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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Innovative Management for a Changing World
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Innovation is the new imperative Organizations cannot survive long term
without innovation Companies like Facebook are always
investing in new ideas Innovation should be a part of products,
processes, people, and values
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Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resourcesManagers get things done through the
organizationCreate right systems and environmentOrganizations need good managers
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Organization: Social entity that is goal directed and deliberately structured
Organizational effectiveness: Providing a product or service that customers value
Organizational efficiency: Refers to the amount of resources used to achieve an organizational goal
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Three categories of skills: conceptual, human, 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
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To know how to build better managers, Google executives studied performancereviews, feedback surveys, and award nominations to see what qualities madea good manager. Here are the “Eight Good Behaviors” they found, in order ofimportance:
1. Be a good coach.2. Empower your team and don’t micromanage.3. Express interest in team members’ success and personal well-being.4. Don’t be a sissy: Be productive and results-oriented.5. Be a good communicator and listen to your team.6. Help your employees with career development.7. Have a clear vision and strategy for the team.8. Have key technical skills so you can help advise the team.
SOURCE: Google’s Quest to Build a Better Boss, by Adam Bryant, published March 12, 2011 in the New YorkTimes. Courtesy of Google, Inc.
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Missteps and unethical behavior have been in the news
During turbulent times, managers must apply their skills
Common management failures:Not listening to customersMisinterpreting signals from marketplaceNot building teamsInability to execute strategiesFailure to comprehend and adapt to changePoor communication and interpersonal skills
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Organizations often promote star performers to management
Becoming a manager is a transformationMove from being a doer to a coordinator
Many new managers expect more freedom to make changes
Successful managers build teams and networks Many make the transformation in a “trial by fire”
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Adventures in multitaskingActivity characterized by variety,
fragmentation, and brevityLess than nine minutes on most activitiesManagers shift gears quickly
Life on speed dialWork at unrelenting paceInterrupted by disturbancesAlways working (catching up)
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Role: Set expectations for a manager’s behavior
Every role undertaken by a manager accomplishes the functions of:PlanningOrganizingLeading Controlling
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Manager roles are important to understand but they are not discrete activities
Management cannot be practiced as independent parts
Managers need time to plan and think
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Small businesses are growingInadequate management skills is a threatThe roles for small business managers differEntrepreneurs must promote the business
Nonprofits need management talentApply the four functions of management to make
social impactMore focus on keeping costs lowNeed to measure intangibles like “improving
public health”18
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Focus on creating benefits from limitedresources (Hindu word: JUGAAD, U.S. “Frugal
Engineering.”)
Management changing but history matters Broadens way of thinking Discover patterns which recur over time Learn from others mistakes and
successes20
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Studying management history helps your conceptual skills Social forces – aspects of a culture that guide and influence relationships among peoplePolitical forces – influence of political and legal institutions on people and organizationsEconomic forces – the availability, production, and distribution of resources
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Emerged during the nineteenth and early twentieth centuriesRise of the factory systemIssues regarding structure, training, and
employee satisfaction Large, complex organizations required
new approaches to coordination and control
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Three subfields: Scientific managementBureaucratic organizationsAdministrative principles
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Improve efficiency and labor productivity through scientific methods
Frederick Winslow Taylor proposed that workers “could be retooled like machines”
Management decisions would be based on precise procedures based on study
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Henry Gantt developed the Gantt chart to measure and plan work
The Gilbreths pioneered time and motion studies to promote efficiency
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Max Weber, a German theorist, introduced the concepts
Manage organizations on impersonal, rational basis
Organization depends on rules and records
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Managers use power instead of personality to delegate
Although important productivity gains come from this foundation, bureaucracy
has taken on a negative tone
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Focused on the entire organization Henri Fayol, a French mining engineer,
was a major contributor 14 general principles of management;
many still used today:Unity of commandDivision of workUnity of directionScalar chain
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Identified five functions of management: PlanningOrganizingCommandingCoordinating Controlling
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Understand human behaviors, needs, and attitudes in the workplace
Mary Parker Follett and Chester Barnard
Contrast to scientific management - Importance of people rather than engineering techniques
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Empowerment: facilitating instead of controlling
Recognition of the informal organization
Introduced acceptance theory of authority
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Effective control comes from within the employee
Hawthorne studies were key contributor
Human relations played key variable in increasing performance
Employees performed better when managers treated them positively
Strongly shaped management practice and research
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From worker participation and considerate leadership to managing work performance
Combine motivation with job design Maslow and McGregor extended and
challenged current theoriesMaslow’s HierarchyTheory X and Theory Y
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Scientific methods + sociology, psychology, anthropology, economics to develop theories about human behavior and interaction in an organizational setting
Organizational development – field that uses behavioral sciences to improve organization
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Other strategies based on behavioral science:Matrix organizationsSelf-managed teamsCorporate cultureManagement by wandering around
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Also referred to as quantitative perspective
Use of mathematics and statistics to aid management decision makingEnhanced by development and perfection
of the computer Operations management focuses on
the physical production of goods and services
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Information technology – focuses on technology and software to aid managers
Quants – financial managers who base their decisions on complex quantitative analysis
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The ability to see the distinct elements of a situation as well as the complexities
System – set of interrelated parts that function as a whole to achieve a common purpose
Subsystems – are parts of the system that are all interconnected
Synergy – the whole is greater than the sum of its partsManagers must understand subsystem
interdependence and synergy42
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Every situation is unique Managers must determine what method
will work Managers must identify key contingencies
for the current situation Organizational structure should depend
upon industry and other variables
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Quality movement is strongly associated with Japan
The U.S. ignored the ideas of W. Edwards Deming, “Father of the Quality Movement”
Total Quality Management (TQM) became popular in the 1980s and 1990s
Integrate high-quality values in every activity
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Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
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Management ideas trace their roots to historical perspectives
New ideas continue to emerge to meet the changing needs and difficult times
The shelf life of trends is getting shorter and new ideas peak in fewer than three years
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Social media programs – Company online community pages, social media sites, microblogging platforms and online forums
Customer relationship management – technology used to build relationships with customers
Outsourcing – contracting functions or activities to other organizations to cut costs
Supply chain management – managing supplier and purchaser relationships to get goods to consumers
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