Untitled Flashcards Set

Chapter 1

Historical Perspective

• Management problems are ancient

• Industrial revolution: management emerges as a form of discipline

• Industrial revolution was transition from good by hand to using machines 

• The second industrial revolution

  • Period began in the late 19th century and brought about many technological advancements

  • ex. gas, electricity, oil, internal combustion engine

• Third Industrial Revolution

  • Began in 1950s

  • Considered as the move from mechanical and analog electronic technology to digital 

  • Inventions of the transistor in 1947 is considered key driver

    • Enabled the miniaturization and advancement of electronics

    • Led to development of modernized computers and the digital age 

• Fourth Industrial Revolution

  • Began around 2011

  • Current era of digitalization, automation, and connectivity that's transforming global economy 

  • Characterized by the merging of the physical, digital, and biological worlds

What's driving the Fourth Industrial Revolution?

• Artificial intelligence(AI): has the potential to change how people live and work 

• Internet of Things(IoT): the IoT connects physical objects to the internet 

• Robotics: robots can perform tasks that humans can't, like removing pollutants from the environment

• Data analytics: data and analytics are transforming how assets are maintained 

Classical Period 1950s-1950s

• Systematic management

  • Efficient operation and control achieved by: 

    • Definition of suited and responsibilities 

    • Standardization 

    • Improved information and communication

    • Control systems facilitating coordination 

• Scientific management

  • Dissatisfaction with systematic approach: failed to deliver efficiency 

  • Fredrick Taylor 

    • Time and Motion studies: task divided into basic movements there different movements timed to find most efficient 

    • Goal: identify “the best way”

    • Stressed importance of proper hiring and training 

    • Advocated Piece Rate system: compensation method where workers are paid based in the number of items they produce 

• Administrative management

  • Emphasized the perspective of senior managers

  • Management is a profession and can be taught

  • Fayol: Five Functions of Management

1. Planning 

2. Organizing 

3. Commanding 

4. Coordination

5. Controlling 

• Human relations

  • Understanding how psychological and social processes influence performance

  • Hawthorne study: Mayo & Roethlisberger

    • Investigating work conditions and productivity

    • Hawthorne effect: informal work group drove productivity 

    • Maslow: hierarchy of needs

• Bureaucracy 

  • Weber: Jobs should be standardized

  • An organization must be hierarchical

  • Should have well-defined rules to govern it and members

  • Difference between power and authority

  • Authority resides in the position, not the individual 

  • Bureaucracy = efficiency 

Quantitative Management 

• Emphasizes the application of formal mathematical models to decisions

• Includes techniques such as linear programming

Organizational Behavior

• The study of how people interact in an organization and how those interaction affect the organizations performance

  • McGregor: Theory X and Theory Y

  • Argyris: greater autonomy

  • Likert: participant management 

Systems Theory

• An organization as a system of interrelated parts that work together to achieve a goal

• Criticized because it ignored external environment and stressed one aspect of organization or employees 

Contingency PerspectiveContingency theory is a management approach that recognized that the best way to manage a company depends on the situation and a variety of factors

• Major contingencies include:

  • External environment

  • Internal strength and weakness 

  • Values, skills, attitudes, and goals of managers and workers 

  • Tasks, resources, and technology

4 Functions of Management

• Planning

• Organizing

• Leading 

• Controlling 

KPI

• Key performance indicator

• a metric that measures a business's progress toward its goals

Chapter 2

The Management Environment 

External Environment

• Factors, forces, situations and events outside of the organization that affect its performance 

• Components of External Environment

  • political/legal

  • Demographics

  • Economic

  • Sociocultural

  • Technological

  • Global

Laws and Regulations

• Both constraints and opportunities 

• Regulators: specific government organizations in the task environment 

• Can investigate and bring suit

• regulation/government can operate as a barrier to entry

• Deregulation 

Demographic

• Measures of various characteristics of the people comprising groups or other social units

• Characteristics can include age, gender, income, education, ethnicity, etc

• Trends for managers to consider

  • Aging workforce

  • Immigration

  • WomenDiversity

  • Income levels 

  • Age demographics

    • Baby boomers born between 1946 and 1964

    • Gen X born between 1965 and 1977

    • Gen Y born between 1978 and 1996

    • Gen Z born between 1995 and 2010

  The Economy 

  • Local and global 

  • Economic factors can be hard to predict

  • Important consideration

    • Interest & inflation

    • Exchange rates

    • Unemployment

    • Energy & Health costs

    • Housing costs 

  Sociocultural Issues

  • Trends n how people think & behave

  • How firms respond to social trends can dramatically impact their reputation 

  • Trends for managers to consider

    • Green movement

    • 2 income families

      • Childcare

      • Delay having children 

      • New approaches to benefits

    • Changing populations

  Technology 

  • Technology innovation creates new products, industries, and markets

  • Can change how organizations operate and employees work 

  • Communications & management impact (MIS, B2B, JIT, ERP)

