MGMT 309 Exam #1
What are the variety of viewpoints on Orgs from the systems perspective ?
-Open Systems: Systems that interact with their environment -Closed Systems: Systems that don't interact with their environment *Although organizations are open systems, some make the mistake of ignoring their environment and behaving as though their environment is not important. -Subsystems: Systems within a broader system. For example, the marketing, production, and finance functions within Mattel are systems in their own right but are also subsystems within the overall organization. *Because they are interdependent, a change in one subsystem can affect other subsystems as well. *Managers must therefore remember that although organizational subsystems can be managed with some degree of autonomy, their interdependence should not be overlooked. For instance, recent research has underscored the interdependence of strategy and operations in businesses. -Synergy: Suggests that organizational units (or subsystems) may often be more successful working together than working alone. *EX: Disney is a master of synergy. The firm's movies, theme park attractions, and merchandise, for example, are all linked together so that each enhances the others. -Entropy: Is a normal process that leads to system decline. When an organization does not monitor feedback from its environment and make appropriate adjustments, it may fail. *EX: witness the problems of Rambler (an automobile manufacturer) and Circuit City (a major retailer). Each of these organizations went bankrupt because it failed to revitalize itself and keep pace with changes in its environment.
How does the Government influence organizations?
-The government tries to shape social responsibility practices through both direct and indirect channels. -Direct influence usually involves regulation, whereas indirect influence can take a number of forms, most notably taxation policies. 1.) Direct Influence: -Through regulation, or the establishment of laws and rules that dictate what organizations can and cannot do. -such regulation usually evolves from societal beliefs about what businesses should or should not be allowed to do. To implement the laws, the government generally creates special agencies to monitor and control certain aspects of business activity. -EX: the Environmental Protection Agency handles environmental issues -These agencies have the power to levy fines or bring charges against organizations that violate regulations. -Another approach that governments can use to regulate business practices is through legislation. For instance, among other things the U.S. Foreign Corrupt Practices Act provides for financial sanctions against businesses or business officials who engage in bribery. -EX: Environmental protection legislation Consumer protection legislation Employee protection legislation Securities legislation 2.) Indirect regulation: -EX: the government can indirectly influence the social responsibility of organizations through its tax codes. In effect, the government can influence how organizations spend their social responsibility dollars by providing greater or lesser tax incentives. **Of course, some critics argue that regulation is already excessive. They maintain that a free market system would eventually accomplish the same goals as regulation, with lower costs to both organizations and the government.
Types of Businesses:
1.) Domestic Business -acquires essentially all of its resources and sells all of its products or services within a single country. -Most small businesses are essentially domestic in nature; this category includes local retailers and restaurants, agricultural enterprises, and small service firms such as dry cleaners and hair salons. -However, there are very few large domestic businesses left in the world today. 2.) International Business -one that is based primarily in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries. -EX: Lowe's, the home improvement retailer, fits this description. The firm has more than 1,800 stores in the United States plus another 40 in Canada and Mexico. Lowe's earns around 90% of its revenues from its U.S. operations and has no current plans to expand outside of North America. At the same time, however, many of the products it sells, such as tools and appliances, are made abroad. 3.) Multinational Business -has a worldwide marketplace from which it buys raw materials, borrows money, where it manufactures its products, and to which it subsequently sells its products. -EX: Coca-Cola, long considered the quintessential American business, derives more than half of its revenues and profits from outside of the United States. Coke promotes global advertising campaigns but also dozens of local campaigns. 4.) Global Business -is one that transcends national boundaries and is not committed to a single home country. - Although no business has truly achieved this level of internationalization, a few are edging closer and closer. (like Coke) -EX: Unocal Corporation is legally headquartered in California, but in its company literature, Unocal says it "no longer considers itself as a U.S. company" but is, instead, a "global energy company." -Firms that take this approach often have senior leadership that is well grounded in global thinking.
What are the 4 basic resources ALL org's use from the environment?
1.) Human Resources: Include managerial talent & labor 2.) Financial Resources: Capital used by Org to finance both ongoing & long-term operations 3.) Physical Resources: Include raw materials, office & production facilities, & equipment 4.) Information Resources: Usable data needed to make effective decisions.
