Chapter 1

Innovative Management for a

Changing World

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Why managers fail?

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Top Causes of Manager Failure
(Logenecker, Neubert & Fink, 2007)

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Logenecker, C.O., Leubert, M.I., and L.S. Fink
(2007). “Causes and Consequencies of Managerial
Failure in Rapidly Changing Organizations,”
Business Horizons, 50, pp. 145-155, Table 1.

 The number one reason for manager failure is

ineffective communication skills and practices.
  
 Other management missteps include treating people
as instruments, and the inability to build a
management team characterized by mutual trust and
respect.
  

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
 Discussion Question #1: How do you feel about
having a manager’s responsibility in today’s world
characterized by uncertainty‫عدم; ا;;ليقين‬, ambiguity
‫غموض‬, and sudden changes or threats from the
environment?

 Describe some skills and qualities that are

important to managers under these conditions.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
Why Innovative Management Matters

• Innovations in products, services, management

systems, productions processes, corporate
values, and other aspects of the organization are
what keep companies growing, changing, and
thriving#‫دهره‬#‫مز‬. Without innovation, no company
can survive over the long run. Innovation has
become the new imperative‫ة ملحة‬#‫حقيق‬, despite the
need for companies to control costs in today’s
economy.

6
• Organizations cannot survive long-term without
innovation.
• Companies like Facebook are always investing in
new ideas.
• Innovation should be part of products, processes,
people, and values.
• Case in point: IBM – changing from HW/SW to
service

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

 The Definition of Management

Management is the attainment‫حقيق‬###‫ت‬of

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.

8
 Why study management?
1. Resources are scarce#‫حيحه‬##‫ ش‬in any society, so
the more efficient and effective use that
organizations can make of those resources, the
greater the well-being ‫رفاهية‬and prosperity
‫رخاء‬/‫ازدهار‬of people in that society
2. Helps people deal with their bosses and
coworkers
3. Opens a path to a well-paying job and a
satisfying career ‫مهنة مرضية‬

1-9
 Planning

• Identifying goals for future organizational

performance;
• Deciding on the tasks and use of resources
needed to be in the future  Action Plan
• Setting a goal  Measurable goal
• Formulating strategies to achieve the goal
• DQ: What is the strategy?
– Plan/way to create an opportunity to gain the
competitive advantage, in order to achieve the goal

10
 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
• Hiring right people to right task, & terminating
employment‫لتوظيف‬##‫اء ا‬#‫نه‬#‫وإ‬
11
 Leading - Leadership

• Use of influence to motivate employees to

achieve organizational goals
• Create a shared culture and values
• Communicate goals to people throughout the
organization ‫لمنظمة‬##‫نحاء ا‬#‫ أ‬#‫يجميع‬###‫ألشخاصف‬##‫ف‬#
‫ألهدا ل‬##‫وصيلا‬###‫ت‬
• Infuse employees with the desire‫لرغبة‬##‫ ا‬to
perform at a high level  Inspiring employees
‫لموظفين‬##‫ ا‬#‫ام‬#‫له‬##‫إ‬

12
 Controlling

• Monitor employees’ activities

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

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13

 Topic for discussion (5 mints)
• Choose an organization such as a school or a
bank or any other organization, visit it, then
list the different organizational resources
What Do Managers Do? (Murray, 2010)
The Process of Management

16
 Organizational Performance

• An organization = a social entity that is goal directed

and deliberately structured ‫منظم ب شكلمتعمد‬
• 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
17
Figure 1.1 1-18
 Building management skills (5
mints)
• Think of an organization that has provided you
with work experience and the manager to
whom you reported (or talk to some one who
has had extensive work experience), then
answer the following question:
• Think of the organization and its resources. Do
its managers utilize organizational resources
effectively? Which resources contribute most
to the organization's performance?
 Management Skills

• Three categories of skills: (1) conceptual, (2)

human, (3) technical
• Conceptual skill is the cognitive ability to see the
organization as a whole and the relationships among its
parts. It involves knowing where one’s team fits into the
organization and how the organization fits into its
environment, and means the ability to think strategically
—to take the broad, long-term view.

