MAN 3025 Exam 1

Why do Organizations value Managers?

The Multiplier Effect

The Multiplier Effect

Your Influence on the organization is multiplied

far beyond the results that can be achieved by

just one person acting alone.

What do good managers create?

Value

Rewards of Studying Management

1) You will understand how to deal with organizations from the outside

2) You will understand how to relate to your supervisors

3) You will understand how to interact with coworkers

4) You will understand how to manage yourself in the workplace

5) You might make more money

Rewards of Practicing Management

1. You and your employees can experience a sense of accomplishment

2. You can stretch your abilities and magnify your range

3. You can build a catalog of successful products or services

4 Principle Management Functions

Planning, Organizing, Leading, Controlling

Planning

Determining organizational goals and a means for achieving them

Organizing

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

Leading

Directing, inspiring, and motivating people to work hard to achieve organization's goals

Controlling

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

Four Levels of Management

top managers, middle managers, first-line managers, team leaders

Top Managers

Make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it

-Deal with ambiguous problems that could have far-reaching consequences

Middle Managers

Implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them

First-Line managers

Make short-term operating decisions, directing the daily tasks of non managerial personnel

Team Leaders

Managers responsible for facilitating team activities toward goal accomplishment

Functional Managers

Responsible for just one organizational activity

General Managers

Responsible for several organizational activities

Three Types of Managerial Roles

1. Interpersonal

2. Informational

3. Decisional

Interpersonal Roles

Interact with people inside and outside their work units

Figurehead, Leader, Liaison

Informational Roles

Receive and communicate information

Monitor, Disseminator, Spokesperson

Decisional Roles

Category of managerial roles including entrepreneur, disturbance handler, resource allocator, and negotiator

Three types of skills exceptional managers need

1. Technical

2. Conceptual

3. Human

Technical Skills

Skills that involve the ability to perform tasks in a specific discipline or department

-Most important at the lower levels of management (first-line managers)

Conceptual Skills

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts

-Most important at the higher levels of management (top managers)

7 Challenges Managers Face

1. Managing for Competitive Advantage: Staying Ahead of Rivals

2. Managing for Technological Advances: Dealing with the "New Normal"

3. Managing for Inclusion and Diversity: The Future Won't Resemble the Past

4. Managing for Globalization: The Expanding Management Universe

5. Managing for Ethical Standards

6. Managing for Sustainable Development: The Business of Green

7. Managing for Happiness and Meaningfulness

What are the components that make up the Core of Management in the Model of Career Readiness

Knowledge, Soft Skills, Attitudes, Other Characteristics

4 Steps for Developing Career Readiness

1. Examine: Look over the list of career readiness competencies and pick 2 or 3 that affect how you're performing now.

2. Consider: Work out how to use material from the text to build those competencies.

3. Experiment: Take small steps aimed at developing them.

4. Evaluate: Look at what happened during your small‑step experiments, then start the cycle again.

Who created Modern Management?

Peter Drucker

What were Drucker's beliefs

• Workers should be treated as assets.

• The corporation could be considered a human

community.

• There is "no business without a customer."

Timeline of Management Perspectives

1. Classical Viewpoint

2. Behavioral Viewpoint

3. Quantitative Viewpoint

4. Systems Viewpoint

5. Contingency Viewpoint

6. Contemporary Approaches

Classical Viewpoint

Emphasized finding ways to manage work more efficiently, had two branches - scientific and administrative

Problem: Too Mechanistic

Scientific management

Founded by Taylor and the Gilbreths, the management approach that emphasizes the scientific study of work methods to improve the productivity of individual workers

Administrative Management

The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness

Pioneered by Spaulding, Fayol, and Weber

"Father of African-American Management"

Charles Clinton Spaulding

What did Administrative Management highlight?

The need to enrich "the lives of his organizational

and community family" while

simultaneously focusing on

making a profit.

Who was the first person to identify the 4 Principal Management Functions?

Henri Fayol

Weber's 5 bureaucratic beliefs for a better-performing organization

1. A well-defined hierarchy of authority

2. Formal rules and procedures

3. A clear division of labor, with parts of a complex job being handled by specialists

4. Impersonality, without reference or connection to a particular person

5. Careers based on merit

Behavioral Viewpoint

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

Three components of the Behavioral Viewpoint

1. Early behaviorism

2. The human relations movement

3. Behavioral science

Early behaviorism

Pioneered by Munsterberg, Follett, & Mayo

The father of industrial psychology is

Hugo Munsterberg

How did Munsterberg propose that psychologists could contribute to industry?

1. Study jobs and determine which people are best suited to specific jobs.

2. Identify the psychological conditions under which employees do their best work.

3. Devise management strategies to influence employees to follow management's interests

What did Mayo discover?

The Hawthorne Effect

The Hawthorne Effect

Employees worked harder if they received added attention, if they thought that managers cared about their welfare, or that supervisors paid special attention to them.

Human Relations Movement

Pioneered by Maslow and McGregor

Hierarchy of Needs

Maslow observed that his patients had certain innate needs that had to be satisfied before they could reach their fullest potential.

Who developed theory X and theory Y?

Douglas McGregor

Theory X

Pessimistic view assuming workers dislike work, avoid responsibility, and require close supervision and coercion.

Theory Y

Positive view assuming workers are self-motivated, seek responsibility, and naturally enjoy work.

Behavioral Science Approach

Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.

