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Management
The complete story
By
Norris Dorsey

McGraw-Hill © 2003 The McGraw-Hill Companies, Inc. All rights rese

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Managing In The New Era

 Managerial practices will always separate effective from

ineffective organizations
 Four key elements are new elements in business today

Internet Globalization

New Era
Management

Collaboration
Knowledge
Across
Management
“Boundaries”
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Managing In The New Era (cont.)

 The Internet
 communication technologies are driving massive change
 initial enthusiasm for e-business has dwindled

 25% of publicly-held Web companies became profitable in 2002

 most profitable Web companies sell information-based
products that don’t require shipping
 old economy types now using the Internet as a tool to solidify

their future

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Managing In The New Era (cont.)

 Globalization

 farmore than in the past, enterprises are global

 competing globally is not easy

 companies often overestimate the attractiveness of foreign

markets
 even small firms that do not operate on a global scale must
make strategic decisions based on international considerations
 face intense competition from high-quality foreign producers

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Managing In The New Era (cont.)

 Knowledge management
 practices aimed at discovering and harnessing an
organization’s intellectual resources
 unlock people’s expertise, skills, wisdom, and relationships
 intellectualcapital is the collective brainpower of the
organization
 Collaboration across “boundaries”
 capitalize
on the ideas of people outside the traditional
company “boundaries”
 occurs between as well as within organizations
 e.g., must effectively capitalize on customers’ brains
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Managing For Competitive Advantage

 Best managers and companies deliver all four

Cost
Innovation
Competitiveness

Competitive
Advantage

Quality Speed

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Managing For Competitive Advantage
(cont.)
 Innovation

 the introduction of new goods and services

 comes from people
 must be a strategic goal

 must be managed properly

 Quality

 excellence of a product, including its attractiveness, lack of

defects, reliability, and long-term durability
 importance of quality has increased dramatically

 catering to customers’ other needs creates more perceived

quality
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Managing For Competitive Advantage
(cont.)
 Speed

 fastand timely execution, response, and delivery of results

 often separates winners from losers in world competition

 requirement has increased exponentially

 Cost competitiveness
 costs are kept low enough so that you can realize profits and
price your products at levels that are attractive to consumers
 key is efficiency - accomplishing goals by using resources wisely

and minimizing waste

 little things can save big money

 cost cuts involve tradeoffs

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The Functions Of Management

 Management

 theprocess of working with people and resources to

accomplish organizational goals
 good managers must be:

 effective - achieve organizational goals

 efficient - achieve goals with minimum waste of resources

 there are timeless principles of management

 still important for making managers and companies great
 must add fresh thinking and new approaches

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The Functions Of Management (cont.)

 The manager who does not devote adequate attention and

resources to all four functions will fail

Leading

Organizing Controlling

Planning

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The Functions Of Management (cont.)

 Planning

 specifying the goals to be achieved and deciding in advance

the appropriate actions taken to achieve those goals
 delivering strategic value - planning function for the new era

 a dynamic process in which the organization uses the brains of

its members and of stakeholders to identify opportunities to
maintain and increase competitive advantage
 process intended to create more value for the customer

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The Functions Of Management (cont.)

 Organizing

 assembling and coordinating the human, financial, physical,

informational, and other resources needed to achieve goals
 building a dynamic organization - organizing function for the

new era
 viewing people as the most valuable resource
 the future requires building flexible organizations

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The Functions Of Management (cont.)

 Leading

 stimulating people to be high performers

 in the new era, managers must be good at mobilizing people to

contribute their ideas

 Controlling

 monitoring progress and implementing necessary changes

 makes sure that goals are met

 new technology makes it possible to achieve more effective

controls
 for the future, will have to be able to monitor continuous

learning and changing

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Management Levels

 Top-level managers (strategic managers)

 senior executives responsible for the overall management and
effectiveness of the organization
 focus on long-term issues

 emphasize the survival, growth, and effectiveness of the firm

 concerned with the interaction between the organization and

its external environment

 titles include Chief Executive Officer (CEO), Chief Operating

Officer (COO), company presidents and vice presidents

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Management Levels (cont.)

