For Essays Guru - Reflect

James Ennis/Moment Open/Getty Images

p a r t 1

The World of Innovative Management

ch 1

After studying this chapter, you should be able to:

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.

5. Describe management types and the horizontal and vertical differences among 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.

Management Competencies for Today’s World

The Basic Functions of Management Planning Leading

Organizing Controlling

Organizational Performance

Management Skills Technical Skills Conceptual Skills

Human Skills When Skills Fail

Management Types Vertical Differences Horizontal Differences

What Is a Manager’s Job Really Like? Making the Leap: Becoming a New Manager Manager Activities Manager Roles

Managing in Small Businesses and Nonprofit Organizations

L e

A R

N IN

g O

u T

C O

M e

S

C h

A P

T e

R O

u T

L IN

e

69308_ch01_ptg01.indd 2 11/7/16 4:04 PM

NOT FOR SALE

O rg

an iz

in g

I n

t r

o d

u c

t I o

n

1

E n

v I r

o n

m E

n t

2

P l

a n

n I n

g

3

o r

g a

n I z

I n

g

4

l E

a d

I n

g

5

c o

n t

r o

l l

I n

g

6

“In the late 1980s, it seemed inconceivable that Bon Jovi would last five years,” wrote one music historian. Yet more than three decades after the rock group was founded, it is still one of the world’s top-selling bands. In 2014, Jon Bon Jovi was ranked No. 4 on Forbes’s list of the year’s highest-paid musicians, and the December 2015 announcement of the band’s 14th album had classic rock fans eagerly anticipating another concert tour.1 Bon Jovi has been so successful partly because its lead singer and name- sake is a consummate manager. For example, as the group prepared for the launch of its most recent tour, Jon Bon Jovi was hidden away in the arena at the Mohegan Sun casino in Uncasville, Connecticut, for days, overseeing nearly 100 people organized into various teams such as lighting, sound, and video. It is an activity that he performs again and again when the band is touring, managing a tightly coordinated operation similar to setting up or readjusting a production line for a manufacturing business. Yet Bon Jovi is also perform- ing other management activities throughout the year—planning and setting goals for the future, organizing tasks and assigning responsibilities, influencing and motivating band members and others, monitoring operations and finances, and networking inside and out- side the organization (in perhaps the most prestigious example, he was appointed to Presi- dent Barack Obama’s White House Council for Community Solutions). Efficiency and effectiveness are key words in his vocabulary. “Jon is a businessman,” said former comanager David Munns. “He knows how to have a great-quality show, but he also knows how to be efficient with money.”2

Jon Bon Jovi was smart enough to hire good people who could handle both production activities and the day-to-day minutiae that go along with a global music business. However, it took several years to develop and hone his management skills. He assumed top manage- ment responsibilities for the band in 1992, about 10 years after founding it, because he had a vision that his professional managers weren’t supporting. “Most of my peers wanted to be on the cover of Circus [a magazine devoted to rock music that was published from 1966 to 2006],” he said. “I wanted to be on the cover of Time.”3

The nature of management is to motivate and coordinate others to cope with diverse and far-reaching challenges. One surprise for many people when they first step into a man- agement role is that they are much less in control of things than they expected to be. Many new managers expect to have power, to be in control, and to be personally responsible for departmental outcomes. However, managers depend on subordinates more than the re- verse, and they are evaluated on the work of other people rather than on their own achieve- ments. Managers set up the systems and conditions that help other people perform well.

In the past, many managers exercised tight control over employees. But the field of management is undergoing a revolution that asks managers to do more with less, to engage employees’ hearts and minds as well as their physical energy, to see change rather than stability as natural, and to inspire vision and cultural values that allow people to create a truly collaborative and productive workplace. This textbook introduces and explains the process of management and the changing ways of thinking about the world that are critical for managers.

Management matters, as substantiated by a McKinsey Global Institute study. In col- laboration with the Centre for Economic Performance at the London School of Econom- ics and partners from Stanford and Harvard Universities, McKinsey collected data over a dozen years from roughly 14,000 organizations in more than 30 countries. The data show that well-managed companies have higher productivity, higher market value, and greater growth, as well as a superior ability to survive difficult conditions.4 By reviewing the ac- tions of some successful and not-so-successful managers, you will learn the fundamentals of management. By the end of this chapter, you will recognize some of the skills that man- agers use to keep organizations on track, and you will begin to understand how managers can achieve astonishing results through people. By the end of this book, you will under- stand the fundamental management skills for planning, organizing, leading, and control- ling a department or an entire organization.

69308_ch01_ptg01.indd 3 11/7/16 4:04 PM

NOT FOR SALE

4

11

Part 1 INTRODuCTION TO MANAgEMENT

1-1 Management competencies for Today’s World Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational re- sources, as Jon Bon Jovi does for his rock band and as chairman of the Jon Bon Jovi Soul Foundation, a nonprofit organization that supports community efforts to combat poverty and homelessness. You will learn more about these four basic management functions later in this chapter.

There are certain elements of management that are timeless, but environmental shifts also influence the practice of management. In recent years, rapid environmen- tal changes have caused a fundamental transformation in what is required of effective managers. Technological advances such as social media and mobile apps, the move to a knowledge/information-based economy, the rise of virtual work, global mar- ket forces, the growing threat of cybercrime, and shifting employee and customer expectations have led to a decline in organizational hierarchies and more empow-

ered workers, which calls for a new approach to management that may be quite different from managing in the past.5 Exhibit 1.1 shows the shift from the traditional management approach to the new management competencies that are essential in today’s environment.

Instead of being a controller, today’s effective manager is an enabler who helps people do and be their best. Today’s managers learn to “design the rules of the game without specify- ing the actions of the players.”6 Managers shape the cultures, systems, and conditions and then give people the freedom to move the organization in the direction it needs to go. They help people get what they need, remove obstacles, provide learning opportunities, and of- fer feedback, coaching, and career guidance. Instead of “management by keeping tabs,” they employ an empowering leadership style. Much work is done in teams rather than by indi- viduals, so team leadership skills are crucial. People in many organizations work at scat- tered locations, so managers can’t monitor behavior continually. Some organizations are even experimenting with a bossless design that turns management authority and responsi- bility over to employees. Managing relationships based on authentic conversation and col- laboration is essential for successful outcomes. Social media is a growing tool for managers to enhance communication and collaboration in support of empowered or bossless work

“I was once a command- and-control guy, but the environment’s different today. I think now it’s a question of making people feel they’re making a contribution.”

—Joseph J. plumeri, ForMer ChaIrMan and Ceo

oF WIllIs Group holdInGs

Management Principle

From Traditional Approach To New Competencies

Overseeing Work From controller

Accomplishing Tasks From supervising individuals

Managing Relationships From conflict and competition

Leading From autocratic

To enabler

To leading teams

To collaboration, including use of social media

To empowering, sometimes bossless

To mobilizing for changeDesigning From maintaining stability

T

T

T o

T

T

e x h i b i t 1.1 State-of-the-Art Management Competencies for Today’s World

69308_ch01_ptg01.indd 4 11/7/16 4:04 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 5

environments. In addition, managers sometimes coordinate the work of people who aren’t under their direct control, such as those in partner organizations, and they sometimes even work with competitors. They have to find common ground among people who might have disparate views and agendas and align them to go in the same direction.

Also, as shown in Exhibit 1.1, today’s best managers are “future-facing.” That is, they design the organization and culture to anticipate threats and opportunities from the environment, challenge the status quo, and promote creativity, learning, adaptation, and innovation. Indus- tries, technologies, economies, governments, and societies are in constant flux, and managers are responsible for helping their organizations navigate through the unpredictable with flexi- bility and innovation.7 Today’s world is constantly changing, but “the more unpredictable the environment, the greater the opportunity—if [managers] have the . . . skills to capitalize on it.”8

There are managers in all types of organizations who are learning to apply the new manage- ment skills and competencies, and you will learn about some of them throughout this textbook. Consider how coaches of the Oregon Ducks football team are applying new management ideas.

MANAGER SPOTLIGHT Oregon Ducks

“It’s awesome,” the Oregon Ducks starting center told a reporter. “There’s lead- ership everywhere you go. We call it horizontal leadership.” Hroniss grasu now plays for the Chicago Bears of the National Football League (NFL), but he spent four years as starting center for the university of Oregon Ducks.

The Ducks are known for doing things differently. Instead of a hierarchical organization with the head coach at the top, Ducks coaches, administrators, and players are considered equals and collaborators. When head coach Mark Helfrich was asked about the team’s leadership, he quickly mentioned about ten names of players who had stepped forward as vocal leaders. A freshman can call out a senior just as easily as a senior star can challenge a new player. The lowliest graduate assistant is treated with the same respect and esteem as a high-level staff member. “It’s so different here,” said player Bralon Addison. “Everybody’s just ‘one’ and I like that so much about this team.”

Another way in which the Ducks are different is that coaches have done away with the traditional approach of yelling at players in favor of a softer, more caring method of correction and motivation. “When you put your arm around a guy and say, ‘This is how it could be done better,’ they understand you care about them and you just want what’s best for the team,” said Marcus Mariota, the Duck’s Heisman Trophy–winning former quarterback. “Those guys already understand that they did wrong.”

Former defensive coordinator Nick Aliotti says things weren’t that way when he coached for the Ducks. “I would raise my voice at times,” he admits. “But society has changed.” By the end of his career with Oregon, Aliotti says he rarely raised his voice because players were no longer responding to that kind of communication.9

I n

t r

o d

u c

t I o

n

1

The approach the Oregon Ducks coaches use to interact with a new generation of football players is also being used more often in other types of organizations. Research has found that the “drill sergeant approach” doesn’t go over well with the “Millennial” genera- tion (those born in the 1980s and 1990s), so managers in all types of organizations are using a softer, more collaborative style of management.10

The shift to a new way of managing isn’t easy for traditional managers who are accus- tomed 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. This is an exciting and challenging time to be enter- ing the field of management. Throughout this book, you will learn much more about the new workplace, about the new and dynamic roles that managers are playing in the twenty-first century, and about how you can be an effective manager in a complex, ever-changing world.

69308_ch01_ptg01.indd 5 11/7/16 4:04 PM

NOT FOR SALE

6

11

Part 1 INTRODuCTION TO MANAgEMENT

1-2 The Basic Functions of Management Every day, managers solve difficult problems, turn organizations around, and achieve astonishing performances. To be successful, every organization needs good managers. The famed management theorist Peter Drucker (1909–2005), often credited with creating the modern study of management, summed up the job of the manager by specifying five tasks, as outlined in Exhibit 1.2.11 In essence, managers set goals, organize activities, motivate and communicate, measure per- formance, and develop people. These five manager activities apply not only to top executives such as Mark Zuckerberg at Facebook, Ginny Rometty at IBM, and Kenneth Chenault at American Express, but also to the manager of a restaurant in your hometown, the leader of an airport security team, a supervisor at a Web hosting service, or the director of sales and marketing for a local business.

The activities outlined in Exhibit 1.2 fall into four fundamental management functions: planning (setting goals and deciding activities), organizing (organi zing activities and people), leading (motivating, communicating with, and develop- ing people), and controlling (establishing targets and measuring performance). Depending on their job situation, managers perform numerous and varied tasks, but they all can be categorized within these four primary functions.

Exhibit 1.3 illustrates the process of how managers use resources to attain or- ganizational goals through the functions of planning, organizing, leading, and con-

trolling. Chapters of this book are devoted to the multiple activities and skills associated with each function, as well as to the environment, global competitiveness, and ethics that influence how managers perform these functions.

1-2A Planning Planning means identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. In other words, managerial planning defines where the organization wants to be in the future and how to get there. A good ex- ample of planning comes from General Electric (GE), where managers have sold divisions such as plastics, insurance, and media to focus company resources on four key business areas: energy, aircraft engines, health care, and financial services. GE used to relocate senior

●● Managers get things done by coordinating and motivating other people.

●● Management is often a different experience from what people expect.

●● Management is defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.

●● Turbulent environmental forces have caused a significant shift in the competencies required for effective managers.

●● Traditional management competencies could include a command-and-control leadership style, a focus on individual tasks, and a standardization of procedures to maintain stability.

●● New management competencies include being an enabler rather than a controller, using an empowering leadership style, encouraging collaboration, leading teams, and mobilizing for change and innovation.

●● The Oregon Ducks football team illustrates some of the new management competencies.

R e m e m b e R T h i s

“Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.”

—paul hawken, envIronMenTalIsT, enTrepreneur, and

auThor oF Natural Capitalism

69308_ch01_ptg01.indd 6 11/7/16 4:04 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 7

I n

t r

o d

u c

t I o

n

1

5. Develop People Recognize the value of employees and develop this critical organizational asset

ople he value of and develop organizational

1. Set Objectives Establish goals for the group and decide what must be done to achieve them

ish goals for the and decide what

be done to e them

asset

4. Measure Set targets and standards; appraise performance

2. Organize Divide work into manageable activities and select people to accomplish tasks

g and select people to accomplish tasks

3. Motivate and Communicate Create teamwork via decisions on pay, promotions, etc., and through communication

e x h i b i t 1.2 What Do Managers Do?

