Principles of Management

MGMT 303

Management

Coordinating and overseeing the work activities of others so their activities are completed efficiently and effectively.

Manager

Someone who coordinates and oversees the work of other people so organizational goals can be accomplished.

Organization

A deliberate arrangement of people to accomplish some specific purpose.

Characteristics of Organizations

Distinct purpose, deliberate structure, and people.

First-line (or frontline) managers

Managers at the lowest level of management who manage the work of non-managerial employees.

Middle managers

Managers between first-line managers and the top level of the organization.

Top managers

Managers at or near the upper levels of the organizational structure who are responsible for making organization-wide decisions and establishing the strategy and goals that affect the entire organization.

First level of management

First-line (or frontline) managers.

Second level of management

Middle managers.

Third level of management

Top managers.

Efficiency

Getting the most output from the least amount of inputs or resources.

Effectiveness

Doing those work activities that will result in achieving goals.

Four Functions of Management

Planning, organizing, leading, and controlling.

Planning

Setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Organizing

Arranging and structuring work to accomplish organizational goals.

Leading

Working with and through people to accomplish organizational goals.

Controlling

Monitoring, comparing, and correcting work performance.

Managerial roles

Specific actions or behaviors expected of and exhibited by a manager.

Interpersonal roles

Managerial categories that involve people and other duties that are ceremonial and symbolic in nature.

Informational roles

Managerial categories that involve collecting, receiving, and disseminating information.

Decisional roles

Managerial categories that revolve around making choices.

Technical skills

Job-specific knowledge and techniques needed to proficiently perform work tasks.

Interpersonal skills

The ability to work well with other people individually and in a group.

Conceptual skills

The ability to think and to conceptualize about abstract and complex situations.

Universality of management

The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in all organizations worldwide.

Holacracy

An organizational structure that aims to distribute decision-making throughout the organization by requiring teams or workgroups to manage themselves, rather than centralizing decision-making in a traditional hierarchy.

Gig economy

The labor market created by workers doing freelance work.

Artificial intelligence (AI)

Hardware or software systems that learn to make decisions and carry out actions on behalf of the people that operate the systems.

Digital transformation

The process of rethinking how to use technology, people, and processes to accomplish the work of the organization.

Remote work

The practice of accomplishing work tasks away from the company’s worksite.

Hybrid work

The practice of working remotely part of the time but working at the company’s worksite as well.

Bureaucracy

An organizational design characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

Industrial Revolution

A period during the late eighteenth century when machine power was substituted for human power, making factory manufacturing more economical than home production.

Behavioral science theorists

Researchers who engage in objective, empirical research of human actions and dynamics in organizations.

System

A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Human relations movement

A managerial perspective based on the belief that a satisfied worker is a productive worker.

Contingency approach

A perspective recognizing that organizations are different, meaning they face distinct situations and require varying methods of administration.

Open systems

Arrangements of interdependent parts that dynamically interact with and are influenced by their external environment.

Closed systems

Arrangements of interdependent parts that are self-contained and not influenced by or interacting with their external environment.

Traditional view of authority

The perspective that a superior's right to exact compliance from subordinates originates at the top and moves downward through an organizational hierarchy.

Quantitative approach

The use of statistical, mathematical, and numerical techniques to enhance decision making.

Scientific management

A classical methodology that uses empirical observation and the scientific method to determine the 'one best way' for a job to be completed.

Social-person approaches

Perspectives that focus primarily on an organization's human relationships and group dynamics.

Principles of management

Fundamental rules and guidelines applicable across various organizational scenarios and suitable for classroom instruction.

Total quality management (TQM)

An overarching philosophy driven by continuous improvement and deep responsiveness to customer needs and expectations.

Classical approach

The earliest formal studies of administration that emphasized rationality and maximizing the efficiency of organizations and workers.

Division of labor (or job specialization)

The breakdown of jobs into narrow, standardized, and repetitive tasks.

Hawthorne Studies

A series of research investigations during the 1920s and 1930s that provided groundbreaking insights into individual and group workplace behavior.

Acceptance view of authority

The perspective that legitimate managerial power originates from the willingness of subordinates to accept directives rather than solely from top-level titles.

