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Comprehensive Study Notes: Chapters 1–4 and Global Management

Chapter 1: The Exceptional Manager

  • Definition of Management: coordinating and overseeing work activities to achieve organizational goals efficiently and effectively.
  • Four Functions of Management (4):
    • Planning – Setting goals and deciding how to achieve them
    • Organizing – Arranging tasks, people, and resources
    • Leading – Motivating and directing people
    • Controlling – Monitoring performance and making adjustments
  • Levels of Management:
    • Top Managers: Strategic decisions, overall direction
    • Middle Managers: Implement policies, coordinate departments
    • First-Line Managers: Direct daily tasks of non-managerial staff
    • Team Leaders: Facilitate team activities and performance
  • Skills of Managers:
    • Technical Skills – Job-specific knowledge
    • Human Skills – Ability to work well with others
    • Conceptual Skills – Strategic thinking and problem-solving
  • Roles of Managers (Mintzberg):
    • Interpersonal: Leader, liaison
    • Informational: Monitor, spokesperson
    • Decisional: Entrepreneur, negotiator
  • Types of Organizations:
    • For-Profit – Focused on making money
    • Nonprofit – Focused on serving clients
    • Mutual-Benefit – Focused on serving members (e.g., unions)
  • Knowledge Workers: Employees whose main contribution is information and expertise
  • Challenges Managers Face:
    1. Competitive advantage
    2. Technological advances
    3. Individual differences
    4. Globalization
    5. Ethical standards
    6. Sustainability
    7. Happiness and meaningfulness

Chapter 2: Management Theory

  • Classical View
    • Scientific Management – Taylor & Gilbreths; efficiency through motion studies
    • Administrative Management – Fayol (functions), Weber (bureaucracy)
  • Behavioral View
    • Early Behaviorism – Follett (cooperation), Mayo (Hawthorne effect)
    • Human Relations Movement – Maslow (hierarchy of needs), McGregor (Theory X/Y)
    • Behavioral Science Approach – Uses research to develop tools for managing people
  • Quantitative View
    • Operations Management – Efficiency in production and delivery
    • Evidence-Based Management – Decisions based on data and research
  • Systems View
    • Open System – Interacts with environment
    • Closed System – Isolated from environment
  • Contingency Approach
    • Management style depends on the situation—no one-size-fits-all
  • Quality Management View
    • Focus on continuous improvement, customer satisfaction, and employee involvement
  • Learning Organization
    • Constantly creates, shares, and adapts knowledge across the organization

Chapter 3: Ethics & Social Responsibility

  • Ethics
    • Standards of right and wrong that influence behavior
  • Stakeholders:
    • Internal: Employees, owners, board of directors
    • Task: Customers, suppliers, competitors, regulators
    • General: Economic, technological, sociocultural forces
  • Role of the Board of Directors:
    • Oversight: Ensures the organization is being run in the best interest of shareholders or stakeholders
    • Governance: Establishes policies, approves major decisions, and monitors executive performance
    • Hiring and Firing Executives: Selects the CEO and may remove them if necessary
    • Strategic Direction: Helps shape long-term goals and ensures alignment with mission and values
    • Accountability: Holds management accountable for ethical behavior, financial performance, and legal compliance
  • Common Issues Faced by Boards:
    • Conflicts of Interest: Board members may have personal or financial ties that interfere with objective decision-making
  • Common Ethical Issues:
    • Conflicts of interest, discrimination, misuse of resources
  • Four Ethical Decision-Making Approaches:
    1. Utilitarian – Greatest good for the greatest number
    2. Individual – Long-term self-interest
    3. Moral-Rights – Respect for fundamental rights
    4. Justice – Fairness and equity
  • Ethical Dilemma:
    • Conflict between competing values or choices
  • Corporate Social Responsibility (CSR): Going beyond profit to benefit society
  • Triple Bottom Line:
    • \text{Triple Bottom Line} = {\text{People},\ \text{Planet},\ \text{Profit}}
  • Sustainability
    • Meeting present needs without compromising future generations
  • Government Regulators
    • Ensure compliance with laws and ethical standards

Chapter 4: Global Management

  • Globalization
    • Interconnected economies and shrinking time and space
  • Why Expand Internationally
    • Access to resources, new markets, lower costs, avoid tariffs
  • How Companies Expand Internationally:
    • Outsourcing: Using outside suppliers
    • Importing/Exporting: Buying/selling across borders
    • Licensing/Franchising: Allowing use of brand or product
    • Joint Ventures: Partnership with foreign firm
    • Wholly Owned Subsidiary: Full ownership in another country
  • Three Influential Effects on Globalization:
    1. Global village
    2. Global economy
    3. Rise of megafirms and internet-based companies
  • Characteristics of a Successful International Manager:
    • Cultural awareness, adaptability, global mindset
  • Barriers to Free Trade:
    • Tariffs, Quotas, Embargoes
    • Overcome through trade agreements and diplomacy
  • Understanding Cultural Differences:
    • Low-context vs. High-context cultures
    • Hofstede’s Dimensions – Individualism, power distance, etc.
    • GLOBE Project – Nine dimensions of cultural differences
  • Organizations Promoting Globalization:
    • World Trade Organization (WTO)
    • World Bank
    • International Monetary Fund (IMF)
  • Trading Blocs:
    • USMCA, European Union (EU), BRICS