management

vertical structure

The set of formal tasks assigned to individuals and departments Formal reporting relationships The design of the systems to ensure effective coordination

classical perspective

The study of modern management began in the late nineteenth century with the classical perspective, which took a rational, scientific approach to management and sought to turn organizations into efficient operating machines.

triple bottom line

The term triple bottom line refers to measuring an organization's social performance, its environmental performance, and its financial performance The "People" part of the triple bottom line looks at how socially responsible the organization is in terms of fair labor practices, diversity, supplier relationships, treatment of employees, contributions to the community, and so forth. The "Planet" aspect measures the organization's commitment to environmental sustainability. The third P, of course, looks at the organization's profit, the financial bottom line.

Main reasons why mangers fail

The two major reasons that managers fail are poor communication and poor interpersonal skills.

licensing

With licensing, a corporation (the licensor) in one country makes certain resources available to companies in another country (the licensee). These resources include technology, managerial skills, and patent or trademark rights.

joint venture, an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution network.

an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution

moral-rights approach

asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it.

individualism approach

contends that acts are moral when they promote the individual's best long-term interests.

Contingency plans

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. To develop contingency plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents.

Legal responsibility

defines what society deems as important with respect to appropriate corporate behavior.

The divisional structure

employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks. An alternative approach to divisional structure is to group employees and departments based on geographic region or customer group. Advantages: fast response; flexibility in an unstable environment fosters concern for customer needs excellent coordination across functional departments Disadvantages: Duplication of resources across divisions less technical depth and spcialization poor coordination across divisions

utilitarian approach

espoused by the nineteenth century philosophers Jeremy Bentham and John Stuart Mill, holds that moral behavior produces the greatest good for the greatest number.

evaluation and feed back (step 6)

evaluation stage of the decision process, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals Feedback provides decision makers with information that can precipitate a new decision cycle

Leap from worker to manager

from individual: Specialist;performs specific tasks, gets things done through own efforts, an individual actor, works relatively independently To manager: Generalist; coordinated diverse tasks, gets things done through others, a network builder, works in highly interdependent manner

A functional structure

groups employees into departments based on similar skills, tasks, and use of resources. Advantages: efficient use of resources; economies of scale in-depth skill specialization and development top manager direction and control Disadvantages: poor communication arcoss functional departments slow response to external changes; lagging innovation decisions concentrated at the top of hierarchy, creating delay

justice approach

holds that moral decisions must be based on standards of equity, fairness, and impartiality

SWOT analysis

includes a careful assessment of strengths, weaknesses, opportunities, and threats that affect organizational performance for both internal and external

external organizational environment

includes all elements existing outside the boundary of the organization that have the potential to affect the organization. The environment includes competitors, resources, technology, and economic conditions that influence the organization.

•The natural dimension

includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

Ethical responsibility

includes behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests

The sociocultural dimension includes demographic characteristics, norms, customs, and values of a population within which the organization operates.

includes demographic characteristics, norms, customs, and values of a population within which the organization operates.

The international dimension

includes events originating in foreign countries, as well as new opportunities for U.S. companies in other countries.

•The legal-political dimension

includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior

The technological dimension

includes scientific and technological advances in society.

Scenario building

involves looking at current trends and discontinuities and visualizing future possibilities

Hero

is a figure who exemplifies the deeds, character, and attributes of a strong culture.

Story

is a narrative based on true events and is repeated frequently and shared among organizational employees.

Scientific management

is a subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity.

administrative principles approach

is a subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling.

Symbol

is an object, act, or event that conveys meaning to others.

The task environment

is closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. It is generally considered to include competitors, suppliers, customers, and the labor market. customers-Those people and organizations in the environment that acquire goods or services from the organization are customers. Competitors-Organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as competitors. Suppliers- provide the raw materials that the organization uses to produce its output.

team-based structure

is one in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals. advantages:reduces barriers among departments;increased compromise shorter response time; quicker decisions better moral; enthusiasm from employee involvement Disadvantages: dual loyalties and conflict time and resources spent on meetings unplanned decentralization

Discretionary responsibility

is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. Discretionary activities include generous philanthropic contributions that offer no payback to the company and are not expected.

Systems thinking

is the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements. A system is a set of interrelated parts that function as a whole to achieve a common purpose. Subsystems are parts of a system, such as an organization, that depend on one another. Changes in one part of the system (the organization) affect other parts. Managers need to understand the synergy of the whole organization, rather than just the separate elements, and to learn to reinforce or change whole system patterns. Synergy means that the whole is greater than the sum of its parts.

