Management

Personal Agression

Personal aggression is hostile or aggressive behavior toward others. Examples include sexual harassment, verbal abuse, stealing from coworkers, and personally threatening coworkers.

Performance Feedback

The second method of tracking progress is to gather and provide performance feedback. Regular, frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies. Proper action on performance feedback can keep you from failing to adapt, one of the pitfalls of planning.

System

a set of interrelated elements or parts that function as a whole

Purpose Statement

a statement of a company's purpose or reason for existing

Effectiveness

accomplishing tasks that help fulfill organizational objectives

Efficiency

getting work done with a minimum of effort, waste or expense

Production Deviance

hurts the quality and quantity of work produced. Examples include leaving early, taking excessively long work breaks, intentionally working more slowly, or wasting resources.

What are the four basic functions of management?

planning, operating, leading, and controlling

Codes of Ethics

A company must communicate its code inside and outside the company. Management must develop practical ethical standards and procedures specific to the company's line of business. Today, almost all large corporations have an ethics code in place. Even if a company has a code of ethics like this, two things must still happen if those codes are to encourage ethical decision making and behavior. First, a company must communicate its code to others both inside and outside the company. Second, in addition to having an ethics code with general guidelines like "do unto others as you would have others do unto you," management must also develop practical ethical standards and procedures specific to the company's line of business.

Keys to an Organizational Culture That Fosters Success

Adaptability, Employee Involvement, Clear Mission, Constistency Adaptability is the ability to notice and respond to changes in the organization's environment. Company mission is the business's purpose or reason for existing. In an organizational culture that includes a clear company mission, the organization's strategic purpose and direction are apparent to everyone in the company. Finally, in a consistent organizational culture, the company actively defines and teaches organizational values, beliefs, and attitudes. Consistent organizational cultures are also called strong cultures because the core beliefs are widely shared

Stable / Dynamic

Although you might think that a company's external environment would be either stable or dynamic, research suggests that companies often experience both. According to punctuated equilibrium theory, companies go through long, simple periods of stability (equilibrium) during which incremental changes occur, followed by short, complex periods of dynamic, fundamental change (revolutionary periods), which end with a return to stability (new equilibrium)

Middle Managers

Examples of middle managers in a company include plant manager, regional manager, or divisional manger. They are responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving those objectives. One specific middle management responsibility is to plan and allocate resources to meet objectives. Middle managers are also responsible for coordinating various groups with the company, and monitoring the performance of subunits.

First Line Managers

First line managers, which include office managers, shift supervisors, and department managers, are responsible for managing the performance of entry-level employees. Rather than supervising other managers, first line managers oversee the work of employees that are directly responsible for the company's goods or services. Thus, first line managers are responsible for encouraging and monitoring the performance of employees, teaching new employees how to do their jobs, and making schedules and operating plans.

Management

Getting work done through others In practice, this means that managers are not responsible for, say, knowing how to operate all of the machines on an assembly line. Instead, managers are responsible for enabling and equipping people in the company to do their jobs as best as possible

Ethical Climate

Organizational culture is key to fostering ethical decision making. Management needs to be active in and committed to the ethics program. Encourage managers and employees to report ethical violations (whistleblowing) The first step in establishing an ethical climate is for managers, especially top managers, to act ethically themselves. A second step in establishing an ethical climate is for top management to be active in and committed to the company ethics program. A third step is to put in place a reporting system that encourages managers and employees to report potential ethics violations.

Conventional

People at the conventional level of moral development make decisions that conform to societal expectations. In other words, they look to others for guidance on ethical issues. In Stage 3, the good boy, nice girl stage, you normally do what the other "good boys" and "nice girls" are doing. In the law and order stage, Stage 4, you again look for external guidance but do whatever the law permits.

Stakeholder Model of Corporate Social Responsibility

People or groups who are interested in and affected by the organization's actions. Primary stakeholders Secondary stakeholders

Zone of Indifference

People will be indifferent to managerial directives if they are understood are consistent with organization's purpose are compatible with people's personal interests can actually be carried out by those people According to Barnard, the extent to which people willingly cooperate in an organization depends on how workers perceive executive authority and whether they're willing to accept it. Many managerial requests or directives fall within a zone of indifference in which acceptance of managerial authority is automatic.

Personality Based integrity test

Personality-based integrity tests indirectly estimate job applicants' honesty by measuring psychological traits such as dependability and conscientiousness.

Creation and Maintenance of Organizational Cultures

Primary source of organizational culture is the company founder. Organizational culture is sustained by... -organizational stories -organizational heroes

Primary Stakeholders

Primary stakeholders are groups on which the organization depends for its long-term survival. They include shareholders, employees, customers, suppliers, governments, and local communities

Proactive Customer Monitoring

Proactive monitoring of customers means identifying and addressing customer needs, trends, and issues before they occur.

