MGT EXAM 1: CH 1-6

Two Types of Gov Influence Regulations

Direct: This includes rules and laws that dictate what businesses can and cannot do. Indirect: This includes the writing of tax codes that encourage companies to be socially responsible.

Philanthropic giving

Donations to charities and other causes promote the public good.

Four Types of Methods for Businesses Influencing the Gov

Personal contacts, lobbying, Political action committees (PACs), Favors

Top Managers

the executives who manage the overall organization. Example job titles are chief executive officer (CEO), chief experience officer (CXO), and chief strategy officer (CSO).

Arguments for Social Responsibility

(1) business creates problems, and should therefore help solve them; (2) corporations are citizens in our society; (3) business often has the resources necessary to solve problems; (4) business is a partner in our society, along with the government and the general population.

The government influences business through..

-environmental protection legislation -consumer protection legislation -employee protection legislation -securities legislation -tax codes

Business influences the government through..

-personal contacts and networks -lobbying -political action committees -favors and other influence tactics

Geert Hofstede's 5 Individual Differences Across Cultures

-social orientation -power orientation -uncertainty orientation -goal orientation -time orientation

Ongoing Planning Process (Contingency)

1. Develop plan considering emergencies 2. Implement plan 3. Specify indicators for contingency events 4. Complete

Arguments Against Social Responsibility

1. The purpose of business in US society is to generate profit for owners. 2. Involvement in social programs gives business too much power. 3. There is potential for conflicts of interest. 4. Business lacks the expertise to manage social programs.

The study of management did not begin until when?

19th century, Industrial Revolution (eg: Charles Babbage)

4 Ways to Overcome Barriers to Goal Setting

Appreciation of benefits. Communication and participation. Consistency and currency. Effective reward system.

Examples of high potential/high growth economies

Argentina, Brazil, India, Russia, South Africa, and Vietnam.

Ethical compliance

Codes of conduct, training programs, and program reviews ensure the business and all its officers and employees behave in an ethical and socially responsible manner.

5 External Groups of the Task Environment

Competitors, customers, suppliers, strategic partners, regulators

What has been a high profile ethical issue?

Data privacy

The Planning Process

Define the mission. Strategic Goals. Tactical Goals. Operational Goals.

5 Dimensions of the General Environment

Economic. Technological. Sociocultural. Political-legal. International

Who were the first people to utilize principles of management?

Egyptians and Sumerians

When an organization is both effective and efficient, what is it doing?

Engaging in activities that fulfill its mission, with no unnecessary cost

Management by objectives (MBO)

Formal goal setting process. gives managers at all levels a voice in formulating goals and plans, while at the same time clearly communicating what they are expected to achieve.

Who developed scientific management?

Frederick Taylor

How do companies fulfill social responsibility?

General social welfare

Resistance to change

Goals and plans inherently involve changing the organization in some way, and resistance is a common human reaction.

Four Aspects of the Political Legal Environment

Government stability, incentives for multinational trade, controls on international trade, economic community

Who developed administrative management?

Henri Fayol

Who are operational goals set by?

Lower management

Legal compliance

Managers and lawyers ensure that the business is operating in line with all applicable laws and regulations.

Manager reluctance

Managers may avoid setting goals—especially challenging goals— because of fear of failure.

Inappropriate Goals

Managers may set goals that are unrealistic or which conflict with other, more important goals.

Who are tactical goals set by?

Middle management

Informal Actions for Socially Responsible Behavior

Organizational leadership and culture. Whistleblowing.

Non Profit Orgs

Organizations with intangible goals such as education, social services, public protection, or recreation are often nonprofit organizations. These include government agencies, religious organizations, most educational institutions, and many health care providers.

What does the company mission state?

Purpose, premises, values, directions

Poorly designed reward system

Rewards may be misaligned with goals. Also, managers may be incentivized to set too-easy goals instead of challenging ones, or short-term goals at the expense of long-term achievement.

Universal perspectives

The classical, behavioral, and quantitative perspectives generally hold that there is "one right way" to manage any organization.

Entropy

The decline of a system when its managers fail to monitor feedback and make appropriate adjustments to the system

Dynamic and complex environment

The environment can make planning for the future very difficult so that goals tend to become obsolete quickly.

Synergy

The improved functioning of two or more subsystems when they are designed to work together

Michael E Porter's Five Competitive Forces

Threat of new entrants, competitive rivalry, threat of substitute products, power of buyers, power of suppliers

Who are strategic goals set by?

Top management

Who is in the NAFTA and USMCA?

US, Canada, Mexico

Theory

a framework for organizing facts and knowledge and how they might function in the world.

Organization

a group of people working together in a structured and coordinated way to achieve a set of goals.

Steps to Changing Company Culture

a manager first needs to have a clear vision of what the new culture should be. Then the manager can intentionally adopt new slogans, tell new stories, stage new ceremonies, and break with traditions attached to the organization's history. Another way to change culture is to hire managers from outside the organization, because they will bring new ways of thinking and acting to the organization.

Technical Skills

accomplish or at least understand the work done in the organization

Importing

acquires a good, a service, or capital abroad and brings it into the home country.

Multinational business

acquires resources from all over the world and sells its products globally as well.

Joint Venture

allies are co-owners of a new enterprise.

International business

based mostly in one country but does business in others, either by buying resources or by selling goods/services.

Market economy

based on private ownership of property and the relatively unrestricted operation of economic forces, such as supply and demand.

Direct Investment

building or buying manufacturing capability in another country. Advantages/Disadvantages: Enhanced control Existing infrastructure. Complexity Greater economic and political risk Greater uncertainty.

Decision Making

choosing a course of action from various alternatives.

Market system

cluster of countries that do a large proportion of their trade with each other.

Management

combining and coordinating of various resources to achieve the organization's goals.

Interpersonal Skills

communicate with and motivate individuals and groups

Scientific management

companies can do better by improving how individual workers do their jobs.

An organization faces the most uncertainty when the environment is:

complex and dynamic

WTO (World Trade Organization)

continued the mission of the GATT. The WTO encourages member nations to adopt nondiscriminatory and predictable trade policies, reduce trade barriers through multilateral negotiations, and establish fair procedures for resolving trade disputes.

Decision-making Skills

correctly recognize and define problems and opportunities and then choose an appropriate course of action

Organizational behavior

current behavioral perspective on management. takes into account the complexity of human behavior that affects worker performance in organizations.

Organizing

deciding how people, their activities, and the organization's resources should be grouped so that they work together in a coordinated way.

Diversity

demographic differences among people. These include differences in gender, age, ethnicity, and religion.

Communication Skills

effectively convey and receive ideas and information

Physical Resources

equipment or buildings. tangible items.

Behavioral management perspective

focuses on the importance of individual attitudes and group processes in the workplace.

Human relations movement from Hawthorne studies

founded on two assumptions: •If managers show concern for workers, the organization will have higher worker satisfaction. •Higher worker satisfaction leads to improved worker performance.

Middle Managers

implement the policies and plans of top managers and supervise lower-level managers. Example job titles are director, manager, and product owner.

Classical management

includes administrative and scientific management

For Profit Orgs

large and small companies, and may be domestic or international.

Economic system

lies on a spectrum between a pure market economy and a pure command economy. In a pure market economy, consumers are completely free to choose what to buy, and organizations are completely free to choose what to sell.

Exporting

making the product or service in the home country and selling it abroad.

Process to Execute a Tactical Plan

managers continually evaluate how well the plan is helping the organization achieve the relevant goal, provide resources to the people carrying out the plan, coordinate activities in different parts of the organization so people don't work at cross-purposes, and monitor the progress of the plan's implementation.

Process to Develop a Tactical Plan

managers work closely with the strategic plans and tactical goals that those tactical plans will support. Managers then identify all the resources, including time and people, needed to implement the tactical plans.

Administrative management

manages the total organization

Controlling

monitoring and correcting the organization's progress toward its goals.

Leading

motivating and managing members of the organization to work together in the interests of the organization.

Contingency perspective

no one theory works for all organizations because different organizations are in different situations, which call for different managerial behaviors.

Three Decisional Roles

o Entrepreneur—initiating change o Disturbance handler—handling potential disruptions to the organization o Resource allocator—deciding how resources will be distributed o Negotiator—representing the company in external negotiations and mediating internal negotiations

Three Interpersonal Roles

o Figurehead—fulfilling ceremonial duties as a symbol of the organization o Leader—managing employees o Liaison—coordinating people or organizations

Three Informational Roles

o Monitor—seeking information o Disseminator—forwarding information to others in the organization o Spokesperson—providing information in a formal way to people outside the organization

Licensing

one organization allows another to use its brand name, trademark, technology, patent, copyright, or other assets according to strict specification in exchange for a royalty. Advantages/ Disadvantages: Increased profitability Extended profitability. Inflexibility Competition

Domestic business

operates entirely within a single country. Examples include family-owned businesses and farms.

Global business

operates so internationally that it no longer considers itself as having a home country.

Multiculturalism

opportunities and challenges posed by the many differences among the people in the organization's environment, including different locations, values, and experiences.

Strategic alliance

organizations cooperate for mutual gain through a partnership or other contractual agreement.

Five Components of the Internal Environment

owners, board of directors, employees, culture

Abraham Maslow's 5 Hierarchy of Needs

physiological needs, safety needs, needs for love and belonging, esteem, and self-actualization.

Time Management Skills

prioritize tasks, work efficiently, and delegate appropriately

GATT (General Agreement on Tariffs and Trade)

promoted international trade by lowering trade barriers between nations. One provision of the GATT was the most favored nation (MFN) principle, which says that if a country extends preferential treatment to any other nation that has signed the GATT, it must give the same treatment to all countries that have signed the agreement.

High potential/high growth economies

relatively underdeveloped with weak industry, weak currencies, and relatively poor consumers. However, they have been working to strengthen their economies by encouraging foreign investment and international trade.

Sarbanes-Oxley Act

requires CEOs and CFOs to vouch for the truthfulness and fairness of their companies' financial disclosures.

Hawthorne studies

researchers discovered that workers respond positively to sympathetic managers and behave in accordance with group norms that they create themselves

Industrial psychology

seeks to understand how human behavior in the workplace influences a company's productivity.

Planning

setting an organization's goals and deciding how to achieve them.

First Line Managers

supervise operating employees. Example job titles are supervisor, coordinator, and lead.

Multinational Corporations (MNCs)

take a global perspective; scan the international environment constantly for opportunities; and readily transfer capital, technology, human resources, inventory, and information from one market to another. These organizations have senior managers who are comfortable setting international business strategy and working across cultures.

Optimizing

the process of balancing and reconciling conflicts among goals.

Conceptual Skills

think about problems in the abstract for creative problem solving

Art of management

using experience, intuition, and personal insights. The manager relies heavily on conceptual, communication, interpersonal, and time management skills.

Science of management

using objective data in a rational and systematic way. The manager relies heavily on technical, diagnostic, and decision-making skills.

Diagnostic Skills

visualize the most appropriate response to a situation

Benefits of Behavioral Management

•Provides managers with insights into the interpersonal dimension of organizations •Supports the view that employees are valuable resources

Types of Standing Plans

•A policy states how the organization will respond to a given situation. For example, a public library might have a policy to acquire every book that wins a major literary award.•A standard operating procedure (SOP) outlines the steps to be followed under certain circumstances. For example, the library might have an SOP that addresses how donated books are evaluated and processed.•Rules and regulations describe exactly how specific activities must be carried out. For instance, the library might have a rule that requires librarians to maintain a wait list for patrons who wish to check out a popular book.

