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Chapter 1Chapter 1Chapter 1Chapter 1
Managing the New Managing the New WorkplaceWorkplace
What do Beaunit Mills, Hercules Powder, What do Beaunit Mills, Hercules Powder, and Liebmann Breweries have in and Liebmann Breweries have in
common?common?
On 1stOn 1st Fortune Fortune List (1955)List (1955)
They Don’t Exist Today They Don’t Exist Today
““BAD Management”BAD Management”
Not “Keeping up the Good Work”Not “Keeping up the Good Work”
Not adapting to Environmental ChangesNot adapting to Environmental Changes
ManagementManagementManagementManagementThe attainment of organizational goals in The attainment of organizational goals in
an effective and efficient manner through an effective and efficient manner through planning, organizing, leadingplanning, organizing, leading, and , and controllingcontrolling organizational resources organizational resources
OrganizationOrganizationA formally structured collection of A formally structured collection of
individuals working toward common individuals working toward common goals.goals.
Organizational PerformanceOrganizational PerformanceOrganizational PerformanceOrganizational PerformanceEffectiveness : the degree to which the Effectiveness : the degree to which the
organization achieves a stated goalorganization achieves a stated goalEfficiency : the use of minimal resources Efficiency : the use of minimal resources
(input) to produce a desired volume of (input) to produce a desired volume of output.output.
Efficient, but not Effective:Efficient, but not Effective: - Goals not achieved- Goals not achieved
Effective, but not EfficientEffective, but not Efficient - Wasted Resources- Wasted Resources
(You may have to choose between the two.)(You may have to choose between the two.)
The Four Functions of The Four Functions of ManagementManagementThe Four Functions of The Four Functions of ManagementManagement
PlanningPlanning Select goals Select goals
& ways to & ways to attain themattain them
OrganizingOrganizing Assign Assign
responsibility responsibility for tasksfor tasks
LeadingLeading Use Use
influence to influence to motivatemotivate
Controlling Controlling Monitor Monitor
activities & activities & make make
correctionscorrections
MANAGEMENT LEVELS AND MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONSTIME SPENT ON FUNCTIONSMANAGEMENT LEVELS AND MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONSTIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.Plan. Organ. Lead. Control.
Top 28% 36% 22% 14%Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%Lower 15% 24% 51% 10%
Management SkillsManagement SkillsManagement SkillsManagement Skills
Conceptual Skills : cognitive ability to Conceptual Skills : cognitive ability to see the organization as a whole and see the organization as a whole and the relationship among its partsthe relationship among its parts
Human Skills : ability to work with Human Skills : ability to work with and through other people and to and through other people and to work effectively as a group memberwork effectively as a group member
Technical Skills : understanding of and Technical Skills : understanding of and proficiency in the performance of proficiency in the performance of specific tasks.specific tasks.
Management SkillsManagement SkillsManagement SkillsManagement Skills
Conceptual SkillsConceptual Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr MgrMgr
MgrMgr MgrMgr
OpOp OpOp OpOpOpOp OpOp
Which level needs Which level needs conceptual skills the conceptual skills the most?most?
Management SkillsManagement SkillsManagement SkillsManagement Skills
Human SkillsHuman Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr MgrMgr
MgrMgr MgrMgr
OpOp OpOp OpOpOpOp OpOp
To what degree do To what degree do various levels of various levels of management need human management need human skills? skills?
ALL need high degree.ALL need high degree.
Management SkillsManagement SkillsManagement SkillsManagement Skills
Technical SkillsTechnical Skills CEOCEO
VPVP VPVP VPVP
MgrMgr
MgrMgr MgrMgr
MgrMgr MgrMgr
OpOp OpOp OpOpOpOp OpOp
LeastLeastMoreMore
MostMost
To what degree do the To what degree do the various levels need various levels need technical skills?technical skills?
What Is It Like to Be a What Is It Like to Be a Manager?Manager?What Is It Like to Be a What Is It Like to Be a Manager?Manager?
