Management Midterm

fayol's theory of management

-14 principles of mgmt (1.division of work 2.authority 3.discipline 4.unity of command 5.unity of direction 6.subordination of individual interests to general interests 7.remuneration 8.centralization 9.scalar chain 10.order 11.equity 12.stability of tenured personnel 13.initiative 14. esprit de corps) -used them as general guidelines for effective mgmt -stressed flexibility to allow for changing circumstances -functions of mgmt (planing, organizing, commanding, coordinating, controlling)

explain strategic and operational planning

strategic: top level, long range planning; relatively long term; affects many parts of organization operational: (aka tactical) middle to lower level mgrs; relatively short term; concentrates on formulation of functional plans (ex production schedules, day to day) *major diff is level at which planning is done*

factors affecting a manager's span of management

(# of subordinates a manager can effectively manage) Sir Ian Hamilton argued narrow span of mgmt (no more than 6 sub. reporting to mgr) would enable mgr to be most efficient -complexity of job (job scope-diff types of operation performed on job, job depth-freedom of employees) -variety of job (# of diff types of jobs being managed) -proximity of the job (physical dispersion of jobs being managed) -quality of ppl filling jobs (general quality of employees being managed) -ability of manager (ability to perform managerial duties)

define organization structure and factors affecting organization structure

*framework that defines boundaries of the formal organization and within which the organization operates -strategy (centralized vs decentralized; corporate, business, or functional?) -size (sales volume & # employees) -environment (mechanistic vs organic) -organization& technology

summarize the positive (5) and negative(4) aspects of group decision making

*positive:* -sum of group knowledge greater -wider range of alternatives in decision process -take more risks bc less responsibility -participation in decision making process increases acceptance of decision by group members -group members better understand decision and alternatives considered *negative:* -one individual may dominate/control group -social pressures to conform can inhibit members -competition can develop to such an extent that winning becomes more important than issue itself -tendency to accept first potentially positive solution while giving little attention to other possible solutions

the process, systems, and contingency approaches to management

*process*: focuses identifying and refining mgmt functions (aka functional approach) *systems*:viewing management (provides framework for visualizing internal and external environmental factors) as an *integrated whole*; organization seen as open system that is influenced by internal& external factors and in turn influences same internal/external factors *contingency*: diff situations and conditions require diff mgmt approaches; there is no one best way to manage

explain balance of trade. explain how and why countries restrict international trade

-balance of trade: difference btw value of goods country exports and value of goods country imports -restrict international trade bc can hurt domestic producers, difficult to compete -tarrifs: tax on imported goods -quota: restrictions on quantity of a good that can enter a country -embargo: total ban on import of a good from particular country

name the tools and techniques that can be used to foster creative decisions (5)

-brainstorming: presenting problem to group and allowing them to present ideas for solution to problem -nominal group technique: highly structured technique designed to keep personal interactions at minimum -brainwriting: members anonymously write ideas, then exchange w/ others who build on ideas -synectics: metaphorical thinking to "make familiar strange and strange familiar" -mindmapping: diagram used to represent words/ideas/tasks linked to and arranged around key word/idea

define a code of ethics, social responsibility, and sustainability

-code of ethics: document stating org's primary values & ethical rules employees expected to follow -social responsibility: obligation individuals or businesses has to solve social problems (ex child labor) -sustainability: expansion of an organizations traditional concerns to take into account social endeavors and environmental stewardship in addition to financial performance (being environmentally conscious, reducing carbon footprint)

define communication. describe the interpersonal communication process including semantics and perception

-communication: the act of exchanging info to inform, command, instruct, assess, influence, and persuade others. -interpersonal comm: interactive process btw individuals that involves sending and receiving verbal and nonverbal messages to transmit info so that message is understood -semantics: study of meanings of words or symbols; can be interpreted differently, so must adjust message to fit audience -perception: mental and sensory process an individual uses in interpreting and responding to info. (must get feedback to reduce differences in perception)

