Final Notes - Intro to Management PDF

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Overview of Management Monday, July 4, 2016

11:59 AM

Types of Managers: - Top Level - Middle Managers - First-Line Managers Management Functions - Planning ○ Setting goals and deciding on action ○ Developing rules and procedures ○ Developing budgets and plans - Organizing ○ Identifying jobs to be done ○ Hiring people to do them ○ Establishing departments ○ Establishing a chain of command ○ Delegating - Leading ○ Influencing others to get the job done ○ Maintaining Morale ○ Molding company culture ○ Managing conflicts and communication - Controlling ○ Setting standards ○ Comparing performance with standards ○ Taking corrective action Main differences between types of managers - Time Horizon (how far out they plan) - Scope of their work Management Skills - Conceptual - Human - Technical Mintzbergs Managerial Roles - Interpersonal Roles ○ Figurehead ○ Leader ○ Liaison - Informational Roles ○ Monitor ○ Disseminator ○ Spokesperson - Decisional Roles ○ Entrepreneur ○ Disturbance Handler

○ Resource Allocator ○ Negotiator Top 3 Mistakes Managers make - Insensitive to others: abrasive, intimidating, bullying style - Cold, aloof, arrogant - Betray Trust

Self-Management Tuesday, July 5, 2016

1:43 PM

Self-Management Process: - Self-Assessment and Planning ○ Common Mistakes  Not having any standards  Ignoring Important parts of our identities Goal Setting ○ Common Mistakes  Failing to set goals  Setting vague goals  Failing to follow through with goals - Self-and-Environmental Control ○ Common mistakes  Allowing negative emotions or habits to derail us  Allowing others to control your time - Evaluating and Rewarding Progress ○ Common Mistakes  Rewarding yourself too early, too late, or too much  Punishing yourself if you fail S.M.A.R.T. Goals - Specific - Measurable - Attainable - Relevant/Realistic - Timely Emotional Control Activities - Count your Blessings (Martin Seligman) Morgenstern's time management tips - Delete - Delay - Diminish - Delegate Webber Article - How do stars use their networks ○ They create bartering networks - Key characteristics of Stars ○ Elements of Initiative  Doing something above and beyond your job description  Helping other people  Some element of risk-taking  Seeing an activity through to completion ○ Rules of initiative  Before you take on anything new, make sure that you're doing your assigned job well.  Remember that social initiatives don't count for much  The kind of initiatives that matter to your career are those that relate to the company's critical path

Managing Teams Tuesday, July 5, 2016

2:27 PM

Advantages of Teams/Groups - Improve customer satisfaction - Improve product/service quality - Improve Employee job satisfaction - Improve some steps in the decision making process Team Productivity Equation - Actual productivity = Potential Productivity + Process Gains - Process Losses Process Gains and Losses - Gains ○ Information Exchange ○ Load Balancing ○ Social Facilitation - Losses ○ Group Maintenance (unavoidable) ○ Social Loafing ○ Production Blocking Norms (How to set and maintain) - Formal written agreements made early in team formation - Team manager's repeated actions - Team's responses to critical events Work-Team Characteristics - Team Norms - Team Cohesiveness - Team Size - Team Conflict - Stages of Team Development Enhancing Work-team Effectiveness - Setting Team goals and priorities - Selecting team members - Team Training - Team Compensation Two Main Roles Team Members Play - Task Role - Social Role Types of conflict - Task Conflict (beneficial) - Relationship Conflict (harmful) Nominal Group Technique - Working independently for a while and then bringing everyone's individual ideas together

Characteristics of good team meetings - Have a written agenda - Start and end on time - Begin with a review - Have clear ground rules for decision making - Include time for questions and debate - Encourage equal participation - End with summary of who is doing what, when Cohesiveness and how to build - All members present at meetings - Arrange additional time to work together - Do something non-work together - Create a special identity for yourselves Maximizing benefits of diversity - Get to know one another's backgrounds - Create time/space for questions to clarify meaning - Assume best intentions

