Chapter 1 studyguide
Chapter 1 studyguide MGMT 340
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This 8 page Class Notes was uploaded by Vishal Gulati on Tuesday September 13, 2016. The Class Notes belongs to MGMT 340 at University of Illinois at Chicago taught by Peter B. Thompson in Fall 2016. Since its upload, it has received 5 views. For similar materials see Introduction to Organizations in Management at University of Illinois at Chicago.
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Date Created: 09/13/16
Chapter 1 Study Guide 11 Why Innovative management matters ● Twitter is used for all sorts of activities, from organizing protests and spreading the word about political turbulence or natural disasters to marketing products and gathering customer feedback. ● Square is used to process credit cards, and Dorsey’s team is looking for ways to expand into Latin America, Asia, and Europe. Square is also creating a variety of other products and services and is growing rapidly. ● Main point of section: Innovative applications like twitter and square are connecting people from all over the world. 12 The definition of management ● Managers: Today, more than a million small businesses and individuals use Square to process credit cards, and Dorsey’s team is looking for ways to expand into Latin America, Asia, and Europe. Square is also creating a variety of other products and services and is growing rapidly. ● In essence, managers set goals, organize activities, motivate and communicate, measure performance, and develop people. ○ Set goals: establish goals for the group and decide what must be done to achieve them ○ Organize: Divide work into manageable activities and select people to accomplish tasks ○ Motivate and communicate: Create teamwork via decisions on pay, promotions, and through communication ○ Measure: Set targets and standards; appraise performance ○ Develop people: recognize the value of employees and develop this critical organizational asset ● Management definition ○ The 4 functions above ○ The attainment of organizational goals in an effective and efficient manner ● Remember this ○ Managers get things done by coordinating and motivating other people. ○ Management often is a different experience from what people expect. ○ Innovative management is critical in today’s turbulent world. ○ The success of Twitter and Square can be attributed to the effectiveness of its innovative managers. ○ Management is defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. 13 The four management functions ● The process of management ○ Planning: Select goals and ways to attain them ○ Organizing: Assign responsibility for task accomplishment ○ Leading: use influence to motivate employees ○ Controlling: Monitor activities and make corrections. 14 Organizational performance ● Organization ○ is a social entity that is goal directed and deliberately structured. ■ Social entity means being made up of two or more people. ■ Goal directed means designed to achieve some outcome, such as make a profit (Walmart), win pay increases for members (AFLCIO), meet spiritual needs (United Methodist Church), or provide social satisfaction (a college sorority). ■ Deliberately structured means that tasks are divided, and responsibility for their performance is assigned to organization members ● Organizational effectiveness ○ Providing a product or service that customers value. ● Organizational efficiency ○ refers to the amount of resources used to achieve an organizational goal. ○ Efficiency can be calculated as the amount of resources used to produce a product or service. ● Efficiency and effectiveness can both be high in the same organization. ● The ultimate responsibility of managers is to achieve high performance, ● Performance using resources to complete organizational goals in an efficient and effective manner ● Example:Weak sales led managers to focus on financial efficiency, which successfully trimmed waste and boosted operating income. However, the efficiencies damaged the company’s ability to recruit new artists, which are vital to record companies, and also led to internal turmoil that caused some longtime acts like the Rolling Stones to leave the label. Thus, the company’s overall performance suffered. Managers are struggling to find the right balance between efficiency and effectiveness to get EMI back on the right track. ● Remember this ○ An organization is a social entity that is goal directed and deliberately structured. ○ Good management is important because organizations contribute so much to society. ○ Efficiency pertains to the amount of resources—raw materials, money, and people—used to produce a desired volume of output. ○ Effectiveness refers to the degree to which the organization achieves a stated goal. ○ Performance is defined as the organization’s ability to attain its goals by using resources in an efficient and effective manner. ○ Managers at Illumination Entertainment are concerned both with keeping costs low (efficiency) and producing animated films such as The Lorax that are critically and financially successful (effectiveness). 15 management skills ● Relationship of conceptual, human and technical skills to management ○ Nonmanagers ■ Technical skills, human skills, and then conceptual skills ○ Middle Managers ■ Human skills, conceptual skills, and then technical skills 16c Manager roles ● Role a set of expectations for a manager's behavior Ten manager roles. Exhibit 1.7 ● Informational managing by information ○ Monitor seek and receive info ○ Disseminator forward info to other organization members ○ Spokesperson transmit info to outsiders through speech ● Interpersonal managing through people ○ Figure head: greet visitors ○ Leader direct and motivate employees ○ Laision mainiation info links inside and outside the organization ● Decisionalmanaging through action ○ Entrepreneurinitiate improvement projects ○ Disturbance handler proper action during conflicts ○ Resource allocator: decide who gets resources ○ Negotiator: represent teams interests ● The functions of planning, organizing, leading and controlling apply to nonprofits just as they do to business organizations, and managers in nonprofit organizations use similar skills and perform similar activities 17 ● Good management is just as important for small businesses and nonprofit organizations as it is for large corporations. ● Managers in these organizations adjust and integrate the various management functions, activities, and roles to meet the unique challenges they face. ● Managers in small businesses often see their most important roles as being a spokesperson for the business and acting as an entrepreneur. ● Managers in nonprofit organizations direct their efforts toward generating some kind of social impact rather than toward making money for the organization. ● Nonprofit organizations don’t have a conventional bottom line, so managers often struggle with what constitutes effectiveness 18 ● Turbulent environmental forces have caused a significant shift in the competencies required for effective managers. ● Traditional management competencies could include a commandandcontrol leadership style, a focus on individual tasks, and standardizing procedures to maintain stability. ● New management competencies include the ability to be an enabler rather than a controller, using an empowering leadership style, encouraging collaboration, leading teams, and mobilizing for change and innovation. ● Vineet Nayar, CEO of India’s HCL, illustrates many of the new management competencies. ○ One manager who exemplifies the new management competencies is Vineet Nayar, CEO of India’s HCL, with employees and operations in more than twentyfive countries. When he took over as CEO, HCL was a traditional, hierarchical, commandandcontrol workplace, but Nayar shifted the mindset to treat employees like customers. He is always on the lookout to upgrade management competencies to serve employees and help them do their jobs better. When HCL needed to cut expenses by million due to the global recession, managers asked the employees to come up with ideas for cutting costs without issuing massive layoffs 19 ● Managers are always on the lookout for new techniques and approaches to meet shifting organizational needs. ● Looking at history gives managers a broader perspective for interpreting and responding to current opportunities and problems. ● Management and organizations are shaped by forces in the larger society. 