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The World of Innovative Management

Chapter 1

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Innovation is the new imperative

Organizations cannot survive long term without innovation

Companies like Facebook are always investing in new ideas

Innovation should be a part of products, processes, people, and values

2

Why Innovative

Management Matters

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

Managers get things done through the organization

Create right systems and environment

Organizations need good managers

3

The Definition of Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4

1.1 - State-of-the-Art Management

Competencies for Today’s World

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5

1.2 - What Do Managers Do?

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6

1.3 - The Process of

Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organization: Social entity that is goal directed and deliberately structured

Organizational effectiveness: Providing a product or service that customers value

Organizational efficiency: Refers to the amount of resources used to achieve an organizational goal

7

Organizational Performance

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Three categories of skills: conceptual, human, technical

The degree of the skills may vary but all managers must possess the skills

The application of management skills change as managers move up the hierarchy

8

Management Skills

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.4 - Relationship of Technical, Human, and Conceptual

Skills to Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1.5 - Google’s Rules: Eight

Good Behaviors for Managers

10

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Missteps and unethical behavior have been in the news

During turbulent times, managers must apply their skills

Common management failures:

Not listening to customers

Misinterpreting signals from marketplace

Not building teams

Inability to execute strategies

Failure to comprehend and adapt to change

Poor communication and interpersonal skills

11

When Skills Fail

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12

1.6 - Top Causes of

Manager Failure

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organizations often promote star performers to management

Becoming a manager is a transformation

Move from being a doer to a coordinator

Many new managers expect more freedom to make changes

Successful managers build teams and networks

Many make the transformation in a “trial by fire”

13

Making the Leap: Becoming

a New Manager

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.7 - Making the Leap from Individual

Performer to Manager

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Adventures in multitasking

Activity characterized by variety, fragmentation, and brevity

Less than nine minutes on most activities

Managers shift gears quickly

Life on speed dial

Work at unrelenting pace

Interrupted by disturbances

Always working (catching up)

15

Manager Activities

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Role: Set expectations for a manager’s behavior

Every role undertaken by a manager accomplishes the functions of:

Planning

Organizing

Leading

Controlling

16

Manager Roles

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Manager roles are important to understand but they are not discrete activities

Management cannot be practiced as independent parts

Managers need time to plan and think

17

Manager Roles

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.8 - Ten Manager Roles

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Small businesses are growing

Inadequate management skills is a threat

The roles for small business managers differ

Entrepreneurs must promote the business

Nonprofits need management talent

Apply the four functions of management to make social impact

More focus on keeping costs low

Need to measure intangibles like “improving public health”

19

Managing in Small Business

and Nonprofit Organizations

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Focus on creating benefits from limited

resources (Hindi word: Jugaad, U.S. “Frugal

Engineering.”)

Management changing but history matters

Broadens way of thinking

Discover patterns that recur over time

Learn from others’ mistakes and successes

20

Innovative Management

Thinking

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Studying management history helps your conceptual skills

Social forces – aspects of a culture that guide and influence relationships among people

Political forces – influence of political and legal institutions on people and organizations

Economic forces – the availability, production, and distribution of resources

21

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.9 - Management Perspectives

Over Time

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Emerged during the nineteenth and early twentieth centuries

Rise of the factory system

Issues regarding structure, training, and employee satisfaction

Large, complex organizations required new approaches to coordination and control

23

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Three subfields:

Scientific management

Bureaucratic organizations

Administrative principles

24

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Improve efficiency and labor productivity through scientific methods

Frederick Winslow Taylor proposed that workers “could be retooled like machines”

Management decisions would be based on precise procedures based on study

25

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Henry Gantt developed the Gantt chart to measure and plan work

The Gilbreths pioneered time and motion studies to promote efficiency

26

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.10 - Characteristics of

Scientific Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Max Weber, a German theorist, introduced the concepts

Manage organizations on impersonal, rational basis

Organization depends on rules and records

28

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Managers use power instead of personality to delegate

Although important productivity gains

come from this foundation, bureaucracy

has taken on a negative tone

29

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.11 - Characteristics of

Weberian Bureaucracy

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Focused on the entire organization

Henri Fayol, a French mining engineer, was a major contributor

14 general principles of management; many still used today:

Unity of command

Division of work

Unity of direction

Scalar chain

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Administrative Principles

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Identified five functions of management:

Planning

Organizing

Commanding

Coordinating

Controlling

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Administrative Principles

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Understand human behaviors, needs, and attitudes in the workplace

Mary Parker Follett and Chester Barnard

Contrast to scientific management - Importance of people rather than engineering techniques

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Humanistic Perspective:

Early Advocates

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Empowerment: facilitating instead of controlling

Recognition of the informal organization

Introduced acceptance theory of authority

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Humanistic Perspective:

Early Advocates

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Effective control comes from within the employee

Hawthorne studies were key contributor

Human relations played key variable in increasing performance

Employees performed better when managers treated them positively

Strongly shaped management practice and research

35

Humanistic Perspective:

Human Relations Movement

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

From worker participation and considerate leadership to managing work performance

Combine motivation with job design

Maslow and McGregor extended and challenged current theories

Maslow’s Hierarchy

Theory X and Theory Y

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Humanistic Perspective: Human

Resources Perspective

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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1.12 - Theory X and Theory Y

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Scientific methods + sociology, psychology, anthropology, economics to develop theories about human behavior and interaction in an organizational setting

Organizational development – field that uses behavioral sciences to improve organization

38

Humanistic Perspective:

Behavioral Sciences Approach

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Other strategies based on behavioral science:

Matrix organizations

Self-managed teams

Corporate culture

Management by wandering around

39

Humanistic Perspective:

Behavioral Sciences Approach

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Also referred to as quantitative perspective

Use of mathematics and statistics to aid management decision making

Enhanced by development and perfection of the computer

Operations management focuses on the physical production of goods and services

40

Management Science

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Information technology – focuses on technology and software to aid managers

Quants – financial managers who base their decisions on complex quantitative analysis

41

Management Science

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The ability to see the distinct elements of a situation as well as the complexities

System – set of interrelated parts that function as a whole to achieve a common purpose

Subsystems – are parts of the system that are all interconnected

Synergy – the whole is greater than the sum of its parts

Managers must understand subsystem interdependence and synergy

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Recent Trends: Systems

Thinking

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1.13 Systems Thinking and

Circles of Causality

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Every situation is unique

Managers must determine what method will work

Managers must identify key contingencies for the current situation

Organizational structure should depend upon industry and other variables

44

Recent Trends: Systems

Contingency View

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1.14 - Contingency View

of Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Quality movement is strongly associated with Japan

The U.S. ignored the ideas of W. Edwards Deming, “Father of the Quality Movement”

Total Quality Management (TQM) became popular in the 1980s and 1990s

Integrate high-quality values in every activity

46

Recent Trends: Total Quality

Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

47

Elements of Quality

Management

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Employee involvement

Focus on the customer

Benchmarking

Continuous improvement

Management ideas trace their roots to historical perspectives

New ideas continue to emerge to meet the changing needs and difficult times

The shelf life of trends is getting shorter and new ideas peak in fewer than three years

48

Innovative Management:

Thinking for a Changing World

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Social media programs – Company online community pages, social media sites, microblogging platforms, and online forums

Customer relationship management – technology used to build relationships with customers

Outsourcing – contracting functions or activities to other organizations to cut costs

Supply chain management – managing supplier and purchaser relationships to get goods to consumers

49

Managing the Technology-

Driven Workplace

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1.15 Supply Chain for a

Retail Organization

50

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.