 Middle-level managers (tactical managers)

 located between top-level and frontline managers in the
organizational hierarchy
 responsible for translating strategic goals and plans into more

specific objectives and activities

 traditional role was that of an administrative controller who

bridged the gap between higher and lower levels

 provide operating skills and practical problem solving the

keep the company working

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Management Levels (cont.)

 Frontline managers (operational managers)

 lower-level managers who supervise the operational activities
of the organization
 directly involved with nonmanagement employees

 increasingly being called on to be innovative and

entrepreneurial
 titles include supervisor or sales manager

 Working leaders with broad responsibilities

 in small firms and large firms that have adapted to the times,
managers have strategic, tactical, and operational
responsibilities
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Management Skills

 Skill- specific ability that results from knowledge,

information, and aptitude
 Technical skill

 ability
to perform a specialized task that involves a certain
method or process
 managers at higher levels rely less on technical skills

 Conceptual and decision skills

 ability to identify and resolve problems for the benefit of the
organization
 assume greater importance as manager acquires more

responsibility
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Management Skills (cont.)

 Interpersonal and communication skills

 ability to lead, motivate, and communicate effectively with
others
 people skills
 importantthroughout your career at every level of
management

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You And Your Career

 Jobs are no longer as secure for managers as they used to be

 organizationsstill try to develop and retain good employees
 employee loyalty and commitment are still important

 Companies offering “employability” to workers tend to be

more successful
 providetraining and other learning experiences
 employees perform work with greater responsibility

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You And Your Career (cont.)

 Be both a specialist and generalist

 specialist - expert in something
 provide concrete, identifiable value to the firm
 generalist - knowing about a variety of business functions so
that you can understand work with different perspectives
 Be self-reliant
 takeresponsibility for yourself, your actions, and your career
regardless of where you work
 think and act like an entrepreneur

 look for opportunities to contribute in new ways

 generate constructive change

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You And Your Career (cont.)

 Be connected
 establish many good working relationships
 be a team player with strong interpersonal skills

 all business is a function of human relationships

 competitive advantage depends upon you and other people

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Keys to Career Management

1. Think of yourself as a business.

2. Define your product: What is your area of expertise?
3. Know your target market: To whom are you going to sell this?
4. Be clear on why your customer buys from you. What is your
“value proposition” - what are you offering that causes him to
use you?
5. As in any business, strive for quality and customer satisfaction, even
if your customer is just someone else in your organization - like
your boss.
6. Know your profession or field and what’s going on there.
7. Invest in your own growth and development, the way a company
invests in research and development. What new products will you
be able to provide?
8. Be willing to consider changing your career.
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You And Your Career (cont.)

 Actively manage your relationship with your organization

 two ways to think about the nature of the relationships
between you and your employer
 view yourself as an employee
 model for just getting by
 contributions likely to be minimal
 two-way, mutually-beneficial exchange relationship
 think about how you can contribute and act accordingly
 figure out new ways to add value

 organization likely provide full and fair rewards, support further

personal development, and offer more gratifying work environment

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Managerial Action Is Your Opportunity
To Contribute

You

Managerial Actions
1. Delivering Strategic
Value
2. Building a Dynamic
Your Organization
Organization 3. Mobilizing People
4. Learning and
Changing
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Environmental Analysis

Environmental
Scanning

Scenario
Benchmarking
Development

Forecasting

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Characteristics Of Managerial Decisions

Risk Uncertainty

Lack of
Conflict
Structure

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Characteristics Of Managerial Decisions
(cont.)
 Lack of structure
 theusual state of affairs in managerial decision making
 programmed decisions - decisions that have been encountered

and made in the past

 have objectively correct answers
 are solvable by using simple rules, policies, or numerical

computations
 nonprogrammed decisions - new, novel, complex decisions
having no proven answers
 decision maker must create or impose a method for making the
decision

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Characteristics Of Managerial Decisions
(cont.)
 Uncertainty and risk
 certainty- have sufficient information to predict precisely the
consequences of one’s actions
 uncertainty - have insufficient information to know the

consequences of different actions

 cannot estimate the likelihood of various consequences of their
actions
 risk - available information permits estimation of the likelihood
of various consequences
 probability of an action being successful is less than 100 percent,
and losses may occur
 good managers prefer to manage risk

