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Exam 2 Material

by: Elaine Powell

Exam 2 Material MGMT 371 001

Elaine Powell

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All notes for exam 2
Principles of Management
Lynn McFarland
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This 12 page Bundle was uploaded by Elaine Powell on Thursday November 5, 2015. The Bundle belongs to MGMT 371 001 at University of South Carolina - Columbia taught by Lynn McFarland in Summer 2015. Since its upload, it has received 63 views. For similar materials see Principles of Management in Business, management at University of South Carolina - Columbia.


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Date Created: 11/05/15
MGMT: Exam 2 Notes Communication: (Chapter 17) - Communication is the process by which information is exchanged and understood by two or more people, usually with the intent to motivate or influence behavior Communication is the Manager’s Job: -Today’s complex business environment depends on effective communication -Communication permeates every management function - Managers spend 80% of their day communicating -A manager’s communication is purpose-directed-directs everyone’s attention toward the goals Manager as Communicator (Persuasion and Influence) - The ability to persuade and influence is critical - To persuade and influence, managers must communicate frequently and easily - Communicating with candor means being direct, honest, and clear about what employees need to do - Managers must: establish credibility, build goals on common ground, connect emotionally, use multiple media Influence and Communication: Leader -> 1. Use rational persuasion 2. Help people like you 3. Rely on the rule of reciprocity 4. Develop allies 5. Be assertive-ask for what you want 6. Make use of higher authority (All greater Influence) To be a truly good communicator, managers must understand the communication model and understand how complex communication is and understand the key elements of the communication process. Communication Model: (CH 17, slide 11) suggests there is great potential for misunderstandings Communication Between People: Communication can break down if the sender and receiver do not encode or decode in the same way Different backgrounds can lead to different interpretations of the same information Cultural differences can add to the communication challenge Some cultures are high context while others are low context Communication Channels: (CH 17, slide 13) Non-Verbal Communications: - Message sent through human actions and behavior (body language, facial expressions, gestures, touch, use of space) - Can express enthusiasm, warmth, confidence, arrogance, indifference, and displeasure - Alters how you perceive yourself and alters how others perceive you Written Communication: - Respect the reader - Know your point and get to it - Write clearly rather than impressively - Get a second opinion Use of Technology to Communicate: - Increased desire for instant access and information sharing - Companies are using social media to connect with employees and customers - Podcasts, blogs, and wikis are effective collaboration tools Social Media: - A useful took for engaging both customers, employees, and potential employees - Do not just respond. Use it as a tool to hear what customers and employees are saying. What do they want? Listening: - The skill of grasping both facts and feelings to interpret a message’s meaning - Listening to employees and customers is important - Information in organizations flows from the bottom up o Managers today know the importance of feedback Organizational Communication - Managers are responsible for establishing and maintaining formal communication - Formal communication channels flow within the chain of command - Communication in organizations: o Downward (implementation of goals, strategies; job instructions and rationale; procedures and practices; performance feedback; indoctrination) o Upward (problems and expectations; suggestions for improvement; performance reports; grievances and disputes; financial and accounting information) o Horizontal (intradepartmental problem solving; interdepartmental coordination; change initiatives and improvements) Team Communication: Centralized: teams or organization members must communicate through a particular person to solve a problem or make decisions Decentralized: individuals can communicate freely with other team members to make decisions or solve problems Open Climate: - Open communication and dialogue encourage honesty - Enhanced interpersonal skills can also foster openness, honesty, and trust - Using multiple channels increases effectiveness of communication - Organizational structure should fit communication needs Crisis Communication: - Communication is crucial during times of crisis - Management skills for dealing with crisis o Stay calm, listen hard o Be visible o Get the awful truth out o Communication a vision for the future Personal Communication: - Personal communication may exist with formal channels - Personal communication network is personal networking across organizational boundaries - The grapevine “gossip” can be a valuable tool for managers; it links people across the organization - Written communication is a key skill with the growth of email and collaboration Chapter 18 (Teams) What is a Team? - Work in organizations