110 ● Scientific management emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity. ● However, because scientific management ignores the social context and workers’ needs, it can lead to increased conflict and clashes between managers and employees. ● The manner of change could be determined only by scientific study; hence the label scientific management emerged.Taylor suggested that decisions based on rules of thumb and tradition be replaced with precise procedures developed after careful study of individual situations ● Taylor calculated that with the correct movements, tools, and sequencing, each man was capable of loading 45.6 tons per day instead of the typical 12.5 tons ● Surgeons were able to save countless lives through the application of time and motion study 1.11 Characteristic of weberian bureaucracy: ● Division of labor with clear definitions or authority and responsibility ● Positions organized in a hierarchy of authority ● Managers subject to rules and procedures that will ensure reliable predictable behavior ● Management separate from the ownership of the organization ● Administrative acts and decisions recorded in writing ● Personal select and promoted based on technical qualifications 111A ● Folett addressed issues that are timely toda, such employees as aethics, power, and leading in a way that encourages employees to give their best ● Randomly select workers into one group or another. One group you do the experiment too and one group you don’t do anything. Experimental vs control group. ● Maybe the dim the lights to see the difference ● Break times Compared the productivity ● Noticed the productivity was up for both groups ● Due to them being watched, they worked harder ● Agree or disagree questions 111c Human capital ● Abraham Maslow ● Douglas McGregor Human capital: People are assets to be enhanced not costs to be minimized 111d Behavioral sciences approach ● The behavioral sciences approach uses scientific methods and draws from sociology, psychology, anthropology, economics and other disciplines to develop theories about human behavior and interaction in an organizational setting. ● To improve the organization's health and effectiveness through its ability to cope with change, improve internal relationships, and incase problem solving capabilities Remember this ● The humanistic perspective emphasized understanding human behavior, needs, and attitudes in the workplace. ● Mary Parker Follett and Chester Barnard were early advocates of a more humanistic approach to management. ● Follett emphasized worker participation and empowerment, shared goals, and facilitating rather than controlling employees. Barnard’s contributions include the acceptance theory of authority. ● The human relations movement stresses the satisfaction of employees’ basic needs as the key to increased productivity. ● The Hawthorne studies were important in shaping ideas concerning how managers should treat workers. ● The human resources perspective suggests that jobs should be designed to meet people’s higherlevel needs by allowing employees to use their full potential. ● The behavioral sciences approach draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting. ● Many current management ideas and practices can be traced to the behavioral sciences approach. 112 Management Science ● Exhibit 1.12 ● Theory X human nature is lazy and the only way to get people to get them to work is with incentive or ● Theory y people like to work. Do what you love and the money will follow ● The quantitative perspective this view is distinguished for its application of mathematics, statistics, and other quantitative techniques to management decision making and problem solving. Remember this ● Management science became popular based on its successful application in solving military problems during World War II. ● Management science, also called the quantitative perspective, uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems. ● The Walt Disney Company uses management science to solve the problem of long lines for popular rides and attractions at its theme parks. ● Three subsets of management science are operations research, operations management, and information technology. ● Quants have come to dominate decision making in financial firms, and the Wall Street meltdown in 2007–2008 shows the danger of relying too heavily on a quantitative approach. ● Management scholar Peter Drucker’s classic 1946 book Concept of the Corporations parked a dramatic increase in the academic study of business and management. Exhibit 1.13 Without understanding system casualty, top managers would fail to understand why advertising budgets could cause inventory delays and temporarily reduce ..._____ There is no one best way 113c Total quality management Four significant elements of quality management are employee involvement, focus on the customer, benchmarking, and continuous improvement, often referred to as Kaizen Continuous improvement is the implementation of small incremental improvements in all areas of the organization on an ongoing bias Edward Demings ● he would go to companies and give them more ideas about being efficient but wasn’t taken seriously. WWII came along and everything get bombed. Quality became poor and Demming was trying to get people to understand how to be efficient and so he went to japan and was actually listened too and praised ● Make improvements continuously Quality is defined as meet customers requirements A system is a set of interrelated parts that function as a whole to achieve a common purpose. An organization is a system Systems thinking means looking not just at discrete parts of an organizational situation but also at the continually changing interactions among the parts. Subsystems are parts of a system that depends on one another for their functioning. 114 Innovative management thinking for a Changing world Management itself is subject to improvement 114b The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency Exhibit 1.15 Supplyu chain info In India, for example, Walmart managers have invested in an efficient supply chain that electronically links farmers and small manufacturers directly to the stores, maximizing value for both ends.
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