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GM - Chapter 01

The document discusses the importance of innovation and management. It provides examples of Apple's innovative products and marketing research. It also defines management and describes the key functions of planning, organizing, leading, and controlling. The document outlines different management skills, roles, and levels within organizations.

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Phyo Aung Hein
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17 views

GM - Chapter 01

The document discusses the importance of innovation and management. It provides examples of Apple's innovative products and marketing research. It also defines management and describes the key functions of planning, organizing, leading, and controlling. The document outlines different management skills, roles, and levels within organizations.

Uploaded by

Phyo Aung Hein
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 34

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
• Case: Apple

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


Combining Marketing Research
and Technological Innovation
• Apple launched the iPad in 2010 and sold 300,000 of the tablets on
the first day, 1 million iPads in twenty-eight days – less than half of the
seventy-four days it took to sell 1 million iPhones. Consumers watched
more than 30 billion videos online in one month. As in the case of
other innovative products it had introduced in the past(iPod, iTunes
Music Store, iPhone), marketing research played a significant role in
the design and successful innovation of the iPad. Apple launched
iPad2 in March 2011. The company launched a new version of the iPad
on March 16, 2012, and sold more than 3 million units in four days,
making this the most successful launch yet for Apple’s tablet. On
September 12, 2012, Apple launched a new thinner iPhone 5 and pre-
orders sold out in less than an hour. The iPhone 5 set a new sales
record as customers placed more than 2 million pre-orders for iPhone
5 on the first day it was available, doubling previous results and
exceeding initial supply of the smartphone.
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3
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.

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


Planning

• Identifying goals for future organizational


performance; (set goals)
• Deciding on the tasks and use of resources
needed to be in the future (ways to attain them)

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


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

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


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

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


How Do you
think the
differences
between
these two
cultures?
Controlling

• Monitor employees’ activities


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

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 9


1.1 What Do Managers Do? (Murray, 2010)
1.2 The Process of Management

11
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
12
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

13
1.3 Relationship of Skills to Management

14
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

15
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
17
Management Types: Horizontal

• Functional Managers are responsible for


departments that perform specific tasks

• General Managers are responsible for several


departments

18
1.5 Management Levels

19
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”

20
1.6 From Individual Performer to Manager

21
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

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 22


Manager Activities

Adventures in multitasking
– Activity characterized by variety, fragmentation, and
brevity (within seconds)
– 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)

23
Manager Roles

• Role: Set expectations for a manager’s


behavior
• Every role undertaken by a manager
accomplishes the functions of:
– Planning
– Organizing
– Leading
– Controlling
24
Ten Manager Roles

Informational Decisional
 Monitor
 Entrepreneur
 Disseminator
 Disturbance
 Spokesperson
Handler
Interpersonal
 Resource
 Figurehead Allocator
 Leader
 Negotiator
 Liaison

25
• Informational roles include the functions used to maintain and
develop an information network.
–The monitor role involves seeking current information from
many sources.
–In the disseminator role, the manager transmits information to
others, both inside and outside the organization.
•The spokesperson role pertains to making official statements to
people outside the organization about company policies, actions,
or plans.
• Interpersonal roles refer to relationships with others and are
related to human skills.
• The figurehead role involves the handling of ceremonial and
symbolic functions for the organization.
• The leader role is the relationship with subordinates including
motivation, communication, and influence.
• The liaison role is the development of information sources both
inside and outside the organizations.
• Decisional roles come into play when managers must
make choices. These roles often require both
conceptual and human skills.
– The entrepreneur role involves the initiation of
change. Managers seek ways to solve problems or
improve operations.
– The disturbance handler role involves resolving
conflict among subordinates, between managers, or
between departments.
– The resource allocator role pertains to allocating
resources in order to attain desired outcomes.
– The negotiator role involves formal negotiations and
bargaining to attain outcomes for the manager’s unit
of responsibility.
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

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 28


1.8 Hierarchical Levels and Importance of Roles

29
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”
30
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

31
1.9 Transition to a New Workplace
1.10 – State-of-the-Art Management
Competencies for Today’s World

33
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.

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 34

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