ADM 1300

Management:

• People done by people

Business:

• An organization (group of people) with a goal to earn profit by selling manufactured goods or services 

Not-for-profit organization:

• Provides goods and services to benefit others

• Does not have a goal of making profit from these activities 

• Use most revenue for services and have tax restrictions on generating profits 

• Ie. hospitals, charities etc

For-profit organizations:

• Operate to earn profits for owners and/or shareholders

Factors of production:

• Resources used by firms to create goods and services

  • Natural resources

  • Capital

    • All businesses need this - could be through profits, loans or issuing shares

  • Human resources (labour)

    • This and skill levels impact production costs and product quality 

  • Entrepreneurs 

    • Drive innovation and start new businesses 

  • Information resources

 Market economies:

• Economic basis on supply and demand

• Political basis is democratic and supports capitalism - free-market economy

• Buyers and sellers have freedom of choice 

Command economies:

• Communism - where people in government own and operate all industries

• Socialism - government ownership of key industries/major institutions with private ownership in non-critical sectors 

Market mechanisms:

• Markets are mechanisms for exchanging goods and services

  • Ie. stock market, housing market

• Supply and demand determine prices and availability 

• Freedom of choice allows buyers and sellers to transact based on preferences or needs 

Input market:

• Is where the firms buy resources from households that supply the resources

  • Firms may buy - skilled labour, business

Output market:

• Is where the firms supply goods and services in response to households demand for certain goods and services

  • Ie. ford employee pricing (incentives)

Capitalism:

• Encourages entrepreneurship and the private ownership of the factors of production

• Ie. Steve Jobs and Elon Musk 

Privatization:

• The conversion of a government firm into a privately owned company

  • Ie. Air Canada

Nationalization:

• The conversion of private firms into government-owned firms

Deregulation:

• The reduction of laws and government intervention 

  • To encourage entrepreneurship 

Interaction between business and government:

• Customer:

  • Government buys tons of different products and services to benefit Canadian citizens 

• Competitor:

  • Through crown corporations 

  • Eg. Canada Post, Export Development Canada (EDC), etc

• Regulator:

  • Regulating business activities to protect consumers, competition, or to achieve social and environmental objectives 

  • Eg. CRA

• Tax agent:

  • Taxes are levied to provide revenue to fund the many government programs and services provided

• Provider of incentives and financial assistance:

  • Through incentive programs to encourage private sector involvement to stimulate economic development

• Provider of essential services:

  • By building infrastructure, providing postal services, healthcare, education, etc

Management process:

• Done by people

• Process of planning, organizing, leading, and controlling an organization and its resources

• Systematic loop/cycle 

Management process - considerations:

• Activities are not independent of one another - interrelated

• Difference between management:

  • Efficiency - doing things right 

  • Effectiveness - doing things right to achieve the goals of the organization

Pillars of management:

• Planning process:

  • Organizations should define their strategy and long term objectives

    •  Setting the company’s direction 

  • Setting operational plans using KPI’s to measure success

    • Key performance indicator

    • How do we achieve this or is it actually working?

  • Ie. Tesla - become world leader in vehicle manufacturing 

• Organizing:

  • What resources are needed - variety of different skills are required

    • People

    • Money

    • Raw materials

    • Inventory 

  • Ie. building luxury yacht - need welders, metalworkers, project managers, inventory 

• Leading:

  • Motivating staff to work towards objectives/plans 

    • Ie. Shift supervisor encouraging their team, CEO inspiring entire organization 

    • Leadership ensures everyone is moving in the same direction 

• Controlling:

  • Ensuring you’re actually on the right track through:

    • Establishing standards - industry benchmarks/internal data

    • Measuring performance - comparing actual results to the standards

    • Does measured performance match standards?

    • Yes - continue current activities

    • No - go in and reflect

      • Is it significant (material)?

