MGMT 300 Exam #1

Vertical Differences (3)

*Top managers -responsible for entire organization -responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization -look to the long-term future and concern themselves with general environmental trends and the organization's overall success. *Middle Managers -work at middle levels of the organization and are responsible for business units and major departments. -They are responsible for implementing the overall strategies and policies defined by top managers. -Middle managers generally are concerned with the near future rather than with long-range planning. -middle managers create horizontal networks that can help the organization act quickly.Research shows that middle managers play a crucial role in driving innovation and enabling organizations to respond to rapid shifts in the environment. *Project Manager -is responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well. *First Line manager -are directly responsible for the production of goods and services. -They are responsible for groups of non management employees - time horizon at this level is short, with the emphasis on accomplishing day-to-day goals.

Mgmt Humanistic Perspective: Behavioral Sciences (3)

- uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting. Seen in pratically every organizaiton -organization development (OD):to improve the organization's health and effectiveness through its ability to cope with change, improve internal relationships, and increase problem-solving capabilities -matrix organizations, self-managed teams, ideas about corporate culture, and management by wandering around.

Manager Roles: Informational (4)

-(managing by information); -talking to other people (75%) -The monitor role involves seeking current information from many sources. -The disseminator and spokesperson roles are just the opposite: The manager transmits current information to others, both inside and outside the organization, who can use it.

Manager Role: Decisional (4)

-(managing through action). -entrepreneur role involves the initiation of change disturbance handler role involves resolving conflicts among subordinates or between the manager's department and other departments. - resource allocator role pertains to decisions about how to allocate people, time, equipment, money, and other resources to attain desired outcomes. - negotiator role involves formal negotiations and bargaining to attain outcomes for the manager's unit of responsibility.

Manager Role: Interpersonal (4)

-(managing through people); -The figurehead role involves handling ceremonial and symbolic activities for the department or organization. - The leader role encompasses relationships with subordinates, including motivation, communication, and influence. -The liaison role pertains to the development of information sources both inside and outside the organization.

Manager Activities (2)

-Adventures of multitasking -Life on Speed Dial

Horizontal Differences (4)

-Functional managers are responsible for departments that perform a single functional task and have employees with similar training and skills (advertising, sales, finance, human resources, manufacturing, and accounting) -Line managers are responsible for the manufacturing and marketing departments that make or sell the product or service. -Staff managers are in charge of departments such as finance and human resources that support line departments. -General managers are responsible for several departments that perform different functions.

Henri Fayol "General and Industrial Management" principles (1 fact, 3 principles)

-He also identified five basic functions or elements of management: planning, organizing, commanding,coordinating, and controlling -principles can be applied in any org setting: -Unity of command: Each subordinate receives orders from one—and only one—superior. -Division of work: Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort. -Unity of direction: Similar activities in an organization should be grouped together under one manager. -Scalar chain: A chain of authority extends from the top to the bottom of the organization and should include every employee.

Management and the Organization (2 facts, 3 Forces)

-Management practices and perspectives vary in response to these social, political, and economic forces in the larger society. - During difficult times, managers look for ideas to help them cope with environmental turbulence and keep their organization vital. Management idea life cycles have been growing shorter as the pace of change has increased. -Political, Social, Economical Forces.

Mgmt Types (2 facts & 2 differences)

-Managers are responsible for different departments, work at different levels in the hierarchy, and meet different requirements for achieving high performance. -All three are managers and must contribute to planning, organizing, leading, and controlling their organizations—but in different amounts and ways. -Vertical & Horizontal differences

The Definition of Management (4)

-Managers are the executive function of the organization, responsible for building and coordinating an entire system rather than performing specific tasks. -By creating the right systems and environment, managers ensure that the department or organization will survive and thrive beyond the tenure of any specific supervisor or manager. -Recognizing the role and importance of other people is a key aspect of good management. Getting things done through people and other resources and providing leadership and direction are what managers do. --Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

Managing in Small business and Non-profits (6)

