Principles Of Management

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Management The complete story By Norris Dorsey

McGraw-Hill

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Managing In The New Era  Managerial

practices will always separate effective from ineffective organizations  Four key elements are new elements in business today Internet

Globalization

New Era Management

Knowledge Management McGraw-Hill

Collaboration Across “Boundaries”

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Managing In The New Era (cont.)  The

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Internet

 communication

technologies are driving massive change  initial enthusiasm for e-business has dwindled 

25% of publicly-held Web companies became profitable in 2002

 most

profitable Web companies sell information-based products that don’t require shipping  old economy types now using the Internet as a tool to solidify their future

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Managing In The New Era (cont.)

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 Globalization  far

more than in the past, enterprises are global  competing globally is not easy 

companies often overestimate the attractiveness of foreign markets

 even

small firms that do not operate on a global scale must make strategic decisions based on international considerations 

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face intense competition from high-quality foreign producers

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Managing In The New Era (cont.)  Knowledge

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management

 practices

aimed at discovering and harnessing an organization’s intellectual resources 

unlock people’s expertise, skills, wisdom, and relationships

 intellectual

capital is the collective brainpower of the organization

 Collaboration

across “boundaries”

 capitalize

on the ideas of people outside the traditional company “boundaries” 

occurs between as well as within organizations 

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e.g., must effectively capitalize on customers’ brains

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Managing For Competitive Advantage  Best

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managers and companies deliver all four

Cost Competitiveness

Innovation

Competitive Advantage

Quality McGraw-Hill

Speed

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Managing For Competitive Advantage (cont.)

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 Innovation  the

introduction of new goods and services

comes from people  must be a strategic goal  must be managed properly 

 Quality  excellence

of a product, including its attractiveness, lack of defects, reliability, and long-term durability  importance of quality has increased dramatically  catering to customers’ other needs creates more perceived quality McGraw-Hill

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Managing For Competitive Advantage (cont.)

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 Speed  fast

and timely execution, response, and delivery of results  often separates winners from losers in world competition  requirement has increased exponentially  Cost

competitiveness

 costs

are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers  key is efficiency - accomplishing goals by using resources wisely and minimizing waste  little things can save big money  McGraw-Hill

cost cuts involve tradeoffs

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The Functions Of Management

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 Management  the

process of working with people and resources to accomplish organizational goals  good managers must be: effective - achieve organizational goals  efficient - achieve goals with minimum waste of resources 

 there

are timeless principles of management

still important for making managers and companies great  must add fresh thinking and new approaches 

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The Functions Of Management (cont.)

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 The

manager who does not devote adequate attention and resources to all four functions will fail

Leading

Organizing

Controlling Planning

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The Functions Of Management (cont.)

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 Planning  specifying

the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals  delivering strategic value - planning function for the new era a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage  process intended to create more value for the customer 

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The Functions Of Management (cont.)

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 Organizing  assembling

and coordinating the human, financial, physical, informational, and other resources needed to achieve goals  building a dynamic organization - organizing function for the new era viewing people as the most valuable resource  the future requires building flexible organizations 

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The Functions Of Management (cont.)

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 Leading  stimulating

people to be high performers  in the new era, managers must be good at mobilizing people to contribute their ideas  Controlling  monitoring

progress and implementing necessary changes  makes sure that goals are met  new technology makes it possible to achieve more effective controls  for the future, will have to be able to monitor continuous learning and changing McGraw-Hill

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Management Levels  Top-level

managers (strategic managers)

 senior

executives responsible for the overall management and effectiveness of the organization  focus on long-term issues  emphasize the survival, growth, and effectiveness of the firm  concerned with the interaction between the organization and its external environment  titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents

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Management Levels (cont.)  Middle-level

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managers (tactical managers)

 located

between top-level and frontline managers in the organizational hierarchy  responsible for translating strategic goals and plans into more specific objectives and activities  traditional role was that of an administrative controller who bridged the gap between higher and lower levels  provide operating skills and practical problem solving the keep the company working