SOuRCE: Based on “What Do Managers Do?” The Wall Street Journal Online, http://guides.wsj.com /management/developing-a-leadership-style/what-do-managers-do/ (accessed August 11, 2010), article adapted from Alan Murray, The Wall Street Journal Essential Guide to Management (New York: Harper Business, 2010).

executives every few years to different divisions so that they developed a broad, general expertise. In line with recent strategic refocusing, the company now keeps people in their business units longer so they can gain a deeper understanding of the products and custom- ers within each of the four core businesses.12

Management Functions

Planning Select goals and

ways to attain them

Leading Use influence to

motivate employees

Controlling Monitor activities

and make corrections

Performance Attain goals Products Services Efficiency Effectiveness

Resources Human Financial Raw materials Technological Information

Organizing Assign

responsibility for task accomplishment

e x h i b i t 1.3 The Process of Management

69308_ch01_ptg01.indd 7 11/7/16 4:04 PM

NOT FOR SALE

8

11

Part 1 INTRODuCTION TO MANAgEMENT

1-2B Organizing Organizing typically follows planning and reflects how the organization tries to accomplish the plan. Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. In recent years, organizations as diverse as IBM, the Catholic Church, Estée Lauder, and the Federal Bureau of Inves- tigation (FBI) have undergone structural reorganization to accommodate their changing plans. Organizing was a key task for Oprah Winfrey as she tried to turn around her strug- gling start-up cable network, OWN. She took over as CEO of the company, repositioned some executives and hired new ones, and cut jobs to reduce costs and streamline the com- pany. Along with programming changes, such as the comedy series Tyler Perry’s For Better or Worse and the drama series The Haves and the Have Nots, structural changes brought a lean, entrepreneurial approach that helped put OWN on solid ground. Winfrey said, “I prided myself on leanness,” referring to the early days of her TV talk show. “ The opposite was done here.”13

1-2C leading Leading is the use of influence to motivate employees to achieve organizational goals. Lead- ing means creating a shared culture and values, communicating goals to people throughout the organization, and infusing employees with the desire to perform at a high level. As CEO of Fiat Chrysler Automobiles, Sergio Marchionne spends about two weeks a month in Michigan meeting with executive teams from sales, marketing, and industrial opera- tions to talk about his plans and motivate people to accomplish ambitious goals for Chrys- ler. Marchionne, who spends half his time in Italy running Fiat, rejected the 15th-floor executive suite at Chrysler headquarters so he could provide more hands-on leadership from an office close to the engineering center.14 One doesn’t have to be a top manager of a big corporation to be an exceptional leader. Many managers working quietly in both large and small organizations around the world provide strong leadership within departments, teams, nonprofit organizations, and small businesses.

1-2D COntrOlling Controlling is the fourth function in the management process. Controlling means monitor- ing employees’ activities, determining whether the organization is moving toward its goals, and making corrections as necessary. One trend in recent years is for companies to place less emphasis on top-down control and more emphasis on training employees to monitor and correct themselves. However, the ultimate responsibility for control still rests with managers.

John Stonecipher finds that as the president and CEO of guidance Aviation, a high-altitude flight school in Prescott, Arizona, his job involves all four management functions. Once he’s charted the course for the operation (planning) and put all the necessary policies, procedures, and structural mechanisms in place (organizing), he supports and encourages his 50+ employees (leading) and makes sure that nothing falls through the cracks (controlling). Thanks to his strengths in all of these areas, the u.S. Small Business Administration named Stonecipher a National Small Business Person of the Year.

Concept Connection

D on

B ar

tle tt

i/ G

et ty

Im ag

es

69308_ch01_ptg01.indd 8 11/7/16 4:04 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 9

I n

t r

o d

u c

t I o

n

1

For example, Jeff Bezos, founder and CEO of Amazon, is taking a hands-on approach to control in his efforts to transform The Washington Post into a fast-moving digital news opera- tion. After buying the Post for $250 million a few years ago, Bezos has largely stayed out of editorial matters but he holds hour-long teleconferences with the paper’s top managers every two weeks to get briefings on distribution strategy, the status of technology upgrades, and other issues related to the digital makeover. For example, after receiving a complaint from a reader about the time it took for the mobile app to load, Bezos ordered managers to improve the load time to milliseconds and even suggested an idea for making it happen.15

Ineffective control can damage an organization. A good example comes from the U.S. Secret Service, which has been embroiled in a public relations nightmare for several years, partly due to a breakdown of managerial control. For example, in March 2015, after a night out drinking, two senior agents in a government car hit a security barrier at an active bomb investigation near the White House. Although officers on duty wanted to administer a sobriety test, a supervisor told the officers to let the offending agents go home. This event, combined with numerous other allegations of agent misconduct and “morally repugnant behavior,” has put the Secret Service in a harsh spotlight. Two directors have resigned under pressure, and numerous agents and top executives have been fired or demoted. One response from managers has been to create stricter rules of conduct, rules that apply even when agents are off duty.16

●● Managers perform a wide variety of activities that fall within four primary management functions.

●● Planning is the management function concerned with defining goals for future performance and how to attain them.

●● Organizing involves assigning tasks, grouping tasks into departments, and allocating resources.

●● Leading means using influence to motivate employees to achieve the organization’s goals.

●● Controlling is concerned with monitoring employees’ activities, keeping the organization on track toward meeting its goals and making corrections as necessary.

●● Recent U.S. Secret Service agency scandals can be traced partly to a breakdown of management control.

R e m e m b e R T h i s

1-3 Organizational Performance The definition of management also encompasses the idea of attaining organizational goals in an efficient and effective manner. Management is so important because organizations are so important. In an industrialized society where complex technologies dominate, or- ganizations bring together knowledge, people, and raw materials to perform tasks that no individual could do alone. Without organizations, how could technology be provided that enables us to share information around the world in an instant; electricity be produced from huge dams and nuclear power plants; and millions of songs, videos, and games be available for our entertainment at any time and place? Organizations pervade our society, and manag- ers are responsible for seeing that resources are used wisely to attain organizational goals.

Our formal definition of an organization is a social entity that is goal-directed and deliberately structured. Social entity means being made up of two or more people. Goal di- rected means designed to achieve some outcome, such as make a profit (Target Stores), win pay increases for members (United Food & Commercial Workers), meet spiritual needs (Lutheran Church), or provide social satisfaction (college sorority Alpha Delta Pi). Delib- erately structured means that tasks are divided, and responsibility for their performance is assigned to organization members. This definition applies to all organizations, including

69308_ch01_ptg01.indd 9 11/7/16 4:04 PM

NOT FOR SALE

10

11

Part 1 INTRODuCTION TO MANAgEMENT

both for-profit and nonprofit ones. Small, offbeat, and nonprofit organizations are more numerous than large, visible corporations—and just as important to society.

Based on our definition of management, the manager’s responsibility is to coordinate resources in an effective and efficient manner to accomplish the organization’s goals. Or- ganizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value. Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw material, money, and people are necessary for producing a given volume of output. Efficiency can be defined as the amount of resources used to produce a product or service. Efficiency and effectiveness can both be high in the same organization.

Many managers are using mobile apps to increase efficiency, and in some cases, the apps can enhance effectiveness as well.17 For example, Square is revolutionizing small business by en- abling any smartphone to become a point-of-sale (POS) terminal that allows the user to accept credit card payments. Millions of small businesses and entrepreneurs in the United States and Canada who once had to turn customers away because they couldn’t afford the fees charged by credit card companies can now use Square to process credit cards. Customers get their need to pay with a card met, and businesses get a sale that they might have missed.18

All managers have to pay attention to costs, but severe cost cutting to improve efficiency—whether it is by using cutting-edge technology or old-fashioned frugality—can sometimes hurt organizational effectiveness. The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using re- sources in an efficient and effective manner. Consider the example of General Mills, maker of Cheerios cereal and Betty Crocker dessert mixes.

A Local Market in a box Can a huge corporation that is frequently targeted by environmental activists be a force for social good? Coca-Cola CEO Muhtar Kent believes so. the company has set specific goals to improve the well-being of the communities in which it operates, achieve water neutrality in its products and production, and empower women entrepreneurs. One tangible project is the Ekocenter, an off-the-grid, modular “community market in a box” that is run by a local female entrepreneur. at the Ekocenter, customers can charge their mobile devices, send a fax, access the Internet, pick up educational materials on hygiene and health issues, and buy basic products. Each Ekocenter has solar panels to provide consistent power and reduce the environmental footprint.

With plans for 150 Ekocenters in africa, asia, and Latin america, the purpose is to stimulate the local economies and provide some of the most remote and distressed communities in the world access to things many of us take for granted, such as safe drinking water, electric power, and Internet access. the local markets in a box will ultimately cre- ate 600 new jobs, mostly for local women entrepreneurs.

Source: Based on Eric J. McNulty, “Teaching the World to Do More Than Sing,” Strategy + Business (September 8, 2015), http://www.strategy -business.com/article/00358?gko=a9ace (accessed February 15, 2016).

G r e e n P o w e r

Sales at general Mills have been lagging, but thanks to extensive and thoughtful cost-cutting and smart strategic decisions, profits haven’t suffered. general Mills managers pay attention to both efficiency and effectiveness.

To reduce overhead expenses, managers have cut hundreds of jobs at corpo- rate headquarters, closed factories, and sold off the struggling green giant and

MANAGER SPOTLIGHT

General Mills c o n t i n u e d

69308_ch01_ptg01.indd 10 11/7/16 4:04 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 11

Le Sueur brands. An annual efficiency program that concentrates on reducing waste and improving productivity has saved $2.4 billion over the past five years. But CEO Ken Powell knows cutting costs isn’t enough. “To have a sustainable business model, you have to have growth,” he says.

general Mills managers are pumping money into products that meet changing consumer tastes. Powell says Millennial consumers, a growing part of the company’s customer base, have “different food values” and pay much more attention to what goes into their food. The company recently bought the natural and organic food maker Annie’s, reduced sugar by 25 percent in its original Yoplait yogurt, and introduced several new products under the Nature Valley brand. general Mills has also cut salt from many of its products and banished artificial colors and flavors from all of its cereals. gluten-free Chex is the company’s fastest growing cereal, so managers cut gluten from Cheerios and are rolling out more gluten-free products.

general Mills managers strive to find a balance between efficiency and ef- fectiveness to stay competitive in the rapidly changing food industry. “I’ve been doing this a long time, and I’ve never seen it this fast,” Powell said.19

I n

t r

o d

u c

t I o

n

1

Powell knows he and his managers must both run an efficient operation as well as adapt their company’s products to give customers what they want. Compare the approach of General Mills managers to what happened at music company EMI. Weak sales led mana- gers to focus on financial efficiency, which successfully trimmed waste and boosted operating income. However, the efficiencies damaged effectiveness by reducing the company’s ability to recruit new artists, who are vital to record companies, and also led to internal turmoil that caused some longtime acts like the Rolling Stones to leave the label. Thus, the company’s over- all performance suffered. After struggling for several years, the century-old music company was split in two and sold for $4.1 billion to Universal Music Group and Sony Corporation.20

●● An organization is a social entity that is goal-directed and deliberately structured.

●● Good management is important because organizations contribute so much to society.

●● Efficiency pertains to the amount of resources—raw materials, money, and people—used to produce a desired volume of output.

●● Effectiveness refers to the degree to which the organization achieves a stated goal.

●● Some managers are using mobile apps to increase efficiency; one example is Square, which is used to process credit and debit card payments with a smartphone.

●● Performance is defined as the organization’s ability to attain its goals by using resources in an efficient and effective manner.

●● Managers at General Mills are concerned both with keeping costs low (efficiency) and providing products that meet changing consumer tastes (effectiveness).

R e m e m b e R T h i s

1-4 Management Skills A manager’s job requires a range of skills. Although some management theorists propose a long list of skills, the necessary skills for managing a department or an organization can be placed in three categories: conceptual, human, and technical.21 As illustrated in

69308_ch01_ptg01.indd 11 11/7/16 4:04 PM

NOT FOR SALE

12

11

Part 1 INTRODuCTION TO MANAgEMENT

Exhibit 1.4, the application of these skills changes dramatically when a person is promoted to management. Although the degree of each skill that is required at different levels of an organization may vary, all managers must possess some skill in each of these important areas to perform effectively.

1-4A teChniCal SkillS Many managers get promoted to their first management jobs because they have dem- onstrated understanding and proficiency in the performance of specific tasks, which is referred to as technical skills. Technical skills include mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. Technical skills also include specialized knowledge, analytical ability, and the com- petent use of tools and techniques to solve problems in that specific discipline. Technical skills are particularly important at lower organizational levels. However, technical skills be- come less important than human and conceptual skills as managers move up the hierarchy. Top managers with strong technical skills sometimes have to learn to step back so others can do their jobs effectively. David Sacks, founder and former CEO of Yammer, designed the first version of the product himself and says he used to “walk around and look over the designers’ shoulders to see what they were doing.” After the company grew to around 200 employees and a dozen or so product managers and design teams, Sacks says that habit prevented some people from doing their best work. Sacks sold Yammer to Microsoft sev- eral years ago and recently joined start-up Zenefits as chief operating officer.22

1-4B human 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 man- ager 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.23

M id

d le

M an

ag er

s N

o n

m an

ag er

s (I

n d

iv id

u al

C o

n tr

ib u

to rs

)

Technical Skills

g

Technical Skills

Human Skills

(

Conceptual Skills

g Skills

Human Skills

Conceptual Skills

e x h i b i t 1.4 Relationship of Technical, Human, and Conceptual Skills to Management

69308_ch01_ptg01.indd 12 11/7/16 4:04 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 13

Human skills are increasingly important for managers at all levels and in all types of organizations.24 Even at a company such as Google, which depends on technical expertise, human skills are considered essen- tial for managers. Google analyzed performance reviews and feedback surveys to find out what makes a good manager of technical people and found that technical expertise ranked dead last among a list of eight desired manager qualities, as shown in Exhibit 1.5. The exhibit lists eight effective behaviors of good managers. Notice that almost all of them relate to human skills, such as communication, coaching, and teamwork. People want managers who listen to them, build positive relationships, and show an interest in their lives and careers.25 A recent study found that human skills were significantly more important than technical skills for predicting manager effectiveness.26 An- other survey compared the importance of managerial skills today with those from the late 1980s and found a decided increase in the role of skills for building relationships with others.27

Holding degrees in both physics and economics, entrepreneur Elon Musk certainly possesses his share of technical skills. He designed and created the first viable electric car—the Tesla roadster—as well as the Web-based payment service PayPal and a spacecraft that will enable private citizens to travel to outer space. But it is his stellar conceptual skills that allow him to lead the innovative companies that are making these products and services available to people worldwide.

