Business Management Concepts

Peter Ducker

Created a modern study of management, summed up 5 tasks of management: set goals, organize activities, motivate, communicate, and measure performance.

Henry Mintzberg

Observed managers and recorded their activities and schedule, provided a better understanding of what managers do

Fedrick Winslow Taylor (Scientific Management)

“Father of Scientific Management”, improved efficiency and labor productivity through scientific methods, proposed that workers “could be retooled like machines”, management decisions would be based on precise procedures based on study

Henry Grantt

Scientific Management; developed the Grantt chart to measure and plan work. A bar graph that measures planned and completed work along each stage of production by time elapsed

Gilbreths

Pioneered time and motion studies to promote efficiency. Frank B, illustrated the time-and-motion study. Lillian M, “First lady of management” interested in the human aspect of work, made a substantial contribution to human resource management

Henri Fayol

Administrative Principles; a French mining engineer. Proposed 14 principles of management and 5 basic functions of management: planning, organizing, commanding, coordinating, and controlling

Max Weber

Bureaucratic Organization; a German theorist. Introduced the concepts of bureaucratic organizations and managing organizations on an impersonal, rational basis.

Charles Clinton Spaulding

Administrative Principles; “Father of African American Management”, outlined 8 fundamental necessities. President of Mutual, life insurance company

Mary Parker Follett

Early Advocate; “Don’t hug your blueprints”, was trained in philosophy and political science. Approached leadership that stressed the importance of people rather than engineering

Cheston Barnard

Early Advocate; Proposed that informal relationships are powerful forces if managed correctly. Proposed informational organizations and acceptance theory of authority

Hawthorne Studies

Humanistic perspective; Researchers changed things like lighting, rest breaks, work hours, and working conditions. Employees performed better when managers treated them more positively. Strongly shaped management practice and research.

Abraham Maslow

Humanistic Perspective; the hierarchy of needs

Douglas McGregor

Humanistic Perspective; theory x and y

4 Core Management Functions

Leading, planning, controlling, and organzing

Core function: Planning

setting goals for future performance

Core function: Organizing

assigning tasks, grouping tasks into departments, and allocating resources

Core function: Leading

Using influence to motivate employees to achieve the organizational goals

Core Function: Controlling

Monitoring employees’ activities, keeping the organizations on track

“turbulent times”. “turbulent environment” definition

Unsettled, full of disturbances, characterized by disorder, and chaotic

Dimensions of a firm’s general environment (the elements that influence ALL organizations about equally in an indirect way)

Technological, Natural, Sociocultural, Economic, Legal/Political, and International

Task Environment

Elements that directly influence one particular organization’s basic operations and performances

Elements of Task Environment

Customers, Competitors, Suppliers and Labor Market

Boundary Spanning

link and coordinate the organization with the external environment

Environmental Uncertainty

managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes

International dimension of the general environment

events originating in foreign countries, as well as opportunities for U.S. companies in other countries.

technological dimension of the general environment

scientific and technological advances in society.

sociocultural dimension of the general environment

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

economic dimension of the general environment

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

legal–political dimension of the general environment

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

natural dimension of the general environment

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

Political Lobbying

influence the government officials to take actions that will positively affect their business performance (Apple talking to Trump)

Five elements of culture (can be seen on surface level)

Symbols, Stories, Heroes, Slogans and Ceremonies

Social media analytics

gathering data from social media platforms

Four Types of Corporate Culture

Adaptability Culture, Achievement Culture, Involvement Culture, and Consistency Culture

adaptability culture

characterized by values that support the company’s ability to interpret and translate signals from the environment into new behavior responses. (cosmetic/fashion)

achievement culture

a results-oriented culture that values competitiveness, personal initiative, and achievement

involvement culture

A culture that places high value on meeting the needs of employees and values cooperation and equality; “caring, family like atmosphere”

Consistency culture

values and rewards a methodical, rational, orderly way of doing things.

Global mind set

To succeed on a global level requires managers at all levels to have a global mindset, which is the ability to appreciate and influence individuals, groups, organizations, and systems that possess different social, cultural, political, institutional, intellectual, and psychological characteristics.

Comparing and contrasting China and India

China is strong in manufacturing; India is a rising power in software design, services, and precision engineering

Geocentric

There is no “one best way”. There are logical patterns around the world, and we don’t favor any particular country, culture, or way of doing business (Stateless cooperation)

Polycentric

Every culture is unique - We must be oriented towards each individual country

Ethnocentric

There is one best way- the home country way

multinational corporation (MNC)

An organization that receives more than 25 percent of its total sales revenues from operations outside the parent company’s home country and has a number of distinctive managerial characteristics.

bottom of the pyramid (BOP) concept

It proposes that corporations can alleviate poverty and other social ills and make significant profits by selling to the world’s poor.

Joint ventures

strategic alliances or programs by two or more organizations

Exporting

producing products in the home country for sale to foreign countries; lowest cost and lowest degree of ownership (footwear companies in Great Britain and ceramic companies in Italy)

Outsourcing

Also called offshoring, work activities are performed in countries with low-cost labor; it is most controversial in the current U.S. political climate; Moderate level of ownership and moderate cost. (Nike)

Partnerships

Joint ventures; Fast, cost-effective, and a relatively low risk (Starbucks has used joint ventures to expand in China and India).

Hofstede’s sociocultural value dimensions

measure

measure power distance, uncertainty avoidance, individual ism–collectivism, and masculinity–femininity

Power distance

degree to which people accept inequality in power among institutions, organizations, and people (Mexico)

Uncertainty avoidance

is characterized by people’s intolerance for uncertainty and ambiguity, and resulting support for beliefs that promise certainty and conformity. (Japan)

Individualism

refers to a preference for a loosely knit social framework in which individuals are expected to take care of themselves. (United States)

Collectivism

refers to a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests

Masculinity (Acheivement)

is a cultural preference for achievement, heroism, assertiveness, work centrality, and material success. (Japan)

Femininity (Nurturing)

is a cultural preference for relationships, cooperation, group decision making, and quality of life

long term orientation

reflects a greater concern for the future and a high value on thrift and perseverance (Asia)

short-term orientation

reflects a concern with the past and present and a high value on meeting current obligations (Russia and West Africa)

Political risk

the risk of lost assets, earning power, or managerial control

Political instability

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

high-context culture

is one in which people use communication to build personal relationships; nonverbal behavior and personal relationships are highly valued when conducting business (China)

low-context culture

people use communication primarily to exchange facts and information. (Germany)

The cognitive dimension of global mind-set

knowing about the global environment and global business, mentally understanding how cultures differ, and having the ability to interpret complex global changes

The psychological dimension of global mind-set

the emotional and affective aspect. It includes a liking for diverse ways of thinking and acting, a willingness to take risks, and the energy and self-confidence to deal with the unpredictable and uncertain

The social dimension of global mind set

concerns the ability to behave in ways that build trusting relationships with people who are different from yourself.1