Chapter 1

Introduction to Management:

Innovative Management for a Changing World

By C. Christopher Lee, Ph.D.

Management 4 major functions in management (Daft, 2013):

PlanningOrganizingLeadingControlling

Planning = setting a goal(s); formulating strategies to accomplish the goal(s)

Organizing = getting resources (people, money, equipment, etc.), allocating the resources to accomplish the goal(s)

Leading = leadership; motivating, engaging, inspiring people to work hard, become more productive

Controlling = performance evaluation; improving the whole organization

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Effectiveness, Efficiency & Profitability

Effectiveness: achieving goal; goal-oriented Efficiency: productivity; output/input Profitability: bottom-line Efficiency is closer to the profitability than

effectiveness; that’s why biz org cares about efficiency more than effectiveness.

Non-profit org (= charity, university, high school, Red Cross, etc.) may value effectiveness more than efficiency.

Most time, efficiency and effectiveness go along, but not always. Some organization may be effective but not efficient, vice versa.

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Management (Daft, 2013)

Performing the four functions (planning, organizing, leading, controlling) effectively and efficiently

Exam:Part 1: Textbook review

True/false, multiple choiceRandomly selected from the test bank

Part 2: Class discussionShort essay questions from lecture,

handouts4

• Innovation is the new imperative.• Organizations cannot survive long-term without

innovation.• Companies like Facebook are always investing in

new ideas.• Innovation should be part of products, processes,

people, and values.• Case in point: IBM – changing from HW/SW to

service

Why Innovative Management Matters

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Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources:

Managers get things done through the organization.

Managers create right systems and environment.

Organizations need good managers.

The Definition of Management

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• Identifying goals for future organizational performance;

• Deciding on the tasks and use of resources needed to be in the future Action Plan

• Setting a goal Measurable goal• Formulating strategies to achieve the goal• DQ: What is the strategy?

– Plan/way to create an opportunity to gain the competitive advantage, in order to achieve the goal

Planning

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• Typically follows planning.• Reflects how the organization tries to accomplish

the plan• Assign tasks• Group tasks into departments• Delegate authority• Allocate resources across the organization• Hiring right people to right task, & terminating

employment

Organizing

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• Use of influence to motivate employees to achieve organizational goals

• Create a shared culture and values• Communicate goals to people throughout the

organization• Infuse employees with the desire to perform at a

high level Inspiring employees

Leading - Leadership

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• Monitor employees’ activities• Determine whether the organization is on target

toward its goals• Make corrections as necessary• Evaluate the performance• Help improve the performance Good Manager!

Controlling

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What Do Managers Do? (Murray, 2010)

The Process of Management

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• An organization = a social entity that is goal directed and deliberately structured

• Organizational effectiveness – providing a product or service that customers value achieving an goal

• Organizational efficiency refers to the amount of resources used to achieve an organizational goal; ≈ Productivity = Output / Input

• High Performance – The ability to attain its goals by using resources efficiently & effectively

Organizational Performance

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Efficiency & Profitability

• Three categories of skills: (1) conceptual, (2) human, (3) technical

• The degree of the skills may vary, but all managers must possess the skills

• The application of management skills change as managers move up the hierarchy

Management Skills

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Relationship of Skills to Management

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3 Kinds of Managers

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

1.Supervisor (first line manager, operational manager)

2.Manager (middle manager, Director)

3.Executive (top management, VP, President, CEO)

• Missteps and unethical behavior have been in the news

• During turbulent times, managers must apply their skills

• Common management failures:– Not listening to customers– Misinterpreting signals from marketplace– Not building teams– Inability to execute strategies– Failure to comprehend and adapt to change– Poor communication (#1 reason), and interpersonal

skills

When Skills Fail

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Top Causes of Manager Failure (Logenecker, Neubert & Fink, 2007)

• Top managers are responsible for the entire organization – CEO, President; executives

• Middle managers are responsible for business units; directors

• Project managers: Responsible for misinterpreting signals

• First-line managers (supervisors) are responsible for production of goods and services

Management Types: Vertical Differences

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• Functional Managers are responsible for departments that perform specific tasks

• General Managers are responsible for several departments

Management Types: Horizontal Differences

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Management Levels (Bonoma & Lawler, 1988)

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• Organizations often promote star performers to management

• Becoming a manager is a transformation– Move from being a doer to a coordinator

• Many new managers expect more freedom to make changes Not happens all the time.

• Successful managers build teams and networks• Many make the transformation “trial by fire”• DQ: Why doesn’t a star QB always become a

great coach?

Making The Leap: Becoming A New Manager

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From Individual Performer to Manager (Hill, 2002)

The increased workload

The challenge of supervising former peers

The headache of responsibility for other people

Being caught in the middle

Make more money

Creating opportunity to make change/difference

Respect, honor

Do You Really Want to Be A Manager?

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Adventures in multitasking– Activity characterized by variety, fragmentation, and

brevity– Less than nine minutes on most activities– Managers shift gears quickly– Truly Professional!

Life on speed dial– Work at unrelenting pace– Interrupted by disturbances– Always working (catching up)

Manager Activities

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• A role is a set of expectations for a manager’s behavior.

• Every role undertaken by a manager accomplishes the 4 functions of: Planning, Organizing, Leading, Controlling

• Manager roles are important to understand, but they are not discrete activities.

• Management can’t be practiced as independent parts.

• Managers need time to plan and think

Manager Roles

Ten Manager Roles

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Informational Monitor

Disseminator

Spokesperson

Interpersonal Figurehead

Leader

Liaison

Decisional Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Hierarchical Levels and Importance of Roles [Krout, Pedigo, McKenna, & Dunnette, 1989]

Small businesses are growing– Inadequate management skills is a threat.– The roles for small business managers differ.– Entrepreneurs must promote the business.

Nonprofits need management talent– Apply the four functions of management to make

social impact.– More focus on costs.– Need to measure intangibles like “improving public

health.”

Managing in Small Business and Nonprofit Organizations

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• Rapid environmental shifts:– Technology– Globalization– Shifting social values

• In the new workplace, work is free-flowing and flexible at flatter structures.

• Success depends on innovation and continuous improvement

Innovative Management forthe New Workplace

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Transition to a New Workplace

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State-of-the-Art MGMT Competencies for Today’s World

• Collaboration across functions, levels, customers, and companies

• Experimentation and learning are key values

• Knowledge and information sharing

New Management Competencies

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More challenges and changes are on the horizon! This is an exciting time in management.