What are the different managerial roles?
1.) Interpersonal Roles: -Figurehead = Taking visitors to dinner, attending ribbon-cutting ceremonies, etc. *Typically more ceremonial/symbolic than substantive -Leader = Hiring, training, & motivating employees *Manager who formally or informally shows subordinates how to do things & how to perform under pressure is leading. -Liaison = Often serves as a coordinator or link among ppl/orgs 2.) Information Roles: -Monitor = One who actively seeks info that may be of value *Manager questions subordinates, receptive to unsolicited info & attempt to be well informed -Disseminator = Transmitting relevant info back to others in the workplace *When the roles of monitor & disseminator are viewed together, manager emerges as a vital link in org's chain of communication -Spokesperson = relays information to people outside the unit or outside the organization. 3.) Decision Roles: -Entrepreneur = Voluntary initiator of change -Disturbance Handler = Handling such problems of strikes, copyright infringements, or problems in public relations or corporate image -Resource Allocator= Decides how resources are distributed& with whom they will work most closely -Negotiator = Enters into negotiations with other groups or orgs as a representative of the the company *may mediate internal relations too
What are the formal organizational dimensions that can help manage social responsibility?
1.) Legal compliance -the extent to which the organization conforms to local, state, federal, and international laws. -The task of managing legal compliance is generally assigned to the appropriate functional managers. -For example, the organization's top human resource executive is responsible for ensuring compliance with regulations concerning hiring, pay, and workplace safety and health. 2.) Ethical compliance -the extent to which the members of the organization follow basic ethical (and legal) standards of behavior. We noted earlier that organizations have increased their efforts in this area—providing training in ethics and developing guidelines and codes of conduct, for example. These activities serve as vehicles for enhancing ethical compliance. Many organizations also establish formal ethics committees, which may be asked to review proposals for new projects, help evaluate new hiring strategies, or assess a new environmental protection plan. 3.) Philanthropic giving -the awarding of funds or gifts to charities or other worthy causes. -EX: Target Corporation routinely gives 5 percent of its taxable income to charity and social programs. -Giving across national boundaries is also becoming more common. EX: Alcoa gave $112,000 to a small town in Brazil to build a sewage treatment plant. *However, in the current climate of cutbacks, many corporations have also had to limit their charitable gifts over the past several years as they continue to trim their own budgets. -And many firms that continue to make contributions are increasingly targeting them to programs or areas where the firm will get something in return. -EX: firms today are more likely to give money to job training programs than to the arts.
What are the informal organizational dimensions that can help manage social responsibility?
1.) Organization Leadership and Culture -Leadership practices and organization culture can go a long way toward defining the social responsibility stance an organization and its members will adopt. - As described earlier, ethical leadership often sets the tone for the entire organization. -EX: Johnson & Johnson executives for years provided a consistent message to employees that customers, employees, communities where the company did business, and shareholders were all important—and primarily in that order. 2.) Whistle-Blowing -is the disclosure by an employee of illegal or unethical conduct on the part of others within the organization. -How an organization responds to this practice often indicates its stance on social responsibility. -Whistle-blowers may have to proceed through a number of channels to be heard, and they may even get fired for their efforts. -Many organizations, however, welcome their contributions.
How do Organizations influence the government?
1.) Personal Contacts -Because many corporate executives and political leaders travel in the same social circles, personal contacts and networks offer one method of influence. -EX: A business executive may be able to contact a politician directly and present his or her case regarding a piece of legislation being considered. 2.) Lobbying -the use of persons or groups to formally represent an organization or group of organizations before political bodies, is also an effective way to influence the government. -EX: The National Rifle Association (NRA), for example, has a staff of lobbyists in Washington, with a substantial annual budget. These lobbyists work to represent the NRA's position on gun control and to potentially influence members of Congress when they vote on legislation that affects the firearms industry and the rights of gun owners. 3.) Political Action Committees -Companies themselves cannot legally make direct donations to political campaigns, so they influence the government through political action committees. -Political action committees (PACs) are special organizations created to solicit money and then distribute it to political candidates. 4.) Favors -organizations sometimes rely on favors and other influence tactics to gain support. -Although these favors may be legal, they are still subject to criticism.
