MANA 3335 - Exam 1 Review

Top Manager Jobs

* CEO (chief executive officer) * COO (chief operating officer) * CFO (chief financial officer) * CIO (chief information officer) * Vice president * Corporate heads

Top Managers - Responsibilities

* Creating a context for change (includes forming a long-range vision or mission for the company) * to develop employee's commitment to and ownership of the company's performance (creating employee buy-in) * Must create a positive organizational culture through language and action * Monitoring their business environments

Organizational Culture

the values, beliefs, and attitudes shared by organizational members

Punctuated Equilibrium Theory

theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium

First-Line Managers

train and supervise the performance of nonmanagerial employees who are directly responsible for producing the company's products or services. Example: These are the managers employees turn to when a machines breaks or when priorities have to be clarified, so they need to have good technical skills.

Characteristics of External Environments:

• Environmental Change • Environmental Complexity • Resource Scarcity • Uncertainty

Organizing Example

A marketing manager at Evian decides to work with BETC Euro RSCG, an advertising agency in France. The goal is to reduce the cost of advertising by creating a video that goes viral on YouTube. What function of management?

Competitive Advantage through People

Employment Security - Employees can innovate and increase the profitability of an organization without the fear of losing their job. Selective Hiring - Companies need to hire the best talent due to the presence of employment security. Self-Managed Teams - Produce high productivity through increased employee commitment and creativity. Decentralization - Allows employees closest to problems, production, and clients to make timely decisions. High Wages Contingent on Organizational Performance - High remuneration helps an organization attract talented employees and retain existing employees. High wages indicates that the organization values its employees. Training and Skill Development - Companies need to invest resources in the training employees to ensure skill development Reduction of Status Differences - Leads to employees concentrating on work related issues rather than biases and prejudices of the management Sharing Information - Helps employees participate in the decision-making process

Decisional Roles

Entrepreneur role Disturbance handler role Resource allocator role Negotiator role Example: GE CEO, Jeff Immelt, makes a tough choice to sell NBCUniversal to Comcast.

Environmental Change

Environmental change - rate at which a company's general and specific environments change. - Stable Environments - Dynamic Environments

Specific Environment: Customers Example

Example of customer component: Keany Produce Co., a family-run produce farm in Maryland, provides organic greens and vegetables to Sweetgreen, a salad restaurant. Sweetgreen requires sustainable raw ingredients. For Keany, Sweetgreen impacts the customer component of its specific environment.

Specific Environment: Suppliers Example

Example of supplier component: After British Petroleum's (BP) 2010 oil spill, BP required that vendors meet its qualification criteria, which include environmental and ethical standards. This impacts the supplier component of BP's specific environment.

Interpersonal Roles

Figurehead role Leader role Liaison role Example: Once a month, the CEO presents a plaque to employees who are celebrating a work anniversary.

Planning Example

Taco Bell CEO, Brian Niccol, considers what the technical and logistical needs would be in order to offer delivery to customers. What function of management?

Management Skills - What are the 5 skills?

Technical, Human, Conceptual, Motivation to Manage

Dynamic Environments

rate of environmental change is fast

Stable Environments

rate of environmental change is slow

Specific Environment: Industry Regulation

regulation and rules that govern the business practices and procedures of specific industries, businesses, and professions

Middle Managers

responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving these objectives. Example: Project managers and others who bring people together from various parts of the organization to perform a task are in this layer of management.

Environmental Scanning

searching the environment for important events or issues that might affect an organization

Business Confidence Indices

show how confident actual managers are about future business growth

Technical Skills

specialized procedures, techniques, and knowledge required to get the job done

Proactive monitoring of customers

identifying and addressing customer needs, trends, and issues before they occur.

Reactive customer monitoring

identifying and addressing customer trends and problems after they occur.

Leading

inspiring and motivating workers to work hard to achieve organizational goals

First-Line Manager - Responsibilities

* Encourage, monitor, and reward the performance of their workers * Teaching entry-level employees how to do their jobs * Make detailed schedules and operating plans based on middle management's intermediate-range plans (6-18 months out) - first-line managers engage in plans and actions that typically produce results within two weeks. * Facilitation * Manager looks 7-10 days ahead for hiring needs

Middle Manager Jobs

* General manager * Plant manager * Regional manager * Divisional manager

Team Leader - Responsibilities

* Helps team members plan and schedule work, learn to solve problems, and work effectively with each other * Facilitation * Managing external and internal relationships * Team leaders act as the bridge or liaison between their teams and other teams, departments, and divisions in a company

