MNGT 2000/50 - Foundations for Business Success

What are the three core management roles

Informational roles
Interpersonal roles
Decisional roles

Types of Informational roles

Monitor
Disseminator
Spokesperson

Types of Interpersonal roles

Figurehead
Leader
Liaison

Types of Decisional roles

Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator

What is decision-making

The action of thinking through possible options and selecting one

What are stakeholders

All the individuals or groups that are affected by an organization

Questions to ask before making a decision

What’s the correct answer?
What’s the ethical answer?

What are the two ways the brain processes information to make decisions

Reflective system and Reactive system

How does the reflective system work

Logical, analytical, deliberate, and methodical

How does the reactive system work

Quick, impulsive, and intuitive, relying on emotions or habits to

provide cues for what to do next.

What is Emotional Intelligence

The ability to recognize, understand and manage one’s own emotions and the emotions of others.

What are the two kinds of Emotional Intelligence

Rational and Emotional

What are Programmed Decisions

Decisions that we repeat over and over, making them a routine

What are heuristics

Mental shortcuts

Types of Heuristics

Availability Heuristic
Representative Heuristic
Anchoring

Types of Cognitive Biases

Overconfidence
Loss aversion
Framing Effect

What are Nonprogrammed decisions

Decisions that are generally based on criteria that are not well-defined.

Steps of Nonprogrammed Decisions

1. Recognize that a decision needs to be made.

2. Generate multiple alternatives.

3. Analyze the alternatives.

4. Select an alternative.

5. Implement the selected alternative.

6. Evaluate its effectiveness.

What is the Organization's External Environment

All outside factors and influences that impact the operation of a business

Macro Forces and Environments

Economic Forces
Technological Forces
Sociocultural Forces
Natural Disasters and Human-Induced Problems
Political Forces

The environment-organization fit

Y-Axis: Environment Stability
X-Axis: Environment Complexity

Characteristics of Simple-Stable Environments

The small number of external elements and elements are similar
Elements remain the same or change slowly

Characteristics of Complex-Stable Environments

Large number of external elements and elements are dissimilar
Elements remain the same or change slowly

Characteristics of Simple-Unstable Environments

Small number of external elements and elements are similar
Elements change frequently and unpredictably

Characteristics of Complex-Unstable Environments

Large number of external elements and elements are dissimilar
Elements change frequently and unpredictably

How are Mechanistic organizational structures characterized

Top-down hierarchies

How are Organic organizational structures characterized

Flatter

For what environments are Mechanistic organizational structures most suitable for

Stable and simple to low-moderate uncertainty

For what environments are Organic organizational structures most suitable for

Unstable, complex, changing environments

Types of Organizational Structures, three eras:

Mid-1800s -1970s: mechanistic self-contained top-down

1980s - mid-1990s: horizontal flat organizational design

Mid-1990s - present: matrix, global, virtual, geographic

What are the advantages and disadvantages of
Functional and Divisional Structure

Advantage: High Specialization
Disadvantage: Isolation

Types of organizational structures

Functional
Divisional
Geographical
Matrix
Network
Virtual

What is Holacracy

Decentralized management and organizational governance, which claims to distribute authority and decision-making through a holarchy of self-organizing teams rather than a management hierarchy.

Benefits of Holacracy

Encourages employee engagement
Teams design and govern themselves
Increases flexibility by reducing reliance on hierarchies

Challenges of Holacracy

Ambiguity
Difficult to make decisions
Performance evaluation is complicated

What are ethics

Moral principles and values

What are Normative ethics

Ethics, asking how we should live and act.

Business ethics

How to operate a business ethically

What types of values affect business ethics at the individual level?

Ethics is personal and unique to each individual.

What are the Three levels of Ethics

1. Laws

2. Organizational Culture

3. Person’s values and beliefs

List all Ethical Principles and Responsible Decision-

Making

Utilitarianism
Universalism
Rights
Justice
Virtue
The Common Good
Self-Interest Approach

Utilitarianism

Definition

Greatest good for the greatest number of people

Utilitarianism

Limitations

Difficult to measure cost and benefits

Utilitarianism

Application

Used when resources are scarce.

Universalism

Definition

Considering the welfare and risks of all parties

Universalism

Limitation

Requires personal sacrifice

Rights

Definition

Legal and moral entitlements that protect individual freedoms and justice.

Rights

Limitations

Can be manipulated

Justice

Definition

Ensuring fairness through equal treatment

Justice

Limitation

Who decides right and wrong?

Virtue

Definition

Emphasizing good character traits

Virtue

Limitation

Subjective

The Common Good

Definition

Emphasizes conditions that allow individuals and social groups access to their fulfillment, requiring decisions that benefit societ as a whole.

The Common Good

Limitations

Difficulty in determining whose interests define the common good

Self-Interest Approach

Definition

Individuals set their own moral standards

Self-Interest Approach
Limitation

Personal Bias