Define management. Describe the levels of management

-form of work that involves deciding the best way to use an organization's resources to produce goods or provide services -senior mgmt: highest level; establishes goals of an organization, formulates actions needed to achieve goals, allocates resources to achieve goal (CEO, COO, CIO, etc.) -middle mgmt: responsible for implementing and achieving organizational goals, & for developing departmental objectives and actions -supervisory mgmt: manages operative employees, day to day operations

describe the differences between objectives, policies, procedures, and rules

-objective: statements outlining what org trying to achieve; gives direction (4 categories: 1.profit oriented 2.service to customers 3.employee needs/well being 4.social responsibility) (SMART: specific, measurable, achievable, relevant, timebased) -policies: broad, general guides to action that constrain or direct attainment of objectives; don't tell exactly what to do, but establish boundaries -procedures: series of related steps or tasks expressed in chronological order for specific purpose; emphasizes detail (how to handle customer complaints) -rules: require specific & definite actions to be taken or not taken in a given situation; no flexibility or deviation (no smoking)

define patent, trademark, and copyright

-patent: document fed gov issues to inventors and companies that gives them exclusive rights to inventions for 17 years -trademark: word, name, symbol, or slogan a business uses to identify its own goods -copyright: protection provided to a creative work

explain sole proprietorship, partnership, corporation, and LLC

-sole proprietorship: business owned by single individual (adv: easy to start; dis: unlimited liability) -partnership: association of 2 or more people who jointly own a for-profit business -corporation: business formed under state or federal statuses that is authorized to act as a legal person; exists apart from owners; can be taxed and sued like an individual -LLC: (limited liability company) similar to corp., limited liability for debts and actions of LLC. similar to partnership, mgmt flexibility & pass-through taxation

scientific management: frederick taylor and lillian gilbreth

-taylor: FATHER OF SCIENTIFIC MGTMsought to increase productivity and make work easier by scientifically studying work methods and establishing standards; "one best way" to perform a task; match the job to the worker (strengths/weaknesses); interdependence btw mgmt and workers -gilbreth: FIRST LADY OF MGMTprimary field of psychology; used motion picture films to study hand & body movements to eliminate wasted motion; emphasized concern for the worker, scientific mgmt should foster not stifle employees; *by combining motion study and psychology, she contributed greatly to research in areas of fatigue, monotony, micro motion study, and morale*

explain four principles of organization that are related to authority

1.delegation: assigning of authority from one person to another -parity principle: authority & responsibility must coincide (mgrs must delegate sufficient authority, subordinates expected to accept responsibility only for areas w/in authority) 2.unity of command: employee should have ONLY ONE immediate manager 3.scalar principle: (chain of command) authority in organization flows through chain of mgrs one link at a time 4.span of mgmt: # of subordinates a mgr can effectively manage

discuss the functions of management (5)

1. planning: deciding what goals to pursue and how to achieve goals 2.organizing: grouping activities, assigning activities, and providing authority necessary to carry out activities 3.staffing: determines how many and what kind of ppl needed, & selects and trains the right ppl 4.leading: directing employees toward accomplishment of goals (guidance, motivation, communication) 5.controlling: measuring progress, determine cause of deviation, and taking corrective action

list six stages in creative decision-making

1. recognition: description of present situation 2. fact finding: systematically gather additional info concerning current state of affairs 3. problem finding: rewrite or restate problem in a manner that will encourage more creative solutions 4. idea finding: generate possible alternatives or solutions 5. solution finding: identify criteria and evaluate ideas generated in stage 4 6. acceptance finding: work out a plan for implementing a chosen idea

discuss all types of organization structures

1.line: direct vertical lines btw diff levels of organization; the work of all organizational units is directly involved in producing and marketing the org's goods or services; members of org receive instructions through scalar chain (chain of command) 2.line & staff: the addition of staff specialists to a line structured org.; staff functions are advisory and supportive; contribute to efficiency and maintenance of org. 3.matrix: individuals from diff. functional areas are assigned to work on a specific project/task (DISADV: can violate principle of chain of command) 4. horizontal: two core groups; one composed of senior mgmt responsible for strategic decision & policy, one composed of empowered employees working together in diff process teams (ex: developing new products); emphasis on informing & training all employees

discuss the steps for developing oral communication skills

1.make emotional contact w/ listeners by addressing them by name 2.avoid speaking monotone 3.be enthusiastic and project a positive outlook 4.avoid interrupting others 5.always be courteous 6.avoid empty sounds or words (uh,um, like)

discuss the obstacles to accurate perception (6)