What is the management process?
1.) Planning: Setting an org's goals & then deciding how to best achieve them. & Decision Making: Part of planning process, involves selecting a course of action from a set of alternatives 2.) Organizing: Involves determining how activities & resources are to be grouped. The function is to organize ppl/resources necessary to carry out the plan 3.) Leading: The set of processes used to get members of the org to work together to further the interest of the org. *Some ppl consider leading to be both the most important & most challenging of all managerial activities 4.) Controlling: Or monitoring the org's progress toward its goals. As the org moves toward its goals , managers must monitor progress to ensure that it's performing in such a way to arrive at its "destination" on time. *helps to ensure effectiveness & efficiency needed for successful management
Hofstede's 5 Individual differences across cultures:
1.) Social Orientation Relative importance of the interests of the individual versus the interests of the group -Individualism = The interests of the individual take precedence -Collectivism = The interests of the group take precedence 2.) Power Orientation The appropriateness of power/authority within organizations -Power Respect = Authority is inherent in one's position within a hierarchy -Power Tolerance = Individuals assess authority in view of its perceived rightness or their own personal interests 3.) Uncertainty Orientation An emotional response to uncertainty and change -Uncertainty Acceptance = Positive response to change and new opportunities -Uncertainty Avoidance = Prefer structure and a consistent routine 4.) Goal Orientation What motivates people to achieve different goals -Aggressive Goal Behavior = Value material possessions, money, and assertiveness -Passive Goal Behavior = Value social relationships, quality of life, and the welfare of others 5.) Time Orientation The extent to which members of a culture adopt a long-term or a short-term outlook on work and life -Long Term Outlook = Willing to work hard for many years -Short Term Outlook = Prefer more immediate rewards
What are the basic managerial skills?
1.) Technical Skills The skills necessary to accomplish or understand the specific kind of work being done in an organization • -Examples: The manager of a software development company who understands how to write and test relevant code and application; the manager of a restaurant chain knowing the basics of food preparation 2.) Interpersonal Skills The ability to communicate with, understand, and motivate both individuals and groups -Examples: A manager who establishes a good relationship with an abrasive colleague; a manager who can reprimand someone for poor performance while maintaining a positive working relationship with that person 3.) Conceptual Skills The manager's ability to think in the abstract -Examples: The manager who first sees a new market for an existing product; a manager who accurately forecasts a next-generation technology 4.) Diagnostic Skills The manager's ability to visualize the most appropriate response to a situation - Examples: A manager who can understand why customer complaints are increasing; the manager who can quickly assess the impact of a new foreign trade agreement 5.) Communication Skills The abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others -Examples: The manager who can write an email that is both informative and inspirational; a manager who can carefully listen to what others are saying and then craft an effective reply 6.) Decision-Making Skills The manager's ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities -Examples: A manager who can quickly recognize the need for a decision and then frame the nature of the decision that is required; the manager who recognizes that an earlier decision did not result in a good outcome and so starts the decision-making process over again 7.) Time-Management Skills The manager's ability to prioritize work, to work efficiently, and to delegate appropriately - Examples: The manager who routinely tackles the most pressing and significant tasks and delegates less significant
levels of management (top to bottom)
1.) Top Managers -make up the relatively small group of executives who manage the overall organization. -Titles found in this group include president, vice president, and chief executive officer (CEO). -Top managers create the organization's goals, overall strategy, and operating policies. -They also officially represent the organization to the external environment by meeting with government officials, executives of other organizations, and so forth. 2.) Middle Managers -probably the largest group of managers in most organizations. -Common middle-management titles include plant manager, operations manager, and division head. -responsible primarily for implementing the policies and plans developed by top managers and for supervising and coordinating the activities of lower-level managers. 3.) First-line managers -supervise and coordinate the activities of operating employees. -Common titles for first-line managers are supervisor, coordinator, and office manager. -Positions like these are often the first held by employees who enter management from the ranks of operating personnel.
How you define an organization? & what are some examples?
A group of people working together in a structured & coordinated fashion to achieve a set of goals. These goals may include: -Profit (Starbucks) -Discovery of Knowledge (Texas A&M) -National Defense (US Army) -Coordination of local charities (United Way of America) -Or social satisfaction (A Society)
What is a bureaucracy?