Uncertainty

The extent to which managers can understand or predict the external changes and trends affecting their business.

General Environment

The general environment consists of the economy and the technological, sociocultural, and political/legal trends that indirectly affect all organizations. Changes in any sector of the general environment eventually affect most organizations

Political / Legal Component

The legislation, regulations, and court decisions that govern and regulate business behavior Many managers are unaware of the potential legal risks associated with traditional managerial decisions like recruiting, hiring, and firing employees.

Overt Integrity Tests

There are two ways that employers can increase their chances of hiring honest, ethical employees. Overt integrity tests estimate job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors.

Social Responsibility and Economic Performance

There is no tradeoff between being socially responsible and economic performance. It usually does pay to be socially responsible. There is no guarantee that socially responsible companies will be profitable

Closed Systems

can function without interacting with their environments

Ethical Behavior

conforms to a society's accepted principles of right and wrong.

Stakeholder Model

management's most important responsibility is not just maximizing profits, but the firm's long term-survival.

Conceptual Skills

the ability to see the organization as a whole, to understand how the different parts of the company affect each other, and to recognize how the company fits into or is affected by its external environment such as the local community, social and economic forces, customers, and the competition. Good managers have to be able to recognize, understand, and reconcile multiple complex problems and perspectives. In other words, managers have to be smart!

Supplier Dependence

the degree to which a company relies on that supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources for that product

Buyer Dependence

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier's sales and the difficulty of finding other buyers of its products.

Maintaining Flexibility

Because action plans are sometimes poorly conceived and goals sometimes turn out not to be achievable, the last step in developing an effective plan is to maintain flexibility. One method of maintaining flexibility while planning is to adopt an options-based approach.

Steps to Rational Decision Making

Define the problem Identify decision criteria Weight the criteria Generate alternative courses of action Evaluate each alternative Compute the optimal decision

Creating C-type conflict

Devil's advocacy Nominal Group Technique Delphi Technique Brainstorming/Electronic brainstorming

Specific Environment

Each organization also has a specific environment that is unique to that firm's industry and directly affects the way it conducts day-to-day business. ex: advocacy groups, industry regulation, suppliers, competitors, customers

Lower Managers

Lower-level managers are responsible for developing and carrying out operational plans, which are the day-to-day plans for producing or delivering the organization's products and services.

Middle Management

Middle management is responsible for developing and carrying out tactical plans to accomplish the organization's strategic objective.

Strategic Plan

Strategic planning begins with the creation of an organizational purpose. A purpose statement, which is often referred to as an organizational mission or vision, is a statement of a company's purpose or reason for existing. make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years

Proximal goals and distal goals

The fourth step in planning is to track progress toward goal achievement. There are two accepted methods of tracking progress. The first is to set proximal goals and distal goals. Proximal goals are short-term goals or subgoals, whereas distal goals are long-term or primary goals. The idea behind setting proximal goals is that achieving them may be more motivating and rewarding than waiting to reach far-off distal goals. Proximal goals are less intimidating and more attainable than distal goals, which often feel like biting off more than you can chew. Proximal goals enable you to achieve a distal goal one little piece at a time.

Options Based Planning

The goal of options-based planning is to keep options open by making small, simultaneous investments in many alternative plans. Then, when one or a few of these plans emerge as likely winners, you invest even more in these plans while discontinuing or reducing investment in the others.

Strategic Objective

The strategic objective, which flows from the purpose, is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possess a finish line and a time frame.

Top Management

Top management is responsible for developing long-term strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years. -strategic plans -purpose statement -strategic objective

Political Deviance

Whereas production and property deviance harm companies, political deviance and personal aggression are unethical behaviors that hurt particular people within companies. Political deviance is using one's influence to harm others in the company. Examples include making decisions based on favoritism rather than performance, spreading rumors about coworkers, and blaming others for mistakes they didn't make.

Competitive Analysis

a process of monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

C-type conflict

focuses on problem- and issue-related differences of opinion willingness to examine, compare, reconcile differences to produce the best possible solution

What three roles did henry mintzberg say managers fulfill?

interpersonal informational decisional

Preconvential

level of moral development, people decide based on selfish reasons. If you are in Stage 1, the punishment and obedience stage, your primary concern will be to avoid trouble for yourself. In Stage 2, the instrumental exchange stage, you worry less about punishment and more about doing things that directly advance your wants and needs.

Subsystem

smaller systems within a larger system

Tactical Plan

specify how a company will use resources, budgets, and people to accomplish specific goals related to its strategic objective time frame: 6 months to 2 years

Shareholder model

the only social responsibility that businesses have is to maximize profits

Workplace Deviance

unethical behavior that violates organizational norms about right and wrong.