Managerial ActivitiesManagerial Activities
- Long hours- Long hours
- Most time spent in oral - Most time spent in oral communicationcommunication
- Characterized by variety, - Characterized by variety, fragmentation, fragmentation, and brevity and brevity
- Fast paced and require a - Fast paced and require a high energy level to high energy level to be be
successfulsuccessful
Managers give up the right Managers give up the right to:to:
- Be one of the gang- Be one of the gang
- Put your self-interest - Put your self-interest firstfirst
- Ask others to do things - Ask others to do things you wouldn’t doyou wouldn’t do
- Vent your frustrations- Vent your frustrations
- Resist change- Resist change
Supervisors’ ResponsibilitiesSupervisors’ ResponsibilitiesSupervisors’ ResponsibilitiesSupervisors’ ResponsibilitiesPlan and schedule workPlan and schedule work
Clarify tasks and Clarify tasks and gather ideas for gather ideas for improvementimprovement
Appraise and counsel Appraise and counsel employeesemployees
Recommend job Recommend job assignments and payassignments and pay
Inform employees of Inform employees of organizational goalsorganizational goals
Inform higher Inform higher managers of work managers of work unit needs and unit needs and accomplishmentsaccomplishments
Recruit, train, and Recruit, train, and develop workersdevelop workers
Encourage and Encourage and maintain high and maintain high and enthusiasmenthusiasm
Informational roles Informational roles = maintain = maintain & develop information network& develop information networkInformational roles Informational roles = maintain = maintain & develop information network& develop information network
TheThe monitor monitor = seeking current information from = seeking current information from many sources.many sources.
The The disseminatordisseminator = transmits information to = transmits information to others both inside and outside the others both inside and outside the organization.organization.
TheThe spokesperson spokesperson = to provide official statements = to provide official statements to people outside the organization about to people outside the organization about company policies, actions, or plans.company policies, actions, or plans.
Interpersonal roles Interpersonal roles pertain to pertain to relationships with othersrelationships with othersInterpersonal roles Interpersonal roles pertain to pertain to relationships with othersrelationships with others
The The figureheadfigurehead = ceremonial activities = ceremonial activities
TheThe leader leader = motivation, = motivation, communication, and influence of communication, and influence of subordinates.subordinates.
The The liaison = liaison = development of development of information sources both inside and information sources both inside and outside the organization.outside the organization.
Decisional roles Decisional roles = make choices = make choices requiring conceptual & human requiring conceptual & human skills.skills.
Decisional roles Decisional roles = make choices = make choices requiring conceptual & human requiring conceptual & human skills.skills.
The The entrepreneurialentrepreneurial = initiate change. = initiate change.
The The resource allocator resource allocator = allocate resources = allocate resources to achieve outcomes.to achieve outcomes.
TheThe negotiator negotiator = negotiating and = negotiating and bargaining for unit of responsibility.bargaining for unit of responsibility.
The The disturbance handler disturbance handler = resolving = resolving conflicts.conflicts.
How Do You Learn How Do You Learn to Manageto Manage??How Do You Learn How Do You Learn to Manageto Manage??
50% from job experience50% from job experience
30% from other persons30% from other persons
20% from education & training20% from education & training
(Based on study of successful managers at (Based on study of successful managers at Honeywell)Honeywell)
Successful Managers’ AttributesSuccessful Managers’ Attributes
LeadershipLeadership
Team-Building SkillsTeam-Building Skills
Self-objectivitySelf-objectivity
Analytic ThinkingAnalytic Thinking
Creative ThinkingCreative Thinking
Behavioral FlexibilityBehavioral Flexibility
Oral CommunicationOral Communication
Written Written CommunicationCommunication
Personal ImpactPersonal Impact
Resistance to StressResistance to Stress
Tolerance of Tolerance of UncertaintyUncertainty
Centered around information and ideasCentered around information and ideas
Work is free-flowing and flexibleWork is free-flowing and flexible
Organized around networks (and teams) ,work Organized around networks (and teams) ,work is often virtualis often virtual
Characteristics of theCharacteristics of theNew WorkplaceNew Workplace
Some Types of Changes Impacting Organizations:Some Types of Changes Impacting Organizations:
ProductsProducts
TechnologiesTechnologies
Markets Markets
Speed RequirementsSpeed Requirements
Management TechniquesManagement Techniques
StayStay CalmCalm
Tell the truthTell the truthPut people beforePut people before
businessbusiness
Be visibleBe visible
Know when to getKnow when to getback to businessback to business
Crisis Management Skills
The Learning OrganizationThe Learning OrganizationThe Learning OrganizationThe Learning Organization
CONTINUOUSLY IMPROVES based on CONTINUOUSLY IMPROVES based on the lessons of experience.the lessons of experience.Workers must possess and use knowledge.Workers must possess and use knowledge.