An administrative or social system that relies on a set of rules & procedures, separation of functions and a hierarchical structure in implementing controls over an org, gov, or social system -The concept of bureaucracy is based on a rational set of guidelines for structuring organizations in the most efficient & effective manner.
What is the systems perspective?
By viewing organizations as systems, managers can better understand the importance of their environment and the level of interdependence among subsystems within the organization. Managers must also understand how their decisions affect and are affected by other subsystems within the organization. *A primary objective of management, from a systems perspective, is to continually re-energize the organization to avoid entropy. By viewing an Org as a system we can identify four basic elements: 1.) Inputs = material, human, financial, and information resources the organization gets from its environment. 2.) Transformation Process = technology, operating systems, administrative systems & control systems 3.) Outputs = products, services, or both (tangible and intangible); profits, losses, or both (even not-for-profit organizations must operate within their budgets); employee behaviors; and information. 4.) Feedback
What is scientific management?
Concerned with improving the performance of individual workers Frederick Taylor: -"Soldiering" = When employees deliberately work slower than their capabilities. -Designed most efficient way of doing each part of the overall task -implemented a piecework pay system: Rather than paying all employees the same wage, he began to increase the pay of each worker who met & exceeded the target level of output set for their job: result was higher quality & quantity of output & improved morale -His work had major impact on the U.S. industry. By applying his principles, many orgs achieved major gaining efficiency -developed this system of scientific mgmt *Steps in scientific mgmt: 1.) Develop a science for each element of the job and replace old rule-of-thumb methods 2.) Scientifically select employees & then tain them to do their job 3.) Supervise employees to make sure they follow the prescribed methods for performing their jobs 4.) Continue to plan the work, but use workers to get the work done
What is the internal environment?
Consists of conditions & forces w/in the Org Consists of: 1.) Owners - The ppl who have legal property rights to that business. -can be a single individual who establishes & runs a small business, partners who jointly own the business, individual investors who buy stock in a corporation, or other orgs 2.) Board of Directors - A governing body elected by the stockholders & charged w/ overseeing the general mgmt of the firm to ensure that it's being run in a way that bets serves the stockholders' interests The trend of passive boards who only perform a general oversight is changing as more boards are carefully scrutinizing the firms they oversee & exerting more influence over how they're managed. *This trend has been spurred by numerous scandals -At issue is the concept of corporate governance - who is responsible (&accountable) for governing the actions of a business. 3.) Employees -Of particular interest to managers today is the changing nature of the workforce, as it becomes increasingly diverse. Workers are also calling for more job ownership - either partial ownership in the company or at least more say in how they perform their jobs -the permanent employees of many orgs are organized into labor unions, representing yet another layer of complexity for managers. 4.) Physical Work Environment The actual physical environment of the org & work that ppl do. (location, layout, design, organization) 5.) Organization Culture -Set of values, beliefs, behaviors, customs & attitudes that help the members of the org understand what it stands for, how it does things & what it considers important -amorphous concept that defies objective measurement / observation -foundation of Org's internal environment & helps shape managerial behavior
How do different cultural beliefs impact our business practices?
Cultural differences between countries can have a direct impact on business practice. -For example, the Islam teaches that people should not make a living by exploiting the misfortune of others; charging interest payments, for example, is seen as immoral. This means that in Saudi Arabia there are few businesses that provide auto wrecker services to tow stalled cars to the garage (because that would be capitalizing on misfortune), and in the Sudan banks cannot pay or charge interest. Given these cultural and religious constraints, those two businesses—automobile towing and banking—do not seem to hold great promise for international managers in those countries! -Some cultural differences between countries can be even more subtle and yet have a major impact on business activities. -EX: in the United States, most managers clearly agree about the value of time. Most U.S. managers schedule their activities very tightly and then try to adhere to their schedules. Other cultures do not put such a premium on time. -the World of Difference feature discusses another set of issues facing international businesses today that relates to cultural forces. Language itself can be an important factor. Indeed, many major companies are working to better connect with non-English speakers. -EX: India has the second most Internet users in the world, but over half of those Internet users are not proficient in English. This makes it difficult for them to use the Google search engine or to order from Amazon.com. -Beyond the obvious and clear barriers posed by people who speak different languages, subtle differences in meaning can also play a major role. -EX: Imperial Oil of Canada markets gasoline under the brand name Esso. When the firm tried to sell its gasoline in Japan, it learned that esso means "stalled car" in Japanese.
