Fundamentals of management Flashcards
Management
Management is the process of planning, organizing, leading, and controlling resources (such as people, finances, and materials) to achieve specific goals effectively and efficiently within an organization.
What is a person responsible for supervising the use of an organization’s resources to meet its goals
Manager
Organization
Organization refers to a structured group of people working together to achieve common goals.
Manager
A manager is a person who is responsible for overseeing a team to ensure that tasks are completed efficiently and goals are achieved effectively.
What are recourses in management
Resources include people, skills, know-how, experience, machinery, raw materials,
computers, IT, patents, financial capital, and loyal customers and employees
Organizational performance
Organizational performance refers to how well an organization is achieving its goals and objectives. It is a measure of how effectively and efficiently the organization is functioning in various aspects
High and low effectiveness
Effectiveness in management refers to how well a manager achieves the desired goals and outcomes for their team or organization.
Low effectiveness means the manager struggles to meet objectives or deliver outcomes as expected.
High effectiveness indicates that the manager consistently achieves goals and delivers successful results for their team or organization.
High and low efficiency
Efficiency in management relates to how well a manager utilizes resources to achieve those goals.
Low efficiency implies that the manager uses excessive resources or wastes time and effort in achieving objectives.
High efficiency suggests that the manager optimally utilizes resources, minimizing waste and achieving objectives in a cost-effective and timely manner.
Efficiency in management
A measure of how well or how productively resources are used to achieve a goal
Effectiveness in management
A measure of the appropriateness of the goals an organization is pursuing
and the degree to which they are achieved.
Managerial task
Managers at all levels in all organizations perform each of the four
essential managerial tasks of planning, organizing, leading, and
controlling
The function of planning in management
Choosing appropriate organizational goals and courses of action to best achieve those goals
The function of organizing in management
Establishing task and authority relationship that allows people to work together to achieve organization goal
The function of leading in management
Motivate coordinate and energize individuals and groups to work together to achieve organizational goals
The function of controlling in management
Establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals
Planning in management
Process of identifying and selecting
appropriate organizational goals and courses of action
Steps in the planning process in management
1.Deciding which goals the organization will pursue
2.Deciding what courses of action to adopt to attain those goals
*3.Deciding how to allocate organizational resources
Organizing in management
Task managers perform to create a structure of working relationships
that allow organizational members to interact and cooperate to
achieve organizational goals
Factors in organization
- Involves grouping people into departments according to the kinds of
job-specific tasks they perform
2.Managers lay out lines of authority and responsibility - Decide how to coordinate organizational resources
Factors in planning
- Complex, difficult activity
- Strategy to adopt is not always immediately clear
- Done under
uncertainty
Organizational structure
A formal system of task and reporting relationships that coordinates
and motivates members so that they work together to achieve
organizational goals
Leading in management
Articulating a clear organizational vision for its members to accomplish,
and energize and enable employees so that everyone understands the
part they play in achieving organizational goals
Factors in leading
- Leadership involves using power, personality, and influence,
persuasion, and communication skills - Outcome of leadership is highly motivated and committed workforce
Controlling
Task of managers is to evaluate how well an organization has
achieved its goals and to take any corrective actions needed to
maintain or improve performance
The controlling process outcome in management
The outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness
Decisional roles in management
Roles associated with methods managers use in planning strategy
and utilizing resources.
Decisional roles of managers in an organization
1.Entrepreneur—deciding which new projects or programs to initiate
and to invest resources in.
2. Disturbance handler—managing an unexpected event or crisis.
3. Resource allocator—assigning resources between functions and
divisions, setting the budgets of lower managers.
4.Negotiator—reaching agreements between other managers,
unions, customers, or shareholders.
Interpersonal roles in management
Roles that managers assume to provide direction and
supervision to both employees and the organization as a
whole.
Interpersonal roles of managers in and organization
1.Figurehead—symbolizing the organization’s mission and what it
is seeking to achieve.
2. Leader—training, counseling, and mentoring high employee
performance.
3. Liaison—linking and coordinating the activities of people and
groups both inside and outside the organization.
Informational roles in management
Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization.
Informational roles of managers in an organization
1.Monitor—analyzing information from both the internal and
external environment.
2.Disseminator—transmitting information to influence the
attitudes and behavior of employees.
3.Spokesperson—using information to positively influence the
way people in and out of the organization respond to it.