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Management Levels (cont.)  Frontline

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managers (operational managers)

 lower-level

managers who supervise the operational activities of the organization  directly involved with nonmanagement employees  increasingly being called on to be innovative and entrepreneurial  titles include supervisor or sales manager  Working

leaders with broad responsibilities

 in

small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities

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Management Skills  Skill

- specific ability that results from knowledge, information, and aptitude  Technical skill  ability

to perform a specialized task that involves a certain method or process  managers at higher levels rely less on technical skills  Conceptual

and decision skills

ability to identify and resolve problems for the benefit of the organization  assume greater importance as manager acquires more responsibility 

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Management Skills (cont.)  Interpersonal  ability

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and communication skills

to lead, motivate, and communicate effectively with

others 

people skills

 important

throughout your career at every level of management

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You And Your Career  Jobs

are no longer as secure for managers as they used to be

 organizations

still try to develop and retain good employees  employee loyalty and commitment are still important  Companies

offering “employability” to workers tend to be more successful  provide

training and other learning experiences  employees perform work with greater responsibility

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You And Your Career (cont.)  Be

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both a specialist and generalist

 specialist 

- expert in something

provide concrete, identifiable value to the firm

 generalist

- knowing about a variety of business functions so that you can understand work with different perspectives

 Be

self-reliant

 take

responsibility for yourself, your actions, and your career regardless of where you work  think and act like an entrepreneur look for opportunities to contribute in new ways  generate constructive change 

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You And Your Career (cont.)  Be

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connected

 establish

many good working relationships  be a team player with strong interpersonal skills  all business is a function of human relationships 

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competitive advantage depends upon you and other people

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Keys to Career Management 1. 2. 3. 4. 5. 6. 7. 8.

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Think of yourself as a business. Define your product: What is your area of expertise? Know your target market: To whom are you going to sell this? Be clear on why your customer buys from you. What is your “value proposition” - what are you offering that causes him to use you? As in any business, strive for quality and customer satisfaction, even if your customer is just someone else in your organization - like your boss. Know your profession or field and what’s going on there. Invest in your own growth and development, the way a company invests in research and development. What new products will you be able to provide? Be willing to consider changing your career.

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You And Your Career (cont.)  Actively

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manage your relationship with your organization

 two

ways to think about the nature of the relationships between you and your employer 

view yourself as an employee  



two-way, mutually-beneficial exchange relationship 



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model for just getting by contributions likely to be minimal think about how you can contribute and act accordingly  figure out new ways to add value organization likely provide full and fair rewards, support further personal development, and offer more gratifying work environment

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Managerial Action Is Your Opportunity To Contribute You

Your Organization

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Managerial Actions 1. Delivering Strategic Value 2. Building a Dynamic Organization 3. Mobilizing People 4. Learning and Changing

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Environmental Analysis

Environmental Scanning

Scenario Development

Benchmarking

Forecasting

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Characteristics Of Managerial Decisions

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Risk

Uncertainty

Lack of Structure

Conflict

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Characteristics Of Managerial Decisions (cont.)  Lack

of structure

 the

usual state of affairs in managerial decision making  programmed decisions - decisions that have been encountered and made in the past have objectively correct answers  are solvable by using simple rules, policies, or numerical computations 

 nonprogrammed

decisions - new, novel, complex decisions having no proven answers 

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decision maker must create or impose a method for making the decision

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Characteristics Of Managerial Decisions (cont.)  Uncertainty

and risk

 certainty

- have sufficient information to predict precisely the consequences of one’s actions  uncertainty - have insufficient information to know the consequences of different actions 

cannot estimate the likelihood of various consequences of their actions

 risk

- available information permits estimation of the likelihood of various consequences probability of an action being successful is less than 100 percent, and losses may occur  good managers prefer to manage risk 

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Characteristics Of Managerial Decisions (cont.)  Conflict  opposing

pressures from different sources  occurs at two levels 

psychological conflict - individual decision makers:  



conflict between individuals or groups

 few

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perceive several attractive options perceive no attractive options

decisions are without conflict

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An Overview Of Planning Fundamentals

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 Planning  the

conscious, systematic process of making decisions about goals and activities to be pursued in the future  importance of formal planning has grown dramatically  Basic

planning process

 Step

one: situational analysis

a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration  study past and current conditions, and forecast future trends  focuses on internal forces and influences from the external environment 

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An Overview Of Planning Fundamentals (cont.)  Basic

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planning process (cont.)