What is the external environment?
Everything outside an organization's boundaries that might affect it. 2 Types: 1.) Task environment 2.) General Enviornment
What is the quantitative management perspective?
Focuses on decision making, economic effectiveness, mathematical models, & the use of computers. -2 branches: 1.) Management Science 2.) Operations Management General Summary: The quantitative management perspective focuses on applying mathematical models and processes to management situations. Management science deals specifically with the development of mathematical models to aid in decision making and problem solving. Operations management focuses more directly on the application of management science to organizations. Management information systems are developed to provide information to managers. Contributions: -Developed sophisticated quantitative techniques to assist in decision making. -Application of models has increased our awareness and understanding of complex organizational processes and situations. -Has been very useful in the planning and controlling processes. Limitations: -Cannot fully explain or predict the behavior of people in organizations. -Mathematical sophistication may come at the expense of other important skills. -Models may require unrealistic or unfounded assumptions.
What is administrative management?
Focuses on managing the total organization *primary contributors: 1.) Henri Fayol: -Was the 1st to identify the managerial functions of planning, organizing, leading & controlling -he believed that these functions accurately reflect the core of the mgmt process (most mgmt books still use this framework & practicing managers agree these functions are crucial part of job) 2.) Lyndall Urwick: -Integrated scientific mgmt with the work of fayol & other administrative theorists -Noted not so much for his own contributions as for his synthesis & integration of the work of others. 3.) Max Weber: -His work on bureaucracy laid the foundation for contemporary organization theory. 4.) Chester Barnard: -Made contributions to management in his book "The functions of the executive" -Book proposes a major theory about acceptance of authority -Theory suggests subordinates weigh the legitimacy of a sup's directives & then decide whether to accept them. An order is accepted if subordinate understands it, able to comply with it & views it as appropriate
What is management science?
Focuses specifically on the development of mathematical models (simplified representation of a system, process, or relationship) -At its most basic level, management science focuses on models,equations & similar representations of reality -Statistical techniques & methods derived from management science help engineers & managers assess the effectiveness of various safety features. results include safer vehicles & lower costs for manufacturers
What is operations management?
Form of applied management science. techniques are concerned with helping the org produce its products/services more efficiently & can be applied to a wide range of problems -Somewhat less mathematical & statistically sophisticated than management science & can be applied more directly to managerial situations -Used to manage inventories, linear programming, develop shipping routes & plan what instruments to produce at various times -techniques include: queing theory, break-even analysis & simulation
What is the multicultural environment?
In addition to the external and internal environments (including organization culture) there are also other important elements in the environment that relate to multiculturalism and diversity. We choose to discuss these elements separately because in many ways they connect and overlap with other aspects of the environment. -multiculturalism = The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures -diversity = Exists in a group or organization when its members differ from one another along one or more important dimensions, such as age, gender, or ethnicity Diversity and multiculturalism are increasing in most organizations today for 4 basic reasons: 1.) Changing demographics in the labor force 2.) Legislation & legal action 3.) Globalization movement 4.) Increased awareness that diversity improves the quality of the workforce
What is a market system?
Market systems are clusters of countries that engage in high levels of trade with one another. -Our world has 3 mature market systems: 1.) The North American Free Trade Agreement (NAFTA) -The United States, Canada, and Mexico are major trading partners with one another; more than 80 percent of Mexico's exports go to the United States, and more than 51 percent of what Mexico imports comes from the United States. -These countries have also negotiated a variety of agreements to make trade even easier. -eliminates many of the trade barriers—quotas and tariffs, for example—that existed previously. 2.) European Union (EU) -For years these countries have followed a basic plan that led to the systematic elimination of most trade barriers. The new market system achieved significantly more potential in 2002 when 11 of the EU members eliminated their home currencies (such as French francs and Italian lira) and adopted a new common currency called the euro. 3.) Pacific Asia -this market system includes Japan, China, Thailand, Malaysia, Singapore, Indonesia, South Korea, Taiwan, the Philippines, and Australia.
