BADM 371-Chapter 1 Review

Cultural Environment

A challenge for the international manager. The language, values, beliefs, colors, symbols guide behavior. Cultural differences can have a direct impact on business practices.

What is a theory?

A conceptual framework for organizing knowledge and providing a blueprint for action. Management theories are used to build organizations and guide them toward their goals. Managers develop their own theory and are grounded in reality.

Storming

Second stage of group/team development. A general lack of unity and uneven interaction patterns. Defensiveness, intragroup competition, formation of factions, and arguing.

Scientific Management

A part of the classical management perspective. Concerned with improving the performance of individual workers. grew out of the industrial revolution's labor shortage. Advocates of this were Frederick W. Taylor, Frank Gilbreth, and Lillian Gilbreth. Taylor was dominant.

Decision-Making

A part of the planning process that involves selecting a course of action from a set of alternatives. The ability to recognize and define problems and opportunities. No manager makes the right decision all the time but make good decisions most of the time.

Ethics

An individual's personal beliefs about whether a behavior, action, or decision is right or wrong.

Importing

Bringing a good, service, or capital into the home country from abroad.

Quantitative Management Contributions

Developed quantitative techniques to assist in decision making. Useful in planning and controlling processes.

Quantitative Management Perspective

Emerged during WWII to help Allied forces manage logistical problems Focuses on decision-making, economic effectiveness, mathematical models, and use of computers to solve quantitative problems. Two branches are management science and operations management.

External Environment

Everything outside an organization's boundaries that might affect it. The general and task environment are a part of it. The general environment is a set of broad dimensions and forces in an organization's surrounding that determine it's overall context.

Top Managers

Executives who manage the organization's overall goals, strategy, and operating policies. President, Vice-President, CEO. Create organizational goals, officially represent the organization by meeting with government officials. Smallest group of managers

Forming

First stage of group/team development. The members get acquainted with each other and test interpersonal behaviors that are acceptable and unacceptable within the group. Attempting to define task and how it will be accomplished through discussions.

Classical Perspective Limitations

Focused on stable, simple organizations and proposed universal guidelines. Employees viewed as tools rather than as resources.

Administrative Management

Focuses on managing the total organization. Primary contributors were Henri Fayol, Lyndall Urwick and Max Weber.

Classical Perspective Contributions

Laid foundations for later developments. Identified important management processes, functions, and skills. Focused on management as a subject of scientific inquiry

Middle Managers

Largest group of managers in organization. Implement top management policies and plans. Supervise and coordinate lower level managers activities.

Two Branches of Quantitative Management

Management Science focuses on representative mathematical models to assist with decisions. Operations Management is a form of applied management science. The practical application to efficiently manage the production and distribution of products and services.

How do we make management processes efficient?

Management processes are efficient when they are implemented to the fullest. When managers take into account different situations and employee attitudes.

Type of Ethics

Managerial ethics is a type of ethics that consists of standards of behavior that guide individual managers in their work. The treatment of employees by the organization.

Economy of Scale

Manufacturing costs fall as the number of units increases. The relationship between cost and production. Small manufacturing organizations did not do as well as large ones.

Quantitative Management Limitations

Mathematical models cannot fully account for individual behaviors and attitudes. The time needed to develop competence in quantitative techniques retards the development of other managerial skills. Uses models that may require unrealistic or unfounded assumptions.

Theory X

People do not like to work and avoid it. Managers have to control, direct, coerce and threaten employees to work. People want to be directed to avoid responsibility. They have little ambition

Theory Y

People do not naturally dislike work. People are internally motivated and committed to goals so they receive personal rewards. People will seek and accept responsibility. People have the capacity to be innovative and they are bright but the potential is underutilized.

Behavioral Management Perspective

Placed more emphasis on individual attitudes, behaviors, and group processes. Recognized the importance of behavioral processes. Stimulated by industrial psychology. Two main contributors were Hugo Munsterberg, and Mary Parker Follett.

Hawthorne Studies

Primary catalyst was this series of studies conducted near Chicago at Western Electric's Hawthorne plant. Conducted by Elton Mayo. The illumination study involved manipulating the light for one group of workers and comparing the productivity with that of another group where the light was unchanged. Productivity continued to increase in both groups until the light was reduced to moonlight. The group study caused workers to establish informal levels of individual output. Workers that overproduced were called rate busters and those that underproduced were chiselers. workers produced at accepted level. Interview program concluded that human behavior was much more important in the workplace.

