UIowa MGMT:2100 Final - Livingston

Definition of Management

"getting work done through others...

concerned with efficiency and

effectiveness in the work process."

Four Functions of Management

1. Planning

2. Organizing

3. Leading

4. Controlling

Gaining Management Skills

Reading

Reflection

Relationships

Real experience

Stage 1 of Self-Management

SELF-ASSESSMENT AND PLANNING

Tips-ask:

-Who am I now? Who do I want to be?

-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?

Mistakes:

-Not having any standards

-Ignoring important parts of our identities

Stage 2 of Self-Management

GOAL SETTING

Tips:

-What do I need to do in order to

get where I want to go?

-Set S.M.A.R.T. goals

Mistakes:

-Failing to set goals - "hope and a wish"

-Setting vague goals - "do your best"

-Failing to follow through with goals

Stage 3a of Self-Management

SELF CONTROL

Tips:

What is important? What is urgent?

-Important: produces a desired result

-Urgent: demands immediate attention

Mistakes:

-Allowing negative emotions or habits to

derail us

Stage 3b of Self-Management

ENVIRONMENTAL CONTROL

Tips:

-Proactively structure work environment

to increase likelihood of success

Mistakes:

-Allowing others to control your time

Stage 4 of Self-Management

EVALUATING AND REWARDING SUCCESS

Tips:

-Determine what you've

accomplished and reward yourself

accordingly

Mistakes:

-Rewarding yourself too early, too late,

or too much

-Punishing yourself if you fail

Morgenstern's Time Management Tips

Delay

Delegate

Diminish

Delete

Emotional Control Activities

"Count Your Blessings" by Dr. Seligman

Norms

Informally agreed upon standards

that regulate team behavior

What creates norms?

-Formal written agreements made early

in team formation

-Team manager's repeated actions

-Team's responses to critical events

Maximizing Benefits of Diversity

-Get to know each other's backgrounds

-Create time/space for questions to clarify meaning

-Assume the best intentions

Ethical Intensity

The degree of concern people have

about an issue

-Magnitude of consequences

-Social consensus

-Probability of effect

-Temporal immediacy

-Proximity of effect

-Concentration of effect

Encouraging Ethical Behavior

-Recruit, select, & hire ethical people

-Establish a code of ethics

-Provide training

-Create an ethical climate

-Measure and enforce

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's 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

Responsibility Strategies

In order from least socially responsible to most

1. Reactive

2. Defensive

3. Accommodative

4. Proactive

Reactive Strategy

-You react against the notion of social responsibility

-Decline or deny social responsibility

-Doing less than society expects

Defensive Strategy

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

Accommodative Strategy

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

Proactive Strategy

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

Components of General Environment

1. Economy

2. Technology

3. Sociocultural

4. Political/Legal

Economic Component

-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 Component

-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

Sociocultural Component

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

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

Political/Legal Component

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

Culture Formation and Maintenance

-Tell organizational stories

-Celebrate organizational heroes

-Host organizational ceremonies

Internationalization Process

Stage 1: Exporting

Stage 2: Cooperative Contracts

Stage 3: Strategic Alliances

Stage 4: Wholly Owned Affiliates

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

Stage 3: Strategic Alliances

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

Stage 4: Wholly Owned Affiliates

When a company completely buys another one outright

High-Context Cultures

Cultures in which nonverbal and

situational messages convey meaning.

-Relationship more important than terms.

Low-Context Cultures

Cultures in which words convey

primary meaning.

-Nonverbal messages are secondary.

-The terms of the deal are more important

than building a business relationship.

Preparing for an International Assignment

-Language and cross-cultural training -Consideration of spouse, family, and dual-career issues

Getting Funding

Equity: Investors in you company "owners equity" and don't have to pay back

Debt: Borrow money from creditors don't have to give up any ownership but have to pay back

Awards from competitions

Key Ideas Behind 'burn your business plan'

Entrepreneurs should focus their company-building efforts on such tasks as creating a Web site that communicates their business model, obtaining publicity, keeping the finances under control, and making sales before thinking seriously about writing a business plan (Act don't plan)

Steps in Rational Decision Making

1. Define the Problem

2. Identify Decision Criteria

3. Weigh the Criteria

4. Generate Alternative Courses of Action

5. Evaluate Each Alternative

6. Compute the Optimal Decision

SWOT Analysis

Internal:

strengths (S)

weaknesses (W)

External:

opportunities (O)

threats (T)

Portfolio Strategy

A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

BCG

A portfolio strategy that managers use to categorize businesses by growth rate and relative market share (uses a matrix)

Uses the terms

1: Stars

2: Question Marks

3: Cash Cows

4: Dogs

Grand Strategy

Broad strategic plan used to help an organization achieve its strategic goals

There are three kinds of grand strategies:

1: growth

2: stability

3: retrenchment/recovery.