What is Social Responsibility?
Organizations themselves do not have ethics, but they do relate to their environment in ways that often involve ethical dilemmas and decisions. These situations are generally referred to within the context of the organization's social responsibility. **Specifically, social responsibility = the set of obligations an organization has to protect and enhance the societal context in which it functions. -Areas of Social Responsibility Organizations may exercise social responsibility: 1.) toward their stakeholders Most companies that strive to be responsible to their stakeholders concentrate first and foremost on three main groups: customers, employees, and investors. They then select other stakeholders that are particularly relevant or important to the organization and try to address their needs and expectations as well. -Organizations that are responsible to their customers strive to treat them fairly and honestly. They also seek to charge fair prices, to honor warranties, to meet delivery commitments, and to stand behind the quality of the products they sell. Companies that have established excellent reputations in this area include L.L. Bean, Lands' End, Dell Computer, and Johnson & Johnson. -Organizations that are socially responsible in their dealings with employees treat their workers fairly, make them a part of the team, and respect their dignity and basic human needs. Organizations such as Four Seasons Hotels, 3M Company, SAS Institute, and Southwest Airlines have all established strong reputations in this area. In addition, they go to great lengths to find, hire, train, and promote qualified minorities. -To maintain a socially responsible stance toward investors, managers should follow proper accounting procedures, provide appropriate information to shareholders about the financial performance of the firm, and manage the organization to protect shareholder rights and investments. 2.) toward the natural environment Now, however, many laws regulate the disposal of waste materials. In many cases, companies themselves have become more socially responsible in their release of pollutants and general treatment of the environment. -Companies need to develop economically feasible ways to lessen their impact on climate change and, instead, to promote sustainable business practices and develop less damaging methods for handling sewage, hazardous wastes, and ordinary garbage. -Companies also need to develop safety policies that cut down on accidents that may have potentially disastrous environmental results. -One of today's more contentious business practices related to the natural environment is fracking. 3.) toward general social welfare -Some people believe that, in addition to treating constituents and the environment responsibly, business organizations also should promote the general welfare of society. -EX: include contributing financially to charities, philanthropic organizations, and not-for-profit foundations and associations; providing other support (such as buying advertising space in programs) to museums, symphonies, and public radio and television; and taking a role in improving public health and education. -Some people also believe that organizations should act even more broadly to correct the political inequities that exist in the world. -EX: these observers would argue that businesses should not conduct operations in countries with a record of human rights violations. **Some organizations acknowledge their responsibilities in all three areas and strive diligently to meet each of them, whereas others emphasize only one or two areas of social responsibility. And a few acknowledge no social responsibility at all.
What is the behavioral management perspective?
Placed much more emphasis on individual attitudes & behaviors and on group processes & it recognized the importance of behavioral processes in the workplace General Summary: -The behavioral management perspective focuses on employee behavior in an organizational context. -Stimulated by the birth of industrial psychology, the human relations movement supplanted scientific management as the dominant approach to management in the 1930s and 1940s. -Prominent contributors to this movement were Elton Mayo, Abraham Maslow, and Douglas McGregor. -Organizational behavior, the contemporary outgrowth of the behavioral management perspective, draws from an interdisciplinary base and recognizes the complexities of human behavior in organizational settings. Contributions: -Provided important insights into motivation, group dynamics, and other interpersonal processes in organizations. -Focused managerial attention on these same processes. -Challenged the view that employees are tools and furthered the belief that employees are valuable resources. Limitations: -The complexity of individual behavior makes prediction of that behavior difficult. -Many behavioral concepts have not yet been put to use because some managers are reluctant to adopt them. -Contemporary research findings by behavioral scientists are often not communicated to practicing managers in an understandable form.
What is management? -What does it do? -What are its functions?
Set of activities (including planning, decision making, organizing, leading, & controlling) directed at an org's resources (human, financial, physical & info) w/ the aim of achieving organizational goals in an effective & efficient manner -Efficient: Using resources wisely & in a cost-effective way. EX: Toyota producing high-quality products at relatively low costs -Effective: Making right decisions & successfully implementing them. EX: Toyota makes cars w/ style & quality to inspire customer interest/confidence
What is the contingency perspective?
