Test 1 - management 2010, Management chapter 2, Management 2010- Chapter 3, Chapter 4- MGT 2010
Evidence based management
translating principles based on best evidence into organizational practice, and bringing rationality to the decision making process
Which type of organization represents the employees of a firm?
unions
Sarbanes-Oxley Act
established requirements for proper financial record keeping for public companies
Characteristics of a Successful International Manager
ethnocentric, polycentric, geocentric
institutional collectivism
extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals
what is entropy?
Entropy may occur when an organization does not adequately monitor environmental feedback and make adjustments.
Hugo Munsterberg
father of industrial psychology -study jobs and determine which people are best suited to specific jobs -identify the psychological conditions under which employees do their best work -devise management strategies to influence employees to follow management's interests
Cultural Variations
language, interpersonal space, communication, time orientation, religion, law and political stability
How can we explain the increase in the diversity of the labor force?
legislative requirements for diversity
Corporate Governance Includes:
long-term strategies, sustainable finances, accurate reporting, and positive work environment
Foreign Corrupt Act (FCPA)
makes it illegal for companies to make "dubious" contributions to political decision makers in foreign nations
Philanthropy
making charitable donations to benefit humankind
Social Responsibility
manager's duty to take actions that will benefit the interests of society as well as of the organization
conceptual skills
managers ability to think in the abstract
administrative management focuses on?
managing the total organization
triple bottom line
measures an organization's social, environmental, and financial performance
World Trade Organization (WTO)
monitor/enforce trade agreements
Organizations are influenced by the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by employees of different cultures known as
multiculturalism
Technological Forces
new developments in methods for transforming resources into goods or services
multinational organization
nonprofit organization with operations in several countries
Approaches to Social Responsibility (low -> high)
obstructionist, defensive, accommodative, proactive
Triple bottom line represents
People, planet, profit
supplier
Provides raw materials, services, equipment, labor, or energy to other organizations
general environment
Refers to the macroenvironment such as economic, technological, and sociocultural
3 Influential Effects of Globalization
Rise of the Global Village, Rise of E-Commerce, and One Big World Market: Global Economy(megafirms and minifirms)
What about Henri Fayol?
Suggested classical management consist of both Scientific management ideas and administrative management ideas 1. planning 2. organization 3. command 4. coordinate 5. control
what is the integrative/systems perspective?
Systems perspective - a system is an interrelated set of elements functioning as a whole - an open system acts with its environment - a closed systems does not act with its environment - a subsystem is a system within another system
Minifirms are operating worldwide
The Internet allows almost anyone to be global, Small companies can get started more easily, Small companies can maneuver faster
social audit
a systematic assessment of a company's performance in implementing socially responsible programs - can measure success
Open systems
organizations that are affected by, and that affect, their environment, produce synergy
Using the elements of the systems perspective, synergy can be thought of as a(n) ______________?
output
Management in past civilizations?
over 4000 years of breakthroughs and practices over these years
key assumptions of scientific management?
people are tools to be tweaked and perfected people will work harder for financial incentives level of analysis problem
external stakeholders
people or groups in the organization's external environment that are affected by it
competitors
people or organizations that compete for customers or for service
high-context culture
people rely heavily on situational (nonverbal) cues for meaning when communicating with others
values
relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior
Behavioral science approach
relies on scientific research for developing theory to provide practical management tools
Sarbanes-Oxley Act of 2002
requires that the CEO and CFO of large companies that have publicly traded stock personally certify that financial reports made to the SEC comply with SEC rules and that info in the reports are accurate.
