Principles of Management

Exam 1 Review (Chapters 1-4)

st

Nickerson

Chapter 1
Describe the four key realities managers are confronted with in managing in the 21 century. o The only certainty today is change. Challenging goals motivate people to strive for improvement and overcome obstacles and resistance to change. o Speed, teamwork, and flexibility are the orders of the day, from both strategic and operational standpoints o Managers at all levels need to stay close to the customer. Product/service quality is the driving force in the battle to stay competitive. o Without continuous improvement and lifelong learning, there can be no true economic progress for individuals and orgaizations alike. Define management and understand the key aspects of management. o The process of working with and through others to achieve organizational objectives in a changing environment. o Key aspects Achieving organizational objectives Working with and through others Balancing effectiveness and efficiency Getting the most out of limited resources Describe why objectives are important to managers. o They serve as measuring sticks for performance without them the managerial process would be aimless and wasteful. Distinguish between effectiveness and efficiency and describe the relationship between them. o Effectiveness is achieving a stated organizational objective o Efficiency balances the amount of resources used to achieve an objective against what was actually accomplished. Too much emphasis on either one leads to mismanagement. st Describe the profile of a 21 century manager in relation to how management has changed recently (refer to table 1.1) o Administrative role moving from Boss/Superior/Leader to Team member/facilitator/teacher/sponsor/advocate/coach o Cultural orientation moving from Monocultural/monolingual to multicultural/multilingual o Quality/ethics/environmental impacts moving from Afterthought to Forethought o Power bases moving from Formal authority; rewards and punishments to knowledge; relationships; rewards o Primary organizational unit moving from individual to team o Interpersonal dealings moving from Competition; win-lose to Cooperation; win-win o Learning moving from periodic to continuous o Problems moving from threats to be avoided to opportunities for learning and continuous improvement o Change and conflict moving from Resist/react/avoid to Anticipate/Seek/Channel o Information Restrict moving from access/hoard to increase access/share Describe five overarching sources of change listed in Chapter 1 that are impacting the field of Management. o Globalization- increased global commerce; controversy over offshoring of jobs to low-wage countries; greater need for global managers who can work effectively across cultures. o The evolution of product quality- moving away from fix-it-in and inspect-it-in approaches; moving toward build-it-in and design-it-in approaches; emphasis on continuous improvement o Environmentalism- greater emphasis on making money without destroying the natural environment; many profit opportunities in cleaning up the environment o An ethical reawakening the publics low opinion of managers ethical conduct is spurring renewed emphasis on on honesty and ethical behavior. o E-business on the internet- thanks to the internet and web, e-commerce buying and selling things over the web has evolved into e-business using the web to run the entire business. Describe what managerial functions are and how they are different than managerial skills. o Managerial functions generally describe what managers do, whereas managerial skills state in specific behavioral terms how they will carry out those functions Describe each of the eight managerial functions. o Planning o Decision making o Organizing o Staffing o Communicating o Motivating o Leading o Controlling

Principles of Management

Exam 1 Review (Chapters 1-4)

Nickerson

Describe Wilsons managerial skills o Technical- applying your education, training, and experience to effectively organize a task, job or product Technical expertise- skills you have acquired by education and experience; to understand and communicate key technical details Clarification of goals and objectives- your ability to organize and schedule the work of your unit so it is achieved when expected, and meets established standard Problem solving- Your ability to resolve issues you confront in the days work; to develop team collaboration in facing problems Imagination and creativity- You demonstrate an ability to originate ideas, to correct and develop ways to improve productivity o Teambuilding- listening carefully and communicating clearly to develop and coordinate an effective group or team Listening for insights- keeping aware of activities of your team and units close to you; underpinning your ability to continue being a manager Directing and coaching- meeting your goals and standards; keeping your teams skills up to target levels Solving problems as teams- an important role is helping your team contribute ideas to improve their performance Coordinating and cooperating- demonstrating a willingness to work with other: your group, individuals, and units close to you o Drive- setting goals, maintaining standards, and evaluating performance to achieve effective outcome involving costs, output, product quality, and customer service Standards of performance- Your effort to keep your part of the organization moving, your willingness to be busy and keep aimed toward new accomplishments Control of details- overseeing the performance of work at a close level, to meet performance goals and standards Energy- demonstrating to your team and colleagues a readiness and willingness to work and that you expect their cooperation Exerting pressure- Urging other to perform, by shaping your activity to be perceived as teamwork, not domination Describe how people learn how to manage. o The school of hard knocks Making a big mistake Being overstretched by a difficult assignment Feeling threatened Bing stuck in a impasse or dilemma Suffering an injustice at work Losing out to someone else Being personally attacked Describe how Entrepreneurs are different than administrators. What are the characteristics of an entrepreneur? o Entrepreneurs Focus on envisioned futures Emphasize external/market dimensions Display a medium to high tolerance for ambiguity Exhibit moderate to high risk taking behavior Obtain motivation from a need to achieve Possess technical knowledge and experience in the innovative area o Administrators Focus on the established present Emphasize internal/cost dimensions Display a low to medium tolerance for ambiguity Exhibit low to moderate risk taking behavior Obtain motivation from a need to lead others Possess managerial knowledge and experience

