Chapter 1 Flashcards
Managers are people who do these four things:
Step 1 - Plan
Step 2 - Organize
Step 3 - Lead (aka - directing)
Step 4 - Control
What does it mean to “plan”?
to set goals and predict problems
- Forecast the future
- Develop strategy
- Set goals
- Analyze the environment
What does it mean to “lead”?
lead others to help reach goals of your organization
- Motivate
- Communicate
- Build teams
What does it mean to “control”?
control what happens by using feedback to track and direct progress toward those goals
- Keep things on track
- Measure progress
- Spot errors and misdirection
- Feedback
What does it mean to “organize”?
Organize to support your plans
- Build the Org Chart
- Resources in the right places
- Align authority and responsibility
Modern management first came in what year and by who?
1888 by Henri Fayol in what he called at the time “administrative management”
What were the five functions of “administrative management”?
Planning*
Organizing*
Commanding
Coordinating
Controlling*
Interestingly, three of the five functions here still make up what we use today.
Administrative management developed ___ points or tips for how to run an organization that are still relevant today.
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Around the same time that Fayol was thinking and writing in France, there were a group of American thinkers who came up with something called..?
Scientific Management
This was an attempt to improve productivity by watch productive workers and telling others to follow in their footsteps. There was no model to this. This was however very useful in manufacturing, mining and assembly jobs that would have simple repetitive tasks.
Who was the pioneer of Scientific Management?
Frederick Taylor
What are “time and motion studies”?
Under Scientific Management, Frank and Lillian Gilbreth which measured the time it took for workers to perform an action
The minimum action that a human being can take, the minimum piece of measurable work is called…?
Therblig
(Gilberth spelled backwards)
What came after Scientific Management?
Professional Management
This was created to address some of the real limitations of scientific management and to move it away from just manufacturing and mining to make it applicable to other services in the industry.
Professional Management recognized that management is a set of…?
learned skills - the idea that we could take a person who is not a manager and teach them how to become a manager
What is the “Human Relations Movement”?
Developed in 1933 by Elton Mayo
This looked at how the employees interacted with their managers and how those interactions affected productivity.
What is the “Behaviorist School of Management”?
Deeply associated with Elton Mayo from a set of studies called the Hawthorne Studies.
This is fueled from the Human Relations Movement in which based off that created the idea that managers should be expected to understand their employees and use that understanding to benefit their company.
“Social factors affect performance”
Who are the two most influential writers in modern management?
Peter Drucker
Michael Porter
Who is Peter Drucker?
He wrote a long series of books in the second half of the 20th century that looked at how knowledge workers (as opposed to labor workers) were motivated and how they differed from other types of workers.
Who is Michael Porter?
Professor at Harvard
He developed key theories of management as strategy
What are some examples of a corporates social responsibility?
Shareholders/Stakeholders
Nation
Customers
Employees
Environment
Neighbors
There are three particular pieces of legislation that are directly relevant to American businesses. What are these?
FCPA
Sarbanes-Oxley
ISO 14000
What is the FCPA?
Foreign Corrupt Practices Act
Hold US businesses accountable for ethical behavior globally. Bans bribery and other acts, even if they are legal in another country.
What is the Sarbanes-Oxley Act?
Requires US corporations to publish ethical guidelines. This was passed in the wake of the Enron scandal that bankrupted itself through highly illegal and questionable accounting practices.
This requires US corporations to publish their own ethical guidelines (a Code of Ethics)
What is the ISO 14000?
International Standards Organization 14000
Set of standards for international organizations that want to systematize their environmental management efforts
There are four basic views on ethics to help guide business like decisions. They are…?
Utility - The most good for the most people (this is the most common in business)
Theory of Justice - What is perceived as fair
Rights - Are individual rights violated?
Compassion - Is this how we want to treat people? The Golden Rule.
How do you describe “managerial ethics”?
The standard of conduct that guides a person’s decisions and behaviors.
What does the “principles of management” mean?
The means by which you actually manage, that is, get things done through others - individually, in groups, or in organizations.
Formally defined as the activities that “plan, organize, and control the operations of the basic elements of people, materials, machines, methods, money and markets, providing direction and coordination and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise.”
The fundamental notion of principles of management was developed by French management theorist…?
Henry Fayol
He is credited with the original planning-organizing-leading-controlling framework (P-O-L-C) which remains the dominant management framework in the world.