 Step

two: alternative goals and plans

generate alternative future goals and plans to achieve them  goals - targets or ends the manager wants to reach 

 



plans - the actions or means intended to achieve goals  

 

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should be specific, challenging, and realistic should be acceptable to those charged with achieving them identify alternative actions, needed resources, and potential obstacles single use plans - designed to achieve goals that are unlikely to be repeated in the future standing plans - designed to achieve an enduring set of goals contingency plans - actions to be taken when initial plans fail or if events in the external environment require a sudden change

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An Overview Of Planning Fundamentals (cont.)  Basic

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planning process (cont.)

 Step

three: goal and plan evaluation

evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan  prioritize those goals  consider the implications of alternative plans 

 Step

four: goal and plan selection

identify the priorities and trade-offs among goals and plans  leads to a written set of goals and plans that are appropriate and feasible within a predicted set of circumstances  scenario - narrative that describes a set of future conditions 

 McGraw-Hill

a contingency plan is attached to each scenario

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An Overview Of Planning Fundamentals (cont.)  Basic

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planning process (cont.)

 Step

five: implementation

plans are useless unless they are implemented properly  managers must understand the plan, have the necessary resources, and be motivated to implement it  implementation likely to be more successful if managers and employees have participated in the previous planning steps  the plan should be linked to other systems in the organization 

 Step

six: monitor and control

must continually monitor the actual performance in relation to the goals and plans  develop control systems to take corrective action 

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Identifying and diagnosing the problem

Situational analysis

Generating alternative solutions

Alternative goals and plans

Evaluating alternatives

Goal and plan evaluation

Making the choice

Goal and plan selection

Implementing

Implementation

Evaluation

Monitor and control

Specific formal planning steps

General decisionmaking stages

Decision-Making Stages And Formal Planning Steps

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An Overview Of The HR Planning Process Planning

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Programming

Evaluation

Human resources activities

Results

Organizational strategic planning HRM environmental scanning •Labor markets •Technology •Legislation •Competition •Economy

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Human resources planning •Demand forecast •Internal labor supply •External labor supply •Job analysis

•Employee recruitment •Employee selection •Outplacement •Training and development •Performance appraisal •Reward systems •Labor relations

•Productivity •Quality •Innovation •Satisfaction •Turnover •Absenteeism •Health

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The Global Environment  Global

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environment

 becoming

more integrated than ever before  World Trade Organization (WTO) rules apply to over 90 percent of international trade  has 144 member nations, including China  moved from reducing tariffs to eliminating nontariff barriers 

 International

Monetary Fund (IMF)

established by the United Nations  has 184 member countries 

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The Global Environment (cont.)  European

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unification

 European

Union (EU)

allows goods, services, capital, and human resources to flow freely across national borders  goal is to strengthen Europe as an economic superpower  Maastrict Treaty 





impact of EU is hard to predict 

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agreement to adopt a common European currency  Euro “Fortress Europe” may restrict trade with countries outside of the EU

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The Global Environment (cont.)  Pacific

Rim

 important 

economic players include Japan and China

four tigers - Korea, Taiwan, Singapore, and Hong Kong

 Asia-Pacific 

 

reduce trade barriers establish general rules for investment develop policies that encourage foreign investment

holds promise in facilitating and strengthening international business relationships 

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Economic Cooperation (APEC)

trying to: 



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member countries represent 40 percent of the world’s population and 50 percent of the world’s economic output

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The Global Environment (cont.)  North