Knowledge needed is increasing.Knowledge needed is increasing.
Knowledge needs to be preserved and Knowledge needs to be preserved and communicated.communicated.
The Learning OrganizationThe Learning OrganizationThe Learning OrganizationThe Learning Organization
CONTINOUS IMPROVEMENT through:CONTINOUS IMPROVEMENT through:TeamsTeams
Open-book management of informationOpen-book management of information
Empowered workersEmpowered workersTraining (for current job and new career paths)Training (for current job and new career paths)
Knowledge Mgmt is Especially Knowledge Mgmt is Especially Important in E-CommerceImportant in E-CommerceKnowledge Mgmt is Especially Knowledge Mgmt is Especially Important in E-CommerceImportant in E-Commerce
E-commerce represents business exchanges or transactions that occur electronically.
It replaces or enhances the exchange of money and products with the exchange of data and information from one computer to another.
Pre-Classical ManagementPre-Classical Management
Anything before about 1900:Anything before about 1900:
e.g.,e.g.,
Attila the HunAttila the Hun
Henry TowneHenry Towne
Classical PerspectiveClassical PerspectiveEmphasized a Emphasized a rationalrational, , scientificscientific approach to study of approach to study of
management and sought to make workers and management and sought to make workers and organizations like efficient operating machines organizations like efficient operating machines
Classical CategoriesClassical CategoriesScientific ManagementScientific Management
Frederick TaylorFrederick Taylor
Frank and Lillian GilbrethFrank and Lillian Gilbreth
Bureaucratic OrganizationsBureaucratic OrganizationsMax WeberMax Weber
Administrative PrinciplesAdministrative PrinciplesHenri FayolHenri Fayol
Scientific ManagementScientific Management
Develop a standard method for performing Develop a standard method for performing each jobeach job
Select appropriate workersSelect appropriate workers
Train workers in standard methodTrain workers in standard method
Plan work and eliminate interruptionsPlan work and eliminate interruptions
Provide incentives for increased output.Provide incentives for increased output.
Scientific ManagementScientific Management
Still Useful:Still Useful:At a KFC Franchise lowered profits At a KFC Franchise lowered profits
determined to be due to drop-off in drive-determined to be due to drop-off in drive-through businessthrough business
Found to be slower than other drive-throughsFound to be slower than other drive-throughs
Reduced movements and distance covered by Reduced movements and distance covered by employees filling drive-through ordersemployees filling drive-through orders
Bureaucratic OrganizationsBureaucratic Organizations
Clearly defined authority and Clearly defined authority and responsibilityresponsibility
Formal record keepingFormal record keeping
Set procedures for each situationSet procedures for each situation
Goals of fairness and efficiencyGoals of fairness and efficiency
Separation of management and ownership.Separation of management and ownership.