Scientific management focuses on?
ways to improve production of individual workers
Contemporary perspective
systems, contingency, and quality-management
power distance
the degree to which a society's members expect power to be unequally shared
uncertainty avoidance
the extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events
gender egalitarianism
the extent to which a society should minimize gender discrimination and role inequalities
in-group collectivism
the extent to which people should take pride in being members of their family, circle of close friends, and their work organization
performance orientation
the extent to which society encourages and rewards its members for performance improvement and excellence
Global Economy
the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets - Positive effects: world is more interconnected leading to better and more affordable products and better communication - Negative Effects: movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs
Corporate Social Responsibility
the notion that corporations are expected to go above and beyond following the law and making a profit
Which of the following has contributed to the increased diversity in the labor force?
the percentage of people who are of Hispanic origin is increasing
Organization justice what is it?
the perceptions of people in an organization regarding fairness
quality control
the strategy for minimizing errors by managing each stage of production
Corporate Governance
the system of governing a company so that the interests of corporate owners and other stakeholders are protected
customers
those who pay to use an organization's goods or services
problem with classical viewpoint
to mechanistic, views humans as cogs within a machine
Quality
total ability of a product or service to meet customer needs
ethical dilemma
a situation in which there is a choice between two options, neither of which resolves the situation in an ethically acceptable fashion
sanctions
a trade prohibition on certain types of products or services for a specific reason
Barriers to International Trade
tariffs, import quotas, embargoes, sanctions
Import Quotas
limits on the numbers of a product that can be imported
Task Environment
consists of 11 groups that present you with daily tasks to handle
Moral-Rights Approach
guided by respect for the fundamental rights of human beings
strategic allies
relationship of two organizations who join forces to achieve advantages neither can perform as well alone
postconventional
guided by internal values, they lead by example (1/5 managers)
Justice Approach
guided by respect for impartial standards of fairness and equity
Ulitarian Approach
guided by what will result in the "greatest good for the greatest number of people; often associated with financial performance
Individual Approach
guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest
Hawthorne effect
Employees work harder if they receive added attention
Elton Mayo
"Hawthorne effect" Study
Kurt Lewin (father of social psychology)
"there is nothing so practical as a good theory" father of social physcology
what is organization behavior?
- contemporary field focusing on behavioral perspectives on management - organization behavior takes a holistic view of behavior and addresses individual, group, and organization processes Limitations: - behavior difficult to predict -managers reluctant to adopt concepts - research ineffectively communicated to managers
Tools business uses for social responsibilities?
- personal contacts - lobbying - Political action committees (PAC) - favors and other influence tactics
Tools government use on social responsibilities?
- regulation: laws, rules, dictate what can/cannot be done - indirect regulation: tax incentives from companies opened new training centers
principles of logic
1. A well-defined hierarchy of authority 2. Formal rules and procedures 3. A clear division of labor 4. Impersonality 5. Careers based on merit
Why companies expand internationally
1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to finance capital 5. Avoidance of tariffs & import quotas
Who are the "founding fathers" of classical management theory
1. Frederick Taylor 2. Henri Fayol 3. Max Weber
Trans-Pacific Partnership
A trade agreement among 11 Pacific Rim countries
Total Quality Management
1. Make continuous improvement a priority 2. Get every employee involved 3. Listen to and learn from customers and employees 4. Use accurate standards to identify and eliminate problems
Taylor's Four Principles of Scientific Management
1. Scientifically study each part of the task 2. carefully select workers with the right abilities 3. give workers the training and incentives to do the task properly 4. use scientific principles to plan the work methods
Layer of managers?
1. Top managers - control everything 2. middle managers - implement policies from those above 3. first line managers - supervise and coordinate the activities of OPERATING EMPLOYEES
Build a learning organization
1. build a commitment to learning 2. work to generate ideas within impact 3. work to generalize ideas with impact
20th century saw field emerge into what two perspectives
1. classical 2. behavioral
Behavioral Viewpoint Three Phases
1. early behaviorism 2. the human relations movement 3. Behavioral Science
similarities across Henri Fayol's, Max Webers, and Frederik Taylors theories
1. hierarchy and division of labor 2. standardization 3. centralization of authority at the top 4. separate work from the personal 5. select most qualified people (no favorites) 6. use fair pay as an incentive to keep the best people
resources the manager must use efficiently?
