CHAPTER 1 THE WORLD OF INNOVATIVE MANAGEMENT.pptx

Chapter 1: Leading Edge Management
Understanding Management,12e
Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dr Maheera binti Mohamad
Room No: 3042 (STML Block)
No Phone: 018-4638820 (Hp), 04-9286955 (Office)
Email: maheera.mohamad@uum.edu.my

Richard L. Daft and Dorothy Marcic, Understanding Management, 12th Edition. © 2023 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Icebreaker
"Management is doing things right; leadership is doing the right things."
— Peter F. Drucker, acclaimed management consultant
• Reflect on the above statement, either individually or pairing up with another
student. Then think through the following questions:
• Are good managers good leaders? Are good leaders good
managers?
• Think about a situation in which you were a good manager or leader.
(Share this story with your student partner.)

Learning Objectives
(1 of 2)
By the end of this chapter, you should be able to:
1.1 Explain five management competencies and the trend toward
bosslessness in today’s world.
1.2 Define the four management functions and the type of management
activity associated with each.
1.3 Explain the unique characteristics of the manager’s role in nonprofit
organizations.
1.4 Describe managers’ appropriate use of power and influence.
1.5 Summarize the historical struggle between managing the “things of
production” and the “humanity of production.”

Management Competencies for Today’s World
1-1

Management Competencies for Today’s World
(LO 1)
• Management: Attainment of organizational goals in an effective
and efficient manner through planning, organizing, leading, and
controlling organizational resources
• Today’s effective manager is an enabler who helps people do and be
their best.
• Today’s best managers are “future-facing.”
• Managers employ an empowering leadership style.

Rapid Environmental Shifts
(LO 1)
• Technology (e.g., social media & mobile apps)
• Move to knowledge/information-based economy
• Rise of artificial intelligence
• Global market forces
• Growing threat of cybercrime
• Shifting expectations

1.1 Management Competencies for Today’s World
(LO 1)

Trend Toward Bosslessness
(LO 1)
• Organization design turns management authority and
responsibility over to employees.
• Team spirit and autonomy (the ability of the person to make his or her
own decisions) are often leading goals.
• How and where work gets done has shifted.
• New technology enables employees to work from locations outside a
regular office.
• Provides greater flexibility as well as increased employee initiative
and commitment.

The Basic Functions of Management
1-2

1.2 The Process of Management
(LO 2)

Polling Activity 1
• If organizational performance indicates how well a manager is
doing their job, is it more important for a manager to focus on
efficiency or effectiveness?
a. Efficiency is more important.
b. Effectiveness is more important.
c. Importance of efficiency and effectiveness depends on the
manager’s role and goals.
d. Efficiency and effectiveness are equally important.

What Is a Manager’s Job Really Like?
1-3

Manager Activities
(LO 5)
• Adventures in multitasking
• Activity characterized by variety, fragmentation (broken up into
different parts), and brevity (concise & shortness)
• Less than nine minutes on most activities
• Managers shift gears quickly
• Life on speed dial
• Work at unrelenting pace
• Interrupted constantly
• Ad hoc meetings (Meetings to address something out of the
ordinary that requires immediate attention)

Life on Speed Dial
(LO 5)
• Time management: Using techniques that enable you to get
more done in less time and with better results, be more relaxed,
and have more time to enjoy your work and your life
• Learning to manage time effectively is one of the greatest
challenges new managers face.

Manager Roles
(LO 5)
• Role: Set of expectations for a manager’s behavior
• 3 categories of management roles
• Informational (providing information)
• Interpersonal (relating to relationships or communication
between people)
• Decisional (Having the power or authority to make decisions)
• Management roles accomplish 4 functions:
• Planning
• Organizing
• Leading
• Controlling

1.7 Ten Manager Roles
(LO 5)

Knowledge Check 1
• Which of the following sets of manager roles would be
considered decisional roles?
a. Spokesperson, leader, and entrepreneur
b. Negotiator, figurehead, and liaison
c. Disseminator, monitor, and leader
d. Disturbance handler, entrepreneur, and resource allocator

Knowledge Check 1: Answer
• Which of the following sets of manager roles would be
considered decisional roles?
d. Disturbance handler, entrepreneur, and resource allocator

