At the end of each chapter we offer a Summary,which explains what the chapter's terms and concepts mean and why they are important.
Question the segment in the chapter before you read it: This step is easy to do, and the point, Does attending lectures really make a difference?
Research shows that students with grades of B or above were more apt to have better class attendance than students with grades of c- or below. Having background segment. In your mind, restate the heading as a knowledge makes learning more efficient. In this book, following each section head we present a Key Question. Then proceed to notes with a! Take notes in your own words: Instead of just being a stenographer, try to restate the lecturer's 3.
Read the segment about which you asked the thoughts in your own words,which will make you question: Now read the segment you asked the pay attention more. Read with purpose, to answer the question you formulated. Read this portion of the text more than once,if necessary,until you Review Your Notes Regularly can answer the question.
In addition,determine Make it a point to review your notes regularly-perhaps whether the segment covers any other significant on the afternoon after the lecture, or once or twice a questions, and formulate answers to these,too. We cannot emphasize enough the importance of After you have read the segment,proceed to step 4. Entrepreneurs start businesses; managers work long hours at an intense managers grow or maintain them. Both pace; and third, a manager's work is but especially entrepreneurs have a characterized by fragmentation, brevity, high need for achievement, high energy and variety.
Mintzberg concluded that level and action orientation, and managers play three broad roles: tolerance for ambiguity. Entrepreneurs 1 interpersonal-figurehead, leader, are more self-confident and have higher and liaison; 2 informational-monitor, tolerance for risk.
In Detroit, "there's almost a fanatical, maniacal interest in [market] share," Mr. For the past seven months, the year-old Italian-born Canadian has been working to shake up Chrysler and move the company away from old ways that forced it into bankruptcy reorganization last year. He has ousted several veteran executives, flattened its bureaucracy, and, according to people who have worked closely with Mr. Marchionne, injected an element of fear into its ranks.
One of the more frustrating problems for Mr. Marchionne has been the use of heavy rebates and other incentives to maintain sales-an issue that has plagued General Motors Co. Last July, for example, when the U. But when Mr.
Marchionne found out about it, he was furious, these people said. In an August meeting with Mr. Fang and his sales team, the CEO excoriated them, saying doubling discounts amounted to "giving away margin" at a time when Chrysler was scrambling for profits, one person familiar with the details of the meeting said.
Marchionne has tried to shake up Chrysler's plodding corporate culture Marchionne, a notorious workaholic, carries five BlackBerrys and works seven days a week. He To select his new management team, Mr. When the process was over, Mr. Marchionne had 23 people reporting to him. Some were junior executives who had been moved up a level or two in the organization Hills, Michigan, among Chry sler's engineers, instead of an office in its adjoining executive tower.
His management team spends about one full week a month in Michigan and flies back for weekend meetings when he isn't in town. For Discussion I. Using Figure 1. Which of the three types of managerial roles did Marchionne display? To what extent did Marchionne display an began meeting weekly in a nearby conference room entrepreneurial orientation while trying to turn equipped with video gear so that Fiat executives in around Chrysler?
Italy could take part. In these meetings, Mr. Details of the discussions weren't to leave the room. Security officers even called senior executives over 5. Discuss your rationale. Bl, B2. Take an entrepreneurial self-assessment at www. To consider whether or not you would like to start.
T he quiz enables you to compare your motivation, aptitudes, and attitudes to a group of entrepreneurs. Questions for Discussion 1. To what extent are your motives, aptitudes, and Introduction Earlier in the chapter we noted that small businesses are creating the majority of new jobs in the United States. We also discussed a variety of personal characteristics that differentiate managers from entrepreneurs.
T he overall goal of this exercise is for you to take a self-assessment that allows you to attitudes similar to entrepreneurs? Based on your results, where do you have the biggest gaps with entrepreneurs in terms of the individual motives, aptitudes, and attitudes? Do these results encourage or discourage you to those found in a sample of entrepreneurs from a from thinking about starting your own business?
She trusts and likes you, and you trust and like her. Based on this discussion, your report clearly identifies several strengths and weaknesses that need to be addressed.
At the meeting you will be presenting the results and your interpretations to a group of 15 managers. You show up for the presentation armed with slides, handouts, and specific recommendations.
