Management Chapter 1 Homework Management The Attainment Organizational Goals Effective

CHAPTER 1

INNOVATIVE MANAGEMENT FOR A CHANGING WORLD

CHAPTER OUTLINE

Are You Ready to Be a Manager?

I. Why Innovative Management Matters

II. The Definition of Management

III. Organizational Performance

IV. Management Skills

A. When Skills Fail

V. What Is It Like to Be a Manager?

A. Making the Leap: Becoming a New Manager

B. Manager Activities

C. Manager Roles

VI. Managing in Small Business and Nonprofit Organizations

VII. Innovative Management for the New Workplace

A. Turbulent Forces

B. New Workplace Characteristics

B. New Management Competencies

VIII. Innovative Management Thinking for a Changing World

A. Contemporary Management Tools

B. Managing the Technology-Driven Workplace

IX. The Evolution of Management Thinking

X. Management and Organization

XI. Classical Perspective

A. Scientific Management

C. Administrative Principles

XII. Humanistic Perspective

A. Early Advocates

B. Human-Relations Movement

C. Human-Resources Perspective

D. Behavioral Sciences Approach

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XIII. Quantitative Perspective

XIV. Recent Historical Trends

A. Systems Thinking

B. Contingency View

C. Total Quality Management

ANNOTATED LEARNING OBJECTIVES

After studying this chapter, students should be able to:

1. Explain the difference between efficiency and effectiveness, and discuss their importance for

organizational performance.

Organizational effectiveness is the degree to which the organization achieves a stated goal, or

succeeds in accomplishing what it tries to do. Organizational efficiency refers to the amount of

2. Define ten roles that managers perform in organizations.

A role is a set of expectations for a manager’s behavior. The ten roles are divided into three

categories: informational, interpersonal, and decisional.

• Informational roles include the functions used to maintain and develop an information

network.

3. Appreciate the manager’s role in small businesses and nonprofit organizations.

Managers in small businesses tend to emphasize roles that are different from those of managers

in large corporations. Managers in small companies often see their most important role as that of

4. Understand the personal challenges involved in becoming a new manager.

Becoming a new manager requires a profound transformation in the way a person thinks of

5. Discuss turbulent forces that require a new workplace and the innovative management

competencies needed to deal with today’s environment.

Globalization, diversity, and increased competition are changing both the nature of managerial

work and the paths to career advancement. In the new paradigm, the primary responsibility of

management is to create learning capability throughout the organization. Rapid environmental

6. Know the difference between the new-style and the old-style manager.

Managers must rethink their approach to organizing, directing, and motivating employees.

Today’s best managers give up “management-by-keeping-tabs” mindset and focus instead on

7. Understand how historical forces influence the practice of management.

Social forces refer to those aspects of a culture that guide and influence relationships among

people. These forces shape what is known as the social contract, which refers to the unwritten,

common rules and perceptions about relationships among people and between employees and

management. A significant social force today is represented by the changing attitudes, ideas, and

8. Identify and explain major developments in the history of management thought.

Major developments in the history of management thought include the following concepts.

The Classical Perspective, which emerged in the late nineteenth century, emphasized a

9. Describe the major components of the classical and humanistic management perspectives.

The major components of the classical perspective include scientific management, bureaucratic

organizations, and administrative principles. Scientific management emphasized scientifically

determined changes in management practices as the solution to improving labor productivity.

10. Explain the major concepts of the contingency view and total quality management.

The contingency view tells us that what works in one setting might not work in another. One

important contingency is the industry in which the organization operates. When managers learn

to identify important patterns and characteristics of their organizations, they can then fit solutions

to those characteristics.

6 • Chapter 1

ANNOTATED LECTURE OUTLINE

Are You Ready to Be a Manager?

Welcome to the world of management. Are you ready for it? This questionnaire will helps

students see whether their priorities align with the demands placed on today’s managers.

New Manager Self-Test: Manager Achievement Test

A manager is a generalist who gets things done through others. A desire to be a winner may

cause you to compete with your people rather than develop their skills. Managers will not

INTRODUCTION

Many new managers expect to have power, to be in control, and to be personally responsible for

departmental outcomes. A big surprise for many people when they first step into a management

role is that they are much less in control of things than they expected. Managers are dependent

on subordinates more than vice-versa because they are evaluated on the work of other people

rather than on their own work. In a world of rapid change, unexpected events, and uncertainty,

organizations need managers who can build networks and pull people together toward common

goals.

In the past, many managers did exercise tight control over employees. But the field of

management is undergoing a revolution that asks managers to do more with less, to engage

whole employees, to see change rather than stability as natural, and to inspire vision and cultural

values that allow people to create a truly collaborative and productive workplace. In today’s

work environment, managers rely less on command and control and more on coordination and

communication. This approach differs significantly from a traditional mind-set that emphasizes

tight top-down control, employee separation and specialization, and management by impersonal

measurement and analysis.

Innovative Management for a Changing World • 7

I. WHY INNOVATIVE MANAGEMENT MATTERS

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Innovations in products, services, management systems, production processes,

corporate values, and other aspects of the organization are what keep companies

II. THE DEFINITION OF MANAGEMENT

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

Exhibit 1.1: The Process of Management

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A. Management is the attainment of organizational goals in an effective and efficient

manner through planning, organizing, leading, and controlling organizational resources.

There are two important ideas in this definition:

1. The four functions of management.

a. Planning: selecting goals and ways to attain them

2. The attainment of organizational goals in an efficient and effective manner

III. ORGANIZATIONAL PERFORMANCE

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. An organization is a social entity that is goal directed and deliberately structured. Social

entity means being made up of two or more people. Goal directed means the

B. The manager’s responsibility is to coordinate resources in an effective and efficient

manner to accomplish the organization’s goals.