1.stereotyping: oversimplified & often inaccurate generalization ab typical characteristics of particular group 2.halo effect: drawing an overall impression a a person based on a single trait 3.first impression: can be fatal if first impression incorrect 4.projection: overestimate the # of those who share our thoughts, values, and behavior 5.selective perception: tendency to single out those aspects of a situation, person, or object that are consistent w/ our needs, values, experiences, or attitudes 6.contrast effect: when two things appear close to one another, we tend to evaluate them against one another more than against a fixed standard

outline the basic principles of good writing

1.write as simply and clearly as possible 2.be sure content and tone of document are appropriate for audience 3.proofread document

explain the concept of social loafing

AKA FREE RIDERS, SLACKERS tendency of individuals to put forth less effort when they are part of a group; less responsibility; contribution less noticeable- others will take up slack -can be reduced by establishing clear method to identify individual contributions or assigning specific tasks to each person and hold him accountable or offer rewards for additional effort

explain the concept of BHAG

Big Hairy Audacious Goal: -stimulate progress -clear and compelling -serve as unifying focal point of effort -easy to grasp; little explanation needed -fits w/ core ideology once one is reached, set another one the goal itself is the motivating mechanism, not the leader

explain the roles (3) and skills of a manager(3)

ROLES: 1.interpersonal: provide leadership w/in org or interacting w/ others outside org 2.info-related: provide knowledge/news/advice to employees 3.decision-making: changes in policies, resolve conflicts, deciding how to best use resources SKILLS: 1.conceptual: understand relationship of parts of a business to one another and to the business as a whole 2.human relations: understand ppl and being able to work with them 3.technical: being able to perform mechanics of a particular job

discuss the components of a SWOT analysis

a technique for evaluating organizations internal STRENGTHS AND WEAKNESSES and external OPPORTUNITIES AND THREATS -provides general overview of whether overall situation is healthy or unhealthy -mgrs can better formulate successful strategy

discuss the steps for developing good listening skills (4)

active listening! 1.identify speakers purpose 2.identify speakers main idea 3.note speakers tone & body language 4. respond to speaker w/ appropriate comment, questions, and body language

define strategic management and explain the strategic management process

application of basic planning process at highest level of org; develop strategic plans & keep them current *determine mission, set objective, implement, evaluate, and adjust* 1.formulating: initial plan developed 2.implementing:plan put into affect 3.evaluation: plan monitored, evaluated, and updated

rational approaches to decision making

attempt to evaluate factual info through the use of some type of deductive reasoning *2 types* 1.optimizing approach: more formulated approach- gather info, rank importance, evaluate all possible alternatives (economic man-ppl are rational and well informed) 2.satisficing approach: assumes ppl have time & cognitive ability to process only limited amt of info on which to base decisions (administrative man- knowledge is limited)

explain theory z

attempt to integrate american and japanese mgmt practices -combines american emphasis on individual responsibility with japanese emphasis on collective decision making, slow evaluation & promotion, and holistic concern for employees.

name the advantages and disadvantages of horizontal division of labor

based on specialization of work -adv: 1.fewer skills required per person 2.skills easier to supply 3.practice in same job develops proficiency 4.utilizing each workers best skills promotes efficient use of skills 5.concurrent (simultaneous) operations made possible 6.more conformity in final product -disadv 1.job boredom (productivity declines, quality of work declines, absenteeism & tardiness increase) 2.degradation of employee

define mission

basic purpose of organization; why org exists; defines who we are as organization *diff than vision. vision is where you want to go, who you want to be*

explain the concept of centralization vs. decentralization

centralization: little authority delegated to lower levels of mgmt decentralization: great deal of authority delegated to lower levels of mgmt; ADV: more flexibility &quicker decisions/actions; relieves executives from time-consuming detail work; higher morale by allowing lower levels of mgmt to be actively involved in decision making process DISADV: potential loss of control; duplication of effort

the hawthorne studies

changed conditions of work to see if it affected productivity (lighting, wages, rest periods, length of workday) production increased -workers responded positively to *informal group pressures, individual recognition, & participation in decision making* -shows workers just want to feel important, heard, and needed

discuss group cohesiveness, group conformity, and groupthink

cohesiveness: degree of attraction each member has for group; the "stick-togetherness" conformity: degree to which members accept & follow group norms groupthink: dysfunctional syndrome that causes group to lose critical evaluative capabilities; incomplete assessment, inadequate development of alternatives, belief that group is indestructible and always right

explain the concept of Good Enough Never Is

companies should ALWAYS be working on self improvement- not just trying to be better than competition; goes hand in hand with BHAGs- keep setting goals, analyzing how comp can improve, strengths & weaknesses

explain decision making versus problem solving

decision making: process of choosing from among various alternatives (programmed decisions) problem solving: process of determining appropriate responses or actions necessary to alleviate a problem (usually nonprogrammed decision) -not all decisions involve problems, but all problems involve decision making -problem solving usually needs quick decision, fast paced

