MGT 300 - EXAM 1 - TERHEIDE @ BSU

First-line Manager

1. AKA supervisors 2. Responsible for the daily supervision of the nonmanagerial employees

Top Managers

1. Responsible for the performance of all departments 2. Establish organizational goals 3. Decide how different departments should interact 4. Monitor how well middle managers in each department use resources to achieve goals 5. President of a university

Middle Managers

1. Supervises first-line managers 2. Responsible for finding the best way to use resources to achieve organizational goals 3. HS principal or a marketing manager

Henri Fayol's Principles of Management

14 principles that describe how management should be conducted.

Attraction Selection Attrition Framework

A model that explains how personality may influence organizational culture.

Procedural Justice

A moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members. Using procedural means to determine raises, promotions, layoffs. Procedural is not always fair. Rules are rules and laws are laws. Some people may get away with things but others will not.

Closed System

A system that is self-contained and thus not affected by changes occurring in its external environment.

Open System

A system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers.

Equity

All organizational members are entitled to be treated with justice and respect.

Unity of Command

An employee should receive orders from only one superior.

Practical Rule

An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable.

Justice Rule

An ethical decision should distribute benefits and harm among people in a fair, equitable and impartial manner.

Moral Rights Rule

An ethical decision should maintain and protect the fundamental rights and privileges of people.

Utilitarian Rule

An ethical decision should produce the greatest good for the greatest number of people.

Hostile Work Environment

Anything else. Raunchy jokes. Inappropriate touching and looks.

Leading

Articulating a clear vision and energizing and enabling organizational members so they understand the part they play in achieving organizational goals. (An organization's vision is a short, succinct, and inspiring statement of the organization's future state.) Involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups.

Centralization

Authority should not be concentrated at the top of the chain of command.

Theory X

Average employee is lazy, dislikes work, and will try to do as little as possible. To ensure that employees work hard, managers should closely supervise employees. Managers should create strict work rules and implement a well-defined system of rewards and punishments to control employees.

Organizational Citizenship Behaviors

Behaviors that are not required of organizational members but that contribute to and are necessary for organizational efficiency, effectiveness, and competitive advantage.

Organization

Collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes.

Proactive

Companies and their managers actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and using organizational resources to promote the interests of all stakeholders.

Defensive

Companies and their managers behave ethically to the degree that they stay within the law and strictly abide by legal requirements.

Accommodative

Companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises.

Obstructionist

Companies and their managers choose not to behave in a socially responsible way and instead behave unethically and illegally.

Follet

Concerned that Taylor igored the human side of the organization. Suggested workers help in analyzing their jobs. Suggested if workers have relevant knowledge of the take, they should be in control of the work progress.

Management Science Theory

Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

Planning

Deciding which goals the organization will pursue, what strategies to adopt to attain those goals, and how to allocate organizational resources.

Mintzberg

Decisional, Interpersonal, Informational

Max Weber

Developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.

Theory Y

Employees are not inherently lazy. Given the chance, employees will do what is good for the organization. To allow employees to work in the organization's interest, managers must create a work setting that provides opportunities for workers to exercise initiative and self-direction. Managers should decentralize authority to employees and make sure employees have the resources necessary to achieve organizational goals.

Subordination of Individual Interests to the Common Interests

Employees should understand how their performance affects the performance of the whole organization.

Decisional

Entrepreneur, disturbance handler, resource allocator, negotiator

Controlling

Evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness.

Principle 4

Exercised effectively

Suppliers

Expect to be paid fairly and promptly for their inputs.

Distributors

Expect to receive quality products at agreed-upon prices.

Employees

Expect to receive rewards consistent with their performance.

Characteristics of Managers

Extraversion, Negative Affectivity, Agreeableness, Conscientiousness, Openness to Experience

Interpersonal

Figurehead, leader, liaison

Principle 1

Formal authority

Rules

Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals (if "A" happens, then do "B")

Management Information Systems

Give managers information about events occurring inside the organization as well as in its external environment - information that is vital for effective decision making.

Operations Management

Gives managers a set of techniques they can use to analyze any aspect of an organization's production system to increase efficiency.

Quid Pro Quo

It is an exchange. If you do something for me, I will do something for you. Raise for something sexual, etc.

Division of Labor

Job specialization and the division of labor should increase efficiency, especially if managers take steps to lessen workers' boredom.

Stability of Tenure of Personnel

Long-term employees develop skills that can improve organizational efficiency.

Authority and Responsibility

Managers have the right to give orders and the power to exhort subordinates for obedience.

Discipline

Managers need to create a workforce that strives to achieve organizational goals.

Initiative

Managers should allow employees to be innovative and creative.

Espirit de Corps

Managers should encourage the development of shared feelings of camaraderie, enthusiasm, or devotion to a common cause.

