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MOPP Exams Notes : Iftikhar Ahmed

MGT 600 EXAMS NOTES
Management Is…

Getting
Getting work
work
Efficiency
Efficiency
done
done through
through
Effectiveness
Effectiveness
others
others
Efficiency entails minimum waste, effort and expense
Effectiveness is accomplishing tasks that help fulfill organizational objectives
Management Functions



Planning
Organizing
Leading
Controlling

Planning
Determining organizational goals and a means for achieving them.
Meta-Analysis: is a study of studies that shows what works and when.
Organizing


Deciding where decisions will be made
Who will do what jobs and tasks
Who will work for whom

Leading

Inspiring
Inspiring
Leading
Leading Motivating
Motivating
Controlling
Monitoring progress toward goal achievement and taking corrective action when needed.
The Control Process


Set standards to achieve goals
Make changes to return performance to standards
Compare actual performance to standards

Effective managers plan, Organize, Lead and Control better.

MOPP Exams Notes : Iftikhar Ahmed

Old versus New Management Styles




Manager as boss versus managers as sponsors/team leaders / internal consultants
Reporting relationships versus managers open to anyone anywhere in hierarchy
Individual decisions versus participative decision making
Long hours versus results
Keeping proprietary company information secret versus sharing with others

Management functions – Old and New
Making things Happen



Planning
Decision making
Managing information
Controlling

William End CEO of Land’s End (a successful retailer) introduced latest management techniques such as
performance appraisals based on peer reviews; production teams, training courses, effective
communication. Lost or undelivered orders were result. Why?

Meeting the competition

Global Management

Organizational Strategy

Innovation and Change

Designing adaptive organizations

IBM once market leader lost its share from 80 to 8% because of stiff competition
from COMPAQ Dell etc in 1980’s.

Organizing people , projects and processes

Managing individual and diverse workforce

Managing Teams

Managing Human Resource Systems

Managing service and Manufacturing Operations

Free trade agreements, falling entry barriers, shorter product life cycles

When FORD purchased Jaguar….

Leading

Motivation

departments.CEO of GM and Kodak Developing commitment and ownership in employees . and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Andy Wilson Regional Vice President of Wal-Mart visits Stores to see product placement.David Glass and KMart Middle Managers    Plant Manager Regional Manager Divisional Manager Responsibilities of Middle Managers      Plan and allocate resources to meet objectives Coordinate and link groups.Herb Kelleher at 4 Creating a positive organizational culture through language and action -Memo writing -David Glass and stories of Thriftiness of Sam Walton Monitoring their business environments . keeps a check on prices First-Line Managers    Office Manager Shift Supervisor Department Manager Responsibilities of First-Line Managers  Manage the performance of entry-level employees . replacement of products.MOPP Exams Notes : Iftikhar Ahmed  Leadership  Managing communication • Herb Kelleher Founder SouthWest Airlines: Jokester and storyteller Kinds of Managers     Top Managers Middle Managers First-Line Managers Team Leaders Top Managers     Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO) Responsibilities of Top Managers     Creating a context for change (Vision) .

outcomes. aloof. monitor. arrogant Betrayal of trust Overly ambitious Specific performance problems with the business Over managing: unable to delegate or build a team Unable to staff effectively .MOPP Exams Notes : Iftikhar Ahmed     Encourage. and raises What Companies Look for in Managers     Technical Skills : the ability to apply the specialized procedures. resources. techniques and knowledge required to get the job done Human Skills : the ability to work well with others Conceptual Skills: the ability to see the organization as a whole. projects. goals. how well company is working in relation to environment Motivation to Manage : an assessment of how enthusiastic employees are about managing work of others Mistakes Managers Make        Mistakes Managers Make Cold. how the different parts affect each other. and reward the performance of workers Managers tracking phone calls of telemarketing reps Teach entry-level employees how to do their jobs Make detailed schedules and operating plans Responsibilities of Team Leaders    Facilitate team performance Manage external relations Facilitate internal team relationships Managerial Roles Interpersonal    Figurehead : Managers perform ceremonial duties Leader : Managers motivate and encourage workers to accomplish objectives Liaison : Managers deal with people outside their units Informational    Monitor : Managers scan their environment for information Disseminator : Managers share information with others in their company Spokesperson : Managers share information with others outside their departments/companies Decisional     Entrepreneur : Managers adapt to incremental change Disturbance Handler : Managers respond to problems that demand immediate action Resource Allocator : Managers decide who gets what resources Negotiator : Managers negotiate schedules.

