Chapter 1 Notes: The World of Innovative Management
Case View of Management
"Every situation is unique."
Universalist View of Management
"There is one best way."
Scalar chain
A chain of authority extends from the top to the bottom of the organization and should include every employee
Note from Slide 19
A role is a set of expectations for a manager's behavior. Managers' activities can be organized into ten roles. The ten roles are divided into three categories: informational, interpersonal, and decisional.
System
A set of interrelated parts that function as a whole to achieve a common purpose. An organization is a _____.
Organization
A social entity that is goal directed and deliberately structured. • Social entity means two or more people. • Goal directed means the organization is designed to achieve some outcome or goal such as make a profit. • Deliberately structured means tasks are divided, and responsibility for their performance is assigned to organization members.
Scientific management
A subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity
Administrative principles approach
A subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling
Focused on the customer
All employees are __________; companies find out what customers want and try to meet their needs and expectations.
Management science
Also called the quantitative perspective, uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems.
Note from Slide 24
An historical perspective on management provides a context or environment in which to interpret current opportunities and problems. Studying management history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills. The first step is to explain the social, political, and economic forces that have influenced organizations and the practice of management.
Bureaucratic organizations approach
Another subfield of the classical perspective is the _____, which emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal recordkeeping, and separation of management and ownership
Subsystems
Are parts of the system that are all interconnected
Social forces
Aspects of a culture that guide and influence relationships among people
Organizing
Assign responsibility for task accomplishment
Decisional roles
Come into play when managers must make choices. These roles often require both conceptual and human skills.
Social media programs
Company online community pages, social media sites, microblogging platforms, and online forums
Operations research
Consists of mathematical model building and other applications of quantitative techniques to managerial problems
Outsourcing
Contracting functions or activities to other organizations to cut costs
Motivate and Communicate
Create teamwork via decisions on pay, promotions, etc., and through communication
Decisional - Resource Allocator Role
Decide who gets resources; schedule, budget, set priorities
ELCDM -To Enabler -To leading teams -To conversation and collaboration -To dispersed and empowering -To mobilizing for change
Describe the five management competencies that are becoming crucial in today's fast-paced and rapidly changing world.
Interpersonal - Leader Role
Direct and motivate subordinates; train, counsel, and communicate with subordinates
Organize
Divide work into manageable activities and select people to accomplish tasks
Behavioral sciences approach
Draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting.
Unity of command
Each subordinate receives orders from one--and only one--superior
Humanistic perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
The leader role
Encompasses the relationship with subordinates, including motivation, communication, and influence.
Set Objectives
Establish goals for the group and decide what must be done to achieve them
Quants
Financial managers who base their decisions on complex quantitative analysis
Total quality management
Focuses on managing the total organization to deliver quality to customers.
Information technology
Focuses on technology and software to aid managers
Operations management
Focuses on the physical production of goods and services
Informational - Disseminator Role
Forward information to other organization members; send memos and reports, make phone calls
TQM
Four significant elements of _____ are employee involvement, focus on the customer, benchmarking, and continuous improvement.
1.7 - Making the Leap from Individual Performer to Manager
From Individual Identity ----------- To Manager Identity
1.10 - Characteristics of Scientific Management
General Approach • Developed standard method for performing each job • Selected workers with appropriate abilities for each job • Trained workers in standard methods • Supported workers by planning their work and eliminating interruptions • Provided wage incentives to workers for increased output Contributions • Demonstrated the importance of compensation for performance • Initiated the careful study of tasks and jobs • Demonstrated the importance of personnel selection and training Criticisms • Did not appreciate the social context of work and higher needs of workers • Did not acknowledge variance among individuals • Tended to regard workers as uninformed and ignored their ideas and suggestions
Middle Managers
High conceptual skills, High human skills, and Low technical skills
Social media programs
Include online community pages, social media sites such as Facebook and LinkedIn, microbiology platforms such as Twitter, and company online forums that enable managers to interact electronically with employees, customers, partners, and other stakeholders.
Informational roles
Include the functions used to maintain and develop an information network.
Political forces
Influence of political and legal institutions on people and organizations
Management Science
Information technology and Quants
Decisional - Entrepreneur Role
Initiate improvement projects; identify new ideas, delegate idea responsibility to others
The negotiator role
Involves representing the team or department's interests during negotiation of budgets, union contracts and purchases.
