Chapter 1

The World of Innovative

Management
What do Beaunit Mills, Hercules Powder,
and Liebmann Breweries have in
common?
On 1st Fortune List (1955)
They Don’t Exist Today

“BAD Management”
Not “Keeping up the Good Work”
Not adapting to Environmental Changes
Management
The attainment of organizational goals in
an effective and efficient manner through
planning, organizing, leading, and
controlling organizational resources

Organization
A formally structured collection of
individuals working toward common
(shared) goals.
 Organizational Performance
Effectiveness : the degree to which the
organization achieves a stated goal
Efficiency : the use of minimal resources
(input) to produce a desired volume of
output.
Efficient, but not Effective:
- Goals not achieved
Effective, but not Efficient
- Wasted Resources
(You may have to choose between the two.)
 The Four Functions of
Management
Planning
Select goals
& ways to
Controlling attain them
Organizing
Monitor Assign
activities & responsibility
make
for tasks
corrections
Leading
Use
influence to
motivate
MANAGEMENT LEVELS AND
TIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.
Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%
 Management Skills

Conceptual Skills : cognitive ability to

see the organization as a whole and
the relationship among its parts
Human Skills : ability to work with
and through other people and to
work effectively as a group member
Technical Skills : understanding of and
proficiency in the performance of
specific tasks.
 What Is It Like to Be a
Manager?
Managerial Activities
- Long hours
- Most time spent in oral
communication
- Characterized by variety,
fragmentation, and brevity
- Fast paced and require a
high energy level to be
successful
Managers give up the right
to:
- Be one of the gang
- Put your self-interest
first
- Ask others to do things
you wouldn’t do
- Vent your frustrations
- Resist change
 Supervisors’ Responsibilities
Plan and schedule Inform employees of
work organizational goals
Clarify tasks and Inform higher
gather ideas for managers of work
improvement unit needs and
accomplishments
Appraise and counsel
Recruit, train, and
employees develop workers
Recommend job Encourage and
assignments and pay maintain high and
enthusiasm
Informational Roles to develop and
maintain information network
The monitor seeks current information from
many sources.
The disseminator transmits information to others
both inside and outside the organization.
The spokesperson provides official statements to
people outside the organization about company
policies, actions, or plans.
Interpersonal Roles pertain to
relationships with others
The figurehead engages in ceremonial
activities
The leader motivates, communicates,
and influences subordinates.
The liaison develops relationships
outside his/her unit both inside and
outside the organization.
Decisional Roles to make choices
requiring conceptual & human skills.

The entrepreneur initiates change.

The resource allocator allocates resources
to achieve outcomes.
The negotiator bargains for his/her unit.
The disturbance handler resolves conflicts.
How Do You Learn to Manage?

50% from job experience

30% from other persons
20% from education & training

(Based on study of successful managers at

Honeywell)
 Successful Managers’
Attributes
Leadership Oral Communication
Team-Building Skills Written
Self-objectivity Communication
Analytic Thinking Personal Impact
Creative Thinking Resistance to Stress
Behavioral Flexibility Tolerance of
Uncertainty
Some Types of Changes
Impacting Organizations:
Products
Technologies
Markets
Speed Requirements
Management Techniques
 Pre-Classical Management
Anything before about 1900:
e.g.,
Attila the Hun
Henry Towne
 Classical Perspective
Emphasized a rational, scientific approach to study of
management and sought to make workers and
organizations like efficient operating machines
Classical Categories
Scientific Management
Frederick Taylor
Frank and Lillian Gilbreth
Bureaucratic Organizations
Max Weber
Administrative Principles
Henri Fayol
 Scientific Management
Develop a standard method for performing
each job
Select appropriate workers
Train workers in standard method
Plan work and eliminate interruptions
Provide incentives for increased output.
 Bureaucratic Organizations
Clearly defined authority and
responsibility
Set procedures for each situation
Goals of fairness and efficiency
Separation of management and ownership
i.e., run by professional mgrs.
 Bureaucratic Organizations
Become “dysfunctional” Relatively High in
when: Bureaucracy:
-There is no effort to United Parcel Service
recognize exceptions to
U.S. Postal Service
rules or to change rules
when necessary Relatively Low in
-Enforcement of rules Bureaucracy:
takes precedence over Hewlett-Packard
pursuit of the Disney Studios
organization’s mission
 Administrative Management -
Henri Fayol
14 Principles Five basic management
Unity of command functions
Division of work Planning
Unity of direction Organizing
Scalar chain-of-command Commanding
Authority=Responsibility Coordinating
(etc.) Controlling
 Humanistic Perspective

Emphasizes enlightened treatment of workers

and power sharing between managers and
employees.
Emphasized satisfaction of employees’
social/psychological needs as the key to
increased worker productivity.
Supported by Hawthorne Studies
 The Hawthorne Studies
“Social Man”
Methodological Problems, but Profound
Influence on Management Thought
“Hawthorne Effect”
Interviewing Techniques
 The Human Resources
Perspective
Jobs should be designed to allow workers
to use their full potential
Abraham Maslow’s Hierarchy of Needs
(Ch. 12)
Douglas McGregor’s Theory X vs. Theory
Y (comparison of Classical Mgmt to
Human Resources)
Theory X Theory Y (Human
(Classical): Resources):
People dislike work and
prefer to be directed People will accept
responsibility
Must be coerced to
work Have intellect that
Want to avoid could be applied to
responsibility and organizational goals
have little ambition Only partially use their
Want security above intellectual potential.
everything
 Behavioral Sciences Approach
= Applied Social Sciences
Study of human behavior in organizations
Draws on Disciplines of:
Economics
Psychology
Sociology
Communication
Anthropology
 Management Science
Perspective
Involves Mathematics, Computers
Examples:
Forecasting
Inventory control
Scheduling
Break-even analysis
 Contemporary Approaches
 Systems Theory
 How the parts fit together (“Synergy” is a
key concept)
 How the org. interacts with its environment
 Understanding systems requires Conceptual
Skills
 Contingency View
 Integratesmany of the other viewpoints
 “No one best way to manage - the best way
depends on the situation”
Total Quality Management
Emphasizes Continuous Improvement in
all Organizational Processes
(i.e., in more than Manufacturing)