Bureaucratic OrganizationsBureaucratic Organizations
Become “dysfunctional” Become “dysfunctional” when:when:
-There is no effort to -There is no effort to recognize exceptions to recognize exceptions to rules or to change rules rules or to change rules when necessarywhen necessary
-Enforcement of rules -Enforcement of rules takes precedence over takes precedence over pursuit of the pursuit of the organization’s missionorganization’s mission
Relatively Relatively HighHigh in in Bureaucracy:Bureaucracy:United Parcel ServiceUnited Parcel Service
U.S. Postal ServiceU.S. Postal Service
Relatively Relatively LowLow in in Bureaucracy:Bureaucracy:Hewlett-PackardHewlett-Packard
Disney StudiosDisney Studios
Administrative Management - Administrative Management - Henri FayolHenri Fayol
14 Principles14 PrinciplesUnity of command Unity of command
Division of workDivision of work
Unity of directionUnity of direction
Scalar chain-of-commandScalar chain-of-command
Authority=ResponsibilityAuthority=Responsibility
(etc.)(etc.)
Five basic management Five basic management functionsfunctionsPlanningPlanning
OrganizingOrganizing
CommandingCommanding
CoordinatingCoordinating
ControllingControlling
Humanistic PerspectiveHumanistic Perspective
Emphasizes enlightened treatment of workers Emphasizes enlightened treatment of workers and power sharing between managers and and power sharing between managers and employees.employees.
Supported by Hawthorne StudiesSupported by Hawthorne Studies
Includes: Includes: Human Relations ApproachHuman Relations Approach
Human Resources Appr.Human Resources Appr.
Behavior Science Appr.Behavior Science Appr.
The Hawthorne StudiesThe Hawthorne Studies
““Social Man” Social Man”
Methodological Problems, but Profound Methodological Problems, but Profound Influence on Management ThoughtInfluence on Management Thought
““Hawthorne Effect”Hawthorne Effect”
Interviewing Techniques Interviewing Techniques
Informal Groups/OrganizationInformal Groups/Organization
Human Relations MovementHuman Relations Movement
Emphasized satisfaction of employees’ Emphasized satisfaction of employees’ social/psychological needs as the key to social/psychological needs as the key to increased worker productivity.increased worker productivity.
The Human Resources The Human Resources PerspectivePerspective
Jobs should be designed to allow workers Jobs should be designed to allow workers to use their full potentialto use their full potential
Abraham Maslow’s Hierarchy of Needs Abraham Maslow’s Hierarchy of Needs (Ch. 13)(Ch. 13)
Douglas McGregor’s Theory X vs. Theory Douglas McGregor’s Theory X vs. Theory Y (comparison of Classical Mgmt to Y (comparison of Classical Mgmt to Human Resources)Human Resources)
Theory X Theory X (Classical):(Classical):
People dislike work and People dislike work and prefer to be directedprefer to be directed
Must be coerced to Must be coerced to work work
Want to avoid Want to avoid responsibility and responsibility and have little ambitionhave little ambition
Want security above Want security above everythingeverything
Theory Y (Human Theory Y (Human Resources):Resources):
People will accept People will accept responsibilityresponsibility
Have intellect that Have intellect that could be applied to could be applied to organizational goalsorganizational goals
Only partially use their Only partially use their intellectual potential.intellectual potential.
Behavioral Sciences Approach Behavioral Sciences Approach = Applied Social Sciences= Applied Social Sciences
Study of human behavior in organizationsStudy of human behavior in organizations
Draws on Disciplines of:Draws on Disciplines of:EconomicsEconomics
PsychologyPsychology
SociologySociology
Communication Communication
AnthropologyAnthropology
Management Science Management Science PerspectivePerspective
Involves Mathematics, ComputersInvolves Mathematics, Computers
Examples:Examples:ForecastingForecasting
Inventory controlInventory control
SchedulingScheduling
Break-even analysisBreak-even analysis
Total Quality Management
- - Employee InvolvementEmployee Involvement
- Focus on Customer- Focus on Customer
- Benchmarking- Benchmarking
- Continuous Improvement- Continuous Improvement
What The 21st Century What The 21st Century Executive Should Be LikeExecutive Should Be Like
Leader/MotivatorLeader/Motivator
Consummate PoliticianConsummate Politician
Master of TechnologyMaster of Technology
Global StrategistGlobal Strategist