Managment

Managment Fuctions
Planning, Organizing, Staffing, Controlling
Planning
Keeping things going according to plan. Defining goals and a purpose for the organization planning alternative courses of action and prepping for the future.
Organizing
Involves dividing up work, establishing structure of authority and responsibilitiy grouping the resources and coming up with ways to coordinate parts. Dividing up woork, grouping resources, establishing a structure of authority, and coming with ways to coordinate the parts
Staffing
Selecting, placing, utilizing, and taking care of employees. Known as personnel managment
Directing
Guding and influencing the employees to seek organizational; objectives, also known as leading involves getting the employees to work towards the organizations goal.
Controlling
Assuring the organizational and managerial objectives are accomplished, concidered opposite of planning. Managers measure and observe how well the plans are working.
Managers Skills
Technical, Interpersonal, Conceptual
Front Line Managers
Most technical knowledge, they supervise non-managment employees. Known as supervisionary managers.
3 managers roles
Interpersonal, Informational, decisional roles.
Info Roles
Include being a monitor, disseminator, and a spokesperson
Interpersonal Roles
Figurehead, leader, and liaison
Decisional Roles
Disturbance handler, resource allocator, negotiator
Frank Gibreth
Pioneers of Scientific Manaagment
Believed in determining the best, most efficient, fastest, and easiest way to do any job
First Line Level Managers
Head Nurse, Foreman, and section head. Also known as supervisory managment
Multi-National
Operates in more than one country
Global Company
Specializes in one product which is sold all over the world
Corporation
A company with the ability to act as a single person. It is a legal entity, and has its own rights, privileges, and liabilities which are distinct from those of its members.
Legitimacy
An organizations only exists as long as society considers the organization acceptable and useful. To maintain legitimacy a company often shows ethics.
Stakeholder
Anyone who can affect an organization or can be affected by it
Contingency Approach
Involves coming up with a mangament approach or combo of approaches to fit the situation. Based on the idea there is no single approach to mangement which is suitable for every situation.
Scientific Mangment
Oldest type, associated with Taylor, Gantt, Gibrath. Finding the most efficient way to do a job through scientific analysis. Focuses primarily on the physical work instead of higher level managment
First Principe of Scientific Mangment
Scientific Study of the work involved. A scientific study involves studying and observing the work to determine the most efficient way to accomplish it.
Managment By Objectives
Participative style of management. Managers and employees establish objectives together.
Second Priciple of Scientific mangement
Selecting the workers in a scientific manner for the kind of work to be done
Third Principle of Scientific Mangement
Train workers in the most efficient methods for doing their work, and give them incentives for producing effciently.
Fourth Priciple of Scientific Managment
Dividing the work between managers and workers. Managers determine the best way to do work and would then tell the workers exactly what to do.
Fayol’s Administrative Management (Classical Managment and Administrative Management)
Focuses at the top.
Expectancy Theory
A person’s motivation is based on three factors: how likely he believes his effort will lead to desired performance, if he believes his effort will lead to a greater reward, and how much value he places in this reward. A worker has to believe he can achieve goals, expect that achieving the goals will give him a reward, and value that reward.
Expectancy Instrumentality
Valence-Motiviation Forces=Expectancy x Intrumentality x Valance
Fayol
First to identify managment as a separate activity in a business. First defined fuctions of managment. Father of modern management, 14 principles.
5 Types of Organization
Mintzberg-Machine Bureaucracy, divisionalized form, professional bureaucracy, the simple structure and adhocracy. Made because diffrent types are needed for different enviorments
Adhocracy
Form of organization most appropriate for the performance of complex and uncertain tasks in a rapidly changing envoirment. Adhocracies are frequently referred to as virtual teams. Industries that like these are R and D, movie industry, advertising
To figure out right structure one must
Identify the envoirment
Mintzberg organizational envoirments
1. either simple or complex
2. either stable or dynamic
Human Relations Approach
Workers treated as human beings.
Behavioral Approach
Revolves around human relations, emphasizes treatment of employees more than outfut or performance. Started with Hawthorne Studies
Human Relations Movment
Began with Elton Mayo and Fritz Roethlisberger’s work in the Hawthorne Studies
Hawthorne Studies
Most extensive investigations in managment ever performed.
Experiment which six women were set to work assembling phone relay equipments, and lasted 2.5 years. Performence dependent on Psychological and social factors
Systems Approach
Looks at an organizations in terms of its parts and how to interact with achother and the envoirment. An organization is divided into sub-systems and either classifies as an open systen which interacts with the envoirment or a closed system. Theorist s who believe in this typically think organizations are open systems.
