Ch.1: Introducing Management

Transcription

1 Ch.1: Introducing Management Challenges of working in the new economy How does intellectual capital, ethics, diversity, globalization, technology and the changing nature of careers influence working in the new economy? Define intellectual capital, workforce diversity and globalization. How prejudice, discrimination, and the glass ceiling effect hurt people at work. The New Economy is global and driven by innovation and technology as the society changes, one must learn to adapt by continuously learning in order to say ahead of times has high expectations for organizations and their members organizations are expected to excel on performance criteria that include concerns for ethical/social responsibilities, innovativeness, employee development, profitability an investment value Intellectual Capacity/Talent of a Workforce is the ultimate foundation of organizational performance in the new economy an organization performs better when the full potential of talent from many people, sometimes thousands of them, are combined to be successful, one must be a source of intellectual capital for employers, therefore, one should strive to become a knowledge worker Intellectual Capacity (I.C) = Competency x Commitment willing to reach the heights of personal competency & accomplishment to learn continuously from experience Ethics acting unethically in today's economy can have dire consequences (eg. Jeffrey Skilling, CEO of Ehron acted illegally. His actions caused the organizations collapse which affected its company, employees, shareholders and customers.) most organizations implement their corporate social responsibility that meet the standards/expectations of ethical leadership at all levels such as showing the respect for ethical issues such as sustainable development, protection of the natural environment/consumers through safety and fair practices and the protection of human rights in all aspects of society

2 Diversity diversity issues affect the employability of people with different ethnic backgrounds (eg. employers are more likely to respond to people who have white sounding first names) should be viewed upon as an asset in today's diverse/multicultural workforce because if tapped, creates opportunities for performance gains. the problem today is that many employers address this issue with the goal of making money, rather than truly valuing and managing diversity Globalization (improvements in technology especially in communication and transportation) offers both opportunities and challenges in today's economy (eg. John Thornton who brought in workers from Ireland to replace his workers who went on a strike) challenges include: -causing corporate leaders to worry about nation competitiveness -causing employees to worry about being replaced by workers in other countries who are willing and able to perform their jobs through outsourcing and at a lower cost to employers -causing graduates to worry about lower-priced competition for the same jobs from graduates in other parts of the world -loss of rights by individual governments and people opportunities include: -the ability to create all kinds of new products/services by partnering with people you can reach through cyberspace -being able to market your products/services to a worldwide market -less restrictive travel -more aid to third world countries by the redistribution of wealth Technology: Technological advances (eg. , instant/text messaging, blog) make it easier for people to communicate through electronic media Physical distances don't matter anymore (people can hold meetings, share info/files, make plans, solve problems without having to meet face to face, & work from home)

3 aids employers employ potential candidates (eg. learning more about them by checking their on-line profiles on social networking sites) there is an increased demand for knowledge workers with the skills to fully use technology Walmart is a good example of making use of technological advances. They utilized information technology information by using bar codes in 1983 to serve customers and sell many products and in 2005, they used RFIDs(radio frequency identification tag) which helped keep track of inventory faster since RFIDs did not need to be scanned when shipments arrived Careers(core,contract, part-time workers): globalization, emerging technologies and the demand for talent make very personal the importance of initiative and self-renewal when it comes to careers we should be prepared to prosper in any of the shamrock's 3 leaves because it is very likely that we will be changing jobs/employers in the future therefore, we must become a portfolio worker who's skills are portable always of value by maintaining and upgrading them all the time. a good work environment is what keeps people motivated freedom, autonomy, respect is a must Intellectual Capital - The collective brainpower or shared knowledge of a workforce. Workforce Diversity - Describes differences among workers in gender, race, age, ethnicity, sexual orientation and able-bodiedness. Globalization - The worldwide interdependence of resource flows, product markets, and business competition. Prejudice, Discrimination & the Glass-ceiling Effect Prejudice - The display of negative, irrational attitudes towards members of diverse populations. Discrimination - Actively denies minority members the full benefits of organizational membership. Glass-ceiling Effect - An invisible barrier limiting career advancement of woemn and minorities All of these issues: -make people seem inferior -lowers self-confidence -raises anger and bitterness -encourages emotional barriers -loss of motivation -reduced individual rights -restricted opportunities -limited access to services -mental illness caused by stress

