Management 301 Exam 1

Introduction
What was the point of the football exercise?
To understand the process of MGMT.
-Shows organization makes business more efficient
-Goal, structure, engagement, and metrics
Introduction
Diagon Alley Example
Had a ton of planning, resources, organizing to go into it
Introduction
The Management Process
Planning – Setting performance objectives and deciding how to achieve them

Controlling- Measuring performance and taking action to ensure desired results

Leading- Inspiring people to work hard to achieve high performance

Organizing- Arranging tasks, people, and other resources to accomplish the work

Introduction
Smeal Honor Code
1. We aspire to high ethical standards &
2. Will hold each other accountable.
3. We will not engage in any improper academic or professional actions.
Introduction
Languages of Business
Accounting – Technical Language

Business Major – Functional Language

Management – People and Organizational Language

Business Information/Literacy – Conversational Language

*You need to know management so you know how to manage people and you understand why you are being managed in a certain way.

Introduction
Fortune 500
Largest companies in the United States based on revenue
-Walmart is the largest (476 billion)
-Exxon #2
Introduction
Global 500
Largest companies in the World based on revenue
-#1 is Walmart
Introduction
So You Think You Can Dance
????
Chapter 1
What do Managers Do?
1. Relies on Control
2. Administers
3. Maintains
4. System/Structure
5. Short-Range View
6. Asks How and When
7. Maintain Status Quo
8. Does Things Right
*EXECUTION*
Chapter 1
What does a Leader do?
1. Innovates
2. Focus on People
3. Develops
4. Inspire Trust
5. Long-Range View
6. Asks what and Why
7. Challenge Status Quo
8. Does the Right Think
*VISION, THINKING, STRATEGY*
Chapter 1
Shirtless Dancing Guy Example
-Their is a shirtless dancing guy
-The first person to follow the dancing guy is actually the most important because he starts the movement
-The Leader is just glorifed
Chapter 1
Levels of MGMT
Traditional Pyramid
1. For Profit = Board of Directors or Non Profit = Board of Trustees
2. CEO (President, VP)
3. Senior Managers (CFO)
4. Middle Managers (Division Managers, Regional Managers)
5. Front-Line Managers (Department Head, Team Leader)
6. Non-Managerial Worker
Chapter 1
Levels of MGMT
Non-Traditional Pyramid (Inverted Levels)
1. Customers
2. Operating Workers
3. Team Leaders & Middle Managers
4. Sr. Managers
5. CEO
6. Board of Directors or Board of Trustees
Chapter 1
Levels of MGMT
Inverted Company Structure Example
W. L. Gore
-CEO Terri Kelly
-GoreTex
-No titles, completely team based
Chapter 1
Levels of MGMT
Traditional Pyramid Examples
Military
Religion
Education
Government
Business
***Caterpillar***
Chapter 1
Who is Henry Mintzbeg?
*Author of The Nature of Managerial Work”
-Mechanical Engineering degree from McGill University
Chapter 1
Mintzberg’s Roles 3
Interpersonal Role
Informational Role
Decisional Role
Chapter 1
Mintzberg’s Roles
Interpersonal Role
How a manager interacts with other people.
– Figurehead – ceremonial role, honor is important
– Leader – Task people, make people accountable
– Liaison – Whatever the outside world needs of you (Ex: Government, News)
(Inside and Outside Work)
– Ex: Don Thompson is the CEO of McDonald’s, but he isn’t the founder
Chapter 1
Mintzberg’s Role
Informational Role
How a manager exchanges and processes information.
– Monitor – looking out for opportunities and threats
– Disseminate – take outside information and teach it to any team
– Spokes Person – disseminates information to team for innovation
– Ex: Steve Jobs (Former CEO of Apple)
Tim Cook (Current CEO) unveil new items
Chapter 1
Mintzberg’s Role
Decisional Role
How a manager uses information in decision making
– Negotiator – most complex, make decisions, talk with different states about battery function
– Disturbance Handler – any internal or external disturbances
– Entrepreneur – making decisions to innovate (what is next)
– Resource Allocater – who gets what resources, where these resources go, strategies
– Ex: Elon Musk – CEO of Tesla Motors, SpaceEx, and Co-founder of Paypal “Iron Man”
Chapter 1
Robert Katz’s Big 3 Skills of Managers
1. Conceptual Skills – the ability to think analytically and achieve integrative problem solving (High Top-Level Managers)

2. Human Skills – The ability to work well in cooperation with other persons: emotional intelligence – the ability to manage ourselves and relationships effectively (Equal for Top, Middle, and Low Levels)

3. Technical Skills – The ability to apply expertise and perform a special task with proficiency (High Low-Level Managers)

Chapter 1
Emotional Intelligence includes all the facets of leadership competencies except?
Ethical Decision Making
Chapter 1
Career Issues for Managers Leadership Competencies
1.Globalization
2. Ethics
3. Governance
4. Diversity
5. Knowledge
6. Self Management
Chapter 1
Career Issues for Managers Leadership Competencies
Globalization
The worldwide interdependence of resource flows, product markets, and business competition.
Chapter 1
Career Issues for Managers Leadership Competencies
Ethics
A code of moral principles that sets standards of conduct for what is good and right
Chapter 1
Career Issues for Managers Leadership Competencies
Governance
Oversight of a company’s management by a board of directors
Chapter 1
Career Issues for Managers Leadership Competencies
Diversity
Describes differences among workers in gender, race, age, ethnicity, religion, sexual orientation, and able-bodiness. (discrimination and prejudice)
Chapter 1
Career Issues for Managers Leadership Competencies
Knowledge
Knowing about the company and it’s workers
Chapter 1
Career Issues for Managers Leadership Competencies
Self Management
The ability to understand oneself, exercise initiative, accept responsibility, and learn from experience.
Chapter 2
History of Management
Study of the Western European approach
Industrial Revolution 1700’s and on
-MGMT has occurred everywhere in the world in all cultures
-MGMT has been practiced for all of time
Ex: Coliseum & Pyramids both needed MGMT of people and supplies to make them happen
Chapter 2
3 Approaches to Management
1. Classical
2. Behavioral
3. Modern
Chapter 2
Classical
Frederick Taylor – Scientific Management
Max Weber – Bureaucratic Organization
Henri Fayol – Administrative Principles

*Assume that people are rational*

Chapter 2
Frederick Taylor
Scientific Management (1911)
-Goal is to secure maximum prosperity for employer and maximum prosperity for the employees
-Observed that lack of clear uniform methods caused workers to lose efficiency and under-perform
*Measured Things* *Quantify*

-Proposed 4 core principles to address this:
1. Develop a “science” for each job – study jobs to identify basic steps and motions, work tools, work conditions; identify the most efficient ways to do each jon
2. Hire workers with the right abilities – careful selection and training of workers
3. Train and motivate workers to follow the “science” of each job – teach supervisors how to support and encourage workers
4. Support workers based on the science of each job – supervisors responsible for making sure workers have what they need to successfully perform jobs.

Chapter 2
Scientific Management Examples
Ex: UPS (United Parcel Service) still uses Taylor’s theories in practice, from conducting time-motion studies as its sorting facilities to developing detailed timelines for deliveries. The savings of seconds on individual delivery stops adds up to productivity increases.

Ex: Henry Ford was the first to adopt Taylor’s approach in his auto manufacturing business
BMW plant is current example

Ex: Motion study- science of reducing a job or task to is basic physical motions (Great Shovel Project – right length and poundage)

Ex: Top coach teaches football players techniques and how it fits strategy they are going to perform better

Chapter 2
Max Weber
Bureaucratic Organization (1864-1920)
– Developed his ideas in response to what he viewed as poor performance by organizations
– Felt that these problems could be addressed through bureaucracy
*Organize*

Power = ability to coerce actions’ authority = actions taken voluntarily

Bureacracy – a rational and efficient form of organization founded on logic, order, and legitimate authority

Characteristics of an Ideal Bureacracy (Weber)
1. Clear Division of Labor – jobs well define; workers are highly skilled at performing jobs
2. Clear Hierarchy of Authority – well defined authority and responsibility; clear reporting structure
3. Formal Rules and Procedures – written guidelines for expected behaviors; files are kept for the historical record
4. Impersonality – impartial rules; no preferential treatment based on individual characteristics
5. Careers Based on Merit – worker selection and promotion based on ability/performance; managers are career employees of the organization

Chapter 2
Bureaucratic Organization Examples
Ex- NASA and the management of the Space Shuttle program represent the Bureaucratic Management method; the Google Lunar X-Prize is an example of non-bureaucratic approach to business

Ex- Military -Religion – Business – Education -Government
*Inflexible – not likely to change

Chapter 2
Henri Fayol
Administrative Principles (1841 – 1925)
– Published Administration Industrielle et Generale outling his views on management; identified “rules” or “duties” of management
1. Foresight/Planning – complete plan of action for the future
2. Organization – provides resources to implement the plan
3. Command – lead, choose, and evaluate workers
4. Coordination – put different efforts together; share information; solve problems
5. Control – ensure that things happen as planned; take corrective action
Chapter 2
Administrative Principles Examples
Ex: Scalar Chain Principle – organizations should operate with clear and unbroken lines of communication from the top to the bottom of the organization

Ex: Unity of Command Principle – a worker should receive orders from only 1 boss

Chapter 2
Behavioral
1. Elton Mayo – Hawthorne Studies
2. Douglas McGregor – Theory X & Y
3. Abraham Maslow – Human Needs Theory

Look at MGMT from an HR perspective, shifting MGMT thinking away from physical factors to the human side. Understand people and manage people better, you can increase productivity.

Chapter 2
Elton Mayo
Hawthorne Studies (1880 – 1949) – focused on the human side of organizations, trying to increase productivity

-Studied – how use of economic incentives and physical conditions affected worker output (Western Electric study)
– Ex: When the lights were turned on; productivity went up. When the lights were turned off, productivity went up; productivity improved regardless of changes made
– Result – no direct relationships found between changes in physical working conditions and performance; researcher attention was key; groups have negative/positive influence on member behavior

*Hawthorne Effect – tendency of people who receive special attention to perform as expected*

Chapter 2
Abraham Maslow
Human Needs Theory (1908 – 1970) – Hierarchy of needs

Need – physiological or psychological deficiency that a person must satisfy
Hierarchy
– Self Actualization – self fulfillment and peak experience; give back to the world
– Esteem Needs – respect, competence, prestige
– Social Needs – love, belonging, family, friends, relationships
– Safety Needs – emotional, financial, alliances
– Physiological (Basic) Needs – food, water, shelter

Higher order needs – self-actualization and esteem needs
Progression Principle – A need at any level becomes activated only after the newt-lower need is satisfied
Deficit Principle – People act to satisfy needs for which a satisfaction deficit exists; people are not motivated by already-satisfied needs

*You can target marketing towards these needs to market your product
*You can motivate people buy providing these needs in a management sense.

Chapter 2
Douglas McGregor
Theory X & Y (1906 – 1964)
-Wrote the Human Side of Enterprise; influence by Maslow and the Hawthorne studies; managers should pay more attention to the social and self-actualizing needs of employees; reflects ways managers manage today

-Theory X – assumes people dislike work, lack ambition, are followers, resist change, are irresponsible

-Theory Y -assumes people are willing to work, are capable/creative, are self-controlled, are self-directed, are responsible

-Self-fulfilling prophecy – when a person acts in a way that confirms another’s expectations; people behavior consistently with other’s assumptions (like the Hawthorne Effect); the assumptions of both Theory X and Theory Y create self-fulfilling prophecy

Chapter 2
Theory X
Directive Industry
1. Dislike Work
2. Lack Ambition
3. Follow not lead
4. Resist Change
5. Irresponsible
Chapter 2
Theory Y
Participative
1. Willing to Work
2. Capable/Creative
3. Self-controlled
4. Self-directed
5. Responsible
Chapter 2
Modern Approaches to Management
1. Operations and Management Science
2. Customer Driven System
3. Contingency Thinking
4. Quality Management/Evidence Based Management
Chapter 2
Modern Approaches to Management
Operations and Management Sciene
Analytics- the systematic use and analysis of data to solve problems and make informed decisions
Ex: Queing Theory, Network Models, Forecasting, Inventory Analysis, and Linear Programming
Chapter 2
Queing Theory
Study of waiting in lines.
Ex: Disney studies rides per capita, study consumers on how long they are willing to wait.

Walmart on has a certain number of lines open to study how long people are willing to wait for cash register before they just drop their shit and leave

Chapter 2
Modern Approaches to Management
Customer Driven Open Systems
Transform resource inputs into product outputs
– Inputs (resources in) – people, money, materials, technology, information
– Outputs (out to customers) – finished goods, completed services
– Work – business creates resources to outputs
– Customer feedback – loops back from outputs to inputs

Ex: Zara
-1,659 stores in 85 countries
– Operations Management Keys
– 2 week design cycle
– Design imitator
– Attractive price points
-Headquartered in Northern Spain

Chapter 2
Modern Approaches to Management
Contingency Thinking
(Government vs. Private Space Program) matches management practices with situational demands
-What works for 1 organization may not work for another
-What works now may not work later
Chapter 2
Modern Approaches to Management
Quality Management/Evidence Based Management
Focuses on continuous improvement; an example is Six Sigma
-Total Quality Management – managing with an organization – wide focus on continuous improvement, product quality, customer needs
– Continuous Improvement – always searching for new ways to improve work/performance
– ISO Certification – conforming with a rigorous set of international quality standards
-Make decisions based on facts, looking at what works
-Scientific Method
Chapter 2
Six Sigma
Process Improvement
Example of Quality MGMT/Evidence Based MGMT
Chapter 2
Lean Principles
Reduction of waste
Example of Quality MGMT/Evidence Based MGMT
Chapter 3
Responsibility
Ability or authority to act or decide on one’s own without supervision
Chapter 3
Spider Man Example
With great power comes great responsibility!
Chapter 3
PONG
Personal – Most important
Organizational
National – different customs
Global – values applied across
Chapter 3
Ethics Research Study Data
In 2011 we saw a increase of 5% from 2009 to 13% of US workers perceiving pressure to commit misconduct.

Millenniums are the most retaliated against age group when it comes to whistle blowing.

-% Point Changes in Key ERC Metrics (2011-2013)
There was a 2% decrease in Reporting of Observed Misconduct to 63%

Chapter 3
Ethics
Standards of good or bad, right or wrong, in conduct

Set of Principles
Right Conduct
Underlying Values

Chapter 3
Other Moral Approaches
1. Utilitarian View
2. Individualism View
3. Justice View
4. Moral Rights View
Chapter 3
Other Moral Approaches
Utilitarian View
John Stuart Mill
-Ethical behavior delivers the greatest good to the most people; results oriented view
Chapter 3
Other Moral Approaches
Individualism View
Ethical behavior advances long-term self interests; people become self-regulating as they strive for their own individual success over time
-Pecuniary Ethic – a tendency to push the law to its limits, probably at the expense of others; can result from individualism in the business ethic
Chapter 3
Other Moral Approaches
Justice View
Ethical behavior treats people fairly and impartially according to legal standards.
1. Procedural Justice – fair application of policies and rules
2. Distributive Justice – treating people the same regardless of personal characteristics
3. Interactional Justice – degree to which others are treated with dignity and respect
4. Commutative Justice – fairness of exchanges or transactions
Chapter 3
Other Moral Approaches
Moral Right View
Ethical behavior respects and protects people’s fundamental rights
Chapter 3
Conventional Approach
Common Sense Approach
– If that’s all we have we are not going to be ethical because their are so many ways that it won’t work
Chapter 3
What is Right and What is Wrong?
Right
1. Respect
2. Not cheating
3. Treating Workers Fairly

Wrong
1. Stealing from company
2. Cheating customers
3. Abusing Children
4. Sexual Abuse
5. Unfair Treatment
6. Discrimination

Chapter 3
Hypernorms
Values that are excepted in virtually in every single culture. Customs and approaches can be different, but hyper norms are almost always excepted.
Chapter 3
Cultural Relativism
When in Rome, Do as the Romans Do
-Follow those standards of the host country
-Cultural context determines it

No one right way to behave; we must consider cultural context when evaluating ethical behavior, ethics can vary across cultures

Chapter 3
Moral Absolutism
Define what my standards are in my host country, and you take your standards with you from your own country.

Imposing one’s own ethical standards on another culture

Chapter 3
Descriptive Ethics
WHAT IS
Chapter 3
Normative Ethics
WHAT OUT TO BE
Chapter 3
Ethical Decision-Making Assessment Framework (6)
1. Awareness – Idea of what is going on
2. Facts – actual information
3. Stake holders – anyone who has an interest
4. Standards – laws, policies, procedures
5. Values – Do I operate on a certain level
6. Actions – what do I do
Chapter 3
Sweetie Case
Worker calls a female worker “Sweetie”
Chapter 3
Kolberg’s Levels of Moral Development
Level 1: Preconventional (Self) (Self centered, Person at gain)
1. Punish
2. Reward

Level 2: Conventional (Others) (Social)
3. Good
4. Law

Level 3: Post Conventional (All) (Principles)
5. Fairness
6. Universal – great power, great responsibility

Chapter 3
Organizational Ethics Components
1. Leadership
2. Ethics Officer
3. Codes
4. Training
5. Audits
6. Industry Standards
7. Avoid Undue Authority
8. Communicate
9. Detection & Prevention
10. Compliance Standards
Chapter 3
What is the #1 factor of effecting behavior?
Behavior of Superiors (Supervisor)
Chapter 3
Rules and Ethics
Rules – found in a compliance document

Ethics/Values – found in a code of conduct

Chapter 3
Whistleblower
Report/expose misconduct of an organization and/or it’s members to preserve ethical standards and protect against wasteful, harmful, or illegal acts.

Reason for not doing it: No corrective action would be taken, reports would not be confidential.

Chapter 3
Immoral Managers
Behaves unethically
-personal gain, purposefully disregards ethics
Chapter 3
Amoral Manager
Does not consider the ethics of his/her behavior
-Unintentional
*MOST COMMON*
Chapter 3
Moral Managers
Sets ethical behavior as a personal goal
-post conventional or principal stage of moral development
Chapter 3
Terminal Values
Preferences about desired end states
Ex: self-respect, family security, freedom, happiness
*Can vary by person
Chapter 3
Instrumental Values
Are preferences regarding the means to desired ends.
Ex: honesty, ambition, courage, imagination, self-discipline
*Can vary by person
In classical management theory, who is the person credited with identifying bureaucracy?
Max Weber
What management theory focuses on people first?
Behavorial
You are asked to make a decision for your new employer based on facts. You are being asked to make what type of decision?
Sensation & Thinking
One of the conclusions of the Hawthorne studies was that
Supervisors should avoid close relations with their subordinates
When readily available information is used to assess the situation and it results in a bad decision, it is called
Availability Heuristic
In a department meeting, your supervisor takes credit for the excellent work of an absent colleague. What should you do?
Inform the absent colleague of what took place and allow him to take action.
The (blank) decision model views managers as making optimizing decisions while the (blank) decision model views managers as making satisficing decisions.
Classical/Behavorial
If a local bank is a complex system, then customer service department would be a
Subsystem or Closed System
The goal of the scientific management approach (Frederick Taylor) was to
Secure maximum prosperity for employer and employee
(blank) are broad beliefs about what is considered appropriate behavior.
Values
(blank) highlight the risks from public disclosure of a person’s actions.
Spotlight questions
The social responsibility audit
Measures and reports on organizational performance in regards to social responsibility
Who is McDonald’s current CEO?
Don Thompson
3 P’s of Organization Performance
Profit, People, Planet
Robert Katz
Skills of Managers
Charles Hardy
Shamrock Organization
Frederick Taylor
(Classical) Scientific Management
Max Weber
(Classical) Bureaucratic Management
Henri Fayol
(Classical) Administrative Principles
Lawrence Kohlberg
Levels of moral development
Elton Mayo
(Behavioral) Hawthorne Studies
Abraham Maslow
(Behavioral) Human Needs Theory
Douglas McGregor
(Behavioral) Theory X & Theory Y