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America

 North

American Free Trade Agreement (NAFTA)

an economic pact that combined the economies of the U.S., Canada, and Mexico  constitutes the world’s largest trading bloc  provides access to previously protected markets in each country  Mexico will have to bolster its infrastructure and take care of troubling environmental issues 



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Border Environment Cooperation Commission (BECC) - addresses environmental concerns of communities on the border

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The Global Environment (cont.)  Rest

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of the world

 globalization

has left out three huge, high-potential regions

Middle East  Africa  Latin America 

 these

regions have a major share of the earth’s natural resources

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Conventional Organization Chart

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President

Finance

R&D

Marketing

Chemical Products

Personnel Metal Products

Personnel

Finance

Personnel

Finance

Manufacturing

Sales

Manufacturing

Sales

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The Vertical Structure (cont.)

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 Delegation  assignment

of authority and responsibility to a subordinate  can occur between any two individuals in any type of structure with regard to any task  responsibility - assignment of a task that an employee is supposed to carry out 

should delegate enough authority to complete the task

 accountability

- expectation that employees perform a job, take corrective action when necessary, and report upward on the status and quality of their performance  managers remain responsible and accountable for their own actions and those of their subordinates McGraw-Hill

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The Vertical Structure (cont.)  Delegation

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(cont.)

 advantages

of delegation

permits getting work done through others  manager saves time  manager frees herself/himself to devote energy to other important, higher-level activities  provides subordinates with more important jobs  provides subordinates with the opportunity to develop new skills and to demonstrate potential  from the organization’s perspective, jobs are done more efficiently and cost-effectively 

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Steps In Effective Delegation

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Define the goal succinctly Select the person for the task Solicit the subordinate’s view about suggested approaches Give the subordinate the authority, time, and resources (people, money,equipment) to perform the assignment Schedule checkpoints for reviewing progress Follow through by discussing progress at appropriate intervals McGraw-Hill

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Diversity Today  Diversity  broad

term used to refer to all kinds of differences  members of different groups share common values, attitudes, and perceptions 

there is still much diversity within each group

 U.S.

businesses must learn to manage a diverse workforce

 Managing

diversity

 must

be aware of characteristics common to a group  must manage employees as individuals  must support, nurture, and utilize these differences to the organization’s advantage McGraw-Hill

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Components Of A Diversified Workforce

Gender Age

Racial and ethnic minorities in the United States Immigrants Physically and mentally disabled

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Workforce Diversity

Other Religious affiliation Veteran status Sexual orientation Expectations and values Lifestyle Skill level Educational level Economic class Workstyle Function and/or position within the company

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How Effective Is Your Diversity Program? Ineffective 2% Somewhat ineffective

Undecided 13%

Very Effective 8%

8%

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Effective 22%

Somewhat effective 49%

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Diversity Today (cont.)  Size

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of the workforce

 U.S.

civilian labor force is expected to reach 158 million by

2010  slowing in both the number of people joining the labor force and the rate of labor force growth  U.S. traditionally had a surplus of labor 

number of jobs created expected to exceed the growth of the labor force

 employers

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likely to outsource some work

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Diversity Today (cont.)  Workers

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of the future

 until

recently, white, American born males dominated the U.S. workforce 

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now, they only account for 15 percent of the net growth

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Women In The Workforce  Women

make up about 47 percent of the workforce  99 percent of women will work for pay at some point in their lives  Overall labor force participation rate of women continues increasing while the participation rate of men declines  The long-term increase in the female labor force largely reflects the greater frequency of paid work by mothers  Today, 40 percent of multiple job holders are women  One of every five married women who works outside the home earns more than her husband McGraw-Hill

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Minorities And Immigrants

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Nonwhites make up about one-third of the growth rate in the workforce  Ethnic Americans now comprise nearly 25 percent of the total population  By 2020, most of California’s entry-level workers will be Hispanic  English has become the second language for much of the population in California, Texas, and Florida  The number of foreign-born U.S. residents is at its highest level in U.S. history (one in ten residents)  The younger Americans are, the more likely they are to be persons of color  6.8 million people in the U.S. identify themselves as multiracial 

