MGT 300

1-12

-In addition, innovative concepts continue to emerge to address new management challenges. Wise managers heed the past but know that they and their organizations must change with the times. Managers are always looking for new techniques and approaches that more adequately respond to customer needs and the demands of the environment. -Thus, managers are looking for new and creative approaches that can help them reduce and cope with complexity, cut costs, and invest in innovation for the future. Other top concerns of managers as revealed in the survey include the threat of cyber attacks, decreasing customer loyalty, and the pace of change brought about by digital technologies.* Responding to these and other concerns, the tools most used by today's managers tend to fall into the same dual categories of managing the "things of production" and managing the "humanity of production.New technology, for example, may ignore the needs of people and often has the potential to return them to cogs in the organizational machine. Social media and bossless management, on the other hand, focus more on meeting human needs to advance organizational performance. -.* Big data analytics refers to technologies, skills, and processes for searching and examining massive, complex sets of data that traditional data processing applications cannot handle to uncover hidden patterns and correlations. -Supply chain management refers to managing the sequence of suppliers and purchasers and covers all stages of processing, from obtaining raw materials to distributing finished goods to consumers.supply chain is a network of multiple businesses and individuals that are connected through the flow of products or services.* Many organizations manage the supply chain with sophisticated electronic technology. -Organizations are undergoing tremendous changes. Some of these changes are related to new technology, whereas others are brought about primarily because of shifting needs of people.As described at the beginning of this chapter, a few bossless work environments have existed for decades, but this has become a real trend in recent years. For one thing, how and where work gets done has shifted in major ways because new technology enables many people to work from home or other locations outside a regular office. -ccountability is to the customer and the team rather than to a manager. There can be many advantages to a bossless work environment, including increased flexibility, greater employee initiative and commitment, and better and faster decision making.* However, bossless work environments also present new challenges. Costs may be lower because of reduced overhead, but money must be invested in ongoing training and development for employees so that they can work effectively within a bossless system. The culture also must engage employees and support the nonhierarchical environment. Employee engagement is essential for a successful bossless workplace. -Employee engagement means that people are emotionally involved in their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization and its mission.* To engage employees, managers unite people around a compelling purpose that encourages them to give their best. -Meeting the shifting needs of this generation is one reason managers put employee engagement surveys high on the list of tools and techniques they are using.* Meanwhile, savvy managers are looking ahead to the next generation after the Millennials that will soon be flooding into the workforce, bringing their own changes and challenges to the practice and evolution of management. Some observers predict that a sense or meaning and commitment, especially environmental responsibility, will be high on their list of priorities.

