Mgmt 300 ch 1-5

management

attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

organization

social entity that is goal-directed and deliberately structured

organizational effectiveness

degree to which the organization achieves a stated goal

organizational efficiency

refers to the amount of resources used to achieve an organizational goal

high performance

attainment of organizational goals by using resources in an efficient and effective manner

categories of skills

technical, human, conceptual

role

set of expectations for a manager’s behavior

categories of management roles

informational, interpersonal, decisional

new approaches to coordination and control

scientific management, bureaucratic organizations, administrative principles, management science

scientific management

improve company efficiency and labor productivity through innovation

bureaucratic organizations

strict hierarchical structure, depends on rules and records, not dependent on one person

management science

quantitative perspective; applies math, statistics, and other techniques to management decision making

Hawthorne studies

experiment where employees perform better when managers treat them positively

human resources perspective

satisfied workers are more productive, allows workers to use their full potential, shifted emphasis to worker’s daily tasks, combined job design and motivation

Theory X

• The average human being has an inherent dislike of work and will avoid it if possible.

• Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives.

• The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.

Theory Y

• The average human being does not inherently dislike work

• A person will exercise self-direction and self-control in the service of objectives to which that person is committed

• The average human being learns, under proper conditions, not only to accept but also to seek responsibility

behavioral sciences approach

draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting

platform-based digital organizations

connects and enables users to both create and consume something of value through the internet

radical decentralization

employees have authority to make key decisions about their work, eliminating much of hierarchical reporting

employee engagement

organizational culture supports employees’ sense of belonging and commitment to the organization and its mission

big data analytics

refers to technologies, skills, and processes for searching and examining massive, complex sets of data to uncover hidden patterns and correlations

artificial intelligence

techniques used to teach computer systems to learn, reason, perceive, infer, communicate, and make decisions similar to or better than human beings can

task environment

factors that affect organizations directly

general environment

factors that affect organizations indirectly and equally

examples of task environment

customers, competitors, suppliers, labor market

examples of general environment

technological, natural, sociocultural, economic, legal/political, international

organizational ecosystem

system formed by the interaction among a community of organizations in the environment

internal environment

elements within the organization boundaries that affect how well the organization adapts to the external environment

customers

people and organizations in the environment that acquire goods or services from the organization

competitors

organizations in the same industry or type of business that provide goods or services to the same set of customers

suppliers

people and organizations that provide raw materials that the organization uses to produce its output

supply chain

network of multiple businesses and individuals that are connected through the flow of products or services

labor market

people who can be hired to work for the organization

technological dimension

scientific and technological advancements in a specific industry as well as in society at large. advances drive competition and help innovative companies gain market share

sociological dimension

demographic characteristics, norms, customs, and values of a population

economic dimension

economic health of the country/region in which the organization operates: consumer purchasing power, unemployment rate, and interest rates.

legal/political dimension

government regulations at local, state, and federal levels, including political activities. US political system encourages capitalism and avoids overregulation

natural dimension

all elements that occur naturally on Earth, including plants, animals, rocks, air, water, and climate. organizations must be concerned with their environmental impact

strategic issues

events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives

boundary spanning

actions that link to and coordinate the organization with key elements in the external environment: business intelligence, social media analytics and big data analytics, rapidly changing business environment

corporate culture

set of key values, beliefs, understandings, and norms shared by members of an organization: symbols, stories, heroes, slogans, ceremonies

toxic culture

exists when persistent negative sentiments and infighting cause stress, unhappiness, lowered productivity among subgroups of employees

symbol

object, act, or event that conveys meaning to others

story

narrative based on true events that is repeated and shared among organizational employees

hero

figure who exemplifies the deeds, character, and attributes of a strong corporate culture

slogan

phrase or sentence that succinctly expresses a key corporate value

ceremony

planned activity at a special event that is conducted for the benefit of an audience

adaptability culture

highly responsive; values the ability to rapidly detect, interpret, and translate signals from the environment into new behaviors

achievement culture

results-oriented; values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results

involvement culture

internally focused; values meeting the needs of employees as well as cooperation and equality

consistency culture

stable; values following the rules, thriftiness, and rewards a methodical, rational, orderly way of doing things

corporate culture

plays key role in a climate that enables learning and innovative responses to situations: threats from the external environment, challenging new opportunities, organizational crises

high performance culture

focuses on both cultural values and business performance

cultural leader

one who defines and uses signals and symbols to influence corporate culture: articulates a vision for the organizational culture, heeds day-to-day activities that reinforce vision

international management

the management of business operations conducted globally

globalization

the extent to which trade and investments, information, social and cultural ideas, political cooperation flow between countries

