Irwin Management Book Presentations

The Changing Paradigm ofManagement1

1Introduction of myself

Ask where they are from

How many plan to leave the Caribbean and work elsewhere? Where?Management Key ConceptsOrganizations: People working together and coordinating their actions to achieve specific goals.Goal: A desired future condition that the organization seeks to achieve.Management: The attainment of organizational goals in an effective & efficient manner through:Planning, Organizing, Leading, and Controlling3Organizations are collections of people who work together & coordinate their actions to achieve a wide variety of goals. A goal is a desired future outcome that organizations strive to achieve.Various definitions of management one I like is Mary Parker Follett art of getting things done through people. She was way before her time well look at her later.Typical definition in textbooks: Management is the planning, organizing, leading, and controlling of resources to achieve organizational goals effectively & efficiently. Management is generally considered universal in all profit and not-for-profit organizations because it uses resources to accomplish goals.Discuss importance of culture convergence theory importance of cultural differences. Relate to human cultures we may all have same basic functions, but we perform these functions differently. Recently, more influence of other cultures can be confusing for the manager (age differences for example in an authoritarian culture young people exposed to more democratic values through communication media.

Additional Key ConceptsResources are organizational assets and include:People, Machinery, Raw materials, Information, skills, Financial capital.Managers are the people responsible for supervising the use of an organizations resources to meet its goals.4Other conceptsManagerial FunctionsHenri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800s. Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of:Planning, organizing, leading, controlling.5Management FunctionsPlanningLeadingResourcesControllingOrganizingPerformanceHumanFinancialRaw MaterialsTechnologicalInformationAttain goalsProductsServicesEfficiencyEffectivenessUse influence to motivate employeesSelect goals and ways to attain themAssign responsibility for task accomplishmentMonitor activities and make corrections6The four functions of management include:1. planning: selecting goals & ways to attain them.2. Organizing: assign responsibility for task accomplishment3. Leading: use influence to motivate employees.4. Controlling: monitor activities..

PlanningPlanning is the process used by managers to identify and select appropriate goals and courses of action for an organization. 3 steps to good planning :1. Which goals should be pursued?2. How should the goal be attained?3. How should resources be allocated?The planning function determines how effective and efficient the organization is and determines the strategy of the organization.7After the 3 steps the outcome of the process is the organizations strategy, a cluster of decisions concerning what goals to pursue, what actions to take, and how to use resources to achieve goals. Planning is complex and difficult because of the level of uncertainty and the risks involved. (mention takeover in Iran in early 1970s and the failure of the CIA).OrganizingIn organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.Managers will group people into departments according to the tasks performed.Managers will also lay out lines of authority and responsibility for members.An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.8LeadingIn leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.Leadership involves a manager using power, influence, vision, persuasion, and communication skills.The outcome of the leading function is a high level of motivation and commitment from employees to the organization.9ControllingIn controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.Managers will also take action to increase performance as required.The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.10Achieving High PerformanceOrganizations must provide a good or service desired by its customers.David Johnson of Campbell Soup manages his firm to provide quality food products. Physicians, nurses and health care administrators seek to provide healing from sickness.Chefettes restaurants provide rotis, burgers, and fries that people want to buy.11Last I can see why McDonalds cannot make it in Barbados.Organizational PerformanceMeasures how efficiently and effectively managers use resources to satisfy customers and achieve goals.Efficiency: A measure of how well resources are used to achieve a goal.Usually, managers must try to minimize the input of resources to attain the same goal.Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.Organizations are more effective when managers choose the correct goals and then achieve them.12The ultimate responsibility of managers is to be both effective and efficient. This is called high performance.Managerial SkillsThere are three skill sets that managers need to perform effectively.1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect.2. Human skills: the ability to understand, alter, lead, and control peoples behavior. 3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.All three skills are enhanced through formal training, reading, and practice. 13QUESTION: WHAT CHANGES IN MANAGEMENT FUNCTIONS & SKILLS OCCUR AS ONE IS PROMOTED FROM A NONMANAGEMENT TO A MANAGEMENT POSITION? 14The major change - need for people skills. The individual must lead subordinates, deal with peers, and work through people to accomplish goals. Nonmanagement positions mainly rely on technical skills. First-level managers are primarily concerned with leading, which requires people skills. As managers move up the hierarchy, skills in planning, organizing, and controlling become increasingly important. The top management level relies on conceptual skills. New skills can be acquired through observation, formal training, or practicing.Skill Type Needed by Manager LevelTopManagersMiddleManagersLineManagersConceptualHumanTechnicalFigure 1.515Management LevelsOrganizations often have 3 levels of managers:First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service. Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.16RestructuringTop Management have sought methods to restructure their organizations and save costs.Downsizing: eliminate jobs at all levels of management.Can lead to higher efficiency.Often results in low morale and customer complaints about service.17Decrease in middle managers due to restructuringWHAT IS IT LIKE TO BE A MANAGER?

18Research has shown that managerial activity includes variety, fragmentation & brevity; handling problems mixed with trivial events in no predictable sequence; and performing a great deal of work at an unrelenting pace. The book gives some good examples of that. Managerial RolesDescribed by Mintzberg.A role is a set of specific tasks a person performs because of the position they hold.Roles are directed inside as well as outside the organization.There are 3 broad role categories:1. Interpersonal2. Informational 3. Decisional19Henry Mintzberg did a seminal study for his dissertation. He studied a number of CEOs, followed them around and observed them. Findings.

