Management 301 Study Set Exam

four functions of management

1. planning

2. organizing

3. leading

4. controlling

planning (function of management)

Delivering strategic value through systematic decision-making about goals

organizing (four functions of management)

Building a dynamic organization by assembling and coordinating resources

leading (four functions of management)

mobilizing people by stimulating high employee performance

controlling (four functions of management)

Learning and changing through monitoring and adjusting performance

competitive advantage

Created and sustained through

o Innovation

o Quality

o Service

o Speed

o Cost Competitiveness

o Sustainability

Environmental Analysis

• Environmental uncertainty stems from lack of information needed to predict the future

• Environmental complexity refers to the number and interconnectedness of issues managers must handle

• Environmental dynamism relates to the degree of rapid, discontinuous change in an industry

Organizational Culture

• Defined as shared assumptions about organizational goals and practices

• Strong cultures have widespread agreement on goals

• Weak cultures show confusion and conflicting values

• Can be diagnosed through:

  1. Mission statements and goals

  2. Business practices

  3. Symbols and ceremonies

  4. Stories people tell

  5. Cultural assessments

Culture Management

• Active management of culture is essential

• Regular communication with employees

• Setting proper examples

• Celebrating those who exemplify desired culture

Environmental Layers

• macro environment

• competitive environment

• internal environment

macro environment

Economy, technology, legal/regulations, demographics, social issues, natural environment

Competitive Environment

Rivals, suppliers, buyers, new entrants, substitutes/complements

Internal Environment

Culture, values, organizational climate

Characteristics and Types of Decisions

• Managerial decisions are characterized by risk, uncertainty, lack of structure, and conflict

Two main types of decisions

• programmed

  • non-programmed

programmed decisions

Routine decisions with clear procedures

Nonprogrammed decisions

Novel, complex decisions without proven answers

Decision-Making Approaches

maximizing, satisficing, optimizing

maximizing

Choosing the option with best possible outcome

Satisficing

Selecting an acceptable option, though not necessarily the best

Optimizing

Finding the best balance among multiple goals

Barriers to Effective Decision Making

Psychological biases, time pressures and social realities

Psychological Biases

Motivated reasoning, Confirmation bias, Illusion of control, Framing effects, Discounting the future

Strategic Management Process

1. Establishing Mission, Vision, and Goals

2. Environmental Analysis

• External: PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental)

• Internal: Resource analysis of strengths and weaknesses

3. SWOT Analysis

• Strengths (internal)

• Weaknesses (internal)

• Opportunities (external)

• Threats (external)

4. Strategy Formulation

• Corporate Strategy: Determines business portfolio and resource allocation

• Business Strategy: Defines competitive approach (low-cost or differentiation)

• Functional Strategy: Implemented by each department

Business Strategy

• Cost Leadership: Offering the lowest prices in an industry

• Differentiation: Creating unique products or services that command premium prices

• Focus Strategy: Targeting a narrow segment of the market with either cost leadership or differentiation

Corporate Social Responsibility (CSR)

• Based on the triple bottom line: economic, social, and environmental performance

Four types of responsibilities:

1. Economic: Produce goods/services at sustainable prices

2. Legal: Comply with all applicable laws

3. Ethical: Meet social expectations beyond laws

4. Philanthropic: Additional beneficial activities

Ethics

• Relativism: Bases ethical behavior on others' opinions and behaviors

• Virtue ethics: Based on what a morally mature person would consider right

International Business Operations

• Outsourcing: Contracting with external providers for goods/services

• Offshoring: Moving work to other countries

• Inshoring (reshoring): Bringing work back to headquarters country

• Insourcing: Producing goods/services in-house

Global Market Entry Strategies

Exporting

• Advantages: Scale economies, consistent with global strategy

• Disadvantages: High transport costs, tariff barriers, no low-cost sites

Licensing & Franchising

• Advantages: Lower development costs and political risk

• Disadvantages: Loss of control over technology/quality

Joint Ventures

• Advantages: Access to local knowledge, shared costs/risks

• Disadvantages: Potential conflicts with partners, loss of control

Wholly Owned Subsidiaries

• Advantages: Complete control over operations and technology

• Disadvantages: High cost and risk

International Workforce

• Expatriates: Parent-company nationals working abroad

• Host-country nationals: Local employees in foreign subsidiaries

• Third-country nationals: Employees from other countries

• Inpatriates: Foreign nationals working at parent company

Hofstede's Cultural Dimensions

Cultural Considerations:

• Power distance: Measures how much a society accepts and expects unequal power distribution

• Individualism/collectivism: Reflects whether people define themselves as individuals or group members

• Uncertainty avoidance: Shows how comfortable a society is with ambiguity and uncertainty

• Masculinity/femininity: Describes whether a society values competition and achievement (masculine) or quality of life and caring for others (feminine)

Organizational Structures

• Functional Organization: Based on specialized activities with clear departmental divisions

• Divisional Structure:

  • Product-based

  • Customer-based

  • Geographic-based

• Matrix Organization: Dual reporting relationships that combine functional and project management

• Network Organization: Independent firms collaborating with flexible structure

Core Capabilities

• core

• ordinary

• dynamic

core

core capability

Knowledge, expertise, or skill that enables a company to be a leader in providing goods or services

Ordinary capabilities

Basic administrative and operational functions needed for current products

Dynamic capabilities

"Higher-level" strategic capabilities that aid rapid adaptation

Decentralization

• Centralized: High-level executives make most decisions

• Decentralized: Lower-level managers make important decisions

Centralized

High-level executives make most decisions

Decentralized

Lower-level managers make important decisions

Quality Initiatives

Total Quality Management (TQM): Integrative approach supporting customer satisfaction through various tools resulting in high-quality goods/services