4 disciplines of behavioral science

psychology, sociology, anthropology, and economics

Quantitative Viewpoints

Operations Management: Being More Effective

Evidence-based Management: Facing Hard Facts, Rejecting Nonsense

Operations Management

• Schedule and delegate work and job training,

• Plan production to meet customer needs,

• Design services customers want and how to deliver them

Evidence-based management

• Facing the hard facts about what works and what

doesn't,

• Understanding the dangerous half-truths that

constitute so much conventional wisdom about

management, and

• Rejecting the total nonsense that too often passes for

sound advice will help organizations perform better.

4 parts of a system

1. Inputs

2. Transformational processes

3. Outputs

4. Feedback

Characteristics of systems viewpoint

• Systems may be open or closed.

• Synergy in a system creates an

effect that is greater than the sum

of individual efforts.

• Systems viewpoint led to the

development of Complexity

Theory.

Inputs

The people, money, information, equipment, and materials required to produce an organization's goods or services.

Example: For a jewelry designer: design, money, artistic talent, gold and silver, tools, marketing expertise.

Transformational processes

The organization's capabilities in management and technology that are applied to converting inputs into outputs.

Example: Designer's management skills (planning, organizing, leading, controlling), gold and silver smithing tools and expertise, website for marketing.

Outputs

The products, services, profits, losses, employee satisfaction or discontent, etc., produced by the organization.

Example: Gold and silver rings, earrings, bracelets, etc.

Feedback

Information about the reaction of the environment to the outputs, which affects the inputs.

Example: Web customers like African-style designs, dislike imitation Old English designs

contingency viewpoint

Began to develop when managers discovered that under some circumstances better results could be achieved

by breaking the one-best-way rule.

3 Aspects of the Contemporary Viewpoint

• The Learning Organization: Sharing Knowledge and

Modifying Behavior

• High-Performance Work Practices

• Shared Value and Sustainable Development: Going

beyond Profits

3 parts of a learning organization

1. Creating and acquiring

knowledge

2. Transferring knowledge

3. Modifying behavior

Key attributes of a learning organization

• Keep on learning.

• Individuals who embrace

learning make the

organization smarter and

contribute to its growth.

• A key challenge for

managers, therefore, is to

establish a culture of

shared knowledge and

values that will enhance

their employees' ability to

learn.

High-Performance Work Practices

Role of management, according to this viewpoint, is

to create human resource (HR) practices that foster

employee development and overall well-being.

Examples of High-Performance Work Practices

• Ability-enhancing practices

• Motivation-enhancing practices

• Opportunity-enhancing practices

Triple Bottom Line

IN THIS VIEW OF CORPORATE PERFORMANCE, AN

ORGANIZATION HAS A RESPONSIBILITY TO ITS PEOPLE,

PLANET, AND PROFIT.

Who cares the most about the triple bottom line?

Millennials & Gen Z

Two types of stakeholders

Internal and External

Internal Stakeholders

People who work for or own the business such as employees, directors, and stockholders

External Stakeholders

The general and task environment

EXAMPLES OF GROUPS THAT INTERACT WITH THE ORGANIZATION ON A REGULAR BASIS.

1. CUSTOMERS

2. COMPETITORS

3. SUPPLIERS

4. DISTRIBUTORS

5. STRATEGIC ALLIES

6 forces of the general environment

1. economic

2. technological

3. sociocultural

4. demographic

5. political-legal

6. international

Can you control any of the forces in the general environment?

No, but you can control some in the task environment

DEFINE ETHICS AND VALUES

ETHICAL STANDARDS MAY VARY AMONG COUNTRIES

AND AMONG CULTURES

Examples of ethical misconduct

• CONFLICTS OF INTEREST

• ABUSIVE BEHAVIORS

• VIOLATIONS OF HEALTH AND SAFETY REGULATIONS

• CORRUPTION

• DISCRIMINATION

• SEXUAL HARASSMENT

4 approaches to resolving ethical dilemmas

1. utilitarian approach

2. individual approach

3. moral-rights approach

4. justice approach

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, which ultimately are in everyone's self-interest

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

Sarbanes-Oxley Act

Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.

How can organizations promote ethics?

1) create a strong ethical climate

2) screening prospective employees

3) instituting ethics codes and training programs

4) rewarding ethical behavior

Corporate Social Responsibility Pyramid

1. Philanthropic Responsibilities

2. Ethical Responsibilities

3. Legal Responsibilities

4. Economic Responsibilities

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

What can good corporate governance lead to?

more ethical and socially responsible organizations

What is corporate governance about?

Matters such as long-term strategies, sustainable finances, accurate reporting, and positive work environment.

Strategic Positioning

Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

3 levels of strategy

1. Corporate Level

2. Business Level

3. Functional Level

Corporate Level Strategy

What business or businesses should we be in?

Business Level Strategy

How should we compete in this industry?

Functional-Level Strategy

How can business functions support the business-level strategies

DOES STRATEGIC MANAGEMENT WORK FOR

SMALL AS WELL AS LARGE FIRMS?

Strategic management implementation is

associated with increased small business

performance

5 Steps of the Strategic Management Process

1. Establish the mission, vision, and value statements

2. Assess the current reality

3. Formulate corporate, business, and functional strategies

4. Strategic Implementation

5. Maintain strategic control

How to assess the current reality?

1. SWOT

2. VRIO

3. Forecasting

4. Benchmarking

VRIO

Framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization

Forecasting

Trying to predict the future

Trend Analysis

Contingency Planning: Predicting

Alternative Futures

Ways to formulate corporate, business, and functional strategies

1. Three overall types of strategy (growth, stability, defensive)

2. BCG Matrix (dogs, stars, question marks, cash cows)

3. Diversification Strategy

Growth Strategy

Involves expansion, as in sales revenues, market share, number of employees, or number of customers.

Stability Strategy

Involves little or no significant change