Barnard
Famous managment theorist who saw organizations in terms of the systems approach as an open system.
Follett
Classical Managment theorist who focoused on how managers resolve conflicts. Pioneer of scientiv Managment. Advocated a collaborative approach to problem solving that emphasized compromise in the workplace.
Gillbreths
In movie Cheaper by the Dozen, only one best way to do job.
Fredrick Taylor
Father of Scientfic Managment
Primacy of Planning
States that planning bmust occur before other managment fuctions can take place
Planning Process
Consists of developing the organizations mission, goals, solutions/strategies/alternitive course of action.
Hierachy of Plans
The idea that planning is top-down
Mission
One of the first things done in the company sets an overall purpose for the organization.
Peter Drucker
Defined 8 key results areas which every business organization should define goals for
8 Key Results Areas
Market Share, productivity, profitability, innovation, resources, worker performeance, manager performance, and social responsibility.
Productivity
Output divided by imput
Profitability
Benifit resulting from an activity
Order of things
Mission statment
2. Setting of goals
3. Hiearchy of Plans
Strategic planning
Long Range planning comes after setting the goals. Highest levels of mangment does this
Theory X and Theory Y
Explains two contrasting ways managers can view how employees are motivated and how this affects their managing style.
Theory X views man as lazy. Theory Y sees motiviation as internal.
Operational Planning
Where the detailed plans are made on how to execute the strategic planning. Also known as action planning, involves building on strategic plans. The strategic plans are broad and fairly general–the operational planning adds the specifics on how the strategy is to be carried out. Responsility is assigned to accomplish certain objectives.
Managment by Objectives
is where an employees performance is determined by how well he achieves a number is set objectives. By: Peter Druker mangment does no necessarily tell the employee exatly what to do just what to accomplish.
Two plans
Standing and single use
Standing plans
Incluse rules, procedures, policies-plans that are always in effect.
Budget
Plan for use of reasources and expected results, usually based on a specific time peroid. Type of single use plans
Mechanistic Form or Organizatoin
Centralized, Hierarchiacal guided by rules and written procedures
Organic organization
No hierarchy less rigid informal
Programs
A single use plan
Broad and long term may be made up of short term projects.
Rolling plan
Variant of single use plan-involves log term plan which is updated at regular intervals
Contingency Plan
Part of the operational planning process, involves anticipating what could wrong and preparing for it
Forcasting
Companies depend on econimic, technological, and sales forcasting for their plans
Delphi Method
For technological forcasting devoloped by Rand Corp.
Three Phases in decision making
Herbert Spencer
3 phases
1. Intelligence
2. Design
3. Choice
Decision making part of the planning process consists of two part
Problem Solving and Decision Making
Most popular way to generate solutions
Brainstorming
Cost Benefit Analysis
Comparison of the cost of an activity to its benefits. The total costs are calculated and then compared to how much revenue or other benefit will be gained.
During decision making conditions are assigned to the possible results of a decision, These conditions are
Certainty, Risk, Uncertainty. These are based on the probability of the result. Risk is 0-1 is known as an estimate.
Decion Making tools
Playoff Matrix, allows you to compare the possible benifits
Strategic Plan
Long term plans, no set time bust usually happen more than one year into the future. The length of the peroid depends on how accurate the forcasting of the future business envoirment proves to be.
Administrative Man Theory
The economic man is all knowing completely rational decision maker who finds the best possible choice. By Herbert Simon
Economic Man
He chooses what meets the critrea. Uses strategy of optimizing
Rationality Theory
Herbert Simon, individuals pick the first choice that meet a predetermined acceptance criteara.
Organization Chart
Shows the authority relationships between the various psotions and departments in an organization.
Line Authority
Right to act, ti make decisions, and to command. Wields authority over direct subordinates.
Staff Authority
Right to advise, or reccoment line personnel
Human Resource Planning
An Organization must decide on whether to adopt a policy of promoting from within or to simply promote the best canidates it can find. The advantage of promoting from within is that it increases morale, but it restricts the pool of canidates.
Reporting Relationship
Relationship between a superior and his subordinate
Line Positions
Directly Related to purpose of an organization. For example in marketing sales is a line positions
Staff Positions
Supposrt line positions ie Human reasources
Fuctional Authority
Where staff managers have limited authority over subordinates of line mangers. Staff authority can only advise line positions.
14 Principles
Fayol include: Unity of command, unity of direction, esprit de corps, authority being equal to responsibility, and others
Unity of Command
Each suborddinate should report to and be accountable to only one superior
Unity of Direction
There should be one head and one plan for a group working towards an organizational objective. Everyone is working towards the same goal.
