Principles of Management Chapters 1-3

Management

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

Four core management functions

planning, organizing, leading, and controlling

Planning

set goals and ways to attain them

Organizing

assign responsibility for task accomplishment

Leading

use influence to motivate employees

Controlling

monitor activities and make corrections

Organization

a social entity that is goal directed and deliberately structured

Effectiveness

refers to the degree to which the organization achieves a stated goal

Efficiency

pertains to the amount of resources- raw material, money, and people- used to produce a desired volume of output

performance

the organization's ability to attain its goals by using resources in an efficient and effective manner

Conceptual skills

the cognitive ability to see the organization as a whole and the relationship among its parts

Human skill

manager's ability to work with and through other people and to work effectively as part of a group

Technical skill

the understanding of and proficiency in the performance of a specific task

Top manager

vertical difference; one who is at the apex of the organizational hierarchy and it responsible for the entire organization

Middle manager

vertical difference; work at the middle level of the organization and are responsible for major divisions or departments

Project manager

a manager who is responsible for a temporary project that involves people from various functions and levels of organization

First-line managers

vertical difference; managers who are at the first or second level of the hierarchy and are directly responsible for overseeing groups of production employees

Functional managers

horizontal difference; responsible for a department that performs a single functional task, such as finance or marketing

General managers

horizontal difference; responsible for several departments that perform different functions, such as the manger of Macy's or Ford

Role

a set of expectations for one's behavior

Classical perspective

study of modern management began in the late nineteenth century with this; took a rational, scientific approach to management and sought to make organizations efficient operating machines

Scientific management

a subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity

Frederick Winslow Taylor

known as the father of scientific management

Bureaucratic organization

a subfield of the classical perspective that emphasizes management on an interpersonal, rational basis through elements such as clearly defined authority and responsibility, formal record-keeping, and separation of management ownership

Max Weber

introduced most of the concepts on bureaucratic organization

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

Henri Fayol

major contributor to the administrative principles approach; outlined 14 general principles of management, several of which are part of management philosophy today

Humanistic perspective

emphasized understanding human behavior, needs, and attitudes in the workplace

Mary Parker Follett and Chester Bernard

early advocates of a more humanistic approach to management

Human relations movement

stresses the satisfaction of employees' basic needs as the key to increased productivity

Hawthorne studies

important in shaping ideas concerning how managers should treat workers

Human resources perspective

suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential; jobs should be designed so that tasks are not perceived as dehumanizing or demeaning; note: Abraham Maslow and the hierarchy of needs

Behavioral sciences approach

draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting

Quantitative perspective

became popular in World War II; uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems

Three subsets of quantitative perspective

research, operations management, and information technology

System

a set of interrelated parts that function as a whole to achieve a common purpose; an organization is one of these

Systems thinking

means looking not just at discrete parts of an organizational situation but also at the continually changing interactions among the parts

Subsystems

parts of a system that depend on one another for their functioning

Synergy

says that the whole is greater than the sum of its parts; the organization must be managed as a whole

Contingency view

tells managers that what works in one organizational situation might not work in others

W. Edwards Deming

father of the quality movement

Total quality management

focuses on managing the total organization to deliver quality to customers

Social forces

influence of culture that guides people and relationships; shape what is known as the social contract

Political forces

influence of political and legal institutions; example is the increased role in government in a business if it collapses financially

Economic forces

the availability, production, and distribution of resources

Customer relationship management

systems use information technology to keep in close touch with customers, collect and manage large amounts of customer data, and provide superior customer value

Outsourcing

contracting out selected functions or activities to other organizations that can do the work more efficiently, has been one of the fastest growing trends in years

Supply chain management

managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers

Organizational environment

consisting of general and task environments, includes all elements existing outside the boundary of the organization that have the potential to affect the organization

General environment

indirectly influences all organizations within an industry and include five dimensions

Task environment

includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance

International environment

of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries

Technological dimension

of the general environment includes scientific and technological advances in society

Sociocultural dimension

includes demographic characteristics, norms, customs, and values of a population within which the organization operates

Economic dimension

represents the general economic health of the country or region in which the organization operates

Legal-political dimension

includes government regulation at the local, state, and federal levels, as well as political activities designed to influence company behavior

Pressure groups

work within the legal-political framework to influence companies to behave in socially responsible ways

Internal environment

includes the environment within the organization's boundaries such as employees, management, and corporate culture; includes the task environment and the general environment

Natural dimension

includes all the elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as water, air, and climate

Customers

part of the task environment and include people and organizations that acquire goods and services from the organization

Competitors

organizations within the same industry or type of business that compete for the same set of customers

Suppliers

provide the raw materials the organization uses to produce its output

Labor market

represents the people available for hire by the organization

Task environment

customers, competitors, suppliers, labor market

General environment

technological, natural, sociocultural, economic, legal/political, international

Merger

occurs when two or more organizations combine to become one

Joint venture

strategic alliance or program by two or more organizations

Culture

the set of key values, beliefs, understandings, and norms shared by members of an organization

Visible culture

artifacts, such as dress, office layout, symbols, slogans, ceremonies

Invisible culture

values, underlying assumptions, and deep beliefs

Symbol

an object, act, or event that conveys meaning to others

Hero

a figure who exemplifies the deeds, character, and attributes of a strong culture

Slogan

expresses the key corporate value

Ceremonies

planned activites at special events, to reinforce company values