Ethical Decision Making Sunday, July 10, 2016

12:56 PM

Types of Deviance - Production Deviance ○ Leaving Early ○ Intentionally working slow ○ Wasting Resources - Property Deviance ○ Sabotaging equipment ○ Stealing from company - Political Deviance ○ Showing favoritism ○ Blaming coworkers - Personal Aggression ○ Sexual Harassment ○ Verbal Abuse ○ Endangering Coworkers Factors of ethical intensity - Magnitude of consequences - Social consensus - Probability of effect - Temporal Immediacy - Proximity of effect - Concentration of effect Stages of moral development - Punishment and Obedience ○ Avoid trouble for yourself - Instrumental Exchange ○ Less worry about punishment ○ Directly advancing your wants and needs - Good Boy, Nice Girl ○ Mimicking what the good boys and girls do - Law and Order ○ External guidance and following laws - Social Contract ○ Focusing on what betters society - Universal Principle ○ You have internalized your principles of right and wrong and prioritize that over laws or societal pressures Ethical Principles - Long-term self-interest ○ Never take an action that is not in your or your organization's long-term self-interest - Religious Injunctions ○ Never take an action that is unkind or that harms a sense of community Government Requirements ○ Never take an action that violates the law

- Individual Rights ○ Never take an action that infringes on others' agreed-upon rights - Personal Virtue ○ Never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV - Distributive Justice ○ Never take any action that harms the least fortunate among us in some way - Utilitarian Benefits ○ Never take an action that does not result in greater good for society Steps in Ethical Decision Making Model - Identify the Problem - Identify the constituents - Diagnose the situation - Analyze your options - Make your choice - Act

Social Responsibility Sunday, July 10, 2016

2:50 PM

Shareholder vs. Stakeholder View - Shareholder ○ Purpose of business is to maximize profit - Stakeholder ○ Purpose of business is to create value for society Corporate Social Responsibility - A business's obligation to pursue policies, make decisions, and take actions that benefit society ○ Economic ○ Legal ○ Ethical ○ Discretionary CSR relationship with economic performance - There is generally a small positive relationship between social responsibility and economic performance Responsibility strategies - Reactive ○ Company does less than society expects - Defensive ○ Admits responsibility for a problem but does the least required to meet societal expectations - Accommodative ○ Accepts responsibility for a problem and does all that society expects to solve that problem - Proactive ○ Anticipates a problem before it occurs and does more than society expects to take responsibility for and address the problem

BP's story - BP reports multiple bottom lines (triple bottom line) - BP was the first to acknowledge links between carbon dioxide emissions and climate change (1997) - During the Horizon Spill ○ CEO and a lot of other top management stepped down acknowledging their mistakes ○ Spent 14 billion in operation response ○ Committed 1 billion to gulf coast line rebuilding What is ethonomics - The idea that ethical behavior is necessary for financial success Components of a triple bottom line - People - Profit - Environment

Stonyfield's mission & practices - Mission ○ Using the power of business to change the world and make it more green - Practices ○ By slimming packaging and re-using factory bio-waste ○ Purchasing organic materials

Global Management Tuesday, July 12, 2016

9:02 PM

Forces for internationalization - Modern Communication Technology - Air Travel - Corporate Globalism Internationalization Process (5 Big Options) - Exporting - Cooperative Contracts - Strategic Alliances - Wholly Owned Affiliates - New Global Ventures Two Different types of Cooperative Contracts - Licensing Agreement ○ A domestic company receives royalty payments for allowing another company to produce its product, sell its service, or use its brand name in a particular foreign market - Franchise ○ A collection of networked firms in which the manufacturer or marketer of a product or service licenses the entire business to another person or organization Problem at Mustang Jeans - A complete disconnect between the business and communication cultures of the Japanese and American businessmen High/Low Context Cultures - High Context ○ Cultures in which nonverbal and situational messages convey meaning ○ Relationship more important than terms - Low Context ○ Cultures in which words convey primary meaning ○ Nonverbal messages are secondary ○ The terms of the deal are more important than building a business relationship Hofstede's Dimensions - Long-term vs. short-term orientation - Uncertainty Avoidance - Masculinity vs. Femininity - Individualism vs. Collectivism - Power Distance Definitions of Tariff and non-tariff trade barriers - Tariff is a direct tax on imported goods - Nontariff barriers are nontax methods of increasing the cost or reducing the volume of imported goods ○ Quotas ○ Voluntary Export Restraints ○ Government import standards ○ Subsidies

