psychological needs as the key to increased worker productivity.

The Human Resources Perspective Jobs should be designed to allow workers to use their full potential Abraham Maslow’s Hierarchy of Needs (Ch. 13) Douglas McGregor’s Theory X vs. Theory Y (comparison of Classical Mgmt to Human Resources)

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.

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

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

Total Quality Management - Employee Involvement - Focus on Customer - Benchmarking - Continuous Improvement

What The 21st Century Executive Should Be Like Leader/Motivator Consummate Politician Master of Technology Global Strategist