Behavioral Management Contributions

Provided insight into motivation, group dynamics, and other interpersonal processes. Focused on managerial attention on these critical processes Challenged the view that employees are tools. Employees are valuable resources.

Behavioral Management Limitations

Relatively imprecise in its ability to predict behavior especially individual behavior. Not always accepted or understood by practicing managers. many concepts not put to use because managers are reluctant to adopt them.

Planning

Setting an organization's goals and deciding how best to achieve them. Decision-making is a part of this process. Help managers maintain their effectiveness by serving as guides for their future activities.

Synergy

Subsystems are more effective working together than alone. The whole system is more productive and efficient than the sum of its parts. A major objective of Proctor and Gamble when they acquired Gillette. Emphasizes working together in a cooperative and coordinated way.

Performing

The final stage of group/team development. Slow to develop, the team focuses on the problem at hand. The members enact the roles they have, interaction occurs, and efforts of groups are directed toward the goals. The ability of the team to work or prevent problems.

Classical Management Perspective

The first important ideas to emerge about management and evolution of large scale businesses. The two viewpoints are scientific management and administrative management.

Entropy

The process in which an organizational system declines due to failing to adjust to changes in the environment Avoided through change and renewal.

Task Environment

The task environment is composed of specific groups and organizations that affect the firm. Owners, board of directors, employees and physical work environment.

Norming

Third stage of group/team development. Each person begins to recognize and accept their role and understand the other roles. A sense of unity and they begin to accept one another. Establishing and maintaining team ground rules.

Game Theory

Used to predict the outcome of negotiation situations. Developed by economists using mathematical models. Requires that every alternative and outcome be analyzed with probabilities and numerical outcomes reflecting the preferences of negotiating parties for each outcome.

Interrole

a conflict between roles

Person-role

a conflict between the role requirements and the individual's personal values, attitudes, and needs

Intrarole

a conflict that occurs when the person gets conflicting demands from different sources within the context of the same role.

Task Group

a group created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time limit.

Functional Group

a permanent group created by the organization to accomplish a number of organizational purposes with a unspecified time limit.

Joint Ventures

a special type of strategic alliance in which the partners actually share ownership of a new enterprise.

Licensing

an arrangement whereby a firm allows another company to use its brand name, trademark, technology, patent, copyright, or other assets. Usually in exchange for a royalty based on sales.

Role Ambiguity

arises when the sent role is unclear. The individual does not know what is expected of him or her.

Internal Environment

consists of conditions and forces within the organization.

Informal or Interest Group

created by its own members for purposes that may or may not be relevant to organizational goals with an unspecified time limit.

Human Relations Movement

grew from the Hawthorne studies. the basic assumption was that the managers' concern for workers would lead to increased satisfaction and improve performance. Abraham Maslow and Douglas McGregor Maslow said people are motivated by hierarchy of needs. McGregor came up with Theory X and Y

Exporting

making a product in the firm's domestic marketplace and selling it in another country. Can be merchandise or services.

Direct Investment

occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country. Maquiladoras- light assembly plants in northern mexico that are given tax breaks by the mexican government

Role Overload

occurs when expectations for the role exceed the individual's capabilities.

Role Conflict

occurs when the messages and cues composing the sent role are clear but contradictory or mutually exclusive.

Contingency Perspective

suggests that every organization is unique while the universal perspectives try to identify one best way to manage organizations The appropriate managerial behavior in any situation depends on unique elements within that situation. Ther is a problem and many different contingencies or actions to take with that particular problem.

First-line Managers

supervise and coordinate the activities of operating employees. Supervisor, coordinator, office manager Often first held by employees who enter management from ranks of operating personnel.

Time-Management

the manager's ability to prioritize work, to work efficiently, and to delegate work appropriately. Too easy for a manager to get bogged down in work that can be delegated to others. However more high-priority work can get neglected.

Social Responsibility

the set of obligations an organization has to protect and enhance the societal context in which it functions. The areas include the stakeholders, the natural environment, and general social welfare. Arguments for social responsibility are that businesses create problems so they should help solve them and they have the resources to solve problems. Arguments against social responsibility are the purpose of business is to generate profit, the business has too much power and could cause conflicts of interest.

Organizational Culture

the set of values, beliefs, behaviors, customs, and attitudes that helps the organization's members understand what it stands for, how it does things, and what it considers important. Culture determines the overall feel of the organization and is a powerful force that can shape the organization's overall effectiveness.