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BOH4M EXAM REVIEW

MANAGING/MANAGEMENT
WHAT IS A MANAGER?
A person who supports and is responsible for the work of others Help people achieve high performance

OUTLINE LEVELS OF MANAGERS


Top managers o Guide the performance of the organization as a whole or one of its major parts o Pay special attention to the external environment o Alert to potential long-run problems and opportunities, future-oriented strategic thinkers who make decisions under competitive and uncertain conditions Middle managers o Oversee the work of large departments or divisions o Work with top managers and coordinate to accomplish organizational objective o Project managers: coordinate complex projects with ask deadlines First-line managers/Team leaders/supervisors/Lower-level o Report to middle managers and directly supervise non-managerial workers o Ensure that work teams/units meet performance objectives

OUTLINE FUNCTIONS OF MANAGERS


Planning: setting performance objectives and deciding how to achieve them Organizing: arranging tasks, people, and other resources to complete the work Leading: inspiring people to work hard to achieve high performance Controlling: measuring performance and taking action to ensure desired results

LIST/DESCRIBE THE 3 MAIN GOALS OF MANAGERS SKILLS


The ability to translate knowledge into action that results in desired performance (skill) Technical: ability to use expertise to perform a task with proficiency (for lower level more than top level) Human skill- ability to work well in co-operation with other people (equal across all levels) Conceptual skils- the ability to think analytically and achieve integrative problem solving (more top level than lower level) Diagnostic skill??

CLASSICAL MANAGEMENT APPROACHES


Scientific management o Frederick Taylor o Maximum profit for the employer o Improve productivity by carefully maximizing time, efficiency, etc through motion study (the science of reducing a task to its basic motions) as pioneered by Gilberth Administrative Principles o Henry Fayol Management can be taught Management is a variety of skills Scalar chain principle: there should be a clear and unbroken line of communication from the top to the bottom in the organization Unity of command principle: each person should receive orders from just one boss Unity of direction principle: one person should be in charge of all activities that have the same performance objectives o Marie Parker Follet Groups were mechanisms through which individuals could combine talents for a greater good Bureaucratic Organization

o o o

Max Weber Bureaucracy: rational and efficient form of organization founded on logic, order, and legitimate authority Clear division of labour, formality, etc.

BEHAVIOURAL MANAGEMENT APPROACHES


Maintains that people are social and self-actualizing Hawthorne Studies o Groups can have positive/negative influence on individual productivity o Hawthorne effect: self-fulfilling prophecy Influenced the human relations movement during 1950s/60s o McGregory Theory X and Y Theory X: people who work are unreliable, should be led Theory Y: people can do work, accept responsibility, can self-direct

MODERN APPROACHES TO MANAGEMENT


Systems o A collection of interrelated parts that function together to achieve a common purpose o Subsystem: smaller component of a larger system o Chester Bernard Co-operation needs to be created Subsystems help others and fulfill organizational goals concurrently Organic?

DECISION MAKING
The process of making choices among alternative courses of action

TYPES OF MANAGERIAL DECISIONS


Decision by lack of response: all other ideas have been discarded by passiveness than critical evaluation Decision by authority rule: leader makes a decision without consultation Decision by minority rule: 2 or 3 dominate the discussion and make a mutually agreeable decision quickly Decision by majority rule: formal voting/poll- drawback: creates winners and losers Decision by consensus:

TEAMS AND TEAMWORK


TEAMS AND TEAMWORK
Teams: group of people who regularly interact to pursue common goals, hold each other mutually accountable Teamwork: the process of people actively working together to accomplish common goals

TRENDS IN THE USE OF TEAMS


Committee: brings people outside of daily job assignment to work in a small team for a specific purpose something narrow, focused, and ongoing Project teams/task forces: bring people together from various parts of an organization to work on common problems on a temporary, not permanent basis, disbands upon completion of goal Cross functional team: members come from different functional units, essential to horizontal integration Employee involvement team: meets on a regular basis to help achieve continuous improvement, applies expertise and attention to continuous improvement o Quality circle: employees who meet periodically to discuss ways of improving work quality Virtual teams: members who work together through computer-based interactions Self-managing work teams: enjoy a high degree of independence and can make decisions independently Effective teams: achieves and maintains high levels of task performance, member satisfaction, and viability for future action

