MAN3025 Week 1 Notes
MAN3025 Week 1 Notes MAN3025
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This 17 page Class Notes was uploaded by Andi Notetaker on Wednesday January 20, 2016. The Class Notes belongs to MAN3025 at University of Florida taught by Lindy Archambeau in Summer 2015. Since its upload, it has received 59 views. For similar materials see Principles of Management in Business at University of Florida.
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Date Created: 01/20/16
1.11.16 Class Notes Challenge 1: Managing for Competitive Advantage Competitive Advantage -Ability of one organization to outperform others o Produces desired goods/services more efficiently and effectively -4 Building Blocks o Responsiveness to customers, innovation, efficiency, quality -Best companies manage to deliver on more than one pillar of advantage Challenge 2: Managing for Diversity Changing nature of the workforce -More women are working than ever before -The workforce will continue to get older (baby boomers) -The number of immigrants has increased -Ethnic and racial diversity is increasing Impact of cultural diversity -Diversity in the News—Silicon Valley under fire -Changes in workforce composition Diversity affects all of the managerial functions but primarily “leading” -Synergy challenge o Have what we need to have all the workers understand each other and work well together -Diversity can create positive and negative conflict o Can facilitate creative problem-solving o Can close down communication o Can derail group processes Managers must minimize destructive conflict and maximize diversity of input Challenge 3:Managing for Globalization Globalization: The worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy Four trends are important -1) The Changing World Output and World Trade Picture -2) The Changing Foreign Direct Investment Picture -3) The Changing Nature of the Multinational Enterprise -4) The Changing World Order Managing an international business differs from managing a domestic business because -Countries are different -The range of problems confronted in an international business is wider and the problems more complex than those in a domestic business -Firms have to find ways to work within the limits imposed by government intervention in the international trade and investment system -Managers need to manage diverse workforce as well as coordinating resources worldwide Challenge 4: Managing for Information Technology Information technology has facilitated e-business, using the Internet to facilitate every aspect of a running business Accelerated decision making Changes in organizational structure, jobs and goal setting -Role of knowledge management Increased the speed of globalization Challenge 5: Managing for Ethical Standards Ethics: Standards of right and wrong that influence behavior Managers are under considerable pressure to make the best use of resources Too much pressure may induce managers to behave unethically, and even illegally -WalMart under investigation about using bribery and other means to facilitate their expansion outside of the United States Challenge 6: Managing for Sustainability Sustainability: Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs The Long and Winding Road -Pollution (1945-1960s) o Denial o “Smell of money” (oblivious) -End-of-pipe regulation (1970-80s) o “Pay to reduce negative impact” (trade off) -Greening (Mid 1980s-1990s) o Pollution prevention o Product stewardship “eco-efficiency” (win-win) -Beyond Greening (2000’s-Present) o Clean technology o Base of the pyramid “eco-effectiveness” (positive force) Challenge 7: Managing Your Own Happiness/Goals Professional life can bleed into personal life Important to find balance between work and life Four Principal Functions of Management Planning -Set goals and decide how to achieve them Organizing -Arrange tasks, people, and other resources to accomplish the work Leading -Motivate, direct, and otherwise influence people to work hard to achieve the organization’s goals Controlling -Monitor performance, compare it with goals, and take corrective action as needed Management Levels Top Managers -CEO, CMO, Vice President of Administration -Determine the mission of the organization (the “vision”) -Put together the overall outlook of who the company is and where it is going -Most concerned with the planning and organizing aspects Middle Managers -Business Unit Head (General Manager, Administrator) Department Manager (Product Line, Service Manager, Information Service Manager) -Implement what the boss’s goals are -How to use the resources that are at their disposal First-Line Managers -Functional Head (Production, Sales, IT, R&D, Accounting Supervisor) -People actually doing the work -Spend the most time leading the people they are in charge of Team Leaders -Line jobs or staff -Self appointed or appointed by their managers -Make sure the team is working effectively to reach goals What Managers Actually Do Interaction -With others -With the organization -With the external context of the organization Reflection -Thoughtful thinking Action -Practical doing Roles: Managers Must Play According to Mintzberg: 1) A manager relies more on verbal than on written communication 2) A manager works long hours at an intense pace 3) A manager’s work is characterized by fragmentation, brevity, and variety Interpersonal Roles: Roles that managers assume to provide direction and supervision to both employees and the organization as a whole -Figurehead: symbolizing the organization’s mission and what it is seeking to achieve -Leader: training, counseling, and mentoring high employee performance -Liaison: linking and coordinating the activities of people and groups both inside and outside the organization Informational Roles: Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization -Monitor: analyzing information from both the internal and