Six Sigma Quality: Systematic analysis of work processes to eliminate defect causes and standardize processes

ISO 9001: Quality standards with seven principles

Total Quality Management (TQM)

Integrative approach supporting customer satisfaction through various tools resulting in high-quality goods/services

Six Sigma Quality

Systematic analysis of work processes to eliminate defect causes and standardize processes

ISO 9001

Quality standards with seven principles

Advanced Manufacturing Approaches

Computer Integrated Manufacturing (CIM)

Flexible Factories

Lean Manufacturing

Concurrent Engineering

Computer-integrated manufacturing (CIM)

Using computer-aided design and manufacturing to optimize production

Flexible factories

Manufacturing plants with short production runs organized around products with decentralized scheduling

Lean manufacturing

Operations that eliminate unnecessary steps and continuously strive for improvement

Concurrent engineering

Design approach where all functions cooperate to produce high-quality products meeting customer needs

HRM Planning Process

Three key components:

1. Planning/Environmental Scanning

2. HR Planning and Programming/HR Activities

3. Evaluating Results

HR Activities

• Recruitment: Development of a pool of applicants for jobs

• Selection: Choosing candidates through applications, interviews, tests, etc.

• Performance Appraisal: Assessment of employee's job performance

Causes of Employee Turnover

• Lack of empowerment

• Poor communication

• Inadequate compensation

• Unsatisfactory working conditions

• Limited career development opportunities

Leadership

A leader is one who influences others to attain goals

the best leaders

• challenge the process

• inspire a shared vision

• enable others to act

• model the way

  • encourage the heart

Vision

• A mental image of a possible and desirable future state of the organization

• Necessary for effective leadership

• Can be developed for any job, work unit, or organization

leadership styles

autocratic, democratic/ participative, laissez-faire

Autocratic leadership

Leader makes decisions alone and announces them to the group

Democratic/Participative leadership

Leader solicits input from subordinates

Laissez-faire leadership

Leader provides minimal direction and allows subordinates to make decisions

transformational leader

motivates people to transcend their personal interests for the good of the group

transactional leader

Manages through transactions, using legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered

Situational Leadership Theory

• Originally called life-cycle theory of leadership

• Highlights the maturity of followers as the key situational factor

maturity factors

• Job maturity: Level of follower's skills and technical knowledge

• Psychological maturity: Follower's self-confidence and self-respect

• The more mature the followers, the less the leader needs to engage in task performance behaviors

Motivation

• Forces that energize, direct, and sustain a person's efforts

• A highly motivated person works hard toward achieving performance goals

key behaviors for motivation

Effective managers motivate people to:

1. Join the organization

2. Remain in the organization

3. Come to work regularly

4. Exhibit good citizenship

5. Attend to work activities

law of effort

Behavior followed by positive consequences will likely be repeated

Four Potential Consequences of Behavior

1. Positive reinforcement

2. Negative reinforcement

3. Punishment

4. Extinction

Maslow's Need Hierarchy

Five major types of needs:

1. Physiological needs

2. Safety needs

3. Social needs

4. Esteem needs

5. Self-actualization

Herzberg's Two-Factor Theory

hygiene factors and motivators

Hygiene factors

Characteristics of the workplace (company policies, working conditions, pay, supervision) that can make people dissatisfied

motivators

Factors that make a job more motivating (additional job responsibilities, opportunities for personal growth and recognition, feelings of achievement)

Job Design (3 options)

rotation, enlargement and enrichment job

job rotation

changing from one task to another to alleviate boredom

job enlargement

giving people additional tasks at the same time to alleviate boredom

job enrichment

changing a task to make it inherently more rewarding, motivating and satisfying.

type of teams

1. work teams

2. project and development teams

3. parallel teams

4. management teams

5. transnational teams

6. virtual team

   1. teaming

work teams

Groups that make or do things like manufacturing, assembling, selling, or providing servicepr

project and development teams

Groups that work on long-term projects but disband once the work is completed

parallel teams

Teams that operate separately from the regular work structure and are temporary

management teams

Groups that coordinate and provide direction to subunits and integrate work among them

transnational teams

multicultural teams that are often geographically dispersed

Virtual Teams

Teams that are physically dispersed and communicate electronically more than face-to-face

Teaming

A strategy of temporary, changing teams that collaborate "on the fly"

Self-Managed Teams

autonomous work groups and self-designing teams

autonomous work groups

Teams that control decisions about and execute a complete range of tasks

Self-Designing Teams

Teams with responsibilities of autonomous work groups, plus control over hiring, firing, and assigning tasks to members

Team Development Stages (Tuckman Model)

1. forming

2. storming

3. norming

   1. performing

forming

team members attempt to establish ground rules for acceptable behavior.

storming

conflict arises as members jockey for power and status positions.

norming

members agree on shared goals, establish norms and develop closer relationships

performing

the team channels its energy into performing its tasks effectively

communication

the transformation of information and meaning from one party to another through shared symbols gene

general communication model

1. sender

2. communication channel

   1. receiver

sender

person with intended meaning who encodes a messageco

communication channel

medium through which message travels e

receiver

person who decodes and perceives meaning of the message

one way communication

information flows only from sender to receiver with no feedback loop.

two-way communication

information flows in both directions; receiver provides feedback and sender is receptive to it.

media richness

the degree to which a communication channel conveys information

rich media

Highest to lowest:

1. face to face conversations

2. videoconferences

   1. phone calls

lean media

Highest to lowest

1. email

2. text messages

3. blog posts

4. memos