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