 Another goal of HRD interventions is an effort to change employee behavior. organization. etc.  HRD provides skills and behaviors to employees which assist in increasing their performance which leads to great accomplishments.) • Work environment (supervision. Types of Behavior  Task Performance Behavior  Organizational Citizenship Behavior Model of Employee Behavior  Forces that influence behavior: – – External to the employee: • External environment (economic conditions. outcomes of performance) Within the employee: .  HRD Professionals help employees by designing and developing programs that promote individual development.MOPP Exams Notes : Iftikhar Ahmed    Unable to think strategically Unable to adapt to boss with different style Over dependent on advocate or mentor Competitive Advantage through People Management Practices in Top Performing Companies         Employment Security Selective Hiring Promotion from within High Wages Contingent on Organizational Performance Training and Skill Development Reduction of Status Differences Sharing Information Participation and Empowerment Major Purpose of Human Resource Development  A major goal of HRD interventions is to assist employees and organizations in achieving their goals. coworkers. laws and regulations.  HRD also improves organizational performance.

 Employee perception of outcomes are important determinants of employee behavior. knowledge/skills/abilities (KSAs) Factors in the External Environment  Economic conditions  Technological changes  Labor market conditions  Laws and regulations  Labor unions Factors in the Work Environment  Outcomes  Supervision and leadership  Organization  Coworkers Outcomes Can Influence Employee Behavior  Personal outcomes are those that have value to the individual. recognition or reward etc. such as pay. productivity or quality etc.  Self-Fulfilling Prophecy: The pygmalion effect describes that how the expectations of a supervisor can influence the behavior of the subordinates. Motivation Characteristics .  LMX Theory: Suggests that supervisors tend to develop different quality relationships with their subordinates. and persists voluntary actions that are goaldirected. such as teamwork.  Organizational outcomes are things valued by the organization. Motivation  Psychological processes that initiates. directs. Equity Theory: This theory states that outcomes are evaluated by comparing them to the outcomes received by others. Expectancy Theory: This theory states that employees will perform behaviors that they perceive will bring valued outcomes. attitudes. Supervisors and Leaders still continue to play an important role in the success of organizations.MOPP Exams Notes : Iftikhar Ahmed • Motivation.

attitudes and goals.MOPP Exams Notes : Iftikhar Ahmed  Focuses on processes affecting behavior such as: – Energizing of effort – generation of mobilization of effort – Direction of effort – towards one goal or another – Persistence of effort = continue to put in effort  An individual phenomenon – all people have unique needs. Need Activation-Need Satisfaction Process Maslow’s Hierarchy of Needs . desires.

MOPP Exams Notes : Iftikhar Ahmed Herzberg’s Theory  Job disatisfaction and job satisfaction not oppostite feelings as they have various determinents  Hygeine Versus motivation factors – Motivation factors . Enrich the jobs rather then enlatging them. feeling of accomplishment. – Job loading leads to jon enlargement : 20 bulbs instead of 10 – adding meanningless tasks to make the job challenging = 0+0 – Rotating jobs = dishwashing or mopping = one 0 instead of another! Enrichment strategy  Vertical job loading is important : – Remove some controls while retain responsibility (accounatbility) – Task identity and significance ( giving responiobility for whole task. difficult. and understood goals generally lead to higher performance . recognition) – Job freedom – Peridoc reports directly avaialble to employees than supervisors ( internal recongnition) – Introducing new and more diffciult tasks not previously handled ( growth and learning) – Assigning specialized tasks enabling them to become experts ( advancement) Goal Setting Theory  Specific.