  • Ex. internet communication ad distribution 

  
  

  Global

  • Today's organizations are increasing in global scope

    • Employees

    • Customers

    • Suppliers

    • Manufacturing competitors 

  • The landscape is constantly changing driving uncertainty 

  • Managers need to be aware of these forces continually refine their strategies

  
  

  External Environmental Analysis

  Environmental uncertainty involves overall lack of sufficient information needed to understand or predict the future

  • Uncertainty arises from complexity & dynamism

  • Complexity: decentralization of decision making

    • Empowerment: process of sharing power with employees enhancing their confidence in their ability to perform and their belief in the value of their contribution

  • Dynamism: adopt flexible structure

    • Bureaucracy less favored: problem of exceptions 

    • Organic structures: interaction & mutual adjustment Culture & Internal Environment 

      • Culture is the set of assumptions about the organization and its goals and practices that members share

      • Strong culture: everyone understands and believed in the goals, priorities and practices

      • Weak culture: people hold different values, confusion about goal exists, lack of building principles

      
      

      Diagnosing Culture

      • Corporate mission statements and official goals are starting point

      • Business practices can be observed

      • Symbols, rites, and ceremonies

      • Stories people tell

      
      

      Types of Organizational Culture

      • Group: internally oriented and flexible with values and norms based on affiliates

      • Hierarchy: internal orientation focusing on control and stability employing procedures and bureaucracy

      • Rational: externally oriented and focused on control (planning and efficiency based)

      • Adhocracy: externally oriented and flexible emphasizing change and innovation 

      
      

      Managing Culture

      • Culture influences behavior

      • Important tool both enabling (and limiting) successful change

      • Executives must provide a grand vision while also managing details

      • Communication imperative

      • Choices and rewards must match espoused values

      • Culture itself can be difficult to change 

      
      
      
      

      Strong Cultures

      • Key values are deploy held and widely shares

        • Cand substitute for formal rules and regulation

        • Can create predictability, orderliness, and consistency 

      
      

      Chapter 3 

      
      

      Globalization and Its Impact

      • Global village: a boundaryless world where goods and services are produced and marketed worldwide

      • Your product, your competition, and even your workforce can be found anywhere at any time

      • Managers need to adapt to this changed environment and foster an understanding of different cultures, systems, and techniques

      
      

      What does it Mean to Be “Global”

      • Exchanging goods and services with consumers in other countries 

      • Using managerial and employee talent from other countries 

      
      

      Types of Global Organizations

      • MNC(multinational corporation)

        • Multidomestic corporation: management and other decisions are decentralized to the local country

        • Transnational organization: country of origin becomes irrelevant; increases efficiency 

        • Global corporation: management and decisions are centralized in the home country 

      
      

      Managing in a Global Organization

      • a person with a parochial attitude cannot succeed in today's world

        • Parochialism: close minded 

      • Need to recognize that countries have different values, morals, customs, political and economic systems, and law

      • Affect how business is managed 

      
      

      Globe: Dimensions of Cultural DIfferences 

      • Assertiveness

      • Future orientation

      • Gender differentiation 

      • Uncertainty avoidance

      • Power distance

      • Individualism vs collectivism

      • In-group collectivism

      • Performance orientation 

      • Humane orientation

      
      

      Social Responsibility

      • Corporate social responsibility: business intention, beyond legal and economic obligations, to do the right things and act in ways that are good for society

      • Social obligations: activities a business engages in to meet certain economic and legal responsibilities 

      • Social responsiveness: business firm that engages in social action in response to a popular social need

      
      

      What is Sustainability?

      • as a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies

      
      

      Ethical Behavior

      • Ethics: set of rules or principles that defines right and wrong conduct 

      
      

      What determines ethical behavior?

      • Whether a manager or employee acts ethically or unethically depends on several factors:

        • Morality

        • Values

        • Personality

        • Experience

        • Organizations culture

        • Issue being faced

      
      

      Encouraging Ethical Behavior

      • Three ways in which managers can encourage ethical behavior include:

      1. Code of ethics

      2. Ethical leadership

      3. Ethics training

      
      

      Being an Ethical Leader

      • Be a good role model by being ethical and honest

      • Tell the truth always

      • Don't hide or manipulate information

      • Be willing to admit your failures

      • Share your personal values by regularly communicating them to employees 

      • Stress the organizations important shares values

      • Use a reward system to hold everyone accountable to the values 

      Chapter 4 

      Decision Making 

      
      