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Characteristics Of Managerial Decisions
(cont.)
 Conflict

 opposing pressures from different sources

 occurs at two levels

 psychological conflict - individual decision makers:

 perceive several attractive options
 perceive no attractive options
 conflict between individuals or groups
 few decisions are without conflict

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An Overview Of Planning
Fundamentals
 Planning

 theconscious, systematic process of making decisions about goals

and activities to be pursued in the future
 importance of formal planning has grown dramatically

 Basic planning process

 Step one: situational analysis
 a process planners use, within time and resource constraints, to
gather, interpret, and summarize all information relevant to the
planning issue under consideration
 study past and current conditions, and forecast future trends

 focuses on internal forces and influences from the external

environment
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An Overview Of Planning
Fundamentals (cont.)
 Basic planning process (cont.)
 Step two: alternative goals and plans
 generate alternative future goals and plans to achieve them
 goals - targets or ends the manager wants to reach

 should be specific, challenging, and realistic

 should be acceptable to those charged with achieving them
 plans - the actions or means intended to achieve goals
 identify alternative actions, needed resources, and potential obstacles
 single use plans - designed to achieve goals that are unlikely to be
repeated in the future
 standing plans - designed to achieve an enduring set of goals
 contingency plans - actions to be taken when initial plans fail or if events
in the external environment require a sudden change

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An Overview Of Planning
Fundamentals (cont.)
 Basic planning process (cont.)
 Step three: goal and plan evaluation
 evaluate the advantages, disadvantages, and potential effects of each
alternative goal and plan
 prioritize those goals

 consider the implications of alternative plans

 Step four: goal and plan selection

 identify the priorities and trade-offs among goals and plans
 leads to a written set of goals and plans that are appropriate and

feasible within a predicted set of circumstances

 scenario - narrative that describes a set of future conditions

 a contingency plan is attached to each scenario

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An Overview Of Planning
Fundamentals (cont.)
 Basic planning process (cont.)
 Step five: implementation
 plans are useless unless they are implemented properly
 managers must understand the plan, have the necessary resources,

and be motivated to implement it

 implementation likely to be more successful if managers and

employees have participated in the previous planning steps

 the plan should be linked to other systems in the organization

 Step six: monitor and control

 must continually monitor the actual performance in relation to the
goals and plans
 develop control systems to take corrective action

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Decision-Making Stages And Formal
Planning Steps
Identifying and Situational
diagnosing the problem analysis

Generating alternative Alternative

solutions goals and plans
General decision-

Specific formal
planning steps
making stages

Evaluating Goal and

alternatives plan evaluation

Making the Goal and

choice plan selection

Implementing Implementation

Evaluation Monitor and

control
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 An Overview Of The HR Planning 1 - 35

Process
Planning Programming Evaluation
Organizational
strategic
planning

HRM Human Human

environmental resources resources Results
scanning planning activities
•Labor markets •Demand forecast •Employee recruitment •Productivity
•Technology •Internal labor supply •Employee selection •Quality
•Legislation •External labor supply •Outplacement •Innovation
•Competition •Job analysis •Training and •Satisfaction
•Economy development •Turnover
•Performance appraisal •Absenteeism
•Reward systems •Health
•Labor relations
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The Global Environment

 Global environment
 becoming more integrated than ever before
 World Trade Organization (WTO)

 rules apply to over 90 percent of international trade

 has 144 member nations, including China

 moved from reducing tariffs to eliminating nontariff barriers

 International Monetary Fund (IMF)

 established by the United Nations
 has 184 member countries

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 1 - 37
The Global Environment (cont.)

 European unification
 European Union (EU)
 allows goods, services, capital, and human resources to flow
freely across national borders
 goal is to strengthen Europe as an economic superpower

 Maastrict Treaty

 agreement to adopt a common European currency

 Euro

 impact of EU is hard to predict

 “Fortress Europe” may restrict trade with countries outside of the
EU

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The Global Environment (cont.)

