Business Final

Management

Guiding development, maintenance, and allocation of resources to attain organizational goals.

Tasks of Management

Anticipating problems or opportunities and making plans to deal with them

Coordinating and allocating the resources needed for plans

Guiding personnel through the implementation process

Reviewing results and making any necessary changes

Functional Areas of the Organization

Planning - anticipating problems the organization may encounter and designing plans to deal with them

Organizing - coordinating and allocating resources in order to carry out its plans

Leading - guiding and motivating others toward the achievement of organizational goals

Controlling - assessing an organizations progress toward accomplishing its goals

Types of Planning

Strategic - establish mission and long-term goals

Tactical - establish mid-range goals for implementation

Operational - implement and activate specific objectives

Contingency - meet unforeseen challenges and opportunities

Managerial Hierarchy

Top Management - small group of people at head of organization

Middle Management - group of people responsible for implementing strategic plan

Supervisory Management - design and carry out operational plans for daily activities

Mission Statement

Document that states purpose of organization and its existence.

Sources of Power

Legitimate - derived from an individual’s position in an organization

Reward - derived from an individual’s control over rewards

Coercive - derived from an individual’s ability to threaten

Expert - derived from an individual’s extensive knowledge

Referent - derived from an individual’s charisma and received respect

Leadership Styles

Autocratic - directive leaders that allow for little input from subordinates
Participative - sharing decision-making with group members and encouraging discussion

Free-Rein - turning all authority and control over to subordinates

Situational - matches maturity and competency levels of those completing the tasks

Types of Participative Leaders

Democratic Leaders - solicit input from all members and make final decisions by a vote

Consensual Leaders - encourage discussion and require a comprise by all parties

Consultative Leaders - confer with subordinates before unilaterally making final decisions

Steps of Controlling

Set performance standards and goals

Measure performance

Compare performance to standards

Take corrective action

Use information gained to set up future standards

Types of Managerial Roles

Informational - acting as an information gatherer, distributor, or spokesperson for company

Interpersonal - acting as a relationship builder and maintainer with those in- and outside the company

Decisional - acting as an entrepreneur, making resource decisions, resolving conflict, and negotiating

Types of Informational Roles

Monitor - seeks out and gathers information relevant to the organization

Disseminator - provides information where it is needed in the organization

Spokesperson - transmits information to people outside the organization

Types of Interpersonal Roles

Figurehead - represents the company in a symbolic way

Leader - guides and motivates employees to achieve goals

Liaison - acts as a middle man between individuals on the inside and outside

Types of Decisional Roles

Entrepreneur - searches for new opportunities and initiates change

Disturbance Handler - handles unexpected events and crises

Resource Allocator - designates the use of organizational resources

Negotiator - represents the company in negotiations

Programmed Decisions

Made in response to routine situations that frequently occur.

Nonprogrammed Decisions

Made in response to rare situations that occur infrequently.

Decision-Making Process Steps

Recognize problem

Gather Information

Select solution

Implement solution

Gather feedback

Categories of Managerial Skills

Technical - specialized knowledge

Human relations - social skills

Conceptual - examine environment of a business and its place in the market

Trends in management

Crisis management

Outside directors

Use of technology

Need for global management skills

Global management skills

Ability to operate in diverse cultural environments

Types of motivation

Autonomy - freedom and control of one’s work

Mastery - desire to continuously improve skills

Purpose - feeling that work has meaning and contributes to something bigger than oneself

Types of rewards

Intrinsic - within individual (satisfaction, contentment)

Extrinsic - outside individual (pay raises, promotions)

Fredrick Taylor’s scientific management

Scientific efficiency model that specializes tasks and finds qualified individuals to perform them. (assembly line)

Hawthorne studies/ effects

Employees will perform better when they feel singled out for special attention

Maslow’s hierarchy of needs

Physiological - essentials (food, water)

Safety - security (shelter, job security)

Social - relationships (work, non-work)

Esteem - respect (from others, for oneself)

Self-actualization - recreation (learning, activities)

McGregor’s theory X

People dislike work, must be controlled, and seek direction and security.

McGregor’s theory Y

Work is natural human function, people can be motivated through incentives and rewards, and average person seeks responsibility.

Theory Z

Combines both theories.

Provides:

long-term employment

slow career development

group decision-making

individual responsibility

little control over employees

concern for workers

Herzberg’s motivator-hygiene theory

Suggests that job satisfaction and dissatisfaction are influenced by two sets of factors:

Motivating factors - intrinsic elements of the work environment that make satisfaction (achievement, recognition, responsibility)

Hygiene factors - extrinsic elements of the work environment that make dissatisfaction (company policies, supervision, working conditions, job security)

Contemporary views on motivation

Expectancy theory - probability of an individual’s willingness to do an action is based on whether they believe the action will have a particular outcome that they value

Equity theory - probability of an individual’s willingness to do an action is based on perceptions of how fairly they feel treated in comparison to coworkers

Goal-setting theory - probability of an individual’s willingness to do an action is based on whether it brings them closer to achieving some goal they have

Reinforcement theory - probability of an individual’s willingness to do an action is based on positive outcomes resulting

Job enlargement

increasing number and variety of tasks a person performs

Job enrichment

increase job depth by providing employees with autonomy, responsibility, and decision-making authority

