Principles of Management ch.1-5

Management
The process of working with and through others to achieve organizational objectives in a changing environment
Explain the managerial significance of efficiency and effectiveness
Efficiency- when resources required to achieve an objective are weighed against what was actually accomplished. Effectiveness- promptly achieving a stated objective
Identify and Summarize five major sources of change for today’s managers
1. Globalization
2. Evolution of Product Quality- fix-it-in, inspect-it-in, build-it-in, design-it-in
3. Environmentalism and sustainability
4. An ethical reawakening
5. internet and social media
Distinguish between managerial functions and skills
functions-characterizes the management process as a sequence of rational and logical steps
skills-to communicate goals and coordinate teams
identify the eight basic managerial functions
planning, decision making, organizing, staffing, communicating, motivating, leading, controlling
Demonstrate your knowledge of Wilson’s three managerial skill categories
1. Technical- applying education, experience, and training to effectively organize a task, job, or project
2.teambuilding- listening carefully and communicating clearly to develop and coordinate an effective group
3. drive- setting and maintaining goals and standards to achieve effective outcomes
Explain the practical significance of his research findings
managers must be effective jugglers
Explain how managers learn to manage
50% “school of hard knocks”
30% relationships
20% formal training and education
Describe entrepreneurs
the process by which individuals-either on their own or inside an organization- pursue opportunities without regard to the resources they currently control
Identify two key assumptions supporting the universal process approach
1. a core management process remains the same across all organizations
2. can be reduced to a set of separate functions and related principles
describe Henri Fayol’s contribution
created practical guidelines for the successful management of all types of organizations- Fayol’s 14 universal principles of management
Discuss Fredrick W Taylor’s approach to improving the practice of industrial management
scientific management- standardization, time and task study, systematic selection and training, and pay incentives
Describe the general aim of the human relations movement
effort among theorists and practitioners to make managers more sensitive to employee needs
Explain why the human relations movement arose
special circumstances that happened in the early 20th century 1. the threat of unionization 2. the Hawthorne studies 3. the philosophy of industrial humanism
Explain the significance of applying open-system thinking to management
success depends on the surrounding environment, how subsystems interact with outside social, cultural, political, and economic systems
Explain the practical significance of adopting a contingency perspective
emphasizes situational appropriateness
Describe what “management by best seller” involves
practicing a management style based on a popular management book
summarize the demographics of the new American workforce
-getting larger
-increasingly female
-more racially and ethnically diverse
-becoming older
-age diversity
explain why America’s education and workplace readiness situation is a crisis
-lower reading levels
-less high school diploma’s awarded in the four year cycle
-U.S. ranked 12th for the percentage of adults with an associate or higher degree
-decline in computer science degrees
Define managing diversity
the process of creating an organizational culture that enables all employees to realize their full potential
explain why managing diversity is important today
growly diverse work force
discuss how the changing political-legal environment is affecting the practice of management
-dealing with issues with clearly political overtones
-politicization of management
-increased personal legal accountability
Discuss why business cycles and the global economy are vital economic considerations for modern managers
to understand and be able to predict when to hire people or when to not, to know whether an up or down from the business cycle is next
Define the three-step innovation process
1. concept
2. product technology
3. production technology
define intrapreneur
an employee who take personal “hands-on” repsonibility for pushing an type of innovative idea
describe the 6 step internationalization process
1. Licensing- to produce/market/sell in one country
2. Exporting-made in one country, sold in another
3. Local warehousing and selling- made in one country, shipped to storage in one or more countries
4. local assembly and packaging-shipped for final assembly to facility in one or more foreign countries
5. joint ventures-two or more companies from two or more companies in foreign companies
6. direct foreign investments-a company from one country produces and markets in foreign countries
distinguish between global company and transnational company
global company- centrally managed from a specific country
transnational- network of productive units with decentralized authority and no national identity
identify four cross-cultural competencies of global managers
1. building relationships
2. valuing people of different cultures
3. listening and observation
4. coping with ambiguity
