Innovative Management For A Changing World

Chapter 1 Management by Richard L Daft (Vanderbilt University) 12th Edition (2016)

INNOVATIVE MANAGEMENT FOR A CHANGING WORLD

Leaning Outcomes: 1. Describe five management competencies that are becoming crucial in today’s fast-paced and rapidly changing world. 2. Define the four management functions and the type of management activity associated with each. 3. Explain the difference between efficiency and effectiveness and their importance for organizational performance. 4. Describe technical, human, and conceptual skills and their relevance for managers.

Leaning Outcomes: 5. Describe management types and the horizontal and vertical differences between them. 6. Summarize the personal challenges involved in becoming a new manager. 7. Define ten roles that managers perform in organizations. 8. Explain the unique characteristics of the manager ’s role in small businesses and nonprofit organizations.

Manager Achievement

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Scoring and Interpretation: Give yourself one point for each Mostly True answer. In this case, a low score is better. A high score means a focus on personal achievement separate from others, which is ideal for a specialist or individual

contributor. However, a manager is a generalist who gets things done through other people. Spending time building relationships is key. A desire to be an individual winner may cause you to compete with your people rather than develop their skills. You would not succeed as a lone achiever who does not facilitate and coordinate others, which is the primary job of a manager. If you checked 3 or fewer as Mostly True, your basic orientation is good. If you scored 6 or higher, your focus may be on being an individual winner. You will want to shift your perspective to become an excellent manager.

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Innovative Management for the New Workplace

Rapid environmental shifts: ◦ Technology ◦ Globalization ◦ Shifting social values In the new workplace, work is free-flowing and flexible ◦ Success depends on innovation and continuous improvement

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Who is Manager?

Managers ◦ do more with less ◦ engage hearts and minds ◦ see change as natural ◦ inspire vision and cultural values ◦ allow people to create a collaborative workplace ◦ allow people to create a productive workplace

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Management

Management: is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources Today’s effective manager is an enabler who helps people do and be their best. Today’s best managers are “future-facing.” Managers employ an empowering leadership style.

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State-of-the-art Management

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Innovative Way

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Effects of Innovative Management at HCL Applying new management competencies can really pay off at HCL. Guided by the EFCS philosophy, HCL’s revenues have grown by over 3.6 times, and net income has increased by 91 percent since 2005. But the shift to a new way of managing isn’t easy for traditional managers who are accustomed to being “in charge,” making all the decisions, and knowing where their subordinates are and what they’re doing at every moment. Even more changes and challenges are on the horizon for organizations and managers.

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1.2 What Do Managers Do? 1- Set Objectives 2- Organize 3- Motivate and Communicate 4- Measure 5- Develop People

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1.3 The Process of Management

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1.3 The Process of Management Mgt. function

Resources used

Planning

Determining an organization’s desired future position and the best means of getting there

Human

Organizing

Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Financial

Leading

Getting organizational members to work together toward the organization’s goals

Physical

Controlling

Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals

Technological and Informational

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Organizational Performance 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 Organizational Performance:

Attainment of organizational goals by using resources in an efficient and effective manner.

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Management Skills Three categories of skills: 1. Conceptual, 2. Diagnostic 3. Human/interpersonal, 4. Technical/Informational 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- Conceptual Skills

• Conceptual skills include the cognitive ability to see the organization as a whole system and the relationships among its parts. • Conceptual skills involve knowing where one’s team fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment. • It means the ability to think strategically—to take the broad, long-term view—and to identify, evaluate, and solve complex problems.

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2- Diagnostic Skills

• The manager uses diagnostic skills to understand cause and-effect relationships and to recognize the optimal solutions to problems. • Most successful managers also bring diagnostic skills to the organization. • Diagnostic skills allow managers to better understand cause-and-effect relationships and to recognize the optimal solutions to problems.

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3- Human/Interpersonal Skills • Human skills involve the manager’s ability to work with and through other people and to work effectively as a group member. • Human skills are demonstrated in the way that a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts. • Human skills are essential for frontline managers who work with employees directly on a daily basis. •

A recent study found that the motivational skill of the frontline manager is the single most important factor in whether people feel engaged with their work and committed to the organization © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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4- Technical/Informational skills

• Technical skills include mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. • Technical skills also includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline.

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1.4 Relationship of Skills to Management

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1.4 Relationship of Skills to Management

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1.5 Good Behaviors for Managers

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When Skills Fail Missteps and unethical behavior are common Managers must apply their skills during turbulent times but: Common management failures: ◦ Not listening to customers ◦ Unable to motivate employees ◦ Not building teams ◦ Inability to create cooperation ◦ Failure to clarify performance expectations ◦ Poor communication and interpersonal skills © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.6 Top Causes of Manager Failure

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Management Types: A- Vertical Top managers:

Responsible for the entire organization

Middle managers:

Responsible for business units

Project managers:

Responsible for misinterpreting signals

First-line managers:

Responsible for production of goods and services

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1.7 Management Levels

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Management Types: B- Horizontal

Functional managers: Responsible for departments that perform specific tasks General managers: Responsible for several departments

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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 in a “trial by fire”

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Making the Leap 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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Managing Your Time

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Improving Time Management

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Four Management Functions

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

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Manager Roles

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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1.10 Hierarchical Levels and Importance of Leader and Liaison 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 keeping costs low ◦ Need to measure intangibles like “improving public health”

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Questions 1. How do you feel about having management responsibilities in today’s world, characterized by uncertainty, ambiguity, and sudden changes or threats from the environment? Describe some skills and competencies that you think are important to managers working in these conditions. 2. Assume that you are a project manager at a biotechnology company, working with managers from research, production, and marketing on a major product she is playing golf with senior managers. What is your evaluation of her behavior? As project manager, what do you do? 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., John Chambers at Cisco)? What factors about the manager or about the company might account for this difference?

5. Think about the highly publicized safety problems at General Motors (GM). One observer said that a goal of efficiency had taken precedence over a goal of quality within this company. Do you think managers can improve both efficiency and effectiveness simultaneously? Discuss. How do you think GM’s leaders should respond to the safety situation? © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Questions 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 doing it?

8. A college professor told her students, “The purpose of a management course is to teach students about management, not to teach them to be managers.” Do you agree or disagree with this statement? Discuss. 9. Discuss some of the ways that organizations and jobs have changed over the past ten years. What changes do you anticipate over the next ten years? How might these changes affect the manager’s job and the skills that a manager needs to be successful? © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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