Suggests that universal theories CANNOT be applied to Orgs because each org is unique. -Instead, the contingency perspective suggests that appropriate managerial behavior in a given situation depends on or is contingent on, unique elements in that situation
What is the classical perspective?
The first important ideas to emerge are now called the classical management perspective. *This perspective actually includes two branches: 1.) Scientific management 2.) Administrative management. General Summary: The classical management perspective had two primary thrusts. Scientific management focused on employees within organizations and on ways to improve their productivity. Noted pioneers of scientific management were Frederick Taylor, Frank and Lillian Gilbreth, Henry Gantt, and Harrington Emerson. Administrative management focused on the total organization and on ways to make it more efficient and effective. Prominent administrative management theorists were Henri Fayol, Lyndall Urwick, Max Weber, and Chester Barnard. Contributions: -Laid the foundation for later developments in management theory. -Identified important management processes, functions, and skills that are still recognized today. -Focused attention on management as a valid subject of scientific inquiry. Limitations: -More appropriate for stable and simple organizations than for today's dynamic and complex organizations. -Often prescribed universal procedures that are not appropriate in some settings. -Even though some writers (such as Lillian Gilbreth and Chester Barnard) were concerned with the human elements, most viewed employees as tools rather than resources
What is the task environment?
The impact of the general environment is often vague, imprecise & long-term, so most orgs tend to focus their attention on the task environment. -Consists of external organizations or groups that influence an org: 1.) Competitors other orgs that compete w/ it for resources -Most obvious resources that competitors vie for are customers dollars -Competition also occurs between substitute products. EX: Disney, Marriott resorts, & carnival cruises all compete for your vacation -Ironically, sometimes a business suffers bc of problems that beset its competition (TB toys closing sales hurt Toys R Us) -Competition is NOT limited to business firms (trade schools, the military, universities & labor markets try to attract good students) -Orgs may also compete for diff kinds of resources besides consumer $ -Businesses also compete for quality labor, technological breakthroughs & patents and scarce raw materials 2.) Customers Whoever pays $ for org's products/services -need not to be individuals ( can be schools, hospitals, wholesalers, gov agencies, retailers: a few orgs that buy from other orgs) 3.) Suppliers are organizations that provide resources for other organizations. -McDonald's buys soft-drink products from Coca-Cola; individually packaged servings of ketchup from various suppliers; ingredients from wholesale food processors; and napkins, sacks, and wrappers from packaging manufacturers. 4.) Strategic partners 2 or more companies that work together in joint ventures or other partnerships -help companies get from other companies the expertise they lack -help spread risk & open new market opportunities -Most strategic partnerships are actually among international firms 5.) Regulators Have the potential to control, legislate, or otherwise influence an Org's policies & practices. -2 important types: 1.) Regulatory Agencies = Created by the gov to protect the public from certain business policies /practices & protect orgs from other orgs -powerful federal regulation agencies = EPA,FDA, SEC, EEOC - many of these play important role in protecting rights of individuals -most large companies must dedicate thousands of dollars a year to complying w/ gov regulations -regulatory environment in other countries is even more stringent 2.) Interests Groups = organized by members to try to influence Orgs -Prominent Interest Orgs; NOW, MADD, NRA -Although they lack the official power of gov agencies, they can exert considerable influence by using media to call attention
What is the general environment?