      8 Step Process 

      1. Identifying a decision problem

      2. Identify Decision Criteria 

      • Relevant factors

      3. Weighting Criteria 

      • Most important criterion assigned a weight of 10

      • Other weights assigned against this standard 

      4.  Develop Alternatives 

      5. Analyzing Alternatives

      6. Selecting the best alternative

      7. Implementing Decision

      • Decision implementation: putting decision into action 

      8. Evaluate the Decision 

      • Was the problem solved 

      
      

      Common Decision-Making Errors and Biases

      • Managers may use “rules of thumb” or judgmental shortcuts called heuristics to simplify their decision making 

      
      

      3 Common Decisions Business Managers Make

      1. Rational decision making:

      • Fully objective and logical 

      • The problem to be addressed would be clear-cut

      • Decision maker would be anticipate all possible alternatives and consequences 

      • choices are consistent 

      2. Bounded Rationality Decision Making

      • Managers make decisions rationally 

      • But are bounded by their ability to process information

      • Can’t possibly analyze all information on all alternatives

      • Satisfice rather than maximize 

      • A more realistic approach

      • “Solutions that are good enough”

      3. Intuitive Decision Making 

      • Almost have of m avengers rely on intuition more often than formal analysis to make decisions about their companies 

      
      

      Types of Problems

      • Structured Problem:

        • Straight forwards, familiar, easily defines

        • ex. Customer wants to return an online purchase 

      • Unstructured Problem:

        • New or unusual for which information is ambiguous or incomplete

        • ex. Deciding to invest in an unproven technology 

      
      

      Types of Decisions

      • Programmed:

        • Repetitive decisions that can be handled using a routine approach

      • Nonprogrammed:

        • A unique and non recurring decision that requires a custom solution 
          How do we make group decisions?

          • Decision are often made by groups representing people who will be most affected 

            • Committees 

            • Task forces review panels work teams 

          
          

          Advantages of Group Decision Making 

          • Diversity of experiences/perspectives 

          • More complete information 

          • More alternatives generated

          • Increased acceptance of solutions 

          • Increased legitimacy 

          
          

          Disadvantages of Group Decision Making

          • Time-consuming 

          • Minority domination 

          • Ambiguous responsibility 

          • Pressure to conform

          • Risk of group think

          
          

          When are groups Most effective?

          • Individual 

            • Faster decision making

            • More efficient use of hours

          • Group

            • More accurate decisions

            • More creative

            • More heterogeneous representation

            • Greater acceptance of final decision 

          
          

          Contemporary Issues

          • Big Data Analytics:

            • Vast amounts of quantifiable information that can be analyzed by highly sophisticated data processing linear programming, break-even analysis , queuing  theory, game theory, etc 

            • Changing the way managers make decisions 

          
          

          Chapter 5

          Planning and Goal Setting

          
          

          What is Planning?

          • Planning: the primary management function

          • Planning is:

            • Deciding the organization objectives or goals 

            • Getting the job done by establishing an overall strategy for achieving those goals

            • Developing a comprehensive hierarchy of plans to integrate and coordinate activities 

          
          

          Formal Planning and Organizational Performance

          • Does it pay to plan?

            • Higher profits 

            • Higher return on assets 

            • Improved quality of planning 

            • Appropriate implementation 

          
          

          What is STrategic Management?

          • Strategic management: what managers do to develop an organization's strategies 

          • Strategies:

            • Plans for how the organization will do what it is in business to do

            • How it will compete successfully

            • How it will attract customers to chive its goals

          
          

          The Importance of Strategic Management 

          • It has a positive impact on organizational performance

          • It prepared managers to cope with changing situations

          • It guides managers to examine relevant factors in planning future action

          
          

          Steps in the Strategic Management Process

          1. Identify Mission, Goals, and Strategies

          2. External Analysis

          • Threats and opportunities

            • Competitions 

• Components of environment

1. Internal Analysis

• Strenghts and weaknesses

  • Resources 

  • Capabilities

  • Core competencies

2. Formulating Strategies

• Corporate 

• Business

• functional

3. Implement STrategies

4. Evaluate Results 

• How effective have strategies been?

• What adjustments are necessary?

Growth Strategy 

• An organization expands the number of the markets served or products offered

  • Concentration

  • Vertical integration 

  • Horizontal integration 

  • Diversification 

Stability and Renewal Strategies

• Stability strategy 

  • Organization continues to do what its doing

• Renewal strategy

  • Organization addresses declining performance

    • Retrenchment

    • Turnaround

Competitive Strategy

• Strategy for how an organization will compete in its business

Competitive Advantage 

• What sets an organization apart; its distinctive edge that comes from its:

  • Core competencies and resources

Functional Strategy

• Those strategies used by an organizations various functional departments to support the competitive strategy 

  • Research and development

  • Manufacturing 

  • Marketing 

  • Human resources 

  • Finance 

Strategic Weapons 

• Customer service

• Employee skills and loyalty 

• Quality 

• Social media

• Big data/ digital tools

Setting Goals and Developing Plans

• Planning involves two important aspects:

1. Goals→ which are objectives

2. Plans→ which are how to achieve the desired outcomes or targets 

• Planning = goals + plan

Steps in Goal Setting

1. Review the organization's mission and employees key job tasks

2. Evaluate available resources

3. Determine the goals individually or with input from others 

4. Make sure goals are well written and communicate to who needs to know 

5. Build in feedback mechanisms to assess goal progress 

6. Link rewards to goal attainment 

Management by Objectives

• Goals specifically 

• Participative decision making 

• Explicit time period

• Performance feedback

Well Written Goals 

• Written in terms of outcome rather than actions

• Measurable and quantifiable 

• Clear as to a time frame

• Challenging yet attainable 

• Written down 

• Communication to all necessary organizational membersChapter 6 

  Change and Innovation

  
  

  What is Organizational CHange?

  • Changes in Structure

  • Changes in Technology

  • Changes on People

  
  

  External Forces Create a Need to Change 

  • Marketplace

  • Government laws and regulations

  • Technology 

  • Labor markets

  • Economic changes  

  
  

  Internal Forces Create a Need to CHange

  • Strategy

  • Composition of workforce

  • Employee attitudes 

  
  

  Initiating Change 

  • Organizational change needs a catalyst

  • Change agent:

    • People who act as catalyst ad assume responsibility for managing the change 

  
  

  Two Different Approaches

  1. Calm Waters change→ take a business not super dynamic where nothing is changing and created a change 

  2. White water CHange→ leading company in change in an industry change 

  
  

  Implementing Change

  • Organization development(OD): efforts that assist organization members with a planned change by focusing on their attitudes and values 

  
  

  Organization Development Efforts

  1. Survey feedback

  2. Process consultation

  3. Team-building

  4. Intergroup development 

  
  

  Resistance to CHange

  • Uncertainty

  • Habit

  • Concern over personal loss

  • belief change is not in organizations best interest 

  
  

  Causes of Stress

  1. Tasks demands

  2. Role demands

     1. Role conflicts

     2. Role overload

     3. Role ambiguity 

  3. Interpersonal Demands

  4. Organization structure

  5. Organizational leadership

  
  

  Creativity and Innovation 

  • Creativity: the ability to produce novel and useful uefa

  • Innovation: process of taking a creative idea and turning it into useful product, service, or method of operation 

    • Innovation s the key to continued success

    • We innovate roday to secure the future 

  
  

  Innovation Process

  • Perception 

  • Incubation 

  • Inspiration 

  • Innovation 

  
  

  Managing Disruptive Innovation

  • Disruptive innovation: 

    • innovation in products, services, or processes that radically change an industry’s rules of the game 

  • Sustaining innovation:

    • Innovation that represent small and incremental changes in established product rather than dramatic breakthroughs 

  
  

  Why is Disruptive Innovation important?

  • Skunk Works: small group within a large organization, given a high degree of autonomy and unhampered by corporate bureaucracy, whose mission is to develop a project primarily for the purpose of radical innovations 

  
  

  Chapter 7

  Managing Entrepreneurial Ventures 

  
  

  What is Entrepreneurship?

  • the process of starting and managing a business, often with the goal of making a profit

  
  

  Common Misconceptions About Entrepreneurship

  • Successful entrepreneurship needs only a great idea 

  • Entrepreneurship is easy 

  • Entrwprensureship is a risky gamble

  • Entrepreneurship is found only in small-sized businesses 

  
  

  Why is Entrepreneurship Important?

  • Innovation 

  • Number of new startups

  • Job creations

  • Global entrepreneurship 

  
  

  Entrepreneurship Process 

  • Exploiting the entrepreneurial context 

  • Identifying opportunities and possible competitive advantages

  • Starting the venture

  • Managing the venture 

  
  

  Researching Feasibility 

  • Feasibility study:

    • Analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility 

  • Feasibility studies consist of careful investigation of five primary areas:

  1. technical → can you build it?

  2. Market→ are you addressing a real need? How many customers are there? 

  3. Financial→ can you make money?

  4. Competitive→ how do you compare with competitive alternatives 

  5. Team→ do they have skills and resources to make it happen 

  
  

  What Planning Do Entrepreneurs Do?

  • Business Plan:

    • Written document that summarizes a business opportunity and articulates how the opportunity will be exploited 

    • Planning increases the odds of success 

  • Organizational vision:

• Broad comprehensive picture of what an entrepreneur wants his or her organization to become