BU8601
LECTURE 1
MANAGEMENT AND MANAGERS
Ng Sin Ain
3 Segment
1.
Knowledge Acquisition
•
Management Process: PLOC; Performance - Efficiency vs
Effectiveness
Management Roles & Skills
•
Efficiency & Effectiveness of Organisational Performance
•
2.
Application: Example Zappos
3.
Reflection & Connecting the Dots
Why?
Innovation is the
new imperative
Organisations 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
Jugaad – Frugal Engineering (Innovation)
What?
MANAGEMENT is the
attainment of organisational goals in
effective and efficient
manner through planning,
organising, leading,
and controlling
an
organisational resources.
How?
Managers get
things done
through the
organisation
Create right
systems and
environment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organisations
need good
managers
The management process
Decision-making
The management process
The management process
The management process
The management process
Decision-making
• Planning = selecting goals and the tasks & resources needed
-> a plan for what the organization will do to achieve the
goals
• Organizing = assigning tasks & allocating resources
-> a structure that defines how to carry out the plan
• Controlling = monitoring activities and correcting, if needed
-> a mechanism that defines how to keep the organization on
track toward its goals
• Leading = using influence to motivate employees
-> an organizational climate in which individuals and entire
departments and divisions work towards the goals.
Organisational Performance
Org
Effe anisat
ctiv ion
ene
ss
What are the indicators of a well-managed company?
Org
an
Effi isatio
cien n
cy
v Organizational performance can be measured by:
v How well the organizational goals are met… but there’s actually
two parts to this:
v Organizational effectiveness = meeting the stated org. goals to
the highest standard possible ( “doing the right things”)
v Organizational efficiency = using resources as well as possible in
meeting the goals (“doing things right”)
so that the ratio of….
outputs (goods, services produced) to inputs (resources used) is
as high as possible.
Elements of Quality Management
Employee
Involvement
Focus on the
Customer
Benchmarking
Continuous
Improvement
State-of-the-Art Management Competencies for Today’s World
Management
Principle
From Traditional
Approach
To New
Competencies
Overseeing Work
Controller
Enabler
Accomplishing Tasks
Supervising
individuals
Leading teams
Managing Relationships
Conflict and
competition
Conversation
and collaboration
Leading
Autocratic
Dispersed and empowering
Designing
Maintaining
stability
Mobilising for change
State-of-the-Art Management Competencies for Today’s World
State-of-the-Art Management Competencies for Today’s World
State-of-the-Art Management Competencies for Today’s World
1
SET OBJECTIVES
5
DEVELOP PEOPLE
4
MEASURE
2
ORGANISE
3
MOTIVATE AND
COMMUNICATE
Management Skills
skills
Conceptual
Human
Technical
• Degree of the
may
vary but all managers must
possess the skills
• Application of
management skills change as
managers move up the
hierarchy
Relationship of Technical, Human, and Conceptual Skills to Management
Non-managers
Individual
Contributors
Conceptual Skills
Human Skills
Technical Skills
Conceptual Skills
Middle
Managers
Human Skills
Technical Skills
’s Rules: Eight Good Behaviours for Managers
To know how to build better managers,
executives studied
performance reviews, feedback surveys, and award nominations to
see what qualities made a good manager. Here are the “Eight Good
Behaviours” they found, in order of importance:
1. Be a good coach
2. Empower your team
3. Express interest
4. Be productive & result-oriented
5. Good communicator
6. Help your employees
7. Clear vision and strategy
8. Key technical skills
SOURCE: “Google Quest to Build a Better Boss”, by Adam Bryant, published March 12, 2011, in The New York Times. Courtesy of Google, Inc.
When Skills Fail
When Skills Fail
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
Top Causes of Manager Failure
Top Causes of Manager Failure
81%
1
Ineffective communication skills and practices
2
Poor work relationships/interpersonal skills
3
Person mis-match
4
Failure to clarify direction or performance expectations
5
Failure to adapt and break old habits
57%
6
Breakdown of delegation and empowerment
56%
7
Lack of personal integrity and trustworthiness
8
Inability to develop cooperation and teamwork
9
Inability to lead/motivate others
10
Poor planning practices/reactionary behaviour
0%
78%
69%
64%
52%
50%
47%
45%
50%
SOURCE: Adapted from Clinton O. Longenecker, Mitchel J. Neubert, and Laurence S. Fink, “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations”,
Business Horizons 50 (2007): 145-155, Table 1.
90%
Making the Leap from Individual Performer to Manager
From
Individual
Identity
SOURCE: Based on Exhibit 1.1, “Transformation of Identity”, in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2nd ed.
