NEW ERA MANAGEMENT

 

NOTA NEW ERA MANAGEMENT

PART 1: INTRODUCTION TO MANAGEMENT

TOPIC 1: MANAGING IN TURBULENT TIMES

1.     WHY INNOVATIVE MANAGEMENT MATTERS?

• Innovations in products, services, management systems, production processes, corporate values, and other aspects of the organization are what keep companies growing, changing, and thriving. Without innovation, no company can survive over the long run. In today’s world, industries, technologies, economies, governments, and societies are in constant flux, and managers are responsible for helping their organizations navigate through the unpredictable with flexibility and innovation.

• Innovation has become the new imperative, despite the need for companies to control costs in today’s economy. In a January 2009 survey of corporate executives in Asia, North America, Europe, and Latin America, 76 percent agreed that “innovation is more important than cost-reduction for long-term success.”

2.     ORGANIZATIONAL CHANGE

·       Pace continues to accelerate

·       Change is major source of business risk

·       DRIVING FORCE

·       Telecommunications

Ever-advancing technology has shrunk the world

·       Diversity of workers

Increasing diversity of workers has brought in a wide array of differing values, perspectives and expectations among workers

·       Public consciousness

Public consciousness has become more sensitive and demanding that organizations be more socially responsible

·       Global marketplace

Strive to remain competitive in the face of increasingly though global competition

Much of the 3^rd world countries have joined the global marketplace, creating a wider arena for sales and services

·       Community of stakeholders

Organizations are responsible to stockholders

Focus on building relationships with employees, customers, partners and suppliers

3.     DEFINITION OF MANAGER

·       One who handles, controls or directs the activities of others in an organization

·       Anyone who uses management skills or holds the organizational title of ‘manager’ having ability to command a certain unit

4.     DEFINITION OF MANAGEMENT

·       Management is a multi-purpose organ that manages a business, manages managers and manages workers and work

·       The attainment of organizational goals in an effective and efficient manner through

·       FUNCTION

·       Planning

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.

Decide on organizational goals and allocate and use resources to achieve those goals.

·       Organizing

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.

Establish the rules and reporting relationships that allow people to achieve organizational goals

·       Leading

the use of influence to motivate employees to achieve organizational goals. Leading means creating a shared culture and values, communicating goals to people throughout the organization, and infusing employees with the desire to perform at ahigh level. One doesn’t have to be a well-known top manager to be an exceptional leader.

Encourage and coordinate individuals and groups so that they work toward organizational goals

·       Controlling

monitoring employees’ activities, determining whether the organization is on

target toward its goals, and making corrections as necessary. Managers must ensure

that the organization is moving toward its goals. 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.

Evaluate how well the organization is achieving goals and maintain, improve and correct performance

·       FIVE TASK MANAGERS

·       Set objectives

The manager sets goals for the group, and decides what work needs to be done to

meet those goals.

·       Organizes

The manager divides the work into manageable activities, and selects people to

accomplish the tasks that need to be done.

·       Motivates and communicates

The manager creates a team out of his people, through decisions on pay, placement,

promotion, and through his communications with the team. Drucker also referred to this as the “integrating” function of the manager.

·       Measures

The manager establishes appropriate targets and yardsticks, and analyzes, appraises and interprets performance.

·       Develops people

With the rise of the knowledge worker, this task has taken on added importance. In a knowledge economy, people are the company’s most important asset, and it is up to the manager to develop that asset.

·       VERTICAL MANAGEMENT TYPES

·       Top managers

Title: president, chairperson, executive director, ceo, executive vice president

Responsibility: setting organizational goals, define strategies, monitor and interpret external environment, making decision, communicate shared vison, shaping corporate culture, nurturing an entrepreneurial spirit, keep pace with rapid change, look to the long term future

1.     Set objectives

2.     Scan environment

3.     Plan and make decisions

·       Middle manages

Title: department head, division head, manager of quality control, director of research lab

Responsibility: implementing overall strategies and policies, concerned with near future

1.     Report to top management

2.     Oversee first-line managers

3.     Develop and implement activities

4.     Allocate resources

·       First-line managers

Title: supervisor, line manager, section chief, office manager

Responsibility: production of goods and services, teams and nonmanagement employees, concern with application of rules, provide technical assistance, motivate subordinates

1.     Report to middle managers

2.     Supervise employees

3.     Coordinate activities

4.     Are involved in day-to -day operations

·       MANAGEMENT SKILLS

·       Perspective classic (Robert 1974)

1.     Conceptual

2.     Humanism

3.     Technical

·       CURRENT PERSPECTIVE

·       Task related activities

·       Human related activities

·       Managing changes

·       MANAGER JOB CHANGES (Daft, 2014)

