Management theory exam review 1

Community relations

Contact must be maintained and nurtured with representatives from various constituencies outside the company, including state and federal agencies, local civic groups, and suppliers.

Exhibit 1.6 is likely the most important graphic in this whole chapter for your future career. Why?

First, if you choose to become a manager, knowing that the mix of skills changes over time can help you avoid a common complaint that often young employees want to think and act like a CEO before they have mastered being a first-line supervisor. Second, knowing the different mix of management activities by functional area can facilitate your selection of an area or areas that best match your skills and interests.

How did Frederick Winslow Taylor influence management theory, and how did efficiency in management affect current management theory?

Frederick Winslow Taylor added the scientific method to management (four principles) and the idea of a time study.

What are the key elements to the composition of a successful group for decision making?

Have diverse members in the group. Improves quality: generates more options, reduces bias Assign a devil's advocate. Improves quality: reduces groupthink Encourage everyone to speak up and contribute. Improves quality: generates more options, prevents suppression of dissent Help group members find common ground. Improves quality: reduces personality conflict

Why was the printing press so impactful?

In the 15th century, an innovation enabled people to share knowledge more quickly and widely. Civilization never looked back. Knowledge is power, as the saying goes, and the invention of the mechanical movable type printing press helped disseminate knowledge wider and faster than ever before

The printing press:

Invented by Johannes Gutenberg in about 1440, the mechanical printing press could produce up to 3,600 pages per day, compared to the previous rate of about 40 pages per day with the same workforce.

List 3 elements of the Code of Hammurabi that applied to business.

Law 104 was one of the first instances of accounting and of the need for formal rules for managers and owners. including business dealings, personal behavior, interpersonal relations,

What are the characteristics that effective managers display?

Management is the process of planning, organizing, directing, and controlling the activities of employees in combination with other resources to accomplish organizational goals. Managerial responsibilities include long-range planning, controlling, environmental scanning, supervision, coordination, customer relations, community relations, internal consulting, and monitoring of products and services. These responsibilities differ by level in the organizational hierarchy and by department or function. Managers today need to be a global strategist, a master of technology, a good politician, and a premier leader-motivator.

What are the basic characteristics of managerial decision-making?

Managerial decision-making is often characterized by complexity, incomplete information, and time constraints, and there is rarely one right answer. Sometimes there are multiple good options (or multiple bad options), and the manager must try to decide which will generate the most positive outcomes (or the fewest negative outcomes).

Supervision

Managers continually oversee the work of their subordinates.

Controlling

Managers evaluate and take corrective action concerning the allocation and use of human, financial, and material resources.

Monitoring products and services

Managers get involved in planning, scheduling, and monitoring the design, development, production, and delivery of the organization's products and services.

Environmental scanning

Managers must continually watch for changes in the business environment and monitor business indicators such as returns on equity or investment, economic indicators, business cycles, and so forth.

Long-range planning

Managers occupying executive positions are frequently involved in strategic planning and development.

Coordinating

Managers often must coordinate the work of others both inside the work unit and out.

What do managers do to help organizations achieve top performance?

Managers perform a variety of functions in organizations, but amongst one of the most important functions they perform is communicating with direct reports to help their organizations achieve and exceed goals.

How does satisficing differ from sacrificing?

When satisficing, a decision maker selects the first acceptable solution without engaging in additional effort to identify the best solution. We all engage in satisficing every day.

Self-awareness

a person's realization that he or she is a distinct individual whose body, mind, and actions are separate from those of other people

Worker rest

by allowing workers to have rest periods throughout the day, he was able to get workers to work faster and better without making them tired.

