Principles of Management
Bureaucratic Organizations
Bureaucracy: "the exercise of control on the basis of knowledge"- people led by virtue or rational/legal authority - Qualification-based hiring - Merit-based promotion - Chain of Command - Division of Labor - Impartial application of rules and procedures - Recorded in writing - Managers separate from owners
U.S Sentencing Commission
Companies can be prosecuted and punished even if management didn't know about the unethical behavior -Establish: standards and procedures -Assign: upper-level managers to be in charge -Delegate: decision-making authority only to ethical employees -Encourage: employees to report violations -Train: employees on standards and procedures -Enforce: standards consistently and fairly -Improve: program after violations
Constructive Conflict: Mary Parker Follett
Conflict: "the appearance of differences, difference of opinion of interests"
Specific Environment:
Customers Competitors Suppliers Industry regulation Advocacy groups
General Environment:
Economy Technological Sociocultural Political/legal trends Indirectly affect all organizations
Top mistakes that managers make in their jobs:
Insensitive to others: abrasive, intimidating, bullying style Cold, aloof, arrogant Betray trust Overly ambitious: thinking of next job, playing politics Specific performance problems with the business Over managing: unable to delegate or build a team Unable to staff effectively Unable to think strategically Unable to adapt to boss with different style Over dependent on advocate or mentor
Organizational Cultures:
Internal environments: consist of the trends and events within an organization that affect the management, employees, and organizational culture. Internal environments are important because they affect what people think, feel, and do at work. The key component in internal environments is organizational culture, or the set of key values, beliefs, and attitudes shared by members of the organization.
Describe what management is:
Management is getting work done through others. How we plan to get things done, organize the company to be efficient and effective, lead and motivate employees, and put controls in place to make sure our plans are followed and our goals are met.
Administrative Management: Henri Fayol
-"the success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability" - Fayol's Principles of ~Management ~Division of work ~Authority and responsibility ~Discipline ~Unity of command ~Unity of direction ~Subordination of individual interests to the general interest ~Remuneration ~Centralization ~Scalar chain ~Order ~Equity ~Stability of tenure of personnel ~Initiative ~Esprit de corps
Successful Organizational Cultures:
-Consistency -Adaptability -Clear Mission -Employee Involvement
Operations Management:
-Eli Whitney: interchangeable parts -Garspard Monge: techniques for drawing 3-D objects on paper -Oldsmobile Motor Works: hand-to-mouth inventory
Making sense of changing environments
-Environmental Scanning: involves searching the environment for important events or issues that might affect an organization. Managers scan the environment to stay up to date on important factors in their industry and to reduce uncertainty. They want to know if demand will increase, prices for key components will rise, and whether competitor's sales are rising or falling. -Interpreting Environmental Factors: managers view environmental events and issues as either threats or opportunities -Acting on Threats or Opportunities: impossible to comprehend all factors and changes; managers rely on Cognitive maps-summarize the perceived relationships between environmental factors and possible organizational actions.
Hawthorne Studies: Elton Mayo
-Human factors related to work were found to be more important than physical conditions or design of work -Workers not just extensions of machines, and financial incentives weren't necessarily the most important for motivating workers -Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance.
Basic Model of Ethical Decision Making
-Identify the problem -Identify the constituents (who has been hurt) -Diagnose the situation (how) -Analyze your options -Make your choice -Act.
Cooperation and Acceptance of Authority: Chester Barnard
-Organization: "system of consciously coordinated activities of or forces of two or more persons" -The extent to which people willingly cooperate in the organization depends on how workers perceive executive authority and whether they're willing to accept it
Environmental Complexity
-Simple: few environmental factors affect organizations -Complex: many environmental factors affect organizations
Origins of Management:
-Started in ancient Sumer (modern Iraq)[Sumerians] -Businessmen used small clay tokens to calculate quantities of grain and livestock; later value added goods like perfume or pottery -New technology of "writing" led to more efficient management
Human Relations Management:
-This approach to management focuses on people, particularly the psychological and social aspects of work; doesn't view people as extensions of machines but as valuable organizational resources in their own right
Common kinds of Workplace Deviance
-Workplace deviance: unethical behavior that violates organizational norms about right and wrong. -Production Deviance: hurts the quality and quantity of work produced -Property Deviance: unethical behavior aimed at company property or products Employee shrinkage: when employees steal company merchandise -Political Deviance: using one's influence to harm others in the company Personal aggression
Information Management
Organizations adopt new information technologies to reduce cost or increase speed that they can get information
Four functions of management:
Planning involves determining organizational goals and means for achieving them. Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company. Leading involves inspiring and motivating workers to work hard to achieve organizational goals. Controlling is monitoring progress toward goal achievement and taking corrective action when progress isn't being made; setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance to those standards.
Principles of Ethical Decision Making
Principle of long-term self-interest: you should never take any action that is not in your or your organizations long-term self-interest Principle of religious injunctions: you should never take an action that is unkind or that harms a sense of community, such as the positive feelings that come from working together to accomplish a commonly accepted goal Principles of government requirements: the law represents the minimal moral standards of society, so you should never take any action that violates the law Principles of individual rights: holds that you should never take an action that infringes on others agreed-upon rights Principles of personal virtue: holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV Principle of distributive justice: you should never take any action that harms the least fortunate among us in some way Principle of utilitarian benefits: states that you should never take an action that does not result in greater good for society
Changing Environments affect Organizations
Stable: Slow rate of change Dynamic: Fast rate of change
Contingency Management:
They are no universal management theories. The most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time
What companies look for in managers:
They look for managers to fulfill three major roles while performing their jobs—interpersonal, informational, and decisional, in other words, managers talk to people, gather and give information, and make decisions.
