Chapter 1

Innovative Management
for a
Changing World

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

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.

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.)

The Four Functions of

Management
Planning

Controlling

Select goals
& ways to
attain them

Monitor
activities &
make
corrections

Leading
Use
influence to
motivate

Organizing
Assign
responsibility
for tasks

MANAGEMENT LEVELS AND

TIME SPENT ON FUNCTIONS
Plan. Organ.
Top
28%
36%
Middle 18%
33%
Lower 15%
24%

Lead. Control.
22%
14%
36%
13%
51%
10%

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.

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

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

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.

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.

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.

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)

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

Some Types of Changes

Impacting Organizations:
Products
Technologies
Markets
Speed Requirements
Management Techniques

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

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

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.

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.

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

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

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

The Hawthorne Studies

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

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)

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.

Behavioral Sciences Approach

= Applied Social Sciences
Study of human behavior in organizations
Draws on Disciplines of:
Economics
Psychology
Sociology
Communication
Anthropology

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

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

Total Quality Management

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