getting work done through others
getting work done with minimum effort, expense, or waste
accomplishing tasks that help fulfill organizational objectives
planning, organizing, leading, controlling
4 functions of management
involves determining organizational goals and means for achieving them
deciding where decisions will be made, who will do what jobs/ tasks and who will work for whom in the company
involves inspiring and motivating workers to work hard to achieve organizational goals
monitoring progress toward goal achievement and taking corrective action when progress isn’t being made
top managers, middle managers, first line managers, team leaders
levels of management and their responsibilities
responsibilities are change, commitment, culture, environment (CEO, COO, CFO, CIO)
responsibilities are resources, objectives, coordination, sub-unit performance, strategy implementation (general, plant, regional, divisional)
first line managers
responsibilities are non-managerial worker supervision, teaching and training, scheduling, facilitation (office, shift, department)
responsibilities are facilitation, external relationships, internal relationships (team leader, team contact, group facilitator)
thoroughly studying and testing different work methods
Fredrick W. Taylor
father of scientific management
developed 4 principles of scientific management
introduced time study
time taken by good workers to complete each part of their job
1- develop a science for each element of a mans work; replaces rule of thumb method
2- scientifically select and train, teach and develop the workman, whereas in the past he chose his own work and trained himself
3- cooperate with men to ensure all work being done is in accordance with principles of the science that has been developed
4- there is almost equal division of work between the workmen and manager, everyone does what they’re best at
4 principles of scientific management
motion study to simplify work and improve productivity
Frank & Lilly Gilbreth’s contribution to management theory
breaking each task/job into its separate motions and then eliminating those that are unnecessary or repetitive
introduced the Gantt chart
Gantt’s contribution to management theory
indicates what tasks must be completed at which times in order to complete a task
Max Weber proposed it
Characterized elements of bureacracy
Bureaucracy and bureaucratic management principles
exercise control on the basis of knowledge, expertise, or experience
1- qualification based on hiring and merit
2- chain of command and division of labor
3- impartial application of rules and procedures
4- records in writing
5- managers separate from owner
characterized elements of bureaucracy
14 principles of management and 5 functions of managers
Henry Fayol’s contributions to management theory
developed an approach of integrative conflict resolution, domination, and compromise
Mary Parker-Follett theory on conflict
economy, technology, sociocultural, political/legal
growing = has more money to spend and shrinking = less to spend; shows manager’s level of confidence and future business growth
knowledge, tools, and techniques used to transform inputs into outputs; changes help companies provide better products; companies should use the new to improve their products and services
includes demographic characteristics, general behavior, attitudes and beliefs of people in a particular society; changes in demographic characteristics affect how companies staff their businesses; changes in behavior, attitudes, and belief affect the demand for a business’s products and services
legislation, regulation, and court decisions, and court decisions that govern and regulate business behavior; managers must be aware of laws, regulations, and potential lawsuits that could affect their business
customers, competitors, suppliers, industry regulation, advocacy group
people who purchase products and services
companies in the same industry that sell similar products/services
companies that provide material, human, financial, and informational resources to other companies
regulations and rules that govern the business practices and procedures
concerned citizens, band together to try to influence the business practices
companies can be prosecuted and punished for their unethical behavior
cover offenses defined by federal law
encourage companies to take proactive steps that will discourage white collar crime
give companies an incentive to cooperate and disclose illegal activities to federal authories
1991 US sentencing commission
shareholder model and stakeholder model
2 models of social responsibility
organization’s overriding goal should be profit maximization for the benefit of shareholders
managements most important responsibility is long term survival
reactive strategy, defensive strategy, accomodative strategy, proactive strategy
4 strategies for responding to social responsibility
company does less than expected by society
company admits responsibility for a problem but does the least required to meet societal expectations
company accepts responsibility for a problem and does all that society expects to solve the problem
company anticipates a problem before if occurs and does more than society’s expectations
employees put forth greater effort when following a plan
leads to persistence
encourages the development of task strategies
works for companies and individuals
benefits of planning
impedes change and prevents needed adaptation
creates a false sense of certainty
detachment of planners
pitfalls of planning
-develop effective action plans (who, what, when, how)
-track progress toward goal acheivement
-revise existing plan or begin processing a new one
steps for effective planning
guidelines for good goal making
achieved by using resources to provide greater value for customers than competitors can- other companies cannot duplicate what value you are providing
– valuable resource: improves company’s efficient and effectiveness
– rare resources: not controlled or possessed by many competing firms
– imperfectely imitable resource: impossible or extremely difficult to duplicate
– non-substitutable resource: produces value and has no equivalent substitutes
what makes competitive advantage sustainable?