Types of management roles:

• Different people whiting an organization 

  • Depends on size and purpose of organizations 

• Top Management

  • Ie. CFO (finance managers)

  • Skills - critical thinking, human relations, technical (biggest to smallest - bar chart)*

• Middle management

  • Skills - human relations, technical/critical thinking*

• First line management 

  • Skills - technical/human relations, critical thinking*

Areas of management:

• Depends on size of organization 

• Human resource managers

  • Manage the hiring and firing 

  • Manage the training 

• Operations managers

  • Depending on size of organizations will have different areas of focus

  • Could be everything

  • Can be directly related to the management of products/services provided 

• Information managers

  • Responsible for organization's IT requirements

  • Ie. cyber security, AI etc. 

• Marketing managers

  • Look after development, pricing, promotion

  • Distribution of organizations products/services 

• Finance managers

  • Oversee day-to-day financial operations

  • Prepare financial reports 

  • Also an operational unit 

Management roles and skills:

• Technical knowledge

• Human relations (people)

• Critical thinking
  Time management

• Decision-making skills 

Business environment:

• Includes all external factors affecting a company’s operations

• Key components:

  • Economic

  • Technological

  • Political-legal

  • Socio-cultural 

External events:

• Have an impact on owners and managers

• Ie. COVID-19, USA tariffs 

External environment:

• Everything outside an organization that might affect its operations

  • Ie. current health of the economy in general (inflation and interest rates)

  • Ie. Current political environment (stable vs disruptive)

  • Ie. Changes in consumer preferences - as tech changes 

• Global - economy 

Organizational boundary:

• Separates the organization from its external environment

  • The business - convenience stores, designer stores (ie. in toronto malls) 

  • How does a business differ itself from the external environment

Multiple organizational environments:

• Affects the performance of almost every business - incl:

  • Economic conditions

  • Tech changes/advances (AI)

  • Political and legal issues

  • Social issues

  • Global business environment

  • Ethical issues 

Economic environment:

• Conditions of the system, in which an organization operates 

• Impacted by:

  • Rates of inflation that influence change in interest rates 

    • Increases prices

    • Balance that companies have to figure out

    • Reduction in supply chain 

  • Employment levels and opportunities

  • Global events

    • Ie. trade wars 

Business cycle:

• Reflects growth or contraction pattern of the economy over time (months/years)

• Peak:

  • Interest rates low

  • Many job opportunities 

  • Hiring not firing 

• Recession:

  • Problems starting to arise in economy

    • For consumers and businesses 

    • Ie. unemployment rate is high 

    • Ie. companies laying off staff

  • Economy shrinks for 2 consecutive 

• Trough

• Recovery 

• Depression 

Aggregate output:

• Main measure of economic growth

• Total economy quantity of goods and services produced by a country’s economy during a given period

Standard of living:

• Average quanitity/quality of goods/services that a country’s citizens can purchase with their currency 

• Ie. Standard of living in Canada is quite high compared to lesser developed Asian or African countries 

• Ie. standard of living in Ottawa is higher than places in Nunavut or up north communities 

Productivity:

• Measure of growth that compares how much a system produces with the resources needed to produce it

Gross national product (GNP):

• Value of all goods and services produced by a national economy within a given period of time 

  • Regardless of production location 

  • Eg. Bombardier - luxury jet (only line of business) 

    • In Quebec but also factory in Kansas City

    • All added to GNP in Canada - even though foreign operations

Gross domestic product (GDP):

• Total value of goods and services produced with a given period by economy through domestic factors of production 

  • Preferred method of calculating national income and output 

• Real GDP is the GDP adjusted for changes in currency value relative to another country’s currency and price changes

Purchasing power parity (PPP):

• The exchange rate between currencies of two countries should be equal to the ratio of the countries’ price levels of a standard commodity basket 

Balance of trade:

• Economic value of all the products that a country exports minus the economic value of its imported products

Trade deficit:

• Negatively affects economic growth

• Money that flows out of the country can’t be used to invest in productive companies (either at home or abroad)

National debt:

• Amount of money the Canadian government owes to its creditors

  • Creditors - those investors who bought Canadian government bonds

• More that the government borrows, the less money available for private borrowing and investment that increase productivity 

Economic stability:

• Should be key goal of any economic system

• Amount of money available in an economic system and the quantity of goods and services produced, grow at the same rate

Factors that impact economic stability:

• Inflation

  • Causes an increase in interest rates

  • Makes products and services more expensive

• Deflation

  • Leads to “falling prices” 

  • Happens when the amount of money put into the economy lags behind in actual output

  • People are not spending their money

•  Consumer price index (CPI)

  • Measures changes in the cost of a “basket” of goods and services that a typical family often buys 

• Unemployment

  • Level of joblessness among people actively seeking work

  • Fractional - out of work temporarily while looking for another job 

  • Seasonal - ie. migrant workers 

  • Cyclical - downturn in the business cycle (recession - increase in unemployment)

  • Structural - lack the necessary skills in the economy 

Subsidiary:

• Company that is owned by another corporation 

Fiscal policies:

• Involves collection (tax dollars) and spending of government revenues (tax dollars)

  • Hopefully on useful projects that benefit all Canadians and don’t harm businesses 

Monetary policies:

• Sole mechanism of Bank of Canada

  • Aim of price stability 

    • Business can plan longer terms or encourage expansion and increase production

• Focus on controlling the size of country’s money supply

  • Through changes in interest rates 

Technological environment:

• Integral part of everyday life

• Includes all the ways firms create value of their customers through:

  • Human knowledge

  • Work processes

  • Physical equipment (computers)

  • Electronics and telecommunications

  • Business process systems

  • Artificial intelligence 

Technological innovation:

• Includes (R&D) which provides new ideas for products, services, and processes

Basic (pure) R&D:

• Improves knowledge in an area without a primary focus on whether any discoveries might be profitable

Applied R&D:

• Focuses on how an innovation can be used in making a product/service profitable 

Political-legal environment:

• Reflects the relationship between business and government

• In Canada - defines what organizations can and can’t do 

• Important consideration to attract foreign investment and new businesses 

Sociocultural environment:

• Relates to the customs, values, attitudes, and demographic characteristics of the society in which any company operates

• Influences customer preferences for goods and services and what standards of business conducts are acceptable:

  • Customer preferences are influenced by cultural norms 

    • Ie. Chinese EV’s 

  • Many businesses have multiple stakeholders

    • Employees

    • Shareholders

    • Consumers

    • Unions

    • Creditors

    • Government 

  • Entitled to fair accounting so they can make informed personal and business decisions

  • Corporate social responsibility (CSR) - approach to meeting these responsibilities 

Emerging issues in the business environment:

• Outsourcing:

  • Strategy of paying suppliers and distributors to compete certain business processes

  • Ie. call centres, manufacturers (outsourcing - ie. Nike)

• Social media:

  • Used to influence consumers by “influencers”

  • Used by companies to promote their products 

• Business process management:

  • Moving away from organizing around departments to organizing around process-oriented team structures

  • Decision making “should” be faster and more customer focused 

  • Getting products to customers more rapidly 

    • Ie. Amazon

• Changing consumer demands:

  • Requires businesses to try to differ themselves and products 

    • Trend of higher-quality products and product life cycles

    • Ie. Apple Iphones 

• Competitive strategy:

  • All companies have to maintain progressive strategies to maintain market share and gain new customers

  • Ie. SWOT analysis 

Redrawing corporate businesses:

• Acquisitions:

  • When one firm simply buys another firm

  • Can be competitor or a firm that could add value to the buying firm

• Mergers:

  • When the two firms combines to gain a competitive advantage over their competition 

  • Ie. Kraft and Heinz

• Divestitures:

  • When a company decides to sell part of its existing business operation to another company

  • May focus on their core business 

  • May try to generate revenue for the firm

• Spinoffs:

  • When management decides that it might be more profitable to one or more of its businesses into separate, independent companies

• Employee-owned operations:

  • Unique structures where all the employees own the company

    • Instead of just a few people/shareholders 

• Strategic alliance:

  • When two or more separate companies “join” together for specific projects:

    •  For R&D, manufacturing, or marketing of a product 

    • AKA. joint venture 

Globalization:

• Increasing integration of world economies and cultures 

• Creates single and interdependent world economy 

Counter-trends:

• Brexit

• Covid-19 pandemic

• Geopolitical conflicts

  • Ukrainian war

  • Gaza-Israel 

• Technological changes - altered daily/business life 

  • AI

  • Remote work

Country classifications:

• The UN classifieds countries by per capita income:

  • High

  • Upper-middle

  • Lower-middle

  • Low income 

• Trading alliances are region-focused 

BRICS:

• Trading partnership (10-15 years old)

• Growing in importance - result of excessive U.S. tariffs

  • Especially on Brazil and India

    • Slowly moving away from industry partnerships with USA (closer to China now)

• Brazil, Russia, India, China, South Africa 

International trade:

• Exchanging goods and services and currencies across borders 

Absolute advantage:

• When a country produces a good more efficiently than others

Comparative advantage:

• When a country produces a good at a lower opportunity cost than others

National competitive advantage:

• Factor conditions

• Demand conditions 

• Supporting industries

• Strategies, structures and rivalries

• Combo of these conditions encourages:

  • Innovation 

  • Companies are more likely to engage in international business 

Factor conditions:

• Factors of production

  • Labour, capital, entrepreneurs, natural resources, information

Demand conditions:

• Reflects a large domestic consumer base that promotes strong demand for new products/services

  • Ie. compare Toronto/Vancouver to Nunavut 

Supporting industries:

• Strong local and regional suppliers and industrial customers

Strategies, structures and rivalries:

• Companies and industries that stress:

  • Cost reduction

  • High quality

  • High productivity

  • New innovations 

International firm:

• Conducts large portions of their business abroad but remains a domestic firm with international operations

Multinational firm:

• Maintains operations in multiple countries but manages from their home country

  • Ie. Ikea 

Internal sales/manufacturing:

• Managers making more of an investment by committing to sell products in foreign countries 

  • Or to have them made in foreign factories

• No physical presence of company’s employees outside the company’s home country

Licensing and franchising:

• Organization can give another organization the right to use its brand name, tech, product specifications in return for a lump=sum payment or fee 

• Usually based on sales through licensing or franchising 

Licencising:

• Primarily used by manufacturing organizations 

Franchising:

• Used by service organizations 

Strategic alliances:

• Partnerships between an organization and a foreign company 

  • Both share resources and knowledge in developing new products or building production facilities

Joint ventures:

• Specific type of strategic alliance

• Partners agree to form a separate, independent organization for some business purpose

Foreign subsidiary (foreign direct investment):

• Managers can make a direct investment in a foreign country 

• Involves greatest commitment of resources and greatest risk 

• Investment by a firm in business operations in another country 

Balance of trade:

• Exports minus imports

• Surplus - more exports 

• Deficit - more imports 

Balance of payments:

• A country will use this to summarize its annual economic transactions with other nations 

Exchange rate:

• The value of one currency for the purpose of conversion to another 

Quota:

• Restricts the total amount of a certain product that can be imported into a country

  • Indirectly raises the prices of what is imported by reducing their supply relative to domestically produced products

Embargo:

• Where a government restricts all exporting or imprinting of a product

Tariff:

• Tax charged on imported products which raises the prices of imports to consumers and businesses

Subsidy:

• Government support given to a domestic business to help it compete with foreign firms

  • Can be direct payment, low interest rate loans etc

Protectionism:

• Practice of protecting domestic business at the expense of free-market competition 

4 important global trade mechanisms:

• WTO:

  • Functions as the only global organizations dealing with the rules of trade among nations

  • 164 member nations

  • Many critics say its ineffective 

• IMF:

  • Organization of 190 countries, working to foster:

    • Global monetary cooperation

    • Secure financial stability

    • Facilities international trade

    • Promote high employment 

    • Sustainable economic growth 

• World bank group:

  • Made up of five constituent institutions

    • International bank for reconstructions and development

    • International development  association

    • International finance corp

    • Multilateral investment guarantee agency

    • International centre for settlement of investment disputes  

• Organization for economic co-operation and development (OECD)

  • Mission is to help 37 member countries achieve sustainable economic growth and employment 

  • Trying to raise standard of living in member countries while maintaining financial stability 

Barriers to international trade:

• social/cultural environments:

  • Values

  • Norms

  • Consumer preferences

  • Culture

• Economic environment:

  • Exchange rates

  • Inflation

  • Tax policies 

• Legal/political environment: 

  • Political stability

  • Legal systems

  • Protectionism influence trade 

• Financial barriers:

  • Quotes

  • Tariffs

  • Subsidies

• Protectionism:

  • Local content laws protect domestic industries

  • Cartels control supply/pricing

  • Dumping is illegal underpricing abroad 

Cartel:

• An association of producers that controls supply and prices 

Independent agent:

• Foreign organization that represents the interests of exporters 

Dumping:

• Selling goods abroad at lower prices than in the home market 

Small business:

• Locally owned

  • Ie. family business/restaurant, dry cleaners, convenience stores 

• Defined by # of employees

  • Fewer than 100 for manufacturing

  • Fewer than 50 for services 

• Employ at least half of Canada’s private-sector workforce 

• Account for 80% of employment in these sectors:

  • Agriculture

  • Construction

  • Accommodation and food services

  • Other services (except public admin)

Business register:

• Tracks businesses 

Labour force survey:

• Tracks people 

Service industries examples:

• Plumbers

• Window cleaners 

• Doctors (ie. having their own practice)

New venture:

• Businesses operation for less than one year

• It sells goods and services to others

• Main source of job creation 

  • As well as introduction of new products and services in the market

• Women account for approx half of all new ventures motivated by:

  • Gain control over their schedule

  • Saw a market opportunity and decided to pursue it 

  • Frustrated with “glass ceiling” at big companies 

Entrepreneur/entrepreneurship:

• Someone identifying a new opportunity in the market and accessing the resource to capitalize it 

• Requires persistence, belief in ideas, luck and risk 

Entrepreneurial process:

• Influenced by social, cultural, economic, political and technological factors 

• Key elements:

  • Entrepreneur

  • Opportunity

  • Required resources 

• Original ideas may come from work experiences, hobbies, or changes in fiscal policy

• Success depends on finding a market need, securing resources, and adding value for consumers 

Bootstrapping:

• Doing more with less (at least at the beginning)

  • Also the acquisition of other types or resources:

    • Skilled people

    • Necessary space

    • Equipment

    • Material needs

Financial resources:

• Two main types - debt, equity 

• Obtained through:

  • Banks

  • Angel investors - may lend money in form of private equity with contract (ie. seat and meeting) 

  • Venture capitalists

• Equity can also be obtained by going “public” (in stock market - pension funds etc)

  • Also through government agencies

    • Ie. BDC (business development corporation) or CEBA (canadian emergency business account)

Intrapreneur:

• Process of creating and maintaining innovation and flexibility within a large organization 

Building the right team:

• Not necessarily a solo process (entrepreneurship)

  • Stakeholders can and may be needed to provide different resources to the venture

  • Depends on - size, scope and skills required

Entrepreneur-opportunity fit:

• Do they want to actually do it or can they?

Opportunity resources fit:

• Can the necessary resources be awarded?

• Is the idea even worth pursuing?

Business plan:

• Describes the idea

• Explains its opportunity 

• Outlines marketing, operations, financials 

• Describes the team (who are we)

• Formal, well-structured plan

• What’s the product or service

  • To a private investor or bank - why do you want the money?

• Have you done any marketing

  • Tested product out 

• Plan for rolling out the product

  • What would you do with the money? 

Common pathways to business ownership:

• Can be started in 3 ways:

  • From scratch (as a new venture)

  • Buy an existing business/taking over a family business

  • Buying a franchise (McDonalds, Tims, DQ etc)

Market demand:

• Consumers have to see the value of a new product or service may provide now and for years to come 

Managerial competence:

• Knowledge of “how” to run a business 

Managerial incompetency:

• No idea of “how” to run a business 

Forms of business ownership:

• Proprietorship:

  • One owner

  • Not separate from that of its owner

  • Unlimited legal liability 

• Partnership:

  • Two or more owners

  • Not separate from that its owners

  • Unlimited legal liability 

• Corporation:

  • Many wonders and shareholders

  • Separate legal entity

  • Owners’ liability limited to their investment 

• Cooperative

  • Operated by a group of people who use its products/services

  • Earnings are distributed based on the use of cooperative rather than on their level of investment 

Advantages of partnerships:

• Partners are taxed as individuals 

• Ability to grow by adding talent and money

• Have an easier time borrowing funds (than sole)

• Fewer legal requirements - easier to organize 

Disadvantages of partnerships:

• Unlimited liability 

• If a partner pulls out/dies partnership dissolves legally

• Partner disagreements

• Difficulty transferring ownership 

Debt financing:

• A company borrows money from a commercial bank, trust company, credit union or government agency 

Success and failure factors:

• Success - dedication, market demand, effective management, resources, sometimes luck

• Failure - poor management, lack of resources, weak demand, bad luck 

Sales forecast:

• Estimate of how much of a product/service will be purchased by prospective customers over a specific period 

Incubators:

• Provide new businesses with support to help nurture them into a successful future

• Support could include:

  • Consulting services

  • Legal advice

  • Accounting services

  • Business contacts

  • Clerical service

  • Office space 

Human resource management:

• Set of organizational activities

• Involves attracting, developing and maintaining an effective workforce

HRM activities:

• Hiring 

• Training

• Compensation

• Performance evaluation

• Handling 

HRM process:

• Job analysis

• Recruitment

• Selection

• Orientation

• Training

• Ongoing performance management 

Job analysis:

• Systematic analysis of jobs within an organization

Job descriptions:

• List the duties of the job, working conditions, equipment required 

Job specifications:

• List the skills, abilities, and other credentials needed for a specific job

Recruiting:

• Process of attracting qualified people for available positions 

Validating prospective candidates:

• Through the initial application

• Initial interview

• Testing (sometimes)

• Reference checks

• Second interview (maybe)

• Offer 

Orientation:

• Process of introducing new employees to the company 

  • Policies, programs, co-workers etc

Strategic importance of HRM:

• Increased due to legal complexities, recognition of the value for improving productivity and an awareness of the costs of poor HRM 

Human capital:

• The value of people 

• Reflects an organization's investment in attracting, retaining, and motivating an effective workforce 

Human resource planning:

• The starting point

Types of training programs:

• On-the-job training through internal courses, work rotations

• Off-the-job training through external courses or through work simulations

• Management development

• Networking

• Mentoring

Management development:

• Designed to enhance conceptual, analytical and problem solving skills 

• Goal of position the employee for advancement 

Mentoring:

• Pairing an experienced employee with a younger employee to pass along advice and knowledge 

Evaluating employee performance:

• Through performance appraisals 

• Not done very well by most people 

Employee total compensation:

• Base salary

• Performance incentives

• Benefits

• Vacation time

• Annual bonuses 

Employment equity:

• Protect people from unfair/inappropriate discrimination in the workplace 

Comparable worth:

• Legal concept that aims at paying equal wages for jobs that are comparable value to the employer

• Objective - reduce gap between wages paid to men and women 

Legal context of HRM:

• Sexual harassment

• Workplaces romances

• Health and safety

• Retirement (agism) 

Challenges in the evolving workplace:

• Managing workforce diversity

  • Range of people's attitudes, values, beliefs and behaviours

  • Differ because of gender, race, age, ethnicity, physical ability etc 

• Organizational culture

  • System of shared meaning and beliefs held by organizational members that determines how they act towards each other and outsiders

  • Implications:

    • Culture is perception, shared and descriptive term 

Knowledge workers:

• Computer and physical scientists

• Engineers

• Game developers

• Software designers

• Level of education and specialized training is generally higher than in other occupations 

Contingent workers:

• Someone who works for an organization on a part-time/contract

• Migrant or seasonal workers

Union: 

• Group of employees working together to achieve shared job-related goals

  • I.e higher pay, fair working hours, better working conditions, greater benefits

Labour relations:

• Overall process of detailing with people who are represented by a specific union

Collective bargaining:

• Process by which unions and company management negotiate the terms and conditions of employment for union members 

• Ongoing process that involves the drafting and admin of the terms of a labour contract 

