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MSU / OTHER / MGT 3114 / What are the Challenges to Exceptional Management?

What are the Challenges to Exceptional Management?

What are the Challenges to Exceptional Management?

Description

School: Mississippi State University
Department: OTHER
Course: Principles of Management and Production
Professor: Nathaniel hammond
Term: Spring 2017
Tags:
Cost: 50
Name: Exam 1 Study Guide
Description: This study guide is for the first test on 9/13! It covers chapters 1,2,3,5, and 6!
Uploaded: 09/11/2017
15 Pages 8 Views 8 Unlocks
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Principles of Management and Production


What are the Challenges to Exceptional Management?



Exam 1 Study Guide

Chapter 1

Organization – a group of people who work together to achieve some specific  purpose

Management – the pursuit of organizational goals efficiently and effectively by: Integrating the work of people through:

1) Planning

2) Organizing

3) Leading

4) Controlling the organization’s resources

Getting something done through other people

The Art of Management:  

To be efficient means to use resources—people, money, raw materials, and the like— wisely and cost-effectively

To be effective means to achieve results, to make the right decisions and to successfully  carry them out so that they achieve the organization’s goals

The Management Process:

1) Planning – you set goals and decide how to achieve them

2) Organizing – you arrange tasks, people, and other resources to accomplish the work 3) Leading – you motivate, direct, and otherwise influence people to work hard to achieve  the organization’s goals


What are the Four Levels of Management?



We also discuss several other topics like law of chemical combination

4) Controlling – you monitor performance, compare it with goals, and take connective  action as needed

Challenges to Exceptional Management:

1) Managing for competitive advantage

2) Managing for information technology

3) Managing for diversity

4) Managing for globalization

5) Managing for ethical standards

6) Managing for sustainability

7) Managing for happiness and meaningfulness  

Four Levels of Management:

Top Management – make long-term decisions about the overall direction of the organization  and establish the objectives, policies, and strategies for it  We also discuss several other topics like nfs2020
Don't forget about the age old question of bio280

CEO, CFO, etc.

Middle Management – implement the policies and plans of the top managers above them and  supervise and coordinate the activities of the first-line managers below them

Principles of Management and Production


What are the three Types of Managers?



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Considered “high-touch” jobs dealing with people rather than computer screens First Line Managers – make short-term operating decisions, directing the daily tasks of  nonmanagerial personnel

Team Leader – responsible for facilitating team activities toward achieving key results  

Three Types of Managers:

1) For-profit organizations – making money (profits) by offering products or services 2) Nonprofit organizations – offering services to some clients, not to make a profit (i.e.  hospitals, colleges, social-welfare agencies)

3) Mutual-benefit organizations – aiding members in order to advance their interests (i.e.  political parties, farm cooperatives, labor unions, trade associations, clubs)

Skills of Managers:

1) Technical skills – the job-specific knowledge needed to perform well in a specialized  field

2) Conceptual skills – the ability to think analytically, to visualize an organization as a whole  and understand how the parts work together  

3) Human skills (i.e. soft skills) – the ability to work in cooperation with other people to get  things done; the ability to motivate, to inspire trust, to communicate with others

Managerial Roles:

1) Interpersonal roles – interact with people inside and outside their work units (figurehead, leader, liaison)

2) Informational roles – receive and communicate information (monitor, disseminator,  spokesperson) If you want to learn more check out nr 220 csu

3) Decisional roles – use information to make decisions to solve problems or take  advantage of opportunities (entrepreneur, disturbance handler, resource allocator,  negotiator)

Transition to Management:

Manager’s Initial Expectations

Be the boss

Formal authority

Manage tasks

Job is not managing people

After Six Months as a Manager

Initial expectations were wrong

Fast pace

Heavy workload

Job is to be problem solver and troubleshooter for subordinates

After a Year as a Manager

No longer a “doer”

Communication, listening, and positive reinforcement

Learning to adapt and control stress

Principles of Management and Production

Job is people development  

Top Management Mistakes:

1) Insensitive to others: abrasive, intimidating, bullying style

2) Cold, aloof, arrogant

3) Betray trust

4) Overly ambitious: thinking of next job, playing politics

5) Specific performance problems with the business

6) Overmanaging: unable to delegate or build a team

7) Unable to staff effectively

8) Unable to think strategically

9) Unable to adapt to boss with different style

10) Overdependent on advocate or mentor  

The Management Agreement 

Managers are expected to set the standard for their department or organization and to model  behavior they expect from subordinates

Managers Cannot:

Play favorites with employees Don't forget about the age old question of \oom

Put their self before employees

Lose their temper with employees

Mangers must abide by this agreement

Successful executives are:

Proactive

Action planners

Responsible

Problem solvers

Chapter 2

Theory – provides a conceptual framework for organizing knowledge and providing a blueprint  for action

Management theories are grounded in reality

Managers develop their own theories

History – an awareness and understanding of historical developments in management are  important

Furthers development of management practices

Avoids mistakes of others in the past

The Historical Perspective (1911-1950s) 

Classical Viewpoint (1911-1947) – emphasis on ways to manage work more efficiently Scientific management – emphasized scientific study of work methods to improve       productivity of individual workers

Administrative management – concerned with managing the total organization

Principles of Management and Production

Behavioral Viewpoint (1913-1950s) – emphasis on importance of understanding human  behavior and motivating and encouraging employees toward achievement Human Relations Movement – proposed better human relations could increase worker       productivity

Behavioral Science Approach – relies on scientific research for developing theory to       provide practical management tools  

Quantitative Viewpoint – applies quantitative techniques to management Management Science – focuses on using mathematics to aid in problem solving and       decision making

Operations Management – focuses on managing the production and delivery of an       organization’s products or services more effectively  

The Contemporary Perspective (1960s-Present) 

The Systems Viewpoint – regards the organization as systems of interrelated parts that operate       together to achieve a common purpose

The Contingency Viewpoint – emphasizes that a manager’s approach should vary according       to—i.e., be contingent on—the individual and environmental situation The Quality-Management Viewpoint – three approaches

Frederick W. Taylor’s Principles of Scientific Management:

1) Scientifically study each part of the task

2) Carefully select workers with the right abilities

3) Give workers the training and incentives to do the task properly

4) Use scientific principles to plan the work methods

The Gilbreths and Motion Studies:

1) Applied some ideas for improving efficiency to raising their 12 children 2) Identified 17 basic motions and applied them to work processes to determine whether  the tasks could be done more efficiently  

3) Demonstrated they could eliminate motions while reducing fatigue for some workers;  Motion study typically yielded production increases of 25-300%.

Henry Gantt’s Gantt Chart – visually indicated what tasks must be completed at which times in  order to complete a project

Max Weber (1864-1920)

Believed that a bureaucracy was a rational, efficient, ideal organization based on the principles  of logic

Defined bureaucracy as – the exercise of control on the basis on knowledge 1) A well-defined hierarchy of authority

2) Formal rules and procedures

3) A clear division of labor

4) Impersonality

5) Careers based on merit

Principles of Management and Production

Henri Fayol (1841-1925)

French engineer and industrialist

First to identify the major function of management:

1) Planning

2) Organizing

3) Leading

4) Controlling

5) Coordinating

Developed the 14 Principles of Management

Mary Parker Follett (1868-1933)

A social worker and social philosopher, she made very important contributions to the files of  civics and sociology

Conflict:

Should be resolved by managers and workers talking over differences and finding solutions that  would satisfy both parties

Defined conflict – the appearance of difference, difference of opinions of interests How to Resolve:

1) Domination – one side wins and the other loses

2) Compromise – each side gives up some of what they want

3) Integrative Conflict Resolution – have both parties indicate their preferences and then  work together to find an alternative that meets the needs of both

Hawthorne Effect – employees worked harder if they received added attention and thought  that managers cared about their welfare and that supervisors paid special attention to them 1) Illumination Study – lighting adjustments affected both control and experimental groups  of employees

2) Group Study – relay assembly test room experiments and the Bank wiring room  experiments. Incentive plans and lack of supervision caused workers to establish  informal levels of individual output

