Foundations of Management Test #1

Team cohesiveness

- the extent to which team members are attracted to a team and motivated to remain in it.

Forming

- the first stage of team development, in which team members meet each other, form initial impressions, and begin to establish team norms

Performing

- the fourth stage of TD, in which performance improves because the team has matured into an effective, fully functioning team.

Technology

- the knowledge, tools, and techniques used to transform inputs into outputs

Environmental complexity

- the number and the intensity of external factors in the environment that affect organizations

Behavioral substitution

- the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture.

Environmental Change

- the rate at which a company's general and specific environments change

Storming

- the second stage of development, characterized by conflict and disagreement, in which team members disagree over what the team should do and how it should do it

Technical skills

- the specialized procedures. Techniques, and knowledge required to get the job done.

Punctuated equilibrium theory

- the theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium

Norming

- the third stage of TD, in which team members begin to settle into their roles, group cohesion grows, and positive team norms develop

Organizational culture

- the values, beliefs, and attitudes shared by organizational members.

Team diversity

- the variances or differences in ability, experience, personality, or any other factor on a team.

Integrative conflict resolution

- to have both parties indicate their preferences and then work together to find an alternative that meets the needs of both.

Visible artifacts

- visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, such as stock options, personal parking spaces, or the private company dining room.

Gantt chart

- visually indicates what tasks must be completed at which times in order to complete a project.

Synergy

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

Compromise

- where each side gives up some of what it wants, but integration.

Domination

- where one side wins and the other side loses.

Time study

- worked by timing how long it took a "first class man" to complete each part of his job.

Gainsharing

-a compensation system in which companies share the financial value of performance gains, such as increased productivity, cost savings, or quality, with their workers.

Employment security, Self-managed teams, decentralization, high wages contingent on organizational performance, training and skill development, sharing information

Competitive advantage through people

Competitor Component

Competitors, competitive analysis.

Best use of teams

Complex tasks that require multiple perspectives, clear purpose and success criteria, rewards are available

Contingency Management

Contingency approach- holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular tie and place.

Fayol's 14 Principles of Management

Division of work- increase production by dividing work so that each worker completes smaller tasks or job elements. Authority and responsibility- a manager's authority, which is the "right to give orders" should be commensurate with the manager's responsibility. However organizations should enact controls to prevent managers from abusing their authority. Discipline- Clearly defined rules and procedures are needed at all organizational levels to ensure order and proper behavior Unity of command- to avoid confusion and conflict, each employee should report to and receive orders from just one boss Unity of direction- one person and one plan should be used in deciding the activities to be carried out to accomplish each organizational objective. Subordination of individual interests to the general interests- employees must put the organization's interests and goals before their own Remuneration- compensation should be fair and satisfactory to both the employees and the organization that is don't overpay or underpay employees. Centralization- avoid too much centralization or decentralization. Strike a balance depending on the circumstances and employees involved. Scalar chain- from the top to the bottom of an organization, each position is part of a vertical chain of authority in which each worker reports to just one boss for the sake of simplicity, communication outside normal work groups or departments should follow the vertical chain of authority. Order- To avoid confusion and conflict, order can be obtained by having a place for everyone and having everyone in his or her place, in other words, there should be no overlapping responsibilities Equity- kind, fair, and just treatment for all will develop devotion and loyalty. This does not exclude discipline, if warranted, and consideration of the broader general interests of the organization. Stability of tenure of personnel- low turnover, meaning a stable workforce with high tenure, benefits and organization by improving performance, lowering costs, and giving employees, especially managers, time to learn their jobs. Initiative- because it is a great source of strength for business managers should encourage the development of initiative, or the ability to develop and implement a plan, in others. Esprit de corps- Develop a strong sense of morale and unity among workers that encourages coordination of efforts.

Industry regulation component

Industry regulation- regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions.

Monitor Role, Disseminator, Spokesperson role

Informational roles

Cross-functional team

a team composed of employees from different functional areas of the organization

Virtual team

a team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and IT to accomplish an organizational task

Project team

a team created to complete specific, one-time projects or tasks within a limited time.

Self-designing team

a team that has the characteristics of self-managing teams but also controls team design, work tasks, and team membership

Self-managing team

a team that manages and controls all of the major tasks of producing a product or service.

Decentralization

allows employees who are closest to (and most knowledgeable about) problems, production, and customers to make timely decisions. Decentralization increases employee satisfaction and commitment.

