Management Chapters 1-4

Getting work done through others

Management

Getting work done with minimum effort, expense, or waste

Efficiency

Accomplishing tasks that help fulfil organizational objectives

Effectiveness

Four Functions of Management

Planning Organizing Leading Controlling

Planning

determining organizational goals and a means for achieving them

Organizing

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company

Leading

inspiring and motivating workers to work hard to achieve organizational goals

Controlling

monitoring progress toward goal achievement and taking corrective action when progress isn’t being made

Top Managers

Executives responsible for the overall direction of the organization Chief executive officer (CEO) Chief operating officer (COO) Chief financial officer (CFO) Chief information officer (CIO)

Middle Manager

-Setting objectives consistent with top management’s goals -Planning and implementing subunit strategies for achieving the objectives

First-Line Managers

Train and supervise the performance of nonmanagerial employees who are responsible for producing a company’s goods and services Responsibilities – Monitoring, teaching, and short-term planning

Team Leaders

Managers responsible for facilitating team activities toward goal accomplishment Help team members: Plan and schedule work Learn to solve problems Work effectively with each other

Monitor

Managers scan their environment for information

Figurehead

Managers perform ceremonial duties

Leader

Managers motivate and encourage workers to accomplish organizational objectives

Liaison

Managers deal with people outside their units

Disseminator

Managers share the collected information with their subordinates and others in the company

Spokesperson

Managers share information with people outside their departments or companies

Entrepreneur

Managers adapt themselves, their subordinates, and their units to change

Disturbance handler

Managers respond to pressures and problems that demand immediate attention and action

Resource allocator

Managers decide who gets what resources and in what amounts

Negotiator

Managers negotiate schedules, projects, resources, and employee raises

Stanford University professor contends that what separates top-performing companies from their competitors is the way they treat their work forces-in other words their management.

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Managers in top-performing companies develop workforces that a smarter, better, trained, more motivated, and more committed than their competitor’s workforces.

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Employment security

Employees can innovate and increase the profitability of an organization without the fear of losing their job

Selective hiring

Companies need to hire the best talent due to the presence of employment security

Self-managed teams

Produce high productivity through increased employee commitment and creativity

Decentralization

Allows employees closest to problems, production, and clients to make timely decisions

Kinds of managers are

top, middle, first-line, and team leaders

Roles played by managers include

interpersonal, informational, and decisional

_______ are essential for managers

Technical, human, and conceptual skills

External Environments

The forces and events outside a company that have the potential to influence or affect it.

Environmental change

Rate at which a company’s general and specific environments change

Stable environment

Rate of change is slow

Dynamic environment

Rate of change is fast

Punctuated equilibrium theory

Companies go through long periods of stability, followed by short periods of dynamic, fundamental change, and then a new equilibrium

Environmental complexity

Number and intensity of external factors in the environment that affect organizations

Simple environment

Includes few factors

Leaders must be able to manage:

Environmental change Environmental complexity Resource scarcity Uncertainty

Complex environment

Includes many factors

Resource scarcity

Abundance or shortage of critical organizational resources in an external environment The extent to which managers can predict which external changes and trends will affect their businesses

Environmental change+environmental complexity+resource scarcity=

environmental uncertainty

Growing economy have more money to spend
Shrinking economy have less money to spend

…

Business confidence indices

Show managers’ level of confidence about future business growth

Technology

Knowledge, tools, and techniques used to transform inputs into outputs

Sociocultural

Includes demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society Changes in demographic characteristics affect how companies staff their businesses Changes in behavior, attitudes, and beliefs affect the demand for a business’s products and services

Women hold 14.7% of board seats at Fortune 500 companies; women of color hold 3.4%.
For each $1 earned by men, women earn 81 cents;

Hispanics are 14.9% of the workforce and hold 5% of managerial jobs.

Women are 52% of the U.S. workforce and hold 50.3% of managerial jobs. African-Americans are 11.1% of the workforce and hold 5.4% of managerial jobs. African-American women earn 64 cents; Hispanic women earn 52 cents.

