Introduction to Management Midterm 2 (University of Iowa)

Correlation between missed classes and final points

r=.41

Definition of management

Getting work done through others

How do I get help?

1. Do your homework = search for your answers first

2. Think strategically about who to ask

3. Prepare a good question

4. Be patient, kind, and professional

Life lessons

1. The most effective and most respected people show initiative and look for answers before relying on other people

2. Sometimes the person sitting next to you is the best source of information

3. Even if your boss really likes you, do not bother him or her with questions that you should be able to answer yourself

4. Do your homework, and let people know you've done your homework, otherwise they just might ask you, "Did you do your homework?"

5. Make other people feel that their work is important, even if you are not sure whether it is

6. Gratitude gains you a great deal of good will from others; adopting an attitude of entitlement and being a jerk irritates others and may mean you don't get the answers you need

7. Sometimes a short face-to-face meeting is the best way to get questions answered, and the best way to get to know someone

8. Your time is valuable. So is theirs. People who schedule ahead of time will get attention. People who don't may be ignored

9. Asking the right person, the right way, is the best way to get the right answer and gain respect in the process

Types of managers

Top managers

Middle managers

First-line managers

Team leaders

Top managers

Responsible for:

-overall direction of the organization

-creating a context for change

-developing employees' commitment to and ownership of the company's performance

-creating a positive organizational culture through language and action

-monitoring their business environments

Middle managers

Responsible for:

-setting objectives consistent with top management's goals

-planning and implementing subunit strategies for achieving those objectives

-allocating resources to meet objectives

-coordinating and linking groups, departments, and divisions within a company

-monitoring and managing the performance of the subunits and individual managers who report to them

-implementing the changes or strategies generated by top managers

Have control over company's resources, finances, budgets

First-line managers

Responsible for:

-managing the performance of entry-level employees who are directly responsible for producing a company's goods and services

-monitoring, teaching, short-term planning

Only managers that train and supervise non-managers

Team leaders

Responsible for:

-facilitating team activities toward accomplishing a goal

-helping their team members plan and schedule work, learn to solve problems, and work efficiently with each other

-fostering good relationships and addressing problematic ones within their teams

-managing external relationships

There to bring intellectual, emotional, and spiritual resources to the team

Models

Useful simplifications of reality

Four functions of managers

Planning

Organizing

Leading

Controlling

Planning

"determining organizational goals and a means for achieving them"

-setting goals and deciding on action

-developing rules and procedures

-developing budgets and plans

-all managers plan, no matter what level they are

Organizing

"deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company"

-identifying jobs to be done

-hiring people to do them

-establishing departments

-establishing a chain of command

-delegating

Leading

"inspiring and motivating workers to work hard to achieve organizational goals"

-influencing others to get the job done

-maintaining morale

-molding company culture

-managing conflicts and communication

Controlling

"monitoring progress toward goal achievement and taking corrective action when progress isn't being made"

-setting standards

-comparing performance with standards

-taking corrective action

Managerial skills

Conceptual

Human

Technical

Motivation to Manage

Conceptual Skills

The ability to see the organization a whole, to understand how the different parts of the company affect each other, and to recognize how the company fits into or is affected by its external environment

Human Skills

The ability to work well with others

Work effectively in groups

Encourage other to express their thoughts and feelings

Sensitive to others' needs and viewpoints

Good listener/communicator

Technical Skills

The specialized procedures, techniques, and knowledge required to get the job done

Motivation to manage

An assessment of how enthusiastic employees are about managing the work of others

-managers typically have a stronger motivation to manage than their subordinates

-managers at higher levels usually have a stronger motivation to manager than managers at lower levels

-managers with a stronger motivation to manage are promoted faster, rated as better managers by their employees, and earn more money that managers with a weak motivation to manage

What managerial skills different levels of managers should possess

Top managers: mostly human and conceptual, a little technical

Middle managers: Mostly human, even amount of technical and conceptual

First-line managers: Mostly human and technical, a little conceptual

Gaining management skills

Sources of learning

-reading

-reflection

-relationships

-real experience

Read the advice of good managers

Think about what you've read and experiences you've had

Team leader role and responsibilities

-primarily responsible for facilitating team activities toward accomplishing a goal

-help their team members plan and schedule work, learn to solve problems, and work effectively with each other

-there to bring intellectual, emotional, and spiritual resources to the team

-responsible for fostering good relationships and addressing problematic ones within their teams

-manage external relationships

Motivation to manage

Is an assessment of how motivated employees are to interact with superiors, participate in competitive situations, behave assertively toward others, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks.

