MGMT 301 Study Guide PDF

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MGMT 301 Exam 1 Study Guide Professor Ronald Johnson...

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MANAGEMENT 301- EXAM 1 Study Guide 2014 Chapter 1: What is Management Traditional Pyramid vs. Inverted Pyramid Traditional Pyramid Inverted Pyramid CEO-> Reports to Board of Directors Customers/ Clients (for profit) or Trustees (non profit) Senior Managers Operating Workers Middle Managers Team Leaders/Middle Managers Front-Line Managers Top Managers Non Managerial Workers CEO (Board of Directors/Board of Trustees) Inverted Pyramid: Customers are on top with higher level managers supporting the employees who serve those customers Manager: Person who supports and who is responsible for the work of others Dudes! ! Develops! Skills of a leader: Love! ! Long-range view ! Develops Chipotle! Challenges Status Quo ! Long range view In PSU! ! Innovates ! Challenges status quo ! Innovates Skills of a manager: Men! ! Maintains ! Maintains Rail! ! Relies of control ! Relies on control Slutty!! Structure focus ! Structure focus Sloots!! Short term view ! Short-range view Skills of a manager according to Robert Katz: T.! ! Technical Skill ! Conceptual skill H. ! ! Human Skill ! Human Skill C.! ! Conceptual Skill ! Technical Skill Career Issues for Managers: Leadership Competencies ! -Globalization- Worldwide interdependence of resources; involves markets and business competition; the work world is being changed by recession, etc. ! ! -Job migration- global outsourcing: moving jobs to another country

! ! -Global Sourcing- Contracting for work that is done in other countries ! ! -Reshoring- Returning jobs from foreign to domestic locations ! -Governance- Board of directors oversees company’s management ! Intellectual Capital- Collective knowledge/skills/brainpower of workforce ! ! -Knowledge- workers who use their minds as assets to employer ! ! -Self-management- Understanding oneself, taking initiative, accepting responsibility, learning from experiences ! -Ethics- Standards for “good” and “right” behavior in the workplace ! -Diversity Management Process: Prostitutes! Planning ! Planning Orgasm! Organizing ! Organizing Lots! ! Leading ! Leading ! Controlling Planning- Setting objectives and figuring out how to achieve them Organizing- Arranging tasks, people and other resources to accomplish work Leading- inspiring people to work hard and achieve high performance Controlling- measuring performance and taking action to ensure desired results Three roles of a manager: ! Informational! ! Interpersonal ! Decisional Breakdown: ! Informational: ! ! -Monitor ! ! ! ! ! Interpersonal ! ! ! ! ! ! -Liaison ! Decisional ! ! -Negotiator ! ! -Resource ! ! -Disturbance

I’m! ! Informational Incoherent! Interpersonal Daily! ! Decisional

Disseminate!Steve Jobs Spokesperson gurehead Leader!

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Don Thompson

Allocator! ! Handler! !

! Elon Musk

! ! -Entrepreneur ! ! CEOs to Know: -McDonald’s- Don Thompson -Apple- Tim Cook (Steve Jobs) -Tesla- Elon Musk -W.L. Gore- Terri Kelly (INVERTED PYRAMID STRUCTURE) Smeal honor code: - We aspire to high ethical standards - We will hold each other accountable - We will not engage in any improper academic or professional actions - TODAY AND TOMORROW Chapter 2: Management Theory and Practice 1. Classical Management Approach: ! Frederick Taylor- Scientific Management ! ! Scientific Management ! ! ! -Develop a science for each job ! ! ! -Hire workers with right abilities ! ! ! -Train and Motivate workers ! ! ! -Support workers ! ! ! -GOAL: Secure max prosperity for employer and employee ! ! ! -Example: Henry Ford’s assembly line for mass production ! ! ! -Example 2: BMW factory ! Max Weber- Bureaucratic Organization ! ! Bureaucratic Organization ! ! ! -Clear division of labor ! ! ! -Hierarchy of authority ! ! ! -Formal rules and procedures ! ! ! -Impersonal ! ! ! -Careers based on merit ! ! ! -KEY: Power = the ability to coerce action ! ! ! -Authority: actions take voluntarily ! ! ! -Example: Space shuttle launch

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Henri Fayol- Administrative Principles Administrative Principles ! ! -Foresight/ planning ! ! -Organization ! ! -Command ! ! -Coordination

! ! ! -Control ! ! ! -Scalar Principle= Clear comm. for all levels of communication ! ! ! -UNITY OF COMMAND= ONE BOSS PER PERSON ***** 2. Behavioral Management Approach: (3 M’s)

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Elton ayo- Hawthorne Studies ! ! Hawthorne Studies ! ! ! Studied use of economic incentives by changing physical working conditions to foster group cohesion. ! ! ! RESULT: No direct relationships found. Groups have positive and negative influence on member behavior ! ! ! Major points: 1. Every physical change cause increase in production 2. Showing attention and having high expectations boosted production HAWTHORNE AFFECT: Tendency to live up to expectations Criticisms: study was conducted with same workers over five years, which could mean that team chemistry could have boosted production just because they had been working side by side for so long. ! !

