Mgmt 3013: Exam 1- Oklahoma State University

Organization

Group of people who work together to achieve some specific purpose

Management

Pursuit of organizational goals efficiently and effectively by integrating work of people through, planning, organizing, and controlling the organization's resources.

Efficient

People, money, raw materials and like-wisely and cost- effectively.

Effective

Achieve results, achieve organizations goals.

Planning

You set goals and decide how to achieve them.

Organizing

You arrange tasks, people and other resources to accomplish the work.

Controlling

You monitor performance, compare it with goals and take corrective action as needed.

Leading

You motivate, direct and otherwise influence people to work hard to achieve the organizations goals.

Competitive Advantage

Ability of an organization to produce goods or services more effectively than competitors do- outperforming them.

Managing for Competitive Advantage

Being responsive to customers, innovation, quality, efficiency.

Sustainability

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Levels and Areas of Management

Top managers, Middle managers, First- line managers and Non-managerial personnel.
R&D, Marketing, Finance, Production and Human resources.

Top Managers

Make long-term decisions about the overall direction of the organization and establish the objectives, policies and strategies for it.

Middle managers

Implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them.

"High touch" Jobs

Dealing with people rather than computer screens or voice- response systems.

First- line managers

Make short- term operating decisions, directing the daily tasks of non-managerial personnel

Team leader

Manager who is responsible for facilitating team activities toward achieving key results

Functional manager

Responsible for just one organizational activity

General manager

Responsible for several organizational activities

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

Soft skills

Ability to motivate, to inspire trust and communicate with others.

Interpersonal roles

Managers interact with people inside and outside their work units- figurehead, leader and liaison

Informational roles

Managers receive and communicate information; monitor, disseminator, spokesperson

Decisional roles

Managers use information to make decisions to solve problems or take advantage of opportunities; entrepreneur, disturbance handler, resource allocator, negotiator.

Entrepreneurship

Process of taking risks to try to create a new empire; entrepreneur, intrapreneur

Entrepreneur

Someone who sees a new opportunity for a product or service and launches a business to try to realize it- starts a business.

Intrapreneur

Works inside an existing organization whosees an opportunity for a product or service and mobilizes the organization's resources to try to realize it.

Manager

What it takes to grow or maintain a business

Necessity entrepreneurs

Suddenly must earn a living and are simply trying to replace lost income and are hoping a job comes along

Opportunity entrepreneurs

Start their business out of a burning desire rather than because they lost a job.

Historical perspective

Classical, behavioral, and quantitative

Contemporary perspective

Systems, contingency and quality- management

Scientific management

Emphasized the scientific study of work methods to improve the productivity of individual workers- Frederick W. Taylor, Frank and Lillian Gilbreth

Administrative management

Concerned with managing the total organization

Henri Fayol

French engineer and industrialist; first to identify the major functions of management

Mechanistic

Tends to view humans as cogs within a machine, not taking into account the importance of human needs.

Behavioral viewpoint

Emphasized the importance of understanding human behavior and of motivating employees toward achievement. Early behaviorism, the human relations movement and behavioral science.

Hugo Munsterberg

Father of industrial psychology

Mary Parker Follett

Social worker and social philosopher

Hawthorne effect

Employees worked harder if they received added attention, thought that managers cared about their welfare and that supervisors paid special attention to them; Elton Mayo

Human relations movement

Proposed that better human relations could increase worker productivity; Abraham Maslow and Douglas McGregor

Maslow's Hierarchy of Needs

Self- actualization; Esteem; Social; Safety and Physiological

Theory X

Represents a pessimistic, negative view of workers; workers are irresponsible, resistant to change, lack ambition, hate work and want to be led.

Theory Y

Represents an optimistic, positive view of workers; workers are considered capable of accepting responsibility self- direction, self control and being creative

Why theory X/ theory Y are important?

Helps managers understand how their beliefs affect their behavior; managers can be more effective by considering how their behavior is shaped by their expectations about human nature.

Behavioral science

Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.

Quantitative management

Application to management of quantitative techniques, such as statistics and computer simulations; Management science, operations management

Management science

Stresses the use of rational science- based techniques and mathematical models to improve decision making and strategic planning.

Operations management

Focuses on managing the production and delivery of an organization's products or services more effectively; Work scheduling, production planning, facilities location and design.

Systems viewpoint

Regards the organization as a system of interrelated parts; collection of subsystems; part of the larger environment

Open system

Continually interacts with it's environment

Closed system

Has little interaction with it's environment.

Complexity Theory

Study of how order and pattern arise from very complicated, chaotic systems. Recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules.

Contingency Viewpoint

Manager's approach should vary according to the individual and the environmental situation; most practical because it addresses problems on a case by case basis.

Evidence Based Management

Translating principles based on best evidence into organizational practice, bringing rationality to the decision making process; Pfeffer and Sutton

Quality

Total Ability of a product or service to meet customer needs

Quality Control

Strategy for minimizing errors by managing each stage of production.

Quality Assurance

Focuses on the performance of workers, urging employees to strive for "zero defects".

Total Quality Management

Comprehensive approach- led by top management and supported throughout the organization dedicated to continuous quality improvement, training, and customer satisfaction; Deming, Juran

Learning Organization

Organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge.

Triple bottom line

Representing people, planet and profit; measures an organization's social, environmental and financial performance

Social Audit

Systematic assessment of company's performance in implementing socially responsible programs; often based on predefined goals

Stakeholders

People whose interests are affected by an organization's activities; Internal and external

Internal stakeholders

Consist of employees, owners and board of directors

Owners

Consist of 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.

External stakeholders

People or groups in the organization's external environment that are affected by it; task, general environment

Customers

Those who pay to use an organization's good or services

Competitors

People or organizations that compete for customers or services

Supplier

Person or organization that provides raw materials, services, equipment, labor or energy to other organizations.

Distributor

Person or organization that helps another organization sell its good and services to customers.

Strategic allies

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

Clawbacks

Rescinding the tax breaks when firms don't deliver promised jobs.

Crowfunding

Raising money for a project or venture by obtaining many small amounts of money from many people "the crowd".

Government regulators

Regulatory agencies that establish ground rules under which organizations may operate.

Special interest groups

Groups whose members try to influence specific issues.

Economic forces

Consist of the general economic conditions and trends- unemployment, inflation, interest rates, economic growth- that may affect an organization's performance.

Technological forces

New developments in methods for transforming resources into goods and services.

Sociocultural forces

Influences and trends originating in a country's, a society's or a culture's human relationships and values that may affect an 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.

Ethical dilemma

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

Ethics

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.

Utilitarian

Guided by what will result in the greatest good for the greatest number of people

Individual

Guided by what will result in the individual's best long term interest, which ultimately are in everyone's self- interests.

Moral- rights

Respect for the fundamental rights of human beings.

Justice

Respect for impartial standards of fairness and equity.

Whistle- blower

Someone who reports organizational misconduct to the public, such as health and safety matters, waste, corruption or overcharging of customers.

Social reponsibility

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

Making charitable donations to benefit humankind.

Corporate governance

System of governing a company so that the interests of corporate owners and other stakeholders are protected.

Globalization

Trend of the world economy toward becoming a more interdependent system

Global village

"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.

E-commerce

Buying and selling of products and services through computer networks.

Global economy

Increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.