Therbligs

A classification scheme devised by the Gilbreths for labeling seventeen basic hand motions in workflow analysis.

Programmed decision

A repetitive decision that can be handled by a routine approach.

Nonprogrammed decisions

Unique and nonrecurring decisions that require a custom-made solution.

Rule

An explicit statement that tells managers what can or cannot be done.

Big data

Huge and complex sets of data.

Unstructured problems

Problems that are new or unusual and for which information is ambiguous or incomplete.

Structured problems

Straightforward, familiar, and easily defined problems.

Bounded rationality

Decision making that is rational but limited (bounded) by an individual's ability to process information.

Satisfice

To choose solutions that are satisfactory and sufficient or 'good enough'.

Analytics

The use of mathematics, statistics, predictive modeling, and machine learning to find meaningful patterns and knowledge in a data set.

Rational decision making

Deciding on choices that are logical and consistent and maximize value.

Evidence-based management (EBMgt)

The systematic use of the best available evidence to improve management practice.

Decision criteria

Factors that define what is important or relevant to resolving a problem.

Deep learning

Use of algorithms to create a hierarchical level of artificial neural networks that simulate functions of the human brain.

Intuitive decision making

Making decisions on the basis of experience, feelings, and accumulated judgment.

Policy

A guideline for making decisions.

Problem

A discrepancy between an existing and a desired condition.

Heuristics

Shortcuts that managers use to simplify or speed up decision making.

Decisions

A conclusion or resolution made after considering alternatives.

Procedure

A series of sequential steps used to respond to a well-structured problem.

Machine learning

A method of data analysis that automates analytical model building.

Omnipotent view of management

The perspective that managers are directly responsible for an organization's success or failure.

Environmental uncertainty

The degree of change and complexity present in an organization's external surroundings.

Symbolic view of management

The perspective that much of an organization's success or failure is due to external forces outside leadership's control.

Environmental complexity

The number of external components affecting an organization and the extent of knowledge the organization has about those components.

Specific environment

The external forces consisting of crucial constituencies or stakeholders that directly influence an organization's effectiveness.

Strong cultures

Workplace settings in which key organizational values are intensely held and widely shared among members.

Organizational culture

The shared values, principles, traditions, and ways of doing things that influence how members act and distinguish the organization from others.

Environment

External institutions or forces outside an organization that potentially affect its performance.

General environment

Broad external factors, conditions, and trends outside an organization that indirectly impact its functioning.

Socialization

A process that helps new employees adapt and learn the organization's way of doing things.

Transnational or borderless organization

An MNC in which artificial geographical barriers are eliminated.

Global sourcing

Purchasing materials or labor from around the world wherever it is cheapest.

Law of comparative advantage

The economic proposition that a country should produce goods or services for which it has the lowest opportunity costs.

United States–Mexico–Canada Agreement (USMCA)

An update on the original NAFTA agreement between the United States, Mexico, and Canada.

Geocentric attitude

A world-oriented view that focuses on using the best approaches and people from around the globe.

Ethnocentric attitude

The parochial belief that the best work approaches and practices are those of the home country.

Planned economy

An economic system in which economic decisions are planned by a central government.

Global Leadership and Organizational Behavior Effectiveness program (GLOBE)

The research program that studies cross-cultural leadership behaviors.

Parochialism

Viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.

World Economic Forum

Annual meeting that brings together several thousand of the world's leaders to find solutions to economic, social, and political problems.

EU

A union of 27 European nations created as a unified economic and trade entity.

Franchising

An organization gives another organization the right to use its name and operating methods.

OECD

An international economic organization that helps its 38 member countries achieve sustainable economic growth and employment.

GATT

An agreement between countries that seeks to reduce or eliminate tariffs and other trade barriers.

Polycentric attitude

The view that the managers in the host country know the best work approaches and practices for running their business.

World Bank

A financial institution that provides assistance to countries around the world.

Licensing

An organization gives another organization the right to make or sell its products using its technology or product specifications.

Multidomestic corporation

An MNC that decentralizes management and other decisions to the local country.

Strategic alliance

A partnership between an organization and foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities.

Nationalism

Patriotic ideals and policies that glorify a country's values.