Decisional managers

entrepreneur, disturbance handler, resource allocator, negotiator

Administrative management

henri fayol, organizational success depends on a unified vision that helps the majority, and more on a leader's management skill than his/her technical skill. Managers should offer clear direction and be fair and consistent with their teams

Risk of teams

high turnover, social loafing, disadvantages of group decision making

Groupthink

members of highly cohesive groups feel intense pressure not to disagree with each other so that the group can approve a proposed solution

Informational managers

monitor, disseminator, spokesperson

Team training

training Interpersonal skills

Organizing

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

Interpreting environmental factors

- determining what environmental events and issues mean to the organization

Uncertainty

- extent to which managers can understand or predict which environmental changes and trends will affect their business

Efficiency

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

Disseminator role

- managers share the information they have collected with their subordinates and others in the company.

Controlling

- monitoring progress toward goal achievement and taking corrective action when progress isn't being made.

Organizational heroes

- people celebrated for their qualities and achievements within an organization. Successful organizational cultures

Individualism-collectivism

- the degree to which a person believes that people should be self-sufficient and that loyalty to one's self is more important than loyalty to team or company.

Internal environment

- the events and trends inside an organization that affect management, employees, and organizational culture.

Buyer dependency

- the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products

Sociocultural component

- the demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society.

Bureaucracy

- the exercise of control on the basis of knowledge

Changing organizational cultures

- Behavioral addition- Behavioral substitution- Visible artifacts-

General environment

- the economic, technological, sociocultral, and politcal.legal trends that indirectly affect all organizations

Relationship behavior

- the establishment of mutually beneficial, long-term exchanges between buyers and suppliers

Employment security

- Employment security is the ultimate form of commitment companies can make to their workers. Employees can innovate and increase company productivity without fear the loss of their jobs. Selective hiring- if employees are the basis for a company's competitive advantage, and those employees have employment security, then the company needs to aggressively recruit and selectively screen applicants in order to hire the most talented employees available.

First-line Managers

- Office manager, shift supervisor, department manager. Responsible to manage the performance of entry-level employees who are directly responsible for producing a company's goods and services.

Team Leaders

- Team leader, Team contact, Group Facilitator. Responsible for facilitating team activities toward accomplishing a goal.

Consistent organizational culture

- a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes.

Company mission

- a company's purpose or reason for existing

Competitive analysis

- a process for monitoring the competition that involves identifying competition, anticipated their moves, and determining their strengths and weaknesses.

System

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

Work team

- a small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes.

Organization

- a system of consciously coordinated activities or forces of two or more persons.

Opportunistic behavior

- a transaction in which one party in the relationship benefits at the expense of the other.

Effectiveness

- accomplishing tasks that help fulfill organizational objectives such as customer service and satisfaction.

Information management

- acquire, store, retrieve, or communicate information.

External Environments

- all events outside a company that have the potential to influence or affect it

Media advocacy

- an advocacy group tactic that involves framing issues as public issues; exposing questionable exploitative, or unethical practices' and forcing media coverage by buying media tie or creating controversy that is likely to receive extensive news coverage

Product boycott

- an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

Public communications

- an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out.

Motivation to manage

- 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.

Dynamic environments

- an environment in which the rate of change is fast

Stable environment

- an environment in which the rate of change is slow

Simple environment

- an environment with few environmental factors

Complex environment

- an environment with many environmental factors

Competitors

- companies in the same industry that sell similar products or services to customers

Suppliers

- companies that provide material, human, financial, and informational resources to other companies

Skill-based pay

- compensation system that pays employees for learning additional skills or knowledge

Advocacy groups

- concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

Cognitive maps

- graphic depictions of how managers believe environmental factors relate to possible organizational actions.

High Wages Contingent on Organizational Performance

- high wages are needed to attract and retain talented workers and to indicate that the organization values its workers. Employees, like company founders, shareholders, and managers, need to share in the financial rewards when the company is successful, because employees who have a financial stake in their companies are more likely to take a long-run view of the business and think like business owners.

Middle Managers

- hold positions such as General, Plant, Regional, Divisional managers. Responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving those objectives.

Top Managers

- hold positions such as chief executive officer(CEO), chief operating officer(COO), chief information officer (CIO), and are responsible for the overall direction of the organization.

Proactive monitoring

- identifying and addressing customer needs, trends and issues before they occur

Sharing Information

- if employees are to make decisions that are good for the long-term health and success of the company, they need to be given information about costs, finances, productivity, development times, and strategies that was previously known only by company managers.

Business confidence indices

- indices that show manager's level of confidence about future business growth

Planning

- involves determining organizational goals and a means for achieving them.

Leading

- involves inspiring and motivating workers to work hard to achieve organizational goals.

Operations management

- involves managing the daily production of goods and services

Political/Legal Component

- legislation, regulations, and court decisions that govern and regulate business behavior.

