About:
I decided to audit the summer Intro to Management class to prep for the PBL management concepts competitive event. To audit a class means to attend (a class) informally, not for academic credit.
Professor Denis Hamilton is teaching the course, and he set up the course to be very engaging. I liked that he included a handful of relevant videos to further explain management ideas and the amount of group work.
Below on the right is the table of contents for the custom course textbook.
Lecture 1:
What is "management"?
Simply put, it is Right Work Done Well.
We will look at all sorts of management, focusing on Strategic Management, Performance Management, Global Management, and Managing Innovation & Growth.
Simply put, it is Right Work Done Well.
We will look at all sorts of management, focusing on Strategic Management, Performance Management, Global Management, and Managing Innovation & Growth.
While reading the material, make sure to identify and categorize ideas as one of these four labels.
- Definition
- Method (ex. forming a strategy)
- Tool (ex. Six Sigma, external analysis to develop strategy)
- Concept (ex. Taylor Scientific management)
Also make sure to read carefully management practices shown in (HBR) case studies. Learn from others' mistakes to make sure you do not make them in the future.
HBR: "Does Management really work?" by Bloom, Sadun, Van Reenan
HBR: "Does Management really work?" by Bloom, Sadun, Van Reenan
3 core management elements claimed: targets, incentives, monitoring
The authors evaluated several US companies based on those 3 management elements.
Some results:
The authors evaluated several US companies based on those 3 management elements.
Some results:
- Only 15% of US companies got 5/5 in their evaluation
- And 79% of managers claimed they're above average (meaning their lousy at self evaluation)
Question asked: Why is it so difficult to adopt improved management skills?
- Progress doesn't happen over-night (long-term)
- Progress doesn't happen over-night (long-term)
- Need burning plate -> motivation
- Resistance can be overcome with small successful trials (example of Performance Management)
- Resistance can be overcome with small successful trials (example of Performance Management)
Management History
Management schools of thought can be broken down to three main shifts in thinking.
1. Scientific Management School (1880-1940) (Fred Taylor, Henry Ford and his assembly-line)
2. Behavioural Management School (1940-1980) (Hawthorne Studies, Douglas McGregor, Elton Mayo)
3. Strategic Management School (1980-present)
During the Scientific period, management dehumanized work. They were all about determining the "one best way" to maximizing profits. Jobs were simplified to so they can be quickly learned. There were minimum benefits and no unions were allowed. Laws, rules, and principles were set up to prevent deviations in work and increase worker efficiency. (Think of Henry Ford's 1908 innovative assembly-line. To increase efficiency, he 1. observed the work and 2. put in rules to increase productivity).
During the Behavioural period, management looked at the people-aspect of workers and they managed their workers' feelings about their work. Mary Follet argued "power with rather than power over employees". In the Hawthorne Studies, managers learned productivity increases after getting employees engaged, (ie. asking them for feedback, how they felt). By getting employees engaged by involving them in managerial discussion and allowing group dynamics, employees' work pro-activeness went up and overall productivity increased.
Theory X & Theory Y by McGregor (1960s) describe two contrasting workforce motivation theories, with Theory X assuming employees are inherently lazy and Theory Y assuming employees are self motivated.
Theory Z was popularized in the 1980s; it incorporates Japanese emphasis on collective decision making and concern for employees with American emphasis on individual responsibility.
Strategic Management theories looked at broader scale - industry. It integrates both perspectives 1 & 2, focusing on leadership and innovation. Bruce Henderson (1963) used business analytics to study industries. Peter Drucker(1964) had a way with conveying results with the public in his logical books.
John Galbraith (1967)
Michael Porter (1980) - competitive strategy (5 forces)
(1985) - competitive advantage (value chain)
Jensen (1980) - Agency Theory
M. Hammer (1990) - Reengineering
We focused on Strategic Management the most. I'm guessing it's because that's the Professor's specialty.
Strategy - An action plan to outperform competitors in growth and profitability by doing something unique.