minimizes risk by diversifying investment among various businesses or product lines
Porter’s 5 Industry Forces
Character of the rivalry, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, bargaining power of buyers
character of the rivalry
measure of the intensity of competitive behavior between companies in an industry
threat of new entrants
the measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry
threat of substitute products or services
a measure of the ease with which customers can find substitutes for an industry’s products or services
bargaining power of suppliers
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs
bargaining power of buyers
a measure of the influence that customers have on a firm’s price
defenders, prospectors, analyzers, reactors
4 types of adaptive strategy
seek moderate, steady growth by offering a limited range of products and services to a well-defined set of customers
seek fast growth by 1. searching for new market opportunities 2. encouraging risk taking 3. being the first to bring innovative new products to market
(blend of defender and prospector strategies)
seek moderate, steady growth and limited opportunities for fast growth
(DO NOT follow a consistent adaptive strategy)
react to changes in the external environment after they occur
operations, systems, human relations, information, contingency
types of management
1. Eli Whitney- private gun contractor: introduced the concept of manufacturing using standardized, interchangeable parts
2. Gaspard Monge- explained techniques for drawing three dimensional objects on paper
3. Oldsmobile motor work- invented just-in-time inventory systems
human relations management
1. Mary Parker Follett-integrative conflict resolution
2. Elton Mayo-played a significant role in Hawthorne study
3. Chester Barnard-proposed a comprehensive theory of cooperation in formal organizations
1. Paper and printing press revolutionized the business use of information
2. Typewriters and personal computers enabled easier and faster production of business correspondence
3. Telegraph, telephone and internet increased access to timely information
1. set of interrelated elements of parts that function as a whole (subsystems are smaller systems that operate within the context of a larger one)
2. Synergy: occurs when subsystems can produce more than they can working apart
3. Open system: sustain themselves only by interacting with their environments
4. Closed system: sustain themselves without interacting with their environments
1. Holds that there are no universal management theories
2. Effective management theory depends on the kinds of problems that managers are facing at a particular time and place
set of interrelated elements of parts that function as a whole (subsystems are smaller systems that operate within the context of a larger one)
occurs when subsystems can produce more than they can working apart
sustain themselves only by interacting with their environments
sustain themselves without interacting with their environments
Integrative conflict resolution
approach to deal with conflict in which both parties indicate their preferences—find an alternative that meets the needs of both parties
an approach to dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party’s desires and objectives
an approach to dealing with conflict in which both parties give up some of what they want in order to reach agreement on a plan to reduce or settle the conflict
adaptability, involvement, clear mission and consistency
Cultures based on above factors help companies achieve: higher sales growth, return on assets, profits, quality, and employee satisfaction
Business mission organization and culture
Factors that affect successful cultures
The ethical intensity of the decision, the moral development of the manager, and the ethical principles used to solve the problem
methods to test for ethics
Managers can encourage more ethical decision making in their organizations by
1. Carefully selecting and hiring ethical employees
2. Establishing a specific code of ethics
3. Training employees to make ethical decisions
4. Creating an ethical climate
Management’s involvement in ethics
Persons or groups with legitimate interest in a company
groups on which the organization depends for its long term survival; they include shareholders, employees, customers, suppliers, governments and local communities. Needs of primary take precedence to secondary.
media and special interest groups can influence or be influenced by the company. They do not engage in regular transactions with the company and are not critical to its long term survival.
Top to Bottom
1. Top managers=vision and mission, strategic plans
2. Middle managers=tactical plans and management by objectives
3. First level managers= operational plans, standing plans, single use plans
different approaches to planning
STRATEGIC plans: overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years
TACTICAL plans: plans created and implemented by middle managers that direct behavior. efforts. and attention over the next six months to two years
OPERATIONAL plans: day to day plans, developed and implemented by lower level managers, for producing or delivering the organization’s products and services over a 30 day to 6 month period
SINGLE USE plans: plans that cover unique one time events
STANDING plans: plans used repeatedly to handle frequently recurring events
different types of planning
overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years
plans created and implemented by middle managers that direct behavior. efforts. and attention over the next six months to two years
day to day plans, developed and implemented by lower level managers, for producing or delivering the organization’s products and services over a 30 day to 6 month period
SINGLE USE PLAN
plans that cover unique one time events
plans used repeatedly to handle frequently recurring events
A scientific investigation in detail of each piece of work
Which of the following is Gantt’s approach to training??
