FINAL

art of Management

the art of getting things done through people
Integrating the work of people

are task-oriented, achievement-oriented, and people-oriented.

concerned with trying to achieve both efficiency and effectiveness.

Management

the pursuit of organizational goals
efficiently and effectively

efficient

use resources—people, money, raw materials, and the like—wisely and cost-effectively.

effective

achieve results, to make the right decisions and to successfully carry them out so that they achieve the organization’s goals.

4 Principal Fuctions

planning
organizing
leading
controlling

planning

set goals and decide how to achieve them

organizing

arrange tasks people and other resources to accomplish the work

leading

you motivate, direct, influence people to work hard to achieve org. goals

controlling

you monitor performance compare it with goals and take corrective action as needed

levels of management

top managers
middle managers
first-line managers
nonmanagerial employees

top managers

make long-term decisions

middle managers

implement the policies and plans of the top managers above them.

First-line managers

make short-term operating decisions

Nonmanagerial employees

either work alone on tasks or with others on a variety of teams.

7 CHALLENGES TO BEING AN EXCEPTIONAL MANAGER

1. managing for competitive advantage
2. managing for info tech
3. managing for inclusion and diversity
4. globalization
5. managing for ethical standards
6. managing for sustainability
7. managing for happiness and meaningfulness

MANAGING FOR COMPETITIVE ADVANTAGE

Organizations must stay ahead in four areas:
Being responsive to customers
Innovation
Quality
Efficiency

MANAGING FOR TECHNOLOGICAL ADVANCES

The “new normal”

Far-ranging electronic management all of the time.

Data, data, and more data: a challenge to decision making

The rise of artificial intelligence: more automation in the workforce

Organizational changes: shifts in structure, jobs, goals, and management

Knowledge management and collaborative computing

MANAGING FOR INCLUSION AND DIVERSITY

In the coming years there will be a different mix of women, immigrants, and older people in the general population, as well as in the workforce.

Some scholars think that diversity and variety in staffing produce organizational strength.

Clearly, however, the challenge to the manager of the near future is to maximize the contributions of employees diverse in gender, age, race, ethnicity, and sexual orientation.

MANAGING FOR GLOBALIZATION

Verbal expressions and gestures don’t mean the same thing to everyone around the world.

Failure to understand cultural differences can affect organizations’ ability to manage globally.

Globalization is the increasingly interconnected nature of business around the world.

Managing for globalization will be a complex, ongoing challenge.

MANAGING FOR SUSTAINABLE DEVELOPMENT

economic system has brought prosperity but in doing so has often assumed an unlimited supply of natural resources.

We now believe some of the actions and decisions of the past have caused irreversible damage to the environment.

The United Nations addressed these issues by adopting a set of 17 Sustainable Development Goals (SDGs).

Clearly sustainable development is a critical issue facing businesses today.

MANAGING FOR HAPPINESS AND MEANINGFULNESS

Research shows that a sense of meaningfulness in your life is associated with better health, work and life satisfaction, and performance.

Build meaning into your life by:
Identifying activities you love doing
Finding a way to build your natural strengths into your personal and work life
Going out and helping someone

The Triple Bottom Line

Represents people, planet, and profit (the 3 Ps).

Measures an organization’s social, environmental, and financial performance.

stakeholders

people whose interests are affected by an organizations activities

INTERNAL STAKEHOLDERS

Employees, owners, board of directors

Owners (internal stakeholder)

consist of all those who can claim organization as their legal property

Board of directors (internal stakeholder)

Members elected by the stockholders to see that the company is being run according to their interests.

EXTERNAL STAKEHOLDERS

People or groups in the organization’s external environment that are affected by it
- task env.,
-general env.

The task environment (external stakeholder)

consists of 10 groups that present an organization with daily tasks to handle

Customers
Competitors
Suppliers
Distributors
Strategic Allies
Employee Organizations
Local Communities
Financial Institutions
Government Regulators
Special-Interest Groups

general environment (external stakeholder)

macroenvironment such as economic, technological, sociocultural

economic
technological
sociocultural
demographic
political–legal
international

Corporate social responsibility

corporations expected to take actions that will benefit the interests of society as well as of the organization.

philianthropic responsibility
ethical responsibility
legal responsibility
economic responsibility

Four Approaches to Resolving Ethical Dilemmas

Utilitarian approach
individual approach
moral rights approach
justice approach

utilitarian approach

for greatest good

Guided by what will result in the greatest good for the greatest number of people.
Often associated with financial performance.

indivudual approach

for your greatest self-interest long term

Guided by what will result in the individual’s best long-term interest, which ultimately is in everyone’s self-interest.
Assumes that people will act ethically in the short run to avoid harm in the long run.
Flaw is one person’s short-term gain may not be good for everyone in the long term.

moral rights approach

respecting fundamental rights

Guided by respect for the fundamental rights of human beings: the right to life, liberty, privacy, health, safety, and due process.
For example, the U.S. Constitution’s Bill of Rights.

justice approach

respecting impartial standards of fairness

Guided by respect for impartial standards of fairness and equity.
Policies administered impartially and fairly, regardless of gender, age, sexual orientation, and the like.

Ethics

Unwritten standards of right and wrong that influence behavior.

Values

Relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior.
Values and value systems are the underpinnings for ethics and ethical behavior

Creating shared value (CSV)

implementing policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.

ethical dilemma

A situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

social responsibility

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

Corporate social responsibility (CSR)

corporations are expected to go above and beyond following the law and making a profit, to take actions that will benefit the interests of society as well as of the organization

Natural capital

The value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on

WHY LEARN ABOUT International Management?