1. human resources 2. financial resources 3. physical resources 4. informational resources
Quantitative Management Perspective
1. management science - focuses on specifically the development of mathematical models 2. operations management - concerned with helping the organization more efficiently produce its products or services (Grouped with management science less sophisticated) often includes use of metric "Return on Investment" (ROI) limitations: - cannot fully explain or predict behavior - models may require unrealistic assumptions
what is the management process
1. planning and decision making 2. organizing 3. leading 4. controlling
BRICS Countries
5 major emerging economies - Brazil, Russia, India, China, South Africa
Definition of an organization
A group of people working together in a structured and coordinated fashion to achieve a set of goals
Expatriates
Americans living or working in a foreign country
financial institutions
Banks, savings and loans, and credit unions
Max Weber
Believed that bureaucracy was a rational, efficient, ideal organization based on the principles of logic
Embargoes
Complete bans on trade between one country and another
Single parents, gays and lesbians, and people with different religious beliefs represent major dimensions of _______________in today's organizations?
Diversity
What is synergy?
Effect of two or more agents combined to produce a greater effect than the sum of their individual effects.
Behavioral viewpoint
Emphasis on importance of understanding human behavior and motivating and encouraging toward achievments
Scientific Management
Emphasizes scientific study of work methods to improve productivity of individual workers pioneered by: Frederick W. Taylor and the Gilbreths assumes people are rational Concerned with the jobs of individuals
Maquiladora
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico
Michael Porter defined the?
Five competitive forces -Threat of new entrants - competitive rivalry - threat of substitute products - power of buyers - power of suppliers
what about Frederick Taylor?
Frederick Taylor saw workers soldiering, he devised a four step method to overcome this issue (narrow approach/ micro) 1. develop science for each element of the job to replace old-rule of thumb methods 2. scientifically select employees and then train them for the job 3. supervise employees doing jobs 4. continue to plan the work, using workers to accomplish
Mayo is?
Hawthorne studies, social context was important
Megafirms and mergers are on the rise
Industries are becoming bigger and cross-global, especially automobiles, telecommunications, and healthcare
employee organizations
Labor unions and professional associations
McGregor
Leaders assumptions about work/workers guide their behaviors Theory X and Theory Y
Henri Fayol
Macro level focus how do we manage an organization? Administrative management and processes that exist today
Integration Framework (main idea from all these perspectives)?
Managers should include portions of each perspective relevant to their situation and apply them using systems and contingency approaches.
local communities
May institute clawbacks: rescinding tax breaks when firms don't deliver promised jobs May engage in crowdfunding: raising money for a project by obtaining many small amounts of money from many people (the crowd)
Though ____________ is less statistically sophisticated than management science, it is still categorized with the quantitative management perspective.
Operations management
diagnostic skills
The manager's ability to visualize the most appropriate response to a situation
Technical skills
The skills necessary to accomplish or understand the specific kind of work being done in an organization
Douglas McGregor
Theory X and Y
Theory X vs Theory Y managers?
Theory X: (negative assumptions) - people do not like work - threaten employees to accomplish - no ambition Theory Y: (positive assumptions) - people are motivated if committed - people seek responsibility given right conditions - people are bright, potential underutilized
what is the managers job?
To achieve organizational goals -efficiently: using resources wisely and in a cost effective way -effectively: making the right decisions and effectively implementing them
Why the Classical Viewpoint is Important?
Work activity was amenable to a rational approach Through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity
Organizations Promoting International Trade
World Trade Organization, World Bank, International Monetary Fund
what are yuppies?
Young urban professionals 80s generation x,y, and millenials
Franchising
a company allows a foreign company to pay it a fee and a share of the profit in return for using the company's brand name and a package of materials and services
Licensing
a company allows a foreign company to pay it a fee to make or distribute the firm's product or service
importing
a company buys goods outside the country and resells them domestically
Geocentric managers
accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective
Quantitative Viewpoint
applies quantitative techniques to management
humans relation movement started?
argued that workers respond primarily to the social context of the workplace -stemmed from Hawthorne studies - basic assumption is that a managers concern for workers will lead to increased satisfaction and improved performance
Theory X
assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.
