Principles of Management 420

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Belongingness - Relationships, Love and Affection, (level 4) Esteem (Internal and External), (level 5) Self Actualization

Benefits of starting a business from scratch

- Avoids problems associated with previous owners - Freedom to choose suppliers, equipment, location & workers

Reasons for failure of a business

- Managerial Incompetence - Insufficient funds - Weak Control Systems - Growing too fast - Lack of commitment - Ethical failure

Big Five Model of Personality

1. Agreeableness 2. Conscientiousness 3. Emotional Stability 4. Extraversion 5. Openness to new experiences

HR Planning Steps

1. Assess current HR (number and skills) 2. Assess future HR needs 3. Developing program to match resources with needs

The legal environment of HRM

1. Equal Employment Opportunity Laws 2. Compensation and Benefits Laws 3. Labor Relations Laws 4. Health and Safety Laws

Reasons for Success

1. Hard work, drive, and dedication 2. Careful analysis of market conditions 3. Managerial competence 4. Luck

8 Entrepreneurial Personality Traits

1. Internal Locus of Control: strong belief that we control our own destiny 2. High need for achievement; goal-oriented 3. High level of energy 4. Moderate risk taker- only takes informed, calculated risks 5. Self-confidence 6. Action-oriented 7. Desire for Independence; wants to be his/her own boss 8. Flexibility; willingness to change a course of action if necessary

Job satisfaction influenced by 3 groups

1. Personal factor 2. Group factor 3. Organizational factor

HRM Process

1. What laws and regulations shape the HRM practices? (legal environment) 2. What are my HRM needs? (HR Planning) 3. Where can I find qualified job candidates? (Recruit Processes) 4. How can I choose the best? (Selection techniques) 5. How can I ensure employee skills are current? (training) 6. Best way to evaluate an employee's performance (PA) 7. What options exist to handle over-staffing? (Decruitment process)

Why has Entrepreneurship Increased in Popularity?

1. downsizing of large corporations 2. crossovers to small businesses by former large business employees 3. increased options in franchising 4. the emergence of E-commerce 5. increased entrepreneurial opportunities for minorities and women 6. better survival rates for small businesses 7. technological advances 8. Economic freedom 9. Social Entrepreneurship: people interested in resolving social/economic issues (i.e. poverty, pollution, etc.)

Percentage of how many new businesses fail and within how long?

60 to 80 percent of all new businesses fail within their first 5 years of operation

locus of control

A belief about the amount of control a person has over situations in their life.

Equal Employment Opportunity Commission

A federal agency charged with enforcing Title VII as well as several other EEO laws such as the Age Discrimination Act, the ADA, the Equal Pay Act and the Pregnancy Discrimination Act. The EEOC handles employee claims of discrimination and implementing new anti-discrimination laws.

self-efficacy

A person's belief about his/her capabilityto perform a task. Very task-specific personality trait (not the same as self-esteem, which is much more general)

Extraversion

A person's comfort level in social situations

What is the Proactive Personality Scale?

An instrument that research has proven to be a very accurate way of measuring a person's likelihood of becoming an entrepreneur

Content Perspectives on Motivation

Approaches to motivation that try to answer the question, "What factors in the workplace motivate people?"

How old are most Entrepreneurs?

Between 22 and 45 years old. With age comes experience

3 attribution factors

Consensus, Consistency, Distinctiveness

Bona Fide Occupational Qualification (BFOQ)

Criteria for employment that can be clearly justified as being related to a person's capacity to perform a job. needs to be criteria related to the job.

What is a business plan?

Describes the direction for a new business and the financing needed to operate it. A hybrid document; part pragmatic (feasibility study) and part sales tool (to secure financial resources). A clear, concise, realistic (especially for the financial projection) and detailed (especially the market and competitive research)

The Role of Entrepreneurship in our Society

Employ some 55 percent of private workers Receive 35 percent of federal government contract dollars Provide as many as 6 out of every 10 new jobs in the economy (Management by Schermerhorn, 12th Edition, pg. 144)

Goal Setting Theory

Employees will be motivated by goals that have 4 characteristics: Difficulty, Specificity, Acceptance, and Commitment

Equity Financing

Exchanging ownership for outside investment monies (e.g. venture capital firm). Don't have to pay them back because they have become co-owners

Reinforcement Theory

Explains the role of rewards as they cause behavior to change or remain the same over time

True or False: Money is the key to entrepreneurial success.