The disturbance handler role
Involves resolving conflicts among subordinates, between managers, or between departments.
The monitor role
Involves seeking current information from many sources.
The figurehead role
Involves the handling of ceremonial and symbolic functions for the organization.
The entrepreneur role
Involves the initiation of change. Managers seek ways to solve problems or improve operations.
Fredrick Winslow Taylor
Known as the "father of scientific management"
Nonmanagers (Individual Contributors)
Low conceptual skills, Median human skills, and High technical skills
Interpersonal - Liaison Role
Maintain information links inside and outside the organization; use e-mail, phone, meetings
Division of work
Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort
Supply chain management
Managing supplier and purchaser relationships to get goods to consumers
Behavioral sciences approach
Many current management ideas and practices can be traced to the _____ approach.
Systems thinking
Means looking at not just at discrete parts of an organizational situation, but also at the continually changing interactions among the parts.
Employee involvement
Means that achieving better quality requires companywide participation in quality control.
Controlling
Monitor activities and make corrections
Operations research, operations management, and information technology
Name the three subsets of management science
Subsystems
Parts of a system that depend on one another for their functioning
Interpersonal - Figurehead Role
Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents
Economic forces
Pertain to the availability, production, and distribution of resources in a society. Companies in every industry have been affected by the recent financial crisis. Reduced consumer spending and tighter access to credit have curtailed growth and left companies scrambling to meet goals with limited resources. Another economic trend that affects managers worldwide is the growing economic power of countries such as China, India, and Brazil.
The resource allocator role
Pertains to allocating resources in order to attain desired outcomes.
Efficiency
Pertains to the amount of resources—raw materials, money, and people—used to produce a desired volume of output
Organizational effectiveness
Providing a product or service that customers value
Develop People
Recognize the value of employees and develop the critical organizational asset
Interpersonal roles
Refer to relationships with others and are related to human skills.
Political forces
Refer to the influence of political and legal institutions on people and organizations. One significant political force is the increased role of government in business. Political forces include basic assumptions underlying the political system such as the desirability of self-government, property rights, contract rights, and justice. People are demanding empowerment, participation, and responsibility in all areas of their lives. On a global scale, growing anti-American sentiments in many parts of the world create challenges for United States companies and managers.
Social forces
Refer to those aspects of a culture that guide and influence relationships among people. What do people value? What do people need? What are the standards of behavior among people? These forces shape the social contract, the unwritten, common rules and perceptions about relationships among people and between employees and management. A significant social force today is the changing attitudes, ideas, and values of Generation Y employees—young, educated, technologically adept, and globally conscious. There is a growing focus on work/life balance, reflected in telecommuting and other alternative work arrangements.
Benchmarking
Refers to a process whereby companies find out how others do something better than they do and then try to imitate or improve on it.
Supply chain management
Refers to managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.
Organizational efficiency
Refers to the amount of resources used to achieve an organizational goal
Organizational efficiency
Refers to the amount of resources used to achieve an organizational goal. It is based on the how much raw material, money, and people are necessary for producing a given volume of output. All managers have to pay attention to costs, but severe cost cutting to improve efficiency can sometimes hurt organizational effectiveness.
Effectiveness
Refers to the degree to which the organization achieves a stated goal
Operations management
Refers to the field of management that specializes in the physical production of goods or services.
Time management
Refers to using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life.
Information technology (IT)
Reflected in the management information systems designed to provide relevant information to managers in a timely and cost-efficient manner
Decisional - Negotiator Role
Represent team or department's interests; represent department during negotiation of budgets, union contracts, purchases
Informational - Monitor Role
Seek and receive information; scan Web, periodicals, reports; maintain personal contacts
Planning
Select goals and ways to attain them
System
Set of interrelated parts that function as a whole to achieve a common purpose
Measure
Set targets and standards; appraise performance
Unity of direction
Similar activities in an organization should be grouped together under one manager
Organization
Social entity that is goal- directed and deliberately structured
Human relations movement
Stresses the satisfaction of employees' basic needs as the key to increased productivity.