Growth Strategy

A strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business

Stability Strategy

A corporate strategy in which an organization continues to do what it is currently doing

Retrenchment Strategy

Strategy designed to reduce the scale or scope of a corporation's businesses

Control Process

1: Set standard

2: Measure actual performance

3: Compare with standard

4: Identify deviations

5: Analyze deviations

6: Take corrective action

Three Types of Control

1. Feedforward Control

2. Concurrent Control

3. Feedback Control

Variance Analysis

A technique for determining the cause and degree of difference between the baseline and actual performance.

Feedforward Control

Control that allows managers to anticipate problems before they arise

-Monitoring inputs

-Anticipating and preventing problems

Concurrent Control

Control that takes place while a work activity is in progress

-Monitoring processes

-Adjusting ongoing activities

Feedback Control

A mechanism for gathering information about performance deficiencies after they occur

-Monitoring products

-Learning from past mistakes

Budgets

Most widely used control device, Organizations usually have many budgets:

-Sales budgets (revenue)

-Operating budgets (expenses)

-Income statements (revenue, expenses, and net income)

-Balance sheet (assets, liabilities, & net worth)

Economic Value Added (EVA)

It is the amount by which profits exceed the cost of capital in a given year. It is based on the simple idea that capital is necessary to run a business and that capital comes at a cost.

Experiential Innovation (Discontinuous)

Uncertain environments, Intuition, flexibility, Goal: New product/service. Can be planned through deliberate creation of creative work environments, and testing!

Compression Innovation (Incremental)

Certain environments, Series of steps, Goal: Faster/cheaper. Can be managed primarily through traditional planning & control processes

Resistance to Change

Opposition to change resulting from

1. Self-interest

2. Misunderstanding and Distrust

3. General Intolerance for Change

Components of a Creative Work Environment

-Encouragement from:

+Organization

+Supervisor

-Work Group

-Challenge

-Lack of impediments

-Freedom

-Expertise

-Positive moods

Mechanistic Design (incremental)

Very clear chain of command, Vertical communication, Centralized Authority, Low Delegation, High specialization

Organic Design (discontinuous)

Think broadly about who you report to, Lateral communication, Decentralized authority, High delegation, High generalization

Line Authority

The right to command immediate subordinates in the chain of command

Staff Authority

The right to advise, but not command, others who are not subordinates in the chain of command

Three Steps of Transfers of Delegation

1. the manager transfers full responsibility for the assignment to the subordinate

2. the manager gives the subordinate full authority over the budget, resources, and personnel needed to do the job

3. The subordinate now has the authority and responsibility to do the job and, in return, is accountable for getting the job done

Components of General HR Model

1. Recruitment/Selection

2. Compensation and Rewards

3. Performance Appraisal and Management

4. Training and Development

Creates Desired Performance

Recruiting Techniques - Top 5 search methods

1. Corporate websites

2. General job-listing sites

3. Classified Ads

4. Referrals

5. Headhunters/agencies

Recruiting Techniques - Top 5 ways candidates found jobs

1. Referrals

2. General job-listing sites

3. Headhunters/agencies

4. Classified Ads

5. Corporate websites

Recruiting Tips

-Use social networks of existing

employees and friends

-Use personal contact

-Target, target, target (what is desired

performance? The qualifications?

Where can you find people who fit?)

-Targeted online better than broad

-Carefully proofread all ads

Managers as Teachers

1) Explain basic concepts (TELL);

2) Demonstrate performance (SHOW);

3) Solicit practice (WATCH);

4) Provide constructive feedback (ENCOURAGE);

Repeat as necessary.

Job analysis, description, specification

List of duties, responsibilities, and qualifications

Developed via job analysis

Work-centered (for job description)

Worker-centered (for job specifications)

Hybrid (most common)

Structured Interviews

interview process that asks the same job-relevant questions of all applicants, each of whom is rated on established scales

Unstructured Interviews

interviews in which interviewers are free to ask the applicants anything they want

Appraisal Options

-Evaluating employees performance relative to standards

-Objective measures (Best)

-Subjective measures (Worst)

Compensation Decisions

Low job offer: below-market rewards package

Competitive job offer: total rewards package is competitive with the market

High job offer: total rewards package is above the market

Maximum job offer: the company's best and final offer

Training Objectives and Methods

1) Impart information & knowledge: Films and videos, Lectures, Planned readings;

2) Develop Analytical and problem solving skills: Case studies, Coaching and mentoring, Group discussions;

3) Practice, learn, or change job behaviors: On-the-job training, Role-playing, Simulations and games, Vestibule training (real equipment)

4) ALL THREE: computer-based learning

Terminating Employees

-Don't make firing the first option, give a warning, and then ample time to see a change in the employee's behavior.