This is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways.
Empowerment
There remains the need for different types of managers. What are these different types?
- Top Managers - responsible for developing the organization’s strategy and being a steward for its vision and mission.
- Functional - responsible for the efficiency and effectiveness of an area, such as accounting or marketing.
- Supervisory/team - responsible for coordinating a subgroup of a particular function of a team composed of members from different parts of the organization.
What is the difference between a line and a staff manager?
Line - leads a function that contributes directly to the products or services the organization creates (often called a product or service manager)
Ex. being in charge of the production, marketing and profitability of Tide
Staff - leads a function that creates indirect inputs
Ex. managing the finance and accounting aspect of Tide
What is a project manager?
Has the responsibility for the planning, execution, and closing of any project.
What is a general manager?
Someone who is responsible for managing a clearly identifiable revenue-producing unit, such as a store, business unit, or product line.
They generally have to make decisions across different functions and have rewards tied to the performance of an entire unit.
What is “management”?
The art of getting things done through the efforts of other people.
This is drawn from a biography of Mary Parker Follett who introduced phrases such as “conflict resolution,” “authority and power,” and “the task of leadership.”
General managers take direction from their ___ ___.
top executives
** They must first understand the executives’ overall plan for the company. Then they set specific goals for their own department to fit in with the plan.
General managers must describe their goals clearly to their support staff. The ___ ___ see that the goals are met.
supervisory managers
What is the difference between a traditional and contemporary management system?
- Traditional - Top managers ensure the organization’s competitiveness and lower level managers’ and job security. The lower level managers and employees implement top management strategy with loyalty and obedience.
- Contemporary - Empowered lower-level managers and employees are responsible for the organization’s competitiveness and their own development. Top management support personnel development and ensure employability.
This is an organized set or behaviors, and Mintzberg identified 10 ___ common to the work of all managers.
role
Roles are divided into these three groups:
- Interpersonal - ensure that information is provided.
- Informational - link all managerial work together.
- Decisional - makes significant use of the information
Describe the 10 roles and what groups they are categorized under.
- Interpersonal - figurehead, leader, liaison.
- Informational - monitor, disseminator, spokesperson
- Decisional - Entrepreneur, disturbance handler, resource allocator, negotiator
There are four decisional roles that managers play.
- Entrepreneur role - the manager initiates change
- Disturbance handler - deals with threats to the organization
- Resource allocator - chooses where the organization will expend its efforts.
- Negotiator - Negotiates on behalf of the organization
The supervisor performs managerial roles but with different emphasis than higher managers. Supervisory management is more focused and short term in outlook. With that in mind, which roles line up best with supervisors?
- Disturbance Handler
- Negotiator
The top-level manager is seen as an __ __, while the supervisor is seen as a __ or __ expert.
industry
unit or departmental
Since ___ permeates all activities, this role is among the most important of all roles at all levels of management.
leadership
The principles of management are drawn from a number of academic fields, principally…?
the fields of leadership, entrepreneurship and strategy
If management is defined as getting things done through others, then leadership should be defined as…?
the social and informal sources of influence that you use to inspire action taken by others
It means mobilizing others to want to struggle toward a common goal
Good leaders and leadership at P&G used to imply having followers, whereas in today’s society, good leadership means…?
followership and bringing out the best in your peers
This is defined as the recognition of opportunities (needs, wants, problems and challenges) and the use or creation of resources to implement innovative ideas for new, thoughtfully planned ventures.
Entrepreneurship
*** This is more than simply coming up with a good idea - someone also has to convert that idea into action.
The central, integrated, externally-oriented concept of how an organization will
achieve its objectives.
strategy
*** When an organization has a long-term purpose, articulated in clear goals and objectives, and these goals and objectives can be rolled up into a coherent plan of action.
This is the body of knowledge that answers questions about the
development and implementation of good strategies.
Strategic Managment
The principles of management are drawn from three specific areas. What are these?
Leadership
Entrepreneurship
Strategic Mangement
How does leadership, entrepreneurship and strategic movement relate to one another?
leadership helps you understand who helps lead the
organization forward and what the critical characteristics of good leadership might be. Entrepreneurs are fanatical about identifying
opportunities and solving problems—for any organization, entrepreneurship
answers big questions about “what” an organization’s purpose might be.
Finally, as you’ve already learned, strategic management aims to make sure
that the right choices are made—specifically, that a good strategy is in
place—to exploit those big opportunities.
