Exam 2 Flashcards
What is management?
Getting things done through and with people
Gulick and Management Functions, Five Essential Management Functions
POSLiC
- Planning
- Organizing
- Staffing
- Leading (Directing)
- Controlling
Scientific management
A type of management that uses standardization, specialization, and scientific experiments to design jobs for greater efficiency and production
Taylor and the scientific management
(Taylorism and the scientific management)
- Increase productivity and output not by finding stronger workers to “shovel coal” and “lift iron”, but to design the workers repetitive work for ease and efficiency .
- Improving individuals jobs
Founding father Taylor
- Principles of Scientific Management (1911)
- “Enemy of the working man”
- Standardization, specialization, experimentation to design jobs for maximum efficiency
Founding Father Henri Fayol
- The “father” of modern operational-management
- French industrialist from late 19th century
- Translated work into English in 40’s
- 14 Principles of management
Fayol’s Administration theory
An integrated set of ideas to organize work, positions, departments, supervisors-subordinate relationships, hierarchy, and span of control to design an organization
Fayol’s Admin Theory, Key Terms
- Division of work
- Specialization
- Coordination
- Line work
- Staff work
- Authority
- Line of authority
- Unity of command
- Span of control
- Centralization
Mayo and Human Relations
- Researchers conducting experiments in which they changed physical working conditions, such as lighting, of the rooms in which female workers sat and manually assembled telephone components
- Social and psychological factors were involved
Planning
- Managers decide what to do and how to do it
- establish a mission, vision, goals, objectives, strategies, and methods
- short and long term
Organizing
- Managers arrange work into jobs, teams, departments, and other work units
- Designing and organizational chart
Staffing
Managers obtain and retain people to fill jobs and do the work
-Recruit, select, orient, train, compensate, evaluate, protect, and develop employees
Controlling
-Managers monitor performance and make necessary adjustments so that goals and objectives are achieved
Weber and Bureaucratic Theory
- A set of principles used to design and organize an organization that result in greater effectiveness
- The most efficient and rational way to organize human activity to maintain order, maximize efficiency, and eliminate favoritism
- “De-personalizing” organizations
Complex and Adaptive Systems
A system with so many unpredictable changing parts and interactions that it cannot be fully understood and is thus more like a biological organism (natural system) than a machine (mechanical system)
Managers example of a Complex and Adaptive Systems
Managers find complex adaptive systems theory useful when the environment changes quickly and unpredictably, because this approach enables organizations to change more quickly and easily
Strategic Planning
-Deciding how an organization wants to position itself in its future environment, then deciding how go about this
Strategic Planning- Strategic Thinking
analyzing, synthesizing disparate information
Strategic Planning- Goals
An important, specific, intended target or outcome that can be measured to determine how well it was achieved
Strategic Planning- SWOT
Internal and external analysis that examines an organization’s strengths and weaknesses (internal), and opportunities and threats (external)
Strategic Planning Model (Big 3)
- Where are we now?
- Where should we be going?
- How do we get there?
Where are we now?
- Which factors are subject to our control?
- How will our competitive position be affected by external forces?
Where should we be going?
- How are mission and business responsibilities balanced?
- What is our stance in terms of total independence versus affiliation or collaboration?
How do we get there?
- How are resources allocated?
- What are the priorities for implementation?
Porter’s Two Strategies
- Low-cost strategy: An HCO drives down its costs as low as possible
- Differentiation strategy: An HCO makes its products and services different (from those of competitors) in ways that appeal to customers
Strategy
A pattern of ideas used to attain and sustain a competitive advantage over rivals
Planning at lower levels of organization
- “How to do it”
- Shorter time periods
- Following steps to achieve the higher-level “what to do”
- In support of higher-level strategic plans
- With narrower perspective (their areas of responsibility)
Planning at higher levels of organization
- “What to do”
- Over longer time periods
- With a broader perspective of the organization
Project Planning and Management
- Managers implement projects to achieve goals in the strategic plan
- Project management is the application of knowledge, skills, tools, and techniques to meet project requirements
Strategic Planning Management
- Ongoing, unending process that constantly adapts to changes in the internal and external environment
- No real beginning, no real end
- Continually brought to life by project planning and implementation
Project Planning Management
- Temporary work to create something new or improved
- Not an ongoing, routine activity
- Has a definitive beginning and end
- Subset of strategic planning
- Part of implementation
Structure’s purpose in an organization
- Structure is the basic organizing mode to subdivide work into subunits that can be assigned to tasks and individuals
- Is often represented on the organization chart
Structural Influence in an Organization
- Impacts coordination of tasks among workers
- Impacts flow of information and communication
Organization Structure
- Functional
- Divisional
- Matrix
- Parallel
- Modular
Functional form
- Organizes departments and positions according to the functions workers perform and abilities they use.
- Smaller HCOs with few services
- Efficiency
Divisional form
Organizes departments and positions to focus on groups of customers or services.
-Focus on customers,products, and services
Matrix form
- Combines the functional and divisional forms.
- Strives for efficiency (vertical functional form) while focusing on customers, products, and services (horizontal divisional form)
Parallel form
Starts with functional structure to produce the routine work and then adds parallel structure to organize for multi departmental approaches to solving complex problems
Modular form
Outsources much work to other organizations and connects them with contracts and electronic information systems
What is control?
To monitor performance and take corrective action if performance does not meet expected standards
Three dimensions of control
- Structure
- Processes
- Outcomes
Structure measures
Measures of resources, staff, equipment, competencies, inputs, facilities, and characteristics of an organization; how the organization is set up
Process measures
Measures of the work that is sone, how it is done, and the activities performed
Outcome measures
Measures of result and effects
Three step control method
- Set standards and Expectation
- Monitor and Judge Performance
- Make Improvements with Corrective Actions
- Set Standards and Expectation
- Set targets, expectations, and standards based on external and internal factors
- Benchmark 9best level of performance of group
- Consider stakeholders (internal and external influences)
- Monitor and Judge Performance
- Compare actual to expected targets
- Measure performance in your area of responsibility using data and present in a chart, graph, visual aid to see main points
- Balanced scorecards
Balanced scorecard
Reports with performance measures for finances, customer service, internal business process, and growth/learning’ other kinds of measures may be used
- Making Improvements
When targets are reasonable and should be maintained, then the organizations should change its structure, processes, culture, staff, or other components that will lead to success
3 Making Improvements- Cause and effect diagrams
- A tool that visually identifies which factor might affect performance
- Analyze causes of performance
- Find factors that cause good and bad performance
PDCA cycle
- Plan- goals and objectives that want to be achieved
- Do- managers implement the plan and decide in change in needed
- Check- Analyze data to check what happened, assess how results matched plan
- Act- Make necessary changes and continue with implementation
Reengineering
Redesigning and improving work processes that involve multiple departments that must work together to accomplish a result
Lean production
Design of work processes to reduce waste, increase efficiency and speed, and thereby produce more value for customers
Controlling People
- Leadership
- Supervision
- Motivation
- Performance Appraisals
- Power
- Authority
- Rewards
- PunishmentsData
- Job descriptions
- Training
- Culture
- Values
- Structure
- Rules