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Abraham aslow- Human Needs Theory ! Hierarchy of Needs

5. Self 4. Esteem Needs

3. Social Needs

2. Safety Needs

1. Physiological Needs

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These are the 3 most important needs

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! ! Notes On Maslow’s Hierarchy of Needs: o In order of importance, one’s needs start at the bottom and go up o Most important needs come first, then the less vital needs o To reach the top of a ladder, one must start at the bottom Breakdown: ! ! -Physiological Needs: Food, Water, Shelter ! ! - In the workplace, companies make these needs a non-issue to increase productivity (water cooler, heating, cooling, vending machines, etc) ! ! - Safety Needs- Security and Protection (could include money) ! ! - Social Needs- Love, Belonging, Family, Friends, Relationships ! ! -Esteem Needs- Respect, Competence ! ! -“What matters is how you see yourself” ! -Self- Actualization: ! ! 1. Progression Principle- a need at any level becomes activated only after the next lower need is satisfied ! ! 2. Deficit Principle- People act to satisfy needs for which a satisfaction deficit exists; people are not motivated by already-satisfied needs. ! ! ! -Example: People get tired of their boyfriend/girlfriend because the desire they once felt to gain a relationship with that person has faded. ! ! -Achieving self-actualization is basically doing what you want

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Douglas cGregor- Theory X & Y ! -Worker Characteristics:

Theory X MGMT Theory Y MGMT Dislike Work Lack Ambition Follow Not Lead Resist Change

Willing to Work Capable/Creative Self-Controlled Self-Directed

Irresponsible

Responsible

! -KEYS: ! ! 1. Reflects ways managers manage today ! ! 2. Practically- a mix of both approaches used ! ! Example: Michael Scott in The Office ! ! ! Bad boss- micromanager, preoccupied with performance, do not share credit ! ! ! Good boss- humble, passionate, inspires workers not order them, shares credit, strives to get to know his employees, motivates, innovates 3.Modern Management Approach: -Modern Approaches to management 1. Operations and Management Science ! -Studies how organizations produce goods and services ! -Business Analytics, Big Data ! - Examples: Networking Models, Forecasting, Queuing Theory, Inventory Analysis, Linear Programming 2. (Customer-Driven) Open Systems ! -Transform resource inputs into product outputs ! -Resources in (people, money, materials, technology) > Work (Production) -> outputs created (finished goods, completed services) ! -Organizations are a complex network of subsystems Zara: Stands as perfect example for customer driven Open Systems ! ! ! -2,000 stores in 85 countries ! ! ! -Operations Management Keys ! ! ! -2 Week Design Cycle ! ! ! -Design Imitator ! ! ! -Attractive Price Points ! ! ! -Headquartered in Northern Spain 3. Contingency Thinking ! -Matches management practices with situational demands ! - Ex: Space program vs. Government 4.Quality Management/Evidence Based Management ! -Focuses on continuous improvement ! ! - Example: Six Sigma= a set techniques and tools and methodology to improve any process

! -Lean Principles= System utilized to identify and eliminate waste ! ! ISO Certification- Conforming with a rigorous set of international quality standards ! ! Chapter 3: Ethics in Business ! Ethics- Standards of good or bad, right or wrong, in conduct ! ! Values- Broad beliefs about what is considered appropriate behavior ! ! Hypernorms- Morals, values, and standards shared around the world ! ! Instrumental Values- Preferences about the means to reach an end ! ! Terminal Values- Preferences about desired end states ! The 4 Philosophical Views on Ethical Behavior: 1. Utilitarian View- (John Stuart Mill) Ethical behavior delivers the greatest good to the most people; results-oriented view of ethics 2. Individual View- Ethical behavior advances long-term self-interests; people become self-regulating as they strive for their own individual success over time 3. Justice View- Ethical behavior treats people fairly and impartially according to legal standards a. Procedural Justice- Fair application of policies and rules b. Distributive Justice- Treating people the same regardless of personal characteristics c. Interactional Justice- Degree to which other are treated with dignity and respect d. Commutative Justice- Fairness of exchanges or transactions 4. Moral Rights View- Ethical behavior respects and protects people’s fundamental rights Vocabulary: ! Cultural Relativism- There is not one correct way to behave; cultural context must be taken into account; Ethics vary across cultures ! Moral Absolutism-Imposing one’s own ethical standards on other cultures ! Ethical Imperialism-Attempting to impose one’s ethical standards on another culture ! Ethical Dilemma-Situation that, although offering a potential benefit, is also unethical