Responses to Demands for Social Responsibility

Social responsiveness: a company's strategy for responding to stakeholders' expectations concerning economic, legal, ethical, or discretionary responsibility.

Information Management

Throughout history, organizations have pushed for and quickly adopted new information technologies to reduce the cost or increase the speed with which they can acquire, retrieve, or communicate information. For most of recorded history, information has been costly, difficult to obtain, and slow to spread compared to modern standards. Documents were written by hand. Books and manuscripts were extremely labor-intensive and therefore expensive. Although letters and other such documents were relatively easy to produce, transporting the information in them relied on horses, foot travelers, and ships. Businesses have always looked for information technologies that would speed access to timely information.

Controlling

monitoring progress toward goal achievement and taking corrective action when progress isn't being made. This means that managers must set standards to achieve goals, compare actual performance to those standards, and then make changes if/when performance does not meat those standards.

Leading

inspiring and motivating workers to work hard to achieve organizational goals. leading is about energizing people so that they want to give their best efforts at work.

Open Systems

interact with their environments and depend on them for survival

Reactive Customer Monitoring

involves identifying and addressing customer trends and problems after they occur One reactive strategy is to listen closely to customer complaints and respond to customer concerns

Economy

A growing economy provides a favorable environment for business growth. Business confidence indices show how confident managers are about future business growth.

Slack Resources

A key necessity of options-based planning is the availability of slack resources, a cushion of resources that can be used to address and adapt to unanticipated changes, problems, or opportunities.

Informational Roles

According to Mintzberg's research, managers spent 40 percent of their time giving and getting information. In this regard, management can be viewed as gathering information by scanning the business environment and listening to others in face-to-face conversations, processing that information, and then sharing it with people both inside and outside the company. Mintzberg described three informational subroles: monitor, disseminator, and spokesperson. In the monitor role, managers scan their environment for information, actively contact others for information, and, because of their personal contacts, receive a great deal of unsolicited information. In the disseminator role, managers share the information they have collected with their subordinates and others in the company. In contrast to the disseminator role, in which managers distribute information to employees inside the company, managers in the spokesperson role share information with people outside their departments and companies.

Principles of Ethical Decision Making

According to the principle of long-term self-interest, you should never take any action that is not in your or your organization's long-term self-interest. The principle of personal virtue holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV. The principle of religious injunctions holds that you should never take an action that is unkind or that harms a sense of community, such as the positive feelings that come from working together to accomplish a commonly accepted goal. According to the principle of government requirements, the law represents the minimal moral standards of society, and so you should never take any action that violates the law. The principle of utilitarian benefits states that you should never take an action that does not result in greater good for society. In short, you should do whatever creates the greatest good for the greatest number. The principle of individual rights holds that you should never take an action that infringes on others' agreed-upon rights. Finally, under the principle of distributive justice, you should never take any action that harms the least fortunate among us in some way.

Changing Organizational Structures

Behavioral addition Behavioral substitution Change visible artifacts Hiring people with values and beliefs consistent with desired culture Corporate cultures are very difficult to change. Consequently, there is no guarantee that any one approach—changing visible cultural artifacts, using behavioral substitution, or hiring people with values consistent with a company's desired culture—will change a company's organizational culture. The best results are obtained by combining these methods. Together, these are some of the best tools managers have for changing culture because they send the clear message to managers and employees that "the accepted way of doing things" has changed.

Henri Fayol

Administrative Management: "The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability." Fayol's ideas were shaped by his experience as a managing director (CEO) and generally changed companies from the board of directors down. Fayol is best known for developing five functions of managers and fourteen principles of management. Based on his experience as a CEO, Fayol argued that "the success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability." And, as you learned in Chapter 1, Fayol argued that managers need to perform five managerial functions if they are to be successful: planning, organizing, coordinating, commanding, and controlling. Because most management textbooks have dropped the coordinating function and now refer to Fayol's commanding function as "leading," these functions are widely known as planning determining organizational goals and a means for achieving them), organizing (deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom), leading (inspiring and motivating workers to work hard to achieve organizational goals), and controlling (monitoring progress toward goal achievement and taking corrective action when needed).

Advocacy Groups

Advocacy groups are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions. The members of a group generally share the same point of view on a particular issue. These groups use a number of approaches to try to influence companies. The public communications approach relies on voluntary participation by the news media and the advertising industry to send out an advocacy group's message. Media advocacy is much more aggressive than the public communications approach. A media advocacy approach typically involves framing the group's concerns as public issues (affecting everyone); exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage. A product boycott is a tactic in which an advocacy group actively tries to persuade consumers not to purchase a company's product or service.

