MGT 201 Test 1

Roles associated with methods managers use in planning strategy and utilizing resources

-Entrepreneur: deciding which new projects or programs to initiate and to invest resources in -Disturbance handler: managing an unexpected event or crisis. Taking corrective action -Resource allocator: Assigning resources be tween functions and divisions, setting the budgets of lower managers -Negotiators: -Figurehead: -Leader: -Liaison:

Organizational Performance

A measure of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals.

Distributive justice

A moral principle calling for the distribution of pay raises, promotions, job titles, interesting job assignments, office space, and other organizational resources to be based on meaningful contribution that individuals have made and not personal characteristics over which they have no control

competitive advantage

Ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors

sexual harassment

Asking or forcing an employee to perform sexual favors in exchange for some reward to avoid negative consequences Quid pro quo Forms of sexual harassment Hostile work environment Occurs when organizational members are faced with an intimidating, hostile, or offensive work environment because of their sex Interferes with the ability to perform their jobs effectively

Levels of Management

Bottom to top: first line managers, middle managers, top managers, CEO First line managers: Responsible for daily supervision of the non-managerial employees (in a department) who perform many of the specific activities necessary to produce goods and services Middle managers: Supervise first-line managers Top managers: Responsible for the performance of all departments and have crossed....

Organizations

Collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes

Technological Forces

Combination of tools, machines, computers, skills, information, and knowledge, that managers use in the design, production, and distribution of goods and services Results in new opportunities or threats to managers Often makes products obsolete very quickly Changes in tech have altered the very nature of work itself, including the managers job

community, society and nation

Community: physical locations like towns or cities in which companies are located A community provides a company with the physical and social infrastructure that allows it to operate A company contributes to the economy of the town or region through salaries, wages, and taxes

Managerial skills

Conceptual skills: the ability to analyze and diagnose a situation and distinguish between cause and effect Human skills: the ability to understand, alter, lead, and control the behavior of other individuals and groups Technical skills: Job specific skills required to perform a particular type of work or occupation at a high level

Diversity and concerns

Dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities Effectively managing diversity can improve organizational effectiveness, however, There is some evidence that diverse individuals continue to experience unfair treatment Major EEO Laws

Employees

Employees expect to receive rewards consistent with their performance Organizational structures with fair and equitable rewards for their employees show an ethical stance Must have more than their self interests in mind

Ethics and Social Responsibility

Ethics: The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave Ethical dilemma- quandary people find themselves in what they have to decide if they should act in a way that might help another person (or themselves) even though doing so might go against their own (or others) self interest

barriers to entry

Factors that make it difficult and costly for the organization to enter a particular task environment or industry The greater the barriers to entry the smaller the number of competitors

global outsourcing

Gaining access to low cost products made abroad represents an opportunity for US companies to lower their input costs Managers who fail to purchase inputs from other companies or produce inputs themselves throughout the world create a threat and put their organizations at a competitive disadvantage

Empowerment

Gives employees more authority and responsibility over the way they perform their work activities

organizational ethics

Guiding practices and beliefs through a particular company and its managers view their responsibilities towards their stakeholders Top managers play a crucial role in determining a company's ethics

Managers rights

Have the right to expect a good return or reward by investing their human capital to improve a company's performance Frequently juggle multiple interests Layoffs of employees to reduce costs and benefit shareholders/stakeholders

bias

Implicit bias: attitudes or stereotypes that affect our understanding, actions, ad directions in an unconscious manner Similar-to-me-effect: perceive others who are similar to ourselves more positively than we perceive people who are different from us Social status effect: perceive individuals with high social status more positively than those with lower social status Salience effect: focus attention on individuals who are conspicuously different

Building Competitive Advantage

Increasing efficiency: reduce the quantity of resources used to produce good and services Innovation (increasing speed, flexibility) How fast a firm can bring new or improved products to the market How easily a firm can change or alter the way they perform their activities Developing better ways to produce or provide goods and services Responsiveness to customers

suppliers

Individuals and organizations that provide an organization with the input resources that it needs to produce goods and services Raw materials, component parts, labor (employees) Relationships with suppliers an be difficult due to materials shortages, unions, and lack of substitutes Suppliers that are the sole source of a critical item are in a strong bargaining position Managers can reduce these supplier effects by increasing the number of suppliers of an input.

economic forces (E)

Interest rates, inflation, unemployment, economic growth, and other factors affect the general health and well-being of a country or world region Successful managers: Realize the important effects that economic forces have on their

Restructuring

Involves simplifying, shrinking, or downsizing an organization's operations to lower operating costs Lower operating costs = higher efficiency

overt discrimination

Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization

Recent changes in management practices

Major factors: -globalization (competition) -info technology advances

Maintaining ethical and socially responsible standards

Managers are under considerable pressure to make the best use of resources Too much pressure may induce managers to behave unethically, and even illegally

managerial tasks (POLC)

Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling

the changing global environment

Managers now recognize that companies exist and compete in a truly global market Managers constantly confront the challenges of global competition Establishing operations in a country abroad Obtaining inputs from suppliers abroad