•Departmentalization

is the basis for grouping individual positions into departments and departments into the total organization. Three traditional approaches to departmentalization are functional, divisional, and matrix

Effectiveness

is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Organizational effectiveness means providing a product or service that customers value. Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw material, money, and people are necessary for producing a given volume of output.

diagnosis and analysis of causes (step 2)

is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation. a technique sometimes called "the 5 Whys." The 5 Whys is a question-asking method used to explore the root cause underlying a particular problem

What is management?

management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources •Traditional management competencies could include a command-and-control leadership style, a focus on individual tasks, and standardizing procedures to maintain stability. •New management competencies include the ability to be an enabler rather than a controller, using an empowering leadership style, encouraging collaboration, leading teams, and mobilizing for change and innovation.

Selection of the Desired Alternative(step 4)

one must be selected. In this stage, managers try to select the most promising of several alternative courses of action. The best alternative solution is the one that best fits the overall goals and values of the organization and achieves the desired results using the fewest resources

high-context culture

people are sensitive to circumstances surrounding social exchanges. People use communication primarily to build personal social relationships; meaning is derived from context—setting, status, and nonverbal behavior—more than from explicit words; relationships and trust are more important than business; and the welfare and harmony of the group are valued

a low-context culture

people use communication primarily to exchange facts and information; meaning is derived primarily from words; business transactions are more important than building relationships and trust; and individual welfare and achievement are more important than the group.

Ceremonies

planned activities at special events, to reinforce company values.

stakeholder mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders. The green movement is a special interest group of particular importance today.

stakeholder

refers to any group or person within or outside the organization that has some type of investment or interest in the organization's performance. Shareholders, employees, customers, and suppliers are considered primary stakeholders, without whom the organization could not survive. Government, the community, and special interest group are also important stakeholders.

Globalization

refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries.

•The economic dimension

represents the general economic health of the country or region in which the organization operates.

practical approach

sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Strategic goals

sometimes called official goals, are broad statements describing where the organization wants to be in the future.

Slogan

such as Disney's "The happiest place on Earth," succinctly expresses a key corporate value.

group decision making disadvantages

take considerable time one or two people can dominate group discussion memebers don't feel personally accountable for decisions and actions susceptible to groupthink and to considering a limited number of solution

contingency view

tells managers that what works in one organizational situation might not work in others. Managers can identify important contingencies that help guide their decisions regarding the organization.

virtual network structure

the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization. Advantages: can draw on expertise worldwide highly flexible and responsive reduced overhead costs disadvantage:lack of control;weak boundaries greater demands on mangers weaker employee loyalty

crisis planning

to enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response

Brainstorming

uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

horizontal coordination

Companies need more flexibility than vertical structure can offer Meet fast-shifting environment Break down barriers between departments Need integration and coordination Lack of coordination and cooperation can cause information problems Growing global challenge

consistency culture

Consistency culture uses an internal focus and a consistency orientation for a stable environment. Following the rules and being thrifty are valued, and the culture supports and rewards a methodical, rational, orderly way of doing things.

Decision making

Decision making is the process of identifying problems and opportunities and then resolving them.

Direct investing

Direct investing is a market entry strategy in which the organization is directly involved in managing its production facilities in a foreign country

humanistic perspective

Emphasizes the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes. There are three primary subfields based on the humanistic perspective: the human relations movement, the human resources perspective, and the behavioral sciences approach.

Evidence-based decision making

Evidence-based decision making is founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence.

exporting

Exporting is a market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.

franchising .

Franchising is a form of licensing in which a company provides its foreign franchisees with a complete package of materials and services

Global outsourcing

Global outsourcing, also called offshoring, means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

economic responsibilty

Its responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders.

Recognition of decision requirement (first step of decision making)

Managers confront a decision requirement in the form of either a problem or an opportunity. A problem occurs when organizational accomplishment is less than established goals. Some aspect of performance is unsatisfactory. An opportunity exists when managers see potential accomplishment that exceeds specified current goals. Managers see the possibility of enhancing performance beyond current levels.

innovative decision making

Mechanisms to help reduce bias-related decision errors: 1.Start with brainstorming 2.Use hard evidence 3.Engage in rigorous debate 4.Avoid groupthink 5.Know when to bail 6.Do a postmortem

why do managers make bad decisions

Not having plan for decision-making Being influenced by initial impressions Justifying past decisions Seeing what you want to see Perpetuating the status quo Being influenced by emotion Overconfidence

efficiency

Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw material, money, and people are necessary for producing a given volume of output.

global mind-set

The ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics

achievement culture

The achievement culture is suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. This results-oriented culture values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results.

adaptability culture

The adaptability culture emerges in an environment that requires fast response and high-risk decision making. Managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors.

corporate social responsibility (CSR)

The formal definition of corporate social responsibility (CSR) is management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization.

