Management

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Management'

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

is the means of attaining the organization's goals

Effectivness

is the organization's ends, the goals. To be effective To achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals means to achieve results, to make the right decisions and to successfully carry them out so that they achieve the organization's goals.

Competitive Advantage

the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them. This means an organization must stay ahead in four areas: (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency.

Four Functions of Management

Planning, Organizing, Leading and Controlling

Top Managers

they make the long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it make long-term decisions about the overall direction of the organization and establish the

Middle Managers

they implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them.

o First-line managers

; also called supervisory managers; they make the short-term operating decisions, directing the daily tasks of nonmanagerial personnel make short-term operating decisions, directing the daily tasks of nonmanagerial personnel.

• The 'three skills managers need'

o Technical skills o Human skills

• Mintzberg's Three Managerial Roles

Interpersonal Roles
Informational Roles
Decisional Roles

nterpersonal Roles

Three Managerial Roles
o Interpersonal Roles—Figurehead, Leader, and Liaison In their interpersonal roles. Of the three types of managerial roles, the roles in which managers interact with people inside and outside of their work units. The three interpersonal roles include figurehead, leader, and liaison activities, managers interact with people inside and outside their work units. The three interpersonal roles include figurehead, leader, and liaison activities.

o Informational Roles

Monitor, Disseminator, and Spokesperson The most important part of a manager's job, Mintzberg believed, is information handling, because accurate information is vital for making intelligent decisions. In their three informational roles. One of three types of managerial roles: managers receive and communicate information with other people inside and outside the organization as monitors, disseminators, and spokespersons—as monitor, disseminator, and spokesperson—managers receive and communicate information with other people inside and outside the organization

o Decisional Roles

Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator In their decisional roles. One of three types of managerial roles: managers use information to make decisions to solve problems or take advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler, resource allocator, and negotiator, managers use information to make decisions to solve problems or take advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler, resource allocator, and negotiator.

o Technical skills

Skills that consist of the job-specific knowledge needed to perform well in a specialized field consist of the job-specific knowledge needed to perform well in a specialized field. Having the requisite technical skills seems to be most important at the lower levels of management—that is, among first-line managers.

o Conceptual skills

Skills that consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together. Conceptual skills are particularly important for top managers, who must deal with problems that are ambiguous but that could have far-reaching consequences.

o Human skills

The ability to work well in cooperation with other people in order to get things done consist of the ability to work well in cooperation with other people to get things done—especially with people in teams, an important part of today's organizations

• Evidence based management

translating principles based on best evidence into organizational practice
o -bringing rationality to the decision making process

Historical perspective

Classical
o -Behavioral
o -Quantitative

Contemporary perspective

Systems
o -Contingency
o -Quality-management

o Scientific management

• -emphasized the scientific study of work methods to improve the productivity of individual workers
• -Frederick W. Taylor, Frank and Lillian Gilbreth

Lillian Gilbreth

o •1st woman to earn a Ph.D. in Industrial Psych. & to join the Society of Mechanical Engineers
o •First "Superwoman" who balanced work & home
• -12 children & ran a consulting practice
• -Purdue: Professor of Management & 1st female Prof. of Engineering
• -Designed kitchens & appliances for GE
o •Focused on human side of management
• -Office communication, incentive programs, job satisfaction & training
o •Convinced U.S. government to pass laws
• -Worker safety, child labor & ergonomics

• Henry Fayol

o -French engineer and industrialist
o -first to identify the major functions of management
o •Planning, organizing, leading, controlling & coordinating

• Max Weber

o •Weber believed that a bureaucracy was a rational, efficient, ideal organization based on the principles of logic
o •Bureaucracy → good

• Mary Parker Follet

o Øsocial worker and social philosopher
o 1.Organizations should be operated as "communities"
o 2.Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties
• ØDomination, compromise, integrative solutions
• ØInspired work in negotiation and conflict resolution
o 3.The work process should be under control of workers with relevant knowledge

• Elton Mayo

o -conducted several productivity studies at the Hawthorne Plant of Western Electric Co. in Illinois

• Hawthorne Effect

o -employees worked harder if...
o -....they received special attention from supervisors and...
o ....thought that managers cared about their welfare

Maslow's Hierarchy of Needs

SELF
Actualization
Esteem
Social
Safety
Physiological

Theory X

• -represents a pessimistic, negative view of workers
• -workers are irresponsible, resistant to change, lack ambition, hate work, and want to be led

Theory Y

• -represents an optimistic, positive view of workers
• -workers are considered capable of accepting responsibility, self-direction, self control and being creative

• Systems Thinking

o -regards the organization as a system of interrelated parts
o -collection of subsystems
o -part of the larger environment

Open system

• -continually interacts with its environment

Closed system

• -has little interaction with its environment

• Contingency Theory

o -emphasizes that a manager's approach should vary according to the individual and the environmental situation
o -most practical because it addresses problems on a case-by-case basis