1.8 Leader and Liaison Roles
(LO 5)
Liaison: communication
or cooperation which
facilitates a close
working relationship
between people or
organizations

Manager and Leader
1-4

WHAT IS THE DIFFERENCE BETWEEN LEADING AND MANAGING?
Table 14.1 Characteristics of Managers and Leaders.
Sources: Adapted from the following sources: P. Lorenzi, “Managing for the Common Good: Prosocial Leadership,” Organizational Dynamics, Vol. 33, No. 3 (2004), p. 286; J. P. Kotter, ”What Leaders Really Do,”
Harvard Business Review, December 2001, pp. 85–96; the role of leadership within organizational change is discussed in J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996); managing in
the world of complexity is discussed in G. Sargut and R. G. McGrath, “Learning to Live with Complexity,” Harvard Business Review, September 2011, pp. 68–76; M. J. Mauboussin, “Embracing Complexity,” Harvard
Business Review, September 2011, pp. 88–92.
BEING A MANAGER MEANS... BEING A LEADER MEANS…
Planning, organizing, directing, controlling Being visionary (berwawasan)
Executing plans and delivering goods and services Being inspiring, setting the tone, and articulating (pronounce (something)
clearly and distinctly) the vision
Managing resources Managing people
Being conscientious (teliti) Being inspirational (charismatic)
Acting responsibly Acting decisively
Putting customers first—responding to and acting for customers Putting people first—responding to and acting for followers
Mistakes can happen when managers don’t appreciate people are the key
resource, underlead by treating people like other resources, or fail to be held
accountable
Mistakes can happen when leaders choose the wrong goal, direction, or
inspiration; overlead; or fail to implement the vision
Coping with complexity (difficulties) —complex organizations are chaotic
without good management
Coping with change—organizations need leadership to direct the constant
change necessary for survival in today’s dynamic business landscape

MANAGERIAL LEADERSHIP: CAN YOU BE BOTH A MANAGER AND A
LEADER?
• Managerial leadership includes:
• Influencing followers to internalize,
• Committing to a set of shared goals, and facilitating the group and individual
work that is needed to accomplish those goals.
• Managerial leadership may be demonstrated by managers and also
by those who exercise leadership on a daily basis.

The Evolution of Management Thinking
1-5

Management and Organization
(LO 7)
• Studying management history helps you understand the impact
of social forces on organizations.
• Certain factors affect management practices and
perspectives:
• Social forces
• Political forces
• Economic forces

1.9 Management Perspectives over Time
(LO 7)

1.10 Tension Between Historical Forces
(LO 7)

Classical Perspective
1-9

Classical Perspective
(LO 8)
• Emerged during the 19th and early 20th centuries during rise
of the factory system.
• Large, complex organizations required new approaches to
coordination and control.
• 4 subfields:
• Scientific management
• Bureaucratic organizations
• Administrative principles
• Management science

Scientific Management
(LO 8)
• Improve efficiency and labor productivity
through scientific methods.
• Frederick Winslow Taylor proposed that workers
“could be retooled like machines.”
• Management decisions would be based on precise
procedures based on study.
• Henry Gantt developed the Gantt chart, a bar
graph that measures planned and completed
work.
• The Gilbreths pioneered time and motion studies
to promote efficiency.
Frederick
Winslow
Taylor

1.11 Characteristics of Scientific Management
(LO 8)

Discussion Activity 3
• Do you believe that scientific management characteristics
will ever cease to be a part of organizational life, since they
are now about 100 years old?
• Consider:
• how economic factors influence the use of scientific
management practices
• how political factors influence the use of scientific
• how social factors influence the use of scientific

Discussion Activity 3 Debrief
• Do you believe that scientific management characteristics will ever cease
to be a part of organizational life, since they are now about 100 years old?
• Economic factors: Consider the state of the economy, the availability of
workers, and the organization’s financial health.
• Political factors: Consider the levels of regulation and taxation and how they
influence organization and management goals.
• Social factors: Consider the culture and how workers’ rights and needs are
currently viewed.
• This approach to management was powerful and gave companies fundamental
new skills for establishing high productivity and effective treatment of
employees. Indeed, these management techniques, and other countries,
especially Japan, borrowed heavily from American ideas.