Steps to develop strategy: (method)
1. Q) What is the present situation?
- identify conditions and capabilities of workers
2. Q) Where do we want to go?
- create vision
3. Q) How are we going to get there?
- create action plan
Building Competitive Advantage: (method)
- low-cost provider (ie. WALMART)
- differentiation on features (ie. Apple)
- focus on market niche (ie. Tesla)
- best-cost provider88
A strategy is effective iff it is adaptive. A proactive concrete-plan should not be your strategy. An emergent strategy is defined to be a set of actions, or behaviour, consistent over time, developing a pattern not expressed intendedly in the original planning phase. Basically, having an emergent strategy implies an organization is learning what works in practice; it may help a business adapt more flexibly to the practicalities of changing market conditions.
[proactive] -------------v
(plan) [current strategy]
[reactive] --------------^
(what we learn)
Customer's value proposition: (Value derived from doing business)
If you offer superior value proposition, then you need only to educate the customer about your product. Otherwise, you need to sell like crazy to get people to buy.
Profit formula: P-V-C (profit, value, cost)
V > P to sell
P > C to profit
3 tests for a strategy:
- performance test
- comparative advantage test (attain significant & sustainable comparative advantage)
- strategic fit test (internal & external business fit)
1. Scientific Management School (1880-1940) (Fred Taylor, Henry Ford and his assembly-line)
2. Behavioural Management School (1940-1980) (Hawthorne Studies, Douglas McGregor, Elton Mayo)
3. Strategic Management School (1980-present)
During the Scientific period, management dehumanized work. They were all about determining the "one best way" to maximizing profits. Jobs were simplified to so they can be quickly learned. There were minimum benefits and no unions were allowed. Laws, rules, and principles were set up to prevent deviations in work and increase worker efficiency. (Think of Henry Ford's 1908 innovative assembly-line. To increase efficiency, he 1. observed the work and 2. put in rules to increase productivity).
During the Behavioural period, management looked at the people-aspect of workers and they managed their workers' feelings about their work. Mary Follet argued "power with rather than power over employees". In the Hawthorne Studies, managers learned productivity increases after getting employees engaged, (ie. asking them for feedback, how they felt). By getting employees engaged by involving them in managerial discussion and allowing group dynamics, employees' work pro-activeness went up and overall productivity increased.
Theory X & Theory Y by McGregor (1960s) describe two contrasting workforce motivation theories, with Theory X assuming employees are inherently lazy and Theory Y assuming employees are self motivated.
Theory Z was popularized in the 1980s; it incorporates Japanese emphasis on collective decision making and concern for employees with American emphasis on individual responsibility.
Strategic Management theories looked at broader scale - industry. It integrates both perspectives 1 & 2, focusing on leadership and innovation. Bruce Henderson (1963) used business analytics to study industries. Peter Drucker(1964) had a way with conveying results with the public in his logical books.
John Galbraith (1967)
Michael Porter (1980) - competitive strategy (5 forces)
(1985) - competitive advantage (value chain)
Jensen (1980) - Agency Theory
M. Hammer (1990) - Reengineering
We focused on Strategic Management the most. I'm guessing it's because that's the Professor's specialty.
Strategy - An action plan to outperform competitors in growth and profitability by doing something unique.
Steps to develop strategy: (method)
1. Q) What is the present situation?
- identify conditions and capabilities of workers
2. Q) Where do we want to go?
- create vision
3. Q) How are we going to get there?
- create action plan
Building Competitive Advantage: (method)
- low-cost provider (ie. WALMART)
- differentiation on features (ie. Apple)
- focus on market niche (ie. Tesla)
- best-cost provider88
A strategy is effective iff it is adaptive. A proactive concrete-plan should not be your strategy. An emergent strategy is defined to be a set of actions, or behaviour, consistent over time, developing a pattern not expressed intendedly in the original planning phase. Basically, having an emergent strategy implies an organization is learning what works in practice; it may help a business adapt more flexibly to the practicalities of changing market conditions.
[proactive] -------------v
(plan) [current strategy]
[reactive] --------------^
(what we learn)
Customer's value proposition: (Value derived from doing business)
If you offer superior value proposition, then you need only to educate the customer about your product. Otherwise, you need to sell like crazy to get people to buy.
Profit formula: P-V-C (profit, value, cost)
V > P to sell
P > C to profit
3 tests for a strategy:
- performance test
- comparative advantage test (attain significant & sustainable comparative advantage)
- strategic fit test (internal & external business fit)
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