Punctuated Equilibrium Theory

Although you might think that a company's external environment would be either stable or dynamic, research suggests that companies often experience both. According to punctuated equilibrium theory, companies go through long, simple periods of stability (equilibrium) during which incremental changes occur, followed by short, complex periods of dynamic, fundamental change (revolutionary periods), which end with a return to stability (new equilibrium)

Action Plans

An action plan lists... Specific steps (how) People (who) Resources (what) Time period (when) ...for accomplishing a goal

Max Webber

Bureaucratic Management Bureaucracy - "the exercise of control on the basis of knowledge" people led by virtue of rational-legal authority German sociologist Max Weber (1864-1920) first proposed the idea of bureaucratic organizations, however, these problems were associated with monarchies and patriarchies rather than bureaucracies. In monarchies, where kings, queens, sultans, and emperors ruled, and patriarchies, where a council of elders, wise men, or male heads of extended families ruled, the top leaders typically achieved their positions by virtue of birthright. Likewise, promotion to prominent positions of authority was based on who you knew (politics), who you were (heredity), or traditions. It was against this historical background that Weber proposed the then new idea of bureaucracy. According to Weber, bureaucracy is "the exercise of control on the basis of knowledge." Rather than ruling by virtue of favoritism or personal or family connections, people in a bureaucracy would lead by virtue of their rational-legal authority—in other words, their knowledge, expertise, or experience. Furthermore, the aim of bureaucracy is not to protect authority, but to achieve an organization's goals in the most efficient way possible.

Planning

Choosing a goal and developing a strategy to achieve that goal Planning offers several important benefits: intensified effort, persistence, direction, and creation of task strategies. First, managers and employees put forth greater effort when following a plan. Planning leads to persistence, that is, working hard for long periods. In fact, planning encourages persistence even when there may be little chance of short-term success. The third benefit of planning is direction. Plans encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don't. The fourth benefit of planning is that it encourages the development of task strategies. In other words, planning not only encourages people to work hard for extended periods and to engage in behaviors directly related to goal accomplishment, it also encourages them to think of better ways to do their jobs. Finally, perhaps the most compelling benefit of planning is that it has been proven to work for both companies and individuals.

Mary Parker Follett

Constructive Conflict: Conflict - "the appearance of difference, difference of opinions, of interests" Integrative conflict resolution have both parties indicate their preferences and then work together to find an alternative that meets the needs of both Follett believed that the best way to deal with conflict was not domination, where one side wins and the other loses, or compromise, where each side gives up some of what they want, but integration. Said Follett, "There is a way beginning now to be recognized at least, and even occasionally followed: when two desires are integrated, that means that a solution has been found in which both desires have found a place that neither side has had to sacrifice anything." So, rather than one side dominating the other or both sides compromising, the point of integrative conflict resolution is to have both parties indicate their preferences and then work together to find an alternative that meets the needs of both. According to Follett, "Integration involves invention, and the clever thing is to recognize this, and not to let one's thinking stay within the boundaries of two alternatives which are mutually exclusive." Indeed, Follett's ideas about the positive use of conflict and an integrative approach to conflict resolution predate accepted thinking in the negotiation and conflict resolution literature by six decades (see the best-selling book Getting to Yes: Negotiating Agreement without Giving In by Roger Fisher, William Ury, and Bruce Patton).

Chester Barnard

Cooperation and Acceptance of Authority Organization - "system of consciously coordinated activities or forces of two more persons" The extent to which people willingly cooperate in an organization depends on how workers perceive executive authority and whether they're willing to accept it. Like Henri Fayol, Chester Barnard (1886-1961) had experience as a top executive that shaped his views of management. Barnard began his career in 1909 as an engineer and translator for AT&T, becoming a general manager at Pennsylvania Bell Telephone in 1922 and then president of New Jersey Bell Telephone in 1927.40 Barnard's ideas, published in his classic book, The Functions of the Executive, influenced companies from the board of directors down. He is best known for his ideas about cooperation and the acceptance of authority. Barnard proposed a comprehensive theory of cooperation in formal organizations. In fact, he defined an organization as a "system of consciously coordinated activities or forces of two or more persons."

Specific Environment

Customers Competitors Suppliers Industry regulations Advocacy groups Each organization has a specific environment that is unique to that firm's industry and which directly affects the way it conducts day-to-day business. The five components of the specific environment are customers, competitors, suppliers, industry regulations, and advocacy groups.

