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Terms
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- Management
- administering and coordinating resources effectively, efficiently, & in effort to achieve goals
- Efficiency
- (doing RIGHT things) using fewer inputs to create wanted outputs
- Effectiveness
- (doing RIGHT things) degree to which goals are met
- Organization
- group of people working towards common goal
- Management 4 Basic Functions
- 1. plan 2. organize 3. lead 4. control
- Plan
- determine goals and actions to achieve them
- Organize
- determine tasks, who will do them, & how they will be managed and organized
- lead
- motivate employees have vision share vision to employees to make it a reality
- Control
- know what is required in establishing goals measure what is being done see diff between planned and actual result take action for diff
- Role
- behavior expected in particular situation
- Henry Mintzberg
- studied actual behavior of managers 1.interpersonal 2.informational 3.decisional
- Interpersonal
- -relationship w/ members and constituents 1.figurehead 2.leader 3.liaison
- Figurehead
- community events and functions
- Leader
- responsible for success or failure of org make sure goals are met
- Liaison
- b/w individuals & work groups in org. develop favorable relationships with outside constituents
- Informational
- -communication source 1.monitoring 2.disseminator 3.spokesperson
- Monitor
- external & internal environment threats & opportunities
- Disseminator
- share info they receive to members can hold info
- Spokesperson
- share info to individuals outside of org
- Decisional
- -process info and find solution 1.entrepreneur 2.disturbance handler 3.resource allocator 4.negotiator
- Entrepreneur
- produce product, process, or service
- Disturbance Handler
- deal with conflict and find solution
- Resource Allocator
- decide which projects will receive resources time & info are resources
- Negotiator
- b/w employees, customers, suppliers, & work groups
- managerial scope of responsibility
- Functional: dpt. (acctg dept) General: whole (super market)
- Levels of Management
- 1. first line mgmt 2. middle mgmt 3. top level mgmt
- First line mgmt
- oversees those producing produce or delivering service TECHNICAL SKILLS: procedures, tools, processes
- Middle Managers
- Oversee first line mgmt HUMAN: coordinate efforts b/w 1 group with others
- Top-level managers
- oversee middle mgrs. CONCEPTUAL: take in all info, see org as whole, integrate, see how dpmts work together
- Operational Employees
- those not in mgmt that create product or deliver service
- Managing in 21st century
- 1.internet & info technology 2.incr. globalization 3.incr. diversity 4. intellectual capital 5. incr. ethics
- Internet & Info Technology
- 2002- 1/4 ebusinesses were profitable internet- instant feedback and info
- Globalization
- moving companies to other countries
- Increasing Diversity
- new challenges hard for diverse groups to reach common consensus training programs for employees to help with diversity competitive advantage
- Intellectual Capital
- total knowledge, experience, relationships, patents of org 1.structural 2.customer 3.human
- Structural Capital
- total knowledge of org represented by patents, trademarks, & copyrights
- Customer Capital
- value of relationship b/w customers and suppliers
- Human Capital
- cumulative knowledge & skills of org
- ethics: SOX
- businesses have to follow acctg rules to prohibit financial abuses
- Most Common Form of Control
- a budget
- Beuracracy
- key to efficiency
- Purpose of Organization
- achieve overall goals
- Adam Smith "wealth of nations"
- division of labor increased productivity by increasing workers skill & dexterity save time lost in changing tasks create labor saving inventions & machines
- Industrial Revolution
- replacing human power with machine power made it more economical to make goods in factories not homes
- 6 approaches to management
- 1. scientific mgmt 2. global administrative 3. quantitative 4. organizational behavior 5. systems 6. contingency
- Scientific Management
- "1 best way" to get job done 1. frederick taylor 2. frank & lillian gilbreth
- Frederick Taylor (4 principles of management)
- -sought to create mental revolution between workers and managers by defining clear guidelines for improving product efficiency 1.develop science for each persons work 2. select, train, and teach each worker 3. cooperate with workers to ensure all work is done 4. divide work & responsibility equally b/w mgmt & workers
- Frank & Lillian Gilbreth
- -proper tools & equipment for optimizing work performance MICROCHRONOMETER THERBLIGS
- Global Administrative
- what managers do & what consulted good mgtm practice 1. henry fayol 2. max weber
- Henry Fayol
- 5 functions of managers 1. planning 2. organizing 3. commanding 4. coordinating 5. controlling
- 14 principles of management
- 1. division of work 2. authority 3. discipline 4. unity of command 5. unity of direction 6. general interest more important than individual interest 7. workers paid fair wages 8. centralization 9. order 10. equity (managers are kind) 11. stability of tenure of personnel 12. authority from top to bottom 13. initiative 14. team spirit=unity
- Max Weber
- Bureaucracy= organization by division of labor, a clearly defined hierarchy, detailed rules & regs
