Chapter 9: Management Principles Flashcards
Management
Process of integrating resources for accomplishment of objectives. Management, involving the basic functions of planning, organizing, staffing, directing, and controlling, is the primary force that coordinates the activities of subsystems within organizations.
Organization
Group of people working together in a structured and coordinated way to achieve goals.
Organization
Group of people working together in a structured and coordinated way to achieve goals.
Authority
Delegation from top to lower levels of management and the right of managers to direct others and take action because of their position.
Accountability
A state of being responsible to one’s self, to some organization, or even to the public.
Responsibility
Obligation to perform an assigned activity or see that someone else performs it.
Efficiency
Doing things right. Getting the most output from the least amount of input.
Effectiveness
Doing the right things. The ability to choose appropriate objectives.
First-Line Managers
Generally responsible for supervising employees and function at the technical core level of an organization and are responsible for day-to-day operational activities.
Middle Managers
Primary responsibility is to coordinate activities that implement policies of the organization and to facilitate activities at the technical level. Middle managers direct the activities of other managers and sometimes of functional employees. This level of management also is responsible for facilitating communication between the lower and upper levels of the organization, and it functions at the organizational level.
Top Managers
Make up the relatively small group of executives that control the organization. They develop the vision for the organization’s future, are responsible for its overall management, establish operating policies, and guide organizational interaction with the environment. These managers operate at the policy-making level of the organizations.
General Manager
Responsible for all activities of a unit.
Functional Manager
Responsible for only one area of organizational activity.
Interpersonal Roles
Focuses on relationships and includes:
- Figurehead Role
- Leader Role
- Liaison Role
Figurehead Role
Representational responsibility of management.
Leader Role
Responsible for the work of the staff. Functions of this role range from hiring and training employees to creating an environment that will motivate the staff.
Liaison Role
Dealing with people both inside and outside the organization. This role is important in building a manager;s information system.
Informational Roles
Communication may be the most important aspect of a manager’s job and includes:
- Monitor Role
- Disseminator Role
- Spokesperson Role
Monitor Role
In this role, the manager constantly searches for information to use to become more effective. The manager collects this information in many forms and must discern implications of its use for the organization.
Disseminator Role
The manager transmits information to subordinates who otherwise would probably have no access to this information. An important aspect of this role is to make decisions concerning the information needs of staff members. The manager must assume responsibility to disseminate information that helps staff members become well informed and more effective.
Spokesperson Role
The manager is closely akin to the figurehead role. In the spokesperson role, the manager transmits information to people inside and outside the organization or unit. This role may also include providing information to legislators, suppliers, and community groups.
Decisional Roles
A manager can commit the organization to new courses of action and determine strategy; includes:
- Entrepreneur Role
- Disturbance Handler Role
- Resource Allocator Role
- Negotiator Role
Entrepreneur Role
The manager is the voluntary initiator of change. This role may involve, for example, a decision to change the menu after networking with other restaurateurs or customers.
Disturbance Handler Role
The manager responds to situations that are beyond his or her control. In this role, the manager must act because the pressures of the situation are too severe to be ignored.
Resource Allocator Role
The manager decides how and to whom the resources of the organization will be distributed. In authorizing important decisions, the manager must be mindful of the needs of the unit while considering priorities of the overall operation. Such decisions often will require compromise.
Negotiator Role
The manager participates in a process of give-and-take until a satisfactory compromise is reached.
3 Different Types of Skills
- Technical
- Human
- Conceptual
Skill
An ability that can be developed and is manifested in performance.
Technical Skill
Understand of, and proficiency in, a specific kind of activity, particularly one involving methods or techniques. Such skill requires specialized knowledge, analytical ability, and expertise in the use of tools and procedures.
Human Skill (Interpersonal Skill)
Concerns working with people and understanding their behavior. Such skillfulness must be a natural, continuous activity that involves being sensitive to the needs and motivations of others in the organization. Two aspects are: leadership within the manger’s own unit and skill in intergroup relationships.
Conceptual Skill
Ability to view the organization as a whole, recognizing how various parts depend on one another and how changes in one part affect other parts. Conceptual skill also involves the ability to understand the organization within the environmental context and also includes the impact of political, social, and economic forces on the organization.
