Chapter 2 & 3 Notes
Chapter 2 & 3 Notes 3013
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This 12 page Class Notes was uploaded by Katie Gallagher on Thursday January 14, 2016. The Class Notes belongs to 3013 at Oklahoma State University taught by Ryan Greenbaum in Spring 2016. Since its upload, it has received 25 views. For similar materials see Fundamentals of Management Information Systems in Business, management at Oklahoma State University.
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Date Created: 01/14/16
Chapter 2 01/20/2016 ▯ Management Theory Essential Background for the Successful Manager ▯ ▯ Two Overarching Perspectives about Management Historical Perspective o Classical, behavioral, and quantitative Contemporary Perspective o Systems, contingency, and quality-management ▯ ▯ Scientific Management: Pioneered by Taylor & the Gilbreths Scientific management o Emphasized the scientific study of work methods to improve the productivity of individual workers Frank and Lillian Gilbreth Frederick W. Taylor Eliminate soldiering Differential Rate Scale Principles of Scientific Management o Scientifically study each part of the task o Carefully select workers with the right abilities o Give workers the training and incentives to do the task o Use scientific principles to plan the work methods ▯ ▯ Administrative Management: Pioneered by Fayol & Weber Administrative Management o Concerned with managing the total organization Henri Fayol o French engineer and industrialist o First to identify the major functions of management Max Weber believed that a bureaucracy was a rational, efficient, ideal organization based on the principles of logic ▯ Five Positive Bureaucratic Features o A well defined hierarchy of authority o Formal rules and procedures o A clear division of labor o Impersonality o Careers based on merit ▯ Why the Classical Viewpoint is Important? o Work activity was amenable to a rational approach o Through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity The Problem with the Classical Viewpoint o Mechanistic o Tends to view humans as cogs within a machine, not taking into account the importance of human needs ▯ ▯ Behavioral Viewpoint: Behaviorism, Human Relations, and Behavioral Sciences Behavioral viewpoint o Emphasized the importance of understanding human behavior and of motivating employees toward achievement The Behavioral Viewpoint developed over three phases o Early behaviorism o The human relations movement o Behavioral sciences ▯ ▯ Early Behaviorism: Pioneered by Munsterberg, Follett, and Mayo Hugo Munsterberg o Father of industrial psychology o Study jobs and determine which people are best suited to specific jobs o Identify the psychological conditions under which employees do their best work o Devise management strategies to influence employees to follow management’s interests Mary Parker Follett o Social worker and social philosopher o Organizations should be operated as “communities” o Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties o The work process should be under control of workers with relevant knowledge Hawthorne Effect o Employees worked harder if they received added attention, thought that managers cared about their welfare and that supervisors paid special attention to them o Elton Mayo ▯ ▯ The Human Relations Movement: Pioneered by Maslow & McGregor Human Relations Movement o Proposed that better human relations could increase worker productivity o Basic idea: the better you treat people, the better they will work o Abraham Maslow and Douglas McGregor o Maslow’s Hierarchy of Needs Self-actualization Esteem Social Safety Physiological o Douglas McGregor- Theory X versus Theory Y Theory X Represents a pessimistic, negative view of workers Workers are irresponsible, resistant to change, lack 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 Why It’s Important Helps managers understand how their beliefs affect their behavior Managers can be more effective by considering how their behavior is shaped by their expectations about human nature ▯ ▯ The Behavioral Science Approach Behavioral science o Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers ▯ ▯ Management Science: Using Mathematics to Solve Management Problems Management Science o Stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning Operations Research Linear Programming o *Mgmt Science=math/science o *Scientific Mgmt=tasks/indiv. ▯ Operations Management Focuses on managing the production and delivery of an organizations products or services more effectively Work scheduling, production planning, facilities location and design ▯ ▯ Systems Viewpoint Systems viewpoint o Regards the organization as a system of interrelated parts o Collection of subsystems o Part of the larger environment Open System o Continually interacts with it’s environment Closed System o Has little interaction with it’s environment ▯ ▯ Complexity Theory: The Ultimate Open System Complexity theory o The study of how order and pattern arise from very complicated, apparently chaotic systems o Recognizes that all complex systems are networks of many interdependent parts that interact with each other according to certain simple rules ▯ ▯ Contingency Viewpoint Contingency Viewpoint o Emphasizes that a manager’s approach should vary according to the individual and the environmental situation o Most practical because it addresses problems on a case-by- case basis Flexibility is a key to being successful Evidence Based Management: Facing Hard Facts, Rejecting Nonsense Evidence based management o Translating principles based on best evidence into organizational practice, bring rationality to the decision making process o Pfeffer and Sutton ▯ ▯ Quality Control & Quality Assurance Quality o Total ability of a product or service to meet customer needs Quality Control o The strategy for minimizing errors by managing each stage of production Quality Assurance o Focuses on the performance of workers, urging employees to strive for “zero defects” Total Quality Management o Comprehensive approach-led