• Conceptual skill is especially important for top

managers.

20
• Human skill is the manager’s ability to work with
and through other people and to work effectively
as a group member. It is demonstrated‫هن‬#‫ مبر‬in
the way a manager motivates, facilitates,
coordinates, leads, communicates, and resolves
conflicts. As globalization, workforce diversity,
uncertainty, and societal turbulence ‫غب‬#
/ #‫ش‬
‫مرد‬###‫ت‬increase, human skills become even more
crucial.
• Human skill is important for managers at all
levels, and particularly those who work with
employees directly on a daily basis.
•  
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 21
• Technical skill is the understanding of and
proficiency in the performance of specific tasks.
This includes mastery‫مكن‬###‫ ت‬of the methods,
techniques, and equipment involved in specific
functions such as engineering, manufacturing, or
finance. Technical skill also includes specialized
knowledge, analytical ability, and competent use
‫كف‬
‫ل ء‬##‫ ا‬#‫م‬#‫الستخدا‬##‫ ا‬of tools and techniques to solve
problems in that specific discipline.
•  Technical skills are most important at lower
organizational levels and become less important
than human and conceptual skills as managers
are promoted.
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 22
• The degree of the skills may vary, but all
managers must possess‫متلك‬##‫ ي‬the skills
• The application of management skills change as
managers move up the hierarchy

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 23

 Management Skills

Management Level
Top Managers
Conceptual Skills Human Skills Technical Skills
Middle Managers
First-Line Managers
Non-managers (Personnel)
1.3 Relationship of Skills to Management: Results
of one study

25
 When Skills Fail
• When Skills Fail  
• During turbulent times‫لمضطربة‬##‫ألوقاتا‬##‫ا‬, managers must use all their skills
and competencies to benefit the organization and its stakeholders.
•  Many companies falter‫تعثر‬##‫ ي‬because managers fail to listen to
customers, misinterpret‫ت‬#‫إلشارا‬##‫فسير ا‬###‫سيئونت‬##‫ ي‬signals from the market, or
can’t build a cohesive‫ متماسك‬team.
•  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 (#1 reason), and interpersonal skills ‫مهاراتا لتع امل مع‬
‫ا آلخرين‬
26
Management Types: Vertical Differences

• Top managers are responsible for the entire

organization – CEO, President; executives
• Middle managers are responsible for business
units; directors
• Project managers: Responsible for
misinterpreting signals‫لسوق‬##‫تمنا‬#‫إلشارا‬##‫فسير ا‬###‫ساءة ت‬#‫إ‬
• First-line managers (supervisors) are
responsible for production of goods and services

27
Management Types: Horizontal Differences

• Functional Managers are responsible for

departments that perform specific tasks

• General Managers are responsible for several

departments

28
Management Levels (Bonoma & Lawler, 1988)

29
 Making The Leap ‫ت حقيقا لقفزة‬: Becoming A New
Manager

• Organizations often promote star performers to

management
• Becoming a manager is a transformation
– Move from being a active person a doer‫اعل‬###‫ ف‬to a
coordinator
• Many new managers expect more freedom to
make changes  Not happens all the time.
• Successful managers build teams and networks

30
From Individual Performer to Manager (Hill, 2002)
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 in the middle
  Make more money
  Creating opportunity to make change/difference
  Respect, honor
32
 Manager Activities

Adventures in multitasking ‫مغ امراتف يت ع دد ا لمهام‬

– Activity characterized by variety, fragmentation, and
brevity ‫إليجاز‬##‫لتفتتوا‬##‫لتنوع وا‬##‫ا‬###‫تميز ب‬##‫شاط ي‬##‫ن‬
– Less than nine minutes on most activities

Life on speed dial ‫ا لحياة ف يا التصا لا لسريع‬

– Work at insistent pace ‫ابتة‬###‫وتيرة ث‬###‫لعملب‬##‫ا‬
– Interrupted by disturbances‫بات‬#‫الضطرا‬##‫سببا‬###‫وقفب‬###‫ت‬
– Always working (catching up)

