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by: Ilene Rowe II

PrinciplesofManagement MHR301

Ilene Rowe II
CSU Pomona
GPA 3.64


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Class Notes
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This 11 page Class Notes was uploaded by Ilene Rowe II on Saturday October 3, 2015. The Class Notes belongs to MHR301 at California State Polytechnic University taught by MansourSharifzadeh in Fall. Since its upload, it has received 37 views. For similar materials see /class/218157/mhr301-california-state-polytechnic-university in Business, management at California State Polytechnic University.

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Date Created: 10/03/15
511 Globalization globalization growth to a global or worldwide scale 0 companies export goods 0 assemble their products in other countries 0 under pressure to improve their products in the face of intense competition from foreign manufacturers Technological change rapid rate at which communication transportation information and other technological changes 0 internet drives down costs and speed up globalization Knowledge Management Knowledge workers primary contributions are ideas and problem solving expertise Knowledge Management practices aimed at discovering and harnessing an org s intellectual resources human asset help people collaborate and learn help people generate new ideas and harness those ideas into successful innovations Collaboration across boundaries Collaboration across boundaries ensuring that people in different parts of the org collaborate effectively with one another 0 requires productive communications of different departments divisions or other subunits o the org 0 must motivate and capitalize on the ideas of people and outside the org Innovation Innovation the intro of new goods and services 0 must adapt to changes in consumer demands and to new competitors Quality Quality the excellence of your product goods or services 0 goal is to solve and eradicate from the beginning all quality related problems and to live a philosophy of continuous improvements in the way the company operates companies customize goods and services to the wishes of the individual customer can be measured in terms of product performance customer service reliability conformance to standards durability and aesthetics Service the speed and dependability with which an org delivers what customers want Speed fast and timely execution response and delivery of results Cost Competitiveness Cost competitiveness keeping costs low to achieve profits and be able to offer prices that are attractive to consumers 0 use resources wisely and minimize waste The Functions of Management r 5 a 1 PLANNING DELIVERING STRATEGIC VALUES Planning the management function of systematically making decisions about the goals an activities that an individual a group a work unit or the overall org will pursue value monetary amount associated with how well a job task good or service meets users needs identify opportunities to create seize strengthen and sustain competitive advantage ORGANIZING BUILDING A DYNAMIC ORGANIZATION Organizing management function of assembling and coordinating human financial physical informational and other resources needed to achieve goals attracting people to the org specifying job responsibilities grouping jobs into work units marshaling and allocating resources and creating conditions so that people and things wor together to achieve maximum success LEADING MOBILIZING PEOPLE Leading management function that involves the manager s efforts to stimulate high performance by employees involves close day by day contact with people helping to guide and inspire them toward achieving team and organizational goals takes place in teams departments and divisions mobilize people to contribute their ideas CONTROLLING LEARNING AND CHANGING controlling the management function of monitoring performance and making needed changes resources are being used as planned and meeting goals like quality and safety Management Level and Skills Top level managers strategic management top level a sr quot quot 39 for the overall management and effectiveness of th organization focus on longterm issues and emphasize the survival growth and overall effectiveness of the organization concern with organization and interaction between the organization and its external environment requires that managers to work extensively with outside individuals and organizations Middle level managers tactical managers middle level managers managers located in the middle layers of the organizational hierarchy reporting to toplevel executives o responsible for translating the general goals and plans developed by strategic managers in more specific objectives and activities Frontline Managers operational managers frontline managers lowerlevel who supervise the operational activities of the organization directly involved with non management employees implementing the specific plans developed with middle managers operational link between management and non management personnel called to be innovative and entrepreneurial managing for growth and development crucial to creating and sustaining equality innovation and other drivers of financial performance technical skill ability to perform a specialized task involving particular method or skills conceptual and decision skills skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members