Chapter 14: Management

Herzberg's Categories

Motivation-strong contributor to job satisfaction. Hygiene-not strong contributors to satisfaction but must be present to meet expectations/prevent job dissatisfaction.

What are the 3 leadership styles?

autocratic (Leaders who hoard decision-making power for themselves and typically issue orders without consulting their followers.) democratic (Leaders who share power with their followers. While they still make final decisions, they typically solicit and incorporate input from their followers.) free-rein (Leaders who set objectives for their followers but give them freedom to choose how they will accomplish those goals.)

According to Maslow's hierarchy of needs, which of the following is a workplace example that is most likely to satisfy the esteem needs of an employee? a. A positive corporate culture b. A promotion c. An insurance policy d. A department outing

b. A promotion

Identify the theory of motivation that primarily deals with the relationship among individual effort, individual performance, and individual reward.

Expectancy theory

What does controlling mean?

Monitoring performance of the firm—or individuals within the firm—and making improvements when necessary. As the environment changes, plans change. And as plans change, the control process must change to ensure that the company achieves its goals.

Organization Models

line organizations (Organizations with a clear, simple chain of command from top to bottom.) line-and-staff-organizations (Organizations with line managers forming the primary chain of authority in the company, and staff departments working alongside line departments.) matrix organizations (Organizations with a flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis.)

The ... of an organization defines the organization's purpose, values, and core goals, providing the framework for all other plans.

mission

organization chart

A visual representation of the company's formal structure.

What are the 3 main steps of the control process?

1. Establish clear performance standards. 2. Measure actual performance against standards. 3. Take corrective action if necessary.

SWOT analysis

A strategic planning tool that helps management evaluate an organization in terms of internal strengths and weakness, and external opportunities and threats.

Maslow's Hierarchy of Needs

A motivation theory suggests that human needs fall into a hierarchy and that as each need is met, people become motivated to meet the next-highest need in the pyramid. Satisfy lower-level needs before seeking to satisfy higher-level. once need satisfied no longer motivates; next higher need takes its place. Not all employees driven by the same needs. Needs that motivate individuals can change over time. Self-actualization, Safety, Social(belonging), Esteem, and Psychological.

expectancy theory

A motivation theory that concerns the relationship among individual effort, individual performance, and individual reward. Effort->Performance->Reward

equity theory

A motivation theory that proposes that perceptions of fairness directly affect worker motivation.

Theory X and Theory Y

A motivation theory that suggests that management attitudes toward workers fall into two opposing categories based on management assumptions about worker capabilities and values.

middle management

Managers who supervise lower-level managers and report to a higher-level manager.

strategies

Action plans that help the organization achieve its goals by forging the best fit between the firm and the environment. Evaluating results and incorporating lessons learned.

strategic goals

Concrete benchmarks that managers can use to measure performance in each key area of the organization. Specific and manageable, time-bound, and realistic but challenging.

line managers

Managers who supervise the functions that contribute directly to profitability: production and marketing.

staff managers

Managers who supervise the functions that provide advice and assistance to the line departments.

motivation

Internally generated drive to achieve a goal or follow a particular course of action.

Two-Factory Theory

Job dissatisfaction High/Low (Hygiene Factors) Quality of supervision, pay, company policies, physical working conditions, relations with others, and job security. Job satisfaction High/Low (Motivation Factors) Promotion opportunities, opportunities for personal growth, recognition, responsibility, and achievement

first-line (supervisory) management

Managers who directly supervise non-management employees.

top management

Managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources.

span of control

Span of management; refers to the number of people a manager supervises.

job enrichment

The creation of jobs with more meaningful content, under the assumption that challenging, creative work will motivate employees. Factors: skill variety, task identity, and significance, autonomy, and feedback.

mission

The definition of an organization's purpose, values, and core goals, which provides the framework for all other plans.

departmentalization

The division of workers into logical groups. Based on function, product, customer, geography, or process.

degree of centralization

The extent to which decision-making power is held by a small number of people at the top of the organization.

What are the characteristics of an effective business leader?

They motivate others to achieve the goals of their organization. True leaders are trustworthy, visionary, and inspiring. Other key leadership traits include empathy, courage, creativity, intelligence, fairness, and energy.

What does the organizing function of management mean?

To create a logical structure for people, their jobs, and their patterns of interaction. Management must consider many different factors, including the goals and strategies of the firm, its products, its size, make decisions about the degree of centralization, the span of management control, and the type of departmentalization.

Theory Y assumptions about workers

Work is as natural as play or rest-workers do not inherently dislike it. Different rewards can be motivating-people can exercise self-direction and self-control to meet company goals. People can accept and even seek responsibility. The capacity for imagination, creativity, and ingenuity is widely distributed in the population. The intellectual capacity of the average worker is underutilized in the workplace

Theory X assumptions about workers

Workers dislike work and will do everything they can to avoid it. Fear is motivating, coercion and threats are vital to get people to work toward company goals. People prefer to be directed, avoiding responsibility and seeking security.

In the context of equity theory, which of the following is the best way to combat equity issues? a. By way of clear, open communication from management b. By demanding a raise c. By way of threatening to go on a strike d. By quitting the job

a. By way of clear, open communication from management

Which of the following statements is true of equity theory? a. It proposes that perceptions of fairness directly affect worker motivation. b. It suggests that human needs fall into a hierarchy that ranges from basic to abstract. c. It suggests that management attitudes toward workers fall into two opposing categories. d. It deals with the relationship among individual effort, individual performance, and individual reward.

a. It proposes that perceptions of fairness directly affect worker motivation.

Which of the following is a motivation theory that suggests that management attitudes toward workers fall into two opposing categories based on management assumptions about worker capabilities and values? a. McGregor's Theory X and Theory Y b. Maslow's hierarchy of needs theory c. The two-factor theory d. Equity theory

a. McGregor's Theory X and Theory Y

management

achieving the goals of an organization through planning (Determining organizational goals and action plans for how to achieve those goals.) organizing (Determining a structure for both individual jobs and the overall organization.) leading (Directing and motivating people to achieve organizational goals.) controlling( Monitoring performance and making adjustments as needed.) organizational resources including people, money, and time.

Which of the following factors of job enrichment is highlighted when workers complete their assignments with clear beginnings and endings? a. Task significance b. Task identity c. Autonomy d. Skill variety

b. Task identity

The ... of a firm includes managers who directly supervise non-management employees.

first-line management

In the context of management skills, ... refer to the ability to work effectively with and through other individuals in a range of different relationships.

human skills

What are the four main categories of business planning?

strategic planning (High-level, long-term planning that establishes a vision for the company, defines long-term objectives and priorities, determines broad action steps, and allocates resources.), tactical planning (More specific, shorter-term planning that applies strategic plans to specific functional areas.), operational planning (Very specific, short-term planning that applies tactical plans to daily, weekly, and monthly operations.) contingency planning (Planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans.)

In the context of management skills, ... refer to expertise in a specific functional area or department.

technical skills

management skills

technical skills: Expertise in a specific functional area or department. human skills: The ability to work effectively with and through other people in a range of different relationships. conceptual skills: The ability to grasp a big-picture view of the overall organization, the relationships among its various parts, and its fit in the broader competitive environment.