external environment -Disseminator: transmitting information to influence the attitudes and behavior or employees -Spokesperson: using information to positively influence the way people in and out of the organization respond to it Decisional Roles: Roles associated with methods managers use in planning strategy and utilizing resources -Entrepreneur: decision which new products or programs to initiate and to invest resources in -Disturbance Handler: managing an unexpected event or crisis -Resource Allocator: assigning resources between functions and divisions, setting the budgets of lower managers -Negotiator: reaching agreements between other managers, unions, customers, or shareholders Skills Exceptional Managers Need Technical Skills: The job-specific knowledge needed to perform well in a specialized field Conceptual Skills: The ability to think analytically, to visualize an organization as a whole and understand how the parts work together Human Skills: The ability to work well in cooperation with other people to get things done 1.13.16 Class Notes The Entrepreneurial Spirit Entrepreneurship: Strategic thinking and risk-taking behavior that results in the creation of new opportunities for individuals and/or organizations Entrepreneur: Someone who stats their own business Intrapreneur: Someone inside an existing organization that see an opportunity and mobilizes the resources to realize it How Do Entrepreneurs and Managers Differ? Being an entrepreneur is what it takes to start a business Being a manager is what it takes to grow and maintain a business Transformation of Management Roles and Activities First Line Managers -Changing Roles: Operational implementers to aggressive entrepreneur -Key Activities: Creating new growth/process opportunities, attracting and developing resources, managing continuous improvement Middle Managers -Changing Roles: Administrative controllers to supportive coaches -Key Activities: Developing/supporting individuals, link dispersed knowledge and skills, managing tension Top-Level Managers -Changing Roles” Resource allocations to institutional leaders -Key Activities: Establishing high standards, institutionalizing set of norms/values to enhance cooperation, creating overachieving corporate purpose and ambition Management Does Not Happen in a Vacuum Social Forces: Influence of culture that guides people and relationships Political Forces: Influence of political and legal institutions Economic Forces: The availability, production, and distribution of resources As the environment changes so does the need for ever evolving management practices Theory’s Role in the Management of Evolution Theory: A conceptual framework for organizing knowledge and providing a blueprint for action Any company that uses assembly lines is drawing on theories driven by scientific management Companies that have policies to improve employee satisfaction and motivation draw from research done in the behavioral perspective Companies like Target or Publix use quantitative management perspectives such as operation management to manage and monitor how many check-out lines should be open Two Overarching Perspectives about Management Historical Perspective -Classical, behavioral, and quantitative Contemporary Perspective -Systems, contingency, and quality-management Classical Viewpoint Emerged during the nineteenth and early twentieth centuries -Rise of the factory system -Issues regarding structure, training, and employee satisfaction Large, complex organizations required new approaches to coordination and control Two subfields: scientific management, and administrative management Scientific Management: Taylor and the Gilbreths -Scientifically study each part of the task -Carefully select workers with the right abilities -Give workers the training and incentives to do the task -Use scientific principles to plan the work methods -Improve efficiency and labor productivity through scientific methods -Management decisions would be based on precise procedures based on study o Henry Gnatt developed the Gnatt Chart to measure and plan work o The Gilbreths pioneered time and motion studies to promote efficiency -General Approach o Developed standard method for performing each job o Selected workers with appropriate abilities for each job o Trained workers in standard methods o Supported works by planning their work and eliminating interruptions o Provided wage incentives for increased output -Contributions o Demonstrated importance of compensation for performance o Initiative careful study of tasks/jobs o Demonstrated importance of personnel selection and training -Drawbacks o Influence of social context of work and higher needs of workers o Does not acknowledge variance among individuals o Tended to regard workers as drones Administrative Management: Henri Fayol -Focused on the entire organization -Identified five functions of management: planning, organizing, commanding, coordinating, and controlling -14 general principles of management; many still used today o Unity of command o Division of work o Unity of direction o Scalar chain -Max Weber o German Sociologist o Rationality of Bureaucracy -Well-defined hierarchy of authority -Formal rules and procedures -A clear division of labor -Impersonality -Careers based on merit -General Approach o Separation of management and ownership o Clearly defined hierarchy o Formal recordkeeping -Contributions o Managers subject to rules and procedures that ensure reliable, predictable behavior o Hierarchical division of labor through organizational structure -Power drives outcome not personality o Importance of technical qualification -Merit based advancement -Drawback o Too mechanistic Behavioral Viewpoint Emphasized the importance of understanding human behavior and of motivating employees toward achievement Developed over three phased: -Early behaviorism -The human relations movement -Behavioral science