MGMT exam 1 review
The dimensions of the General environment
Economic: the overall health and vitality of the economic system in which the organization operates technological: the methods available for converting resources into products or services sociocultural: the customs, mores, values, and demographic characteristics of society political-legal : the government regulation of business and the relationship between business and the government international: the extent to which an organization is involved in or affected by business in other countries
external environment of an organization
Everything outside an organizations's boundaries that might affect it. -external marketplace, customer, government entities 2 external environments: the general environment and the task environment
what is administrative management?
Focuses on managing the total organization -provide for employees so they can stay motivated to work harder
People associated with Scientific Management
Frank and Lillian Gilbreth: developed numerous techniques and strategies for eliminating inefficiency Henry Gantt: introduced the Gantt chart for scheduling work Harrington Emerson: advocate for specialize management roles. management should be as specialized as line work Frederick Taylor: Soldiering- employees deliberating working at a slower pace revised a four step method under scientific management to overcome the problem.
People associated with Administrative Management
Henri Fayol: identified the 4 management functions (planning/decision-making, organizing, leading, controlling) Lyndall Urwick: integrated scientific management with the work of Fayol -looked at both sides of it. Max Weber: german sociologist, developed the concept of bureaucracy: based on a rational set of guidelines for structuring organizations in the most efficient manner -studied efficient organizational structure: bureaucracy. levels of hierarchy Chester Barnard: developed a theory about the acceptance of authority: an order is accepted if the subordinate understands it, is able to comply with it, and views it as appropriate -grant someone authority over us and we agree vis a vie employement
What is Theory Y
Human relations advocates makes people want to work they like to achieve goals, personal rewards(behavioral management sub-theory) assumptions: -people don't naturally dislike work -people are internally motivated to reach objectives to which they are committed -people will both seek and accept responsibility under favorable conditions -people have the capacity to be innovative in solving problems -people are bright, but their potential is underutilized
People associated with Behavioral management and the humans relations movement
Humans relations Movement : argued that workers respond primarily to the social context of the workforce -a basic assumption for the whole study is that a managers concern for worker will lead to increased satisfaction and improved performance - Hugo Munsterberg: 1st person to get involved & apply psychology in human relations movement - Mary Parker Follet: conducted Hawthorn Studies/ early pioneer of behavioral theory & understanding employees - Human Relations Movement: Argue that workers respond primarily to social context of the workplace (inspired by Hawthorn Studies) - Douglas McGreggor's Theories X & Y
What is Scientific management?
- Concerned with improving the performance of individual workers- Assumes problems can be approached with rational, logical, objective, and systematic ways- Technical, diagnostic, techniques to solve problems- Steps: 1. Develop a science for each element of the job to replace old rule-of-thumb methods 2. Scientifically select employees and then train them to do the job 3. Supervise employees to make sure they follow their prescribed methods for performing the job 4. Continue to plan work, but use workers to get the job done
what is social responsibility elements of it and how do we use it
- Definition: set of obligations an organization has to protect and enhance the societal context in which it functions - Organizations may exercise social responsibility toward their: Stakeholder- person or organization Who is directly affected by practices of an org and has a stake in its performance (Most companies focus on 3 main groups first: customers, employees, and investors) Natural Environment- laws now regulate how business treat the natural environment, also safety policies to reduce environmental damage Ex: shell oil hired a biologist to oversee environmental protection and anthropologist to interact with the native tribes of the amazon basin Ex: Fracking: increased petroleum supply levels and lower costs, but is polluting underground water sources and causing instability in nearby towns General Social Welfare- contribute to charities, philanthropic organizations, and nonprofits; correct political inequities Ex: businesses should not conduct operations in countries with a record of human rights violations
examples of interpersonal roles
- Interpersonal: The roles of figurehead, leader, and liaison, which involves dealing with other people (inherent in the senior manager's job) 1. serve as a figurehead— person in charge and everyone knows it, upper level = CEO or front-line management = team leader, a source of inspiration -taking visitors to dinner, attending ribbon-cutting ceremonies, and the like. These activities are typically more ceremonial and symbolic than substantive. 2. serve as a leader—hiring, training, and motivating employees. A manager who formally or informally shows subordinates how to do things and how to perform under pressure is leading. 3. have a liaison role. -- involves dealing with other people ex: middle managers function as a liaison between top and first line This role often involves serving as a coordinator or link among people, groups, or organizations. For example, companies in the computer industry may use liaisons to keep other companies informed about their plans.
how do cultural differences impact our business practices?
