MGMT

Chapter 1: Management Fundamentals

Management Functions

1. Planning: Setting objectives and determining a course of action to achieve those objectives.

   • Strategic planning (long-term goals).

   • Tactical planning (mid-term goals).

   • Operational planning (short-term goals).

2. Organizing: Arranging resources (human, financial, physical) to implement the plan.

   • Structuring the organization, defining roles and responsibilities.

3. Leading: Motivating and influencing people to achieve organizational goals.

   • Communication, leadership styles, and team dynamics.

4. Controlling: Monitoring performance and making adjustments as needed.

   • Includes setting performance standards, measuring actual performance, and taking corrective action.

Kinds of Managers and Responsibilities

• Top Managers: Oversee the entire organization (e.g., CEO, COO).

  • Responsibilities: Establish organizational goals, monitor overall performance.

• Middle Managers: Oversee specific departments or units (e.g., department heads).

  • Responsibilities: Implement policies and plans, supervise lower-level managers.

• First-Line Managers: Supervise employees directly involved in production (e.g., supervisors).

  • Responsibilities: Ensure day-to-day operations run smoothly, manage frontline employees.

Mintzberg’s Managerial Roles

1. Interpersonal: Figurehead, Leader, Liaison.

2. Informational: Monitor, Disseminator, Spokesperson.

3. Decisional: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator.

Management Skills

• Technical Skills: Knowledge and proficiency in a specific field (e.g., accounting, engineering).

• Human Skills: Ability to work with and understand people.

• Conceptual Skills: Ability to see the organization as a whole and understand how different parts are interconnected.

• Diagnostic Skills: Ability to identify problems and find solutions.

Chapter 2: Historical Foundations of Management

Scientific Management

• Focus on improving efficiency through time studies, task specialization, and standardization (e.g., Frederick Taylor, Henry Gantt).

Gantt Chart

• A scheduling tool used to represent the timing of tasks in a project, visualizing work over time.

Systems View of Organizations

• Organizations are seen as open systems that interact with their environment. Inputs (resources) are transformed into outputs (products/services).

Chapter 3: Organizational Environment and Culture

Punctuated Equilibrium Theory

• Organizations often experience long periods of stability punctuated by brief periods of significant change (similar to evolutionary biology).

Environmental Scanning

• The process of monitoring and interpreting external and internal factors to identify opportunities and threats.

Environmental Components

1. General Environment: Broad societal forces (economic, technological, political).

2. Task Environment: Specific factors directly affecting the organization (suppliers, customers, competitors).

Organization Culture and Levels of Organization Culture

1. Artifacts: Visible and tangible elements (e.g., dress code, office layout).

2. Espoused Values: Explicitly stated beliefs and values.

3. Basic Assumptions: Unconscious, taken-for-granted beliefs that guide behavior.

How to Change Organization Culture?

1. Leaders Role: Model new behaviors.

2. Communication: Reinforce cultural values.

3. Reward Systems: Align incentives with desired cultural norms.

4. Training: Provide training programs to build awareness and skills for cultural change.

Chapter 4: Ethics and Social Responsibility

Workplace Deviance

• Behavior that violates organizational norms and threatens its well-being (e.g., theft, sabotage, absenteeism).

Social Responsibility

• The obligation of organizations to act in ways that benefit society, not just shareholders.

Shareholder vs. Stakeholder Model

• Shareholder Model: Focuses on maximizing shareholder value.

• Stakeholder Model: Focuses on meeting the needs of all stakeholders (employees, customers, community, etc.).

Four Types of Social Responsibilities

1. Economic: Profitability and providing goods/services that society needs.

2. Legal: Complying with laws and regulations.

3. Ethical: Acting with fairness, transparency, and integrity.

4. Discretionary: Voluntary actions that go beyond legal and ethical requirements (e.g., charitable donations).

Four Strategies of Social Responsiveness

1. Reactive: Denying responsibility for social issues.

2. Defensive: Denying but admitting responsibility for some actions.

3. Accommodative: Accepting responsibility and trying to improve.

4. Proactive: Actively seeking opportunities to improve society.

Chapter 5: Planning and Decision Making

SMART Goals

• Specific, Measurable, Achievable, Relevant, Time-bound.