confront issues that involve all aspects of the organization and must consider a larger and more interrelated set of decision factors interpersonal and communication skills people skills the ability to lead motivate and communicate effectively with others specialist be an expert in something generalist knowing enough about a variety of business disciplines so that you can think strategically and work with different perspectives 48 open systems organizations that are affected by and that affect their external environme inputs goods or services organizations take in and use to create products or services outputs the products or services organizations create external environment all relevant forces outside a firm s boundaries such as competitors customers the government and the economy Appendix A Chap 1 36 economies of scale reductions in the average cost of a unit of production as the total volume produced increases CLASSICAL APPROACHES systematic management attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans 0 emphasized economical operations adequate staffing maintenance of inventories to meet consumer demand and organizational control careful definition of dutiesresponsibilities 39 quot quot quot39 for 39atheseduties specific means of gathering handling transmitting and analyzing information cost accounting wage and production control systems to facilitate internal coordination an communications Scientific management applied scientific methods to analyze and determine the one best wayquott complete production tasks 0 time and motion studies Administrative Management approach that attempted to identify major principles and functions that managers could use to achieve superior organizational performance Fayol39s 14 Principles of Management 1 Division of Work When employees are specialized output can increase because they become increasingly skilled and efficient 2 Authority Managers must have the authority to give orders but they must also keep in mind that with authority comes responsibility Discipline Discipline must be upheld in organizations but methods for doing so can vary Unity of Command Employees should have only one direct supervisor 5 Unity of Direction Teams with the same objective should be working under the direction of one manager using one plan This will ensure that action is properly coordinated 6 Subordination of Individual Interests to the General Interest The interests of one employee should not be allowed to become more important than those of the group This includes managers 7 Remuneration Employee satisfaction depends on fair remuneration for everyone This includes financial and nonfinancial compensation 8 Centralization This principle refers to how close employees are to the decisionmaking process It is important to aim for an appropriate balance 9 Scalar Chain Employees should be aware of where they stand in the organization39s hierarchy or chain of command 10 Order The workplace facilities must be clean tidy and safe for employees Everything should have its place 11 Equity Managers should be fair to staff at all times both maintaining discipline as necessary and acting with kindness where appropriate 12 Stability of Tenure of Personnel Managers should strive to minimize employee turnove Personnel planning should be a priority 13 Initiative Employees should be given the necessary level of freedom to create and carry out plans 14 Esprit de Corps Organizations should strive to promote team spirit and unity P 0 Human relations attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance 0 Hawthorne Effect People s reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior bureaucracy emphasize a structured formal network of relationships among specialized position in the organization 0 eliminate the variability that results when managers in the same organization have different skills experiences and goals 0 allow large organizations to perform the many routine activities necessary for their survival CONTEMPORARY APPROACHES 0 Quantitative management emphasizes the application of quantitative analysis to managerial decisions and problems 0 organizational behavior studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual group and organizational processes 0 Theory X assumes workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals 0 Theory Y managers who encourage participation and allow opportunities for individual challenge and initiative would achieve superior performance want to work and direct and control themselves systems theory an org is a managed system that changes inputs into outputs 0 one system in s set of subseries component of the whole and is interdependent with other subsystems Contingency perspective study of mgmt proposing that the managerial strategy structures and processes that result in high performance depend on the characteristics or important contingencies of the situation in which they are applied 1 Circumstances in the org s external environment 2 the internal strengths and weaknesses of the org 3 the values goals skills and attitudes of managers and workers in the org 4 types of tasks resources and technologies the org uses CHAPTER 3 8788 Characteristics of Managerial Decisions RiskUncertainty Lack of structure Conflict Lack of structure Programmed decisions decisions encountered and made before having objectively correct answers and solvable by using simple rules policies or numerical