Theory Y
assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.
countertrading
bartering goods for goods
Law and Political Stability
be aware of the Foreign Corrupt Practices Act and Expropriation
Global Mindset
be patient, quiet, listen, don't use slang, don't talk about wealth, be globally focused but study local customs, learn appropriate behavior, rituals of respect, become minimally skilled in the language
ethnocentric management
believe that their native country, culture, language, and behavior are superior to all others - related to parochialism
Imagine you are the manager of a quick service restaurant that sells sub sandwiches. Using the systems perspective, match each item in the table below with the appropriate system element. (what is input, transformative process, output, feedback)? yelp reviews, training, bread, sandwiches
bread - input training - transformative process sandwiches - output yelp reviews - feedback
Stuff about max weber
bureaucracy - big picture approach (macro) - move away from feudal systems - authority derived from your position - legal/rational approach - clear rules and standard guidelines avoiding favoritism
International Forces
changes in the economic, political, legal, and technological global system that may affect an organization
Political-Legal Forces
changes in the way politics shape laws and laws shape the opportunities for and threats to an organization
Historical Perspective
classical, behavioral, and quantitative
administrative management
concerned with managing total organization Herni Fayol and Max Weber
economic forces
consist of the general economic conditions and trends (unemployment, inflation, interest rates, economic growth - that may affect an organization's performance)
tarrifs
customs duty, or tax, levied mainly on imports - 2 types: revenue and protective
human orientation
degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair
most favored nation status
describes a condition in which a country grants other countries favorable trading treatment, such as the reduction of import duties - purpose: to promote stronger and more stable ties between companies in 2 countries
International Monetary Fund (IMF)
designed to assist in smoothing the flow of money between nations
Sustainability
economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Carroll's Global Corporate Social Responsibility Pyramid
economic, legal, ethical, philanthropic
The manager must also be able to make the right decisions meaning she/he needs to also be?
effective
The managers job is to use the organizations resources wisely, meaning he/she must be _______________?
efficent
Classical Viewpoint
emphasis on ways to manage work more efficiently
Behavioral management theory?
emphasizes individual attitudes and behaviors and group processes
contingency viewpoint
emphasizes that a manager's approach should vary according to the individual and the environmental situation adresses on case by case basis
As environmental forces change—including consumer shopping patterns and the power of competitors—companies like JCPenney and Best Buy seek to remain relevant. They seek to avoid__________?
entropy
1940s - management new field of study
first textbook on management
Operations Management
focuses on managing the production and delivery of an organizations products or services more effectively Concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels
quality assurance
focuses on the performance of workers, urging employees to strive for "zero defects"
management science
focuses on using mathematics to aid in problem solving and decision making
conventional
follows expectations of others (most managers)
preconventional
follows rules to avoid unpleasant consequence
multinational corporation
for-profit business firm with operations in several countries
Major catalyst for management theory?
industrial revolution
Sociocultural Forces
influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization
Demographic Forces
influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin
organizing
involves determining how activities and resources are to be grouped what do we want to accomplish?
decision making
involves selecting a course of action from competing alternatives
controlling
is monitoring organization progress toward goal attainment how we will motivate and inspire our employees?
leading
is set of processes used to get members of the organization to work together to further the interest of the organization how we are performing against our goals?
Maslow's Hierarchy of Needs
physiological, safety, love/belonging, esteem, self-actualization
Faylos major functions of management
planning, organizing, leading, controlling, coordinating
mass media
power of print, radio, TV, and the Internet on an organization's news, both good and bad
Kohlberg's 3 levels of moral development
preconventional, conventional, postconventional
exporting
producing goods domestically and selling them outside the country
Human Relations Movement
proposed better human relations could increase worker productivity Abraham Maslow and Douglas McGregor
World Bank
provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications
Quality management viewpoint
quality control, quality assurance, total quality management
Exchange Rates
rate at which the currency of one nation can be exchanged for the currency of another nation
complexity theory
recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules
what is distributive justice?