The P-O-L-C framework used for managers has received criticism for what reason?
Specifically, these criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do not accurately depict the day-to-day actions of actual managers.
The typical day in the life of a manager at any level can be fragmented and hectic, with the constant threat of having priorities dictated by the law of the trivial many and important few (i.e., the 80/20 rule).
When it comes to the POLC framework, this is the function of management that involves setting objectives and determining a course of action for achieving those objectives.
Planning
Planning is a process consisting of several steps. The process begins with…?
Environmental Scanning
This simply means that the planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning.
These are statements of what needs to be achieved and when.
Objectives
** Planners must establish these through strategic planning
This involves analyzing competitive opportunities and threats, as
well as the strengths and weaknesses of the organization, and then determining
how to position the organization to compete effectively in their environment.
Strategic planning
*** This is most often conducted by the organization’s top mangement
Strategic planning often has a long time frame, usually ___ or more.
3 years
Strategic planning is often based on the organization’s ___, which is its fundamental reason for existence.
mission
What are the two types of strategic planning?
- Tactical Planning
- Operational Planning
What kind of strategic planning is the following describing?
This is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the
strategic plan. Middle-level managers often engage in this.
Tactical Planning
(one to three years)
What kind of strategic planning is the following describing?
Generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them. Operational
planning is short-range (less than a year) planning that is designed to develop
specific action steps that support the strategic and tactical plans.
Operational Planning
(less than a year)
The matching of organizational form such as structure, reporting relationships, and information technology, with the organization’ strategy.
Organizational Design
This structure is usually represented by an organizational chart, which provides a graphic representation of the chain of command within an organization.
The structure of the organization
Decisions made about the nature of jobs within the organization are generally called __ __ decisions
job design
Organizing at the level of the organization involves deciding how best to ___, or cluster, jobs into departments to coordinate effort effectively.
departmentalize
** This can be organized by function, product, geography or customer. Many large organizations use multiple methods of this.
Organizing at the level of the a __ __ involves how best to design individual jobs to most effectively use human resources.
particular job
Traditionally, __ __ was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become.
job design
*** However, experience has shown that it is possible for jobs to become too narrow and specialized.
What is the definition of “job design”?
The process of putting together
various elements to form a job, bearing in mind organizational
and individual worker requirements.
Recently, many organizations have attempted to strike a balance between the need for worker specialization and the need for workers to have a job that entail variety and autonomy. For this reason, many jobs are now designed based on such principles as…?
empowerment
job enrichment
teamwork
A job redesign technique that
allows workers more control
over how they perform their
own tasks.
job enrichment
Cooperative effort by the members of a group or team to
achieve a common goal.
teamwork
Studies of ___ and ___ theory provide important information about
the ways in which workers can be energized to put forth productive effort.
motivation
Research tells us that to become effective at leading, managers
must first understand their subordinates’…?
personalities, values, attitudes, and
emotions.
Controlling involves ensuring that performance does
not deviate from standards. Controlling consists of three steps, which include…?
- Establishing performance standards
- Comparing actual performance against standards
- Taking corrective action when necessary
These standards often stated in
monetary terms such as revenue, costs, or profits but
may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.
Performance Standards
The measurement of performance can be done in several ways, depending on the performance standards. This includes things such as…?
including financial statements, sales reports, production
results, customer satisfaction, and formal performance
appraisals.
The managerial function of controlling should not be confused with control in the ___ or ___ sense.
behavioral or manipulative
*** This function does not imply that managers should attempt to control or to manipulate the
personalities, values, attitudes, or emotions of their subordinates. Instead, this
function of management concerns the manager’s role in taking necessary actions to
ensure that the work-related activities of subordinates are consistent with and
contributing toward the accomplishment of organizational and departmental
objectives.
Effective controlling requires the existence of ___, since ___ provides the necessary performance standards or objectives.
plans
planning
Controlling also requires a clear
understanding of where responsibility for deviations from standards lies. Two
traditional control techniques are:
- Budget Audits
- Performance Audits
This involves the examination and verification of records and supporting documents.
Audit
A ___ audit provides information about where the organization is with respect to
what was planned or budgeted for, whereas a ___ audit might try to
determine whether the figures reported are a reflection of actual performance.
budget
performance
Individuals and organizations
who are actively involved in
the organization or whose
interests may be positively or
negatively affected as a result
of what the organization does.