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! Ethical Behavior-Behavior that is right or good in the context of a governing moral code ! Unethical Behavior-Can include discrimination, sexual harassment, conflicts of interest, customer confidence (sharing privileged information), and inappropriate use of an organization’s resources. ! Ethical Framework-Personal rules for making ethical decisions ! ! Assessment of Ethical Issue or Situation: 1. Awareness 2. Facts-What is known? What isn’t known? 3. Stakeholders- Anyone (internal or external) who may have an interest in the issue 4. Standards-Laws, expectations 5. Values 6. Action- After assessing the situation, what is to be done about it? Lawrence Kohlberg’s 3 Levels of Moral Development: Through education, aging, and maturing we move through 3 stages of moral development 1. Preconventional Level-The individual is self-centered with moral thinking limited to issues of punishment, obedience and self-interest; decisions are made based only on personal gain and obeying rules 2. Conventional Level-Individuals focus more on the social concerns and base decisions on the following social norms, meeting others’s expectations, and meeting obligations 3. Post Conventional Level-(Principled Stage) A person is driven by core principles and personal beliefs and possesses a strong ethics framework Kohlberg’s Stages of Moral Development ! Stage 1-React to Punishment (Preconventional) ! Stage 2-Seek Rewards (Preconventional) ! Stage 3-Conform to Social Norms (Conventional) ! Stage 4-Law and Order/Society (Conventional) ! Stage 5-Individual Rights/Fairness(Postconventional) ! Stage 6-Universal Principles! (Postconventional) P.O.N.G. – Personal, Organizational, National, Global 5 Most Frequent Misconducts: 1. Misuse of Company Time (23%) 2. Abusive Behavior (21%) 3. Resource Abuse (20%)

4. Lying Employees (20%) 5. Internet Abuse (16%) Misdconduct Stats: ! -Workforce-138 Million ! -Workers who witnessed misconduct-62 Million (45%) ! -Of those who witnessed, reported misconduct-41 Million (65%) ! -Of those who reported, received retaliation-9 Million (22%) ! -Confidence in Snr. Leaders-Down from 69% (2009) to 62% (2011) % Of US workers Perceiving Pressure to Commit Misconduct: ! -Highest: 28% ! -Current: 13% (2011) ! -Lowest: 8% Branches of Ethics: ! Descriptive-What is ! Normative-What ought to be Ethics in Business: ! Immoral-One knows the action is wrong, but decides to do it anyway ! Moral-One knows the action is wrong, and chooses not to do it ! Amoral-One lacks moral sense; unconcerned with right and wrong Impact of Culture Leadership ! Trend- More and more companies reaching a level of a strong ethical culture ! ***58% of companies say they hit the level of a strong ethical culture Organizational Ethics Components: ! -Detection & -Leadership Prevention ! -Ethics officers ! - Compliance ! -Codes standards ! -Training ! -Avoid undue ! -Audits! authority -Industry standards ! -Communicate Factors Influencing Employee Unethical Behavior: 1. Behavior of superiors 2. Behavior of peers 3. Industry ethical practices

4. Societies moral climate 5. Policy (or lack thereof) 6. Personal financial situation Approach to Ethics: ! Rules: Found in a compliance document ! Ethics/Values: Found in a code of conduct

EXAM QUESTIONS GIVEN IN CLASS AND CLICKER QUESTIONS/ IMPORTANT THINGS TO KNOW: Q: What is a Fortune 500 Company? A: Largest companies by total revenue in U.S. Q: Skilled at opening a business (3 ways) A: Need a skill, need to lead and teach, and need business skills Q: What is not a skill of manager? A: Long range view Q: What is not a skill of a leader? A: Administrates Q: CEO reports to and hired by who? A: Board of Trustees (non- profit), Board of Directors (profit) Q: When an organization develops a top/down structure we call that? Traditional Q; Who is McDonald’s current CEO? Don Thompson Q: CEO of Tesla Motors, PayPal, and SpaceX? Elon Musk Q: Which would you say is not a fundamental role of a manger? Structural Q: What are the 3 mintzberg roles? Interpersonal, Informational, Decisional Q: When you conduct market research at your first job what skill is that? Technical Q: Emotional intelligence includes everything except? Ethical decision-making Q: Which item below is part of Taylor’s theory? Develop a science for each job IMPORTANT: Management has occurred down through history and everywhere. We focus on Western world from the 1800s. Examples: Macchu Picchu, pyramids. Q: Who developed bureaucratic thinking?

