Management-KU Leuven BBA

manager

Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished

first-line (frontline) managers

Managers at the lowest level of management who manage the work of nonmanagerial employees

Middle Managers

managers between the lowest level and top levels of the organization who manage the work of first-line managers

Top Managers

Managers at or near the upper levels of the organization structure who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization

organization

a deliberate arrangement of people to accomplish some specific purpose

Management

coordinating and overseeing the work activities of others so their activities are completed efficiently and effectively

efficiency

doing things right, or getting the most output from the least amount of inputs

effectiveness

doing the right things, or doing those work activities that will result in achieving goals

Henry Fayol (1841-1925)

a founding member of classical management school, described the five functions of management to be POCCC (planning, organizing, commanding, coordinating and controlling)

POLC

Used today to describe the four main function of a manager: planning, organizing, Leading, controlling

Planning

management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities

organizing

Management function that involves arranging and structuring work to accomplish the organization's goals

leading

management function that involves working with and through people to accomplish organizational goals

controlling

management function that involves monitoring, comparing, and correcting work performance

Henry Mintzberg

Divided manager's job into three types: interpersonal, informational, decisional

managerial roles

specific actions or behaviors expected of and exhibited by a manager. Grouped into 3 categories: interpersonal, informational and decisional

interpersonal roles

managerial roles that involve people and other duties that are ceremonial and symbolic in nature

informational roles

managerial roles that involve collecting, receiving, and disseminating information

decisional roles

managerial roles that revolve around making choices

Robert L. Katz

Proposed that managers need three critical skills in managing: technical, interpersonal and conceptual.

technical skills

job-specific knowledge and techniques needed to proficiently perform work tasks

interpersonal skills

the ability to work well with other people individually and in a group

conceptual skills

the ability to think and to conceptualize about abstract and complex situations

recent changes in managing

global economic and political uncertainty, ethical issues, security threats and changing technology.

changing technology (digitization)

shifting organizational boundaries, virtual workplaces, more mobile workforce, flexible work arrangements, empowered employees, work life-personal life balance, social media challenges,

increased emphasis on organizational and managerial ethics

redefined values, rebuilding trust, increased accountability, sustainability.

increased competitiveness

customer service, innovation, globalization, efficiency/productivity

changing security threats

Risk management, uncertainty over future energy sources/prices, restructured workplace, discrimination concerns, globalization concerns, employee assistance, uncertainty over economic climate

innovation

very important in management, something new, a change; the act of introducing a new method, idea, device, etc.

Sustainability

a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies

Universality of Management

the reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in organizations no matter where located

division of labor (specialization)

breaking down jobs into narrow and repetitive tasks.

classical approach

first studies of management, which emphasized rationality and making organizations and workers as efficient as possible. Important contributors are Frederick W. Taylor, Frank and Lillian Gilbreth, Henri Fayol and Max Weber

therbligs

a classification scheme for labeling basic hand motions

General Administrative Theory

More Henri Fayol and Max Weber's work, an approach to management that focuses on describing what managers do and what constitutes good management practice.

Scientific Management

Frederick W Taylor and the Gilbreth's work. An approach that involves using the scientific method to determine the "one best way" for a job to be done.

principles of management

fundamental rules of management that could be applied in all organizational situations and taught in schools

Bureaucracy

A form of organization characterized by division of labor, clearly defined hierarchy, detailed rules and regulations and impersonal relationships

organizational behavior (OB)

the study of the actions of people at work

Hawthorne Studies

A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior

quantitative approach

the use of quantitative techniques to improve decision making

Total Quality Management (TQM)

a philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations

system

a set of interrelated and interdependent parts arranged in a manner that produces a unified whole

closed system

systems that are not influenced by and do not interact with their environment

open systems

systems that interact with their environment

contingency approach

a management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing

decision

choice made from among available alternatives

problem

an obstacle that makes it difficult to achieve a desired goal or purpose

decision criteria

criteria that define what's important or relevant to resolvinga problem

decison making process

8 step process leading to making the right decision:

1) Identifying a problem

2)Identifying decision criteria

3)Allocating weights to the criteria

4)Developing alternatives

5)Analyzing alternatives

6)Selecting an alternative

7)Implementing the alternative

8) Evaluating decision effectiveness

rational decision making

describes choices that are logical and consistent and maximize value

bounded rationality

decision making that's rational, but limited (bounded) by an individual's ability to process information

satisfice

accepting solutions that are "good enough"

escalation of commitment

an increased commitment to a previous decision in spite of negative information

intuitive decision making

Making decisions on the basis of experience, feelings, and accumulated judgment.

evidence-based management

the systematic use of the best available evidence to improve management practice

structured problems

straightforward, familiar, and easily defined problems

programmed decision

a repetitive decision that can be handled by a routine approach

procedure

a series of sequential steps used to respond to a well-structured problem

rules

An explicit statement that tells managers what can or cannot be done.

policy

a guideline for making decisions

Unstructured Problems

problems that are new or unusual and for which information is ambiguous or incomplete

nonprogrammed decisions

Unique and nonrecurring decisions that require a custom-made solution

certainty

a situation in which a manager can make accurate decisions because all outcomes are known

risk

A situation in which the decision maker is able to estimate the likelihood of certain outcomes

uncertainty

a situation in which a decision maker has neither certainty nor reasonable probability estimates available

Linear Thinking Style

Decision style characterized by a person's preference for using external data and facts and processing this information through rational, logical thinking

Nonlinear thinking style

Decision style characterized by a person's preference for internal sources of information and processing this information with internal insights, feelings, and hunches

heuristics

rules of thumb that simplify decision making

design thinking

approaching management problems as designers approach design problems

omnipotent view of management

the view that managers are directly responsible for an organization's success or failure

symbolic view of management

the view that much of an organization's success or failure is due to external forces outside managers' control

external environment

those factors and forces outside the organization that affect its performance

environmental uncertainty

the degree of change and complexity in an organization's environment

environmental complexity

the number of components in an organization's environment and the extent of the organization's knowledge about those components

stakeholders

any constituencies in the organization's environment that are affected by an organization's decisions and actions

organizational culture

the shared values, principles, traditions, and ways of doing things that influence the way organizational members act and that distinguish the organization from other organizations

strong culture

organizational cultures in which the key values are intensely held and widely shared, where the culture convey a consistent message about whats important, employee strongly identify with culture, everyone in company can tell stories about company history and heroes.

weak culture

a culture in which the values and norms are shared by a limited group of people and employees' goals may not be in line with management's goals

socialization

the process that helps employees adapt to the organization's culture

parochialism

viewing the world solely through your own perspectives, leading to an inability to recognize differences between people

Ethnocentric Attitude

the parochial belief that the best work approaches and practices are those of the home country

polycentric attitude

the view that the managers in the host country know the best work approaches and practices for running their business

geocentric attitude

a world-oriented view that focuses on using the best approaches and people from around the globe

EU (European Union)

A union of 27 European nations created as a unified economic and trade entity

NAFTA (North American Free Trade Agreement)

AN agreement among the Mexican, Canadian and US government in which barrier of trade have been eliminated

ASEAN (Association of Southeast Asian Nations)

trading bloc of 10 countries in Southeast Asia

WTO (World Trade Organization)

A global organization of 159 countries that deal with the rules of trade among nations

global sourcing

purchasing materials or labor from around the world wherever it is cheapest

exporting

making products domestically and selling them abroad

importing

acquiring products made abroad and selling them domestically

licensing

an organization gives another organization the right to make or sell its products using its technology or product specifications

franchising

an organization gives another organization the right to use its name and operating methods

strategic alliance

a partnership formed between an organization and foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities

joint venture

a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose

foreign subsidiary

directly investing in a foreign country by setting up a separate and independent production facility or office

free market economy

an economic system in which resources are primarily owned and controlled by the private sector

planned economy

an economic system in which economic decisions are planned by a central government

Star Model(change culture)

Change: strategy, Top Management, processes, people, structure and motivational systems.

Hofstede's Cultural Dimensions (how national culture affects work environment)

power distance, individualism, masculinity, uncertainty avoidance, long-term orientation