Stakeholders
___ ___ is very important to a firm’s stakeholders 17
particularly its investors or owners, because this performance eventually provides
them with a return on their investment.
Economic performance
Increasingly though, it seems clear that
noneconomic accomplishments, such as reducing waste and pollution, for example,
are key indicators of performance as well. Indeed, this is why the notion of the ___ ___ ___ is gaining so much attention in the business press.
triple bottom line
The measurement of business
performance along social,
environmental, and economic
dimensions.
Triple Bottom Line
This is the difference between revenue and the opportunity cost of all resources used to produce the items sold.
Economic profit
Economic profit is a form of ___ ___ where profits are achieved when revenues exceed the accounting cost the firm “pays” for those inputs. In other words, your organization makes a profit when its revenue are more than its costs in a given period of time, such as three months, six months or a year.
accounting profit
*** The difference between an organization’s revenues and its costs in a given period of time.
This is a concept whereby organizations consider the interests of society by taking
responsibility for the impact of their activities on customers, suppliers, employees,
shareholders, communities, and the environment in all aspects of their operations.
Corporate Social Responsibility
CSR
*** This utilizes the social and environmental facets of performance for success
What are the three facets of performance?
- Economic/Financial
- Social
- Environmental
*** This is what makes up the triple bottom line
What is the difference between “in-role performance” and “organizational citizenship behaviors (OCBs)”?
When it comes to individual level performance:
- In-role performance: The things that you have to do
as part of your job and its job
description. - organizational citizenship behaviors (OCBs): Voluntary behaviors employees perform to help
others and benefit the organization.
In comparison to in-role performance, the spectrum of what constitutes extra-role
performance, or OCBs, seems be great and growing. In a recent review, for example,
management researchers identified 30 potentially different forms of OCB, which
they conveniently collapsed into seven common themes:
- Helping Behavior
- Sportsmanship
- Organizational Loyalty
- Organizational Compliance
- Individual Initiative
- Civic Virtue
- Self-Development
What behaviors make up the OCB theme of “Helping Behavior”?
Helping Behavior takes on multiple forms further broken down into the following categories:
- Altruism - voluntary actions that help another person with a work problem. Instructing a new hire on how to use equipment, helping a coworker catch up with a backlog of work, fetching materials that a colleague needs and cannot procure on their own.
- Interpersonal helping - Focuses on helping coworkers in their jobs when such help was needed.
- Courtesy -Subsumes all of those foresightful
gestures that help someone else
prevent a problem. Touching base with people before
committing to actions that will affect them, providing advance notice to someone who needs to know to schedule work. - Peacemaking - Actions that help to prevent, resolve,
or mitigate unconstructive
interpersonal conflict. - Cheerleading - The words and gestures of encouragement and reinforcement of
coworkers. Accomplishments and professional
development.
What behaviors make up the OCB theme of “Sportsmanship”?
A citizenlike posture of tolerating the inevitable
inconveniences and impositions of work without whining and grievances.
What behaviors make up the OCB theme of “organizational loyalty”?
Identification with and allegiance to organizational
leaders and the organization as a whole, transcending
the parochial interests of individuals, work groups, and
departments. Representative behaviors include
defending the organization against threats,
contributing to its good reputation, and cooperating
with others to serve the interests of the whole.
What behaviors make up the OCB theme of “organizational compliance” (obedience)?
An orientation toward organizational structure, job
descriptions, and personnel policies that recognizes
and accepts the necessity and desirability of a rational
structure of rules and regulations. Obedience may be
demonstrated by a respect for rules and instructions,
punctuality in attendance and task completion, and
stewardship of organizational resources.
What behaviors make up the OCB theme of “individual initiative” (conscientiousness)?
A pattern of going well beyond minimally required
levels of attendance, punctuality, housekeeping,
conserving resources, and related matters of internal
maintenance.
What behaviors make up the OCB theme of “civic virtue”?
Responsible, constructive involvement in the political process of the organization, including not just
expressing opinions but reading one’s mail, attending
meetings, and keeping abreast of larger issues
involving the organization.
What behaviors make up the OCB theme of “self-development”?
Includes all the steps that workers take to voluntarily
improve their knowledge, skills, and abilities so as to be better able to contribute to their organizations. Seeking out and taking advantage of advanced training courses, keeping abreast of the latest developments in one’s field and area, or even learning a new set of skills so as
to expand the range of one’s contributions to an
organization.