The two of you go to another office, and she closes the door. He does not like the vice president and wants to replace her with one of his friends.
Knowing this, the vice president asks you to find some way to postpone your presentation. You have I0 minutes to decide what to do. Solving the Dilemma What would you do? Deliver the presentation as planned.
Give the presentation but skip over the negative results. Go back to the meeting room and announce that Your slides are loaded on the computer, and most your spouse has had an accident at home and you of the participants have arrived.
You tell the group that you ing coffee and telling you how excited they are just received this message and that you will contact about hearing your presentation.
Ten minutes before the vice president to schedule a new meeting. Invent other options. How do I build a viewpoint? They have become copycat managers, trying to find a new evidence to update practices. So if a patient goes to a How will you know whether the next "fix-it-all" doctor, you hope the doctor would do two things: book to hit the business bestseller list is simply a first look at the literature and make the best decision recycling of old ideas?
The answer is: You have to given what's available. Three Truths Certainly it can be an art. Lots of top executives have no actual training in management-Yahoo! Great managers, like great painters or actors, have the right mix of intuition, judgment, and experience. That is, rather true than in what is new. Following the Evidence experimental approach, as in trying out a new idea The process of scientific reasoning underlies what is with an open mind to see what happens? How could four steps: For Discussion Do you think managers are often driven by fads, by what they've read in the latest Have you ever heard of a manager taking an known as evidence-based management.
It then describes the three principal contemporary viewpoints-systems, contingency, and quality-management. Finally, we consider the concept of learning organi::ations. Studying management theory provides understanding of the present, a guide to action, a source of new ideas, clues to the meaning of your managers' decisions, and clues to the meaning of outside events.
Who is Peter Drucker? Drucker was the first person to give us a handbook for that. Many ideas that you will encounter in this book-decentralization, management by objectives, knowledge workers-are directly traceable to Drucker's pen. The historical perspective includes three viewpoints classical - , behavioral, and quantitative. Five Practical Reasons for Studying This Chapter "Theory," say business professors Clayton Christensen and Michael Raynor, "often gets a bum rap among managers because it's associated with the word 'theoretical,' which connotes 'impractical.
Indeed, there are five good reasons for studying theoretical perspectives: 1. Understanding of the present. Guide to action. Good theories help us make predictions and enable you to develop a set of principles that will guide your actions. Source of new ideas. It can also provide new ideas that may be useful to 4. Clues to meaning of your managers' decisions.
It can help you understand you when you come up against new situations. Clues to meaning of outside events. Finally, it may allow you to understand events outside the organization that could affect it or you. If Management 1. What if, as management thinker Gary Hamel unusual system of 48 management committees, or suggests, Management 2.
That's what John Chambers thinks. Some billion maker of telecommunications gear. If the name of the game is to manage work more efficiently, what can the classical viewpoint teach me? The classical viewpoint, which emphasized ways to manage work more efficiently, had two approaches: a scientific management and b adrrunistrative management.
Administrative management, pioneered by Henri Fayol and Max Weber, was concerned with managing the total organization. Bet you've never heard of a "therblig," although it may describe some physical motions you perform from time to time-perhaps when you have to wash dishes.
A made-up word you won't find in most dictionaries, therblig was coined by Frank Gilbreth and is, in fact, "Gilbreth" spelled backward, with the "t" and the "h" reversed. It refers to I of 17 basic motions. By identifying the therbligs in a job, as in the tasks of a bricklayer which he had once been , Frank and his wife, Lillian, were able to eliminate motions while simultaneously reducing fatigue. The Gilbreths were a husband-and-wife team of industrial engineers who were pioneers in one of the classical approaches to management, part of the historical perspective.
As we mentioned, there are three historical management viewpoints or approaches. See Figure 2. In general, classical management assumes that people are rational.