According to bureaucratic management, _____ should supervise the organization.?
By ?having a place for everyone and having everyone in his or her place
According to Henri Fayol’s fourteen principles of management, in which of the following ways can order be obtained in an organization
General and specific environments
Which of the following are the two types of complex environments in which organizations operate?
_____ focuses on the psychological and social aspects of work
A systems approach to management encourages managers to view each division as a separate, vital entity.
According to Henri Fayol, _____ is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom.
time and motion studies
Which of the following management processes is used to determine how workers can perform their tasks more efficiently?
The first technologies to truly revolutionize the business use of information were paper and the printing press.
Which of the following statements about information management is true?
in this zone, managerial requests are automatically accepted.
According to Barnard, which of the following statements is true about a zone of indifference?
Mary Parker Follett believed that managers could best deal with conflict through compromise.
Daniel works at an electrical equipment manufacturing plant. He manages to produce eight units of equipment per day while his coworkers usually manage to produce only five per day. In this context, Daniel is the _____ among his coworkers.
Which of the following is NOT an example of a commonly used operations management tool?
According to Mary Parker Follett, _____ involves invention, and the clever thing is to recognize this, and not to let one’s thinking stay within the boundaries of two alternatives which are mutually exclusive.
Which of the following types of systems function without interacting with their environment?
According to webers bureaucratic management people should leave by virtue of their rational legal authority t/f
Use group dynamics to ensure organizational goals are met
Which of the following is not part of the principles of scientific management?
According to Fayol’s 14 principles of management is espirit de corps is the source of major organizational conflict TF
Managers need to spend more time analyzing problems
Which of the following is a practical implication of the contingency approach?
According to Henry Fayol’s 14 principles of management _______ requires that compensation should be fair and satisfactory to both the employees in the organization
Which of the following management theorists provided managers with a better understanding of the affect Group social interactions and employee satisfaction have on individual and group performance?
The term behavioral multiplication refers to the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create. T/F
An advocacy group for ethical treatment of animals has been protesting against a cosmetic company as there were reports about the company being involved in animal testing. The group has been persuading customers to stop buying cosmetics from the company. Which of the following advocacy group tactics is illustrated in the scenario?
business confidence indices that show managers level ocf confidence about future business growth is what managers prefer
they can also use Organization for Economic Cooperation and development but it has been proven to be inaccurate
Briefly identify the two predictors of future economic activity that are available to managers for decision making. Specify which one managers typically prefer.
It is most likely to be high when environmental change is extensive.
Which of the following statements is true about environmental uncertainty?
Environmental complexity refers to the degree of change in the external factors that affect organizations.
A _____ approach is an advocacy group tactic that typically involves framing the group’s concerns as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.
It is most likely to be low when environmental complexity is at a low level.
Which of the following statements about environmental uncertainty is true?
_____ refers to a transaction in which one party in the relationship benefits at the expense of the other.
?_____refers to identifying and addressing customer needs, trends, and issues before they occur.
In contrast to the general segment of the external environment that directly influences an organization, changes in the specific segment of an organization’s external environment indirectly affect the way a company conducts its business. T/F
Which of the following is a part of the general environment of an organization?
By definition, _____ are people admired for their qualities and achievements within the organization.
The general environment is unique to each firm’s industry and directly affects the way it conducts day-to-day business. T/F
____ refers to the protocols and guidelines that govern the business practices and procedures of specific businesses, and professions.
organizational stories and organizational heroes
A high school football team develops a sense of history for its current players by raising banners showing its success – five championships – and the great players from the past who went on to play in international games in its stadium and locker room. What tactics for maintaining organizational culture is the high school football team using?
Its regular customers
Which of the following is a component of the specific environment that would directly influence a restaurant’s day-to-day operation?
