Management 300

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Management

is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources

The four management functions

Planning, Organizing, Leading, Controlling

Planning

Defining goals for future organizational performance and deciding on the tasks and resources

Organizing

The management function concerned with assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.

Leading

Is the use of influence to motivate employees to achieve organizational goals.

Controlling

Means monitoring employee's activities, determining whether the organization is on target toward its goals, an making corrections as necessary.

Effectiveness

is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do

Efficiency

The use of minimal resources- raw materials, money, and people-to produce a desired volume of output

Conceptual Skill

the cognitive ability to see the organization as a whole and the relationships among its parts.

Human skill

the ability to work with and through other people and to work effectively as a group member.

Technical Skills

The understanding of and proficiency in the performance of specific tasks

General Managers

Are responsible for several departments that perform different functions.

Social Forces

The aspects of a culture that guide and influence relationships among people-their values, needs, and standards of behavior.

Political Forces

The influences of political and legal institutions on people and organizations.

Economic forces

Forces that affect the availability, production, and distribution of a society's resources among competing users,

Classical Perspective

A management perspective that emerged during the nineteenth and early twentieth centuries that emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines

Scientific Management

A subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labor productivity

Fredrick Winslow Taylor

In the past the man has been first. in the future the system must be first

Frank B and Lillian M. Gilbreth

He stressed time and motion study(one best way to complete the job) She pioneered field of industrial psychology and human resource management

Bureaucratic Organizations

A subfield of the classical management perspective that emphasized management on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal record keeping, and separation of management and ownership.

Max Weber

A German theorist, introduced most of the bureaucratic organizations. He believed that an organization based on rational authority wold be more efficient and adaptable to change because continuity is related to formal structure and positions rather than to a particular person, who may leave or die.

Administrative Principles

A subfield of the classical management perspective that focuses on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling

Henri Fayol

French mining engineer who's most significant work was in General and Industrial Management. 1. Unity of Command-each subordinate receives orders from one 2. Division of Work- Managerial and technical work are amenable to specialization to produce more and better work with the same amount of effort.3. Unity of Direction-similar activities in an organization should be grouped together under one manager.4.Scalar Chain- a chain of authority extends from the top to the bottom of the organization and should include every employee.

Mary Parker Follett

Trained in philosophy at Radcliffe college. She wrote of importance of command superordinate goals for reducing conflict in the organizations

Chester I. Barnard

One of his significant contributions was the concept of the informal organization.

Informal Organization

occurs in all formal organizations and included cliques and naturally occurring social grouping.

Acceptance theory of authority

Which states that people have free will an can choose whether to follow management orders.

Humanistic Perspective

A management perspective that emerged near the late nineteenth century and emphasized understanding human behavior, needs, and attitudes in the workplace.

The three subfields of The Humanistic perspective

The human relations movement , the human resources perspective, and the behavioral sciences approach.

Hawthorne studies

a series of experiments on worker productivity begun in 1924 at th Hawthorne plant of wester electric company in Illinois attributed employees increase output to managers better treatment of them during the study

Human relations movement

a movement in management thinking and practice that emphasizes satisfaction of employees basic needs as the key to increased worker productivity

Human resources perspective

A management perspective that suggests jobs should be designed to meet higher-level needs by allowing WORKERS TO USE THEIR full potential

Douglas McGregor

He formulated his theory X and Theory Y, Classical =X and a early stages of human relations. Theory Y is more of a realistic view he believed workers are.

Behavioral Sciences Approach

A subfield of the humanistic management perspective that applies social science in an organizational context, drawing from economics, psychology, sociology , and other disciplines

Management Science Perspective

A management perspective that emerged after ww2 and applied mathematics, statistics, and other quantitative techniques to managerial problems.

Systems Theory

An extension of the humanistic perspective that describes organizations as open systems characterized by entropy, synergy, and subsystem interdependence.

System

a set of interrelated parts that function as a whole to achieve a common purpose

Entropy

tendency to run down and die

Synergy

mens that the whole is greater than the sum of its parts,

Open systems

must interact with the environment to survive.

Contingency view

an extension of the humanistic perspective in which the successful resolution of organizational problems is thought to depend on managers' identification of key variations in the situation at hand.

Learning Organization

an organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability

Empowerment

means unleashing the power and creativity of employees by giving them the freedom, resources, information, and skills to make decisions and perform effectively

Organizational Environment

all elements existing outside the organization's boundaries that have the potential to affect the organization

General Environment

The layer of the external environment that affects the organization indirectly

Task Environment

The layer of the external environment that directly influences the organization's operations and performance.

