Innovative Management

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Chapter 1

• Innovative Management
• for a
• Changing World

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

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Management

• 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.

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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.)

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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
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MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS

• Plan. Organ. Lead.
  Control.
• Top 28 36 22 14
• Middle 18 33 36 13
• Lower 15 24 51 10

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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.

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Management Skills

• Conceptual Skills

Which level needs conceptual skills the most?
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Management Skills

• Human Skills

To what degree do various levels of management
need human skills? ALL need high degree.
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Management Skills
Least

• Technical Skills

More
Most
To what degree do the various levels need
technical skills?
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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 wouldnt do
• - Vent your frustrations
• - Resist change

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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

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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.

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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.

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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.

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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)

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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

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Some Types of Changes Impacting Organizations

• Products
• Technologies
• Markets
• Speed Requirements
• Management Techniques

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Pre-Classical Management

• Anything before about 1900
• e.g.,
• Attila the Hun
• Henry Towne

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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

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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.

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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.

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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 organizations mission

• Relatively High in Bureaucracy
• United Parcel Service
• U.S. Postal Service
• Relatively Low in Bureaucracy
• Hewlett-Packard
• Disney Studios

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Administrative Management - Henri Fayol

• 14 Principles
• Unity of command
• Division of work
• Unity of direction
• Scalar chain-of-command
• AuthorityResponsibility
• (etc.)

• Five basic management functions
• Planning
• Organizing
• Commanding
• Coordinating
• Controlling

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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

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The Hawthorne Studies

• Social Man
• Methodological Problems, but Profound Influence
  on Management Thought
• Hawthorne Effect
• Interviewing Techniques

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The Human Resources Perspective

• Jobs should be designed to allow workers to use
  their full potential
• Abraham Maslows Hierarchy of Needs (Ch. 12)
• Douglas McGregors Theory X vs. Theory Y
  (comparison of Classical Mgmt to Human Resources)

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• 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.

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Behavioral Sciences Approach Applied Social
Sciences

• Study of human behavior in organizations
• Draws on Disciplines of
• Economics
• Psychology
• Sociology
• Communication
• Anthropology

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Management Science Perspective

• Involves Mathematics, Computers
• Examples
• Forecasting
• Inventory control
• Scheduling
• Break-even analysis

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Total Quality Management

• Emphasizes Continuous Improvement in all
  Organizational Processes
• (i.e., in more than Manufacturing)

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What The 21st Century Executive Should Be Like

• Leader/Motivator
• Consummate Politician
• Master of Technology
• Global Strategist