is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
Defining goals for future organizational performance and deciding on the tasks and resources
The management function concerned with assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.
Means monitoring employee's activities, determining whether the organization is on target toward its goals, an making corrections as necessary.
is the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do
The use of minimal resources- raw materials, money, and people-to produce a desired volume of output
the cognitive ability to see the organization as a whole and the relationships among its parts.
the ability to work with and through other people and to work effectively as a group member.
The aspects of a culture that guide and influence relationships among people-their values, needs, and standards of behavior.
Forces that affect the availability, production, and distribution of a society's resources among competing users,
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
A subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labor productivity
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
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.
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.
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
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.
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.
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.
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
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.
An extension of the humanistic perspective that describes organizations as open systems characterized by entropy, synergy, and subsystem interdependence.
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.
an organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability
means unleashing the power and creativity of employees by giving them the freedom, resources, information, and skills to make decisions and perform effectively
all elements existing outside the organization's boundaries that have the potential to affect the organization
The layer of the external environment that directly influences the organization's operations and performance.
The environment that includes that includes the elements within the organization's boundaries
Portion of the external environment that represents events originating in foreign countries as well as opportunities for U.S. companies in other counntries
the dimension of the general environment that includes scientific and technological advancements in the industry and society at large.
The dimension of the general environment representing the demographic characteristics, norms, customs, and values of the population within which the organization operates.
The dimension of the general environment representing the overall economic health of the country or region in which the organization operates.
The dimension of the general environment that includes federal, state, and local government regulations and political activities designed to influence company behavior.
An interest group that works mwithin the legal-political framework to influence companies to behave in social responsible ways.
People and organizations in the environment who acquire goods or services from the organization.
Other organizations in the same industry or type of business that provide goods or services to the same set of customers.
People and organizations who provide the raw materials the organization uses to produce its output.
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.
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
Roles assumed b y people and/or departments that link and coordinate the organization with key elements in the external environment
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
the set of key values, beliefs, understanding , and norms that members of an organization share.
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
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
A phrase or sentence that succinctly expresses a key corporate value. Ex. Eagles don't flock. You gather them one at a time.
is a planned activity at a special event that is conducted for the benefit of an audience.
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.
Exports increase, and the company usually adopts a multidomestic approach meaning that competition is handled for each country independently.
Strategic orientation- Domestically oriented. Stage of Development- Initial foreign involvement. Cultural Sensitivity- of little importance. Managers assumptions- "One best way"
Strategic orientation-Export -oriented, multidomestic Stage of Development-Competitive positioning. Cultural Sensitivity- Very Important. Managers Assumptions- "Many good ways".
More than 1/3 of it sales outside of its home country. Similar product to many countries. Ex. Coca Cola
Stage of development- Explosion of international operations. Cultural Sensitivity- "The least-cost way".
Strategic orientation- global. Cultural Sensitivity- Critically Important. Managers Assumptions- "many good way"
Corporate international development transcends any single home country. Makes sales and acquiring resources wherever at lowest cost.
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
An entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign countries.
The barter of products for other products rather than their sale for currency. An estimated 20 percent of the world trade is countertrade.
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.
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.
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.
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.
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.
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
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)
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.
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.
events such as riots, revolutions, or government upheavals that affect the operations of international company.
A cultural attitude marked by the tendency to regard one's own culture as superior to others
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.
The process of initiating a business venture, organizing the necessary resources, and assuming the associated risks and rewards.
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.
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
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.
Company solid based and profitable. Systems and procedures are in place to allow owner to slow down if desired.
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.