-If it doesn't work the first time, give it one more try.

-You have to have a good reason to fire employee. If you don't you can get into wrongful discharge.

Functional Turnover

loss of poor-performing employees who voluntarily choose to leave a company

Dysfunction Turnover

loss of high-performing employees who voluntarily choose to leave a company

Individual motivation and job performance equation

Performance = Ability x Motivation

OR ("can do" x "will do")

McClelland's Needs Theories

Different people motivated by

different needs:

-Affiliation (nAff)

-Achievement (nAch)

-Power (nPow)

Job Characteristics

-skill variety

-task identity

-task significance

-autonomy

-feedback

Goals Work Best When...

-Goals are difficult & specific

-Person is committed to pursuit

-Person has confidence in attainment

-Feedback is provided

-Task is fairly well learned

Equity Theory

Your Outcomes/Your Inputs = Other's Outcomes/Other's Inputs

Greenburg Study

As a reaction to a temporary pay cut, a company experienced a lot more theft from employees when an inadequate explanation was given (rather than an adequate one)

Expectancy Theory

the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards

Leadership Theories

Trait Theory, Behavioral Styles Theory, Transformational Theory, Situational Theory

7 (plus 1) traits common to leaders

Drive

Desire to Lead

Honesty/integrity

Self-confidence

Emotional stability

Cognitive abilities

Knowledge of business (based on experience)

-Height?

Two general leader behavioral styles from WWII studies

Initiating Structure

-"Job Centered Leadership"

-"Concern for Production"

Consideration

-"Employee Centered Leadership"

-"Concern for People"

Logic of situational theories

Fielder model

Hersey and Blanchard model

No particular leader is best in all situations. Leaders should adapt or be matched to the situation. Both trait (Fiedler in book) and behavioral style (Hersey/Blanchard) versions

Fiedler Model

Proposes that effective group performance depends upon the proper match between the leader's style of interacting with followers and the degree to which the situation allows the leader to control and influence.

Hersey and Blanchard Model

Based on the premise that appropriate leader behavior depends on the "readiness" of the leader's followers (i.e., the subordinate's degree of motivation, competence, experience, and interest in accepting responsibility)

4 components of transformational leadership

-Idealized Influence (role model)

-Inspirational Motivation (meaning)

-Intellectual Stimulation (questions)

-Individual Consideration (listens)

Barling et al. study

When given training employees still were excelling still even after five months.

From TA: "If you are an employee of a transformational leader, you will receive higher performance."

Employees who received no training went down in performance even farther than before they started.

Main point of FastCompany Weil article on Tichy

Leaders are great at telling stories.

Estimated prevalence of email and meetings

Emails:

- 25% of daily tasks involve email

- Average of 145 billion emails a day; 15% are spam

- Average person receives 44 emails/day

Meetings:

- Average of 3 meetings/day

- Average of 158 minuets spent in meetings/day

- More meetings=more tired

Non-verbal behaviors, effects

nonverbal feedback from managers affects employee behavior

- positive: smiles, head nods, eye contact

- negative: frowns, head shaking, no eye contact, eye rolling

positive feedback builds good interpersonal relations

Tips on communicating with email

1) Clear and concise;

2) Descriptive subject line;

3) Rarely use attachments;

4) No jokes, no privacy;

5) Inform recipient about replying, if you want reply;

6) Include name and important info;

7) Like business letter: header, closing, proofed.

Types and outcomes of influence

resistance - dont do it and don't like it

compliance - do it even though they don't like it

acceptance - will do it and glad they did it

Cultural Differences

beliefs, values, habits, diet and health practices that relate to a person's culture or religion

Perception Process and Problems

Process-

-Attention: process of noticing, or becoming aware of, particular stimuli.

-Organization: process of incorporating new information (from the stimuli that you notice) into your existing knowledge.

-Interpretation: process of attaching meaning to new knowledge.

-Retention: process of remembering interpreted information.

Problems

Selective perception: Tendency to notice and accept objects and information consistent with our values, beliefs, and expectations, while ignoring or screening out inconsistent information

-Closure: The tendency to fill in the gaps where information is missing, that is, to assume that what we don't know is consistent with what we already do know.

Communication Process

the steps between a source and a receiver that result in the transfer and understanding of meaning

Active listening

Empathic listening in which the listener echoes, restates, and clarifies. A feature of Rogers' client-centered therapy.