CHAPTER 1 ● Manager: someone who coordinates and oversees the work of other people so organizational goals can be accomplished. ○ More about helping others do their work ○ Coordinating the work activities of a team with people from different departments or people outside their departments ○ How managers are classified in organizations - First-line (or frontline) managers: managers at the lowest level of management who manage the work of nonmanagerial employees (sometimes referred as supervisors, shift managers, district managers, department managers or office managers) - Middle managers: managers between the lowers level and top levels of the organization who manage the work of first-line managers. Mainly responsible for turning company strategy into action. (sometimes referred as regional manager, project leader, store manager or division manager) - Top managers: managers at the upper levels of the organization structure who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization (titles such as executive vice president, president, managing director, chief operating officer or CEO) ● Organization: a deliberate arrangement of people to accomplish some specific purpose ○ Has a distinct purpose ○ Composed of people ○ Develop a deliberate structure within which members do their work (may be open or flexible) ● Why are managers important? 1. Organizations need their managerial skills and abilities more than ever in uncertain, complex and chaotic times - Identify critical issues and crafting responses 2. They are critical to getting things done - Create and coordinate the workplace environment and work systems so that others can perform those tasks 3. Managers do matter in organizations - The single most important variable in employee productivity and loyalty is the quality of relationships between employees and their direct supervisors ● - Affect financial performance - Leadership is the single largest influence on employees’ engagement Management: coordinating and overseeing the work activities of others so they are completed efficiently and effectively ● Efficiency: getting the most output from the least amount of inputs/resources (how things get done) ● Effectiveness: doing work activities that will result in achieving goals (attainment of goals) ○ Managers strive for low resource waste (high efficiency) and high goals attainment (high effectiveness) ● Management functions ○ Planning: involves setting goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities ○ Organizing: involves arranging and structuring work to accomplish the organizational goals ○ Leading: involves working with and through people to accomplish organizational goals, i.e. help resolve conflicts ○ ● Controlling: involves monitoring, comparing and correcting work performance Mintzberg Managerial roles ○ Managerial roles: specific actions or behaviors expected of and exhibited by a manager ○ Not looking at a specific person per se, but at the expectations and responsibilities associated with the person in that role ○ Interpersonal roles: involve people and other duties that are ceremonial and symbolic in nature ○ - Figurehead, leader and liaison - For higher levels of organization Informational roles: involve collecting, receiving and disseminating information - Monitor, disseminator and spokesperson ○ Decisional roles: involves making choices - ● ● For higher levels of organization Entrepreneur, disturbance handler, resource allocator and negotiator Included both reflection (thinking) and action (doing) Management skills ○ Technical: job-specific knowledge and techniques needed to proficiently perform work tasks ○ Interpersonal skills: the ability to work well with other people individually and in a group ○ Conceptual skills: the skills managers use to think and to conceptualize about abstract and complex situations REVIEW CHAPTER 1 ● Tell who managers are and where they work. ○ Managers coordinate and oversee the work of other people so that organizational goals can be accomplished ○ Managers work in an organization, which is a deliberate arrangement of people to accomplish some specific purpose ● Explain why managers are important to organizations. ○ Organizations need their managerial skills and abilities in uncertain, complex, and chaotic times. ● ○ Managers are critical to getting things done in organizations. ○ Managers contribute to employee productivity and loyalty. Describe the functions, roles, and skills of managers. ○ Four functions of management: planning, organizing, leading and controlling ○ Mintzberg’s managerial role: ■ Managerial roles: specific actions or behaviors expected of and exhibited by a manager ■ Not looking at a specific person per se, but at the expectations and responsibilities associated with the person in that role ■ Interpersonal roles: involve people and other duties that are ceremonial and symbolic in nature ■ ● Figurehead, leader