Principles of Scientific Management:
1) Develop a science for each element of a man's' work, which replaces the old rule-of-thumb method 2)Scientifically select and then train, teach, and develop the workman, whereas in the past he chose his own work and trained himself as best he could 3) Heartily cooperate with the men so as to ensure all of the work being done is in accordance with the principles of the science that has been developed 4) There is almost equal division of the work and the responsibility between the management and the workmen. The management take over all the work for which they are better fitted than the workmen, while in the past almost all of the work and the greater part of the responsibility were thrown upon the workmen
Henry Gantt: Gantt Chart
1) Visually indicates what tasks must be completed at which times in order to complete a project 2) One of the first to recommend that companies train and develop workers - A scientific investigation in detail of each perice of work and the determination of the best method and the shortest time in which the worker can be done - A teacher capable of teaching the best method and the shortest time - Reward for both teacher and pupil when the latter is successful
History
each worker did the same job in his or her own way with different methods and different tools. There were no procedures to standardize operations, no standards by which to judge whether performance was good or bad, and no follow-up to determine if productivity or quality actually improved when changes were made (changes typically being physical abuse)
Scientific Management:
thorough study and testing of different work methods to identify the best, most efficient ways to complete a job
Soldiering
when workers deliberately slow their pace or restrict their output
Integrative Conflict Resolution:
Indicate their preferences and then work together to find an alternative that meets the needs of both
Social Responsibility
A business's obligation to pursue policies, make decisions, and take actions that benefit society Shareholder model: holds that the only social responsibility that businesses have is to maximize profits Stakeholder model: management's most important responsibility is the firms long-term survival (not just maximizing profits), which is achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders) Economic responsibility: making a profit by producing a product of service valued by society, has been a business's most basic social responsibility Legal responsibility: company's social responsibility to obey society's laws and regulations Ethical responsibility: company's social responsibility to not violate accepted principles of right and wrong when conducting its business Discretionary responsibility: pertain to the social roles that businesses play in society beyond their economic, legal, and ethical responsibilities.
Competitive advantage through people:
Employment Security: ultimate form of commitment companies can make to their workers. Workers are motivated to be creative without fear of losing their job. Selective Hiring: Hire more talented employees to develop advantage Self-Managed Teams and Decentralization: Self-managed teams are responsible for their own hiring and can often produce enormous increases in productivity through increased employee commitment and creativity. Decentralization allows employees who are most knowledgeable about problems, production, and customers to make timely decisions which increases satisfaction and commitment. High Wages Contingent on Organizational Performance: Needed to attract and retain talented workers; indicates that organization values employees. Training and Skill Development: Invest in the training and skill development of its people Reduction of Status Differences: Organization has equal treatment standard (no favorites)- this prevents frustrations/resentment and promotes communication between employees. Sharing Information: If employees are to make decisions that are good for the long-term health and success of the company, they need to be given information about costs, finances, productivity, development times, and strategies known by the company manger.
Systems Management:
System: a set of interrelated elements or parts that function as a whole Subsystems: smaller systems within a larger system Synergy: occurs when two or more subsystems working together can produce more than they can alone. Closed Systems: Can function without interacting with their environments Open Systems: interact with their environment and depend on them for survival
Different types of managers:
Top Managers (CEO, COO, CFO, Vice President) are responsible for change, commitment, culture, and the environment. They are responsible for creating a context for change. They are responsible to develop employees' commitment to ownership of the company's performance. Top managers must create a positive organizational culture through language and action. Lastly, they are responsible for monitoring their business environments. They monitor customer needs, competitor's moves, and long-term business, economic, and social trends. Middle Managers (GM, Plant Manager, Regional Manager, Divisional Manager) are responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving those objectives. Middle managers are responsible to plan and allocate resources to meet objectives. They are also responsible to coordinate and ling groups, departments, and divisions within a company. They manage performance of the sub-units and individual managers who report to them. They must also implement strategies proposed by top managers. First-Line Managers (Office Manager, Shift Supervisor, Department Manager) manage the performance of entry-level employees who are directly responsible for producing a company's goods and services. They are responsible for teaching entry level employees, engage in plans and actions that typically produce results within a couple weeks, and are responsible for monitoring, teaching, and short-term planning. Team Leaders (Team Leader, Team contact, Group Facilitator) have no formal supervisor and are primarily responsible for facilitating team activities toward accomplishing a goal. They help their team members plan and schedule work, learn to solve problems, and work effectively with each other. They are also responsible for managing external relationships, to act as the bridge between their teams and other teams, departments, and divisions within the company.
Transition that employees go through when they are promoted to management:
When employees are first promoted, they have certain expectations; being the boss, formal authority, manage tasks, job is not managing people. After 6 months they realize that; their initial expectations were wrong, fact paced, heavy workload, and their job is to be a problem solver and troubleshooter for subordinates. After a year; they are no longer a doer, they are responsible for communication, listening, and positive reinforcement, learning to adapt to and control stress, and they learn that their job is to develop people.