contrast ethnocentric, polycentric, and geocentric attitudes towards foreign operations
ethnocentric- home-country oriented
polycentric- loose confederation of comparatively independent subsidiaries rather than to a highly integrated structure
geocentric- world-oriented
explain from a cross-cultural perspective the difference between high-context and low-context
high context- rely on nonverbal and subtle situational messages
low context- essential messages and meanings through words
identify four of the GLOBE cultural dimensions
1. power distance
2. uncertainty avoidance
3. institutional collectivism
4. in-group collectivism
Summarize the leadership lessons from the GLOBE Project
-charismatic/value-based
-team-oriented
-participative
-humane-oriented
-self-protective
Identify the four leading reasons why U.S. expatriates fail to complete their assignments
1. not performing job effectively
2. received other, more rewarding offers from other companies
3. expatriate or family not adjusting to culture
4. expatriate or family missing contact with friends or family at home
Discuss the nature and importance of cross-cultural training in international management
prepare managers for managing in a foreign country
summarize the situation of North American women on foreign assignments
-above-average success
-harder for women to get foreign assignments
-viewed as North Americans then women
define corporate social responsibility
the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract
specify the four levels in Carroll’s global CSR pyramid
-philanthropic responsibility
-ethical responsibility
-legal responsibility
-economic responsibility
Contrast the classical economic and socioeconomic models of business
-competitive, providing society with what they need
-society’s borader expectations for business
summarize the arguments for and against CSR
Against
-business has enough power
-managers are accountable to the people
-business lacks the ability to pursue social goals
For
-business involved in social issues
-resources to tackle today’s complex societal problems
-better society=better environment for business
-Corporate social action prevents government intervention
identify and describe the four social responsibility strategies
Reactive social responsibility- denying responsibility while maintaining status quo
Defensive social responsibility- uses legal maneuvers and/or a public relations campaign to avoid more responsibility
accommodative social responsibility- organization pressure to take more responsibility
proactive social responsibility- taking initiative with a progressive program that serves as a role model for the industry
Explain the concept of enlightened self-interest
the realization that business ultimately helps itself by helping to solve societal problems
summarize four practical lessons from business ethics research
1. ethical hot spots
2. pressure from above
3. discomfort with ambiguity
4. the rationalization of unethical conduct
distinguish between instrumental and terminal values
-belief that a certain way of acting is appropriate for all situations
-a certain end-state of existence is worth striving for and attaining
identify and describe four general ethical principles
1. self-interests
2. personal virtues
3. religious injunctions
4. government requirements
Distinguish among state, effect, and response uncertainty
state-the environment is considered unpredictable
effect- manager’s attempt to predict the effects of environmental changes on his or her own organization
response- inability to predict the consequences of a particular decision or organizational response
Identify and define the three types of planning
strategic- the process of determining how to pursue the organization’s longterm goals with resources expected to be available
intermediate- the process of determining the contributions that subunits can make with allocated resources
operational- the process of determining how specific tasks can best be accomplished on time with available resources
discuss the role of objectives in planning
-specific targets
-measuring how well an organizational subunit or individual preformed
-commitment
-represent a challenge
describe the four-step management by objectives process
1. setting objectives
2. developing action plans
3. periodic review
4. performance appraisal
explain how management by objectives can foster individual commitment and motivation
-encourages self-management and personal commitment through employee participation in setting objectives
discuss project planning within the context of the project life cycle
Four stage life cycle
-conceptualization
-planning
-execution
-termination
list six roles played by project managers
1. implementer
2. entrepreneur
3. politician
4. friend
5. marketer
6. coach
Discuss the value of PERT networks
graphical sequencing and scheduling tool for large, complex, and non routine projects
Explain how break even points can be calculated
total fixed costs/price-variable costs
define strategic management
the ongoing process of ensuring a competitively superior fit between an organization and its changing environment
explain the concept of synergy
occurs when two or more variables interact to produce an effect greater than the sum of the effects of all of the variables acting independently
identify four kinds of synergy
-market
-cost
-technological