Top 3 (of 10) mistakes managers make

1. Insensitive to others: abrasive, intimidating, bullying style

2. Cold, aloof, arrogant

3. Betrays trust

Transition to management

Managers' initial expectations

-be the boss

-formal authority

-manage tasks

-job is not managing people

After 6 months as a manager

-initial expectations were wrong

-fast paced

-heavy workload

-job is to the problem solver and troubleshooter for subordinates

After a year as a manger

-no longer a doer

-communication, listening, and positive reinforcement

-learning to adapt and control stress

-job is people development

Self-management process

1. self-assessment and planning

2. goal setting

3. self and environmental control

4. evaluating and rewarding progress

Self-assessment and planning

Assessing about where you are in your life and where you want to be in the future

Ask: "What are my strengths?" "What do I want them to be?" "What am I doing now?" "What do I want to be doing?" "Where am I now?" "Where do I want to go?"

Common mistakes:

-not having standards

-ignoring important parts of our identities

Goal setting

Set S.M.A.R.T goals

Common mistakes:

-failure to set goals

-setting vague goals

-failing to follow through with goals

Self and environmental control

Self control

-learn to distinguish what is important (produces a desired result) and what is urgent (demands immediate attention)

-spend time on activities that are important not urgent

-common mistake: allowing negative emotions or habits to derail us

Environmental control

-proactively structure work environment to increase likelihood of success

-common mistake: allowing others to control your time

Evaluating and rewarding progress

Determine what you've accomplished and reward yourself accordingly

Common mistakes:

-rewarding yourself too early, too late, or too much

-punishing yourself if you fail

4 elements of initiative

1: It means doing something above and beyond your job description.

2: It means helping other people.

3: Usually it involves some element of risk-taking. 4: And when you're really taking initiative, it involves seeing an activity through to completion.

-3 rules of initiative

First, before you take on anything new, make sure that you're doing your assigned job well.

Second, remember that social initiatives don't count for much. Organizing the company picnic or a blood drive won't get you the kind of recognition you want. They're fine things to do - but do them because they bring you satisfaction.

Third, the kind of initiatives that matter to your career are those that relate to the company's critical path. Find out what promotes the company's core mission, and tie your initiatives to it.

How do stars use their networks?

-to multiply productivity

-start recognizing what you need to know, and figure out who can supply that knowledge

-they understand networking is like bartering - you have to have something worth trading

-they are prepared to help out a lot of people before they ask for help in return

Emotional control activities

Ask yourself 3 good things that happened in your life yesterday

Research suggests that people who do this have lower stress levels/depression/anxiety and are overall more happy

Morgenstern's time management tips

Decide when you have to do things, not just what you have to do

Assign to-do list tasks to a "home" in your schedule

Not enough time?

-Delete

-Delay

-Diminish

-Delegate

Team productivity equation

Actual productivity = potential productivity + process gains - process losses

Potential productivity

Members' resources

Knowledge, skills, and abilities

Talent alone does not make a great team

Process gains

Information exchange

-sharing and exchanging sources of information you have

Load balancing

-figuring out how to share the work load and balance it together

Social facilitation

-the informal learning you gain from each other as you interact and teach each other things that you may not learn in any other way

Process losses

Group maintenance

-involves all of the time you have to spend to coordinate and discuss schedules, etc.

Social loafing

-individuals will work less hard when they're doing something in a group than if they were doing it by themselves

Production blocking

-brainstorming problem when a member of the group has to wait to share an idea because someone else is sharing

Norms

Formal or informal standards that guide the behavior of your group's behavior

How to set?

-formal written agreements made early in team formation

-team's manager's repeated actions

-team's responses to critical events

Groupthink

Members of highly cohesive groups feeling intense pressure not to disagree with each other so that the group can approve a proposed solution

Restricts discussion and leads to consideration of a limited number of alternative solutions

Team decision making takes considerable time

Minority domination

One or two people dominate team discussions

Restricts consideration of different problem definitions and alternative solutions

Team members may not feel accountable for the decisions and actions taken by the team

Cognitive (task) conflict

Good conflict

Members disagree because different experiences and expertise lead them to different views of problems and solutions

Associated with improvements in team performance

Affective (relationship) conflict

Bad conflict

Emotional reactions that can occur when disagreements become personal

Results in hostility, anger, resentment, distrust, cynicism and apathy

Associated with decreases in team performance

Stages of team development

Forming

-getting acquainted, initial impressions, getting sense of team

Storming

-conflicts and disagreements

-members become more assertive and more willing to state opinions, jockey for position and try to establish favorable roles for themselves