Skills and Abilities (KSAs) .MOPP Exams Notes : Iftikhar Ahmed  Keys to performance are the level of difficulty and the clearness of goals Social Learning Theory  Self-efficacy – judgment of what you think you can do with the skills you have  Major prediction of the theory is that expectations determine: – Whether a behavior will be performed – How much effort will be expended – How long you will perform the behavior Equity Theory Major assumptions:  If you are treated fairly. Behavior Modeification:  Reinforcement: Immediately praising an employee for coming early or discouraging for coming late  Punishment: suspending an employee for breaking organziational rules  Extinction: May unintentionally lower desirable behavior. E. absence of recognition on good work Self Determination Theory  Motivation – a multidimensional construct – defined in terms of autonomous and controlled motivation –  Flourishes in the presence of autonomy. you will keep working well  If you think you are being treated unfairly. you will change your behavior in order to be treated fairly A Noncognitive Theory Reinforcement theory: Overlooks inner state of individual –behavior is defined as a function of consequences following it. feelings of competence (promoted thorugh recognition and feedback) whcih directly influences LOC and Need of Relatedness (involve relationships with significant others  IM : inherently interested doing an activity  EM: Tied to external factors  Amotivation: Absence of regulation: lack of motivation Knowledge.g.

. Types of Attitudes      Job Satisfaction Job Involvement Organizational Commitment Perceived Organizational Support (POS) Employee Engagement Bona fide occupational qualification (BFOQ) o Requirement that an employee be of a certain religion. sex. Specified by the 1964 Civil Rights Act.MOPP Exams Notes : Iftikhar Ahmed  Abilities – general capacities related to the performance of specific tasks  Skills – combines abilities and capabilities (developed through training programs etc)  Knowledge – understanding of the factors or principles related to a specific subject  HRD programs mostly focus on changing skills and knowledge Attitudes…  Attitudes determine behavior but not directly. Conditions for applying McDonnell-Douglas o The person belongs to a protected class. or national origin where that is reasonably necessary to the organization’s normal operation. o The person was rejected despite qualification.  Attitudes combine with perecieved social pressure ( norms) to form intentions  Intentions directly predict behavior  Reactions to feedback or other employee attitudes can have implications for HRD interventions such as training and career porograms.  Age  Religion  Gender  National Origin McDonnell-Douglas test o A test for disparate (intentional) treatment situations in which the applicant was qualified but the employer rejected the person and continued seeking applicants. o The person applied and was qualified for the job.

– They match proposals with counterproposals in a reasonable effort to arrive at an agreement. the position remained open and the employer continued seeking applications from persons with the complainant’s qualifications. – Take concrete steps to foster diversity at work.MOPP Exams Notes : Iftikhar Ahmed o After rejection. racially. and terms and conditions of employment “in good faith. – Assess the situation.”  What Is good faith bargaining? – Both parties communicate and negotiate.  Boosting workforce diversity – Adopt strong company policies advocating the benefits of a culturally. . – Provide diversity training and education. – Evaluate the diversity management program. hours. and sexually diverse workforce. – Change culture and management systems. – It does not mean that one party compels another to agree to a proposal or make any specific concessions. – What Is collective bargaining? – Both management and labor are required by law to negotiate wage. Diversity Management  Managing diversity – Provide strong leadership.

 Negotiate with your boss for realistic deadlines on projects. .  Find time every day for detachment and relaxation.  Learn as much as you can about upcoming events and get as much lead time as you can to prepare for them. cooperative relationships  Don’t bite off more than you can chew. pleasant.MOPP Exams Notes : Iftikhar Ahmed What Causes Accidents? Reducing Job Stress: Personal  Build rewarding.  Build an effective and supportive relationship with your boss.

Traits Theories of Leadership  Theories that consider personality.MOPP Exams Notes : Iftikhar Ahmed  Take a walk to keep your body refreshed and alert. since a mistake can trigger stress. for instance. Management  Use of authority inherent in designated formal rank to obtain compliance from organizational members. Trait Approach  Traits (examples) – Extraversion – Conscientiousness – Openness .  Reduce trivia in your job.  Have open communication between management and employees.  Provide employee assistance programs including professional counseling.  Give employees more control over their jobs. Leadership  The ability to influence a group toward the achievement of goals. Reducing Job Stress: Organizational  Provide supportive supervisors  Ensure fair treatment for all employees  Reduce personal conflicts on the job. social. by regularly asking how they are doing. delegate routine work.  Ensure effective job–person fit.  Find ways to reduce unnecessary noise.  Limit interruptions.  Don’t put off dealing with distasteful problems. physical.  Make a “worry list” that includes solutions for each problem. or intellectual traits to differentiate leaders from nonleaders.  Support employees’ efforts.

