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Business Unit 1

ORGANIZATION: a group of people working together to achieve a common purpose

Are organizations Open or Closed systems?

What does it mean that ORGANIZATIONS are OPEN SYSTEMS:

  • interrelated parts that function together,
  • interact with the environment,
  • resource inputs turn into product outputs,
  • feedback tells the organization how to satisfy customers

What should people in organizations be viewed as Intellectual Capital

Why should PEOPLE within an ORGANIZATION be considered as INTELLECTUAL CAPITAL:

  1. people are the ultimate foundations of organizations
  2. knowledge workers are people whose minds are critical assets to employers and add intellectual capital

Intellectual capital: collective brainpower or shared knowledge of a workforce

Globalization: worldwide interdependence of resource flows, product markets & business competition that characterize the new economy

national boundaries of the world disappeared because of globalization

Workforce Diversity:

  • reflects differences concerning gender, age, race, ethnicity, religion, sexual orientation & bloodiness
  • challenges and offers opportunities for employers

The glass ceiling effect: an invisible barrier that prevents visible minorities from rising above a certain level

How are organizations changing/TRENDS in the NEW workplace:

TOTAL QUALITY MANAGEMENT: a commitment to continuous improvement, product quality, and customer satisfaction

LEVELS OF MANAGEMENT AND ROLES: top, middle, first line

  • top management: responsible for the performance of an organization as a whole or one of its larger parts (CEO)
  • middle managers: in charge of relatively large departments or divisions (deans, plant managers)
  • first line: project managers (coordinate complex projects with task deadlines) department heads(in charge of a small group of non-managerial workers)

FOUR FUNCTIONS OF MANAGEMENT: planning, controlling, leading, organizing

  • planning: setting performance objectives and deciding how to achieve them
  • controlling: measuring performance and taking action to ensure desired results
  • leading: inspiring people to work hard to achieve high performance
  • organizing: arranging tasks, people, and other resources to accomplish the work

HENRY MINTZBERG – Set of roles that managers perform: interpersonal, informational, decisional

  • Interpersonal: involve interactions with others inside to outside the workplace (figurehead, leader, liaison)
  • informational: involve the transfer of information (monitor, spokesperson)
  • decisional: using the information to make decisions to solve problems (entrepreneur, negotiator)

ROBERT KATZ – Essential skills of Management: technical, human, conceptual

  • technical: the ability to apply expertise and perform a special task with proficiency
  • human: the ability to cooperate with others
  • conceptual: the ability to think analytically and achieve integrative problem solving

Mintzberg’s set of 10 managerial roles: figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, negotiator

3 Branches of Classical Management: scientific, administrative, and beaurocratic

  • Scientific Management: Fredrick Taylor, The Gilbirths
  • Administrative Management: Mary Parker Follet, Henri Fayol
  • Beaurocratic management: Max Weber

How did Fredrick Taylor contribute to Scientific Management: rules of motion, proper working conditions, training/support, came up with ways to increase worker efficiency

The Gilbreths: created motion study to be efficient, taking out extra stuff

Motion Study: reducing a task to its basic motions

•Henri Fayol – Five Rules of Management: foresight, organization, command, coordination, control

  • foresight: complete plan for the future
  • organization: provide and mobilize resources
  • command: to lead workers
  • coordinate: fit diverse efforts together
  • control: make sure things happen accordingly

•Henri Fayol – 3 Key Principles of Management

•Mary Parker Follet: administrative, forward-thinking principles, inter-related factors, groups, and human cooperation

What are Bureaucratic organizations characterized by? Based on logic and order, legitimate authority

Behavioural Management Approach: Hawkthornes studies, Maslow’s theory, and McGregor’s x & y assumes that people are social and self-actualizing

Maslow’s Hierarchy of Human Needs: psychological deficiency a person feels compelled to satisfy before self-actualization

McGregor’s Theory X: managers/micromanagers do all the work, lack ambition, micromanager irresponsible, resist change

McGregor’s Theory Y: workers are willing to work, capable of self-control, willing to accept responsibility, imaginative, and creative, managers allow workers to figure stuff out

Management Science: mathematical techniques for management problems