Leadership & Management CDR Paul Hill The Changing Paradigm of Management

Webster Says: Manage: to handle or direct with a degree of skill Manager: one who manages Management: judicious use of means to accomplish an end

The Book Solution Management is defined as the attainment of organizational goals in an effective and efficient manner through planning, leading, and controlling organizational resources “Hard” vs. “Soft” Achieving strategic objectives through sound management practices

Corporate Examples Lee Iacocca (Strategic Management) Mary Parker Follett (“management as the art of getting things done through people”) Peter Drucker (attempts to incorporate leadership into management) Don’t be fooled! - leadership (art) = strategic vision - management (science) = execution

Management Execution of a strategic direction Measurable Scientific Efficient Means to an end Bottom-line driven

Management Attainment of goals Effectively and efficiently Through: Planning Organizing Leading Controlling

Management Functions Planning Where the organization wants to go How to get there Long-term perspective

Management Functions Organizing How to execute “the plan” Allocation of resources Assignment of tasks Grouping of tasks into departments Updating management model - teams - specialties Self-management

Management Functions Leading Influence/motivate employees To achieve goals/objectives Shaping (uncertainty) - Strategic direction Positive vs. negative Communication and re-assessment are the keys to success

Management Functions Controlling Monitoring employee activities Determining if the organization is on target (feedback loop) Making corrections, as necessary Empowerment vs. autocracy Issue: Micro-management

Organizational Performance Effectiveness – degree to which objectives are efficiently achieved Efficiency – Resources “wisely” used to achieve goals/objectives Warning!!! Effectiveness vs. efficiency (multi-tasking vs. quality) Issue: competing needs/priorities (minimally manned ships) Issue: seduction of numbers

Organizational Performance High Performance Achievement of strategic goals/objectives Ambitious Realistic “Efficiency” the mark of a pro Continuing commitment to High Performance

Elements of Management Skills Conceptual Skill—see: Organization as a whole – Big Picture! Relationship between parts Human Skill—Ability to work with and through people (leadership) Technical Skill— Specific functions Specialized knowledge Warning!!! (donut glazers)

Manager’s Roles Informational (seek feedback) (roles; monitor, disseminator, spokesperson) Interpersonal (communication) (roles; figurehead, leader, liaison) Decisional (resolving conflict, priorities) (roles; entrepreneur, disturbance handler, resource allocator, negotiator)

The Decision Making Process Identifying a Problem Identifying Decision Criteria Allocating Weights to the Criteria Developing Alternatives Analyzing Alternatives Selecting an Alternative Implementing the Alternative Evaluating Decision Effectiveness

Decision-Making Significant responsibility - consider impact - consider implications Decision-Making models - “Assumption of Rationality” - “Bounded Rationality” - “Intuition”

Rationality Decision-Maker is objective and logical Problem is clear and unambiguous Single, well-defined goal All alternatives/consequences known Clear and constant preferences Maximum payoff Interest of the organization No time or cost restraints Encumbrances also rational (perhaps static)

Bounded Rationality Constraints imposed by organization Understanding of problem always simplified Limits to information Solution: satisficing (80% solution good enough!) Figure 2-8

Role of Intuition Subconscious decision-making based upon e xperience Complements rational analysis “Gut” vs. analysis

Decision-Making “Style” Problem Avoider (inactive) Problem Solver (reactive) Problem Seeker (proactive) Perspective: Rational vs. emotional Balance and appropriateness (N3 vs. N5)

Decision-Making Styles Directive; rational, efficient and logical. Low tolerance for ambiguity – thrives on consistency and order. Efficient and speedy DM. Poor use of analysis; yields good short- term decisions. Non-creative. Analytic; desire more data than “directive DM. Greater tolerance for ambiguity – considers decisions more carefully; better ability to adapt. More creative.

Decision-Making Styles (cont.) Conceptual; visionary, big picture thinkers. Very creative. Best at strategic (long term) problem solving. Behavioral; consensus seekers. Team oriented but conflict averse. Seeks acceptance rather than results. Good leaders (managers) will frequently utilize elements from all styles in a given situation.

Decision-Maker Styles Tolerance for Ambiguity High Low RationalIntuitive AnalyticConceptual DirectiveBehavioral

The Management Revolution Paradigm shifts - information age - “vertical” to “learning” organization Learning Organization - flat - team-led - stakeholders - empowerment