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 significant shift in the competencies required for effective managers. -Traditional management competencies could include a command-and-control leadership style, a focus on individual tasks, and a standardization of procedures to maintain stability. -New management competencies include being an enabler rather than a controller, using an empowering leadership style, encouraging collaboration, leading teams, and mobilizing for change and innovation. -The Oregon Ducks football team illustrates some of the new management competencies. -Managers perform a wide variety of activities that fall within four primary management functions. -Recent U.S. Secret Service agency scandals can be traced partly to a breakdown of management control. -An organization is a social entity that is goal-directed and deliberately structured. -Good management is important because organizations contribute so much to society. -Efficiency pertains to the amount of resources—raw materials, money, and people—used to produce a desired volume of output. -Effectiveness refers to the degree to which the organization achieves a stated goal. -Some managers are using mobile apps to increase efficiency; one example is Square, which is used to process credit and debit card payments with a smartphone. -Performance is defined as the organization's ability to attain its goals by using resources in an efficient and effective manner. -Managers at General Mills are concerned both with keeping costs low (efficiency) and providing products that meet changing consumer tastes (effectiveness). -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. -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. -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. -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. -The struggle to balance "the things of production" with the "humanity of production" has continued from the nineteenth century to today. -The study of modern management began in the late nineteenth century with the classical perspective, which took a rational, scientific approach to management and sought to turn organizations into efficient operating machines. -Scientific management is a subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity. -Frederick Winslow Taylor is known as "the father of scientific management." -Scientific management is considered one of the most significant innovations influencing modern management. -Some supermarket chains are using computerized systems based on scientific management principles to schedule employees for maximum efficiency. -Another subfield of the classical perspective is the bureaucratic organizations approach, 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. -Max Weber introduced most of the concepts about bureaucratic organizations. -the administrative principles approach is 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. -Henri Fayol was a major contributor to the administrative principles approach. Fayol outlined 14 general principles of management, several of which are a part of management philosophy today. -Management science became popular based on its successful application in solving military problems during World War II. -Management science, also called the quantitative perspective, uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems. -The Walt Disney Company uses management science to solve the problem of long lines for popular rides and attractions at its theme parks. -Three subsets of management science are operations research, operations management, and information technology (IT). -Quants have come to dominate decision making in financial firms, and the Wall Street meltdown in 2007-2008 shows the danger of relying too heavily on a quantitative approach. -The humanistic perspective emphasizes understanding human behavior, needs, and attitudes in the workplace. -Mary Parker Follett and Chester I. Barnard were early advocates of a more humanistic approach to management. -Follett emphasized worker participation and empowerment, shared goals, and facilitating rather than controlling employees. Barnard's contributions include the acceptance theory of authority. -The human relations movement stresses the satisfaction of employees' basic needs as the key to increased productivity. -The Hawthorne studies were important in shaping ideas concerning how managers should treat workers. -The human resources perspective suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential. -The behavioral sciences approach draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting. -Many current management ideas and practices can be traced to the behavioral sciences approach. -A system is a set of interrelated parts that function as a whole to achieve a common purpose. An organization is a system. -Systems thinking means looking not just at discrete parts of an organizational situation, but also at the continually changing interactions among the parts. -When managers think systemically and understand subsystem interdependence and synergy, they can get a better handle on managing in a complex environment. -Subsystems are parts of a system that depend on one another for their functioning. -The concept of synergy says that the whole is greater than the sum of its parts. The organization must be managed as a whole. -The contingency view 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. -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. -Two recent trends are the transition to a more technology-driven workplace and a corresponding emphasis on a people-driven workplace. -Supply chain management refers to managing the sequence of suppliers and purchasers and covers all stages of processing, from obtaining raw materials to distributing finished goods to consumers. -Two ideas related to a people-driven workplace are the bossless work environment and employee engagement. -Engagement means that people are involved in their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization and its mission. -Managers are looking ahead to the next generation of employees to try to predict what changes and challenges they may bring to the evolution of management thinking. -Social business, which refers to using social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholders, is one current answer to the historical struggle. -Social media programs include company online community pages, wikis for virtual collaboration, social media sites such as Facebook or LinkedIn, video channels such as YouTube, microblogging platforms such as Twitter, and company online forums.