-management
describe Porter’s model of generic competitive strategies
1. cost leadership
2. differentiation
3. cost focus
4. focused differentiation
identify and explain the major contribution the business ecosystems model makes to strategic thinking
an economic community of organizations and all their stakeholders
-organizations need to be as good at cooperating as they are at competing if they are to succeed
identify seven basic internet business models
1. commission based
2. advertising-based
3. markup-based
4. production-based
5. referral-based
6. subscription-based
7. fee-for-service-based
identify and describe the four steps in the strategic management process
1. formulation of grand strategy- how to accomplish goal
2. formulation of strategic plans- concrete and measurable strategic plans, policies, and budget allocations
3. implementation of strategic plans- filtering down of tasks
4. strategic control- formal control system
explain the nature and purpose of a SWOT analysis
S- strengths
W- weakness
O-opportunities
T-Threats
organizations SW cross-referenced with OT to find their niche in the marketplace
describe the three types of forecasts
1. event outcome- predict the outcome of highly probable future events
2. event timing- predict when given events occur
3. time series- estimate future values in a sequence of periodically recorded stats
specify five sources of decision complexity for modern managers
1. multiple criteria
2. intangibles
3. risk and uncertainty
4. long-term implications
5. interdisciplinary input
explain what a condition of risk is and how managers cope
-exist when a decision must be made on the basis of incomplete but reliable factual info
-calculate the probability that a given event will occur and then select a decision alternative with favorable odds
define and discuss the three decision traps: framing, escalation of commitment, and over-confidence
framing- the tendency to evaluate positively presented info favorably and negatively presented info unfavorably
escalation of commitment- the tendency of individuals or organizations to get locked into losing courses of action because quitting is personally and socially difficult
over-confidence-
discuss why programmed and nonprogrammed decisions require different decision making procedures
programmed- are repetitive and routine
nonprogrammed- made in complex, important, and nonroutine situations
distinguish between the two types of knowledge in knowledge management
tacit-personal, intuitive, and undocumented info about how to skillfully perform tasks, solve problems, and make decisions
explicit- readily sharable info b/c it is in verbal, textual, visual, or numerical form
explain the need for a contingency approach to group-aided decision making
1. groups tend to do quantitatively and qualitatively better than average individuals
2. exceptional individuals tend to outperform the group
identify and describe five mental locks that can inhibit creatively
1. looking for the right answer
2. always trying t be logical
3. strictly following the rules
4. insisting on being practical
5. avoiding ambiguity
list and explain the four basic steps in the creative problem-solving process
1. identify the problem
2. generating alternative solutions
3. selecting a solution
4. implementing and evaluating the solution
identify and describe four characteristics common to all organizations
1. coordination of effort
2. common goal or purpose
3. division of labor
4. hierarchy of authority
distinguish between line and staff positions
line positions- those in the formal chain of commands
staff positions- outside the formal chain of command
describe a business organization in terms of the open-system model
organizational interacting subsystems
-technical
-boundary-spanning
-managerial
explain the term learning organization
one that can create, acquire, and transfer knowledge, and can then adapt its behavior
describe the time dimension of organizational effectiveness
meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving into the distant future
explain the concept of contingency organization design
the process of determining the degree of the environmental uncertainty and adapting the organization and its subunits to the situation
distinguish between mechanistic and organic organizations
mechanistic- rigid in design and have strong bureaucratic qualities
organic- quite flexible in structure and adaptive to change
identify and describe the five basic departmentalization formats
1, functional
2. product-service
3. geographic location
4. customer classification
5. work flow process
describe how a highly centralized organization differs from a highly decentralized one
centralized- decision making authority is top management
decentralized- decision making authority granted to lower level employees by management
define delegation
the process of assigning various degrees of decision-making authority to lower-level employees
list five common barriers of delegation
1. low self-confidence
2. lack of trust and confidence in employees
3. fear of being called lazy
4. vague job definition
5. fear of competition from those below
explain how the traditional pyramid organization is being reshaped
-hourglass
-cluster
-virtual
describe three characteristics of organizational cultures
1. collective- agreement and action for an organization’s culture to assume a life of its own
2. emotionally charged- people develop emotional attachment to their organizations culture
3. historically based- shared experiences over periods of time
explain what human resource management involves
involves the acquisition, evaluation, retention, and development of human resources necessary for organizational success
define human capital
all present and future workforce participants and emphasizes the need to develop their fullest potential for the benefit of everyone
identify four of Pfeffer’s people-centered
1. protection of job security
2. rigorous hiring process
3. comprehensive training
4. compensation linked to performance
identify and briefly explain the seven steps in the PROCEED model of employee selection
1. prepare
2. review
3. organize
4. conduct
5. evaluate
6. exchange
7. decide
explain how managers can be more effective interviewers
-structural interviews
-behavioral interviews
discuss how performance appraisals can be made legally defensible
1. job analysis was used to develop the performance appraisal system
2. appraisal was behavior-oriented, not trait-oriented
3. performance evaluators followed specific written instructions when conducting appraisals
4. evaluators reviewed the results of the appraisals with the ratees
contrast the ingredients of good training programs for both skill and factual learning
ingredients vary whether skill or factual learning is involved
-include: goal setting, modeling, practice, and feedback
explain training program evaluation
1. reaction
2. learning
3. behavior
4. results
identify each major link in the communication process
sender -> encode -> medium -> decode ->receiver ->feedback
explain the concept of media richness and the Lengel-Daft contingency model of media selection
-describes the capacity of a given medium to convey info and promote learning
-media vary in richness high to low
identify the five communication strategies
1. spray & pray
2. tell & sell
3. underscore & explore
4. identify & reply
5. withhold & uphold
discuss why it is important for managers to know about grapevine and nonverbal communication
to put a stop to any rumors or false information
explain four ways managers can encourage upward communication
1. formal grievance procedure
2. employee attitude and opinion surveys
3. suggestion systems
4. open-door policy
explain how to deal with info overload
clear objectives and priorities
summarize the pros and cons of telecommuting
restricts normal social contact and face-to-face communication
specify three practical tips for improving each of the following communication skills: listening, writing, and running a meeting
listening: silence is okay, ask stimulating open-ended questions, paraphrase
writing: keep words simple, write concisely, be specific
meeting: meet for specific purpose, create an agenda, communicate expectations for the meeting
explain the motivational lessons taught by Maslow’s theory, Herzberg’s theory, and expectancy theory
Maslow’s: physiological needs->safety->love->esteem->self-actualization, most individuals are not consciously aware of these needs and we proceed up the pyramid one level at a time
Herzberg’s: two factor theory- either dissatisfiers or satisfiers
expectancy: how much effort to put forth
describe how goal setting motivates performance
-directing attention
-encouraging effort
-encouraging persistence
-fostering goal-attainment strategies and action plans
discuss how managers can improve the motivation of personnel who perform routine tasks
realistic job previews, job rotation, limited expsoure
explain how job enrichment can be used to enhance the motivating potential of jobs
increases the challenge of one’s work by reversing the trend toward greater specialization
distinguish extrinsic rewards from intrinsic rewards
extrinsic- payoffs granted to the individual by other people
intrinsic- self-granted and internally experienced payoffs
list four rules of administering extrinsic rewards effectively
1. rewards must satisfy individual needs
2. employees must believe effort will lead to reward
3. rewards must be equitable
4. rewards must be linked to performance
explain how employee engagement and retention programs, open-book management, and self-managed teams promote employee participation
more employee run and employees take more responsibility
define group
two or more freely interacting individuals who share a common identity and purpose
explain the significance of cohesiveness, roles, norms, and ostracism in regard to the behavior of group members
survival in the group, clarify role expectations, avoid embarrassing situations
ostracism- rejection from the group
identify and describe the six stages of group development
1. orientation
2. conflict and challenge
3. cohesion
4. delusion
5. disillusion
6.acceptance
define organizational politics
the pursuit of self-interest at work in the face of real or imagined opposition
explain how groupthink can lead to blind conformity
thinking as a cohesive group and not seeing any problems or mistakes or opposing sides
define and discuss the management of virtual teams
-a physically dispersed task group linked electronically
-clear objectives
-managers finding a new way to manage from the school of hard knocks
discuss the criteria and determinants of team effectiveness
-personal satisfaction
-mutual trust
-job security
-clear objectives