Internal Environment

The environment that includes that includes the elements within the organization's boundaries

International dimension

Portion of the external environment that represents events originating in foreign countries as well as opportunities for U.S. companies in other counntries

Technological dimension

the dimension of the general environment that includes scientific and technological advancements in the industry and society at large.

Sociocultural dimension

The dimension of the general environment representing the demographic characteristics, norms, customs, and values of the population within which the organization operates.

Economic dimension

The dimension of the general environment representing the overall economic health of the country or region in which the organization operates.

Legal-political dimension

The dimension of the general environment that includes federal, state, and local government regulations and political activities designed to influence company behavior.

Pressure Groups

An interest group that works mwithin the legal-political framework to influence companies to behave in social responsible ways.

Customers

People and organizations in the environment who acquire goods or services from the organization.

Competitors

Other organizations in the same industry or type of business that provide goods or services to the same set of customers.

Suppliers

People and organizations who provide the raw materials the organization uses to produce its output.

Labor Market

The people available for hire by the organization.

Labor Market forces affecting organizations

1. The growing need for computer-literate knowledge workers. 2.the necessity for continuous investment in human resources through recruitment, education, and training to meet the competitive demands of the border less world. 3. the effects of international trading blocs, automation, outsourcing, and shifting facility location upon labor dislocations, creating unused labor pools in some areas and labor shortages in others.

Environmental Uncertainty

Means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes.

Adapting to the environment

If an organization faces increased uncertainty with respect to competition, customers, suppliers, or government regulations managers can use several strategies to adapt to these changes, including boundary-spanning roles, interorganizational partnerships, and mergers or joint ventures

Boundary-Spanning

Roles assumed b y people and/or departments that link and coordinate the organization with key elements in the external environment

Merger

The combining of two or more organizations into one.

Joint Venture

A strategic alliance or program by two or more organizations.

The Internal Environment: Corporate Culture

Within which managers work includes corporate culture, production technology, organization structure, and physical facilities. Important to keep an competitive edge or the rest of the field. It must fit the needs of the company strategy and external environment

Culture

the set of key values, beliefs, understanding , and norms that members of an organization share.

Symbol

Is an object, act, or event that conveys meaning to others. Symbols can be considered a rich, nonverbal language that vibrantly conveys the organization's important values concerning how people relate to one another and interact with the environment. Ex. Radio One parking garage one front door

Stories

is a narrative based on true events and is repeated frequently and shared among organizational employees. Ex. UPS worker ordered another 737 Boeing to account for the x-mas presents left behind

Hero

A figure who exemplifies the deeds, character, and attributes of a strong corporate culture.

Slogans

A phrase or sentence that succinctly expresses a key corporate value. Ex. Eagles don't flock. You gather them one at a time.

Ceremonies

is a planned activity at a special event that is conducted for the benefit of an audience.

Four stages of Globalization

Domestic- International, Multinational, Global

Domestic stage

Market potential is limited to the home country, with all production and marketing facilities located at home. Managers may be aware of the global environment and may want to consider foreign involvement.

International Stage,

Exports increase, and the company usually adopts a multidomestic approach meaning that competition is handled for each country independently.

Domestic Stage

Strategic orientation- Domestically oriented. Stage of Development- Initial foreign involvement. Cultural Sensitivity- of little importance. Managers assumptions- "One best way"

International Stage

Strategic orientation-Export -oriented, multidomestic Stage of Development-Competitive positioning. Cultural Sensitivity- Very Important. Managers Assumptions- "Many good ways".

Multinational Stage

More than 1/3 of it sales outside of its home country. Similar product to many countries. Ex. Coca Cola

Multinational Stage

Stage of development- Explosion of international operations. Cultural Sensitivity- "The least-cost way".

Global

Strategic orientation- global. Cultural Sensitivity- Critically Important. Managers Assumptions- "many good way"

Global

Corporate international development transcends any single home country. Makes sales and acquiring resources wherever at lowest cost.

Market Entry Strategy

An organizational strategy for entering a foreign market.

Global outsourcing

aka offshoring, means engaging international division of labor so that work activities can be done in countries with the cheapest sources of favor and supplies

Exporting

An entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign countries.

Countertrade

The barter of products for other products rather than their sale for currency. An estimated 20 percent of the world trade is countertrade.

Licensing

An entry strategy in which an organization in one country makes certain resources available to companies in another in order to participate in the production and sale of its products abroad. Ex(licensor)makes certain resources available to companies in another country(the licensee). These resources include are technology, managerial skills and /or patent and trademark rights.

Franchising

A form of licensing in which an organization provides its foreign franchisees with a complete package of materials and services.Including equipment, products,product ingredients, trademark,trademark rights, managerial advice, and a standardized operating system.

Directing Investing

An entry strategy in which the organization is involved in managing its production facilities in a foreign country. Means company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control. Ex. Home Depot 10 stores is canada.

