Chp01 Final

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2006 by South-Western, a division of Thomson Learning. All rights reserved 1-1

Chapter 1

The Changing Paradigm of

Management & Foundationsof Learning Organizations

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2006 by South-Western, a division of Thomson Learning. All rights reserved1-2

Learning Objectives1. Explain the differences between efficiency and effectiveness

and their importance for organizational performance.

2. Define ten roles that managers perform in organizations.

3. Discuss the management competencies needed to deal withtodays turbulent environment, including issues such asdiversity, globalization, and rapid changes and the skillsneeded for crisis management.

4. Describe the learning organization and the changes in

structure, empowerment, and information sharing managersmake to support it.

5. Understand how historical forces influence the practice ofmanagement

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2006 by South-Western, a division of Thomson Learning. All rights reserved

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Learning Objectives(contd.)

6. Identify and explain major developments in the history of

management thought.

7. Describe the major components of the classical and

humanistic management perspectives.

8. Discuss the scientific management perspective and its

current uses in organizations.

9. What role does contingency play in organizations?

10. Explain the major components of total quality management.

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1-4

Definition of Management

The attainment of organizational goals in

an effective and efficient manner

through: Planning,

Organizing,

Leading, and

Controlling of organizational resources.

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Ex 1.1 The Process of Management

Planning

Leading

Resources

Controlling Organizing

Performance

Human

Financial

Raw Materials

Technological

Information

Attain goals

Products

Services

Efficiency

Effectiveness

Use influence to

motivate employees

Select goals and

ways to attain them

Assign responsibility for

task accomplishment

Monitor activities and

make corrections

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Organization

An organization is a social entity that

is goal directed and deliberatelystructured.

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Effectiveness and Efficiency

Organizational effectiveness is the degree to which

the organization achieves a stated goal, or succeeds in

accomplishing what it tries to do.

Organizational efficiency refers to the amount of

resources used to achieve an organizations goal.

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Ex. 1.2Relationship of Conceptual, Human, and

Technical Skills to Management Level

Technical SkillsHuman SkillsConceptual Skills

Management Level

Top Managers

Middle Managers

First-Line Managers

Non-managers (Personnel)

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Ex. 1.3 Ten Manager Roles

Informational Interpersonal Decisional

Monitor

Disseminator

Spokesperson

Figurehead

Leader

Liaison

Entrepreneur

Disturbance handler

Resource allocator

Negotiator

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Centered around information and ideas

Work is free-flowing and flexible

Organized around networks,work is often virtual

Characteristics of the

New Workplace

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Management Competencies

of Today

Embrace ambiguity

Create organizations that are:

Fast

Flexible

Adaptable

Relationship-oriented

Focus on:

Leadership Staying connected to employees and customers

Team building

Developing a learning organization

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1-12

Stay Calm

Tell the truthPut people before

business

Be visible

Know when to get

back to business

Crisis Management Skills

Crisis Management

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Ex. 1.5 Elements of a Learning Organization

Team-Based

Structure

LearningOrganization

Empowered

Employees

Open

Information

Garvin (1993) defines a learning organization as a firm skilled at creating, acquiring, &

transferring knowledge, and modifying its behaviors to reflect new knowledge & insight

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Ex. 1.6 Three Types of E-Commerce

E-commerce represents

business exchanges ortransactions that occur

electronically. It

replaces or enhances

the exchange of money

and products with the

exchange of data and

information from one

computer to another.Exhibit 1.6

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Management & Organization

Social Forces values, needs, and standards of

behavior.

Political Forces influence of political and

legal institutions on people & organizations.

Economic Forces forces that affect theavailability, production, & distribution of a

societys resources.

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Ex. 1.7 Management Perspectives Over Time(adapted)

1890 1940 1960 1980 2000 2010

Classical PerspectiveHumanistic Perspective

Management Science Perspective

Systems Theory

Contingency Views

Total Quality Management

The Learning Organization

The Technology-Driven Workplace

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Classical Perspective

Emphasized a rational, scientific approach

to the study of management.

Sought to make organizations efficient.

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Classical Perspective

Three Subfields

1. Scientific management

2. Administrative principles

3. Bureaucratic organizations

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Humanistic Perspective

Emphasized understanding human behavior.

Dealt with needs & attitudes in the

workplace.

Truly effective control comes from within

the individual worker rather than

authoritarian control.Hawthorne Studies brought this perspective

to forefront.

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People are lazy

People lack ambition

Dislike responsibility

People are self-centered

People dont like change

People are energetic

People want to make

contributions

People do have ambition

People will seek

responsibility

Ex. 1.9 Theory X & Y (adapted)

Theory X Theory Y

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The Contingency Approach

means that one thing depends on other

things, and for organizations to beeffective, there must be a goodness of

fit between their structure and the

conditions in their external environment.

Chp01 Final

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