(Boston, MA: Harvard Business School Press, 2003), p.6.
From
Manager
Identity
Making the Leap from Individual Performer to Manager
From
Individual
Identity
From
Manager
Identity
Specialist; performs specific tasks
Generalist; coordinates diverse tasks
Gets things done through own efforts
Gets things done through others
An individual actor
A network builder
Work relatively independently
Works in highly interdependent manner
SOURCE: Based on Exhibit 1.1, “Transformation of Identity”, in Linda A. Hill, Becoming a Manager: Mastery of a New Identity, 2nd ed.
(Boston, MA: Harvard Business School Press, 2003), p.6.
Manager Activities
Life on speed dial
Adventures in
multitasking
– Activity characterised by
variety, fragmentation,
and brevity
– Less than nine minutes
on most activities
– Managers shift gears
quickly
– Work at
unrelenting pace
– Interrupted by
disturbances
– Always working
(catching up)
Manager Roles
Role: Set expectations for a manager’s behaviour
Planning
Organising
Controlling
Leading
Manager Roles
Manager roles are important to understand but they are
not discrete activities
Management cannot be practiced as independent parts
Managers need time to plan and think
Ten Manager Roles
INFORMATIONAL INTERPERSONAL
DECISIONAL
SOURCE: Adapted from Henry Mintzberg,
The Nature of Managerial Work (New York; Harper & Row, 1973, p92-93;
and Henry Mintzberg, “Managerial Work: Analysis from Observation”,
Management Science 18 (1971), B97-B110.
Managing in Small Business and Non-profit Organisations
Small businesses are growing
– Inadequate management skills
is a threat
– Roles for small business
managers differ
– Entrepreneurs must promote
the business
Managing in Small Business and Non-profit Organisations
Non-profits need management talent
– Apply the four functions of
management to make social
impact
– More focus on keeping costs low
– Need to measure intangibles like
“improving public health”
Management Perspectives Over Time
Open (Collaborative) Innovation
Technology-Driven Workplace
Total Quality Management
Contingency View
System Thinking
Management Science Perspective
Humanistic Perspective
Classical
Perspective
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Classical Perspective
Three subfields:
Scientific
Management
Bureaucratic
Organisations
Administrative
Principles
Scientific Management
Management
decisions would be
based on precise
procedures based
on study
Henry Gantt
developed the
Gantt chart to
measure and plan
work
Frederick Winslow
Taylor proposed
that workers “could
be re-tooled like
machines”
Improve
efficiency and
labour productivity
through scientific
methods
Scientific
Management
The Gilbreths
pioneered time
and motion studies
to promote
efficiency
Characteristics of Weberian Bureaucracy
Division of labour,
with clear
definitions of
authority and
responsibility
Personnel
selected and
promoted based on
technical
qualifications
Administrative
acts and decisions
recorded in
writing
Positions
organised in a
hierarchy of
authority
The Ideal
Bureaucracy
Managers
subject to rules and
procedures that
will ensure reliable,
predictable
behaviour
Management
separate from the
ownership of the
organisation
Administrative Principles
Identified five functions of management:
Planning
Organising
Commanding
Coordinating
Controlling
Humanistic Perspective: Human Relations Movement
From worker participation and considerate leadership to
managing work performance
Combine motivation with job design
Maslow and McGregor extended and challenged current
theories
- Maslow’s Hierarchy
- Theory X and Theory Y
Theory X and Theory Y
Assumptions of Theory X
Inherent dislike of work
and will avoid if possible
Prefers to be directed, wishes
to avoid responsibility, has
relatively little ambition, and
want security above all
People must be coerced, controlled,
directed, or threatened with
punishment to get them to put in effort
toward the achievement of
organisational objectives
Theory X and Theory Y
Assumptions of Theory Y
Physical and mental effort in work
is as natural as pay or rest.
A person will exercise selfdirection and self-control in the
service of objectives to which he
or she is committed.