computations nonprogrammed decisions new novel complex decisions have no proven answers Uncertainty and Risk Certainty having all the info and can predict precisely the consequences Uncertainty having insufficient information to know the consequences of different actions Risk estimating the likelihood of various consequences but still do not know with certainty what wi happen 0 not the same as taking a risk but managing a risk by anticipating the risk minimizing and controlling it Conflict opposing pressures from different sources occurring on the level of psychological conflic or of conflict between individuals or groups Psychological conflict several options are attractive and unattractive Ex making necessary layoffs when managers don t want to IndividualGroup Conflict people having different ideas on making decisions 8996 The Stages of Decision Making 1 Identify and diagnose the problem 0 Organizational or unit performance may be detected by comparing performances against past current and future plans and forecast o Recognizing that a problem or opportunity exists diagnosing the situation 2 Generate alternatives solutions 0 readymade solutions ideas that have been seen or tried before 0 custommade solutions new creative solutions designed specifically for the problem 3 Evaluate alternatives 0 predict the consequences that will occur if the various options are put into effect 0 ex quantifiable measures of success lower costs higher sales lower employee turnover and higher profits 0 contingency plan Alternative courses of action that can be implemented based on how th future unfolds 4 Make the choice 0 paralysis by analysis indecisiveness caused by too much analysis rather than asserti decision Maximizing o a decision realizing the best outcome 0 maximizing decision realizes the greatest positive consequences and the fewest negative consequences 0 lowest costlargest total expected return 0 searching for alternativesassessing and comparing themchoosing or creating the very bes Satisficing 0 Choosing an option that is acceptable although not necessarily the best or perfect 0 compare your choice against your goal not against other options 0 search for alternatives stops after you find an okay solution 0 making expedient decisions on readily available information 0 time is short info is unavailable or other constraints make maximizing impossible Optimizing o achieving the best possible balance among several goals 0 best combination of attributes 0 one marketing strategy could maximize sales while a different strategy might maximize profit 5 Implement the decision 0 people involved in making the choice must put it into effect 0 identify potential problemsopportunities to prevent problems and be ready to seize unexpected opportunities How the decision will look when its fully operational Take chronologically steps to achieve decision List resourcesactivities required to implement each step Estimate time Assign responsibility 6 Evaluate the decision 0 involves collecting info on how well the decision is working 0 using quantifiable goals and objective data to accurately determine its success or failure 0 Feedback decision means its it should be continued or applied elsewhere 0 Negative feedback implementation will require more time resources effort or thought bac decision 97 Illusion of control People s belief that they can influence events even when they have no control over what will happen 0 Managers may believe they can do no wrong or hold a general optimism about the future that can lead them to believe they are immune to risk and failure Ex gambling when some people believe they have the skills to beat the odds even though most c the time the can t 100 Potential Advantages of Using a Group 102 1 Larger pool of info 2 More perspective and approaches 3 Intellectual stimulation 4 People understand the decision 5 People are committed to the decision 0 First three improve the odds that a more fully informed higherquality decision will result 0 Last two improve the chances that the decision will be implemented more successfully Potential Problems of Using a Group 1 One person dominates 2 Satisficing 3 Groupthink 4 Goal Displacement 105 Organizational decision making 1 the constraints decision makers face 2 organizational decision making process 3 decision making crisis 0 CHAPTER 4 129 The Basic Planning Process 133 1 SituationalAnaysis o planners should gather interpret and summarize all info relevant to the planning issue in question 0 studies past events examines current conditions and attempts to forecast future trends 0 focuses on internal forces at work in the organization or work unit and consistent with the opensystems approach examines influences from the external environment 0 outcome is the ID and diagnosis of planning assumptions issues and problems 2 Alternative goals and plans 0 generate alternative goals that may be pursued in the future and may be used to achieve th goals 0 Goals target or end that mgmt desires to reach MART Specific describing particular behaviors and outcomes Measurable quantify the desired results Attainable can attain the goals they are responsible forfeel challenged to work hard and be creative Relevant contribute to the organization s overall missionconsistent with values Timebound specify a target date for completion 0 Contingency plan actions to be taken when a companys initial plan have not worked well or if events in the external