 Pacific Rim
 important economic players include Japan and China
 four tigers - Korea, Taiwan, Singapore, and Hong Kong
 Asia-Pacific Economic Cooperation (APEC)
 trying to:
 reduce trade barriers
 establish general rules for investment
 develop policies that encourage foreign investment
 holds promise in facilitating and strengthening international
business relationships
 member countries represent 40 percent of the world’s population and
50 percent of the world’s economic output
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The Global Environment (cont.)

 North America
 North American Free Trade Agreement (NAFTA)
 an economic pact that combined the economies of the U.S.,
Canada, and Mexico
 constitutes the world’s largest trading bloc

 provides access to previously protected markets in each country

 Mexico will have to bolster its infrastructure and take care of

troubling environmental issues

 Border Environment Cooperation Commission (BECC) - addresses
environmental concerns of communities on the border

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 1 - 40
The Global Environment (cont.)

 Rest of the world

 globalization has left out three huge, high-potential regions
 Middle East
 Africa

 Latin America

 these regions have a major share of the earth’s natural

resources

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Conventional Organization Chart

President

Finance R&D Marketing Personnel

Chemical Metal
Products Products

Personnel Finance Personnel Finance

Manufacturing Sales Manufacturing Sales

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 1 - 42
The Vertical Structure (cont.)

 Delegation

 assignment of authority and responsibility to a subordinate

 can occur between any two individuals in any type of structure

with regard to any task

 responsibility - assignment of a task that an employee is

supposed to carry out

 should delegate enough authority to complete the task
 accountability - expectation that employees perform a job, take
corrective action when necessary, and report upward on the
status and quality of their performance
 managers remain responsible and accountable for their own

actions and those of their subordinates

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 1 - 43
The Vertical Structure (cont.)

 Delegation (cont.)
 advantages of delegation
 permits getting work done through others
 manager saves time

 manager frees herself/himself to devote energy to other

important, higher-level activities

 provides subordinates with more important jobs

 provides subordinates with the opportunity to develop new skills

and to demonstrate potential

 from the organization’s perspective, jobs are done more

efficiently and cost-effectively

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 1 - 44
Steps In Effective Delegation

Define the goal succinctly

Select the person for the task

Solicit the subordinate’s view

about suggested approaches

Give the subordinate the authority, time, and resources

(people, money,equipment) to perform the assignment

Schedule checkpoints for

reviewing progress

Follow through by discussing

progress at appropriate intervals
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 1 - 45
Diversity Today

 Diversity

 broad term used to refer to all kinds of differences

 members of different groups share common values, attitudes,

and perceptions
 there is still much diversity within each group
 U.S. businesses must learn to manage a diverse workforce
 Managing diversity
 must be aware of characteristics common to a group
 must manage employees as individuals

 must support, nurture, and utilize these differences to the

organization’s advantage
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Components Of A Diversified
Workforce

Gender

Age
Racial and ethnic
minorities in the
United States Other
Religious affiliation
Workforce Veteran status
Immigrants Sexual orientation
Diversity Expectations and values
Lifestyle
Physically and Skill level
mentally disabled Educational level
Economic class
Workstyle
Function and/or position
within the company
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 How Effective Is Your Diversity 1 - 47

Program?
Ineffective
2% Very
Undecided Effective
13% 8%
Somewhat Effective
ineffective 8% 22%

Somewhat
effective
49%

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 1 - 48
Diversity Today (cont.)

 Size of the workforce

 U.S. civilian labor force is expected to reach 158 million by
2010
 slowing in both the number of people joining the labor force

and the rate of labor force growth

 U.S. traditionally had a surplus of labor

 number of jobs created expected to exceed the growth of the

labor force
 employers likely to outsource some work

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 1 - 49
Diversity Today (cont.)