The 5 Functions of Management
- Planning
- Organizing
- Staffing
- Directing
- Controlling
Planning
Determining in advance what should happen. Planning is essential as a manager organizes, staffs, directs, and controls.
Procedure
Chronological sequence of activities.
4 Dimensions of Planning
- Repetitiveness
- Time Span
- Level of Management
- Flexibility
Standing Plans
Plans for repetitive activities.
Single-Use Plans
Plans for one-time events.
Policy
General guide to organized behavior developed by top-level management.
Method
Details for one step in a process.
Rules
Specification of action, stating what must or must not be done.
Strategic Planning
A continuous and systematic process in which people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated.
Strategy
Pattern of purposes and policies defining a company and its business.
Organizing
Management function of grouping activities, delegating authority, and coordinating relationships, horizontally and vertically.
Staffing
Management function of determining the appropriate number of employees needed by the organization for the work that must be accomplished.
Human Resources Planning
Process of making provision for the movement of people into, within, and out of an organization.
Recruitment
Process of locating and encouraging potential applicants to apply for a job opening.
Selection
Process of comparing applicant skills, knowledge, and abilities with requirements of a position and choosing the most qualified.
Orientation
Formal process of familiarizing new employees to the organization, job, and work unit.
Training
Ongoing process of updating employees.
Performance Appraisal
Comparison of an individual’s performance with established standards for the job.
Directing
Management function of directing human resources for the accomplishment of objectives.
Controlling
Management function of ensuring that plans are being followed.
Standards
Definition of what is expected to happen.
Participative Management
Involving employees in the decision-making process.
Corporate Culture
Organizational Culture
Shared philosophies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together.
Traditional Organization
Organization in which lines of authority, which create order, are established.
Organization Chart and Job Descriptions
Pattern of formal relationships and duties in a traditional organization.
Departmentalization
Assignment of various activities or tasks to different units or people of the traditional organization.
Integration
Coordination of separate activities or tasks in a traditional organization.
Administrative Systems
Guidance of activities and relationships or people in the traditional organization through planned and formalized policies, procedures, and controls.
Innovative Organizations
Employers are challenged to improve the quality of work life and to develop a corporate, or organizational, culture.
Empowered Decision Making
Employees, not just managers, are involved in decision making in innovative organizations.
Sociability
A sense of belonging to the innovate organization is created for all members.
New Bases of Management Power
A shift has occurred from use of only downward authority to inclusion of upward and lateral lines of authority and input in the innovative organization.
Personal Consideration
Greater recognition is given to the importance of individual employees, not just the job they perform in innovate organizations.
Team-Based with Group Recognition
Formation of teams of employees and/or managers working together to accomplish goals with more emphasis on team rather than individual recognition.
Self-Fulfillment
Employee job satisfaction and sense of accomplishment is more valued in innovative organizations.
Flat Hierarchy
The number of managerial levels has been reduced in innovative organizations.
Emphasis on Vision and Values
Companies are finding it more important to formulate clear visions and values to which employees can commit themselves in innovative organizations.
Managers as Change Units
Change is viewed as a critical component in a innovative organization’s success, and managers are expected to stimulate and facilitate change.
Technologically Savvy
Effective use of all forms of technology and a presence on the Internet are necessary components of innovate organizations.
Quality of Work Life
How work is organized by the manager and how jobs are designed.
Leader-Member Relations
Nature of the relationship between the leader and work group.
Leadership
Process of influencing activities of an individual or group toward achieving organizational goals.
Team-Based Leadership
Two or more persons who interact to accomplish a common purpose or goal regularly enough to be considered a group.
Self-Managed Teams
Group of employees who work together with little or no supervision.
Integritity
Building trust between people in the organization builds a positive culture.
Bottom-Up Style of Management
Involving employees are part of the team builds a positive culture.
Having Fun
Finding ways both at work and outside of work for fun builds a positive culture.
Community Involvement
Participating in community service programs builds a positive culture.
Emphasis on Physical Health and Fitness
Practicing a belief that a sound mind goes along with a sound body builds a positive culture.
Vertical Division of Labor
Based on lines of authority.
Unity of Command
Principle that an employee reports to only one manager.
Scalar Principle
A clear and unbroken line of authority extends from the bottom to the top position in the organization.
Chain of Command
Clear and distinct lines of authority within an organization– who reports to whom.