environment require a sudden change 0 ex natural disasters 00 Goal and plan evaluation 0 evaluate advantages disadvantages and potential effects of each alternative goal and plar o prioritize goalseliminate some 0 pay attention to cost and investment return ratio 4 Goal and plan selection 0 identify the priorities and tradeoffs among the goals and plans 5 Implementation ther be t t 0 requires a plan to be linked to the organization s reward system 6 Monitor and Control continually monitor the actual performance of their work units against the units goals and plan develop control systems to measure that performance and allow them to take corrective action when the plans implemented improperly or when the situation changes 133 Strategic Plan Strategic planning involves making decisions about the org s long term goals and strategies strong internal organization and covers major portions of the organization Strategic goals major targets or end results that relate to the long term survival value anc growth of the org Ex growth increasing market share improving profitability boosting return on investment fostering both quantity and quality of outputs increasing productivity improving customer service and contributing to society Strategy pattern of actions and resource allocations designed to achieve the goals of the org 1 38 1 48 Strategic Management process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies Strategic management process 1 Establishment of mission vision and goals Mission clear and concise expression of the basic purpose of the org describes what the org does whom it is for its basic good or service and its values strategic vision the longterm direction and strategic intent of a company 2 Analysis of External Opportunities and Threats stakeholders groups or individuals who affect are affected by the achievement of the org s mission goals and strategies environmental analysis also should examine other forces in the environment such as 39 quot and quot 39 39 39factors forecasting future trends using simple judgements to complex mathematical models that examine systematic relationships among other variables 3 Analysis of Internal Strengths and Weaknesses 4 SWOT Analysis and Strategy Formulation resources inputs to productions that can be accumulated overtime to enhance the performance for a firm tangible assets real estate production facilities raw materials intangible assets company reputation culture technical knowledge patents accumulatet learning and experience customer value if it increases the benefits customers derive from a good or service relative to the costs they incur core competence a unique skill andor knowledge an organization possesses that gives it an edge over competitors competitive advantage benchmarking the process of assessing how well one company s basic functions and skills compare with those of another company or set of companies understanding the best practices of other firms and to undertake actions to achieve both better performance and lower costs u I 4 391 g l I I I SWOT Analysis a of and threats that 5 Strategy lm plem entation o 6 Strategic Control helps executives formulate strategy r 39 39 39 meil e tema and39 hit int 9 market u 39 39 39 organization competes and the distribution of resources among those entities 39 r y r 39 L competes in a single industry 0 vertical integration the acquisition or development of new businesses that produce parts or components of the organization39s produc u used to eliminate uncertainties and reduce costs associated with suppliers or distributors expanding the domain ofthe organization into supply channels or to distributors 39 39 39 39 add new 39 related products or are involved in related markets and activitiesmoving into new businesses that are related tot company39s original core business conglomerate diversi cation a strategy used to add new businesses that produce or into and unrelated business 0 minimize risks due to market uctuations in one industry Clever techniques and a good plan do not guarantee success A rquot r 39 39 u implementation u r r r managed 39 t taking a corrective action 0 the s ste must encourage ef cient operations that are consistent with the plan while allowing exibility to adapt to changing conditions must develop performance indicators inf systems 0 budget to monitor and control major financial expenditures Question mavk star Hmh Manet gmntt me Law an L Rela ve market share 1 Stars Stars are highgrowth highshare businesses or products They often need heavy investments to finance their rapid growth Eventually their growth will slow down and they will turn into cash cows 2 Cash Cows Cash cows are lowgrowth highshare businesses or products These established and successful SBUs need less investment to hold their market share Thus they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment 3 Question Marks Question marks are lowshare business units in highgrowth markets They require a lot of cash to hold their share let alone increase it Management has to think hard about which question marks it should try to build into stars and which should be phased out 4 Dogs Dogs are lowgrowth lowshare businesses and products They may generate enough cash to maintain themselves but do not promise to be large sources of cash 152 The most effective strategy is one that competitors are unwilling or unable to imitate


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