 Workers of the future

 until recently, white, American born males dominated the
U.S. workforce
 now, they only account for 15 percent of the net growth

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 1 - 50

Women In The Workforce

 Women make up about 47 percent of the workforce
 99 percent of women will work for pay at some point in

their lives
 Overall labor force participation rate of women continues

increasing while the participation rate of men declines

 The long-term increase in the female labor force largely

reflects the greater frequency of paid work by mothers

 Today, 40 percent of multiple job holders are women

 One of every five married women who works outside the

home earns more than her husband

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 1 - 51
Minorities And Immigrants

 Nonwhites make up about one-third of the growth rate in the workforce

 Ethnic Americans now comprise nearly 25 percent of the total

population
 By 2020, most of California’s entry-level workers will be Hispanic

 English has become the second language for much of the population in

California, Texas, and Florida

 The number of foreign-born U.S. residents is at its highest level in U.S.

history (one in ten residents)

 The younger Americans are, the more likely they are to be persons of

color
 6.8 million people in the U.S. identify themselves as multiracial

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 1 - 52
Percentage Of Minority Managers

1995 10.60%
Senior
1992 7.40%

1995 15.10%
Middle
1992 11.20%

1995 19.30%
Front-line
1992 14.50%

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 1 - 53
Vision

 Vision

a mental image of a possible and desirable future state of the

organization
 having a vision and communicating it to others are essential

components of great leadership

 the best visions are both:

 ideal - communicates a standard of excellence and clear choice

of positive values
 unique - communicates and inspires pride in being different

from other organizations

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 1 - 54
Vision (cont.)

 Important points about visions

a vision is necessary for effective leadership
 a person or team can develop a vision for any job

 many people, including managers who do not develop into

strong leaders, do not develop a clear vision

 Visions can be inappropriate
 may reflect merely the leader’s personal needs
 may ignore stakeholders’ needs

 the vision must change when circumstances change

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 1 - 55
Leading And Managing

 Abilityto lead effectively sets excellent managers apart from

average ones
 managers deal with ongoing organizational activities
 planning and budgeting routines, structuring the organization
 leadership includes orchestrating organizational change
 creating a vision for the firm and inspiring people to attain it
 management and leadership are both vitally important
 supervisory leadership - provides guidance, support, and corrective

feedback for day-to-day activities of work unit members

 strategic leadership - gives purpose and meaning to organizations

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 1 - 56
Leading And Following

 Organizations succeed or fail because of how well followers

follow
 effective followers:
 are capable of independent thinking
 are actively committed to organizational goals

 are enthusiastic about ideas and purposes beyond their own self

interest
 master skills that are useful to the organization

 hold performance standards that are higher than required

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 1 - 57
Power And Leadership

 Power

 ability to influence other people

 Sources of power
 legitimate power - leader has organizational authority
 employees are obligated to comply with legitimate orders
 reward power - leader has control over valued rewards
 coercive power - leader has control over punishments

 referent power - leader has personal characteristics that appeal

to others and make them desirous of the leader’s approval

 expert power - leader has knowledge that others feel will be of

benefit to them
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 1 - 58
Sources Of Power

Authority

Control over
Expertise
rewards
Power

Appealing Control over

personal punishments
characteristics
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 Traditional Approaches To 1 - 59

Understanding Leadership
 Leader traits
 traitapproach - focussed on individual leaders to determine the
personal characteristics that great leaders share
 characteristics that distinguish effective leaders

 drive - characteristics that reflect a high level of effort

 leadership motivation - they want to lead

 integrity - actions correspond to words

 self-confidence - expectation that one is able to overcome obstacles

and make good decisions in the face of uncertainty

 knowledge of the business - ability to interpret information

 ability to perceive the needs of others and to adjust one’s behavior

accordingly
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 Traditional Approaches To 1 - 60

Understanding Leadership (cont.)

 Leader behaviors
 behavioral approach - sought to identify what behaviors good
leaders exhibit
 task performance - leader’s efforts to ensure that the work unit

reaches its goals

 focus on work speed, quality and quantity of output, and rules
 group maintenance - actions taken to ensure satisfaction
 develop and maintain harmonious work relationships
 leader-member exchange theory - focuses on the leader’s behavior

toward individuals
 focus is primarily on group maintenance behaviors
 potential for cross-cultural differences
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 Traditional Approaches To 1 - 61

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 participation in decision making - leader behaviors that
managers perform in involving their employees in making
decisions
 autocratic leadership - makes decisions and then announces
them to the group
 democratic leadership - solicits input from others

 uses consensus or majority vote to make the final choice

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 Traditional Approaches To 1 - 62

