Business Management
Diversification
A firms investment in a different product, business or geographic area
John rawl
Created a thought experiment based on the "veil of ignorance"
Human dignity
Concerns the value of each person as an end, not a means to fulfillment of others' purposes.
Complex Stable
Decentralized Bureaucratic (Standardized skills)
Complex dynamic
Decentralized Organic (Mutual adjustment)
Integrity based ethics programs
Designed to instill in people a personal responsibility for ethical behavior
Political action
Efforts to influence elected representatives to create a more favorable business environment or limit competition (issue advertising or lobbying at a state and national levels)
Legal action
Engaging the company in a private legal battle (lawsuits against illegal music copying)
Domain selection
Entering a new market or industry with existing expertise
SarbabeseOxley act
Established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain. Investor confidence - have more independent board directors - adhere strictly to accounting rules - have senior managers personally sign off on financial results
Public relations
Establishing and maintaining favorable images in the minds of those making up the environment (sponsoring sporting events)
Result of lying to Negotiate
Short term gain Economically positive Harms long term relationship Must rationalize to ones self
Civil aspiration
Thinking not just in terms of "donts" (lie, cheat, steal, kill) but also in terms of positive contributions
Legal responsibilities
To obey local,state,federal, and relevant international laws.
Economic responsibilities
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
quantitative management,
contemporary management approach that emphasizes the application of quantitative analysis to managerial decisions and problems (mathematical models of the problem)
input
goods and services organizations take in and use to create products or services
social capital
goodwill stemming from your social relationships
knowledge management
is about finding, unlocking, sharing, and capitalizing on the most precious resources of an organization: people's expertise, skills, wisdom, and relationships.
interpersonal and communication skills (people skills or soft skills)
people skills; the ability to lead, motivate, and communicate effectively with others
organizational behavior
that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes
contingencies
1.Circumstances in the organization's external environment. 2.The internal strengths and weaknesses of the organization. 3.The values, goals, skills, and attitudes of managers and workers in the organization. 4.The types of tasks, resources, and technologies the organization uses.
Forecasting
Predicts how some variable or variables will change in the future (most useful when when the future will look radically different from the past)
Rational culture
Primary objectives are productivity, planning, and efficiency
Result of lying to keep confidence
Protects whatever good reason there is for the confidence Maintains a long term relationship for whom the confidence is kept May project deceitfulness to the deceived party
Group culture
Trust tradition and long term commitment (leaders tend to act as mentors and leaders)
Mutuality
Viewing success not merely as a personal gain, but a common victory
Result of telling the truth to keep confidence
Violates a trust to the confining party Makes one appear deceitful to all parties in the long run Creates the impression of honesty beyond utility
Voluntary action
Voluntary commitment to various interest groups, causes, and social problems (donating supplies to tsunami victims)
Virtue ethics
What is moral comes from what a mature person with "good" moral character would deem right
systems theory
a theory stating that an organization is a managed system that changes inputs into outputs
sociotechnical systems theory
an approach to job design to reassign tasks to optimize operation of a new technology while preserving employees interpersonal relationships and other human aspects of the work (people work better when they have the right tools, training, and knowledge)
contingency perspective
an approach to the study of management proposing that the managerial strategies, structures, and processes that result in high performance depend on the characteristics, or important contingencies, or the situation in which they are applied
Top-level managers
are the organization's senior executives and are responsible for its overall management. Top-level managers, often referred to as strategic managers, focus on the survival, growth, and overall effectiveness of the organization. This interaction often requires managers to work extensively with outside individuals and organizations. (CEO) (COO) (CIO)
Cooper Procter
believed, from his own experience, that increasing workers' psychological commitment to the company would lead to higher productivity
Philanthropic responsibilities
Additional behaviors and activities that society finds desirable and that the values of the business support
Competitive aggression
Exploiting a distinctive competence of improving internal efficiency for competitive advantage (aggressive pricing and comparative advertising)
Ecocentric management
It's goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders
Moral judgment
Knowing what actions are morally defensible
Interpersonal roles
Leader—Staffing, training, and motivating people to achieve organizational goals. Example: The manager of a real estate company leads and manages 10 realtors. Liaison—Maintaining a network of outside contacts and alliances that provide information and favors. Example: A human resources manager attends monthly HR association meetings. Figurehead—Performing symbolic duties on behalf of the organization, like greeting important visitors and attending social events. Example: The president of a university presides over a graduation ceremony.