Sociocultural Component

Demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society

Objectives of Ethical Training

Develop employees' awareness of ethics Achieve credibility with employees Teach employees a practical model of ethical decision making In addition to establishing ethical standards for the company, managers must sponsor and be involved in ethics and compliance training in order to create an ethical company culture

Why We Need Managers Today

During the Industrial Revolution... Availability of power enabled low-paid, unskilled labor to replace high-paid skilled artisans Job carried out in large, formal organizations rather than fields, homes, or small shops For most of humankind's history, for example, people didn't commute to work. Work usually occurred in homes or on farms. And as recently as 1870, two-thirds of Americans earned their living from agriculture. During the Industrial Revolution (1750-1900), however, jobs and organizations changed dramatically. First, the availability of power (steam engines and later electricity) enabled low-paid, unskilled laborers running machines to replace high-paid, skilled artisans who made entire goods by themselves by hand. While workers focused on their singular tasks, managers were needed to coordinate the different parts of the production system and optimize While workers focused on their singular tasks, managers were needed to coordinate the different parts of the production system and optimize Second, instead of being performed in fields, homes, or small shops, jobs were carried out in large, formal organizations where hundreds, if not thousands, of people worked under one roof.6 With individual factories employing so many workers under one roof, companies now had a strong need for disciplinary rules to impose order and structure. For the first time, they needed managers who knew how to organize large groups, work with employees, and make good decisions.

For what are organizations socially response?

Economic responsibility Legal responsibility Ethical responsibility Discretionary responsibility Historically, economic responsibility, or the expectation that a company will make a profit by producing a product or service valued by society, has been a business' most basic social responsibility. Organizations that don't meet their financial and economic expectations come under tremendous pressure. Legal responsibility is a company's social responsibility to obey society's laws and regulations as it tries to meet its economic responsibilities. Ethical responsibility is a company's social responsibility not to violate accepted principles of right and wrong when conducting business. Discretionary responsibilities pertain to the social roles that businesses play in society beyond their economic, legal, and ethical responsibilities.

Influences on Ethical Decision Making

Ethical intensity Moral development Ethical principles Although some ethical issues are easily solved, many do not have clearly right or wrong answers. But even though the answers are rarely clear, mangers do need to have a clear sense of how to arrive at an answer in order to manage this ethical ambiguity well. The ethical answers that managers choose depend on the ethical intensity of the decision, the moral development of the manager, and the ethical principles used to solve the problem.

Henry Gantt

Gantt Chart visually indicates what tasks must be completed at which times in order to complete a project One of the first to recommend that companies train and develop workers 2- "A scientific investigation in detail of each piece of work, and the determination of the best method and the shortest time in which the work can be done. " 2- "A teacher capable of teaching the best method and the shortest time." 3. "Reward for both teacher and pupil when the latter is successful." Henry Gantt (1861-1919) was first a protégé and then an associate of Frederick Taylor. Gantt is best known for the Gantt chart, but he also made significant contributions to management with respect to the training and development of workers. Gantt, along with Taylor, was one of the first to strongly recommend that companies train and develop their workers. In his work with companies, he found that workers achieved their best performance levels if they were trained first. At the time, however, supervisors were reluctant to teach workers what they knew for fear they could lose their jobs to more knowledgeable workers. Gantt overcame the supervisors' resistance by rewarding them with bonuses for properly training all of their workers. Gantt's approach to training was straightforward: "(1) A scientific investigation in detail of each piece of work, and the determination of the best method and the shortest time in which the work can be done. (2) A teacher capable of teaching the best method and the shortest time. (3) Reward for both teacher and pupil when the latter is successful."

Developing Commitment to Goals

Goal commitment the determination to achieve a goal Set goals collectively Make the goal public Obtain top management's support Just because a company sets a goal doesn't mean that people will try to accomplish it. If workers don't care about a goal, that goal won't encourage them to work harder or smarter. Thus, the second step in planning is to develop commitment to goals. It is important to recognize that commitment to a goal is not automatic. Managers and workers must choose to commit themselves to a goal. So what can managers do to increase goal commitment? The most popular approach is to set goals participatively. Rather than assigning goals to workers, managers and employees choose goals together. Another technique for gaining commitment to a goal is to make the goal public. Still another way to increase goal commitment is to obtain top management's support. Top management can show support for a plan or program by providing funds, speaking publicly about the plan, or participating in the plan itself.

Pitfalls to group decision making

Groupthink occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution. Groupthink is most likely to occur under the following conditions: • The group is insulated from others who might have different perspectives. • The group leader begins by expressing a strong preference for a particular decision. • The group has no established procedure for systematically defining problems and exploring alternatives. • Group members have similar backgrounds and experiences. A second potential problem with group decision making is that it takes considerable time. Reconciling schedules so that group members can meet takes time. Furthermore, it's a rare group that consistently holds productive task-oriented meetings to effectively work through the decision process. Some of the most common complaints about meetings (and thus group decision making) are that the meeting's purpose is unclear, participants are unprepared, critical people are absent or late, conversation doesn't stay focused on the problem, and no one follows up on the decisions that were made. A third possible pitfall to group decision making is that sometimes one or two people, perhaps the boss or a strong-willed, vocal group member, can dominate group discussions and limit the group's consideration of different problem definitions and alternative solutions. And, unlike individual decisions where people feel personally responsible for making a good choice, another potential problem is that group members may not feel accountable for the decisions made and actions taken by the group.

