Chapter 1

The Changing Paradigm of Management & Foundations of Learning Organizations

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-1

Learning Objectives
1. 2. 3.

4.

5.

Explain the differences between efficiency and effectiveness and their importance for organizational performance. Define ten roles that managers perform in organizations. Discuss the management competencies needed to deal with todays turbulent environment, including issues such as diversity, globalization, and rapid changes and the skills needed for crisis management. Describe the learning organization and the changes in structure, empowerment, and information sharing managers make to support it. Understand how historical forces influence the practice of management
1-2

2006 by South-Western, a division of Thomson Learning. All rights reserved

Learning Objectives (contd.)

6. 7.

8.
9. 10.

Identify and explain major developments in the history of management thought. Describe the major components of the classical and humanistic management perspectives. Discuss the scientific management perspective and its current uses in organizations. What role does contingency play in organizations? Explain the major components of total quality management.

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-3

Definition of Management

The attainment of organizational goals in an effective and efficient manner through: Planning, Organizing, Leading, and Controlling of organizational resources.
1-4

2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex 1.1

The Process of Management

Planning Select goals and ways to attain them

Resources Human Financial Raw Materials Technological Information Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment

Performance Attain goals Products Services Efficiency Effectiveness

Leading
Use influence to motivate employees

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-5

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

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-6

Effectiveness and Efficiency

Organizational effectiveness is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational efficiency refers to the amount of resources used to achieve an organizations goal.

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-7

Relationship of Conceptual, Human, and Technical Skills to Management Level

Ex. 1.2

Management Level Top Managers Middle Managers First-Line Managers Non-managers (Personnel) Conceptual Skills Human Skills Technical Skills

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-8

Ex. 1.3

Ten Manager Roles

Informational Monitor Disseminator

Interpersonal Figurehead Leader

Decisional Entrepreneur Disturbance handler

Spokesperson

Liaison

Resource allocator
Negotiator

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-9

Characteristics of the New Workplace

Centered around information and ideas Work is free-flowing and flexible Organized around networks,work is often virtual

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-10

Management Competencies of Today

Embrace ambiguity Create organizations that are:

Fast Flexible Adaptable Relationship-oriented Leadership Staying connected to employees and customers Team building Developing a learning organization
1-11

Focus on:

2006 by South-Western, a division of Thomson Learning. All rights reserved

Crisis Management

Stay Calm

Be visible

Crisis Management Skills

Put people before business

Know when to get back to business

Tell the truth

1-12

2006 by South-Western, a division of Thomson Learning. All rights reserved

Ex. 1.5

Elements of a Learning Organization

Garvin (1993) defines a learning organization as a firm skilled at creating, acquiring, & transferring knowledge, and modifying its behaviors to reflect new knowledge & insight Team-Based Structure

Learning Organization

Empowered Employees
2006 by South-Western, a division of Thomson Learning. All rights reserved

Open Information
1-13

Ex. 1.6

Three Types of E-Commerce

Exhibit 1.6

E-commerce represents business exchanges or transactions that occur electronically. It replaces or enhances the exchange of money and products with the exchange of data and information from one computer to another.

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-14

Management & Organization

Social Forces values, needs, and standards of behavior. Political Forces influence of political and legal institutions on people & organizations. Economic Forces forces that affect the availability, production, & distribution of a societys resources.
2006 by South-Western, a division of Thomson Learning. All rights reserved

1-15

Ex. 1.7

Management Perspectives Over Time

(adapted)

The Technology-Driven Workplace The Learning Organization Total Quality Management Contingency Views Systems Theory Management Science Perspective Humanistic Perspective Classical Perspective 1890 1940 1960 1980 2000 2010
1-16

2006 by South-Western, a division of Thomson Learning. All rights reserved

Classical Perspective
Emphasized a rational, scientific approach to the study of management. Sought to make organizations efficient.

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-17

Classical Perspective Three Subfields

1. Scientific management 2. Administrative principles 3. Bureaucratic organizations

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-18

Humanistic Perspective
Emphasized understanding human behavior.
Dealt with needs & attitudes in the

workplace. Truly effective control comes from within the individual worker rather than authoritarian control. Hawthorne Studies brought this perspective to forefront.
2006 by South-Western, a division of Thomson Learning. All rights reserved

1-19

Ex. 1.9

Theory X & Y (adapted)

Theory X

Theory Y

People are lazy People lack ambition Dislike responsibility People are self-centered People dont like change

People are energetic People want to make contributions People do have ambition People will seek responsibility
1-20

2006 by South-Western, a division of Thomson Learning. All rights reserved

The Contingency Approach

means that one thing depends on other things, and for organizations to be effective, there must be a goodness of fit between their structure and the conditions in their external environment.

2006 by South-Western, a division of Thomson Learning. All rights reserved

1-21