1. Innovative Management for a Changing World
Chapter 1
Innovative Management
for a
Changing World 1

2. Not adapting to Environmental Changes
What do Beaunit Mills, Hercules Powder, and Liebmann Breweries have in common?
On 1st Fortune List (1955)
They Don’t Exist Today
“BAD Management”
Not “Keeping up the Good Work”
Not adapting to Environmental Changes 1

3. Management Organization
The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
Organization
A formally structured collection of individuals working toward common (shared) goals. 2

4. Organizational Performance
Effectiveness : the degree to which the organization achieves a stated goal
Efficiency : the use of minimal resources (input) to produce a desired volume of output.
Efficient, but not Effective:
- Goals not achieved
Effective, but not Efficient
- Wasted Resources
(You may have to choose between the two.) 8

5. The Four Functions of Management
Planning Select goals & ways to attain them
Controlling Monitor activities & make corrections
Organizing Assign responsibility for tasks
Leading Use influence to motivate 6

7. MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.
Top % % % %
Middle 18% % % %
Lower % % % %

8. Management Skills
Conceptual Skills : cognitive ability to see the organization as a whole and the relationship 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. 11

9. What Is It Like to Be a Manager?
Managerial Activities
- Long hours
- Most time spent in oral communication
- Characterized by variety, fragmentation, and brevity
- Fast paced and require a high energy level to be successful
Managers give up the right to:
- Be one of the gang
- Put your self-interest first
- Ask others to do things you wouldn’t do
- Vent your frustrations
- Resist change 19

10. Supervisors’ Responsibilities
Plan and schedule work
Clarify tasks and gather ideas for improvement
Appraise and counsel employees
Recommend job assignments and pay
Inform employees of organizational goals
Inform higher managers of work unit needs and accomplishments
Recruit, train, and develop workers
Encourage and maintain high and enthusiasm

11. Informational Roles to develop and maintain information network
The monitor seeks current information from many sources.
The disseminator transmits information to others both inside and outside the organization.
The spokesperson provides official statements to people outside the organization about company policies, actions, or plans. 20

12. Interpersonal Roles pertain to relationships with others
The figurehead engages in ceremonial activities
The leader motivates, communicates, and influences subordinates.
The liaison develops relationships outside his/her unit both inside and outside the organization. 21

13. Decisional Roles to make choices requiring conceptual & human skills.
The entrepreneur initiates change.
The resource allocator allocates resources to achieve outcomes.
The negotiator bargains for his/her unit.
The disturbance handler resolves conflicts. 22

14. How Do You Learn to Manage?
50% from job experience
30% from other persons
20% from education & training
(Based on study of successful managers at Honeywell)

15. Successful Managers’ Attributes
Leadership
Team-Building Skills
Self-objectivity
Analytic Thinking
Creative Thinking
Behavioral Flexibility
Oral Communication
Written Communication
Personal Impact
Resistance to Stress
Tolerance of Uncertainty

16. Some Types of Changes Impacting Organizations:
Products
Technologies
Markets
Speed Requirements
Management Techniques 24

17. Pre-Classical Management
Anything before about 1900:
e.g.,
Attila the Hun
Henry Towne 3

18. Classical Perspective
Emphasized a rational, scientific approach to study of management and sought to make workers and organizations like efficient operating machines
Classical Categories
Scientific Management
Frederick Taylor
Frank and Lillian Gilbreth
Bureaucratic Organizations
Max Weber
Administrative Principles
Henri Fayol 3

19. Scientific Management
Develop a standard method for performing each job
Select appropriate workers
Train workers in standard method
Plan work and eliminate interruptions
Provide incentives for increased output. 4

20. Bureaucratic Organizations
Clearly defined authority and responsibility
Set procedures for each situation
Goals of fairness and efficiency
Separation of management and ownership
i.e., run by professional mgrs. 6

21. Bureaucratic Organizations
Become “dysfunctional” when:
-There is no effort to recognize exceptions to rules or to change rules when necessary
-Enforcement of rules takes precedence over pursuit of the organization’s mission
Relatively High in Bureaucracy:
United Parcel Service
U.S. Postal Service
Relatively Low in Bureaucracy:
Hewlett-Packard
Disney Studios 6

22. Administrative Management - Henri Fayol
14 Principles
Unity of command
Division of work
Unity of direction
Scalar chain-of-command
Authority=Responsibility
(etc.)
Five basic management functions
Planning
Organizing
Commanding
Coordinating
Controlling 9

23. Humanistic Perspective
Emphasizes enlightened treatment of workers and power sharing between managers and employees.
Emphasized satisfaction of employees’ social/psychological needs as the key to increased worker productivity.
Supported by Hawthorne Studies 12

24. The Hawthorne Studies “Social Man”
Methodological Problems, but Profound Influence on Management Thought
“Hawthorne Effect”
Interviewing Techniques 14

25. The Human Resources Perspective
Jobs should be designed to allow workers to use their full potential
Abraham Maslow’s Hierarchy of Needs (Ch. 12)
Douglas McGregor’s Theory X vs. Theory Y (comparison of Classical Mgmt to Human Resources) 17

26. Theory Y (Human Resources):
Theory X (Classical):
People dislike work and prefer to be directed
Must be coerced to work
Want to avoid responsibility and have little ambition
Want security above everything
Theory Y (Human Resources):
People will accept responsibility
Have intellect that could be applied to organizational goals
Only partially use their intellectual potential. 19

27. Behavioral Sciences Approach = Applied Social Sciences
Study of human behavior in organizations
Draws on Disciplines of:
Economics
Psychology
Sociology
Communication
Anthropology 21

28. Management Science Perspective
Involves Mathematics, Computers
Examples:
Forecasting
Inventory control
Scheduling
Break-even analysis 22

29. Contemporary Approaches
Systems Theory
How the parts fit together (“Synergy” is a key concept)
How the org. interacts with its environment
Understanding systems requires Conceptual Skills
Contingency View
Integrates many of the other viewpoints
“No one best way to manage - the best way depends on the situation” 23

30. Total Quality Management
Emphasizes Continuous Improvement in all Organizational Processes
(i.e., in more than Manufacturing) 26