Generativity
Learning how to give as well as take, to others in the present as well as to future generations
Smoothing
Leveling normal fluctuations at the boundaries of the environment (when retail stores put clothes on sale at the end of the season)
Kyosei
Living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition
Preconventional
Make decisions based on immediate self interest. (Taking a flash drive from work because you don't want to buy one)
Principled stage
Make decisions based on self chosen official principles (don't even consider taking the flash drive because you KNOW it's not right)
Conventional
Make decisions that conform to expectations of groups and institutions like family peers and society (thinking about taking the flash drive but don't because you believe it's not right)
Bureaucracy (max weber)
Management approach emphasizing a structured formal network of relationships among specialized positions in the organization -division of labor -authority -qualifications -ownership -rules
Administrative management (Henri fayol)
Management approach that attempted to identify major principles and functions that managers could use to achieve superior organizational performance
Adhocracy
Oriented and flexible (growth, resource acquisition, and innovation are stressed)
Suppliers provide resources needed for production
People Raw material Information Financial capital
Hawthorne effect (Elton Mayo and Fritz Roethlisberger) (
Peoples reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior
Organizing
is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together
Planning
is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals
Management
is the process of working with people and resources to accomplish organizational goals. Good managers do those things both effectively and efficiently. To be effective is to achieve organizational goals. To be efficient is to achieve goals with minimal waste of resources—that is, to make the best possible use of money, time, materials, and people.
Douglas McGregor's Theory Y
managers assume employees want to work and can direct and control themselves
Douglas McGregor's Theory X (self-fulfilling prophecy)
managers assume workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals
conceptual and decision skills
skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members
technical skill
the ability to perform a specialized task involving a particular method or process
Rensis Likert
who stressed the value of participative management
Level 2 costs
-Administrative and audit -legal and investigative -remedial education -corrective actions -government oversight
Sustainable growth can be applied in many ways:
-As a framework for organizations to use in communicating to all stakeholders -as a planning and strategy guide -as a tool for evaluating and improving the ability to compete
Level 3 costs
-Customer defections -loss of reputation -employee cynicism -lost employee morale -employee turnover -government cynicism -government regulation (more damaging costs, get less executive attention)
Lilian gilbreth (mother of modern management) 12 children
-Focused less on the technical and more on the human side of management -job satisfaction motivated employees -how motion studies could be used to help disabled individuals perform jobs
To make ethics code effective
-Involve those who have to live with the code in writing it -focus on real-life situations the employees can relate to -keep it short and simple -write about values and shared beliefs -set the tone at the top, having executives talk about and live up to statement
SOX gyidelines
-establish written standards of ethical conduct and controls for enforcing them - assign responsibility to top managers - exclude anyone who violates the standards - provide training in ethics to all employees - give employees incentives for complying consequences for violating the standards - respond with consequences if criminal conducts occurs
Porters five forces
-threat of new entrants -bargaining power of buyers/customers -threat of substitute products or services -rivalry among existing competitors -bargaining powers of suppliers
When using forecasts
-use multiple forecasts -remember accuracy decreases further you go into the future -collect data carefully -use simple forecasts -sometimes there will be surprised that depart from predictions
Cooptation
Absorbing new elements into the organizations structure to avert threats to its stability or existence
Scientific management (2nd approach) Frederick Taylor (time and motion studies)
A classical management approach that applied scientific methods to analyze and determine the "one best way" to complete production tasks
Systematic management (first approach)
A classical management approach that attempted to build into operations the specific procedure and processes that would ensure coordination of effort to achieve established goals and plans
Final consumer
A customer who buys a product in their finished form
Intermediate consumers
A customer who purchases raw materials or wholesale products before selling them to final customers
Divestiture
A firm selling one or more businesses
Life cycle analysis
A process of analyzing all inputs and outputs, thought the entire "cradle-to-grave" life of a product, to determine total environmental impact
Internal environment
All relevant forces inside a firms boundaries, such as managers, employees, resources, and organization culture
External environment
All relevant forces outside a firms boundaries, such as competitors, customers, the government, and the economy,
Egoism
An ethical principle holding that individual self interest is the actual motive of all conscious action. "Do the act that that promotes the greatest good for oneself"
Strategic maneuvering
An organizations con wiki efforts to change the boundaries of its task environment
Human relations
Approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance
Stakeholder model
Assumes that mangers are obligated to look beyond profitability to help their organizations succeed by interacting with groups that have a stake in the organization
Relativism
Bases ethical behavior on the options and behaviors of relevant other people. Acknowledges the existence of different ethical viewpoints. Defines ethical behavior according to how others behave
Astroturfing
Businesses pay bloggers to write positive comments about them. "Grassroots" interests are fake
Simple Stable
Centralized Bureaucratic (Standardized work processes)
Simple dynamic
Centralized Organic (Direct supervision)
Prospectors (engage the most in maneuvering)
Companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises
Defenders
Companies that stay within a stable product domain as a strategic maneuver
Compliance based ethics programs
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations
Business ethics
Compromises the moral principles and standards that guide behavior in the world of business
Barriers to entry
Conditions that prevent new companies from intending an industry -government policy -capital requirements -brand identification -cost disadvantages -distribution channels
Hierarchical culture
Control and stability (assumes individuals will comply with organizational mandates when roles are states and enforced through rules and procedures)
Result of telling the truth when reporting your own performance within an organization
Creates reputation of integrity May not always be positive
Buffering
Creating supplies of excess resources in case of unpredictable needs
Decisional roles
Entrepreneur—Searching for new business opportunities and initiating new projects to create change. Example: A software engineer at a social networking website company identifies a new and more intuitive way to connect its users. Disturbance handler—Taking corrective action during crises or other conflicts. Example: An accounting manager at a firm disciplines a junior accountant for engaging in unethical behavior. Resource allocator—Providing funding and other resources to units or people; includes making major organizational decisions. Example: The chief financial officer at a company determines the size of each division's budget for the upcoming fiscal year. Negotiator—Engaging in negotiations with parties inside and outside the organization. Example: An account executive from an advertising company negotiates the purchase price and terms of an advertising campaign with a team from a large client.
Ethical issues
Is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
Freddie mac
Federal home loan mortgage corporation
Fannie Mae
Federal national mortgage association
Empathy
Feeling your decisions as potential victims might feel them, to gain wisdom
Switching costs
Fixed costs buyers face when they change suppliers
Sustainable growth
Is economic growth and development that meet the organizations present need without harming the ability of future generations to meet their needs without harming the ability of future generations to meet their needs
Sustainable growth
Is economic growth and development that meet the organizations present needs without harming the ability of future generations to meet their needs
Level 1 costs
Government fines and penalties (less damAging costs, more executive attention)
Coalition
Groups that act jointly with respect to a set of political initiatives for some period.
Transcendent education
Has five higher goals that balance self interest with responsibilities to others
Gantt chart
Helps employees and managers plan projects by task and time to complete those tasks
Shareholder model
Holds that managers act as agents for shareholders and, as such are obligated to maximize the present value of the firm (wealth of nations)
Adam smith
If every organization follows its own economic self interest, the total wealth of society will be maximized
Stakeholders
Include: shareholders, employees, customers, suppliers, competitors, society, and the government
Competitive pacification
Independent action to improve relations with competitors ( helping competitors find raw materials)
A compliment
Is a potential opportunity because customers buy more of a given product if they also demand more of the complementary product
A substitute
Is a potential threat, customers use it as an alternative, buying less of one product and more of another
Environmental uncertainty
Managers do not have enough information about the environment to understand or predict the future
Abraham Maslow
Maslow suggested that humans have five levels of needs. The most basic needs are the physical needs for food, water, and shelter; the most advanced need is for self-actualization, or personal fulfillment
Ethical responsibilities
Meeting other societal expectations, not written as law
Flexible processes
Methods for adapting the technical core to changes in the environment (firms increasingly trying to customize their goods and services to meet customers varied and changing demand)
Result of lying when reporting your own performance within an organization
Might advance oneself or ones cause Develops dishonest reputation over time Must continue the sequence of lies to appear consistent
Informational roles
Monitor—Seeking information to develop a thorough understanding of the organization and its environment. Example: A marketing researcher for a fast-food company tracks changing consumer tastes. Disseminator—Sharing information between different people like employees and managers; sometimes interpreting and integrating diverse perspectives. Example: A team leader in an accounting firm shares her team's concerns with the managing partner. Spokesperson—Communicating on behalf of the organization about plans, policies, actions, and results. Example: A public relations officer of a global company issues a news release detailing plans to expand operations in China and India.
