Ch01

Chapter 1
Innovative Management for a Changing World

Why Innovative
Management Matters
• Innovation is the new imperative

• Organizations cannot survive long-term without
innovation
• Companies like Facebook are always investing in
new ideas
• Innovation should be a part of products,
processes, people, and values
• Cases: The Greatful Dead, Psy – Gangnam Style
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2

The Definition of Management
Management is the attainment of organizational

goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources:
 Managers get things done through the organization.
 Managers create right systems and environment.
 Organizations need good managers.

Planning
• Identifying goals for future organizational

performance;
• Deciding on the tasks and use of resources
needed to be in the future

Organizing
• Typically follows planning.

• Reflects how the organization tries to accomplish
the plan
• Assign tasks
• Group tasks into departments
• Delegate authority
• Allocate resources across the organization

Leading
• Use of influence to motivate employees to

achieve organizational goals
• Create a shared culture and values
• Communicate goals to people throughout the
organization
• Infuse employees with the desire to performa at
a high level

Controlling
• Monitor employees’ activities

• Determine whether the organization is on target
toward its goals
• Make corrections as necessary
• Evaluate the performance

1.1 What Do Managers Do? (Murray, 2010)
1.2 The Process of Management
9
Organizational Performance
• An organization = a social entity that is goal directed

and deliberately structured
• Organizational effectiveness – providing a product or

service that customers value  achieving an goal
• Organizational efficiency refers to the amount of

resources used to achieve an organizational goal;
≈ Productivity = Output / Input
• High Performance – The ability to attain its goals by

using resources efficiently & effectively
10
Efficiency vs. Profitability
Management Skills
• Three categories of skills: (1) conceptual, (2)

human, (3) technical
• The degree of the skills may vary, but all
managers must possess the skills
• The application of management skills change as
managers move up the hierarchy
12
1.3 Relationship of Skills to Management
13
When Skills Fail
• Missteps and unethical behavior have been in the

news
• During turbulent times, managers must apply their
skills
• Common management failures:
– Not listening to customers
– Misinterpreting signals from marketplace
– Not building teams
– Inability to execute strategies
– Failure to comprehend and adapt to change
– Poor communication and interpersonal skills
14
1.4 Top Causes of Manager Failure
(Logenecker, Neubert, Fink, 2007)
Management Types: Vertical
• Top managers are responsible for the entire

organization
• Middle managers are responsible for business

units
• Project managers: Responsible for
misinterpreting signals
• First-line managers are responsible for
production of goods and services
16
Management Types: Horizontal
• Functional Managers are responsible for

departments that perform specific tasks
• General Managers are responsible for several

departments
17
1.5 Management Levels
18
Making The Leap: Becoming
A New Manager
• Organizations often promote star performers to
management
• Becoming a manager is a transformation
– Move from being a doer to a coordinator
• Many new managers expect more freedom to
make changes
• Successful managers build teams and networks
• Many make the transformation “trial by fire”
• DQ: Why doesn’t a star QB always become a star
coach? 19
1.6 From Individual Performer to Manager
20
Do You Really Want
to Be A Manager?
 The increased workload

 The challenge of supervising former peers
 The headache of responsibility for other people
 Being caught in the middle

Manager Activities
Adventures in multitasking
– Activity characterized by variety, fragmentation, and
brevity
– Less than nine minutes on most activities
– Managers shift gears quickly
Life on speed dial

– Work at unrelenting pace
– Interrupted by disturbances
– Always working (catching up)
22
Manager Roles
• Role: Set expectations for a manager’s

behavior
• Every role undertaken by a manager
accomplishes the functions of:
– Planning
– Organizing
– Leading
– Controlling
23
Ten Manager Roles
Informational Decisional
 Monitor
 Entrepreneur
 Disseminator
 Disturbance
 Spokesperson
Handler
Interpersonal
 Resource
 Figurehead
Allocator
 Leader
 Negotiator
 Liaison
24
Manager Roles
• Manager roles are important to

understand, but they are not discrete
activities
• Management can’t be practiced as

independent parts
• Managers need time to plan and think

1.8 Hierarchical Levels and Importance of Roles
26
Managing in Small Business and
Nonprofit Organizations
Small businesses are growing

– Inadequate management skills is a threat
– The roles for small business managers differ
– Entrepreneurs must promote the business
Nonprofits need management talent

– Apply the four functions of management to make
social impact
– More focus on costs
– Need to measure intangibles like “improving
public health”
27
Innovative Management for
the New Workplace
• Rapid environmental shifts:
– Technology
– Globalization
– Shifting social values
• In the new workplace, work is free-
flowing and flexible at flatter structures.
• Success depends on innovation and continuous
improvement
28
1.9 Transition to a New Workplace
1.10 – State-of-the-Art Management
Competencies for Today’s World
30
New Management Competencies
• Collaboration across functions, levels, customers,

and companies
• Experimentation and learning are key values
• Knowledge and information sharing
More challenges and changes are on the horizon!

This is an exciting time in management.

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Chapter 1

Innovative Management for a Changing World

• Innovation is the new imperative

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2

Management is the attainment of organizational

 Managers create right systems and environment.

 Organizations need good managers.

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3

• Identifying goals for future organizational

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4

• Typically follows planning.

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5

• Use of influence to motivate employees to

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 6

• Monitor employees’ activities

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 7

• An organization = a social entity that is goal directed

• Organizational effectiveness – providing a product or

• Organizational efficiency refers to the amount of

• High Performance – The ability to attain its goals by

• Three categories of skills: (1) conceptual, (2)

• Missteps and unethical behavior have been in the

• Top managers are responsible for the entire

• Middle managers are responsible for business

• Functional Managers are responsible for

• General Managers are responsible for several

 The increased workload

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 21

Life on speed dial

• Role: Set expectations for a manager’s

• Manager roles are important to

• Management can’t be practiced as

• Managers need time to plan and think

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 25

Small businesses are growing

Nonprofits need management talent

• Collaboration across functions, levels, customers,

• Knowledge and information sharing

More challenges and changes are on the horizon!

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 31

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