BUS 160: Chapters 5,7,8, Readings

Innovations in Management what do we learn

• role of management is mentoring rather than motivating

• how do I develop my people

management is the process of

• planning

• organizing

• leading

• controlling

• an organization’s financial, physical, human, and information resources to achieve its goals

organizing

arranging, allocating, distributing resources and activities into a coherent structure

middle manager

implements strategies and works toward goals set by top management

• ex. Regional Manager at Walmart ensures stores in their region follow corporate policies, meet sales targets, and manage costs effectively.

first line manager

supervises the work of employees directly involved in production or service delivery

• ex. A Shift Supervisor at McDonald’s oversees cashiers and cooks during a shift, making sure orders are prepared correctly and quickly.

interpersonal (basic managerial roles)

• figurehead

• leader

• liaison

informational (basic managerial roles)

• monitor

• disseminator

• spokesperson

decisional (basic managerial roles)

• entrepreneur

• disturbance handler

• resource allocator

• negotiator

human resource managers

• hire and train employee

• determine compensation

operations managers

productions, inventory, and quality control

marketing managers

responsible for getting products from producers to consumers

information managers

design systems to gather, organize, and distribute information

financial managers

overseeing accounting functions and financial resources

basic managerial skills

• technical skills - needed to perform specialized tasks

• human relations skills - in understanding and getting along with people

• conceptual skills - abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation

• decision-making skills - in defining problems and selecting the best courses of action

• time management skills - associated with the productive use of time

organizational structure

the specification of jobs and the ways in which they relate to one another

organization chart

depicts the structure and shows where employees fit into its operations

chain of command

reporting relationships within a company

building blocks of organizational structure

• job specialization - identifying specific job duties and the people who will perform them

• departmentalization - is the process of dividing an organization into different departments that perform specialized tasks according to specific criteria such as function, product, process, customer, or geography

• it helps improve efficiency, accountability, and coordination across various parts of the business

types of departmentalization

1. functional departmentalization - The organization is divided based on business functions or activities ex. marketing, finance, HR, production

2. product departmentalization - The organization is divided based on the products or services it offers (Apple with iPhone services, etc)

3. process departmentalization - departments are organized according to the steps or processes involved in producing goods or services (Ford motor groups departments by engineering, assembly, etc.)

4. customer departmentalization - the organization is divided based on the types of customer it serves (Bank of America has separate departments for individual clients, small businesses)

5. geographic departmentalization - the organization is structured according to regions, territories, locations where it operates (McDonald’s groups by regions NA, Europe, etc.)

centralized organization

most decision-making authority is held by upper-level management

• it follows a tall organizational structure that has multiple layers of management, span of control is narrow

decentralized organization

a great deal of decision making authority is delegated to lower level managers

• it follows flat organizational stature with not many layers of management

• span of control is wider

span of control

number of people supervised by one manager

delegation

manager allocates work to subordinates

1. assigning responsibility to perform an assigned task

2. granting authority to make the necessary decisions

3. creating accountability to successfully complete the task

delegation process

• assigning responsibility - giving an employee a specific task or duty to perform

• granting authority - Providing the employee the right and resources to make decisions necessary to complete the task

• creating accountability - making the employee answerable for the completion and quality of the task

determinants of organizational structure

1. size (amazon is large, local bakery is small)

2. internal environment (company culture, technology, leadership style, and employee skills)

3. external environment (market conditions, industry trends, etc)

4. mission (organization’s purpose and goals)

5. strategy (the way an organization competes in the market)

cost-leadership strategy may lead to a…

centralized, rigid structure, while a differentiation strategy may require a more flexible, decentralized structure

a company focused on innovation may…

have a flexible structure, whereas one focused on efficacy may have a more hierarchal structure

companies like Tesla may need a more….

adaptable structure while those in stable environments like a utility company may have more rigid structures

a collaborative culture may….

favor a team-based structure, while a more bureaucratic culture may require a traditional hierarchy

employee behavior

the pattern of actions by the members of an organization that directly or indirectly influences the organization’s effectiveness

performance behaviors

the total set of work-related behaviors that the organization expects employees to display e.gSales Rep expected to promote product/services

organizational citizenship

positive behaviors that do not directly contribute to the bottom line e.g helping newcomers learn their way

types of counterproductive behaviors

• absenteeism: when an employee does not show up for work

• turnover: annual percentage of an organization’s workforce that leaves and must be replaced

psychological contract

set of expectations held by an employee concerning what he or she will contribute to an organization (referred to as contributions) and what the organization will in return provide the employee (referred to as inducements)

person-job fit

the extent to which a person’s contributions and the organization’s inducements match one another

contributions from the individual in psychological contract

• effort

• ability

• loyalty

• skills

• time

• competency

inducement from the organization

• pay

• benefits

• job security

• status

• promotion opportunities

• career opportunities

basic motivations and theories

1. theory x and y

2. Maslow’s hierarchy of needs

3. 2 factor theory

4. expectancy theory

5. equity theory

classical theory of motivation

workers are motivated solely by money

who wrote principles of scientific management and proposed a way for both companies and workers to benefit from the idea that workers are solely motivated by money in the work place

Frederick Taylor

theory x

theory of motivation holding that people are naturally lazy and uncooperative

theory y

people are naturally energetic, growth-oriented, self-motivated, and interested in being productive

theory x example

At a traditional manufacturing company, the manager believes employees dislike work and must be closely supervised.

–The manager enforces strict schedules, monitors attendance, and offers financial rewards or penalties to maintain discipline.

–Employees have little autonomy, and creativity is discouraged

this theory assumes employees need constant direction and ext4ernal motivation (money, supervision) to perform

theory y

At a tech company, the manager believes employees are self-motivated and enjoy contributing ideas.

–Workers are given flexible hours, team projects, and freedom to choose how to complete their tasks.

–The manager provides support, coaching, and opportunities for professional growth rather than strict oversight.

this theory of management assumes employees are creative, responsible, and motivated by purpose and achievement rather than fear or control

Maslow’s hierarchy of needs model

theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs

1. self actualization - meaningful and fulfilling job

2. esteem needs - prestigious job title

3. social needs - friends at work

4. security needs - retirement plan

5. psychological needs - adequate salary

hezberg’s 2 factor theory

job satisfaction depends on

• hygiene factors similar to lower level needs such as fair wages, working conditions, policies, and supervisors (ex. supervisors, working conditions, interpersonal relations, and pay and security)

• motivation factors similar to higher level needs such s opportunity for achievement, recognition, responsibility, and growth (ex. achievement, recognition, the work itself, responsibility, advancement and growth)

equity theory by John stacey Adams

• theory of motivation holding that people evaluate their treatment by the organization relative to the treatment of others

• focuses on social comparisons, people evaluating their treatment by the organization relative to the treatment of others. This approach holds that people begin by analyzing inputs (what they contribute to their jobs in terms of time, effort, education, experience) relative to outputs (what they receive in return—salary, benefits, recognition, security). This comparison is similar to the psychological contract.