Transcript Chapter One:

Chapter 1
Innovative Management for a Changing World
Why Innovative
Management Matters
• 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
• Cases: The Greatful Dead, Psy – Gangnam Style
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The Definition of Management
Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources:
 Managers get things done through the organization.
 Managers create right systems and environment.
 Organizations need good managers.
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.
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Planning
• Identifying goals for future organizational
performance;
• Deciding on the tasks and use of resources
needed to be in the future
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Organizing
• Typically follows planning.
• Reflects how the organization tries to accomplish
the plan
• Assign tasks
• Group tasks into departments
• Delegate authority
• Allocate resources across the organization
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Leading
• Use of influence to motivate employees to
achieve organizational goals
• Create a shared culture and values
• Communicate goals to people throughout the
organization
• Infuse employees with the desire to performa at
a high level
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.
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Controlling
• Monitor employees’ activities
• Determine whether the organization is on target
toward its goals
• Make corrections as necessary
• Evaluate the performance
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.
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1.1 What Do Managers Do? (Murray, 2010)
1.2 The Process of Management
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Organizational Performance
• An organization = a social entity that is goal directed
and deliberately structured
• Organizational effectiveness – providing a product or
service that customers value  achieving an goal
• Organizational efficiency refers to the amount of
resources used to achieve an organizational goal;
≈ Productivity = Output / Input
• High Performance – The ability to attain its goals by
using resources efficiently & effectively
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Efficiency vs. Profitability
Management Skills
• Three categories of skills: (1) conceptual, (2)
human, (3) 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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1.3 Relationship of Skills to Management
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When Skills Fail
• Missteps and unethical behavior have been in the
news
• During turbulent times, managers must apply their
skills
• Common management failures:
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Not listening to customers
Misinterpreting signals from marketplace
Not building teams
Inability to execute strategies
Failure to comprehend and adapt to change
Poor communication and interpersonal skills
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1.4 Top Causes of Manager Failure
(Logenecker, Neubert, Fink, 2007)
Management Types: Vertical
• Top managers are responsible for the entire
organization
• Middle managers are responsible for business
units
• Project managers: Responsible for
misinterpreting signals
• First-line managers are responsible for
production of goods and services
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Management Types: Horizontal
• Functional Managers are responsible for
departments that perform specific tasks
• General Managers are responsible for several
departments
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1.5 Management Levels
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Making The Leap: Becoming
A New Manager
• Organizations often promote star performers to
management
• Becoming a manager is a transformation
– Move 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 “trial by fire”
• DQ: Why doesn’t a star QB always become a star
coach?
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1.6 From Individual Performer to Manager
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Do You Really Want
to Be A Manager?
 The increased workload
 The challenge of supervising former peers
 The headache of responsibility for other people
 Being caught in the middle
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Manager Activities
Adventures in multitasking
– Activity characterized by variety, fragmentation, and
brevity
– Less than nine minutes on most activities
– Managers shift gears quickly
Life on speed dial
– Work at unrelenting pace
– Interrupted by disturbances
– Always working (catching up)
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Manager Roles
• Role: Set expectations for a manager’s
behavior
• Every role undertaken by a manager
accomplishes the functions of:
– Planning
– Organizing
– Leading
– Controlling
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Ten Manager Roles
Informational
 Monitor
 Disseminator
 Spokesperson
Interpersonal
 Figurehead
 Leader
 Liaison
Decisional
 Entrepreneur
 Disturbance
Handler
 Resource
Allocator
 Negotiator
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Manager Roles
• Manager roles are important to
understand, but they are not discrete
activities
• Management can’t be practiced as
independent parts
• Managers need time to plan and think
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1.8 Hierarchical Levels and Importance of Roles
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Managing in Small Business and
Nonprofit Organizations
Small businesses are growing
– Inadequate management skills is a threat
– The roles for small business managers differ
– Entrepreneurs must promote the business
Nonprofits need management talent
– Apply the four functions of management to make
social impact
– More focus on costs
– Need to measure intangibles like “improving
public health”
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Innovative Management for
the New Workplace
• Rapid environmental shifts:
– Technology
– Globalization
– Shifting social values
• In the new workplace, work is
freeflowing and flexible at flatter structures.
• Success depends on innovation and continuous
improvement
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1.9 Transition to a New Workplace
1.10 – State-of-the-Art Management
Competencies for Today’s World
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New Management Competencies
• Collaboration across functions, levels,
customers, and companies
• Experimentation and learning are key values
• Knowledge and information sharing
More challenges and changes are on the horizon!
This is an exciting time in management.
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