Levels of management
CEO
Top managers
Middle managers
First line managers
Departments in research and development, marketing and sales, manufacturing, accounting, materials managerial
Areas of managers in departments
A group of managers and employees who work together and possess
similar skills
or use the same
knowledge, tools,
or techniques
Levels of management defined
- Chief executive officer (CEO) is company’s most senior and important
manager
The CEO is responsible for making major corporate decisions, managing the overall operations and resources of the company, and acting as the main point of communication between the board of directors and the corporate operations.
* Central concern is creation of a smoothly functioning top management team
* CEO, COO, Department heads
2.Top managers –
* Responsible for the performance of all departments and
have cross-departmental responsibility.
* Establish organizational goals and monitor middle
managers
* Decide how different departments should interact
* Ultimately responsible for the success or failure of an
organization
3.Middle managers- Supervise first-line managers.
Responsible for finding the best way to organize human and other resources to achieve organizational goals
- First line managers - Responsible for daily supervision of the non-managerial employees who perform many of
the specific activities necessary to produce goods and services
Relative Amount of Time That Managers Spend on the Four Managerial Functions
1.Top managers- Spend majority of time in planning and organizing and less time in leading and controlling
2.Middle managers- Spend majority of time in leading(the most time spent) planning and organizing and less time in controlling
First line managers- Spend majority of time in leading(the most time spent) planning and organizing and less time in controlling
What is the trend of the time spent in managerial functions
The higher in manager position the less time the is spent in leading and more time in planning controlling and organizing
What is the trend of the time spent in managerial skills
Time spent on human skills is the same for every level of managers while the higher the position in management the more time spent on conceptual skill and less time in technical skills
Core competency
Specific set of departmental skills, abilities, knowledge and experience that allows one organization to outperform its competitors
Restructuring
Involves simplifying, shrinking, or downsizing an organization’s operations to lower operating costs
Advantages restructuring an organization are increased efficiency, improved strategy, enhanced financial arrangements, and a boost in profits. It can also help the organization to optimize processes, improve communication, and lower operating costs. On the flip side, restructuring may lead to loss of skilled workers, decreased productivity, and it isn’t a guaranteed fix for all organizational issues.
Can reduce the morale of remaining employees
Outsourcing
Contracting with another company, usually in a
low cost country abroad, to perform a work
activity the company previously performed itself
Increases efficiency by lowering operating costs,
freeing up money and resources that can now be
used in more effective ways
Empowerment
Involves giving
employees more
authority and
responsibility over the
way they perform their
work activities
Self-managed teams
Groups of employees who assume collective responsibility for
organizing, controlling, and supervising their own work activities
What is the biggest challenge for management in a Global
Environment
Global Crisis Management
Challenges for Management in
a Global Environment
1.Rise of Global Organizations.
2.Building a Competitive Advantage
3.Maintaining Ethical Standards
4.Managing a Diverse Workforce
5.Utilizing Information Technology and Technologies
6.Global Crisis Management
Competitive Advantage
Ability of one organization to outperform
other organizations because it produces desired goods or services
more efficiently and effectively than its competitors
Building blocks of competitive advantages
Efficiency
Innovation
Quality
Responsiveness to customers
Building competitive advantages
1.Increasing efficiency
Reduce the quantity of resources used to produce goods or services
- Increasing Quality
Improve the skills and abilities of the workforce
Introduce total quality management
4.Increasing speed, flexibility, and innovation
How fast a firm can bring new products to market
How easily a firm can change or alter the way they perform their activities
5.Innovation
Process of creating new or improved goods and services that customers want
Developing better ways to produce or provide goods and services
Turnaround Management
Difficult and complex management task Done under conditions of great uncertainty
Risk of failure is greater for a troubled company
More radical restructuring necessary
Maintaining Ethical and Socially Responsible
Standards
Managers are under considerable pressure to make the best use of
resources
Too much pressure may induce managers to behave unethically, and
even illegally
Managing a Diverse Workforce
To create a highly trained and motivated workforce managers must
establish HRM procedures that are legal, fair and do not discriminate
against organizational members
Global Crisis Management may be the result of
Natural causes Manmade causes International terrorism
Geopolitical conflicts
Global crisis management
The strategic planning and coordination of efforts to effectively respond to and mitigate widespread crises or emergencies that have the potential to significantly impact multiple regions or countries around the world.