Concept Connection

JE RR

Y LA

M PE

N /G

et ty

Im ag

es

I n

t r

o d

u c

t I o

n

1

To know how to build better managers, google executives studied performance reviews, feedback surveys, and award nominations to see what qualities made a good manager. Here are the “Eight good Behaviors” google found, in order of importance:

e x h i b i t 1.5 google’s Rules: Eight good Behaviors for Managers

SOuRCE: “google’s Quest to Build a Better Boss,” by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of google, Inc.

1. Be a good coach.

2. Empower your team and don’t micromanage.

3. Express interest in team members’ successes and personal well-being.

4. Don’t be a sissy: Be productive and results-oriented.

5. Be a good communicator and listen to your team.

6. Help your employees with career development.

7. Have a clear vision and strategy for the team.

8. Have key technical skills so you can help advise the team.

69308_ch01_ptg01.indd 13 11/7/16 4:05 PM

NOT FOR SALE

14

11

Part 1 INTRODuCTION TO MANAgEMENT

1-4C 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 com- munity, 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.28

Conceptual skills are needed by all managers, but especially for managers at the top. Many of the responsibilities of top managers, such as decision making, resource allocation, and innovation, require a broad view. For example, Ursula Burns, who in 2009 became the first African American woman to lead a major U.S. corporation, needs superb conceptual skills to steer Xerox through the tough economy and the rapidly changing technology in- dustry. Sales of copiers and printers have remained flat, prices have declined, and Xerox is battling stronger competitors in a consolidating industry. To keep the company thriving, Burns needs a strong understanding not only of the company, but also of shifts in the in- dustry and the larger environment.29

1-4D When SkillS Fail Good management skills are not automatic. Particularly during turbulent times, managers really have to stay on their toes and apply all their skills and competencies in a way that benefits the organization and its stakeholders—employees, customers, investors, the com- munity, and so forth. In recent years, numerous highly publicized examples have shown what happens when managers fail to apply their skills effectively to meet the demands of an uncertain, rapidly changing world.

Everyone has flaws and weaknesses, and these shortcomings become most apparent under conditions of rapid change, uncertainty, or crisis.30 Think of the recent diesel emis- sions scandal at Volkswagen. In the early 2000s, CEO Martin Winterkorn announced a bold strategy to triple Volkswagen’s sales in the United States in just a decade and become the world’s largest automaker by 2018. The company reached the goal years earlier, surpassing Toyota in July 2015—but Winterkorn had just two months to savor the victory. Winterkorn resigned and several other high-level managers were fired after Volkswagen was discovered to have used software in diesel vehicles designed to cheat U.S. emissions tests. Although Winterkorn says he had no knowledge of the trickery, others say the former CEO’s meticulous attention to every technical detail and the hard-driving culture he created put enormous pressure on managers to meet high goals.31

The numerous ethical and financial scandals of recent years have left people cynical about business and government managers and even less willing to overlook mistakes. Cri- ses and examples of deceit and greed grab the headlines, but many more companies falter or fail less spectacularly. Managers fail to listen to customers, are unable to motivate em- ployees, or can’t build a cohesive team. For example, the reputation of Zynga, maker of games like Farmville that were ubiquitous on Facebook for a while, plummeted along with its share price in recent years. Although there were several problems at Zynga, one was that founder and CEO Mark Pincus had an aggressive style that made it difficult to build a cohesive team. The exodus of key executives left the company floundering, and Zynga’s shares fell 80 percent.32 Exhibit 1.6 shows the top ten factors that cause managers to fail to achieve desired results, based on a survey of managers in U.S. organizations operating in rapidly changing business environments.33 Notice that many of these factors are due to poor human skills, such as the inability to develop good work relationships, a failure to clarify direction and performance expectations, or an inability to create cooperation and teamwork. The number one reason for manager failure is ineffective communication skills

69308_ch01_ptg01.indd 14 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 15

and practices, which was cited by 81 percent of managers surveyed. Especially in times of uncertainty or crisis, if managers do not communicate effectively, including listening to em- ployees and customers and showing genuine care and concern, organizational performance and reputation suffer.

10. Poor planning practices/reactionary behavior

9. Inability to lead/motivate others

8. Inability to develop cooperation and teamwork

7. Lack of personal integrity and trustworthiness

6. Breakdown of delegation and empowerment

5. Failure to adapt and break old habits

4. Failure to clarify direction or performance expectations

3. Person - job mismatch

2. Poor work relationships/interpersonal skills

1. Ineffective communication skills and practices

45%

47%

50%

52%

56%

57%

64%

69%

78%

81%

0% 50% 90%

s 8

s 7

h 6

s 6

s 5

t 5

s 5

k 5

s 4

r 4

e x h i b i t 1.6 Top Causes of Manager Failure

SOuRCE: Adapted from Clinton O. Longenecker, Mitchell J. Neubert, and Laurence S. Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations,” Business Horizons 50 (2007): 145–155, Table 1, with permission from Elsevier.

I n

t r

o d

u c

t I o

n

1

●● Managers have complex jobs that require a range of abilities and skills.

●● Technical skills include the understanding of and proficiency in the performance of specific tasks.

●● Human skills refer to a manager’s ability to work with and through other people and to work effectively as part of a group.

●● Conceptual skills are the cognitive abilities to see the organization as a whole and the relationship among its parts.

●● The two major reasons that managers fail are poor communication and poor interpersonal skills.

●● A manager’s weaknesses become more apparent during stressful times of uncertainty, change, or crisis.

R e m e m b e R T h i s

1-5 Management Types Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations—large and small, manufacturing and service, for-profit and nonprofit, traditional and Internet- based. But not all managers’ jobs are the same. Managers are responsible for different

69308_ch01_ptg01.indd 15 11/7/16 4:05 PM

NOT FOR SALE

16

11

Part 1 INTRODuCTION TO MANAgEMENT

departments, work at different levels in the hierarchy, and meet different requirements for achieving high performance. Twenty-five-year-old Daniel Wheeler is a first-line su- pervisor in his first management job at Del Monte Foods, where he is directly involved in promoting products, approving packaging sleeves, and organizing people to host sampling events.34 Kevin Kurtz is a middle manager at Lucasfilm, where he works with employees to develop marketing campaigns for some of the entertainment company’s hottest films.35 And Denise Morrison is CEO of Campbell Soup Company, the com- pany that also makes Pepperidge Farm baked goods.36 All three are managers and must contribute to planning, organizing, leading, and controlling their organizations—but in different amounts and ways.

1-5A VertiCal diFFerenCeS An important determinant of the manager’s job is the hierarchical level. Exhibit 1.7 illus- trates the three levels in the hierarchy. A study of more than 1,400 managers examined how the manager’s job differs across these three hierarchical levels and found that the primary focus changes at different levels.37 For first-level managers, the main concern is facilitating individual employee performance. Middle managers, however, are concerned less with in- dividual performance and more with linking groups of people, such as allocating resources, coordinating teams, or putting top management plans into action across the organization. For top-level managers, the primary focus is monitoring the external environment and determining the best strategy to be competitive.

Let’s look in more detail at differences across hierarchical levels. Top managers are at the top of the hierarchy and are responsible for the entire organization. They have titles such

Team Leaders and Nonmanagerial Employees

Functional Head

Department Manager

Business Unit Head

General Manager

Administrator

Middle Managers

First-Line Managers

Top Managers Vice- President of Adminis- tration

Corporate or Group Head

CEO

Product Line or Service Manager

Information Services Manager

Production, Sales, R&D Supervisor

IT, HRM, Accounting Supervisor

Line jobs Staff jobs

People at these levels may also have horizontal project manager responsibility

Department Manager

Business Unit Head

General Manager

Administrator

Product Line or Service Manager

Information Services Manager

e x h i b i t 1.7 Management Levels in the Organizational Hierarchy

SOuRCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: growing the general Manager,” Sloan Management Review (Spring 1989): 27–37.

69308_ch01_ptg01.indd 16 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 17

as president, chairperson, executive director, CEO, and executive vice president. Top managers are responsible for setting organizational goals, defining strategies for achiev- ing them, monitoring and interpreting the external environment, and making decisions that affect the entire organization. They look to the long-term future and concern themselves with general environmental trends and the organization’s overall success. Top managers are also responsible for communicating a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company innovate and keep pace with rapid change.38

Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers typically have two or more management levels beneath them. They are re- sponsible for implementing the overall strategies and policies defined by top managers. Middle managers generally are concerned with the near future, rather than with long- range planning.

The middle manager’s job has changed dramatically over the past few decades. Many organizations improved efficiency by laying off middle managers and slashing middle man- agement levels. Traditional pyramidal organization charts were flattened to allow informa- tion to flow quickly from top to bottom and decisions to be made with greater speed. In addition, technology has taken over many tasks once performed by middle managers, such as monitoring performance and creating reports.39 Exhibit 1.7 illustrates the shrinking of middle management.

Yet even as middle management levels have been reduced, the middle manager’s job has taken on a new vitality. Research shows that middle managers play a crucial role in driv- ing innovation and enabling organizations to respond to rapid shifts in the environment.40 “ These are the people who figure out ‘how’ to do the ‘what,’” says Andrew Clay, a manager at a medical devices company.41 In addition, middle managers play a crucial role in getting people the resources they need and keeping them motivated and focused during times of stress and uncertainty, says Quy Huy, a professor of strategy at Insead’s Singapore campus who has studied middle managers at over 100 organizations. Employees “want people of authority to reassure them, to give them direction,” he says.42

A study by Nicholas Bloom and John Van Reenen supports the idea that good middle managers are important to organizational success. In an experiment with textile factories in India, improved middle management practices were introduced into 20 fac- tories in India, and the results were compared to factories that did not improve manage- ment procedures. After just four months of training in better management methods, the 20 factories cut defects by 50 percent, boosted productivity and output, and improved profits by $200,000 a year.43

Perhaps one of the best-known leaders in baseball is Billy Beane of the Oakland A’s. Before he was promoted to executive vice president of baseball operations in late 2015, Beane served for 17 years as general manager of the A’s. Beane is famous for finding and developing talented young players who are less expensive to hire than the big names, which allowed Beane to keep his payroll low while still winning six division titles. Beane was the subject of the best-selling book and hit film Moneyball.

Concept Connection

© D

en ni

s Ku

/S hu

tt er

st oc

k. co

m

I n

t r

o d

u c

t I o

n

1

69308_ch01_ptg01.indd 17 11/7/16 4:05 PM

NOT FOR SALE

18

11

Part 1 INTRODuCTION TO MANAgEMENT

Middle managers’ status also has escalated because of the growing use of teams and projects. A project manager is responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well. Many of today’s middle managers work with a variety of projects and teams at the same time, some of which cross geographical and cultural bound- aries as well as functional ones.

First-line managers are directly responsible for the production of goods and services. They are the first or second level of management and have such titles as supervisor, line manager, section chief, and office manager. They are responsible for teams and nonman- agement employees. Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates. The time horizon at this level is short, with the emphasis on accomplishing day-to-day goals. Consider the job of Alistair Boot, who manages the menswear department for a John Lewis department store in Cheadle, England.44 Boot’s duties include monitoring and supervising shop floor employees to make sure that sales procedures, safety rules, and customer ser- vice policies are followed. This type of managerial job might also involve motivating and guiding young, often inexperienced workers, providing assistance as needed, and ensuring adherence to company policies.

1-5B hOrizOntal diFFerenCeS The other major difference in management jobs occurs horizontally across the organiza- tion. Functional managers are responsible for departments that perform a single func- tional task and have employees with similar training and skills. Functional departments include advertising, sales, finance, human resources, manufacturing, and accounting. Line managers are responsible for the manufacturing and marketing departments that make or sell the product or service. Staff managers are in charge of departments, such as finance and human resources, that support line departments.

General managers are responsible for several departments that perform different func- tions. A general manager is responsible for a self-contained division, such as a Nordstrom department store or a Honda assembly plant, and for all the functional departments within it. Project managers also have general management responsibility because they coordinate people across several departments to accomplish a specific project.

●● There are many types of managers, based on their purpose and location in an organization.

●● A top manager is one who is at the apex of the organizational hierarchy and is responsible for the entire organization.

●● Middle managers work at the middle level of the organization and are responsible for major divisions or departments.

●● A project manager is a manager who is responsible for a temporary work project that involves people from various functions and levels of the organization.