Advocacy groups cannot directly regulate organization practices. t/f
_____ culture refers to a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes.
Public communications, media advocacy, and product boycotts are techniques used by advocacy groups to influence companies. t/f
Managers often prefer economic statistics to business confidence indices as tools for managerial decision making because of their inherently greater accuracy. t/f
Which of the following is a part of the general environment of organizations?
A court ruling regarding the unfair firing of employees is a development in the _____ component of the general environment.
?_____ is the process of gathering information about job applicants to decide who should be offered a job.
A primary source of organizational culture is the company founder. t/f
they can affect public perceptions and opinions
Secondary stakeholders are important to a company because _____.
A consumer advocacy group is critical of ClothesRoom, an online clothing platform that was found to declare a lower price for certain customers while quoting a higher price for others. Moreover, the platform promised a quick one-day delivery for an additional $5. It was later found that the regular delivery service cost less and delivered in roughly the same time frame. The consumer advocacy group wants ClothesRoom to take _____ responsibility for its actions and do what is right.
Examining the loss incurred by the victims
According to the U.S. Sentencing Commission Guidelines for Organizations, which of the following is a method used to determine the level of an offense?
business magazines that run ads for the training video
Omega, a business training company, is currently marketing a 30-minute training video designed to teach companies how to deal with and prevent damaging gossip. Which of the following is an example of a secondary stakeholder group for Omega?
People at the _____ of moral development use internalized ethical principles to solve ethical dilemmas.
A pharmaceutical company recently patented a medicine that can cure jaundice in half the time an average person takes to recover. However, the company is selling the medicine at a higher price. It is focusing on its _____ responsibility.
The top managers behaving ethically
Which of the following is an important step in establishing an ethical climate in an organization?
In an attempt to spread awareness about climate change and global warming, Sparkle Fruit Juice decided to conduct awareness programs in its community. This move is an example of _____.
Because of the lack of company action on their complaints
Why is it often difficult for an employee to assume the role of whistleblower?
Who among the following are the secondary stakeholders of an organization?
A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.
the preconventional level, the conventional level, and the postconventional level
The three stages of moral development identified by Kohlberg are ____.
primary and secondary
The two general categories of stakeholders are _____ stakeholders.
According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other. t/f
The concept of magnitude of consequences is the total harm or benefit derived from an ethical decision.
Zett Technologies is a company that primarily focuses on enhancing the smartphone experience. It has recently developed a new operating system that is radically different from its previous one. Keeping this in mind, smartphone users are allowed to download a ‘trial pack’ to see if they found any problems or liked some changes made. The company is using a _____ approach to social responsibility.
According to the _____ model, management’s most important responsibility is long-term survival.
Teeny Toys, a chain of toy stores, has decided to donate free toys to orphanages across the country. The company is aiming at fulfilling its _____ responsibilities.
Principle of utilitarian benefits
StaticX Inc. was thinking about discontinuing the health and fitness programs offered to its employees. This was because the company wanted to cut its costs. However, the company dropped the decision because most of its employees were benefiting from the programs and discontinuing them would have very adverse effects on the employees. Which principle best describes the decision made by StaticX Inc.?
U.S. Sentencing Commission Guidelines
The _____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn’t know about the unethical behavior.
select and hire ethical employees
Managers can use integrity tests to _____.
According to Kohlberg’s model of moral development, people at the _____ make decisions that conform to societal expectations.
When people believe their work environment is ethical, they are six times more likely to stay with that company.
Which of the following statements about ethics is true?
The time, money, and attention diverted to social causes undermine market efficiency.
In the context of corporate social responsibility, which of the following statements would Milton Friedman agree to?
Assign a devil’s advocate to criticize and question a solution.
Which of the following is the final step in establishing a devil’s advocacy program??
Gathering and providing performance feedback
Which of the following is an accepted method for tracking progress toward goal achievement?
For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress. t/f
Who among the following is responsible for developing operational plans?
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____.
_____ plans are the day-to-day plans for producing or delivering the organization’s products and services.
encouraging workers’ participation in goal setting
The most popular approach to increasing goal commitment is ____.
Generate a potential solution.
Which of the following is the first step ?in establishing a devil’s advocacy program?
Develop commitment toward the goal.
The manager of a car manufacturing company in the U.S. wants to set up factories in three? other countries by the end of the year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?
The _____ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.
____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative.
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).
Top management is responsible for developing ____.
____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
Evaluation of ideas is encouraged.
