MGMT 3510
MODULE 1:
Macro-level management
focuses on improving the performance of the organization as a whole
disciplines that inform include sociology, political science, and economics
strategic management, organizational change, and organizational design
more to do with managing the organization as a whole
Micro-level management
focuses on improving the performance of the employees within the organization
disciplines that inform the microlevel include psychology
resources management, job design, and interpersonal and group processes
more to do wit managing employees within the organization
Chapter 1 – What is Management?
management involves the coordination of people and resources to accomplish desire goals and objectives
Managerial functions: Controlling, Leading, Organizing, Planning
controlling: managers monitor and evaluate activities
leading: managers supervise and motivate people
organizing: managers coordinate activities and resources
planning: managers determine the course of action or their organization
For-profit organizations
organizations are in business to make money and be profitable
Nonprofit organizations
institutions are in business to serve the greater good
Management
includes all of the planning, organizing, controlling, and leading of people and resources to maximize organizational performance and achieve its goals and objectives
Organization
Chapter 2 – The History of Management
Administrative and bureaucratic perspective
focuses on the managers themselves
Contingency theories
Hawthorne effect
behavior changes that occur solely as a function of individual’s awareness of being observed by others
Human relations perspective
focused on the employees as humans - it approached the study of management from a human-oriented lens, recognizing that employees are fundamentally humans whose complex behavior and social relationships affects their work performance
Industrial revolution
During this time, changes in production, transportation, and communication fundamentally altered how and where work is done, sparking the need for business owners to understand how management techniques could improve their organizational performance.
Management science
uses analytics and complex statistics to improve decision making in organizations
Nepotism
Systems perspective
emphasizes that organizations exist in a broader system of inputs and outputs that must be considered
Theory X and Theory Y
theory X: presumes employees do not like to work and tend to avoid responsibility. They need to be actively managed.
theory Y: presumes employees have an innate desire to have autonomy and responsibility and can contribute to an organization through participative and self-directed behavior.
Total Quality Management
a management perspective that conceptualizes quality in from three points of view (quality planning, quality control, and quality improvement) and emphasizes commitment to quality at every stage of the production process, within every employee, and throughout the entire organizational system
MODULE 2:
Chapter 4 – The Organizational Environment
divided into the internal and external environment, encompassing all of the factors, forces, and groups that are both inside and outside the organization
Methods of monitoring the environment: benchmarking, boundary spanning, buffering, forecasting
forecasting: the process of trying to predict what will happen in the future
boundary spanning: involves scanning the environment to detect information organizations believe is important for their business AND the tactical release of internal information to external environment to promote positive view of organization
benchmarking: involves making ongoing comparisons between an organization and its competitors with regard to overall process and performance
buffering: absorbing uncertainty from the environment so the organization can perform its primary roles efficiently
Competitive advantage
Competitors
Diversity
Parts of the organizational environment: external environment, internal environment, general environment, task environment
internal environment: consists of the internal stakeholders all of whom drive the organization’s strategy, policies, and culture
external environment: can be divided into the task and general environment
task environment: consists of groups and situations that managers have to deal with on a daily basis, including customers, suppliers, competitors, etc
general environment: deals with market forces that are both dynamic and uncontrollable, including political, legal, ethical, economic, ect forces
Gig economy
Labor union
Stakeholder
individuals and entities that are impacted by and that impact the organization
Supply chain management
Task environment
consists of groups and situations that managers have to deal with on a daily basis
Chapter 10 – Innovation & Change
Creative destruction
the process by which new entrants come into industries and displace existing firms through new products, servies, and activities
First-mover advantages
gains to a firm entering a market before other competitors, including brand recognition and customer loyalty, access to superior locations
Intrapreneurs
employees with an organization who promote innovative activities
Organizational change
Organizational development
Process innovation
development and market introduction of a brand new or significantly improved method or technique
Product innovation
development and market introduction of a brand new or significantly improved good or service
Skunk works
small, independent laboratory or unit within an organization engaged in innovation
MODULE 3:
Chapter 8 – Strategic Thinking & Planning
Competitor intelligence
research on rivals to determine their likely behavior
Strategy
integrated pattern of decisions an organization makes to achieve its objective through resource allocation and actions in various markets - the pattern of decisions made to achieve goals
Chapter 9 – Strategic Management
Backward vertical integration
acquiring a supplier to improve efficiencies, reduce costs, and exert bargaining power
Competitive positioning
choice to compete based on differentiation or higher prices
Cost advantage (i.e., Cost leadership advantage)
ability to incur lower expenses than competitors
Differentiation advantage
ability to charge a price premium due to unique products or services
Exit costs
expenses incurred to leave an industry or facility
Five forces framework – Know the 5 components
focuses more deeply on the “T” in SWOT
1. competitive rivalry: the strength of competition in the industry
2. threat of new entry: the ease with which new competitors can enter the market and potentially drive down your pieces
3. threat of superposition: the extent to which different products and services can be used in place of your own
4. supplier power: the ability of suppliers to drive up the prices of your inputs and raw material
5. buyer power: the strength of your customers to drive down your prices
Forward vertical integration
acquiring a customer or other entity to control the distribution or supply of the company’s products
Monopoly
an industry with a single company operating within it
Oligopoly
a small number of firms with large market shares
Overcapacity
when firms in an industry produce more supply than is needed to meet demand
Product commoditization
loss of product differentiation when multiple firms have similar offerings
Product differentiation
unique product attributes that customers value
Strategic management – Know the 4 steps in the strategy process in order
how firms formulate, execute, and evaluate their decisions
1. analyze external environment (opportunities and threats)
2. analyze internal environment (strengths and weaknesses)
3. identify strategic alternatives
4. select and implement an appropriate strategy
Strategy formulation
development of strategies in an organization
Strategy implementation
execution of strategies in an organization
SWOT analysis – Know the 4 components
evaluation of a firm’s internal activities that represent its strengths (S) and weaknesses (W) and diagnosis of its external environment to identify opportunities (O) and threats (T)
Value capture
The profits a firm obtains by charging a price more than its costs for a product or service.
Value creation
the differences between a customer’s buyer value, or willingness to pay, and the firm’s cost in offering a product or service. The firm is bearing costs to produce something that a customer values even more.
MODULE 4:
Chapter 5 - Globalization
Culture
the values, orientations, and beliefs that affect individuals in a society and impact their world view - one of the most important variables for international managers to be aware of
Culture shock
feeling of anxiety and apprehension one experiences when not knowing how to behave or act in new surroundings
Ethnocentrism
tendency to judge another culture based on preconceptions found in one’s own culture
Expatriates
employees assigned to work in another country
Franchising
when companies provide foreign businesses with a complete package of materials and services to use in exchange for a fee
Globalization
the increased interaction and integration of economic, political, and socio-cultural systems across different geographic regions
Home country
country in which the parent organization is headquartered
Host country
countries in which an organization operates a facility or conduct other business activities
Individualism
tendency for people to look after themselves and their immediate family
Joint venture
business entity created by two or more parties, which share ownership and responsibility for the new entity
Multinational corporation
Multinational enterprise
Nongovernmental organization
Offshoring
sourcing work to organizations in other countries or basing part of a domestic company’s operations overseas - happens when businesses send in-house jobs overseas
Outsourcing
subcontracting with outside vendors to provide specific services, perform tasks, or handle a company’s operations, which were previously done in house - occurs when a company contracts a specific process to a third party, finding someone who specializes in whatever needs to be done
Parochialism
tendency to be narrow-minded on specific topics due to lack of interest in learning about them
PESTLE analysis
strategic framework used by organizations to assess the various factors that exist in a particular country
political factors
consist of government policy actions that impact the profitability of a firm
economic factors
refers to a country’s ability to meet all of its financial obligations
sociocultural factors
those based on values, attitudes, and beliefs that shape the behavior and preferences of a particular population
technological factors
anything that helps us turn inputs into outputs - the application of knowledge to improve systematic processes
legal factors
encompass the law and regulations that are put forth by the home country, host country, and the international community
environmental factors
important to evaluate ecological and geographic characteristics of a country where company wants to conduct business
Stereotype
Third country nationals
employee from a country other than the home country or host country