Training and Skill Development

- like a high-tech company that spends millions of dollars to upgrade computers or research and development labs, a company whose competitive advantage is based on its people must invest in the training and skill development of its people. Reduction of Status Difference- A company should treat everyone, no matter what the job, as equal. There are no reserved parking spaces. Everyone eats in the same cafeteria and has similar benefits. The result is improved communication as employees focus on problems and solutions rather than on how they are less valued than managers.

Entrepreneur role

- managers adapt themselves, their subordinates, and their units to change.

Liaison role

- managers deal with people outside their units.

Acting on Threats and opportunities

- managers decide how to respond to environmental factors

Resource allocator role

- managers decide who will get what resources and how many resources they will get.

Leader role

- managers motivate and encourage workers to accomplish organizational objectives.

Negotiator role

- managers negotiate schedules, projects, goals, outcomes, resources, and employee raises.

Figurehead role

- managers perform ceremonial duties such as greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities.

Disturbance handler role

- managers respond to pressures and problems so severe that they demand immediate attention and action.

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.

Behavioral addition

- process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

Customers

- purchase products and services Reactive customer monitoring- identifying and addressing customer trends and problems after they occur.

De-forming

- reversal of forming stage, members position themselves to control pieces of the team, avoid each other, and isolate themselves from team leaders.

De-norming

- reversal of norming stage, performance begins to decline as the size, scope, goal, or members of the team change

De-storming

- reversal of storming stage, team's comfort level decreases, team cohesion weakens, and angry emotions and conflict may flare.

Impartial application of rules and procedures

- rules and procedures apply to all members of the organization and will be applied in an impartial manner, regardless of one's position or status.

Environmental scanning

- searching the environment for important events or issues that might affect and organization.

Spokesperson role

- share information with people outside their departments or companies.

Interpersonal skills

- skills such as listening, communicating, questioning, and providing feedback, that enable people to have effective working relationships with others.

Subsystems

- smaller systems that operate within the context of a larger system

Rate buster

- someone who worked faster than the group.

Organizational stories

- stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

Open systems

- systems that can sustain themselves only by interacting with their environments, on which they depend for their survival

Closed systems

- systems that can sustain themselves without interacting with their environments.

Employee involvement teams

- teams that provides advice or makes suggestions to management concerning specific issues

Structural accommodation

- the ability to change organizational structures, policies, and practices in order to meet stretch goals

Bureaucratic immunity

- the ability to make changes without first getting approval from managers or other parts of an organization

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.

Human skills

- the ability to work well with others

Resource scarcity

- the abundance or shortage of critical organizational resources in an organization's external environment

Team level

- the average level of ability, experience, personality, or any other factor on a team.

Specific environment

- the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business.

Supplier dependence

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

Fayol

5 managerial fxns- planning, organizing, coordinating, commanding, controlling.

Team Size

6-8

Bureaucratic Management

:Max Weber Bureaucracy Qualification based hiring- Chain of command- Impartial application of rules and procedures- Recorded in writing- Managers separate from owners-

Transition to management the first year

3 months- be the boss, formal authority, manage tasks, and job is not managing people. 6 months as a manager- initial expectations were wrong, fast pace, heavy workload, job is to be problem solver and troubleshooter for subordinates. After a year as a manager- no longer a doer, communication, listening, and positive reinforcement, learning to adapt to and control stress, and job is people development.

Planning, organizing, leading, controlling

4 Fxns of management

Cooperation and Acceptance of Authority

Chester Barnard

Recorded in writing

All administrative decisions, acts, rules, and procedures will be recorded in writing.

Special kinds of teams

Cross-functional team- Virtual team- Project team-

Advantages of teams

Cross-training- training team members to do all or most of the jobs performed by the other team members

Customer Component

Customers, Proactive monitoring

Entrepreneur, Disturbance handler, resource allocator, negotiator

Decision Roles

Chain of command

Each job occurs within a hierarchy, the chain of command, in which each position reports and is accountable to a higher position. A grievance procedure and a right to appeal protect people in lower positions. Division of labor- Tasks, responsibilities, and authority are clearly divided and defined.

Hawthorne Studies

Elton Mayo- Effect of light on workers.

When to use teams

Employee involvement teams- Semi-autonomous work- Self-managing team- Self-designing team-

Qualification based hiring

Employees are hired on the basis of their technical training or educational background. Merit-based promotion- promotion is based on experience or achievement. Managers, not organizational owners, decide who is promoted.

Interpersonal Managers

Figurehead, liaison, leader

Stages of team development

Forming, Storming, Norming, Performing, De- norming, de-storming, de-forming

Motion Study

Frank and Lillian Gilbreth- broke each task or job into separate motions and then eliminated those that were unnecessary or repetitive.