1-5

-One answer to the question of what managers do to plan, organize, lead, and control was provided by Henry Mintzberg, who followed managers around and recorded all their activities.* He developed a description of managerial work that included three general characteristics and 10 roles. -Both male and female managers across five different countries report that they most enjoy activities such as leading others, networking, and leading innovation. Activities that managers like least include controlling subordinates, handling paperwork, and managing time pressures. -Many people who are promoted into a manager position have little idea what the job actually entails and receive little training about how to handle their new role. It's no wonder that, among managers, first-line supervisors tend to experience the most job burnout and attrition.* -Rather, becoming a manager means a profound transformation in the way people think of themselves, called personal identity, which includes letting go of deeply held attitudes and habits and learning new ways of thinking. -The individual performer is a specialist and a "doer." His or her mind is conditioned to think in terms of performing specific tasks and activities as expertly as possible. The manager, on the other hand, has to be a generalist and learn to coordinate a broad range of activities. While the individual performer strongly identifies with his or her specific tasks, the manager has to identify with the broader organization and industry. -In addition, the individual performer gets things done mostly through his or her own efforts and develops the habit of relying on self rather than others. The manager, though, gets things done through other people. Indeed, one of the most common mistakes that new managers make is wanting to do all the work themselves, rather than delegating to others and developing others' abilities -Being a successful manager means thinking in terms of building teams and networks and becoming a motivator and organizer within a highly interdependent system of people and work.* -The cost to organizations of losing good employees who can't make the transition is higher than the cost of providing training to help new managers cope, learn, and grow. In addition, some organizations use great care in selecting people for managerial positions, including ensuring that each candidate understands what management involves and really wants to be a manager. -Most new managers are unprepared for the variety of activities that managers routinely perform. One of the most interesting findings about managerial activities is how busy managers are and how hectic the average workday can be. -Managerial activity is characterized by variety, fragmentation, and brevity. -Managers shift gears quickly. In his study, Mintzberg found that the average time a top executive spends on any one activity is less than nine minutes, and another survey indicates that some first-line supervisors average one activity every 48 seconds!* Significant crises are interspersed with trivial events in no predictable sequence -New managers sometimes find themselves overwhelmed by the various activities, multiple responsibilities, long hours, and fast pace that come with management. A manager's life on speed dial requires good time management skills. Managers must also find ways to maintain a healthy balance between their work and personal lives. -The manager performs a great deal of work at an unrelenting pace.* Managers' work is fast paced and requires great energy. -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. New managers in particular often struggle with the increased workload, the endless paperwork, the incessant meetings, and the constant interruptions that come with a management job. Learning to manage their time effectively is one of the greatest challenges that new managers face. -keep to do list -remember a,b,cs -schdule your workday -do one thing at a time. -Mintzberg's observations and subsequent research indicate that diverse manager activities can be organized into 10 roles.* A role is a set of expectations for a manager's behavior -These roles are divided into three conceptual categories: informational (managing by information), interpersonal (managing through people), and decisional (managing through action). -One of Mintzberg's roles is disseminator, which means scanning for information and knowing what to share and with whom. Equifax failed, as shown in this chapter's "Half-Baked Management" box. -Each role represents activities that managers undertake to ultimately accomplish the functions of planning, organizing, leading, and controlling. Although it is necessary to separate the components of the manager's job to understand the different roles and activities of a manager, it is important to remember that the real job of management isn't practiced as a set of independent parts; all the roles interact in the real world of management. -

1-11

-Peter Drucker's books Concept of the Corporation (1946) and The Practice of Management (1954) emphasized the corporation as a social and human institution. Drucker revived interest in the work of Mary Parker Follett from the 1920s in his call for managers to involve and respect employees.* The post-World War II period saw the rise of new concepts, along with a continued strong interest in the human aspect of managing, such as team and group dynamics and other ideas that relate to the humanistic perspective. Two new concepts that appeared were systems thinking and the contingency view. -Systems thinking is the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements. A system is a set of interrelated parts that function as a whole to achieve a common purpose.* Subsystemsare parts of a system, such as an organization, that depend on one another. Changes in one part of the system (the organization) affect other parts. Managers need to understand the synergy of the whole organization, rather than just the separate elements, and to learn to reinforce or change whole system patterns.* Synergy means that the whole is greater than the sum of its parts. The organization must be managed as a coordinated whole. Managers who understand subsystem interdependence and synergy are reluctant to make changes that do not recognize the impact of subsystems on the organization as a whole. Many people have been trained to solve problems by breaking a complex system, such as an organization, into discrete parts and working to make each part perform as well as possible. However, the success of each piece does not add up to the success of the whole. In fact, sometimes changing one part to make it better actually makes the whole system function less effectively. -It is the relationship among the parts that form a whole system—whether a community, an automobile, a nonprofit agency, a human being, or a business organization—that matters. Systems thinking enables managers to look for patterns of movement over time and focus on the qualities of rhythm, flow, direction, shape, and networks of relationships that accomplish the performance of the whole. When managers can see the structures that underlie complex situations, they can facilitate improvement. But doing that requires a focus on the big picture. An important element of systems thinking is to discern circles of causality.author of The Fifth Discipline, argues that reality is made up of circles rather than straight lines. For example, Exhibit 1.14 shows circles of influence for increasing a retail firm's profits. The events in the circle on the left are caused by the decision to increase advertising; hence, the retail firm adds to the advertising budget to aggressively promote its products. The advertising promotions increase sales, which increase profits, which provide money to further increase the advertising budget.Without understanding system causality, top managers would fail to understand why increasing advertising budgets could cause inventory delays and temporarily reduce profits. -A second recent extension to management thinking is the contingency view. The classical perspective assumed a universalist view. Management concepts were thought to be universal; that is, whatever worked in one organization in terms of management style, bureaucratic structure, and so on would work in any other one. In business education, however, an alternative view exists. In this case view, each situation is believed to be unique. Principles are not universal, and one learns about management by experiencing a large number of case problem situations. Managers face the task of determining what methods will work in every new situation.The contingency view tells us that what works in one setting might not work in another. Contingency means that one thing depends on other things, and a manager's response to a situation depends on identifying key contingencies in an organizational situation.One important contingency, for example, is the industry in which the organization operates