is interdependent - Group vs. Teams - Two or more people who interact and coordinate their work toward a goal Why form teams? - Teams can make several contributions (creativity and innovation, improve quality, speed of response, higher productivity and lower costs, enhanced motivation and satisfaction- through belongingness and affiliation) Dilemma of teams - We have to give up our independence - We have to put up with free riders (social loafers) - Teams are sometimes dysfunctional - Dysfunctional Teams (CH 18, slide 7) lack of trust, fear of conflict, lack of commitment, avoidance of accountability, inattention to results Creating Effective Teams - Team effectiveness model (CH 18, slide 8) - Development Stages o Forming- orientation and acquaintance o Storming – personalities and roles emerge; conflicts develop o Norming- conflicts are resolved; consensus develops o Performing- focus on problem solving o Adjourning- disbandment Team Types - Functional or Command Teams o Vertical: operates within the formal chain of command - Cross-Functional Team (most creative) o Horizontal: committee with cross-functional membership o Special Purpose: project teams - Self-Managed Teams- supervised by elected employee o Diverse skills and functions o Access to resources o Team is empowered to make decisions - Virtual Teams o Use technology o Shape culture through technology o Monitor progress and reward members - Global Teams o Cross-border work teams o Members from different nationalities o May operate virtually Forming- Team Characteristics - Size Matters o Team performance and productivity peaks at five members - Diversity o Diverse skills, knowledge, and experience produces innovation solutions - Member Roles o Teams must focus on both task Team Roles Successful teams are structured with clear team member roles Task Specialists Role: Socio-emotional Role: Initiate ideas Encourage Give Opinions Harmonize Seek Information Reduce Tension Summarize Follow Energize Compromise - Teams with mostly socio-emotional roles can be satisfying, but unproductive - Teams made up of primarily of task specialist may be effective for a short period, but the members may not be satisfied - BALANCE IS KEY Storming Team Conflict - Teams deal with task conflict and relationship conflict - Balancing conflict and cooperation o Conflict can help eliminate groupthink o Conflict can cause morale and productivity problems - Causes of Conflict o Competition over resources o Communication breakdowns o Lost trust o Differing goals Conflict Tools - Superordinate Goals- vision compels people to overcome conflict and cooperate - Mediation- allowing third party to help with disputes - Negotiation – give and take discussions and consideration of alternatives o Integrative- win-win solution o Distributive- each party wants a fixed ‘size of the pie’ Finding Solutions - Separate the people from the problem - Focus on interests, not current demands - Generate many alternative for mutual gain - Insist that results be based on objective standards Norming: - Successful teams don’t just happen - Team members should consider: o Defining roles o Establishing norms o Setting goals Team Norm: - An informal standard of conduct that is shared by team members and guides their behavior - Development (CH 18, slide 24) Performing Team Cohesiveness: - Determinants (team interaction, shared goals, personal attraction to the team, presence of competition, team success) - Consequences (morale, productivity) Performing and Adjourning: - Work-team effectiveness is based on: o Productive output o Personal satisfaction o Capacity to adapt and learn o Team leadership Chapter 3 (environment and corporate culture) External Environment: - Task Environment o Sectors that conduct transactions with the organization - General Environment o All elements existing outside the boundary of the organization that have the potential to effect it - Organizational Ecosystem o Formed by the interaction among a community of organizations in the environment - Internal Environment o Elements within the organization boundaries Task Environment Internal Environment General Environment Customers Employees Technological Competitors Culture Natural Suppliers Management Sociocultural Labor Market Economics Legal/Political International Task Environment: - Customers: people that acquire goods and/or services from the organization - Competitors: organizations in the same industry or that provide for the same set of customers - Suppliers: people/organizations that provide raw materials needed for output - Labor Market: people available for hire General Environment: - International Dimension: events originating in foreign countries - Technological Dimension: scientific and technological advancements - Sociocultural Dimension: demographic characteristics, norms, customs, and values of the general population - Economic Dimension: general economic health of the country or region - Legal-Political Dimension: government regulations and political activities that influence company behavior - Natural Dimension: all naturally-occurring elements Organization-Environment Relationship - The environment creates uncertainty for managers - Managers must respond and design adaptive organizations - Uncertainty occurs when managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes General Environment: International - Globalization influences