Give an example of a non-programmed decision

consider a manager trying to decide whether or not to adopt a new technology. There will always be unknowns in situations of this nature. Will the new technology really be better than the existing technology? Will it become widely accepted over time, or will some other technology become the standard? The best the manager can do in this situation is to gather as much relevant information as possible and make an educated guess as to whether the new technology will be worthwhile. Clearly, non-programmed decisions present the greater challenge.

entrepreneur

initiates projects that lead to improvements; delegate idea-generation responsibilities to others and identify best ideas to act on.

bounded rationality

is the idea that for complex issues we cannot be completely rational because we cannot fully grasp all the possible alternatives, nor can we understand all the implications of every possible alternative.

liasion

maintain and manage information links inside and outside an organization.

What's the correct answer? Does every managerial decision have a single correct answer? Does every managerial decision have a single incorrect answer?

making decisions as a manager is not at all like taking a multiple-choice test: with a multiple-choice test there is always one right answer. This is rarely the case with management decisions.

Differential piecework compensation:

meaning that if workers produced more than a certain amount, they would be paid more. Some compensation systems, such as sales commissions (i.e., being paid for how much you sell), have their bases in Taylor's work.

Piecework production

meaning that workers were paid for how much they produced.

leader

motivate, train, counsel, communicate, and direct subordinates.

disseminator

pass information on to others in the organization through memos, emails, phone calls, etc.

figurehead

perform formal duties like greeting visitors and signing contracts and other legal documents

A manager should develop a rule of science for each aspect of a job:

principle 1: replaces the rule of thumb method

Scientifically select and train each worker:

principle 2: better than in the past of how they would try to train themselves

Management and the workforce should work together to ensure that work is performed according to the principles of management:

principle 3: cooperate with one another to get the job done

Incentives

refers to a system whereby managers would have to provide workers with special incentives to obtain their best effort, or initiative. The reason being, workers believed "it to be directly against their interests to give their employers their best initiative"

negotiator

represents a team, department, or organization regarding contracts, union negations, ect.

monitor

seek and receive information from a variety of sources (web, industry journals, reports, and contacts).

What do you perceive to be the most overlooked steps in the Decision Making process?

sometimes people will refuse to acknowledge a problem (Step 1) (Recognize that a decision needs to be made) because they aren't sure how to address it.

As conceived by Adam Smith, what are the three main effects of specialization?

specialization drastically reduced the cost of goods. Secondly, it drastically reduced the need for training. Instead of learning every aspect of a task, workers needed to learn one portion of it. Thirdly, the need to coordinate all these different tasks required a greater emphasis on management.

Because the Romans needed to administer a vast empire, they needed __________ of measures, weights, and coins.

standardization

How does the nature of management change according to one's level and function in the organization?

success in executive positions requires far more conceptual skill and less use of technical skills in most (but not all) situations whereas first-line managers generally require more technical skills and fewer conceptual skills. however, that human relations skills, or people skills, remain important for success at all three levels in the hierarchy.

empathy

the ability to understand other peoples' emotions (and an interest in doing so).

The Transportation Revolution:

the construction of canals and, later, railroads that connected the different parts of the continent.

resources allocator

the decisional sub-role in which a manager allocates resources to different departments, functions or projects

What other aspect of Sumerian culture may have led to the need for management?

the development of a basic form of coins allowed for increased trade because a person wanting to obtain a good or service no longer had to find another person who wanted exactly the good or service he produced. Coordinating the activities of those who provided goods and those who wanted to purchase them often required coordination, one of the main functions of a manager.

self-regulation

the exercise of voluntary control over the self to bring the self into line with preferred standards

What did such a high volume of printing enable in society and in business?

the mechanical movable type printing press helped disseminate knowledge wider and faster than ever before

Escalation of Commitment

the tendency of decision makers to remain committed to poor decision, even when doing so leads to increasingly negative outcomes. Once we commit to a decision, we may find it difficult to reevaluate that decision rationally.

What does Kotter's research say about the role of a manager?

there are three principal roles for a business leader: 1.)Setting direction for the future of their business 2.)Aligning their people to that direction 3.)Motivating and inspiring people to move in that direction

Time management studies

to break down a person's workday into a series of activities. He then timed the execution of each activity to see which way was the quickest. He would rebuild the job using only the most efficient ways possible and then train workers to perform the task.

social skills

to manage the emotional aspects of relationships with others.

spokesperson

to transmit information to people outside the organizations through speeches, interviews, and written communications

Is there a connection between the rise of management and urban living?

yes

Part of a manager's job is to separate the important from the unimportant. How would you do this?

· "Managers, in fact, spend very little time by themselves...Instead, they spend most of their time interacting with others—both inside and outside the organization."

What are the advantages and disadvantages of group decision-making, and how can a manager improve the quality of group decision-making?

•Different perspectives •Needs a diverse group, different preferences, opinions, biases, and stereotypes. •More work for manager in negotiating differences but can avoid bias in outcome. •More information and knowledge brought into process, brainstorming. •Involve those affected by the decision creates buy in.

Can you describe the relationship between these barriers and the decision-making process?

•Inability to collect necessary information to make an informed decision (time constraints, nonexistent) •Inability to cognitively process all the available information

What is the difference between programmed and non-programmed decisions?

•Programmed - based on criteria that are well understood, having established rules and guidelines based on known facts, enabling a speedier decision •Non-programmed - may need research and collection of data, opinions, and ideas to resolve

What are the two systems of decision-making in the brain?

•Reflective - (rational, logical) best used for significant/important and novel/complex decisions. •Reactive - utilizes developed experience and expertise. Best used when time is of the essence. •Role of Emotional Intelligence - ability to recognize, understand, pay attention to, and manage one's won emotions and the emotions of others

Describe management in the ancient world

•Sumerians - Provided concepts fo writing and record keeping that allowed urban economies to develop, establishing small business •Egyptians - Pioneered ideas around specialization of labor, span of control, and hierarch of command. •Sun Tzu and Han Dynasty - developed subdivisions, rankings of authority, coordination, and bureaucracy. •Greeks/Romans - forerunners of modern corporation and guilds

How can a manager improve the quality of her individual decision-making?

•Using heuristics (mental shortcuts) and satisficing (choosing first acceptable solution) to save time when making programmed decisions •Use decision-making process, seek input, conduct research when making nonprogrammed decisions.

Customer relations and marketing

Certain managers are involved in direct contact with customers and potential customers.

· What's the most ethical answer? Maximizing shareholder wealth has come under scrutiny lately, especially when this objective is at odds with other stakeholders or ethical practice. Do you think the main objective of management is to increase value for shareholders? Why or why not?

"Maximizing shareholder wealth" is often used as a rationalization for placing the importance of short-term profits over the needs of others who will be affected by a decision—such as employees, customers, or local citizens (who might be affected, for example, by environmental decisions). Maximizing shareholder wealth is often a short-sighted decision, however, because it can harm the organization's financial viability in the future.

What are the four main informational roles a manager plays?

*managing through action entrepreneur disturbance handler resources allocator negotiator

What are the three main informational roles a manager plays?

*managing through information monitor disseminator spokesperson

What are the three main interpersonal roles a manager plays?

*managing through people figurehead leader liaison

List two benefits and two challenges related to group decision making.

-Having more people involved in decision-making is also beneficial because each individual brings unique information or knowledge to the group, as well as different perspectives on the problem. Additionally, having the participation of multiple people will often lead to more options being generated and to greater intellectual stimulation as group members discuss the available options. -Often, one individual in the group has more power or exerts more influence than others and discourages those with differing opinions from speaking up (suppression of dissent) to ensure that only their own ideas are implemented. If members of the group are not really contributing their ideas and perspectives, however, then the group is not getting the benefits of group decision-making.

How does a manager balance these competing values? Who or what organizations hold the most importance?

.Efficiency is a core skill. With less time than they need, with time fragmented into increasingly smaller units during the workday, with the workplace following many managers out the door and even on vacation, and with many more responsibilities loaded onto managers in downsized, flatter organizations, efficiency has become the core management skill of

Decision Making Process

1 Recognize that a decision needs to be made. 2 Generate multiple alternatives. 3 Analyze the alternatives. 4 Select an alternative. 5 Implement the selected alternative. 6 Evaluate its effectiveness.

· Managerial Responsibilities

1. Long-range planning 2. Controlling 3. Environmental scanning 4. Supervision 5. Coordinating 6. Customer relations and marketing 7. Community relations 8. Internal consulting 9. Monitoring products and services

Techniques for Making Better Non-programmed Decisions

1. Recognize that a decision needs to be made. 2. Generate multiple alternatives. 3. Analyze the alternatives. 4. Select an alternative. 5. Implement the selected alternative. 6. Evaluate its effectiveness.

What do managers do?

1. set objectives 2. organize 3. motivate and communicate 4. measure 5. develop people

What are the three main levels of management?

1.) executive management 2.) middle management 3.) first line management

· What's the most ethical answer? How can a manager consider ethics in decision making?

All managers, however, make decisions that impact others. It is therefore important to be mindful about whether our decisions have a positive or a negative impact.

Management issues exposed by the Industrial Revolution:

As business grew from small, localized companies to giant corporations, management issues grew. These included worker motivation, standardization and quality of work, and misunderstandings about the quantity and quality of work.

What are some negative outcomes of poor decision making?

Bad publicity, customers boycotting the organization, and government fines are all possible long-term outcomes when managers make choices that cause harm in order to maximize shareholder wealth. More importantly, increasing the wealth of shareholders is not an acceptable reason for causing harm to others.

What are the roles that managers play in organizations?

Managers perform a variety of roles in organizations, but amongst one of the most important functions they perform is communicating with direct reports to help their organizations achieve and exceed goals. Managers perform three major types of roles within organizations, interpersonal roles, informational roles, and decisional roles. The extent of each of these roles depends on the manager's position within the organizational hierarchy.

According to James Rest, what are the four components to ethical decision making?

Moral sensitivity—recognizing that the issue has a moral component; Moral judgment—determining which actions are right vs. wrong; Moral motivation/intention—deciding to do the right thing; and Moral character/action—actually doing what is right.

The Market Revolution

Previously to the Market Revolution, the U.S. economy had been based on small, self-subsistent yeoman farmers who would produce mostly homemade batches. Around 1830, the existence of easy credit and improved transportation established a broad Market Revolution. This spawned a wide variety of corporations that needed managers to coordinate various company offices.

How does process conflict differ from relationship conflict?

Process conflict, conflict about the best way to do something, can actually lead to improved performance, as individuals explore various options together in order to identify superior solutions. Relationship conflict is conflict between individuals that is more personal and involves attacks on a person rather than an idea. This kind of conflict is generally harmful and should be quelled when possible. The harm from relationship conflict arises at least in part because feeling personally attacked will cause an individual to revert to the reactive system of the brain.

Managers frequently make decisions without complete information. In this regard, what ability must an effective manager develop?

Reflective - (rational, logical) best used for significant/important and novel/complex decisions.

Would it be better if you used the reflective or reactive system? Which do you tend to use - and with what result?

Reflective Decision-Making As a manager, you need to think about whether a situation requires not a fast, "gut" reaction, but some serious thought prior to making a decision. It is especially important to pay attention to your emotions, because strong emotions can make it difficult to process information rationally.

disturbance handler

Responsible for corrective action when organization faces important, unexpected disturbances

Internal consulting

Some managers make use of their technical expertise to solve internal problems, acting as inside consultants for organizational change and development.

How might that have influenced trade?

The Crusades were a series of military conflicts in which Europeans traveled to the Middle East. These expeditions, as well as other travel, brought new knowledge from both the Muslim and Chinese societies. In addition, there was a rediscovery of trade throughout Europe. These factors led to the Renaissance, which initially took place in Italy. The Renaissance saw a reemergence of trade, as well as a great expansion of culture and science.

Overall, what are the main contributions of the Early/Ancient Origins period to the study of management?

Sumerians Writing and trade Hammurabi Written commands and controls Nebuchadnezzar Incentives Ancient Egyptians Division of labor, coordination and span of control Sun Tzu Division of labor, communication and coordination Han dynasty (206 BC-220 AD)Development of bureaucracy Ancient Greeks Division of labor Romans Standardization Italians Accounting, corporations, multinational corporations John Florio Management to English language

What are two effective strategies for generating multiple alternatives?

Talk to other people be creative

How did the Italian Renaissance affect the progression of management theory?

The Crusades were a series of military conflicts in which Europeans traveled to the Middle East. These expeditions, as well as other travel, brought new knowledge from both the Muslim and Chinese societies. In addition, there was a rediscovery of trade throughout Europe. These factors led to the Renaissance, which initially took place in Italy. The Renaissance saw a reemergence of trade, as well as a great expansion of culture and science. The Renaissance also saw the development of the idea of the corporation and double-entry accounting. In fact, some of the first multinational corporations have their genesis in the Italian Renaissance.

How did the Industrial Revolution affect the progression of management theory?

The Industrial Revolution was a product of a combination of factors, including the spread of learning from the Italian Renaissance, the improvement of transportation, the Market Revolution, and technology. In addition, scholars such as Adam Smith provided support for the ideas of division of labor, specialization, and coordination within a corporation, allowing for the development of factories. This economic shifted created the need for managers.

Explain the concept of confirmation bias.

The brain excels at organizing information into categories, and it doesn't like to expend the effort to re-arrange once the categories are established. As a result, we tend to pay more attention to information that confirms our existing beliefs and less attention to information that is contrary to our beliefs, a shortcoming.

The Communication (or Telegraph) Revolution

The emergence of a telegraph system allowed for faster communication between various parts of the United States. Previously, it would take weeks to get information from New York to Boston; with the telegraph, it took minutes.

What barriers exist that make effective decision-making difficult?

There are numerous barriers to effective decision-making. Managers are limited in their ability to collect comprehensive information, and they are limited in their ability to cognitively process all the information that is available. Managers cannot always know all the possible outcomes of all the possible options, and they often face time constraints that limit their ability to collect all the information that they would like to have. In addition, managers, like all humans, have biases that influence their decision-making, and that can make it difficult for them to make good decisions.

How might the market landscape influence a manager's job?

Threats include technological breakthroughs on the part of competitors, obsolescence in a manager's organization, and dramatically shortened product cycles. Opportunities might include product or service niches that are underserved, out-of-cycle hiring opportunities, mergers, purchases, or upgrades in equipment, space, or other assets. Managers who are carefully attuned to the marketplace and competitive environment will look for opportunities to gain an advantage.

Give an example of a programmed decision that a manager might face.

consider a retail store manager developing the weekly work schedule for part-time employees. The manager must consider how busy the store is likely to be, taking into account seasonal fluctuations in business. Then, she must consider the availability of the workers by taking into account requests for vacation and for other obligations that employees might have (such as school). Establishing the schedule might be complex, but it is still a programmed decision: it is made on a regular basis based on well-understood criteria, so structure can be applied to the process.

Romans also saw the birth of the __________, in that many Roman companies sold ________ to the public.

corporation stocks

What categories (conceptual, human, technical) increase or decrease as you move up in the management hierarchy?

decrease in technical skills and increase in conceptual and human.

The Greeks continued to develop the idea of ____________ based on Plato's recognition of human diversity.

division of labor

How did the printing press change social structure?

enabled people to share knowledge more quickly and widely. Civilization never looked back.

Experience: It is commonly said that your degree will get your first job, but experience will get you the second. Why is experience so important?

experience shows that you have performed your job before and that you can do so with little to no training required.

What are some internal and external influences on a specific manager's job?

external factors: The economy, politics, competitors, customers, and even the weather are all uncontrollable factors that can influence an organization's performance. internal factors such as staff, company culture, processes, and finances, which all seem within your grasp.