MGMT 3013 Final Exam

Management

the art of getting things done through people, they create value through effectiveness and efficiency

Organization

group of people who work together to achieve some specific purpose

4 functions of management

planning

organizing

leading

controlling

top managers

CEO, Senior VP, etc.

make long term decisions about overall direction of the organization and establish objectives, policies, and strategies

middle managers

"Branch Manager" "regional manager"

implement the policies and plans of the top managers and supervise/coordinate activities of first-line managers

first line managers

Team-leader, Foreman, supervisor

make short-term operating decisions, directing the daily tasks on non-managerial personnel

non-managerial personnel

complete daily tasks as directed by first-line manager

Technical skills

job-specific knowledge needed to perform well in a specialized field

conceptual skills

ability to think analytically, to visualize an organization as a whole and understand how the parts work together

human skills

ability to work well in cooperation with other people to get things done

internal stakeholders

consist of employees, owners, and the board of directors

owners

all those who can claim the organization as their legal property

board of directors

members elected by the stockholders to see that the company is being run according to their interests, set salaries for top CEO's

the task environment

customers

media

competitors

suppliers

distributors

allies

unions

lenders

governments

interest groups

customers

those who pay to use the organization's goods or services

competitors

people or organizations that compete for customers or services

*suppliers

person or organization that provides raw materials, services, labor or energy to other organizations

distributor

person or organization that helps another organization sell its goods and services to customers

*allies

describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone

government regulators

regulatory agencies that establish ground rules under which organizations may operate

special interest groups

groups whose members try to influence specific issues

the general environment

economic forces

international forces

political-legal forces

demographic forces

sociocultural forces

technological forces

*economic forces

unemployment, inflation, interest rates, economic growth - trends and conditions that may affect an organizations performance

*technological forces

new developments in methods for transforming resources into goods and services

*sociocultural forces

influences and trends originating in a country's or culture's human relationships and values that may affect organization

*demographic forces

influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

*political legal forces

changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

*international forces

changes in the economic, political, legal, and technological global system that may affect an organization

external stakeholders

people or groups in the organization's external environment that are affected by it

- task, general environment

social responsibility

manager's duty to take actions that will benefit the interests of society as well as of the organization

corporate social responsibility

notion that corporations are expected to go above and beyond following the law and making a profit

- philanthropy

globalization

the trend of the world economy toward becoming a more interdependent system

global village

the "shrinking" of time and space as air travel and the electronic media have made it much easier for the people of the globe to communicate with one another

ethnocentric managers

believe that their native country, culture, language, and behavior are superior to all others

polycentric managers

take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

geocentric managers

accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

How companies expand internationally:

global outsourcing

importing

exporting

countertrading

licensing

franchising

joint ventures

wholly-owned subsidiary

greenfield venture

global outsourcing

using suppliers outside the U.S. to provide labor, goods, or services

importing

company buys goods outside the country and resells them domestically

exporting

company produces goods domestically and sells them internationally

countertrading

bartering goods for goods

*licensing

firm allows a foreign company to pay it a fee to make or distribute the firm's product or service

*franchising

firm allows a foreign company to pay it a fee and a share of the profit in return for using the firm's brand name

*joint ventures

formed with foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Cultural dimensions

low-context culture

high-context culture

low-context culture

shared meanings are primarily derived from written and spoken words

high-context culture

people rely heavily on situational cues for meaning when communicating with others

