CHAP 1: Management

Level of management:
The universality (tính phổ quát) of management means that: all managers in all organizations perform the 4
management functions

= front-line → plant → vice president of operations

- Line management: daily function - supervisor
e.g. clothing store: check ai trực, xem hàng tồn/xuất, store manager
​- supervisor involve clerical duties
- Middle management: diff from diff company. In charge of function of company
e.g. head of sale, head of mkt, regional manager, project leader, or division manager. production plant
manager
- Top manager: in charge of long term planning and strategy (5-10 years) and solve problem that
affect whole company (oversight) - arrangement makes up a organization
e.g. CEO, CTO (tech), CFO (finance) - plan to move the factory, change to product, facing scandal
⇒Reward of being a manager: receiving recognition in the organization
Management process:

*Henri Fayol proposed that managers performed five functions: planning, organizing, commanding,
coordinating, and controlling.
1. Planning: Setting goal with coordinate activities - he is sure they can fulfill the schedule because
they are good and skilled employees
top : định hướng 10 năm middle: thường niên - mỗi năm line: mỗi ngày/tuần
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 2. Organizing: assign the right work to right people with enough resource
e.g: human resources manager is meeting with the production manager to write job descriptions and to
decide how to group jobs for a new production line
3. Leading: motivation
e.g: Two of Brent's subordinates have not been getting along, a situation that has now interfered with their
productivity
4. Controlling: monitor the quality/work progress and evaluation-make adjustment (When Joe checks
the amount of output that the employees have completed and the number of units that have been
rejecte)

- Interpersonal: Figurehead (represent cho cty), leader (guide and motivate), liaison
- Informational: Monitor (kiếm thông tin mới), disseminator(truyền thông tin- sharing with her team
members the information she received at this morning's production meeting), spokesperson(người
đại diện truyền thông tin cho external)
- Decisional: Entrepreneur (Connie has an idea for a new product she would like to produce and
market. Mintzberg would consider the activities necessary to form and launch her company),
disturbance handler (handle unexpected event) , resource allocator, negotiator
Skills Needed

Interpersonal skills remain equally important to all levels of management.

- Technical skills: Knowledge and proficiency in a specific field
e.g. Technical skills needs job specific knowledge needed to proficiently perform work tasks + ​skills tend to
be more important for first-line managers (shift managers) since they manage employees who produce
the organization's product or service the organization's customers.
⇒ Từ shift manager lên department managers thì technical skills giảm
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 - Human skills: The ability to work well with other people
- Conceptual skills: The ability to think and conceptualize about abstract and complex situations
concerning the organization
e.g. The CEO of MindWerks must understand the industry in which his business competes, the future of that
industry, and the competition. This requires strong conceptual skills.
- Digitization resulted in the shifting of organizational boundaries. Increased accountability of
employees is typically caused by increased emphasis on organizational ethics. supervisor is
most likely to involve clerical duties. The universality of management means that all managers in all
organizations perform the four management functions

CHAP 2: Decision- Making

Decision-making process:
Step 0: Be aware of yourself: The way you look at life, work, school,... your view about the world,
philosophy (affect step 1,2,3)

Identify the problem:

- ​Ridership on the city's public transportation buses has fallen for three weeks in a row. This is a
condition, but we need more information to determine whether it is a problem or a symptom
To determine the decision criteria
- B wants to introduce a new model to the product line. Three models are being developed. B can
choose only one. She has decided to focus on target market size, production costs, and net profits)
- a manager must determine what is relevant or important to resolving a problem

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 - A, a single parent, is looking for a new job. Considering that she has two school-aged children, she is
particularly keen on finding an employer who can provide her with alternative work arrangements
such as flexible work hours and telecommuting. In terms of the decision making process
- M is planning to go away to college next year and is currently trying to figure out to which colleges he
should apply. He would like to major in English Literature at an accredited liberal arts college, but is
also looking for a university that offers financial aid. In terms of the decision making process
To allocating the weight of criteria
- B must select a new supplier for lighting fixtures for his company's mobile homes. He has decided
quality is more important than price but price is more important than lead times
- C discovered that the supplier with the highest quality also had the longest lead time. The supplier
with the best lead time had the highest price. To help C make her decision, she should multiply her
ratings for each criteria by the weight for the criteria then sum the scores.
Develop alternative:
- creativity is important
- C is searching the Internet for sources of Himalayan salt to make bath salts.
- When the overhead cranes crashed into each other for the third time, Joe formed a team to look into
ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of
which might work
Analyze the alternative:
- C has identified several possible sources for Himalayan salt to make her bath salts. Now she is
comparing their prices, quality, and delivery times. At what step is she in the decisionmaking process
Implementing the alternative:
- After A listened to the weather report this morning before work, she drove her car and carried an
umbrella instead of riding her motorcycle. Whether she realizes it or not
- In the decision-making process, while implementing an alternative, the decision maker puts the
decision into action by conveying it to those affected by it and getting their commitment to it.
- allowing those impacted by the outcome to participate in the process - effectively implementing the
chosen alternative in the decision-making process
- Before actually putting the decision into action, the decision-maker may find it prudent to check to
make sure the conditions that existed at the time of the decision still exist, and make sure the
decision is still the best one
Evaluate the outcome:
- J team implemented one of the ideas to avoid crane crashes. It is important for the team to evaluate
the results because results may vary from expectations
Making decision style/approach: *different person have different style
In common:
- make decision based on evidence, fact, not based on emotion
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 - try to maximize benefit - do it have evidence to show it benefit
Difference:
- Rationality: you try to have as many option as possible - then analyze with as much info, evidence
as possible “Tốt thì làm” logical and consistent choices to maximize value.
+ Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses
rational decision making, he will disregard the fact the one of the candidates is the owner's
nephew
+ It is important that decision-makers ignore emotions when making business decisions so their
decisions will be perceived as rational (F)
+ One assumption of rational decision making is that the decision maker is not aware of all possible
alternatives and consequences. (F)
- Bounded rationality: only consider the option that convenience to you and you analyze the option
with info that you can easily get, available “Tiện thì làm” - When managers make decisions that
are rational but limited by their ability to process the information
Ex: Students answers will vary, but must include an expectation of rationality, a limited ability to process
information, an inability to know all possible alternatives, and a probable lack of maximization of the results
of the decision
+ Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000
items. Evelyn did not have time or resources to pursue each of these so she limited her search to only
vendors in her state
+ Managers cannot possibly analyze all information on all alternatives; they tend to satisfice, rather than
maximize.
+ Satisficing: results in a solution that is considered "good enough."
+ Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and
$6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life
expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would
say she is ​satisficing
+ Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after
three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which
was one of her backup colleges (satisficing)
+ escalation of commitment:
Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor.
Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in
training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the
young employee
- Intuition: based on emotion, no maximize benefit, search evidence based on experience
(experience based)
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 + is the process of making decisions based on experience, feelings, and accumulated judgment.
+ Farrell has a knack for selecting candidates who become very successful workers. When asked how
he does it, he answered that he "listened to his gut.
+ evidence-based management: Gilda has an idea that would streamline operations, reduce costs,
and increase profits. Her idea requires the cooperation of several departments, some of which have
demonstrated a resistance to change. By considering the context in which the changes must happen
and the people in her organization
+ evidence-based management: Farrah has called together her management team to review
information about customer satisfaction gathered by an external research company.
Types of problem:
- Structure problem: straightforward, familiar, and easily defined.
+ Garrett looked at the list of orders for the coming week and made out the production schedule.
He has done this so many times he could do it in his sleep
+ align well with programmed decisions
+ first line manager deal
- Unstructured problem: are accompanied by ambiguous or incomplete information
+ After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the
managers have been able to determine the cause. Some say the entire economy is in
recession; others blame a change in suppliers; still others say the work ethic among
employees just isn't what it used to be
+ upper manager deal
Types of decision-making conditions
Programed decision (giống như formalize):
- have been made for you by people higher level - will be taught by HR - called procedure - managers
đã làm hết you only need to select to choose options (ppl withdraw the product)
*if business big enough → must make programed decision to teach new member. repetitive decision that
can be handled by a routine approach.
- Lower-level managers typically confront
rule: an explicit statement that tells a manager what can or cannot be done
e.g: All employees must be at their work stations and ready to work by the time the buzzer sounds
Smoking and the consumption of alcohol are strictly prohibited inside the work Premises
procedure: series of sequential steps a manager uses to respond to a structured problem
e.g: One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a
replacement. The HR department issued a set of instructions Henry must follow to initiate the search for
candidates.
policy: typically serves as a guideline for decision making by setting general parameters - contains an
ambiguous term that leaves interpretation up to the decision maker.
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e.g: We expect to maintain the highest standards of quality in our workmanship
Non-programed:
unique and nonrecurring. When problems are unstructured, managers must rely on non-programming in
order to develop unique solutions.
e.g: A is a plant manager in a multi-site corporation. He frequently deals with situations involving new
customers and new products - unstructured problems and nonprogrammed decisions
Bias - why you still making wrong decision
immediate: make decision based on short-term benefit, not consider long term benefit, consequence -
(cheat on exam) → Many new car buyers choose to buy a car with little or no money down and payments
for many years
anchoring: nâng giá lên để giá xuống: make decision based on the first option/information that you have
(the house:100k but the seller discount 80k - seller say 50k at first but increase price to 80K later )
- Rules of thumb that managers use to simplify decision making
- Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie
noticed about the applicant was that he was improperly attired. Though the candidate possessed the
necessary qualifications and effectively answered all her questions, Sophie rejected him
confirmation: you have options that you like and only need info to prove/confirm that option - ignore other
options : shopping
- Beth hired Tom, trained him, coached him, and expected he would be her eventual replacement when
she moved up in the company. She noted each of his accomplishments with pride but wrote off as
vicious gossip the comments from Tom's co-workers that he was making too many mistakes
- Mildred was persuaded by a fast-talking salesperson to carry an expensive brand of yarns in her retail
needlecraft shop. Seldom does a customer buy this brand, but on those rare occasions Mildred tells
herself she made the right decision. The yarns have been sitting on the shelf for several months and
she has yet to profit from them
availability: believe that common info to true and uncommon to be false (watch shark on tv attack shark =>
scared of shark attack) It hasn't rained in several days; therefore it is unlikely to rain today
sunk cost: kh xem relevant info - only follow through on an endeavor if already invested time, effort, money
whether the cost is outweigh the benefit (dating someone for few years but right now you don't like but still
continue) error occurs when decision makers forget that current choices cannot correct the past
"We can't stop now. We've already invested $100,000 in the project’.
self-serving: evaluate your decision: success thì because of me, failure because other factors)
Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to
his personal qualities such as his ability to thrive under pressure and his eye for detail. However, any
negative performance feedback is always met with excuses such as unsupportive team members or
insufficient time.

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over-confidence: Lucas always seems to "know" exactly what to do in any given situation. At least that's
what he'll tell you. But his ideas don't always work and his overall performance as scored by his supervisor
isn't nearly as great as he thinks it is.
randomness bias: "There are no coincidences. If something bad has happened to you, you must have
done something to deserve it." The last time he flew Jet Value Air, Juan's plane developed a fuel leak and
had to make an emergency landing. The time before that, his plane was grounded because of an electrical
problem. Juan is sure his current trip will be fraught with problems and he will once again be delayed
selective: Lila believes the global climate is changing. Every storm, every volcano eruption, every
earthquake is, in her mind, evidence of this climate change
The Prime Minister of Transylvania prefers darkened rooms, flinches in bright light, and has unusually long
incisors. Despite his long and successful career, his political opponents claim he is a vampire
framing bias: decision makers select and highlight certain aspects of a situation while excluding others.
representation bias: The last time the Whigs took over Congress, stock prices rose dramatically and
unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio
to grow significantly
hindsight: Marty had arranged for a high-profile speaker to deliver the keynote address at her college's
annual function. However, due to unforeseen circumstances, the speaker was forced to drop out at the last
moment. Marty reacts to this news by saying, "I knew all along that this would happen
Decision making condition:
- Certainty:
+ make accurate decisions because the outcome of every alternative is known
+ It is time for Jane to order laminated plywood again. She typically orders from one of three vendors.
She knows the price, delivery time, and quality of each vendor
- Risk
+ Under risk, managers have historical data from past personal experiences or secondary information
that lets them assign probabilities to different alternatives
+ The manager of an apparel store estimates how much to order for the current spring season based
on last spring's sales figures
- Uncertainty:
+ cannot make reasonable probability estimates
+ In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept;
there was no precedent for this type of product. Under these circumstances
- Heuristic:
+ heuristics - "Red sky at night, sailor's delight; red sky at morning, sailor's warning"
+ Rules of thumb that managers use to simplify decision making
maximax: optimist

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 + James has calculated the possible profits from three different scenarios for the expansion of his
restaurant, each for a different amount of advertising and promotion. He has chosen to implement the
scenario that offers the greatest profit
maximin: pessimist
+ Depending on the weather and the amount of advertising, Kyle has developed six scenarios for his
summer profits from his lawn care business. His business has failed to reach his expectations in the
past, so he fears the worst.
Effective decision making là như thế nào:
- To make effective decisions in today's fast-moving world, managers need to know when it is time to
call it quits
- After the city of Washington, D.C announced it was raising the minimum wage to $12.50 per hour,
WalMart halted construction of a supercenter there, despite having already invested years in
negotiations with the City and tens of thousands of dollars in construction - knowing when to call it
quits
Fail khi decision making:
- A few decades ago, Walmart opened stores in Germany. After a few years, it closed all of them. The
shopping habits of Europeans differed so much from that of Americans that the stores could not
become profitable ⇐ It did not understand cultural differences.
Design thinking:
- Design thinking suggests that managers should look at problem identification collaboratively and
integratively with the goal of gaining a deep understanding of the situation

CHAPTER 3: Culture
Hofstede Dimensions - overview of new culture
Collectivism: how much u benefit the group/yourself
+ High: Put the benefits of the group over your own benefits → that is characterized by a social
framework where people expect others in the group that they are a part of to look after them
and to protect them when they are in trouble.
+ Low (Individualism): your own benefits > group benefits → refers to a social framework where
people look after their own interests and those of their immediate family
Power Distance: the extent to which less powerful members
+ High: power distance society accepts wide differences in power in organizations
e.g: how do you behave with boss (degree of bow when see boss)
+ Low: plays down inequalities, not afraid to approach their boss (The United States)
e.g: A believes that the CEO is no better than the janitor of the organization and neither should receive
preferential treatment
Uncertainty Avoidance
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 + High (skeptical): is threatened with ambiguity and characterized by a high level of anxiety
among its people
e.g: people working in banking, finance ( Sing, Hongkong ) or A likes to know the end from the beginning so
A gathers as much information as possible before making a decision
+ Low: is comfortable with taking risks and is also tolerant of different behavior and opinions
e.g: no saving, money loan to do what they like ( America )
Masculinity/Femininity : how much do you value strength competition - physical and mental strength
- High: the trait which emphasizes ambition, acquisition of wealth, and differentiated gender roles (
The USA )
● social norm: ego oriented, money and things are important, live in order to work
● politics and economics: economic growth high priority, conflict solved through force
● religion: most important in life, only men can be priests
● work: arger gender wage gap, fewer women in management, preference for higher pay
● family and school: traditional family structure, girls cry, boys don’t; boys fight, girls don’t, failing
is a disaster
- Low ( femininity ): the trait which stress caring and nurturing behaviors, sexuality equality,
environmental awareness, and more fluid gender roles.
● social norm: relationship oriented, quality of life and people are important, work in order to live
● politics and economics: environment protection high priority, conflict solved through
negotiation
● religion: less important in life, both men and women as priests
● work: smaller gender wage gap, more women in management, preference for fewer working
hours
● family and school: flexible family structure, both boys and girls cry; neither fight, failing a minor
accident
Time Orientation
+ Long term: value future, proactive - you hustle - 996 in china
+ Short term: enjoy moment, value condition - sống chill - chill life in argentina
e.g: - future - orientated: America
- present - orientated: France
- past - orientated: Britain
Types of international business culture
- Multidomestic corporation ( MNC ): polycentric - host make decision (host know best) - Viet
company in Vietnam: Viet manger → decentralizes management and other decisions to the local
country → using this approach because they must adapt their products and services to meet the
needs of the local markets

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 + is the view that employees in the host country know the best practices for running their
operations.
+ managers with this attitude view every foreign operation as different and hard to understand.
thus, these managers are likely to leave their foreign facilities alone and let foreign employees figure
out how best to do things
e.g: Samanex Corporation maintains production facilities in 13 different countries on three continents. Each
facility is managed by a native of the country where it is located.
- Global company: ethnocentric - home know best - French company in Vietnam: French manager. (
should avoid ) → centralizes its management and other decisions in the home country → focus on
the need for global efficiency
+ is characterized by parochialism, stems from parochialism
+ is the belief that the home country has the best work approaches and practices; people in
foreign countries do not have the needed skills, expertise, knowledge, or experience to make
the best business decisions as people in the home country do. They don't trust foreign
employees with key decisions.
e.g: While talking with her advisor at the university, Jane deduces that she has an ethnocentric attitude, as
she has never traveled abroad and relates well only to people from her home country.
- Borderless-transnational corporation: geocentric: have unique way of working and running - not
based on host or home (focus on talented ppl suit-best for company culture and position) - but
appropriate with the system- recruit who best fit that way of work → increase efficiency and
effectiveness in a competitive global marketplace ( must have )
+ is a world-oriented view that focuses on using the best approaches and people from around the
globe.
+ managers with this type of attitude believe that it's important to have a global view both at the
organization's headquarters in the home country and in the various foreign work facilities
Ex: Melanie joined an international student association in order to better understand the views of students
from other countries
Home country: most often headquarter in their origin country
Host country: The country you will expand into

