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This 11 page Class Notes was uploaded by Haylee Smith on Thursday October 15, 2015. The Class Notes belongs to BUS at University of South Carolina Upstate taught by Mrs. Kelly in Fall 2015. Since its upload, it has received 20 views. For similar materials see Introduction to Organizational Management in Business at University of South Carolina Upstate.
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Date Created: 10/15/15
Chapter 1 Management the process of working with people and resources to accomplish organizational goals PFOCESS Planning specifying goals and deciding the actions need to achieve these goals Leading stimulating people to be high performers Organizing assembling and coordinating the resources to achieve goals Controlling monitoring and reacting to performance Levels of management Top level manager senior executive in charge of management and effectiveness of the organization Middle level manager managers located in the middle branches of the organization hierarchy and reports to top level manager Frontline manager lower level managers who execute the operational activities of the company Team Leader employees who are responsible for facilitating the successful team performance Bad Managers Three Chair thrower has a bad temper when they are not pleased Micromanagers never let associates get their job done because they are always there Blame seekers blame everyone in their department for mistakes instead of taking it upon themselves MIA No one ever see the manager and the manager is Old school manager doesn39t accept change and states quotwe have always done it this wayquot Threatened believes everyone who works wants theirjob and they are insecure Dishonest doesn39t tell the truthunethical Want a manager who gives praise when it is due takes the blames roles that all managers perform Interpersonal and communication skills 0 Ability to lead motivate and communicate effectively with others Soft skills 0 Eg counseling employees Successful managers often demonstrate a set of interpersonal skills known as emotional intelligence 0 Understanding yourself 0 Managing yourself 0 Dealing effectively with others Informational roles monitor disseminator spokesperson 0 Has great communication with higher ups associates and other departments 0 Being able to x problems along the way Technical skills 0 Ability to identify and resolve problems for the bene t of the organization and its members Conceptual and decision skills 0 Ability to identify and resolve problems for the bene t of the organization and its members Importance of skills at different levels Top manager 0 Tech skills low o Conceptualdecision skills high 0 lnterpersonalcommunication skills high Middle manager 0 Tech skills medium 0 Conceptualdecision skills high 0 lnterpersonalcommunication skills high Frontline 0 Tech skills high 0 Conceptualdecision skills medium 0 lnterpersonalcommunication skills high Team Leader 0 Tech skills high 0 Conceptualdecision skills medium 0 lnterpersonalcommunication skills high Major challenges facing managers Globalization technological change the importance of knowledge and ideas collaboration across organizational boundaries increasingly diverse labor force Sources of Competitive Advantage Cost competitiveness Innovation the introduction of new goods and services 0 Often the most important innovation is not the product itself but how it is delivered Quality the excellence of your product goods or services 0 Historically quality referred to attractiveness lack of defects reliability and longterm dependability Service The speed and dependability with which an organization delivers what customers want 0 Dependability if experiences varies between stores it hurts the view of the company as a whole Fast and timely execution response and delivery of results Don39t assume that you can settle for delivering just one source of competitive advantage Chapter 2 Origins of Management While as formal area of study the eld of management is relatively new evidence of formalized management practices have been found dating back to 5000 BC The industrial revolution promoted a more structured approach to work Classical approaches up until 19505 Manufacturing was the staple Systematic management a classical management approach that attempted to build into operations the speci c procedures and processes that would ensure coordination of effort to achieve established goals and plans Scienti c management a classical management approach that applied scienti c methods to analyze and determine the quotone best wayquot to complete the task 0 Created by Fredrick Taylor 0 Taylor39s 4 principles of scienti c management 1 Management should develop a precise scienti c approach for each element of one s work 2 Management should scienti cally select train teach and develop each worker 3 Management should cooperate with workers 4 Management should ensure an appropriate division of work and responsibility He looked at every takes and broke them down to where everyone was doing the same thing He came up with breaks 0 Henry L Gantt worked with and became a prot g Created the Gantt chart for a team research project at school that is now the staple of Microsoft Organized work so that is was not overlapping and came up with giving managers a bonus when workers did well Frank and Lilian Gilbreth used quotmotion studiesquot to identify and remove wasteful movements so workers could be more ef cient and productive o Lilian focused more on the human side of work satisfaction