Four different approaches

Obstructionists approach: companies and their managers choose not to behave in a socially responsible way and instead, behave unethically and illegally Defensive approach: companies and their managers behave ethically to the degree that they stay within the law and strictly abide by legal requirements Accommodative approach: companies and their managers behave legally and proactive approach: companie actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders

distributors

Organizations that help other organizations sell their goods or services to customers Powerful distributors can limit access to markets through its control of customers in those markets Examples: amazon, delivery services Managers can counter the effects of distributors by seeking alternative (and multiple) distribution channels

competitors

Organizations that produce goods and services that are similar to a particular organizations goods and services Why is rivalry between competitors potentially the most threatening force that managers deal with? Rivalry between competitors is potentially the most threatening force that managers deal with because Strong competitive rivalry results in price competitions Falling prices: reduce access to resources and lower profits

demographic forces

Outcomes of change in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class Most industrialized nations are experiencing the aging of their population as a consequence of falling birth and death rates and the aging of the baby boomer generation

politcal-legal forces

Outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations and increased emphasis on environmental protection

Resources include such assets as

People and their skills, know-how, and experience Machinery Raw materials computers and information technology Patents, financial capital, and loyal customers and employees

Individual Ethics

Personal standards and values that determine how people view their responsibilities to other people and groups How they should act in situations when their own self-interests are at stake

Sociocultural Forces

Pressures emanating from the social structure of a country or society or from the national culture Ex: concern for diversity Social structure: the arrangement of relationships between individuals and groups in society National culture: the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society Individualism vs collectivism

Challenges for Management in a Global Environment

Rise of global organizations Building a competitive advantage Maintaining ethical standards Managing jawns

Factors that influence managerial perception

Schema: an abstract knowledge structure stored in memory that allow people to organize and interpret information about a person, event or situation Gender schema: Preconceived beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences

Global Environment

Set of focus and conditions in the world outside the organization's boundaries that affect the way it operates and shape its behavior Changes over time Presents managers with opportunities and threats

Forces in the Task Environment

Set of forces and conditions that originate with suppliers, distributors, customers, and competitions Affect an organization's ability to obtain inputs and dispose of its outputs Most immediate and direct effect on managers Ex: competitors spontaneous sale or new product introduction

Stakeholders and ethics

Stakeholders: people and groups affected by the way a company and its managers behave Supply a company with its productive resources and have a claim on its resources Mutually beneficial and dependent relationship

occupational ethics

Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities Medical and legal ethics Code of ethics

social ethics

Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty and the rights of the individual

perception as a determinant of unfair treatment

Stereotype: simplistic and often inaccurate beliefs about the typical characteristics of particular people and groups Bias: the systematic tendency to use information about others in ways that result in inaccurate perceptions

Suppliers and Distributors

Supplies expect to be paid fairly and prompt for their inputs Distributors expect to receive quality products at agreed-upon prices

Managers

The people responsible for supervising the use of an organization's resources to meet its goals and objectives

What is management?

The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

perception

The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them When perceptions are inaccurate managers are likely to make bad decision and take inappropriate actions Bad decisions include: Not hiring qualified people Failing to promote top performing subordinates Promoting poorly performing managers because they have the same "diversity profile"

Why should managers behave ethically?

The relentless pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way Unethical behavior destroys the trust between a company and its customers, suppliers and distributors

General Environment

The wide-ranging global, economic, technological, sociological, demographic, political, and legal (P. E. S. T. D. L. ) forces that affect an organization and its task environment More difficult to identify and respond to than task environment elements Ex: natural disasters, high interests rates

dealing with ethical issues

There are no absolute or indisputable rules or principles that can be developed to decide if an action is ethical or unethical Neither laws nor ethics are fixed principles

Trust and Reputation

Trust: willingness of one person or group to have faith or confidence in the goodwill of another person Reputation: esteem or high repute that individuals or organizations gain when they behave ethically

practical rule

an ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable

justice rule

an ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner

moral rights rule

an ethical decision should maintain and protect the fundamental rights and privileges of people

Utiliarian rule

an ethical decision should produce the greatest good for the greatest number of people

planning

choose appropriate organizational goals and courses of action to best achieve those goals Decide which goals the organization will pursue Decide what strategies to adopt to attain those goals Decide how to allocate organizational resources Complex, difficult activity Strategy to adopt is not always immediately clear

brand loyalty

consistent preference for one brand over all others

controlling

establish accurate measuring and monitoring systems to evaluate how well the organization has achieved goals

organizing

establish task and authority relationships that allow people to work together to achieve organization goals Task/function managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve their goals Involves grouping people into departments according to the kinds of job-specific tasks they do

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

leading

motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals Articulating a clear organizational vision for its members to accomplish; energizing and enabling employees so that everyone understands the part they play in achieving organizational goals Involves using power, personality, influence, persuasion, and communication skills Outcome of leadership is highly motivated and committed workforce

procedural justice

perceived fairness of the process used to determine the distribution of rewards

Stockholders

stockholders/shareholders are owners Want to ensure that managers are behaving ethically and not risking investors capital by engaging in actions that could hurt the companies reputation Want to maximize their return on investment

Social Responsibility

the obligation of a business to contribute to society