Contracts
Negotiating an agreement between the organization and another group to exchange goods, services, information, patents
Acquisition
One firm buying another
Merger
One or more companies combining with each other
Ethical leader
One who is both a moral person and a moral manager influencing others to behave ethically
Open systems
Organizations that are affected by, and that affect, their environment
Moral awareness
Realizing the issue has ethical implications
Moral philosophy
Refers to the principles, rules, and values people use in deciding what is right or wrong
Ethical climate
Refers to the processes by which decisions are evaluated and made on the basis of right and wrong
Environmental scanning
Searching for information that is unavailable to most people and sorting through that information to interpret what is important.
Frank gilbreth
Showed how workers should work smarter not harder (bricks)
Intolerance of ineffective humanity
Speaking out against unethical actions
Utilitarianism
States that the greatest good for the greatest number of people should be the overriding concern of decision makers
Independent strategies
Strategies that an organization acting on its own uses to change some aspect of its current environment
Cooperative strategies
Strategies used by two or more organizations working together to manage the external environment
Henry l. Gantt
Suggested that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks
Result of telling the truth by negotiating
Supports high quality long term relationship Develops reputation of integrity Models behavior to others
Whistleblowing
Telling others, inside and outside the organization, about wrongdoing
Visible artifacts (1st level)
The components of an organization that can be seen and heard, such as office layout, dress orientation, stories, and written material
Dynamism
The degree of discontinuous change that occurs within the industry (smartphones)
Universalism
The ethical system stating that all people should uphold certain values that society needs to function ( rules against murder and torture) fundamental principles
Competitive environment
The immediate environment surrounding a firm; includes suppliers, customers, rivals
Competitive intelligence
The information necessary to decide how best to manage in the competitive environment they have identified
Supply chain management
The management of the entire network of facilities and people that obtain raw materials from outside the organization, transform them into new products, and distribute them to customers
Ethics
The moral principles and standards that guide the behavior of an individual or group
Complexity
The number of issues to which a manager must attend, and the degree to which they are interconnected (automotive industry)
Corporate social responsibility
The obligation toward society assumed by business (ways businesses should respond to issues)
Benchmarking
The process of comparing an organizations practices and technologies with those of other companies (compares your organizations info and other firms and then compares to determine gaps) these gaps serve as a point of entry to learn the underlying causes of performance differences
Empowerment
The process of sharing power with employees, thereby enhancing their confidence in the ability to perform their jobs and their belief that there is are influential contributions to the organization
Organization culture
The set of assumptions that members of an organization share to create internal cohesion and adapt to the external environment
Milton friedman (enemy of business ethics)
The social responsibility of business is to increase profits
Moral character
The strength and persistence to act in accordance with your ethics despite the challenges.
Unconscious assumptions (3rd level)
The strongly held and taken for granted beliefs that guide behavior in the firm
Values (2nd level)
The underlying qualities and desirable behaviors that are important to the organization
Frederick Taylor (piecerate system)
Workers were motivated by receiving money. Workers were paid additional wages when they exceeded a standard level of output for each job
Team leader
engages in a variety of behaviors to achieve team effectiveness. The use of teams has increased as organizations shift from hierarchical to flatter structures that require lower-level employees to make more decisions. While both team leaders and frontline managers tend to be younger managers with entrepreneurial skills, frontline managers have direct managerial control over their nonmanagerial employees. This means that frontline managers may be responsible for hiring, training, scheduling, compensating, appraising, and if necessary, firing employees in order to achieve their goals and create new growth objectives for the business.
Middle manager
middle-level managers above front line managers and above team leaders. Sometimes called tactical managers, they are responsible for translating the general goals and plans developed by strategic managers into more specific objectives and activities. Traditionally the role of the middle manager is to be an administrative controller who bridges the gap between higher and lower levels. Today middle-level managers break corporate objectives down into business unit targets; put together separate business unit plans from the units below them for higher-level corporate review; and serve as nerve centers of internal communication, interpreting and broadcasting top management's priorities downward and channeling and translating information from the front lines upward.
Frontline managers
or operational managers, are lower-level managers who execute the operations of the organization. These managers often have titles such as supervisor or sales manager. They are directly involved with nonmanagement employees, implementing the specific plans developed with middle managers. This role is critical because operational managers are the link between management and nonmanagement personnel. Your first management position probably will fit into this category.
output
the products and services organizations create
emotional intelligence
the skills of understanding yourself, managing yourself, and dealing effectively with others