• leads to increasing interdependence among countries, businesses, and people

global mindset

ability of managers to appreciate and influence individuals, groups, organizations, and systems that possess different social, cultural, political, institutional, intellectual, and psychological characteristics

dimensions of global mindset

cognitive, psychological, social

multinational corporation (MNC)

recieves more that 25%. of its total sales revenue from operations outside parent’s home country

benefits for expanding internationally

new markets, lower labor costs, avoids tariffs and import quotas, availability of supplies, access to finance capital

bottom of the pyramid concept (BOP)

proposes that corporations can alleviate poverty and other social ills as well as make a significant profits by selling to the world’s poorest people

how firms expand internationally

outsourcing, importing or exporting, licensing or franchising, joint ventures or partnerships, acquisitions or mergers

exporting

maintains production in home country and transfers products for sale in foreign country

global outsourcing/offshoring

international division of labor so that work can be done in countries with the cheapest labor and supplies

joint venture

company shares costs and risks with another firm to develop new products, build manufacturing facility, or set up a sales and distribution network

political risk

the risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country.

• ex) social unrest, ethnic violence, social activism, terrorism, cyberthreats

political instability

includes riots, revolutions, civil disorders, frequent changes in government

ethnocentrism

natural tendency of people to regard their own culture as superior and to downgrade other cultural values

Hofstede’s value dimensions

4 dimensions of national value systems that influence organizational and employee working relationships

power distance

level of acceptance of inequality in power among institutions, organizations, and people

uncertainty avoidance

comfort level with uncertainty and ambiguity

individualism

value for a loosely knit social framework in which people are expected to take care of themselves

collectivism

preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests

masculinity

preference for achievement, heroism, assertiveness, work centrality, and material success

femininity

values relationships, cooperation, group decision making, and quality of life

long term orientation

greater concern for the future and highly values thrift and perseverance

short term orientation

more concerned with the past and present, places high value on tradition and meeting social obligations

implicit communication

people send and receive unspoken cues, such as tone of voice or body language, also including explicit words spoken when talking with others

high context culture

people are sensitive to circumstances surrounding social exchanges. they use communication primarily to build personal social relationships

low context culture

people use communication primarily to exchange facts and information; meaning is derived primarily from words. business transactions are more important than building relationships

cultural intelligence (CQ)

a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses

• components: cognitive, emotional, physical

international trade alliances

GATT, WTO, European Union, USMCA, NAFTA,

ethics

code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

categories of behavior

codified law, free choice, ethics

codified law

values and standards written into the legal system and enforceable in the courts

free choice

behavior not covered by law and for which an individual has complete freedom

ethical climate

the tone that starts at the top of the organization with top leaders and their actions. standards and behaviors are role-modeled all the way down through the ranks

ethical dilemma

situation in which all alternative choices or behaviors have potentially negative consequences. Right and wrong cannot be clearly distinguished

moral agent

the individual who must make an ethical choice in an organization

utilitarian approach

moral behavior produces the greatest good for the greatest number

individualism approach

acts are moral if they promote the individual’s best long-term interests

moral rights approach

humans have fundamental rights and liberties that cannot be taken away by an individual’s decision

justice approach

moral decisions must be based on standards of equity, fairness, and impartiality

procedural justice

rules must be administered fairly

compensatory justice

individuals should be compensated for the cost of their injuries by the party responsible

practical approach

bases decisions on prevailing standards, society, and all stakeholders

stages of moral development

preconventional, conventional, postconventional

preconventional

Follows rules to avoid punishment. Acts in own interest. Obedience for its own sake.

conventional

Lives up to expectations of others. Fulfills duties and obligations of social system. Upholds laws.

postconventional

Follows self-chosen principles of justice and right. Aware that people hold different values and seeks creative solutions to ethical dilemmas. Balances concern for individual with concern for common good