Human resources perspective
Suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential
Decisional - Disturbance Handler Role
Take corrective action during conflicts or crises; resolve disputes among subordinates
Customer relationship management
Technology used to build relationships with customers
1.11 - Characteristics of Weberian Bureaucracy
The Ideal Bureaucracy • Division of labor, with clear definitions of authority and responsibility • Positions organized in a hierarchy of authority • Managers subject to rules and procedures that will ensure reliable, predictable behavior • Management separate from the ownership of the organization • Administrative acts and decisions recorded in writing • Personnel selected and promoted based on technical qualifications
Contingency view
The _____ tells managers that what works in one organizational situation might not work in others. Managers can identify important contingencies that help guide their decisions regarding the organization.
Performance
The attainment of organizational goals by using resources in an efficient and effective manner
Management
The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
Economic forces
The availability, production, and distribution of resources
Conceptual skill
The cognitive ability to see the organization as a whole and the relationships among its parts. It involves knowing where one's team fits into the total organization and how the organization fits into its environment. It means the ability to think strategically—to take the broad, long-term view—and to identify, evaluate, and solve complex problems. • It is especially important for top managers. Many of the responsibilities of top managers, such as decision making, resource allocation, and innovation, require a broad view.
Synergy
The concept of _____ says that the whole is greater than the sum of its parts. The organization must be managed as a whole.
Organizational effectiveness
The degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do.
The liaison role
The development of information sources both inside and outside the organizations.
Continuous improvement
The implementation of small, incremental improvements in all areas of the organization on an ongoing basis.
Organizing
The management function concerned with assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. Organizing follows planning and reflects how the organization tries to accomplish the plan.
Planning
The management function concerned with identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. It defines where the organization wants to be in the future and how to get there.
Leading
The management function that involves the use of influence to motivate employees to achieve the organization's goals. It involves motivating entire departments and divisions as well as those individuals working immediately with the manager. Controlling [The management function concerned with monitoring employees' activities, keeping the organization on track toward its goals, and making corrections as needed. Trends toward employment and trust of employees have led many companies to place less emphasis on top-down control and more emphasis on training employees to monitor and correct themselves. However, the ultimate responsibility for control still rests with managers.
Human skill
The manager's ability to work with and through other people and to work effectively as a group member. It is demonstrated in the way a manager motivates, facilitates, coordinates, leads, communicates, and resolves conflicts. • It is important for managers at all levels, and particularly those who work with employees directly on a daily basis.
The disseminator role
The opposite of the monitor role. In this role, the manager transmits information to others, both inside and outside the organization.
Classical perspective
The study of modern management began in the late nineteenth century with the _____, which took a rational, scientific approach to management and sought to turn organizations into efficient operating machines
Technical skill
The understanding of and proficiency in the performance of specific tasks. This includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. Technical skill also includes specialized knowledge, analytical ability, and competent use of tools and techniques to solve problems in that specific discipline. • These are most important at lower levels and become less important than human and conceptual skills as managers are promoted.
Synergy
The whole is greater than the sum of its parts
The spokesperson role
To transmit information to outsiders through speeches, reports.
Informational - Spokesperson Role
Transmit information to outsiders through speeches, reports
Leading
Use influence to motivate employees
Mary Parker Follett and Chester Barnard
_____ and _____ were early advocates of a more humanistic approach to management
Follett; Barnard
_____ emphasized worker participation and empowerment, shared goals, and facilitating rather than controlling employees. _____ contributions include the acceptance theory of authority
Max Weber
_____ introduced most of the concepts about bureaucratic organizations
Scientific management
_____ is considered one of the most significant innovations influencing modern management.
W. Edwards Deming
_____ is known as the "father of the quality movement."
Customer relationship management (CRM)
_____ systems use information technology to keep in close touch with customers, collect and manage large amounts of customer data, and provide superior customer value.
Hawthorne studies
_____ were important in shaping ideas concerning how managers should treat workers
Henry Fayol
_____, a major contributor to the administrative principles approach, outlined 14 general principles of management, several of which are a part of management philosophy today.
1.6 - Top Causes of Manager Failure
• (1) Ineffective communication skills and practices • (2) Poor work relationships/interpersonal skills • (3) Person-mismatch • (4) Failure to clarify direction or performance expectations • (5) Failure to adapt and break old habits • (6) Breakdown of delegation and empowerment • (7) Lack of personal integrity and trustworthiness • (8) Inability to develop cooperation and teamwork • (9) Inability to lead/motivate others • (10) Poor planning practices/reactionary behavior
1.3 - The Process of Management
• (1) Resources • (2) Management Functions: Planning, Organizing, Leading, and Controlling • (3) Performance
1.2 - What Do Managers Do?