- Quantitative
- use math to improve decision making
- Organizational Behavior
- dealing w/ workers actions (behaviors) at work 1. robert owen 2. hugo munsterberg 3. mary park foilett 4. chester barnard 5. hawthorne studies
- Robert Owen
- proposed idealistic workplace $ spent improving labor is a smart investment
- Hugo Munsterberg
- 1. using psychological tests for employee selection 2. learning theory concepts for employee training 3. study of human behavior for employee motivation
- Mary Park Follett
- 1st to recognize orgs could be viewed from perspective of individual & group behavior -proposed more people-oriented ideas -thought orgs should be based on group ethic
- Chester Barward
- orgs are social systems that require cooperation managers job is to communicate & stimulate employee effort levels -1st to argue orgs are open systems
- Hawthorne Studies
- peoples behavior & attitude related group factors affect individual behavior group standards establish invidual worker output $ is less a factor in determining output than group standards, group activities, & security
- Systems
- interdependent parts arranged in a manner that produces a unified whole 1. closed system 2. open system
- closed systems
- not influenced by and do not interact w/ environment
- open systems
- dynamically interact with their environment (take inputs, create ouputs)
- Contingency
- it depends if then
- Micro-management
- scientific mgmt every single detail
- karl marx
- inventiveness ends w/ micromanagement no creativity
- general copriciousiness
- "managers cant have a bad day" ex; dog hiding story
- Bureaucratic Model
- exposed depersonalization
- 4 of 14 fayoles principles
- 1. unity of command= 1 boss 2. exception principle= only call when things dont go right 3. span of control= # of employees report to supervisor 4. scalar principle= structure high to low
- concrete subsystems
- have a name identifable physically
- Moderating Influences
- 1. behavioral 2. quantitative
- systems approach
- 1. technical 2. structural 3. managerial 4. psychosocial 5. goals & values
- Decision Making
- Process through which managers & leaders identify and resolve problems & capitalize opportunities
- 7 steps in decision making process
- 1.identify opportunities & diagnose problems 2. identify objectives 3. generating alt 4. evaluating alt 5. reaching decisions 6. choosing implementation strategies 7. monitoring & evaluating
- Normative Model
- 1.define problem 2.generate alt 3.pro & con 4.select alt 5. implement 6. evaluate
- to plan properly
- 1.list resources & activities 2. estimate time needed 3. draw schedule 4. assign responsibilty for each task to people 5. determine how things will look when decision done
- rational-economic model
- how decision should be made
- behavioral model
- how decisions are made
- assumptions of rational-economic model
- 1. complete & accurate info is available 2. agreed on objectives are list of alternatives courses of action 3. decision makers work for the orgs best interest 4. no ethical dilemmas arise in the decision making process
- ethical dilemma (rational economic model)
- managers decide whether or not to do something that will benefit themselves or the org but may be considered unethical or illegal
- bounded rationality (behavioral model)
- people cant know everything constraints: time, info
- Intuition
- unconscious analysis based on past experience
- satisficing
- searching for and accepting something that is satisfactory rather than insisting on the perfect or optimal
- escalation of commitment
- feeling responsible for negative consequences & trying to justify previous decisions
- programmed vs. unprogrammed
- programmed: based on problem -freq -repetative -anticipated nonprogrammed:creative -novel situation -unique -unstructured
- in general, models are
- normative & descriptive
- normative
- way things should be (rational)
- descriptive
- way things are (behavioral)
- 5 approaches to normative
- 1. perfect rationality 2. bounded rationality 3. trail & error/incremental 4. coalition 5. garbage can
- perfect rationality
- decision maker has all info
- bounded rationality
- most decision making limited to boundaries (most common)
- trial & error/incremental
- try 1 and move on / start small & more big
- coalition
- groups involved, influence involved in decision
- garbage can
- unclear goals, unsure of problem "chaos model"
- synergy
- 1+1=3
- decision making-step 1
- 1.present symptoms= still defining problem 2.problem diagnosis=ask the right questions 3.potential causes=develop causes 4.verification=use causes to figure out which test to use
- as risk goes up
- managers want less uncertainty
- Decision making issues/problems
- 1.lack of structure 2.risk 3.uncertainty 4.psychological conflict (approach-approach) (avoid-avoid) 5.organizational conflict= status is hierarchy
- before crisis management elements
- 1.strategic actions 2.technical & structural actions 3.evaluation & diagnosis 4.community action 5.psychological/cultural actions
- strategic actions
- integrate crisis scenarios into plans and policies
- technical & structural actions
- assignments & budgets
- evaluation & diagnosis
- audits, threats, set up warning, track event while in progress
- community action
- media plan, neighbors, govt
- psychological/cultural actions
- how you train managers in case of crisis ex: layoff guilt
