MGMT 307 study guide

Management
– A process or series of continuing and related activities
– it involve reaching organizational goals
– it reaches these goals by working with and through people and other organizational resources
Management process
Involves the functions of planning, organizing, leading, and controlling in order to guide organizations toward goal accomplishment
planning
Choosing tasks that must be performed to attain organization goals, outlining how the tasks must be performed, and indicating when they should be performed.
organizing
Mechanism to put planning into action. Involves determining tasks and grouping the work.
controlling
Gathering information, making comparisons, and then trying to find new ways of improving production through organizational modification
influencing
Motivating, leading, directing, or actuating in order to increase productivity.
What type of work situations lend themselves to better productivity?
Human-oriented work situations tend to generate higher levels of production over the long term than do task-oriented work situations.
organizational resources
human, monetary, raw materials, and capital
Frederick W. Taylor
-increase worker efficiency by scientifically designing jobs
-every job has a best way of being performed
-Father of scientific management
Frederick W. Taylor’s test location:
A. Bethlehem Steel Co.
B. Bricklaying, construction business
C. Hawthorne Works
Bethlehem Steel Co.
The Gilbreth’s test location:
A. Bethlehem Steel Co.
B. Bricklaying, construction business
C. Hawthorne Works
Bricklaying, construction business
Frank and Lillian Gilbreth
-motion study
-first to consider the employee as a productivity factor
-establish job performance standards
motion study
Reducing each job to the most basic movements in order to increase output and efficiency
How is motion analysis (motion study) used today?
Used to establish job performance standards
Henri Fayol
– pioneer of administrative theory
– wrote on the elements and general principles of management
Fayol’s 14 General Principles
DAD, U, U Subordinate, Remunerate, and Centralize. SO I SEE.
DAD
– Division of Work
– Authority
– Discipline
U, U
– Unity of command
– Unity of direction
SO
– Scalar Chain
– Order
I SEE
– Initiative
– Stability of tenure of personnel
– Equity
– Esprit de corps
Classical Approach to management
Managers continually strive to increase organizational efficiency to increase production.
2 areas of classical approach
– lower level management analysis
– comprehensive management analysis
lower level management analysis
– concentrates on the “one best way” to perform a task
– scientific method of management
comprehensive analysis of management
Mangers concerned with the entire range of managerial performance
What are the limitations of the classical approach?
– does not adequately emphasize human variables.
– interpersonal areas shortchanged
Behavioral approach to management
Emphasizes increasing production through and understanding of people.
Hawthorne Studies
– investigated the behavior and attitudes of workers
Hawthorne Studies: Relay Assembly Test Room
Study of productivity under different working conditions to find which would maximize production.
Hawthorne Studies: Bank Wiring Observation
Analyze social relationships in a work group using the group piecework incentive.
What is the importance of the Hawthorne Experiments?
Helped managers to see that understanding what motivates employees is a critical part of being a manager.
Management Science approach to management
Managers can best improve their organization by using the scientific method and mathematical techniques to solve operational problems.
How is the management science approach used today?
Solve logistical and operational problems.
Four characteristics of management science applications
-when analyzing a large number of variables
– uses economic implications as guidelines for decision making
– uses mathematical models to investigate the decision situation
– use of computers
Contingency approach to management
– what managers do in practice depends on a given set of circumstances
-situational approach
– if-then approach
System approach to management
Based on general system theory
General system theory
Integrates the knowledge of various specialized fields so that the system as a whole can be better understood.
system
A number of parts that function interdependently to achieve a purpose
Management system
– organizational input
– organizational process
– organizational output
Learning organization approach
mangers must create an environment conducive to learning and encourage the exchange of information among all organizational managers.
learning environment
An organization that does well in creating, acquiring, and transferring knowledge, and in modifying behavior to reflect new knowledge.
international management
The performance of management activities across national borders
The primary question for firms dealing with globalization:
– How to globalize
– how fast to do so
– how to measure global progress over time
Competition and international markets
Competitors can best be beaten in foreign markets if companies actually produce products in those markets
Continum of international involvement
– domestic organization
– international organization
– multinational organization
– transnational organization
Multinational corporation (MNC)
A company that significant operations in more than one country and is involved in doing business at the international level
International organizations
Organizations based primarily within a single country but have continuing, meaningful international transactions in other countries.
Multinationalization: Stage 1
Export stage
Multinationalization: Stage 2
Establishes sales and organizations abroad
Multinationalization: Stage 3
Foreign firms make and sell its products
Multinationalization: Stage 4
Foreign manufacturing facilities
Multinationalization: Stage 5
Multinationalizes management from top to bottom
Multinationalization: Stage 6
Multinationalizes ownership of corporate stock
multinational organization charts
Can be set up according to major business function, major products the organization sells, or geographic area in which the organization does business.
stages of entrepreneurship process
– opportunity identification
– opportunity evaluation
– opportunity exploitation
opportunity identification: four factors
– entrepreneurial alertness
– information assymetry
– social networks
– identification of means-end relationships
opportunity exploitation: factors
– value to customers
– stakeholder support
– capable management team
opportunity evaluation: factors
– feasibility analysis
– entrepreneurial risk
– downside loss
purpose of planning
– minimize risk by reducing uncertainties
– increase the degree of organizational success
– establish a coordinated effort inside the organization
Planning process: Step 1
State organizational objectives
Planning process: Step 2
List alternative ways of reaching goals
Planning process: Step 3
Develop premises upon which each alternative is based
Planning process: Step 4
Choose best alternative for reaching objectives
Planning process: Step 5
Develop plans to pursue chosen alternative
Planning process: Step 6
Put the plan into action
programmed decision
A routine and repetitive decision, and organization typically develops specific ways to handle such decisions.
non-programmed decision
One-shot decision with less structure
How to decide who has the responsibility for making organizational decisions
The broader the scope of the decision, the higher the level of the manager responsible for making such decisions.
scope of the decision
The proportion of the total management system that the system will affect.
Strategic planning
Long-range planning that focuses on the organization as a whole
strategic management
The process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.
Strategy Management: Step 1
Environmental analysis: general, operating, internal
Strategy Management: Step 2
Establishing organization direction: mission and objecties
Strategy Management: Step 3
Strategy formulation
Strategy Management: Step 4
Strategy implementation
Strategy Management: Step 5
Strategic control
Management-by-objectives program (MBO)
Management process based exclusively on organizational objectives
MBO process
– review organization objectives
-set worker objectives
– monitor progress
– evaluate performance
-give rewards
human resource planning (HRP)
The ongoing process of systematic planning to achieve optimum use of an organization’s most valuable asset – its human resources.
HRP objective
Ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses.
3 key elements of HR planning process
– forecasting labor demand
– analyzing present labor supply
– balancing projected labor demand and supply.
planning mistakes
– not establishing objectives for all important organizational area
– making plans that are too risky
organizing mistakes
– not establishing departments appropriately
– establishing inappropriate spans of management
influencing mistakes
– not taking the time to communicate properly with organizational members
– being a manager but not a leader
controlling mistakes
– not monitoring progress in carrying out plans
– not establishing appropriate performance standards