Hofstede's Model of 4 Cultural Dimensions

Individualism/collectivism

power distance

uncertainty avoidance

masculinity/femininity

individualism/collectivism

how loosely or tightly are people socially bonded

power distance

how much do people accept inequality in power

uncertainty avoidance

how strongly do people desire certainty

masculinity/femininity

how much do people embrace stereotypical male or female traits

GLOBE

Global Leadership and Organizational Behavior Effectiveness

- 18,000+ managers/150+ scholars doing research on culture around the world

planning

set goals and decide how to achieve them

making plans

mission statement -> vision statement -> strategic planning -> tactical planning -> operational planning

mission statement

expresses purpose of the organization

vision statement

- long-term goal describing "what" an organization wants to become

- clear sense of the future and the actions needed to get there

goals

strategic goals

tactical goals

operational goals

strategic goals

set by and for top management and focus on objectives for the organization as a whole

tactical goals

set by and for middle managers and focus on the actions needed to achieve strategic goals

operational goals

set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals

SMART goals

Specific

Measurable

Attainable

Results-oriented

Target dates

MBO

1. Jointly set objectives

2. develop action plan

3. periodically review performance

4. give performance appraisal and rewards, if any

*meant for motivation instead of controlling

objectives used in MBO

Improvement

Personal Development

Maintenance

for MBO's to be successful:

- top management must be committed

- it must be applied organization-wide

- objectives must "cascade"

common grand strategies

growth

stability

defensive

growth strategy

involves expansion - as in sales revenues, market share, number of employees, or number of customers

stability

involves little or no significant change

defensive

involves reduction in the organization's efforts

competitive intelligence

gaining information about one's competitors activities so that you can anticipate their moves and react appropriately

SWOT analysis

strengths

weaknesses

opportunities

threats

environmental scanning

careful monitoring of an organizations internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans

organizational strengths

skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission

- resources, finances

organizational weaknesses

drawbacks that hinder an organization in executing strategies in pursuit of it's mission

Porter's Five Competitive forces

1. threat of new entrants

2. bargaining power of suppliers

3. bargaining power of buyers

4. threat of substitute products or services

5. rivalry among competitors

Porter's Four Competitive Strategies

1. cost-leadership

2. differentiation

3. cost-focus

4. focused-differentiation

cost-leadership strategy

keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market

differentiation strategy

offer products that are pf unique and superior value compared to those of competitors but to target a wide market

cost-focus strategy

keep the costs of a product below those of competitors and to target a narrow market

focused-differentiation

offer products that are of unique and superior value compared to those of competitors and to target a narrow market

rational model of decision making

- explains how managers should make decisions

- assumes managers will make logical decisions that will be optimum in furthering the organizations interest

nonrational model of decision making

assume that decision making is nearly always uncertain and risky, making it difficult to managers to make optimal decisions

decision making styles

directive

analytical

conceptual

behavioral

directive

- high task value

- low risk tolerance

people are efficient, logical, practical, and systematic in their approach to solving problems

analytical

- high task value

- low risk tolerance

considers more information and alternatives

conceptual

- high social

- high risk tolerance

take a broad perspective to problem solving

- likes to consider many options and future possibilities

behavioral

- high social

- low risk tolerance

supportive, receptive to suggestions, show warmth

- prefer verbal to written information

participative management

process of involving employees in setting goals, making decisions, solving problems, and making changes in the organization

- focus groups

- Think-tanks

Group problem solving techniques

consensus

brainstorming

computer-aided decision making

consensus

occurs when members are able to express their opinions and reach agreement to support the final decision

brainstorming

technique use to help groups generate multiple ideas and alternatives for solving problems

computer-aided decision making

chauffeur-driven systems

group-driven systems

chauffeur-driven systems

ask participants to answer predetermined questions on electronic keypads or dials

group-driven systems

involves a meeting within a room of participants who express their ideas anonymously on a computer network

organizational culture

system of shared beliefs and values that develops within an organization and guides the behavior of its members

types of organizational culture

clan culture

adhocracy culture

market culture

hierarchy culture

clan culture

- internal focus

- values flexibility

- employee-focused

- encourages collaboration among employees

Adhocracy culture

- external focus

- values flexibility

- attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace

market culture

- external focus

- values stability

- driven by competition and a strong desire to deliver results

hierarchy culture

- internal focus

- values stability

- apt to have a formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms

- chain of command in place that is to be followed to maintain order