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Level of Global company

càng đi lên cao, rủi ro cao, đầu tư càng nhiều

Global sourcing (có tính quốc tế): Managers who want to get into a global market with minimal
investment start with global → acquiring products made abroad and selling them domestically, materials or
labor from around the world wherever it is cheapest. e.g: bán áo ở USA nhưng sản xuất ở VN → lowest
cost
Exporting and Importing: imex: thuộc cty xuất nhập khẩu
+ Exporting refers to the selling of goods and services from the home country to a foreign nation.
e.g: N uses ethnic craftsmen to make high quality oak furniture. N decides to offer his furniture
for sale in other countries → engaging exporting.
+ Importing refers to the purchase of foreign products and bringing them into one's home
country. e.g: N operates a retail store in Romania. N buys consumer electronics from vendors
in China and Japan to sell in her store → engaging importing.
Licensing/ Franchising:
+ Licensing: primarily used by manufacturing organizations that make or sell another company's
products
e.g: A have innovation, B want to buy - B buy the right to use innovation - Spotify bán quyền sử
dụng kho nhạc cho customer - bán quyền sử dụng thương hiệu cho B for 2 năm, 2 năm sau, A tới gỡ
+ Franchising: is primarily used by service organizations that want to use another company's name and
operating methods
e.g: A will give away everything, B operate exactly the same as A - B have branding, customer
service, technology, marketing - (KFC)

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 ⇒ Managers also might use both, similar approaches involving one organization giving another
organization the right to use its brand name, technology, or product specifications in return for a lump
sum payment or a fee usually based on sales
Joint venture (strategic alliance): doanh nghiệp liên doanh - B ở home, A ở host - B and A create C
Ex: In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the
General Motors and Toyota brands
Foreign Subsidiary/Branch: A tự vào country mở chi nhánh → managers may choose to directly invest in
a foreign country by setting up a foreign subsidiary as a separate and independent facility or office
Ex: Melamark's advisor on global affairs is concerned that setting up a foreign subsidiary carries too
much risk. Part of Jose's company's business plan involves setting up a foreign subsidiary

CHAPTER 4: Diversity
Definition
The ways in which people in an organization are different from and similar to one another is known as
workplace diversity.
Timeline of Evolution of Workforce Diversity
- 1960s to 1970s: focused on complying with laws and regulations through affirmative action
policies and programs.
- Early 1980s: focus on assimilating minorities and women
into corporate setting
e.g. Soon after Jeff was hired as a company accountant, his company developed corporate programs
to help improve the self-confidence and qualifications of diverse employees so they could "fit
in."
- Late 1980s: Concept of workforce diversity expanded from compliance to an issue of business
survival: the term "workforce diversity" first used.
- Late 1980s to Late 1990s: Focus on fostering sensitivity: shifting from compliance and focusing
only on women and minorities to including everyone
- New Millennium: focus on diversity and inclusion for business success, profitability, and growth
Type of diversity: tell the different
- Surface level: can tell by the look, by sense: ethnicity, demographic (e.g. Jack and Jill are discussing
about hair color, skin tone, manner of dress, and accent), can affect the way people perceive others,
especially in terms of assumptions or stereotyping. (e.g. Amanda has a Swedish mother and an
African American father. This could trigger certain stereotypes about Amanda among her co-workers,
though not necessarily reflecting the way they feel or think about her)
- Deep level: need to talk to recognize: hobby, intelligent, talent especially, personality is the factor that
important for people to get to know each other (e.g. John and his new co-worker Bill have discovered
they have different tastes in music and books, that one is extroverted and the other introverted, that
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 one prefers working in teams and the other works best alone). This can affect general behavior of
people at work like work rewards, communicate, react to leaders, negotiate.
=> depend on the industry, surface and deep can have certain impact
Benefit and Against
benefit:
- better use of employee talent
- serve more customer - approach more market
- more solution to solve (more creativity) - problem solving ability
- new learning opportunity for employee
- bring/ enhance the company image
- strategic: potential to improve market share, can be viewed as the “right” thing to do.
e.g. Ben is selecting members for a problem-solving team. He will employees from variety of ethnic and
gender background to result in better team performance >< however, more likely to experience conflict and
resentment.
against: discrimination - conflict - language barrier
Changing workplace: US population
The median age of the U.S. population has risen significantly over the last decade correctly reflects
the characteristics of the current U.S. population.
As chief of new product development for a U.S. consumer goods firm, Carmen should be very aware that
the aging of the population is likely to have the greatest influence on consumer preferences for the next
few decades.
The majority of the population increase in the next 35 years will come from immigrants and their
descendants.
By 2050, 20 percent of the population of the United States will be 65 and over.
Organizations must recognize that they can't expect employees to assimilate into the organization
by adopting similar attitudes and values.
The total world population is forecast to hit 9 billion by 2050, at which point the United Nations predicts the
total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. The main
reason for this major shift is the decline in birthrates as nations advance economically.
People aged 65 and older will soon outnumber children under age 5 for the first time in history.
Trends observed in the shifting world population indicate that the average age of the world population in
increasing. Also, the world's population aged over 80 is expected to more than double by the year 2040.
Which of the following is a likely implication of such population trends? dwindling labor supply.

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Types of workforce diversity

- Age: Title VII of Civil Rights Act of 1964

Age Discrimination in Employee Act of 1967
⇒ both prohibit age discrimination.
e.g. Workers in the Millennial generation prefer teamwork and connection.
Employers generally tend to view older workers as not being flexible or adaptable and being more
resistant to new technology
- Gender: Women and men now each make up almost half of the workforce in the United States.
Masculine: Leading by example >< Feminine: Inclusive
e.g. No consistent male-female differences exist in problem-solving ability, analytical skills, competitive
drive, motivation, sociability, or learning ability. Likely to be female when prefers to work flexible hours and to
work from home as often as practical
Consistent male-female differences: work schedule preferences
- Race and ethnicity:
Race is the biological heritage (including physical characteristics such as one's skin color and
associated traits) that people use to identify themselves.
Ethnicity refers to the social traits that are shared by a human population.
e.g. African Americans and Whites have been the focus of most race and ethnographic studies of workplace
diversity in the United States. In the job setting, African Americans are found to receive lower job
performance ratings, be paid less, and be promoted less frequently than their white counterparts.
Strong work ethic is a positive perception of older employees.
- Disability: A person with a disability for whom workplace accommodations have been provided has
the same obligations and rights as far as job performance
- Religion: One big challenge for managers of diverse workforces is to provide accommodations for
disabilities and religious beliefs that other employees don't view as special treatment.
- LGBT (sexual orientation): has been called the "last acceptable bias"

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 - Other
*Civil Rights Act, Title VII also prohibit discrimination based on race, color, religion, national origin, or
gender.
Challenges

- Bias is a term that describes a tendency or preference toward a particular perspective or ideology.
- Prejudice refers to a preconceived belief, opinion, or judgment toward a person or a group of people.
- Judging a person on the basis of one's perception of a group to which he or she belongs is known as
stereotyping. (rập khuôn)
e.g.
Kathleen likes cats. ⇒ Bias
She believes people who own cats are independent and free spirits. ⇒ Prejudice
She finds out Linda has a cat. Therefore, Linda is independent and free-spirited. ⇒ Stereotyping
- Discrimination refers to someone acting out their prejudicial attitudes toward people who are the
targets of their prejudice. Discriminatory practices or policies is a type of discrimination is said to
have occurred when certain actions taken by representatives of an organization deny equal
opportunity to perform or unequal rewards for performance.
e.g. Older workers in an organization are subjected to discriminatory practices if they are laid off for being
highly paid and having lucrative benefits.
- Mockery and insults is type of discrimination usually involves jokes or negative stereotypes being
perpetrated about fellow employees.

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e.g. Mary belongs to a group that requires women to wear long sleeves, long skirts or dresses, hair done up
in a bun, and a small hat. Her coworkers often make negative comments about her appearance
- In workplace jargon, the term "glass ceiling" refers to the invisible barrier that separates women and
minorities from top management positions. "glass" in "glass ceiling" signifies that whatever is
blocking the way for women to attain top management positions is not immediately apparent.
e.g. Ang Li has found it rather hard to move up in her managerial career at her workplace especially when
compared to how fellow graduate from Tri-Valley, Adam Watson, has managed to become the regional
manager of sales in the company.
Reduce the diversity
- mentoring: Men with a strong sense of fairness make the best mentors for women
- training workshop (train about religion, culture, language, body language, lgbtqa+/sex edu…)
- select since the recruitment process
- travel trip with company: share hobby, food, clothes, picture (traditional day in the company) - sharing
activity - sport, boardgame
- đi thực địa (maybe during the company’s team building trip)

CHAPTER 5: Ethical
- Social obligation (classical view):
Do what it is told to do - due to the legal status => reflect on classical view (only care about the
maximize profit: good company = good quality product and service) (e.g.: promote cho người trên 40/
follow luật bảo vệ môi trường) - maximize profit
+ Under the classical view, aiding the few through philanthropy, increases costs for consumers
+ Appleton would like to build a coal-burning electric generating facility located in a remote area
because the cost involved is moderate
+ When a firm engages in social actions because of its obligation to meet certain economic and
legal responsibilitie
- Socioeconomic view: - improve and protect the society's welfare (serve the community and protect
environment = business ethic)
+ Management's social responsibility goes beyond making profits to include protecting and
improving society's welfare.
+ Baskins wants to build a nuclear plant because this will not add to his city's already serious
pollution problem, while taking care of its electricity requirements
- Social responsiveness: engage in social action to response the social need (ford ủng hộ federal
ban on texting when driving, company sent employee and volunteer to clean house that impacted u
the catastrophe, giao thuốc/khẩu trang in covid 19) (contribute để phát triển)

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 + If your university provides job-share programs, builds a day-care facility, and only uses recycled
paper
+ When PETA supporters picketed Avon products because of its use of animals in the testing of its
cosmetics, Avon changed its practices and stopped testing on animals
+ U.S. business that provides on-site childcare facilities for employees as part of a negotiation with
its union
+ When a firm advertises that it only uses recycled paper products
+ Years ago McDonald's switched from Styrofoam boxes for its large sandwiches to corrugated
boxes made partially from recycled materials because of concerns that Styrofoam took too long to
decompose in landfills
+ Carson wants to build an electricity generating plant that uses combustible fuels collected from
the city's garbage, and located near the downtown government area so that the steam could be
used for heating the government buildings after it has passed through the generating turbines
Social responsibility (business ethic): be socially responsible:
- Argument favor social responsibility

- Argument against social responsibility:

18
beyond law - just do for good of society (ngay từ đầu đã no harm to envi)
- defined as a business firm's intention, beyond its legal and economic obligations, to do the right things
and act in ways that are good for society
- The aspect that differentiates social responsibility from other similar concepts is that it add ethic
imperative
- eg: Apple has eliminated lead-lined glass monitors from its product line and pioneered reducedsized
packaging that leverages recyclable materials
- According to the ethical obligation, argument on social responsibility, businesses should be socially
responsible because responsible actions are the right thing to do
- Following Hurricane Katrina in 2005, WalMart sent semis loaded with items such as bottled water,
diapers, and other daily necessities to the New Orleans area
- The belief that business involvement can help solve difficult social problems is the better environment
argument of social responsibility
- address social problem b4 they become serious: superiority of prevention over cures
- violation of profit maximization
- dilution of purpose - hurt business ecnomic
- lack of accountability - no direct line of responsibility for social actions
- One argument against businesses championing social responsibility issues is that businesses already
have too much power
- Possession of resources is an argument in favor of social responsibility.
-
chia thành 2 cái 1 là theo demand, 2 là tự muốn - 3 cái đầu là demand và cái cuốn là tự muốn
Approach go green:
Green screening: The process of applying social and environmental criteria to an investment decision
Green management: Managers who consider the impact of their organization on the natural environment
are said to be practicing
ISO 9000: quality management
ISO 14000: environmental management
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Global Reporting Initiative: Many companies around the globe voluntarily report their efforts in promoting
environmental sustainability using the guidelines developed by the
Global 100 list: ​One way to evaluate a company's green actions
+ To be named on the Global 100 list, which is announced each year at the World Economic Forum, a
company has to display a superior ability to effectively manage environmental and social factors
The Global Compact:
- document created by the United Nations outlining principles for doing business globally in the areas
of human rights, labor, the environment, and anticorruption.
- Freedom of association and the effective recognition of the right to collective bargaining - labor
standard
- eliminate discrimination with respect to employment and occupation - labor standards
Organization for Economic Co-operation and Development's: first global instrument to combat
corruption in cross-border business deals

- Legal approach: obey laws, regulations - thải bao nhiêu db thì thải bấy nhiêu - làm để k phạm luật
+ exhibit little environmental sensitivity, and simply obey laws, rules and regulations
+ EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air
every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it
releases between 140 and 150 micrograms
- Market approach: what customers want, what they have - (company change product to envi friendly, even
it not good that previous but still use): khách hàng là thượng đế (làm cái khách hàng muốn)
+ organizations respond to the environmental preferences of customers
+ an organization changing its interaction with the environment because of the preferences of its
customers

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- Stakeholder: (important ppl: including cus, shareholder, supplier) approach: satisfy employees, suppliers
or community (panasonic: environmental programs for supplier - product design and recycling for customer -
work operations for employee. (làm dâu trăm họ)
+ ​an organization works to meet the environmental demands of its employees, suppliers, or community
+ Under what approach does the organization work to meet the environmental demands of multiple
groups of people including employees, suppliers
- Activist approach: the business want to (comp produce a product in a near zero emission factory - long
term commitment: Làm vì đam mê
+ reflects the highest degree of environmental sensitivity and is also a good illustration of the social
responsibility of the organization
+ look for ways to respect and preserve the earth and its natural resources
+ eg: Miller's Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies
any water used in its processes before releasing it back into the environment and exceeds the EPA
requirements for cleaning particulates from the air it uses
Factor impacts ethic in business:
Stage of moral development.

Preconventional:
- a person's choice between right or wrong is based on personal consequences from outside sources,
such as physical punishment, reward, or exchange of favors.
- individuals stick to rules to avoid physical punishment and follow rules only when doing so is in their
immediate interest
- eg: Norman is a stickler for following the rules because he is sure he will be caught and punished if
he doesn't
- John is offered an attractive incentive to steal sensitive information about his company's wealthy
investment customers - I am liable to be criminally prosecuted for my involvement in stealing the
information.

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Conventional:
- ethical decisions rely on maintaining expected standards and living up to the expectations of others
- individuals live up to what is expected by people close to them and maintain order by fulfilling
obligations to which they have agreed
- "My word is my bond’
Principle:
- individuals define moral values apart from the authority of the groups to which they belong or society
in general.
- Pharmacists who decline to dispense drugs that cause abortions
- individuals value rights of others and uphold absolute values and rights regardless of the majority's
opinion
- John is offered an attractive incentive to steal sensitive information about his company's wealthy
investment customers -> By stealing from another person, I will be in violation of the moral standards
I've come to expect of myself
Individual characteristic:
Value: the basic convictions about right and wrong decisions and behavior
Ego strength: measures the strength of a person's convictions
- Weak ego: Upper management is pushing hard to increase earnings per share. If Moe yields to this
pressure despite misgivings about the use of a non-certified material in the production of climbing
equipment
- High ego: Despite reassurances from R&D's internal testing lab, Stephen believes the new material
for climbing ropes should not be used in their manufacture until it has been certified by an
independent lab
Locus of control: people believe they control their own fate (chuyện xui rủi á bà)
- believes that she can work hard and will meet the productivity goals of her organization despite
unfavorable conditions
- It's not my fault!" - external locus of control
Ethical Issue Intensity:
- mình không làm việc xấu nhưng encourage other làm việc
- The greater the probability that some action will cause harm, the greater the intensity of the issue
- A student who never considers breaking into an instructor's office to steal an accounting exam didn't
think twice about asking a friend who took the same course from the same instructor last semester
what questions were on the exam

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 - Proximity to victims: A cartoon showing black smoke from a smokestack and the caption "We're
okay as long as the wind keeps blowing
Structure variable:
- An organization’s structural design
- Goals
- Performance appraisal system
- Reward allocation
How can we bring business ethic in the company:
- promote ethical behavior:
+ formal rules and regulations in place
+ An organization with a strong culture can encourage either ethical or unethical behavior.
+ implement a comprehensive ethics program
+ identify the ethically questionable applicants: by including integrity testing in the selection
process
- code of ethics:
+ formal statement of an organization's primary values and the ethical rules it expects its
employees to follow
- independent social: (nhờ người ngoài vào kiểm tra độ ethic của nhân viên - nếu không thì người
trong công ty sẽ bị trả đũa)
e.g. Marveline Company brought in help from outside to evaluate decisions and management
practices in relation to the organization's code of ethics
- Experiential training (thăm khu nghèo,...): tốn tiền nhưng hiệu quả
- Recruitment
- Reward and punish
- Lead by example

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 whistle-blowers: raise ethical concerns or issues in an organization
social entrepreneur: an individual or organization who seeks out opportunities to improve society by
using practical, innovative, and sustainable approaches
corporate philanthropy: Target's donation of 5% of its annual income to community support
volunteering efforts: If Google asks 25 members of its executive team to spend a full day during their
annual team-building retreat building a house in Las Vegas with Habitat for Humanity,

CHAP 6: Change
Case of Change
1. Organizational change : any alteration of people, structure, or technology in an organization
e.g: Bullseye, a large discount retailer, discovered it could not compete with the world's largest retailer and
has repositioned itself as a more upscale discount department store
2. Change agent
- When she approached her supervisor, she was asked to shepherd the idea through the approval,
implementation, and evaluations processes.
- In organizations, people who act as catalysts and assume the responsibility for managing the
change process → change agent
=> most of changes, can be group into 2 group:
+ Internal Factors
+ External Factors
Cause of change
EXTERNAL
1. Customer preference (fast fashion need u change, the trend)
e.g : The colors in home fashions change every year.
2. The law change (covid 10: cửa hàng only chứa 50% khách hàng)
3. Demographics (khác nhau về generation)
4. Economy (inflation, fuel prices, )
e.g:
- Sales are down; unemployment is up. Evergreen Park Homes can no longer support its current level
of production
- Falling interest rates
- Fuel prices keep spiraling upward so recreational vehicle manufacturers are being pressured to
produce lighter units that can be pulled by smaller trucks. -> driving force
5. Technology change
- Most business communication involves email
- Hand-held calculators replaced pencil and paper in the workplace

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INTERNAL
e.g:
When the employees express their concern about their bonus checks
- Now Snyder's strategy is customer responsiveness
6. Your competitors come out with better goods and services
7. CEO change
8. Scandal
9. Equipment breakdown (loss profit because chưa sửa kịp, hư nguyên liệu - máy bán kem, hư máy, hư
lun nguyên liệu làm kem)
10. Employee return
11. change in composition in workforce
- During his first year of employment, Arnold saw mostly white male faces in his plant. Now he sees
women and men of all ages and ethnicities. Communication has become challenging
- Increasing the numbers of employed women and minorities forces managers to pay attention
12. Employee attitude
- Labor strike
Change Process
- Analyze the impact of cause: ghế ngồi phải xen kẽ
- What area need to change:
+ Strategy (long term plan): let company know where should company go
+ Structure: means thing that keep the company, prevent the company from failing apart -things can
be physical (office văn phòng, kho hàng, layout đường đi, cách sắp xếp bàn ghế) and
non-physical (rule and regulation, position department in the company)
+ Tech: thay đổi về công nghệ
+ People: hire or fire or training development
- Planning and Organize change: give the right jobs to the right people
The two metaphors commonly used to describe the two views of the change process are calm waters and
white-water rapids
Types of change
1. Calm waters metaphor : ( Kurt Lewin )
- Benton Industries adjusted by laying off employees until the recession ended then hired them back.
Then it was back to business as usual.
- Lewin's three-step process is consistent with the calm waters theory of organizational change.

