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VIII. INNOVATIVE MANAGEMENT THINKING FOR A CHANGING WORLD
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A. Contemporary Management Tools
1. Managers tend to look for fresh ideas to help them cope during difficult times.
Recent challenges such as the tough economy and volatile stock market,
environmental and organizational crises, lingering anxieties over war and terrorism,
B. Managing the Technology-Driven Workplace
a. Three popular recent trends that have shown some staying power are customer
relationship management, outsourcing, and supply chain management. Today, many
Spotlight on Skills: Contemporary Management Tools
Over the history of management, many fashions and fads have appeared. Critics argue that new
techniques may not represent permanent solutions. Others believe that managers adopt new
b. Customer relationship management (CRM) systems use the latest information
technology to keep in close touch with customers and to collect and manage large
amounts of customer data.
Innovative Management for a Changing World 17
IX. THE EVOLUTION OF MANAGEMENT THINKING
A. Managers are always on the lookout for fresh ideas, innovative management approaches,
and new tools and techniques. Management philosophies and organizational forms
change over time to meet new needs. The workplace of today is different from what it
X. MANAGEMENT AND ORGANIZATION
A. Management practices and perspectives vary in response to social, political, and
1. Social forces refer to those aspects of a culture that guide and influence relationships
2. Political forces refer to the influence of political and legal institutions on people and
3. Economic forces pertain to the availability, production, and distribution of resources
Exhibit 1.6: Management Perspectives over Time
XI. CLASSICAL PERSPECTIVE
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The Classical Perspective emerged during the nineteenth and early twentieth centuries,
A. Scientific Management
2. Frederick W. Taylor suggested that decisions based on rules of thumb and tradition be
3. Henry Gantt developed the Gantt Chart a bar graph that measures planned and
completed work along each stage of production by time elapsed.
5. The classical perspective failed to consider the social context and human needs.
Exhibit 1.7: Characteristics of Scientific Management
B. Bureaucratic Organizations
1. Max Weber introduced most of the concepts of bureaucratic organizations. This
2. The term bureaucracy has taken on a negative meaning in today’s organizations and
C. Administrative Principles
1. The administrative principles approach focused on the design and functioning of the
2. Henri Fayol discussed 14 general principles of management such as unity of
XII. HUMANISTIC PERSPECTIVE
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The Humanistic Perspective emphasized the importance of understanding human behaviors,
needs, and attitudes in the workplace, as well as social interactions and group processes.
A. Early Advocates
1. Mary Parker Follett stressed the importance of people rather than engineering
2. Chester Barnard argued that people have free will and can choose whether to follow
Discussion Question #9: Why do you think Mary Parker Follett’s ideas tended to be popular
with business people of her day but were ignored by management scholars? Why are her ideas
appreciated more today?
B. Human-Relations Movement
1. The human-relations movement was based on the idea that truly effective control
2. The Hawthorne Studies
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a. The Hawthorne studies were a series of experiments on worker productivity
b. Results suggested that positive treatment of employees improved their motivation
Discussion Question #10: Why can an event such as produced in the Hawthorne Studies be a
major turning point in the history of management even if the idea is later shown to be in error?
Discuss.
New Manager Self-Test: Evolution of Style
New managers typically view their world through one or more mental frames of reference. The
structural frame of reference sees the organization as a machine that can be economically
C. Human-Resources Perspective
1. The human-resources perspective maintained an interest in worker participation and
2. Jobs should be designed so that tasks are not perceived as dehumanizing or
demeaning, but instead allow workers to use their full potential.
a. Abraham Maslow’s hierarchy of needs started with physiological needs and
b. Douglas McGregor formulated Theory X and Theory Y, which describe two sets
of assumptions managers may hold about their employees. Managers with
Innovative Management for a Changing World 21
Exhibit 1.8: Theory X and Theory Y
C. Behavioral Sciences Approach
1. The behavioral sciences approach uses scientific methods and draws from
XIII. QUANTITATIVE PERSPECTIVE
The Management Science Perspective emerged as a result of the massive and complicated
XIV. RECENT HISTORICAL TRENDS
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A. Systems Thinking
1. Systems thinking is the ability to see both the distinct elements of a system or
situation and the complex and changing interaction among those elements. A system
Exhibit 1.9: Systems Thinking and Circles of Causality
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B. Contingency View
1. The contingency view tells us that what works in one setting might not work in
C. Total Quality Management
2. Total Quality Management (TQM) was developed by W. Edwards Deming, the
“father of the quality movement.” TQM focuses on managing the total organization
to deliver quality to customers and helped managers deal with global competition.
TQM includes four significant elements:
a. employee involvementcompanywide participation in quality control;
3. Six Sigma is a quality standard that specifies a goal of no more than 3.4 defects per
ANSWERS TO DISCUSSION QUESTIONS
1. How do you feel about having a manager’s responsibility in today’s world characterized by
uncertainty, ambiguity, and sudden changes or threats from the environment? Describe some
skills and qualities that are important to managers under these conditions.
Students’ responses will vary, but they should understand that even with the high levels of
uncertainty, ambiguity, and sudden changes or threats present in today’s environment, managers
2. Assume you are a project manager at a biotechnology company, working with managers
from research, production, and marketing on a major product modification. You notice that
every memo you receive from the marketing manager has been copied to senior management.
At every company function he spends time talking to the big shots. You are also aware that
sometimes when you and the other project members are slaving away over the project, he is
playing golf with senior managers. What is your evaluation of his behavior? As project
manager, what do you do?