Max Weber Q: Fayol sought to fix this with a principal of? Unity of command = one boss per person Q: Which best explains results of Mayo’s Hawthorne study? Productivity increased no matter incentive IMPORTANT: Know Maslow’s Hierarchy of Needs Q: Your boss says he wants you to apply Maslow to the work unit. Where would you start? Assess current work groups to “Maslow” level Q; If I was practicing Theory Y in my workplace which below would be a characteristic? People are self directed IMPORTANT: Know Queing Theory (Walmart and Disney) and Zara case IMPORTANT: Spiderman Quote: “With Great Power Comes Great Responsibility” Q; From the PONG Model, which is most important? Personal Q: What is top category of corporate misconduct observed today? Misuse of company time IMPORTANT: Know Trends of Ethics Resource Center and Specific Number for % of US Workers Perceiving Pressure to Commit Misconduct IMPORTANT: Case: Calls Women Sweetie p.75 Q: Volunteer at Habitat, which level of Moral development are you practicing? Level 5- Fairness IMPORTANT: Know difference between Amoral, Immoral, and Moral IMPORTANT: #1 Factor influencing employee unethical behavior is behavior of superiors IMPORTANT: Six elements of values framework IMPORTANT: Difference between Rules and Ethics/Values

MGMT chapter 4 Decision Making -Chilean Miners video: • Decision making-president, Sebastian Pinera and shift leader Luis Urzua decide they’re going to search for the coal miners. Got technology help from around the world. 33 coal miners were found and alive. • Used interpersonal skills to help the miners keep hope -Agenda Decision-Making: 1. Decisions & Information 2. Decision Making Steps 3. Issues in Decision Making 1. Decisions & Information • Decision Making=problem solving Working on opportunities • Decisional Role, Analytical Role, Interpersonal Roles, Informational Role, Technical Competency, Information Competency • Roles= Mintzberg (exam 1) • Competencies=Decision Making -Decisional Roles: information used for entrepreneurship, resources, allocation, disturbance, handling, and negotiation  Computer literacy & interpersonal skills -Interpersonal Roles: information used for ceremonies, motivation, and networking  Interpersonal skills & information competency -Informational Roles: information sought, received, transferred among insiders and outsiders  Information competency & computer literacy -Managers & Problems: Problem Avoider, Problem Solver, Problem Seeker (solve before it turns into a problem/most important) -Problem Avoider: ignore information that would otherwise signal the presence of a performance threat or opportunity -Not active in gathering information, prefer not making decisions nor dealing with problems -Problem Solver: make decisions, try to solve problems but only when required -Responds to problems when they occur not before; likely to miss many performance opportunities -Amazon broadening consumers (changing logo so it states that they sell everything from A to Z) * CASE IN BACK OF BOOK

-Problem Seeker: always looking for problems to solve or opportunities to explore -Proactive; anticipate threats and opportunities

-Costa Concordia Cruise Ship Example: • Cruise ship went on a channel in Italy • Boat hit rocks and started to sink in shallow water • Captain left boat and passengers and went to shore himself • 33 people died • Ship sunk on its side o Problem Solver: get the money to the fix the ship. Took 6 months to fix -Penn State Ice Hockey • Was being built and funded as Sandusky Scandal was going on • Went and met with donator right away and made sure everything was going to be okay o Problem Seeker -Performance Threat: Anything degrading business -Performance Opportunity: Anything that could boost business • EX: Coca Coal vs. Honest Tea • Performance threat for Honest Tea: Coke could deny offer and mock the idea • Performance opportunity for Coke: could connect with Honest Tea and expand company -Systematic vs. Intuitive • Intuitive= mental thinking o Personality Preference function (huge leadership style) • Sensor- today and past information (practical applied) • Intuitive- concept, theory o EX: Going on a date  Sensor=what you do day to day  Intuitive= what are your values? What is your goal? • Thinking Decision 1. Problem 2. People • Feeling Decision maker 1. People 2. Problem • Cognitive Decision-Making Styles o Systematic thinking: approaches problems in a rational and analytical fashion

o Intuitive thinking: approaches problems in a flexible and spontaneous fashion  Sensation thinkers (Facts) • Tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving. They like hard facts, clear goals, certainty, and situations of high control  Intuitive thinkers (Theory / Concept) • Comfortable with abstraction and unstructured situations. They tend to be idealistic, prone toward intellectual and theoretical positions; they are logical and impersonal but also avoid details  Intuitive feelers (Facts / Feelings) • Prefer broad and global issues. They are insightful and tend to avoid details, being comfortable with intangibles; they value flexibility and human relationships  Sensation feelers (Thoughtful) • Tend to emphasize both analysis and human relations. They tend to be realistic and prefer facts; they are open communicators and sensitive to feelings and values -US Airways flight 1549 Chesley Sullenberger EXAMPLE: • Pilot has to make a decision to land plane in the Hudson • 1. Sensor (Analyze data) • 2. Intuitive Decision to land in Hudson -Risk (certain to uncertain) (programmed and non programmed) -Programmed decisions: applies a solution from previous experience to a routine problem -Non programmed decisions: applies to a specific solu...