○ Customs Classification Why do managers need to know about tariffs and trade Characteristics of attractive foreign business climate - Positions the company for easy access to growing markets - An effective but cost-efficient place to build an office or manufacturing facility - Minimizes the political risk to the company Preparing for an international assignment - Language and cross-cultural training - Consideration of spouse, family, and dual-career issues Zachary Article - What is a mongrel ○ Mixing is the new norm, the hybrid is hip, mighty is the mongrel - Why is it a good thing ○ Diversity feeds creativity which feeds innovation

Understanding the Business Environment Wednesday, July 13, 2016

12:27 PM

Environmental Scanning - What ○ Systematically searching the environment for events or issues that might affect an organization - Why ○ Keeps companies current ○ Reduces uncertainty ○ Alters organizational strategies ○ Contributes to organizational performance ○ Can help avoid confirmation bias - How ○ Systematically study environment characteristics and changes occurring ○ Interpret for impact on your business ○ Seek disconfirmation, look for evidence that contradicts your interpretation Components of General Environment - Economy - Technology - Sociocultural - Political/Legal Components of Specific Environment - Customers - Competitors - Suppliers - Industry Specific Laws/Regulations - Advocacy Group Levels of Culture - Surface Level (Seen) ○ Symbolic Artifacts ○ Behaviors - Expressed Values and Beliefs (Heard) ○ What people say ○ How decisions are made - Unconsciously Held Assumptions and Beliefs (Believed) ○ Beliefs and Assumptions ○ Rarely Discussed Confirmation Bias - The tendency of people to favor information that confirms our beliefs and avoid contradictory evidence. Characteristics that create uncertainty - Environmental change - Environmental Complexity - Resource Scarcity

Culture Formation and Maintenance - A primary source of organizational culture is the company founder who creates organizations in their own images and imprints them with their beliefs - Organizational Stories - Organizational Heroes

Control Wednesday, July 13, 2016

1:07 PM

Control Process - Set Standards - Measure Performance - Compare with Standards - Identify Deviations - Analyze Deviations - Take Corrective Actions Characteristics of Service Provision - Distinctive Service Characteristics ○ Customers participate ○ Services are consumed immediately ○ Services are provided where and when the customer desires ○ Services tend to be labor intensive ○ Services are intangible Quality in Service Provision (RATER) - Reliability (most important) - Assurance - Tangibles - Empathy - Responsiveness Planning/Control Tools, especially PERT & Gantt - PERT ○ T(e) = (T(o) + 4T(m) + T(p)) / 6 ○ Te = Time Estimate ○ To = Optimistic Time ○ Tm = Median Time ○ Tp = Pessimistic Time - Gantt Chart ○ A time chart that shows how long individual tasks are going to take and shows what tasks can overlap Three Types of Control - Feedforward Control ○ Monitoring Inputs ○ Anticipating and Preventing Problems - Concurrent Control ○ Monitoring Processes ○ Adjusting ongoing activities - Feedback Control ○ Monitoring Products ○ Leaning from past mistakes Methods of Control - Bureaucratic (Rules)

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Objective (Measures) Normative (Values & Beliefs) Concertive (Shaped by Groups) Self

Budgets, Performance reports, Variance Analysis - Budgets ○ Most Widely used control device ○ Many Budgets  Sales Budgets  Operating Budgets  Income Statements  Balance Sheet - Performance Report ○ Actual versus budgeted - Variance Analysis ○ Difference between performance and budgeted and reasons why Balanced Scorecard - Instead of looking at the traditional financial measures, look at this ○ How do customers see us (customer perspective) ○ At what must we excel (internal perspective) ○ Can we continue to improve and create value (innovation and learning perspective) ○ How do we look to shareholders (financial perspective) Components of Economic Value Added - Amount by which profits exceed the cost of capital in a given year - How to Calculate? ○ Calculate net operating profit after taxes ○ Identify how much capital the company has invested ○ Determine the cost paid for capital (usually between 5 percent and 13 percent) ○ Multiply capital used by the cost of the capital ○ Subtract the total dollar cost of capital from net profit after taxes