Human being learns,
under proper conditions,
not only to accept but to
seek responsibility
Capacity to exercise
a relatively high degree of imagination,
ingenuity, and creativity in the solution of
organisational problems is widely, not
narrowly, distributed in the population
Intellectual
potentialities of the
average human being are
only partially utilised
Humanistic Perspective: Behavioural Sciences Approach
Matrix
organisations
Corporate
culture
Other strategies
Based on
behavioural
science:
Self-managed
teams
Management
by wandering
around
Recent Trends: Systems Thinking
The ability to see the distinct elements of
a situation as well as the complexities
System – set of interrelated parts that
function as a whole to achieve a common
purpose
Subsystems – are parts of the system that
are all interconnected
Synergy – the whole is greater than the
sum of its parts
Managers must understand
subsystem interdependence
and synergy
Innovative Management: Thinking for a Changing World
Management ideas trace their roots to
historical perspectives
New ideas continue to emerge to meet
the changing needs and difficult times
The shelf life of trends is getting shorter
and new ideas peak in fewer than three
years
Innovative Management Thinking
Focus on creating benefits from limited resources
(Hindi word: Jugaad, U.S. “Frugal Engineering.”)
Management changing but history matters
Broadens way
of thinking
Discover patterns
that recur over time
Learn from others’
mistakes and successes
BU5601 – Application: Zappos
American online shoe and clothing
retailer
PAGE
53
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.
BU5601 – Application: Zappos
American online shoe and clothing
retailer
PAGE
54
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.
BU5601 – Application: Zappos
American online shoe and clothing
retailer
PAGE
55
Founded in 1999 by Nick Swinmurn, Tony Hsieh &
Alfred Lin
Revenue growth – 1999 à $1.6 mil to 2008 à $1 bil
Indicators of a well-managed Zappos
• Emphasis on Culture fit à Cultural fit interview carries 50% weightage on talent selection.
• New employees are offered $2000 to quit after the first week of training if they decide the job is
not for them.
• Budget for team building and culture promotion.
• Culture fit promotes culture and happy employees, which ultimately leads to happy customers.
What has it got to do with management?
BU5601 – Application: Zappos
Culture drives Strategy
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
• Build a culture via bringing the right people
together that embrace the same cultural
values.
• Their ‘marketing dollars’ are right people,
training and customer service.
•
Long-term financial growth strategy is Culture fit
promotes culture and happy employees, which
ultimately leads to happy customers.
BU5601 – Application: Zappos
Strategy shapes Structure
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
•
Build a culture via bringing the right people together
that embrace the same cultural values.
•
Their ‘marketing dollars’ are right people, training and
customer service.
•
Long-term financial growth strategy is Culture fit promotes
culture and happy employees, which ultimately leads to happy
customers.
BU5601 – Application: Zappos
Strategy shapes Structure
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
•
Build a culture via bringing the right people together
that embrace the same cultural values.
•
Their ‘marketing dollars’ are right people, training and
customer service.
•
Long-term financial growth strategy is Culture fit promotes
culture and happy employees, which ultimately leads to happy
customers.
BU5601 – Application: Zappos
Strategy shapes Structure
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
•
Build a culture via bringing the right people together
that embrace the same cultural values.
•
Their ‘marketing dollars’ are right people, training and
customer service.
•
Long-term financial growth strategy is Culture fit promotes
culture and happy employees, which ultimately leads to happy
customers.
BU5601 – Application: Zappos
Strategy shapes Structure
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
•
Build a culture via bringing the right people together
that embrace the same cultural values.
•
Their ‘marketing dollars’ are right people, training and
customer service.
•
Long-term financial growth strategy is Culture fit promotes
culture and happy employees, which ultimately leads to happy
customers.
BU5601 – Application: Zappos
Strategy shapes Structure
Zappos’ Strategy à Service Differentiation
•
Approach: Build it from the Inside Out
•
Build a culture via bringing the right people together
that embrace the same cultural values.
•
Their ‘marketing dollars’ are right people, training and
customer service.
•
Long-term financial growth strategy is Culture fit promotes
culture and happy employees, which ultimately leads to happy
customers.
Reflection (Internalisation)
Reflection: Internalisation
What kind of manager you want to be?
What kind of environment you want to create for your team?
What are the traits/competencies you want to develop to be a great manager?
What are the challenges for a manager for the future?
BU8601 Assessment - is based on:
a)
Understanding fundamental concepts/principles
b)
Applying the principles to case scenarios & real settings
n
Individual Quizzes
20%
n
Reflection Journals
20%
n
Tutorial Participation
15%
n
Peer Evaluation
5%
n
Group Project (written)
(4-5 members/team)
40%
For more info., please read the Course Outline & Group Project
instructions
Why do BU5601?
v To learn some fundamentals of management…
v Why?
v Because…
vYou will probably report to a manager
at some stage in your career
vYou might become a manager at some stage!
Why do BU5601?
v Start with the end in mind:
vWhat do I want to get from this course?
vA certain grade?
vCertain knowledge?
vCertain skills?
v Write down your goals (we’ll spend some time on them next
week)
BU5601
PAGE
See you next week!
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