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=> UNFREEZING
- Lead/motivate ppl to change
- Control the change will go in the right direction
for example :
- increasing the driving forces
- preparing for the needed change
=> CHANGING
- Make sure the change to stick by continuing lead and control (make a deadline for change and the
job of change manager is vô cực => the job end when the change stick to the plan)
=> REFREEZING
-stabilizing the new situation
2. White-water rapids metaphor
- change is normal and expected and managing it is a continual process. Business had been humming
along just fine until the Great Recession hit.
- "If it's not one thing, it's another. We just get used to doing things one way and suddenly that's not
good enough anymore. It's a new machine here, a new manager there, changing customer
demands-it never ends!
e.g: New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has strong
competition in the market
REACTIVE VS PROACTIVE
1. REACTIVE : reacting to a situation that has occurred
- When the Pinto cars made by Ford were increasingly involved in fatal rear-crash accidents, Ford
officials made a decision to discontinue that model
2. PROACTIVE : acting in advance of a situation
3. DEACTIVE :
- Bob is the noon manager at a fast-food hamburger restaurant. As soon as he saw the bus pull into
the parking lot, he ordered the cooks to put down as many patties as the grill would hold and shifted
his people around so every cash register was open

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4 TYPES OF CHANGE

1. STRATEGY
- During the great recession, average household discretionary income declined. Families sought less
expensive alternatives for luxury items. Producers adjusted by offering lighterweight, lower-cost
items.
2. STRUCTURE
- Colin believes his organization could be more profitable if it could respond to customers more quickly
so he has decided to remove some management layers and increase the remaining managers' span
of control.
- If Kelly were to consider enhancing productivity by giving greater authority to her subordinates and
increasing formalization,
- A company that decides to decentralize its sales procedures
- /structural components/
+ combining departmental responsibilities
- /structural design/
+ a shift from a functional to a product structure
+ After several expansions and acquisitions that resulted in duplicate positions of several
administrative functions, U.S. Big Corp. decided to reorganize itself around customers rather
than around functions.
3. TECHNOLOGY
- Changes in work processes, methods, and equipment ,
- involve the introduction of New equipment, tools, or operating methods
- Automation
- Computerization
e.g :
- The installation of the new equipment at Fred Fryer's Donuts, Inc.,
- When supermarkets and other retailers use scanners that provide instant inventory information
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 4. PEOPLE
+ Organizational development (OD) : the term used to describe change methods that focus on
people and the nature and quality of interpersonal work relationships
e.g : If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work
relationships,

+ SENSITIVE TRAINING /a method of changing behavior through unstructured group interaction. An

increase in the diversity of his department has led to conflict and animosity
e.g : To reduce this and allow his team to become more productive, Lemuel has asked the Human
Resources department
+ TEAM BUILDING
+ SURVEY FEEDBACK
+ PROCESS CONSULTATION
+ INTERGROUP DEVELOPMENT : Organizational development technique involves changing the
attitudes, stereotypes, and perceptions that work groups have about each other
Resistant - barrier to change that slow down or stop the change:
- unwilling to change
- don’t understand the change: Ability
- Habits
e.g : When Joshua proposed cross-training his employees so absences and vacations would not pose such
a problem in productivity, his employees objected.
- Uncertainty / An individual is likely to resist change because of the feeling of uncertainty
- Fear of lost (e.g.: đổi office)
e.g : Shelly was the most senior employee in the department and knew just about everything about
everyone else's job. If all employees in the department were cross-trained, Shelly would no longer have an
advantage that brought with it special privileges. -> concern personal loss
- Belief (in what the company should be, tinh thần của công ty là gì: victoria secret, tinh thần ban đầu
là toward hot girl - designer không làm design cho fat ppl)

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e.g : Back2Work succeeded because it offered personalized assistance to its clients–people who had lost
jobs–beginning with having a live person answer every phone call. When management proposed an
automated answering service with a directory tree ("Press 1 for a company directory", for example), Cathy
was concerned the company would lose customers
- Stress
- Budget
- Company’s culture: the biggest impact
what is a company culture?
how can we learn about this culture as a new manager/employee?
Techniques for Reducing Resistance to Change?
● Education and communication : reducing resistance to change assumes that much of the resistance
lies in misinformation
e.g :
- Fred's Donuts is installing new equipment in its bakery. Many employees are fearful they will not be
able to operate it -> educate them
- In addition to face-to-face meetings, employers are encouraged to use social media to communicate
information about changes to their workforce.
● Participation : involves bringing individuals directly affected by the proposed change into the
decision-making process.
● Facilitation and support : reducing resistance to change includes employee counseling, therapy, new
skills training, or a short paid leave of absence
● Negotiation :involves exchanging something of value for an agreement to lessen the resistance to the
change effort
● Manipulation and co-optation :involves distorting facts to make the change appear more attractive
● Coercion
Change-Capable Organizations
- Link the present and the future. Think of work as more than an extension of the past; think about
future opportunities and issues and factor them into today’s decisions.
- Make learning a way of life. Change-friendly organizations excel at knowledge sharing and
management.
- Actively support and encourage day-to-day improvements and changes.
- Successful change can come from the small changes as well as the big ones.
- Ensure diverse teams. Diversity ensures that things won’t be done like they’ve always been done.
- Encourage mavericks. Because their ideas and approaches are outside the mainstream, mavericks
can help bring about radical change.

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 -> How can managers increase the likelihood of making change happen successfully : They should
give individual employees a role in the change process. encourages group-think
- Shelter breakthroughs. Change-friendly organizations have found ways to protect those
breakthrough ideas.
- Integrate technology. Use technology to implement changes.
- Build and deepen trust. People are more likely to support changes when the organization’s culture
is trusting and managers have credibility and integrity.
- Couple permanence with perpetual change. Because change is the only constant, companies
need to figure out how to protect their core strengths during times of change.
- Support an entrepreneurial mindset. Many younger employees bring a more entrepreneurial
mindset to organizations and can serve as catalysts for radical change.
Understanding the Situational Factors
–dramatic crisis occurs : is a favorable condition that will facilitate a cultural change
–leadership changes hands
–culture is weak
Changing Culture
(Cultural change is most likely to take place when there is a leadership change.)
strategy for managing cultural change.
- Set the tone through management behavior; top managers, particularly, need to be positive role
models.
- Create new stories, symbols, and rituals to replace those currently in use.
- Select, promote, and support employees who adopt the new values.
- Redesign socialization processes to align with the new values.
- To encourage acceptance of the new values, change the reward system.
- Replace unwritten norms with clearly specified expectations.
- Shake up current subcultures through job transfers, job rotation, and/or terminations.
- Work to get consensus through employee participation and creating a climate with a high level of
trust.
What Causes Stress?
Stress: the adverse reaction people have to excessive pressure placed on them from extraordinary
demands, constraints (prevents an individual from doing what he desires) , or opportunities
Stressors: factors that cause stress
- Task demands
- Role demands : are factors related to an employee's job and include the design of a person's job,
working conditions, and the physical work layout
- Role conflicts : creates expectations that may be hard to reconcile or satisfy.
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 - Role overload :
e.g : Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also
expected to supervise six workers and make sure they have all the materials they need to perform their
duties.
- Role ambiguity
e.g : Earnest's team works well when given "big picture" goals and allowed to develop ideas
without detailed explanations or guidance → accept
- Interpersonal demands
e.g : Darlene is just one of Cameron's "needy" employees who require constant feedback and reassurance.
Two other employees bicker constantly. Another one challenges everything Cameron says or does.
- Organization structure
- Organizational leadership
One way to lessen stress in a job is to increase the autonomy in the job.
Personal Factors
•Type A personality: people who have a chronic sense of urgency and an excessive competitive drive
•Type B personality: people who are relaxed and easygoing and accept change easily
Symptoms of Stress

How Can Stress Be Reduced?

● Realistic job preview during selection process
● Performance planning program, e.g. MBO
● Job redesign
● Addressing personal stress
–counseling : employees who want to talk to someone about their problems.
–time management programs : helps employees whose personal lives suffer from a lack of planning to sort
out their priorities.

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–wellness programs
Creativity Versus Innovation
● Creativity: the ability to combine ideas in a unique way or to make unusual associations between
ideas
● Innovation: taking creative ideas and turning them into useful products or work methods
Innovation Variables

e.g.
- When a member of her team offers an "off-the-wall" solution to a team problem, Martina has to
contend with what cultural variable : work and non-work support.
- An innovative culture is likely to have tolerance of conflict
- Edwin would like to increase the level of creativity and innovation in his department. One step he
could take would be to decrease external control.
- Structural variables is supportive of organizational innovation is high interunit communication
- Human Resource Variables
- Idea champion:
+ individual who actively and enthusiastically supports new ideas, builds support, overcomes
resistance, and ensures that innovations are implemented
+ Most idea champions have extremely high self-confidence. Design thinking can provide a
process for coming up with things that don't exist. Disruptive innovation describes
innovations in products, services, or processes that radically change an industry's
rules of the game. one of the following would be considered a disruptive innovation

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Disruptive Innovation Definition
- Disruptive innovation: innovations in products, services, or processes that radically change an
industry’s rules of the game
- (e.g.: internet): change for better and transform whole market and industries, some can change
how we live, change whole society and mankind
- Sustaining innovation: small and incremental changes in established products rather than dramatic
breakthroughs

CHAP 7
Two views of managerial impact on the success or failure of the organization:
● Omnipotent view: managers (The dominant view) are directly responsible for an organization’s
success or failure, consistent with the stereotypical picture of the take charge business
executive who can overcome any obstacle in carrying out the organization's objectives
(INTERNAL )
e.g :
- Wendell notices that the company's top executives share a belief that managers are directly
responsible for the organization's success or failure -> The dominant view
- Calvin's goals for the coming year include specific targets for increasing market share and quantity of
units shipped. If he succeeds, he will be handsomely rewarded. If he fails, he is likely to be replaced
- The soccer league in England is notorious for the number of team managers fired over the course of
a single season, which stands at no fewer than eight managers on average, owing to poor team form
and consequently, poor results
- Elmo Research & Development has been going through a rough patch lately. Turnover has
been high and employee morale is at an all-time low. Though employees and competitors hold
management responsible for the decline, the CEO does not let the managers go or change the
management style -> The CEO holds the view that managers have only a limited role in organization
success or failure => OMNIPINIENT
● Symbolic view: much of an organization’s success or failure is due to EXTERNAL forces
outside managers’ control
example :
- Wendell interviews many middle-level managers and discovers that these individuals believe that
external factors constrain managers' influence over outcomes.
- Control and influence by developing plans and making decisions
- managers have a LIMITED effect on substantive organizational outcomes.

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Constraints on Managerial Discretion

- Internal constraints that influence managers' decisions and actions come from the CULTURE
- The citizens of Abolonia believe no top executive should ever earn more than 40 times the
average wage of the company's employees -> how societal attitudes in the economic context create
constraints on the decisions managers make
The constraints and challenges facing managers in today's external environment
- Jobs and Employment: the impact of external factors on jobs and employment is one of the most
powerful constraints mangers face
e.g :
- The citizens of Abolonia believe no top executive should ever earn more than 40 times the average
wage of the company's employees -> how societal attitudes in the economic context create
constraints on the decisions managers make
- Faced with incomplete information about the future national economic conditions, many employers
have eschewed the tradition of hiring full-time, permanent employees in favor of a flexible work
arrangement that includes freelancers and temporary workers
- cultural constraint affects the decisions managers in a company make -> the extent to which
employees are encouraged to participate on problem-solving teams
Assessing Environmental Uncertainty
- Two dimensions of Environmental uncertainty: the degree of change and complexity in an
organization’s environment
+ Change: stable to dynamic ( frequently )
+ Complexity: simple to complex

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e.g :
- DYNAMIC
+ If the components of an organization's environment change frequently
+ Competitors move into and out of the industry frequently.
- STABLE :
+ an organization's environment exhibit minimal change, such an environment
+ Home prices in the area in which your real estate office operates have increased only
gradually for the past several years. However, you have noticed that demand for housing in
the area usually spikes in summer. (+ simple)
- MAKE A BUSINESS MORE UNCERTAIN :
+ D&B Designs has been in the landscape design business in Pleasantville for the past twenty
years. As the "first mover" in the market, the company has built a strong market share over the
years and is the best-known firm in the area. The company strength increased steadily, and
now stands at fifty employees. -> Zoning laws in the area change as each new city council
comes into power
+ Moreno's Pub Burgers has enjoyed its status as the Numero Uno hamburger restaurant in
Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred
by children rather than adults -> Because of the growth of Pleasantville's population, more
hamburger chains build facilities in Pleasantville.
- HIGHEST LEVEL
+ Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly
changing. -> a dynamic and complex environment
- LOWEST LEVEL
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 + Maria's is still the only restaurant in a small town. She took it over from her mother and still
uses the same equipment
Managing Stakeholder Relationship
- Stakeholders: any constituencies in the organization’s environment that are affected by an
organization’s decisions and actions -> is used to collectively refer to any constituencies in an
organization's environment that are affected by its decisions and actions
+ affected by the organization's decisions and actions.
+ BUT Managers have greater influence over organizational performance when relationships
with the stakeholders are obvious and secure.