STAGES OF TEAM DEVELOPMENT


Forming: initial orientation/interpersonal testing

Storming: stage of conflict over tasks and working as a tetam Norming: stage of consolidation around task and operating agendas Performing: stage of teamwork and focused task performance Adjourning: stage of task completion and disengagement

L EADERSHIP
Leadership: the process of inspiring others to work hard and accomplish important tasks Visionary leadership- brings to the situation a clear sense of the future and an understanding of how to get there Leadership traits: drive, confidence, creativity, business knowleddge, motivation, flexibility

LEADERSHIP STYLES
Recurring patterns of behaviours exhibited by leaders Important are concern for task and concern for people (task orientation./orientation)

CLASSICAL APPROACHES
Autocratic: task over people Laissez-faire: high group concern Democratic: combination of the two

CONTINGENCY APPROACHES
Fielders Contingency Model o Leadership style is part of personality and therefore cant change o Quality of leader-member relations o Degree of task structure o Amount of position power Hersey-Blanchard o Based on maturity aka readiness o 4 behaviours: Delegating- group takes responsibilities for decisions, low task, relationship Participating- shared ideas, low task, high-relationship Selling- explaining task directions in support, persuasive way high task, high relationship Telling- giving specific instructions, high task, low relationship Houses Path-Goal Leadership Theory o Directive- let subordinates know what is expected o Supportive- make work more pleasant o Achievement oriented- setting challenging goals o Participative- involving subordinates in decision making Vroom Jago o decide alone, consult individually, consult with group, facilitate (group discussion/share problem), delegate Druckers old fashioned leadership o Plain hard work is needed to be a leader Path-Goal Leadership Theory o Managers should use leadership styles that fit situational needs

C OMMUNICATION
COMMUNICATION PROCESS
Process of sending and receiving symbols with meanings attached to them Sender encodes intended meaning through a message/channel to a receiver who decodes it and sends feedback

EFFECTIVE COMMUNICATION
Intended meaning is fully understood by the receiver Efficient communication: occurs at minimum cost in terms of resources expended

COMMUNICATION BARRIERS

Noise: anything that interferes with the communication process Poor choice of channels o Channel is the medium through which a message is conveyed o Written, spoken o Channel richness: the capacity of a communication channel to carry information effectively Failure to recognize non-verbal signals Physical distractions Status effects o Filtering: intentional distortion of information to make it appear favourable to the recipient

MANAGEMENT BY WANDERING AROUND (MBWA)


Managers spend time outside of their offices to talk with workers of all levels 360 degree feedback: views of bosses, peers, and subordinates in performance appraisals

PERCEPTION
Process through which people receive, organize, and interpret information from the environment Perception exerts its influence through attribution which is the process of developing explanations for events o Attribution error: overestimates internal factors and underestimates external factors as influences on someones behaviour (someone blaming another thing instead of themselves) o Self-serving bias: blaming external factors for failures and explaining success by internal causes Perceptual tendencies and distortions o Stereotypes o Halo effects: when one attribute is used to develop an overall impression of a person or situation o Selective perception: tendency to define problems from ones own point of view o Projection: the assignment of personal attributes to other people

C ONFLICT M ANAGEMENT
Disagreement over issues of substance/emotional antagonism Substantive conflicts: involves disagreements over goals, resources, rewards, policies, procedures, and job assignments Emotional conflicts: results from feelings of anger, distrust, dislike, fear, and resentment as well as personality clashes Functional conflict- constructive and helps task performance Dysfunctional conflict: destructive and hurts task performance Caused by: o Role ambiguities o Resource scarcities o Task interdependencies o Structural differentiation (differences in organization structures/characteristics of people staging them) o Unresolved prior conflicts Conflict resolution the removal of the substantial/emotional reasons for conflict

CONFLICT MANAGEMENT STYLES


Co-cooperativeness: desire to satisfy another partys needs and concerns Assertiveness: the desire to satisfy ones own needs and concerns Five conflict management styles: o Lose-lose conflict Avoidance Accommodation o Win-lose conflict Competition Compromise o Win-win conflict: Collaboration

P LANNING

THE PLANNING PROCESS


Objectives: identify specific results/desired outcomes Plan: statement of action steps to be taken in order to accomplish the objectives o Define your objectives o Know where you stand o Develop premises regarding future conditions o Analyze and choose among action alternatives o Implement the plan and evaluate results

