Studied by 36 people
Purpose of Management
Right work, done well
right work = what needs to be done
done well = how it is done satisfactorily
Aspects of Right Work
-developing vision and mission statements
-setting goals
-selecting strategies
-putting plans in place to execute strategies
-understanding the aspects involved in developing and managing a global business
Drivers of the financial value of business
profitability and growth
HR management
help establish practices of hiring, compensating, and motivating employees
Performance management
using tools and practices to help effectively manage the organization's activities
Limitations of management theory
-challenges of conducting rigorous research for mgmt practices
-but there is still value in the contributions made by consultants and business leaders
What do managers do?
planning, organizing, leading, controlling
Need for management emerged in what year
1800s
What enabled economies of scale
-printing press
-textile automation
-steam engine
Specialization of Labor
Focusing work effort on a particular product or a single task
Adam Smith
identified the concept of a person focusing on a single component of the production of goods
specialization of labor
Engineers
focused on how to set up and run machines and on what types of machines were necessary to perform tasks
Economists
focused on the financial aspects of running the factories, like keeping track of costs, setting pay policies, and determining prices
Four facets influence mgmt practices
-economic
-social
-political
technological
facets are constantly ______
changing
systematic management
a classical management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans
scientific management
the application of scientific principles to increase efficiency in the workplace
figures in scientific mgmt
-Frederick Taylor
-Frank and Lillian Gilbreth
-Henry Gantt
-W. Edwards Deming, Joseph Juran, and Kaoru Ishikawa
-Taiichi Ohno
Frederick Taylor
-American mechanical engineer, who wanted to improve industrial efficiency
-believed that focusing on a recording a worker's actions and time spent doing tasks can increase output
-father of scientific managment
Frank and Lillian Gilbreth
Employed motion study to simplify work and improve productivity
Henry Gantt
developed the Gantt chart to measure and plan work
-operations research (OR)
-critical path method (CPM)
-program evaluation and review technique (PERT)
W. Edwards Deming and Joseph M. Juran
Credited with major influence on the approach to quality in Japanese organizations
Taiichi Ohno
Developed the first "lean" system (aka, the Toyota Production System)
administrative management
concerned with managing the total organization
administrative mgmt figures
-Henri Fayol
-Max Weber
Henri Fayol
-first to suggest a mgmt theory and described the process of mgmt
-14 <del>principles</del> of management
Max Weber
created the Tenant of Bureaucratic Management
Tenants of Bureaucratic Management
-Division of labor
-managerial hierarchy
-formal selection
-career orientation
-formal rules and other controls
-impersonality
Human Relations Management
focuses on people and sees them as valuable organizational resources in their own right
HR mgmt figures
-HJ Heinz, International Harvester, Westinghouse Electric
-Western Electric Company and MIT
-Elton Mayo
-Mary P. Follett
-Herbert Simon
H.J Heinz, International Harvester, and Westinghouse Electric
created employee welfare departments to counter the power of unions
welfare secretaries
-staffers for welfare programs established by businesses
-Handled employee complaints, operated medical dispensaries, and watched over recreational activities, education programs, dining facilities, and employee behavior
Western Electric Company and MIT
discovered that increasing or decreasing lighting would increase work productivity
Elton Mayo
-Hawthorne Experiment 1928, founder of the human relations movement
-a friendlier supervisory style of management reduced employee aggression
Mary P. Follett
Mother of conflict resolution. Advocated for more civil relationships between employees and managers. Argued that genuine power comes from working with people in a cooperative mode, rather than ruling over people in a command mode.
