Analize
The World of Innovative Management
Chapter 1
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Innovation is the new imperative
Organizations cannot survive long term without innovation
Companies like Facebook are always investing in new ideas
Innovation should be a part of products, processes, people, and values
2
Why Innovative
Management Matters
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Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
Managers get things done through the organization
Create right systems and environment
Organizations need good managers
3
The Definition of Management
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4
1.1 - State-of-the-Art Management
Competencies for Today’s World
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1.2 - What Do Managers Do?
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1.3 - The Process of
Management
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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
7
Organizational Performance
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Three categories of skills: conceptual, human, technical
The degree of the skills may vary but all managers must possess the skills
The application of management skills change as managers move up the hierarchy
8
Management Skills
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1.4 - Relationship of Technical, Human, and Conceptual
Skills to Management
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1.5 - Google’s Rules: Eight
Good Behaviors for Managers
10
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Missteps and unethical behavior have been in the news
During turbulent times, managers must apply their skills
Common management failures:
Not listening to customers
Misinterpreting signals from marketplace
Not building teams
Inability to execute strategies
Failure to comprehend and adapt to change
Poor communication and interpersonal skills
11
When Skills Fail
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1.6 - Top Causes of
Manager Failure
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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: Becoming
a New Manager
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1.7 - Making the Leap from Individual
Performer to Manager
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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)
15
Manager Activities
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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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Manager Roles
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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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Manager Roles
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1.8 - Ten Manager Roles
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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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Managing in Small Business
and Nonprofit Organizations
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Focus on creating benefits from limited
resources (Hindi word: Jugaad, U.S. “Frugal
Engineering.”)
Management changing but history matters
Broadens way of thinking
Discover patterns that recur over time
Learn from others’ mistakes and successes
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Innovative Management
Thinking
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Studying management history helps your conceptual skills
Social forces – aspects of a culture that guide and influence relationships among people
Political forces – influence of political and legal institutions on people and organizations
Economic forces – the availability, production, and distribution of resources
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1.9 - Management Perspectives
Over Time
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Emerged during the nineteenth and early twentieth centuries
Rise of the factory system
Issues regarding structure, training, and employee satisfaction
Large, complex organizations required new approaches to coordination and control
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Three subfields:
Scientific management
Bureaucratic organizations
Administrative principles
24
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Improve efficiency and labor productivity through scientific methods
Frederick Winslow Taylor proposed that workers “could be retooled like machines”
Management decisions would be based on precise procedures based on study
25
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Henry Gantt developed the Gantt chart to measure and plan work
The Gilbreths pioneered time and motion studies to promote efficiency
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1.10 - Characteristics of
Scientific Management
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Max Weber, a German theorist, introduced the concepts
Manage organizations on impersonal, rational basis
Organization depends on rules and records
28
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Managers use power instead of personality to delegate
Although important productivity gains
come from this foundation, bureaucracy
has taken on a negative tone
29
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1.11 - Characteristics of
Weberian Bureaucracy
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Focused on the entire organization
Henri Fayol, a French mining engineer, was a major contributor
14 general principles of management; many still used today:
Unity of command
Division of work
Unity of direction
Scalar chain
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Administrative Principles
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Identified five functions of management:
Planning
Organizing
Commanding
Coordinating
Controlling
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Administrative Principles
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Understand human behaviors, needs, and attitudes in the workplace
Mary Parker Follett and Chester Barnard
Contrast to scientific management - Importance of people rather than engineering techniques
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Humanistic Perspective:
Early Advocates
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Empowerment: facilitating instead of controlling
Recognition of the informal organization
Introduced acceptance theory of authority
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Humanistic Perspective:
Early Advocates
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Effective control comes from within the employee
Hawthorne studies were key contributor
Human relations played key variable in increasing performance
Employees performed better when managers treated them positively
Strongly shaped management practice and research
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Humanistic Perspective:
Human Relations Movement
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From worker participation and considerate leadership to managing work performance
Combine motivation with job design
Maslow and McGregor extended and challenged current theories
Maslow’s Hierarchy
Theory X and Theory Y
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Humanistic Perspective: Human
Resources Perspective
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1.12 - Theory X and Theory Y
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Scientific methods + sociology, psychology, anthropology, economics to develop theories about human behavior and interaction in an organizational setting
Organizational development – field that uses behavioral sciences to improve organization
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Humanistic Perspective:
Behavioral Sciences Approach
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Other strategies based on behavioral science:
Matrix organizations
Self-managed teams
Corporate culture
Management by wandering around
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Humanistic Perspective:
Behavioral Sciences Approach
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Also referred to as quantitative perspective
Use of mathematics and statistics to aid management decision making
Enhanced by development and perfection of the computer
Operations management focuses on the physical production of goods and services
40
Management Science
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Information technology – focuses on technology and software to aid managers
Quants – financial managers who base their decisions on complex quantitative analysis
41
Management Science
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The ability to see the distinct elements of a situation as well as the complexities
System – set of interrelated parts that function as a whole to achieve a common purpose
Subsystems – are parts of the system that are all interconnected
Synergy – the whole is greater than the sum of its parts
Managers must understand subsystem interdependence and synergy
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Recent Trends: Systems
Thinking
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1.13 Systems Thinking and
Circles of Causality
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Every situation is unique
Managers must determine what method will work
Managers must identify key contingencies for the current situation
Organizational structure should depend upon industry and other variables
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Recent Trends: Systems
Contingency View
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1.14 - Contingency View
of Management
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Quality movement is strongly associated with Japan
The U.S. ignored the ideas of W. Edwards Deming, “Father of the Quality Movement”
Total Quality Management (TQM) became popular in the 1980s and 1990s
Integrate high-quality values in every activity
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Recent Trends: Total Quality
Management
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Elements of Quality
Management
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Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
Management ideas trace their roots to historical perspectives
New ideas continue to emerge to meet the changing needs and difficult times
The shelf life of trends is getting shorter and new ideas peak in fewer than three years
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Innovative Management:
Thinking for a Changing World
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Social media programs – Company online community pages, social media sites, microblogging platforms, and online forums
Customer relationship management – technology used to build relationships with customers
Outsourcing – contracting functions or activities to other organizations to cut costs
Supply chain management – managing supplier and purchaser relationships to get goods to consumers
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Managing the Technology-
Driven Workplace
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1.15 Supply Chain for a
Retail Organization
50
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