- Customer: an important constituent of a small-town bake shop selling desserts and coffee -> the
bakery's regular customers
Benefits of Good Stakeholder Relationships
+ Improved predictability of environmental changes
+ Increased successful innovations
+ Increased trust among stakeholders
+ Greater organizational flexibility to reduce the impact of change
e.g :
+ People's beliefs about conditions of economic inequality illustrate how societal attitudes can constrain
managers' decisions and actions.
+A dynamic and simple environment is characterized by the greatest level of environmental uncertainty
Organizational Culture
- Organizational culture: the shared values, principles, traditions, and ways of doing things that
influence the way organizational members act and that distinguish the organization from other
organizations

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 -
e.g :
+ the shared values and practices of the firm
- If you were talking to Todd, an average person, and asked him what the term culture meant,
- A person desiring to understand the culture of an organization
- Even though individuals may have different backgrounds or work at different organizational levels,
they tend to describe the organization's culture in similar terms
- An organization's culture can be perpetuated by selecting candidates for employment who share the
organization's values
7 dimension of organization culture
1. attention to details: how much does your company value the small thing in the product/service (loa
macbook mượt, không bị sần, gap giữa màn hình và vỏ nhỏ)
2. outcome orientation: how much emphasis on work (thưởng dựa trên doanh số)
3. people orientation: company care about your wellbeing, growth and development (goggle - mời
expert give a speech to employee - nói chuyện người khủng bố, vĩ mô, cuộc sống) (cty phục vụ đồ
ăn, entertainment)
- ngoài ra spiritual → Workplace spirituality has become important in the contemporary workplace ->
gives employees a sense of purpose because emphasis on controlling emotions and feelings
e.g : Stephen notices that management is very concerned with the effects of outcomes on
employees in the organization.
- spiritual :
+ a charitable non-profit that allows its employees to express opinions and emotions openly
+ incompatibility between profits and spirituality -> critiscm of sprititual
4. team orientation: Does your work can be done in team than individual
37
 5. aggresiveness: đặt competition cho employee
6. stability : only accept new idea when necessary
7. risk taking: thường là capture venture list: cty đầu tư khởi nghiệp
How employee learn new culture
1. Read STORY: founding story - founder story - rumour and gossip: đọc trước khi vào công ty - quan
trọng cho interview ( story typically contain narratives about significant events or people in the
organization. → help anchor the present in the past, provide explanations and legitimacy for
current practices, exemplify what is important to the organization, and provide compelling
pictures of an organization's goals. )
e.g : The day before Disney World in Florida was to open, the sod around one of the resort hotels had not
been laid. CEO Michael Eisner took off his suit coat and tie, rolled up his sleeves, and began laying sod. He
instructed his managers to do likewise but many objected, saying they did
not know how to lay sod. "It's not hard, boys," said Eisner. "The green side goes up.
2. Observe RITUAL: repetitive activity to achieve a special purpose or meaning (Japan, korea) (refers
to repetitive sequences of activities that express and reinforce the important values and goals
of the organization )
e.g : Every customer who buys a new car at Eby Ford and Lincoln rings a gong and is rewarded with
applause from the entire sales staff
3. Examining ARTIFACT: physical thing: souvenir, uniform, trophy, nhà gỗ office
SYMBOL: non physical: logo, slogan, color, font, mascot, music, smell, taste, feeling
thing: things that contain meaning - represent
e.g : material artifact or symbol : The offices of upper management are carpeted; the offices of
administrative personnel have tile floors.
4. LANGUAGE: special way that company use the language (vào cửa hàng ng ta chào - cách ng ta gửi
email) -> often act(s) as a common denominator that bonds an organization's members
How to create a innovative culture - cách tự sinh ra innovation môi ngày
- Accept ambiguity: plan không kĩ, chấp nhận rủi ro, idea hay vẫn làm
- Tolerate impractical: if you know that không khả thi, nhưng vẫn nhẹ nhàng
- Keep control to minimum: control ít, chỉ control vào những cái khả thi
- Tolerate conflict: cho nhân viên debate
- Focus than ends (the result) rather than means (the way, method to do): focus vào outcome
- Positive feedback:
- Empower (trao quyền) leadership:
. Let employee participate in decision making or you give them complete decision making (làm
đi tiền đây)
. Tell them what they are doing is important

38
 + e.g. Karl and his top managers set goals for the organization, then each department sets
supporting goals with their employees, who then set their personal performance goals. These
non-managerial employees are allowed to pursue their goals, within certain guidelines, using
their best judgement, knowledge, and skills.
+ Bernard's company knows it must constantly create new products to stay ahead of the
+ competition -> resolution of employee issues based on personal interest
+ ABC Company wanted to create an innovative culture -> Allow employees time for the
generation of ideas.
STRONG CULTURE VS WEAK CULTURE

CHAPTER 8-9: Strategic planning

Planning:
- involves defining the organization's goals, establishing strategies for achieving those goals, and
developing plans to integrate and coordinate work activities
- The effect of planning -> forced to anticipate and respond to change
- plan can help: inefficiencies become obvious.
- Planning helps managers eliminate uncertainty and insulates organizations from change
- plans - that outline how results are to be achieved
- goal - desired outcome
+ Using a single goal such as profit may result in unethical behaviors by employees
+ 2 types: strategic (eg: accelerating growth through focused execution - To be a champion for
free speech and for the development of the community - top executive) - financial (eg: sales
equal to or greater than $100 per square foot per day)
+ stated goal: ​are official statements tell stakeholders - publicly say: ​"to be a champion for free
speech and for the development of the community." - is committed to reducing its
environmental footprint
+ real goal: organizational members' actions
- Formal planning is associated with positive financial results
+ fail thì because: External forces constrain managers' options.
39
Know what to prioritize:
which plan has to come first/second/…, which plan has to be done carefully/ ignore => know how to phân
biệt các loại plan

importance low: if i not done this → nothing happen

breadth low: it just affected you
→ Càng gần đường chéo và càng cao thì càng quan trọng
Distinguish different type of plan

40
Strategic plan:
- top executive
Operational plan:
- encompass only the production or the sales goals of a company
- To invoice merchandise worth $200,000, every month, for the next three years
- low manager
Directional plan:
- Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves
room for interpretation
- Todd Miller, CEO of Miller's Grocery, has determined that all stores should be well maintained both
inside and out.
- When uncertainty is high and managers must be flexible in order to respond to unexpected changes,
directional plans are preferable
Short (1 year) and long term (above 3 years) plan: environmental uncertainty - decline in the number of
years
Specific plan:
- plans is clearly defined
- When uncertainty is high, plans should be specific and flexible.
directional plans: uncertainty is high
Single use: a plan developed to install a new computer network
Standing plan:
- an ongoing plan that provides guidance for activities performed repeatedly
- a fire escape policy establishing practices to be followed in an emergency
Strategic management: what managers do to develop the organization's strategies, helps coordinate the
efforts of all department and functional areas of an organization ( basic management functions-planning,
organizing, leading, and controlling ) => reason important: make a difference in how well an organization
performs; a positive relationship between strategic planning and performance; managers in organizations
face continually changing situations → use to examine relevant factors and decide what actions to take; and
organizations are complex and diverse → work together toward achieving goals.
Strategy: the plans for how the organization will do what it’s in business to do, how it will compete
successfully, and how it will attract and satisfy its customers in order to achieve its goals → s​​uper important
=> every plan (lower point), action will reflect the strategy ( is completely directional and long term (5-10
years )
e.g:
- The CEO is meeting with his top managers to determine how best to compete successfully in the
company's market.

41
- The top managers of the corporation are meeting to discuss how they will compete in their chosen markets
and how they will attract and satisfy customers
Business model: how a company is going to make money, customers value the company is providing
How we can make a strategy:
1. What type of strategy
- types of company:
+ corporate: work in many industry: to decide which industry to jump into or withdraw from =>
corporate strategy - V&M mention about industry(which industry to jump in)
+ “normal” company (company in corporate => sbu): 1 specific industry: to become the best in that
industry => compete => need competitive strategy - V&M mentioned in product
- 3 types of strategies: Strategy go along with type of company
2. Vision/mission: mention in industry (corporate) và product (company)
- vision: what you want to become, create the image abt the company (ambitious but achievable)
- mission: the organization is in business to do, what you do to achieve your vision (take directional
action) - broad statement of an organization's purpose that provides an overall guide to what
organizational members think is important.
e.g.
Vision of PNJ
We aim to become the leading jewelry fashion brand, with core attributes being Creativity, Fineness, and
Trustworth.
Mission of PNJ
Our mission is always to enhance customers’ satisfaction, by diversifying products and services at highest
quality and reasonable price, by advancing management and manufacturing system, and improving
craftsmen’s skills.
=> from vision/mission → analyze → strategic goals
reduce emission giảm CO2 30% in 2030
3. Internal & external analysis:
4. Internal & external analysis:
thấy được sự khác giữa Corp và Competitive

Strategy EXTERNAL INTERNAL

- They should be ready to change directions if
environmental conditions warrant
- A manager's analysis of the external
environment can be improved by
environmental scanning, which involves
screening information to detect emerging

42
 trends.
- Competitor intelligence - gathering
information about competitors that allows
managers to anticipate competitors' actions
rather than merely react to them

Corporate Def: know what the competition is doing BCG: in exist industry, which one
PESTLE: Define potential industry to jump into should develop or withdraw,
e.g: analyzing its labor supply; based on profit và growth
Vin mở vinschool potential
- Political: mở trường có đụng chạm chính trị k e.g: a patent for a special design
- Economic: mức sống có trả đc fee hay k ( feature, change their method of
+ If mortgage interest rates increase providing customer service,
+ The firm's customers' disposable income falls in evaluating an organization's
the range of $25,000-$40,000 intangible assets
+ Suppose the government of Abolonia imposed a star: đã có nhiều tiền, nhưng
national sales tax on its citizens that reduced đầu tư vô thì cho thêm
their disposable income. cash cow: đã có tiền, nhưng đầu
- Social: PHHS nghĩ j về trg tư tư nữa thì kh thêm
+ The Metropolis News has experienced a question: chưa/ko có tiền,
decline in the number of subscriptions to its nhưng tiềm năng đầu tư thì có
printed newspaper over the last five years. It tiền (xe điện)
seems people prefer news feeds sent to their dog: chưa có tiền, đầu tư vô thì
smartphones rather than a printed paper cũng không có có tiền
delivered to their homes
+ Thanks to iTunes and similar websites, sales
of compact discs have declined severely,
forcing entertainers to seek alternative
revenue streams.
- Technological: Technology needed
- Legal: xin giấy phép , luật pháp có khó kh
- Environmental: ngành công nghiệp có khói

Compe- 5 forces Core competencies (have to

titive: - Who are my current competitors prove)
what makes - Who will be the new competitors/ entrants in - what u doing better than your
my future competition

43
company - substitutes: new product that make u throw your
compete to product away
others - supplier: nguyên liệu, nhân lực lấy từ đâu, can
you find the supplier that higher quality and
cheaper price than your competitors ?
- buyer: are they difficult, bargain compete with
competitor in how to satisfy your customer
- can u build career from it
e.g: ( nhét tạm cho đỡ chật nha )
corporate có SBU ptich BCG và
có thể ptich 5 forces để xem có
cạnh tranh k, growth potential thì
ptich core competencies.
bitis product lines → xem như 1
sbu: ptich BCG để xem cái nào
nên bỏ đi, ptich PESTLE để xem
nên phát triển product line ntn

● xài chéo được nha mí bạn =))

5. Write goals

- Goal setting:

Type of Traditional (top down) MBO (bottom up)

goal - goals set by top managers - MBO: process of setting mutually-agreed upon
flow down through the goals and using those goals to evaluate
organization and become employee performance
subgoals for each
organizational area.
- Top managers know what is
best because they see the
"big picture."
- Managers at each level define
goals and apply their own
Ex: Bonnie is discussing with her subordinate, Julie,
interpretations and biases as
the types of projects Julie would like to work on in the
they make them more specific
coming year. They are setting goals and determining
- This approach makes
what success would look like
managerial planning thorough,
systematic, and coordinated.
Bill has been working his plan for about three
- effective when: when plans
months. He is now discussing his progress with Jim,
are developed that can
his supervisor
actually be used by
organizational members
- Apart from being used to ensure that
- means-ends chain:integrated

44
 network of goals in which the
accomplishment of goals at
one level makes possible the
achievement of the goals at
the next level. ( kết quả thằng
ở dưới là goal ở trên) (ends
của thằng dứoi là means của
thằng ở trên)
-
employees are doing what they are supposed
to be doing, goals are used as a motivating
tool for employees.
In the management by objectives (MBO) process of
goal setting, goals are ambiguous, giving managers
and employees more flexibility to respond to
changing conditions. (F)

top manager CEO → Strategy/ all goals → involve everyone ← empower

corporate goal (CEO, middle, line cùng họp)
lower - middle → Functional goal
Line → operational goal (daily,
weekly goal) ← employee dựa trên
cái này

Problem - Transition of strategic goals into - time wasting

departmental, team, and individual
goals is difficult.
- A) clarity is lost as the goals make
their way down from the top of the
organization to lower levels
- can be therapy power
- soft power can leading the meeting
- conflict or silence

-
thấy được sự khác giữa Corp và Competitiveconcentration: focuses on its primary line of business and
increases the number of products offered or markets served in this primary business. ( ex: Emily's Bakery's
customers have asked her to open a second location in a neighboring town offering the same menu as the
original location )
- backward vertical: the organization becomes its own supplier so it can control its inputs ( ex:
Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these
factories )
- forward vertical: the organization gains control of its outputs by becoming its own distributor.
- horizontal integration: a company grows by combining with competitors. ( a company grows by
combining with competitors. )
45
 - Related diversification: takes place when a company combines with other companies in different, but
associated, industries.
- unrelated diversification: when a company combines with firms in different and dissimilar industries,
- Mixing:
We do bottom up but control the participants, what they can speak. Hỏi cụ thể (3 việc blah blah, theo bạn,
em muốn làm cái gì vào giờ này ngày nào)
CEO have the goal, strategy already and send form to them to get the feedback
- Is the goal good? SMART
Specific
Measurable: hết giai đoạn thì ko đo được (cái khó đo thì tự tạo ra thang đo 1-5)
Achievable
Relevant: relevant to your vision, mission, analysis
Time: must have timeline to achieve (deadline)

6. Implement and evaluate: session sau

self study: writing goals types:

Corp. strategy: determines what businesses a company is in or wants to be in, and what it wants to do with
those businesses, growth (BCG), stability, renewal (retrench: cut cost; turnaround: restructure).
Organizations grow by using strategies of concentration, integration, or diversification.
+ stability: an organization continues serving the same clients by offering the same product or service,
maintaining market share, and sustaining the organization's current business operations ( : supplying
frames to the mobile home industry for many years )
Competitive:

Cost leadership (price) Differentiation (being special,

cost mass: sell for everyone, lowest unique)

46
 price as possible (giảm unique mass: sell for everyone, special
profit/manufacturing cost) product
Mcdonald's

Cost focus Differentiation focus

cost niche: not serve everyone, serve unique niche: serve certain ppl, special
certain ppl, lowest possible. product
Starbuck

- Renewal: declining performance through retrenchment and turnaround strategies

- Retrenchment: deal with minor performance problems. It helps an organization stabilize operations,
revitalize organizational resources and capabilities, and prepare to compete once again
6 steps in the strategic management process
Step 1: Identify the Organization's Current Mission, Goals, and Strategies - Every organization needs a
mission-a statement of its purpose. Defining the mission forces managers to identify what it's in business to
do. These statements provide clues to what these organizations see as its purpose.
Step 2: Do an External Analysis - Managers do an external analysis so they know, for instance, what the
competition is doing, what pending legislation might affect the organization, or what the labor supply is like
in locations where it operates. In an external analysis, managers should examine the economic,
demographic, political/legal, sociocultural, technological, and global components to see the trends and
changes.
Step 3: Do an Internal Analysis - This provides important information about an organization's specific
resources and capabilities. After completing an internal analysis, managers should be able to identify
organizational strengths and weaknesses. The combined external and internal analyses are called the
SWOT analysis, which is an analysis of the organization'' strengths, weaknesses, opportunities, and threats.
Step 4: Formulate Strategies - The three main types of strategies managers will formulate include
corporate, competitive, and functional.
Step 5: Implement Strategies - Once strategies are formulated, they must be implemented. No matter how
effectively an organization has planned its strategies, performance will suffer if the strategies are not
implemented properly.
Step 6: Evaluate Results - The final step in the strategic management process is evaluating results.

47
 CHAPTER 10: Entrepreneur

I. Work options

- Self-employment: who work for profit or fees in their own business, profession, trade, or farm (e.g.
Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting
Services." Eventually Rob would like to grow his business to include partners and bookkeepers) ⇒
no innovation
- Entrepreneurship: take advantage of opportunities to create new product or services, or change
existing products. ⇒ innovation (e.g. Annabel operates a local hardware store that she inherited

48
 from her parents. When she took over, she updated the point-of-sale equipment and installed a
customer database) ⇒ “more likely than large businesses to generate patentable ideas”
- How to know opportunities? Examining the state of the economy, the regulatory situation, social
trends, and the local labor supply ⇒ also find competitive advantages
- Sources of opportunities:
a. The unexpected. Ideas can be found in the unexpected. When situations and events are
unanticipated, opportunities can be found.
b. The incongruous. When something is inconsistent and incompatible with the way it appears when
things are not the way they ought to be–opportunities are present.
c. The process need. Small pockets of opportunity appear along the way as researchers and technicians
continue to work for the monumental breakthrough.
d. Industry and market structures. When changes in technology change the structure of an industry and
market, existing firms can become obsolete if they are not attuned to the changes or are unwilling to
change. Even changes in social values and consumer tastes can shift the structures of industries and
markets. These markets and industries become open targets for nimble and smart entrepreneurs.
e. Demographics. Changes in demographics influence industries and markets by altering the types and
quantities of products and services desired and customers' buying power.
f. Changes in perception. When changes in perception take place, the facts do not vary but their
meanings do. Changes in perception lead to changes in what people value, what they believe in, and
what they care about. Changes in these attitudes and values create potential market opportunities for
alert entrepreneurs.
g. New knowledge. New knowledge is a significant source of entrepreneurial opportunity.
Entrepreneurs must be able to do something with that knowledge and to protect important proprietary
information from competitors.
II. Innovate:
process of changing, experimenting, transforming, and revolutionizing
- New product/service
- New process: Book car (grab/taxi truyền thống) (đặt app/gọi hotline) (diff in price: biết gía trước/ đợi tới
nơi mới biết)

49
III. Steps to run entrepreneurial process
1. External analysis
Exploring the entrepreneurial context includes scanning the economic, political/legal, social, and
work environment.

⇒ find unsolved problem → jump into to solve that create innovation

2. Solution:
Internal analysis - can I solve the problem?
e.g. Before launching his new venture, Doyle is studying the potential competitors for his new
product. He will want to find an answer to what competitive advantage do they have? What are their
core competencies?
Why? Because competitive advantage is a necessary ingredient for an entrepreneurial venture's
long-term
success and survival.
3. Feasibility analysis: can my idea become a company? (quan trọng nhất)
- 5 forces analysis: ai supplier, ai competitor,..

