Prin. of Management

Singapore airlines uses a dual strategy of...
Quality service and cost leadership. (Walmart does cost leadership too
Dual Strategies are unprofitable because...
they have contradictory investments and organizational procedures.
using resources wisely ad in a cost effective way (internal environment) (dependent on the ability to adapt to internal environment [pressures])
making right decisions and successfully implementing them. (external environment)
our Savior.
Porter's Five Force model
-Power of suppliers
-Power of Consumers
-Threat of New Entrants
-Threat of Substitute Products
-Industry Rivalry
Five Force model
Competitive Rivalry is in the center that points to each one. Threat of New Entrants points to the center. Power of Suppliers points to the center. Power of Consumers points to the center. Threat of Substitute Products points to the center.
Levels of Management
Top Management/ Middle Management/ First-Line Management
Failure to communicate strategy
causes frontline workers to invent their own strategy
to maximize labor productivity
What is the primary motivation for all management theory
No strategy for management
possibility of being non-efficient and non-effective
Classic management
Scientific Management and Administrative Management
Analyzing workflows with objective of improving labor productivity.
Gross innefficiencies
Total resources wasted during labor process
Research led to a key observation: Workers purposely operating well below their capacity
will power..internal desire....??
the initiative and incentive method
offered an incentive to increase productivity but left it up to the worker to figure out how
time studies
scientifically determining the optimum way to perform a job
challenges/limitations of scientific management
-not conducive to dynamic business environment
- monotonous routine
- innovation dampened
- jobs are "deskilled"
a key element of effective management
determining the alignment of the environment and the organization and maintaining that alignment
external environment
general environment and task environment are part of the
internal environment
-Board of Directors
-Physical Environment
market of input
suppliers of raw materials, components, labor, and service (such as expertise) to a firm.
market of outputs
the ability of customers to put pressure on the firm.
threat of new inputs
profitable markets will have new entrants.
general environment
-international dimension
-technological dimension
-economic dimension
-socioculture dimension
-political-legal dimension
task environment
-strategic partners
the key is to no simply identify the inputs
but to see how they create a response in the organization.
constant creates a response

(its cold outside so you put on a jacket)
Relationship between organizations and their environment
effectiveness follows how well the organization understands, reacts to, and influences its environment.
Measuring organizational effectiveness
-systems resource approach
-internal process approach
-goal approach
-strategic constituencies approach
-combined (Domain) approach
systems resource approach
effectiveness: is the ability to acquire scarce and valued resources from the environment.

preffered: a clear connection exists between inputs and outputs.

(inputs) --> transformation --> outputs

importance on inputs
Internal process approach
effectiveness: is the ability to excel at internal efficiency, coordination, motivation, and employee satisfaction.

preferred: costs, outputs, and satisfaction are easily measurable.

inputs --> (transformation) --> outputs

importance on transformation
Goal approach
effectiveness: is the ability to excel at one or more output goals.

preferred: goals are clear, time bound and measurable.

inputs --> transformation --> (outputs)

importance on outputs
strategic constituencies approach
the extent to which the organization satisfies the demands and expectations of strategic stakeholders

preferred: constituencies have powerful influence on the organization and the organization must.

(inputs)--> (transformation) --> (outputs)
Systematically delegating power and authority throughout the organization to middle- and lower-level managers.
the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.
when members of a group differ from one another along dimensions such as age, gender,or ethnicity.
Typically NO
Do individuals often seek diversity in social groups?
Manager challenge
hiring individuals based on ability to progress the firms initiatives, and not based on hiring managers comfort level.
Increasing diversity/multiculturalism benefits organization how?
-changing demographics in the labor force.
-increased awareness that diversity improves the quality of the workforce
-legislative and legal actions mandating and fostering diversity
-the globalization movement
individual strategies for managing diversity and multiculturalism
-willingness to communicate
job design
the determination of an individual's work related responsibilities
Organization Change
Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).
planned change
Is designed and implemented in an orderly and timely fashion in anticipation of future events.
Reactive Change
Is a piecemeal response to events and circumstances as they develop.
Lewin Model
unfreezing, implementing change, refreezing
Individuals must be shown why the change is necessary.
The change itself is implemented
Involves reinforcing and supporting the change so that it becomes a permanent part of the system
The managed effort of an organization to develop new products or services or new uses for existing products or services
forms of innovation
radical, incremental, technical, managerial, product, process
Radical Innovation
A new product, service, or technology developed by an organization that completely replaces the existing product, service, or technology in an industry.
Incremental Innovation
A new product, service, or technology that modifies an existing one.
Job Specialization Alternatives
job rotation, job enlargement, job enrichment
Job Specialization (Division of Labor)
The degree to which the overall task of the organization is broken down and divided into smaller component parts
Job Rotation
Involves systematically moving employees from one job to another.
Job Enlargement
Increases the total number of tasks workers perform
Job Enrichment
Attempts to increase both the number of tasks a worker does and the control the worker has over the job.
The process of grouping jobs according to some logical arrangement.
Rationale for Departmentalization
Organizational growth exceeds the owner-manager's capacity to personally supervise all of the organization
Types of Departmentalization
functional, product, customer, location
Power that has been legitimized by the organization
The process by which managers assign a portion of their total workload to others.
Systematically delegating power and authority throughout the organization to middle- and lower-level managers.
Systematically retaining power and authority in the hands of higher-level managers.
The process of linking the activities of the various departments of the organization.
The Need for Coordination
Where departments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.
coming up with ideas and goals and how to implement them
Deciding how to best use your resources to achieve your goal
monitoring employees and maintaining a the company goals
motivating your employees to achieve the goals of the organization
what order does the Management Process go in..
1.) Planning and Decision Making
2.) Organizing