Management 301 - exam #1 PDF

Preview

Summary

Duchon - Exam #1 notes...

Description

Management 301 Exam #1 Chapter 1: The World of Innovative Management The nature of management is to motivate & coordinate others to cope with diverse & farreaching challenges Management: attainment of organizational goals in an effective & efficient manner through planning, organizing, leading, & controlling organizational resources  Effectiveness: degree to which the organization achieves a stated goal  Efficiency: amount of resources used to achieve organizational goal  Best managers are “future-facing” o Design organization & culture to anticipate threats & opportunities from environment, challenge the status quo, & promote creativity, learning, adaptation, & innovation  Ultimate responsibility  achieve high performance

Peter Drucker  Credited with creating modern study of management Basic Functions of Management 1. Planning: identifying goals for future organizational performance & deciding on tasks & use of resources needed to attain them a. Set objectives & decide activities 2. Organizing: assigning tasks, grouping tasks into departments, delegating authority, & allocating resources across the organization a. Organize people & activities 3. Leading: use of influence to motivate employees to achieve organizational goals a. Create shared culture & values b. Motivate & communicate goals

4. Controlling: monitoring employees’ activities, determining whether the organization is moving toward its goals, & making corrections as necessary a. Place less emphasis on top-down control & more emphasis on training employees to monitor & correct themselves b. Measure & develop people

Organization: social entity that is goal-directed & deliberately structured  Social entity: being made up of two or more people  Goal directed: designed to achieve some outcome o Ex. Target w/ profit or meeting spiritual needs w/ Lutheran Church  Deliberately constructed: tasks are divided, & responsibility for their performance is assigned to organization members Management Skills  3 categories: o Conceptual skills cognitive ability to see the organization as a whole system & the relationships among its parts  Knowing where one’s team fits in total org & how org fits into industry, community, & social environment  Ability to think strategically  Broad, long-term view  Important to all managers, but mainly top managers  Decision making, resource allocation, & innovation o Human skills: manager’s ability to work with & through other people & to work effectively as a group member  Way manager relates to people



 Ability to motivate, coordinate, facilitate, & resolve conflict  Important for frontline managers who work with employees directly on daily basis  Motivational skill is single most important factor in whether people feel engaged with their work & committed to the org o Technical skills: understanding of & proficiency in the performance of specific tasks  Mastery of methods & techniques  Specialized knowledge & analytical ability  Important at lower organizational levels, but less important as managers move up hierarchy When skills fail o Good management skills are not automatic

Management Types  Vertical differences o First-line managers  Title  Supervisor, line manager, section chief, office manager  Primary focus: facilitating individual employee performance  Responsibilities  Teams & non-management employees  Application of rules & procedures to achieve efficient production  Technical assistance  Motivate subordinates  Day-to-day goals (short time horizon) o Middle managers  Title  Department head, division head, manager of quality control, director of research lab  Project manager: responsible for temporary work project that involves the participation of people from various functions & levels of the org  Primary focus: linking groups of people, such as allocating resources, coordinating teams, or putting top management plans into action across org  Responsibilities  Implementing overall strategies & policies defined by top management  Figure out ‘how’ to do the ‘what’ o Top-level managers  Title  president, chairperson, executive director, CEO

Primary focus: monitoring external environment & determining the best strategy to be competitive  Responsibilities  Setting organizational goals & defining strategies for achieving them  Monitoring & interpreting external environment  Making decisions that affect whole org  Look at long-term & trends  Communicating vision Horizontal differences o Functional managers: responsible for departments that perform single functional tasks & have employees with similar training & skills  Departments include:  Advertising, sales, finance, HR, manufacturing, accounting, etc.  Line managers: responsible for manufacturing & marketing departments that make or sell the product or service  Staff managers: in charge of departments  Ex. HR or finance that support line departments o General managers: responsible for several departments that perform different functions  Responsibilities  Self-contained division & all functional departments within it o Ex. Nordstrom department or Honda assembly plant Project managers also have general management responsibility because  they coordinate people across several departments to accomplish a task 



What is a Manager’s Job Really Like?  Making the leap: becoming a new manager o First-line supervisors experience the most job burnout & attrition o Personal identity: letting go of deeply held attitudes & habits & learning new ways of thinking  Manager Activities o Multitasking o Characterized by variety, fragmentation, & brevity o Fast-paced & requires great energy





o Time Management: using techniques that enable you to get more done in less time & with better results, be more relaxed, & have more time to enjoy. Your work & your life  One of managers greatest challenges  Tips  Schedule work day  ABC’s  Do one thing at a time  Keep to-do list Manager roles o Role: set of expectations for a manager’s behavior  Informational  Managing by information  Interpersonal  Managing through people  Decisional  Managing through action Managing in small business & NPOs o Small businesses  Emphasize roles different from those of managers in large corps  Most important role: spokesperson & entrepreneur o NPOs  Focus: keeping organizational costs as low as possible  NPOs that obtain revenue such as universities or hospitals have to contend with a bottom line  Greater stress  Most important roles: spokesperson, leader, & resource allocator