●● Most new managers are first-line managers— managers who are at the first or second level of the hierarchy and are directly responsible for overseeing groups of production employees.

●● A functional manager is responsible for a department that performs a single functional task, such as finance or marketing.

●● General managers are responsible for several departments that perform different functions, such as the manager of a Macy’s department store or a Ford automobile factory.

R e m e m b e R T h i s

69308_ch01_ptg01.indd 18 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 19

I n

t r

o d

u c

t I o

n

1

1-6 What Is a Manager’s Job Really Like? “Despite a proliferation of management gurus, management consultants, and manage- ment schools, it remains murky to many of us what managers actually do and why we need them in the first place,” wrote Ray Fisman, a Columbia Business School professor.45 Unless someone has actually performed managerial work, it is hard to understand exactly what managers do on an hour-by-hour, day-to-day basis. One answer to the question of what managers do to plan, organize, lead, and control was provided by Henry Mintzberg, who followed managers around and recorded all their activities.46 He devel- oped a description of managerial work that included three general characteristics and ten roles. These characteristics and roles, discussed in detail later in this section, have been supported by other research.47

Researchers also have looked at what managers like to do. Both male and female man- agers across five different countries report that they most enjoy activities such as lead- ing others, networking, and leading innovation. Activities that managers like least include controlling subordinates, handling paperwork, and managing time pressures.48 Many new managers in particular find the intense time pressures of management, the load of admin- istrative paperwork, and the challenge of directing others to be quite stressful as they adjust to their new roles and responsibilities. Indeed, the initial leap into management can be one of the scariest moments in a person’s career.

1-6A making the leaP: BeCOming a neW manager Many people who are promoted into a manager position have little idea what the job actu- ally entails and receive little training about how to handle their new role. It’s no wonder that, among managers, first-line supervisors tend to experience the most job burnout and attrition.49

Making the shift from individual contributor to manager is often tricky. Mark Zuckerberg, whose company, Facebook, went public a week before he turned 28 years old, provides an example. In a sense, the public has been able to watch as Zuckerberg has “grown up” as a manager. He was a strong individual performer in creating the social media platform and forming the company, but he fumbled with day-to-day man- agement, such as interactions with employees and communicating with people both inside and outside Facebook. Zuckerberg was smart enough to hire seasoned manag- ers, including former Google executive Sheryl Sandberg, and cultivate advisors and mentors who have coached him in areas where he is weak. He also shadowed David Graham at the offices of The Post Company (the publisher of The Washington Post before it was purchased by Jeff Bezos) for four days to try to learn what it is like to manage a large organization. Now that Facebook is a public company, Zuckerberg is watched more closely than ever to see if he has what it takes to be a manager of a big public corporation.50

Harvard professor Linda Hill followed a group of 19 managers over the first year of their managerial careers and found that one key to success is to recognize that becoming a manager involves more than learning a new set of skills. Rather, becoming a manager means a profound transformation in the way people think of themselves, called personal identity, which includes letting go of deeply held attitudes and habits and learning new ways of thinking.51 Exhibit 1.8 outlines the transformation from individual performer to man- ager. The individual performer is a specialist and a “doer.” His or her mind is conditioned

69308_ch01_ptg01.indd 19 11/7/16 4:05 PM

NOT FOR SALE

20

11

Part 1 INTRODuCTION TO MANAgEMENT

to think in terms of performing specific tasks and activities as expertly as possible. The manager, on the other hand, has to be a generalist and learn to coordinate a broad range of activities. While the individual performer strongly identifies with his or her specific tasks, the manager has to identify with the broader organization and industry.

In addition, the individual performer gets things done mostly through his or her own efforts and develops the habit of relying on self rather than others. The manager, though, gets things done through other people. Indeed, one of the most common mistakes that new managers make is wanting to do all the work themselves, rather than delegating to others and developing others’ abilities.52 Hill offers a reminder that, as a manager, you must “be an instrument to get things done in the organization by working with and through others, rather than being the one doing the work.”53

Another problem for many new managers is that they expect to have greater freedom to do what they think is best for the organization. In reality, though, managers find them- selves hemmed in by interdependencies. Being a successful manager means thinking in terms of building teams and networks and becoming a motivator and organizer within a highly interdependent system of people and work.54 Although the distinctions may sound simple in the abstract, they are anything but. In essence, becoming a manager means be- coming a new person and viewing oneself in a completely new way.

Many new managers have to make the transformation in a “trial by fire,” learning on the job as they go, but organizations are beginning to be more responsive to the need for new manager training. The cost to organizations of losing good employees who can’t make the transition is greater than the cost of providing training to help new managers cope, learn, and grow. In addition, some organizations use great care in selecting people for managerial

complete “Self-Assessment:

Are You a Winner?” to see

how your priorities align

with the demands placed

on a manager.

Specialist; performs specific tasks

Gets things done through own efforts

An individual actor

Works relatively independently

Generalist; coordinates diverse tasks

Gets things done through others

A network builder

Works in highly interdependent manner

GGGGGGGGe co div

To Manager Identity

S p sp

From Individual Identity

e x h i b i t 1.8 Making the Leap from Individual Performer to Manager

SOuRCE: Based on Exhibit 1.1, “Transformation of Identity,” in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2d ed. (Boston, MA: Harvard Business school Press, 2003), p. 6.

69308_ch01_ptg01.indd 20 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 21

I n

t r

o d

u c

t I o

n

1

positions, including ensuring that each candidate understands what management involves and really wants to be a manager.

1-6B manager aCtiVitieS Most new managers are unprepared for the variety of activities that managers routinely perform. One of the most interesting findings about managerial activities is how busy managers are and how hectic the average workday can be.

Adventures in Multitasking

Managerial activity is characterized by variety, fragmentation, and brevity.55 The wide- spread and voluminous nature of a manager’s tasks leaves little time for quiet reflection. A recent study by a team from the London School of Economics and Harvard Business School found that the time CEOs spend working alone averages a mere six hours a week. The rest of their time is spent in meetings, on the phone, traveling, and talking with others inside and outside the organization.56

Managers shift gears quickly. In his study, Mintzberg found that the average time a top executive spends on any one activity is less than nine minutes, and another survey indicates that some first-line supervisors average one activity every 48 seconds!57 Significant crises are interspersed with trivial events in no predictable sequence. Every manager’s job is simi- lar in its diversity and fragmentation to what Workforce Management described as a typical day in the life of human resources (HR) manager Kathy Davis:58

●● 6:55 a.m.—Arrives at work early to begin investigating a complaint of sexual harassment at one of the factories, but as she’s walking to her office, she bumps into someone carrying a picket sign that reads “Unfair Hiring! Who Needs HR?” Spends a few minutes talking with the young man, who is a temp that she had let go due to sloppy work.

●● 7:10 a.m.—Finds the factory shift supervisor and a security staff member already wait- ing outside her door to discuss the sexual harassment complaint.

●● 7:55 a.m.—Sue, a member of Kathy’s team who has just arrived and is unaware of the meeting, interrupts to let Kathy know there is someone picketing in the hallway out- side her office and the CEO wants to know what’s going on.

●● 8:00 a.m.—Alone at last, Kathy calls the CEO and explains the picketing situation, and then she begins her morning routine. Checking voice mail, she finds three mes- sages that she must respond to immediately, and she passes four others to members of her team. She begins checking e-mail but is interrupted again by Sue, who reminds her they have to review the recent HR audit so that the company can respond promptly and avoid penalties.

●● 9:15 a.m.—As she is reviewing the audit, Kathy gets a call from manager Pete Channing, asking if she’s sent the offer letter to a prospective hire. “Don’t send it,” Pete said, “I’ve changed my mind.” Weeks of interviewing and background checks, and now Pete wants to start over!

●● 11:20 a.m.—Kathy is getting to the end of her critical e-mail list when she hears a commotion outside her door and finds Linda and Sue arguing. “ This report IT did for us is full of errors,” Linda says, “but Sue says we should let it go.” Kathy agrees to take a look at the IT department’s report and discovers that there are only a few errors, but they have critical implications.

●● 12:25 p.m.—As she’s nearing the end of the IT report, Kathy’s e-mail pings an “urgent” message from a supervisor informing her that one of his employees will be absent from work for a few weeks “while a felony morals charge is worked out.” This is the first she’s heard about it, so she picks up the phone to call the supervisor.

complete “Self-Assessment:

How do You Manage

Your time?” to see how

good you are at time

management.

69308_ch01_ptg01.indd 21 11/7/16 4:05 PM

NOT FOR SALE

22

11

Part 1 INTRODuCTION TO MANAgEMENT

●● 1:20 p.m.—Time for lunch—finally. She grabs a sandwich at a local supermarket and brings one back for the picketer, who thanks her and continues his march.

●● 2:00 p.m.—Meets with CEO Henry Luker to review the audit and IT reports, discuss changes to the company’s 401(k) plan, and talk about ideas for reducing turnover.

●● 3:00 p.m.—Rushes back to her office to grab her keys so that she can drive to a meeting with the manufacturing facilities manager, who has asked Kathy to “shadow” him and share ideas about training and skills development.

●● 3:15 p.m.—As she gets out of her car at the facility, Kathy runs into a man who had attended a supervision training course a few months earlier. He tells her that the class really helped him—there are fewer misunderstandings, and the staff seems to respect him more.

●● 3:30 p.m.—Arrives right on time and spends the next couple of hours observing and asking questions, talking to employees to learn about the problems and obstacles they face.

●● 5:40 p.m.—All is quiet back in the HR department, but there’s a message from Sue that Kathy has an appointment first thing tomorrow morning with two women who had gotten into a fight in the elevator. Sighing, Kathy returns to her investigation of the sexual harassment complaint that she had begun at 7:00 that morning.

Life on Speed Dial

The manager performs a great deal of work at an unrelenting pace.59 Managers’ work is fast-paced and requires great energy. Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time traveling.60 Calendars are often booked months in advance, but unexpected disturbances erupt every day. Mintzberg found that the majority of executives’ meetings and other contacts are ad hoc, and even scheduled meetings are typically surrounded by other events such as quick phone calls, scanning of e-mail, or spontaneous encounters. During time away from the office, executives catch up on work-related reading, paperwork, phone calls, and e-mail. Technology, such as e-mail, text messaging, smartphones, tablets, and laptops, has intensified the pace. Brett Yormark, the National Basketball Association (NBA)’s youngest CEO (he heads the Brooklyn Nets), typically responds to about 60 messages before he even shaves and dresses for the day, and employees are accustomed to getting messages that Yormark has zapped to them in the wee hours of the morning.61

New managers sometimes find themselves overwhelmed by the various activities, multiple responsibilities, long hours, and fast pace that come with management. A manager’s life on speed dial requires good time management skills. Managers must also find ways to maintain a healthy balance between their work and personal lives.

Concept Connection

© p

at hd

oc /S

hu tt

er st

oc k.

co m

69308_ch01_ptg01.indd 22 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 23

The fast pace of a manager’s job is illustrated by Michelle Davis, an analytics director at Fair Isaac Cor- poration (FICO). As a middle manager at this com- pany, which is best known for calculating consumer credit scores, Davis oversees three direct reports and three other subordinates assigned to her teams. On a typical day, she arrives at work at 6:00 a.m. so she can pick up her children in the early afternoon, and she uses the first hour and a half of quiet time to catch up on messages and respond to urgent requests for data. At 7:30, she has her first meeting, often a conference call with the analytics board of directors. Then Davis leads an hour-long training session for a few dozen staffers on new analytics products, staying longer to answer questions and talk about how clients might use the data. At 10:30 a.m., she checks in with senior members of the product development and product management teams and sorts out various prob- lems. Lunch is a quick stop at the company cafeteria and then on to present a few slides at the monthly lunch-and-learn session. Davis squeezes in an hour or so of hands-on work time before it’s back to more meetings. Afternoon meetings often run long, mean- ing she has to scramble to pick up her three children. While the kids eat snacks and play in the backyard, Davis catches up on e-mail and phone calls. After dinner with her husband, she tries to stay away from work, but admits that she keeps an eye on her text messages until bedtime.62

Where Does a Manager Find the Time?

With so many responsibilities and so many competing demands on their time, how do man- agers cope? One manager who was already working 18-hour days five days a week got as- signed another project. When the CEO was informed of the problem, he matter-of-factly remarked that by his calculations, she still had “30 more hours Monday through Friday, plus 48 more on the weekend.” That is surely an extreme example, but most managers often feel the pressure of too much to do and not enough time to do it.63 The Wall Street Journal’s “Les- sons in Leadership” video series asked CEOs of big companies how they managed their time, and it found that many of them carve out time just to think about how to manage their time.64 Time is a manager’s most valuable resource, and one characteristic that identifies successful managers is that they know how to use time effectively to accomplish the important things first and the less important things later.65 Time management refers to using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life. New managers in particular often struggle with the increased workload, the endless paperwork, the incessant meetings, and the constant in- terruptions that come with a management job. Learning to manage their time effectively is one of the greatest challenges that new managers face. The “Manager’s Shoptalk” box offers some tips for time management.

As the executive vice president of marketing at Microsoft, Tami Reller plays a number of significant interpersonal roles. She serves as the top leader for the company’s bevy of marketers on functions like advertising, media usage, and distribution, and she is often Microsoft’s liaison with the public, providing information about Windows and other products.