The general environment

The general environment affects organizations indirectly. It includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally.

groupthink

The group is highly cohesive. There is no established procedure for defining problems and exploring alternatives. Self-censorship of ideas that deviate from the apparent group consensus. Illusions of unanimity among group members, silence is viewed as agreement. The group leader expresses a strong preference for a particular decision. Direct pressure to conform placed on any member who questions the group, couched in terms of "disloyalty"

involvement culture

The involvement culture emphasizes an internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment. This culture places high value on meeting the needs of employees, and the organization may be characterized by a caring, family-like atmosphere

greenfield venture The most risky type of direct investment is the greenfield venture, in which a company builds a subsidiary from scratch in a foreign country.

The most risky type of direct investment is the greenfield venture, in which a company builds a subsidiary from scratch in a foreign country.

developing alternatives (step 3)

The next stage is to generate possible alternative solutions that will respond to the needs of the situation and correct the underlying causes.

goals

A goal is a desired future circumstance or condition that the organization attempts to realize.

cost leadership

A strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.

differentiation strategy

A strategy with which managers seek to distinguish the organization's products and services from those of others in the industry.

tactical goals

After strategic goals are formulated, the next step is to define tactical goals, which are the results that major divisions and departments within the organization intend to achieve

what do managers do?

1. set objectives-establish goals for the group and decide what must be done to achieve them 2. organize-divide work into manageable activities and select people to accomplish tasks 3.motivate and communicate- create teamwork via decisions on pay, promotions, etc. and through communication 4.measure-set targets and standards; appraise performance 5. develop people- recognize the value of employees and develop this critical organizational asset

8 good behaviors for managers

1.Be a good coach. 2.Empower your team and don't micromanage. 3.Express interest in team members' successes and personal well-being. 4.Don't be a sissy: Be productive and results-oriented. 5.Be a good communicator and listen to your team. 6.Help your employees with career development. 7.Have a clear vision and strategy for the team. 8.Have key technical skills so you can help advise the team

Management skills

1.conceptual skills- The cognitive ability to see the organization as a whole and the relationships among its parts. 2.technical skills-The understanding and proficiency in the performance of specific tasks. 3.Human skills Nonmanagers: 2,3,1 middle managers: 3,1,2

planning disadvantages

Goals and plans can create a false sense of certainty. Having a plan can give managers a false sense that they know what the future will be like. However, all planning is based on assumptions, and managers can't know what the future holds for their industry or for their competitors, suppliers, and customers. Goals and plans may cause rigidity in a turbulent environment. A related problem is that planning can lock the organization into specific goals, plans, and time frames, which may no longer be appropriate. Managing under conditions of change and uncertainty requires a degree of flexibility. Managers who believe in "staying the course" will often stick with a faulty plan even when conditions change dramatically. Goals and plans can get in the way of intuition and creativity. Success often comes from creativity and intuition, which can be hampered by too much routine planning. For example, during the process of setting goals in the MBO process described previously, employees might play it safe to achieve objectives rather than offer creative ideas. Similarly, managers sometimes squelch creative ideas from employees that do not fit with predetermined action plans.

planning advantages

Goals and plans provide a source of motivation and commitment. Planning can reduce uncertainty for employees and clarify what they should accomplish. The lack of a clear goal hampers motivation because people don't understand what they're working toward. Goals and plans guide resource allocation. Planning helps managers decide where they need to allocate resources, such as employees, money, and equipment. At Netflix, for example, a goal of having more video offerings online rather than in DVD format means allocating more funds for Internet movie rights and spending more of managers' time developing alliances with other companies. Goals and plans are a guide to action. Planning focuses attention on specific targets and directs employee efforts toward important outcomes. It helps managers and other employees know what actions they need to take to achieve goals. Goals and plans set a standard of performance. Because planning and goal setting define desired outcomes, they also establish performance criteria so that managers can measure whether things are on- or off-track. Goals and plans provide a standard of assessment.

implementation of the chosen alternatives( step 5)

Implementation involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.

The matrix approach

uses both functional and divisional chains of command simultaneously, in the same part of the organization. In a matrix structure, some employees, called two-boss employees, report to two supervisors simultaneously. A matrix boss is a functional or product supervisor responsible for one side of the matrix. In a matrix structure, the top leader oversees both the product and the functional chains of command and is responsible for the entire matrix. Advantages: more efficient use of resources than a single hierarchy flexibility, adaptability to a changing envirment interdisciplinary cooperation;expertise available to all divisons Disavantages: Frustration and confusion from a dual chain of command high conflict between two sides of the matrix many meetings; more discussion than action

group decision making advantages

view problems from multiple perspectives find and acces more information generate more alternative solution more committed to making chosen solution work

bureaucratic organizations approach

which emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal recordkeeping, and separation of management and ownership.

The internal environment

within which managers work includes corporate culture, production technology, organization structure, and physical facilities •Organizational culture is the set of key values, beliefs, understandings, and norms shared by members of an organization.

Theory X

•The average human being has an inherent dislike of work and will avoid it if possible. •Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. •The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.

Theory Y

•The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. •External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed. •The average human being learns, under proper conditions, not only to accept but to seek responsibility. •The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. •Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.