• (1) Set Objectives • (2) Organize • (3) Motivate and Communicate • (4) Measure • (5) Develop People
Manager Activities
• Adventures in multitasking o Activity characterized by variety, fragmentation, and brevity o Less than nine minutes on most activities o Managers shift gears quickly • Life on speed dial o Work at unrelenting pace o Interrupted by disturbances o Always working (catching up)
Management Science
• Also referred to as quantitative perspective • Use of mathematics and statistics to aid management decision making o Enhanced by development and perfection of the computer • Operations management focuses on the physical production of goods and services
Performance
• Attain goals • Products • Services • Efficiency • Effectiveness
Note from Slide 16
• Becoming a manager involves a profound transformation in the way people think of themselves, called personal identity, that includes letting go of deeply held attitudes and learning new ways of thinking. Specific aspects of this transformation include changing one's identity: • 1. from a specialist who performs specific tasks to a generalist who coordinates diverse tasks; • 2. from things done through one's own efforts to getting things done through other people; • 3. from an individual actor to a team and network builder motivator and organizer; and • 4. from working relatively independently to working in a highly interdependent manner. • Most new managers are unprepared for the variety of activities managers routinely perform. • EX: Facebook - Mark Zuckerberg, FB went public a week before he turned 28, the old Facebook to now: huge change, fumbled with day to day operations - hired good professionals
1.5 Remember This
• Becoming a new manager requires a shift in thinking from being an individual performer to playing an interdependent role of coordinating and developing others • Because of the interdependent nature of management, new managers often have less freedom and control than they expect to have • The job of a manager is highly diverse and fast-paced, so managers need good time-management skills • A role is a set of expectations for one's behavior • Managers at every level perform 10 roles, which are grouped into informational roles, interpersonal roles, and decisional roles
Note from Slide 14
• During turbulent times, managers must use all their skills and competencies to benefit the organization and its stakeholders. • EX: Wells Fargo, Banking Industry, etc. • Many companies falter because managers fail to listen to customers, misinterpret signals from the market, or can't build a cohesive team. • The number one reason for manager failure is ineffective communication skills and practices. Especially in times of uncertainty or crisis, if managers do not communicate effectively, including listening to employees and customers and showing genuine care and concern, organizational performance and reputation suffer. • EX: Tony Hayward - BP Deepwater Horizon - turned the company around until oil spill. "Wanted his life back" - insensitivity and lack of diplomacy
Humanistic Perspective: Human Relations Movement
• Effective control comes from within the employee • Hawthorne studies were key contributor • Human relations played key variable in increasing performance • Employees performed better when managers treated them positively • Strongly shaped management practice and research
Classical Perspective
• Emerged during the nineteenth and early twentieth centuries o Rise of the factory system o Issues regarding structure, training, and employee satisfaction • Large, complex organizations required new approaches to coordination and control
Elements of Quality Management
• Employee involvement - buy in • Focus on the customer - better quality goods • Benchmarking - compare to other businesses • Continuous improvement - always getting better
Humanistic Perspective: Early Advocates
• Empowerment: facilitating instead of controlling • Recognition of information organization • Introduced acceptance theory of authority
Recent Trends: Systems Contingency View
• Every situation is unique • Managers must determine what method will work • Managers must identify key contingencies for the current situation • Organizational structure should depend upon industry and other variables
Innovative Management Thinking
• Focus on creating benefits from limited resources (Hindi word: Jugaad, U.S. "Frugal Engineering.") • Management changing but history matters o Broadens way of thinking o Discover patterns that recur over time o Learn from others' mistakes and successes
Administrative Principles
• Focused on the entire organization • Henri Fayol, a French mining engineer, was a major contributor • 14 general principles of management; many still used today: o Unity of command o Division of work o Unity of direction o Scalar chain
Humanistic Perspective: Human Resources Perspective
• From worker participation and considerate leadership to managing work performance • Combine motivation with job design • Maslow and McGregor extended and challenged current theories o Maslow's Hierarchy o Theory X and Theory Y
Manager Identity
• Generalist; coordinates diverse tasks • Gets things done through others • A network builder • Works in highly interdependent
1.3 Remember This
• Good management is important because organizations contribute so much to society • Some managers are using mobile apps to increase efficiency; one example is Square, used to process credit and debit card payments with a smartphone
1.6 Remember This
• Good management is just as important for small businesses and nonprofit organizations as it is for large corporations • Managers in these organizations adjust and integrate the various management functions, activities, and roles to meet the unique challenges they face. • Managers in small businesses often see their most important roles as being a spokesperson for the business and acting as an entrepreneur • Managers in nonprofit organizations direct their efforts toward generating some kind of social impact rather than toward making money for the organization • Managers in nonprofit organizations often struggle with what constitutes effectiveness