The marketing manager seems to want to move up the management hierarchy as quickly as
possible. There are two behaviors illustrating this desire. Sending copies of memos to senior
3. Jeff Immelt of GE said that the most valuable thing he learned in business school was that
“there are 24 hours in a day, and you can use all of them.” Do you agree or disagree?
What are some of the advantages to this approach to being a manager? What are some of
the drawbacks?
Students’ opinions on this will vary. Immelt seems to be suggesting that many managers waste
4. Why do some organizations seem to have a new CEO every year or two, whereas others have
top leaders who stay with the company for many years (e.g., Jack Welch’s 20 years as CEO
at General Electric)? What factors about the manager or about the company might account
for this difference?
Today’s firms are challenged by continuous change and chaos, and compete in a dynamic
5. Think about Toyota’s highly publicized safety problems. One observer said that a goal of
efficiency had taken precedence over a goal of quality within Toyota. Do you think
managers can improve both efficiency and effectiveness simultaneously? Discuss. How do
you think Toyota’s leaders should respond to the safety situation?
Managers can and should improve both efficiency and effectiveness simultaneously. One of any
6. You are a bright, hard-working entry-level manager who fully intends to rise up through the
ranks. Your performance evaluation gives you high marks for your technical skills but low
marks when it comes to people skills. Do you think people skills can be learned, or do you
need to rethink your career path? If people skills can be learned, how would you go about
it?
Although some people seem to be naturally more adept at people skills, just as some are
7. If managerial work is characterized by variety, fragmentation, and brevity, how do managers
perform basic management functions such as planning, which would seem to require
reflection and analysis?
Planning is not necessarily a solitary, reflective activity, although there are certainly times when
such focused planning is important. Many managers do their planning intuitively during the
8. How might the teaching of a management course be designed to help people make the
transition from individual performer to manager in order to prepare them for the challenges
they will face as new managers?
Management courses can be designed to emphasize the use of technology, the importance of
9. Why do you think Mary Parker Follett’s ideas tended to be popular with business people of
her day but were ignored by management scholars? Why are her ideas appreciated more
today?
Mary Parker Follett stressed the importance of people rather than engineering techniques. She
10. Why can an event such as the Hawthorne Studies be a major turning point in the history of
management even if the idea is later shown to be in error? Discuss.
Despite the inaccurate interpretation of the data, the findings provided the impetus for the human
TEACHING NOTES FOR LEARNING EXERCISES
Self-Learning: Security or Autonomy
Group Learning: Your Best and Worst Managers
This exercise asks students to write down a few sentences describing two managers they have
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Action Learning
TEACHING NOTES FOR ETHICAL DILEMMA
Can Management Afford to Look the Other Way?
1. Ignore the problem. Jacobs contributions to new product development are too valuable to
risk losing him, and the problems over the past 10 years have always worked themselves out
anyway. No sense starting something that could make you look bad.
2. Launch a full-scale investigation of employee complaints about Jacobs, and make Jacobs
aware that the documented history over the past ten years has put him on thin ice.
3. Meet with Jacobs and the employee to try to resolve the current issue, then start working
with Sally Barton and other senior managers to develop stronger policies regarding sexual
harassment and treatment of employees, including clear-cut procedures for handling
complaints.
Option 3 is probably the most expedient way to deal with the current problem as well as to
CASE FOR CRITICAL ANALYSIS
Elektra Products, Inc.
1. How might top management have done a better job changing Elektra Products into a new
kind of organization? What might they do now to get the empowerment process back on
track?
Top management could have done a better job by introducing the planning for change very
carefully and deliberately. A suggestion would be to have lower-level management and
Innovative Management for a Changing World 27
employees participate in the formulation and discussion of the merits of creating a learning
organization.
2. Can you think of ways Barbara could have avoided the problems her team faced in the
meeting with department heads?
Barbara Russell could have avoided the problems her team faced in meeting with department
3. If you were Barbara Russell, what would you do now? Why?
The best solution is for Barbara Russell to confront Martin about her sincerity in making
ON THE JOB VIDEO CASE
Camp Bow Wow: Innovative Management for a Changing World
1. List the three broad management skill categories and explain which skills are needed most for
each of the Camp Bow Wow leaders highlighted in the video.
Three general categories of management skills are conceptual skills, human skills, and technical
skills. Conceptual skill, which is the most important skill category for top managers, is the
2. Which activities at Camp Bow Wow require high efficiency? Which activities require high
effectiveness?
Effectiveness is the degree to which the organization achieves a stated goal; efficiency refers to
the amount of resources used to achieve an organizational goal. A high-performance company is
3. List two activities that leaders at Camp Bow Wow perform daily, and identify which of the ten
managerial roles discussed in the chapter figure prominently for each.
Candace Stathis performs the interpersonal roles of figurehead and liaison whenever she meets
BIZ FLIX VIDEO CASE
In Good Company
Innovative Management for a Changing World 29
Video Case Synopsis
A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss
Video Case Discussion Questions and Suggested Answers
1. Which management skills discussed in this chapter does Mark Steckle possess? Which does
he lack?
2. The sequence shows three people who represent different hierarchical levels in the company.
Which hierarchical levels do you attribute to Carter Duryea, Dan Foreman, and Mark
Steckle?
3. Critique the behavior shown in the sequence. What are the positive and negative aspects of
the behavior shown?