1-10

-The humanistic perspective on management (the primary focus on the humanity of production) emphasizes the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes.* There are three primary subfields based on the humanistic perspective: the human relations movement, the human resources perspective, and the behavioral sciences approach. -Two early advocates of a more humanistic approach were Mary Parker Follett and Chester I. Barnard.Her work was popular with businesspeople of her day but was often overlooked by management scholars.* Follett's ideas served as a contrast to scientific management and are re-emerging as applicable for modern managers dealing with rapid changes in today's global environment. Her approach to leadership stressed the importance of people rather than engineering techniques.The concepts of empowering, facilitating rather than controlling employees, and allowing employees to act depending on the authority of the situation opened new areas for theoretical study by Chester Barnard and others.* -One of Barnard's significant contributions was the concept of the informal organization. The informal organization occurs in all formal organizations and includes cliques, informal networks, and naturally occurring social groupings. Barnard argued that organizations are not machines and stressed that informal relationships are powerful forces that can help the organization if properly managed. Another significant contribution was the acceptance theory of authority, which states that people have free will and can choose whether to follow management orders. People typically follow orders because they perceive positive benefit to themselves, but they do have a choice. Managers should treat employees properly because their acceptance of authority may be critical to organization success in important situations.* -The human relations movement was based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control.* This school of thought recognized and directly responded to social pressures for enlightened treatment of employees. The early work on industrial psychology and personnel selection received little attention because of the prominence of scientific management. Then a series of studies at a Chicago electric company, which came to be known as the Hawthorne studies, changed all that. Beginning about 1895, a struggle developed between manufacturers of gas and electric lighting fixtures for control of the residential and industrial market.Most early interpretations, however, agreed on one point: Money was not the cause of the increased output.* It was believed that the factor that best explained increased output was human relations. Employees performed better when managers treated them in a positive manner. -The interpretation that employees' output increased when managers treated them in a positive manner started a revolution in worker treatment aimed at improving organizational productivity. Despite flawed methodology or inaccurate conclusions, the findings provided the impetus for the human relations movement. This approach shaped management theory and practice for well over a quarter-century, and the belief that human relations is the best area of focus for increasing productivity persists today. -The human resources perspective maintained an interest in worker participation and considerate leadership but shifted the emphasis to considering the daily tasks that people perform. The human resources perspective combines prescriptions for design of job tasks with theories of motivation.* In the human resources view, jobs should be designed so that tasks are not perceived as dehumanizing or demeaning but instead allow workers to use their full potential. Two of the best-known contributors to the human resources perspective were Abraham Maslow and Douglas McGregor.Abraham Maslow (1908-1970), a practicing psychologist, observed that his patients' problems usually stemmed from an inability to satisfy their needs. Thus, he generalized his work and suggested a hierarchy of needs. Maslow's hierarchy started with physiological needs and progressed to safety, belongingness, esteem, and, finally, self-actualization needs.Douglas McGregor (1906-1964) McGregor formulated Theory X and Theory Y, which are explained in Exhibit 1.13.* McGregor believed that the classical perspective was based on Theory X assumptions about workers. He also felt that a slightly modified version of Theory X fit early human relations ideas. In other words, human relations ideas did not go far enough. McGregor proposed Theory Y as a more realistic view of workers for guiding management thinking.he point of Theory Y is that organizations can take advantage of the imagination and intellect of all their employees. Employees will exercise self-direction and self-control to contribute to organizational goals when given the opportunity. A few companies today still use Theory X management, but many are using Theory Y techniques -The behavioral sciences approach uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting. This approach can be seen in practically every organization.One specific set of management techniques based in the behavioral sciences approach is organization development (OD). In the 1970s, OD evolved as a separate field that applied the behavioral sciences to improve the organization's health and effectiveness through its ability to cope with change, improve internal relationships, and increase problem-solving capabilities.* The techniques and concepts of OD have since been broadened and expanded to address the increasing complexity of organizations and the environment, and OD is still a vital approach for managers.

