Innovative Management for a Changing World Chapter 1

Management for a Changing World The nature of management is to motivate and coordinate others Management is undergoing a revolution From tight control to collaboration Doing more with less Change is natural Engage the whole employee

Why Innovative Management Matters Managers must focus on innovation Innovation is the new imperative New and growing companies have fearless managers Innovation keeps the organization growing Products Services Management Systems Production Processes Corporate Values

The Definition of Management Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Managers set goals Organize activities Motivate and communicate Measure performance and develop people

The Process of Management

Organizational Performance An organization is a social entity that is goal directed and deliberately structured Organizational effectiveness – providing a product or service that customers value Organizational efficiency refers to the amount of resources used to achieve an organizational goal

Relationship of Management Skills

Management Skills Three category of skills: conceptual, human 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

When Skills Fail During turbulent times, managers must apply their skills and competencies Common management failures: Not listening to customers Unable to motivate employees Can’t build cohesive teams

Making The Leap: Becoming A New Manager Organizations promote star performers to management Move from being a doer to a coordinator New managers want to do all the work themselves instead of developing others New managers expect greater freedom to make changes Many new managers make the “trial by fire”

From Individual Performer to Manager

Manager Activities Adventures in multitasking Life on speed dial Activity characterized by variety, fragmentation, and brevity Less than nine minutes on most activities Managers shift gears quickly Life on speed dial Work at unrelenting pace Interrupted by disturbances Always working (catching up)

Do You Really Want to Be A Manager? The increased workload The challenge of supervising former peers The headache of responsibility for other people Being caught in the middle

Ten Manager Roles

Managing in Small Business and Nonprofit Organizations Small businesses are growing Inadequate management skills is a threat The roles for small business managers differ Entrepreneurs must promote the business Nonprofit organizations seek good managers More emphasis on spokesperson, resource allocator and leader All organizations carefully integrate and adjust management functions to meet their circumstances

Innovative Management for the New Workplace Turbulent Forces Technology, globalization, shifting social changes, changes in the workforce and environmental shifts New Workplace Characteristics Work is free flowing and flexible, structures are flatter with fewer employees New Management Competencies Employ empowering leadership styles

The Transition to a New Workplace

New Management Competencies Empowering leadership style Collaborative relationships Team-building skills Managers must rethink their approach to organizing, directing, and motivating employees

Managing the Technology-Driven Workplace Today’s workplace is driven by technology Customer Relationship Management (CRM), outsourcing and supply chain management Employees perform work on computers Workers are connected around the world Machines have replaced factory work

Management Perspectives over Time

Management and Organization Social Forces are aspects of culture that guide relationships among people Changing attitudes, ideas and values Political Forces refer to influence of political and legal institutions Economic Forces relate to the resources in society

Classical Perspective Early study of management during nineteenth and early twentieth centuries During the early years of the factory system The development of complex organizations demanded new approaches to command and control

Scientific Management Scientifically designed jobs and practices From the late 1800s, the focus is on efficiency and labor productivity The concepts increased productivity and are still important today

Characteristics of Scientific Management

Bureaucratic Organizations A systematic approach to looking at the organization Impersonal and rational management of organizations Clear division of labor; hierarchy The term bureaucracy has become a negative term

Administrative Principles Subfield of classical perspective Focus on the total organization General principles which are part of management philosophy today: Unity of command Division of work Unity of direction Scalar chain

Humanistic Perspective Understanding human behavior, needs and attitudes Human-Relations Movement – more enlightened treatment of employees Human-Resources Perspective – focus on worker participation and considerate leadership

Theory X and Theory Y

Behavioral Sciences Approach Draws from sociology, psychology, anthropology, economics and other disciplines Organizational development stems from this approach Improve organizational health and effectiveness Cope with change and improve relationships Greatly influenced management since 1970s

Quantitative Approach Also referred to as management science Application of mathematics, statistics, and other quantitative techniques

Recent Historical Trends Systems Thinking – see both the elements and the interaction in a system/situation Contingency View – view each situation as unique and principles are not universal Total Quality Management (TQM) – focusing the whole organization on delivering quality and service

Systems Thinking and Circles of Causality