MGMT3000 Exam 1 Study Guide - Guhde - University of Georgia

Subfields of mgmt

1. Strategic mgmt (macro side)

2. Operations mgmt

3. Organizational behavior (micro side)

Definition of Management

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

4 functions of a manager

Planning, organizing, leading, controlling

Management skills

technical, human, conceptual

Management types (vertical)

First level or supervisory managers -> middle managers -> top managers

Management types (horizontal)

General managers, functional managers, project managers, line managers, staff managers

Things of production

management focus is on production efficiency via organization design and workflow systems and control

humanity of production

management focus is on meeting human needs for greater motivation and engagement to increase effectiveness

Classical perspective (things of production) subfeilds

1. Scientific management

2. Bureaucratic organizations

3. Administrative principles

4. Management science

Scientific management

the application of scientific principles to increase efficiency in the workplace

Mgmt decisions based on precise procedures based on study of workers

Frederick Winslow Taylor

Father of scientific management

Frank and Lillian Gilbreth

Employed motion study to simplify work and improve productivity

(Brick laying)

Bureaucratic organizations

Organization depends on rules and records

Manage on impersonal, rational basis

Managers use power instead of personality to delegate

Max Weber

Created the idea of bureaucratic organizations

Administrative principles

A subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling.

Management science

The careful, objective study of management decisions and procedures in order to improve the operation of businesses and organizations.

Applies mathematics, statistics, and other quantitative techniques to mgmt decision making.

Subsets of management science

Operations research, operations management, and information technology

Humanistic perspective

Understand human behaviors, needs, and attitudes in the workplace

Mary Parker Follett and Chester Barnard

Early advocates of the humanistic perspective

Empowerment

facilitating instead of controlling

Acceptance theory of authority

people can choose to follow management orders

Controlling leadership style

Characterized by close monitoring, micromanagement, and the centralization of decision making

Empowering leadership

Giving employees the authority, resources, and support to make their own decisions and take the initiative.

Human relations movement

proposed that better human relations could increase worker productivity

Hawthornes studies

Hawthorne studies

Professor Elton May studies productivity and the impact of work conditions (environmental factors)

"Hawthorne effect"

Western electric Hawthorne Works in Chicago

Human Resources perspective

A management perspective that suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential.

Maslow's hierarchy of needs

McGregor formulated Theory X and Theory Y about workers motivation

Theory X

assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.

Theory Y

assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.

Behavioral Sciences Approach

uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting

Organization Development (OD)

An interdisciplinary field of behavioral science that seeks to improve the workplace. The idea is to understand how to maximize the effectiveness, potential, and capacity of both people and organizations.

Matrix orgs, corp culture, self-managed teams, mgmt by wandering around

Systems thinking

Process for understanding how seemingly independent units within a larger entity interact with and influence one another.

System, subsystem, and synergy (the whole is greater than the sum of its parts)

Radical decentralization

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

employee engagement

The emotional commitment the employee has to the org and it's goals. (Doesn't mean employee happiness or job satisfaction)

external organizational environment

includes all outside elements that affect the organization

1. Task environment

2. General environment

Task environment

includes entities that directly affect a firm on a constant basis and include competitors, suppliers, and customers

General Environment (6)

factors that affect organizations indirectly

1. Technological

2. Natural

3. Sociocultural

4. Economic

5. Legal/Political

6. International

International Environment

Includes interactions between domestic and foreign environmental forces and between the foreign environmental forces of two countries.

Technological environment

forces resulting from the practical application of science to innovations, products, and processes

Sociocultural Environment

includes the customs, mores, values, and demographic characteristics of the society and determines the business standards that a society is likely to value and accept

Economic Environment

Economic health of the country/region in which the org operates

-consumer purchasing power

-unemployment rate

-interest rates

-exchange rates

-inflation

Legal-Political Environment

Laws and regulations at local, state, and federal levels

Political activists.