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Percentage Of Minority Managers

1995

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10.60%

Senior 1992

7.40%

1995

15.10%

Middle 1992

11.20%

1995

19.30%

Front-line 1992

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14.50%

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Vision

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 Vision a

mental image of a possible and desirable future state of the organization  having a vision and communicating it to others are essential components of great leadership  the best visions are both: ideal - communicates a standard of excellence and clear choice of positive values  unique - communicates and inspires pride in being different from other organizations 

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Vision (cont.)  Important

points about visions

a

vision is necessary for effective leadership  a person or team can develop a vision for any job  many people, including managers who do not develop into strong leaders, do not develop a clear vision  Visions

can be inappropriate

 may

reflect merely the leader’s personal needs  may ignore stakeholders’ needs  the vision must change when circumstances change

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Leading And Managing

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 Ability

to lead effectively sets excellent managers apart from average ones  managers 

deal with ongoing organizational activities

planning and budgeting routines, structuring the organization

 leadership 

includes orchestrating organizational change

creating a vision for the firm and inspiring people to attain it

 management

and leadership are both vitally important  supervisory leadership - provides guidance, support, and corrective feedback for day-to-day activities of work unit members  strategic leadership - gives purpose and meaning to organizations

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Leading And Following  Organizations

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succeed or fail because of how well followers

follow  effective

followers:

are capable of independent thinking  are actively committed to organizational goals  are enthusiastic about ideas and purposes beyond their own self interest  master skills that are useful to the organization  hold performance standards that are higher than required 

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Power And Leadership  Power  ability

 Sources

to influence other people

of power

 legitimate 

power - leader has organizational authority

employees are obligated to comply with legitimate orders

 reward

power - leader has control over valued rewards  coercive power - leader has control over punishments  referent power - leader has personal characteristics that appeal to others and make them desirous of the leader’s approval  expert power - leader has knowledge that others feel will be of benefit to them McGraw-Hill

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Sources Of Power

Authority

Control over rewards

Expertise Power

Appealing personal characteristics McGraw-Hill

Control over punishments

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Traditional Approaches To Understanding Leadership  Leader

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traits

 trait

approach - focussed on individual leaders to determine the personal characteristics that great leaders share  characteristics that distinguish effective leaders drive - characteristics that reflect a high level of effort  leadership motivation - they want to lead  integrity - actions correspond to words  self-confidence - expectation that one is able to overcome obstacles and make good decisions in the face of uncertainty  knowledge of the business - ability to interpret information  ability to perceive the needs of others and to adjust one’s behavior accordingly 

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Traditional Approaches To Understanding Leadership (cont.)  Leader

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behaviors

 behavioral

approach - sought to identify what behaviors good leaders exhibit  task performance - leader’s efforts to ensure that the work unit reaches its goals 

focus on work speed, quality and quantity of output, and rules

 group

maintenance - actions taken to ensure satisfaction

develop and maintain harmonious work relationships  leader-member exchange theory - focuses on the leader’s behavior toward individuals 

  McGraw-Hill

focus is primarily on group maintenance behaviors potential for cross-cultural differences

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Traditional Approaches To Understanding Leadership (cont.)  Leader

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behaviors (cont.)

 participation

in decision making - leader behaviors that managers perform in involving their employees in making decisions autocratic leadership - makes decisions and then announces them to the group  democratic leadership - solicits input from others 



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uses consensus or majority vote to make the final choice

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Traditional Approaches To Understanding Leadership (cont.)  Leader

behaviors (cont.)

 effects 

of leader behavior

decision styles   



McGraw-Hill

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democratic approach resulted in the most positive attitudes autocratic approach resulted in somewhat higher performance laissez-faire - leadership philosophy characterized by an absence of managerial decision making characteristics of the situation, leader, and the follower determine the appropriate decision-making style