Horizontal Division of Labor
Division of work among employees at the same level in the organization.
Cross-Trained
Technique being used to familiarize employees with other jobs in the organization.
Team
Group of workers that serves as a unit, often with little or no supervision.
Matrix Division of Labor`
Experts from a variety of departments who are pulled together to work with a project manager on a specified project.
Responsibility
Obligation to perform an assigned activity or see that someone else performs it.
Delegation
Process of assigning job activities and authority to a specific employee within the organization.
Span of Management
Span of Control
Number of employees that can be effectively supervised by one manager.
Parity Principle
The amount of authority and responsibility should be equal.
Organizational Policies
Clearly defined policies can reduce the time managers spend making decisions; the more comprehensive the policies, the greater the span of management.
Availability of Staff Experts
Managers can have increased span if staff experts are available to provide advice and services.
Competence of Staff
Well-trained workers can perform their jobs without close supervision, thus freeing competent managers to expand their span of management.
Objective Standards
In organizations with objective standards and standardized procedures, workers have a basis by which to gauge their own progress, thus allowing managers to concentrate on exceptions. As a result, larger spans are possible.
Nature of the Work
Less complicated work tends to require less supervision than more complicated work. Generally, the simpler and more uniform the work, the greater the possible span.
Distribution of Workforce
The number of areas where supervised workers are on duty may inhibit severely a manager;s ability to visit all work sites. The greater the dispersion of workers, the shorter is the span.
Formal Authority
Authority that exits because of position in the organization. Considered a top-down theory because it races the flow of authority from the top to the bottom of the organization. Also referred to as positional authority because the authority if derived from the position or office.
Acceptance Authority
Authority based on the employee’s acceptance of that authority.
Authority of Competence
Authority based on a manager’s competence or expertise. A command may be accepted, not because of organizational title, but because the employee believes the person gibing the command is knowledgeable.
Departmentalization
Process of grouping jobs according to some logical arrangement.
Line Position
A position in the direct chain of command.
Staff Position
Position intended to provide expertise, advice, and support for line positions.
The 7 Types of Departmentalization
- Function
- Product
- Geography
- Customer
- Process
- Equipment
- Time
Functional Departmentalization
Occurs when organization units are defined by the nature of the work. Most organizations have three basic functions: production, sales, and finance. The primary advantage is that it allows specialization within functions and provides for efficient use of equipment and other resources.
Product Departmentalization
Allows workers to identify with the particular product and encourages expansion, improvement, and diversification.
Geographic Departmentalization
Permits the use of local personnel and may help create customer goodwill and a responsiveness to local customs.
Customer Departmentalization
Divided by the types of customers: schools, colleges, healthcare, grocers, and hotels. This approach permits the wholesaler to served the specialized needs of different types of customers instead of just one type.
Process/Equipment Departmentalization
Process and equipment are closely related to functional departmentalization. A deep-fat frying section within the production unit would be an example.
Time or Shift Departmentalization
Organizations such as hospitals that function around the clock often organize activities on this basis. Usually, activities grouped this way are first departmentalized on some other basis, perhaps by product or function. Then, within that category, they are organized into shifts.
Coordination
Process of linking activities of various departments in the organization.
The 5 Methods of Coordination
- Horizontal interaction
- Policies, procedures, and rules
- Standards
- Communication
- Committees and task forces
Horizontal Interaction
Is required among departments because staff often communicate directly rather than through the vertical organization. Such lateral relationships facilitate communication in an organization.
Policies, Procedures, and Rules
Ensure consistency in operations and are an important method of coordination.
Communication
Takes on a linking role that allows the coordination of activities in an organization. Communication is the responsibility of managers for linking with managers at higher levels in the organization and with others at their own level.
Committees and Task Forces
Appointment of committees and task forces is a mechanism used in organizations for coordination. These groups serve an important role when problem solving must involve several departments.
Standards
Need to be developed before good coordination occurs.
Social Responsibility
An organization’s responsibility to society that extends beyond its profit generation.
4 Social Responsibilities of Organizations
- Economic
- Legal
- Ethical
- Discretionary
Economic Responsibility
The “must do” responsibility to produce goods and services of value to society and that allow the organization to pay its creditors and stockholders.
Legal Responsibility
The “have do” responsibility to follow laws imposed by government.