Types of Single Use Plans

•A program is a plan for a large number of activities. For example, a company may develop a program for launching a new product.•A project is smaller in scope and less complex than —and may even be part of— a program. For example, a project would develop the web pages that allow customers to learn about and purchase the new product.

Modern challenges for managers

•An unpredictable economy •Managing diversity •Employee privacy •Working from home •Globalization •Working across cultures •Ethics and social responsibility •Social media's impact on business

4 Types of Organizational Justice

•Distributive justice is the degree to which members perceive that the organization distributes rewards among them in a fair and equitable manner. •Procedural justice is the degree to which members perceive that decisions affecting them are arrived at through a fair process. •Interpersonal justice is the degree to which members perceive that other members of the organization treat them with dignity and respect. •Informational justice is the degree to which members see that decisions are made using all available information.

How to promote an ethical organizational culture

•Holding business ethics training to help employees cope with ethical dilemmas •Issuing a written code of ethics that states the values and standards that guide the firm's actions

Areas of ethical concern for managers

•How the organization treats its employees: Does the organization hire, fire, pay, and otherwise treat its employees fairly? •How employees treat the organization: Do employees have conflicts of interest that could lead them to act dishonestly and undermine the organization? •How employees and the organization treat other economic agents: Are the company and its employees fair and honest in their dealings with customers, stockholders, suppliers, and competitors?

Four Types of Management Resources

•Human•Financial•Physical•Information

Limitations of Behavioral Management

•Individual behavior is complex and therefore difficult to predict. •The findings of behavioral scientists are often not communicated in a way that lay practitioners, such as managers, can understand them.

How can managers be ethical leaders?

•Issuing statements pledging to protect personal data and not share it without permission •Having a data privacy policy and refusing to do business with organizations that do not have privacy policies

Limitations of quantitative management

•It does not fully explain or predict the behavior of people. •Managers may focus on mathematical analysis so much that they overlook other important skills. •If based on unrealistic assumptions, models may lead to poor decisions.

What is the impact of emerging technology on businesses?

•It is easier than ever for managers to communicate with each other. •It is easier for managers to work remotely, rather than commute to an office. •The pace of work has increased. •The rate of change in the business environment has increased.

Branches of quantitative management

•Management science focuses on using mathematical models to represent reality, aid in decision making and measure results. •Operations management but is less technical than management science, and is used to improve business operations and produce goods and services more efficiently.

Benefits of quantitative management

•Sophisticated mathematical techniques help with decision making. •Models provide an increased understanding of complex organizational processes. •It has enhanced the management functions of planning and controlling.

Types of Operational Plans

•Standing plans are developed to carry out activities that the organization needs to perform repeatedly. •Single-use plans are developed to address situations that probably will not occur again.

Which two recent events affected the economy and changed the workplace?

•The financial collapse of 2008 •The COVID-19 pandemic of 2020

Influences of Organizational Culture

•The founder •Symbols •Stories •Heroes •Slogans •Ceremonies •History of successes •Shared experiences

How is the US workforce becoming more diverse?

•The workforce is growing older. •More women have entered the workforce. •More women have entered traditionally male occupations, and more men have entered traditionally female occupations. •More underrepresented groups and first-generation immigrants have entered the workforce. •The Americans with Disabilities Act, passed in 1990, opened employment opportunities to a wider range of people.

Douglas MacGregor's Theory X and Y

•Theory X: People do not like to work and have little ambition, so managers must coerce them into working toward the organization's goals. •Theory Y: People accept work as a necessary part of life, so they will be motivated to work and accept responsibility for it under favorable conditions where they can receive rewards for reaching objectives.

4 Purposes that goals serve

•To serve as a "compass" •To be an input to sound planning •To motivate employees. •To assist with evaluation and control of organizational performance.

What does classical management mean for us today?

•Workers change jobs and organizations more often. •Rapid changes in technology cause more frequent changes in job tasks. •Organizations restructure more frequently. Managers today understand that employees are not analogous to cogs in a machine but instead are multidimensional resources with complex behaviors.