1-9

-The practice of management can be traced to 3000 b.c., to the first government organizations developed by the Sumerians and Egyptians, but the formal study of management is relatively recent.* The early study of management as we know it today began with what is now called the classical perspective. The classical perspective on management (primary focus on the things of production) emerged during the nineteenth and early twentieth centuries. The factory system that began to appear in the 1800s posed challenges that earlier organizations had not encountered. Problems arose in tooling the plants, organizing managerial structure, training employees (many of them non-English-speaking immigrants), scheduling complex manufacturing operations, and dealing with increased labor dissatisfaction and resulting strikes. These myriad new problems and the development of large, complex organizations demanded a new approach to coordination and control, and a "new sub-species of economic man—the salaried manager"*—was born. -. Between 1880 and 1920, the number of professional managers in the United States increased from 161,000 to more than 1 million.* These professional managers began developing and testing solutions to the mounting challenges of organizing, coordinating, and controlling large numbers of people and increasing worker productivity. Thus began the evolution of modern management with the classical perspective. This perspective contains four subfields, each with a slightly different emphasis: scientific management, bureaucratic organizations, administrative principles, and management science.* -Scientific management emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity. In the late 1800s, a young engineer, Frederick Winslow Taylor (1856-1915), proposed that workers "could be retooled like machines, their physical and mental gears recalibrated for better productivity."* Taylor insisted that improving productivity meant that management itself would have to change and, further, that the manner of change could be determined only by scientific study; hence, the label scientific management emerged.Although known as the father of scientific management, Taylor was not alone in this area. Henry Gantt, an associate of Taylor's, developed the Gantt chart, a bar graph that measures planned and completed work along each stage of production by time elapsed. Two other important pioneers in this area were the husband-and-wife team of Frank B. and Lillian M. Gilbreth. Frank B. Gilbreth (1868-1924) pioneered time and motion study and arrived at many of his management techniques independently of Taylor. Gilbreth stressed efficiency and was known for his quest for the one best way to do work.To use this approach, managers should develop standard methods for doing each job, select workers with the appropriate abilities, train workers in the standard methods, support workers and eliminate interruptions, and provide wage incentives.Indeed, the ideas of creating a system for maximum efficiency and organizing work for maximum productivity are deeply embedded in our organizations.* However, because scientific management ignores the social context and workers' needs, it can lead to increased conflict and clashes between managers and employees. -A systematic approach developed in Europe that looks at the organization as a whole is the bureaucratic organizations approach, a subfield within the classical perspective. Max Weber (1864-1920), a German theorist, introduced most of the concepts on bureaucratic organizations.Employees were loyal to a single individual rather than to the organization or its mission. The dysfunctional consequence of this management practice was that resources were used to realize individual desires rather than organizational goals. Employees in effect owned the organization and used resources for their own gain rather than to serve customers. Weber envisioned organizations that would be managed on an impersonal, rational basis. This form of organization was called a bureaucracy.To Weber, rationality in organizations meant employee selection and advancement based not on whom you know, but rather on competence and technical qualifications, which are assessed by examination or according to specific training and experience. The organization relies on rules and written records for continuity. In addition, rules and procedures are impersonal and applied uniformly to all employees.As this example shows, there are positive as well as negative aspects associated with bureaucratic principles. Weber also struggled with the good and bad sides of bureaucracy.* Although he perceived bureaucracy as a threat to basic personal liberties, he recognized it as the most efficient and rational form of organizing. Rules and other bureaucratic procedures provide a standard way of dealing with employees. Everyone gets equal treatment, and everyone knows what the rules are. Almost every organization needs to have some rules, and rules multiply as organizations grow larger and more complex. -Another major subfield within the classical perspective is known as the administrative principles approach. Whereas scientific management focuses on the productivity of the individual worker, the administrative principles approach focuses on the total organization.Unity of command. Each subordinate receives orders from one—and only one—superior. Division of work. Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort. Unity of direction. Similar activities in an organization should be grouped together under one manager. Scalar chain. A chain of authority extends from the top to the bottom of the organization and should include every employee. Fayol felt that these principles could be applied in any organizational setting. He also identified five basic functions or elements of management: planning, organizing, commanding, coordinating, and controlling. These functions underlie much of the general approach to today's management theory. -Another, more recent, management approach that falls within the classical perspective is management science. World War II caused many management changes. To handle the massive and complicated problems associated with modern global warfare, managerial decision makers needed more sophisticated tools than ever before. Management science, also referred to as the quantitative perspective, provided a way to address those problems. This view is distinguished for its application of mathematics, statistics, and other quantitative techniques to management decision making and problem solving -Picking up on techniques developed for the military, scholars began cranking out numerous mathematical tools for corporate managers, such as the application of linear programming for optimizing operations, statistical process control for quality management, and the capital asset pricing model.* These efforts were enhanced with the development and perfection of the computer. Coupled with the growing body of statistical techniques, computers made it possible for managers to collect, store, and process large volumes of data for quantitative decision making, and the quantitative approach is widely used today by managers in a variety of industries. The Walt Disney Company used quantitative techniques to develop FastPass, -The term quants refers to financial managers and others who base their decisions on complex quantitative analysis under the assumption that using advanced mathematics and sophisticated computer technology can accurately predict how the market works and help them reap huge profits. The virtually exclusive use of these quantitative models led aggressive traders and managers to take enormous risks.The overall classical perspective as an approach to management was very powerful and gave companies fundamental new skills for establishing high productivity and effective treatment of employees.

1-1

.-The nature of management is to motivate and coordinate others to cope with diverse and far-reaching challenges -But the field of management is undergoing a revolution that asks managers to do more with less, to engage employees' hearts and minds as well as their physical energy, to see change rather than stability as natural, and to inspire vision and cultural values that allow people to create a truly collaborative and productive workplace. -The data show that well-managed companies have higher productivity, higher market value, and greater growth, as well as a superior ability to survive difficult conditions. -Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. -In recent years, rapid environmental changes have caused a fundamental transformation in what is required of effective managers. Technological advances such as social media and mobile apps, the move to a knowledge/information-based economy, the rise of virtual work, global market forces, the growing threat of cyber crime, 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. Today's managers learn to "design the rules of the game without specifying the actions of the players."* Managers shape the cultures, systems, and conditions and then give people the freedom to move the organization in the direction it needs to go. 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. Some organizations are even experimenting with a bossless design that turns management authority and responsibility over to employees. Managing relationships based on authentic conversation and collaboration is essential for successful outcomes. Social media represent a growing tool for managers to enhance communication and collaboration in support of empowered or bossless work environments. In addition, managers sometimes coordinate the work of people who aren't under their direct control, such as those in partner organizations, and they sometimes even work with competitors. They have to find common ground among people who might have disparate views and agendas and align them to go in the same direction -best managers are "future facing." That is, they design the organization and culture to anticipate threats and opportunities from the environment, challenge the status quo, and promote creativity, learning, adaptation, and innovation. Industries, technologies, economies, governments, and societies are in constant flux, and managers are responsible for helping their organizations navigate through the unpredictable with flexibility and innovation.* Today's world is constantly changing, but "the more unpredictable the environment, the greater the opportunity—if [managers] have the . . . skills to capitalize on it."* -Research has found that the "drill sergeant approach" doesn't go over well with the "Millennial" generation (those born in the 1980s and 1990s), so managers in all types of organizations are using a softer, more collaborative style of management.* The shift to a new way of managing isn't easy for traditional managers who are accustomed to being "in charge," making all the decisions, and knowing where their subordinates are and what they're doing at every moment. Even more changes and challenges are on the horizon for organizations and managers.