4 Organizations in the New Workplace How do organizations operate as open systems? Explain productivity as measure of organizational performance. Distinguish between performance effectiveness and performance efficiency. List several ways in which organizations are changing today. Organizations as open systems interacts with the external environment in a continual process of transforming resource inputs to product outputs in the form of goods and/or services The environment supplies The organization creates The environment consumes Resource Inputs people money materials technology information Transformation Process work activities turn resources into outputs Product Outputs Finished goods and services Consumer feedback the external environment is both the supplier and source of customers consumer feedback from the environment indicates how well the organization is doing without loyal customers, a business can't survive Productivity and Organizational Performance in Organizations Organizational Performance is the process of value creation because, if operations add value to the original cost of resource inputs: 1) the business organization can earn a profit (sell a product for more than the cost of making it) 2) a non-profit organization can add wealth to the society (provide a public service that is worth more than its cost like fire protection in a community)

5 you can measure how well an organization is performing through its productivity, which, -measures the quantity and quality of outputs relative to the cost of inputs -involves the two common performance measures of effectiveness and efficiency high level of output = more effective low input = less efficient (eg. in reducing costs) Performance Effectiveness & Performance Efficiency Performance Effectiveness-An output measure of a task or a goal accomplishment. (eg. if you're working as a software engineer for a computer game developer, this will mean that you meet a daily production target in terms of quantity/quality which adds to productivity, helping the company as a whole to maintain its production schedule and meet customer demands for timely delivery and high quality gaming products) Performance Efficiency-An input measure of resource cost associated with goal accomplishment. (eg. back to the gaming example, the most efficient software production is accomplished at a minimum cost in materials and labor. if you are inefficient, such as producing less lines and making a lot of mistakes, productivity is reduced) dimensions of organizational performance: Goal Attainment HIGH LOW Organizations Effective but not efficient goals achieved, wasted resources Neither effective, nor efficient goals not achieved, resources wasted POOR Effective and Efficient goals achieved, no wasted resources, high productivity Efficient but not effective no wasted resources, goals not achieved GOOD Resource Utilization Changing Nature of -is a continuing theme in society -are undergoing dramatic changes today

6 -organizational trends and transitions include: renewed belief in human capital (knowledge and skills to be used in productive activities subsequently contributing to economic growth) demise of 'command and control' emphasis on teamwork dominance of technology embrace of networking new workforce expectations (less tolerance for hierarchy, more informality and more attention to performance merit than to status and seniority) concern for work-life balance focus on speed Organizational Environment Key elements in the general and specific environments of organizations. Sustainable business and sustainable innovation. How businesses can create value for four key stakeholders. Competitive advantages and examples on how a business can achieve it. Analyzing the uncertainty of an organization's external environment. Systems resource, internal process, goal and strategic constituencies approaches to organizational effectiveness. General/Specific Environment General Environment Composed of economic, legal-political, technological, socio-cultural and natural environment conditions eg. sample general environment conditions faced by firms like Starbucks Legal-Political Environment laws and regulations business forms political trends Economic Environment economic growth unemployement rate disposable income Socio-Cultural Environment population demographics education system health/nutrition values Natural Environment green values recycling infrastructure Starbucks Technological Environment IT systems/infrastructu res broadband internet access

7 economic conditions: conditions that affect the amount of wealth available to consumers which affect product markets and spending patterns such as inflation, income levels, gross domestic product, unemployment and job outlook legal-political conditions: conditions that are represented by existing and proposed laws and regulations, government policies and the philosophy and objectives of political parties that can affect the regulation and performance of their businesses technological conditions: changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment. socio-cultural conditions: a set of beliefs, customs, practices, behavior and social values on matters such as ethics, human rights, gender roles and lifestyles that exists within a population. -includes environmental trends in education as well as demographic patterns (these factors, social/demographic trends help businesses anticipate shifting values that will affect customer tastes and preferences) -international companies often include an examination of the socio-cultural environment prior to entering their target markets. natural conditions: -conditions that are represented by the public concern for environmentally friendly produced products that preserve and respect the environment Specific/Task Environment consists of the actual organizations, groups and persons with whom an organization interacts directly, conducts business and that have a direct impact on the organization's ability to achieve its goals. members of the specific environment are described as stakeholders, who are the persons, groups and institutions affected by the organization's performance typically includes the industry, competitors, customers, techniques of production, suppliers, stock market, raw materials, market sectors, and perhaps the human resources and international sectors. Sustainable Business/Innovation Sustainable business -where firms operate in ways that both meet the needs of customers and protect or advance the well-being of our natural environment (eg. less waste, toxic materials, resource/energy efficiency and renewable energy) Sustainable innovation -creates new products and production methods that have reduced environmental impact -are found in areas like energy use, water use, packaging, waste management, transportation practices and product developement

