Management chapters (1-3 5-8 & 13) (30% of final)

Management

The art of getting things done through people.

The Multiplier Effect

The concepttion’ a manager'ss activitiinc multiplied far beyond the results achieved by one person alone.

Efficiency

Using resources—people, money, raw materials—wisely and cost-effectively.

Effectiveness

Making the right decisions and successfully carrying them out to achieve the organization's goals.

Planning

Setting goals and deciding how to achieve them.

Organizing

Arranging tasks, people, and other resources to accomplish the work.

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.

Top Managers

Make long-term decisions aboutidua overalll Approach and establish objectives, policies, and strategies.

Middle Managers

Implement the policies and plans of top managers and coordinate activitiesal first-line managers.

First-Line Managers

Make short-term operating decisions, directingrigh daily tasks of nonmanagerial personnel.

Functional Manager

Responsible for just one organizational activity (e.g., Director of Finance).

General Manager

Responsible for several organizational activities (e.g., Executive Vice President).

Interpersonal Roles

Managers interact with people inside and outside (Figurehead, Leader, Liaison).

Informational Roles

Managers receive and communicate information (Monitor, Disseminator, Spokesperson).

Decisional Roles

Managers use information to make decisions (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator).

Technical Skills

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

Conceptual Skills

Ability to think analytically, to visualize an organization as a whole and understand how parts work together.

Human Skills (Soft Skills)

The ability to work well in cooperation with other people to get things done.

Competitive Advantage

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

Four Building Blocks of Competitive Advantage

1. Responsiveness to customers, 2. Innovation, 3. Quality, 4. Efficiency.

Sustainability

Economic development that meetszation.

Vision Statement

"What do we want to become?" - Expresses where the organization wants to go strategically.

Values Statement

"What the organization stands for" - Core priorities and employee embodiment.

Strategic Planning

Done by Top Managers for 1-5 years.

Tactical Planning

Done by Middle Managers for 6-24 months.

Operational Planning

Done by First-line Managers for 1-52 weeks.

SMART Goals

Specific, Measurable, Attainable, Results-oriented, and Target dates (Time-bound).

Management by Objectives (MBO)

1. Jointly set objectives, 2. Develop action plan, 3. Periodically review performance, 4. Performance appraisal/rewards.

Planning/Control Cycle

1. Make the plan, 2. Carry out the plan, 3. Control direction by comparing results with plan, 4. Control direction by taking corrective action.

VRIO Framework

Used to analyze competitive potential: Value, Rarity, Imitability, and Organization.

Scientific Management

Emphasized the scientific study of work methods to improve the productivity of individual workers.

Frederick W. Taylor

Known as the "father of scientific management"

Frank and Lillian Gilbreth

Industrial engineers who used motion studies to eliminate unnecessary movements in tasks.

Administrative Management

Concerned with managing the total organization rather than just individual tasks.

Henri Fayol

First to identify the major functions of management: planning, organizing, leading, and controlling.

Max Weber

Believed that a bureaucracy was a rational, efficient, ideal organization based on principles of logic.

Behavioral Viewpoint

Emphasized the importance of understanding human behavior and motivating employees toward achievement.

Hugo Munsterberg

The "father of industrial psychology"

Mary Parker Follett

Believed organizations should be democratic, with managers and employees working cooperatively.

Hawthorne Effect

Employees work harder if they receive added attention or believe managers care about their welfare (Elton Mayo).

Human Relations Movement

Proposed that better human relations could increase worker productivity (Maslow and McGregor).

Theory X

Represents a pessimistic, negative view of workers as irresponsible and resistant to change.

Theory Y

Represents an optimistic, positive view of workers as capable of accepting responsibility and being creative.

Quantitative Management

Application of statistics and computer simulations to management (Management Science/Operations).

Operations Management

Focuses on managing the production and delivery of products or services more effectively.

Systems Viewpoint

Regards the organization as a system of interrelated parts that operate together to achieve a goal.

Open System

An organization that continually interacts with its environment.

Closed System

An organization that has little interaction with its environment.

Contingency Viewpoint

Emphasizes that a manager's approach should vary according to the individual and situation.

Evidence-Based Management

Translating principles based on best evidence into organizational practice.

Quality Control

The strategy for minimizing errors by managing each stage of production.

Quality Assurance

Focuses on the performance of workers, urging employees to strive for "zero defects."