1. Organizational effectiveness is the degree to which the organization achieves a stated

goal, or succeeds in accomplishing what it tries to do.

2. Organizational efficiency refers to the amount of resources used to achieve an

C. The ultimate responsibility of managers is to achieve high performance, which is the

organization’s ability to attain its goals by using resources in an efficient and effective

manner.

IV. MANAGEMENT SKILLS

A. When Skills Fail

2. Managers have complex jobs that require a range of abilities and skills, including

conceptual, human, and technical.

3. The two major reasons managers fail are poor communication and poor interpersonal

skills.

Discussion Question #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.

Discussion Question #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

Business Blooper: Leslie Singer, Inc.

Designer Leslie Singer started her own accessory line, Leslie Singer, using imaginative

psychedelic images that were inspired by the pattern-heavy models of Burberry. Her unique

designs were noticed by designers and loved by consumers. She started to do trunk shows and

10 • Chapter 1

Exhibit 1.2: Relationship of Conceptual, Human, and Technical Skills to Management

V. WHAT IS IT LIKE TO BE A MANAGER?

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Making The Leap: Becoming a New Manager

1. Becoming a manager involves a profound transformation in the way people think of

themselves, called personal identity, which includes letting go of deeply held

attitudes and learning new ways of thinking.

Spotlight on Skills: What’s Your Readiness for Management?

A successful new manager discovers that a lot of time has to be spent in the care and feeding of

people, including direct reports and colleagues. People who fail in new management jobs often

Exhibit 1.3: Making the Leap from Individual Performer to Manager

2. Specific aspects of this transformation include changing one’s identity:

Innovative Management for a Changing World • 11

a. from a specialist who performs specific tasks to a generalist who coordinates

diverse tasks;

B. Manager Activities

1. Managerial activity is characterized by variety, fragmentation, and brevity. The

average time spent on any one activity is less than nine minutes, and managers must

be able to shift gears quickly. Significant crises are interspersed with trivial events in

no predictable sequence.

Discussion Question #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?

2. Managers perform a great deal of work at an unrelenting pace, requiring great energy.

Discussion Question #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?

Spotlight on Skills: Do You Really Want to Be a Manager?

Becoming a manager is considered by most people to be a positive, forward-looking career move

that offers appealing aspects. However, it also holds many challenges; not every person will be

happy and fulfilled in a management position. Here are some of the issues would-be managers

should consider before deciding whether to pursue a management career:

1. Increased workload – it’s not unusual for managers to work 70 to 80 hours per week or

more.

C. Manager Roles

1. A role is a set of expectations for one’s behavior. Managers’ activities can be

organized into ten roles. The ten roles are divided into three categories:

informational, interpersonal, and decisional.

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Exhibit 1.4: Ten Manager Roles

2. Informational roles include the functions used to maintain and develop an

information network.

a. The monitor role: the manager seeks current information from many sources.

3. Interpersonal roles refer to relationships with others and are related to human skills.

a. The figurehead role: the manager handles ceremonial and symbolic functions.

4. Decisional roles come into play when managers must make choices. These roles

often require both conceptual and human skills.

a. The entrepreneur role: managers initiate improvement projects; identify new

ideas, delegate idea responsibility to others.

Discussion Question #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?

Innovative Management for a Changing World • 13

Benchmarking: Artisan Ice Cream

An admitted Foodie with a lifelong obsession with food, Ben Van Leeuwen was also obsessed

with locally grown and sustainable ingredients. Using a business plan he had completed in a

college course, he secured $80,000 in funding from family and friends, bought a truck and

VI. MANAGING IN SMALL BUSINESSES AND NONPROFIT ORGANIZATIONS

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Small businesses are growing in importance and the Internet has opened new avenues for

small business formation. Today’s small business environment is highly complicated due

to technology, globalization, government regulation, and increasing customer demands.

Small companies may have difficulty developing the managerial dexterity needed to

survive in turbulent times.

1. Small business managers emphasize different roles than managers in larger

2. The entrepreneurial role is also important because managers must be creative and

B. Nonprofit organizations also represent a major application of management talent.

Managers in nonprofits direct their efforts toward generating some kind of social impact,

14 • Chapter 1

and the unique needs associated with these efforts present special challenges for these

managers.

1. Financial resources for nonprofit organizations typically come from government

2. Securing a steady stream of funding is a major problem, and because nonprofits do

3. The roles defined by Mintzberg also apply to nonprofit managers, but differ

Discussion Question #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?

VII. INNOVATIVE MANAGEMENT FOR THE NEW WORKPLACE

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Turbulent Forces

1. Dramatic advances in technology, globalization, shifting social values, changes in the

workforce, and other environmental shifts have created a challenging environment for

Innovative Management for a Changing World • 15

Exhibit 1.5: The Transition to a New Workplace

B. New Workplace Characteristics

1. The old workplace was characterized by routine, specialized tasks, and standardized

2. The new workplace is characterized by free-flowing and flexible work, flatter

structures, lower-level employees making decisions based on widespread information

and guided by the organization’s mission and values.

a. Empowered employees are expected to seize opportunities and solve problems as

they emerge.

b. Knowledge is widely shared, and people throughout the company keep in touch

C. New Management Competencies

1. Managers must rethink their approach to organizing, directing, and motivating

employees.

2. Leadership is dispersed throughout the organization, and managers empower others to

gain the benefit of their ideas and creativity

3. Success in the new workplace depends on the strength and quality of collaborative