-Managers in small companies often see their most important role as that of spokesperson because they must promote the small, growing company to the outside world. The entrepreneur role is also critical in small businesses because managers have to be innovative and help their organizations develop new ideas to remain competitive. Small-business managers tend to rate lower on the leader role and on information-processing roles, compared with their counterparts in large corporations. -managers in businesses direct their activities toward earning money for the company, whereas managers in nonprofits direct their efforts toward generating some kind of social impact -In businesses, managers focus on improving the organization's products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited resources, must focus on keeping organizational costs as low as possible -It is easy to measure dollars and cents, but the metrics of success in nonprofits are much more ambiguous. -An added complication is that managers often depend on volunteers and donors who cannot be supervised and controlled in the same way a business manager deals with employees. -We might expect managers in nonprofi t organizations to place more emphasis on the roles of spokesperson (to "sell" the organization to donors and the public), leader (to build a mission-driven community of employees and volunteers), and resource allocator (to distribute government resources or grant funds that are often assigned top-down). Managers in all organizations—large corporations, small businesses, and nonprofi t organizations—carefully integrate and adjust the management functions and roles to meet challenges within their own circumstances and keep their organizations healthy.

Organizational Performance & Managers (2)

-Organizations pervade our society, and managers are responsible for seeing that resources are used wisely to attain organizational goals. -the manager's responsibility is to coordinate resources in an effective and efficient manner to accomplish the organization's goals.

Innovative Mgmt: The Learning Organization

-Peter Senge's book, The Fifth Discipline: The Art and Practice of Learning. Organizations Senge described the kind of changes managers needed to undergo to help their organizations adapt to an increasingly chaotic world. -The learning organization can be defined as one in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, change, and improve, thus increasing its capacity to grow, learn, and achieve its purpose. -The essential idea is problem solving, in contrast to the traditional organization designed for efficiency. In the learning organization all employees look for problems, such as understanding special customer needs.

Management Functions (4)

-Planning: identifying goals for performance and deciding on the tasks & use of resources needed to attain them -Organizing: assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization to accomplish tasks -Leading: The ability to shape culture, communicate goals, and motivate employees is critical to business success. One doesn't have to be a well-known top manager to be an exceptional leader. -Controlling: means monitoring employees' activities, determining whether the organization is on target toward its goals, and making corrections as necessary.Trends toward empowerment and trust of employees have led many companies to place less emphasis on top down control and more emphasis on training employees to monitor and correct themselves.

Why Innovation Matters (2)

-Shift away from cost reduction for long-term success (Innovation) -Innovation keeps companies growing and without it we wouldn't be able to survive in the long run

Management and the Organization Forces:Social Forces (3)

-Social forces refer to those aspects of a culture that guide and influence relationships among people. -Ex. What do people value? Generation Y? -These forces shape what is known as the social contract, which refers to the unwritten, common rules and perceptions about relationships among people and between employees and management

Innovative Mgmt: Managing the technology driven workplace

-Supply Chain Mgmt -Customer Relationship Mgmt -Outsourcing

Total Quality Mgmt (3 facts, 4 elements)

-The ideas of W. Edwards Deming, known as the "father of the quality movement," were initially scoffed at in the United States, but the Japanese embraced his theories and modified them to help rebuild their industries into world powers. Japanese companies achieved a significant departure from the American model by gradually shifting from an inspection-oriented approach to quality control toward an approach emphasizing employee involvement in the prevention of quality problems -total quality management (TQM), which focuses on managing the total organization to deliver quality to customers, moved to the forefront in helping U.S. managers deal withglobal competition.The approach infuses quality values throughout every activity within a company, with front- line workers intimately involved in the process -TQM is not a quick fix, but companies such as General Electric, Texas Instruments, Procter &Gamble, and DuPont achieved astonishing results in efficiency, quality, and customer satisfaction through total quality management.TQM is still an important part of today's organizations, and managers consider benchmarking in particular a highly effective and satisfying management technique -4 elements: employee involvement, focus on the customer, benchmarking, and continuous improvement.