Total Quality Management (TQM)

A comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction.

Learning Organization

An organization that actively creates, acquires, and transfers knowledge within itself.

Stakeholders

People whose interests are affected by an organization’s activities.

Internal Stakeholders

Consist of employees, owners, and the board of directors.

Owners

Consist of all those who can claim the organization as their legal property.

Board of Directors

Members elected by the stockholders to see that the company is being run according to their interests.

External Stakeholders

People or groups in the organization’s external environment affected by it.

Task Environment

11 groups that present daily tasks: Customers, Competitors, Suppliers, Distributors, Strategic Allies, Unions, Local Communities, Financial Institutions, Government Regulators, Special-Interest Groups, and Mass Media.

General Environment

Macro forces: Economic, Technological, Sociocultural, Demographic, Political-Legal, and International.

Ethics

The standards of right and wrong that influence behavior.

Values

Relatively permanent and deeply held underlying beliefs that determine behavior.

Ethical Dilemma

A situation where you must decide whether to pursue a course of action that may benefit you but is unethical.

Utilitarian Approach

Guided by what will result in the greatest good for the greatest number of people.

Individual Approach

Guided by what will result in the individual’s best long-term interests.

Moral-Rights Approach

Guided by respect for the fundamental rights of human beings.

Justice Approach

Guided by respect for impartial standards of fairness and equity.

Insider Trading

The illegal trading of a company's stock by people using confidential company information.

Sarbanes-Oxley Act (2002)

Established requirements for proper financial record keeping for public companies.

Kohlberg's Levels of Moral Development

Preconventional (follows rules), Conventional (follows expectations), Postconventional (guided by internal values).

Social Responsibility

A manager's duty to take actions that will benefit the interests of society and the organization.

Corporate Social Responsibility (CSR)

The notion that corporations are expected to go above and beyond following the law.

Carroll’s CSR Pyramid

From bottom to top: Economic (Profit), Legal (Law), Ethical (Ethics), and Philanthropic (Good Citizen).

Triple Bottom Line

Represents People, Planet, and Profit (Social, Environmental, and Financial performance)

Planning

Setting goals and deciding how to achieve them.

Business Plan

A document that outlines a proposed firm’s goals and strategy for achieving them.

Business Model

Outlines the need the firm will fill, operations, and expected revenues/expenses.

Strategy

A large-scale action plan that sets the direction for an organization.

Strategic Management

Process involving managers from all parts of the organization to implement strategies.

Mission Statement

"What is our reason for being?" - Expresses the purpose of the organization.

Vision Statement

"What do we want to become?" - Expresses where the organization wants to go strategically.

Values Statement

"What the organization stands for" - Core priorities and employee embodiment.

Strategic Planning

Done by Top Managers for 1-5 years.

Tactical Planning

Done by Middle Managers for 6-24 months.

Operational Planning

Done by First-line Managers for 1-52 weeks.

SMART Goals

Specific, Measurable, Attainable, Results-oriented, and Target dates (Time-bound).

Stretch Goals

Structural or "reach" goals that are extremely difficult to achieve but intended to inspire performance.

Management by Objectives (MBO)

1. Jointly set objectives, 2. Develop action plan, 3. Periodically review performance, 4. Performance appraisal/rewards.

Planning/Control Cycle

1. Make the plan, 2. Carry out the plan, 3. Control direction by comparing results with plan, 4. Control direction by taking corrective action.

Standing Plans

Plans developed for activities that occur repeatedly over time (Policies, Procedures, Rules).

Single-Use Plans

Plans developed for activities that are not likely to be repeated in the future (Programs, Projects).

VRIO Framework

Used to analyze competitive potential: Value, Rarity, Imitability, and Organization.

Strategic Management

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.

Strategic Positioning

Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

Three Principles of Strategic Positioning

1. Strategy is the creation of a unique and valuable position. 2. Strategy requires trade-offs in competing. 3. Strategy involves creating a "fit" among activities.

The Strategic-Management Process

1. Establish the mission, vision, and values. 2. Assess the current reality. 3. Formulate the grand strategy. 4. Implement the strategy. 5. Maintain strategic control.

Current Reality Assessment

To look at where the organization stands and see what is working and what could be different to maximize efficiency and effectiveness.

SWOT Analysis

A search for the Strengths, Weaknesses, Opportunities, and Threats affecting an organization.