Chapter 1 the Changing Paradigm of Management & Foundations of Learning Organizations

Chapter 1

The Changing Paradigm of Management & Foundations of Learning Organizations

Chapter Outline

I. The Definition of Management II. Organizational Performance III. Management Skills IV.Management Types A. When Skills Fail B. Manager Activities C. Manager Roles V. Managing in Small Businesses and Nonprofit Organizations VI.Management and the New Workplace A. Forces on Organizations B. New Management Competencies C. Turbulent Times: Managing Crises and Unexpected Events D. The Learning Organization E. Managing the Technology-Driven Workplace VII. Management and Organization VIII. Classical Perspective A. Theory X and Theory Y B. Total Quality Management

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1 Understanding Management Study Guide

Key Terms Management: the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. Organization: a social entity that is goal directed and deliberately structured. Organizational Effectiveness: the degree to which the organization achieves a stated goal or succeeds in accomplishing what it tries to do. Organizational Efficiency: the use of minimal resources—raw materials, money, and people—to produce a desired volume of output. Performance: attainment of organizational goals by efficiently and effectively using resources. Role: a set of expectations for a manager’s behavior. Learning Organization: an organization in which everyone is engaged in identifying and solving problems, enabling the organization to experiment, change, and improve continuously, thus increasing its capacity to grow, learn, and achieve its purpose. E-business: work an organization does by using electronic linkages (including the Internet) with customers, partners, suppliers, employees, or other key constituents. E-commerce: business exchanges or transactions that occur electronically. E-commerce replaces or enhances the exchange of money and products with the exchange of data and information from one computer to another.

Knowledge management: the efforts to systematically find, organize, and make available a company’s intellectual capital and to foster a culture of continuous learning and knowledge sharing so that a company’s activities build on what is already known.

Social forces: the aspects of a culture that guide and influence relationships among people—their values, needs, and standards of behavior.

Political forces: the influence of political and legal institutions on people and organizations. Political forces include basic assumptions underlying the political system, such as the desirability of self-government, property rights, contract rights, the definition of justice, and the determination of innocence or guilt of a crime.

Economic forces: forces that affect the availability, production, and distribution in a society.

Scientific Management: a subfield of the classical management perspective in which decisions about organizations and job design should be based on precise, scientific study of individual situations.

Contingency Theory: means that one thing depends on other things, and for organizations to be effective, there must be a “goodness of fit” between their structure and the conditions in their external environment.

Total quality management (TQM): a concept that focuses on managing the total organization to deliver quality to customers. Four significant elements of TQM are employee involvement, focus on the customer, benchmarking, and continuous improvement.

Learning Objectives

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2 Chapter 1 The Changing Paradigm of Management & Foundations of Learning Organizations

1. Explain the difference 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 with today’s turbulent environment, including issues such as diversity, globalization, rapid change and the skills needed for crisis management. 4. Describe the learning organization and the changes in structure, empowerment, and information sharing that managers make to support it. 5. Understand how historical forces influence the practice of management. 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 use in organizations. 9. Define the role that contingency plays in organizations. 10. Explain the major concepts of total quality management.

Chapter Review Multiple Choice: Please indicate the correct response to the following questions by writing the letter of the correct answer in the space provided.

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_____ 1. The management function concerned with setting organizational goals is called a. organizing. b. leading. c. planning. d. controlling. e. coordinating.

____ 2. The figurehead role is being filled by a manager when he or she _ a. seeks current information from periodicals. b. handles symbolic activities for the department. c. transmits important information to subordinates. d. allocates equipment to departments. e. negotiates with a supplier about a late shipment.

____ 3. Managers may perform up to ten different roles as part of their everyday jobs. _ The roles are divided into three categories: a. personal, private, and public. b. interpersonal, informational, and decisional. c. semi-private, informational, and public. d. interpersonal, informative, and interesting. e. decisional, argumentative, and disruptive. ____ 4. Conceptual skills are needed by managers, but especially by _ managers. a. few, first-line b. all, middle c. intellectual, personnel d. all, top e. few, middle

____ 5. The learning organization is one in which _ a. everyone is expected to have a college degree. b. the CEO teaches everyone else how to act. c. everyone in the organization participates in identifying and solving problems. d. formal courses are offered to all employees. e. employees can easily learn how to progress up the career ladder.

___ 6. Technical skills are most needed by managers. a. top level b. middle level c. first-line d. staff e. project

____ 7. A manager who is not a good communicator is failing to perform the _ role well. a. negotiator b. figurehead

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c. leader d. monitor e. spokesperson

____ 8. A manager who is known for innovation is successfully filling the _ role. a. figurehead b. disseminator c. monitor d. entrepreneur e. negotiator

____ 9. Planning, organizing, leading, and controlling are referred to as the of _ management a. principles b. objects c. functions d. antitheses e. nemeses

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____ 10. In telling an employee how to correctly do a task which he formerly did incor- _ rectly, you are engaged in the function of management. a. planning b. organizing c. leading d. controlling e. coordinating

____ 11. Efficiency and effectiveness in the same organization _ a. is a practical impossibility. b. is not a desirable outcome. c. can both be high. d. must be achieved by different persons. e. none of the above are true.