1-4

-A manager's job requires a range of skills. Although some management theorists propose a long list of skills, the necessary skills for managing a department or an organization can be placed in three categories: conceptual, human, and technical. -Human skills are increasingly important for managers at all levels and in all types of organizations -People want managers who listen to them, build positive relationships, and show an interest in their lives and careers.* A recent study found that human skills were significantly more important than technical skills for predicting manager effectiveness.* Another survey compared the importance of managerial skills today with those from the late 1980s and found a decided increase in the role of skills for building relationships with others.* -Good management skills are not automatic. Particularly during turbulent times, managers really have to stay on their toes and apply all their skills and competencies in a way that benefits the organization and its stakeholders—employees, customers, investors, the community, and so forth. -Everyone has flaws and weaknesses, and these shortcomings become most apparent under conditions of rapid change, uncertainty, or crisis -the top 10 factors that cause managers to fail to achieve desired results, based on a survey of managers in U.S. organizations operating in rapidly changing business environments.* Notice that many of these factors are due to poor human skills, such as the inability to develop good work relationships, a failure to clarify direction and performance expectations, or an inability to create cooperation and teamwork. 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. -The manager's job differs as the level increases. First-level managers are more concerned with employee performance, middle managers with putting plans into place and top managers is strategy, -

1-2

-In essence, managers set goals, organize activities, motivate and communicate, measure performance, and develop people.(5 tasks) -fall into four fundamental management functions: planning (setting goals and deciding activities), organizing (organizing activities and people), leading (motivating, communicating with, and developing people), and controlling (establishing targets and measuring performance). Depending on their job situation, managers perform numerous and varied tasks, but they all can be categorized within these four primary functions.

1-13

-One current answer to the historical struggle within management to balance the things of production and the humanity of production is social business. Social business refers to using social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholders. Social media programs include company online community pages, wikis for virtual collaboration, social media sites such as Facebook or LinkedIn, video channels such as YouTube, microblogging platforms such as Twitter, and company online forums. For the first time, a new technology (thing of production) adds directly to the humanity of production. Social media technology can improve efficiency, increase productivity, and facilitate faster and smoother operations by improving communication and collaboration within and across firms.* Social media can also improve the human aspect of organizations by enabling a sense of community and facilitating communication, collaboration, and knowledge sharing -In addition, social media technology is being used by companies to build trusting relationships with customers.Some companies have launched social media command centers to monitor what is being said about the company on social media platforms.* Just as important, social media can build stronger, more authentic relationships between managers and employees.

