MGMT 3000 Final Exam - Guhde

organizational effectiveness

degree to which an organization achieves a stated goal

organizational efficiency

refers to the amount of resources used to achieve a stated goal

4 functions of a managers

1. planning: select goals and ways to attain them

2. organizing: assign responsibility for task accomplishment

3. leading: use influence to motivate employees

4. control: monitor activities and make corrections

3 types of management skills

1. technical skills: mastery of methods, techniques, and equipment for a specific function (most important for lower level management)

2. human skills: ability to work with people (needed by all managers)

3. conceptual skills: ability to see the bigger picture (critical for top level management)

planning

select goals and ways to attain them (4 functions)

organizing

assign responsibility for task accomplishment (4 functions)

leading

use influence to motivate employees (4 functions)

control

monitor activities and make corrections (4 functions)

technical skills

mastery of methods, techniques, and equipment for a specific function (most important for lower level management)

human skills

ability to work with people (needed by all managers)

conceptual skills

ability to see the bigger picture (critical for top level management)

synergy

the whole is greater than the sum of its parts: 2+2=5

Peter Drucker

- father of modern business management

- taught that successful leaders put people and ethics above profits, rigid rules, and work structure

- said manager should make people's "strengths effective and their weaknesses irrelevant"

Drucker's definition of management

management is about human beings. It's task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant

Weber's bureaucratic organizations

- depends on rules and records

- introduced by max weber, a german theorist

- taught that managers should use power instead of personality to delegate and manage on an impersonal and rational basis

- although important productivity gains came from this approach, bureaucracy has taken on a negative tone

characteristics of weberian bureaucracy

- division of labor, with clear definitions of authority and responsibility

- positions organized in hierarchy of authority

- managers subject to rules and procedures that ensure reliable, predictable behavior

- management separate from ownership of the organization (professional manager)

- administrative acts and decisions recorded in writing (reference to go off of for greater efficiency)

- personnel selected and promoted based on technical qualifications

henri fayol

- created 14 general principles of management

- many used today

- unity of command (only reporting to one person)

- unity of direction (similar tasks grouped under one manager)

- division of work (specialization)

- scalar chain (chain of authority from top to bottom, includes every employee)

- identified 5 functions of management (planning, organizing, commanding, coordinating, controlling)

unity of command

only reporting to one person

unity of direction

similar tasks grouped under one manager

division of work

specialization

scalar chain

chain of authority from top to bottom, includes every employee

theory x

- the belief that the average human being has an inherent dislike for work and will avoid it if possible

- average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all

theory y

- the belief that the average human being does not inherently dislike work

- average human being learns, under proper conditions, not only to accept but also seek responsibility

- under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized

general environment

- factors that affect organizations indirectly

- includes technological, natural, sociocultural, economic, legal/political, and international aspects

task environment

- factors that affect organizations directly

- sectors that conduct day-to-day transactions with the organization

- includes customers, competitors, suppliers, and the labor market

customers

people and organizations that acquire goods or services from an organization

competitors

organizations in the same industry or type of business that provide goods or services to the same set of customers

suppliers

people and organizations that provide raw materials that an organization uses to produce its output

labor market

people in the environment who can be hired to work for the organization (i.e. members of labor unions)

supply chain

network of multiple businesses and individuals that are connected through the flow of products and services

corporate culture

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

- evident in symbols, stories, heroes, slogans, and ceremonies

- Exists if there are shared value and beliefs

- impact behavior

exporting

- business maintains production facilities within home country and ships its products for sale in foreign countries

- lowest level of getting started internationally, maintains highest level of ownership

global outsourcing (offshoring)

- engaging in international division of labor so work activities can be done in countries with the cheapest source of labor and supplies

joint venture

- a company shares costs and risks with another firm, typically in the host country, to develop new products, build a manufacturing facility, or set up a sales and distribution network

international partnerships

- corporation partners with a local company in a foreign market

- fastest, cheapest, and least risky way to get into global business

- represents the highest level of involvement in international trade

multinational corporation (MNC)

- receives more than 25% of its total sales revenues from operations outside parent's home country

- managed as integrated worldwide business systems

- controlled by single management authority

- regard the entire world as one market

- less than 10% of the world's public companies account for more than 80% of profits

- walmart is the biggest

ethnocentrism

- natural tendency among people to regard their own culture as superior and to downgrade or dismiss other cultural values

Utilitarianism

- selection based on greatest benefit for the greatest amount of people

Stages of Moral Development

preconventional, conventional, postconventional

preconventional

simply follow the rules

conventional

I do what I think the group wants me to do

postconventional

look at moral issues and decide for yourself

Drucker's definition of corporate social responsibility

1- as a corp minimize negative impact on society or environment

2 - use your resources to help solve social/env problems

traits of entrepreneurs

1. need for autonomy

2. entrepreneurial sacrifice - ability to persevere after struggles or defeat

3. high energy

4. need to achieve - internally motivated

5. self-confidence

6. internal locus of control

7. awareness of passing time

8. tolerance for ambiguity

Debt financing

- borrowing money that must be repaid at a later date to start a business

- Family and friends

- Personal credit cards

- Bank loans

- Small business administration (SBA)

Equity financing

- funds that are invested in exchange for ownership in the company

Equity financing: Angel financing

- wealthy individual who believes in a start-up provides personal funds and advice to help the business get started

Equity financing: Venture capital firms

- group that invests money in new or expanding businesses for ownership and potential profits

