Management Test 1- Learning Objectives

Rewards to being an exceptional manager

• taking risks

• getting things done through

• task, achievement, and people oriented

organization

group of people who work together to achieve a specific purpose

 

management definition

the pursuit of organization goals effectively and efficently

the four functions of management

integrating work through planning, organizing, leading and controlling

efficient

using resources(people, money, and raw materials), wisely and cost effectively

effective

to achieve results, make the right decisions and carry those decisions out

-   A good manager does both

multiplier effect

your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone

planning

setting goals and deciding how to achieve them

organizing

arranging task, people, and other resources to accomplish the work

leading

motivating, directing, and influencing people to achieve the organizations goals

controlling

monitoring performance, comparing with goals and correct if needed

the 5 levels of management

top managers, middle managers, first line managers, first line managers, team leads, non managerial employees

top managers

Make long term decisions about the direction of the organization and establish the strategies

• have titles such as CEO & COO

• experts in the field

middle managers

Implement the policies of the top managers and supervise the activities of the first line below

• interpersonal skills

• plant, district or regional manager

first line managers

Make short term decisions/ direct but don’t directly oversee the work of leaders

team leads

Facilitate team members to help them achieve goals

non-managerial employees

Are the base/ most important part of the pyramid. The individual who work together, yet don’t oversee anyone

 

an organization is run by two types of managers

functional manager & general manager

functional manager

responsible of just one organizational activity

general manager

responsible for several organizational activities and they supervise other managers

1. Identify the roles an effective manager must play.

2. Discuss the skills of an outstanding manager.

3. Identify the seven challenges faced by most managers.

4. Define the core competencies, knowledge, soft skills, attitudes, and other characteristics needed for career readiness and discuss how they can be developed.

5. Describe the process for managing your career readiness.

 

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Chapter 2

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What is considered the “right” thing to do as a manager(CHP 3)

considering how the stakeholders are impact by the organizations actions

what are steps further than simply doing the right things as managers

ethical THEN social responsibilities

What did Milton Friedman believe about managing

business existed to make profits for the stockholders. Simply maximize shareholder value and obtain the law

What did Barbara Humpton believe about managing?

If your are a company that isn’t creating value for society, why do you exist? Making money should be only one goal of business. the right descions equal more than profit

triple bottom line

people, planet, profit

Younger workers searching for meaning

Gen Z makes up more that 25% of the workforce

• value sustainable development and ethics

• driven by purpose, fullfillment and meaning

Internal Environment

the stakeholders involved with the organizations internal activities on a regular basis

• employees, owners, board of direction

external envoirment

all parties outside the business organization that have stakes in decisions

• two sub- environments: task & general(marco) enviorment

who are considered the talent of an organization

the employees(most valuable resources)

Hition President and CEO Christopher Nassetta says regarding employees

“We are in a people business- a business that relies upon the talent and passion of our tea, to deliver incredible experiences to our guests”

Owners

all those who can claim it as their legal property

• 5 principal types

5 principal type of owners

solepropietors, partners, private investors, employee owners, stockholders

sole proprietors

if you are running a one person firm and you are the ONLY owner

• 17 million in US

Partners

Two Owners of a company

private investors

if your a member of a family running a company and its privately owned

employee owners

if you work for a company that it more than half owned by employees your apart of an employee stock ownership plan(ESOP)

stockholders

If you’ve purchased stock in a company

Who hires the chief executive for a for or non profit world

board of directors

board of directors responsibility

group of people elected to oversee the firms activities and ensure that management acts in shareholders best interest

the groups or organization’s external environment that impact and are impated by its descions

the external enviorment and there two subgroups

• task enviroment & general enviroment

The task environment

customers, competitors, suppliers, distributor, strategic allies

customers

those who pay to use an organization’s goods or services.

• many are frustrated by poor relation

competitors

are the people or organizations that compete for customers or resources

• ex: talented employees or raw materials

• every company should be on the look out

suppliers(vendor)

a person organization that provides supplies(i.e.- raw materials,services, equipment, labor, or energy

corporate social responsibility

Corporations are expected to go above and beyond follow the law and make a profit. The three areas include: environmental, philanthropy and ethical labor practices

• being a good organizational citizen

• takes ethics a bit further, more than the right thing

Carroll’s global corporate responsibility

Be a good global citizen & doing what is desired by stakeholders

Ethical Responsibility

Be ethical. Do what is expected by stakeholders

Legal Responsibility

Obey the law & and do what is right by the stakeholders

economic responsibility

be profitable

why should we be against social responsibility

Our only social responsibility is to make as much money for the stockholders as possible

why should we be for social responsibility

A company can be concerned for societies welfare & make a profit

climate change

refers to major changes in temperature, precipitation and wind patterns over several decades

global warming

rise in global average temperature near the Earths surface. An aspect of climate change

natural capital

the value of natural resources such as topsoil, water, and genetic diversity which humans depend on

 

philanthropy

making charitable donations to benefit human kind  

corporate governance

governing a company so the interests of the corporate owners and stakeholders are protected