Concept Connection

Et ha

n M

ill er

/G et

ty Im

ag es

I n

t r

o d

u c

t I o

n

1

69308_ch01_ptg01.indd 23 11/7/16 4:05 PM

NOT FOR SALE

24

11

Part 1 INTRODuCTION TO MANAgEMENT

M a n a g e R ’ S

time management tips for new managers

B ecoming a manager is considered by most people to be a positive, forward-looking career move, and indeed, life as a manager offers appealing aspects. However, it also holds many challenges, not the

least of which is the increased workload and the difficulty of finding the time to accomplish everything on one’s ex- panded list of duties and responsibilities. The following classic time management techniques can help you elimi- nate major time-wasters in your daily routines.

●● keep a to-do list. If you don’t use any other system for keeping track of your responsibilities and commit- ments, at the very least you should maintain a to-do list that identifies all the things that you need to do during the day. Although the nature of management means that new responsibilities and shifting priorities occur frequently, it’s a fact that people accomplish more with a list than without one.

●● remember Your aBCs. This is a highly effective sys- tem for prioritizing tasks or activities on your to-do list:

●● An “A” item is something highly important. It must be done, or you’ll face serious consequences.

●● A “B” item is a should do, but consequences will be minor if you don’t get it done.

●● “C” items are things that would be nice to get done, but there are no consequences at all if you don’t accomplish them.

●● “D” items are tasks that you can delegate to someone else.

●● Schedule Your Workday. Some experts propose that every minute spent in planning saves ten minutes in execution. Take your to-do list a step further and plan how you will accomplish each task or project you need to handle. Planning to tackle the big tasks first is a good idea because most people are at peak per- formance early in the day. Save the e-mails and phone calls for less productive times.

●● do One thing at a time. Multitasking has become the motto of the early twenty-first century, but too much multitasking is a time-waster. Research has shown that multitasking reduces rather than enhances productivity. The authors of one study suggest that an inability to focus on one thing at a time could reduce efficiency by 20 to 40 percent. Even for those whose job requires numerous brief activities, the ability to concentrate fully on each one (sometimes called spot- lighting) saves time. Give each task your full attention, and you’ll get more done and get it done better, too.

Sources: Based on information in Pamela Dodd and Doug Sundheim, The 25 Best Time Management Tools & Techniques (Ann Arbor, MI: Peak Performance Press, Inc., 2005); Brian Tracy, Eat That Frog: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time (San Francisco: Berrett-Koehler, 2002); Joshua S. Rubinstein, David E. Meyer, and Jeffrey E. Evans, “Executive Control of Cognitive Processes in Task Switching,” Journal of Experimental Psychology: Human Perception and Performance 27, no. 4 (August 2001): 763–797; Sue Shellenbarger, “Multitasking Makes You Stupid: Studies Show Pitfalls of Doing Too Much at Once,” The Wall Street Journal (February 27, 2003); and Ilya Pozin, “Quit Working Late: 8 Tips,” Inc. (June 26, 2013), http:// www.inc.com/ilya-pozin/8-ways-to-leave-work-at-work.html (accessed August 19, 2013).

Shoptalk

1-6C manager rOleS Mintzberg’s observations and subsequent research indicate that diverse manager activi- ties can be organized into ten roles.66 A role is a set of expectations for a manager’s be- havior. Exhibit 1.9 describes activities associated with each of the roles. These roles are divided into three conceptual categories: informational (managing by information), in- terpersonal (managing through people), and decisional (managing through action). Each role represents activities that managers undertake to ultimately accomplish the functions of planning, organizing, leading, and controlling. Although it is necessary to separate the components of the manager’s job to understand the different roles and activities of a man- ager, it is important to remember that the real job of management isn’t practiced as a set of independent parts; all the roles interact in the real world of management.

Informational Roles

Informational roles describe the activities used to maintain and develop an information network. General managers spend about 75 percent of their time communicating with

69308_ch01_ptg01.indd 24 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 25

I n

t r

o d

u c

t I o

n

1

other people. The monitor role involves seeking current information from many sources. The manager acquires information from others and scans written materials to stay well informed. The disseminator and spokesperson roles are just the opposite: The man- ager transmits current information to others, both inside and outside the organization, who can use it. Steve Ells, founder and CEO of Chipotle Mexican Grill, provides an example of the spokesperson role. After voluntarily closing numerous restaurants due to an E. coli outbreak in late 2015, Ells appeared on NBC’s Today Show to apologize for the restaurant chain’s food-safety problems and vow to implement new procedures that will make Chipotle the “safest place to eat.”67

Interpersonal Roles

Interpersonal roles pertain to relationships with others and are related to the human skills described earlier. The figurehead role involves handling ceremonial and symbolic activities for the department or organization. The manager represents the organization in his or her formal managerial capacity as the head of the unit. The presentation of employee awards by a branch manager for Commerce Bank is an example of the figurehead role. The leader role encompasses relationships with subordinates, including motivation, communication, and

Monitor: Seek and receive information; scan Web, periodicals, reports; maintain personal contacts Disseminator: Forward information to other organization members; send memos and reports, make phone calls Spokesperson: Transmit information to outsiders through speeches, reports

Informational

information to outsiders through speeches, reports

Decisional

Entrepreneur: Initiate improvement projects; identify new ideas, delegate idea responsibility to others Disturbance Handler: Take corrective action during conflicts or crises; resolve disputes among subordinates Resource Allocator: Decide who gets resources; schedule, budget, set priorities Negotiator : Represent team or department’s interests; represent department during negotiation of budgets, union contracts, purchases

cisional

iate improvement ew ideas, delegate idea

thers ler: Take corrective action during resolve disputes among subordinates

Figurehead: Perform ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader: Direct and motivate subordinates; train, counsel, and communicate with subordinates Liaison: Maintain information links inside and outside the organization; use e-mail, phone, meetings

Interpersonal

e x h i b i t 1.9 Ten Manager Roles

SOuRCE: Adapted from Henry Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973), pp. 92–93; and Henry Mintzberg, “Managerial Work: Analysis from Observation,” Management Science 18 (1971), B97–B110.

69308_ch01_ptg01.indd 25 11/7/16 4:05 PM

NOT FOR SALE

26

11

Part 1 INTRODuCTION TO MANAgEMENT

influence. The liaison role pertains to the development of information sources both inside and outside the organization. Consider the challenge of the leader and liaison roles for managers at National Foods, Pakistan’s largest maker of spices and pickles. Managers in companies throughout Pakistan struggle with growing political instability, frequent power outages, government corruption and inefficiency, and increasing threats of terror- ism, all of which makes the leader role even more challenging. “In the morning, I assess my workers,” says Sajjad Farooqi, a supervisor at National Foods. If Farooqi finds people who are too stressed or haven’t slept the night before, he changes their shift or gives them easier work. Farooqi also pays a lot of attention to incentives because people are under so much pressure. As for the liaison role, managers have to develop information sources that are not only related to the business, but safety and security concerns as well.68

Decisional Roles

Decisional roles pertain to those events about which the manager must make a choice and take action. These roles often require conceptual as well as human skills. The entrepreneur role involves the initiation of change. Managers are constantly thinking about the future and the changes needed to achieve a future goal or vision. The disturbance handler role involves resolving conflicts among subordinates or between the manager’s department and other departments. The resource allocator role pertains to decisions about how to assign people, time, equipment, money, and other resources to attain desired outcomes. The manager must decide which proj- ects receive budget allocations, which of several customer complaints receive priority, and even how to spend his or her own time. Managers for nonprofit organizations must carefully de- cide how to allocate resources. Second Harvest Food Bank of Middle Tennessee cut waste by 50 percent after managers decided to invest in new technology to manage inventory.

It’s a good problem to have, but it’s still a problem that needed to be solved. People like to donate during the holidays, and food donations to Second Harvest Food Bank of Middle Tennessee swell to nearly double what the nonprofit organization receives during the rest of the year. It was a huge logistical challenge for the operation, which depends largely on volunteers. Second Harvest, like other food banks, needs to deliver perishable items before they expire and save as many canned and dried foods as it can to distribute in the months when donations tend to decline.

Second Harvest managers didn’t have the millions of dollars Amazon.com or Walmart stores have poured into specialized inventory management systems, but with the cost of technology declining, they were able to buy logistics software from Exact Macola. Exact Macola has donated upgrades to the software since that initial purchase and has begun donating its software to other food banks nation- wide. The software records when food products are received and their “use-by” dates. Volunteers and employees rely on automated alerts to let them know when goods are expiring and where they are located in the warehouse. The ability to know in an instant what needs to be used immediately and what can be stored for later use helps Second Harvest get the most out of its limited space, says Dennis Easter, the agency’s information systems director. Managers have also been able to use data on food distribution to decide on where to build two new facilities, which are projected to save $500,000 in transportation costs.69

MANAGER SPOTLIGHT Second harvest

Food Bank of Middle tennessee

The relative emphasis that a manager puts on the ten roles shown in Exhibit 1.9 depends on a number of factors, such as the manager’s position in the hierarchy, natural skills and abil- ities, type of organization, and departmental goals to be achieved. Exhibit 1.10 illustrates the varying importance of the leader and liaison roles as reported in a survey of top-, middle-, and lower-level managers. Note that the importance of the leader role typically declines, while the importance of the liaison role increases, as a manager moves up the organizational hierarchy.

69308_ch01_ptg01.indd 26 11/7/16 4:05 PM

NOT FOR SALE

ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 27

I n

t r

o d

u c

t I o

n

1

Other factors, such as changing environmental conditions, also may determine which roles are more important for a manager at any given time. Robert Dudley, who took over as CEO of troubled oil giant BP after Tony Hayward was forced out due to mishandling the Deepwater Horizon crisis in 2010, found informational roles and decisional roles at the top of his list as he has personally worked to repair relationships with U.S. government officials, mend fences with local communities, carve a path toward restoring the company’s reputation, and take steps to prevent such a disastrous event from ever happening again.70 Managers stay alert to needs both within and outside the organization to determine which roles are most critical at various times. A top manager may regularly put more emphasis on the roles of spokesperson, figurehead, and negotiator, but the emergence of new competitors may require more attention to the monitor role, or a severe decline in employee morale and direction may mean that the CEO has to put more emphasis on the leader role. A marketing manager may focus on interpersonal roles because of the importance of personal contacts in the marketing process, whereas a financial manager may be more likely to emphasize decisional roles such as resource allocator and negotiator. Despite these differences, all managers carry out informa- tional, interpersonal, and decisional roles to meet the needs of the organization.

influence. The liaison role pertains to the development of information sources both inside and outside the organization. Consider the challenge of the leader and liaison roles for managers at National Foods, Pakistan’s largest maker of spices and pickles. Managers in companies throughout Pakistan struggle with growing political instability, frequent power outages, government corruption and inefficiency, and increasing threats of terror- ism, all of which makes the leader role even more challenging. “In the morning, I assess my workers,” says Sajjad Farooqi, a supervisor at National Foods. If Farooqi finds people who are too stressed or haven’t slept the night before, he changes their shift or gives them easier work. Farooqi also pays a lot of attention to incentives because people are under so much pressure. As for the liaison role, managers have to develop information sources that are not only related to the business, but safety and security concerns as well.68

Decisional Roles

Decisional roles pertain to those events about which the manager must make a choice and take action. These roles often require conceptual as well as human skills. The entrepreneur role involves the initiation of change. Managers are constantly thinking about the future and the changes needed to achieve a future goal or vision. The disturbance handler role involves resolving conflicts among subordinates or between the manager’s department and other departments. The resource allocator role pertains to decisions about how to assign people, time, equipment, money, and other resources to attain desired outcomes. The manager must decide which proj- ects receive budget allocations, which of several customer complaints receive priority, and even how to spend his or her own time. Managers for nonprofit organizations must carefully de- cide how to allocate resources. Second Harvest Food Bank of Middle Tennessee cut waste by 50 percent after managers decided to invest in new technology to manage inventory.

Supervisory Managers

High

Med

Low

Im p

o rt

an ce

Middle Managers

Top Managers

Leader role

Liaison role

e x h i b i t 1.10 Hierarchical Levels and Importance of Leader and Liaison Roles

SOuRCE: Based on information from A. I. Kraut, P. R. Pedigo, D. D. McKenna, and M. D. Dunnette, “The Role of the Manager: What’s Really Important in Different Management Jobs,” Academy of Management Executive 3 (1989), 286–293.

●● Becoming a new manager requires a shift in thinking from being an individual performer to playing an inter- dependent role of coordinating and developing others.

●● Because of the interdependent nature of management, new managers often have less freedom and control than they expect to have.

●● The job of a manager is highly diverse and fast-paced, so managers need good time management skills.

●● A role is a set of expectations for one’s behavior. ●● Managers at every level perform ten roles, which are

grouped into informational roles, interpersonal roles, and decisional roles.

R e m e m b e R T h i s

69308_ch01_ptg01.indd 27 11/7/16 4:05 PM

NOT FOR SALE

28

11

Part 1 INTRODuCTION TO MANAgEMENT

1-7 Managing in Small Businesses and nonprofit Organizations Small businesses are growing in importance. Hundreds of small businesses open every month, but the environment for small business today is highly complicated. Chapter 6 provides detailed information about managing in small businesses and entrepreneurial start-ups.