- managers biggest mistake
- failure to define problem
- Social Responsibility
- businesses obligation to pursue policies, make decisions, and take actions that benefit society
- P&G and PETA case
- no single definitive understanding of social responsibility
- shareholder model
- MILTON FRIEDMAN -only social responsibility that orgs have is to satisfy their company shareholders (maximize shareholder value)
- Friedmans Argument
- socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes & charity companies are not moral agents time & attention diverted to social causes undermines market efficiency
- stakeholder model
- mgmt most important responsibility is a firms long-term survival (not just max profit), which is achieved by satisfying the interest of multiple corp stakeholders (not just shareholders)
- stakeholder
- person or group that has legitimate interest in the company
- primary stakeholder
- org depends on for its long term survival shareholders,employee,customers, suppliers, govt, local communities
- secondary stakeholder
- any group that can influence or be influenced by a company & can affect public perception about its SR behavior no in regular trans. not critical to long term survival
- today survey on to whom org. should be socially responsible
- 80% of top-level managers believe it is unethical to focus just on shareholders
- economic responsibility
- expectation that a company will make a profit by producing a valued product or service
- legal responsibility
- expectation that a company will obey society's laws and regulations
- ethical responsibility
- expectation that a company will not violate accepted principles or right and wrong when conducting its business
- discretionary responsibility
- expectation that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities
- Social Responsivness
- Strategy chosen by a company to respond to stakeholders economic, legal, ethical, or discretionary expectations concerning social responsibility
- 4 strategies for responding to socially responsible problems
- 1. reactive 2.defensive 3.accommodative 4.proactive
- reactive strategy
- company does less than society expects ex: target and salvation army
- defensive strategy
- company admits responsibility for a problem but does the least required to meet societal expectations ex: second hand body armor
- accomodative strategy
- company accepts responsibility for a problem and does all that society expects to solve the problem ex: maiden mills
- proactive strategy
- company anticipates responsibility for a problem before it occurs and does more than society expects to address the problem ex: honda motors & front and side airbags
- ethical decision making
- 1. utalitarian 2. individualism 3. moral rights 4. justice
- utalitarian approach
- moral decisions are those which produce greatest good for the greatest #
- individualism approach
- acts are ethical when they promote the individuals best long-term interest capitalist
- moral right approach
- people have fundamental rights and liberties that cannot be taken away
- justice approach
- 1.distributive 2.procedural 3.compensatory
- distributive justice
- requires that diff. treatment of people not be based on arbitrary characteristics
- procedural justice
- requires that rules be clearly stated and consistently enforced ex; syllabus
- compensatory justice
- party responsible should compensate injured inviduals ex;tort law
- corporate responses to societal demands
- 1. obstructive 2. defensive 3. accomodative 4. proactive
- obstructive
- denial "cigarette arent harmful"
- defensive
- take a legal stance "prove it"
- accomodative
- you proved it, i'll pay the fine (i'll react)
- proactive
- corp seeks to learn potential consequences to prevent them
- why managers are tempted to do things illegally
- b/c of short term revenues and profits
- danger signs
- 1. emphasis on short term revenues and profit 2. unwilling to take an ethical stand 3 ethics as a PR tool 4. shareholders overemphasized
- behavioral domain (codified law)
- ex: speed limit
- behavioral domain (free will)
- ex: smoking
- process of working with people to achieve goals
- management
- actually getting a job done
- managerial effectiveness
- ribbon cutting ceremonial role
- mitzbergs figurehead role
- ability to coordinate & integrate ideas, concepts & procedures
- conceptual skills
- pillars of modern management
- 1. sci mgmt theory 2. bureaucratic theory 3. admin. mgmt. theory
- 1st theory that employees have rights
- bureaucratic model
- principle that employees receive all orders from 1 person
- unity of command
- 1st step in decision making process
- define a problem
- probability of error
- uncertainty
- decision maker accepts reasonable alternative that isnt necessarily optimum course
- satisficer
- name of psychological conflict with 2 unattractive alt
- avoid-avoid
- subsystems that converts inputs into outputs
- technical
- greatest good for greatest #
- utilitarian
- mgmt. obligation to make actions in interest of society
- corporate social responsibility
- "guilty of stupidity, greed, & arrogance"
- steve madden
- ethical standard, highest value on behavior that is more pleasurable and rewarding to society
- altruism
- macro-management
- beuracratic
- maximize his or her outcome
- individualism
- risk
- consequence of error
- uncertainty
- probability of error