Which of the following is NOT one of the rules for effective brainstorming?
A potential pitfall of planning is the detachment of planners.
Which of the following is a drawback of planning?
The manager of a packaging and shipping company has set a short-term goal of increasing the customer base by 5% in the next two months. ?In this context, the manager has set a _____.
A strategic objective is a statement of a company’s purpose or reason for existing.t/f
The three kinds of standing plans are policies, procedures, and rules and regulations. t/f
A single-use plan
What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturing company?
A(n) _____ is a brief, two-sentence statement of a company’s purpose for existing.?
WindWings is a company that manufactures and markets flutes, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world’s flute industry. In terms of the adaptive strategies, WindWings would most likely be categorized as a(n) _____.
Companies often choose a stability strategy when their external environment doesn’t change much or after they have struggled with periods of explosive growth. t/f
Gemini Inc. decided to decrease its product prices to respond to its competitors. To achieve this, the company needed to lower its costs so as to maintain profitability. The managers at Gemini, however, have been buying expensive raw materials and hiring many employees. Which of the following is most likely to be happening in Gemini?
The term _____ refers to the overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?”
The three steps of the strategy-making process are (1) assess the need for strategic change, (2) conduct a situational analysis, and (3) choose the strategic alternatives. t/f
When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.t.f
_____ strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
the assessment of the need for strategic change.
The strategy-making process begins with:
A _____ is an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment.
The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.
Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers. t/f
low resource similarity
Under conditions of _____, a competitive attack by a rival is more likely to produce sustained competitive advantage.
_____ are companies that do not follow a consistent adaptive strategy but instead respond to changes in the external environment after they occur.
The research on diversification in portfolio management indicates that the best approach is probably _____.
Reactors follow the consistent strategy of anticipating and reacting to potential external opportunities and threats prior to their occurrence. t/f
MCRS Toys manufactures learning toys and games exclusively for children in the age group of one to six years. The company is using a(n) _____ strategy.
The second step in a retrenchment strategy is _____.
SpokedWheels Inc. introduced a specialized mountain bike to the market. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes that are tough, durable, and reliable. This ability is the company’s _____.
Samantha’s, a chain of coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of _____.
Wisher Technologies became a large software development company through a merger with Ringus Tech., a growing software solutions firm. Since both the companies had similar core capabilities, this would be classified as an example of _____.
Strategic reference points
_____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
_____ is a discrepancy between a company’s intended strategy and the strategic actions managers take when actually implementing that strategy.
?_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.
Which skills increase in their importance to success as managers’ rise through the managerial ranks
Managers must strive for _____, which is accomplishing tasks that help fulfill organizational objectives such as customer service and satisfaction.
implement the changes generated by top managers.
Middle managers will most likely have to:
The top mistake made by derailers was that they were insensitive to others.
There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies?
Establishing a positive organizational culture that encourages employees to be passionate about their clients
Which of these functions is exclusive to a top manager?
First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing strategies for achieving these objectives. t/f
There are four decisional sub-roles: entrepreneur, disturbance handler, resource allocator, and negotiator. t/f
Venus Stores has installed more billing counters in its stores to reduce waiting time for customers. This will help the store improve its _____.
_____ monitors and manages the performance of the subunits and individual managers who report to them.
As the human resources manager at Hayden Engineering and Manufacturing Corp, Kim had to find effective ways to reward high performing employees and boost their morale during an economic downturn. Which management function did Kim have to engage in?
As the shift supervisor at a car wash center, Jacob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate any tasks to the other employees. He has the characteristics of a(n):
Typical responsibilities of _____ include coordinating and linking groups, departments, and divisions within a company.
According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open?
encourage, monitor, and reward the performances of their employees
First-line managers will most likely have to:
Philip works at a graphics designing firm. He has good knowledge about designing and can create graphics as per the clients’ requirements. Philip has _____ skills.
When Ruth was hired to be the second-in-command at Graham Mailing Services, she was told that her role involved dealing with employees to make sure that they got mailing done to customers’ specifications. She was supposed supervise the work of her employees and make sure that they did their job well. Ruth’s job was in:
_____ is the ultimate form of commitment companies can make to their workers.
Luvine Bodyspray recently released a controversial television advertisement that sparked a furor from several customers across the country. In order to control the situation, managers needed to spend a great deal of time in the role of:
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