One interesting finding is that managers in small businesses tend to emphasize roles different from those of managers in large corporations. Managers in small companies of- ten see their most important role as that of spokesperson because they must promote the small, growing company to the outside world. The entrepreneur role is also critical in small businesses because managers must be innovative and help their organizations develop new ideas to remain competitive. For example, Zach Schau, his younger brother Jordan, and two of their childhood friends founded Pure Fix Cycles. After finding a way to build fixed- gear bikes, or “fixies,” that could be sold for less than half what they were selling for at the time, the founders hired a top manager so they could focus on further innovations. Fast Fix then became a pioneer in the business of glow-in-the-dark bikes.71 Small-business manag- ers tend to rate lower on the leader role and on information-processing roles, compared with their counterparts in large corporations.

Nonprofit organizations also represent a major application of management talent.72 Organizations such as the Salvation Army, Nature Conservancy, Greater Chicago Food Depository, Girl Scouts, and Cleveland Orchestra all require excellent management. The functions of planning, organizing, leading, and controlling apply to nonprofits just as they do to business organizations, and managers in nonprofit organizations use similar skills and perform similar activities. The primary difference is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct their efforts toward generating some kind of social impact. The char- acteristics and needs of nonprofit organizations created by this distinction present unique challenges for managers.73

Financial resources for government and charity nonprofit organizations typically come from taxes, appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving the organization’s prod- ucts and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as pos- sible.74 Donors generally want their money to go directly to helping clients rather than for overhead costs. If nonprofit managers can’t demonstrate a highly efficient use of resources, they might have a hard time securing additional donations or government appropriations. Although the Sarbanes-Oxley Act (the 2002 corporate governance reform law) doesn’t ap- ply to nonprofits, for example, many are adopting its guidelines, striving for greater trans- parency and accountability to boost credibility with constituents and be more competitive when seeking funding.75

In addition, some types of nonprofit organizations, such as hospitals and private uni- versities that obtain revenues from selling services to clients, do have to contend with a bottom line in the sense of having to generate enough revenues to cover expenses, so manag- ers often struggle with the question of what constitutes results and effectiveness. It is easy to measure revenues compared to expenses, but the metrics of success in nonprofits are typically much more ambiguous. Managers have to measure intangibles such as “improve public health,” “upgrade the quality of education,” or “increase appreciation for the arts.” This intangible nature also makes it more difficult to gauge the performance of employees

69308_ch01_ptg01.indd 28 11/7/16 4:05 PM

NOT FOR SALE

I n

t r

o d

u c

t I o

n

1ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 29

Despite having launched and sold several successful start-ups already, San Francisco–based small business owner Loïc Le Meur is still a hands-on kind of manager. His daily blog about the blogosphere and the Web in general is read by hundreds of thousands of people worldwide, and he is the chief organizer behind Europe’s largest annual tech conference, LeWeb.

Concept Connection

FR A

N CK

F IF

E/ G

et ty

Im ag

es

I n

t r

o d

u c

t I o

n

1

●● Good management is just as important for small businesses and nonprofit organizations as it is for large corporations.

●● Managers in these organizations adjust and integrate the various management functions, activities, and roles to meet the unique challenges they face.

●● Managers in small businesses often see their most important roles as being a spokesperson for the business and acting as an entrepreneur.

●● Managers in nonprofit organizations direct their efforts toward generating some kind of social impact rather than toward making money for the organization.

●● Managers in nonprofit organizations often struggle with what constitutes effectiveness.

R e m e m b e R T h i s

On the Job: the World of innovative Management

Discussion Questions

1. List the three broad management skill categories and explain which skills are needed most for each of the Camp Bow Wow leaders highlighted in the video.

2. Which activities at Camp Bow Wow require high efficiency? Which activities require high effectiveness?

3. List two activities that managers at Camp Bow Wow perform daily, and identify which of the ten managerial roles discussed in this chapter figure prominently for each.

ch1 On the Job Video Cases

and managers. An added complication is that managers in some types of nonprofits depend on volunteers and do- nors, who cannot be supervised and controlled in the same way that a business manager deals with employees. Many people who move from the corporate world to a nonprofit are surprised to find that the work hours are often longer and the stress greater than in their previous management jobs.76

The roles defined by Mintzberg also apply to nonprofit managers, but they may differ somewhat. We might expect managers in nonprofit organizations to place more emphasis on the roles of spokesperson (to “sell” the organization to donors and the public), leader (to build a mission-driven community of employees and volunteers), and resource alloca- tor (to distribute government resources or grant funds that are often assigned top-down).

Managers in all organizations—large corporations, small businesses, and nonprofit organizations—carefully integrate and adjust the management functions and roles to meet challenges within their own circumstances and keep their organizations healthy.

69308_ch01_ptg01.indd 29 11/7/16 4:05 PM

NOT FOR SALE

1

Part 1 INTRODuCTION TO MANAgEMENT30

1. How do you feel about having management responsibilities in today’s world, which is 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 and that you work with managers from research, production, and marketing on a major product modification. You notice that every memo you receive from the marketing manager has been copied to senior management. At every company function, she spends time talking to the big shots. You are also aware that sometimes when you and the other project members are slaving away over the project, she is playing golf with senior managers. What is your evaluation of her behavior? As project manager, what do you do?

3. Jeff Immelt, CEO of GE, tweeted for the first time in September 2012, prompting this response: “ @JeffImmelt how come my grandfather got on twitter before you?” Do you think managers should use Twitter and other social media? Can you be an effective manager today without using new media? Why?

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’s nearly 20 years at Cisco)? What factors about the manager or about the company might account for this difference?

5. Think about the highly publicized safety recall at General Motors (GM) for defective ignition systems. 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.

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 learning them?

7. If managerial work is characterized by variety, fragmentation, and brevity, how do managers perform basic management functions such as planning, which would seem to require reflection and analysis?

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?

10. How might the teaching of a management course be designed to help people make the transition from individual performer to manager in order to prepare them for the challenges they will face as new managers?

ch1 Discussion Questions

Aptitude Questionnaire Rate each of the following questions according to the following scale:

1 I am never like this.

2 I am rarely like this.

3 I am sometimes like this.

4 I am often like this.

5 I am always like this.

1. When I have a number of tasks or homework to do, I set priorities and organize the work around deadlines. 1 2 3 4 5

2. Most people would describe me as a good listener. 1 2 3 4 5

3. When I am deciding on a particular course of action for myself (such as hobbies to pursue, languages to study,

which job to take, or special projects to be involved in), I typically consider the long-term (three years or more) implications of what I would choose to do. 1 2 3 4 5

4. I prefer technical or quantitative courses rather than those involving literature, psychology, or sociology. 1 2 3 4 5

5. When I have a serious disagreement with someone, I hang in there and talk it out until it is completely resolved. 1 2 3 4 5

6. When I have a project or assignment, I really get into the details rather than the “big picture” issues. 1 2 3 4 5

7. I would rather sit in front of my computer than spend a lot of time with people. 1 2 3 4 5

ch1 apply Your Skills: Experiential Exercise

69308_ch01_ptg01.indd 30 11/7/16 4:05 PM

NOT FOR SALE

I n

t r

o d

u c

t I o

n

1ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 31

8. I try to include others in activities or discussions. 1 2 3 4 5

9. When I take a course, I relate what I am learning to other courses I took or concepts I learned elsewhere. 1 2 3 4 5

10. When somebody makes a mistake, I want to correct the person and let her or him know the proper answer or approach. 1 2 3 4 5

11. I think it is better to be efficient with my time when talking with someone, rather than worry about the other person’s needs, so that I can get on with my real work. 1 2 3 4 5

12. I have a long-term vision of career, family, and other activities and have thought it over carefully. 1 2 3 4 5

13. When solving problems, I would much rather analyze some data or statistics than meet with a group of people. 1 2 3 4 5

14. When I am working on a group project and someone doesn’t pull a fair share of the load, I am more likely to complain to my friends than to confront the slacker. 1 2 3 4 5

15. Talking about ideas or concepts can get me really enthusiastic or excited. 1 2 3 4 5

16. The type of management course for which this book is used is really a waste of time. 1 2 3 4 5

17. I think it is better to be polite and not hurt people’s feelings. 1 2 3 4 5

18. Data and things interest me more than people. 1 2 3 4 5

Scoring and interpretation Subtract your scores for questions 6, 10, 14, and 17 from the number 6, and then add the total points for the following sections:

1, 3, 6, 9, 12, 15 Conceptual skills total score ________

2, 5, 8, 10, 14, 17 Human skills total score ________

4, 7, 11, 13, 16, 18 Technical skills total score ________

These skills are three of the skills needed to be a good manager. Ideally, a manager should be strong (though not necessarily equal) in all three. Anyone noticeably weaker in any of these skills should take courses and read to build up that skill. For further background on the three skills, please refer to the explanation in the Management Skills section.

Your best and Worst Managers Step 1. On your own, think of two managers that you have had—the best and the worst. The managers could be anyone who served as an authority figure over you, including an instructor, a boss at work, a manager of a student organization, a leader of a student group, a coach, a volunteer committee in a nonprofit organization, and so on. Think carefully about the specific behaviors that made each manager the best or the worst and write down what that manager did.

The best manager I ever had did the following:

________________________________________

________________________________________

________________________________________

________________________________________

The worst manager I ever had did the following:

________________________________________

________________________________________

________________________________________

________________________________________

Step 2. Divide into groups of four to six members. Each person should share his or her experiences, one at a time. On a sheet of paper or on whiteboard, write separate lists of best-manager and worst-manager behaviors. Step 3. Analyze the two lists. What themes or patterns characterize “best” and “worst” manager behaviors? What are the key differences between the two sets of behaviors? Step 4. What lessons does your group learn from its analysis? What advice or “words of wisdom” would you give managers to help them be more effective?

ch1 apply Your Skills: Small Group Breakout

69308_ch01_ptg01.indd 31 11/7/16 4:05 PM

NOT FOR SALE

1

Part 1 INTRODuCTION TO MANAgEMENT32

Can Management Afford to Look the Other Way?77

Harry Rull had been with Shellington Pharmaceuticals for 30 years. After a tour of duty in the various plants and seven years overseas, Harry was back at headquarters, looking forward to his new role as vice president of U.S. marketing.

Two weeks into his new job, Harry received some unsettling news about one of the managers that he supervised. During a casual lunch conversation, Sally Barton, the director of human resources, mentioned that Harry should expect a phone call about Roger Jacobs, manager of new product development. Jacobs had a history of being “pretty horrible” to his subordinates, she said, and one disgruntled employee asked to speak to someone in senior management. After lunch, Harry did some follow-up work. Jacobs’s performance reviews were stellar, but his personnel file also contained a large number of notes documenting charges of Jacobs’s mistreatment of subordinates. The complaints ranged from “inappropriate and derogatory remarks” to charges of sexual harassment (which were subsequently dropped). What was more disturbing was the fact that the number and the severity of the complaints had increased with each of Jacobs’s ten years with Shellington.

When Harry questioned the company president about the issue, he was told, “Yeah, he’s had some problems,

but you can’t just replace someone with an eye for new products. You’re a bottom-line guy; you understand why we let these things slide.” Not sure how to handle the situation, Harry met briefly with Jacobs and reminded him to “keep the team’s morale up.” Just after the meeting, Barton called to let him know that the problem that she’d mentioned over lunch had been worked out. However, she warned, another employee had come forward and demanded that her complaints be addressed by senior management.

What Would You Do?

1. Ignore the problem. Jacobs’s contributions to new product development are too valuable to risk losing him, and the problems over the past ten years have always worked themselves out anyway. There’s no sense starting something that could make you look bad.

2. Launch a full-scale investigation of employee complaints about Jacobs and make Jacobs aware that his documented history over the past ten years has put him on thin ice.

3. Meet with Jacobs and the employee to try to resolve the current issue, and then start working with Barton and other senior managers to develop stronger policies regarding sexual harassment and treatment of employees, including clear-cut procedures for handling complaints.

ch1 apply Your Skills: Ethical Dilemma

ch1 apply Your Skills: Case for Critical analysis

SmartStyle Salons Jamika Westbrook takes pride in her position as salon manager for SmartStyle Salon, one of six local hair salons associated with a large retail store chain located in the Southeast and one of five chain store groups under the Gold Group umbrella. She oversees a staff of 30, including hairdressers, a nail technician, receptionists, shampoo assistants, and a custodian. She enjoys a reputation as a manager who works very hard and takes care of her people. Hairdressers want to work for her.

Following the salon’s new-hire policy, Jamika began as a shampoo assistant and quickly became a top hairdresser in the company through a combination of skill, a large and loyal client base, and long hours at work. In 2007, retiring manager Carla Weems hand-picked Jamika as her successor, and the board quickly approved.

Initially, the salon, located in a suburban mall, managed a strong, steady increase, holding its position as one of the corporation’s top performers. But economic woes hit the area hard, with increases in unemployment, mortgage woes, and foreclosures among current and potential customers. As families sought ways to save, the luxury of regular visits to the hair salon was among the first logical budget

cuts. The past year has reflected this economic reality, and Jamika’s salon saw a sharp decrease in profits.

Jamika’s stomach is in knots as she arrives at the salon on Monday. Scheduled to fly to Atlanta the next morning for a meeting at corporate, she fears potential staffing cuts, but more important, she fears the loss of opportunity to secure her dream job: replacing the retiring manager at the Riverwood Mall location, which is the top-performing salon and is located in an upscale area of the city.