____ 12. The use of influence to motivate employees is done as part of the management _ function of a. leading. b. organizing. c. staffing. d. directing. e. controlling.

____ 13. Small, offbeat, and not-for-profit organizations _ a. are more numerous than large, visible corporations. b. represent a model for poor management. c. do not use human skills very much. d. illustrate that organizations can succeed without management. e. ignore the community in which they exist.

____ 14. The classical management perspective _ a. recognized environmental influences. b. viewed workers as the same as managers. c. ignored rationality in favor of human relations. d. emphasized efficiency and organization. e. failed to recognize the importance of individual productivity.

____ 15. The ______approach to management used the careful study of tasks and _ jobs. a. scientific management b. classical management c. administrative principles d. systems theory e. contingency

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____ 16. The general approach of scientific management includes _ a. flexibility of standards for performing each job. b. selecting workers with appropriate abilities for each job. c. training workers in methods according to individual abilities. d. providing autonomy to workers in planning their own work. e. eliminating wage incentives since they are counterproductive.

____ 17. Fayol's principle of unity of command means that _ a. top management must all be of one mind before issuing orders. b. each subordinate should receive orders from one—and only one— superior. c. after a command is received, subordinates have the duty of rallying behind the command even if they disagree with it. d. only one person should make a decision because group decision making is less efficient. e. similar activities in an organization should be grouped together under one manager.

____ 18. Fayol's principle of unity of direction means that _ a. top management must all be of one mind before issuing orders. b. each subordinate should receive orders from one—and only one— superior. c. after a command is received, subordinates have the duty of rallying behind the command even if they disagree with it. d. only one person should make a decision because group decision making is less efficient. e. similar activities in an organization should be grouped together under one manager.

____ 19. Weber designed a bureaucracy mainly because _ a. he was a German and therefore liked paperwork. b. he worked for the government and saw how rational such an organization really was. c. there was a need for equal treatment and everyone knowing the rules. d. he had studied the writings of Frederick W. Taylor and felt Taylor's ideas could be applied to government structures also. e. he objected to the way organizations were so impersonally managed in his day.

____ 20. One problem with the bureaucratic model is that it failed to consider _ a. Rules. b. social contact and human needs c. equal treatment d. rationality e. formal record keeping

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____ 21. In a bureaucracy ______is separate from ownership. _ a. Rationality b. Funding c. Management d. Authority e. Status

____ 22. Which of the following is NOT a significant element of Total Quality _ Management (TQM)? a. strict control of quality by top management b. employee involvement c. focus on the customer d. benchmarking e. continuous improvement

____ 23. Although team leadership is critical in learning organizations, the traditional _ boss a. is still in charge of everything. b. must still make the tough decisions. c. is practically eliminated. d. must be maintained. e. is still very important.

____ 24. The assumption that the average human being learns, under proper conditions, _ not only to accept but to seek responsibility is an assumption of a. Theory Y. b. Abraham Maslow. c. contingency theory. d. Theory X. e. Frederick W. Taylor.

____ 25. Early twentieth-century management scholar Mary Parker Follett defined _ management as a. the art of getting things done through other people. b. being effective and efficient. c. keeping workers happy so they will be productive. d. applying scientific principles to the management of people. e. empowering workers so they can be creative.

____ 26. An organization is defined in your text as a social entity that _ a. is out to make a profit. b. a strong leader has put together. c. dies when the leader dies. d. is goal directed and deliberately structured. e. can put illustrated by a chart on paper.

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____ 27. When work is done by using electronic linkages it is called _ a. E-business. b. E-commerce. c. enterprise resource planning. d. knowledge management. e. cyber management.

____ 28. According to Theory X, the average human being has an inherent ______work. a. understanding of b. liking for c. feeling, either positive or negative, towards d. dislike for e. trust in

____ 29. The fundamental paradigm during much of the twentieth century was a belief _ that things a. would continue to change at a rapid rate. b. could not be accurately measured or accessed c. can be stable. d. can not really be understood. e. are only there to be exploited by mankind.

____ 30. ERP stands for _ a. Electronic Research Process. b. Enterprise Resource Planning. c. Elective Research Planning. d. Electronic Risk Probability. e. Enterprise Risk Planning.

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True/False: Please indicate whether the following statements are true or false by writing a T or an F in the blank in front of each question.