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Behaviors That Companies Want Employees To Exhibit

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Join the organization

Exhibit good citizenship

Achieve high output McGraw-Hill

Companies must motivate workers to:

Remain in the organization

Come to work regularly

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Setting Goals  Goal

setting theory

 people

have conscious goals that energize them and direct their thoughts and behaviors toward a particular end

 Goals

that motivate

 goals

should be acceptable to employees  goals should be challenging but attainable  goals should be specific, quantifiable, and measurable  Limitations

of goal setting

 individualized

goals create competition and reduce cooperation  single productivity goals interfere with other dimensions of performance McGraw-Hill

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The Consequences Of Behavior

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Positive reinforcement or negative reinforcement

Same behavior likely to be repeated

Punishment or extinction

Same behavior less likely to be repeated

Behavior

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Understanding People’s Needs  Content

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theories

 indicate

the kinds of needs that people want to satisfy  the extent to which and the ways in which a person’s needs are met or not met affect her/his behavior on the job  Maslow’s  human

need hierarchy

needs are organized into five major types

physiological - food, water, sex, and shelter  safety or security - protection against threat and deprivation  social - friendship, affection, belonging, and love  ego - independence, achievement, freedom, recognition, and self-esteem  self-actualization - realizing one’s potential 

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Understanding People’s Needs (cont.)  Maslow’s

1 - 67

need hierarchy (cont.)

 postulates

that people satisfy these needs one at a time, from bottom to top people motivated to satisfy lower needs before they try to satisfy higher needs  once satisfied, a need is no longer a powerful motivator 

 not

altogether accurate theory of human motivation  nonetheless, made three major contributions identified important need categories  helped to think in terms of lower- and higher-level needs  increased salience of personal growth and self-actualization 

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Understanding People’s Needs (cont.)  Alderfer’s

1 - 68

ERG theory

 postulates

that people have three basic need sets

Existence needs - material and physiological desires  Relatedness needs - involve relationships with other people 





satisfied by the process of mutually sharing thoughts and feelings

Growth needs - motivate people to productivity or creativity 

satisfied by fully utilizing personal capacities and developing new capacities

 postulates

that several different needs can be operating at once  has greater scientific support than Maslow’s hierarchy 

McGraw-Hill

both theories remind managers of the types of reinforcers or rewards that can be used to motivate people

© 2003 The McGraw-Hill Companies, Inc. All rights rese

Comparison Of Maslow’s Need Hierarchy And ERG Theory

S actu elfaliza tion

1 - 69

th Grow

Ego

Soc ia

l

s edne t a l e R

s

Safe ty

Phy sio Mas lo McGraw-Hill

w

logi c

al

ence t s i x E rfer e d l A

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1 - 70

The Contributions Of Teams Building block for organization structure

Force for innovation

Effects on organizations

Force for change

Force for speed McGraw-Hill

Force for productivity

Force for quality

Force for cost reduction

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1 - 71

Benefits Of Groups  Benefits

derived by organizations

 groups

have greater total resources than individuals do  groups have a greater diversity of resources  groups can aid decision making  Benefits

derived by members

a

group is a useful learning mechanism  a group can satisfy important personal needs  group members can provide one another with feedback identify opportunities for growth and development  train, coach, and mentor 

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The New Team Environment

1 - 72

 Definitions  working

group - collection of people who work in the same area or have been drawn together to undertake a task 

do not necessarily come together as a unit and achieve significant performance improvements

 team

- small number of people with complementary skills who are committed to a common purpose, common performance goals, and a common approach for which they hold themselves mutually accountable real teams are more fully integrated into the organizational structure  authority of teams is increasing 

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The New Team Environment Traditional environment •Managers determine and plan the work •Jobs are narrowly defined •Cross-training is viewed as inefficient •Most information is “management property” •Training for nonmanagers focuses on technical skills •Risk taking is discouraged and punished •People work alone •Rewards based on individual performance •Managers determine “best methods” McGraw-Hill

