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

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 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.

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 Planning

Identifying goals for future organizational

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

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 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

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 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

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 Controlling

Monitor employees activities

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

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

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 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
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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

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 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

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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 doesnt 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

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 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)

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 Manager Roles

Role: Set expectations for a managers

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

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

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 Manager Roles

Manager roles are important to

understand, but they are not discrete
activities

Management cant be practiced as

independent parts

Managers need time to plan and think

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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
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 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

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1.9 Transition to a New Workplace
1.10 State-of-the-Art Management
Competencies for Todays World

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 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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