reflects the perceived fairness of decision making outcomes - equity, equality, need
procedural justices what is it?
reflects the perceived fairness of decision making processes does the organization... -make decisions accurately - treat people with consistency - have a way to correct decisions - ethical and legal standards - avoid supervisor bias
information justice?
reflects the perceived fairness of the communication between organization authorities from employees
government regulators
regulatory agencies that establish ground rules under which organizations may operate
social responsibility?
set of obligations an organization has to protect and enhance the societal context in which it functions
planning
setting an organization's goals and deciding how best to achieve them who does what?
low-context culture
shared meanings are primarily derived from written and spoken words
culture
shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people
Mary Parker Follett
social worker and social philosopher Work anticipated todays concepts of "self managed teams" -organizations should be operated as communities -conflicts should be resolved by managers and workers talking over differences, solution satisfies both parties -work process should be controlled by workers with relevant knowledge; managers are facilitators
ethics
standards of right and wrong that influence behavior
Conflicting value systems for an organization
stressing financial performance versus stressing cohesion and solidarity in employee relationships
Types of Social Responsibility
sustainability, natural capital, philanthropy
Your inputs from environments are? then _____ process? and what is goals are attained?
your resources (humans, financial, physical, etc...) management process cycles goals attained are efficiently and effectively
Max weber again?
macro level focus, bureaucracy and later organization theory how should organizations be structured and organized?
interpersonal justice
reflects the perceived fairness of the treatment received by employees from authorities
distributor
a person or organization that helps another organization sell its goods and services to customers
GLOBE Project
a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes started by House
parochialism
a narrow view in which people see things solely through their own perspective
board of directors
members elected by the stockholders to see that the company is being run according to their interests
Frederick Taylor again?
micro level focus, scientific management how do we make work more efficient? "Soldiering"
Learning Organization
organization that actively created, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge
Disney experienced _____________ with the development of the movie, Frozen, because it was able to also use Frozen as a theme at its theme parks and in product merchandising?
synergy
Global Village
the "shrinking" of time and space as air travel and the electronic media have made it much easier for the people of the globe to communicate with one another
Future Orientation
the extent to which a society encourages investment in the future, as by planning and saving
Closed systems
Organizations that have little interaction with their environment
what are theories?
a conceptual framework for organizing knowledge and providing a blueprint for action
greenfield venture
a foreign subsidiary that the owning organization has built from scratch
Expropriation
a government's seizure of a domestic or foreign company's assets
Trading Blocs
group of nations within a geographic region that have agreed to remove trade barriers with one another ex: USMCA and EU
special-interest groups
groups whose members try to influence specific issues
Internal stakeholders
consists of employees, owners, and board of directors
owners
consists of those who claim the organization as their legal property
Classical Management review (scientific and administrative) ?
contributed: - foundation for management theory - identified key processes, functions, and skills - made management a valid subject of study limitations - best used in simple organizations - universal procedures may not be appropriate in some settings - employees not viewed as resources
Expanding Internationally
global outsourcing, importing, exporting, countertrading, licensing, franchising, joint ventures, and wholly-owned subsidiary
Wholly-owned subsidiary
foreign subsidiary that is totally owned and controlled by an organization (highest risk and investment)
Joint Ventures
formed with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country (strategic alliance)
Mary has been promoted several times but she has struggled to make it into top management. This may be due to a barrier known as the
glass ceiling
Systematic, dynamic, logical, intuitive, experience, rational, objective, subjective are Art or science?
systematic - science dynamic - art logical - science intuitive - art experience - art rational - science objective - science subjective - art
Polycentric managers
take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
Assertiveness
the extent to which a society expects people to be confrontational and competitive as opposed to tender and modest
globalization
the trend of the world economy toward becoming a more interdependent system
natural capital
the value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on
global outsourcing (offshoring)
using suppliers outside the United States to provide labor, goods, or services (lowest risk and investment)
4 approaches to deciding ethical dilemmas
utilitarian, individual, moral-rights, justice