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 Perspective

• Contingency 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

  • Women

  • Diversity

  • 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

Setting Goals and Developing Plans

Steps in Goal Setting

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