level of managers

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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 1stFortune 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 inan effective and efficient manner throughplanning, organizing, leading, andcontrollingorganizational resources

    Organization

    A formally structured collection ofindividuals working toward common(shared) goals.

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    Organizational Performance

    Effectiveness : the degree to which theorganization 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

    PlanningSelect goals

    & ways to

    attain themOrganizing

    Assign

    responsibility

    for tasks

    Leading

    Use

    influence to

    motivate

    Control l ing

    Monitor

    activities &

    make

    corrections

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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 partsHuman 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 CEO

    VP VP VP

    Mgr

    Mgr Mgr

    Mgr Mgr

    Op Op OpOp Op

    Which level needsconceptual ski l ls the

    mos t?

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    Management Skills

    Human Skills CEO

    VP VP VP

    Mgr

    Mgr Mgr

    Mgr Mgr

    Op Op OpOp Op

    To what degree do variouslevels of management

    need human ski lls?

    ALL need h igh degree.

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    Management Skills

    Technical Skills CEO

    VP VP VP

    Mgr

    Mgr Mgr

    Mgr Mgr

    Op Op OpOp Op

    Least

    To what degree do the

    various levels need

    techn ical sk i l ls?

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    What Is It Like to Be a

    Manager?

    Managerial Activities

    - Long hours

    - Most time spent in oralcommunication

    - Characterized by variety,

    fragmentation, and brevity

    - Fast paced and require ahigh 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 schedulework

    Clarify tasks and

    gather ideas forimprovement

    Appraise and counsel

    employees

    Recommend job

    assignments and pay

    Inform employees oforganizational goals

    Inform highermanagers of workunit needs andaccomplishments

    Recruit, train, anddevelop workers

    Encourage andmaintain high andenthusiasm

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    I nformational Roles to develop and

    maintain information network

    Themoni torseeks current information from

    many sources.

    The disseminatortransmits information to othersboth inside and outside the organization.

    Thespokesperson provides official statements to

    people outside the organization about company

    policies, actions, or plans.

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    I nterpersonal Roles pertain to

    relationships with others

    The figureheadengages in ceremonial

    activities

    Theleadermotivates, communicates,

    and influences subordinates.

    The liaison develops relationships

    outside his/her unit both inside andoutside the organization.

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    Decisional Roles tomake choices

    requiring conceptual & human skills.

    The entrepreneur initiates change.

    The resource allocatorallocates resources

    to achieve outcomes.

    Thenegotiator 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 atHoneywell)

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    Successful Managers

    Attributes

    Leadership

    Team-Building Skills

    Self-objectivity

    Analytic Thinking

    Creative Thinking

    Behavioral Flexibility

    Oral Communication

    Written

    CommunicationPersonal Impact

    Resistance to Stress

    Tolerance ofUncertainty

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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 PerspectiveEmphasized a rational, scientific approach to study of

    management and sought to make workers and

    organizations like efficient operating machines

    Classical Categories

    Scientific ManagementFrederick 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 overpursuit of the

    organizations mission

    Relatively High in

    Bureaucracy:

    United Parcel ServiceU.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 workUnity of direction

    Scalar chain-of-command

    Authority=Responsibility

    (etc.)

    Five basic management

    functions

    PlanningOrganizing

    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 toHuman Resources)

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    Theory X

    (Classical):People dislike work and

    prefer to be directed

    Must be coerced towork

    Want to avoidresponsibility andhave little ambition

    Want security aboveeverything

    Theory Y (Human

    Resources):

    People will accept

    responsibility

    Have intellect thatcould be applied to

    organizational goals

    Only partially use theirintellectual 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)

    21 C

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    What The 21st Century

    Executive Should Be Like

    Leader/Motivator

    Consummate Politician

    Master of Technology

    Global Strategist