Elton Mayo

Human factors related to work were found to be more important than physical conditions or design of work. Workers not just extensions of machines, and financial incentives weren't necessarily the most important for motivating workers. Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance. The Hawthorne Studies demonstrated that the workplace was more complex than previously thought, that workers were not just extensions of machines, and that financial incentives weren't necessarily the most important motivator for workers. Thanks to Mayo and the Hawthorne Studies, managers better understood the effect that group social interactions, employee satisfaction, and attitudes had on individual and group performance.

Pitfalls of planning

Impedes change and prevents or slows adaptation Creates a false sense of certainty Detachment of planners Planning has great benefits, but it can also significantly hinder a company's performance. A plan won't fix all of a company's problems, and even companies with solid plans can find themselves in deep trouble. The first pitfall of planning is that it can impede change and prevent or slow needed adaptation. Sometimes companies become so committed to achieving the goals set forth in their plans, or on following the strategies and tactics spelled out in them, that they fail to see that their plans aren't working or that their goals need to change. The second pitfall is that planning can create a false sense of certainty. Planners sometimes feel that they know exactly what the future holds for their competitors, their suppliers, and their companies. If, however, their assumptions about the future are wrong, then the plans, which are based on the assumptions, will only lead to failure. The third potential pitfall of planning is the detachment of planners. In theory, strategic planners and top-level managers are supposed to focus on the big picture and not concern themselves with the details of implementation (i.e., carrying out the plan). According to management professor Henry Mintzberg, detachment leads planners to plan for things they don't understand

Decisional Roles

Mintzberg found that obtaining and sharing information is not an end in itself. Obtaining and sharing information with people inside and outside the company is useful to managers because it helps them make good decisions. According to Mintzberg, managers engage in four decisional subroles: entrepreneur, disturbance handler, resource allocator, and negotiator. In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change. In the disturbance handler role, managers respond to pressures and problems so severe that they demand immediate attention and action In the resource allocator role, managers decide who will get what resources and how many resources they will get. In the negotiator role, managers negotiate schedules, projects, goals, outcomes, resources, and employee raises.

Interpersonal Roles

More than anything else, management jobs are people-intensive, and the interpersonal role of a manager involves dealing with and relating to other people. In fulfilling the interpersonal role of management, managers perform three subroles: figurehead, leader, and liaison. In the figurehead role, managers perform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities. In the leader role, managers motivate and encourage workers to accomplish organizational objectives. In the liaison role, managers deal with people outside their units.

Frank and Lillian Gilbreth

Motion study breaking each task or job into separate motions and then eliminating those that are unnecessary or repetitive Motion study typically yielded production increases of 25 to 300 percent. Frank Gilbreth (1868-1924) began his career as an apprentice bricklayer. While learning the trade, he noticed the bricklayers using three different sets of motions—one to teach others how to lay bricks, a second to work at a slow pace, and a third to work at a fast pace. Wondering which was best, he studied the various approaches and began eliminating unnecessary motions. For example, by designing a stand that could be raised to waist height, he eliminated the need to bend over to pick up each brick. By having lower-paid workers place all the bricks with their most attractive side up, bricklayers didn't waste time turning a brick over to find that side. By mixing a more consistent mortar, bricklayers no longer had to tap each brick numerous times to put it in the right position. Together, Gilbreth's improvements raised productivity from 120 to 350 bricks per hour and from 1,000 bricks to 2,700 bricks per day. As a result of his experience with bricklaying, Gilbreth and his wife Lillian developed a long-term interest in using motion study to simplify work, improve productivity, and reduce the level of effort required to safely perform a job.

Motivation to manage

Motivation to manage is an assessment of how motivated employees are to interact with superiors, participate in competitive situations, behave assertively toward others, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks. Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have a stronger motivation to manage than managers at lower levels. Furthermore, managers with a stronger motivation to manage are promoted faster, are rated as better managers by their employees, and earn more money than managers with a weak motivation to manage.

Operational Plans

Operational plans direct the behavior, efforts, and priorities of operative employees for periods ranging from 30 days to 6 months. Single-use plans deal with unique, one-time-only events. Unlike single-use plans that are created, carried out, and then never used again, standing plans can be used repeatedly to handle frequently recurring events. Policies indicate the general course of action that company managers should take in response to a particular event or situation. Procedures are more specific than policies because they indicate the series of steps that should be taken in response to a particular event. Rules and regulations are even more specific than procedures because they specify what must or must not happen and often describe precisely how a particular action should be performed. Budgeting is quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals.

Postconventional

People at the postconventional level of moral development use internalized ethical principles to solve ethical dilemmas. In Stage 5, the social contract stage, you will refuse to do something unethical because, as a whole, society is better off when the rights of others are not violated. In Stage 6, the universal principle stage, you may or may not do something unethical depending on your principles of right and wrong. Moreover, you will stick to your principles even if your decision conflicts with the law (Stage 4) or what others believe is best for society (Stage 5).