all other aspects of the external environment o New competitors, customers, suppliers o Changes in social, technological, and economic trends - All organizations must complete and think globally - Economic power has shifted to China and India - The global environment is complex and ever-changing Adapting to the Environment - Boundary-Spanning Roles: coordinating the organization with key elements in the external environment - Inter-organizational Partnerships: collaborating with other organizations - Mergers: combination of two organizations - Joint Ventures: an alliance of organizations for a specific project International Environment: Corporate Culture: the set of key values, beliefs, understandings, and norms that members of an organization share (symbols, stories, heroes, slogans, ceremonies) Visible and Invisible (CH 3, slide 16) High-Performance Cultures: - Based on solid organizational mission/purpose - Shared adaptive values that guide decisions and practices - Encourages individual employee ownership o Bottom-line results o Organization’s culture Cultural Leadership: - Defines and uses signals and symbols to influence corporate culture o Articulate a vision for the organizational culture that employees can believe in o Heeds the day-to-day activities that reinforce the cultural vision o Communicate cultural values through words and actions o Uphold their commitment to values during difficult times (CH 4) Managing in a Global Environment A Borderless World - Organizations and managers are not isolated from international forces o Trade barriers have fallen o Communication is faster, cheaper o Consumer tastes converge - The difficulties and risks of a borderless world are matched by benefits and opportunities Emerging Markets: - BRIC o Brazil, Russia, India China Global Mindset - Ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent o Different social, cultural, political, institutional, intellectual, and psychological characteristics - Develop by engaging with people from different cultures - Three components: o Cognitive Dimension- understanding how cultures differ o Psychological Dimension- emotional and affective skills to deal with the unpredictable and uncertain o Social Dimension- ability to behave in ways that build trusting relationships with people who are different Multinational Corporations (MNC) - The size and volume of international business is LARGE o Companies have revenue= GDP of a small country o Move assets from country to country o 25% or more of its profit comes from outside parent country - A MNC is managed as an integrated whole - Impacts of MNC’s o Controlled by one management authority o MNC managers must have a global perspective o Ethnocentric companies- place emphasis on their home countries o Polycentric companies- oriented toward the markets of individual foreign host countries o Geocentric companies- world oriented and favor no specific country International Business Environment - Planning, organizing, leading, and controlling in multiple countries can be challenging - Managers must be mindful in the global marketplace Glocalization: the practice of conducting business according to both local and global considerations International Environment: Economic, legal/political, sociocultural Economic: Economic Development: countries are categorized as either developed or developing based on per capita income - Government policies - Market size - Financial markets - Infrastructure Legal/Political: Political risk- the risk of lost assets, earning power, or managerial control Index of Economic Freedom Hong Kong=1 (most freedom); US=8; North Korea=179 (least freedom) Corruption Perception Index New Zealand=1 (least corruption); US=19; Somalia=180 (most corruption) Political Instability includes riots, revolutions, civil disorders, and frequent changes in government Sociocultural: The values and behaviors that govern U.S. business do not always translate Social Values Communication differences Beliefs Modes of behavior Hofstede’s Cultural Values (CH 4, slide 23): (Cultural Dimensions) Power distance, Uncertainty avoidance, individualism, collectivism, masculinity and femininity, and long term vs. short term GLOBE Project: (CH 4, slide 25) Assertiveness, Future orientation, gender differentiation, performance orientation, and humane orientation High-Context Culture: People are sensitive to circumstances surrounding social exchanges. The meaning of communications is derived from context- setting, status, and nonverbal behavior- more than from explicit words. Include Asian and Arab countries Low-Context Cultures: People use communication primarily to exchange facts and information; meaning is derived primarily from words. Include American and Northern Europe Other Cultural Considerations - Language - Religion - Social Organization - Education - Attitudes Ethnocentrism: tendency to regard one’s own culture as superior and to downgrade other cultures Cultural Intelligence: (CH 4, slide 31) A system of interacting knowledge and skills, linked by cultural meta-cognition, that allows people to adapt to, select, and shape the cultural aspects of their environment - Cultural Knowledge - Cultural Skill - Cultural Meta-cognition International Trade Alliances: - General Agreement on Tariff and Trade (GATT): 23 nations in 1947, a set of rules for fair trade - World Trade Organization (WTO): Maturation of GATT into