National Labor Relations Act and the Congress of Industrial Organizations (CIO)
enhanced labor's collective bargaining power to balance the power of organizations and workers
Herbert Simon
-theory of bounded rationality
-Suggested that managers cannot make a "perfect decision" due to their limited capacity to process all information provided, emotions, and biases
Organization Behavior and Organization View
Micro View - focused on behavioral research, such as group dynamics, decision-making, leadership, and motivation
Macro View - tried to explain the interactions between formal and information processes during operations
Five elements for identifying "right work"
-vision
-mission
-goals
-strategy
-plans
Vision statement
describes an organization's purpose for existence
Mission statement
describes the products and services an organization provides
Goals
identifies the outcomes that the organization aims to achieve
For-profit organizations have financial and operational goals
Four strategy options
-differentiation
-low cost
-combo
-focus
differentiation
making a product different from other similar products
low-cost
have the lowest total cost methods for producing products/services vs competitors
Combination
provides some differentiation at an overall lower price point
Focus
-serve the needs of a market segment better than competitors' offerings for the total market
-market segment
Market segments include
-geographic
-demographic
-product/service specialization or customization
External analysis tools
-Porter's five forces
-industry life cycle
-macroenvironmental analysis
Porter's Five Forces
threat of new entrants, intensity of rivalry, bargaining power of buyers, bargaining power of suppliers, and threat of substitutes
Industry Life Cycle
Embryonic, Growth, Shakeout, Mature, Decline
Macroenvironmental analysis
macroeconomic, global, tech, demographics, social values, political/legal forces
Internal analysis tools
-product/service quality
-efficiency
-innovation
-customer responsiveness
-distinctiveness competencies
Product/service quality
-customer perceived performance relative to alternatives
-distinctiveness competencies
Efficiency
-outputs/inputs
-use of resources relative to competitors
-relative comparison of overall cost structure vs competitors
Innovation
-success rate at developing impactful new products and processes relative to competitors
Customer responsiveness
how well does the org understand its customers' requirements
distinctive competencies
allows the organization to differentiate its products from competitors effectively and to achieve cost leadership in the industry
Three elements of strategy implementation
-organization structure
-monitoring and control
-culture
organization structure
designing jobs and developing a model
Monitoring and control
creation of a system that review progress
Culture
set of values, norms, beliefs, and attitudes shared by the members of the organization
Plans
outline of specific actions, resources, and timeline to complete initiatives to achieve the organization's goals under the strategy chosen
Four elements of doing what's right
-business law
-ethical decision making
-core values
-corporate social responsibility
business law
-labor laws
-uniform commercial code
-environmental protection
-industry-specific regulations
labor laws
-national labor relations act
-fair labor standards act
-social security law
-equal pay act
-civil rights act
Uniform Commercial Code (UCC)
provides a set of standard statutes for governing commercial activities of businesses / states can use the original or modify their own
Environmental Protection Laws
-clean air act
-clean water act
-noise control act
Industry Specific Regulations
-Sarbanes oxley act
Corporate Social Responsibility (CSR)
an organization recognizing and proactively responding to the needs and expectations of stakeholders
Internal factors of business ethics
-An individual's moral development
-Willingness to obey authorities
-Ability to control one's behavior
-Relationships with others
External factors of business ethics
-The organization's culture
-Consequences of unethical behavior
-Ease of opportunity to act unethically
-Characteristics of work
Profitability
ability of the business to generate long-term positive net cash flows sufficient to provide an appropriate risk-adjusted rate of return on capital employed
Growth
the rate of increase in net cash flows in a business annually
Options for creating growth
-existing products/services to current customers
-new customers while retaining current customers (Share-building/market development strategy)
-new products/services to current and new customers
-selling existing products/services into new markets (market expansion)
-entering completely new markets with products/services
Innovation
executing an idea that addresses a specific challenge and creates value for both the developer and the user
Entrepreneurship
acting to bring forth ideas that create value
Intrapreneurship
entrepreneurship but in a larger business venture
Mechanisms for successful innovation
-AI
-Tech platforms : Provide a foundation for developing other business offerings
-collaborative ecosystems : Multiple organizations working collaboratively to enable rapid development of new technologies, products, and services
Globalization
the trend towards a more integrated and interdependent global economy
Factors driving globalization
trade barriers
-tech enablement
-rise of multinational enterprises (MNEs)
-rise of multinational enterprises (MNEs)
Declining trade barriers
-Reduction of tariffs
-General recognition of the advantages of free-trade policies
Technology enablement
-air travel
-advanced communications
-internet commerce
Rise in Multinational Enterprises (MNEs)
Knowledge on how to conduct a global business is more accessible
-more international trade experience and sharing of practice and expertise
Formation of global institutions
-WTO
-World bank
Elements of political economy
-political climate
-economic conditions
-legal system
Political climate
-free trade
-civil unrest / political upheaval or instability
-corruption/fraud
economic conditions
-stable economy
-sufficient distributed wealth to generate sufficient demand
-inflation/exchange rates/tax policies
legal system
-laws and enforcement practices protect the assets, investments, and intellectual property of foreign entities
-contracts are recognized and enforceable
-legal regulations are not overly restrictive
Strategies for International Business
-global standard
-local customization
-combination
global standardization
Standardization of products across markets and of the marketing mix worldwide.
Local customization
product/services are customized to meet the unique needs of each country
Combination
-products are customized in some countries where the market size and unique requirements make it worthwhile
-all other countries are provided standard products
Strategies for entering a foreign market
-export
-license
-franchise
-joint venture
-strategic alliance
-do it yourself
Export
ship products from another country to the foreign country for sale
License
sell the rights to a third party to make/sell the business' products/services
Franchise
authorize a business partner to use the trademarks/patents and brands while providing business guidance on how to operate
Joint venture
collaborate with a business partner from a foreign country
Strategic alliance
establish a less formal arrangement for two distinct businesses to cooperate in pursuing a business opportunity in countries, which is typically in the form of one organization providing the products and the other manufactures and sells the products
Do it yourself
establishing a new business entity from inception in the target country or acquiring ownership of an existing business in that country
-more international trade experience and sharing of practice and expertise
Note 
Flashcard (40)