Scientific management Frederick Taylor
Scientific management
1. develop science for each element of individual work. 2. Scientifically select that trait, teach and develop that worker.
3. Cooperate with workers so that all work is done in accordance with scientific principles
4. Divide work an
Bureaucracy as advocated by Max Weber
Jobs based on knowledge and skills, not politics and heredity.
1.Qualification based on hiring
2. Metit based promotion
3.Chain of command
4. Division of labor
5. Impartial application of rules and procedures
6. Record it in writing
7. Separate managers f
Behavioral Management launched by the Hawthorne Studies
Mary Follet: Saw conflict management as a constructive process for attaining organizational goals
Elton Mayo: Hawthorne Studies - supervisor worker relationships influenced productivity more than incentives and work environment.
Chester Barnanrd: manageme
Systems Management advocated by Peter Drucker
companies work best when they are decentralized, corporations tend to produce too many products, hire employees they don't need (when a better solution would be outsourcing), and expand into economic sectors that they should avoid.
Innovation 5
Product/service, process, market, technological, organizational
Efficeincy vs. effectiveness
Efficiency- do things right
Effectiveness- do the right things
The new competitive landscape
Globalization, technological change, knowledge management, collaboration across organizations
Quality: Total Quality Management (TQM)
uses statistics to eliminate defects
continuous improvement philosophy
(kaizen)
preventing defects before they occur, achieving zero defects in manufacturing, designing products for quality. Goal to solve and eradicate from the beginning all quality-related problems
six sigma
the higher the sigman level the lower the amount of variation. sum of all defects. at six sigma, a product or process is defec-free 99.999% of time
Functions of management: Planning, organizing, leading, controlling
systematically making decisions, assembling, stimulate high perform, monitering perform
levels of management: top, middle, frontline
Top managers- resource allocators to institutional leaders
Middle managers- administrative controllers to supportive coaches
Line managers- operational implementers to aggressive entrepreneurs
Managerial skills: Technical, conceptual/decisional, interpersonal
ability to perform a specialized task, ability to identify and resolve promlems for the benefit ot the organization and everyone concerned, and ability to work well with people
General characteristics of managerial work (according to Henry Mintzberg)
Managerial work is characterized by brevity, variety, and fragmentation, and it comes at you at an unrelenting pace
Adaptive cycle and Prospector, Analyzer, Defender, and Reactor strategies
Act evaluate plan
evaluate plan act
plan act evaluate
reactor strategies
Type I Reactor: Poor or Vague Strategy
Type II Reactor: Strategy-Organization Misalignment
Type III Reactor: Strategy-Environment Misalignment
Stakeholders
any group or individual who affect or be affected by the achievement of the activities of an org
Stakeholder management
Creating value by figuring out how the interests of diverse stakeholders intersect
Potential stakeholders of an individual manager
Boss, coworkers, customers, family, community, shareholders, suppliers, media ect.
Key stakeholders of a firm
Employees, customers, suppliers, shareholders ect.
Starbucks stakeholders in mission statement
Programs implemented, 3rd place, fair trade, foundation healthcare, stock purchases, practices program
Stakeholder value vs. Shareholder value
20's then derailed by great depression and WW2
Open system
inputs (suppliers) and outputs (customers)
Competitive environment and macro-environment
Rivals, possible new entrants substitutes, complements
macro- government econ conditions
Competitive intelligence
information that helps managers determine how to compete better
Benchmarking
process of comparing an organizations practices and technologies with that of other companies.
Environmental analysis: Scanning, forecasting, scenario development
Scanning- searching for/sorting through info about the environment
forecasting- method for predicting how variables will change the future.
scenario- narrative that describes a particular set of future conditions.
Environmental adaptation: Adapting, influencing, and changing the boundaries of the environment
decentralizing decision making, Adapt the Organization, Try to Influence the Environment, Change the Boundaries of the Environment
What types of customers shop at Wal-Mart? What impact does Wal-Mart have on its various stakeholders?
Champions Enthusiasts, conflicted, rejuecters.
Globalization 1.0, 2.0, and 3.0
1.0- coutries driven by religion and/or imperialism expanded their reach beyond their existing borders, going global, empire building
2.0- 1800-2000 some multinational companies drove expansion by searching for markets and labor, companies going global
3.
Kenichi Ohmae's predictions about the global economy in his 1984 book, Triad Power
The global economy will be concentrated in North America, Western Europe, and Japan.
The gap between the "haves" and the "have-nots" will increase.
Mega-corporations will become more powerful than some nations.
the five main challenges to sustainable development in the world economy?
Protecting the natural environment
Stabilizing the world's population
Narrowing the gaps between rich and poor countries
Ending extreme poverty
Developing a new approach to global problem solving based on cooperation
How Starbucks is trying to become more efficient and effective in today's global economy
Current challenge: Cut costs by $500 million, close 800+ stores, lay off 4,000+ employees
Strategic actions
Peter Gibbons (supply chain)
Stephen Gillette (Chief Information Officer)
Michelle Gass (advertising)
Laws, ethics, and morality
- What a firm must do
- Standards which the firm sets and agrees to abide by
- Values and principles that the firm's employees and stakeholders believe the firm should uphold and practice
Definitions of business ethics, moral philosophy, and corporate social responsibility
-moral principles and standards that guide behavior in the world of business.
-principles rules and values that people use in deciding what is right and wrong
-obligation toward society assumed by business.
Meaning of "ethical climate" in a firm
in an organization the processes by which decisions are evaluated and made on the basis of right and wrong.
Moral philosophies (universalism, egoism, utilitarianism, relativism)
-the ethical system stating that all people should uphold certain values that society needs to function
-defining acceptable behavior as that which maximises consequences for the individual
-the greatest good for the greatest number
-bases ethical behavio
Kohlberg's model of cognitive moral development: Pre-conventional, conventional, and principled stages
-make decisions based on rewards and punishments
-conform to the expectations of ethical behavior held by society family or peers
-see beyond authority laws and norms and follow their self chosen ethical principles.
Compliance-based and integrity-based ethics programs
-company mechanisms typically designed by corporate council to prevent detect and punish legal violations
-company mechanisms designed to instill in people a personal responsibility for ethical behavior.
Slippery slope
A chain of events that, once initiated, cannot be halted; especially one in which the final outcome is undesirable or precarious.
Pyramid of global corporate social responsibility and performance
be profitable, obey the law, be ethical, be a good global corporate citizen.