50
- finance - most of time là most important

- 1 phần profit: dividend

- Investor có 2 kiểu:
- angel investor: can be a person/company: use their own money:
help you more than business
- venture capitalist: use money from other investors -> invest
somewhere -> get profit rồi chia lại cho các investor
- legal form: phân biệt based on liability (responsibility to pay) and tax

51
 + proprietorship/ partnership
liability taken by you: you are that business, there’s no difference in legal term between you and
your business (bill điện you trả, lương you trả, nợ cty you trả luôn)
tax trả bằng personal tax (earning từ company)
e.g. Gaston knows he cannot be physically present at his new restaurant every hour it is open, so he has
decided to share management responsibility and profits equally with two others. ⇒ partnership
+ corporation
liability taken by company: you and ur comp are diff - trả tiền điện là cty tra, chủ nợ find company
tax (2 time taxed): thuế doanh nghiệp, earning from company get PIT (thuế thu nhập cá nhân)
+ LLC - liability taken by company:
tax giống partnership: earning của bạn + profit -> đánh vào thuế thu nhập cá nhân

52
e.g. Geneva needs additional capital to launch her business but does not want to share management
responsibility with partners. Neither does she want to pay the high taxes often assessed on businesses
- HR - marketing - tech - rent -…
4. Plan = strategy present to investor : finance quan trọng
- làm bảng chi tiêu trong business plan: (quý 1,2,3 năm 2019 - quý 123 năm 2020)
- Business plan:
a. The executive summary summarizes key points about the venture, including a brief mission statement;
primary goals; a brief history of the venture; key people involved; the nature of the
business; concise product or service descriptions; brief explanations of the market niche, competitors, and
competitive advantage; proposed strategies, and selected key financial
information. In essence, it is a pared-down version of the entire plan.
b. The analysis of the opportunity section includes the demographics of the target market, industry trends,
and identification and evaluation of competitors.
c. The analysis of the context describes broad external changes and trends taking place in the economic,
political-legal, technological, and global environments.
d. The description of the business describes how the venture will be organized, launched, and managed. It
includes a thorough description of the mission statement; a description of the desired
organizational culture; marketing plans including overall marketing strategy, pricing, sales tactics,
service-warranty policies, and advertising and promotion tactics; product development plans; operational
plans; human resources plans; composition of the board of directors; and an overall schedule and
timetable of events.
e. The financial data and projection section includes financial plans for the first three years, projected
income statements, pro forma cash flow analysis, pro forma balance sheets, breakeven
analysis, and cost controls. It also describes expected costs for major equipment of capital purchases and
available collateral. Notes should explain any apparent contradictions.
f. The final section contains such supporting documentation as charts, graphs, tables, photos, or other
visual tools to illustrate details in other sections.
5. Raise fund
6. Start → manage: growth: phải grow (expand market share, if not thì sẽ bị copy)
- thấy vượt 20% of customers -> grow as fast as possible
- Growth distinguish an entrepreneurial venture

7. Exit: làm sao làm phải ethical, make sure it will be least affected to employee

- Sell parts or all of company (giữ dividend: giữ cổ tức)

- Transfer ownership
- Shut down and liquidate: thanh toán nợ (bán tài sản, thanh lý)

53
 - Harvesting: exiting a venture when an entrepreneur hopes to capitalize financially on the investment
in the venture
e.g. Ned has built his entrepreneurial venture into a successful business. Part of his original plan was
to build the business then sell it to another company that could take it to the next level of success.

CHAPTER 18: Control

I. REASON
To ensure and enhance the performance (everything done): productivity(efficiency) and
effectiveness
- Productivity (efficiency): how much work you can have done in a limit time/resource (em làm
10 job đó trong bao lâu) - produce the same amount of product with fewer personnel
- Effectiveness: how many goal you can achieve - term and condition on ur contract (em hoàn
thành 10 job) - achieves her departmental goals
eg: If Fiona accomplishes her projects with high-quality results, but takes more time than other managers in
the process, as a manager she is effective but no efficiency.
If your team quickly painted the wall but discovered afterward it was the wrong wall, your team would be
efficient but ineffective
II. HOW
Have 2 types: control ppl through plan and structure

54
Balanced scorecard: visual tool (like biểu đồ tròn) help you measure and report performance of plan or
company : easier to have an overview of performance.
Scheduling & Value chain management
PERT ANALYSIS: hiệu quả cho job based on project (chạy theo thời gian start and due): give
employee only the ideal time to avoid delay

slack time (not recommend; rcm tính potentially delay time): delay without affecting whole plan →
prioritize task có slack time ít
critical path: longest (in term of time not number of task) chain of task : have to near the ideal time

Value chain management

1. Value: (it’s not price, price chỉ đại diện cho value) utility (công dụng) + customer willing to pay
+ need + want
perception:
- perceived needs
- perceived desirability
(e.g.: you’re sick, high need but if you hate medicine, low desirability)

55
 2. Value chain: the factor that contribute to increase customers’ perception

3. Value chain management: select which element in value chain to invest in => to maximize the
perception with at little investment as possible
● price = cost (primary + support) + profit
● cách tính profit:
- so sánh với competitor
- marketing: xem customer willing to pay max là bao nhiêu (include the requirement)
+ charge max: when you are the market leader/ when customers urgent
Supply chain: what make my company survive in long run (long term, innovation)
Value chain: how to increase customer perception (ng ta thích gì), operation, tech
e.g:
sản xuất xe hơi:
+ supply chain: invest in inbound logistic (ingredient)
media company (showbiz)
+ invest in mkt&sale
+ human resource
Need to balance supply (good for company) and value chain (good for customer).
difference btw value and supply:
+ Value: focus on customer perception
+ Supply: focus on product, innovation, produce process
investment banking + consulting : best earning

56
 CHAPTER 11, 12: Organizing
(not a win-win situation)
Trade - offs: It’s up to you

(1)

Pros Cons

- nhanh chóng - unfiltered: include irrelevant

- avoid misunderstanding (tam sao thất information
bản, đẹp khoe xấu che)

(2): ngược lại với (1)

(3)

Pros Cons

- nhanh hơn (2) - spend more money on new function

- filtered information - vấn đề vượt cấp

bài học cột sống: you can't win in organizing, u just can choose to do cái tệ mà bạn handle được → all
about trade offs, need to analyze những cái tệ rồi chọn ra cái tệ nào handle được.
Organization design:
Organizational structure: Michelle is very concerned about the formal framework by which job tasks are
divided, grouped, and coordinated within her unit

57
cross-functional team: An organization brings together members from various departments such as
marketing, accounting, human resources, and finance to form a team.
- Marcus was asked to represent the cardiac unit as part of a Total Quality Management (TQM)
initiative that is aimed at improving the overall quality of care at his hospital. Other departments, such
as orthopedics, neurology, oncology, and pediatrics also have representatives on this team. The type
of conflicts that support group goals and improve performance.
- Eric works with a team that includes production workers as well as marketing specialists to design
the latest products the company was planning to offer
6 organizing principles (principle not rule, principle is the direction aviation for u, but rule u need to
follow)
Experstise + Power authority = your view of organizing

Expertise: your view on philosophy -> do you think a salesman need to know abt marketing

1. Specialization:
- divide work into specific tasks and activities (công ty nhỏ thì work không phân ra→ 1 mình làm hết,
but when it grow → have to divide into jobs)
- In the early 20th century, automobiles were made one at a time by craftsmen who could perform
every operation necessary to build the car. Henry Ford decided to limit the number of tasks each
worker performed so each person could become expert in his position

Pros Cons
- Increase productivity (efficiency) ← - Boring → demotivated
Practice make perfect - No flexibility
- Easily troubleshooting (lúc bị fail thì - Limit growth of employee and
biết fail ở đâu) manager (can’t promote in higher

58
 - Tim-saving in training level)
- Bảo mật cao, avoid copy - Tốn tiền thuê rất nhiều nhân công

2. Departmentalization:
- grouping khác unspecialization: once you have create your specialization, which one of them you
want to sit together?
- before grouping think about: why or why not group (khi group lại kh chỉ về function, mà còn
geography..)
- functional: At Chemetron, all the accounting people share one large work area; all the quality control
people are housed in a large office next to the production floor; and maintenance has its own space
at the back of the building/geographical/product/process/customers
e.g. bạn muốn 2 đứa sales và mkt ngồi chung để collab

Pro Cons
- Better communication → maybe have - Hard to evaluate performance → if fail
networking or success không biết thưởng hay
phạt ai
- Conflict
- Head of department need to know
both function → hard to find (biggest

59
 problem)

Power authority: you think your manager will lead 30 ppl or 2 only, có được vượt cấp khum?

3. Chain of command
- how many level of management do you want? nhiều tầng thì chain dài
- unity of command (rule): 1 higher level can have many lower level whether direct or indirect
but 1 lower level can have only 1 direct higher level
e.g: Melanie has noticed that everyone is very concerned about the line of authority within the hospital

60
Chain of command dài

Pros Cons
- Filtered information - Distort the information
- Boss giải quyết được là giải quyết liền - Tốn tiền thuê manager
- Time consuming (báo cáo + họp)

e.g: Wilson is offered a chance to help direct the efforts of some employees assigned to his work group
4. Span of control:
- how many direct lower level does 1 person have?

4 đứa trên, 1 trong 4 adjust thì 3 cái còn lại very likely sẽ sẽ adjust theo => Chia để trị
61
 - the wider the large span of control, the more cost efficient
5. Centralization:
- how much decision making u want to push up?

Decentralised (employment empower): chuyện quan trọng cũng có thể để lower level quyết định
Centralised: chuyện lặt vặt cũng đưa higher level (e.g. CEO quyết định chuyện mua uniform)
Pros:
1. centrailize khi có change lớn xảy ra (restructure or chuyển office)
2. muốn follow đúng hướng long-term strategy + change management (e.g. muốn green → boss phải
ra quyết định chứ kh hỏi nhân viên)
3. tránh thất thoát tiền
Cons: employee and lower level thấy ngột ngạt
- How you control your money can show you are decentralised or centralised:

6. Formalization:
- how much do you remove all decision making and replace it with procedure (push-up organizing over
planning)
62
e.g. khách refund đồ

Pros Cons
- dễ quản lí (avoid human error) => - limit growth
increase effectiveness - boring → demotivated
- create culture, ritual -> build branding,
others look ur company professional
=> increase productivity

Template:

Traditional: vẽ sơ Flexible: you never do the same job

đồ cây weakness: if ur company big, you can’t control
weakness: nếu
công ty expand
đến mức nào đó
thì sẽ cồng kềnh
view of conflict
management
argues that

63
 conflicts must be
avoided as it
indicates a
problem within
the group

team - based project - based Matrix

specialize, kéo people → work work → people
dài chain, enlarge
span as much as
necessary

break: unity of
command <- bc you
chọn job rồi chọn người need to report to 2
bỏ vào job đó boss at the same time
chọn team rồi assign job
cho team đó

MIX traditional and flexible: dùng sơ đồ cây phía trên, dùng flexible ở phía dưới

Basic diff: cách thực hiện mục tiêu, communicate to other, bonding diff

64
 Team Group

has shared leadership roles, require
coordination , collabration and
communication, 1 đứa sai ảnh hưởng mấy
đứa còn lại (1 đứa soạn script, 1 đứa
present, 1 đứa slide) bonding,
communicating better → nếu 1 đứa fail là fail divide task that indiv can do independently,
hết
interact primarily to share information and to
make decisions to help each member do his
or her job more efficiently and effectively,
has no need or opportunity to engage in
collective work that requires joint effort
indiv responsibility rất cao, làm độc lập sau
đó ghép lại (mày làm section 1, nó làm
section 2) → nếu fail 1 nhưng vẫn còn 2, kh
gây ảnh hưởng nhiều đến cả nhóm

when: khi công việc phức tạp mà 1 người k when: công việc k đòi hỏi specialisation,
gánh được, specialisation cao, require thành viên đều giỏi, chịu làm và có work
strong and coordinate leader, and require ethic.
centralise.

Problem-solving teams are teams from the same department or functional area involved in efforts to
improve work activities, though they are rarely given the authority to implement any of their suggested
actions

CHAP 12
Forming: the first stage of group development in which people join the group and then de ne the group’s
purpose, structure, and leadership
Storming: the second stage of group development, characterized by intragroup conflict
Norming: the third stage of group development, characterized by close relationships and cohesiveness
Performing: the fourth stage of group development when the group is fully functional and works on group
task
Adjourning: the final stage of group development for temporary groups during which group members are
concerned with wrapping up activities rather than task performance
Compromising: typical interaction between a buyer and seller of a car in which offers are made and
countered

CHAPTER 13: overview of HR (abt reality)

- not only the job of HR but also the responsibility of general manager
- Most likely is formalized.
65
The importance of human resource management and the human resource management process.
*why human resource management (HRM) is important to organizational success:
HRM is an important task that involves having the right number of the right people in the right place at the
right time. A major HRM challenge for managers is ensuring that their company has a high-quality
workforce. Getting and keeping competent and talented employees is critical to the success of every
organization. HRM is important for three main reasons:
● Human resource management (HRM) can be a significant source of competitive advantage (The
Human Capital Index, a comprehensive study of over 2,000 global firms has concluded that
people-oriented HR gives an organization an edge by creating superior shareholder value)
● HRM is an important part of organizational strategies (The HR function is no longer considered only
an administrative or support function; it enables the business strategy)
● The way organizations treat their people can significantly impact performance (Improving work
practices could increase market share by as much as 30 percent. High-performance work practices
increase an organization's ability to efficiently adapt to changing and challenging markets. Explain
high-performance work practices and list a few examples of such practices.)
High-Performance Work Practices
- work practices that lead to both high individual + high organizational performance.
- It encourages extensive employee involvement and greater employee control on decision making.
- High-performance work practices involve a commitment by management to improve the knowledge, skills
+ abilities of the organization's employees, increasing employee motivation, & enhancing the retention of
quality employees
e.g:

- Case:
● John received a raise as a result of his last performance appraisal. He is active on three teams and is
given authority to make decisions regarding his job responsibilities. John's employer is using

66
 ● Steve introduces in-house technical training programs for employees, as well as a provision to
reimburse the tuition fees for employees who take college courses that benefit both the employee
and the organization. Steve is using…to motivate and retain employees.
HRM Process

The human resource management process and the external

influences that might affect that process
-During an economic recession→ more qualified candidates are available to fill fewer open positions
-The entire HRM process is influenced by the external environment. Those factors most directly influencing
it include the economy, employee labor unions, governmental laws and regulations, and demographic
trends.
-Labor union: an organization that represents workers and seeks to protect their interests through collective
bargaining
-Affirmative action: Organizational programs that enhance the status of members of protected groups
(ensure that decisions and practices enhance the employment, upgrading, and retention of members from
protected groups such as minorities and females.)
-the government legislations related to human resource management in different countries? →Canadian
laws allow discrimination on the basis of language in all parts of the country except Quebec.
-The Mexican Federal Labor Law includes controls on → the outsourcing of jobs to other countries

Law or Ruling Description

Equal Pay Act Prohibits pay differences for equal work based on
gender

Civil Rights Act, Title VII Prohibits discrimination based on race, color,
religion, national origin, or gender

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 Age Discrimination in Prohibits discrimination against employees 40 years
Employment Act and older

Vocational Rehabilitation Act Prohibits discrimination on the basis of physical or

mental disabilities

Americans with Disabilities Prohibits discrimination against individuals who

Act have disabilities or chronic illnesses; also requires
reasonable accommodations for these individuals

Worker Adjustment and Requires employers with more than 100 employees to
Retraining Notification Act provide 60 days’ notice before a mass layoff or facility
closing

Family and Medical Leave Gives employees in organizations with 50 or more

Act employees up to 13 weeks of unpaid leave each year for
family or medical reasons

Health Insurance Permits portability of employees’ insurance from one

Portability and employer to another
Accountability Act

Lilly Ledbetter Fair Pay Changes the statute of limitations on pay discrimination to
Act 180 days from each paycheck

Patient Protection and Health care legislation that puts in place comprehensive
Affordable Care Act health insurance reforms

Occupational Safety and Establishes mandatory safety and health standards in

Health Act (OSHA) organizations

Privacy Act Gives employees the legal right to examine personnel files
and letters of reference

Consolidated Omnibus Requires continued health coverage following termination

Reconciliation Act (paid by employee)
(COBRA)

global HRM
Work councils: groups of nominated or elected employees who must be consulted when management
makes decisions involving personnel

68
Board representatives: employees who sit on a company’s board of directors and represent the interests of
the firm’s employees
Demography:
The oldest, most experienced workers (those born before 1946) make up 6% of the workforce
Baby boomers make up 41.5% of the workforce
Gen Xers make up almost 29% of the workforce
Gen Yers make up almost 24% of the workforce
The tasks associated with identifying and selecting competent
employees
Human Resource planning
Human resource planning: ensuring that the organization has the right number and kinds of capable people
in the right places and at the right times
Two steps:
● Assessing current human resources
● Meeting future HR needs
Current Assessment
● Job analysis: an assessment that defines jobs and the behaviors necessary to perform them
case: Roberta has been asked to complete a questionnaire about her job duties and the qualifications she
believes a candidate for her position should have.
● Job description (position description): a written statement that describes a job
● Job specifications: a written statement of the minimum qualifications a person must possess to
perform a given job successfully
case: Sam, a human resources manager, wants to let potential candidates know about the minimum
qualifications that they should possess in order to successfully perform the jobs they have applied for.
Recruitment and Decruitment:
Recruitment: locating, identifying, and attracting capable applicants
Decruitment: reducing an organization’s workforce
Recruiting Sources

Source Advantages Disadvantages

Internet Reaches large numbers of Generates many

people; can get immediate unqualified candidates
feedback

Employee referrals Knowledge about the May not increase the

organization provided by diversity and mix of
current employee; can employees

69
 generate strong
candidates because a
good referral reflects on
the recommender

Company website Wide distribution; can be Generates many

targeted to specific groups unqualified candidates

College recruiting Large centralized body of Limited to entry-level

candidates positions

Professional recruiting Good knowledge of Little commitment to

organizations industry challenges and specific organization
requirements

Decruitment Options

Firing Permanent involuntary termination

Layoffs Temporary involuntary termination; may last only a few days or extend to years

Attrition Not filling openings created by voluntary resignations or normal retirements

Transfers Moving employees either laterally or downward; usually does not reduce costs bu
can reduce intraorganizational supply–demand imbalances

Reduced Having employees work fewer hours per week, share jobs, or perform their jobs o
workweeks part-time basis

Early Providing incentives to older and more senior employees for retiring before their
retirements normal retirement date

Job sharing Having employees share one full-time position

Selection: screening job applicants to ensure that the most appropriate candidates are hired

70
Case: Elizabeth was hired as a customer care executive by a telecommunications provider during a period
when they were extremely short-staffed. Her employers soon realized that she was impatient, easily
irritated, and lacked motivation. They even began to receive complaints about her behavior from angry
customers. In hiring Elizabeth, her employers were guilty of a(n) → accept error
Validity and Reliability
- A valid selection device is characterized by a proven relationship between the selection device and some
relevant criterion.
case: All candidates for entry level engineering positions are given the mechanical aptitude test. Those who
scored well and were hired later earned high scores on their performance evaluations. Those who scored
less well and were hired earned lower scores on performance evaluations. This indicates that the test is
- A reliable selection device indicates that it measures the same thing consistently.
Selection Tools

Tool Characteristics

Application forms Almost universally used

Most useful for gathering information
Can predict job performance but not easy to create one that does

Written tests Must be job-related

Include intelligence, aptitude, ability, personality, and interest tests
Are popular (e.g., personality tests; aptitude tests)
Relatively good predictor for supervisory positions

Performance simulation Use actual job behaviors

tests Work sampling—test applicants on tasks associated with that job;
appropriate for routine or standardized work
Assessment center—simulate jobs; appropriate for evaluating
managerial potential

71
 Interviews Almost universally used
Must know what can and cannot be asked
Can be useful for managerial positions

Background Used for verifying application data—valuable source of information

investigations Used for verifying reference checks—not a valuable source of
information

Physical examinations Are for jobs that have certain physical requirements
Mostly used for insurance purposes

When Beverly administers the math test to accounting clerk candidates, the average score is 65%. But
when Carol administers the same test, the score average is 83%. What does this indicate about the test? →
The test is unreliable.
Realistic job preview (RJP): a preview of a job that provides both positive and negative information about
the job and the company
* The different types of orientation and training
Orientation: introducing a new employee to his or her job and the organization
-Successful orientation results in → reduced first-year turnover
* Types of orientation:
● work unit orientation
-familiarizes the employee with the goals of the work unit, clarifies how his
or her job contributes to the unit's goals, and includes an introduction to his or her new coworkers.
● organization orientation
-informs the new employee about the company's goals, history, philosophy, procedures, and rules.
* Types of Training

* Traditional Training Methods

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 Method Characteristics

On-the-job Employees learn how to do tasks simply by performing them, usually after
an initial introduction to the task.