• Total Quality Management

o -comprehensive approach-led by top management and supported throughout the organization-dedicated to continuous quality improvement, training, and customer satisfaction

• W. Edwards Deming

The W. Edwards Deming Institute® is a nonprofit organization that was founded in 1993 by noted consultant Dr. W. Edwards Deming.
The aim of the Institute is to foster understanding of The Deming System of Profound Knowledge™ to advance commerce, prosperity and peace.

o internal stakeholders

Employees, owners, and the board of directors consist of employees, owners, and the board of directors, if any.

o external stakeholders

- People or groups in the organization's external environment that are affected by it. This environment includes the task environment and the general environment.—people or groups in the organization's external environment that are affected by it

o task environment

Eleven groups that present workers with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee groups, local communities, financial institutions, government regulators, special-interest groups, and mass media. consists of 11 groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media.

o general environment

Also called macroenvironment; in contrast to the task environment, it includes six forces: economic, technological, sociocultural, demographic, political-legal, and international., or macroenvironment

• Economic forces

general economic conditions/trends - unemployment, inflation, interest rates, economic growth - that may affect an organization's performance

Technological forces

new developments in methods for transforming resources into goods and services
Which technological forces are changing how education is being "delivered"?

Sociocultural forces

Influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

Demographic forces

influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

Political-Legal forces

changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

International forces

changes in the economic, political, legal, and technological global system that may affect an organization

• Importance of Boards of Directors

o Board members are very important in setting the organization's overall strategic goals and in approving the major decisions and salaries of top management.

o Sarbanes-Oxley Act of 2002

Often shortened to SarbOx or SOX; act establishing requirements for proper financial record keeping for public companies and penalties for noncompliance., often shortened to SarbOx or SOX, established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance.

o corporate social responsibility (CSR)

o corporate social responsibility (CSR) - The notion that corporations are expected to go above and beyond following the law and making a profit, to take actions that will benefit the interests of society as well as of the organization., the notion that corporations are expected to go above and beyond following the law and making a profit.

lobalization

The trend of the world economy toward becoming a more interdependent system.—the trend of the world economy toward becoming a more interdependent system.

o The global village -

shrinking" of time and space as air travel and electronic media make it easier for the people of the globe to communicate with one another. refers to the "shrinking" of time and space as air travel and the electronic media have made it easier for the people of the globe to communicate with one another.

o Ethnocentric manager

Managers who believe that their native country, culture, language, and/or behavior are superior to others. believe that their native country, culture, language, and behavior are superior to all others.

o Polycentric managers

Managers who take the view that native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone. take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.

o Geocentric managers

Managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective. accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

• 5 reasons firms expand internationally

Availability of Supplies
New Markets
Lower Labor Costs
Access to Finance Capital Companies
Avoidance of Tariffs & Import Quotas Countries

• 5 ways firms expand

Outsourcing, Importing Exporting, Licensing & Franchising, Joint Ventures, Wholly-Owned subsidiaries

o outsourcing

Subcontracting of services and operations to an outside vendor. Using suppliers outside the company to provide goods and services. is defined as using suppliers outside the company to provide goods and services.

• Importing

Buying goods outside the country and reselling them domestically., a company buys goods outside the country and resells them domestically.

o Exporting

- Producing goods domestically and selling them outside the country., a company produces goods domestically and sells them outside the country.

o Licensing

- Company X allows a foreign company to pay it a fee to make or distribute X's product or service., a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.

o Franchising

- A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services. is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.

o joint venture

- An organization that joins forces with another organization to realize strategic advantages that neither could have achieved alone; a U.S. firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country., also known as a strategic alliance. Describes the relationship of two organizations that join forces to achieve advantages that neither can perform as well alone., with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country.

holly-owned subsidiary

- A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by the organization. is a foreign subsidiary that is totally owned and controlled by an organization

o trade protectionism

The use of government regulations to limit the import of goods and services.—the use of government regulations to limit the import of goods and services

o tariff

A trade barrier in the form of a customs duty, or tax, levied mainly on imports. is a trade barrier in the form of a customs duty, or tax, levied mainly on imports.

o import quota

- A trade barrier in the form of a limit on the numbers of a product that can be imported. is a trade barrier in the form of a limit on the numbers of a product that can be imported.

• Embargo

A complete ban on the import and/or export of certain products. is a complete ban on the import or export of certain products.

o World Trade Organization (WTO)

One of three principal organizations designed to facilitate international trade; it is designed to monitor and enforce trade agreements. is designed to monitor and enforce trade agreements. The agreements are based on the General Agreement on Tariffs and Trade (GATT), an international accord first signed by 23 nations in 1947

o International Monetary Fund (IMF)

One of three principal organizations designed to facilitate international trade; its purpose is to assist in smoothing the flow of money between nations. is designed to assist in smoothing the flow of money between nations. The IMF operates as a last-resort lender that makes short-term loans to countries suffering from unfavorable balance of payments

o World Bank -

One of three principal organizations designed to facilitate international trade; its purpose is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications. is to provide low-interest loans to developing nations for improving transportation, education, health, and

o trading bloc

Also known as an economic community; a group of nations within a geographical region that have agreed to remove trade barriers with one another., also known as an economic community A group of nations within a geographical region that have agreed to remove trade barriers with one another., is a group of nations within a geographical region that have agreed to remove trade barriers with one another.