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 effects of leader behavior
 decision styles
 democratic approach resulted in the most positive attitudes
 autocratic approach resulted in somewhat higher performance
 laissez-faire - leadership philosophy characterized by an absence of
managerial decision making
 characteristics of the situation, leader, and the follower determine the
appropriate decision-making style

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 Behaviors That Companies Want 1 - 63

Employees To Exhibit

Join the
organization

Exhibit good Companies Remain in the

citizenship must organization
motivate
workers to:

Achieve high Come to work

output regularly

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 1 - 64
Setting Goals

 Goal setting theory

 people have conscious goals that energize them and direct their
thoughts and behaviors toward a particular end
 Goals that motivate
 goals should be acceptable to employees
 goals should be challenging but attainable

 goals should be specific, quantifiable, and measurable

 Limitations of goal setting

 individualized goals create competition and reduce cooperation
 single productivity goals interfere with other dimensions of

performance
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 1 - 65
The Consequences Of Behavior

Positive reinforcement Same behavior

or likely to be
negative reinforcement repeated

Behavior

Punishment Same behavior

or less likely to be
extinction repeated

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 1 - 66
Understanding People’s Needs

 Content theories
 indicate the kinds of needs that people want to satisfy
 the extent to which and the ways in which a person’s needs are met

or not met affect her/his behavior on the job

 Maslow’s need hierarchy
 human needs are organized into five major types
 physiological - food, water, sex, and shelter
 safety or security - protection against threat and deprivation

 social - friendship, affection, belonging, and love

 ego - independence, achievement, freedom, recognition, and self-esteem

 self-actualization - realizing one’s potential

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 1 - 67
Understanding People’s Needs (cont.)

 Maslow’s need hierarchy (cont.)

 postulates that people satisfy these needs one at a time, from
bottom to top
 people motivated to satisfy lower needs before they try to satisfy
higher needs
 once satisfied, a need is no longer a powerful motivator

 notaltogether accurate theory of human motivation

 nonetheless, made three major contributions

 identified important need categories

 helped to think in terms of lower- and higher-level needs

 increased salience of personal growth and self-actualization

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 1 - 68
Understanding People’s Needs (cont.)

 Alderfer’s ERG theory

 postulates that people have three basic need sets
 Existence needs - material and physiological desires
 Relatedness needs - involve relationships with other people

 satisfied by the process of mutually sharing thoughts and feelings

 Growth needs - motivate people to productivity or creativity
 satisfied by fully utilizing personal capacities and developing new
capacities
 postulates that several different needs can be operating at once
 has greater scientific support than Maslow’s hierarchy

 both theories remind managers of the types of reinforcers or rewards

that can be used to motivate people
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 Comparison Of Maslow’s Need 1 - 69

Hierarchy And ERG Theory

S
actu elf-
aliza th
tion Grow

Ego

s s
Soc
ia l e lat edne
R

Safe
ty
Phy
sio logi xis tence
c al E
Mas
lo w
l d erfer
A
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 1 - 70
The Contributions Of Teams

Building block
for organization
structure
Force for Force for
innovation productivity

Effects on
Force for organizations Force for
change quality

Force for Force for

speed cost reduction

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 1 - 71
Benefits Of Groups

 Benefits derived by organizations

 groups have greater total resources than individuals do
 groups have a greater diversity of resources

 groups can aid decision making

 Benefits derived by members

a group is a useful learning mechanism
 a group can satisfy important personal needs

 group members can provide one another with feedback

 identify opportunities for growth and development

 train, coach, and mentor

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 1 - 72
The New Team Environment

 Definitions

 working group - collection of people who work in the same

area or have been drawn together to undertake a task
 do not necessarily come together as a unit and achieve significant
performance improvements
 team - small number of people with complementary skills who
are committed to a common purpose, common performance
goals, and a common approach for which they hold themselves
mutually accountable
 real teams are more fully integrated into the organizational
structure
 authority of teams is increasing

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The New Team Environment
Traditional environment
•Managers determine and plan the
work
•Jobs are narrowly defined
•Cross-training is viewed as
inefficient
•Most information is “management
property”
•Training for nonmanagers focuses
on technical skills
•Risk taking is discouraged and
punished
•People work alone
•Rewards based on individual
performance
•Managers determine “best methods”
McGraw-Hill
1 - 73
Team environment
•Managers and teams jointly determine
and plan the work
•Jobs require broad skills and knowledge
•Cross-training is the norm
•Most information is freely shared
•Continuous learning requires training
for all
•Encourage and support measured risk
taking
•People work together
•Rewards based on contributions to the
team and individual performance
•Everyone works to improve methods
and processes
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 1 - 74
Improving Communication Skills

