Intro to Management

Drivers of Business Value -Profitability and Growth

"Done Well" -Assigning responsibility to others, designing jobs, creating organizational structure, Implementing human resource practices to hire, recruit, train, develop, compensate, motivate, and provide for the well-being of the employees

Managing Business Performance -Process management, Measurement, and Business improvement

Key managerial skills -Leadership, Decision-making

Working with individuals and groups -Communication and Conflict resolution and negotiation

Importance of Management -Applying management theory to management situations

Management Limitations -The challenges of conducting research on management on management practices

Limitations of a single course in management -It is just the start of a life-long journey to learn about management

Specialization of Labor -Individual workers that specialize in performing the sub-tasks that are involved in the creation of a product

Systematic Management -Engineers and economists performed the major higher-level managerial tasks in factories

Scientific Management -Frederick Taylor's approach using clocks to record the time required to perform the various tasks in the workplace and then developing alternative ways to perform those tasks in order to reduce the overall time required.

The Gilbreths -Time and motion studies to promote efficiency

Henry Gannt -Creation of visual charts to describe the elapsed time required to perform tasks

Lean Manufacturing -Focuses on removing waste from production

Administrative Management -Henri Fayol and Max Weber were among the first to put forth the broad theories of how to manage organizations more efficiently.

Henri Fayol -14 Principles of Management

Bounded Rationality -Herbert Simon's idea that managers are able to collect and process all the information necessary to make perfect decisions

The "Right Work" Elements -Vision, Mission, Goals, Plans

Vision -Describes an organization's purpose for existence. Focus is not on making a profit or satisfying shareholders expectations but providing services that serve and important need in society

Mission -Describes the products and services an organization will provide, identifies the constituents it intends to serve, and provides the reasons why those constituents should support the organization

Goals -Identify the outcomes that an organization is trying to achieve. Achievement of the goals should be an indicator that the organization is successful

"For-Profit" Organizations Goals -Financial Goals + Operational Goals

Return on Capital Employed (ROCE) -Level of Profit earned relative to the capital invested to generate that profit

Days Receivables Outstanding -Accounts receivable balance divided by the daily average sales

Days of inventory on hand -Average Balance of inventory divided by the average cost of sales

Inventory Turnover -Cost of Sales divided by the average inventory balance

Service Levels -Delivering the correct product or service within a given time

Customer Satisfaction Levels -Based on survey/feedback data

Production Levels -Number of units produced to standard within a given time period

Error or Defect Levels -Number or percent of non-conforming units or errors

Strategy -The actions managers to take to achieve the organization's goals. How the organization intends to outperforms its rivals

Differentiation Strategy -Distinguishing products/services from competitors in a way that makes offerings more attractive to customers than rival products/services

Low-Cost Strategy -Developing the least expensive ways, vs. competitors to product and deliver products/services

Combination Strategy -Selects a few differentiation features for its product/services but is able to provide them with a lower cost structure than rivals

Focus Strategy -Targets a market segment that the business can serve more effectively than rivals (geographic, demographic, or specialized product/service segment of the market)

Strategy Development Process- 1.Develop/Review/Update the Vision, Mission, and Goals of the Organization 2. Conduct an external analysis 3. Conduct an internal analysis 4. Evaluate and select the best strategy 5. Implement said strategy

Porter's Five Forces- Analysis tool that looks at factors influencing profitability -Bargaining Power of Buyers; Bargaining Power of Suppliers -Threat of New Entrants -Threat of Substitute products/service -Industry Life Cycle Analysis -Macro Environment Analysis

Industry Life Cycle Analysis -Tool that looks at typical stages of Evolution of Industries

Embryonic -new product/service begins the formation of a new industry

Growth- When new product/service begins to be broadly accepted by customers

Shakeout -Growth begins to flatten and even start to decline with several industry participants opting to exit or merge.

Mature -Growth begins to slow and new entrants become fewer

Decline -Growth is negative and only few remain in the industry

Macro Environment Analysis -Tool evaluates factors that broadly affects all industries

Assesses them as opportunity, threat, both or neither

Internal Analysis Tools -Quality, Efficiency, Innovation, Customer Responsiveness, Distinctive Competencies

Implementing Strategy - Organization Structure -Monitoring and Control -Culture

Plans -Outlines the specific actions to be taken, resources required, and timeline for completion of various initiatives

Strategic Plans -Identifies Core Strategy + Steps and key initiatives to undertake

Business Plans -Identifies key goals, the steps, key initiatives, required resources and timeline to undertake

Marketing Plans -Identifies marketing related goals, key customers and customer segments, products/services, steps, key initiatives, resources and timeline

Functional Plans -Identifies goals for each function in the organization + the usual

Financial Plans -Identifies anticipated financial resource requirements within the organization for a given time period

Research and Development Plans -Identifies various initiatives for growth as well as maintaining competitiveness; Includes the usual

Technology Plans -Identifies key tech resources to support products/services and function activities + the usual

Human Resource Plans -Identifies key talent required to support various strategies and plans; A lot of programs related to employees

National Labor Relations Act of 1935 -Gave Workers in private industries the legal right to operate, engage in collective bargaining, and to strike

