Session 1: Innovation for Turbulent Times Session 1: Innovation for Turbulent Times

Management in Turbulent Times Management in Turbulent Times

Learning Objectives What is management? Organization? What is management? Organization? What are the skills managers need? What roles do managers perform? What management competencies are needed today? How is leadership viewed today? What current and historical forces shaping management today? Describe the general and task environments and the dimensions of each. Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment. Define corporate culture and give organizational examples. Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture. 4/24/2017

Definition of Management The attainment of organizational goals in an effective and efficient manner through Four functions planning, organizing, leading, and controlling organizational resources. Managers use a multitude of skills to perform functions 4/24/2017

Organizational Performance Attainment of organizational goals in an efficient and effective manner 4/24/2017 The Process of Management

Organizational Performance Organization - social entity that is goal directed and deliberately structured Effectiveness - degree to which organization achieves a stated goal Efficiency - use of minimal resources (raw materials, money, and people) to produce the desired volume of output Performance – organization’s ability to attain its goals by using resources in an efficient and effective manner 4/24/2017

Managerial Levels in the Organizational Hierarchy 4/24/2017

Management Skills Exhibit 1.2 4/24/2017

Management Skills Conceptual Skills – Cognitive ability to see the organization as a whole and the relationships among its parts Human Skills – ability to work with and through other people and to work effectively as a group member Technical Skills – understanding of and proficiency in the performance of specific tasks 4/24/2017

Functions of Management Planning Leading Controlling Organizing Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections 4/24/2017

Planning Function Defines goals for future organizational performance Defines goals for future organizational performance Decides tasks and use of resources needed 4/24/2017

Organizing Function Follows planning Follows planning Reflects how organization accomplish plan Involves assignment of: tasks into departments authority and allocation of resources across organization 4/24/2017

Leading Function The use of influence to motivate employees to achieve the organization’s goals. 4/24/2017

Controlling Function Monitoring employees’ activities Monitoring employees’ activities Determining whether the organization is on target toward its goals Making corrections as necessary 4/24/2017

Controlling Function - Trends Empowerment and trust of employees = training employees to monitor and correct themselves New information technology provides control without strict top-down constraints Lack of control can lead to organizational failure 4/24/2017

The Leap From Individual Performer to Manager Exhibit 1.4 4/24/2017

What is it like to be a Manager? Manager Activities Adventures in Multitasking Life on Speed Dial Manager’s Role Set of expectations for one’s behavior Diverse activities --10 roles 4/24/2017

Ten Manager Roles Category Role Informational Monitor Disseminator Category Role Informational Monitor Disseminator Spokesperson Interpersonal Figurehead Leader Liaison Decisional Entrepreneur Disturbance handler Resource allocator Negotiator 4/24/2017

Management and the New Workplace Forces on organizations Technology Outsourcing Diversity New Management Competencies Dispersed leadership Empowering others Collaborative relationships Team-building skills Learning organization 4/24/2017

Managing During Turbulent Times Stay Calm Be Visible Put People Before Business Tell the Truth Know When to Get Back to Business 4/24/2017

Managing the Technology-Driven Workplace E-business E-commerce Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C) Innovation in the Workplace Enterprise resource planning (ERP) Customer Relationship Management (CRM) Knowledge Management 4/24/2017

How do these forces influence organizations and management? Influential Forces How do these forces influence organizations and management? Social Forces Political Forces Economic Forces 4/24/2017

Historical Context Classical Perspective Scientific Management Efficiency is Everything Administrative Principle Human Resource Perspective Worker Participation Considerate Leadership Behavioral Sciences Approach Humanistic Management Understand Employee Behavior 4/24/2017

Organizational Environment Organizational Environment All elements existing outside the boundary of the organization that have the potential to affect the organization 4/24/2017

Organizational Environments Exhibit 2.1 4/24/2017

International Dimension International Dimension Portion of the external environment that represents events originating in foreign countries as well as opportunities for Home companies in other countries. 4/24/2017

Technological Dimension Scientific and technological advances Specific industries Society at large Impact Competition Relationship with Customers Medical advances Nanotechnology advances 4/24/2017

Socio-Cultural Dimension Socio-Cultural Dimension Demographic characteristics of the general population Norms Customs Values Examples: Increased globalization/diversity Longer stay in workforce Growing number of single-father households Number of married households decreased 4/24/2017

Economic Dimension Economic health Recent Trends Economic Dimension Economic health Consumer purchasing power Unemployment rate Interest rates Recent Trends Frequency of mergers and acquisitions Small business sector vitality 4/24/2017

Legal-Political Dimension Dimension of the general environment that includes federal, state, and local government regulations and political activities designed to influence company behavior. Pressure Groups – interest group that works within the legal-political framework to influence companies to behave in socially responsible ways. 4/24/2017

Task Environment Sectors that have a direct working relationship with the organization Customers Competitors Suppliers Labor Market 4/24/2017

Labor Market Forces Labor Market Forces Affecting Organizations today Labor Market Forces Labor Market Forces Affecting Organizations today Growing need for computer literate information technology workers Necessity for ongoing investment in human resources – recruitment, education, training Effects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations 4/24/2017

External Environment and Uncertainty External Environment and Uncertainty 4/24/2017 Exhibit 2.3

Culture The set of key values, beliefs, understandings, and norms that members of an organization share. 4/24/2017

Levels of Corporate Culture Levels of Corporate Culture Culture that can be seen at the surface level Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies Invisible 2. Expressed values 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Deeper values and shared understandings held by organization members 4/24/2017 Exhibit 2.5

Visible Manifestations Symbols Stories Heroes Slogans Ceremonies 4/24/2017

Environment and Culture A big influence on internal corporate culture is the external environment Cultures can vary widely across organizations Organizations within same industry reveal similar cultural characteristics 4/24/2017

Features of Contemporary Management Culture Features of Contemporary Management Culture Strategic Planning Re-Engineering Bench-Marking Creative Destruction Market Orientation TQM Involvement Culture 4/24/2017

High-Performance Culture Based on a solid organizational mission or purpose Embodies shared adaptive values that guide decisions and business practices Encourages individual employee ownership of both bottom-line results and the organization’s cultural backbone 4/24/2017

Combining Culture and Performance 4/24/2017 Exhibit 2.6

Cultural Leadership Articulates a vision that employees can believe in Cultural Leadership Articulates a vision that employees can believe in Communicates values Values are tied to a clear and compelling mission, or core purpose Heeds the day-to-day activities that reinforce the cultural vision Work procedures and reward systems match and reinforce the values 4/24/2017