BENEFITS OF PLANNING
Improves focus/flexibility o Organization with focus: does what it knows best o Individual with focus: knows where he/she wants to go o Organization with flexibility: adapts to shifting circumstances o Individual with flexibility: adjusts career plans to fit new and developing opportunities Improces action orientation Improves coordination o Means-end chain, lower level objectives help accomplish higher-level ones Improves time-management Improves control

TYPES OF PLANS
Short range plans: one year or less Intermediate: one to two years Long range plans: three or more years into the future Strategic plans: set broad, comprehensive, long-term action directions Operational plans: identifies activities to implement strategic plans o Production, financial, facilities, marketing, human resources Policies and procedures o Policy: standing plan that sets broad guidelines o Procedure: sets exactly what should happen in specific situations Budgets and Projects o Budget- single-use plans that commit resources to activities, projects or programs Fixed- fixed amount for specific purpose Flexible- allows for allocation to vary in proportion with various levels of activity Zero-based: deals with every new budget period as if it were new (no guarantee of renewal) o Projects- one time activities that have clear beginning and end points o Project management: involves making sure that activities required to complete a project are fulfilled

PLANNING TOOLS AND TECHNIQUES


Forecasting: the process of predicting what will happen in the future o Qualitative: using expert opinions o Quantitative: uses mathematical models Contingency Planning- identifies alternate courses of action to take when things go wrong Scenario Planning: identifies alternative future scenarios to make plans and deal with each (long term version of contingency planning) Benchmarking: uses external comparisons to evaluate ones performance o Best Practices: things that lead to superior performance Participatory Planning- Includes everyone in the planning Staff Planners: people employed to help coordinate planning for the organization

S TRATEGIC M ANAGEMENT
STRATEGY

Comprehensive action plan that identifies long term direction for an organization and guides resource utilization to accomplish goals with sustainable competitive advantage Strategic intent: focuses and applies organizational energies on an unifying and compelling goal Strategic management: process of formulating and implementing strategies o Oligopoly environment: contains a few players who compete against one another o Environment of hypercompetition: several players compete against one another o Strategic formulation: the process of creating strategies o Strategic implementation: the process of allocating resources and putting strategies into action

STRATEGY FORMULATION
SWOT o Identify core competencies: special strength that gives and organization a competitive advantage Porters Five Forces o Industry competition o New entrants o Suppliers o Customers o Substitute products Porters Generic Stratgies o Differntiation: organizations makes its product seems different from competition (cola/pepsi) o Cost leadership- direct attention towards cost minimization to operate more efficiently (Presidents Choice Cola) o Focused differentiation- find a niche/offer a completely unique product (Canada Dry) o Focused cost leadership- find a niche and offer the lowest cost (red cherry pop) BCG Matrix o Analyzes business opportunities according to market growth rate and market share Stars: high market share/high business growth Cash cows: high market share/low business growth Question marks: low market share/high business growth Dogs: low market share/low business growth

STRATEGIES USED BY ORGANIZATIONS


Levels of Strategy o Corporate strategy: sets long term direction for the whole enterprise o Business strategy: identifies how a division or strategic business unit will compete in its product or service domain o Strategic business unit: major business area that operates with some autonomy o Functional strategy: guides activities within one specific area of operations Growth strategy: involves expansion of the organizations current operations o Concentration: expansion within the same business area o Diversification: growth through the acquisition or investment in new business areas o Vertical Integration: Acquisition of suppliers (backward) or distributors (forward) Restructuring and Divestiture Stratgies o Retrenchment strategies: changes operations to correct weaknesses o Restructuring: reduces the scale/mix of operations Downsizing: decreasing the size of operations Divestiture: sells of parts of the organization to refocus attention on core business areas Global strategies o Globalization strategies: Adopts standardized products/advertising worldwide o Multi-domestic strategy: customizes products and advertising to best fit local needs o Transnational strategy: seeks balance between global operations and responsiveness to local firms Cooperative strategy o Strategic alliance: organizations join together in partnership to pursue an area of mutual interest E-Business o Uses internet to gain competitive advantage o B2B business strategy: uses IT to link organizations vertically in supply chains