Chapter 2: The Evolution of Management Thinking Holocracy: radical system of self-management  Theory Y  Ex. Zappos removing all titles The Historical Struggle: Things of Production v. Humanity of Production



“The best management is true science, resting upon clearly defined laws, rules, & principles” - Frederick Taylor o Father of scientific management

Management Styles Classical perspective: rational, scientific approach to management & seeks to turn organizations into efficient operating machines  19th century & early 20th centuries (1880 -1920)  Assumed universalist view  Primary focus: things of production  4 subfields o Scientific management: emphasizes scientifically determined jobs &. Management practices as way to improve efficiency & labor productivity  Frederick Taylor & Henry Gantt  Gantt Chart: bar graph that measures planned & completed work along each stage of production by time elapsed  Gilbreth  Time & motion study  Stressed efficiency & known for his quest to find the one best way

ork for oyees

o Bureaucratic organizations: emphasizes management on an impersonal, rational basis through elements such as clearly defined authority & responsibility, formal recordkeeping, & separation of management & ownership  Max Weber (1864-1920)  Ideal bureaucracy o Division of labor o Positions organized in hierarchy of authority o Managers subject to rules. &. Procedures that will ensure reliable, predictable behavior o Management separates from ownership of the org Administrative acts & decisions recorded in writing o Personnel selected & promoted based on technical qualifications  More adaptable to change  Employee selection & advancement based not on who you know, but what you know  Threat to basic personal liberties, but most efficient & rational form of organizing  Equal treatment & everyone knows rules  Ex. employees must wear protective eye equipment when using machines o Administrative principles: focuses on total organization rather than individual worker & delineates the management functions  Henri Fayol (1841-1925)  General principles of management o unity of command – each subordinate receives orders from only one superior o division of work – managerial work & technical work are amenable to specialization to produce more & better work with the same amount of effort

o unity of direction – similar activities in an organization should be grouped together under one manager o scalar chain – chain of authority extends from the top to the bottom of the organization & should include every employee  5 basic functions o Planning, organizing, commanding, coordinating, & controlling  Spaulding  Father of African-American management  8 fundamental necessities o authority & responsibility – should be a manager who has the responsibility & authority to decide on every fundamental issue o division of labor –departmental divisions should function separately under direction of managers o adequate manpower – must be reliable system for acquiring & training best employees o cooperation & teamwork – cooperation, unity, & regular communication among managers is essential o Management science (quantitative perspective): uses mathematics, statistical techniques, & computer technology to facilitate management decision making for complex problems  Operations research: mathematical model building & other applications of quantitative techniques to managerial problems  Operations management: field of management that specialized in the physical production of goods or services  Science to solve manufacturing problems  Ex. inventory modeling, break-even analysis  Information Technology (IT): reflected in management info systems designed to provide relevant info to managers in a timely & cost-efficient manner  Ex. Disney FastPasses Humanistic Perspective: emphasizes understanding human behavior, needs, & attitudes in the workplace  Follett & Barnard o Concept of empowering o Informal organization  occurs in all formal organizations & includes cliques, informal networks, & naturally occurring social groups o Acceptance theory of authority: people have free will & can choose whether to follow management orders

 

People typically follow orders because they perceive positive benefits, but the do have a choice

3 subfields o Human Relations Movement: stressed satisfaction of employees’ basic needs as the key to increased productivity  Hawthorne Studies: series of research efforts that was important in shaping ideas concerning how managers should treat workers  Relay Assembly Test Room (RATR) o Most famous study that lasted 6 years o Factor that best explained increased output was human relations  Employees responded better when managers treated them in positive manner  Dairy farm view of management  Just as contented cows give more milk, satisfied workers will produce more work o Human Resources Perspective: suggests that jobs should be designed to meet people’s higher-level needs by allowing employees to use their full potential  Combines prescriptions for design of job task with theories of motivation  Jobs should be designed so that tasks are not dehumanizing, but allow workers to use their full potential  Maslow & McGregor  Hierarchy of needs o 1.) physiological needs o 2.) safety o 3.) belongingness o 4.) esteem o 5.) self-actualization  Theory X v Theory Y o Theory X (classical perspective)  Average human has inherent dislike for work & will avoid if possible  Most people must be coerced, controlled, or threatened with punishment to get them to put forth effort of objectives  Average human prefers to be directed, wishes to avoid responsibility, & wants security above all o Theory Y  Expenditure of physical & mental effort in work is natural  Average human does not inherently dislike work  External control & threat of punishment are not only means to bring forth effort

 Person exercises self-direction  Orgs can take advantage of the imagination & intellect of all employees o Behavioral Sciences Approach: draws from psychology, sociology, & other social sciences to develop theories about human behavior & interaction in an org setting  Organization Development (OD) Recent Historical Trends  Systems thinking: ability. To see both distinct elements of a system or situation & complex & changing interaction among those elements o System: set of interrelated parts that function as a whole to achieve a common purpose  Subsystems: parts of a system, such as organization, that depend on one another o Synergy: the whole is greater than the sum of its parts  Organization must be managed as a coordinated whole o Allows managers to look for patterns of movement over time & focus on qualities of rhythm, flow, direction, shape, & networks of relationships that accomplish the performance o Circles of Causality



