Intro to Management

"Done Well"

Assigning responsibility to others, designing jobs, creating organizational structure, implementing human resource practices to hire, recruit, train, develop, compensate, motivate, and provide for the well-being of the employees.

Managing Business Performance

Process management, measurement, and business improvement.

Key managerial skills

Leadership, decision-making.

Working with individuals and groups

Communication, conflict resolution, and negotiation.

Importance of Management

Applying management theory to management situations.

Management Limitations

The challenges of conducting research on management practices.

Limitations of a single course in management

It is just the start of a life-long journey to learn about management.

Specialization of Labor

Individual workers that specialize in performing the sub-tasks that are involved in the creation of a product.

Systematic Management

Engineers and economists performed the major higher-level managerial tasks in factories.

Scientific Management

Frederick Taylor's approach using clocks to record the time required to perform various tasks in the workplace and then developing alternative ways to perform those tasks in order to reduce the overall time required.

The Gilbreths

Time and motion studies to promote efficiency.

Henry Gantt

Creation of visual charts to describe the elapsed time required to perform tasks.

Lean Manufacturing

Focuses on removing waste from production.

Administrative Management

Henri Fayol and Max Weber were among the first to put forth the broad theories of how to manage organizations more efficiently.

Henri Fayol

14 Principles of Management.

Bounded Rationality

Herbert Simon's idea that managers are able to collect and process all the information necessary to make perfect decisions.

The "Right Work" Elements

Vision, mission, goals, plans.

Vision

Describes an organization's purpose for existence. Focus is not on making a profit or satisfying shareholders' expectations but providing services that serve an important need in society.

Mission

Describes the products and services an organization will provide, identifies the constituents it intends to serve, and provides the reasons why those constituents should support the organization.

Goals

Identify the outcomes that an organization is trying to achieve. Achievement of the goals should be an indicator that the organization is successful.

"For-Profit" Organizations Goals

Financial goals + operational goals.

Return on Capital Employed (ROCE)

Level of profit earned relative to the capital invested to generate that profit.

Days Receivables Outstanding

Accounts receivable balance divided by the daily average sales.

Days of inventory on hand

Average balance of inventory divided by the average cost of sales.

Inventory Turnover

Cost of sales divided by the average inventory balance.

Service Levels

Delivering the correct product or service within a given time.

Customer Satisfaction Levels

Based on survey/feedback data.

Production Levels

Number of units produced to standard within a given time period.

Error or Defect Levels

Number or percent of non-conforming units or errors.

Strategy

The actions managers take to achieve the organization's goals. How the organization intends to outperform its rivals.

Differentiation Strategy

Distinguishing products/services from competitors in a way that makes offerings more attractive to customers than rival products/services.

Low-Cost Strategy

Developing the least expensive ways, vs. competitors, to produce and deliver products/services.

Combination Strategy

Selects a few differentiation features for its products/services but is able to provide them with a lower cost structure than rivals.

Focus Strategy

Targets a market segment that the business can serve more effectively than rivals (geographic, demographic, or specialized product/service segment of the market).

Strategy Development Process

1. Develop/Review/Update the Vision, Mission, and Goals of the Organization 2. Conduct an external analysis 3. Conduct an internal analysis 4. Evaluate and select the best strategy 5. Implement said strategy.

Porter's Five Forces

Analysis tool that looks at factors influencing profitability - Bargaining Power of Buyers; Bargaining Power of Suppliers - Threat of New Entrants - Threat of Substitute products/service - Industry Life Cycle Analysis - Macro Environment Analysis.

Industry Life Cycle Analysis

Tool that looks at typical stages of Evolution of Industries - Embryonic - Growth - Shakeout - Mature - Decline.

Macro Environment Analysis

Tool evaluates factors that broadly affect all industries. Assesses them as opportunity, threat, both, or neither.

Internal Analysis Tools

Quality, efficiency, innovation, customer responsiveness, distinctive competencies.

Implementing Strategy - Organization Structure - Monitoring and Control - Culture.

Plans

Outlines the specific actions to be taken, resources required, and timeline for completion of various initiatives.

Strategic Plans

Identifies core strategy + steps and key initiatives to undertake.

Business Plans

Identifies key goals, the steps, key initiatives, required resources, and timeline to undertake.

Marketing Plans

Identifies marketing-related goals, key customers and customer segments, products/services, steps, key initiatives, resources, and timeline.

Functional Plans

Identifies goals for each function in the organization + the usual.

Financial Plans

Identifies anticipated financial resource requirements within the organization for a given time period.

Research and Development Plans

Identifies various initiatives for growth as well as maintaining competitiveness; Includes the usual.

Technology Plans

Identifies key tech resources to support products/services and function activities + the usual.

Human Resource Plans

Identifies key talent required to support various strategies and plans; A lot of programs related to employees.

National Labor Relations Act of 1935

Gave workers in private industries the legal right to operate, engage in collective bargaining, and to strike.

Fair Labor Standards Act of 1938

Established the 40-hour work week; Requirement to pay overtime at 1 1/2 the regular rate for any hours worked beyond 40.

Social Security Law of 1935

Provided retirement income; Age 65 or older.

Equal Pay Act of 1963

Illegal to have different pay rates for the same job based on gender.

Civil Rights Act of 1964

Illegal to discriminate in employment decisions based on race, color, religion, or national origin.

Occupational Safety and Health Act of 1970

Passed to help protect safety and health of workers.

Commercial Code

Set of laws that regulate and facilitate commercial transactions.

Uniform Commercial Code

Purpose is to provide standard statutes nationwide for governance of commercial activities.

Environmental Protection Laws and Regulations

Legal responsibility of business to protect the environment (Clean Air Act, Clean Water Act).

Environmental Protection Agency (EPA)

Primary federal government responsible for enforcing these statutes, etc.

Industry Specific Regulations

Publicly Trade Companies, Oil and Gas Industry, Financial Services, and Professional Baseball.

Internal Unethical Behavior

Level of Moral Development of the individual, willingness to accept and obey authority, ability to control their behavior.

External Unethical Behavior

Culture of the organization, consequences of unethical behavior, ease of opportunity to act unethically.

Utilitarian Approach

Choose the option that produces the greatest