Chester I. Barnard (2)

-The informal organization occurs in all formal organizations and includes cliques and naturally occurring social groupings. Barnard argued that organizations are not machines and stressed that informal relationships are powerful forces that can help the organization if properly managed. - Another significant contribution was the acceptance theory of authority which states that people have free will and can choose whether to follow management orders. People typically follow orders because they perceive positive benefit to themselves, but they do have a choice. Managers should treat employees properly because their acceptance of authority may be critical to organization success in important situations.

New Management Competencies (3)

-They have to set clear expectations, guide people toward goal accomplishment through vision, values, and regular communication, and develop a level of trust in employees' commitment to getting the job done. -Success in the new workplace depends on the strength and quality of collaborative relationships. New ways of working emphasize collaboration across functions and hierarchical levels as well as with other companies. -Team-building skills are crucial -Instead of managing a department of employees, many managers act as team leaders of ever-shifting, temporary projects.

Becoming a New Manager (2)

-becoming a manager means a profound transformation in the way people think of themselves, called personal identity, that includes letting go of deeply held attitudes and habits and learning new ways of thinking. -has to be a generalist and learn to coordinate a broad range of activities.

Mgmt Humanistic Perspective: Human Resources Perspective (4)

-contented cows give more milk, so satisfied workers will give more work. -interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. The human resources perspective combines prescriptions for design of job tasks with theories of motivation.In the human resources view, jobs should be designed so that tasks are not perceived as dehumanizing or demeaning but instead allow workers to use their full potential -Maslow's heirchy of needs *Douglas McGregor : Theory X&Y

New workplace Characteristics (6)

-digitization of business, -In the new workplace, by contrast, work is free-flowing and flexible. Structures are flatter, and lower-level employees make decisions based on widespread information and guided by the organization's mission and values -Empowered employees are expected to seize opportunities and solve problems as they emerge. -The new workplace is organized around networks rather than rigid hierarchies, and work is often virtual, -Interim managers are managers who are not affiiated with a specific organization but work on a project-by- project basis or provide expertise to organizations in a specific area. -Technology also enables companies to shift significant chunks of what were once considered core functions to outsiders via outsourcing, joint ventures, and other complex alliances.

Manager Roles (4 Facts, 3 categories)

-diverse manager activities can be organized in 10 roles -A role is a set of expectations for a manager's behavior. - all the roles interact in the real world of management. -The relative emphasis a manager puts on these ten roles depends on a number of factors, such as the manager's position in the hierarchy, natural skills and abilities, type of organization, or departmental goals to be achieved & other enviornmental factors -These roles are divided into three conceptual categories: Informational, Interpesonal, Decision

When Skills Fail (5)

-during turbulent times, managers really have to stay on their toes and apply all their skills and competencies in a way that benefits the organization and its stakeholders when managers fail to effectively and ethically apply their skills to meet the demands of an uncertain, rapidly changing world. -Managers fail to listen to customers, misinterpret signals from the marketplace, or can't build a cohesive team and execute a strategic plan. -One of the biggest blunders is managers' failure to comprehend and adapt to the rapid pace of change in the world around them. -Other critical management missteps include poor communication skills and failure to listen; poor interpersonal skills; treating employees as instruments to be used; a failure to clarify direction and performance expectations; suppressing dissenting viewpoints; and the inability to build a management team characterized by mutual trust and respect.

Classical Management Approach Sub Field: Scientific Mgmt (7)

-emphasizes scientifically determined jobs and management practices as the way improve efficiency and labor productivity. -Frederick Winslow Taylor-suggested that decisions based on rules of thumb and tradition be replaced with precise procedures developed after careful study of individual situations. He stressed efficency. Indeed, the ideas of creating a system for maximum efficiency and organizing work for maximum productivity are deeply embedded in our organizations. -because scientific management ignored the social context and workers' needs, it led to increased conflict and sometimes violent clashes between managers and employees. -Each man capable to load 75 pounds per day and created an incentive system -Henry Gantt, an associate of Taylor's, developed the Gantt chart—a bar graph that measures planned and completed work along each stage of production by time elapsed. -Frank B. and Lillian M. Gilbreth. Frank B. Gilbreth (1868-1924) pioneered time and motion study -To use this approach, managers should develop standard methods for doing each job, select workers with the appropriate abilities, train workers in the standard methods, support workers and eliminate interruptions, and provide wage incentives.