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_____ 1. It is impossible for an organization to be both efficient and effective at the same time since efficiency may use the resources in such a way as to preclude effectiveness.

_____ 2. A manager who is presenting an award is filling an informational role.

_____ 3. Managers use conceptual, human and technical skills to perform the four management functions in all organizations.

_____ 4. When a manager is resolving a conflict between two subordinates, he or she is filling the disturbance handler role.

_____ 5. Most managers usually find time for quiet reflection, which is why many subordinates feel that managers do not work very hard.

_____ 6. Even though Dell has had its ups and downs, the CEO and President of the company have remained very popular with the employees.

_____ 7. Deliberately structured means that tasks are divided and responsibility for their performance is assigned to organization members.

_____ 8. David Bowie was a huge rock star but has lost it all through bad business decisions.

_____ 9. Success in the new workplace depends on the strength and quality of collaborative relationships.

_____ 10. The learning organization refers to a company in which everyone is encouraged to complete a college degree.

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Short Answer: Please indicate your answer in the space provided.

1. How would you define management to a friend who is unfamiliar with the term?

2. What are the four functions of management?

3. Discuss the advantages and disadvantages of Taylor’s Scientific Management.

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4. What are the primary characteristics of a learning organization?

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Manager’s Workbook

Management Aptitude Questionnaire (Also available on page 38 of text.)

Rate each of the following questions according to this scale:

5 I always am like this. 4 I often am like this. 3 I sometimes am like this. 2 I rarely am like this. 1 I never am like this.

____ 1 When I have a number of tasks or homework to do, I set priorities and organize the work around the deadlines.

____ 2 Most people would describe me as a good listener.

____ 3 When I am deciding on a particular course of action for myself (such as hobbies to pursue, languages to study, which job to take, special projects to be involved in), I typically consider the long-term (three years or more) implications of what I would choose to do.

____ 4 I prefer technical or quantitative courses rather than those involving literature, psychology, or sociology.

____ 5 When I have a serious disagreement with someone, I hang in there and talk it out until it is completely resolved.

____ 6 When I have a project or assignment, I really get into the details rather than the “big picture” issues.*

____ 7 I would rather sit in front of my computer than spend a lot of time with people.

____ 8 I try to include others in activities or when there are discussions.

____ 9 When I take a course, I relate what I am learning to other courses I have taken or concepts I have learned elsewhere.

____10 When somebody makes a mistake, I want to correct the person and let her or him know the proper answer or approach.*

____11 I think it is better to be efficient with my time when talking with someone, rather than worry about the other person’s needs, so that I can get on with my real work.

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____12 I know my long-term vision for career, family, and other activities and have thought it over carefully.

____13 When solving problems, I would much rather analyze some data or statistics than meet with a group of people.

____14 When I am working on a group project and someone doesn’t pull a full share of the load, I am more likely to complain to my friends rather than confront the slacker.*

____15 Talking about ideas or concepts can get me really enthused and excited.

____16 The type of management course for which this book is used is really a waste of time.

____17 I think it is better to be polite and not to hurt people’s feelings.*

____18 Data or things interest me more than people.

Scoring: Subtract your scores for questions 6, 10, 14, and 17 from the number 6, and then add the total points for the following sections.

1, 3, 6, 9, 12, 15 Conceptual skills total score ————— 2, 5, 8, 10, 14, 17 Human skills total score —————— 4, 7, 11, 13, 16, 18 Technical skills total score —————

The above skills are three abilities needed to be a good manager. Ideally, a manager should be strong (though not necessarily equal) in all three. Anyone noticeably weaker in any of the skills should take courses and read to build up that skill. For further background on the three skills, please refer to the model on page 9.

*reverse scoring item NOTE: This exercise was contributed by Dorothy Marcic.

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Who is a Manager?

After studying the roles of a manager in class Don became involved in a conversation about whether various persons he knew were "managers" or not. Help Don decide this by placing a yes or not in the appropriate spaces below.

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ROLE MANAGEMENT BASKETBALL FATHER OF A PROFESSOR COACH FAMILY Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

Manager’s Workshop

The Worst Manager (Also available on pages 40 of text.)

1. By yourself, think of two managers you have had—the best and the worst. Write down a few sentences to describe each.

The best manager I ever had was...

The worst manager I ever had was...

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2. Divide into groups of 5-7 members. Share your experiences. Each group should choose a couple of examples to share with the whole group. Complete the table below as a group.

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Management Skills evident or Lessons to be Advice you principle missing learned would give followed or managers broken

The best managers

The worst managers

3. What are the common problems managers have?

4. Prepare a list of “words of wisdom” you would give as a presentation to a group of managers. What are some basic principles they should use to be effective?