Approaches of collective bargaining:

• Conciliation

  • Neutral, third party advisor tries to help the two sides resolve the issues that are separating them 

    • Can’t impose a settlement 

• Mediation

  • Third party mediator advises the two sides about specific steps that they could take to search a settlement

• Arbitration

  • Legally binding dispute resolution by a third part 

• Voluntary arbitration 

  • Disputing parties agree to submit the dispute to outside judgement

• Compulsory arbitrations

  • Legally required the settlement and is used to settle disputes between government and public employees 

Unionism today:

• Percentage of workers who are unionized varies across different sectors of the economy

  • I.e professors at uOttawa 

Canada labour code:

• Legislation that applied to the labour practices of firms operating under the authority of the federal government 

4 sections of Canada labour code:

• Fair employment practices

  • Prohibits an employer from refuting employment based on person’s race/religion

• Standard hours, wages, and holidays

  • Deals with max hours of work per week

  • Equal wages for the same work

  • Holidays

  • Parental leave

• Safety of employees 

  • Requires safety features and techniques be implemented to ensure the safety of workers

• Industrial relations

  • Related to collective bargaining 

Management tactics:

• Management has the option of “locking out” workers from the workplace if there is a dead end

• Or can hire temporary/permamant replacements

Sympathy strikes:

• Occur when one union strikes in support of another union

Wildcat strike:

• Not authorized by the union and deprive strikers their status as employees 

  • Protection of labour laws 

360-degree feedback:

• Performance evaluation method gathering input from all workplace levels

Defined benefit plan:

• Pension with guaranteed benefit at retirement

Defined contribution plan:

• Pension dependent on contributions and investment performance

Bona fide occupation requirement:

• Legitimate job qualification necessary for a role 

Employee behaviour:

• Actions by people that impact (directly and indirectly) an organization's effectiveness

Performance behaviours:

• Directly involved in performing a job 

Organizational citizenship:

• When employees voluntarily go beyond job requirements 

  • Going that “extra mile”

Counterproductive behaviours:

• Actions that hurt organizational performance 

  • Ie. turnover, absenteeism 

Individual differences:

• Physical, physiological or emotional attributes

Personality:

• Set of psychological traits distinguishing one person from another 

Big 5 traits:

• Agreeableness

  • Do you get along with others?

• Conscientiousness

  • Are you focused or unorganized?

• Emotional stability

  • Do you have a positive or negative outlook? (glass half full or half empty)

• Extroversion

  • Are you comfortable with establishing relationships? 

• Openness to new experiences

Emotional intelligence:

• Extent to which people possess social skills:

  • Self-awareness 

  • Can manage their emotions 

  • Motivate themselves 

  • Express empathy for others 

Other personality traits:

• Locus of control

• Self-efficacy

• Authoritarianism

• Machiavellianism

• Self-esteem

• Risk propensity 

Locus of control:

• Extent to which people believe that their behaviour has a real effect on what happens to them

  • Internally or externally focused 

Self-efficacy:

• A person’s belief about their capabilities to do certain things 

Authoritarianism:

• The extent to which a person believes that power and status differences are appropriate within social systems

Machiavellianism:

• Refers to the behavior that is designed to gain power and control

Self-esteem:

• Extent to which a person believes that they are a worthwhile and deserving individual

Risk propensity:

• Degree to which  person is willing to take changes and make risky decisions

  • Ie. entrepreneurs 

Workplace attitudes components:

• Cognition (knowledge)

• Affect (feelings)

• Intention (person’s behaviours)

Cognitive dissonance:

• Inconsistency between attitudes and behaviours 

• Job satisfaction leads to higher moral

• Low satisfaction reduces engagement 

Job satisfaction:

• Reflects how people view their jobs

  • Morale is positive or negative 

Organizational commitment:

• Reflects alignment with a company’s mission and values

Psychological contracts:

• Mutual and informal expectations between employee and employer 

Person-job fit:

• Alignment between individual’s traits and job demands 

Intrinsic motivation:

• Internal drive

• Doing work because it’s fun and meaningful 

Extrinsic motivation:

• External rewards/recognition 

• Receiving positive feedback from colleagues/boss 

Classical theory:

• Motivation is primarily financial

Hawthorne effect:

• Positive human relations boost employee motivation 

Theory X: 

• People are lazy - need control 

Theory Y:

• People are self-motivated and responsible 

Maslow’s hierarchy of needs:

• Framework of human needs

  • Physiological

  • Safety

  • Belonging

  • Esteem

  • Self-actualization 

Two-factor theory:

• Job satisfaction (motivators)

• Dissatisfaction (hygiene factors)

• Have difference causes

Motivation factors:

• Recognition

• Responsibility

• Advancement

• Achievement 

Hygiene factors:

• Working conditions

• Quality of people in management roles

• Interpersonal relations

• Pay and job security 

Acquired needs theory:

• People are driven by achievement, affiliation or power

• Of 3 needs, one typically dominates a given person’s need structure 

Achievement - needs theory:

• People have a strong desire to accomplish a  goal/task as effectively as possible

• People tend to take a personal responsibility for getting things done 

Affiliation - needs theory:

• People want reassurance and approval from others

• Genuinely concerted with others’  feelings (empathy)

Need for power - needs theory:

• People need to control their environment (financial, material, information) and human resources (machiavellianism) 

  • Information is power 

Expectancy theory:

• Motivation depends on the perceived likelihood of reward

Equity theory:

• Motivation is influenced by perceptions of fairness 

Reinforcement/behaviour modification:

• Define specific behaviours people in management roles want others to exhibit 

• “Shape” employee’s behaviour by using reinforcement

  • Applying positive or negative consequences to motivate employees to act accordingly 

  • Positive reinforcement, punishment, omission and/or negative reinforcement

• People generally prefer positive reinforcement - contributes to good employer-employee relationships 

Regression to the mean:

• Change in performance will be toward the overall average level of performance 

Goal-setting theory:

• SMART goals

  • Specific

  • Measurable

  • Achievable 

  • Results-oriented

  • Time 

• Increases motivation

Participative management:

• (empowerment) give employees more decision-making power

• Gives employees more control and responsibility so that they feel they are a real part of the company’s success 

• Viewed as critical issue in building a motivated and successful work environment 

Team management:

• Uses cross-functional teams for projects/problem-solving 

Job enrichment:

• Adding one of more motivating factors to a job 

• Increases variety and responsibility in roles

Job enrichment design:

• Combining tasks - to increase job variety 

• Forming natural workgroups - can help employees get an overview of their jobs and see importance in total structure

• Establishing client relationships - increases the variability of a job and provides greater feelings of control over their jobs 

Management by objectives:

• Collaborative goal setting and evaluation

Flextime:

• Flexible work schedules and telecommuting support work-life balance

Compressed workweeks:

• Where employees work fewer days in the week, but longer hours on those days

Telecommuting:

• Allows people to do some or all of their work away from their office

  • Ie. from home via Zoom

Workshare programs:

• Allows 2+ people to share on full-time job position

  • Allows for part-time employees 

Leadership:

• Influencing and motivating people to work towards common goals 

• Roles often overlap with management roles

Power types:

• Legitimate

  • Through a formal organizational hierarchy 

• Reward

  • Power to gie/withhold rewards (ie. bonuses)

• Coercive

  • Foreign another person to comply by means of physical, emotional or psychological threat 

• Expert 

  • Comes from information/knowledge 

• Referent

  • Based on identification, imitation, loyalty or charisma 

3 approaches:

• Trait (innate qualities)

• Behavioural (leadership style)

  • Task oriented

  • Employee oriented 

• Situational (adapting to context)

Leadership styles:

• Autocratic - person issues orders and expects obedience 

• Democratic - person asks for input from other before making decisions but still makes the final decision 

• Free-rein - person serves as an advisor to others 

Modern leadership:

• Transformational (change-driven)

• Transactional (routine activities)

• Charismatic (based on person’s charisma)

• Leaders as coaches (less hierarchical organizations - except government)

• Gender (how do women/men lead differently)

• Cross-cultural

• Strategic

• Ethical

• Virtual (ie. during pandemic)