Bureaucratic Organizations
(LO 8)
• Organization depends on rules and records.
• Max Weber, a German theorist, introduced the concepts.
• Manage organizations on impersonal (having no
personal reference or connection), rational basis.
• Managers use power instead of personality to delegate.
• Although important productivity gains come from this
approach, bureaucracy has taken on a negative tone.
German theorist

1.12 Characteristics of Weberian Bureaucracy
(LO 8)

Administrative Principles
(LO 8)
• Focused on the entire organization.
• Henri Fayol, a major contributor, listed 14 general
principles of management:
• Many still used today: unity of command; division of work; unity
of direction; and scalar chain.
• Identified five functions of management: planning, organizing,
commanding, coordinating, and controlling.
• Charles Clinton Spaulding, another a major contributor,
outlined 8 fundamental necessities, including
• Authority and responsibility; division of labor; adequate
manpower; and cooperation and work
Henri Fayol
Charles Clinton Spaulding

Management Science
(1 of 2) (LO 8)
• Also referred to as quantitative perspective
• Applies mathematics, statistics, and other quantitative
techniques to management decision making and problem
solving
• Developed for the military during World War II
• Enhanced by development of the computer
• Widely used today

Management Science
(2 of 2) (LO 8)
• Subsets of management science
• Operations research: mathematics model building
• Operations management: management field specializing in physical
production of goods
• Information technology (IT): focuses on technology and software to aid
managers
• Digital organization: organization that uses technology as
primary competitive tool
• Quants: financial managers who base decisions on complex
quantitative analysis

Humanistic Perspective
1-10

Early Advocates
(LO 8)
• Understand human behaviors, needs, and attitudes in
the workplace
• Contrast to scientific management—importance of
people rather than engineering techniques
• Mary Parker Follett and Chester Barnard
• Empowerment: facilitating instead of controlling employees
• Informal organization: cliques (group), informal networks, and
social groupings
• Acceptance theory of authority: people can choose to follow
management orders
Mary Parker Follett
Chester Barnard

Human Relations Movement
(LO 8)
• Effective control comes from within the employee.
• Hawthorne studies were key contributor.
• Human relations played key variable in increasing performance.
• Employees perform better when managers treat them
positively.
• Shaped management practice and research.

Knowledge Check 2
• The Hawthorne effect is most likely to be a factor in which of
the following examples?
a. A study uses more than one experimental group, all of which
show different outcomes.
b. A study uses more than one control group that exhibit similar
outcomes.
c. A study involves numerous experimental and control groups,
none of which shows consistent data.
d. A study involves one experimental group and one control
group, but only the control group knows they are being
observed.

Knowledge Check 2: Answer
• The Hawthorne effect is most likely to be a factor in which of
the following examples?
d. A study involves one experimental group and one control group,
but only the control group knows they are being observed.

Human Resources Perspective
(LO 8)
• Satisfied workers produce more work.
• Allows workers to use their full potential
• Shifted emphasis to workers’ daily
tasks
• Combined job design and motivation
• Maslow created a hierarchy of needs.
• McGregor formulated Theory X and
Theory Y about workers’ motivation.
Maslow

1.13 Theory X and Theory Y
(LO 8)

Polling Activity 3
• You have an employee who is not performing up to the potential
you believe the person showed initially after being hired. As a
proponent of Theory Y management, which of the following
approaches would you take?
a. Wait until the employee’s performance review to discuss the
situation in the event it is due to a personal, rather than
organizational, matter.
b. Call in the employee in to review progress toward previously
stated performance goals.
c. Indicate to the employee that he/she has been put on
probation (tempoh percubaan), according to company policy.

Behavioral Sciences Approach
(LO 8)
• Scientific methods + sociology, psychology, anthropology,
economics, and others to develop theories about human
behavior and interaction in an organizational setting.
• Organization development (OD): set of management
techniques that uses behavioral sciences to improve
organization’s health and effectiveness.
• Other strategies based on behavioral sciences include matrix
organizations, self-managed teams, corporate culture, and
management by wandering around.

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