Competitors

Companies in the same industry that sell similar products or services to customers

Suppliers

Companies that provide material, human, financial, and informational resources to other companies

Industry Regulation

Regulations and rules that govern the business practices and procedures

Advocacy Group

Concerned citizens that band together to try to influence business practices

Reactive customer monitoring

Identifying and addressing customer trends and problems after they occur

Proactive customer monitoring

Identifying and addressing customer needs, trends, and issues before they occur

Competitors

companies in the same industry that sell similar products or services

Competitive analysis

a process of monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

Suppliers

companies that provide material, human, financial, and informational resources to other companies

Regulations and rules that govern the practices and procedures of specific industries, businesses, and professions

Ex. CAFÉ standards

Advocacy Groups

Public communication Media advocacy Product boycott

Three-step process employed by managers
Environmental scanning:

Searching the environment for important events or issues that might affect an organization Managers scan the environment to reduce uncertainty. Organizational strategies affect environmental scanning. Environmental scanning contributes to organizational performance.

Threat

managers typically take steps to protect the company from further harm

Opportunity

managers consider strategic alternatives for taking advantage of those events to improve performance

Organizational heroes

People admired for their qualities and achievements within an organization

Behavioral addition

is the process of having managers and employees perform a new behavior

Behavioral substitution

having managers and employees perform a new behavior in place of another behavior

Change visible artifacts

such as the office design and layout, company dress codes, etc.

General environment consists of

the economy, technological, sociocultural, and political/legal trends that indirectly affect all organizations

Components of specific environment are

customer, competitor, supplier, industry regulation, and advocacy groups

Economic Responsibility

To make a profit by producing a valued product or service

Legal Responsibility

To obey society’s laws and regulations

Ethical Responsibility

To abide by accepted principles of right and wrong when conducting business

Discretionary responsibilities

Social roles that a company fulfils beyond its economic, legal, and ethical responsibilities

Reactive Strategy

Company does less than society expects

Defensive strategy

Company admits responsibility for a problem but does the least required to meet societal expectations

Accommodative strategy

Company accepts responsibility for a problem and does all that society expects to solve that problem

Proactive strategy

Company anticipates a problem before it occurs and does more than society’s expectations

US Sentencing Commission Guidelines for Organizations give companies an incentive to cooperate and disclose illegal activities to federal authorities

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Social responsibilities of organizations

Economic, legal, ethical, and discretionary

Responses to demands for social responsibility

Reactive, defensive, accommodative, and proactive strategies

No trade-off between being socially responsible and economic performance

…

Fruitlicious is a fruit juice manufacturing company. The company ensures that all the raw materials are used well and minimal waste is produced. The juice extraction and packaging units are designed in such way that quality is maintained with minimal costs. It can be said that Fruitlicious demonstrates _____.

Efficiency

Managers must strive for _____, which is accomplishing tasks that help fulfill organizational objectives such as customer service and satisfaction

Effectiveness

_____ involves determining organizational goals and the means for achieving them.

Planning

Magnitude of consequences

total harm or benefit derived from an ethical decision

Social Consensus

agreement on whether behavior is good or bad

Probability of effect

the chance that something will happen and then result in harm to others

Temporal Immediacy

the time between an act and the consequences

Proximity of effect

the social, psychological, cultural, or physical distance of a decision maker from those affected by his decision

Concentration of Effect

how much an act affects the average person

The function of _____ typically involves deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company.

Organizing

_____ refers to monitoring progress toward goal achievement and taking corrective action when needed.

Controlling

As the human resources manager at Hayden Engineering and Manufacturing Corp, Kim had to find effective ways to reward high performing employees and boost their morale during an economic downturn. Which management function did Kim have to engage in?

Leading

_____ are executives responsible for the overall direction of the organization.

Top Managers

It is typically the responsibility of _____ to develop employees’ commitment to and ownership of the company’s performance.

Top Managers

Middle managers typically:

plan and allocate resources to meet objectives.

First-line managers will most likely have to:

encourage, monitor, and reward the performances of their employees.

A ____ for a fast-food restaurant would be responsible for giving instructions to the staff and for setting up weekly work schedules.

First Line Manager

According to Mintzberg, which of the following is one of the three major roles managers fulfill while performing their jobs?

Interpersonal roles

Which of the following is an example of an interpersonal role?

figurehead

The informational role managers’ play when they share information they have collected with their subordinates and others in the company is called the ____ role.

disseminator

In the _____ managerial role, managers discuss and handle schedules, projects, goals, outcomes, resources, and employee raises.

negotiator

In the context of decisional roles, managers who assume the _____ role respond to pressures and problems so severe that they demand immediate attention and action.

disturbance handler

_____ skills can be summarized as the ability to work well with others.

human

An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.

technical skill

Which type of skills are the most important to the success of lower-level managers?