Early Behaviorism -Hugo Munsterberg (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 (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 (Elton Mayo) 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 Scientific methods + sociology, psychology, anthropology, economics… Human Relations Movement -Proposed that better human relations could increase worker productivity -Abraham Maslow’s Hierarchy of Needs o Self-Actualization o Esteem o Social (love) o Safety o Physiological -Douglas McGregor’s Theory X vs. Theory Y o Theory X -Average human has an inherent dislike of work and will avoid if possible -Most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth effort toward the achievement of organizational objectives -Average human prefers to be directed, wishes to avoid responsibility, has relatively little ambitions, and wants security above all o Theory Y -Expenditure of physical and mental effort in work is as natural as play or rest -Average human does not inherently dislike work -A person will exercise self-direction and self-control in the service of objectives to which he or she is committed -Average human learns, under proper conditions, not only to accept but to seek responsibility -The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution or organizational problems is widely distributed in the population -Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized General Approach -Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers Contributions -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 behavior -It is critical to recognize the human relations behind a company Drawbacks -Nature versus nurture argument -Generalization is an issue Quantitative Viewpoint Quantitative management -Application to management of quantitative techniques, such as statistics and computer simulations -Management science, operations management Management science -Stresses the use of rational, science-based techniques and mathematical models to improve decision-making and strategic planning Operations management -Focuses on managing the production and delivery of an organization’s products or services more effectively -Work scheduling, production planning, facilities location and design General Approach -Use of mathematical modeling to find the best solutions to problems Contributions -Rational, science based techniques/models to improve planning and decision-making -Rational management of resources and distribution of goods/services focuses on efficiency and effectiveness -Directly to manager decision making in the areas of planning and control Drawback -Not suited for every industry -Human element—not always predictable System Viewpoint A system is a set of interrelated parts that function as a while to achieve a common purchase Subsystems are parts of the system that are all interconnected -The ability to see the distinct elements of a situation as well as the complexities The relationship among the parts form the whole system -Can be open (interacts with environment) or closed (doesn’t) -Synergy—the whole is greater than the sum of its parts Four parts of a system -Inputs -Transformational processes -Outputs -Feedback Contingency Viewpoint Guided by the general orienting hypothesis that organizations whose internal features best match the demands of their environments will achieve the best adaptation Emphasizes that a manager’s approach should vary according to the individual and the environmental situation Most practical because it addresses problems on a case-by-case basis Effective management styles and organizational structures are influenced by various aspects of the environment: the contingency factors -Situational based determinants drive effectiveness CHAPTER 1 SMARTBOOK NOTES Organization: a group of people who work together to achieve some specific purpose Management: (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization’s resources -Efficiency: “the means” use resources—people, money, raw materials—wisely and cost-effectively -Effectiveness: “the ends” achieve results, to make the right decisions and to successfully carry them out so that they achieve the organizations goals Management Process (four management functions): planning, organization, leading, and controlling “POLC” -All the functions affect one another, are ongoing, and are preformed simultaneously -Planning: setting goals and deciding how to achieve them -Organizing: arranging tasks, people, and other resources to accomplish the work -Leading: motivating, directing, and otherwise influencing people to work hard to achieve the organization’s goals -Controlling: monitoring performance, comparing it with goals, and taking corrective action as needed Competitive Advantage: ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them -Organization must stay ahead in four areas: (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency Diversity: managers need to maximize the contributions of employees of different genders, races, ethnicities, and age groups Globalizations: be aware that hand gestures and phrases mean different things in different places and need to be monitored when in use Internet: global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world -E-commerce: buying and selling of goods or services over computer networks -E-business: using the Internet to facilitate every aspect of running a business -Cloud computing: sorting of software and data on gigantic collections of computers located away from a company’s principal site -Artificial Intelligence (AI): discipline concerned with creating computer systems that simulate human reasoning and sensation Sustainability: economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs Types of Managers Top Managers: make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it (top of management pyramid) -Pay a lot of attention to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them -Must be future oriented, dealing with uncertain, highly competitive conditions Middle Managers: implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them -Salaries range from $45,000 to $120,000 per year -“High touch” jobs: dealing with people rather than computer screens or voice-response systems that can directly affect employees, customers, and suppliers First-Line Managers: make short-term operating decisions, directing the daily tasks of non-managerial personnel -Authority to hire and fire, controls resources, and is responsible for the teams’ performance Team Leaders: manager who is responsible for facilitating team activities toward achieving key results -May not have authority over other team members, but they are expected to (1) provide guidance, instruction, and direction to the others (2) coordinate team efforts (3) resolve conflicts (4) represent the team to the first-level manager (5) make decisions in the absence of consensus Functional Managers: responsible for just one organizational activity -EX. Vice President of Production, Director of Finance, Administrator for Human Resources General Managers: responsible for several organizational activities -Mainly used in smaller organizations Types of Organizations For-Profit Organizations: formed to make money, or profits, by offering products or services Nonprofit Organizations: offer services to some clients, not to make profit (public or private sector) Mutual-Benefit Organizations: voluntary collections of members who’s purpose is to advance members’ interests -Political parties, farm cooperatives, labor unions, trade associations, and clubs Managerial Skills Technical Skills: consist of the job-specific knowledge needed to perform well in a specialized field Conceptual Skills: consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together Human Skills: consist of the ability to work well in cooperation with other people to get things done -Soft Skills: the ability to motivate, to inspire trust, to communicate with others Managerial Roles Interpersonal Roles: managers interact with people inside and outside their work units -Figurehead: perform symbolic tasks that represent your organization (show visitors around, attend employee birthday parties, present ethical guidelines to subordinates) -Leadership: responsible for the actions of your subordinates, their successes and failures reflect on you -Liaison: act like a politician, working with other people outside your work unit and organization to develop alliances that will help you achieve your organization’s goals Informational Roles: managers receive and communicate information with other people inside and outside the organization -Monitor: constantly alert for useful information, whether gathered from newspaper about competition or from bits of conversation with subordinates in the hallway -Disseminator: relay important information to employees, via e-mail and meetings -Spokesperson: Be a diplomat, put your best face on the activities of your work unit or organization to the people outside it Decisional Roles: managers use information to make decisions to solve problems or take advantage of opportunities -Entrepreneur: initiate and encourage change and innovation -Disturbance Handler: fixing problems -Resource Allocator: setting priorities about use of resources -Negotiator: working with others inside and outside the organization to accomplish your goals Entrepreneurship: process of taking risks to try to create a new enterprise -Entrepreneur: someone who sees a new opportunity for a product of services and launches a business to try to realize it -Intrapreneur: someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization’s resources to try to realize it Internal Locus of Control: belief that you control your own destiny and that external forces have little influence External Locus of Control: belief that you don’t control your own destiny but that external forces do CHAPTER 2 SMARTBOOK NOTES Peter Drucker -Creator and inventor of modern management -Practice of Modern Management -Proposed that management was one of the major social innovations of the 20 century and that it should be treated as a profession 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 (Fredrick W. Taylor, Frank and Lillian Gilbreth) o Motion studies: broke down each workers job into physical motions and then trained workers to use the methods of their best-performing coworkers o Differential rate system: more efficient workers earned higher wages o Soldiering: deliberately working at less than full capacity -Administrative Management: concerned with managing the total organization (Henri Fayol, Max Weber) o A well-defined hierarchy of authority o Formal rules and procedures o A clear division of labor, with parts of a complex job being handled by specialists o Impersonality, without reference or connection to a particular person o Careers based on merit -Problem with this viewpoint is that it is too mechanistic and tends to view humans as cogs within a machine, not taking into account the importance of human needs Behavioral Viewpoint (1913-1950s): emphasis on importance of understanding human behavior and motivating and encouraging employees toward achievement -Early Behaviorists: (Hugo Munsterberg, Mary Parker Follett, Elton Mayo) o Munsterberg: (1) Study jobs and determine which are best suited to specific jobs (2) identify the psychological conditions under which employees do their best work (3) devise management strategies to influence employees to follow management’s interests (ideas led to the field of industrial psychology: study of human behavior) o Follett: (1) Organizations should be operated as “communities” working in harmony (2) conflicts should be resolved by having managers and workers talk over differences and find solutions to satisfy both parties (integration) (3) work process should be under the control