33
 Manager Roles

• A role is a set of expectations for a manager’s

behavior.
• Every role undertaken by a manager
accomplishes the 4 functions of:
– Planning
– Organizing
– Leading
– Controlling

34
Ten Manager Roles

Informational Decisional
 Monitor ‫قبة‬#‫لمرا‬##‫ا‬  Entrepreneur
 Disseminator ‫لموزع‬##‫ا‬
 Disturbance
 Spokesperson Handler‫لج‬##‫ا‬#‫مع‬
Interpersonal ‫ب‬#‫ضطرا‬#‫ا‬
 Figurehead  Resource
Allocator
 Leader
 Liaison  Negotiator

35
 Informational roles: Describe the activities used to
maintain and develop information network
• Monitor‫قبة‬#‫لمرا‬##‫ا‬: Seek and receive information,
scan periodicals, maintain personal contacts
• Disseminator ‫لموزع‬##‫ا‬: Forward information to
other organization members, send memos and
reports, make phone calls
• Spokesperson‫سمي‬#‫لر‬##‫لمتحدثا‬##‫ا‬: Transmit
information to outsiders through speeches,
reports, and memos.
 Interpersonal roles: Pertain ‫تعلقب‬###‫ت‬to
relationships with others and are related to the
human skills
• Figurehead role‫لشكل‬##‫دور ا‬: perform ceremonial
and symbolic duties such as greeting visitors,
signing legal documents. ‫حية‬###‫لية ورمزية مثلت‬##‫حتفا‬#‫جباتا‬#‫أداء وا‬
‫لقانونية‬##‫تا‬#‫لمستندا‬##‫ ا‬#‫لزوار وتوقيع‬##‫ا‬.

• Leader: Direct and motivate subordinate,

train, and communicate with subordinate.
• Liaison‫ل‬##‫التصا‬##‫ا‬: Maintain information links both
inside and outside organization, use e-mail,
meeting. ‫لبريد‬##‫ ا‬#‫م‬#‫ستخدا‬#‫ وا‬، ‫لمنظمة‬##‫خلوخارج ا‬#‫لمعلوماتدا‬##‫بط ا‬#‫لحفاظ علىروا‬##‫ا‬
‫الجتماع‬##‫ وا‬،‫لكتروني‬#‫إل‬##‫ا‬.
 Decisional roles ‫أدوار اتخاذ ا لقرار‬: Pertain to‫تعلقب‬###‫ ت‬those events
about which the manager must make a choice and take
action.
• Entrepreneur: Initiate improvement projects,
identify new ideas.
• Disturbance handler ‫إلزعاج‬##‫لج ا‬##‫ا‬#‫مع‬: Take corrective
‫ت‬#‫جرا‬#‫صحيحية ا‬###‫ت‬action during disputes‫عات‬#‫لنزا‬##‫ا‬or crisis,
resolve conflicts.
• Resource allocator: Decide who gets
resources, schedule, budget.
• Negotiator: Represent department during
negotiation of union contracts, sales, budget.
Manager Roles

• Manager roles are important to

understand, but they are not separate
activities.

• Management can’t be practiced as

independent parts.

• Managers need time to plan and think

39
 Building management skills (10
mints)
• Think of an organization that has provided you with work
experience and the manager to whom you reported (or talk to
some one who has had extensive work experience), then
answer the following question:
• 1- How do you characterized your supervisor’s approach to
management? For example. Which particular management
functions and roles does this person perform most often?
What kinds of management skills does this manager have?
• 2- Do you think the functions, roles, and skills of your
supervisor are appropriate for the particular job he performs?
How could this manager improve his task performance.
 Managing in Small Business and Nonprofit
Organizations

Small businesses are growing

– Inadequate‫لكافية‬##‫ غير ا‬management 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.”
41
 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

42
Transition to a New Workplace
State-of-the-Art MGMT Competencies for Today’s World

44
 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.

45