Property Deviance

Property deviance is unethical behavior aimed at company property or products. Examples include sabotaging, stealing, or damaging equipment or products and overcharging for services and then pocketing the difference. Theft of company merchandise by employees, called employee shrinkage, is another common form of property deviance. Employee shrinkage costs U.S. retailers more than $19.5 billion a year, and employees steal more merchandise than shoplifters (47 percent of theft is done by employees, where as 32 percent by shoplifters). Shrinkage takes many forms. "Sweethearting" occurs when employees discount or don't ring up merchandise their family or friends bring to the cash register. In "dumpster diving," employees unload trucks, stash merchandise in a dumpster, and then retrieve it after work.

Social Responsiveness Strategies

Reactive Defensive Accommodative Proactive A company using a reactive strategy will do less than stakeholders expect. It may deny responsibility for a problem or fight any suggestions that it should solve a problem. By contrast, a company using a defensive strategy will admit responsibility for a problem but would do the least required to meet stakeholders' expectations. A company using an accommodative strategy will accept responsibility for a problem and take a progressive approach by doing all that could be expected to solve the problem. Finally, a company using a proactive strategy will anticipate responsibility for a problem before it occurs, do more than expected to address the problem, and lead its industry in its approach.

Industry Regulation

Regulations and rules that govern the practices and procedures of specific industries, businesses, and professions Whereas the political/legal component of the general environment affects all businesses, the industry regulation component consists of regulations and rules that govern the practices and procedures of specific industries, businesses, and professions.

Environmental Scanning

Searching the environment for important events or issues that might affect an organization. Managers scan the environment to reduce uncertainty. Organizational strategies affect environmental scanning. Environmental scanning contributes to organizational performance.

Secondary Stakeholders

Secondary stakeholders, such as the media and special interest groups, can influence or be influenced by a company. Unlike the primary stakeholders, however, they do not engage in regular transactions with the company and are not critical to its long-term survival. Nevertheless, secondary stakeholders are still important because they can affect public perceptions and opinions about a company's socially responsible behavior.

Competitor Component

Surprisingly, managers often do a poor job of identifying potential competitors because they tend to focus on only two or three well-known competitors with similar goals and resources. Another mistake managers may make when analyzing the competition is to underestimate potential competitors' capabilities. When this happens, managers don't take the steps they should to continue to improve their products or services.

Top Managers

The CEO, COO, CFO, and CIO of a company are all top managers. The responsibilities for a top manager include the overall direction of the organization, setting a context for change, creating employee buy-in, creating a positive organizational culture, and monitoring the business environment

Resource Scarcity

The abundance or shortage of critical resources in an organization's external environment.

Ethical Intensity

The degree of concern people have about an ethical issue. Magnitude of consequences Social consensus Probability of effect Temporal immediacy Proximity of effect Concentration of effect Magnitude of consequences is the total harm or benefit derived from an ethical decision. The more people who are harmed or the greater the harm to those people, the larger the magnitude of consequences. Social consensus is agreement on whether behavior is bad or good. Probability of effect is the chance that something will happen and then result in harm to others. If we combine these factors, we can see the effect they can have on ethical intensity. For example, if there is clear agreement (social consensus) that a managerial decision or action is certain (probability of effect) to have large negative consequences (magnitude of consequences) in some way, then people will be highly concerned about that managerial decision or action, and ethical intensity will be high. Temporal immediacy is the time between an act and the consequences the act produces. Temporal immediacy is stronger if a manager has to lay off workers next week as opposed to 3 months from now. Proximity of effect is the social, psychological, cultural, or physical distance of a decision maker from those affected by his or her decisions. Thus, proximity of effect is greater for the manager who works with employees who are to be laid off than it is for the higher-ups who ordered the layoffs. Finally, whereas the magnitude of consequences is the total effect across all people, concentration of effect is how much an act affects the average person. Temporarily laying off 100 employees for 10 months without pay has a greater concentration of effect than temporarily laying off 1,000 employees for 1 month. Which of these six factors has the most impact on ethical intensity? Studies indicate that managers are much more likely to view decisions as ethical when the magnitude of consequences (total harm) is high and there is a social consensus (agreement) that a behavior or action is bad.