___ focuses on both
the outcomes and process of collections of individuals, or groups.
Group-level performance
** Individuals can
work on their own agendas in the context of a group.
This is any aspect of group interaction that inhibits good problem solving.
Process loss
This is a cohesive coalition of people working together to achieve the team agenda.
Team
** Teams tend to be defined by their relatively smaller size
You can assess your learning style in a number of ways. At a very general level, you can assess your style intuitively; however we suggest that you use a survey instrument. This is called…?
Learning Style Index (LSI)
***Developed by Richard K Felder and Linda K Silverman
LSI reveals the four dimensions (learning styles)
- Active or Reflective
- Sensory or Intuitive
- Visual or Verbal
- Sequential or Global
What is the difference between being an Active vs a Reflective learner?
- Active - If you are an active learner, you
tend to retain and understand information best by doing something active with
it—discussing it, applying it, or explaining it to others. Like to work in groups. - Reflective - Reflective learners prefer to think about it quietly first. Prefer working alone.
What is the difference between being a Sensory or Intuitive learner?
- Sensory - Sensors often like solving
problems by well-established methods and dislike complications and surprises. ensors are more likely than
intuitors to resent being tested on material that has not been explicitly covered in class. Sensing learners tend to like learning fact. Sensors tend to be patient with details and good at memorizing facts and doing
hands-on (laboratory) work. Sensors tend to be more practical and careful than intuitors. Sensors don’t like courses that have no apparent connection to the real world. - Intuitive - intuitors like innovation and dislike repetition. ; Intuitive learners often prefer
discovering possibilities and relationships. intuitors may be better at grasping new concepts and
are often more comfortable than sensors with abstractions and mathematical
formulations. intuitors tend to work faster and to be more innovative than sensors. ; intuitors don’t like
“plug-and-chug” courses that involve a lot of memorization and routine
calculations.
What is the difference between being a Visual vs a Verbal learner?
- Visual - Visual learners remember best what they see—pictures, diagrams, flowcharts, time
lines, films, and demonstrations. - Verbal - Verbal learners get more out of words—written and spoken explanations.
What is the difference between being a Sequential vs Global learner?
- Sequential - Sequential learners tend to follow logical, stepwise paths in finding solutions. Sequential learners tend to gain understanding in linear steps, with each step following logically from the previous one.
- Global - global
learners may be able to solve complex problems quickly or put things together in novel ways once they have grasped the big picture, but they may have difficulty explaining how they did it. Global learners tend
to learn in large jumps, absorbing material almost randomly without seeing connections, and then suddenly “getting it.
What are the three stages of the principles of management survival kit?
- Gauge - take stock of your knowledge and capabilities about a topic;
- Discover - learn enough about a topic
so that you can set specific development goals on which you can apply and practice, and later gauge again your progress toward your set goals - Reflect - step
back and look at the ways you have achieved your goals, take the opportunity to set new ones, and chronicle this experience and thought process in a daily journal.
The discovery stage of the principles of management survival kit has four related facets:
- Learn - You will typically want to start with some mastery over facts and
definitions and then build your knowledge base to a more strategic level—that is, be
able to understand when, where, and how you might use those definitions and facts in principles of management. - Set goals - The combination of gauging and learning about a topic should permit you to set
some goals related to your focal topic. While your goals should reflect the intersection of your own needs and the subject, we do know that effective goals satisfy certain characteristics. These characteristics—specific,
measurable, aggressive, realistic, and time bound—yield the acronym SMART. - Apply - Your knowledge of the subject, plus your SMART goals, give you an opportunity to apply and test your knowledge.
- Practice - Practice, in turn, simply means some repetition of the
application process. Your objective here should be to apply and practice a subject long enough that, when you gauge it again, you are likely to see some change or progress.
Specific goals are more likely to be achieved than a general goal. To set a specific goal, you must answer the six “W” questions:
- Who: Who is involved?
- What: What do I want to accomplish?
- Where: At what location?
- When: In what time frame?
- Which: What are the requirements and constraints?
- Why: What specific reasons, purpose, or benefits are there to the accomplishment of the goal
What does SMART stand for?
Specific
Measurable
Aggressive (aka referred to as “stretch” goals)
Realistic
Timely
*** This is a method in which to set goals.