Types of Planning and Management Levels

1. Strategic Planning (Top Management): Long-term goals.

2. Tactical Planning (Middle Management): Short- to medium-term goals to implement strategies.

3. Operational Planning (First-Line Management): Day-to-day activities.

Group Decision Making

• Methods: Brainstorming, nominal group technique, Delphi technique, consensus.

• Advantages: Diverse ideas, shared responsibility.

• Disadvantages: Groupthink, time-consuming.

Chapter 6: Strategy and Competitive Advantage

Sustainable Competitive Advantage

• The ability to maintain an advantage over competitors for a long period (e.g., brand reputation, technological innovation).

Four Characteristics of Resources for Competitive Advantage

1. Valuable: Resources must create value.

2. Rare: Resources must be scarce.

3. Inimitable: Hard to copy or substitute.

4. Non-substitutable: No alternative resource can provide the same benefits.

SWOT Analysis

• Strengths, Weaknesses, Opportunities, Threats: A tool for evaluating internal and external factors.

Strategic Groups

• A set of firms in an industry that follow similar strategies (e.g., cost leaders, differentiation).

BCG Matrix

• Stars: High growth, high market share.

• Cash Cows: Low growth, high market share.

• Question Marks: High growth, low market share.

• Dogs: Low growth, low market share.

Porter’s Five Forces

1. Threat of New Entrants

2. Bargaining Power of Suppliers

3. Bargaining Power of Buyers

4. Threat of Substitute Products

5. Industry Rivalry

Positioning Strategies

• Cost leadership, differentiation, focus strategies.

Adaptive Strategies

• Defenders: Focus on efficiency and low-cost operations.

• Prospectors: Innovate and seek new opportunities.

• Analyzers: Balance between efficiency and innovation.

• Reactors: Respond to environmental changes without a clear strategy.

Chapter 7: Organizational Change

Technology Cycle

• The cycle of technological innovation from introduction to maturity and eventual decline.

Technological Substitution

• Replacing an old technology with a new one that is more effective or efficient.

Organizational Decline

• When an organization fails to adapt to changes and begins to lose effectiveness.

Managing Resistance to Change

1. Unfreezing: Prepare the organization for change by breaking down existing structures.

2. Change Intervention: Implement the new processes or strategies.

3. Refreezing: Solidify the change to ensure it becomes permanent.

Change Agent

• A person responsible for managing change and overcoming resistance within the organization.

Chapter 8: Global Management

Key Terms

1. Multinational Corporations (MNCs): Companies that operate in multiple countries.

2. Direct Foreign Investment (DFI): Investment by a company in foreign markets.

3. Trade Barriers: Restrictions such as tariffs, quotas, and regulations.

4. Non-tariff Barriers: Non-tax policies that restrict trade.

5. NAFTA: North American Free Trade Agreement (now USMCA).

6. WTO: World Trade Organization, regulates international trade.

7. Global Consistency: Standardizing operations across countries.

8. Local Adaptation: Modifying strategies to fit local cultural and market needs.

Hofstede’s Model of Cultural Differences

• Key dimensions of culture: Power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term vs. short-term orientation, indulgence vs. restraint.

Chapter 10: Teams and Teamwork

Key Terms

1. Cross-training: Training team members in multiple roles.

2. Self-managing teams: Teams that manage their own work and decision-making.

3. Cross-functional Teams: Teams with members from different functional areas.

4. Cohesiveness: The strength of the bonds between team members.

5. Norms: Unwritten rules that guide behavior within a group.

Stages of Team Development

1. Forming: Initial stage, members get to know each other.

2. Storming: Conflicts arise as team members assert their opinions.

3. Norming: Team develops shared norms and cooperation begins.

4. Performing: Team works effectively toward goals.

5. Adjourning: The team disbands after achieving its goals.

Chapter 12: Diversity in Organizations

Diversity

• The presence of differences in characteristics such as race, gender, age, culture, etc.

Key Terms

1. Affirmative Action: Policies to promote the employment of disadvantaged groups.

2. Glass Ceiling: Invisible barriers preventing women and minorities from advancing.

Surface-Level vs. Deep-Level Diversity

• Surface-Level Diversity: Observable characteristics (e.g., age, race).

• Deep-Level Diversity: Differences in values, beliefs, and attitudes.