Planning Wednesday, July 13, 2016

1:10 PM

Effective Missions - Unify company-wide efforts Getting into Business - Family-owned - Starting New - Buy Existing - Buy Franchise Getting funding - Equity - Debt - Awards from competitions Types of ownership - Propriertorship/Partnership ○ No separate business entity, you are the business ○ Personally liable for all business debts - Corporation ○ Is a separate business entity ○ Money is taxed twice, once when the corporation earns the money, the second time when dividends are paid ○ Separate liability - Subchapter S-Corporation ○ Typically what a proprietorship/partnership grows into - Limited Liability Company (LLC) ○ Creates a separate legal entity ○ Profit is passed through the owners ○ Shields owners from a lot of liability Key ideas behind 'burn your business plan' - Great oral presentation - Compelling Written Story - Effective web site - Hard-hitting financial projections

How to make a plan that works - Setting goals - Developing commitment to goals - Developing effective action plans - Tracking progress toward goal achievement - Maintaining flexibility in planning Types of plans, procedures, rules - Top managers create the organization's purpose statement and strategic objective - Middle managers develop tactical plans and use management by objectives to motivate employee efforts toward the overall purpose and strategic objective

- First-level managers use operational, single-use, standing plans to implement tactical plans Steps in rational decision making - Define the problem - Identify Decision Criteria - Weigh the Criteria - Generate Alternative Courses of Action - Evaluate each Alternative - Compute the optimal decision Nominal group and delphi techniques for group decision making - Nominal Group technique ○ Begins with a quiet time in which group members independently write down as many problem definitions and alternative solutions as possible. ○ Then each solution is shared and discussed - Delphi Technique ○ Members of a panel of experts respond to questions and to each other until reaching agreement on an issue

Changing Organizations Wednesday, July 20, 2016

3:35 PM

Technology Cycles - Begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology - S-Curve pattern of innovation ○ Early in a tech cycle, there is still much to learn, so progress is slow ○ Technology matures, researchers figure out how to get better performance from it, significant increases in performance. ○ Further efforts to develop this particular technology will result in only small increases in performance (performance limits) Experiential and Compression Innovation - Experiential ○ Assumes that innovation is occurring within a highly uncertain environment and that they key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding - Compression ○ Assumes that innovation is a predictable process, that incremental innovation can be planned using a series of steps and that compressing the time it takes to complete those steps can speed up innovation. Creative Work Environment Components - Organizational Encouragement - Supervisory Encouragement - Work Group Encouragement - Freedom - Lack or Organizational Impediments - Challenging Work Resistance to Change - Caused by self-interest, misunderstanding and distrust, and a general intolerance for change. Lewin's change model - Unfreezing ○ Getting people affected by change to believe that change is needed - Change Intervention ○ Workers and managers change their behavior and work practices - Refreezing ○ Supporting and Reinforcing the new changes so that they stick What to do when employees resist - Unfreeze ○ Share reasons ○ Empathize ○ Communicate - Change ○ Explain ○ Champion ○ Opportunities for feedback

○ Offer Security ○ Educate ○ Don't Rush Errors managers make (what not to do when leading change) - Unfreezing ○ Not establishing a great enough sense of urgency ○ Not creating a powerful enough coalition - Change ○ Lacking a vision ○ Under-communicating the vision by a factor of ten ○ Not removing obstacles to the new vision ○ Not Systematically planning for and creating short-term wins - Refreezing ○ Declaring Victory too soon ○ Not anchoring changes in the corporation's culture

Org. Development Interventions, 3 types and examples of each - Large-System Interventions ○ Sociotechnical Systems ○ Survey Feedback - Small-Group Interventions ○ Team Building ○ Unit Goal Setting - Person-Focused Interventions ○ Counseling ○ Training

Designing Organizations Wednesday, July 20, 2016

3:36 PM

Basic Departmentalization Structures: Benefits and Drawbacks - Functional Departmentalization ○ Organizes work and workers into separate units responsible for particular business functions or areas of expertise ○ Advantages  Highly qualified specialists  Reduces Duplication  Communication and Coordination are easier ○ Disadvantages  Cross-department coordination is difficult  Slower decision making  Managers and workers with narrow experience and expertise - Product Departmentalization ○ Organizes work and workers into separate units responsible for producing a particular product or service ○ Advantages  Allows specialization without narrow expertise  Easier to assess work-unit performance  Decision making is fast ○ Disadvantage  Duplication  Difficult to coordinate across different product departments - Customer Departmentalization ○ Organizes work and workers into separate units responsible for particular kinds of customers ○ Advantages  Focuses on customer needs  Allows specializing products and services to customer needs ○ Disadvantages  Duplication of resources  ...