Ten Manager RolesThree Conceptual CategoriesInformationalInterpersonalDecisionalMonitorDisseminatorSpokespersonFigureheadLeaderLiaisonEntrepreneurDisturbance handlerResource allocatorNegotiator20Interpersonal RolesRoles managers assume to coordinate and interact with employees and provide direction to the organization.Figurehead role: symbolizes the organization and what it is trying to achieve.Leader role: train, counsel, mentor and encourage high employee performance.Liaison role: link and coordinate people inside and outside the organization to help achieve goals.21Informational RolesAssociated with the tasks needed to obtain and transmit information for management of the organization.Monitor role: analyzes information from both the internal and external environment.Disseminator role: manager transmits information to influence attitudes and behavior of employees.Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.22Decisional RolesAssociated with the methods managers use to plan strategy and utilize resources to achieve goals.Entrepreneur role: deciding upon new projects or programs to initiate and invest. Disturbance handler role: assume responsibility for handling an unexpected event or crisis.Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.23Management ChallengesIncreasing number of global organizations.Building competitive advantage through superior efficiency, quality, innovation, and responsiveness.Increasing performance while remaining ethical managers.Managing an increasingly diverse work force.Using new technologies.24THE CHANGING PARADIGM OF MANAGEMENT

25A paradigm is a mind-set that presents a fundamental way of thinking, perceiving, and understanding the world. The primary shift is from the traditional vertical organization to a learning organization as a result of forces impacting the organization.Management's Traditional Mind SetTight top-down controlEmployee separation and specializationManagement by impersonal measurements and analysis

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Changes Bringing About the Management RevolutionGlobal competitionDiversity of the workforceTechnology is electronic not mechanicalAccepting of change and chaosRequest for sharing of powerNew decision makersWhich way do I go?27Globalization. The most striking change affecting organizations and management is globalization. Today, everyone is interconnected in the flow of information, money, or products, and interdependencies are increasing. There is a need for relentless innovation, greater concern for quality, rapid response, enhanced productivity, and new levels of customer service.Diversity of the workforce has become a fact of life for all organizations, even those that do not operate globally.Technology is electronic rather than mechanical, as the world shifts from a work force that produces material things to one that manages information.Accepting of change & chaos chaos theory suggests that the world is characterized by randomness and uncertainty. Small eents often have massive & far-reaching consequences. Request for sharing of power -- Theory Z. Global competition has also triggered a need for new management approaches that emphasize empowerment of workers and involvement of employees. Theory Z is a hybrid form of management that incorporates techniques from both Japanese and American practices. In the face of these rapid transformations, organizations are learning to value change over stability.

SLOW EVOLUTIONARY CHANGE IN FAST CHANGING WORLD

IS THE ROAD TO28

EXTINCTION29Results ofManagement Revolution Recognize no perfect answer(s) Do more with less Ask to create vision Ask to create cultural values

Times Are Changing30The change to the new paradigm of management means that managers now must rethink their approach to organizing, directing, and motivating workers. Now what is being discussed as the goal that organizations should aim for is to become a learning organization.LeadershipParticipativeStrategyTeam-BasedStructureStrong, AdaptiveCultureOpenInformationEmpoweredEmployeesLEARNINGORGANIZATIONInteracting Elementsin a Learning Organization31In the new paradigm, the primary responsibility of managers is not to make decisions, but to create learning capability throughout the organization. The learning organization: A philosophy or attitude about what an organization is and the role of employees.Top managers are leaders who create a vision for the future that is widely understood. Employees are empowered to identify and solve problems and understand the organizations vision and long-term goals.Traditional top-down hierarchy is replaced by flatter organizations built around self-directed teams collaborating across levels and departments.VIDEO: THE NEW MANAGEMENT PARADIGM

32QUESTIONS TO THINK ABOUTIf the paradigm is changing, does that make the management function obsolete?What are the most striking changes under the new paradigm affecting organizations & management as demonstrated in this video?What changes in management competencies can you identify that are critical to success in the learning organization?Are there variations in Barbados and other parts of the Caribbean that must be taken into consideration if the new management paradigm is to be adopted here?331.If the paradigm is changing, does that make the management functions obsolete? Explain your answer using the companies in this video.Answer: No, it does not. The four functionsplanning, organizing, leading, and controllingstill exist and the work needs to get done. The approach to these functions is changing with the new paradigm and not the functions themselves. It is very evident that managers at La Madeleine, Hard Candy, Southwest, and other organizations featured in the video are still performing these functions, but the approach is significantly different.2.What are the most striking changes under new paradigm affecting organizations and management as demonstrated in this video?Answer: Some of the striking changes are decision making involvement of employees at all levels, the increased appreciation for diversity, employee expectations, and so on.3.What changes in management competencies can you identify that are critical to success in the learning organizations?Answer: The focus of management is turning away from profits towards the employees and customers in a learning organization. The leadership roles are more dispersed using employee empowerment more in a learning organization as opposed to autocratic leadership. Accomplishing work in a learning organization is performed through teams rather than individually. Relationships in a learning organization are built on collaboration and not around conflict and competition.4. ELICIT