chapter 1 organization and management G11

the world of innovative management

1. Chapter 1Chapter 1
The World of Innovative The World of Innovative
Management Management

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

3. ManagementManagement
The attainment of organizational goals in The attainment of organizational goals in
an effective and efficient manner through an effective and efficient manner through
planning, organizing, leadingplanning, organizing, leading, and , and
controllingcontrolling organizational resources organizational resources
OrganizationOrganization
A A formally structuredformally structured collection of collection of
individuals working toward individuals working toward common common
(shared) goals(shared) goals..

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

5. The Four Functions of The Four Functions of
ManagementManagement
PlanningPlanning
Select goals Select goals
& ways to & ways to
attain themattain them
OrganizingOrganizing
Assign Assign
responsibility responsibility
for tasksfor tasks
LeadingLeading
Use Use
influence to influence to
motivatemotivate
Controlling Controlling
Monitor Monitor
activities & activities &
make make
correctionscorrections

7. MANAGEMENT LEVELS AND MANAGEMENT LEVELS AND
TIME SPENT ON FUNCTIONSTIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.Plan. Organ. Lead. Control.
Top 28% 36% 22% 14%Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%Lower 15% 24% 51% 10%

8. Management SkillsManagement Skills
Conceptual Skills : cognitive ability to Conceptual Skills : cognitive ability to
see the organization as a whole and see the organization as a whole and
the relationship among its partsthe relationship among its parts
Human Skills : ability to work with Human Skills : ability to work with
and through other people and to and through other people and to
work effectively as a group memberwork effectively as a group member
Technical Skills : understanding of and Technical Skills : understanding of and
proficiency in the performance of proficiency in the performance of
specific tasks.specific tasks.

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

10. Supervisors’ ResponsibilitiesSupervisors’ Responsibilities
Plan and schedule workPlan and schedule work
Clarify tasks and Clarify tasks and
gather ideas for gather ideas for
improvementimprovement
Appraise and counsel Appraise and counsel
employeesemployees
Recommend job Recommend job
assignments and payassignments and pay
Inform employees of Inform employees of
organizational goalsorganizational goals
Inform higher Inform higher
managers of work managers of work
unit needs and unit needs and
accomplishmentsaccomplishments
Recruit, train, and Recruit, train, and
develop workersdevelop workers
Encourage and Encourage and
maintain high and maintain high and
enthusiasmenthusiasm

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

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

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

14. How Do You Learn How Do You Learn to Manageto Manage??
50% from job experience50% from job experience
30% from other persons30% from other persons
20% from education & training20% from education & training
(Based on study of successful managers at (Based on study of successful managers at
Honeywell)Honeywell)

15. Successful Managers’
Attributes
LeadershipLeadership
Team-Building SkillsTeam-Building Skills
Self-objectivitySelf-objectivity
Analytic ThinkingAnalytic Thinking
Creative ThinkingCreative Thinking
Behavioral FlexibilityBehavioral Flexibility
Oral CommunicationOral Communication
Written Written
CommunicationCommunication
Personal ImpactPersonal Impact
Resistance to StressResistance to Stress
Tolerance of Tolerance of
UncertaintyUncertainty

16. Some Types of Changes
Impacting Organizations:
ProductsProducts
TechnologiesTechnologies
Markets Markets
Speed RequirementsSpeed Requirements
Management TechniquesManagement Techniques

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

18. Classical PerspectiveClassical Perspective
Emphasized a Emphasized a rationalrational, , scientificscientific approach to study of approach to study of
management and sought to make workers and management and sought to make workers and
organizations like efficient operating machines organizations like efficient operating machines
Classical CategoriesClassical Categories
Scientific ManagementScientific Management
Frederick TaylorFrederick Taylor
Frank and Lillian GilbrethFrank and Lillian Gilbreth
Bureaucratic OrganizationsBureaucratic Organizations
Max WeberMax Weber
Administrative PrinciplesAdministrative Principles
Henri FayolHenri Fayol

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

20. Bureaucratic OrganizationsBureaucratic Organizations
Clearly defined authority and Clearly defined authority and
responsibilityresponsibility
Set procedures for each situationSet procedures for each situation
Goals of fairness and efficiencyGoals of fairness and efficiency
Separation of management and ownershipSeparation of management and ownership
i.e., run by professional mgrs.i.e., run by professional mgrs.

21. Bureaucratic OrganizationsBureaucratic Organizations
Become “dysfunctional” Become “dysfunctional”
when:when:
-There is no effort to -There is no effort to
recognize exceptions to recognize exceptions to
rules or to change rules rules or to change rules
when necessarywhen necessary
-Enforcement of rules -Enforcement of rules
takes precedence over takes precedence over
pursuit of the pursuit of the
organization’s missionorganization’s mission
Relatively Relatively HighHigh in in
Bureaucracy:Bureaucracy:
United Parcel ServiceUnited Parcel Service
U.S. Postal ServiceU.S. Postal Service
Relatively Relatively LowLow in in
Bureaucracy:Bureaucracy:
Hewlett-PackardHewlett-Packard
Disney StudiosDisney Studios

22. Administrative Management - Administrative Management -
Henri FayolHenri Fayol
14 Principles14 Principles
Unity of command Unity of command
Division of workDivision of work
Unity of directionUnity of direction
Scalar chain-of-commandScalar chain-of-command
Authority=ResponsibilityAuthority=Responsibility
(etc.)(etc.)
Five basic management Five basic management
functionsfunctions
PlanningPlanning
OrganizingOrganizing
CommandingCommanding
CoordinatingCoordinating
ControllingControlling

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

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

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

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

27. Behavioral Sciences Approach Behavioral Sciences Approach
= Applied Social Sciences= Applied Social Sciences
Study of human behavior in organizationsStudy of human behavior in organizations
Draws on Disciplines of:Draws on Disciplines of:
EconomicsEconomics
PsychologyPsychology
SociologySociology
Communication Communication
AnthropologyAnthropology

28. Management Science Management Science
PerspectivePerspective
Involves Mathematics, ComputersInvolves Mathematics, Computers
Examples:Examples:
ForecastingForecasting
Inventory controlInventory control
SchedulingScheduling
Break-even analysisBreak-even analysis

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

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