management
the attainment of organizational goals in effective and efficient manner through planning, organizing, leading, and controlling organizational resources
4 functions of management
planning, organizing, leading, and controlling
planning
identifying goals for future organizational performance and deciding on the tasks and use resources needed to attain them
organizing
assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization
leading
use of influence to motivate employees to achieve organizational goals
controlling
monitoring employees' activities determining whether the company is moving towards its goals and making the necessary corrections
organization
social entity that is goal directed and deliberately structured
organizational effectiveness
the degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do
organizational efficiency
amount of resources used to achieve a goal
3 managerial skills
conceptual, human-ability, and technical
conceptual managerial skill
ability to see the organization as a whole system and the relationships among its parts
human-ability managerial skill
ability to work with and through other people and to work effectively as a group member
technical managerial skill
understanding of proficiency in the performance of specific tasks
3 managerial roles
informational, interpersonal, and decisional
informational managerial role
activities used to maintain and develop an info network
interpersonal managerial role
relationships with other that are related to human skills
decisions managerial role
events about which the manager must make a choice and take action
3 forces that effect managing in the external environment
social, political, economic
social forces
aspects of a culture that guide and influence relationships among people
political forces
influence of political and legal institutions on people and organizations
economic forces
availability, production, and distribution of resources in a society
most current management perspective
humanistic perspective
classical perspective
takes a rational, scientific approach to management and seeks to turn organizations into efficient operating machines
scientific management
emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity
frank gilbreth
pioneered time and motion study and arrived at many of his management techniques independent of frederick w. taylor
subfields of classical perspective
scientific management, bureaucratic organizations, and administrative principles
bureaucratic organizations
emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal record keeping, and separation of management and ownership
administrative principles
focuses on total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling
frederick w. taylor
improving productivity meant management would have to change and that the manner of change could only be determined by scientific study
gantt chart
measures and plans work
criticisms of scientific management
(1) did not appreciate the social context of work and higher needs of workers
(2) did not acknowledge variance among individuals
(3) tended to regard workers as uniformed and ignored their ideas and suggestions
founder of bureaucratic organizations
max weber
factors of bureaucratic organizations
(1) manage organizations on impersonal, rational basis
(2) organization depends on rules and records
human relations movement
idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control
mary p. follett
proposed humanistic approach to management: contrast to scientific management: importance of people rather than engineering techniques
chester bernard
adopted humanistic view on management with mary follett
theory x
people inherently dislike work so they must be coerced to work; the average worker wants to be directed, avoids responsibility, has little ambition, and wants security above all
Theory y
doesn't inherently dislike work, don't need to be coerced, seeks responsibility and excel in problem solving/creativity
benchmarking
comparing your product to that of the competition
open system
organization draws resources from the external environment and releases goods and servies
closed system
organization is self-sufficient and sends goods and sends goods to the external environment
internal environment
includes elements within the organization's boundaries
external environment
includes elements outside the organization's boundaries
dimensions of the general environment
international, technological, sociological, economic, legal-political, and natural
international dimension
includes events originating in foreign countries, as well as new opportunities for US companies in foreign countries
technological dimension
includes scientific and technological advances in a specific industry, as well as in society at large
sociological dimension
represents the demographic characteristics as well as the norms, customs, and values of the general population
economic dimension
represents the general economic health of the country or region in which the organization operates
legal-political dimension
includes government regulations at the local, state, and federal level, as well as political activities designed to influence company behaviors
natural dimension
all elements that occur naturally on earth, including plants, animals, and rocks as well as resources such as air, water, and climate
task environment
sectors that have a direct relationship with the organization
factors of task environment
customers, competitors, suppliers, and labor market
labor market factor of task environment
people in the environment that can be hired to work
boundary-spanning roles
link to and coordinate the organization to key elements in the external environment
culrure
set of key values, beliefs, understandings, and norms shared by members of an organization
factors of culture
symbols, stories, heroes, and slogans
symbols
an object, act, or event that conveys meaning to others
stories
narrative based on true events and is repeated frequently and shared among employees
heroes
figure who exemplifies the deeds, character, and attributes of a strong culture
slogan
a phrase that succinctly expresses a key corporate value
significance of corporate culture
embodies what it takes to succeed in corporate culture
values
an employees principles or standards of behavior: defines the corporate culture
major challenge in international/global environment is knowing the _____
culture
importance of global markets
bring economic benefits to the home country
4 stages of globalization
exporting, outsourcing (offshoring), licensing, and direct investment
exporting
companies maintain production facilities carried out in other countries
outsourcing (offshoring)
work activities carried out in other countries that have cheap labor
licensing
corporation (licencor) makes certain resource available to companies (licensee) in other countries
direct investment
high level of involvement and company manages and controls assets
international management
management of business operations conducted in more than one country
international environment factors
socioculture, economic, and political/legal
sociocluture factor
social values/beliefs, religion, education, time orientation
economic factor
eco-development, infrastructure, exchange rates, and per capita income
political/legal factor
political risk, tariffs, terrorism, and laws/regulations
elements of hofsteade, global projects
power distance, uncertainty avoidance, individualism/collectivism, and masculinity/feminism
power distance element
high power distance means people accept inequality in power among institutions, organizations, and people
uncertainty avoidance element
high uncertainty avoidance means people are uncomfortable with uncertainty
individualism/collectivism element
(1) individualism- individuals take care of themselves
(2) collectivism- individuals look after each other
european union
create powerful single market in europe with the creation of the euro
ehtnocentric
natural tendency of people to regard their own culture as superior
ethics
code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong
moral agent
someone capable of acting with reference to right and wrong
approaches of ethical decision making
utilitarian, individualism, moral rights, justice, and practical
individualism approach
contends that acts are moral when the individuals' best long-term interests
moral rights approach
human beings have fundamental rights and liberties that cannot be taken away
justice approach
(1) distributive- different treatment of people shouldn't be based on arbitrary characteristics
(2) procedural- rules should be administered fairly
(3) compensatory- compensated for wrongs done
practical approach
bases decisions on prevailing standards of the profession and the larger society, taking the interest of all stockholders into account
social responsibilities
economic, profit-maximizing, legal responsibility, ethical responsibility, and discretionary responsibility
economic responsibility
produce goods and services that society wants to maximize profits for its owners and shareholders
profit-maximizing view
corporation should be operated on a profit-orientation basis, with its sole goal to increase profits so long as it stays within the rules
legal responsibility
what society deems as important with respect to appropriate corporate behavior
ethical responsibility
behaviors that are not necessarily codified into law and may not serves the corporations
discretionary responsibility
voluntary and is guided by a company's desire to make social contributions not mandated by economics, laws, or ethics
stakeholders
any group or persons within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions (employees, customers, and stockholders)
whistle blowing
employee disclosure of illegal, unethical, or illegitimate practices on the employer's part