Scalar Principle
Every Organization needs to have a clear line of authority from the top of the organization to the bottom. Also known as chain of command priciple.
Exception
Management should deal only with the exceptions, when the cases where their employees dont meet standards. By: Henri Fayol
Specialization
another term for division of labor, where employees carry out ativities thay are more qualified for and adept at performing. Also includes dividing work into simple tasks.
Classical Principles of managment results in
Bureacratic or mechanistic organizations
PERT Network
A planning tool which involves breaking down steps to achieving a goal into a series of events. The events are represented as circles, or nodes, and connected by arrows which represent the time required to reach that event. Takes into account employee motiviation.
Acceptance Theory
Effectiveness depends on whether or not the subordinates accept the authority over them. Oposes classical idea that authority is ordained by position.
Four Types of Oganization based on Managment style
Rensis Likert stating that Sytem 4 organization should be the most efficient in achieving its goals.
System 4
Leader of a group is often a subordinate ina higher decision making group. He is known as linking.
Departmentation
Grouping together positions with their fuctions and responsibilities under other parts of the organization structure
Internal Bases
Departmentalize a company by fuction or product
External Bases
Involve departments divided based on geography and customers
Functional Departmentation
Most common form of deparmentation. Positions are grouped based on a common organizational purpose or fuction. For example marketing, finance is fuctionally organized.
Performence Appraisals
Should evaluate employees in an objective sonsistent and fair way.
Process departmentation
Grouping positions according to the different steps in a process. Example, a manufacturing plant may be divided into drilling, grinding, welding, assembling, and finishing departments
Product departmentation
Where positions which support or are directly related to a product or product category are grouped together. Example GM has Buik and Pontiac other brands of cars that it produces
Matrix Departmentation
Hybrid type of departmentatoin and is used when a company needs to complete a project which demands close, integrated work between people and varius deparments. For an example, a project manager of boeing could supervise people from engineering reasearch and finance
Span of control
number of subordinates reporting to a given supervisor
Tall Organizational Structure
One has many levels of sueprvision and narrow spans of control
Flat structure
Few levels of managment and broad spans of control
Formalization
Extent to which an organization depends on written rules and procedures
Decentralization
An organizational structure in whichtt the authority and responsibility to make decisions is not all kept in a central headquarters, but in lower levels out in the field.
Woodward
Defined three types of technology
1. Unit and small batch
2. mass production/assembly line-good for mechanic
3. continuous process technology –like an oil refinaryt
Continuous technology
The company produces the same product for long peroids of time automatically taking in raw materials and turning them into finished products
Job Enrichment
Involves adding vertifcally to a job by giving the psoition planning and controlling responsibilities
Job Enlargment
Adding to the position horizontally by requiring more duties of a similar skill level, Also caused horizontal loading
Employee Inventory
Record of current employees and detailed information about them such as qualifications and performence. Also know as, skills inventory, personal data sheet, or manpower audit.
Uniform Guidelines
1978 provides a set of standards for companies to follow in equal employee selection
Occupational Safety Act
Requires employers to provide safe and healthy working conidition
Bona Fide Occupational Qualifications
Cant ask about race color age sex or national origin in hiring process
Human Resources Devolopment
Things such as training and education to enhance an employees value to the organization
Orientation
Intro to the job for new employees and is usually teated as distinct from training
Types of Training
On the job-being coaching while he proforms the job
Apprenticeship
Job Rotation
Vestibule Training
Vestibule Training
In-House training in a separate ares from the normal pressures of the position
Job Rotation
Moving employees through highly diversified and differentiated jobs to give them a variety of experience.
Compensation Managment
involves trying to achieve the goals of the staffing fuctions using pay and benefits. Also called wage and salary admin. Involves determining the wages to be paid to employees through job evals
Compensation
Total package. wages insurence benefits
Performance appraisal
An eval of an employees job done by super visor. Ussually recieves some kind of feedback.
Labor Relations
Involves an organizations relationship with organized labor. Also called industrail relations.
AFL-CIO
Confederation of many national union
Craft Union
Made up of workers with the same skill
General Unions
Except members from any line of work
Industrial Unions
Consists of workers from a particulare industry, organization, or factory
Wagner Act
Most important labor law enacted, designed to eliminate employers interference with the organization of workers into unions
Taft-Hardly Act
Declared closed ship illegal and forbidding jurisciational strikes and secondary boycotts
Landrum-Griffen Act
Regulations of internal union affiars, inclusing the regulation and control of union funds, and it provided a bull of rights for union members. Passed in 1969 to eliminate some of the illegal business activity going on within unions.
Certification
Where National Labor Relation Board recognizes a union requires election by 50 percent of the voting employees votes.
Grievance
When claim is made and contract has been violates;. The contract describes a grievance proccedure which outlines how it will be delt with.
Arbitration
Third Party decides how the dispute should be resolved often final step in grievance procedure.
Graphic Scales
Most Popular form of performance appraisal involv giving the employee a score in varius traits or behavioral areas.
Human Asset Accounting
an account on how well the social aspect of the organization is working.
The Fuctions of Executive
Book which makkes up the Acceptance Theory of Authority. In a nuthell until an empployee accepts a mangers authority over him the manager has no authority. Barnard
Reward Power
Derived from the number of positive rewards which a potential leader is seen as controling. Reward power is based on the ability to hand out rewards or control acess to desired services.
Coersive Power
Derived from people’s preceived expectation that they will be punished in some way if they do not comply with the potential leader’s comands. Example, slaves working for fear of being whipped.
Expert Power
Subordinates believe the leader has superior knowledge or technical abilities relevent to the task at hand.
Referent Power
Based on leaders charm, courage or other traits that make him desirable. Like Webers Charismatic authority.
Trait Approach to Leadership
Permanent traits that a person is born with which makes him an effective leader.
Behavioral Approach to Leadership
How the leader behaves makes him effective. 2 famous studies on this by UMICH AND Ohio State
Ohio State and Umich Studies
Came up with 2 similar dimensions to effective leadership-concideration and production centered supervision (emphasizes getting the job done)
Contigency Approach
Effective leadership depands on many factors in the situation
Tannenbaum and Schmidt’s contigency approach
Centered around boss centered and subordinate centered leadership and leaders style fell somewhere between.
QWL Programs
Employees study factors which affect the coniditions of the work environment, diagnose problems in these areas and recommend solutions to managment. Programs involve studying factors such as working conditions, jobs performed, supervision, and company policy to diagnose problems with the consitions of the work envoirment.
Fiedler’s Contingency Theory
The idea that basing a leader’s style on his montivation in terms of an LPC scale. High LPC’s are more relations-oriented, Low LPC are more task oriented. LPC stands for least perferred coworker. Low LPCs best fitted for extreme situations.A high LPC is better in anything but extreme situations. Leadership stylle cannot be changed
Path-Goal Contigency Theory
Robert House
States that the leader’s role is to help the subordinates understand the organizational goals and payoffs. Supportive leader for ruotine tasks. Directive for non routine complex tasks.
TQM
Used to try to improve bureaucracies that involves breaking through the hierchy of an organization and encouraging teamwork involving both workers and mangagers. Involves listening to customers in an attempt to improve the quality of the work product. Brainchild of William Edwards Deming, Joeseph Juran, and Kaoru Ishikawa in the 1940s. Deming most proment. First applied in Japan. Used in Production processes, then expants to encompass purchasing, delivery, customer service, and other fuctions.
TQM Critizism
Socialist view of corporation rather than capitalist,puts responsibiliy to the community, costumers, and employees.
Need Hierarchy Theory
Maslow
Human needs ranked in five groups from physiological needs (water) to self-actualization needs at the top. Supposed to explain causes of motivations needs higher on the pyramid would not serve as motivators unless lower levels are satisfied.
ERG Theory
Clayton Alderfer
Similer to Maslow hierchy of needs
Only three needs-existance (basic needs, water food) , relatedness (relating to others well) , and growth (Self-devopment)
Human Side Of Enterprise
Douglas McGregor’s Book described Throy Y as Maslows need hierchy applied to managment
Two Theory of Motivation
Also known as Herzberg’s motivator-hygiene theory
Job performance is a balance of motivators (recognition, ect. result in good perfomance) and hygiene factors (cleaniness of space, results in people showing up)
Reienforcement Theory
BF Skinner’s
Behavior followed by reinforcement tends to be repeated
When behavior is not reienforced or has no result it is less likely to reoccur. This is known as extinction.
When applied to managment it is called behavior modification
McClelland
Devolped a needs theory for motivation, which state three motivators which can result in exceptional performance, achievment power (exploitative, self-oriented, and socialized) affilation.
Equity Theory
People will compare the inputs they bring to a job with the outcomes they receive as compared to other employees in comprable jobs.
Expectancy tHEORY
whats in it for me
Theory X
McGregor
View of workers disliking work
Participative mangament
Where managment seeks employee involvement in decision making and in selecting the direction of work.