options to accomplish this:  Select leader to fit situation  Change situation to fit leader Cognitive Resource Theory  A theory of leadership that states that the level of stress in a situation is what impacts whether a leader’s intelligence or experience will be more effective. Fiedler Model  Leader: Style is Fixed (Task oriented vs. Contingency Approach: Hersey & Blanchard Situational Model  Considers Leader Behaviors (Task & Relationship) – Assumes Leaders CAN change their behaviors  Considers Followers as the Situation – Follower Task maturity (ability & experience) – Follower Psychological maturity (willingness to take responsibility)  Assumptions . Relationship oriented)  Considers Situational Favorableness for Leader – Leader-member relations – Task structure – Position power  Key Assumption – Leader must fit situation.MOPP Exams Notes : Iftikhar Ahmed  Assumption: Leaders are born  Goal: Select leaders  Problems – Traits do not generalize across situations – Better at predicting leader emergence than leader effectiveness Behavioral Theories of Leadership  Theories proposing that specific behaviors differentiate leaders from nonleaders.

Engages in behaviors that are perceived as novel and counter to norms.MOPP Exams Notes : Iftikhar Ahmed – Leaders can and should change their style to fit their followers’ degree of readiness (willingness and ability) – Therefore. 2. Unconventional behavior. Leader–Member Exchange Theory Leader-Member Exchange (LMX) Theory • Leaders select certain followers to be “in” (favorites) Based on competence and/or compatibility & similarity to leader • “Exchanges” with these “In” followers will be higher quality than with those who are “Out” • RESULT: “In” subordinates will have higher performance ratings. the more “ready” the followers (the more willing and able) the less the need for leader support and supervision. 4. Key Characteristics of Charismatic Leaders 1. Environmental sensitivity. Perceptive of others’ abilities and responsive to their needs and feelings. Able to make realistic assessments of the environmental constraints and resources needed to bring about change. Sensitivity to follower needs. less turnover. and greater job satisfaction Path-Goal Theory Premise • Leader must help followers attaining goals and reduce roadblocks to success • Leaders must change behaviors to fit the situation (environmental contingencies & subordinate contingencies) Charismatic Leadership Theory • Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. 3. 5. Personal risk. Hersey and Blanchard’s Situational Leadership Theory Situational Leadership Theory (SLT) A contingency theory that focuses on followers’ readiness. incur high costs and engage in self-sacrifice to achieve the vision. Vision and articulation. Willing to take on high personal risk. and is able to clarify the importance of the vision in terms that are understandable to others. . Has a vision—expressed as an idealized goal—that proposes a future better than the status quo. it is possible to TRAIN leaders to better fit their style to their followers.

MOPP Exams Notes : Iftikhar Ahmed Transactional Leaders Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. and intellectual stimulation Dependency: The Key To Power • • The General Dependency Postulate – The greater B’s dependency on A.. idealized influence. Transformational Leaders Leaders who provide the four “I’s” (individualized consideration.g. the greater the power A has over B. inspirational motivation. – Possession/control of scarce organizational resources that others need makes a manager powerful. What Creates Dependency – Importance of the resource to the organization – Scarcity of the resource – Nonsubstitutability of the resource – Boundaries – Constraints Policies set . multiple suppliers) reduces the resource holder’s power. – Access to optional resources (e.

 This consists of the combination of price and customer-perceived product/service benefits of each offering. Technological resources Strategic business unit Distinct external market for goods or services that is different from another SBU. Physical resources 3.  If each product and each geographical branch is considered to be an independent SBU such immense variety of competitive strategies for a single organization would create a lack of focus and inefficiency. . Human resources 4.  The concept of the SBU is important in properly reflecting the diversity of products and markets that actually exist IDENTIFYING STRATEGIC BUSINESS UNITS Following two broad criteria which can help in avoiding these two pitfalls External criteria  Two parts of an organization should only be regarded as the same SBU if they are targeting the same customer types.MOPP Exams Notes : Iftikhar Ahmed – Limits Policies facilitate solving recurring problems and guide the implementation of strategy – Policy Manuals Resource Allocation Four types of resources 1. Financial resources 2. Internal criteria  Two parts of an organization should only be regarded as the same SBU if they have similar products/services built on similar technologies and sharing a similar set of strategic capability Kodak-film based and digital products BASES OF COMPETITIVE ADVANTAGE: THE ‘STRATEGY CLOCK’  Assuming that there are a number of providers customers will choose which offering to accept on their perception of value-for-money. through the same sorts of channels and facing similar competitors.