fatigue and stress and how it affected workers ef ciency Max Weber advocated bureaucracy a classical management approach emphasizing a structure formal network of relationships among specialized positions 0 Theory of social and economical Effective bureaucracy o Davison of labor tasks assignments and authority are clearly speci ed authority a chain of command quali cations employees are selected and promoted by merit ownership managers not owners should run the organization rules impersonal rules should be applied consistently and fairly 0 Issues lack of employee motivation lack of relationships lack of accountability loseinnova on 0 Why is the US military legendary in terms of its bureaucracy control has to be in place has to be decisive and quick no time to be innovative Henri Fayol o Advocated administrative management a classical management approach that attempted to id major principles and functions that managers could use to achieve superior o 14 Principles Division of work divide work into specialized tasks and assign responsibilities to speci c individuals Authority delegate authority should be assigned to only one supervisor Unity of command each employee should be assigned to only one supervisor Unity ofdirection employees39 efforts should be focused on achieving organizational objectives Subordination of individual interest to the general interest the general interest must predominate Remuneration systematically reward efforts that supports organization39s direction Centralization determine the relative importance of superior and subordinate roles Scalar chain keep communications Within the chain of command Order orderjobs and material so they support the organization39s direction Equity fair discipline and order enhance employee commitment Stability and tenure of personnel promote employee loyalty and longevity Initiative encourage employees to act on their own in support of the organization39s direction Esprit de corps promote a unity of interests between employees and management Chester Bernard published The Functions of the Executive in 1938 a classic Mark Parker Follet emphasizing the continually changing situations that managers face 0 Two key contributions Human Relations a classical management approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to in uence performance Hawthrone study people39s reactions to being observed or studied resulting in super cial rather than meaningful change in behavior Contemporary Approach Sociotechnical systems theory an approach to job design that attempts to design tasks to optimize operation of a new technology while preserving employees39 interpersonal relationships and other human aspects of the work Quantitative management an approach that emphasizes the application of quantitative analysis to managerial decisions and problems 0 Thought it was going to replace managers 0 This was not logical it was better for managers to use this process to make decisions Organizational behavior an approach that studies and identi es management activities that promote employee effectiveness by examining the complex and dynamic nature of individual group and organizational process Systems theory a theory stating that an organization is managed system that changes inputs into outputs Porter competitive strategy 0 Published over 125 articles and 18 books on the subject and related topics Professor at harvard o Drucker need for organizations to set clear objectives Popularized concepts such as MBO decentralization humans as assets and knowledge workers Chapter 3 Open System Open system organizations that are affected by and that affect their external environment Input goods and services organizations take in Output materials organizations put out Environments Macro environment 0 O 0 Laws and regulations outside factors that affect the company government press Economics US and other economies Technology new technology Demographics changes in age ethnicity where people live what people do now we have instant grati cation younger workers have different expectations then older workers eg feedback moving up in company less patience want more technology higher turnover rate Social values what people value is changing homosexuality Competitive environment 0 O O O O Rivals New entrants new businesses that threatens other businesses Buyerscustomers customer demand vs what the company gives Substitutes and complements when there is another brand a customer can buy instead of your product Suppliers is suppliers aren39t pricing and making your product correctly can open up competition Porters 5 Forces The rivalry among existing competitors The threat of new entrants The threat of substitute products The bargaining power of suppliers The bargaining power of customers EXhibi39l39 32 Porter s fivle forces T39hle ozrgalin zastion s competitive envirohlmleint of new entrants B a rgiai in in 91 prowe it 01 b u ye rs c L 3130 m e rs Bargla in i n g proweir of suppliers amlo ng exiis mg clomlpe lti itors J 39Th read o lf su bstiitute p rod ucts 0 r se rviices A t trxa ct ive a n Cl U insatt ralctive E thi lFO n mile nt s Exhibit 33 E77 7 42gt e 77 777 7 ism guu up u luuuuul T LlLlllw J ll icesLquot luts snaps VLJL smesss Fl39il my D ll uuu lil L llU T l lLllesluuh rum l r Many law industry growth equal size commodity lFew high industry gre39mlrth unequal size cl iffe re nti ate cl Low threat many barriers Ce rn p etitp rs High threat few entry barriers Threat of entry Substitutes lFew Many Few high ba rgaining power Many lDW bargaining power Suppliers lFeW high ba