·       Telecommunication technology

·       Workforce diversity

·       Public awareness

·       Global market

·       Community stakeholders

·       Customers and managers

·       Social media

5.     INNOVATION AND COMPETENCY MANAGEMENT

·       Combination of internet and innovation create new forms of business (Lazada, Alibaba). Manger now face completely different workload than managers 30 years ago

·       Need versatile managers to perform increasingly challenging task, working efficiently and effectively

·       Provided with power to undertake new approaches that may be different from the past

6.     MANAGING NEW ERA

·       Key Elements

·       Internet

·       Globalization

·       Collaboration across “boundaries”

·       Knowledge management

·       Management and the new workplace

·       Forces on organizations

·       New management competencies

1.     Dispersed leadership

2.     Empowering other

3.     Collaborative relationships

4.     Team-building skills

5.     Learning organization

·       Manager’s Job

·       Interpersonal roles

1.     Figurehead

2.     Leader

3.     Liaison

·       Informational roles

1.     Monitor

2.     Disseminator

3.     Spokesperson

·       Decisional roles

1.     Entrepreneur

2.     Disturbance handler

3.     Resource allocator

4.     Negotiator

 

PAER 1: CHAPTER 2: THE EVOLUTION OF MANAGEMENTS THINKING

1.     MANAGEMENT AND ORGANIZATION

·       Management philosophies and organization forms change over time to meet new needs

·       Some ideas and practices from the past are still relevant and applicable to management today

·       Three factors influenced:

                 i.     Social forces: people value, people need, standard behavior among people, attitudes, ideas, and values of “Y generation, public healthy”

               ii.     Political forces: increased role of government, in business, underlying political system, property right, increase tax rate, justice

             iii.     Economic forces: tax rate, financial crisis, credit issue, military, school, welfare

2.     4 MANAGEMENT THEORIES

·       The classical school (1960)

-        Scientific management

·       F.W. Taylor’s proposed work methods designed to increase worker productivity

·       Focuses on worker and machine relationships

·       Organizational productivity can be increased by increasing the efficiency of production processes.

·       Principle of scientific management:

§  Replace rule of thumb work methods with methods based on a scientific study of the tasks

§  Scientifically select, train and develop each worker rather than passively leaving them to train themselves

§  Cooperate with the workers to ensure that the scientifically developed methods are being followed

§  Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks

-        Administrative management

·       Henri Fayol (1841-1925) introduced pyramidal form of organization

·       Types of activities:

§  Technical activities (production, manufacturing)

§  Commercial activities (purchasing, selling and exchange)

§  Financial activities (optimum use of capital)

§  Security (protection of property and persons)

§  Accounting (stock taking, balance sheet, costing, statistics)

§  Managerial (planning, organizing, coordinating and controlling)

·       Administrative principles & 14 points

§  Division of work

§  Authority

§  Discipline

§  Unity of command

§  Unity of direction

§  Subordination of individual interest for common good

§  Remuneration

§  Centralization

§  Scalar chain

§  Order

§  Equity

§  Stability and tenure of staff

§  Initiative

§  Esprit de corps

-        The bureaucratic model

·       Max weber

·       Rules and regulations to eliminate managerial inconsistencies

·       Authority is the power to hold people accountable for their actions

·       Positions in the film should be held based on performance not social contacts

·       Position duties are clearly identified. People should know what is expected of them

·       Lines of authority should be clearly identified. Workers know who reports to who

-        Principal of bureaucratic theory

·       Authority hierarchy

·       Formal rules and regulations

·       Division of labour

·       Career orientation

·       Impersonality

·       Formal selection process

-        Classical perspective

·       Emerged during the 19^th and early 20^th centuries

§  Rise of the factory system and industrialization

§  Issues regarding structure, training and employee satisfaction and safety

§  Large, complex organizations required new approaches to coordination and control

§  Oldest formal school of thought which began around 1900 and continued into the 1920s

§  Mainly concerned with the increasing the efficiency of workers and organizations based on management practices which were an outcome of careful observation

§  Mainly kooks for the universal principles of operation in the striving for economic efficiency

§  Includes scientific, administrative, and bureaucratic management.