Chapter 2
Describe the Universal Process Approach to management. Describe Fayols contributions and understand his 14 principles of management. o Assumes all organizations require the same rational management process o 14 Principles of management

Principles of Management

Exam 1 Review (Chapters 1-4)

Nickerson

Division of work- specialization of labor is necessary for organizational success Authority- The right to give orders must accompany responsibility Discipline- obedience and respect help an organization run smoothly Unity of command- Each employee should receive orders from only one superior Unity of direction- The efforts of everyone in the organization should be coordinated and focused in the same direction Subordination of individual interests to the general interest- resolving the tug of war between personal and organizational interests in favor of the organization is one of managements greatest difficulties Remuneration- Employees should be paid fairly in accordance with their contribution Centralization- The relationship between centralization and decentralization is a matter of proportion; the optimum balance must be found for each organization Scalar chain- Subordinates should observe the formal chain of command unless expressly authorized by their respective superiors to communicate with each other. Order- both materials things and people should be in their proper places Equity- Fairness that results from a combination of kindliness and justice will lead to devoted and loyal service Stability and tenure of personnel- people need time to learn their jobs Initiative- one of the greatest satisfactions is formulating and carrying out a plan Esprit de corps- harmonious effort among individuals is the key to organizational success Describe the Operational Approach to Management. Define what Scientific Management is . Describe Fredrick Taylors contribution to the Operational Approach. o Operational Approach- production oriented field of management dedicated to improving efficiency and cutting waste o Scientific Management- developing performance standards on the basis of systematic observation and experimentation o Fredrick Taylors contribution Standardization Systematic selection and training Pay incentives Know the quality Gurus and their contribution to quality improvement in management. o Walter A. Shewhart- introduced the concept of statistical quality control in his 1931 landmark text Economic Control of Quality of Manufactured Product. o Kaoru Ishikawa- expanded the idea of customer included both internal and external customers o W. Edwards Deming- ideas about encouraging employee participation and striving for continuous improvement o Joseph M. Juran- Pareto analysis a technique for separating major problems from minor ones. o Armand V. Feigenbaum- Developed total quality control o Philip B. Crosby- promoted the idea of zero defects or doing it right the first time Describe the Behavioral Approach to Management. Describe what three things contributed to the Human Relations movement. Be able to describe each. o Behavioral Approach to Management- management depends largely on a managers ability to understand and work with people who have a variety of backgrounds, need, perceptions, and aspirations. o Philosophy of industrial humanismo Threat of unionization- satisfied employees would be less inclined to join unions. Business managers began adopting morale-boosting human relations techniques in an effort to discourage unionization o Hawthorne studies-began as a small-scale scientific management study of the relationship between light intensity and productivity. Turned management theorists away from the simplistic economic man model to a more hunaistic and realistic view, the social man model. Describe McGregors Theory Y. What are its assumptions? How are they different than Theory X? Describe what Organizational Behavior is and how it relates to the Behavioral Approach to management. o Organizational behavior-a modern approach seeking to discover the causes of work behavior and to develpop better management techniques o Theory Y- McGrgors optimistic assumptions about working people Work is naturaly activity, like play or rest. People are capable of self-direction and self-control if they are committed to the objectives People will become committed to organizational objectives if they are rewarded for doing so. The average person can learn to both accept and seek responsibility Many people in the general population have imagination, ingenuity, and creativity Describe the Systems Approach to management. What type of thinking does it rely on? How is it different than t he Universal Process, Operational, and Behavioral approaches?

Principles of Management
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Exam 1 Review (Chapters 1-4)

Nickerson

Systems approach is a collection of parts operating interdependently to achieve a common purpose Study management by putting things together and assume that the whole is greater than the sum of its parts Synthetic thinking o Differ Analytic versus synthetic thinking Understand the difference between open systems and closed systems. Which do businesses operate in? o Open system- Something that depends on its surrounding environment for survival o Closed systems- self-sufficient entity o All organizations are open systems because organizational survival depends on interactions with the surrounding environment. Describe the Contingency Approach to management. Describe the characteristics define it? o Contingency Approach- research effort to determine which managerial practices and techniques are appropriate in specific situations An open system perspective A practical research orientation A multivariate approach Describe what is wrong with Management by Best-Seller and what can be done to avoid it. o People would read the books and apply the problem into their own company as a one size fits all problem solver o Avoid Remain current with literature in the field, particularly with journals that translate research into practice Ensure that concepts applied are based on science or at least on some for of rigorous documentation rather than purely on advocacy Be willing to examine and implement new concepts, but first do so using pilot tests with small units Be skeptical when simple solutions are offered analyze them thoroughly Constantly anticipate the effects of current actions and event of future results.