Let's compare the two approaches. Two of its chief proponents were Frederick W. Taylor and the team of Frank and LiUjan Gilbreth. This could be called "underachieving," or "loafing," or what Taylor called it-soldiering, deliberately working at less than full capacity. Taylor Elton Mayo Frank and Lillian Gilbreth Administrative management Human relations movement Operations management Concerned with managing the Proposed better human Focuses on managing the total organization Proponents: Henri Fayol relations could increase worker production and delivery of an productivity organization's products or services more effectively Proponents: Abraham Maslow Max Weber Douglas McGregor Behavioral science approach Relies on scientific research for developing theory to provide practical management tools figure 2.
Called the father of scientific management, Taylor published The Principles of Scientific Management in Evaluate a task by scientifically studying each part of the task not use old rule-of-thumb methods. Carefully select workers with the right abilities for the task.
Give workers the training and incentives to do the task with the proper work methods. Use scientific principles to plan the work methods and ease the way for workers to do their jobs. Taylor based his system on motion studies, in which he broke down each worker's job-moving pig iron at a steel company, say-into basic physical motions and then trained workers to use the methods of their best-performing co-workers.
In addition, he suggested employers institute a differential rate system, in which more efficient workers earned higher wages. These industrial engineers pioneered time and motion studies. If you're an athlete, you can appreciate how small changes can make you efficient. Why Taylor Is Important: Although "Taylorism" met considerable resistance from employees fearing that working harder would lead to lost jobs except for the highly productive few, Taylor believed that by raising production both labor and management could increase profits to the point where they no longer would have to quarrel over them.
If used correctly, the principles of scientific management can enhance productivity, and such innovations as motion studies and differential pay are still used today. Their experiences in raising 12 children-to whom they applied some of their ideas about improving efficiency such as printing the Morse Code on the back of the bathroom door so that family members could learn it while doing other things -later were popularized in a book, two movies, and a TV sitcom, Cheaper by the Dozen.
The Gilbreths expanded on Taylor's motion studies-for instance, by using movie cameras to film workers at work in order to isolate the parts of a job. Lillian Gilbreth, who received a PhD in psychology, was the first woman to be a major contributor to management science. Administrative management is concerned with managing the total organization.
Among the pioneering theorists were Henri Fayol and Max Weber. A French engineer and industrialist, he became known to American business when his most important work, General and Industrial Management, was translated into English in Why Fayol Is Important: Fayol was the first to identify the major functions of management p.
After all, in Weber's Germany in the late 19th century, many people were in positions of authority particularly in the government not because of their abilities but because of their social status.
The result, Weber wrote, was that they didn't perform effectively. A well-defined hierarchy of authority. Formal rules and procedures. A clear division of labor, with parts of a complex job being handled by specialists. Impersonality, without reference or connection to a particular person.
Careers based on merit. Why Weber Is Important: Weber's work was not translated into English until , but it came to have an important influence on the structure of large corporations, such as the Coca-Cola Company.
T he Problem with the Classical Viewpoint: Too Mechanistic A flaw in the classical viewpoint is that it is mechanistic: It tends to view humans as cogs within a machine, not taking into account the importance of human needs.
Behavioral theory addressed this problem, as we explain next. Indeed, these concepts are still in use today, the results visible to you every time you visit McDonald's or Pizza Hut. The classical viewpoint also led to such innovations as management by objectives and goal setting, as we explain elsewhere.
Carmakers have broken down automobile manufacturing into its constituent tasks. This reflects the contributions of the school of scientific management. Is there anything wrong with this approach? How could it be improved? The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. Mary Parker Follett.
She proposed that managers and employees should work together cooperatively. Munsterberg suggested that psychologists could contribute to industry in three ways. They could: 1. Study jobs and determine which people are best suited to specific jobs. Identify the psychological conditions under which employees do their best work. Why Munsterberg Is Important: His ideas led to the field of industrial psychology, the study of human behavior in workplaces, which is still taught in colleges today.
The following ideas were among her most important: l. Organizations should be operated as "communities," with managers and subordinates working together in harmony. Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties-a process she called integration.
This was the conclusion drawn by a Harvard research group in the late I s. This was the type of study that Taylor or the Gilbreths might have done. In later experiments, other variables were altered, such as wage levels, rest periods, and length of workday. Worker performance varied but tended to increase over time, Hawthorne effect. Western Electric's Hawthorne plant, where Elton Mayo and his team conducted their studies in the s.