discuss different types of departmentalization (5)

departmentalization: grouping jobs into related units 1.functional: in terms of nature of work (production, marketing, finance, human resource) 2.product: grouping all activities necessary to produce and market a product or service under one manager 3.geographical: defined by territories 4.customer: in terms of customers served 5. hybrid: simultaneous use of more than 1 type

how to build an effective team? discuss the four phases in the life of a team

effective team: cohesive group that works together to achieve its goals 1.select ppl w/ right skills and right personality fit 2.build trust among members and between group and mgmt 3. develop cohesive group that conforms to group norms (keep groups small, give clear goals, reward as a team) -phases= FORMING NORMING STORMING PERFORMING

discuss environmental factors and conditions influencing decision making in an organization

factors: -mgrs position in organization &its structure -purpose & tradition of organization -org's formal & informal group structures -superiors & subordinates (personalities, backgrounds, expectations) -industry norms, labor market, political climate, competition conditions: -situation of certainty: knowing exactly what will happen -situation of risk: aware of relative possibilities of occurrence associated w/ each alternative -situation of uncertainty: very little/no reliable info to evaluate diff possible outcomes

define empowerment

form of decentralization in which subordinates have authority to make decisions; employees demonstrate more initiative and perseverance in pursuing organizational goals -in order to be successful, must have: 1.PARTICIPATION 2.INNOVATION 3. ACCESS TO INFO 4. ACCOUNTABILITY

describe formal and informal work groups

formal: established & recognized by organizing function of mgmt (ex. task force) informal: result from personal contacts & interactions among ppl; not formally recognized by company (ex: office cliques)

define organization: formal and informal. explain the importance of the organizing function

formal: group of ppl working together in some coordinated effort to attain objective informal: collection of personal contacts and interactions & associated groupings of ppl working within the formal org -establishes lines of authority to create order -improves efficiency & quality of work through synergism (group works together to produce whole greater than sum of the parts) -improves communication *provides vehicle for implementing strategy and accomplishing objectives that could not be achieved by individuals working separately

define grapevine

informal channels of communication w/in an organization -often accurate -info travels faster than formal channels -resilient

explain the concept of group norms

informal rules a group adopts to regulate behavior; beliefs about what behavior is appropriate and attainable in certain situations (ex: our class- no hats, participation necessary, come prepared to talk; me and liv: during hw, don't have convos; stay quiet; no music/tv)

discuss problems related to delegation

managers and employees can be reluctant -mgrs: 1. fear subordinates will fail 2.believe its easier to do themselves 3.preconceived ideas ab employees 4. fear subordinates will look "too good" ...etc -emp: 1. fear criticism that may follow a mistake 2. not a forgiving, welcoming environment -exception principle: mgrs should concentrate efforts on matters that deviate significantly from normal and let subordinates handle routine matters (avoid micromanaging)

explain a contingency approach to organizing

most appropriate structure depends on the technology used, rate of environmental change, and other dynamic forces; there is no one best way to organize; its situational; process of assessing relevant variables and choosing most appropriate structure for the situation; mgmt should periodically analyze and update the organizations structure

define strategy and explain the various levels of strategy

outlines how mgmt intends to achieve its objective 1.corporate: address which businesses an org will be in & how resources will be allocated among those businesses; concerned w overall direction of org, specifically tied to mission statements; top mgmt (growth, stability, defensive, combo) 2.business: focus on how to compete in a given business; generally applies to single business unit (cost leadership, differentiation, focus) 3.functional:concerned w activities of diff functional areas of the business (production, finance, marketing, human resources)

discuss power, authority, and responsibility

power: ability to influence, command, or apply force authority: power derived from rights that come with a position and represent legit exercise of power (formal theory vs acceptance theory) responsibility: accountability for the attainment of objectives, the use of resources, and adherence to organizational policy

programmed vs nonprogrammed decisions

programmed: reach by established/systematic procedure (decision making) nonprogrammed: little or no precedent; unstructured and generally require more creative approach by decision maker (problem solving)

explain the concept of clock building, not time telling

time telling: having a great idea or being a charismatic visionary leader clock building: building a company that can prosper far beyond the presence of any single leader & through multiple product life cycles **shift from seeing company as a vehicle for products to seeing products as a vehicle for the company** (catch man a fish vs teach him to fish)

explain the concept of tyranny of the OR

visionary companies don't see it as a choice between living to their values or being pragmatic(realistic) they see it as a CHALLENGE to find pragmatic solutions AND behave consistent w/ core values