First-Line Manager Jobs

* Office manager * Shift supervisor * Department manager

Middle Manager - Responsibilities

* Plan and allocate resources to meet objectives * Coordinating and linking groups, departments, and divisions within a company * Monitor and manage the performance of the subunits and individual managers who report to them * Implementing the changes or strategies generated by top managers

Team Leader Jobs

* Team leader * Team contact * Group facilitator

General Environment: Political/Legal

- Legislation, regulations, and court decisions that govern and regulate business behavior - Managers must be aware of the laws, regulations, and potential lawsuits that could affect their business

General Environment: Sociocultural

- Refers to the demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society. - Changes in demographic characteristics affect how companies staff their businesses -Changes in behavior, attitudes, and beliefs affect the demand for a business's products and services

Top 10 Mistakes Managers Make

1. Insensitive to others: abrasive, intimidating, bullying style 2. Cold, aloof, arrogant 3. Betray trust 4. Overly ambitious: thinking of next job, playing politics 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor

Organizing Example

A construction project manager from Iron Horse Construction uses a team of experts to design the development of a new property on the top of a very steep ridge. The team includes geotechnical consultants, erosion control specialists, and contractors. What function of management?

Three step process employed by managers:

A) Environmental scanning - Searching the environment for important events or issues that might affect an organization B) Interpreting environmental factors -- Managers determine what environmental events and issues mean to the organization -- Interpreting them as threats or opportunities? C) Acting on threats and opportunities -- Cognitive maps - graphic depictions of how managers believe environmental factors relate to possible organizational actions -- Map consists of: Environmental factors, Potential strategies, Company strengths and weaknesses

Controlling Example

At IBM's Almaden Research Lab, Laura Haas allows scientists a free rein for research but still checks to be sure that their inventions are adding to the company's bottom line. What function of management?

Planning Example

Author Simon Rich spends time every day reading. He says, "I try to read about subjects that I'm interested in, and that usually helps me come up with ideas for stories and characters and jokes." What function of management?

General Environment - Economic Example

BP stock prices falling 25% during the first month after the oil spill

Specific Environment: Customers

Customers purchase products and services. Companies cannot exist without customer support. Two basic strategies for monitoring customers: - Reactive customer monitoring - Proactive monitoring of customers

Leading Example

Demetrius has a weekly meeting with his sales staff to review their performance and offer suggestions and strategies for their upcoming sales appointments. Demetrius is ____ his employees to help them achieve their goals. What function of management?

Controlling Example

Dow Chemical CEO, Andrew Liveris, checks financial reports to see whether Dow has met its financial goals for the quarter What function of management?

Leading Example

Gary Kelly, CEO of Southwest Airlines, talks to a group of reservation agents to acknowledge their contributions to the company's success. What function of management?

Leading Example

George Steinbrenner transferred his passion for winning to everyone in the New York Yankees organization. His famous quote is, "Winning is the most important thing in my life, after breathing. Breathing first, winning next." What function of management?

Managerial Roles

Interpersonal, Informational, Decisional

Controlling Example

Jessica Lee, director of global employer brand and communications at Marriott International, realizes the mobile app created by a vendor does not integrate with the company's existing software. What function of management?

Controlling Example

Lucia has a discussion with three of her employees who have been taking extended lunch breaks for several weeks. She is using ____ to explain the company's lunch policy and communicate her expectations of her employees moving forward. What function of management?

Informational Roles

Monitor role Disseminator role Spokesperson role Example: The CFO of the organization creates a short video that is emailed to employees. The video details the company's earnings for the last quarter.

General Environment - Sociocultural Example

People moving from Louisiana to Oklahoma to avoid the effects of the spill

Planning Example

Pfizer's CEO, Ian Read, works with the board of directors to predict the amount of dividends the company will pay in the future. What function of management?

The Four functions of Management

Planning, Organizing, Leading, Controlling

General Environment - Technical Example

Using deep-sea submersibles to take pictures of the oil leak a mile below the surface of the water

Organizing Example

Wesley's company just began offering online ordering for their products. Wesley uses ____ to delegate tasks to each department that is affected. What function of management?

Static/Shrinking Economy

consumers have less money to spend and relatively fewer products are bought and sold.

Opportunistic Behavior

a transaction in which one party in the relationship benefits at the expense of another Example: Wal-Mart--the largest retailer in the world--is well-known for its everyday low prices. The store carries a Vlasic gallon-jar of pickles for just $2.97. When Vlasic approached Wal-Mart to raise the price of the jar to help Vlasic on its profits, Wal-Mart refused and threatened that another manufacturer could easily take their place.