rgaining pbwe r Many law bargaining power Eustbme rs Environmental Scanning can keep you aware Environmental scanning 0 Searching for and sorting through information about the environment Competitive intelligence 0 Information that helps managers determine how to compete better Benchmarking 0 The process of comparing an organization39s practices and technologies with those of other companies Internal environment 0 Culture what vibe is in our company 0 Values what is important to the company Eg starbucks a gathering place other than home and work and they call their workers associates Ways that managers can in uence their environment Competitive aggression Competitive paci cation Public relations speaking to consumers Voluntary action making decisions to better company Legal action copyright Political action new laws that will make competitive environment better for them Change the boundaries of the environment Diversi cation a rm39s investment in a different product business or geographic area 0 Apple creating apple phones and apple tvs Mergers one or more companies combine with another 0 Government can deny companies to merge that will have a negative effect for consumers Acquisitions one rm buys another 0 Can often lose customers and the brand Divestiture a rm selling one or more businesses 0 Whirlpool selling refrigerator brand and going to electronics Competing Values of Model Culture Flexible process vs controloriented processes Internal maintenancefocus vs external positingfocus Clan exible and internal focus Adhocracy exible and external Market external and control 0 Ex kia managers get red if they don39t make their goals Hierarchy control and internal 0 Ex army Chapter 4 Ethics the moral principles and standards that guide the behavior of an individual or group Ethical lssuequot situation problem or opportunity in which an individual must choose among several actions that mist be evaluated as morally right or wrong Business ethics the moral principles and standards that guide behavior in the world of business Ethical systems Moral philosophy principles rules and values people use in deciding what is right or wrong Universalism the ethical system stating that all people should uphold certain values that society needs to function 0 Top ve truthfulness responsibility fairness respectfulness compassion Egoism an ethical principle holding that individual selfinterest is the actual motive of all conscious action Utilitarianism an ethical system stating that the greatest number should be the overriding concern of decision makers Relativism philosophy that bases ethical behavior on the opinions and behaviors od relevant other people Virtue ethics perspective that what is more comes from what a mature person with quotgoodquot morals says Ethics and the Law SarbanesOxley Act an act that established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor con dence 0 Cost companies millions o The CEO is personally responsible for nancial results and they can be held liable criminal course taken if this is broken 0 Stated that they needed to bring in outside people onto the board 0 Whistle blower hotlines were implemented Whistle blower someone who knows information about what is going on in a company that is illegal and they are allowed to share it with a third party and they are protected The ethical climate in uences employees Ethical climate in organization the processes by which decisions are evaluated and made on basis of right and wrong Danger signs Excessive emphasis on shortterm revenues over longerterm considerations Failure to establish a written code of ethics A desire for simple quotquick x solutions to ethical problems An unwillingness to take an ethical stand that may impose nancial costs Consideration of ethics solely as a legal issue or a public relations tool Lack of clear procedures to handle unethical problems P P PP NE Ethics Programs Compliancebased ethics programs Integritybased ethics programs company mechanism designed to instill in people a personal responsibility for ethical behavior A process for ethical decision making Understanding all the moral standards Recognize all impacts 0 Bene ts to some 0 Harms others 0 Rights exercised 0 Rights denied De ne the complete moral problem Determine the economic outcomes Consider the legal requirements Evaluate ethical duties Propose a convincing moral solutions Ethical Decision Making Moral awareness realizing the issue has ethical implications Moral judgement knowing what actions are morally defensible Moral character the strength and persistence to act in accordance with your ethics despite the challenges Business costs of ethical failure Level 1 costs government nes and penalties Level 2 costs administrative and audit 0 Legal and investigative o Remedial education 0 Corrective actions rms come in a look at the organization 0 Government oversight is the government going the be more involved in company Level 3 costs customer defections 0 Loss of reputation Employee cynicism Lost employee morale Employee turnover Government cynicism 0000 Corporate responsibility CSR Economic responsibility be pro table o Legal responsibility obey the law don39t dumb waste in rivers etc Ethical responsibility be ethical 0 Meeting other social expectations not written as law Philanthropic responsibility be a good corporate citizen donate 0 Additional behaviors and activities that society nds desirable Do businesses really have social responsibility Shareholder model Stake holder model You can do good and do well Maximize pro ts by being responsible