Job rotation

shifting workers from one job to another

Flextime

allowing employees to decide their hours

Compressed workweek

3-day weekends and avoiding rush work hours

Telecommuting

allow employees to work from home online

Job sharing

allowing multiple people to split tasks, responsibilities, and work hours of one 40-hour-per-week job

Formal recognition

ex. award ceremonies

Informal recognition

ex. compliments

Feedback

ex. annual evaluation

Reinforcement

positive feedback encouraging a worker to continue some task; negative feedback discouraging a worker to discontinue some task

Piece-rate pay plans

employees paid a given amount for each unit produced

Profit-sharing plans

management distributes a portion of company profits to all employees

Gain-sharing plans

ex. incentive programs based on group productivity

Stock options

giving employees the right to purchase a given amount of stock below market-prices

Bonus

one-time lump-sum monetary award

Pay-for-performance programs

variability in compensation to reflect an individuals contribution value

Trends in motivation

Education and training

Employee ownership

Work-life benefits

Nurturing knowledge workers

Absenteeism

Human resource management

hiring, developing, motivating, and evaluating employees to achieve organizational goals

Human resource planning

having the right number of people with the right training, in the right job

HR management process

Job analysis and forecasting

Employee recruitment

Employee selection

Training and development

Performance planning and evaluation

Compensation and benefits

HR outcomes

Retention/ turnover

Job analysis

study of tasks required to do a job well

Job description

tasks and responsibilities of a job

Job specification

skills, knowledge, and abilities required to fill a job

HR demand forecast

First forecast: determine number of people needed by a certain time

Second forecast: estimate number of people currently employees who will be able to fill various jobs at some future time

Succession planning

identifying critical positions in your organization and developing plans for individuals to assume those positions

Contingent worker

someone who wants to work but not on a permanent basis

Sources of job applicants

Internal - current employees

External - pool of potential applicants outside the firm

Recruitment

attracting qualified people to form an applicant pool

Job fair

one- or two-day event at which applicants are briefed about job opportunities, given tours, and encouraged to apply for jobs

Recruitment branding

presenting an accurate and positive image of the firm to those being recruited

Realistic job preview

informs job candidates about organizational realities of the job and the firm

Selection process

Initial screening - applicants complete applications and interviews

Employment testing - tests following initial screenings to ensure qualifications are met

Selection interview - in-depth discussion of an applicant’s work experience, skills, and abilities

Background and reference check

Physical exam and drug testing

Decision to hire

Training and development

learning situations in which the employee acquires additional knowledge or skills to increase job performance

Orientation

getting new employees ready to perform on the job

Job rotation

reassignment of workers to several different jobs over time

Apprencticeships

combines specific on-the-job instruction with classroom training

Mentoring

senior manager or other experienced employee providing job and career-related information

Programmed instruction

online, self-paced, highly structured training

Simulation

scaled down situation to test how employees engage with a work-related circumstance

Performance appraisal

comparison of actual performance with expected performance to determine if training is necessary

Pay structure and internal influences

basing wages, salaries, and benefits on skills, experience, and level of job

Pay level and external influences

basing wages, salaries, and benefits on competitor rates

Types of compensation

Direct: wage or salary

Indirect: varies other benefits (insurance, vacation time)

Incentive pay

merit-based compensation awarded outside guaranteed hourly or salary (ex. bonuses, profit-sharing)

Unemployment compensation

provides former employees with money for a certain period while unemployed

Worker’s compensation

pays employees for lost work time caused by work-related injuries and may also cover rehabilitation after serious injury

Labor union

organization that represents workers in dealing with management over disputes involving wages, hours, and working conditions

Collective bargaining

negotiating a labor agreement that provides for compensation and working arrangements mutually accepted by all parties

Local unions

branch or unit of a national union that represents workers at a specific plant or area

Shop steward

worker elected by others to represent them in discussions with management

Federation

collection of unions banded together to further organizing, public relations, political, and other mutually-agreed-upon purposes of the member unions

Union elections take place through the

NLRB

Union shop

nonunion workers can be hired but must join the union within 30-60 days

Agency shop

does not require employees to join the union, but they must pay union fees

Right-to-work law / open shop

state laws that allow employees to remain employed without joining a union

Management rights clause

gives the employer all rights to manage the business except as specified in contract

Grievance

formal complain by an employee or the union that management has violated some part of the contract

Abritration

settling a labor-management dispute by having a third party make a decision

Selective strike strategy

conducting a strike at a critical plant that supplies parts to other plants

Occupational Safety and Health Administration (OSHA)

sets workplace safety and health standards, provides job training, and inspects workplaces to ensure employer compliance

Protected class

class of people that enjoy heightened legal protection against discrimination

Affirmative action

expand job opportunities to women and minorities

Conciliation

specialist assists management and the union with focusing on the issues in dispute and acts as a communication channel

Mediation

specialist suggests compromises for the disputing organizations

Competitive advantage

set of unique features of a company and its product or service that make it superior to competitors in the consumer’s eyes

6 parts of promotion

Traditional advertising

Sales promotion

Personal selling

Public relations

Social media

E-commerce

Traditional advertising

any paid form of presentation by a sponsor

Sales promotion

marketing events or sales efforts that stimulate buying

Personal selling

face-to-face sales presentations to a prospective buyer