False. Many started with very little money

True or False: High levels of job satisfaction lead to high job performance

False. high levels of job satisfaction DO NOT necessarily lead to high job performance

True or False: You have to have a degree in Business to be an Entrepreneur.

False. knowledge helps, but it's not a pre-requisite.

True or False: Entrepreneurs are born, not made.

False. talent + experience gained = success

True or False: Entrepreneurs are gamblers.

False. they only take calculated, moderate risks

Equity Theory

Individuals equate value of rewards to effort and compare it to other people

Selection

Involves gathering and assessing information about job candidates and making decisions about whom to hire

Negative part of starting a business from scratch

More risk and uncertainty

Benefits of buying an existing business

Odds of success are better: - The business has a proven ability to draw in customers and make profit - Networks (e.g. customers and suppliers) are already established

5 parts if writing a business plan

Part 1: Description of the business Part 2: Marketing Plan Part 3: Production/Operations Plan Part 4: Management Plan Part 5: Financial Plan

Machialvellianism

Personality traits involving the willingness to manipulate others for one's own purpose. Behavior directed at gaining power and controlling the behavior of others. it is a personality type oriented toward manipulation and control with low sensitivity to the needs of others. research shows that there is no connection between this and marital status or intelligence; men are more machiavellian than women; younger people more mach. than older people; business students more mach. than others 😣

selective perception

Screening out information that causes discomfort or that contradicts his/her beliefs

Replacement Chart

Succession Plan; a database of managerial positions, who occupy them now, how long they will probably stay and who is or soon will be qualified to move into these positions

Conscientiousness

The ability to follow through, be detail-oriented and self-disciplined. It is a measure of reliability (the ONLY dimension to be positively correlated with performance for all occupations).

external locus of control

The belief that one's fate is outside his/her control

Recruitment Process

The process of attracting the right people to apply for jobs in an organization. It can be done externally by recruiting candidates who are not part of the organization, or internally by promoting existing employees into new positions within the organization

Human Resource Management

The process of attracting, developing, and retaining an effective workforce.

effective communication

The process of sending a message in such a way that the message received is as close in meaning as possible to the message intended

Communication

The process of transmitting information from one person to another

Alderfer's ERG Theory

The theory that three universal needs—for existence, relatedness, and growth—constitute a hierarchy of needs and motivate behavior. Alderfer proposed that needs at more than one level can be motivational at the same time.

Personal resources for financing a new business

Using your own money and money borrowed from friends/family

Distinctiveness

When a person behaves the same in other situations. Example: if he/she is late to everything it's internal, if not, high distinctiveness; external factor

Consistency

When a person similarly behaves in the same situations overtime. If behavior is consistent, then it's internal, if not then it's external. Example: when a person is consistently late it's internal (something going on with the person), if it's inconsistent for him/her to be late, it's an external factor like bad road conditions

HR planning

When management ensures that it has the right number and mix of workers needed to meet the organizational goals.

Initial Public Offering (IPO)

When shares of stock in the business are first sold to the public and then begin trading on a major stock exchange

Process Perspectives on Motivation

Why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals

Employee Information System (Skills Inventory)Co

a database of employees' education, skills, work experience, and career expectation that is used to identify individuals who are ready for a promotion or a transfer; usually computerized.

collective bargaining

a group process of negotiating work-related issues with the anticipation of coming to an agreement. Bargaining or negotiating is done between 2 parties: the employer and the employees.

openess to new experience

a person's range of interests and reaction to change, uncertainty and the unknown

Attitude

a predisposition to react in a certain way towards people and things in a certain way

Organizational Commitment

an attitude that reflects an individual's identification with and attachment to an organization