- Social orientation: relative importance of individual vs group interests ex: individualism (U.S.) vs collectivism (Japan) - Power orientation: the appropriateness of power/authority within organizations ex: power respect vs power tolerance - Uncertainty orientation: an emotional response ex: uncertainty acceptance vs uncertainty avoidance (personality & cultural) - Goal orientation: what motivates people to achieve different goals ex: aggressive goal behavior (U.S.) vs passive goal behavior (Latin Countries) - Time orientation: the extent to which members of culture adopt long-term or a short-term outlook on work & life ex: long- term outlook vs short term outlook (generational & cultural)
what are tariffs
- a tax collected on goods shipped across national boundaries- One of the controls on international trade in the political/legal environment of international management
what is a market system
- clusters of countries that engage in high levels of international trade with one another, a way to stream-line trade between countries, manufacture cheaper,- Examples: 1. North American Free Trade Agreement (NAFTA) → an agreement between Mexico, U.S. and Canada to promote trade with one another 2. European Union the first and most important international market system 3. Pacific Asia → a market system located in Southeast Asia
Organizational behavior
- contemporary field focusing on behavioral perspectives of management- holistic view of behavior & addresses the individual, group, and organizational processes
What is Behavioral Management
- emphasizes individual attitudes & behaviors & group processes on what pushed organizations forward -conducted the Hawthorn Studies :found increased productivity in both control and experimental group - later attributed to heightened employee morale due to extra attention -Later studies identified: Group normalization -"rate busters" over producers and "chiselers" (underproduces) -their conclusion: human behavior was much more important in the workplace than previously believed
How do we define the task environment?
- specific organizations or groups that influence an organization ex: McDonalds: -Competitors Burger King, Starbucks, subway, and Dairy Queen -Customers individual consumers and institutional customers -suppliers Coca Cola, wholesale food processors, and packaging manufacturers strategic partners Walmart, disney, and foreign partners -Regulators Food and drug administration, securities and exchange commission, and the environmental protection agency
what is contingency theory?
- suggests that appropriate managerial behavior is contingent on a variety of elements- identify one best way to do something depending on the situation (could be classical, behavioral, and quantitative)- Wide variety of elements, integrating framework -believes each organization is unique
how do we define the general environment
- the set of broad dimensions and forces in an organization's surrounding that create its overall context - ex/ economic, technological, sociocultural, political-legal, and international dimensions
managing organizational culture
- understand the current culture to understand whether to maintain or change it -if it is in the best interests of the firm: managers should reward behavior consistent with the culture IF the culture needs changing: -managers must identify the culture they prefer - articulate the culture through slogans, ceremonies, and shared experiences (tell new stories) (bring in outsiders all to support the new culture
determinants of organizational culture
-Develops over a long period of time. -Often starts with the founder.(decisions that the top makes) -Includes such things as corporate success and shared experiences.
competitive forces
-Threat of Entrants: ease of entering the market -competitive rivalry: rivalry between firms in the same industry -Threat of Substitutes: can other products work just as well -Power of Buyers : extent buyers influence suppliers -Power of Suppliers : extent suppliers influence buyers
Universal Perspective
-Tries to identify the "one best way" to do something. -Includes the classical, behavioral, and quantitative approaches.
What is quantitive management?
-applies quantitative techniques to management- focuses on decision-making, economic effectiveness, mathematical models, & the use of computers - 2 types: 1. Management Science: focuses specifically on development of mathematical models 2. Operations Management: concerned with helping the organization more efficiently produce its products or services
What is systems Perspective?
-four basic elements: inputs, transformation processes, outputs, and feedback 1. inputs are the material, human, financial, and information resources the organization gets from its environment.2. through technological and managerial processes, inputs are transformed into outputs. Outputs include products, services, or both (tangible and intangible); profits, losses, or both (even not-for-profit organizations must operate within their budgets); employee behaviors; and information.3. The environment reacts to these outputs and provides feedback to the system.
what are the different managerial roles
-interpersonal -informational -decisonal
importance of organizational culture
-it can shape the firm's effectiveness and long tern success, and increase productivity
synergy
2 or more subsystems working together to produce more than the total of what they might produce working alone
environmental turbulence
Consists of changes in the environment which may or may not be expected -crisis is the most common form of turbulence -some organizations have developed a crisis team, and or/plan
what are the formal organizational dimensions
Definition: help manage social responsibility with a strategic perspective Legal compliance: extent to which the org conforms to local, tate, federal and international laws Ethical Compliance- extent to which members of the org follow basic ethical and legal standards of behavior Providing training in ethics, establishing codes of conduct, Formal ethical committees Philanthropic Giving- funds or gifts to charities or worthy causes
how does the government influence organizations?
Direct Regulation- laws and rules that dictate what organizations can and cannot do - creates agencies to monitor and control certain aspects of business activity Ex: environmental protection agency, FTC, NLRB - Legislation U.s. foreign corrupt practices act provides financial sanctions against businesses that engage in bribery Indirect Regulation- can influence organizations through tax codes; tax incentives
examples of informational roles
Informational: The roles of monitor, disseminator, and spokesperson, which involve the processing of information (flow naturally from the interpersonal roles) carrying out as a manager = at a strategic point the gather and disseminate information 1. Monitor : one who actively seeks information that may be of value. (monitor the organization and the people underneath them and their progress/productivity) -The manager questions subordinates, is receptive to unsolicited information, and attempts to be as well informed as possible. 2. Disseminator : of information, (determine whether the people above/below need information) transmitting relevant information back to others in the workplace. -When the roles of monitor and disseminator are viewed together, the manager emerges as a vital link in the organization's chain of communication. 3. Spokesperson : formally relays information to people outside the unit or outside the organization. (involves processing information and representing the organization itself) -For example, may transmit information to top-level managers so that they will be better informed about the plant's activities.The manager may also represent the organization before a chamber of com-merce or consumer group.
Areas of Management
Marketing, Finance, Operations, Human Resources, Administration, Other marketing mangers: sell the product and work in new product development, promotion and distribution financial managers: undertake accounting, cash management, and investments operations managers: control production, inventory quality, and plant layout HR managers: hire and develop employees administrative manager: a generalists and familiar with all areas of management Other managers: include public relations and research and development -professor worked in claims - underwriting communication about language lead to bringing in other groups
global business
Not committed to a single home country
what are the informal organizational dimensions
Organization Leadership and Culture- leadership practices and org culture affect how the employees and members act Whistle-blowing- disclosure by an employee of illegal or unethical conduct on the part of the others within the org
Organization Environment Relationships
Organizations are open systems and interact with various dimensions in many different ways 1. how environments affect organizations 2. how organizations adapt to their environments
how do organizations influence the government
Personal Contacts Lobbying- use of persons or groups to represent a org before political bodies Political Action Committees- special organizations to solicit money and then distribute it to political candidates Favors- legal but subject to criticism
what is decision making/planning
Planning : setting goals and deciding how best to achieve them (must be achievable and measurable) Decision Making: Part of the planning process that involves selecting a course of action from a set of alternatives Planning and decision making help maintain managerial effectiveness by serving as guides for future activities. The organization's goals and plans clearly help managers know how to allocate their time and resources. where the organization is going and how we are gonna get there. settling goals so we know what they are and when they've been attained the basic element of planning and decision making are: importance of organizational goals and strategic and strategic planning (provide direction and focus for the organization) also planning and decision making relates to the management of new ventures and entrepreneurial activities.
internal environment of an organization
The conditions and forces within an organization. -impact of leadership, manufacturing, finance etc. an organization's internal environment consists of their: -owners: whoever can claim property rights to an organization -boards of directors: governing body elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests -employees: issues include: a workforce being coming increasingly diverse in gender, ethnicity, age, and other dimensions -influx of women, age groups, working longer hours -increased reliance on "temp" workers -labor unions add a complex layer -physical work environments -issues include location, design, and layout (state and country for best tax deal) -cultures
examples of decisional roles
The roles of entrepreneur, disturbance handler, resource allocator, and negotiator, which relate primarily to making decisions (informational roles have a high bearing on important decisions) 1. entrepreneur : the voluntary initiator of change. (new ideas, next best idea) A manager at 3M Company developed the idea for the Post-it note pad but had to "sell" it to other skeptical managers inside the company 2. disturbance handler : is initiated not by the manager but by some other individual or group. (solve problems within their unit) The manager responds to her role as disturbance handler by handling such problems as strikes, copyright infringements, or problems in public relations or corporate image. 3. resource allocator : As resource allocator, the manager decides how resources are distributed and with whom he or she will work most closely. (how many people and money and budget based on that 4. negotiator: In this role the manager enters into negotiations with other groups or organizations as a representative of the company. (relates primarily to making decisions) -negotiate a union contract, an agreement with a consultant, or a long-term relationship with a supplier. may also be internal-mediate a dispute between two subordinates or negotiate with another department for additional support. the nature of senior managerial roles may have changed
how would we define an organization with examples
a group of people working together in a structured and coordinated fashion to achieve a set of goals; -goals can be: Profit, discovery of knowledge, national defense, coordination of various local charities, or social satisfaction. -organizations can be: nike, Xerox, Mitsubishi, British museum, urban outfitters, Dallas cowboys team, roman Catholic Church, aggieland outfitters, hospital, public or private schools, businesses, various government agencies, Starbucks, universities, US army All organizations use Human Resources, Financial Resources, Physical Resources, Info Resourcterm-28es Human resources include managerial talent and labor. -drilling platform workers, corporate executives, faculty administrative staff, police officers, municipal employees, grocery store clerks, bookkeeper Financial resources are the capital used by the organization to finance both ongoing and long-term operations. - profits, stockholder investments , alumni contributions, government grants, owner investment Physical resources include raw materials, office and production facilities, and equipment. - refineries, office buildings, computers, campus facilities, sanitation equipment, municipal buildings, display shelving Information resources are usable data needed to make effective decisions. - sales forecasts, OPEC proclamations, research reports, government publications, economic forecasts, crime stats, price lists from suppliers, newspaper ads for competitors Managers are responsible for combining and coordinating these various resources to achieve the organiza tion's goals.
What is a beauracracy
a system of government in which most of the important decisions are made by state officials rather than by elected representatives - Complex multi-level administrative hierarchy - Departmental specialization - Strict division of authority - Standard set of formal rules or operating procedures Weber's work on bureaucracy laid the foundation for contemporary organization theory-The concept of bureaucracy, as we discuss later, is based on a rational set of guidelines for structuring organizations in the most efficient manner.
closed system
a system that does not interact with its environment
open system
a system that interacts with its environment
subsystem
a system within another system
domestic business
all resources and business acquired in a single country*hardest of business types
what did werber do
an old German guy who was into bureaucracy analysis -developed the concept of bureaucracy: based on a rational set of guidelines for structuring organizations in the most efficient manner
what are competitors?
an organization that competes with other organizations for resources
how does a start up company form
answer is E
What is operations management?
concerned with helping the organization more efficiently produce its products or services
What is classical management?
consists of 2 branches: 1. Scientific Management 2.Administrative Management focus on ways to improve the performance of individual workers.labor was in short supply. Con-sequently, managers began to search for ways to use existing labor more efficiently -Today: Contributions: It laid the foundation for management theory. -identified key processes functions and skills -Made management a valid subject of study Limitations: -best used in simple stable organizations -changing too fast -universal procedures may not be appropriate in some settings - one call doesn't do it all -employees not viewed as resources - there to get the job done mechanical part
quantitative management today
contributions: 1. sophisticated quantitative techniques can assist managers in decision making. -it is useful in planning and controlling processes 2. application of its models has increased awareness and understanding of complex processes and situations. limitations: 1. Cannot fully explain or predict behavior 2. mathematical sophistication may come at the expense of other managerial skills. -its models may require unrealistic or unfounded assumptions limiting their general applicability.
environmental change and complexity
degrees of homogeneity (consistency - simple = least level of uncertainty complex = most level of uncertainty stable = low level of uncertainty rapid = high level of uncertainty_
how environments affect organizations
environmental change and complexity, competitive forces, and environmental turbulence
Review all the management perspectives
figure 2.4 Managers should include portions of each perspective relevant to their situation and apply them using systems and contingency approaches
what is management science
focuses specifically on the development of mathematical models. A mathematical model is a simplified representation of a system, process, or relationship. - Part of the quantitative management perspective
entropy
is a normal process leading to system decline
what is management what does it do what are its functions
management is a set of activities - planning and decision making, organizing, leading, and controlling - directed at an organization's resources - human, financial, physical, and information - with the aim of achieving organizational goals in an efficient and effective manner basic purpose of management is to ensure that an organization's goals are achieved in an efficient - using resources wisely and in a cost effective way - and effective - making the right decisions and successfully implementing them - manner -successful organizations are both effective and efficient. To be effective businesses must produce products that consumers are willing to buy. -It does planning, decision making, organizing, leading, and controlling. -its functions are: - Planning and decision making → setting goals and deciding how best to achieve them (must be achievable and measurable) - Determining Courses of Action - Organizing → determining how best to group activities and resources (how many people do I need and who is the best person for the jobbed how am I gonna get them to do it) - setting up the organization - Coordinating Activities and Resources - Leading → motivating (give us there best, and getting them to follow you with heart) and managing members of the organization to work in the best interests of the organization -Motivating and Managing People - Controlling → monitoring and correcting ongoing activities and performance to facilitate goal attainment (what's going wrong are there problems) -Monitoring and Evaluating Activities the functions of management do not usually occur in a tidy, step-by-step fashion. manager is likely to be engaged in several different activities simultaneously
Contemporary Management challenges
management style that uses current or present period practices to plan, organize, and control individuals within an organization Challenges: -An unpredictable economy, limiting growth. -Globalization presents many challenges. -Ethics and social responsibility in relation to corporate governance. -Quality as the basis for competition, increased productivity, and lower costs. -The shift toward a service economy. -The role and impact of social media.
What is theory X
pessimistic and negative view of workers consistent with views of scientific management (behavioral management sub-theory) Assumes: -people do not like to work and try to avoid it. -managers have to control direct , coerce, and threaten employees to get them to work toward organizational goals -People prefer to be directed , to avoid responsibility, and to want security, they have ;little ambition
what is a cultural system (organizational culture)
the set of values, beliefs, behaviors, customs, & attitudes that helps the members of the organization understand what it stands for, how it does things, & what it considers important culture defies objective measurement or observation yet is the foundation of the internal environment
international business
uses worldwide market place to buy materials, manufacture, and sell products but still identifies with one countryex: cars & Amazon
multinational business
uses worldwide market place to buy materials, manufacture, and sell products but still identifies with one countryex: cars & Amazon
What is systems theory?
viewing an organization as an interrelated set of elements functioning as a whole (system)