Technical skills

What type of skills are equally important at all levels of management?

Human Skills

Which skill is needed to get employees to participate in competitive situations?

Motivation to manage

Which of the following is a characteristic of derailers?

They are abrasive and intimidating.

According to Linda Hill’s study, which of the following is typically an expectation that managers have during the initial stages of management?

They believe that they need to "be the boss"

_____ is the ultimate form of commitment companies can make to their workers.

Employment security

According to ____, the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

the contingency approach

Nearly all organizations that interact with their environments and depend on them for survival are viewed as ____.

open systems

Which of the following statements about information management is true?

The first technologies to truly revolutionize the business use of information were paper and the printing press

A systems view of management allows managers to ____.

deal with the complex environment in which their companies operate

Which of the following management theorists believed that workers ultimately grant managers their authority?

Chester Barnard

_____ involves managing the daily production of goods and services.

Operations management

Which of the following management theories uses a quantitative approach to find ways to increase productivity, improve quality, and manage or reduce costly inventories?

Operations management

Which of the following was demonstrated by the Hawthorne Studies?

Workers were not just extension of machines.

Which of the following management theorists provided managers with a better understanding of the effect group social interactions and employee satisfaction have on individual and group performance?

Elton Mayo

With integrative conflict resolution, _____.

both parties work together to create an alternative solution that includes shared preferences

According to Henri Fayol’s fourteen principles of management, _____ means that each employee should report to and receive orders from just one boss.

unity of command

According to Henri Fayol’s fourteen principles of management, _____ requires managers to develop a strong sense of morale and unity among workers that encourages coordination of efforts.

esprit de corps

Identify the three ways in which Mary Parker Follett believed managers typically deal with conflict.

Domination, compromise, and integration

According to Henri Fayol, _____ is monitoring progress toward goal achievement and taking corrective action when needed.

controlling

_____ focuses on the psychological and social aspects of work.

Human relations management

According to human relations management _____.

success depends on treating workers well

Which of the following management theorists helped develop human relations management?

Mary Parker Follett

According to Henri Fayol, _____ is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom.

organizing

According to bureaucratic management, employees should be hired on the basis of _____.

educational background of an applicant

According to bureaucratic management, _____ should supervise the organization.

Managers

According to bureaucratic management, which of the following is a criterion on which employees should be promoted?

Experience or achievements

Which of the following does a Gantt chart visually indicate?

The time in which each task should be completed for a project

One of the objectives of the motion study conducted by Frank and Lillian Gilbreth was to:

improve productivity of workers.

Prior to the introduction of _____, five workers each given an identical task could use five different methods to perform the task with some methods being significantly more efficient than others.

scientific management

Which of the following is the goal of scientific management?

To find the one best way to perform each task.

Scientific Management

thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job

Soldiering

when workers deliberately slow their pace or restrict their work output

rate buster

a group member whose work pace is significantly faster than the normal pace in his or her group

Motion Study

breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive

Time study

timing how long it takes good workers to complete each part of their jobs

Gantt chart

a graphical chart that shows which tasks must be completed at which times in order to complete a project or task

Bureaucracy

the exercise of control on the basis of knowledge, expertise, or experience

Domination

an approach to dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party’s desires and objectives

Compromise

an approach to dealing with conflict in which both parties give up some of what they want in order to reach agreement on a plan to reduce or settle the conflict

Integrative conflict resolution

an approach to dealing with conflict in which both parties indicate their preferences and then work together to find an alternative that meets the needs of both

Organization

a system of consciously coordinated activities or forces created by two or more people

System

a set of interrelated elements or parts that function as a whole

Subsystems

smaller systems that operate within the context of a larger system

Synergy

when two or more subsystems working together can produce more than they can working apart

Closed Systems

systems that can sustain themselves without interacting with their environments

Open Systems

systems that can sustain themselves only by interacting with their environments, on which they depend for their survival

Contingency approach

holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place

_____ refer to discernible symbols of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room.

visible artifacts

Which of the following is NOT a characteristic of successful organizational cultures?