Job Satisfaction/Dissatisfaction

an attitude that reflects the extent to which an individual is gratified by or fulfilled by his/her work

Agreeableness

an individual's propensity to get along with others, to go along without complaining

Stereotyping

categorizing or labeling on the basis of a single attribute (like race for example)

Specificity

clarity and precision of the goal

Growth Needs (ERG)

desires for continued personal growth and development

relatedness needs

desires for good interpersonal relationships

existence needs

desires for physiological and material well-being

Behavioral Interview

explore what applicants have actually done in the past

commitment

extent to which an individual is personally interested in reaching a goal

Acceptance

extent to which persons accept a goal as their own

Occupational Safety and Health Administration (OSHA)

federal agency which regulates the safety of workers from job-related accidents and diseases

Situational interview

focuses on hypothetical situations and asses how the candidate reacts to them

Debt Financing

funds raised through various forms of borrowing that must be repaid (e.g. loan from a bank)

3 expectancy factors

i. Effort to performance expectancy or expectancy ii. (E) is the probability that effort will lead to performance iii. Performance to outcome expectancy or Instrumentality(I) is the perception that performance leads to an outcome. Outcome is the consequence or reward for performance. iv. Attractiveness or valence(V) is how much a particular outcome/reward is valued. M = E•I•V; A zero at any part of this equation will result in zero motivation

structured interview

involves asking each applicant the same questions and comparing their responses to a standardized set of answers

unstructured interview

involves asking probing questions in a free-flowing style to find out what the applicant is like

Expectancy Theory

motivation depends on how much we want something and how likely we are to get it

Negative part of buying an existing business

new owners inherit the business's existing problems

Adverse Impact

occurs when minority group members pass a required selection standard at a rate of less than 80% of the majority group.

Selection Techniques

reliability and validation

Job Forecasting Tools

replacement chart (succession plan), employee information system (skills inventory)

progression principle

states that a need isn't activated until the next lower-level need is satisfied

deficit principle

states that a satisfied need no longer motivates behavior

positive reinforcement

strengthens a behavior by providing a desirable consequence

Avoidance (negative reinforcement)

strengthens behavior by allowing escape from an undesirable consequence

Emotional Stability

taps a person's general mood and emotional state as well as a person's ability to withstand stress. Ability to control emotions such as anger, anxiety, depression; impulse control

internal locus of control

the belief that you control your own destiny

Difficulty

the extent to which a goal is challenging and requires effort

Authoritarianism

the extent to which a person believes that power and status differences are appropriate within hierarchical social systems such as organizations

Validity

the extent to which a selection device is really predictive of future job performance. There is a proven relationship between the selection device used and some relevant job performance measure.

Reliability

the extent to which a selection device measures the same characteristic consistently

Self-Esteem

the extent to which an individual believes he/she is a worthwhile individual

person-job fit

the extent to which the contributions made by the individual match the inducements offered by the organization

Psychological Contract

the overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return. It is an exchange defined in terms of contributions and inducements.

The Motivation Process

the process of moving from need to motive to behavior to consequence to satisfaction or dissatisfaction

Entrepreneurship

the process of starting a new venture, organizing and managing, and assuming the risks and awards

Perception

the process through which people receive, organize, and interpret information from the environment

Personality

the relatively stable set of psychological and behavioral attributes that distinguish one person from another

Motivation and its relationship with Performance

the set of forces within an individual that account for the level, direction, and persistence of effort spent at work; the intensity of a person's desire to engage in some activity. Leads to an effort which when combined with the ability needed to do the job and the resources needed, results in performance.

Punishment

weakens behavior by providing an undesirable consequence

Extinction

weakens or eliminates behavior by not providing a desirable consequence; can also weaken a behavior by ignoring behavior in hopes of it going away over time, or by removing any reinforcement that's maintaining the behavior

consensus

when others in the same situation behave the same. Then you can say the behavior shows consensus and its attribution is external. example: everyone's late because of a car accident or bad road conditions

attribution theory

when we observe behavior and attribute a cause to it (external or internal)