Principles of Management Final-Part 1 (Chapters 1-8)

the process of working with and through others to achieve organizational objectives in a changing environment.
entails promptly achieving a stated objective.
refers to the amount of resources used to achieve an objective against what was actually accomplished.
Environment in which managers work is changing
Administrative role, Cultural orientation, Quality/ethics/environmental impacts, Power bases, Primary Organizational unit, Interpersonal dealings, learning, problems, Change and Conflict, Information
Administrative Role
Team member/facilitator/teacher/sponsor/advocate/coach
Cultural orientation
Multicultural / multilingual
Quality/ethics/enviornmental impacts
Forethought (unifying themes)
Power Bases
Knowledge; relationship
Primary Organizational Unit
Interpersonal Dealings
Cooperation; win-win
Continuous (lifelong; learner-driven)
Opportunities for learning and continuous improvement
Change and Conflict
Anticipate / seek / channel
Increase access / share
8 Managerial Functions
(1)Planning, (2) Decision Making, (3) Organizing, (4) Staffing, (5) Communicating, (6) Motivating, (7) Leading, (8) Control
the formulation of future courses of action. It gives purpose and direction to the organization, its subunits, and contributing individuals.
Decision Making
choosing among alternative courses of action.
structural considerations such as the chain of command, division of labor, & assignment of responsibility are part of the organizing function.
consists of recruiting, training, & developing people who can contribute to the organized effort.
communication is a two-way process. Managers should be responsive to feedback and upward communications.
pursuing collective objectives by satisfying needs and meeting expectations with meaningful work and valued rewards.
serving as role models and adapting their management style to the demands of the situation.
comparing desired results with actual results and take the necessary corrective action.
Wilson’s Managerial Skills
Technical, Teambuilding, Drive Skills
Technical Managerial Skills
(1)Technical Expertise, (2) Clarification of goals and objectives, (3) Problem Solving, (4) Imagination and creativity
Technical Expertise
skills you have acquired by education and experience; to understand and communicate key technical details
Clarification of Goals and Objectives
your ability to organize and schedule the work of your unit so it is achieved when expected, and meets established standards.
Problem Solving
your ability to resolve issues you confront in the day’s work; to develop team collaboration in facing problems.
Imagination and Creativity
you demonstrate an ability to originate ideas, to correct and develop ways to improve productivity.
Teambuilding Skills
(1) Listening for insights, (2) Directing and Coaching, (3) Solving problems as teams, (4) Coordinating and Cooperating
Listening for Insights
keeping aware of activities of your team and units close to you; underpinning your ability to continue being a manager.
Directing and Coaching
meeting your goals and standards; keeping your team’s skills up to target levels.
Solving Problems as Teams
an important role is helping your team contribute ideas to improve their performance.
Coordinating and Cooperating
demonstrating a willingness to work with others; your group, individuals, and units close to you.
Drive Skills
(1) Standards of Performance, (2) Control of Details, (3) Energy, (4) Exerting Pressure
Standards of Performance
your effort to keep your part of the organization moving, your willingness to be busy and keep aimed toward new accomplishments.
Control of Details
overseeing the performance of work at a close level, to meet performance goals and standards.
demonstrating to your team and colleagues a readiness and willingness to work and that you expect their cooperation.
Exerting Pressure
urging others to perform, by shaping your activities to be perceived as teamwork, not domination.
Characteristics of Typical Managers
(1) Overburdened with obligations, (2) Cannot easily delegate tasks, (3) Driven to overwork, (4) Forced to do many tasks superficially, (5) Work pace characterized by brief interactions, frequent interruptions, and a high reliance on verbal communication.
Universal Process Approach
The administration of all organizations, public or private or large or small, requires the same rational process.
Operational Approach
Process of transforming raw materials, technology, & human talent into useful goods & services.
Behavioral Approach
People deserve to be the central focus of organized activity.
Systems Approach
A study of management by putting things together & assume the whole is greater than the sum of its parts.
Contingency Approach
Through research with managerial practices & techniques, there are appropriate approaches to specific Contingency Characteristics.
The Human Relations Movement
Made managers more sensitive to employee needs.
Theory X
pessimistic view. People are not very creative.
Theory Y
Work is a natural activity, like play or rest.
People are capable of self-direction and self-control if the yare committed to objectives.
People will become committed to organizational objectives if they are rewarded for doing so.
The average person can learn to both accept and seek responsibility.
Many people in the general population have imagination, ingenuity, and creativity.
Scientific management
Establish standards based on facts through systematic observation, experimentation, or reasoning.
Four Areas of Scientific Management movement in industry
(1) Standardization, (2) Time and Task Study, (3) Systematic Selection & Training, (4) Pay Incentives
Quality Advocates and their contributions
Walter Shewhart- Statistical quality control.
Kaoru Ishikawa-Concept of customers; Fishbone diagram in problem solving
W. Edwards Deming-14 principles
Joseph M. Juran- team work,
Armand V. Feigenbaum- total quality Control
Philip B. Crosby- zero defects.
The Social Environment
It is getting larger increasingly female more racially and ethnically diverse and older. New Social Contract. Education/older workers/social contract/inequalities
Responses(reactive neutral,proactive)/audits
Job outlook/cycles/foreign-owned companies
Concept –> product technology –>production technology
4 Ways the Demographics of the New American Workforce is Changing
Demographics, New social contract between employer& employees, Inequalities in the workplace, Managing diversity
Common Myths about older Emplyees
They are less productive, They incur higher benefits costs, They have higher absenteeism, They have more accidents at work, They are not willing to learn, and They are inflexible about the hours they are willing to work.
Social Contract between Employer and Employee
The assumption that the employer-employee relationship will be a shorter-term one based on convenience and mutual benefit, rather than for life
Managing Diversity
The process of creating an organizational culture that provides all employees, including women and minorities, with assistance and opportunities to help them realize their full potential
Why is managing diversity important?
The moral necessity and commitment in going beyond EEO(Equal Employment Oppor.) and affirmative action to create flexible organizations that encompass and value diversity
Stages of the Internationalization Process
Licensing (Stage 1), Exporting (Stage 2), Local Warehousing and Selling (Stage 3), Local Assembly and Packaging (Stage 4), Joint Ventures (Stage 5), Direct Foreign Investments (Stage 6)
Stage 1 of the Internationalization Process–an agreement between organizations of two different countries to use components created in one country in a product produced by an organization in another country.
Stage 2 of the Internationalization Process–shipping and selling a product to retailers in another country.
Local Warehousing and Selling
Stage 3 of the Internationalization Process–product is shipped to storage facilities in another country before going to retail stores in that foreign country.
Local Assembly and Packaging
Stage 4 of the Internationalization Process–Components are shipped to a foreign countries assembly and packaging plants.
Joint Ventures
Stage 5 of the Internationalization Process–Partnerships between organizations who belonging to two or more different countries.
Direct Foreign Investments
Stage 6 of the Internationalization Process–outright purchase of a foreign-owned organization.
Transnational Company
a futuristic model of a global network of productive units with a decentralized authority and no distinct national identity.
Global Company
a multinational venture centrally managed from a specific country.
Ethnocentric attitude
home-country oriented (“My culture and ways are superior.”)
Polycentric attitude
host-country oriented (“When in Rome, do as the Romans Do.”)
Geocentric attitude
world-oriented (“Search the globe for the best talent.”)
High- context cultures
people rely heavily on nonverbal and subtle situational messages when communicating with others.(Japan and other Asian Cultures)
Low- context cultures
spoken and written words are used to convey primary meaning (United States) (Contracts)
Hofstede’s Conclusion
Recommended that American managers adapt theories to local cultures rather than be imposed on them.
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.” (Voluntary Action, An emphasis on means, not ends)
The Classical Economic Model
Adam Smith (18th Century)
Invisible hand promoted public welfare.
Public interest was served by individuals pursuing their own economic self-interests.
Primary concern for short-run profits/stockholders.
Socioeconomic Model
Business is a subsystem among many in a highly interdependent society .
Many groups in society besides stockholders have a stake in corporate affairs.
Arguments for Corporate Social Responsibility
Business is Inevitably involved in social issues.
Business has ample resource to help out.
Better society = better environment.
Less government intervention.
Arguments Against Corporate Social Responsibility
1. Profit maximization ensures the efficient use of society’s resources.
2.As an economic institution, business lacks the ability to pursue social goals.
3.Business already has enough power.
4.Because managers are not elected, they are not directly accountable to the people.
Social Responsibility Strategies
Reaction, Defense, Accommodation, Proaction
deny & maintain “status quo”
use legal maneuvering &/or public relations campaign to avoid assuming additional responsibilities.
pressure to assume additional responsibility.
aggressively taking the initiative.
Enlightened Self-Interest
realization that business ultimately helps itself by helping to solve societal problems.
Key features of effective ethics programs
Support of top management.
Open discussion of realistic scenarios.
A clear focus on ethical issues
Integration of ethics into the organization
A mechanism for anonymously reporting ethical violations
Rewarding of ethical conduct
State uncertainty
the environment, or a portion of it, is unpredictable.
Effect uncertainty
inability to predict the effects of specific environmental changes or events.
Response uncertainty
unable to predict the consequences of a particular decision or organizational response.
Management by Objectives (MBO)
A management system based on measurable and participatively set objectives.
Management by Objectives 4 Step Process
1. Setting objectives- emphasize participation & involvement of people.
2. Developing action plans – complement one another.
3. Periodic review – monitoring performance.
4. Performance appraisal – emphasize results not personalities or excuses.
Strengths of using MBO
1. MBO blends planning and control into a rational system of management.
2. MBO forces an organization to develop a top-to-bottom hierarchy of objectives.
3. MBO emphasizes end results rather than good intentions or personalities.
4. MBO encourages self-management and personal commitment through employee participation in setting objectives.
The Basic Planning Process
Step 1: Formulate plan
Step 2: Carry out plan
Step 3: Compare with plans
Step 4: Take corrective action
Key Dimensions of Strategic Farsightedness
Org. Strategy, Competitive Advantage, Org. Structure, R & D, Personnel Administration, Problem Solving, Management Style
Org. Stragegy
written & communicated long-term.
Competitve Advantage
be the leader
Org. Structure
flexible, change, upward & lateral communication, adaptability & speed.
new, innovative
Personnel Administration
long-term, asset
Problem Solving
finding solutions
Management Style
multilevel, long-term implications
Strategic Management
the ongoing process of ensuring a competitively superior fit between an organization and its changing environment.
Porter’s Model (Competitive Advantage)
Cost Leadership Strategy: (Cost focus; Broad Target)
concern for keeping costs lower than the competition’s
focus on economies of scale and productivity improvement

Differentiation Strategy: (Differentiation; Broad target)
product perceived as unique by most of its customers
cost reduction is not the highest priority

Porter’s Model (Competitive Scope)
Cost Focus Strategy: (Cost focus; Narrow Target)
Gaining a competitive edge in a narrow or regional market by exerting strict cost control.

Focused Differentiation Strategy: (Differentiation; Narrow)
Delivering a superior product and/or service to a limited audience.

SWOT Analysis
a technique for matching organizational strengths and weaknesses with environmental opportunities and threats to determine the organization’s niche.
Sources of Complexity for Today’s Decision Makers
Multiple criteria – conflicting interests
Intangibles – goodwill, morale
Risk and uncertainty – cost of poor decisions
Long-term implications – unintended impact
Interdisciplinary input – complex & technical
Pooled decision making – multifunctional
Value judgments – different backgrounds
Programmed decisions
those that are repetitive, routine and common in day-to-day operations.(EX. Billing, Hiring, Inventory,Consumer loan at bank)
Nonprogrammed decisions
those that are made in complex, important, and nonroutine situations, often under new and largely unfamiliar circumstances. Nonprogrammed decision making calls for creative problem solving.
a condition of certainty exists when there is no doubt about the factual basis of a particular decision and its outcome can be predicted accurately.
a condition of risk is when a decision must be made on the basis of incomplete but reliable factual information.
a condition of uncertainity exists when little or no reliable factual information is available.
Greater pool of knowledge
Different perspectives
Greater comprehension
Increased acceptance
Training ground