Multinational corporations
Multinational organizations
You may deal with foreign customers or partners
You may deal with foreign employees or suppliers
You may work for a foreign firm in the United States

Why Companies Expand Internationally

Availability of supplies
New markets
Lower labor costs
Access to finance capital
Avoidance of tariffs and import quotas

how companies expand internationally

global outsourcing
importing, exporting, counter trading
licensing & Franchising
joint ventures
wholly owned subsidiaries

ethnocentric managers

"we know best"

Polycentric managers

“They know best.”

Geocentric managers

What’s best is what’s effective, regardless of origin.”

culture

Shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.

Example: negotiation or shared meals differs from country to country.

power distance

society's members expect power to be unequally shared

uncertainty avoidance

extent to which society relies on social norms and procedures to alleviate the unpredictability of future events

in group collectivism

extent which people should take pride in being members of their family, circle of close friends, and their work org.

institutional collectivism

extent which individuals are encouraged and rewarded for loyalty to group as opposed to pursuing individual goals

gender egalitarianism

extent which society should minimize gender discrimination and inequalities

assertiveness

society expects people to be confrontational and competitive as opposed to tender and modest

future orientation

society encourages investment in future as by planing and saving

performance orientation

society encourages and rewards members for performance improvement and excellence

human orientation

individuals are encouraged to be altruistic, caring, kind, generous, fair

Low-context culture

Shared meanings primarily derived from written and spoken words.
Includes U.S., Great Britain, Scandinavia, Germany.

High-context culture

Rely heavily on situational cues for meaning when communicating with others.
Includes China, Korea, Japan, Mexico, many Arab countries

culture

shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people See also Organizational culture

Multinational corporations

business firm with operations in several countries

Multinational organization

nonprofit organization with operations in several countries

Geert Hofstede

proposed his model of 4 cultural dimensions which identified dimensions which national cultures can be placed

1. individualism/collectivism
2. power distance
3. uncertainty avoidance
4. masculinity/femininity

Outsourcing

Using suppliers outside the company to provide goods and services

Exporting

Producing goods domestically and selling them outside the country

Importing

Buying goods outside the country and reselling them domestically

Countertrading

Bartering goods for goods

licensing

Company X allows a foreign company to pay it a fee to make or distribute X’s product or service

Franchising

form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services

Joint venture

Also known as a strategic alliance; a U.S firm may form a ------- with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Wholly owned subsidiary

foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by an organization

cross cultural competency

1. listen and observe
2. become aware of context
3.choose something basis

Planning

the first of the four functions in the management process.

involves setting goals and deciding how to achieve them.

It also involves ensuring the plans are linked to the business strategy.

strategic plan

Sets long-term goals and direction for an organization

Represents an “educated guess” about what long-term direction to pursue for the survival or prosperity of the organization.

Strategic management: involving all managers in strategy

• Steps in planning and strategic management

1. establish mission and vision and values
2. assess current reality
3. formulate grand strategy & strategic, tactical, & operating plans
4. implement strategy
5. maintain strategic control

WHY PLANNING AND STRATEGIC MANAGEMENT ARE IMPORTANT

Providing direction and momentum
Encouraging new ideas
Developing a sustainable competitive advantage

mission statement

Express the purpose of the organization.
What is our reason for being?
Why are we here?

Vision Statement

A clear sense of the future and the actions needed to get there
What do we want to become?
Where do we want to go?

Value Statement

What the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world
What values do we want to emphasize?

THREE TYPES OF PLANNING FOR THREE LEVELS OF MANAGEMENT

top management (strategic planning)

middle management (tactical planning)

1st line management & team leaders (operational planning)

Tactical Planning

done by middle managers for the next six to twenty-four months. Goals to action plans.

Operational Planning

done by first-line managers for the next one to fifty-two weeks. Goals to action plans.

SMART GOALS

specific
measurable
attainable
results-oriented
target dates

specific

goals should be stated in percise rather than vague terms

measurable

whenever possible, goals should be or quantifiable

attainable

goals should be challenging but should be realistic

results oriented

only few goals should be chosen, should support org. vision

target dates

goals should specify deadlines when they are to be obtained

MANAGEMENT BY OBJECTIVES (MBO)

Jointly set objectives.
Develop an action plan.
Periodically review performance.
Give performance appraisal and rewards.

THREE TYPES OF OBJECTIVES USED IN MBO

performance objectives
behavioral objectives
learning objectives

Performance Objectives

Focus Express the objective as an outcome or end-result. Examples: “Increase sport utility sales by 10%.” “Reduce food spoilage by 15%.”

Behavioral Objectives

Express the objective as the behaviors needed to achieve an outcome.

Examples “Greet all potential automobile customers with a smile and offer to assist.” “Ensure food is stored in seal-proof containers.” “Attend five days of leadership training.” “Learn basics of Microsoft Office software by June 1.”

Learning Objectives

Express the objective in terms of acquiring knowledge or competencies.

Examples “Attend sales training class.” “Learn how the features in our sports utility vehicles compare to competitors.”

A flowchart

a useful graphical tool for representing the sequence of events.

A Gantt chart

kind of time schedule – a specialized bar that shows the relationship between the kind of work tasks planned and their scheduled completion dates.

Break-even analysis

of identifying how much revenue is needed to cover the total costs of developing and selling a product/offering a service.

STRATEGIC POSITIONING

Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.
Performing different activities from rivals, or performing similar activities in different ways.

THE STRATEGIC MANAGEMENT PROCESS

1. establish mission, vision, value statements
2. assess current reality
3. formulate corporate business and functional strategies
4. execute strategies
5. maintain strategic control

VRIO

VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential