MGMT 3000 Exam 1

Management

Attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

Peter Ducker

* Father of modern business management'
* Revolutionized today’s theory of business
* Taught that successful leaders should put people and ethics first rather than focusing entirely on profits and rigid rules and work structures
* Management is about human beings

Organization

Social entity that is goal-directed and deliberately structured

Organizational Effectiveness

Degree to which an organization achieves a stated goal

Organizational Efficiency

Amount of resources used to achieve an organizational goal

High Performance

Attainment of organizational goals by using resources in an efficient and effective manner

Technical Skills

Ability to use methods/techniques to perform a task

Human Skills

Having knowledge about and being able to work with people

Conceptual Skills

Ability to do the mental work of shaping meaning of organizational policy or issues

Top-Level Management

Responsible for the entire organization

Middle-Level Management

Responsible for business units and major departments

Lower-Level Management

Responsible for production of goods and services

General Managers

Responsible for several departments that perform different functions

Functional Managers

Responsible for departments that perform a single task

Project Managers

Responsible for temporary work projects involving people from different functions and levels

Line Managers

Responsible for departments that perform a core function of the organization

Staff Managers

Responsible for departments that support the organization’s line departments with specialized advisory and support functions

Scientific Management

Improve efficiency and labor productivity through scientific methods

Frederick Winslow Taylor

Proposed that workers “could be retooled like machines”

* management decisions would be based on precise procedures based on study

Henry Gantt

Developed Gantt chart, a bar graph that measures planned and completed work

Frank and Lillian Gilbreth

Pioneered time and motion studies to promote efficiency

Max Weber

German theorist who introduced the concepts:

* manage organizations on impersonal, rational basis
* managers use power instead of personality to delegate
* although important productivity gains come from this approach, it has taken on a negative tone

Henri Fayol

Major contributor, listed 14 general principle of management:

* unity of command
* division of work
* unity of direction
* scalar chain

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Five Functions of Management (administrative principles)

* planning
* organizing
* commanding
* coordinating
* controlling

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Charles Clinton Spaulding

Another major contributor, outlines eight fundamental necessities, including:

* authority and responsibility
* division of labor
* adequate manpower
* cooperation and work

Empowerment

facilitating instead of controlling employees

Acceptance Theory of Authority

People can choose to follow management orders

Hawthorne Studies

* conducted from 1927-1932
* Hawthorne Effect
* we behave differently when we know we’re being watched

Theory X

* average human dislikes work and will avoid it
* likes being directed and wants security above all

Theory Y

average human does not dislike work

Organizational Development (OD)

Set of management techniques that uses behavioral sciences to improve an organization’s health and effectiveness

System

Set of interrelated parts that function as a whole to achieve a common purpose

Subsystems

Parts of a system that depend on one another

Synergy

The whole is greater than the sum of its parts

Big Data Analytics

Technologies, skills, and processes for searching and examining massive sets of data to uncover hidden patterns and correlations

Internet of Things (IoT)

“Smart” devices and chips that communicate to other devices

Radical Decentralization

Employees have authority to make key decisions about their work, eliminating much of hierarchical reporting

Employee Engagement

Emotional commitment the employee has to the organization and its goals

Artificial Intelligence (AI)

Techniques by which computer systems learn, communicate, and make decisions similar to or better than human beings can

Nudge Management

Applying behavioral science insights in organizational designs to guide people toward behaviors that support organizational goals and values

External Organizational Environment

All outside elements that could affect the organization

Task Environment

* Factors that affect organizations directly
* Sectors that conduct day-to-day transactions with the organization

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General Environment

Factors that affect organizations indirectly

Organizational Ecosystem

System formed by the interaction among a community of organizations in the environment

Customers

People and organizations that acquire goods or services from the organization

Competitors

Organizations in the same industry/type of business that provides goods or services to the same set of customers

Suppliers

People and organizations that provide the raw materials that the organization uses to produce its output

Supply Chain

Network of multiple businesses and individuals connected through flow of products/services

Labor Market

People in environment who can be hired to work for the organization

Strategic Issues

Events or forces either inside or outside an organization that are likely to alter its ability to achieve its objective

Boundary Spanning

Actions that link to and coordinate the organization with key elements in the external environment

Corporate Culture

Set of key values, beliefs, understandings, and norms shared by members of an organization

Toxic Culture

Exists when persistent negative sentiments and infighting cause stress, unhappiness, and lowered productivity among subgroups of employees

International Management

The management of business operations conducted in more than one country

Globalization

Extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries

Global Mind-Set

Ability of managers to appreciate and influence individuals, groups, and orgs. that possess different social, cultural, political, institutional, intellectual, and psychological characteristics

Cognitive Dimension

Knowing about the global environment and global business, mentally understanding how cultures differ, and having the ability to interpret complex global changes

Psychological Dimension

Emotional and effective aspect

* Includes a liking for diverse ways of thinking and acting, willingness to take risks, and the energ9y and self-confidence to deal with the unpredictable and uncertain

Social Dimension

Concerns the ability to behave in ways that build trusting relationships with people who are different from yourself

Multinational Corporation (MNC)

Receives more than 25% of its total sales revenues from operations outside parents’ home country

Ethnocentric Companies

Place emphasis on home countries

Polycentric Companies

Oriented toward markets of individual foreign host countries

Geocentric Companies

World-oriented and favor no specific country

Exporting

Strategy in which the corporation maintains its production facilities within their home nation and ships its products for sale in foreign countries

Global Outsourcing (Offshoring)

Engaging in the international division of labor so that work activities can be done in countries with cheapest sources of labor/supplies

Partnership

Partners with local company in a foreign market

Joint Venture

Company shares costs and risks with another firm, typically in host country, to develop new products, build a manufacturing facility, or set up a sales and distribution network

Political Risk

Risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country

Political Instability

Includes riots, revolutions, civil disorders, and frequent changes in government

Ethnocentrism

Natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values

Hofstede’s Value Dimensions

Dimensions of national value systems that influence organizational and employee-working relationships

GLOBE Project (Global Leadership and Organizational Behavior Effectiveness)

Nine dimensions that explain cultural differences

Power Distance

Level of acceptance of inequality in power among institutions, organizations, and people

Uncertainty Avoidance

Uncomfortable with unstructured, ambiguous, and unpredictable situations

Individualism

Value for a loosely knit social framework in which individuals are expected to take care of themselves

Collectivism

Preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests

Masculinity

Preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success

Femininity

Values relationships, cooperation, group decision-making, and quality of life

Long-Term Orientation

Greater concern for the future and highly values thrift and perseverance

Short-Term Orientation

More concerned with the past and present and places a high value on tradition and meeting social obligations

Assertiveness

Extent to which a society encourages toughness, assertiveness, and competitiveness

Future Orientation

Extent to which a society encourages planning for the future of short-term results

Gender Differentiation

Extent to which a society maximizes gender role differences

Performance Orientation

Extent to which a society places emphasis on performance and rewards people for improvement

Humane Orientation

Degree to which a society encourages and rewards people for being fair, altruistic, generous, and caring

Implicit Communication

People send and receive unspoken cues, such as tone of voice or body language, in addition to explicit spoken words when talking with others

High-Context Cultures

People are sensitive to circumstances surrounding social exchanges

Low-Context Cultures

People use communication primarily to exchange facts and information

Cultural Intelligence (CQ)

A person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses

Cognitive Component

A person’s observational skills and recognition of cues to understanding

Emotional Component

A person’s self-confidence and self-motivation

Physical Component

A person’s ability to shift his or her speech patterns/expressions and body language to match those in a different culture

Ethics

Code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

Codified Law

Values and standards written into legal systems and enforceable in the courts

Free Choice

Behavior not covered by law and for which an individual has complete freedom

Ethics (behavior)

Standards of conduct based on shared principles and values about moral conduct

Moral Agent

Individual who must make an ethical choice in an organization

Utilitarian Approach

Moral behavior produces the greatest good for the greatest number

Individualism Approach

Acts are considered moral if they promote the individual’s best long-term interests

Moral-Rights Approach

Humans have fundamental rights and liberties that cannot be taken away by an individual’s decision