Intro to management EXAM 1- Rutgers Hamilton

Drivers of Management Evolution

Businesses exist to:

serve the needs of society

use resources to create value

create jobs and do good

Scientific Management Theory

Adam Smith- Job Specialization and division of labor

Fredrick Taylor: 4 Principles to increase efficiency

The Bilbreaths: Three step process to creating more efficient process

4 Principles to increase efficiency

1. Study the work and experiment with different processes

2. Codify the best methods

3. Hire and align worker skills with jobs

4. Provide fair pay and incentives

The Gilbreath's 3 step approach

1. Analyze the tasks

2. Find better ways to complete the tasks

3. reorganize tasks to become more efficient

Administrative theory

Max Weber: 5 principles of bureaucracy- developing organization structure

Henri Fayol- 14 principles of efficiency

Behavioral Management

Mary Follet- Human side of management- collaboration- knowledge= job

Elton Mayo- Hawthorne Studies

Management Science

Quantitative Management- uses data, models etc.

Operations Management- Specialize techniques for optimization

Total Quality Management- Process Management- measurement- feedback

Management Information Systems- provides easy access to internal and external data

Hawthorne Studies

controlled studies at factories in Cicero, Illinois to evaluate various factors on worker productivity(i.e. changes in lighting).

Two unexpected factors occurred:

-the workers working as a team encouraged each other (group dynamics)

-the workers had been engaged by management feedback

Human Relations of Behavior Movement

Organizational Environment Theory

Open Systems View: Katz, thomson resources come in externally- made internally and sent back out to the open market

Contingency Theory- Lawerance

Stable environment- mechanistic structure

Changing environment - organic structure

Leadership and Innovation

Leadership Vs Management- Emotional Intelligence- Leader persuades

Importance of Innovation- Impact of disruptive technologies- employee engagement

Recommendations

Better Management

More engaged workforce

More employee satisfaction

More productivity

Customer Value Proposition

How the company will satisfy the customer needs and wants at the right price for the value

Profit Formula- how well they do it

Value Price Cost

Value to the customer > Price of Product

Price of product > Cost of product

Strategy

The action plan to outperform competitors and achieve higher profitability

Strategic Vision

Management's goals for the company's future and course of direction to achieve them

Mission Statement

Who the company is and why they are there

- identifies product

-clear sense of identity

Values

Company's beliefs, norms, employee expectations

Financial vs Strategic Objectives

Financial- Annual Growth rate ROI Earnings

Strategic- winning market share

wider product line

SMART Goals

Specific

Measurable

Actionable

Realistic

Timely

Deliberate vs Emergent

Deliberate-proactive company approach

Emergent- reactive strategy

Realized strategy- the two combined

Strategy Review

Fit Test - How well the strategy fits the company's situation

Competitive Advantage-

Performance test- Competitive strength and Market standing

Profitability and financial strength

Macro Environment

broad environmental context of the company's industry

P - Political

E - Economic

S - Social

T - Technological

E - Environmental

L - Legal

Industry and Competitive environment

Five Forces

Driving Forces

Key Success Factors

Industry Outlook for Profitability

Five Forces

Rivals

Entrants

Substitutes

Bargaining bower of suppliers

Bargaining bower of buyers

Driving Forces

Industry Growth rate

globalization

technological changes

societal concerns

Internal Analysis

Supply- VRIN- Valuable- Rare- Inimitable- Nonsubstitutable

Value Chain Analysis

Primary Activities related to creating customer value

SWOT Anaylsis

Strength Weaknesses Opportunities Threats

5 generic competitive strategies

Low-Cost Provider-Lower costs overall than rivals

Broad differentiation- varying products in order to attract more buyers

Focused low cost- price-sensitive buyer offers lower price

focused differentiation- Niche Markets

Best-Cost provider- upscale attributes at a lower price

Value Drivers

customer service

input quality

sales and marketing

quality control

Corporate Governance

Relationship between shareholders- management and board of directors

3 main mechanisms of Corporate Governance

1. Committed BoD to align company strategies with shareholder values

2. Shareholder activism- owners become actively engaged

3. Reward and compensation agreements

Board of Directors

group that has fiduciary responsibility to ensure the the company is run consistent with the long-term interests of the shareholders.

Control

any process that directs the activities of individuals towards achieving company goals

Symptoms of Out-Of-Control Company

Lax Top management

Lack of performance reviews

Bad information systems

3 Broad Strategies for Organizational Control

Bureaucratic Control- Uses of top down management- measuring performance- taking action to correct problems

Market control- prices, competition, profit centers

Clan Control - involves culture, shared beliefs, expectations

Feedforward control

Collecting information before a job is completed

Concurrent Control

collecting performance data in real time live ways

Feedback Control

Collecting information after a task is being done

Enterprise Risk Management

In the ******* name of the term

Organizational Design

The process by which manager create specific structure and culture so that it is efficient and effective

4 steps of organization design

1. Create productive and meaningful jobs

2. group Jobs and create structure

-task and reporting relationships

that coordinates and motivates organizational members

3. Integrate and Coordinate work flows

- informational flow

-matrix structure

4. Establish culture

Flat Structures

Fewer levels and wider span of control

quick communication- but can lead to overworked managers with too many direct reports

Tall Structures

Communication problems- too long for decisions to be made

distortion of messages

too many managers(expensive)

Integration Systems

Strategy- sets clear priority and goals

Incentives-motivates and encourages employees

Structure- facilitates linkages throughout the system

Culture- encourages collaboration

Monitoring- illuminates gaps and breakdowns

Sources of culture

Ethics

employment relationship

Organizational structure

characteristics of individuals

Components of HR Management Systems

Recruitment & selection

Training & Development

Performance Appraisal & Feedback

Pay & Benefits

Labor Relations

EEO

Equal Employment Opportunity

Collective Bargaining

Negotiations between company and labor unions

Human Resource Summary

HRM includes all the activities managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals

There are five key components of the HRM system: Recruitment & selection; Training & development; Performance appraisal & feedback; Pay & benefits, and Labor relations

Types of performance appraisals

trait- behavior- results- objectives- subjective

Inner Work Life System

How emotions, perceptions and motivations influence workday events

Components of IWLS

Emotions- happiness pride anger

Perceptions- the work itself (value)'

role in the particular team itself

self efficacy

Motivation- What, How, DO it?, When

Inner Work Life

More engagement- More creativity, productivity, collaboration

2 Keys for managers to use for effective Inner Work Life

1. Enable workers to move forward in their work

2. Treat them with respect and dignity

Employee Engagement

Employee's state of mind in and behavior in relation to the performance of their formal work role

includes behavior

Employee Engagement

If they are disengaged they are more likely to make the wrong decisions, less collaborative and invest discretionary effort

Management actions to increase engagement

Worthwhile mission

well-designed organization

positive values and culture

proactive HR practices

Emotionally Intelligent Supervisors

Practice of Management

Implementing process and practices that identify and deliver superior performance in innovative and socially responsible organizations

Business Model

how its strategy will create value for the customer and generate revenues to cover costs and realize profit (includes customers value prop and profit formula)

Customer Value Prop

the company's approach to satisfy buyer needs or wants at a price the customer will consider a good value