1-6

-One interesting finding is that managers in small businesses tend to emphasize roles different from those of managers in large corporations. Managers in small companies often see their most important role as that of spokesperson because they must promote the small, growing company to the outside world. The entrepreneur role is also critical in small businesses because managers must be innovative and help their organizations develop new ideas to remain competitive -Small-business managers tend to rate lower on the leader role and on information-processing roles compared with their counterparts in large corporations. -Nonprofit organizations also represent a major application of management talent.* Organizations such as the Salvation Army, Nature Conservancy, Greater Chicago Food Depository, Girl Scouts, and Cleveland Orchestra all require excellent management. The functions of planning, organizing, leading, and controlling apply to nonprofits just as they do to business organizations, and managers in nonprofit organizations use similar skills and perform similar activities. The primary difference is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct their efforts toward generating some kind of social impact. The characteristics and needs of nonprofit organizations created by this distinction present unique challenges for managers.* -*Financial resources for government and charity nonprofit organizations typically come from taxes, appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving the organization's products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as possible.* Donors generally want their money to go directly to helping clients rather than for overhead costs. If nonprofit managers can't demonstrate a highly efficient use of resources, they might have a hard time securing additional donations or government appropriations. The roles defined by Mintzberg also apply to nonprofit managers, but they may differ somewhat. We might expect managers in nonprofit organizations to place more emphasis on the roles of spokesperson (to "sell" the organization to donors and the public), leader (to build a mission-driven community of employees and volunteers), and resource allocator (to distribute government resources or grant funds that are often assigned top-down). -

1-8

-Studying history doesn't mean merely arranging events in chronological order; it means developing an understanding of the impact of societal forces on organizations. Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills. Management practices and perspectives vary in response to social, political, and economic changes in the larger society. -earliest focus of management (the classical perspective), well over a century ago, was on the things of production. In other words, the needs of people were often ignored in the interest of higher production efficiency and profit. By the 1920s and 1930s, the needs of and positive treatment of employees were discovered as another path to efficiency and profit. Since then, there has been a struggle of sorts within management to balance a management preference toward "the things of production" versus a preference toward "the humanity of production." -When forces either outside or within the organization suggest a need for change to improve efficiency or effectiveness, managers have often responded with a technology- or numbers-oriented solution that makes people little more than cogs in a big machine.

1-3

-The definition of management also encompasses the idea of attaining organizational goals in an efficient and effective manner. -Organizations pervade our society, and managers are responsible for seeing that resources are used wisely to attain organizational goals. Our formal definition of an organization is a social entity that is goal directed and deliberately structured. Social entity means being made up of two or more people. Goal directed means designed to achieve some outcome, such as make a profit (Target Stores), win pay increases for members (United Food & Commercial Workers), meet spiritual needs (Lutheran Church), or provide social satisfaction (college sorority Alpha Delta Pi). Deliberately structured means that tasks are divided, and responsibility for their performance is assigned to organization members. This definition applies to all organizations, including both for-profit and nonprofit ones. Small, offbeat, and nonprofit organizations are more numerous than large, visible corporations—and just as important to society. -Based on our definition of management, the manager's responsibility is to coordinate resources in an effective and efficient manner to accomplish the organization's goals. Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value. Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw material, money, and people are necessary for producing a given volume of output. Efficiency can be defined as the amount of resources used to produce a product or service. Efficiency and effectiveness can both be high in the same organization. Many managers are using mobile apps to increase efficiency, and in some cases, the apps can enhance effectiveness as well. -All managers have to pay attention to costs, but severe cost cutting to improve efficiency—whether it is by using cutting-edge technology or old-fashioned frugality—can sometimes hurt organizational effectiveness. The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner. -

1-7

-self-management called holocracy. No one has a supervisor, and employees voluntarily join various impermanent groups called circles, where they come up with their own job descriptions and decide what projects they will undertake -Some organizations will continue to operate with little or no hierarchy, and others will move toward a more hierarchical structure. Managers are always on the lookout for fresh ideas, innovative management approaches, and new tools and techniques. Management philosophies and organizational forms change over time to meet new needs and respond to current challenges. The workplace of today is different from what it was 50 years ago—indeed, from what it was even 10 years ago—yet historical concepts form the backbone of management education.* In addition, some management practices that seem modern have actually been around for a long time. Techniques can gain and lose popularity because of shifting historical forces and the persistent need to balance human needs with the needs of production activities