Scientific Management
• Henry Gantt developed the Gantt chart to measure and plan work • The Gilbreths pioneered time and motion studies to promote efficiency
Resources
• Human • Financial • Raw materials • Technological • Information
Administrative Principles
• Identified five functions of management: o Planning o Organizing o Commanding o Coordinating o Controlling
Scientific Management
• Improve efficiency and labor productivity • Frederick Winslow Taylor proposed that workers "could be retooled like machines" • Management decisions would be based on precise procedures based on study
1.8 - Ten Manager Roles
• Informational o Monitor o Disseminator o Spokesperson • Interpersonal o Figurehead o Leader o Liaison • Decisional o Entrepreneur o Disturbance Handler o Resource Allocator o Negotiator
Why Innovative Management Matters
• Innovation is the new imperative • Organizations cannot survive long-term without innovation • Companies like Facebook are always investing in new ideas • Innovation should be part of products, processes, people, and values
Note on Slide 4
• Innovations in products, services, management systems, productions processes, corporate values, and other aspects of the organization are what keep companies growing, changing, and thriving. Without innovation, no company can survive over the long run. Innovation has become the new imperative, despite the need for companies to control costs in today's economy. • Steve Jobs - Apple * • Virgin Group CEO Branson - TWITTER - may have well brought down dictators in North Africa and Middle East • Facebook • Cellphones • Without Innovation, no company can survive over the long run.
1.1 - State-of-the-Art Management Competencies for Today's World
• Management Principle: From Traditional Approach to New Competencies • Overseeing Work: From Controller to Enabler • Accomplishing Tasks: From supervising individuals to Leading teams • Managing Relationships: From conflict and competition to Conversation and collaboration • Leading: From autocratic to Dispersed and empowering • Designing: From maintaining stability to Mobilizing for change
Innovative Management: Thinking for a Changing World
• Management ideas trace their roots to historical perspectives • New ideas continue to emerge to meet the changing needs and difficult times • The shelf life of trends is getting shorter and new ideas peak in fewer than three years
Manager Roles
• Manager roles are important to understand but they are not discrete activities • Management cannot be practiced as independent parts • Managers need time to plan and think
Note from Slide 18
• Managerial activity is characterized by variety, fragmentation, and brevity. The average time spent on any one activity is less than nine minutes, and managers must be able to shift gears quickly. • Managers perform a great deal of work at an unrelenting pace, requiring great energy. Most top executive routinely work at least 12 hours a day and spend 50 percent or more of their time traveling. • Calendars are often booked months in advance, but unexpected disturbances erupt every day. • Majority of executives' meetings and other contacts are ad hoc, and even scheduled meetings are typically surrounded by other events such as quick phone calls, scanning of e-mail, or spontaneous encounters. • Technology, such as e-mail, text messaging, cell phones, and laptops, intensifies the pace. • Time is a manager's most valuable resource, and one characteristic that identifies successful managers is that they know how to use time effectively to accomplish the important things first and the less important things later. • Time management refers to using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life. • 1. Keep a to do list; ABC list; Daily review and look ahead, Do ONE THING AT A TIME • Learning to manage their time effectively is one of the greatest challenges that new managers face. • Only work 6 hours alone per week
1.7 - 1.8 Remember This
• Managers are always on the lookout for new techniques and approaches to meet shifting organizational needs • Looking at history gives managers a broader perspective for interpreting and responding to current opportunities and problems • Management and organizations are shaped by forces in the larger society
1.1 Remember This
• Managers get things done by coordinating and motivating other people • Management is often a different experience from what people expect • Management is defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources • Turbulent environmental forces have caused a signigicant shift in the competencies required for effective mangers • Traditional management competencies could include a command-and-control leadership style, a focus on individual tasks, and standardizing procedures to maintain stability • New management competencies include the ability to be an enabler rather than a controller, using an empowering leadership style, encouraging collaboration, leading teams, and mobilizing for change and innovation
1.4 Remember This
• Managers have complex jobs that require a range of abilities and skills • The two major reasons that managers fail are poor communication and poor interpersonal skills • A manager's weaknesses become more apparent during stressful times of uncertainty, change, or crisis
1.2 Remember This
• Managers perform a wide variety of activities that fall within four primary management functions - Planning, Organizing, Leading, and Controlling
Bureaucratic Organizations
• Managers use power instead of personality to delegate o Although important productivity gains come from this foundation, bureaucracy has taken on a negative tone
Bureaucratic Organizations
• Max Weber, a German theorist, introduced the concepts • Manage organizations on impersonal, rational basis • Organization depends on rules and records
When Skills Fail