Immutability

_____ is defined as a firm’s purpose or reason for existing.

Company mission

____ is a primary source of organizational culture.

The Company’s Founder

_____ is defined as searching the industry for important events or issues that might affect an organization.

Environmental scanning

The term ____ refers to the events and trends inside an organization that affect management, employees, and the organizational culture.

internal environment

____ is the set of key values, beliefs, and attitudes shared by members of an organization.

Organizational culture

_____ refers to the protocols and guidelines that govern the business practices and procedures of specific businesses, and professions.

Industry regulation

_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

Advocacy groups

A high degree of buyer or seller dependence can lead to _____.

opportunistic behavior

Competitive analysis refers to:

identifying companies that sell similar products.

Which of the following helps managers accurately analyze competition?

Refraining from underestimating the potential of competitors

____ is used to refer to a company’s practice of identifying and addressing customer trends and problems after they occur.

Reactive customer monitoring

_____refers to identifying and addressing customer needs, trends, and issues before they occur.

Proactive monitoring

A court ruling regarding the unfair firing of employees is a development in the _____ component of the general environment.

political/legal

Many people in Rhenasia are cutting down on their spending. This is because of a lack of well-paying jobs in the country. Many businesses in the country are getting affected as the buying power of customers has drastically reduced. The environmental characteristic that is affecting businesses in Rhenasia is _____.

the economy

Business confidence indices:

show how sure actual managers are about future business growth.

_____ refers to the knowledge, tools, and methods used to transform inputs (raw materials, information, and so on) into outputs (products and services).

Technology

Environmental uncertainty is most likely to be lowest when:

environmental resource scarcity is low.

Which of the following is a part of the general environment of an organization?

Technology trends and Political Trends

Which of the following is true about a company’s specific environment?

It is unique to a particular firm’s industry.

Which of the following statements is true about environmental uncertainty?

It is most likely to be high when environmental change is extensive.

_____ is the rate at which a company’s general and specific environments alter.

Environmental change

According to the ____, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.

punctuated equilibrium theory

Which of the following is a part of the general environment of an organization?

Political Trends

A company implementing a(n) ____ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society’s expectations.

proactive

A company using a(n) _____ social responsiveness strategy will do less than society expects.

reactive

A company using a(n) _____ strategy would admit responsibility for a problem but would do the least required to meet societal expectations.

defensive

_____ pertain to the social roles that businesses play in society beyond their economic, legal, and ethical responsibilities.

Discretionary responsibilities

_____ responsibility means making a profit by producing a product valued by society.

Economic

Secondary stakeholders are important to a company because _____.

they can affect public perceptions and opinions

Under the stakeholder model, ____ would be an example of a stakeholder group that most strongly affects public perceptions and opinions about the company’s socially responsible behavior.

the media

Groups such as shareholders, employees, customers, suppliers, governments, and local communities are examples of _____ stakeholders.

primary

A primary stakeholder of an organization would be _____.

customers

According to the _____ model, the only social responsibility that businesses have is to maximize profits.

shareholder

In the context of corporate social responsibility, which of the following statements would Milton Friedman agree to?

The time, money, and attention diverted to social causes undermine market efficiency.

Various persons or groups with a legitimate interest in a company’s actions are called _____.

stakeholders

The two general categories of stakeholders are _____ stakeholders.

primary and secondary

Which of the following statements best defines social responsibility?

It is a business’ obligation to pursue policies, make decisions, and take actions that benefit society.

Which of the following is an important step in establishing an ethical climate in an organization?

The top managers behaving ethically

The last step in the basic model of ethical decision making is to _____.

act on the situation

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

official approval of a company’s ethics code by government regulators

During an ethical decision-making process, which of these questions must be asked in order to identify a problem?

"What are the factors that make this an ethical problem?"

According to Kohlberg’s model of moral development, people at the _____ make decisions that conform to societal expectations.

conventional level

The three stages of moral development identified by Kohlberg are ____.

the preconventional level, the conventional level, and the postconventional level

People at the _____ of moral development use internalized ethical principles to solve ethical dilemmas.

postconventional level

According to Kohlberg’s model of moral development, people at the _____ make decisions that are based on selfish reasons.

preconventional level

Ethical intensity depends on all of the following EXCEPT ____.

individual commitment

Which of the following terms describes the degree of concern people have about an ethical issue?

Ethical intensity

Which of the following statements about ethics is true?

When people believe their work environment is ethical, they are six times more likely to stay with that company.