Chapter 1-4 Man

organization

A group of people working together to achieve specific goals.

management

The process of coordinating resources and people to accomplish organizational objectives efficiently and effectively.

efficient

Using resources wisely and cost-effectively.

effective

Achieving organizational goals successfully.

mentor

An experienced person who provides guidance and advice to someone less experienced.

planning

Determining organizational goals and the means to achieve them.

organizing

Arranging tasks, people, and resources to accomplish goals.

leading

Motivating, directing, and otherwise influencing people to work hard to achieve goals.

controlling

Monitoring performance, comparing it with goals, and taking corrective action as needed.

competitive advantage

The ability to produce goods or services more effectively than competitors.

innovation

Finding new ways to deliver products or services.

top managers

Executives responsible for overall direction of the organization.

middle managers

Implement strategies and policies set by top managers and supervise first-line managers.

first-line managers

Make short-term operating decisions and supervise nonmanagerial employees.

team leader

Manager responsible for facilitating team activities toward achieving key results.

functional manager

Responsible for one organizational activity, such as marketing or finance.

general manager

Responsible for several organizational activities.

for-profit

Organizations formed to make money by offering products or services.

non-profit

Organizations formed to offer services, not to make a profit.

how do mgrs. spend their time

Managers spend most of their time communicating, managing human resources, and decision-making.

technical skills

Job-specific knowledge needed to perform well in a specialized field.

conceptual

The ability to think analytically and understand how parts of an organization fit together.

human skills

The ability to work well with others.

soft skills

Interpersonal skills that enable effective communication and teamwork.

Henry Mintzberg

Identified three key managerial roles: interpersonal, informational, and decisional.

figurehead

Manager performs ceremonial and symbolic duties.

interpersonal roles

Managers interact with people inside and outside their units.

informational roles

Managers receive and communicate information.

decisional roles

Managers use information to make decisions to solve problems or take advantage of opportunities.

7 challenges for managing

Includes managing for competitive advantage, diversity, globalization, information technology, ethical standards, sustainability, and personal happiness.

reasons for studying theoretical perspectives

Understanding management theories helps improve practice, clarify assumptions, and guide actions.

historical and contemporary viewpoints

Include classical, behavioral, quantitative, systems, contingency, and quality-management perspectives.

classical viewpoint

Emphasized finding ways to manage work more efficiently through scientific and administrative management.

behavioral viewpoint

Emphasized the importance of understanding human behavior and motivating employees.

quantitative management

Uses mathematics and statistical techniques to manage resources.

scientific management

Emphasizes scientifically studying work methods to improve efficiency.

principles of scientific management

Developed by Frederick Taylor to increase productivity through standardization and training.

Frederick Taylor

Father of scientific management who emphasized efficiency through study and measurement.

time and motion study

Breaking down tasks into basic motions and timing each for efficiency.

administrative management

Focuses on managing the total organization rather than individual workers.

functions of management

Planning, organizing, leading, and controlling.

bureaucracy

A rational, efficient organization based on rules, hierarchy, and merit.

early behaviorism

Emphasized understanding human behavior to improve productivity.

human relations movement

Proposed better human relations lead to higher productivity.

behavioral science

Relies on scientific research for developing theories about human behavior.

Mary Parker Follett

Advocated cooperation and coordination between managers and workers.

Elton Mayo

Conducted the Hawthorne studies showing worker productivity increased with attention and recognition.

Hawthorne effect

Workers work harder when they receive attention.

Maslow’s Hierarchy of Needs

Five levels of needs: physiological, safety, social, esteem, and self-actualization.

Theory X

Managers assume employees are lazy and need control.

Theory Y

Managers assume employees are responsible and self-motivated.

management science

Uses math and science to aid problem-solving and decision-making.

operations management

Focuses on managing production and delivery efficiently.

systems viewpoint

Sees the organization as interrelated parts operating together to achieve a common purpose.

closed system

Has little interaction with its environment.

open system

Continually interacts with its environment.

complexity theory

Recognizes organizations as complex and adaptive systems.

contingency viewpoint

States management approaches depend on the situation.

evidence-based management

Using the best available evidence to make decisions.

quality-management

Focuses on quality improvement throughout the organization.

quality control

Monitoring products to ensure quality standards are met.

quality assurance

Focuses on worker performance and preventing defects.

total quality management (TQM)

Comprehensive approach for continuous improvement of products and services.

learning organization

Actively creates, acquires, and transfers knowledge within itself.

triple bottom line

Represents people, planet, and profit.

social audit

Systematic assessment of a company’s performance in social responsibility areas.

stakeholders

People or groups affected by or who affect an organization’s actions.

internal stakeholders

Include employees, owners, and board of directors.

task environment – and groups within

Includes customers, suppliers, competitors, distributors, and strategic allies.

general environment – and forces within

Includes economic, technological, sociocultural, demographic, political-legal, and international forces.

ethics

Standards of right and wrong that influence behavior.

values

Deeply held beliefs about what is right or desirable.

ethical dilemma

A situation where you must decide between conflicting values.

utilitarian approach

Decision that results in the greatest good for the greatest number.

individual approach

Decision guided by what’s best for the individual’s long-term interest.

moral-rights approach

Respects the fundamental rights of human beings.

justice approach

Respects impartial standards of fairness and equity.

three levels of moral development

Preconventional, conventional, and postconventional.

Insider trading

Illegal trading of a company’s stock based on confidential information.

Sarbanes-Oxley Act

Established requirements for proper financial record keeping for public companies.

ethical climate

Shared perceptions of what is ethically correct behavior in an organization.

whistle-blower

An employee who reports misconduct within an organization.

code of ethics

Formal statement of an organization’s values and ethical standards.

sustainability

Meeting present needs without compromising future generations.

social responsibility

A business’s duty to contribute to the well-being of society.

CSR

Corporate Social Responsibility; integrating social and environmental concerns into operations.

Carroll’s social responsibility pyramid

Economic, legal, ethical, and philanthropic responsibilities.

corporate governance

System of monitoring and controlling top management to ensure accountability.

climate change

Major changes in global temperatures and weather patterns over time.

globalization

The increasing interdependence of economies, cultures, and populations.

global village

Refers to the shrinking of time and space as the world becomes more interconnected.

global economy

The worldwide interdependence of resource flows, goods, and services.

multinational company/organization

Operates in multiple countries.

ethnocentric

Believes one’s own culture or country is superior.

parochialism

Narrow view in which people see things only through their own perspective.

polycentric managers

Believe host-country managers know best.

geocentric managers

Use the best people and practices from around the globe.

why companies expand globally

To gain new markets, lower costs, access resources, and spread risk.

global outsourcing

Using suppliers outside the U.S. to provide goods or services.

importing

Buying goods from another country.