-team involvement
-stable goals
explain why trust is a key ingredient of teamwork
to work better as a team and to be able to share the work
discuss what management can do to build trust
communication, support, respect, fairness, predictability, competence
identify and describe eight generic influence tactics used in modern organizations
1. consultation
2. rational persuasion
3. inspirational appeals
4. ingratiating tactics
5. coalition
6. pressure tactics
7. upward appeals
8. exchange tactics
identify the five bases of power
1. reward
2. coercive
3. legitimate
4. referent
5. expert
explain what it takes to make empowerment work
-adequate training
-relevant information
-fairly rewarding for results
-involvement in key decisions
explain the concept of emotional intelligence in terms of Goleman’s four leadership traits
-street smarts
1. self-awareness
2. self-management
3. social awareness
4. relationship management
summarize what the Ohio State model has taught managers about leadership
-low structure, high consideration
-low structure, low consideration
-high structure, high consideration
-high structure, low consideration
describe the path-goal theory of leadership
leaders can enhance motivation by 1. clarifying the individual’s perception of work goals 2. linking meaningful rewards to goal attainment 3. explaining how goals and desired rewards can be achieved
describe a transformational leader
visionaries who challenge people to achieve exceptionally high levels of morality, motivation, and performance
explain Greenleaf’s philosophy of the servant leader
ethical person who puts others in the forefront
identify the two key functions that mentors perform
1. career enhancement function
2. psychological and social support function
explain the management of antecedents and consequences in behavior modification
-simple way of encouraging good performances
-removing barriers and providing helpful aids
identify and describe four types of organizational change, according to the Nadler-Tushman model
1. tuning
2. adaptation
3. re-orientation
4. re-creation
explain how people tend to respond differently to changes they like and those they dislike
like: 1. unrealistic optimism 2. reality shock 3. constructive direction
dislike: 1. getting off on the wrong track 2. laughing it off 3. growing self doubt 4. buying in 5. constructive direction
list six reasons why employees resist change
1. surprise 2. inertia 3. misunderstanding/ignorance/lack of skills 4. emotional side effects 5. lack of trust 6. fear of failure
discuss what management can do about resistance to change
-education and communication
-participation and involvement
-facilitation and support
-negotiation and agreement
-manipulation and co-optation
-explicit and implicit coercion
describe how the unfreezing-change-refreezing metaphor applies to organization development
1. helps neutralize initial resistance
2. ease into transition
3. follow up to any problems
describe tempered radicals
those who want to succeed at work while retaining their personal values and identities, even if they clash with corporate culture
identify the 5Ps in the checklist for grassroots change agents
1. preparation
2. purpose
3. participation
4. progress
5. persistence
contrast competitive and cooperative conflict styles
competitive: opposing goals, mistrust and disbelief, avoid and win-lose, go separate ways
cooperative: cooperative goals, trust and rely, discuss and win-win, move forward together
identify and describe five conflict resolution techniques
1. problem solving
2. superordinate goals
3. compromise
4. forcing
5. smoothing
identify and describe the elements of effective negotiation
-win-win attitude
-knowing your batna
-identifying bargaining zone
explain the advantage of added value negotiating
everyone is happy
identify three types of control
1. feedforward
2. concurrent
3. feedback
discuss organizational control from a strategic perspective
downward translation of objectives, upward translation of performance measures
identify four key elements of a crisis management program
anticipate->plan->staff->practice
identify five types of product quality
1. transcendent
2. product-based
3. user-based
4. manufacturing-based
5. value-based
explain how providing a service differs from manufacturing a product
providing a service is costumer based
manufacturing is based on how close the product is to the design
identify the five service quality dimensions
1. customer participate directly in production process
2. services are consumed immediately and cannot be stored
3. services are provided when and where customer desires
4. services tend to be labor intensive
5. services are intangible
define total quality management
creating an organizational culture committed to the continuous improvement of skills, teamwork, process, products, and service quality and customer satisfaction
specify the four basic principles of total quality management
1. do it right the first time
2. be customer oriented
3. make continuous improvement a way of life
4. build teamwork and empowerment
describe three total quality management process improvement tools
flow chart
cause and effect analysis
control chart
specify four of Deming’s famous fourteen points
1. quality improvement drives the entire economy
2. customer always comes first
3. don’t blame the person, fix the system
4. plan do check act