Do you think you'd perform better in a robotlike job if you thought your supervisor cared about you and paid more attention to you? Critics also point out that it's doubtful that workers improved their productivity merely on the basis of receiving more attention rather than because of a particular instructional method or social innovation.
Nevertheless, they succeeded in drawing attention to the importance of "social man" social beings and how managers using good human relations could improve worker productivity. This in turn Jed to the so-called human relations movement in the 19 50s and s. Probably all of these, Abraham Maslow would say, although some needs must be satisfied before others. In this view, workers are considered to be irresponsible, to be resistant to change, to lack ambition, to hate work, and to want to be led rather than to lead.
In this view, workers are considered to be capable of accepting responsibility, self-direction, and self-control and of being imaginative and creative. This is the idea that if a manager expects a subordinate to act in a certain way, the worker may, in fact, very well act that way, thereby confirming the manager's expectations: The prophecy that the manager made is fulfilled.
Underlying both Maslow's and McGregor's theories is the notion that more job satisfaction leads to greater worker performance-an idea that is somewhat controversial, as we'll discuss in Chapter More recently, the human relations view has been superseded by the behavioral science approach to management.
Behavioral science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. The disciplines of behavioral science include psychology, sociology, anthropology, and economics.
A widely held assumption among American managers is that "competition brings out the best in people. Competition makes people hostile. Cooperation, by contrast, "takes advantage The open layout is particularly favored by younger workers. Why do of all the skills represented in a group as well as you think that is? Competition doesn't necessarily promote superior to competition in promoting achievement and excellence.
Which would be most passing a wide variety of subjects and settings and comfortable for you personally? Why does the last one One team of researchers reviewed came up with three conclusions: I Cooperation is the open office best promote superior performance? During the air war known as the Battle of Britain in World War II, a relative few of England's Royal Air Force fighter pilots and planes were able to successfully resist the overwhelming might of the German military machine. How did they do it?
Military planners drew on mathematics and statistics to determine how to most effectively allocate use of their limited aircraft. For example, OR techniques were used to establish the optimum pattern that search planes should fly to try to locate enemy ships. After the war, businesses also began using these techniques. One group of Fed Ex.
Two branches of quantitative management are management science and operations management. Management Science: Using Mathematics to Solve Management Problems How would you go about deciding how to assign utility repair crews during a blackout? Or how many package sorters you needed and at which times for an overnight delivery service such as FedEx or UPS? Management science focuses on using mathematics to aid in problem solving and decision making.
Sometimes management science is called operations research. In July , New York City required that restaurant examined, it was found that orders had a mean of chains post lists of calorie counts for menu items, as a calories after the labeling law took place, compared with way of fighting obesity and diabetes.
How well does only before. Do About half the customers noticed the posted calorie low-income people not care about calories? But when receipts were change that might occur gradually? Operations Management: Being More Effective Operations management focuses on managing the production and delivery of an organization's products or services more effectively. It is concerned with work scheduling , production planning, facilities location and design, and optimum inventory levels.
Over the years, Toyota Motor Corp. To accomplish this, managers performed Suddenly, beginning in , disturbing reports value stream mapping, identifying the many steps in a surfaced about Toyota cars running away because of production process and eliminating unnecessary ones. These efficient techniques, which all come and completely stopped new production of eight vehicle under the term "lean management," enabled Toyota to lines in North America.
Can a worldwide car company get back panies around the globe instead of from its small group to its roots-reclaim bragging rights to "quality"? The contingency viewpoint emphasizes that a manager's approach should vary according to the individual and environmental situation. The quality-management viewpoint has two traditional approaches: quality control, the strategy for minimizing errors by managing each stage of production, and quality assurance, which focuses on the performance of workers, urging employees total quality management TQM , a comprehensive approach dedicated to continuous quality to strive for zero defects.
A third quality approach is the movement of improvement, training, and customer satisfaction. Being of a presumably practical turn of mind, could you run an organization or a department according to the theories you've just learned? Probably not. The reason: People are complicated. To be an exceptional manager, you need to learn to deal with individual differences in a variety of settings.