Classical Management Approach Sub Field: Administrative Principles (4)

-focused on entire organization rather than individual productivity -Henri Fayol "General and Industrial Management" principles -Mary Parker Follett ethics, , empowerment research -Chester I. Barnard:informal org & acceptance theory

Organization (3 Parts)

-is a social entity that is goal directed and deliberately structured. -Social entity means being made up of two or more people. -Goal directed means designed to achieve some outcome, such as make a profit -Deliberately structured means that tasks are divided and responsibility for their performance is assigned to organization members.

Conceptual Skills(4)

-is the cognitive ability to see the organization as a whole system and the relationships among its parts. -Conceptual skill involves the manager's thinking, information processing, and planning abilities. - It means the ability to think strategically—to take the broad, long-term view—and to identify, evaluate, and solve complex problems. -Conceptual skills are needed by all managers but are especially important for managers at the top.

Human Skill(3)

-is the manager's ability to work with and through other people and to work effectively as a group member. -Human skill is demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts. -A manager with human skills allows subordinates to express themselves without fear of ridicule, encourages participation, and shows appreciation for employees' efforts.

Management Science Perspective (3 facts, 3 subsets)

-its application of mathematics, statistics, and other quantitative techniques to management decision making and problem solving -military, large scale business -Peter Drucker's 1946 book: -3 subsets: operations research, operations mgmt, IT

Classical Management Approach Sub Field: Beaucratic Organizations (5)

-looked at organizations as a whole -Max Weber biggest contributer -Weber envisioned organizations that would be managed on an impersonal, rational basis. Used to be employees loyal to single individual not an organization -wanted advancement in positions thats not possbible in those individual orgs. not on whom you know, but rather on competence and technical qualifications, which are assessed by examination or according to training and experience. The organization relies on rules and written records for continuity. In addition, rules and procedures are impersonal and applied uniformly to all employees. A clear division of labor arises from distinct definitions of authority and responsibility legitimized as official duties. Positions are organized in a hierarchy, with each position under the authority of a higher one. The manager depends not on his or her personality for successfully giving orders but on the legal power invested in the managerial position. -The term bureaucracy has taken on a negative meaning in today's organizations and is associated with endless rules and red tape. We have all been frustrated by waiting in long lines or following seemingly silly procedures. However, rules and other bureaucratic procedures provide a standard way of dealing with employees.Everyone gets equal treatment, and everyone knows what the rules are. This foundation enables many organizations to become extremely efficient

Management and the Organization Forces: Economical Forces (2)

-pertain to the availability, production, and distribution of resources in a society. -Today's economy is mostly based on ideas, info, knowledge vs. material resources.

Classic Management Approach (3)

-productivity and effective treatment of employees -can be traced to 3000 b.c., to the first government organizations developed by the Sumerians and Egyptians, but the formal study of management is relatively recent -The early study of management (early 19th and 20th century) is called the early perspective -salaried manager for "manufacturing" -These professional managers began developing and testing solutions to the mounting challenges of organizing, coordinating, and controlling large numbers of people and increasing worker productivity -Sub fields: Scientific mgmt, beaucratic, admin

Management and the Organization Forces: Political Forces(2)

-refer to the influence of political and legal institutions on people and organizations. -Ex. Property rights, contract rights

Management Skills (2 facts, 3 skills)

-the application of these skills changes as managers move up in the organization. -all managers must possess skills in each of these important areas to perform effectively. -Conceptual, Human, Technical

Technical skills(3)

-the understanding of and proficiency in the performance of specific tasks. -Technical skill includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance. Technical skill also includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline. -Technical skills are particularly important at lower organizational levels.