Job rotation Employees work at different jobs in a particular area, getting exposure to
a variety of tasks.

Mentoring and Employees work with an experienced worker who provides information,
coaching support, and encouragement; also called apprenticeships in certain industries.

Experiential Employees participate in role-playing, simulations, or other face-to-face

exercises types of training.

Workbooks/ Employees refer to training workbooks and manuals for information.

manuals

Classroom Employees attend lectures designed to convey specific information.

lectures

* Technology-Based Training Methods

Method Characteristics

CD-ROM/DVD/ Employees listen to or watch selected media

videotapes/audiotapes/ that convey information or demonstrate certain techniques
podcasts

Videoconferencing/ Employees listen to or participate as information is

teleconferencing/satelli conveyed or techniques demonstrated.
te TV

E-learning Internet-based learning where employees participate

in multimedia simulations or other interactive modules.

Mobile learning Learning delivered via mobile devices.

* Strategies for retaining competent, high-performing employees

Performance management system: establishes performance standards used to evaluate employee
performance
* Performance Appraisal Methods:

Method Description Advantages/Disadvantages

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 Written Essay Evaluator writes a description of + Simple to use
employee’s strengths and weaknesses, − May be better measure of evaluator’s
past performance, and potential; provides writing ability than of employee’s
suggestions for improvement. actual performance

Critical Incident Evaluator focuses on critical behaviors + Rich examples, behaviorally based
that separate effective and ineffective − Time-consuming, lacks quantification
performance.

Graphic Rating Popular method that lists a set of + Provides quantitative data;
Scale performance factors and an incremental not time-consuming
scale; evaluator goes down the list and − Doesn’t provide in-depth information
rates employee on each factor.

BARS (Behaviorally Popular approach that combines
Anchored Rating elements from critical incident and
Scale graphic rating scale; evaluator uses
a rating scale, but items are
examples of actual job behaviors.
+ Focuses on specific and measurable
job behaviors
− Time-consuming; difficult to develop

Multiperson Employees are rated in comparison + Compares employees with one another
Comparison to others in work group. − Difficult with large number of
employees; legal concerns

MBO Employees are evaluated on how + Focuses on goals; results oriented

well they accomplish specific goals. − Time-consuming

360-Degree Appraisal Utilizes feedback from supervisors, + Thorough

employees, and coworkers. − Time-consuming

CASE:
-In his report, Wade described the strengths and weaknesses of each of his subordinates. He made a note
of their past performances and the potential they displayed. He even provided suggestions for their
improvements. Wade is using the written method of conducting a performance appraisal.
-Wayne hosts his first regional sales meeting during which he meets individually with his employees and
shows them a chart of their sales numbers for each month compared to their budgeted quota for the year to
date. Additionally, Wayne and each employee set mutually agreed-upon budget goals for the remaining six
months of the fiscal year. Wade is utilizing the MBO method of performance appraisal.
* Compensation and Benefits
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- Skill-based pay: a pay system that rewards employees for the job skills they can demonstrate
- Variable pay: a pay system in which an individual’s compensation is contingent on performance
CASE: After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation system.
What advice would you offer its HR manager?--> Make it more flexible and reduce the number of pay levels.
* Contemporary issues in managing human resources
Downsizing: the planned elimination of jobs in an organization family-friendly benefits provided by
organizations? => time off for school functions
People who prefer segmentation are more likely to be satisfied and committed to their jobs when offered
options such as→ job sharing
Tips for Managing Downsizing
To help survivors of downsizing cope with the stress, managers provide→ employee counseling

Tip

Treat everyone with respect.

Communicate openly and honestly:

*Inform those being let go as soon as possible.
*Tell surviving employees the new goals and expectations.
*Explain impact of layoffs.

Follow any laws regulating severance pay or benefits.

Provide support/counseling for surviving (remaining) employees.

Reassign roles according to individuals’ talents and backgrounds.

Focus on boosting morale:

*Offer individualized reassurance.
*Continue to communicate, especially one-on-one.
*Remain involved and available.

Have a plan for the empty office spaces/cubicles so it isn’t so depressing for
surviving employees.

Managing Sexual Harassment

Sexual harassment: any unwanted action or activity of a sexual nature that explicitly or implicitly affects an
individual’s employment, performance, or work environment
CASE: Because Quentin is the only male worker in a group of women, other male employees have made
jokes about his gender identity. The jokes have affected Quentin's motivation to work and he is absent more
often. This situation may constitute.
Controlling HR Costs
75
- Employee health-care costs
- Employee pension plan costs
Employers are changing from traditional to defined contribution plans as a cost-cutting measure.
One mmethod some companies are using to control health care costs is to → fire employees who refuse to
quit smoking
1. Recruit: assume recruitment needs
Job analysis: collab with the department head to find:
- An assessment that defines jobs and the behaviors necessary to perform them
Ex: Roberta has been asked to complete a questionnaire about her job duties and the qualifications she
believes a candidate for her position should have
- requirement: knowledge, skill, personality
- experience (cho hailey_sales tương lai, bán tấm thân mà hem ai mua :()
- work content
- practical info: salary + benefit + deadline recruit/contract
Write JD/Advert
+ informative/encourage → post ( top Cv ,.... social media )
+ Format - (position -> perk -> work content -> requirement -> practical info)
+ Phrasing be specific + positive - (high communication <- able to negotiate, build rapport with
customers,…)
+ negotiable:
+ skill: (e.g. barista for starbuck: negotiable: low skill _ low salary
CEO for starbucks: negotiable: high skill _ salary fucking high)
+ position có popular in work market khum: (most likely employee prefer the specific salary bc they
avoid uncertainty)
+ thu hút người tài? -( when you start up/company have big strategic change) only want to top it would
be right to use negotiable
Post where:
+ social media
+ website
+ career fair
+ recruitment website
Handle & Process (try to formalize as much as possible)
+ lấy adv rồi up lên drive/dropbox <- thống kê
+ email confirm theo form hay viết tay
Screening: recruit (interview/test)
+ chọn ai đây ta (strength&weakness, contribution/distribution. competitive advan, tell me diff situations
u overcome/what success, => u can't tell anything abt it, can only tell how serious the interviewee)
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 + nếu muốn sure về interviewee: hỏi tình huống, dắt đi vòng vòng
+ test: personality (mbti, aptitude test: test IQ, problem solving test (work in group/pairs)
sau interview, chừa 10-15 min để ngta hỏi
⇒ successfully recruit appropriate employees is one of the most important factors influencing organizational
success.
2. Retain
2.1. Orientation = Introduce job(dept head) and company
- workshop
- team bonding (sports, board game,.) (ritual)
- tour
- handbook-practical info: contact, rules and regulation, history, (lương thưởng), (simple and artifact)
=> build cpn culture
2.2 Training and Development (in-house or external)
e.g. google do well, invite politician,celeb come and share their story
dốt nên mới training
opportunities for employee growth
have big change coming
văn hóa, văn nghệ
2.3 performance evaluation: formalised
nên có 1 ng disagreeable (chửi performance tệ) và agreeable (ngọt nếu performance tốt)
low performance solution: => Reduce
3. Reduce
formalize discipline
rotate (low performance do kh hợp nên chuyển)
demotion: gây lỗi nghiêm trọng nhưng xảy ra 1 ng useful
firing:
- violate the contract
- covid 19
- big change
- change ownership
đền bù hợp đồng: severance package
*Nếu HR hỏi bạn muốn mức lương bn
Mình đưa ra con số → lý do ( em đã xem ở ….. và thấy mức lương tb ….. ) → But I open to negotiation.
what u think hehe
The final three activities of the human resource management process ensure that the organization retains
competent and high-performing employees

77
 CHAPTER 14, 15: Communication
The nature and function of communication.
Everything a manager does involves communicating.
-Communication: the transfer and understanding of meaning
-Interpersonal communication: communication between two or more people
-Organizational communication: all the patterns, networks, and systems of communication within an
organization
Function:
● Control
● Motivation
● Emotional expression
● Information/ inform(v)
Formal communication can control behavior, but informal communication cannot.--> FALSE
CASE:
-Ana tells her manager that she needs a new computer, but he says that the company can't afford it.
-George prepares a memorandum explaining the objectives of a newly created work team that he is
expected to manage, and makes sure it reaches each team member. He is involved in organizational
communication.
Methods and challenges of interpersonal communication.
Message: a purpose to be conveyed
Encoding: converting a message into symbols
Channel: the medium a message travels along
Decoding: retranslating a sender’s message
Methods:
-Communication process: the seven elements involved in transferring meaning from one person to another
Noise: any disturbances that interfere with the transmission, receipt, or feedback of a message
-The communication process is susceptible to noise→ TRUE
-On average, an individual must hear new information three times before he or she truly
understands.--> FALSE
-Most communication problems are directly attributed to noise in the communication process.--> FALSE
-E-mail increases filtering because electronic communication is faster.--> FALSE

78
Choose medium:

Criteria Question

Feedback How quickly can the receiver respond to the message?

Complexity Can the method effectively process complex messages?

capacity

Breadth potential How many different messages can be transmitted using this method?

Confidentiality Can communicators be reasonably sure their messages are received only
by those intended?

Encoding ease Can sender easily and quickly use this channel?

Decoding ease Can receiver easily and quickly decode messages?

Time-space Do senders and receivers need to communicate at the same time and in
constraint the same space?

Cost How much does it cost to use this method?

Interpersonal How well does this method convey interpersonal warmth?

warmth

Formality Does this method have the needed amount of formality?

Scanability Does this method allow the message to be easily browsed or scanned for
relevant information?

Time of Does the sender or receiver exercise the most control over when the
consumption message is dealt with?

Nonverbal commu
Nonverbal communication: communication transmitted without words
79
Body language: gestures, facial configurations, and other body movements that convey meaning
Verbal intonation: an emphasis given to words or phrases that conveys meaning
Comparison of Communication Methods

Barriers
● Information overload: when information exceeds our processing capacity
● Filtering: the deliberate manipulation of information to make it appear more favorable to the receiver

80
 ● Jargon: specialized terminology or technical language that members of a group use to communicate
among themselves (trẻ trâu,..)
● The more vertical levels in an organization, the more opportunities there are for filtering.
Overcoming the Barriers
Use feedback
Simplify language
Listen actively/Active listening: listening for full meaning without making premature judgments or
interpretations
Constrain emotions
Watch nonverbal cues

How communication can flow most effectively in organizations

Formal Versus Informal
-Formal communication: communication that takes place within prescribed organizational work
arrangements
-Informal communication: communication that is not defined by the organization’s structural hierarchy
ex:
-When a manager asks an employee to complete a task, he or she is using→ formal
-The vice president wrote a letter to the employees announcing the opening of a new production facility →
formal organizational communication.
Direction of flow

81
 ● Downward: communication that flows downward from a manager to employees/to coordinate and
evaluate employees
● Town hall meeting: informal public meetings where information can be relayed, issues can be
discussed, or employees can be brought together to celebrate accomplishments
● Upward communication: communication that flows upward from employees to managers/keeps
managers aware of how employees feel about their jobs,
their coworkers, and the organization in general.
● Lateral communication: communication that takes place among any employees on the same
organizational level/ cross-functional teams rely heavily on
● Diagonal communication: communication that cuts across work areas and organizational levels/
interest in increasing the efficiency and speed of communication between managers at different
levels and in different departments.
Networks
-Communication networks: the variety of patterns of vertical and horizontal flows of organizational
communication
-Grapevine: the informal organizational communication networ/ It is an important source of information for
employees, many of whom hear about important matters first through rumors or gossip on the grapevine.
Acting as both a filter and a feedback mechanism

- Chain network-Communication flows according to the formal chain of command, both downward and
upward. If accuracy is important, the chain network works well.
- Wheel network-Communication flows between a clearly identifiable and strong leader and others in a work
group or team. The leader serves as a hub through which communication passes. If having a strong,
identifiable leader is important to the organization or work unit, the wheel network is the best communication
network. Accuracy is also very high with the wheel network.
- All-channel network-Communication flows freely among all members of a work team. If high member
satisfaction is a concern, the all-channel network is preferable.

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- Because rumors that flow along the grapevine can never be eliminated entirely, managers can minimize
the negative consequences of rumors by → communicating openly and honestly with employees
- Employees typically engage in four types of work →:focused work, collaboration, learning, and
socialization
Workplace Design and Communication
Open workplaces: workplaces with few physical barriers and enclosures
- To increase face-to-face communication among employees, the workplace design should → maximize
visibility and density
- Cartoonist Scott Adams, author of the Dilbert comic, writes of "cubicle cities," large areas with innumerable
employees packed into individual workspaces separated by partial walls → density is increased
how the Internet and social media affect managerial communication and organizations
-William says he never really gets a vacation any more.--> IT has made it possible for people in
organizations to be fully accessible at any time regardless of where they
- disadvantage of using IT in organizational communication?--> psychological costs
-Although constant accessibility and the erasure of geographic constraints have been made possible by IT, it
is important for managers to consider the content of the message when selecting the method of
communication. → true
The 24/7 Work Environment
-IT has made it possible to stay connected around the clock, seven days per week.
-IT has made it possible for people in organizations to be fully accessible, at any time, regardless of where
they are.
Working From Anywhere
-Wireless communication technology has the ability to improve work for managers and employees.
Social Media
-Devoting a channel for information exchange about a specific topic can help compartmentalize the
conversation.
-It can also start a useful conversation in which employees can share their experiences and make
suggestions for creating competitive advantage.
Communication issues in today's organizations
Managing Communication in a Digitally Connected World
-Legal and security issues
-Personal interaction
Managing the Organization’s Knowledge Resources
-Managers need to enable employees to communicate and share knowledge so they can learn from each
other.
The Role of Communication in Customer Service
The three components:
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1. customer
2. service organization
3. individual service provider
How to Let Employees Know Their Input Matters

Suggestion

Hold town hall meetings where information is shared and input solicited

Provide information about what’s going on, good and bad.

Invest in training so that employees see how they impact the customer experience.

Analyze problems together—managers and employees.

Make it easy for employees to give input by setting up different ways for them to do so
(online, suggestion box, preprinted cards, and so forth).