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Sam Slick

You are the manager of a used car lot. The policy of the company is that your sales force never sells a car for below the established base price. Each sale results in a 5% commission for the salesperson. You have recently had some complaints from some of your employees regarding the actions of one of your best salespersons, Sam Slick. It seems that Sam has been selling cars for below the established base price. When you confront him about this practice, he points out that while the established base price gives the company a nice profit, no profit is realized if a car just sits on the lot forever. Consequently, he has been selling some of these slower-selling cars. A little profit is better than no profit at all he reasons.

Divide into groups of four persons. Each group will be designated as a Taylor group, a Mayo group, a Deming group, or a Referee group. Depending on your group type, answer the question below. After five minutes each group present its solution. The Referee group will then pick the best solution and explain its choice.

Taylor Group You are a believer in scientific management. How would you handle this situation? Elect a spokesperson group to explain how and why you will handle it this way. This spokesperson will explain your rationale to the rest of the class.

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Mayo Group You follow the human relations approach to management. How might you handle this situation? Elect a spokesperson for the group to explain how and why you will handle it this way. This spokesperson will explain your rationale to the rest of the class.

Deming Group You follow the management science approach to management. How might you handle this situation? Elect a spokesperson for the group to explain how and why you will handle it this way. This spokesperson will explain your rationale to the rest of the class.

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Referee Group You will listen to the groups present their approaches to solving this problem. Decide on the criteria for judging their solutions while they are working out their solutions.

Criteria

Which approach do you think would be best in this situation? Take a simple vote from all the referees to determine the best solution. Elect a spokesperson for the group to explain your choice to the rest of the class.

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Study Guide Solutions

Chapter Review

Multiple-Choice Questions

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Question Answer Page Reference Question Answer Page Reference 1 C 8 16 B 30 2 B 15 17 B 30 3 B 14 18 D 30 4 D 9 19 C 31 5 C 22 20 B 3 6 C 9 21 C 31 7 C 15 22 A 36 8 D 15 23 C 25 9 C 7 24 A 32 10 D 8 25 A 7 11 C 9 26 D 8 12 A 8 27 A 26 13 A 8 28 D 32 14 D 30 29 C 20 15 A 30 30 B 27

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True/False Questions

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Question Answer Page Reference Question Answer Page Reference 1 F 9 6 F 6 2 F 15 7 T 8 3 T 10 8 F 21 4 T 15 9 T 21 5 F 13 10 F 24 - 25

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Short Answer Questions

1. Management is defined as the attainment of organizational goals in an effective and efficient manner through the employment of the four management functions of planning, organizing, leading, and controlling organizational resources.

2. The four functions of management are planning, organizing, leading, and controlling. a. PLANNING simply means deciding what it is you want to do and how you will go about it. b. ORGANIZING means deciding who does what. c. LEADING involves motivating and communicating with subordinates. d. CONTROLLING means setting standards, comparing results with those standards, and then making adjustments as needed. 3. The advantages of scientific management included the standardization of work, the systematic study of work, the linking of performance and pay, and improved productivity. The disadvantages included its failure to consider the social context within which work took place and its failure to appreciate workers' needs, other than their need for money.

4. The primary characteristics of a learning organization are— a. leadership b. team-based structure c. empowerment d. communications/information sharing e. emergent strategy f. strong culture

Manager’s Workbook

Management Aptitude Questionnaire: Scoring and interpretation provided with exercise.

Who is a Manager?

Answers to this application will vary according to perceptions of each student. A discussion of the answers in class would be interesting.

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ROLE MANAGEMENT BASKETBALL FATHER OF A PROFESSOR COACH FAMILY

Figurehead YES YES YES Leader YES YES YES Liaison YES YES YES Monitor YES YES YES Disseminator YES YES YES Spokesperson YES YES YES Entrepreneur MAYBE YES MAYBE Disturbance YES YES YES Handler Resource Allocator NO YES YES Negotiator NO YES YES

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Manager’s Workshop

The Worst Manager. Answers to this application will vary according to perceptions and unique experiences of each student.

Sam Slick

Taylor Group As a believer in scientific management, you would try to convince Sam that there is one best way to sell used cars. You would try to train Sam in the company's prescribed way, including sticking to the established base price. You would also try to explain to Sam that by selling at a lower price he is reducing the amount of his commission. Since you believe that money is a prime motivator, this should convince him. You would also explain to him that it is management's job, not the employees', to establish procedures.

Mayo Group You would explain to Sam that his actions were causing the other employees to complain and would not make him very popular with them. You would also emphasize the importance of teamwork. You would ask him if he had any ideas to solve this problem himself.

Deming Group Since you subscribe to the management science approach, you would probably explain to Sam the quantitative rationale behind the present procedure. You would use logic to convince him that it is in his best interest to follow the procedure.

Referee Group Some of the criteria you might consider using include practicality of the proposed solution, how well Sam will accept the solution, and the effect of the solution on the rest of the company.

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