NAFTA

Formed in 1994, the trading bloc consisting of the United States, Canada, and Mexico. is a trading bloc consisting of the United States, Canada, and Mexico, encompassing 435 million people. The agreement is supposed to eliminate 99% of the tariffs and quotas among these countries, allowing for freer flow of goods, services, and capital in North America. Trade with Canada and Mexico now accounts for one-third of the U.S. total, up from one-quarter in 1989.

. The EU

the 27 Countries of the European Union Formed in 1957, the European Union (EU)Union of 25 trading partners in Europe. Nearly all internal trade barriers have been eliminated (including movement of labor between countries), making the EU a union of borderless neighbors and the world's largest free market. By 2002, such national symbols as the franc, the mark, the lira, the peseta, and the guilder had been replaced with the EU currency, the euro. There has even been speculation that someday the euro could replace the U.S. dollar as the dominant world currency

APEC

21 Countries of the Pacific Rim The Asia-Pacific Economic Cooperation (APEC) is a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties. Most countries with a coastline on the Pacific Ocean are members of the organization, although there are a number of exceptions. Among the 21 members are the United States, Canada, and China. Since the founding in 1989, APEC members have worked to reduce tariffs and other trade barriers across the Asia-Pacific region. APEC member countries are highlighted below.

. ASEAN—

11 Countries of the Association of Southeast Asian Nations The Association of Southeast Asian Nations (ASEAN)A trading bloc consisting of 11 countries in Asia: Brunei, Cambodia, China, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. is a trading bloc consisting of 11 countries in Asia: Brunei, Cambodia, China, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. Like other trading blocs, ASEAN is working on reducing trade barriers among member countries. When China was admitted at the beginning of 2010, ASEAN became one of the largest free-trade zones, encompassing 1.9 billion people.79

Mercosur

10 Countries of Latin America The MercosurThe largest trade bloc in Latin America, with four core members: Argentina, Brazil, Paraguay, Uruguay. is the largest trade bloc in Latin America and has four core members—Argentina, Brazil, Paraguay, and Uruguay, with Venezuela scheduled to become a full member upon ratification by other countries—and five associate members: Bolivia, Chile, Colombia, Ecuador, and Peru. Besides reducing tariffs by 75%, Mercosur nations are striving for full economic integration, and the alliance is also negotiating trade agreements with NAFTA, the EU, and Japan.

. CAFTA-DR

Seven Countries of Central America The Central America Free Trade Agreement (CAFTA-DR)Trade agreement involving the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua and which is aimed at reducing tariffs and other barriers to free trade.

o Hofstede model of four cultural dimensions

- Model proposed by Geert Hofstede that identified four dimensions along which national cultures can be placed: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity., which identified four dimensions along which national cultures can be placed: (1) individualism/collectivism, (2) power distance, (3) uncertainty avoidance, and (4) masculinity/femininity.

• Individualism/collectivism—how loosely or tightly are people socially bonded?

The United States, Australia, Sweden, France, Canada, and Great Britain have high individualistic values. Individualism indicates a preference for a loosely knit social framework in which people are expected to take care of themselves. Costa Rica, Thailand, Mexico, China, Guatemala, and Ecuador have high collectivist values. Collectivism indicates a preference for a tightly knit social framework in which people and organizations are expected to look after each other.

• Power distance—how much do people accept inequality in power?

refers to the degree to which people accept inequality in social situations. High power distance, such as occurs in Mexico, India, Thailand, Panama, and the Philippines, means that people accept inequality in power among people, institutions, and organizations. Low power distance, such as occurs in Sweden, Germany, Israel, and Australia, means that people expect equality in power.

• Uncertainty avoidance—how strongly do people desire certainty?

This dimension is about being comfortable with risk and uncertainty. Countries such as Japan, France, Greece, Portugal, and Costa Rica are very high in uncertainty avoidance, which expresses people's intolerance for uncertainty and risk. High uncertainty avoidance means people feel uncomfortable with uncertainty and support beliefs that promise certainty and conformity. Countries such as Sweden, India, the United States, Singapore, and Jamaica are very low on this dimension. Low uncertainty avoidance means that people have high tolerance for the uncertain and ambiguous.

• Masculinity/femininity—how much do people embrace stereotypical male or female traits

Masculinity expresses how much people value performance-oriented masculine traits, such as achievement, assertiveness, and material success. Countries with strong masculine preferences are Japan, Mexico, Austria, and Germany. Femininity expresses how much people embrace relationship-oriented feminine traits, such as cooperation and group decision making. Sweden, Norway, Thailand, Denmark, Costa Rica, and France are high on this cultural dimension.

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