1 - 73

Team environment •Managers and teams jointly determine and plan the work •Jobs require broad skills and knowledge •Cross-training is the norm •Most information is freely shared •Continuous learning requires training for all •Encourage and support measured risk taking •People work together •Rewards based on contributions to the team and individual performance •Everyone works to improve methods and processes

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Improving Communication Skills  Improving

1 - 74

sender skills

 presentation

and persuasion skills

redundancy - state your viewpoint in a variety of ways  powerful messages are simple and informative 

 writing

skills - require clear, logical thinking

strive for clarity, organization, readability, and brevity  first draft rarely is as good as it could be  be critical of your own writing 

 language

- word choice can enhance or interfere with communications consider the receiver’s background and adjust your language  learn something about foreign language for overseas business 

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Improving Communication Skills (cont.)  Nonverbal

1 - 75

skills

 signals

other than those that are spoken or written  can support or undermine the stated message  nonverbal cues may make a greater impact than other signals  can send a positive message with nonverbal signals by: using time appropriately  arranging the office to foster open communication  remembering your body language 



facial expression and tone of voice

 Nonverbal  need McGraw-Hill

signals in different countries

to correctly interpret the nonverbal signals of others

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Improving Communication Skills (cont.)  Improving  listening

1 - 76

receiver skills - good listening is difficult and not nearly as common as

needed reflection - process by which a person states what s/he believes the other person is saying  listening begins with personal contact  good listening leads to development of trust  listening more important for innovation than for routine work 

 reading

- reading mistakes are common and costly

read memos promptly and carefully  note important points for later referral  read materials outside of your immediate concerns 

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Ten Keys To Effective Listening 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. McGraw-Hill

1 - 77

Find an area of interest Judge content, not delivery Hold your fire Listen for ideas Be flexible Resist distraction Exercise your mind Keep your mind open Capitalize on thought speed Work at listening

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1 - 78

Managing Change  Organizational

change is managed effectively when:

 the

organization is moved from its current state to a planned future state  the change works as planned  the transition is accomplished without excessive costs to the organization or to individual organizational members  People

are the key to successful change

 people

must take an interest and active role in helping the organization as a whole  permanent rekindling of individual creativity and responsibility should be a consequence of change McGraw-Hill

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Managing Change (cont.)  Motivating  people 

1 - 79

people to change

must be motivated to change

people often resist change

 general

reasons for resistance - arise regardless of the content of the change inertia - people don’t want to disturb the status quo  timing - managers should introduce change when people are receptive  surprise - resistance is likely when change is sudden, unexpected, or extreme  peer pressure - work teams may band together in opposition to change 

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Managing Change (cont.)  Motivating

1 - 80

people to change (cont.)

 change-specific

reasons for resistance - arise from the specific nature of a proposed change self-interest - fear that something of value will be lost  misunderstanding - people may resist because they don’t fully understand the purpose of the change  different assessments - employees receive different - and usually less information than management receives 





management tactics - many fail to commit employees to change  

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such discrepancies in knowledge cause people to develop different assessments of proposed changes force the change on employees do not provide the necessary resources, knowledge, or leadership

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1 - 81

Reasons For Resistance To Change General Reasons For Resistance Inertia

Timing

Surprise

Peer pressure

Resistance to Change

Self-Interest

Misunderstanding

Different assessments

Management tactics

Change-specific Reasons for Resistance McGraw-Hill

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Implementing Change

Unfreezing (breaking from the old ways of doing things)

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Moving (instituting the changes)

1 - 82

Refreezing (reinforcing and supporting the new ways)

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Characteristics Of Controls System control Bureaucratic control

1 - 83

Features and requirements Uses formal rules, standards, hierarchy, legitimate authority. Works best where tasks are certain and workers are independent.

Market control

Uses prices, competition, profit centers, exchange relationships. Works best where tangible output can be identified and market can be established between parties.

Clan control

Involves culture, shared values, beliefs, expectations, and trust. Works best where there is “no one best way” to do a job and where employees are empowered to make decisions.

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