Ethical Responsibility
The “should do” responsibility to follow generally held beliefs about behavior in society.
Discretionary Responsibility
The “might do” responsibility to voluntarily do good for others.
Import
Bringing a product from another country.
Exports
Sending a product to another country
Parochial Attitude
Inability to recognize differences between people.
Ethnocentric Attitude
Perceiving that the best practices and approaches are those of one’s home country.
Geocentric Attitude
Focusing on finding the best approach regardless of its national origin.
Globalization
Interaction among people and organizations of different nations.
Tariffs
Government taxes on products shipped internationally.
Subsidy
Government payments to domestic producers to maker their product more competitive in the market.
Quota
A specified amount that can be produced.
Politics
Art or science of influencing others or holding control.
Economic Environment
Includes the economic system of a country, the level of economic development in a country, the exchange rate of its currency, and the type of trade agreements in place. It impacts the ease of international commerce between nations.
Market Economy
Economy in which supply and demand in the marketplace drive what is produced.
Command Economy
Economy in which a central planning agency determines what to produce, when to produce, who can produce, and in what quantities to produce. Also termed “government controlled”.
Exchange Rate
Equivalent value of one country’s currency in another country.
Free Trade
Trade agreement between two or more countries that eliminates any trade barriers or financial charges.
Common Market
Market that allows free trade among members but establishes a trade policy with nonmembers.
WTO
The World Trade Organization includes more than 140 countries from around the world and includes agreements for trade, banking, insurance, telecommunication, and tourism among member countries.
NAFTA
The North American Free Trade Agreement created a free trade agreement among Canada, Mexico, and the United States. It eliminated most tariffs between the three countries but allowed each to set its own tariffs on imports from nonmember nations. It also simplifies the process of shipping across borders and set more strident health and safety standards.
EU
The European Union, which includes 27 European countries, formed a free trade area among the member countries and common trade policy for nonmember countries.
ASEAN
The Association of Southeast Asian Nations is a group of 10 Southeast Asian countries who are working to liberalize trade and reduce tariffs among the member nations.
APEC
The Asian Pacific Economic Cooperation is a group of 21 Pacific Rim states that are working to facilitate freer trade in that region.
The 9 Dimensions on Which Cultures Differ
- Assertiveness
- Future Orientation
- Gender Differences
- Humane Orientation
- Individualism vs collectivism
- In-group collectivism
- Performance orientation
- Power distance
- Uncertainty avoidance
Assertivness
The degree to which assertiveness and toughness versus caring and tenderness is valued in a culture.
Future Orientation
The extent to which future oriented behaviors such as planning and delayed gratification are valued in a culture.
Gender Differences
The amount of status and decision making responsibility given to females in a culture.
Humane Orientation
The extent to which altruistic, generous, caring, and kind behaviors are valued and rewarded in a culture.
Individualism vs Collectivism
The degree to which ties between individuals are loose or close. In some countries the expectation is that each looks out for oneself (individualism); in other countries, the expectation is that each looks out for many others (collectivism).
In-Group Collectivism
The extent to which membership in groups such as family, friends, and employing organizations are valued.
Performance Orientation
The degree to which group members are encouraged and rewarded for performance improvement and excellence.
Power Distance
The extent to which less powerful members of an institution expect and accept that power will be unequally distributed.
Uncertainty Avoidance
The degree to which people are comfortable with the unknown and having unexpected things happen.
Behavior Modeling
Sometimes referred to as “do as I do”. it means modeling the behavior you expect from your employees.
Open Door Policy
Managers with this policy encourage employees to come to their office with ideas, concerns, and questions, The idea behind the concept is that a manager is approachable and has time to listen to employees.
Managing By Walking Around
A practice in which managers walk through their operation on a regular basis talking with employees and supervisors. It provides a way to visually see what is going on in your operation and to visit informally with employees in their work areas.
Acquisition of FavorsThat Must Be Repaid
The expectation that when one does a favor for another, one day the favor will be returned.
Alliances
When several individuals agree that they will support each other on issues of mutual interest, creating strength in numbers.
Conciciality
Using one’s friendliness with others for political strength.
Constituency Building
Getting many individuals in an organization to unite behind a single person to increase that individual’s influence related to an issue.
Currying Favor
Gaining the approval of superiors to provide political advantages in interactions with others.