Contigency View (4 facts, 2 views)

-unviersilist view: Management concepts were thought to be universal; that is, whatever worked—leader style, bureaucratic structure—in one organization would work in another. -Case view: every situation is unique. Principles are not universal, and one learns about management by experiencing a large number of case problem situations. Managers face the task of determining what methods will work in every new situation. -Contigency View saw neither view correct -Certain contingencies, or variables, exist for helping management identify and understand situations. The contingency view tells us that what works in one setting might not work in another. Contingency means that one thing depends on other things and a manager's response to a situation depends on identifying key contingencies in an organizational situation. -Ex of Contigency: industry working for -When managers learn to identify important patterns and characteristics of their organizations, they can then fit solutions to those characteristics

Mgmt Humanistic Perspective: Human Relations Movement(3)

-was based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control -Hawhorne Study: study that found better treatment (human relations) increase productivity. Subjects behaved differently because of the active participation of researchers in the Hawthorne experiments -belief that human relations is the best approach for increasing productivity persists today.

Systemic Thinking (3)

-when managers learn to think systemically, they have a powerful tool for changing outcomes and improving performance. Systemic thinking means looking both at the distinct elements of a situation and at the interaction among those elements -However, most managers tend to think analytically, by breaking things down to their distinct elements. -To think systemically, managers look not only at the distinct parts of a system or situation but also at the interactions among those parts, which are continually changing and affecting each other differently. A systemic thinking process allows managers to get a handle on highly complex problems and situations in a way that analytical thinking cannot

Peter Drucker

1946 book: Concept of the Corporation, cranking out numerous mathematical tools for corporate managers, such as the application of linear pro- gramming for optimizing operations, statistical process control for quality management, and the capital asset pricing model. Computers helped.

Total Quality Mgmt Element: Focus on the customer

All employees are focused on the customer; companies find out what customers want and try to meet their needs and expectations.

Customer Relationship Mgmt

Customer relationship management (CRM) systems use the latest information technology to keep in close touch with customers and to collect and manage large amounts of customer data. These data can help employees and managers act on customer insights, make better decisions, and provide superior customer service.Meeting customer needs and desires is a primary goal for organizations, and using CRM to give customers what they really want provides a tremendous boost to customer service and satisfaction.

Total Quality Mgmt Element: Employee Involvement

Employee involvement means that achieving quality requires company wide participation in quality control.

Management Science Perspective Subset: IT

Information Technology: these systems are designed to provide relevant information to managers in a timely and cost-efficient manner. More recently, information technology within organizations evolved to include intranets and extranets, as well as various software programs that help managers estimate costs, plan and track production, manage projects, allocate resources, or schedule employees. Most of today's organizations have departments of information technology specialists who use management science techniques to solve complex organizational problems.

Management Science Perspective Subset: Operations Mgmt

Operations management: refers to the field of management that specializes in the physical production of goods or services. Operations management specialists use quantitative techniques to solve manufacturing problems.

Management Science Perspective Subset: Operations Research

Operations research: It consists of mathematical model building and other applications of quantitative techniques to managerial problems

Peter Senge

Peter Senge's book, The Fifth Discipline: The Art and Practice of Learning. Organizations Senge described the kind of changes managers needed to undergo to help their organizations adapt to an increasingly chaotic world.

Managers and the new work place

Rapid environmental shifts, such as changes in technology, globalization, and shifting social values, are causing fundamental transformations that have a dramatic impact on the manager's job.

Mary Parker Follett

She offered the pithy admonition, "Don't hug your blueprints," and analyzed the dynamics of management-organization interactions. Follett addressed issues that are timely today, such as ethics, power, and how to lead in a way that encourages employees to give their best. The concepts of empowerment, facilitating rather than controlling employees, and allowing employees to act depending on the authority of the situation

Sub System

Subsystems depend on one another as parts of a system. Changes in one part of the organization affect other parts. The organization must be managed as a coordinated whole. Managers who understand subsystem interdependence are reluctantto make changes that do not recognize subsystem impact on the organization as a whole

Supply Chain Mgmt

The essential idea is problem solving, in contrast to the traditional organization designed for efficiency. In the learning organization all employees look for problems, such as understanding special customer needs. A supply chain is a network of multiple businesses and individuals that are connected through the flow of products or services