 Improving sender skills

 presentation and persuasion skills
 redundancy - state your viewpoint in a variety of ways
 powerful messages are simple and informative

 writing skills - require clear, logical thinking

 strive for clarity, organization, readability, and brevity
 first draft rarely is as good as it could be

 be critical of your own writing

 language - word choice can enhance or interfere with

communications
 consider the receiver’s background and adjust your language
 learn something about foreign language for overseas business

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 Improving Communication Skills 1 - 75

(cont.)
 Nonverbal skills
 signalsother than those that are spoken or written
 can support or undermine the stated message

 nonverbal cues may make a greater impact than other signals

 can send a positive message with nonverbal signals by:

 using time appropriately

 arranging the office to foster open communication

 remembering your body language

 facial expression and tone of voice

 Nonverbal signals in different countries
 need to correctly interpret the nonverbal signals of others
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 Improving Communication Skills 1 - 76

(cont.)
 Improving receiver skills
 listening - good listening is difficult and not nearly as common as
needed
 reflection - process by which a person states what s/he believes the
other person is saying
 listening begins with personal contact

 good listening leads to development of trust

 listening more important for innovation than for routine work

 reading - reading mistakes are common and costly

 read memos promptly and carefully
 note important points for later referral

 read materials outside of your immediate concerns

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 1 - 77
Ten Keys To Effective Listening

1. Find an area of interest

2. Judge content, not delivery
3. Hold your fire
4. Listen for ideas
5. Be flexible
6. Resist distraction
7. Exercise your mind
8. Keep your mind open
9. Capitalize on thought speed
10. Work at listening

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 1 - 78
Managing Change

 Organizational change is managed effectively when:

 the organization is moved from its current state to a planned future
state
 the change works as planned

 the transition is accomplished without excessive costs to the

organization or to individual organizational members

 People are the key to successful change
 people must take an interest and active role in helping the
organization as a whole
 permanent rekindling of individual creativity and responsibility

should be a consequence of change

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 1 - 79
Managing Change (cont.)

 Motivating people to change

 people must be motivated to change
 people often resist change
 general reasons for resistance - arise regardless of the content
of the change
 inertia - people don’t want to disturb the status quo
 timing - managers should introduce change when people are

receptive
 surprise - resistance is likely when change is sudden, unexpected,

or extreme
 peer pressure - work teams may band together in opposition to

change
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 1 - 80
Managing Change (cont.)

 Motivating people to change (cont.)

 change-specific reasons for resistance - arise from the specific nature of
a proposed change
 self-interest - fear that something of value will be lost
 misunderstanding - people may resist because they don’t fully understand

the purpose of the change

 different assessments - employees receive different - and usually less -

information than management receives

 such discrepancies in knowledge cause people to develop different assessments of
proposed changes
 management tactics - many fail to commit employees to change
 force the change on employees
 do not provide the necessary resources, knowledge, or leadership

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 1 - 81
Reasons For Resistance To Change

General Reasons For Resistance

Peer
Inertia Timing Surprise
pressure

Resistance to Change

Different Management
Self-Interest Misunderstanding
assessments tactics
Change-specific Reasons for Resistance
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 1 - 82
Implementing Change

Unfreezing Refreezing
Moving
(breaking from (reinforcing and
(instituting
the old ways of supporting the
the changes)
doing things) new ways)

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 1 - 83
Characteristics Of Controls

System control Features and requirements

Bureaucratic control Uses formal rules, standards, hierarchy, legitimate

authority. Works best where tasks are certain and
workers are independent.

Market control Uses prices, competition, profit centers, exchange

relationships. Works best where tangible output can
be identified and market can be established between
parties.

Clan control Involves culture, shared values, beliefs, expectations,

and trust. Works best where there is “no one best
way” to do a job and where employees are
empowered to make decisions.
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