Communicating Ethically
-Ethical communication: includes all relevant information, is true in every sense, and is not deceptive in any
way
Discuss how to become a better communicator.
● Active listening
● Persuasion skills
● Speaking skills
● Writing skills
● Reading skills
(berlin note)
1. Interpersonal comm: your own behave, nói chuyện giữa người với người
2. Organizational comm:
● External: how company tell the social/ khi có scandal thì giải thích với công chúng ntn

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 ● Internal communication in organization

encode: turn idea to message by speak, write, draw, etc

medium: channel of in4: social media, zoom, telephone, meeting, email, letter, etc
decode: listen, read
The chance of communication break down is high ⇒ to avoid: only can intervene medium
Choose medium
1. Feedback: Does the medium enable quick response from receiver?
2. Complexity: Can the medium contain long and difficult message?
3. Breadth: Can the medium contain many message at once?
high: face to face low: mail, type
4. Confidentiality: Can the medium keep secret?
high: face to face low: email công ty
5. Encoding and Decoding ease: can sender and receiver use the medium easily and quickly?
6. Time and space constraint: Does the medium require sender and receiver at the same place and
time?
7. Cost: Does the medium cost?
8. Interpersonal warmth: Can the medium improve relationship/ rapport/ morale?
9. Formality: Does the medium formal enough?
10. Scanability: Can receiver easily get the detail through medium?
11. Consumption: Does the medium require quick consumption?
Decode luôn dính noise: interruption: wrong in4 from outsider, third parties (e.g. Sếp gọi lên phòng → “ê gọi
lên tăng lương” là noise) ⇒ This is gossips and rumors: quicker, maybe include official in4, can learn
company culture, recognize soft power.
But DO NOT act and behave based on rumors and gossips (grapevine: informal, unofficial, underground
company communication)
● Non-verbal: gesture, facial expression (eyes), posture, tone of voice, smell, fashion-clothing,
make-up, hairstyle, accessories, etc ⇒ can prepare
● Verbal: practice

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 Organization Behavior
OCB: _citizenship_: positive behavior that are not require
Để có OCB thì
1. Tuyển đúng người: Bài HR
2. Người đó có OCB:
2.1. attitude: job, company, manager
manager can build relationship by:
+ salary, bonus, reward
+ daily interaction (cs)
+ set example
+ empower
+ fairness
2.2. perception: understanding job, decision making by training, competition and mentoring (+ gain
attitudes)
2.3. personality, competencies by assign or design job/task
Big 5 personality
Openness: how actively do you chase new idea without require them to convince you
Conscientiousness: how tidy, need, hardworking you are
Extraversion: extrovert: fun when surrounding ppl
Agreeableness: how much value others’ feeling, social harmony
high: if conflict - feel it hard to work - into positive envi
low: if conflict - feel ok, (if someone wrong u tell them wrong - can public insult)
Neuroticism: how alert and easily affected (paying to details?)
high: if boss call u at midnight, u will pickup
low: don't give shit to other
Other:
+ self-esteem: right evaluation about themselves, know your position, make the best in your situation
+ locus of control: Do you believe that your destiny is controlled by yourself or by external forces (such as
fate, god, or powerful others)?
+ overcome destiny, take responsibility thì mới làm manager được
CHAPTER 15 - Organizational Behavior
Individual behavior in organizations includes → attitudes, learning, and motivation
Organizational behavior: the study of the actions of people at work
I the focus and goals of individual behavior within organizations.
Organization as Iceberg

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Goals of Organizational Behavior (explain, predict, and influence behavior)
-Employee productivity: a performance measure of both efficiency and effectiveness
-Absenteeism: the failure to show up for work
-Turnover: the voluntary and involuntary permanent withdrawal from an organization
- Organizational citizenship behavior (OCB): discretionary behavior that is not part of
an employee’s formal job requirements, but which promotes the effective functioning of
the organization
- Job satisfaction: an employee’s general attitude toward his or her job
- Counterproductive workplace behavior: any intentional employee behavior that is potentially damaging to the
organization or to individuals within the organization
II Explain the role that attitudes play in job performance.
- Cognitive component: that part of an attitude that’s made up of the beliefs, opinions, knowledge, or
information held by a person
- Affective component: that part of an attitude that’s the emotional or feeling part
- Behavioral component: that part of an attitude that refers to an intention to behave in certain way toward
someone or something
- Job satisfaction, job involvement, organizational commitment, employee engagement
IV Describe perception and factors that influence it.
Factors that Influence Perception: Perceiver, Target, Situation
CHAPTER 16 - LEADERSHIP
How to lead?

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I. Leader + Leadership
● Leader: Someone who can influence others and who has managerial authority.
● Early research on leadership traits focused on characteristics that might differentiate leaders
from nonleaders
e,g, Persons who are able to influence others and who possess managerial authority are termed
leaders, effective team leaders act as facilities.
● Leadership: A process of influencing a group to achieve goals
II. Leadership theories
1. Leadership Traits
- Identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful
who can influence others and who has managerial authority.
e.g. In his speech the previous day, the new CEO had discussed his experience in the industry and his
education. Carrie thought that the new CEO would do a great job given these characteristics, coupled
with his good oratory skills and the fact that he just looked like a CEO.
- It proved impossible to identify a set of traits that would always differentiate a leader (the person)
from a non-leader.
- Some of the traits studied included physical stature, appearance, social class, emotional
stability, fluency of speech, and sociability.
- Trait theory ignores the interactions of leaders and their group members as well as situational
factors.
2. Leadership Behaviors
- Behavioral theories: leadership theories that identify behaviors that differentiate effective leaders
from ineffective leaders.
- Behavioral Dimension:
Consideration: Susan has a reputation of being fair, helpful, and understanding. She even helped
her subordinate overcome a personal crisis.

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* Autocratic style: centralize authority, dictate work methods, make unilateral decisions, and limit
employee participation
e.g. Bernard expects his employees to "check their brains at the door." He does all the thinking,
makes all the decisions, and issues commands to his subordinates.
* Democratic style: involves employees in decision making, delegates authority, & uses feedback
as an opportunity for coaching employees
- In working with his employees, Carlos involves them in decision making and encourages them to
participate in deciding their work methods and goals. Carlos's leadership style can best be described
as.
- Barbara solicits input from her subordinates before making decisions that will affect them. She often
praises them for good work and gently offers suggestions to improve their performance.
* Laissez-faire style: lets the group make decisions and complete the work in whatever way it sees
fit.
e.g. Connie sees her role as someone who provides direction and resources for her team then gets
out of their way and lets them do their work however they think best.
Contemporary views of leadership
- Transactional leaders: Leaders who lead primarily by using social exchanges (or
transactions)
- Transformational leaders: Leaders who stimulate and inspire (transform)
followers to achieve extraordinary outcomes.
e.g. A leader, such as Bill Gates of Microsoft, who can inspire followers above their own selfinterests and
can have a profound effect on their performance. OR Rachel's colleagues and subordinates have a very
high regard for her. They know that no one can get high-quality work done the way Rachel can. She inspires
her team to excel in their work, even exceeding their own expectations.
- Transactional and transformational leadership shouldn’t be viewed as opposing
approaches to getting things done.
- The evidence supporting the superiority of transformational leadership over
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transactional leadership is overwhelmingly impressive.
How to build trust? - 4 dimensions of leadership
+ Ability (3 areas: industry, functional ability, managerial ability)
+ Benevolence # Selfishness: Are you entirely self-severing? Are you concern people from different
culture?
+ Integrity: you set rules for yourself & stick to them, not require by any external,
eg. i have never blamed my employees,...
+ Predictability: when you have integrity, you are predictable person automatically.
CHAPTER 17 - MOTIVATION
Source of motivation
● employee self-motivate
● you (manager/CEO) → do sth to satisfy
● job design
I. Motivation:
Define: the process by which a person’s reports are energized, directed, and sustained toward attaining a
goal.
● three key elements: energy, direction, and persistence.
● The energy element is a measure of intensity, drive, and vigor.
● A motivated person puts forth effort and works hard.
● The quality of the effort = its intensity. => relevant to the energy element
● High levels of effort don't necessarily lead to favorable job performance unless the effort is channeled
in a direction that benefits the organization.
● Effort that's directed toward, and consistent with, organizational goals is the kind of effort we want
from employees.
● Finally, motivation includes a persistence dimension. We want employees to persist in putting forth
effort to achieve those goals.
II. EARLY theories of motivation - HOW TO MOTIVATE?
1. Maslow’s Hierarchy of Needs Theory: human needs—physiological, safety, social, esteem, and
self-actualization—form a sort of hierarchy.
- Maslow proposed that within every person is a hierarchy of five needs:
a. Physiological needs (lowest): e.g. Matthew is worried that he will not be able to pay his mortgage
and feed his family since he was laid off from his production job.
b. Safety needs:
- According to Maslow's hierarchy of needs theory, when an employer provides his employees health
insurance.
- Safety is a lower-order need in Maslow's hierarchy of needs theory.
c. Social needs:
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 e.g. In the context of Maslow's hierarchy of needs theory, when a company has a space where
employees can meet during breaks and catch up with each other
d. Esteem needs: self-respect, autonomy, and achievement and external esteem factors such as
status, recognition, and attention.
- In the context of Maslow's hierarchy of needs theory, when a company names an "Employee of the
Month" and "Employee of the Quarter,"
- Marlin, a physicist in a large corporation, has been asked by his professional association to present a
scientific paper at the national convention.
- Esteem is a higher-order need in Maslow's hierarchy of needs theory
e. Self-actualization needs (highest): A person’s needs for growth, achieving one’s potential, and
self-fulfillment; the drive to become what one is capable of becoming.
- With its motto "Be All that You Can Be," the United States Army encouraged recruits to fulfill their
self-actualization needs.

=> According to Maslow's hierarchy of needs theory, safety needs are predominantly satisfied externally
while self-actualization needs are satisfied internally.
=> More than the other motivational theories, Maslow's hierarchy of needs has universal application (0)
2. McGregor’s Theory X and Theory Y
● Theory X: employees dislike work, are lazy, avoid responsibility, and must be coerced to perform.
- Joe watches his youngest employees like a mother hen to make sure they stay on task and off their cell
phones. Joe is behaving like a Theory X manager.
- McGregor's Theory X assumes that employees need to be closely controlled to work effectively.
- Joseph, a line manager at a production facility, believes that his workers have little drive and will not work
unless he pushes them. Therefore, he closely monitors and controls their work and disciplines those who do
not meet his standards.
● Theory Y: The assumption that employees are creative, enjoy work, seek responsibility, and can
exercise self-direction.
- McGregor's Theory Y assumes that employees enjoy work.

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- John knows his more experienced workers don't need him to "babysit" them; he trusts them to know what
to do, how to do it, and to get it done on time.
Research clearly indicates that the Theory Y manager isn’t more effective in motivating employees than the
Theory X manager.
3. Herzberg’s Two-Factor Theory
● Two-factor theory (motivation– hygiene theory): The motivation theory that intrinsic (nội tại) factors
are related to job satisfaction and motivation, whereas extrinsic factors are associated with job
dissatisfaction
● Hygiene factors: Factors that eliminate job dissatisfaction, but don’t motivate
e.g. working conditions
- Herzberg called the factors that create job dissatisfaction hygiene factors; when these factors are
adequate, people won't be dissatisfied, but they won't be satisfied either.
- The employees at KLM Company are complaining that the supervisors tend to pick favorites
within their departments. Company policies are not equally enforced and the favorites are not
disciplined for safety violations.
● Motivators: Factors that increase job satisfaction and motivation (responsibility)
- Frederick Herzberg's two-factor theory proposes that extrinsic factors (bên ngoài) are associated with job
dissatisfaction.
- Frederick Herzberg found that when employees were dissatisfied, they tended to cite extrinsic factors
arising from the job context such as company policy and administration, supervision, interpersonal
relationships, and working conditions.
- Satisfaction is not the opposite of dissatisfaction.
- Managers cannot use Herzberg's two factor theory when designing jobs.
4. Three-Needs Theory: The motivation theory that says three acquired (not innate) needs— achievement,
power, and affiliation—are major motives in work. Once a need is substantially satisfied, that need no longer
motivates the individual.
● Need for achievement (nAch): The drive to succeed and excel in relation to a set of standards.
- You are acting as manager and mentor to Melanie, an employee who has been identified as a high
achiever. According to McClelland's three-needs theory, giving her a job that holds her personally
responsible for finding solutions to problems would most help you motivate Melanie to do her best.
- People with a high need for achievement prefer moderately challenging goals.
● Need for power (nPow): The need to make others behave in a way that they would not have
behaved otherwise.
e.g. Tiffany is usually the person who takes charge of the situation and gets people moving toward the
group's objective.
● Need for affiliation (nAff): The desire for friendly and close interpersonal relationships.
- According to the three-needs theory, the best managers tend to be low in the need for affiliation.
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- Bob is a social butterfly. He often leaves his workstation to chat with coworkers. He volunteers for every
problem-solving team and enjoys planning the annual summer employee picnic. Bob has a high need for
affiliation.
- People with a high need for achievement doesn’t strive for the trappings and rewards of success rather
than for personal accomplishment.
Extra examples:
- Irene, CEO of a small company, strongly believes in Douglas McGregor's assumptions about human
nature. Participatory management practices is Irene most likely to favor to maximize employee motivation.
- According to Maslow's hierarchy of needs theory, lower-order needs are predominantly satisfied externally
while higher-order needs are satisfied internally.
III. CONTEMPORARY theories of motivation
1. Goal-Setting Theory: the proposition that specific goals increase performance
and that difficult goals, when accepted, result in higher performance than do easy goals.
- Employee participation in goal-setting is not always necessary for ensuring performance.
- Indirectly related to job satisfaction.
- It is wrong to say that a generalized goal of "do your best" will produce a higher output than specific,
challenging goals OR goal-setting theory works well as a motivator in cultures that are high in uncertainty
avoidance.
* Three other contingencies besides feedback influence the goal-performance relationship:
● Goal Commitment: Commitment is most likely when goals are made public, when the individual has
an internal locus of control, and when the goals are self-set rather than assigned. The goal-setting
theory has the most value when commitment to goals is made public.
At his last performance evaluation, Elliott agreed to earn 20 continuing education credits
before his next annual review. Ten months later, he still has not earned any. From this lack of action, we can
infer that Elliott was not committed to the goal.
● Self-efficiency: an individual’s belief that he or she is capable of performing a task.
In a familiar children's book, a little locomotive was asked to pull a heavy train up a steep
mountain. The "little engine," as he was called, kept telling himself "I think I can. I think I can." The little
engine was high in self-efficiency.
● National culture: It assumes that subordinates will be reasonably independent (not a high score on
power distance), that people will seek challenging goals (low in uncertainty avoidance), and that
performance is considered important by both managers and subordinates (high in assertiveness).
The goal-setting theory has most value in countries where subordinates are reasonably independent.
2. Reinforcement Theory
● Reinforcement theory: The theory that behavior is a function of its consequences
● Reinforcers: Consequences immediately following a behavior, which increase the probability that the
behavior will be repeated.
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- Managers using reinforcement theory to motivate employees should ignore, not punish, undesirable
behavior.
- To help her new supervisors remember the concept of reinforcement theory, Carol told them to remember
this what gets rewarded gets repeated.
- A company's policy of giving its sales staff cash coupons for exceeding their daily targets.
3. Designing Motivating Jobs
- Because managers want to motivate individuals on the job, we need to look at ways to design motivating
jobs.
- Job design: The way tasks are combined to form complete jobs
a. JOB ENLARGEMENT
- Job scope: The number of different tasks required in a job and the frequency with which those tasks
are repeated.
- Job enlargement: The horizontal expansion of a job by increasing job scope.
b. JOB ENRICHMENT
- Job enrichment: The vertical expansion of a job by adding planning and evaluating responsibilities. It
increases job depth, which is the degree of control employees have over their work.
=> An enriched job allows workers to do an entire activity with increased freedom,
independence, and responsibility.
=> Job enlargement & enrichment: Expanding the scope of knowledge used in a job leads to more job
satisfaction, enhanced customer service, and fewer errors.
c. JOB CHARACTERISTICS MODEL
- Job characteristics model (JCM): A framework for analyzing and designing jobs that identifies five
primary core job dimensions, their interrelationships, and their impact on outcomes.
- Five core job dimensions
● Skill variety: the degree to which a job requires a variety of activities so that an employee can use a
number of different skills and talents.
● Task identity: the degree to which a job requires completion of a whole and identifiable piece of
work.
- The last worker in the assembly line put on the tires and tightened the lug nuts. When asked what
he did, he replied, "I build tractors."
- "We can't pay much but our clients could not manage without people like you in their lives."
● Task significance: the degree to which a job has a substantial impact on the lives or work of other
people.
● Autonomy: the degree to which a job provides substantial freedom, independence, and discretion to
the individual in scheduling the work and determining the procedures to be used in carrying it out.
e.g. At 3M, workers are allowed up to 15% of their paid time to devote to projects of their own
choosing.
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 ● Feedback: the degree to which doing work activities required by a job results in an individual
obtaining direct and clear information about the effectiveness of his or her performance.
e.g. As a flower arranger, Beth doesn't have to wait for someone to tell her. She can look at an
arrangement and know whether she did a good job.
- Other suggestions involve more than vertical and horizontal expansion of jobs: The JCM provides specific
guidance to managers for job design. These suggestions specify the types of changes that are most likely to
lead to improvement in the five core job dimensions.
1. Combine tasks: Put fragmented tasks back together to form a new, larger work module (job
enlargement) to increase skill variety and task identity.
2. Create natural work units: Design tasks that form an identifiable and meaningful whole to increase
employee “ownership” of the work. Encourage employees to view their work as meaningful and important
rather than as irrelevant and boring.
3. Establish client (external or internal) relationships: Whenever possible, establish direct relationships
between workers and their clients to increase skill variety, autonomy, and feedback.
4. Expand jobs vertically: Vertical expansion gives employees responsibilities and controls that were
formerly reserved for managers, which can increase employee autonomy.
5. Open feedback channels: Direct feedback lets employees know how well they’re performing their jobs
and whether their performance is improving or not.
d. REDESIGNING JOB DESIGN APPROACHES
Two emerging viewpoints on job design
● Relational perspective of work design: An approach to job design that focuses on how people’s
tasks and jobs are increasingly based on social relationships.
e.g. In jobs today, employees rely more and more on those around them for information, advice, and
assistance."
● Proactive perspective of work design: An approach to job design in which employees take the
initiative to change how their work is performed.
● One stream of research that’s relevant to proactive work design is high-involvement work practices,
which are designed to elicit greater input or involvement from workers.
- Sarah is using the JCM to redesign jobs for her small team of writers. After carefully analyzing their jobs,
she determines that while their jobs are high in skill variety, task identity, task significance, and autonomy,
they receive little feedback about their work. => allowing the writers to directly conduct business with their
clients.
- After seeing Tom's paycheck, Bob decided their inputs were nearly identical but Tom's check was much
larger. Bob decided to take action to make things fairer in his mind. He is most likely to reduce his effort at
work.
4. Equity Theory: An employee compares his or her job’s input-outcomes ratio with that of relevant others
and then corrects any inequity.
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e.g. Coworkers Bob and Tom were comparing checks on Friday. Bob saw that Tom's was significantly larger,
which made Bob unhappy.
● Referents: the persons, systems, or selves against which individuals compare themselves to assess
equity.
○ “persons” category includes other individuals with similar jobs in the same organization but also includes
friends, neighbors, or professional associates.
○ “system” category includes organizational pay policies, procedures + allocation.
○ “self” category refers to inputs-outcomes ratios that are unique to the individual.
● Distributive justice: perceived fairness of the amount and allocation of rewards among individuals.
e.g. When Bob discovered Tom had a larger paycheck for the same amount of effort, his concern centered
on distributive justice.
● Procedural justice: perceived fairness of the process used to determine the distribution of rewards.
e.g. The company announced it would be laying off several workers because of the loss of several large
orders. Employees wondered how the workers to be laid off would be selected.
=> Distributive justice has a greater influence on employee satisfaction than procedural justice.
5. Expectancy Theory: An individual tends to act in a certain way based on the expectation that the act will
be followed by a given outcome and on the attractiveness of that outcome to the individual
- It includes three variables or relationships:
1. Expectancy or effort-performance linkage is the probability perceived by the individual that exerting a
given amount of effort will lead to a certain level of performance.
e.g. Tammy's boss has asked her to take on a project in addition to her regular work. According to
expectancy theory, Tammy will consider the instrumentality and ask herself, "What are the odds that if I
expend effort on the project my performance will be satisfactory to the boss?”.
2. Instrumentality or performance-reward linkage is the degree to which the individual believes that
performing at a particular level is instrumental in attaining the desired outcome.
3. Valence or attractiveness of reward is the importance an individual places on the potential outcome or
reward that can be achieved on the job. Valence considers both the goals and needs of the individual.
e.g. Bonnie's boss has offered her baseball game tickets if she meets her sales goals this month. Bonnie
looked at him in disbelief and did not put forth the effort to meet the goals. According to expectancy theory,
from this we can surmise the reward had low valence for Bonnie.
IV. CURRENT issues in motivation
=> To maximize motivation among today's workforce, managers need to think in terms of flexibility.
=> Studies tell us that younger men place more importance on having autonomy in their jobs, while younger
women seek convenience and flexibility.
=> High-involvement work practices is another term for employee empowerment.