Environmental Change

The rate at which a company's general and specific environments change. To some extent, every company faces changes in its environment, whether it's due to changing consumer tastes, new government regulations, or the presence of competitors. The rate of these changes, however, is different depending on whether the company is in a stable environment or a dynamic environment. Stable- slow rate of change Dynamic- fast rate of change

Team Leader

The team leader is a relatively new kind of management position that developed because of the widespread use of self-managing teams, which have no formal supervisor. Therefore, team leaders do not function like first line managers, who have responsibility for monitoring the performance of employees. Instead, team leaders are primarily responsible for facilitating team activities towards accomplishing a goal. Team leaders help their team members plan and schedule work, learn to solve problems, and work effectively with each other. Team leaders also help manage the relationship among team members, and relationships with groups outside of the team. It is important to note, however, that team leaders are not ultimately responsible for the team's performance - the team is.

Scientific Management

The thorough study and testing of different work methods to identify the best, most efficient ways to complete a job.

Contingency Management

There are no universal management theories; the most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time. One of the practical implications of the contingency approach is that management is much harder than it looks. In fact, because of the clarity and obviousness of management theories (OK, most of them), students and workers often wrongly assume that a company's problems would be quickly and easily solved if management would take just a few simple steps. If this were true, few companies would have problems. A second implication of the contingency approach is that managers need to look for key contingencies that differentiate today's situation or problems from yesterday's situation or problems. Moreover, it means that managers need to spend more time analyzing problems, situations, and employees before taking action to fix them. Finally, it means that as you read this text and learn about management ideas and practices, you need to pay particular attention to qualifying phrases such as "usually," "in these situations," "for this to work," and "under these circumstances." Doing so will help you identify the key contingencies that will help you become a better manager.

Interpreting Environmental Factors

Threat or opportunity? Threat managers typically take steps to protect the company from further harm Opportunity managers consider strategic alternatives for taking advantage of those events to improve performance After scanning, managers determine what environmental events and issues mean to the organization. Typically, managers view environmental events and issues as either threats or opportunities. When managers interpret environmental events as threats, they take steps to protect the company from further harm. By contrast, when managers interpret environmental events as opportunities, they consider strategic alternatives for taking advantage of those events to improve company performance.

What skills do good managers have?

When companies look for employees who would be good managers, they look for individuals who have technical skills, human skills, conceptual skills, and the motivation to manage As shown in the exhibit technical skills are very important for team leaders and first line managers, but less important for middle and top managers. Conversely, conceptual skills are most important for top and middle managers, but not as much for first line managers and team leaders. The motivation to manage is relatively important for all managers, but perhaps most for top managers. For all types of managers, however, human skills are quite important.

Relationship Behavior

focuses on establishing a mutually beneficial, long-term relationship between buyers and sellers How important is relationship behavior? Researchers examined the relationships between auto suppliers and eight major automakers in Japan, Korea, and the United States and found that, in cases where a lack of trust existed between suppliers and buyers, procurement costs could be as much as five times higher than when parties trusted one another. Furthermore, the least-trusted companies were often the least profitable

Technology

an umbrella term for the knowledge, tools, and techniques used to transform inputs into outputs Changes in technology can help companies provide better products or produce their products more efficiently.

Suppliers

companies that provide material, human, financial, and informational resources to other companies A key factor influencing the impact and quality of the relationship between companies and their suppliers is how dependent they are on each other.

Organizing

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company.

Planning

determining organizational goals and a means for achieving them. In basic terms, planning is primarily concerned with the question "What business are we in?"

Management by objectives

discuss possible goals collectively set goals jointly develop tactical plans meet regularly to review progress Management by objectives is a management technique often used to develop and carry out tactical plans. Management by objectives (MBO) is a four-step process in which managers and their employees (1) discuss possible goals; (2) collectively select goals that are challenging, attainable, and consistent with the company's overall goals; (3) jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives; and (4) meet regularly to review progress toward accomplishment of those goals.

What two primary concerns are managers aredriven by?

efficiency effectivness It is important that managers are concerned with both efficiency and effectiveness, not just one or the other. A company that is highly efficient in delivering goods to a customer, but not particularly effective at making them (that is, low quality), will not find much success. Similarly, a company that makes the best sprockets in town, but takes ten times as long as its competitors, is bound to struggle

A-type conflict

emotional reaction that can occur when disagreements become personal hostility, anger, resentment, distrust, cynicism, apathy

Synergy

occurs when two or more subsystems working together can produce more than they can working apart

What are kohlberg's stages of moral development

preconventional conventional postconventional

Human Skills

the ability to work well with others. Managers with human skills work effectively within groups, encourage others to express their thoughts and feelings, are sensitive to others' needs and viewpoints, and are good listeners and communicators. Human skills are equally important at all levels of management, from first-line supervisors to CEOs.

Environmental Complexity

the number and intensity of factors in the external environment that affect organizations. Simple environments have few environmental factors that affect organizations, whereas complex environments have many environmental factors that affect organizations. Simple few environmental factors that affect organizations Complex many environmental factors that affect organizations

Technical Skills

the specialized procedures, techniques, and knowledge required to get the job done

Opportunistic Behavior

when one party benefits at the expense of another