8 Value Creation from Businesses for Stakeholders value creation -is the creation of value for and satisfying needs of stakeholders -eg. businesses create value for customers through product pricing and quality " " for stakeholder value for suppliers through the benefits of long-term business relationships " " for employees can take form as wages earned and job satisfaction. " " for competitors, eg. having a Starbucks in the neighbourhood stimulates growth for indepedent coffee shops. Starbucks has created a clientele for coffee that would not have existed. for owners, the value is created in realized profits and losses Competitive Advantage & how it can be Achieved -allows an organization to deal with market and environmental forces better than its competitors -refers to something that an organization does extremely well, a core competency that sets is apart from competitors and gives it an advantage over them in the marketplace -when these are things others cannot quickly copy or easily learn to do, the competitive advantage becomes more sustainable over time (eg. Walmart's inventory management technology & Coca-cola's brand management that helped maintain a loyal customer base) -is linked with strategic positioning, when an organization does different things or the same things in different ways from the major competitors -can be achieved through costs: operating with lower costs than the competitors and earn profits with prices that competitors have difficulty matching. quality: creating products and services that are consistently higher quality for customers in comparison to the competitors. delivery: outperforming competitors by delivering products and services to customers faster and on time, to continue to develop timely new products. flexibility: finding ways to adjust and tailor products and services to fit customer needs in ways that are difficult for one's competitors to match Environmental Uncertainty -is the lack of complete information regarding what exists and what developments may occur -makes it difficult to analyze general environment conditions and deal with stakeholders' needs -greater uncertainty makes it harder to predict future states of affairs and understand their potential suggestion for the organization

9 -consists of two dimensions: degree of complexity & rate of change High (dynamic) Rate of Change in environment Low (stable) Highmoderate uncertainty Low uncertainty High uncertainty *requires greatest flexibility and adaptation* Lowmoderate uncertainty Low High (simple) (complex) Complexity of environment -because of uncertainty, organizations must be able to respond quickly as new circumstances arise and new info. becomes available Organization Effectiveness -a basic indicator of management success in dealing with complex/changing environments -is sustainable high performance in using resources to accomplish a mission -different approaches that evaluate organizational effectiveness are: 1)system resource-focus on resource acquisition 2)internal process-focus on operations efficiency 3)goal approach-focus on accomplishing key objectives 4)strategic constituencies-focus on stakeholder impact -in the short term, the criteria focuses on performance effectiveness in goal accomplishment, and performance efficiency in resource utilization and stakeholder satisfaction -in the medium term, adaptability in the changing environments and the development of people and systems to meet new challenges are important -in the long run, the criterion is prosperity under conditions of uncertainty

10 Managers in the New Workplace Various types and levels of managers Define accountability and quality of work life and their importance to managerial performance How managerial work is changing today The role of managers in the upside-down pyramid view of organizations Various Types and Levels of Managers Typical Business Chief Executive Officer (CEO) President Vice President Division Manager Regional Manager Plant Manager Top Manager s Middle Managers Typical Non-Profit Executive Director President, Administrator Vice President Division Manager Regional Manager Branch Manager Department Head Supervisor Team Leader First-Line Managers Non-managerial Workers Department Head Supervisor Team Leader Levels of managerial authority: Top Managers - guide the performance of the organization as a whole or of one of its major parts. Middle Managers - are in charge of relatively large departments consisting of several smaller work units. Team Leader/Supervisor - someone in charge of a small work group composed of non-managerial workers. Types of managers: Line managers - are responsible for work that makes a direct contribution to the organization's outputs. (eg. president, retail manager, department supervisor) Staff managers - use special technical expertise to advise and support the efforts of line workers. (eg. director of human resources, chief financial officer) Functional managers - have responsibility for a single area of activity such as finance, marketing, production, human resources, accounting or sales. General mangers - are responsible for activities covering many functional areas. Administrators - a manager in a public or non-profit organization. (eg. hospital administrators, public administrators, city administrators)