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e.g. Jack Hammer is a retired man who has decided to seek work with your company to supplement his
retirement income. As you consider whether he will be a good fit for your department, you decide that he is
likely to find satisfaction in the job because it is in a highly structured work environment.
1. Managing Cross-Cultural Motivational Challenges
- In today’s global business environment, managers can’t assume motivational programs that work in one
location will work in others.
- Most current motivation theories were developed in the United States by Americans and about Americans.
- Interesting work is important to all workers, regardless of their national culture.
2. Motivating Unique Groups of Workers
- Employees come into organizations with different needs, personalities, skills, abilities, interests, and
aptitudes.
- They have different expectations of their employers and different views of what they think their employer
has a right to expect of them.
- And they vary widely in what they want from their jobs.
e.g. Money and promotions are typically low on the priority list of professionals.
a. DIVERSE EMPLOYEES: Many organizations have developed flexible work arrangements—such as
compressed workweeks, flextime, and job sharing that recognize different needs. And also telecommuting.
b. PROFESSIONALS
- Job challenge
- Finding solutions to problems
- Support
- Perception that their work is important
e.g. Professionals tend to be focused on their work as their central life interest, whereas nonprofessionals
typically have other interests outside of work that can compensate for needs not met on the job.
c. CONTINGENT WORKERS
- Opportunity to become a permanent employee
- Opportunity for training
- Equity in compensation and benefits
e.g. Temporary workers are often motivated by the opportunity to become regular, full-time employees.
d. LOW-SKILLED MINIMUM WAGE EMPLOYEES
- Employee recognition programs
- Provision of sincere praise
e.g. Flipping burgers at the local drive-thru is Marla's first job. She has no work experience, no marketable
skills. Recognize her best performance with public praise that her manager does to keep Marla motivated to
perform at her highest level.
3. Designing Appropriate Rewards Programs

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- Open-book management: A motivational approach in which an organization’s financial statements (the
“books”) are shared with all employees.
- Employee recognition programs: Personal attention and expressing interest, approval, and appreciation
for a job well done. => The use of employee recognition programs as motivational tools is consistent with
the reinforcement theory.
- Pay-for-performance programs: Variable compensation plans that pay employees on the basis of some
performance measure. => show positive results.

CHAP 18 - CONTROLLING
18.1. The nature and importance of control
- Controlling refers to the process of monitoring, comparing, and correcting work performance.
Examples represents the controlling function:
The quality auditor selects one piece every 15 minutes from the batch of molded products
and, using very precise gauges, measures key dimensions on the part.
- Managers engage in controlling activities to protect the organization and its assets.
- The value of the control function can be seen in three specific areas: planning, empowering
employees, and protecting the workplace.
- Controlling is the final step in the management process, which provides a critical link back to
planning.
* Controlling is important because:
- 1st reason: it's the only way managers know whether organizational goals are being met and if not,
the reasons why.
+ The value of the control function can be seen in three specific areas: planning, empowering
employees, and protecting the workplace.
+ As the final step in the management process, controlling provides the critical link back to planning.
+ Therefore, if managers didn’t control, they’d have no way of knowing whether their goals and plans
were being achieved and what future actions to take.
- 2nd reason - Employee empowerment:
+ Many managers are reluctant to empower their employees because they fear employees will do
something wrong for which they would be held responsible.
+ Many managers are tempted to do things themselves and avoid empowering.
+ But an effective control system can provide information and feedback on employee performance,
thus reducing potential problems.
- final reason - Protect the organization and its assets:
+ Today's environment brings heightened threats from natural disasters, financial scandals, workplace
violence, supply chain disruptions, security breaches, and even possible terrorist attacks.

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 + Managers must have plans in place to protect the organization's employees, facilities, data, and
infrastructure. Having comprehensive controls and backup plans will help assure minimal work
disruptions.
* Measuring firm performance is one of the following management responsibilities determines if
organizational goals are being achieved
e.g. Statco, Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired
Mark Adams to design a control system and offer suggestions to improve the firm's performance.
Therefore, performance measurement is a key activity that the proposed control system should perform.
* An effective control system is the only way managers know whether organizational goals are being met
is the best explain why the control function is important.
* Having a control system doesn’t reduce (=increase) the scope of employee empowerment and
autonomy.
18.2. Three steps in control process
* The control process assumes that performance standards are already in place
e.g. Sometimes the French fries are rather pale, other times they are golden, sometimes they are quite
dark. Anna cooks them according to how much time she has available between customers. The variation in
appearance can be attributed to the fact that there is no performance standard.
a. STEP 1: Measuring - determine what actual performance is, a manager must first get information about
it.
- Most jobs and activities can be expressed in tangible and measurable terms.
- Managers frequently use a variety of sources of information to measure actual performance
HOW TO MEASURE

+ personal observation (time consuming, obtrusive, and subject to personal biases)

e.g. Blanca nods as she watches her new employee as he executes the steps in making
French fries. Her purpose is to make sure he follows the instructions exactly as given.
+ statistical reports (effective for showing relationships)

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 e.g. Andrew prefers to get his performance data in the form of charts and graphs. OR Barry
wants to use a tool that makes the data easy to visualize and is effective for showing
relationships.
+ oral reports (usually provides filtered information which cannot be documented)
e.g. Brenda is always ready with a story to tell about performance in her area. Unfortunately,
Brenda sometimes leaves out important facts and makes statements that cannot be
corroborated.
+ written reports (comprehensive, formal, and easy to file and retrieve)
e.g. At the end of every month, the accounting department submits a balance sheet,
statement of profit and loss, and cash flow statement to the senior management team.
WHAT WE MESURE
- What is measured is probably more critical to the control process than how it’s measured.
- For most managers, using a combination of approaches increases both the number of input sources
and the probability of getting reliable information.
- Some control criteria can be used for any management situation: All managers deal with people -
employee satisfaction, turnover, absenteeism rates, keeping costs within budget.
- Other control criteria should recognize the different activities that managers supervise.
e.g. A manager at a pizza delivery location might use measures such as number of pizzas delivered
per day, average delivery time for orders versus online orders, or number of coupons redeemed.
- Managers should use subjective measures when work activities cannot be expressed in
quantifiable terms.
e.g. Level of satisfaction of patient care in a hospital is a subjective measure most appropriate.
b. STEP 2: Comparing actual performance against the standard - the second step involves determining
the degree of variation between actual performance and the prespecified standard. Some variation is to
be expected. However, managers need to determine the acceptable range of variation.
e.g. At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the end
of every shift, he records the number of pizzas made and the amount of pizza sauce left in inventory => he
can compare the quantity used with the budgeted amount.
Range of variation: The acceptable parameters of variance between actual performance
and the standard.
c. STEP 3: Taking managerial action – managers can choose among three possible courses of action:
do nothing, correct the actual performance, or revise the standards.
* Correct Actual Performance
1. Immediate corrective action corrects the problem at once to get performance back on track.
e.g. "No, James, you must start the timer after you lower the French fry basket into the fryer, not before."
2. Basic corrective action looks at how and why performance deviated before correcting the source of
deviation.
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- If a manager investigates how and why performance has deviated beyond the acceptable
range of variation, and then corrects the source of the deviation.
- Mark recommends that the managers at Statco should identify how and why performance has deviated
beyond the acceptable range of variation, and then correct the source of the deviation.
- Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why the system was
producing unacceptable parts and make a recommendation to fix it.
=> Examples of corrective actions might include changing strategy, structure, compensation plans, training
programs, redesigning jobs, or firing employees.
* Revise The Standard
● Revising standards is an appropriate response if the variance was the result of unrealistic expectations.
● However, revising standards downwards can be troublesome when an employee or work unit falls short
of reaching a goal.
● If they don't meet the standard, their natural response is to attack the standard.
● If the manager believes the standard is fair, they should explain their position, reaffirm their desire for the
employee or work unit to meet the standard, and then take necessary corrective action to turn that
expectation into reality.
➔ Managers could choose to do nothing when the difference between actual performance and
standard performance is low and acceptable.
e.g. The goal for the sales team at the auto dealership was to sell one new car per day every day of
the month. In August the team sold 33 cars. => Nothing. The deviation is insignificant.
➔ If the variance between the standard and the actual result is in the organization's favor, managers
have to need to do anything.
➔ Some control criteria, such as employee satisfaction, can be used for any management situation.
➔ Deviations that exceed the acceptable range of variation become significant and need a manager's
attention.
➔ Managers should consider the standards when measuring the actual performance of employees.
18.3. How organizational and employee performance are measured
1. Organizational Performance
- Performance: The end result of an activity
- Organizational performance: The accumulated results of all the organization’s work activities
e.g. Mr. B's Pizzeria sold an average of 18 pizzas per hour on Saturday night.
2. Measures of Organizational Performance
a. Organizational productivity
- Productivity (efficiency) is the amount of goods or services produced divided by the inputs
needed to generate that output.
e.g. The plant superintendent wants to know the value of products per man hour.

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 + Output is measured by the sales revenue an organization receives when goods are sold (selling
price × number sold).
+ Input is measured by the costs of acquiring and transforming resources into outputs.
e.g. Buchanan Welders cannot raise its prices in its highly competitive industry. Using less expensive inputs
is an option if Buchanan wants to increase its productivity.
- If a manager wanted to increase the ratio of outputs to inputs, she should increase the
productivity.
- The easiest way to increase organizational productivity is increasing the price of outputs.
- The operations manager suggests a hike in the prices to improve productivity. However, the
marketing manager rules this option out. Because the industry is characterized by intense
competition.
b. Organizational effectiveness
Effectiveness: a measure of how appropriate organizational goals are and how well an organization is
achieving those goals.
e.g. Festus believes organizational effectiveness is more important to the organization than organizational
productivity.
c. Industry and company rankings: Rankings are determined by pecific performance measures.
3. Controlling for Employee Performance
DELIVERING EFFECTIVE PERFORMANCE FEEDBACK
- Managers need to provide their employees with feedback so that the employees know where they
stand in terms of their work.
- When giving performance feedback, both parties need to feel heard, understood, and respected
USING DISCIPLINARY ACTIONS
- Progressive disciplinary action: An approach to ensure that the minimum penalty appropriate to the
offense is imposed.
- Disciplinary action is helpful to the organization because employees know what to do to correct their
undesirable behavior
- Most employees do their jobs well and never require disciplinary action.
18.4.1. TYPES of control

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 1. FEEDFORWARD - takes place before a work activity is done => the most desirable type of control
to prevent anticipated problems since it takes place before the actual activity.
- Charles wants to prevent problems before their occurrence.
- An organization hires additional personnel as soon as they get a major contract.
- Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller
than the print specification so it changes drill bits after 95,000 uses.
2. CONCURRENT
- takes place while a work activity is in progress.
- When control occurs while the work is being performed, management can correct problems before they
become too costly.
- Management by walking around - when a manager is out in the work area interacting directly with
employees.
- The launch went off without a hitch but the space capsule directed toward Neptune has
veered off course. NASA sends signals to change the direction of flight to get it back on track.
- Devon interacts directly with the employees in the work area to identify problem areas. He
works with various departments to obtain a holistic idea of the business (direct supervision).
- Contours, Inc., quality auditors pull one part from the production line every 15 minutes.
These parts are measured against the production print; any variation that is beyond acceptable
levels is reported to the machine operators.
3. FEEDBACK - takes place after a work activity is done
- The most popular type of control relies on feedback
- The damage had already occurred even though the organization corrected the problem once it was
discovered.
- Feedback can enhance motivation. People want to know how well they’re doing and feedback provides
that information.
- 2 advantages:
+ gives managers meaningful information on how effective their planning efforts were.
+ shows little variance between standard and actual performance indicates that the planning was generally
on target
- Donald discovers major flaws in the packaging department. He consults the production
manager and formulates control measures to improve packaging.
- The information provided by the customer who brings a product in for warranty work.
- Contours, Inc., uses its budget for labor hours as a feedback tool.
18.4.2. TOOLS for measuring organizational performance
1. Financial Controls
● One of the primary purposes of every business firm is to earn a profit. In pursuit of this objective,
managers need financial controls
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 ● They might perform several financial ratio tests to ensure that sufficient cash is available to pay
ongoing expenses, that debt levels haven't become too high, or that assets are being used
productively.

LIQUIDITY measure an organization's ability to meet its current debt obligations

● Current ratio
e.g. Elaine wants to analyze her company's ability to meet its current debt obligations.
● Acid test
LEVERAGE examines the organization's use of debt to finance its assets and its ability to meet the interest
payments on the debt.
e.g. Ruth, a financial consultant, determines her client's leverage ratio to be very high. => Payback part of
its debts to improve the ratio help the firm reduce its leverage ratio.
● Debt to assets
● Times interest earned
ACTIVITY measure how efficiently the firm is using its assets
● Inventory turnover
● Total asset turnover
PROFITABILITY
● Profit margin on sales
● Return on investment measures how efficiently and effectively the firm is using its assets to
generate revenue
2. Information Controls
● Information - critical to monitoring + measuring an organization's performance.
● Managers need the right information at the right time and in the right amount.

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 ● Inaccurate, incomplete, or delayed information can seriously impede (cản trở) organizational
performance.
● Managers need information about the standards in order to be able to compare actual performance
with the standard.
● They rely on information to help them determine if deviations are acceptable.
● They also rely on information to help them develop appropriate courses of action.
e.g. Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts and
invoices to his accountant so the accountant can file Bill's taxes in April. Only then does Bill know if his
business has been profitable. Bill could benefit from a(n) management information system (MSI)
- When data is analyzed and processed, it become information
- Raw, unanalyzed facts are called data
3. Balanced Scorecard
● This is a performance measurement that was introduced as a way to evaluate organizational
performance from more than just the financial perspective.
● The balanced scorecard is a performance measurement tool that looks at four areas -financial,
customer, internal processes, and people/innovation/growth assets that contribute to a company's
performance.
● According to this approach, managers should develop goals in each of the four areas and measure to
determine if these goals are being met.
● The balanced scorecard approach to performance measurement was introduced as a way to
evaluate organizational performance from more than just the financial perspective
● Balanced scorecard approach is a performance measurement tool that looks at four areas that
contribute to a company's performance.
4. Benchmarking of Best Practices
● Benchmarking is the search for the best practices among competitors or noncompetitors that lead to
their superior performance.
● Benchmarking can be used to help identify specific performance gaps and potential areas for
improvement.
● Benchmarking should identify various benchmarks, which are the standards of excellence against
which to measure and compare.
● It provides an insight into the best practices in the industry and helps managers evaluate
organizational performance.
● Benchmarking allows organizations to learn from others.
● Managers should consider the standards when measuring the actual performance of employees
● Sensitive, proprietary, and confidential information must be controlled lest it fall into the hands of people
who wish to harm the organization, its customers and/or employees.
● Benchmarks for a company cannot be created based on the previous performance of the company.
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 FINAL
Tự luận
1. innovation (kĩ): 2 chapter
2. HR process
3. reason why company have to change
4. internal communication in a company
5. business ethic
6. corporate and competitive strategy
7. conflict management: team, group, môn HR
8. motivation
9. how can company become international (những cách khác nhau)
10. 12 bias (chapter 2)
11. control process
12. 6 organizing principles (kĩ)
13. performance
14. company and national culture (đừng lộn nha pa)

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