by top management and supported throughout the organization dedicated to continuous quality improvement, training, and customer satisfaction ▯ ▯ The Learning Organization: Handling Knowledge and Modifying Behavior Learning organization o Organization that actively creates, acquires, and transfers knowledge within itself and is able to modify it’s behavior to reflect new knowledge ▯ ▯ How to Build a Learning Organization: Three Roles Managers Play Build a commitment to learning Work to generate ideas with impact Work to generalize ideas with impact ▯ ▯ ▯ Chapter 3 01/21/2016 ▯ The Manager’s Changing Work Environment & Ethical Responsibilities ▯ The Triple Bottom Line: People, Planet, & Profit Triple bottom line o Representing People, Planet, and Profit o Measures an organization’s social, environmental, and financial performance Social Audit o A systematic assessment of a company’s performance in implementing socially responsible programs o Often based on predefined goals ▯ ▯ The Community of Stakeholders Inside the Organization Stakeholders o The people whose interests are affected by an organization’s activities o Internal, external Internal Stakeholders Consist of employees, owners, and the board of directors Owners Consist of all those who can claim the organization as their legal property Board of Directors Members elected by the stockholders to see that the company is being run according to their interests Set overall strategic organizational goals Set salaries for top CEO’s o The Community of Stakeholders Outside the Organization External Stakeholders People or groups in the organization’s external environment that are affected by it Task, general environment ▯ The Task Environment Customers o Those who pay to use an organization’s goods or services Competitors o People or organizations that compete for customers or services Supplier o A person or organization that provides raw materials, services, equipment, labor or energy to other organizations Distributor o A person or organization that helps another organization sell it’s goods and services to customers Strategic Allies o Describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone Clawbacks o Rescinding the tax breaks when firms don’t deliver promised jobs Crowdfunding o Raising money for a project or venture by obtaining many small amounts of money from many people Government Regulators o Regulatory agencies that establish ground rules under which organizations may operate Special Interest Groups o Groups whose members try to influence specific issues Employee Organizations: Unions & Associations Local Communities Financial Institutions Mass Media The General Environment Economic Forces o Consist of the general economic conditions and trends- unemployment , inflation, interest rates, economic growth- that may affect an organization’s performance Technological Forces o New development in methods for transforming resources into goods and services Sociocultural Forces o Influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect an organization Demographic Forces o Influences on an organizations arising from changes in the characteristics of a population, such as age, gender, or ethnic origin Political Legal Forces o Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization International Forces o Changes in the economic, political, legal, and technological global system that may affect an organization ▯ Defining Ethics & Values Ethics o Standards of right and wrong that influence behavior Values o Relatively permanent and deeply help underlying beliefs and attitudes that help determine a person’s behavior Financial values Individual values o Organizations may have two value systems that conflict: The value system stressing financial performance versus The value system stressing cohesion and solidarity in employee relationships ▯ ▯ The Ethical Responsibilities Required of You as a Manager Ethical dilemma o Situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal Four Approaches to Deciding Ethical Dilemmas o Utilitarian Guided by what will result in the greatest good for the greatest number of people o Individual Guided by what will result in the individuals best long term interest, which ultimately are in everyone’s self- interest o Moral-Rights Guided by respect for the fundamental rights of human beings Privacy, health, safety o Justice Guided by respect for impartial standards of fairness and equity ▯ ▯ The Sarbanes-Oxley Reform Act Sarbanes-Oxley of 2002 o Often shortened to SarbOx or SOX, established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance ▯ ▯ How do people learn Ethics? Kohlberg’s Theory Level 1, preconventional- follows rules o Lower level managers Level 2, conventional- follows expectations of others o Concerned with cooperation & harmony Level 3, postconventional- guided by internal values o Leading and empowering others o Only about 1/5 of managers reach this stage *Don’t pass through these stages, people are at different levels ▯ ▯ How Organizing Can Promote Ethics Creating of a Strong ethical climate Screening prospective employees Instituting ethics codes and training programs Rewarding ethical behavior: protecting whistle-blowers o Whistle-blower: an employee, or even an outside consultant, who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers ▯ ▯ The Social Responsibilities Required of You as a Manager Social Responsibility o Managers duty to take actions that will benefit the interests of society as well as of the organization Corporate Social Responsibility o Notion that corporations are expected to go above and beyond following that law and making a profit Philanthrophy “Not Dying Rich” o Making charitable donations to benefit humankind ▯ ▯ Corporate Governance Corporate Governance o The system of governing a company so that the interests of corporate owners and other stakeholders are protected o Saving many from the follies of few o Governance is becoming stronger to ensure clear separation of authority ▯ ▯
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