3) Interview Program – confirmed importance of human behavior in the workplace

Douglas McGregor

Theory X – represents a pessimistic, negative view of workers; Workers are irresponsible,       resistant to change, lack of ambition, hate work, and want to be led

Theory Y – represents an optimistic, positive view of workers; Workers are considered capable       of accepting responsibility, self-direction, self control, and being creative

Quantitative Management:

1) Management science

2) Operations management

Principles of Management and Production

Operation Management – focuses on managing the production and delivery of an  organization’s products or services more effectively; Concerned with work scheduling,  production planning, facilities location and design, and optimum inventory levels Ex: Henry Ford’s assembly line production

Systems Approach to Management:

1) Inputs – the people, money, information, equipment, and materials required to produce  an organization’s goods or services

2) Transformation processes – the organization’s capabilities in management and  technology that are applied to converting inputs into outputs

3) Outputs – the products, services, profits, losses, employee satisfaction or discontent,  etc. produced by the organization

4) Feedback – information about the reaction of the environment to the outputs, which  affects the inputs

Synergy – idea that two or more forces combined create an effect that is greater than the sum  of their individual effects

Subsystems – a system within another system that is important due to its interdependence on  other sub-systems within the organization

Contingency Management – emphasizes that a manager’s approach should vary according to— that is, be contingent on—the individual and the environment situation; most practical because  it addresses problems on a case-by-case basis

Chapter 3

Triple Bottom Line – measures an organization’s social, environmental, and financial  performance.  

1) People

2) Planet

3) Profit

External Environment:

     General environment – set of broad dimensions and forces in an organization’s surroundings            that determine its overall context

     Task environment – composed of specific groups and organizations that affect the firm Internal Environment – conditions and forces within an organization

Internal Stakeholders:

1) Employees – work for the firm and have a vested interest in its continued operation and  existence

2) Owners – consist of all those who can claim the organization as their legal property

Principles of Management and Production

3) Board of Directors – members elected by the stockholders to see that the company is  being run according to their interests

The Task Environment: 

1) Customers – those who pay to use an organization’s goods or services 2) Competitors – people or organizations that compete for customers or for service 3) Suppliers – provides raw materials, services, equipment, labor, or energy to other  organizations

4) Distributors – a person or organization that helps another organization sell its goods and  services to customer

5) Strategic Allies – the relationship of two organizations who join forces to achieve  advantages neither can perform as well alone

6) Employee organizations – labor unions and professional associations

7) Local communities – may institute clawbacks: rescinding tax breaks when firms don’t  deliver promised jobs

May engage in crowdfunding: raising money for a project by obtaining many small  amounts of money from many people (the crowd)

8) Financial institutions – banks, savings and loans, and credit unions

9) Government regulators – regulatory agencies that establish ground rules under which  organizations may operate

10) Special-interest groups – groups whose members try to influence specific issues 11) Mass media – the power of print, radio, TV, and the Internet on an organization’s news,  both good and bad

The General Environment 

1) Economic forces – consist of the general economic conditions and trends:  unemployment, inflation, interest rates, economic growth

2) Technological forces – new developments in methods for transforming resources into  goods and services

3) Sociocultural forces – influences and trends originating in a country’s, a society’s, or a  culture’s human relationships and values that may affect an organization 4) Demographic forces – influences on an organization arising from changes in the  characteristics of a population, such as age, gender, or ethnic origin

5) Political-legal force – changes in the way politics shape laws and laws shape the  opportunities for and threats to an organization

6) International forces – changes in the economic, political, legal, and technological global  system that may affect an organization

Changing Environments – the rate at which a company’s general and specific environments  change

Stable – slow rate of change (incremental)

Dynamic – fast rate of change (discontinuous)

Mangers must address these 2 types!

Principles of Management and Production

Punctuated Equilibrium – view of industry evolution asserting that long periods of equilibrium  are punctuated by periods of rapid change when industry structure is revolutionized by  innovation

Three Elements of Environmental Uncertainty:

1) Environmental Complexity – number and the intensity of external factors in the  environment that affect organization  

     Simple – few environment factors that affect organizations

     Complex – many environmental factors that affect organizations

2) Resource Scarcity – the abundance or shortage of critical resources in an organization’s  external environment  

3) Environment Change – the environment is not only constantly changing and complex,  but the nature of the change is frequently difficult to predict.  