Franchising

The franchise owner sells right to offer products/services & their process under its brand name in exchange for selling fee and ongoing sales and fees

Sole proprietorship

unincorporated business owned by an individual for profit

- Majority of businesses in the US

- Few legal requirements

- Proprietor has total ownership and control

- Owner has full unlimited liability

Partnership

unincorporated business owned by two or more people

- Use a formal partnership agreement

-- Specifies how partners share responsibility and resources

-- Specifies how partners contribute expertise

- Unlimited liability

Corporation

artificial entity created by the state and existing apart from its owners (more complex paperwork)

- Separate legal entity liable for its actions

- Limits owners' liability

- Must pay taxes on its income

- Provides continuity

- Can raise funds through the sale of stock to investors

Social Entrepreneurship

- Focuses primarily on creating social value by providing solutions to social problems, with a secondary purpose of generating profit and returns

- combines the traditional entrepreneur with a mission to change the world for the better

Goal

desired future circumstance or condition that the organization attempts to realize

Plan

blueprint for goal achievement specifying the necessary resource allocations, schedules, tasks, and other actions

Strategic goals

official goals; broad statements describing where the organization wants to be in the future, long term

Strategic plans

define the action steps by which the company intends to attain strategic goals

ex: increase revenue through expansion into a foreign market

Tactical goals

- the results that major divisions and departments within the organization intend to achieve in support of the strategic goals

- applies to middle management

Tactical plans

define what major departments and organizational subunits will do to reach the tactical goals

ex: develop marketing plan for the foreign market

Operational goals

results expected from departments, work groups, and individuals in support of tactical goals

Operational plans

specify action plans toward achieving operational goals. Schedules are an important component

ex: hire employees for new foreign market

Strategic Management

Set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals

Corporate-level strategy

pertains to the organization as a whole and the combination of business units (more than one) and product lines that makes up the corporate entity

Business-level strategy

pertains to each business unit or product line and how each one competes within its industry

Functional-level strategy

pertains to the major functional departments within the business unit. Functional areas of business include accounting, marketing, HRM, R&D, manufacturing and others depending on the line of business

Differentiation strategy

distinguish products/services from competitors. Better/stronger/faster

Cost leadership strategy

aggressively seek efficient facilities, cost reductions, and cost controls (not talking about price)

Focus strategy

concentration on a specific region or buyer

- Then follow differentiation or cost leadership strategy

SWOT

Internal: Strengths, Weaknesses

External: Opportunities, Threats

BCG matrix

organizes business units along two dimensions: business growth rate and market share

stars

High (business growth rate), High (market shares)

- rapid growth rate and expansion

Cash Cow

Low (business growth rate), High (market shares)

- milk to finance bright prospects and stars

Bright Prospect

High (business growth rate), Low (market shares)

- New ventures

- Risky

- a few become stars, other are divested

Dog

Low (business growth rate), Low (market shares)

- No investment

- keep if some profit

- consider divestment

Forward integration

- enter new line or line that supports another

- Apple moved into retailing

Backward integration

- move into line that was previously a supplier

- Netflix produced its own content

Line position

- generate rev, make, conveyer belt workers

Line authority

- manager to subordinates

Staff position

- payroll, advertising, renters

Staff authority

- higher authority but in the same authority line

Span of management

the number of employees reporting to a supervisor

Tall structure

span of management is narrow and therefore has many hierarchical levels; many layers of management

Flat structure

span of management is wide and therefore has few hierarchical levels

Departmentalization

basis for grouping positions into departments and departments into the total organization

human resource management (hrm)

- the process of managing an organization's employees

- includes all aspects of people management to effectively meet an organization's goals

- drives organizational performance

goals of HRM

- hiring the right people to become more competitive on a global basis

- hiring the right people for improving quality, innovation, and customer service

- knowing the right people to retain after mergers, acquisitions, or downsizing

employment law

- laws ensure equal opportunity, stop discrimination, and define government enforcement agencies

- hrm department is responsible for employment law compliance

equal pay act (1963)

- cannot discriminate in pay based on sex

title vii, civil rights act (1964)

- prohibits discrimination in employment based on race, color, religion, sex, or national origin

- created the eeoc

age discrimination in employment act (1967)

- prohibits discrimination based on age (40 yrs and above)

family and medical leave act (1993)

- employers must provide up to 12 weeks of unpaid leave for childbirth, adoption, or personal/family emergencies

americans with disabilities act (1990)

- prohibits discrimination against qualified disabled people and must provide reasonable accommodations

- does not include pyromaniacs

occupational safety and health act (1970)

- established mandatory safety and health standards in organizations

patient protection and affordable care act (2010)

- employers required to provide health insurance or pay a fee

- requires preexisting conditions to be covered

recruiting

- activity of identifying or soliciting individuals from within or outside the organization to fill job vacancies or staff for growth

job analysis

(how recruiting begins)

- systematic process of gathering and interpreting information about the essential duties, tasks, responsibilities, and context of the job in addition to needed knowledge, skills, and abilities

job description

(output of job analysis)

- documentation of tasks, duties, and responsibilities of a job

- used to identify a qualified applicant and to inform them of the requirements of the job

job posting

- official advertisement of job openings to inform job seekers of opportunities

selection

- process employers use to assess applicant to determine the fit between them and the job

- most frequently used selection devices are application forms, interviews, and employment tests

virtual recruitment

- 60% of recruiters use video technology in the interview process now

- one way video interview platforms where applicants record their answers to questions on the screen

- save time for both companies and candidates

- help eliminate human bias