·       The human relations school

                 i.     Human relations movement: emphasized satisfaction of employees’ basic needs as the key to increased worker productivity

-        Elton mayo conduct research in Hawthorne Electric Plant (1924-1930) to research effect of physical conditions on productivity called as Hawthorne Studies but could not found any relation between on productivity

-        Proving relationship between human social factors and production. Relevant even today. Considered to be most important event

-        Test effect of:

·       Lightning

·       Heating

·       Job breaks

·       Physical arrangement

-        Implication:

·       Physical and social factors are important

·       Organization is not only structure but also people

·       Social factors, Cliques and status systems are important

·       Illumination test: recognition and attention=strong motivators

·       Relay assembly experiment: supervisor and communication=important

·       Bank wiring: group pressures and group dynamics exist and create conflict interest

               ii.     Human resources perspective: suggests job should be designed to meet higher level needs by allowing workers to use their full potential

-        Focus on job tasks and theories of motivation:

·       Reduce dehumanizing or demeaning work

·       Allow workers to use full potential

·       Perspective came from idea that cows gave more milk when they satisfied

-        Abraham Maslow

·       Physiological needs (wages)

·       Safety needs (retirement plan)

·       Social needs (friend)

·       Esteem needs (job title)

·       Self-actualization needs (challenging job)

-        Douglas McGregor

·       Theory X- authoritarian repressive style. Tight control, no development, produces limited, depressed culture

§  Lazy

§  Lack ambition

§  Dislike responsibility

§  Self-centered

§  Don’t like change

§  Need close supervision

·       Theory Y- liberating and developmental, control, achievement and continuous improvement achieved by enabling, empowering and giving responsibility

§  Energetic

§  Want to make contribution

§  Do have ambition

§  Seek responsibility

§  Work as natural as rest and play

Humanistic perspective: early advocates

-        Understand human behaviors, needs and attitudes in workplace

-        People>engineering techniques

-        Empowerment: facilitate>control

-        Recognition of informal organization

-        Introduce acceptance theory of authority

-        Chester Barnard

·       People should continuously communicate and cooperate

·       Acceptance theory of authority hold employees have free will and choose to follow management’s order if they understand:

§  Understand what is requires

§  Believe the orders are consistent with organization goals

§  See positive benefits to themselves in carrying out the orders

-        Marker Parker Follet

·       Workers should participate in solving problems

·       Managers need to communicate with workers

·       Managers need to establish good working relationships with employees

Humanistic perspective: human relation movement

-        Effective work comes from employee

-        Hawthorne studies: key contributor

-        Paid key variable in increase performance

-        Employee perform better when manager treat positively

-        Strongly shaped management practice and research

             iii.     Behavioral sciences approach: applies social science in an organizational context; draws from economics, psychology, sociology, anthropology and others.

-        Focus on human behavior and interaction

-        Organizational development came from behavioral sciences approach to improve organizational health and effectiveness

Behavioral science approach (Masslow, F. Herz Berg & Mc Gregor)

-        Human more complex > economic man (classical approach) and social man (human relations approach)

-        Concentrate more on nature of work and degree which can fulfill human need to use skill and ability

-        Did not always increase productivity

-        Motivates and leadership techniques topic of great interest

-        Human resource school understand employee creative and competent largely untapped by employers

             iv.     Assumptions

-        Have ability to shape own destiny

-        Not driven by biological, instinctive drives

-        Centers on person’s value, capacities and worth

-        Unique and focus on subjective feeling, experience and interpretation of person

-        Leaning is person-centered and individual

-        Have capacity to grow

-        Have free will and can make choices

-        Believes that people need save environment to grow

-        Environment:

·       Genuineness (openness and self-disclosure)

·       Acceptance

·       Empathy (being heard and understood)

·       Management science perspective

-        Meet changing and dynamic environment create from WWII

-        Engaged maths, statistics and qualitative techniques to aid in decision making

-        Increased study of management led by Peter Drucker

-        Use technology and programming for optimize operation

-        Introduce new subset management:

·       Operation research

·       Operation management

·       Information technology

·       Management science theory

-        Use rigorous quantitative techniques to help managers make maximum use of organizational resources

-        Quantitative techniques: utilize linear programming, modeling, simulation systems

-        Operation management: techniques to analyze all aspect of production system

-        Total quality management: focus on improve quality throughout organization

-        Management information systems: provide information about organization

·       Contemporary approaches

-        System: set of interrelated and interdependent parts arranged in a manner that produce unified whole

·       Process closed system: not influence by and don’t interact with environment

·       Open system: system that interact with environment

-        Contingency approach: management approach that recognize organization as different situation and require different ways of managing

 

Innovative management: thinking for a changing world:

·       Management ideas trace their roots to historical perspective

·       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

Managing the new technology-driven workplace

·       Most work is performed on computers in today’s workplace

·       Companies use technologies to communicate and collaborate

·       Key technologies in today’s workplace:

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

o   Customer relationship management: technology used to build relationships with customers and integrate systems

o   Outsourcing: contracting functions or activities to other organizations to cut costs

o Social media programs: company online community pages, social media sites, microblogging platforms and online