The set of broad dimensions & forces in an org's surroundings that create its overall context -Consist of 5 Dimensions: 1.) Economic Dimension Overall health & vitality of the economic system in which the org operates -Important economic factors for business: general economic growth, inflation, interest rates, & unemployment -Important to nonbusiness orgs too: hospitals are affected by availability of gov grants & during weak economic conditions, funding for state universities may decrease & contributions to charitable orgs decrease 2.) Technological Dimension Refers to the methods available for converting resources into products or services. -Although there's a tendency to associate technology w/ manufacturing it also has relevance to the service sector (EX: a hamburger at McDonald's follows predefined path as the meat is cooked, the burger assembled, & the finish product wrapped & bagged for a customer. 3.) Sociocultural Dimension Includes the customs, morals, values, & demographic characteristics of the society in which the Org functions -Sociocultural processes are important bc they determine the products, services, & standards of conduct that the society is likely to value -Influence how workers in a society feel about their jobs & orgs -The shape of the market, the ethics of political influence & attitudes in the workplace are only a few ways culture can affect an Org 4.) Political-Legal Dimension Refers to gov regulation of business & the relationship between businesses & the governement. -Important for 3 reason: 1.) The legal system partially defines what an org can & can't do 2.) Pro/Anti business sentiment in gov influences business activity 3.) Political Stability has ramifications for planning. No business wants to set up shop in another country unless trade relationships w/ that country are relatively well defined & stable 5.) International Dimension The extent to which an org is involved in or affected by businesses in other countries -can face foreign competition at home, use materials/production equipment imported from abroad *Also has implications for non-profit orgs
Douglas Mcgregor's Theory X & Theory Y
Theory X & Theory Y model best represents the essence of the human relations movement -he argued that theory X best represented the views of scientific mgmt & theory Y represented the human relations approach -He believed theory Y was the best philosophy for all managers. Theory X assumptions: 1.) Ppl don't like work & try to avoid it 2.) Ppl don't like work, so managers have to control, direct,coerce & threaten employees to get them to work toward org goals 3.) Ppl prefer to be directed, to avoid responsibility, and to want security; they have little ambition Theory Y assumptions: 1.) Ppl don't naturally dislike work; work is a natural part of their lives 2.) Ppl are internally motivated to reach objectives to which they're committed 3.) Ppl are committed to goals to the degree that they receive personal rewards when they reach their objective 4.) Ppl will both seek & accept responsibility under favorable conditions 5.) Ppl have the capacity to be creative in solving org problems 6.) Ppl are bright, but under most organizational conditions their potential is underutilized
What are some controls on International Trade?
To protect domestic business, such governments may enact barriers to international trade. These barriers include: tariffs, quotas, export restraint agreements, and "buy national" laws. 1.) A tariff is a tax collected on goods shipped across national boundaries. -Tariffs can be collected by the exporting country, countries through which goods pass, and the importing country. -Import tariffs, which are the most common, can be levied to protect domestic companies by increasing the cost of foreign goods. EX: Japan charges U.S. tobacco producers a tariff on cigarettes imported into Japan as a way to keep their prices higher than the prices charged by domestic firms. -Tariffs can also be levied, usually by less-developed countries, to raise money for the government. EX: In the United States, the Byrd Amendment stipulates that, if a domestic firm successfully demonstrates that a foreign company is dumping (selling for less than fair-market value) its products in the U.S. market, those products will be hit with a tariff and the proceeds given to the domestic company filing the complaint. 2.) Quotas A quota is a limit on the number or value of goods that can be traded. -the most common form of trade restriction. -the quota amount is typically designed to ensure that domestic competitors will be able to maintain a certain market share. -EX: Honda is allowed to import 425,000 autos each year into the United States. This quota applies to cars imported into the United States, but the company can produce as many cars within U.S. borders as it wants because those cars are not considered imports. 3.) Export restraint agreements -designed to persuade other governments to voluntarily limit the volume or value of goods exported to or imported from a particular country. -they are, in effect, export quotas. -EX: Japanese steel producers voluntarily limit the amount of steel they send to the United States each year to avoid the possibility that the United States might impose quotas or charge tariffs to protect U.S. steel producers. 4.) "Buy national" legislation -gives preference to domestic producers through content or price restrictions. Several countries have this type of legislation. EX: Brazil requires that Brazilian companies purchase only Brazilian-made computers. Indeed, Brazil's bureaucratic control of foreign investment remains a major obstacle to doing business in that country. -EX: The United States requires that the Department of Defense purchase only military uniforms manufactured in the United States, even though the price of foreign uniforms would be half as much. -EX: Mexico requires that 50 percent of the car parts sold in Mexico be manufactured inside its own borders.
Universal Perspectives
Try to identify the "one best way" to manage orgs. -Include: 1.) Classical Perspective 2.) Behavioral Perspective 3.) Quantitative Perspective