Intro Mgmt Midterm 1

Purpose of Management

Right Work, Done Well

What does “Right Work” refer to?

The what of management — determining what needs to be done to achieve the organization’s goals.

What does “Done Well” refer to?

The how of management — completing work effectively and efficiently.

What are the core tasks of management?

What are the key skills managers need?

Planning, organizing, leading, and controlling.

Technical, interpersonal, and decision-making skills

What does management primarily represent?

A practice — something managers do through daily actions and decisions.

What are the core elements of the “Right Work”?

Creating vision, mission, goals, strategies, and plans

Adopting ethical, legal, and socially responsible practices

Pursuing profitability and growth

Understanding global business environments

What are the two drivers of a business’s financial value?

Profitability and growth.

What are the core elements of getting work “Done Well”?

Assigning responsibility, designing jobs, and building organizational structure

Integrating workflows and building supportive culture

Implementing HR practices: hiring, training, motivating, and compensating

Engaging employees

Managing performance and continuous improvement

Developing leadership, communication, decision-making, and conflict-resolution skills

What is performance management?

Managing and improving organizational processes through measurement and improvement tools.

Why are management theories limited and what challenges?

Few are based on scientific study; outcomes vary depending on unique managerial situations.t’s difficult to prove exact cause-and-effect relationships between practices and results.

Why should management not be treated as dogma?

Because there’s no one-size-fits-all formula for managerial success.

Four Facets Influence

Management Practices

Economic

Social

Political

Technological

Study of Management History - Controversy

Historian Bias:

– The People who write about it

– Original documents that recorded it

Data Limitations:

– May not represent general practices

– May not represent best practices

How best to Study Management History?

1. Study “stages” or “time periods”

2. Study “schools of thought”

3. Study “organizations”

4. Study “biographies” .. by daniel wren

Categories of Management Practices:

Specialization of Labor, Systematic Management, Scientific Management, Administrative Management, Human Relations Management

Specialization of Labor

Adam Smith - 1700s

Laborer focus on single component of production

Increase experience and productivity

Systematic Management

Early Industrial Revolution

Engineers and Economists had major roles in managing factories

Most of those roles migrated to other specialists over time

Scientific Management

Focus on Productivity

• Frederick Taylor late 1800s

       Recording steps in task

        Analyze worker interaction with machines

• Frank & Lillian Gilbreth early 1900s

       Time and motion studies(observing the motions a worker makes to perform a job)

• Henry Gantt early 1900s

       Sequential illustrations of

workflows

• Statistical Process Control & JIT

mid to late 1900s

(Deming, Juran, Ishikawa, Ohno)

• Foundations for Lean & “Big Data

Administrative Management

Henri Fayol early 1900s

- 14 Principles

- Management Process

Max Weber late 1800s – 1900s

- Bureaucratic Management

- Six doctrines

Human Resource Management

Increasing power of “Unions”

Advent of “Employee Welfare”

departments that evolved into

“Personnel” departments

Elton Mayo

hawthrone studies: characteristics in workplace that affect performance & fatigue

hawthrone effect: employees attitude towards managers affect performance

Human Resource Management

Mary P. Follett

Human Resource Management

National Labor Relations Act

- Coalition of labor unions

(CIO)

Abraham Maslow

Human Resource Management

Described his hierarchy of human needs as individuals seek to “self-actualize”. He believed that the best managers are ones that are “psychologically healthy” and had reached their point of self-actualization

Herbert Simon

Human Resource Management

bounded rationality: managers have limited capacity to process all the information and to do all the analysis necessary to make the “perfect” decision

Micro and Macro view in HR management result in the fields of

Organization Behavior and Organization Theory

Five Elements for Identifying “Right Work”

1. Vision

2. Mission

3. Goals

4. Strategy

5. Plans

Vision Statement

describes an organization’s purpose for existence.

Mission Statement

describes the products and services it will provide in an effort to pursue the Vision, and why constituents (customers, employees, suppliers, etc.) should be interested in supporting the organization

Goals

define success for the organization. Financial Goals & Operational Goals (Market share vs competitors, Service levels, Customer satisfaction levels)

Strategy

actions managers take to achieve the organization’s goals.

Differentiation Strategy (core strategy)

Offer something better or more valuable than competitors to attract customers.

Low-Cost Strategy (core strategy)

Develop the most cost-efficient methods to produce and deliver products/services — achieving lower costs than competitors.

Combination Strategy (core strategy)

Offer better features or quality while keeping costs lower than rivals, combining the benefits of low-cost and differentiation strategies.

Focus Strategy

Target a specific market segment (e.g., geographic, demographic) and serve its needs better than competitors serving the broader market.

five steps in the strategy development and implementation process:

1⃣ Define Vision, Mission, & Goals

2⃣ Analyze External Environment

3⃣ Analyze Internal Capabilities

4⃣ Select Best Strategy

5⃣ Implement Strategy

Porter’s Five Forces Analysis (External Analysis Tool)

Threat of New Entrants

Intensity of Rivalry

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitutes

Industry Life Cycle Analysis (External Analysis Tool)

1⃣ Embryonic – New product/service creates a new industry

2⃣ Growth – Rapid acceptance and expanding demand

3⃣ Shakeout – Growth slows; weaker firms exit or merge

4⃣ Mature – Slow growth; few new entrants

5⃣ Decline – Negative growth; few firms remain

Macroenvironmental Analysis (External Analysis Tool)

1⃣ Economic – Growth, inflation, exchange rates

2⃣ Global – Market expansion, sourcing, technology access

3⃣ Technological – Impact of innovation and change

4⃣ Demographic – Population trends and shifts

5⃣ Social/Cultural – Beliefs, values, social issues (e.g., climate change)

6⃣ Political/Legal – Government policies, stability, and regulations