Douglas McGrego

Theory X&Y -Theory Y is more realistic -the point of Theory Y is that organizations can take advantage of the imagination and intellect of all their employees. Employees will exercise self-control and will contribute to organizational goals when given the opportunity. -Assumptions of Theory X •The average human being has an inherent dislike of work and will avoid it if possible. •Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. •The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all. -Assumptions of Theory Y •The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. •External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed. •The average human being learns, under proper conditions, not only to accept but to seek responsibility. •The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. •Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized

Skills Required for: -Top Managers -Middle Manager -First line managers -Employees

Top: High Conceptual, Medium Human, Low Technical Middle: Medium Conceptual, Medium Human, Low technical First: Low Conceptual, Medium Human, High technical Employees: Medium conceptual, Low human, High technical

Interm managers

are managers who are not affiiated with a specific organization but work on a project-by- project basis or provide expertise to organizations in a specific area.

Max Weber

biggest contributer to Beaucratic Classical Mgmt Approach

Henry Gantt

developed the Gantt chart—a bar graph that measures planned and completed work along each stage of production by time elapsed.

Mgmt Humanistic Perspective (3)

emphasized the importance of understanding human behaviors, needs, and attitudes in the workplace as well as social interactions and group processes , Sub fields- human relations movement, HR Perspective, Behavioral Science

W. Edwards Deming

father of the quality movement," for Total Quality Mgmt

Maslow

heirchy of needs

Recent Historical Trends for Mgmt approaches

humanistic perspective remained most prelavent til this day

organization development (OD):

improve the organization's health and effectiveness through its ability to cope with change, improve internal relationships, and increase problem-solving capabilities

Total Quality Mgmt Element: Continous Improvement

improvement is the implementation of small, incre-mental improvements in all areas of the organization on an ongoing basis.

System

is a set of interrelated parts that function as a whole to achieve a common purpose A system functions by acquiring inputs from the external environment, transforming them in some way, and discharging outputs back to the environment.

Organizational Performance: Effectiveness

is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do.

Organizational Performance:High Performance

manager's ultimate responsibility which is the attainment of organizational goals by using resources in an efficient and effective manner.

Synergy

means that the whole is greater than the sum of its parts. When an organization is formed, something new comes into the world. Management, coordination, and production that did not exist before are now present. Organizational units working together can accomplish more than those same units working alone. The sales department depends on production, and vice versa

Open Systems

must interact with the environment to survive;

Closed Systems

need not. In the classical and management science perspectives, organizations were frequently thought of as closed systems. In the management science perspective, closed system assumptions—the absence of external disturbances—are sometimes used to simplify problems for quantitative analysis. In reality, however, all organiza- tions are open systems, and the cost of ignoring the environment may be failure.

Systems Theory

of organizations. It consists of five components: inputs, a transformation process, outputs, feedback, and the environment. Inputs are the material, human, financial, or information resources used to produce goods and services. The transformation process is management's use of production technology to change the inputs into outputs.Outputs include the organization's products and services. Feedback is knowledge of the results that influence the selection of inputs during the next cycle of the process. The environment surrounding the organization includes the social, political, and economic forces noted earlier in this chapter.

Lillian M. Gilbreth. Frank B. Gilbreth (1868-1924)

pioneered time and motion study

Total Quality Mgmt Element: Benchmarking

refers to a process whereby companies find out how others do something better than they do and then try to imitate or improve on it.

Organizational Performance: Efficiency

refers to the amount of resources used to achieve an organizational goal

Hawthorne Studies

study that found better treatment (human relations) increase productivity. Subjects behaved differently because of the active participation of researchers in the Hawthorne experiments

Frederick Winslow Taylor

suggested that decisions based on rules of thumb and tradition be replaced with precise procedures developed after careful study of individual situations. He stressed efficency. Indeed, the ideas of creating a system for maximum efficiency and organizing work for maximum productivity are deeply embedded in our organizations.

Outsourcing

which means contracting out selected functions or activities to other organizations that can do the work more cost efficiently.These relationships might reach far beyond the boundaries of the physical organization; they are built through flexible e-links between a company and its employees, suppliers, partners, and customers