permanent global institute - European Union: 1957 alliance to improve economic and social conditions among members; evolved to 27 nation European Union - North American Free Trade Agreement (NAFTA): merged the US, Canada, and Mexico into a single market Summary: - All organizations are not operating in a global environment - The international environment is determined by 3 key factors: (CH 5) Ethics and Social Responsibility Managerial Ethics: Ethics: code of moral principles and values that govern the behaviors or right or wrong - Standard about good/bad - Ethical issues can be complex - People in organizations have divergent views about right/wrong Sources: Individuals bring their own personality and traits to organizations Personal needs, family influence, and religious background shape individuals Personality characteristics such as ago, confidence, and independence may enable managers to make ethical choices Three Domains: Ethics are hard to define Ethical issues are complex and often ambiguous Ethics fall between law and free choice Amount of Explicit Control: High (Legal Standard) -> Low (Personal Standard) Ethical Dilemmas - An ethical dilemma arises in a situation concerning right or wrong when values are in conflict - Managers and employees are the moral agents who must make ethical choices - Decisions about advertising, operations, and internet usage are all dilemmas you might face Types of Dilemmas - Conflict of Interest: when someone’s personal interests influence- or may appear to influence- his or her official duties - Unethical request from authority figure: someone is exerting hierarchy to get you to float rules or violates standards of decency - Sacrifice of personal values: these dilemmas involve values you hold but you can’t expect others to hold - You promised, but the world changed: we commit to do something, giving others the legitimate belief that they can rely on us, but then something comes up - Intervention: trying to make something right, or stop something from happening Ethical Decision Making Criteria - Justice Approach: moral decisions must be based on standards of equity, fairness, and impartiality o Distributive justice o Procedural justice o Compensatory justice - Practical approach: bases decisions on prevailing standards, society, and all stakeholders Personal Moral Development (CH 5, slide 17) Organizational Pressures: - When organizational pressure causes people to go against their own sense of right and wrong o Stress o Withdrawal o Counterproductive behaviors Corporate Social Responsibility: - The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization and stakeholders o Stakeholder: an group or person within or outside the organization that has some type of investment or interest in the organization’s performance or is affected (employees, customers, shareholders, etc.) o Stakeholder mapping- a systematic way to identify key stakeholders, their expectations, needs, importance, and relative power The Green Movement - Going green is a business imperative o Social attitudes o New governmental policies o Climate change - Information technology immediately spreads the negative decisions of corporations - More organizations are embracing sustainability - Ex. Nike: creating less waste - Ex. Wal-Mart: energy efficient trucking - Ex. UPS: no more aluminum trucks Sustainability: - Economic development that generates wealth and meets the needs of the current generation while preserving the environment for the needs of future generations - Three Ps: o People: Fair labor practices, diversity, contributions to community o Planet: commitment to environment sustainability o Profits: financial bottom line Managing Company Ethics and CSR (CH 5, slide 26, 27) - Code of Ethics: formal statement of the organization’s values regarding ethics and social issues - Ethical Structures: systems, positions and programs to implement ethical behavior - Whistle-Blowing: employee disclosure of illegal, immoral, or illegitimate practices CH 6 (Managing Small Businesses) Entrepreneurship: - The process of initiating a business venture - Organizing necessary resources: risk/reward - An entrepreneur engages in entrepreneurship o Recognizes a valuable idea o Assumes financial and legal risks o Receives the business’s profits - Successful entrepreneurs have many different motivations Types of Small Business Owners: - Idealists, optimizers, hard workers, jugglers, and sustainers Entrepreneurship Today - Vital, dynamic, and increasingly important to the economy o Generated 64% of new jobs over the last 15 years o Employs half of the private-sector jobs o Represents 98% of all firms - Entrepreneurial companies are engines for job creation and innovation - Entrepreneurship is booming around the world Characteristics of Entrepreneurs (CH 6, slide 7) What do you need to start a business? 1. Finding Ideas 2. Preparing a business plan 3. Legal Structure (sole proprietorship, partnership, or corporation) 4. Financing (Debt vs. Equity) Becoming a Business Owner: - Start a business - Buy a business - Buy a franchise - Business incubators Franchising: an arrangement to purchase the right to distribute the product or service with the help of the owner Business incubators: provide resources to entrepreneurs such as office space, support services, and management and legal advice


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