Conceptual Skills

ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment Example: Deshane is reviewing blueprints for his company's latest building as he plans a long-term strategy for where the company should build in the next ten years. Deshane is using conceptual skills to complete this task.

Human Skills

ability to work well with others Managers with _____ skills work effectively within groups, encourage others to express their thoughts and feelings, are sensitive to others' needs and viewpoints, and are good listeners and communicators

Resource Scarcity

abundance or shortage of critical organizational resources in an external environment

Effectiveness

accomplishing tasks that help fulfill organizational objectives

Media Advocacy [Advocacy Group]

an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage

Product boycott [Advocacy Group]

an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

Public Communications [Advocacy Group]

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out

Motivation to Manage

an assessment of how enthusiastic employees are about managing the work of others i.e. How motivated employees are to interact with supervisors, participate in competitive situations, behave assertively towards others, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks.

Specific Environment: Competitors

are companies in the same industry that sell similar products or services to customers

External Environments

are the forces and events outside a company that have the potential to influence or affect it

Specific Environment: Suppliers

companies that provide material, human, financial, and informational resources to other companies

Specific Environment: Advocacy Groups

concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions

General Environment

consists of the economy and the technological, sociocultural, and political/legal trends that indirectly affect all organizations.

Organizing

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom.

Planning

determining organizational goals and a means for achieving them.

Simple Environment

environment with few environmental factors

Complex Environment

environment with many environmental factors

Top Managers

executives responsible for the overall direction of the organization Example: These managers must make plans for the long-term future of the organization.

Uncertainty

extent to which managers can understand or predict which environmental changes and trends will affect their businesses

Management

getting work done through others

Efficiency

getting work done with a minimum of effort, expense, or waste

Cognitive Map

graphic depictions of how managers believe environmental factors relate to possible organizational actions

Competitive analysis

involves deciding who your competitors are, anticipating competitors moves, determining competitors' strengths and weaknesses -Companies need to keep close track of what their competitors are doing.

Entrepreneur Role

managers adapt themselves, their subordinates, and their units to change

Liaison Role

managers deal with people outside their units

Resource Allocator Role

managers decide who will get what resources and how many resources they will get (in what amounts)

Leader Role

managers motivate and encourage workers to accomplish organizational objectives

Negotiator role

managers negotiate schedules, projects, goals, outcomes, resources, and employee raises

Figurehead Role

managers perform ceremonial duties Such as, greeting company visitors, speaking at opening of a new facility, representing the company at a community luncheon to support local charities

Disturbance Handler Role

managers respond to pressures and problems so severe that they demand immediate attention and action

Team Leaders

managers responsible for facilitating team activities toward goal accomplishment

Monitor Role

managers scan their environment for information, actively contact others for information, and, because of their personal contacts, receive a great deal of unsolicited information

Disseminator Role

managers share information with others in their departments or companies

Spokesperson Role

managers share information with people outside their departments or companies Example: CEOs serve as ____ for their companies at annual meetings with company shareholders or the board of directors

Arrivers

managers who made it all the way to the top of their companies Usually had no more than one fatal flaw or had found ways to minimize the effects of their flaws on the people with whom they worked

Derailers

managers who were successful early in their careers but were knocked off the fast track by the time they reached the middle to upper levels of management Possessed two or more fatal flaws with respect to the way they managed people

Controlling

monitoring progress toward goal achievement and taking corrective action when needed

General Environment: Economy

more people are working, and wages are growing, and therefore consumers have relatively more money to spend. More products are bought and sold in a growing economy.

Specific Environment

the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business.

Supplier Dependence

the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product Example: Chinese mining companies supply 97% of the rare-earth materials used in manufacturing television screens. When China announced a decrease in exports of rare-earth materials, Hitachi, a Japanese company, was concerned about a shortage of materials.

Buyer Dependence

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products

Relationship Behavior

the establishment of mutually beneficial, long-term exchanges between buyers and suppliers

Internal Environment

the events and trends inside an organization that affect management, employees, and organizational culture

General Environment: Technology

the knowledge, tools, and techniques used to transform inputs into outputs - Changes in ____ can help companies provide better products or produce their products more efficiently. - Companies should use new ____ effectively to improve their products and services.

Environmental Complexity

the number and the intensity or external factors in the environment that affect the organizations - Simple environment & Complex environment