Informational

Monitor, disseminator, spokesperson

Distributive Justice

Moral principle calling for fair distribution of pay, promotions, and other organizational resources based on meaningful contributions that individuals have made and not on personal characteristics over which they have no control. Did everyone do what they were supposed to do? Did the ones who got pay raises, work to earn that raise? This kind of justice is all about fairness.

Customers

Most critical stakeholder. Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones.

McCleland

Need for achievement, affiliation and power.

Approaches to Social Responsibility

Obstructionist, Defensive, Accommodative, and Proactive

Decentralization

Organizations seek to empower middle managers and create self-managed teams that monitor and control their own activities, both to increase organizational flexibility and to reduce operating costs and increase efficiency.

Outsourcing

Outside of your continental border. Also known as offshoring.

CEO

Owner

Stakeholders

People invested into a company: stockholders, managers, customers, community, suppliers and distributors, and employees.

Principle 2

Performance - it is not always accurate!

Community

Physical locations like towns or cities in which companies are located. Provides a company with the physical and social infrastructure that allows it to operate. A company contributes to the economy of the town or region through salaries, wages and taxes.

Types of Sexual Harassment

Quid Pro Quo and Hostile Work Environment

Managers

Responsible for using a company's financial capital and human resources to increase its performance.

Stereotypes

Simplistic and often inaccurate belief about the typical characteristics of particular groups of people.

Standard Operating Procedures (SOPs)

Specific sets of written instructions about how to perform a certain aspect of a task (which parts of a machine must be oiled or replaced.)

Principle 3

Specified by the organization where everyone works.

Organizing

Structuring working relationships so organizational members interact and cooperate to achieve organizational goals. A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals.

Biases

Systematic tendency to use information about others in ways that result in inaccurate perceptions.

Introversion

Tend to be less inclined toward social interactions and to have a less positive outlook.

Conscientiousness

Tendency to be careful, scrupulous, and persevering. Organized and self-disciplined.

Openness to Experience

Tendency to be original, have broad interests, be open to a wide range of stimuli, be daring, and take risks. Innovative in their planning and decision making.

Negative Affectivity

Tendency to experience negative emotions and moods, feel distressed, and be critical and dissatisfied and complain about their own and others' lack of progress. Tend to experience negative emotions and moods and are pessimistic and critical of themselves and others.

Extraversion

Tendency to experience positive emotions and moods and to feel good about oneself and the rest of the world. Tend to be sociable, affectionate, outgoing and friendly.

Agreeableness

Tendency to get along well with others. They are likable, tend to be affectionate, and care about other people.

Layoffs

Termination of employees for economic or business reasons.

Emotional Intelligence

The ability to understand and manage one's own moods and emotions and the moods and emotions of other people

Order

The arrangement of organizational positions should maximize organizational efficiency and provide employees with satisfying career opportunities.

Reputation

The esteem or high repute that individuals or organizations gain when they behave ethically.

Hawthorne Effect

The finding that a manager's behavior or leadership approach can affect works' level of performance.

Ethics

The inner guiding moral principles, values and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave. There are no absolute or indisputable rules or principles that can be developed to decide if an action is ethical or unethical. Neither laws nor ethics are fixed principles.

Line of Authority

The length of the chain of command that extends from the top to the bottom of an organization should be limited.

Unity of Direction

The organization should have a single plan of action to guide managers and workers.

Authority

The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

Job Specialization

The process by which a division of labor occurs as different workers specialize in different tasks over time.

Organizational Socialization

The process by which newcomers learn an organization's values and norms and acquire the work behaviors necessary to perform jobs effectively.

Perceptions

The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them.

Organizational Environment Theory

The set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources.

Organizational Culture

The shared set of beliefs, expectations, values, norms, and work routines that influence how individuals, groups, and teams interact with one another and cooperate to achieve organizational goals.

Behavioral Management Theory

The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.

Administrative Management Theory

The study of how to create an organizational structure and control system that leads to high efficiency and effectiveness.

Remuneration of Personnel

The system that managers use to reward employees should be equitable for both employees and the organization.

Scientific Management Theory

The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency.

External Locus of Control

The tendency to locate responsibility for one's fate in outside forces and to believe one's own behavior has little impact on outcomes.

Internal Locus of Control

The tendency to locate responsibility for one's fate within oneself.

Trust

The willingness of one person or group to have faith or confidence in the goodwill of another person, even though this puts them at risk.

Principle 5

There is rules

Norms

Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or an organization (restaurant waiters should help each other if time permits.)

Sources of Ethics

Utilitarian Rule, Moral Rights Rule, Practical Rule, and Justice Rule

Quantitative Management

Utilizes mathematical techniques, like linear programming, modeling, simulation, and chaos theory.

Stockholders

Want to ensure that managers are behaving ethically and not risking investors' capital by engaging in actions that could hurt the company's reputation. Want to minimize their return on investment.