11 Importance of Accountability/Quality of work life in managerial performance Accountability - is the requirement of one person to answer to a higher authority for performance results to a supervisor. (the team leader is accountable to a middle manager, the middle manager is accountable to a top manager and the top manager is even accountable to a board of directors/trustees) Quality of work life (QWL) - The overall quality of human experiences in the workplace. (eg. fair pay, safe working conditions, opportunities to learn and use new skills, room to grow and progress in a career, protection of individual rights and pride in the work itself and in the organization.) An effective manager helps others achieve high performance and satisfaction at work. Changes in Managerial Work/Upside-Down Pyramid managers nowadays are known more for helping and supporting employees rather than directing and giving orders they are often found providing advice and developing the support needed for others to perform to the best of their abilities the upside down pyramid shows operating workers at the top, serving customers while managers are at the bottom, supporting them. (the whole organization is devoted to supporting the customer and the job of the manger is to support the workers)

12 The Management Process Define each of the management functions-planning, organizing, leading and controlling Explain Mintzberg's view of what managers do, including the 10 key managerial roles Explain Kotter's points on how managers use agendas and networks to fulfill their work and responsibilities Define three essential managerial skills-technical, human and conceptual skills Explain Katz's view on how these skills vary in importance across management levels Define emotional intelligence as an important human skill List and give personal competencies important for managerial success Management Functions Management is the process of planning, organizing, leading and controlling the use of resources to accomplish performance goals. 1) Planning: The process of setting performance objectives and determining what actions should be taken to accomplish them. 2) Organizing: The process of assigning tasks, allocating resources and coordinating work activities. 3) Leading: The process of arousing people's enthusiasm to work hard and inspiring their efforts to fulfill plans and accomplish objectives. 4) Controlling: The process of measuring work performance, comparing results with objectives and taking corrective actions as needed. What Managers do, according to Mintzberg, and his 10 key managerial roles Managers: work long hours work at an intense pace work at fragmented and varied tasks work with many communication media accomplish their work largely through interpersonal relationships The 10 key managerial roles: The informational role, involves the giving, receiving and analyzing information. [will be a monitor (scans for information), a disseminator (shares information), and a spokesperson (official communicator)] The interpersonal role, involves interactions with people inside and outside the work unit. [will be a figurehead (models and sets forth key principles and policies), leader (provides directions and instilling enthusiasm), and a liaison (coordinating with others) [

13 The decisional role, involves using information to make decisions to solve problems or address opportunities. [will be a disturbance handler (deals with problems and conflicts), a resource allocator (handles budgets and distributes resources), a negotiator (makes deals and forging agreements) and an entrepreneur (develops new initiatives. Interpersonal Roles How a manager interacts w/ other people Figurehead Leader Liaison Informational Roles How a manager interacts w/ other people Monitor Disseminator Spokesperson Decisional Roles How a manager uses infomation in decision-making Entrepeneur Disturbance handler Resource allocator Negotiator Kotter's Points on Managerial Agenda's and Networks According to Kotter, the two activities that contribute to a manager's success are their: agenda setting - the developing of action priorities that include goals/plans spanning long and short time frames & networking - the process of building and maintaining positive relationships with people whose help may be needed to implement one's agendas. (creates social capital, which is a capacity to attract support and help from others in order to get things done) Essential Managerial Skills & how they vary across management levels Conceptual skills: The ability to think analytically and achieve integrative problem solving. (important for top managers) Human/Interpersonal skills: The ability to work well in cooperation with other persons. (important across all managerial levels) Technical skills: The ability to apply expertise and perform a special task with proficiency. (important at career entry levels) The importance of Emotional Intelligence is the ability to manage ourselves and our relationships effectively is reflected in how well or poorly you recognize, understand and manage feelings while interacting and dealing with others someone with high EI will know when his or her emotions are about to become disruptive, and act to control them, will sense when another person's emotions are negatively influencing a relationship and make attempts to understand and better deal with them

14 Competencies important for managerial success -include: communication (being able to share ideas and findings clearly in written and oral expression) teamwork(ability to work effectively as a team member and team leader) self management(ability to evaluate oneself, modify behavior and meet performance obligations) leadership (ability to influence and support others to perform complex and ambiguous tasks) critical thinking (ability to gather and analyze information for creative problem solving) professionalism (ability to sustain a positive impression, instill confidence, and maintain career advancement)