Joint Venture

A variation of direct investment in which an organization shares costs and risks with another firm to build a manufacturing facility, develop new products,or set up a sales and distribution network. Currently the most popular typeof direct investment is to engage in strategic alliances, and partnerships. A partnership is often the fastest, cheapest, and least risky way to get into the global game.

Wholly owned foreign affiliate

A foreign subsidiary over which an organization has complete control. Direct Acquisitions of an affiliate may provide cost savings over exporting by shortening distribution channels and reducing storage and transportation.

Green Venture

The most risky type of direct investment, whereby a company builds a subsidiary from scratch in a foreign country. The advantage is that the subsidiary is exactly what the company wants and has potential for highly profitable.

International management

Is the management of business operations conducted in more than one country.

Key factors in the International Environment

1.Economic-Economic development, infrastructure, resource and product markets, per capita income, exchange rates, economic conditions. 2.Legal-Political- Political risk, Government takeovers, tariffs quotas and takes, Terrorism and political instability, Laws and regulations3. Sociocultural-Social values and beliefs, Language, Religion(objects,taboos,holidays), Kinship patterns, Formal education and literacy, Time orientation

Economic Development

differs widely among the countries and regions of the world. Categorized as either developed(North America, Europe,Japan) or Less developed countries (LCD)-(Asia, Eastern Europe, Latin America, and Africa)

Infrastructure

A country's physical facilities that support economic activities. (Airports, highways, and railroads; energy-producing facilities utilities and power plants, and communication facilities telephone lines and radio stations.

Political Risk

A company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments. Ex. (government takeovers kidnappings) Political risk insurance and political risk analysis has emerged as a critical component of environmental assessment. To reduce uncertainty organizations use Index of Economic Freedom-ranks countries according to the impact of political intervention has on business decisions and Corruption Perception Index- assesses 91 countries of the level of perceived corruption in the government and public administration.

Political instability

events such as riots, revolutions, or government upheavals that affect the operations of international company.

Ethnocentrism

A cultural attitude marked by the tendency to regard one's own culture as superior to others

Gatt

The general agreement on tariffs and trade, 23 nations signed in 1947, started as a set of rules to ensure nondiscrimination, clear procedure, the negotiation of disputes, and the participation, of lesser-developed countries in international trade.

World Trade Organization(WTO)

Primarily use tariff concessions as a tool to increase trade. Goal to guide and sometime urge the nations of the world toward free trade and open markets.

North American Free Trade Agreement(NAFTA)

Which went into effect on January 1, 1994, merged the United States, Canada, and Mexico into a mega market with more than 421 million consumers. It as intended to spur growth and investment, increase exports, and expand jobs in all three nations. key areas are agriculture-removing of tariffs on 1/2 of U.S. farm exports. Autos-Immediate 50% cut of mexican tariffs Transport- and intellectual property.

Entrepreneurship

The process of initiating a business venture, organizing the necessary resources, and assuming the associated risks and rewards.

Entrepreneur

Someone who recognizes a viable idea for a business product or service and carries it out. By finding and assembling the necessary resources- money,people,machinery,location-to undertake the business venture. They assume the risk and reap the rewards.

Internal Locus of Control

the belief by individuals that their future is within their control and that external forces have little influence

External Locus of Control

The belief by individual s that their future is not within their control rather controlled by external forces

Tolerance of Ambiguity

The psychological characteristics that allows a person to be untroubled by disorder and uncertainty.

Business Plan

A document specifying the business details prepared by an entrepreneur prior to opening a new business. Characteristics of a plan are demonstrate a clear and compelling vision that creates an air of excitement, Provide clear and realistic financial projections, Profile potential customers and the target market,Include detailed information about the industry and competitors, Provide evidence of an effective entrepreneurial management team, Pay attention to good formatting and clear writing, Keep plan short, Highlight critical risks that may threaten business success, Spell out the sources and uses of start-up funds and operating funds, Capture the reader's interest with a killer summary.

Five Stages of Growth for an Entrepreneurial Company

1. Start-up 2. Survival 3. Survival 4. Take off 5. Resource Maturity

Start-up

In this stages the main problems are producing products services and obtaining customers

Survival

At this stage , the business demonstrates that it is a workable business entity. Concerns are finances-generating cash flows to run the business revenues exceeding expenses.

Success

Company solid based and profitable. Systems and procedures are in place to allow owner to slow down if desired.

Takeoff

Key problem is how to grow rapidly and finance the growth.

Resource Maturity

at this stage the company substantial financial gains may come at the cost of losing its advantages of small size including flexibility and entrepreneurial spirit.

The five componets of system theory

inputs, transformations. outputs, feedback, environment

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