Distracted, Jamika walks past the receptionist, Marianne, who is busily answering the phones. Hanging up the phone, Marianne tells Jamika that Holly and Carol Jean, two popular hairdressers, called in sick, and Jamika now has to reschedule their clients. Jamika had denied their earlier request to travel out of town to attend a concert, and her irritation is obvious. She orders Marianne to call both women and instruct them that, when they return to work, they are to bring a doctor’s statement and a copy of any prescriptions that they were given. “ They had better be sick!” Jamika shouts as she enters her office, slamming the door more forcefully than she intended. Startled employees and early-morning customers hear the outburst, and, after a momentary pause, they resume their activities and quiet

69308_ch01_ptg01.indd 32 11/7/16 4:05 PM

NOT FOR SALE

I n

t r

o d

u c

t I o

n

1ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 33

conversation, surprised by the show of managerial anger. Jamika knows she has let Holly and Carol Jean get away with unwarranted absences before and worries that she will do it again. She needs every head of hair that they can style to help the salon’s profit.

Jamika takes a deep breath and sits at her desk, turning on the computer and checking e-mails, including one from the group manager reminding her to send the salon’s status report in advance of tomorrow’s meeting. She buzzes Marianne on the intercom to request final figures for the report on her desk by 1:00 p.m.

Picking up the phone, she calls Sharon, a manager at another SmartStyle salon. “I really lost my cool in front of everyone, but I’m not apologizing,” Jamika admits, adding that she wished she had the guts to fire both stylists. “But this is not the day for that drama. I’ve got that report hanging over my head. I have no idea how to make things look better than they are, but I have to come up with something. Things look pretty dismal.”

Sharon assures her that she did the best she could dealing with two “irresponsible” employees. “What will you do if they show up tomorrow with no doctor’s statement?”

“I don’t know. I hope I scared them enough so that they’ll come in with something.”

“I know you’re worried about the report and the effect it might have on the Riverwood job,” Sharon says. “But everyone knows you can’t control the economy and its effect on the business. Just focus on the positive. You’ll be fine.”

At 10:30, as Jamika struggles to put the best possible spin on the report, she is paged to the receptionist desk to speak to an angry customer. “Another interruption,” Jamika fumes to herself. Just then, the door opens and top stylist/assistant manager Victoria Boone sticks her head into the office.

“I know you’re busy with the report. I’ll handle this,” she says enthusiastically.

“ Thanks,” Jamika replies. No sooner has she handed off the irate client to

Victoria than she second-guesses the decision. In addition to her talents as a hairdresser, Victoria had experience as the manager of a successful salon in another city before moving to the area. Recognizing her organizational and people skills, Jamika promoted Victoria to assistant manager soon after her arrival. Now each “I’ll handle this” remark by Victoria convinces Jamika that her assistant manager is positioning herself as a potential rival for the Riverwood job. Jamika appreciates her enthusiastic attitude, but she’s also trying to limit her opportunities to lead or appear too competent before staff, customers, and company officials. Jamika finds herself wanting to hide Victoria’s competence, and she has condescendingly reminded management that Victoria is a “great help to me.”

Now, thinking of Victoria’s cheerful “I’ll handle this,” Jamika rises from her desk and marches to the door. No, Jamika thinks, I’ll take care of this personally.

Questions

1. What positive and negative managerial characteristics does Jamika possess?

2. How do these traits help or hinder her potential to get the top position at the Riverwood Mall salon?

3. How do you think Jamika should have handled each of the incidents with Marianne? Holly and Carol Jean? Victoria?

1. Steven Hyden, “ The Winners’ History of Rock and Roll, Part 3: Bon Jovi,” Grantland ( January 21, 2013), http://www.grantland.com/story/_/id/8860424/the -winners-history-rock-roll-part-3-bon-jovi (accessed August 15, 2013); Colin Stutz, “Dr. Dre Tops Forbes’ World’s Highest Paid Musicians, Beats Beyoncé by $500M,” Billboard (December 10, 2014), http:// www.billboard.com/articles/news/6398493/dr-dre -forbes-worlds-highest-paid-musicians-beyonce-eagles (accessed January 11, 2016); and “Bon Jovi to Release New Album,” BestClassicBands.com ( January 10, 2016), http://bestclassicbands.com/bon-jovi-to-release-new -album-1-10-16/ (accessed January 11, 2016.

2. Quoted in Zach O’Malley Greenburg, “Jon Bon Jovi: Still Rockin, and Making a Killing,” Forbes.com (May 18, 2011), http://www.forbes.com/2011/05/17/celebrity -100-11-jon-bon-jovi-kanye-west-bieber-still-rocking .html (accessed August 13, 2013).

3. This example is based on John Jurgensen, “A Rocker Tunes Up,” Wall Street Journal Online (February 7, 2013),

http://online.wsj.com/article/SB1000142412788 7323951904578288213834313862.html (accessed August 14, 2013); Greenburg, “Jon Bon Jovi: Still Rockin, and Making a Killing”; and Hyden, “ The Winners’ History of Rock and Roll, Part 3: Bon Jovi.” (The quote from Bon Jovi is from the Greenburg article.)

4. John Dowdy and John Van Reenen, “Why Manage- ment Matters for Productivity,” McKinsey Quarterly (September 2014), http://www.mckinsey.com/insights /economic_studies/why_management_matters_for _productivity (accessed January 11, 2016).

5. This discussion is based on ideas in Paul J. H. Schoemaker, Steve Krupp, and Samantha Howland, “Strategic Leadership: The Essential Skills,” Harvard Business Review ( January–February 2013): 131–134; Stephen Denning, “Masterclass: The Reinvention of Management,” Strategy & Leadership 39, no. 2 (2011): 9–17; Julian Birkinshaw and Jules Goddard, “What Is Your Management Model?” MIT Sloan Management Review (Winter 2009): 81–90; Paul McDonald,

ch1 Endnotes

69308_ch01_ptg01.indd 33 11/7/16 4:05 PM

NOT FOR SALE

1

Part 1 INTRODuCTION TO MANAgEMENT34

“It’s Time for Management Version 2.0: Six Forces Redefining the Future of Modern Management,” Futures (October 2011): 797ff; and Jeanne C. Meister and Karie Willyerd, “Leadership 2020: Start Preparing People Now,” Leadership Excellence ( July 2010): 5.

6. Nicolai J. Foss and Peter G. Klein, “Why Managers Still Matter,” MIT Sloan Management Review 56, no. 1 (Fall 2014): 73–80.

7. See Joshua C. Ramo, The Age of the Unthinkable: Why the New World Disorder Constantly Surprises Us and What We Can Do About It (New York: Little Brown, 2009); and Richard Florida, The Great Reset: How New Ways of Living and Working Drive Post-Crash Prosperity (New York: HarperCollins, 2010).

8. Schoemaker, Krupp, and Howland, “Strategic Leadership: The Essential Skills.”

9. Based on Jonathan Clegg, “Why the Oregon Ducks Don’t Believe in Yelling,” The Wall Street Journal ( January 7, 2015), http://www.wsj.com/articles/oregon -college-footballs-kinder-gentler-team-1420663969 (accessed January 12, 2016); Isaac Rosenthal, “For Oregon Football, Even Leadership Is ‘By Committee,’” Eugene Daily News, http://eugenedailynews.com/2013 /08/for-oregon-football-even-leadership-is-by -committee/ (accessed January 12, 2016); and Jena McGregor, “For the Fashionable Oregon Ducks, a Different Coaching Style,” The Washington Post ( January 12, 2015), https://www.washingtonpost .com/news/on-leadership/wp/2015/01/12/for-the -fashionable-oregon-ducks-a-different-coaching-style/ (accessed January 12, 2016).

10. Ibid. 11. “What Do Managers Do?” The Wall Street Journal

Online, http://guides.wsj.com/management/developing -a-leadership-style/what-do-managers-do/ (accessed August 11, 2010); article adapted from Alan Murray, The Wall Street Journal Essential Guide to Management (New York: Harper Business, 2010).

12. Kate Linebaugh, “ The New GE Way: Go Deep, Not Wide,” The Wall Street Journal (March 7, 2012).

13. Christopher S. Stewart, “Oprah Struggles to Build Her Network,” The Wall Street Journal (May 7, 2012); “Oprah Strikes Exclusive Multi-Year Partnership with Tyler Perry,” press release, October 2, 2012, http://www .oprah.com/pressroom/Oprah-Strikes-Partnership -with-Tyler-Perry (accessed May 11, 2014).

14. Jeff Bennett and Neal E. Boudette, “Boss Sweats Details of Chrysler Revival,” The Wall Street Journal ( January 31, 2011).

15. Lukas I. Alpert and Jack Marshall, “Bezos Takes Hands-On Role at Washington Post,” The Wall Street Journal (December 20, 2015), http://www.wsj.com /articles/bezos-takes-hands-on-role-at-washington -post-1450658089 (accessed January 12, 2016).

16. David A. Graham, “A Timeline of Secret Service Scandals,” Government Executive (March 13, 2015), http://www.govexec.com/management/2015/03

/timeline-secret-service-scandals/107475/ (accessed January 12, 2016); Ed O’Keefe, “Lieberman Calls for Wider Inquiry into Secret Service Scandal,” The Washington Post (April 23, 2012); Laurie Kellman and Alicia A. Caldwell, “Inquiry Hears of Wider Secret Service Misbehavior,” The Salt Lake Tribune (May 25, 2012); and “Secret Service Toughens Agent Conduct Rules After Prostitution Scandal: Political Notebook,” The Boston Globe (April 28, 2012).

17. Anton Troianovski, “Apps: The New Corporate Cost- Cutting Tool,” The Wall Street Journal Online (March 5, 2013), http://online.wsj.com/article/SB10001424127 887324678604578342690461080894.html (accessed August 14, 2013).

18. Ellen McGirt. “05: Square, For Making Magic Out of the Mercantile,” Fast Company (March 2012), 82–85, 146–147 (part of the section “ The World’s 50 Most Innovative Companies”).

19. Mike Hughlett, “Changing Consumer Tastes Forcing Companies Like General Mills to Change—Fast,” Star Tribune (December 19, 2015), http://www.startribune .com/changing-consumer-tastes-forcing-companies -like-general-mills-to-change-fast/363037901/ (accessed January 12, 2016); and Annie Gasparro and Chelsey Dulaney, “General Mills Profit Jumps 24%; Cheerios Maker Reaps Benefits of Cost-Cutting in Latest Quarter, The Wall Street Journal (September 22, 2015), http://www.wsj.com/articles/general-mills-profit -jumps-24-1442921143 (accessed January 12, 2016).

20. Aaron O. Patrick, “EMI Deal Hits a Sour Note,” The Wall Street Journal, August 15, 2009; and Alex Pham, “EMI Group Sold As Two Separate Pieces to Universal Music and Sony,” Los Angeles Times (November 12, 2011), http://articles.latimes.com/2011/nov/12 /business/la-fi-ct-emi-sold-20111112-68 (accessed January 13, 2016).

21. Robert L. Katz, “Skills of an Effective Administrator,” Harvard Business Review 52 (September–October 1974): 90–102.

22. David Sacks, “ The Way I Work: Yammer,” Inc. (November 2011): 122–124; and Ryan Lawler, “Yammer Founder David Sacks Joins Cloud HR Startup Zenefits as COO,” TechCrunch (December 10, 2014), http://techcrunch.com/2014/12/10/zenefits -david-sacks/ (accessed February 7, 2016).

23. Sue Shellenbarger, “From Our Readers: The Bosses That Drove Me to Quit My Job,” The Wall Street Journal, February 7, 2000; and Re-engaging with Engagement: Views from the Boardroom on Employee Engagement, Study by the Economist Intelligence Unit (2010), as reported in Thomas O. Davenport and Stephen D. Harding, “ The New Manager Manifesto,” People & Strategy 35, no. 1 (2012): 24–31.

24. Linda A. Hill and Kent Lineback, “Being the Leader: Observe Three Imperatives,” Leadership Excellence (November 2012): 15–16; Boris Groysberg, L. Kevin Kelly, and Bryan MacDonald, “ The New Path to the C-Suite,” Harvard Business Review (March 2011): 60–68;

69308_ch01_ptg01.indd 34 11/7/16 4:05 PM

NOT FOR SALE

I n

t r

o d

u c

t I o

n

1Chapter 1 The World of InnovaTIve ManageMenT 35

Jeanne C. Meister and Karie Willyerd, “Leadership 2020: Start Preparing People Now,” Leadership Excellence ( July 2010): 5; Neena Sinha, N. K. Kakkar, and Vikas Gupta, “Uncovering the Secrets of the Twenty-First- Century Organization,” Global Business and Organizational Excellence ( January–February 2012): 49–63; and Rowena Crosbie, “Learning the Soft Skills of Leadership,” Industrial and Commercial Training, 37, no. 1 (2005).

25. Adam Bryant, “ The Quest to Build a Better Boss,” The New York Times (March 13, 2011).

26. Scott Tonidandel, Phillip W. Braddy, and John W. Fleenor, “Relative Importance of Managerial Skills for Predicting Effectiveness,” Journal of Managerial Psychology 27, no. 6 (2012): 636–655.

27. William A. Gentry, Lauren S. Harris, Becca A. Baker, and Jean Brittain Leslie, “Managerial Skills: What Has Changed Since the Late 1980s?” Leadership and Organization Development Journal 29, no. 2 (2008): 167–181.