Chapter 3
Describe the demographics of the new American Workforce. How is it changing? o Growing number, Slightly more male than female, largely white, varying age group o Changing by becoming larger and more diverse and people are working longer. Describe the common myths about older workers. Why are they a valuable resource? o Older workers are less productive than the average worker o The costs of employee benefits outweigh any possible gain from hiring older workers o Older workers are prone to frequent absences because of age-related infirmities and above average rates of sickness o Older workers have unacceptably high rate of accidents at work o Older workers are unwilling to learn new jobs and are inflexible about the hours they will work o Valuable They are an underutilized and valuable resource in an aging society facing a potential labor shortage Describe how the social contract between employer and employee has changed. o Now the social contract is more short term based on convenience and mutual benefits rather that for life Describe why there are inequalities in the workplace and what is being done about them. Who has been discriminated against? What policies are present to prevent these inequalities and prejudices? o There are inequalities in the workplace because of the glass ceiling o Females and minorities have been discriminated against o Equal employment opportunity and affirmative action Describe how the changing Political/Legal environment is affecting the practice of management. Describe the two key pressure points that explain why managers need to be aware of changes in the Political/Legal environment. o People are financing campaigns to get political favor for their business o Two pressure points: Politicization of management Increased personal legal accountability Define what Issues management is. Describe the three general political responses available to management. o Issues Management- is ongoing process of identifying, evaluating, and responding to important social and political issues o Three general political responses Reactive- defend status quo and/or actively fight government intervention Neutral- watch and wait Proactive- improve performance to avoid political attacks and government intervention Describe the specific political strategies managers can employ to influence lawmakers and politicians.

Principles of Management

Exam 1 Review (Chapters 1-4)

Nickerson

o Campaign financing o Lobbying o Coalition building o Indirect lobbying Describe why Business Cycles are important for managers to consider. o The business cycle is important because it effects decisions: Ordering inventory Borrowing funds Increasing staff Spending capital for land Equipment Energy Describe how Globalization has impacted our lives and work. o It affects where we work, how much were paid, what we buy, and how much things cost Describe the three-step innovation process. Define what an intrepreneur is. o Conceptualization step- 1st when a new idea occurs to someone o Product technology- 2nd involving the creation of a working prototype rd o Production technology- 3 involving the development of a profitable production process o Intrapreneur- an employee who takes personal responsibility for pushing an innovative idea through a large organization

Chapter 4
Explain the difference between global company and transnational company. o Global company- a multinational venture centrally managed from a specific country o Transnational company- a futuristic model of global, decentralized network with no distinct national identity Describe the six-step internationalization process. o 1: Licensing o 2: Exporting o 3: Local warehousing and selling o 4: local assembly and packaging o 5: Joint ventures o 6: Direct foreign investments Contrast ethnocentric, polycentric, geocentric views about global operations. o Ethnocentric- view that the home countrys personnel and ways of doing things are best o Polycentric- view that local managers in host countries know best how to run their own operations o Geocentric- world oriented view that draws on the best talent from around the globe Describe what culture means and how it affects business dealings. o Culture- a populations taken-for-granted assumptions, values, and beliefs, and symbols that foster patterned behavior Explain from a cross-cultural perspective the difference between high-context and low-context cultures. o High context- cultures in which nonverbal and situational messages convey primary meaning o Low context- cultures in which words convey primary meaning Discuss what the GLOBE Leadership Project is and summarize the leadership lessons from it. o Globe leadership project- a massive research effort in which researchers assess organizations in their own cultures and languages with standardized instruments to collect data from around the world, building a comprehensive model Charismatic/value based- a visionary person who inspires high performance by exhibiting integrity and decisiveness Team-oriented: an administratively competent person and team builder who diplomatically emphasizes common purposes and goals Participative: a person who actively involves other in both making and carrying out decisions Humane oriented: a compassionate generous considerate and supportive person Self-protective: a self-centered and status conscious person who tends to save face and stir conflict Discuss Hofsted's conclusion about the applicability of American Management theories in foreign cultures, and explain the practical significance of his research. o Americans would do well to culturally adapt any management theories and practices acquired from other cultures. Identify why U.S. expatriates fail to complete their assignments, and discuss the nature and importance of cross-cultural training in international management. o Most U.S. expatriates fail: due to culture shock and homesickness

Principles of Management
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Exam 1 Review (Chapters 1-4)

Nickerson

Cultural training: it is important because it helps the worker and their family adapt to the new culture they will be around Summarize the situation of North American women on foreign assignments o Above average success o Big problem convincing their companies to give them assignments o Culture is big because most women are seen as North Americans first and women second