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.
14
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