• Missteps and unethical behavior have been in the news • During turbulent times, managers must apply their skills • Common management failures: o Not listening to customers o Misinterpreting signals from marketplace o Not building teams o Inability to execute strategies o Failure to comprehend and adapt to change o Poor communication and interpersonal skills
1.14 Remember This
• Modern management is a lively mix of ideas and techniques from varied historical perspectives, but new concepts continue to emerge. • Managers tend to look for innovative ideas and approaches particularly during turbulent times. • Many of today's popular techniques are related to the transition to a technology-driven workplace. • Social media management, customer relationship management (CRM), and supply chain management • These new approaches require managers to think in fresh ways about managing their relationships with employees, customers, and business partners.
Note from Slide 10
• 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 organizational goal. It is based on the how much raw materials, money, and people are necessary for producing a given volume of output. The ultimate responsibility of managers is to achieve high performance, which is the organization's ability to attain its goals by using resources in an efficient and effective manner. • Although efficiency and effectiveness are both important for performance, most people would probably say that effectiveness is the more important concept. The reason is that internal efficiency has no value if it does not enable the organization to achieve its goals and respond to the external environment. On the other hand, an organization that is effective does achieve its goals, by definition. One of these goals should involve continuously increasing efficiency. • Managers can and should improve both efficiency and effectiveness simultaneously. As noted above, one of any organization's primary goals should be to continuously improve efficiency. To the extent that the organization increases its success in achieving this goal, along with others, its effectiveness also improves. • Toyota's leaders should respond by increasing the company's efficiency in reducing safety problems. Doing so will, by definition, move the company toward eliminating safety problems, which should be one of its organizational goals.
Contingency View of Management
• Organizational phenomena exist in logical patterns • Manager devise and apply similar responses to common types of problems
Making the Leap: Becoming a New Manager
• Organizations often promote star performers to management • Becoming a manager is a transformation o Move from being a doer to a coordinator • Many new managers expect more freedom to make changes • Successful managers build teams and networks • Many make the transformation in a "trial by fire"
Humanistic Perspective: Behavioral Sciences Approach
• Other strategies based on behavioral science: o Matrix organizations o Self-managed teams o Corporate culture o Management by wandering around
Recent Trends: Total Quality Management
• Quality movement is strongly associated with Japan • The U.S. ignored the ideas of W. Edwards Deming, "Father of the Quality Movement" • Total Quality Management (TQM) became popular in the 1980s and 1990s • Integrate high-quality value in every activity
Humanistic Perspective: Behavioral Sciences Approach
• Scientific methods + sociology, psychology, anthropology, economics to develop theories about human behavior and interaction in an organizational setting • Organizational development - field that uses behavioral sciences to improve organization
Role
• Set expectations for a manager's behavior • Every role undertaken by a manager accomplishes the functions of: o Planning o Organizing o Leading o Controlling
Managing in Small Business and Nonprofit Organizations
• Small businesses are growing o Inadequate management skills are a threat o The roles for small business managers differ o Entrepreneurs must promote the business • Nonprofits need management talent o Apply the four functions of management to make social impact o More focus on keeping costs low o Need to measure intangibles like "improving public health"
Note from Slide 22
• Small businesses are growing in importance. Hundreds of small businesses open every month, but the environment for small business today is highly complicated. • Small business managers tend to emphasize different roles from those emphasized by managers in large corporations. They see their most important role as that of spokesperson in promoting their business to the outside world. The entrepreneur role is also critical in small businesses because managers have to be innovative and help their organizations develop new ideas to remain competitive. • Have to wear many hats * roles differ - rate lower on leader and information-processing roles; GOOD DECISIONAL ROLE • Nonprofit organizations also represent a major application of management talent. The functions of planning, organizing, leading, and controlling apply just as in other organizations. Managers in nonprofit organizations direct their efforts toward generating some kind of social impact. • Financial resources for nonprofit organizations typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. In nonprofits, services are typically provided to nonpaying clients, and a major problem for many nonprofit organizations is securing a steady stream of funds to continue operating. • In addition, because nonprofit organizations do not have a conventional bottom line, managers often struggle with the question of what constitutes results and effectiveness. The metrics of success in nonprofits are much more ambiguous. Managers have to measure intangibles, which also makes it more difficult to gauge the performance of employees and managers. • An added complication is that managers often depend on volunteers and donors who cannot be supervised and controlled in the same way that a business manager deals with employees.