28. Troy V. Mumford, Michael A. Campion, and Frederick P. Morgeson, “ The Leadership Skills Strataplex: Leadership Skills Requirements across Organizational Levels,” The Leadership Quarterly 18 (2007): 154–166.

29. Nanette Byrnes and Roger O. Crockett, “An Historic Succession at Xerox,” BusinessWeek ( June 8, 2009): 18–22.

30. Clinton O. Longenecker, Mitchell J. Neubert, and Laurence S. Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations,” Business Horizons 50 (2007): 145–155.

31. Nicola Clark and Melissa Eddy, “In the Vortex of the Storm,” The New York Times (September 23, 2015); Andreas Cremer and Tom Bergin, “Fear and Respect: VW’s Culture Under Winterkorn,” Reuters (October 10, 2015), http://www.reuters.com/article/us-volkswagen -emissions-culture-idUSKCN0S40MT20151010 (accessed January 13, 2016); and Danny Hakim, Aaron M. Kessler, and Jack Ewing, “As VW Pushed to Be No. 1, Ambitions Fueled a Scandal (September 27, 2015), p. A1.

32. Sydney Finkelstein, “ The Five Worst CEOs of 2012,” The Washington Post, December 18, 2012, http://articles .washingtonpost.com/2012-12-18/national/35907884 _1_bankia-spanish-banks-rodrigo-rato (accessed December 20, 2012); Thomas Lee, “Mark Pincus Is Back as CEO, Because No One Could Stop Him,” SFGate (April 14, 2015), http://www.sfgate.com/business /article/Mark-Pincus-is-back-as-CEO-because-no -one-could-6197313.php (accessed November 30, 2015); and Matthew Lynley, “Mark Pincus Is Back—And His Vintage Management Style Might Be, Too,” TechCrunch (May 16, 2015), http://techcrunch.com /2015/05/06/mark-pincus-is-back-and-his -vintage-management-style-might-be-too/ (accessed November 30, 2015).

33. Longenecker, Neubert, and Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations.”

34. Eileen Sheridan, “Rise: Best Day, Worst Day,” The Guardian, September 14, 2002.

35. Heath Row, “Force Play” (Company of Friends column), Fast Company (March 2001): 46.

36. Rani Molla, “Meet the Women CEOs of the Fortune 500,” The Wall Street Journal, March 7, 2014, http:// blogs.wsj.com/atwork/2014/03/07/meet-the-women -ceos-of-the-fortune-500/ (accessed May 11, 2014).

37. A. I. Kraut, P. R. Pedigo, D. D. McKenna, and M. D. Dunnette, “ The Role of the Manager: What’s Really Important in Different Management Jobs,” Academy of Management Executive 19, no. 4 (2005): 122–129.

38. Christopher A. Bartlett and Sumantra Ghoshal, “Changing the Role of Top Management: Beyond Systems to People,” Harvard Business Review (May– June 1995): 132–142; and Sumantra Ghoshal and Christopher A. Bartlett, “Changing the Role of Top Management: Beyond Structure to Processes,” Harvard Business Review ( January–February 1995): 86–96.

39. Lynda Gratton, “ The End of the Middle Manager,” Harvard Business Review ( January–February 2011): 36.

40. Melissa Korn, “What It’s Like Being a Middle Manager Today; Pushed to Do More with Less, Today’s Midlevel Managers Try to Get By,” The Wall Street Journal (August 6, 2013), B1; Paul Osterman, “Recognizing the Value of Middle Management,” Ivey Business Journal (November–December 2009), http:// www.iveybusiness journal.com/article.asp?intArticle _id=866; Lisa Haneberg, “Reinventing Middle Management,” Leader to Leader (Fall 2005): 13–18; Quy N. Huy, “In Praise of Middle Managers,” Harvard Business Review (September 2003): 72–79; Rosabeth Moss Kanter, On the Frontiers of Management (Boston: Harvard Business School Press, 2003).

41. “Using Their Own Words, Middle Managers Describe the Nature of Their Jobs,” The Wall Street Journal (August 7, 2013).

42. Rachel Feintzeig, “Radical Idea at the Office: Middle Managers,” The Wall Street Journal (August 18, 2015), http://www.wsj.com/articles/radical-idea -at-the-office-middle-managers-1439941798 (accessed January 14, 2016).

43. Reported in Ray Fisman, “In Defense of Middle Management,” The Washington Post, October 16, 2010, www.washingtonpost.com/wp-dyn/content /article/2010/10/16/AR2010101604266_pf.html (accessed June 13, 2012).

44. Miles Brignall, “Rise; Launch Pad: The Retailer; Alistair Boot, an Assistant Manager at the John Lewis Store in Cheadle, Talks to Miles Brignall,” The Guardian, October 4, 2003.

45. Fisman, “In Defense of Middle Management.” 46. Henry Mintzberg, Managing (San Francisco: Berrett-

Kohler Publishers, 2009); Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973); and Mintzberg, “Rounding Out the Manager’s Job,” Sloan Management Review (Fall 1994): 11–26.

69308_ch01_ptg01.indd 35 11/8/16 5:46 PM

NOT FOR SALE

1

Part 1 INTRODuCTION TO MANAgEMENT36

47. Robert E. Kaplan, “ Trade Routes: The Manager’s Network of Relationships,” Organizational Dynamics (Spring 1984): 37–52; Rosemary Stewart, “ The Nature of Management: A Problem for Management Education,” Journal of Management Studies 21 (1984): 323–330; John P. Kotter, “What Effective General Managers Really Do,” Harvard Business Review (November–December 1982): 156–167; and Morgan W. McCall, Jr., Ann M. Morrison, and Robert L. Hannan, “Studies of Managerial Work: Results and Methods,” Technical Report No. 9, Center for Creative Leadership, Greensboro, NC, 1978.

48. Alison M. Konrad, Roger Kashlak, Izumi Yoshioka, Robert Waryszak, and Nina Toren, “What Do Managers Like to Do? A Five-Country Study,” Group and Organizational Management 26, no. 4 (December 2001): 401–433.

49. For a review of the problems faced by first-time managers, see Linda A. Hill and Kent Lineback, “Being the Leader: Observe Three Imperatives,” Leadership Excellence (November 2012): 15–16; Linda A. Hill, “Becoming the Boss,” Harvard Business Review ( January 2007): 49–56; Loren B. Belker and Gary S. Topchik, The First-Time Manager: A Practical Guide to the Management of People, 5th ed. (New York: AMACOM, 2005); J. W. Lorsch and P. F. Mathias, “When Professionals Have to Manage,” Harvard Business Review ( July–August 1987): 78–83; R. A. Webber, Becoming a Courageous Manager: Overcoming Career Problems of New Managers (Englewood Cliffs, NJ: Prentice Hall, 1991); D. E. Dougherty, From Technical Professional to Corporate Manager: A Guide to Career Transition (New York: Wiley, 1984); J. Falvey, “ The Making of a Manager,” Sales and Marketing Management (March 1989): 42–83; M. K. Badawy, Developing Managerial Skills in Engineers and Scientists: Succeeding as a Technical Manager (New York: Van Nostrand Reinhold, 1982); and M. London, Developing Managers: A Guide to Motivating and Preparing People for Successful Managerial Careers (San Francisco, CA: Jossey-Bass, 1985).

50. Based on Evelyn Rusli, Nicole Perlroth, and Nick Bilton, “ The Hoodie amid the Pinstripes: As Facebook IPO Nears, Is Its Chief up to Running a Public Company?” International Herald Tribune, May 14, 2012, 17.

51. This discussion is based on Linda A. Hill, Becoming a Manager: How New Managers Master the Challenges of Leadership, 2d ed. (Boston: Harvard Business School Press, 2003), 6–8; and Hill, “Becoming the Boss.”

52. See also the “Boss’s First Steps” sidebar in Erin White, “Learning to Be the Boss,” The Wall Street Journal, November 21, 2005, http://online.wsj.com/news /articles/SB113252950779302595 (accessed May 11, 2014); and Belker and Topchik, The First-Time Manager.

53. Quoted in Eileen Zimmerman, “Are You Cut Out for Management?” (Career Couch column), The New York Times, January 15 2011, www.nytimes.com/2011/01 /16/jobs/16career.html (accessed June 14, 2012).

54. Hill and Lineback, “Being the Leader.” 55. Mintzberg, Managing, pp. 17–41. 56. Study reported in Rachel Emma Silverman, “Where’s

The Boss? Trapped in a Meeting,” The Wall Street Journal, February 14, 2012, http://online.wsj.com /article/SB100014240529702046426045772150135 04567548.html (accessed June 14, 2012).

57. Mintzberg, Managing, pp. 17–41. 58. Based on Allan Halcrow, “A Day in the Life of

Kathy Davis: Just Another Day in HR,” Workforce Management 77, no. 6 ( June 1998): 56–62.

59. Mintzberg, Managing, pp. 17–41. 60. Carol Hymowitz, “Packed Calendars Rule,” The

Asian Wall Street Journal, June 16, 2009; and “ The 18-Hour Day,” The Conference Board Review (March–April 2008): 20.

61. Adam Shell, “CEO Profile: Casting a Giant (New Jersey) Net,” USA TODAY, August 25, 2008; Matthew Boyle and Jia Lynn Yang, “All in a Day’s Work,” Fortune (March 20, 2006): 97–104.

62. Korn, “What It’s Like Being a Middle Manager Today.” 63. Frankki Bevins and Aaron De Smet, “Making Time

Management the Organization’s Priority,” McKinsey Quarterly ( January 2013), http://www.mckinsey.com /insights/organization/making_time_management_the _organizations_priority (accessed August 19, 2013).

64. “Four CEOs’ Tips on Managing Your Time,” The Wall Street Journal, February 14, 2012, http://online.wsj .com/article/SB100014240529702048833045772215 51714492724.html (accessed June 14, 2012).

65. Bevins and De Smet, “Making Time Management the Organization’s Priority”; A. Garrett, “Buying Time to Do the Things That Really Matter,” Management Today ( July 2000): 75; and Robert S. Kaplan, “What to Ask the Person in the Mirror,” Harvard Business Review ( January 2007): 86–95.

66. Mintzberg, Managing; Lance B. Kurke and Howard E. Aldrich, “Mintzberg Was Right! A Replication and Extension of The Nature of Managerial Work,” Management Science 29 (1983): 975–984; Cynthia M. Pavett and Alan W. Lau, “Managerial Work: The Influence of Hierarchical Level and Functional Specialty,” Academy of Management Journal 26 (1983): 170–177; and Colin P. Hales, “ What Do Managers Do? A Critical Review of the Evidence,” Journal of Management Studies 23 (1986): 88–115.

67. Austin Hufford and Julie Jargon, “Chipotle Shares Rise After Chief Apologizes, Reiterates Food-Safety Plan,” The Wall Street Journal (December 10, 2015), http:// www.wsj.com/articles/chipotle-shares-rise-after-chief -apologizes-reiterates-food-safety-plan-1449763853 (accessed January 14, 2016).

68. Naween Mangi, “Convoys and Patdowns: A Day at the Office in Pakistan,” Bloomberg Businessweek ( July 25–July 31, 2011): 11–13.

69308_ch01_ptg01.indd 36 11/7/16 4:05 PM

NOT FOR SALE

I n

t r

o d

u c

t I o

n

1ChaPter 1 THE WORLD OF INNOVATIVE MANAgEMENT 37

69. Erica E. Phillips, “ Technology Helps Food Banks Handle Holiday Surge,” The Wall Street Journal (December 2, 2015), http://www.wsj.com /articles/technology-helps-food-banks-handle -holiday-surge-1449101555 (accessed January 14, 2016).

70. Guy Chazan and Monica Langley, “Dudley Faces Daunting To-Do List,” The Wall Street Journal Europe, July 27, 2010.

71. Claire Martin, “How a Bicycle Maker Saw the Light, and Found Its Balance,” The New York Times (April 12, 2014), http://www.nytimes.com/2014/04/13 /business/how-a-bicycle-maker-saw-the-light -and-found-its-balance.html?ref=business (accessed January 12, 2016).

72. Jean Crawford, “Profiling the Non-Profit Leader of Tomorrow,” Ivey Business Journal (May–June 2010), www.iveybusinessjournal.com/topics/leadership /-profiling-the-non-profit-leader-of-tomorrow (accessed June 14, 2012).

73. The following discussion is based on Peter F. Drucker, Managing the Non-Profit Organization: Principles and Practices (New York: HarperBusiness, 1992); and Thomas Wolf, Managing a Nonprofit Organization (New York: Fireside/Simon & Schuster, 1990).

74. Christine W. Letts, William P. Ryan, and Allen Grossman, High Performance Nonprofit Organizations (New York: Wiley & Sons, 1999), pp. 30–35.

75. Carol Hymowitz, “In Sarbanes-Oxley Era, Running a Nonprofit Is Only Getting Harder,” The Wall Street Journal, June 21, 2005; and Bill Birchard, “Nonprofits by the Numbers,” CFO ( June 2005): 50–55.

76. Eilene Zimmerman, “Your True Calling Could Suit a Nonprofit” (interview, Career Couch column), The New York Times, April 6, 2008, http://www.nytimes .com/2008/04/06/jobs/06career.html?_r=0 (accessed May 11, 2014).

77. Based on Doug Wallace, “A Talent for Mismanagement: What Would You Do?” Business Ethics 2 (November– December 1992): 3–4.

69308_ch01_ptg01.indd 37 11/7/16 4:05 PM

NOT FOR SALE