3 Steps to controling
Establish performance standards
Mesure Performance
Produce feedback for corrective action or reinforcement
Feedback
Type of control which measures performance effectivness after the results have been attained.
Exception Principle
Similer to managment by exception and states that routine problems should be handled at lower levels of mangment.
Concurrent Controls
Actions taken while work is going on to make sure everything is going according to plan. Happens while the work towards achieving an organizational goal is being done. Direct supervision is an example.
Pre-controls
Actions taken before work to achieve a goal starts ie. Training
Internal Controls
Boil down to self control, tries to control its performance to meet standards.
Planning tools
Work as control tools as well
Inventory Control
Making sure inventory use and costs are according to plan
Safety Stock
Inventory kept on hand so that the organizations activiites can go on despite unexpected conttingencies.
Economic Order Quantity
Amount which should be purchased in order to keep the total inventory costs at a minimum.
Means finding lowest toal inventory cost by adding odering cost to carrying cost.
Acceptance Sampling
Where a sample of products produced by a business are inspected and a certain percentage of the sample must meet the standards for the batch to be aproved.
Kepner Method of Problem analysis
1. Recognize the problem
Operating Budget
Non-capital spending plans like labor
Zero-based budgeting
Budget calculated from scratch. Requires Every aspect of the budget be justified and accounted for by taking into account goals activities and resources needed and how much it should cost.
Henry Gantt
Devoloped the Gantt chart which breaks a project down into ints activities and shows the estimated time requirements for the individual activities.
CPM
Almost identical to Pert chart. However, CPM assumes previous experience with the work involved and often includes cost estimates as well as timing.
ARROWS IN CPM OR PERT
Represent activities
NODES IN CPM OR PERT
Events
PERT OR CPM Network
Critical path is the sequence of activities which is the longest in terms of total time
Operations Research
Several mangment science tools used for making operating decisions and includes stimulation, queuing theory, linear programming, and probability anylisis. Devoloped in WWII
Linear Programing
Used to solve optimization problems. Allows a systematic comparison of choices to find the best one
Queuing theory
Technique for balanceing the cost of the service provided with the avialibility of service. Also known as waiting line theory. Example determining cashiers v. coustumer lines
Statistical Process Control
Where a sample of a production process is checked and if the sample values fall within upper and lower control limits the process is in control. Verifying that the sample falls between UCL and LCL (upper and lower control limit). Shewhard. Used by gov contracters in WW II
Quality Control
Making sure that the products are defect free, production processes reliable
Quality Cicles
Small voluntary groups of workers who work with a supervisor to identify problems and propose solutions to them. Devolo[ed by japanese to increase worker involvment . Edward Demming.
MIS
System for gathering and processing information so that timely and relevant intelligence can be provided to managers. Tries to get mangers info so they can make efficient decisions. Provides info for routine decisions.
Information Processing
Raw Data is converted into useful information so that managers can make effective decisions. It is a part of MIS.
Valence
The value the individual personally places on a reward.
DSS (Decion Suport Systems)
Provide info for making unstructured decisions. Aim to provide information in a timely manner for unstructured decisions also known as non-routine or unprogrammed decisions. These are decisions where the manager does not know extactly what to do or what info he will make.
Upward Communication
When employees communicate with superiors
Business Environment
Includes: Competitors, Market Conditions, the supply and demand. Strategic planning or long term planning is usually most affected by facctors in the external business envoirment.
Job Specification
Whats needed to do job. IE a BFA in Musical Theatre
Social Responsibility
The organization tries to be responsible to society even if that means reducing profits
Organization Chart
Allows one to see the formal relationships among the positions in a company.
Functional Organization
When a staff fuction or activity becomes so important that its performance is critical to the organizations sucess, it becomes a fuctional organization.
Best interview questions
Open ended
Universality of Managment
Fuctions of managment are the same in any organization
SWOT managment
Stregth, Weakness, Opportunities, Threats
Simplest Organizational Stategy
Line Organization, how many small companies operate.
Most common type of deparmentalization
Fuctional Departmentalization-splitting the positions into departments based on fuctions is the most common.
Operational Decision Making
Done by lower levels of managment and deals with day to day processes
Varible Budget
Expected costs of production at various levels of activity
Myer Briggs Type Indicator
Helps identify and individuals problem solving type. Consists of 126 items which determine a person’s problem solving type results in two facts the way a person percieves info and the way he makes decisions. People gain information through sensing or intuiting. Sensing involves being rational and realistic. Intuition involves being idea and theory oriented and creative.