These consist of: quantitative viewpoints , let us now add the sists of three viewpoints. Systems Contingency Quality-management In this section, we discuss the systems viewpoint. Edwards Deming Joseph M. Juran figure 2. Even though a system may not work very well-as in the inefficient way the Russian government collects taxes, for example-it is nevertheless still a system. By adopting this point of view, you can look at your organization both as I a collection of subsystems-parts making up the whole system-and 2 a part of the larger environment.
The Four Parts of a System The vocabulary of the systems perspective is useful because it gives you a way of understanding many different kinds of organizations. The four parts of a system are defined as follows: 1. Inputs are the people, money, information, equipment, and materials required to produce an organization's goods or services. Whatever goes into a system is an input.
Outputs are the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization. Whatever comes out of the system is an output. Transformation processes are the organization's capabilities in management and technology that are applied to converting inputs into outputs.
The main activity of the organization is to transform inputs into outputs. Are the customers buying or not buying the product? That information is feedback. The four parts of a system are illustrated below. Top: The Apple Newton Messagepad, a personal digital assistant released in , probably failed because it was developed as a closed system, with inadequate feedback and killed in from consumers before launch.
It was panned for being too expensive, too large, and having faulty handwriting recognition. Could the iPad have benefited from an open system of consumer feedback under such hush-hush conditions? How might this be done? An open system continually interacts with its environment.
A closed system has little interaction with its environment; that is, it receives very little feedback from the outside. The classical management viewpoint often considered an organization a closed system. So does the management science perspective, which simplifies organizations for purposes of analysis.
However, any organization that ignores feedback from the environment opens itself up to possibly spectacular failures. Why the Systems Viewpoint-Particularly the Concept of Open Systems-Is Important: The history of management is full of accounts of organizations whose services or products failed such as the Ford Edsel because they weren't open enough systems and didn't have sufficient feedback. The concept of open systems, which stresses feedback from multiple environmental factors, both inside and outside the organization, attempts to ensure a continuous learning process in order to correct old mistakes and avoid new ones.
For a over the country. I brand in this age group. In the end, is there one best way to manage in all situations? The contingency viewpoint began to develop when managers discovered that under some circumstances better results could be achieved by breaking the one-best-way rule. At Ohio drug maker Sanofi-Aventis, one saying they are satisfied with their jobs, according to manager "e-mails employees to recognize even small a recent survey.
At Iowa-based aerospace electronics firm Rockwell Collins, manager Jenny Miller persuaded YOUR CALL 20 overworked engineers to come in Thanksgiving What other inexpensive ways of improving productivity weekend to meet a deadline to deliver software to a can you think of?
What theories do the approaches customer. Her lures? A manager subscribing to the Gilbreth approach might try to get workers to be more productive by simplifying the steps. But the manager following the contingency viewpoint would simply ask, "What method is the best to use under these particular circumstances?
Giving employees more money is not the only way to motivate them to be more productive. Sometimes small rewards, such as a free lunch, are equally effective.
Would it make a difference to you if your boss showed appreciation of your efforts even in small ways-as by sending you a thank-you note? After all, if managers now innovate by creating new products or new business strategies, why can't they be equally innovative in how they manage their companies? How do you get the ball rolling in management innovation, particularly in a traditional, conventional company? Hamel believes that the answer can be found by identifying core beliefs that people have about the organization, especially those that detract from the pursuit of management innovation.
He suggests that these beliefs can be rooted out by repeatedly asking the right questions-namely, the following: Is this a belief worth challenging? Is it debilitating? Does it get in I. Is this belief universally valid? Are there counterexamples? If so, what do 2. How does this belief serve the interests of its adherents? Are there people 3. Is this belief true simply because we have made it true-and, if so, can we imagine alternatives?
Then, says Langer, described in this chapter. Instead we need to adopt the frame of mind that Harvard psychology professor mindfulness, the cashier "held the form next to the newly signed card to see if the signatures matched.
We misplace being open to new information-including that not Ellen Langer has called signals penetrate as well. By contrast, mindfulness is engagement. We write checks in January with the previous specifically assigned to you. Mindfulness requires you year 's date. Mindlessness is characterized by the three to engage more fully in whatever it is you're doing. Mindlessness 3: Acting from a Single Perspective Mindlessness I: Entrapment in Old Categories Most people, says Langer, typically assume that other An avid tennis player, Langer says that at a tennis peoples' motives and intentions are the same as exactly theirs.