unreliable.MOPP Exams Notes : Iftikhar Ahmed Integration Strategies Guidelines for Forward Integration  Present distributors are expensive. or incapable of meeting firm’s needs  Availability of quality distributors is limited  When firm competes in an industry that is expected to grow markedly  Organization has both capital and human resources needed to manage new business of distribution  Advantages of stable production are high  Present distributors have high profit margins Backward Integration  Seeking ownership or increased control of a firm’s suppliers Guidelines for Backward Integration  Suppliers are expensive  Number of suppliers is small and number of competitors large  High growth in industry sector  Capital and human resources to manage new business  Advantages of stable prices are important  Present supplies have high profit margins .

or slow-growth industry  Adding new & related products increases sales of current products  New & related products offered at competitive prices  Current products are in decline stage of the product life cycle  Strong management team Guidelines for Conglomerate Diversification  Declining annual sales and profits  Capital and managerial talent to compete successfully in a new industry .MOPP Exams Notes : Iftikhar Ahmed Horizontal Integration  Seeking ownership or increased control over competitors Guidelines for Horizontal Integration  Firm can gain monopolistic characteristics without being challenged by federal government  Competes in growing industry  Increased economies of scale provide major competitive advantages Intensive strategies  Require intensive efforts to improve a firm’s competitive position with existing /new products and markets Diversification strategies  Becoming less popular as organizations are finding it more difficult to manage diverse business activities Related Diversification  Adding new. products or services  P&G and Unilever range of consumer goods  Forward and backward integration to diversify  Diversify within strategic capabilities and value network  Car manufacturers forward integrated to repairs and service but failed  Synergies may be harder to identify – built around economies of scope Guidelines for Related Diversification  Competes in no. but related.

MOPP Exams Notes : Iftikhar Ahmed  Exiting markets for present products are saturated Forces for Change Kotter’s Eight-Step Plan for Implementing Change 1. Establish a sense of urgency by creating a compelling reason for why change is needed. .

identifies processes that need improvement.MOPP Exams Notes : Iftikhar Ahmed 2. stereotypes. and make necessary adjustments in the new programs. greater openness. create. 7. Sensitivity Training / Techniques Training groups (T-groups) that seek to change behavior through unstructured group interaction. Form a coalition with enough power to lead the change. 6. and perceptions that groups have of each other. Communicate the vision throughout the organization. 4. Organizational Development (OD) A collection of planned interventions. reassess changes. 5. Create a new vision to direct the change and strategies for achieving the vision. Provides increased awareness of others and self. 8. Team Building High interaction among team members to increase trust and openness. Increases empathy with others. Consolidate improvements. improves listening skills. Plan for. and increased tolerance for others. Intergroup Development OD efforts to change the attitudes. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. built on humanistic-democratic values. 3. that seeks to improve organizational effectiveness and employee well-being. and between the client and other people. within the client. and reward short-term “wins” that move the organization toward the new vision. Leader acts only as a moderator to enhance interactive learning Process Consultation (PC) A consultant gives a client insights into what is going on around the client. Change Strategies • Force Change Strategy – • Giving and fulfilling orders. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. low commitment and morale Educative Change Strategy .

typically defined by department designations and geographical separation.MOPP Exams Notes : Iftikhar Ahmed – • Greater commitment but slow implementation Rational or Self-Interest Change Strategy – Attempts to convince that change is to self interest of employee – seldom so Organizational Culture • A common perception held by the organization’s members. Dominant Culture • Expresses the core values that are shared by a majority of the organization’s members. . Strong Culture • A culture in which the core values are intensely held and widely shared. Subcultures • Minicultures within an organization. a system of shared meaning.

MOPP Exams Notes : Iftikhar Ahmed .