Managing the Technology - Driven Workplace
• Social media programs • Customer relationship management • Outsourcing • Supply chain management
Individual Identity
• Specialist; performs specific tasks • Gets things done through own efforts • An individual actor • Works relatively independently
Management and Organization
• Studying management history helps your conceptual skills o Social forces o Political forces o Economic forces
Note on Slide 6
• Technological advances and the rise of virtual work, global market forces, and shifting employee and customer expectations have led to a decline in organizational hierarchies and more empowered workers, which calls for a new approach to management that may be quite different from managing in the past. • Instead of being a controller, today's effective manager is an enabler who helps people do and be their best. Managers help people get what they need, remove obstacles, provide learning opportunities, and offer feedback, coaching and career guidance. Instead of "management by keeping tabs," they employ an empowering leadership style. • Much work is done in teams rather than by individuals, so team leadership skills are crucial. • People in many organizations work at scattered locations, so managers can't monitor behavior continually. In addition, managers sometimes are coordinating the work of people who aren't under their direct control, such as those in partner organizations, sometimes even working with competitors. Managing relationships based on authentic conversation and collaboration is essential for successful outcomes. • Today's managers are also "future-facing." That is, they design the organization and culture for creativity, adaptation, and innovation rather than maintaining the status quo. • Today's world is constantly changing, and success depends on innovation and continuous improvement.
Recent Trends: Systems Thinking
• The ability to see the distinct elements of a situation as well as the complexities • System - set of interrelated parts that function as a whole to achieve a common purpose • Subsystems - are parts of the system that are all interconnected • Synergy - the whole is greater than the sum of its parts • Managers must understand subsystem interdependence and synergy
Management
• The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources o Managers get things done through the organization o Create right systems and environment o Organizations need good managers
Management - Note on Slide 5
• The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. • There are two important ideas in this definition: (1) the four functions of planning, organizing, leading, and controlling, and (2) the attainment of organizational goals in an efficient and effective manner.
Assumptions of Theory X
• The average human being has an inherent dislike of work and will avoid it if possible • Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives • The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all
Assumption of Theory Y
• The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work • External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed • The average human being learns, under proper conditions, not only to accept but to seek responsibility • The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population • Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized
Note from Slide 9
• The ultimate responsibility of managers is to achieve high performance, which is the organization's ability to attain its goals by using resources in an efficient and effective manner. • HOW IMPORTANT ARE ORGANIZATIONS??? • EMI - music company - weak sales led managers to focus on financial efficiency, trimmed waste and boosted operating income - HOWEVER could not recruit - lost ROLLING STONES *
Management Skills
• Three categories of skills: conceptual, human, and technical • The degree of the skills may vary but all managers must possess the skills • The application of management skills change as managers move up the hierarchy
Classical Perspective
• Three subfields: o Scientific management o Bureaucratic organizations o Administrative principles
Humanistic Perspective: Early Advocates
• Understand human behaviors, needs, and attitudes in the workplace • Mary Parker Follett and Chester Barnard • Contrast to scientific management - Importance of people rather than engineering techniques