For example, she says, "If I am out running and how to hold her racquet and toss the ball when making see someone walking briskly, I assume she is trying to camp she, like all other students, was taught a serve. In a conditional, or mindful, way of teaching, an taneously many things depending on the perspective instructor doesn't say, "This is THE answer," but rather, from which it is viewed," says Langer.
That is, you should act as though the information is true only for certain uses or under certain circumstances. Your Call Developing mindfulness means consciously adapting: Being open to novelty. Being alert to distinctions.
Being sensitive to different contexts. Being aware of multiple Mindlessness 2: Automatic Behavior perspectives. Being oriented in the present. Picking Langer tells of the time she used a new credit card in a just one of these characteristics, what would you do to department store.
Noticing that Langer hadn't signed try to become better at it? At one time in the 20th century, word got around among buyers of American cars that one shouldn't buy a "Monday car" or a "Friday car"cars built on the days when absenteeism and hangovers were highest among dissatisfied autoworkers. The energy crisis of the s showed different possibilities, as Americans began to buy more fuel-efficient cars made in Japan.
Consumers found they could not only drive farther on a gallon of gas but that the cars were better made and needed repair less often. Quality is seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. Quality Control Quality control is defined as the strategy for minimizing errors by managing each stage of production. Quality Assurance Developed in the s, quality assurance focuses on the performance of workers, urging employees to strive for "zero defects.
That began to change with the arrival in Japan of two Americans, W. Edwards Deming and Joseph M. Edwards Deming Desperate to rebuild its war-devastated economy, Japan eagerly received mathematician W. However, he also emphasized the human side, saying that managers should stress teamwork, try to be helpful rather than simply give orders, and make employees feel comfortable about asking questions. The "system" would include not only machinery and equipment but also management and rules.
Most of the time, Deming thought, managers erroneously blamed individuals when the failure was really in the system. TQM pioneer. Joseph M. Juran, who defined quality as "fitness for use. Thus, the best way to focus a company's efforts, Juran suggested, was to concentrate on the real needs of customers. The four components of TQM are as follows: l. Make continuous improvement a priority.
They make small, incremental improvements an everyday priority in all areas of the organization. By improving everything a little bit of the time all the time, the company can achieve long-term quality, efficiency, and customer satisfaction. Get every employee involved. This requires that workers must be trained and empowered to find and solve problems. The goal is to build teamwork, trust, and mutual respect. Listen to and learn from customers and employees. In addition, employees within the companies listen and learn from other employees, those outside their own work areas.
Use accurate standards to identify and eliminate problems. Using these standards, they apply statistical measurements to their own processes to identify problems. The adoption of TQM helped American companies deal with global competition. How do I build a learning organization?
There are three ways you as a manager can help build a learning organization. Organizations are the same way: Like people, they must continually learn new things or face obsolescence. A key challenge for managers, therefore, is to establish a culture that will enhance their employees' ability to learn-to build so-called learning organizations. Learning organizations, says Massachusetts Institute of Technology professor Peter Senge, who coined the term, are places "where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together.
They acquire such knowledge by constantly scanning their external environments, by not being afraid to hire new talent and expertise when needed, and by devoting significant resources to training and developing their employees. Transferring knowledge. When a new CEO, Dick Brown, took the reins in , he changed the culture from "fix the problem yourself" to sharing information internally. Thus, managers encourage employees to use the new knowledge obtained to change their behavior to help further the organization's goals.
Among some of the consequences of this fast-paced world: I. The rise of virtual organizations. The rise of boundaryless organizations. Computer connections and virtual organization have given rise to the concept of boundaryless organization.
The opposite of a bureaucracy, with its numerous barriers and divisions, a houndaryless organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers, and customers. This means that the form of the business is ever-changing, and business relationships are informal. The imperative for speed and innovation. That goes for launching whole new ventures, too.
The increasing importance of knowledge workers. Knowledge workers add value to the organization by using their brains rather than the sweat of their brows, and as such they are the most common type of worker in 21st-century organizations.
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