Governmental regulatory agencies

Natural Environment

Earth's surface and atmosphere, including living organisms, air, water, soil, and other resources necessary to sustain life

Environmental protection is a critical policy focus worldwide

Corporate Culture

the set of values, ideas, and attitudes that is learned and shared among the members of an organizations and guides employee behavior

(Symbols, stories, heroes, slogans, ceremonies)

Could be positive or negative (toxic culture)

Global mind-set

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

Globalization

The extent to which trade and investments, info, social and cultural ideas, and political cooperation flow between countries.

Leads to increased interdependence

state-owned enterprises (SOEs)

A firm owned and controlled by the state (government).

In 2023, China produced ______ of global EVs

64%

(US produced 10%)

multinational corporation (MNC)

receives more than 25% of its total sales revenues from operations outside parent's home country

Ethnocentric MNC

place emphasis on their home countries

Polycentric MNC

Recognizes and appreciates local differences in tastes, preferences, and business practices.

Geocentric MNC

Favors no single country's market, world oriented

Joint venture

A partnership in which two or more companies (often from different countries) join to undertake a major project and share costs and risks.

Strategies for Entering the International Arena

1. Exporting

2. Global outsourcing

3. Partnerships

Political risk

Risk of loss because of political instability in foreign country

Political instability

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

Hofstede Value Dimensions

How values in the workplace are influenced by culture.

1. Power distance

2. Uncertainty avoidance

3. Individualism and collectivism

4. Masculinity and femininity

5. Long-term vs. short-term orientation

Power distance

the level of acceptance by a society of the unequal distribution of power in institutions

uncertainty avoidance

the degree to which societies are willing to tolerate uncertainty and risk

Individualism

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

Collectivism

A 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 the present and places a high value on tradition and meeting social obligations

General Agreement on Tariffs and Trade (GATT)

a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions to ensure lesser-developed countries in international trade

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

164 member countries by July 2016

European union

International organization comprised of Western European countries to promote free trade among members.

BREXIT- withdrawal of UK

USMCA (United States-Mexico-Canada Agreement)

Replaced NAFTA

Trade flows largely unchanged

Tougher rules on labor and environmental standards, and new provisions for e-commerce and information technology.

3 categories of behavior

codified law, free choice, ethics

Codified law

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

Ethics

standards of moral behavior, that is, behavior accepted by society as right versus wrong

Free choice

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

Studies have found a _____ (though weak) relationship between ethical/social responsible behavior and a firm's financial performance

Positive

Five frameworks for ethical decision making

1. Utilitarian approach

2. Individualism approach

3. Moral-rights approach

4. Justice approach

5. Practical approach

Utilitarian approach

moral behavior produces the greatest good for the greatest number

Individualism approach

acts are moral when 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

Distributive justice

different treatment of people should not be based on arbitrary characteristics

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

-accepted by general community

-manager would not hesitate to publicize the decision

-person would feel comfortable explaining the decision to family and friends

3 levels of personal moral development

preconventional, conventional, postconventional

Preconventional stage of moral development

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

Self-Interest

Leader Style: Autocratic/Coercive

Employee Behavior: Task Accomplishment

Conventional stage of moral development

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

Societal Expectations

Leader Style: Guiding/Encouraging; Team oriented

Employee Behavior: Work group collaboration

Postconventional stage of moral development

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.

Internal Values

Leader Style: Transforming, or servant leadership

Employee Behavior: Empowered employees, full participation

Corporate Social Responsibility (CSR)

management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization

Peter F. Drucker

father of modern management

1. First social responsibility of orgs is to ELIMINATE ANY NEGATIVE IMPACT to society caused by its existence and activities, or at least to minimize it.

2. The second responsibility of orgs is to SOLVE SOCIAL PROBLEMS by mobilizing its strengths and to make problem-solving into a business if possible.

Carroll's CSR pyramid

Be profitable -> obey the law -> be ethical -> be a good corporate citizen (philanthropy)

Sustainability

Meeting the current and future needs of stakeholders while preserving the environment and society.

Triple bottom line (3 P's)

People, planet, profit