Two Methods to Deal with Uncertainty:

1) Collective information – marketing research (understanding customer needs and  preferences) and competitive intelligence (determine what competitors are doing) 2) Exerting control – over the situation; e.g. acquire other smaller enterprises to control  developing technology  

Opportunistic behavior – when one party benefits at the expense of another Relationship behavior – focuses on establishing a mutually beneficial, long-term relationship  between buyers and sellers

Ethics – standards of right and wrong that influence behavior. May vary among countries and  cultures, and it can also be different in the eye of the beholder.

Kohlberg’s Three Levels of Personal Moral Development:

1) Pre-conventional – follows rules to avoid unpleasant consequences

2) Conventional – follows expectations of others (most managers are at this level) 3) Post-conventional – guided by internal values, they lead by example  

Methods to Promote Ethics:

1) Creating a strong ethical climate

2) Screening prospective employees

3) Instituting ethics codes and training programs

4) Protecting whistle-blowers who report organizational misconduct  

Four Approaches to Deciding Ethical Dilemmas:

1) Utilitarian Approach – guided by what will result in the greatest good for the greatest  number of people; often associated with financial performance

2) Individual Approach – guided by what will result in the individual’s best long-term  interest, which ultimately is in everyone’s self-interest; assumes that people will act

Principles of Management and Production

ethically in the short run to avoid harm in the long run; flaw is one person’s short-term  gain may not be good for everyone in the long term

3) Moral-Rights Approach – guided by respect for the fundamental rights of human beings:  the right to life, liberty, privacy, health, safety, and due process (Bill of Rights) 4) Justice Approach – guided by respect for impartial standards of fairness and equity;  policies administered impartially and fairly regardless of gender, age, sexual orientation,  and the like

Values – relatively permanent and deeply held underlying beliefs and attitudes that help  determine a person’s behavior

1) Shared – people within the organization or work unit have in common and place near  the top of their hierarchy of values (part of culture)

2) Espoused – people say they use and in many cases, think they use even if they don’t 3) Enacted – people actually rely on to guide their directions and actions

Social Responsibility – manager’s duty to take actions that will benefit the interests of society as  well as of the organization

1) Sustainability – economic development that meets the needs of the present without  compromising the ability of future generations to meet their own needs

2) Natural Capital – the value of natural resources, such as topsoil, air, water, and genetic  diversity, which humans depend on

3) Philanthropy – making charitable donations to benefit humankind

Arguments FOR Social Responsibility:

1) Business creates problems and should therefore help solve them

2) Corporations are citizens in our society

3) Business often has the resources necessary to solve problems

4) Business is a partner in our society, along with the government and the general  population

Arguments AGAINST Social Responsibility:

1) The purpose of business in US society is to generate profit for owners 2) Involvement in social programs gives business too much power

3) There is potential for conflicts of interest

4) Business lacks the expertise to manage social programs

Chapter 5

Planning – setting goals and deciding how to achieve them; coping with uncertainty by  formulating future courses of action to achieve specified results; document that outlines how  goals are going to be met

Pros of Planning:

1) Intensified effort

2) Persistence

3) Direction

4) Creation of task strategies

Principles of Management and Production

5) Provides direction and purpose

6) Helps to allocate resources

7) Helps budgeting processes

8) Assigns roles and responsibilities

9) Provides control over the organization

Cons of Planning:

1) Impedes change and prevents or slows adaptation

2) Creates false sense of certainty

3) Detachment of planners

Strategic Management – process that involves managers from all parts of the organization in  the formulation and the implementation of strategies and strategic goals; comprehensive and  ongoing process to approach business opportunities and challenges

Three Reasons Why Planning and Strategic Management Are Important:

1) Providing direction and momentum

2) Encouraging new ideas

3) Developing a sustainable competitive advantage  

Competitive Advantage – the ability of an organization to produce goods or services more  effectively than its competitors do, thereby outperforming them

Sustainable Competitive Advantage – occurs when an organization is able to get and stay ahead  in four areas:

1) Being responsive to customers

2) Innovating

3) Quality

4) Effectiveness

VRIO – framework for analyzing a resource or capability to determine its competitive strategic  potential by answering four questions about its Value, Rarity, Imitability, and Organization. Valuable Resource – allows companies to improve efficiency and effectiveness Rare Resource – not controlled or possessed by many competing firms

Imperfectly Imitable Resource – impossible or extremely difficult for other firms to duplicate Non-substitutable Resource – produces value and has no equivalent substitutes

Three Types of Planning:

1) Strategic Planning (1-5 years) – make long-term decisions about overall direction of  organization. Managers need to pay attention to environment outside the organization,  be future oriented, deal with uncertain and highly competitive conditions.  

2) Tactical Planning (6-24 months) – implement policies and plans of top management,  supervise and coordinate activities of first-line managers below, make decisions often  without base of clearly defined information procedures

Principles of Management and Production

3) Operational Planning (1-52 weeks) - direct daily tasks of nonmanagerial personnel;  decisions often predictable, following well-defined set of routine procedures

Planning horizon – refers to how far out a plan is meant to apply

Strategic plans – multi-year

Organizational threats – might require short term plans  

Operating & Unit plans – shorter time horizons than strategic ones

Goals (objectives) – target or end (long or short term) that management desires to reach;  developed with creativity and be dynamic, encourages managers to think broadly, and should  span all major organization areas.

Four Categories:

1) Profit oriented

2) Service oriented

3) Employee well-being

4) Social responsibility

Contingency Plans – plans formulated to address specific possible future events that might have  a significant impact on the organization (crisis management planning and scenario planning)

SMART Goals:

Specific

Measurable

Attainable

Results-Oriented (Relevant)

Target Dates (Timely)

Management by Objectives (MBO) – four step process

1) Managers and employees jointly set objectives for the employee.

2) Managers develop action plans.

3) Managers and employees periodically review the employee’s performance. 4) Managers make a performance appraisal and reward the employee according to results.

Cascading Goals – making lower-level goals align with top goals.

For MBO goal-setting to be successful, the following three things have to happen: 1) Top management must be committed to it.

2) Goals must be applied organization-wide.

3) Goals must “cascade”—be linked consistently down through the organization

The Planning/Control Cycle:

Planning:

1) Make the plan

2) Carry out the plan

Control

Principles of Management and Production

3) Control the direction by comparing the results with the plan

4) Control the direction in two ways:

a. By correcting deviations in the plan being carried out (return to step 2) b. By improving future plans (go to step 1 to start over)

Importance of control: monitor actual performance of employees against the goals and plans Proximal goals – short-term goals or sub-goals

Distal goals – long-term or primary goals

Options-based planning – keep options open by making small simultaneous investments in  many alternative plans

Slack resources – a cushion of resources, like extra time or money, that can be used to address  and adapt to unanticipated changes

Chapter 6

Strategy – comprehensive plan of action for accomplishing an organization’s goals; occurs at  multiple organizational levels

Strategic Management – process that involves managers from all part of the organization in the formulation and the implementation of strategies and strategic goals

For most organizations, superior performance requires high profitability and growth in profits  over time.  

Corporate-level strategy – includes decisions about how to enter new businesses and  markets—either mergers and acquisitions or new ventures.  

The goals of these strategies is to boost overall performance.

Answers the question: “What business or businesses are we in or should we be in?”

Five Step Corporate Level Strategic-Management Process:

1) Establish the mission vision and values statement

2) Assess the current reality

3) Formulate the grand strategy

4) Implement the strategy

5) Maintain strategic control

Strategic needs should be consistent with the organization’s mission, vision, and values. Mission – an organization’s basic purpose and scope of operations; should describe ends, not     means, imply effort, activity, be unique and brief

Strategic vision – the long term direction and strategic intent of a company that points to the     future; should inspire organizational employees offering a worthwhile target to achieve     together

Principles of Management and Production

Value – the philosophical properties to which management is committed; should provide the     reasoning for action

SWOT Analysis:

Inside matters:

     Strengths

     Weaknesses

Outside matters:

     Opportunities

     Threats

Grand Strategy – comes after assessing the current reality; explains how the organization’s  mission is to be accomplished

1) Growth Strategy – involves expansion, as in sales revenues, market share, number of  employees, or number of customers

2) Stability – involves little or no significant change

3) Defensive – involved reduction in the organization’s efforts; retrenchment  

Corporate-Level Strategic Choices:

1) Single-product strategy (simplicity) – company makes and sells only one product within  its market; makes sense if a firm is growing rapidly and taking all the time of its  managers

2) Related diversification (synergy) – operating several related businesses in order to  spread risk

3) Unrelated diversification (risk/return) – operating several unrelated businesses in order  to spread the risk  

Vertical integration – firm expands into businesses that provide the supplies it needs to make  its products or that distribute and sell its products  

Why does diversification happen?

It boosts performance by leveraging distinctive competencies.  

It also creates a competitive advantage in a new business by using the competencies that     enabled the original business to gain a competitive advantage  

However, research demonstrates varying levels of risk depending on the type of diversity    implemented.

The BCG Matrix  

Stars – have high growth, high market share—definite keepers

Cash Cows – have slow growth but high market share—income finances stars and question  marks

Question Marks – risky new ventures—some will become stars, some dogs Dogs – have low growth, low market share—should be gotten rid of

Principles of Management and Production

Blue Ocean Strategy – company creates a new, uncontested market space that makes  competitors irrelevant, creates new consumer value, and decreases costs.  “Competing in overcrowded industries is no way to sustain high performance. The real  opportunity is to create blue oceans of uncontested space.”

Strategy is selected based on two perspectives:

1) Risk-avoidance – aims to protect an existing competitive advantage

2) Risk-seeking – aims to extend or create a sustainable competitive advantage

Strategy implementation – putting strategic plans into effect; means dealing with roadblocks  within the organization’s structure and culture and seeing if the right people are available to  execute the plans  

Porter’s Five Competitive Forces – contends that business-level strategies originate in five  primary competitive forces (threats) in the firm’s external task environment 1) Threat of New Entrants

2) Bargaining Power of Suppliers

3) Threat of Substitute Products or Services  

4) Bargaining Power of Buyers

5) Rivalry Among Existing Competitors  

Barriers to entry – factors that make it costly for potential competitors to enter an industry and  compete with firms already in the industry

Barriers to exit – stops firms from reducing capacity even when demand is weak and excess  capacity exists  

Strategic Positioning – attempts to achieve sustainable competitive advantage by preserving  what is distinct about a company

Three Key Principles:

1) Strategy is the creation of a unique and valuable position

2) Strategy requires trade-offs in competing

3) Strategy involves creating a “fit” among activities  

Porter’s Four Competitive Strategies:

1) Cost-leadership strategy – keep the costs, and hence prices, of a product or service  below those of competitors and target a wide market

2) Cost-focus strategy – keep the costs of a product below those of competitors and to  target a narrow market

3) Differentiation strategy – offers products that are of unique and superior value  compared to those of competitors but to target a wide market

4) Focused-differentiation strategy – offers products that are of unique and superior value  compared to those of competitors and to target a narrow market

Principles of Management and Production

Adaptive Strategies – an industry-level strategy that is best suited to changes in the  organization’s external environment

1) Defenders – seek moderate, steady growth by offering a limited range of products and  services to a well-defined set of customers

2) Prospectors – seek fast growth by searching for new market opportunities, encouraging  risk taking, and being the first to bring the innovative new products to market 3) Analyzers – blend the defending and prospecting strategies

4) Reactors – do not follow a consistent strategy and tend to poorer performers than  defenders, prospectors, or analyzers  

Functional-Level Strategy – strategies implemented by each functional area of the organization  to support the organization’s business level strategy

Developed by functional area executives with input of and approval from the executives  responsible for business level strategy.

Answers the question: “How do we handle specific functions in our industry?”

The Three Core Processes of Business – a company’s overall ability to execute is a function of  effectively executing according to three process:

1) People – consider who will benefit you in the future

2) Strategy – consider how success will be accomplished

3) Operations – consider what path will be followed

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