Norming

-members begin to settle in to their roles

-positive team norms have developed

Performing

-performance improves because team has matured into an effective, fully functioning team

-members often become intensely loyal to one another and feel mutual accountability for team successes and failures

Enhancing work team effectiveness

Setting team goals and priorities

Selecting people for team work

-collectivists instead of individualists

-team diversity

Team training

-need significant training in interpersonal, decision-making and problem-solving, conflict resolution, and technical skills

Team compensation and recognition

-skill based

-gainsharing

-non-financial awards

Two main roles team members play

Task roles

-working on completing the work of the team

Social roles

-working to build cooperation and group cohesion

-setting a tone, motivating and inspiring members, scheduling activities, following up with individuals, providing encouragement, mediating conflicts, satisfying emotional needs of members

Team leader focuses more on social roles

Two types of conflict

Task Conflict (good conflict)

Relationship Conflict (bad conflict)

How to increase the amount of good conflict

Use devil's advocate

Listen, check for understanding, then speak

Avoid production blocking

-use nominal group technique

Characteristics of good team meetings

Written agenda

Start and end on time

Begin with a review

Have clear ground rules for decision making

Include time for questions and debate

Encourage equal participation

End with summary of who is doing what, when

Maximize benefits of diversity

Get to know each other's backgrounds

Create time/space for questions to clarify meaning

Assume the best intentions

What is the marshmallow principle

Prototype then refine

Not just one best right answer

Ethics

A set of principles that defines what is right and wrong for a person or group

Ethical behavior

Behavior that conforms to a society's accepted principles of right and wrong

Ethical intensity

The degree of concern people have about an issue

1. Magnitude of consequences

2. Social consensus

3. Probability of effect

4. Temporal immediacy

5. Proximity of effect

6. Concentration of effect

Managers pay most attention to top 2

Magnitude of consequences

The total amount of harm/benefit that will result from a decision

Greater the harm/benefit, ethical intensity goes up

Social consensus

Extent to which people in society agree about whether the behavior is bad or good

Clear agreement increases ethical intensity

Probability of effect

Likelihood that effects (harm/benefit) will result

High chance, ethical intensity goes up

Temporal immediacy

How far into the future will the consequences occur

If action today has consequences tomorrow, ethical intensity increases

Proximity of effect

How close are you to those who will be affected by the decision?

Can be geographically close, socially close, or emotionally close

As closeness increases, ethical intensity increases

Concentration of effect

How much will the average person be affected by the decision?

Will the benefit/harm be taken on by one person or can it be spread amongst many people

As concentration goes up, ethical intensity goes up

Ethical principles

Long-term self interest

Personal virtue

Religious injunctions

Government requirements

Utilitarian benefits

Individual rights

Distributive justice

Long-term self interest (ethical principle)

You will only take actions that are in your organizations long-term self interest

Personal virtue (ethical principle)

Always be open, honest, truthful and never do anything that you wouldn't want to be published on the front page of tomorrow's newspaper

Religious injunctions (ethical principle)

You will never take an action that is unkind or harms a sense of community

Government requirements (ethical principle)

To obey the law

Because law represents the minimum moral standard of society

Utilitarian benefits (ethical principle)

Never take an action that does not result in greater good for society

Do whatever creates the greatest good for the greatest number of people

Individual rights (ethical principle)

Never take an action that infringes on others' agreed upon rights

Distributive justice (ethical principle)

Never take an action that harms the least fortunate in some way

Look out and care for the poor and needy

Encouraging ethical behavior

Recruit, select, and hire ethical people

Establish a code of ethics

Provide training

-on ethical behavior; most important people who can give this training is top managers

Create an ethical climate

Measure and enforce

-can't hold people accountable if you're not measure ethical behavior

Types of workplace deviance

Production deviance

Property deviance

Political deviance

Personal aggression

Production deviance

Hurts the quantity and quality of work produced

-leaving early

-taking excessive breaks

-intentionally working slowly

-wasting resources

Property deviance

-sabotaging equipment

-accepting kickbacks

-lying about hours worked

-stealing from company

Political deviance

Using one's influence to harm others in the company

-showing favoritism

-gossiping about coworkers

-blaming coworkers

-competing non beneficially

Personal aggression

Hostile or aggressive behavior towards others

-sexual harassment

-verbal abuse

-stealing from coworkers

-endangering coworkers

6 steps in ethical decision making

1. Identify the problem

2. Identify the constituents

3. Diagnose the situation

4. Analyze your options

5. Make your choice

6. Act

Shareholder Model

Milton Friedman

Purpose of business is to maximize profit

It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations

-they can't act effectively as moral agents for all company shareholders

Stakeholder Model

Terry Mollner

Management's most important responsibility is the firm's long-term survival, which is achieved by satisfying interest of multiply corporate stakeholders