Contingency view: tells managers that what works in one organizational situation might not work in another o Each situation is unique

Innovative Management Thinking into the Future  Managing new technology-driven workplace o Big Data Analytics: technologies, skills, & processes for searching & examining massive, complex sets of data that traditional processing applications cannot handle to uncover hidden patterns & correlations  Just for online companies  Ex. Facebook suggesting friends & Match.com o Supply Chain Management: managing sequence of suppliers & purchasers & covers all stages of processing, from obtaining raw materials to distributing finished goods to consumers  Supply chain: network of multiple businesses & individuals that are connected through the flow of products or services  Managing new people-drive workplaces o Meaning is an important part of millennial’s agenda o Bossless work environments  Nobody gives orders & nobody takes them  Present new challenges  Money must be invested in ongoing training & development for employees  Culture must engage employees & support nonhierarchical environment o Using engagement to manage millennials  Engagement: people are emotionally involved in their jobs & are satisfied with their work conditions, contribute enthusiastically to meeting team & organizational goals, & feel a sense of belonging & commitment to the org & its mission o Environmental responsibility Historical Struggle: Is Social Business the Answer?  Social Business: refers to using social media technologies for interacting with &. Facilitating communication &. Collaboration among employees, customers, & other stakeholders o Being used to build trusting relationships with customers o Authentic relationships between managers & employees  New technology (thing of production) ass directly to the humanity of production

Chapter 3: The Environment & Corporate Culture External Environment: all elements existing outside the boundary of the organization that have the potential to affect the organization  Includes:





o Competitors, resources, technology, & economic conditions that influence that org Organizational Ecosystem: system formed by interaction among community of organizations in the environment o Includes orgs in all sectors of task & general environments that provide resource & information transactions, flows, linkages necessary for an org to thrive o Ex. Apple’s ecosystem includes hundreds of suppliers & millions of customers for the products it produces across several industries Components: o Task environment: sectors that conduct day-to-day transactions with the organization & directly influence its basic operations & performance  4 dimensions  Competitors  Suppliers  Customers  Labor market: represents people in environment who can be hired to work for the organization o Current labor forces affecting orgs  1.) Growing need for computer-literate knowledge workers  2.) Necessity for continuous investment in human resources through recruitment, education, & training to meet the competitive demands of the borderless world  3.) Effects of international trading blocs, automation, outsourcing, & shifting facility locations on labor dislocations o General environment: indirectly influences all organizations within an industry  6 dimensions  Economic – consumer purchasing power, unemployment rate, & interest rates o Creates large uncertainty for managers  Legal-political – government regulations at local, state, & federal levels, as well as political activities designed to influence company behavior o U.S. political system encourages capitalism & does not overregulate business o Influences OSHA & EPA o Dodd-Frank Act  Rule requiring that large public companies disclose the pay gap between their CEOs & rank-and-file employees o Companies work closely with national lawmakers

 

 

International Natural (earth) o Has no voice of its own & influence comes from other sectors  gov. regulation, consumer concerns, media, competitors’ actions, employees Technological Sociocultural - demographic characteristics, norms, customs, & values of the general population

Internal Environment: composed of current employees, management, & the corporate culture

Organization-Environment Relationship  managers must respond to uncertainty by designing the org to adapt to the environment  Environmental uncertainty o When external factors change rapidly, the org experiences high uncertainty  Adapting to the environment o The level of turbulence created by an environmental shift will determine the type of response that managers must make in order for the org to survive o Strategic Issues: events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives o Boundary spanning: links to & coordinates the organization with key elements in the external environment  Business intelligence  Results from using sophisticated software to search through internal & external data to spot patterns, trends, & relationships that might be significant  Big data analytics  Competitive intelligence (CI): activities to get as much information as possible about one’s rivals

o Companies may become involved in mergers or joint ventures to reduce environmental uncertainty  Mergers: two or more organizations combine to become one  Joint Venture: involves strategic alliance or program by two or more organizations Internal Environment: Corporate Culture  Culture: set of key values, beliefs, understandings, & norms shared by members of an organization o Analyzed at 2 levels:  Surface level  Visible artifacts – all things one can see, hear, & observe by watching members of the org o Manner of dress o Physical symbols o Patterns of behaviors o Organizational ceremonies o Office layouts  Deeper level  Invisible – not observable but can be discerned from how people explain & justify what they do o Values & beliefs o Factors  Symbols: object, act, or event that conveys meaning to others  Rich, nonverbal language that vibrantly conveys org’s important values concerning how people relate to one another & interact with the environment  Stories: narrative based on true events that is repeated frequently & shared among organizational employees  Hero: figure who exemplifies the deeds, character, & attributes of a strong culture  Role models for employees to follow  Influence culture even after they are gone  Slogans: phrase or sentence that succinctly expresses a key corporate value  Can be included i...