Fair Labor Standards Act of 1938 -Established the 40-hour work week; Requirement to pay overtime at 1 1/2 the regular rate for any hours worked beyond 40

Social Security Law of 1935 -Provided retirement income; Age 65 or older

Equal Pay Act of 1963 -Illegal to have different pay rates for same job based on gender

Civil Rights Act of 1964 -Illegal to discriminate in employment decisions based on race, color, religion or national origin

Occupational Safety and Health Act of 1970 -Passed to help protect safety and health of workers

Commercial Code -Set of laws that regulates and facilitates commercial transactions

Uniform Commercial Code -Purpose is to provide standard statutes nationwide for governance of commercial activities

Environmental Protection Laws and Regulations -Legal responsibility of business to protect the environment (Clean Air Act, Clean Water Act)

Environmental Protection Agency (EPA) -Primary federal government responsible for enforcing these statutes, etc.

Industry Specific Regulations -Publicly Trade Companies, Oil and Gas Industry, Financial Services and Professional Baseball

Internal Unethical Behavior -Level of Moral Development of the individual, Willingness to accept and obey authority, Ability to control their behavior

External Unethical Behavior - Culture of the organization, Consequences of unethical behavior, Ease of opportunity to act unethically

Utilitarian Approach -Choose the option that produces the greatest good for the greatest number of people

Individualism Approach -Choose the option that promotes the individual's best long-term interests, do unto others in order to have them do unto you

Moral Rights Approach -Choose the option that does not violate any fundamental moral rights

Distributive Type (Justice) -Choose based on standards of equity, fairness, and impartiality

Procedural Type (Justice) -Choose based on fair administration of pre-established rules

Compensatory Type (Justice) -Compensate persons suffering damage due to the decision chosen based on the costs of those damages to the injured person

Impartial Opinion -Discuss Situation with a third party for an unbiased view

Full Disclosure -Assume that whatever decision is made will be openly presented to the public and to assess how the majority of the informed public are likely to judge the appropriateness of the actions

Core Values -Underlying norms of behavior and actions that are expected of all employees in an organization

Corporate Social Responsibility (CSR) -Actions of an organization to recognize and proactively respond to the needs and expectations of all of its stakeholders

Profitability -The ability of the business to generate long-term positive net cash flows

Growth -The rate of increase in net cash flows in a business year over year

Market Penetration Strategy -Encouraging current customers to buy more of the business's current products and services

Upscale -Buy more expensive versions of the products/services they were buying before

Share-building -Sales and promotion programs to attract customers away from competitors

Market Development Strategy -Often requires educating potential customers of the existence and benefits of your products/services through various forms of advertising, promotional, or informational programs targeted to reach current non-buyers

Innovation -Executing an idea which addresses a specific challenge and creates value for both the developer and the user

Machine Learning (ML) -Application of AI that provides systems the ability to automatically learn and improve from experience without being explicitly programmed

Ecosystems -Multiple organizations working collaboratively to enable rapid development of new technologies, products, and services

Entrepreneurship -Acting to bring forth novel ideas and concepts that create value

Globalization -The trend towards a more integrated and interdependent global economy

Tarrifs -A tax on imported goods and services often intended to protect jobs in the home country

Culture -The norms, beliefs, attitudes, morals, and values that are commonly shared by a large number of the residents of a country

Global Standard -All products/services are unchanged in each market

Local customization -Products/services are modified to meet local market differences in preferences in order to increase demand and acceptance

Combination Strategy -Products/services are customized for some countries where the differences are significant, and the potential demand is large enough to warrant the customization

Export -Either ship products or sell them directly from another country to the foreign country

License -Sell the rights to a third party to make and/or sell the products and services

Franchise -Authorize a business partner to use the trademarks/patents and brands and provide business guidance in how to operate the business successfully in another country or countries

Joint Venture -Set up a formal arrangement with a business partner for conducting business within a specific country

Strategic Alliance -Establish a less formal arrangement for two distinct businesses to cooperate in pursuing a business opportunity in a specific country or countries

Do-It-Yourself -Implemented by either the business to establishing a new business entity from inception in the target country or acquiring majority ownership

Daniel Wren -Management found its footing based off the concepts of Stages, Schools of Thoughts, Institutions, and Biographies

Financial Goals -Return on Capital Employed (ROCE), Revenue earned, profit, and net cash flow amount

Operation Goals -Market share, numbers of returning and new customers, service levels, customer satisfaction levels, productions levels, and error levels

Organization Structure -Designing jobs that align with the strategy, getting that talent, and delivering the results

Monitoring and Control -Reviews progress in implementing strategies, progress on goals, and giving feedback for any corrective action needed to keep going.

Artificial Intelligence (AI) -The theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages

Intrapreneurship -A high-risk endeavor and requires senior leaders to under-stand and accept these risks in order for the business to successfully pursue these new ventures with their significant growth potential

Hawthorne Effect -The change in the behavior of subjects due to their awareness of being studied

Micro -Focused on behavioral research on topics including group dynamics, decision-making, leadership, and motivation

Abraham Maslow- The best managers are ones that are "psychologically healthy" and had reached their point of self-actualization

Distinctive Competencies -Allow the organization to differentiate products from competitors to create superior value for customers and to achieve cost leadership in the industry