• Shareholders should elect people who have the organizations best interests at heart

the company boards with the best ethical reputation

A variety of individuals

Serve on an average of three boards or less

Individual difference

CSR contracting

linking of compensation to CSR criteria such as environmental and social performance

How does the Institute for Management Development(IMD) define competitiveness

how well countries “manage their competencies to achieve long-term value creation.” They rate companies on the four facets of competitiveness in the global business environment:

• economic performance, government efficiency, business efficiency, infrastructure

economic performance

indicators include:

• international trade

• employment stats/ growth

• price indices(cost of living, food & gasoline prices)

Government Efficiency

indicators include:

• corporate and personal tax policies

• income distribution

• business legislation(immigration policies and tariffs)

Business efficiency

• labor market measures(growth and availability of skills)

• corporate governance and social responsibility

• workforce adaptability

infrastructure

• density of railroads/ roadways

• technological factors

• education

the top 10 competitive countries in 2022 (According to IMD’s report)

Denmark, Switzerland, Singapore, Sweden, Hong Kong, Netherlands, Taiwan, China, Finland, Norway and US

why can competivness fluctuate(look at with caution)

inflation, geopolitical conflicts, supply chain issues, remote/ hybrid work

globalization

the trend of the world economy toward becoming a more interdependent system

3 important developments in globalization

1. Rise of global village and electronic commerce

2. the world becoming one market instead of many nation ones

3. The rise of megafirms and Internet enabled minifirms worldwide

The hallmark of great civilizations has been

communication.

• began with transportation(Roman empire and the Roads)

• 19th century, railroads

transportation began to yield

electronic exchange of information(TV, radio, telephone and telegraph)

global village

refers to the shrinking of time and space as air travel and the electronic media have made it easier for people around the globe communicate with each other.

what is the internet considered to be?

the worldwide computer linked “network of networks”

• 63% use the internet, 59% use social media(out of 8 billion)

• led to the introduction of e-commerce

ecommerce

the buying and selling of products and services through computer networks

• surpassed 900 billion in 2022 and projected to reach 1.7 billion in 2027

Rosabeth Moss Kanter said

“We are seeing the results of things started in 1988 and 1989”

• includes 3 specific historical changes that allowed money to move more freely through the world(global economy)

The 3 events that set up conditions by which goods, people, and money could move more freely throughout the world- global economy

1. Berlin wall coming down, signaling the end of communism in Eastern Europe

2. Asian Countries began opening to foreign investors

3. worldwide trends of deregulating their economies

global economy

increasing tendency of the economies of the world wide market to interact with one another as one market instead of many national markets

positive effects of a global economy

• internet lessened the friction of distance/ eliminating borders

• increased communication and information sharing

• products produced more cheaply

• money can move easily through electronic transfers

some industries’ foreign firms are

building plants in the united states, revitalizing some industrial areas.

negative effects of global economy

• loss of Jobs of the United states

• managers day to day challenges(threats to information security, loss of quality, risk of costs)

• if you are in an interconnected world and one economy falters that can cause instability

Why is it an advantage to have international experience?

it builds critical thinking, problem solving and adaptability

international management

management that oversees the conduct of operations in or with organizations in forieign countries through multinational corporation or organization.

multinational corporation(enterprise)

business with operations in several countries

• mcdonalds

the 10 largest multinational corporations(2022)

walmart, amazon, apple, CVS, united health group, exxon mobil, berkshire hathway, alphabet, Mckesson, and AmerisoureBergen

10 largest foreign firms

State grid(chinese utility), China National Peterleum, Sonopec Group(Chinese oil companty), Saudi Aramco(Saudi Arabian oil company, Volkswagen, China State Construction Engineering, Toyota Motor, Shell, Samsung Electronics, and Trafigura(Singaporean commodity trading company)

Multinational organization

a nonprofit organization with operations in several countries

• operate independently of any government

• called non governmental organizations(NGOs)

examples of multinational organizations

World Health Organization, International Red Cross

the most successful international manager is

geocentric

ethnocentric managers(parochialism)

believe that their native country, culture, langauge, and behavior are superior to all others

the ethocentric viewpoint is often more attributable to

ignorance(therefore lets build cross cultural awareness to combat viewpoints)

parochialism

narrow view which people see things solely through their own perspective

polycentric managers

take the view that native managers best understand personnel and practices in their home countries and so home office should defer to them.

• opposite of ethnocentric managers

pros to polycentric management

fewer relocation costs, more established local social networks, and higher team morale

disadvantages to polycentric management

less control over and connection with subsidiaries

geocentric managers

there are differences and similarities between home and foreign personnel and practices and that they should use whichever techniques are most effective

There are 5 reasons why companies expand internationally

supplies, new markets, lower labor costs, access to finance capital, avoidance or tariffs

supplies

• organizations have to go to where the supplies are located

• ex: oil companies going outside of the US for cheaper oil

new markets

• when product demand has declined a company will seek to expand in foreign markets

• ex: Coca-Cola under CEO Roberto Goizuta.

Lower labor costs

US companies have found it cheaper to manfucator internationally, meaning loss of jobs for US

• a US country can even move the operation from one country to another(i.e.- china to india)

access to finaical captial

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