Primary stakeholders

Shareholders, employees, customers, suppliers, governments, local communities

Secondary stakeholders

Media, special interest groups

Corporate Social Responsibility

A business's obligation to pursue policies, make decisions, and take actions that benefit society

Economic

-make profit

Legal

-obey society's laws and regulations while trying to meet economic responsibilities

-stay within the rules of the game

Ethical

-not violating accepted principles of right and wrong when conducting business

Discretionary

-giving back to the community, supporting charitable causes, etc.

-social roles that businesses play in society beyond their economic, legal, and ethical responsibilities

CSR Relationship with economic performance

There is no trade-off between being socially responsible and economic performance

-initial costs of being socially responsible can be offset by a better product or corporate reputation, resulting in stronger sales or higher profit margins

There is a small positive relationship between socially responsible and economic performance

Responsibility strategies

Listed in order from least socially responsible to most

Reactive

-you react against the notion of social responsibility

-decline or deny social responsibility

-doing less than society expects

Defensive

-willing to admit responsibility for a problem but will do the least requires to meet societal expectations

Accommodative

-accept responsibility and take a progressive approach by doing all that could be expected to solve the problem

Proactive

-anticipating responsibility for a problem before it occurs, doing more than expected to address the problem, and leading the industry in the approach

BP's story

First oil company to acknowledge links between carbon dioxide emissions and climate change

Components of a triple bottom line

Profits, planet, people

Environmental scanning

What

-systematically searching the environment for events or issues that might affect the organization

Why

-keeps companies current

-reduces uncertainty

-alters organizational strategies

-contributes to organization performance (+ correlation between scanning and financial performance)

-can help avoid confirmation bias

Components of general environment

Economy

-what is the level of business activity in an economy or world

-growing economy > more business activity > growing demand, opportunity for your business to expand

-shrinking economy > less business activity > shrinking demand, less opportunity for your business to expand

-businesses will make decisions on whether to expand or not based on scanning the economy

Technology

-umbrella term that refers to all knowledge, tool, techniques required to turn inputs into outputs

-kodak invented digital photography technology that later caused them to go out of business

Socioculture

-general patterns of behaviors, attitudes, values, etc. of a society

-socioculture changes will affect what types of products and services people are willing to buy

Political/Legal

-refers to laws, regulations, court decisions that govern and regulate business behavior across all industries

Components of specific environment

Customers

-proactive monitoring: cookies

-reactive monitoring: complaint websites

Competitors

-key thing to pay attention to is notion of dependence

-if I am buyer and there are many companies I can get that resource from, I have the power - vice versa

Industry Specific Laws/Regulations

Advocacy Groups

Levels of culture

1. Surface level

-what is seen

-symbolic artifacts

-behaviors

2. Expressed values and beliefs

-what is heard

-what people say

-how decisions are made

3. Unconsciously held assumptions and beliefs

-what is believed

-beliefs and assumptions

-rarely discussed

Environmental uncertainty is lowest when

Environmental change and environmental complexity are at low levels

Environmental uncertainty is higher when

Environmental change and complexity are extensive, and resource scarcity is a problem

Culture formation and maintenance

A primary source of organizational culture is the company founder

People tell organizational stories to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions

Organizational culture can also be sustained by recognizing and celebrating heroes

Forces of Internationalization

modern communication technology, air travel, corporate globalism

Internationalization Process

Stage 1: Exporting: Make product at home and ship it abroad

Stage 2: Cooperative contracts

Stage 3: Strategic alliances

Stage 4: Wholly owned affiliates

Global Venture new step

Stage 1: exporting

-selling products in a different place than its manufacturing origin

Stage 2: Cooperative contracts

-licensing and franchising

ex: foreign business owner pays company fee to operate company in their country (ex: opening McDonald's in Germany)

Licensing

A domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce its product, sell its service, or use its brand name in a particular foreign market.

Franchising

The franchisor, licenses the entire business to another person or organization, the franchisee. For the price of an initial franchise fee plus royalties, franchisors provide franchisees with training, assistance with marketing and advertising, and an exclusive right to conduct business in a particular location.

Stage 3: Strategic alliances

Companies combine key resources, costs, risks, technology, and people.