Soldiering

Frederick W. Taylor- deliberately restricting output.

Scientific management

Frederick W. Taylor- involves thorough study and testing of different work methods to identify the best, most efficient ways to complete a job. First- develop a science for each element of a man's work, which replaces the old rule-of-thumb method Second- Scientifically select and then train, teach, and develop the workman, whereas in the past, he chose his own work and trained himself as best he could. Third- Heartily cooperate with the men so as to ensure all of the work being done is in accordance with the principles of the science that has been developed Fourth- There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all the work for which they are better fitted than the workmen, while in the past, almost all of the work and the greater part of the responsibility were thrown upon the men.

Figurehead role, Leader role, Liaison Role

Interpersonal Roles

Be efficient and effective

Key challenges for Managers

External Pressures

Legal risks, business risks, regulatory requirements, market risks, credit risk/Operational risks/strategic risks (TIE)

3 Levels of organization culture

Level 1- (SEEN) symbolic artifacts, imagery, icons. Level 2- (HEARD) expressed values and beliefs, what people say. Level 3 - (Believed) Widely shared assumptions/beliefs, rarely discuess

Supplier Component

Suppliers, suppllier dependence, buyer dependency, opportunistic behavior, relationship behavior

Participative

Manage style that is low directive/high supportive, develops motivation by developing confidence, typically has group meeting to get employee input into decisions. Believes employees have ability to do the task but need some motivation

Autocratic

Management style that is high directive/low supportive, tells employees what to do and how to do it, closely oversees performance, makes decisions without employee input. Believes employees are unable to perform task without supervision or may lack motivation

Consultative

Management style that is high supportive/high directive, sells employees on doing task, oversees performance, gets input from individual employees when making decisions. Believes employees have moderate ability and are motivated to do the task with supervision

Empowering

Management style that is low directive/low supportive, assigns tasks and lets employees do it on their own, lets employee or group make decision. Believes employees have ability and motivation to perform task without direction or support.

Constructive Conflict and Coordination

Mary Parker Follett

Bureaucratic management

Max Weber, achieve business goals through relying on people's knowledge, experience and skills, rather than politics or tradition. Pros- clear division of labor, clear chain of command, impartial treatmet to customers, employees, managers cons- not mission driven, too many rules, lower workers have less autonomy and input to decision making.

Team norms

Norms- informally agreed-on standards that regulate team behavior

Teamwork

Not always the best approach to problem solving

Creation and maintenance of organizational cultures

Organizational stories, organizational heroes, consistent organizational culture.

Signs of team effectiveness

Results meet or exceed goals, team members are satisfied, team remains viable for additional projects

Team compensation and recognition

Skill based pay, gainsharing

Disadvantage of teams

Social loafing- behavior in which team members withhold their efforts and fail to perform their share of the work.

Team leadership growth

Supervisory leadership(Direct people)-> Participative leadership(Involve people)-> Team Leadership (Build trust and inspire teamwork)

Setting Team goals and priorities

Structural accommodation, Bureaucratic immunity, individualism vs. collectivism, team level, team diversity.

Systems Management

System, subsystem, synergy, closed systems, open systems

Managers separate from owners

The owners of an organization should not manage or supervise the organization.

Mistakes managers make

Top mistake made was that they were insensitive to others by virtue of their abrasive, intimidating, and bullying management style Second were often cold, aloof, or arrogant Third was betraying trust Fourth was being overly political and ambitious. The Fatal mistakes of being unable to delegate, build a team, and staff effectively indicate that many derailed managers were unable to make the most basic transition to managerial work: to quit being hands-on doers and get work done through others. 2 things go wrong for these managers When managers meddle in decisions that their subordinates should be making- when they can't stop being doers, they alienate the people who work for them Trying to do their subordinates' jobs in addition to their own, managers who fail to delegate will not have enough time to do much of anything well.

Technical skills, Human skills, conceptual skills, motivation to manage.

What companies look for in managers

Semi-autonomous work

a group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service

Human Relations management

focuses on people, particularly the psychological and social aspects of work

Management

getting work done through others.

Operations Management

involves managing the daily production of goods and services

Self-Managed teams

n- self-managed teams are responsible for their own hiring, purchasing, job assignments, and production. Self managed teams can often produce enormous increases in productivity through increased employee commitment and creativity.

Motivating Teams

provide as much autonomy as possible, give team control of resources, allow them to make changes as needed, make them accountable to top management (Only)

Effectively motivate teams

teams must have a high degree of autonomy, be empowered with control of rss, need structural accommodation, and need bureaucratic immunity.

autonomy

the degree to which workers have the discretion, freedom, and independence to decide how and when to accomplish their jobs.