of workers with the relevant knowledge with managers acting as facilitators (first to have members of different departments working together on joint projects) o Mayo: “Hawthorne effect” began with a study of whether lighting level affected worker productivity but later showed that employees work harder if they receive added attention, if they thought that mangers cared about their welfare and that supervisors paid special attention to them (drew attention to how managers using good human relations could improve worker productivity) -Human Relations Movement: proposed better human relations could increase worker productivity (Abraham Maslow, Douglas McGregor) o Maslow: “Hierarchy of human needs” including physiological, safety, love, esteem, and self-actualization o McGregor: “Theory X” represents a pessimistic, negative view of workers and “Theory Y” represents an optimistic, positive view of workers (helps managers understand how their beliefs effect their behavior) -Behavioral Science Approach: relies on scientific research for developing theory to provide practical management tools (disciplines include psychology, sociology, anthropology, and economics) Quantitative Viewpoint (1940s-1950s): applies quantitative techniques to management -Management Science: focuses on using mathematics to aid in problem solving and decision-making (stresses the use of rational, science- based techniques and mathematical models to improve decision making and strategic planning) -Operations Management: focuses on managing the production and delivery of an organization’s products and services more effectively and is concerned with work scheduling, production planning, facilities location and design, and optimum inventory levels (helps ensure that business operations are efficient and effective through rational management of resources and distribution of goods and services) Contemporary Perspective (1960s-present) The Systems Viewpoint: regards the organization as systems of interrelated parts that operate together to achieve a common purpose -Subsystems: parts making up the whose system -Four Parts of a System o Inputs: people, money, information, equipment, and materials required to produce an organization’s goods or services o Transformational Processes: organization’s capabilities in management and technology that are applied to converting inputs into outputs o Outputs: products, services, profits, losses, employee satisfaction or discontent, produced by the organization o Feedback: information about the reaction of the environment to the outputs, which affects the inputs -Open System: continually interacts with its environment -Closed System: has little interaction with its environment (very little feedback from outside) -Complexity Theory: study of how order and pattern arise from very complicated, apparently chaotic systems (understand how organizations adapt to their environments) The Contingency Viewpoint: emphasizes that a manager’s approach should vary according to the individual and environmental situation -Evidence-Based Management: translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process The Quality-Management Viewpoint: includes quality control, quality assurance, and total quality management, and has a large impact on contemporary management perspectives -Quality: total ability of a product or service to meet customer needs -Quality Control: strategy for minimizing errors by managing each stage of production -Quality Assurance: focuses on the performance of workers, urging employees to strive for “zero defects” (been less successful because employees have no control over the design of the work process) -W. Edwards Deming: believed that quality stemmed from “constancy of purpose”—steady focus on an organization’s mission—along with statistical measurement and reduction of variations in production processes (managers should stress teamwork, be helpful rather than just give orders, and make employees feel comfortable about asking questions) -Joseph M. Juran: defined quality of “fitness for use” meaning a product of service should satisfy a customer’s real needs -Total Quality Management (TQM): comprehensive approach—led by top management and supported throughout the organization— dedicated to continuous quality improvement, training and customer satisfaction (emphasizes infusing concepts of quality throughout the total organization in a way that will deliver quality products and services to customers) o Make continuous improvement a priority: helps the company achieve long-term quality, efficiency, and customer satisfaction o Get every employee involved: builds teamwork, trust, and mutual respect o Listen to and learn from customers and employees o Use accurate standards to identify and eliminate problems: use benchmarking (always being alert to how competitors do things better, then try to improve on them) The Learning Organization Learning Organization: an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge -Creating and acquiring knowledge by constantly scanning their external environments, by not being afraid to hire new talent and expertise when needed, and by devoting significant resources to training and developing their employees -Actively transferring knowledge by reducing barriers to sharing information and ideas among employees -Modifying behavior by encouraging employees to use the new knowledge they’ve obtained to help further the organization’s goals How to build a learning organization -Build a commitment to learning -Work to generate ideas with impact (ideas that add value for customers, employees, and shareholders by increasing employee competence through training, experimenting with new ideas, and engaging in other leadership activities) -Work to generalize ideas with impact (reduce the barriers to learning among employees and within your organization)
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