and liaison ● For higher levels of organization Informational roles: involve collecting, receiving and disseminating information ■ ● Monitor, disseminator and spokesperson ● For higher levels of organization Decisional roles: involves making choices ● Entrepreneur, disturbance handler, resource allocator and negotiator ■ ○ Included both reflection (thinking) and action (doing) Katz’s managerial skills: technical, interpersonal and conceptual ■ Technical: job-specific knowledge and techniques needed to proficiently perform work tasks ■ Interpersonal skills: the ability to work well with other people individually and in a group ■ Conceptual skills: the skills managers use to think and to conceptualize about abstract and complex situations ● Describe the factors that are reshaping and redefining the manager’s job ○ Managers must be concerned with: ■ Customer service because employee attitudes and behaviors play a big role in customer satisfaction ■ Technology as it impacts how things get done in organizations ■ Social media because these forms of communication are becoming important and valuable tools in managing ● ■ Innovation because it is important for organizations to be competitive ■ Sustainability as business goals are developed ■ Employees in order for them to be more productive Explain the value of studying management. ○ The universality of management ○ managers are needed in all types and sizes of organizations ○ The reality of work—you will manage or be managed ○ Significant rewards and challenges REVIEW CHAPTER 2 ● ● Describe the eight steps in the decision-making process ○ Identify the problem ○ Identify decision criteria ○ Weight the criteria ○ Develop alternatives ○ Analyze alternatives ○ Select alternative ○ Implement alternative ○ Evaluate decision effectiveness Explain the four ways managers make decisions ○ Assumptions of rationality ■ The problem is clear and unambiguous ■ A single, well-defined goal is to be achieved ■ All alternatives and consequences are known ■ The final choice will maximize the payoff ○ Satisficing: when decision makers accept solutions that are good enough ○ Escalation of commitment: managers increase commitment to a decision, even when they have evidence it may have been a wrong decision ○ Intuitive decision making: making decisions on the basis of experience, feelings, and accumulated judgment ○ Evidence-based management: a manager makes decisions based on the best available evidence ● Classify decisions and decision-making conditions ○ Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar, and easily defined (structured) ○ Nonprogrammed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. ○ Certainty is a situation in which a manager can make accurate decisions because all outcomes are known ○ Risk is a situation in which a manager can estimate the likelihood of certain outcomes ○ Uncertainty is a situation in which a manager is not certain about the outcomes and can’t even make reasonable probability estimates ○ When decision makers face uncertainty, their psychological orientation will determine whether they follow a: - Maximax choice: maximizing the maximum possible payoff - Maximin choice: maximizing the minimum possible payoff - Minimax choice: minimizing the maximum regret (amount of money that could have been made if a different decision had been made) ● Describe how biases affect decision-making ○ The 12 common decision-making errors and biases: ■ Overconfidence ■ Availability ■ Immediate ■ Representation gratification ■ Randomness ■ Anchoring effect ■ Sunk costs ■ Selective perception ■ Self-serving ■ Confirmation ■ Hindsight ■ Framing ○ It also helps to explain what factors affect the decision-making process, including ■ ■ ■ ● The decision making approach ● Rationality ● Bounded rationality ● Intuition The types of problems and decisions ● Well-structured and programmed ● Unstructured and non-programmed The decision-making conditions ● Certainty ● Risk ● Uncertainty Identify effective decision-making techniques ○ An effective decision-making process: 1. Focuses on what’s important 2. Is logical and consistent 3. Acknowledges subjective and objective thinking and blends analytical and intuitive approaches 4. Requires only “enough” information as is needed to solve a problem 5. Encourages and guides gathering relevant information and informed opinions 6. Is straightforward, reliable, easy to use, and flexible ○ Design thinking: approaching management problems as designers approach design problems ○ Big Data: when tempered with good judgment, it can be a powerful tool in decision making REVIEW CHAPTER 5: SOCIALLY CONSCIOUS MANAGEMENT ● Discuss what it means to be socially responsible and what factors influence that decision ○ Social obligation: (a classical view of social responsibility) a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities ○ Social responsiveness: when a firm engages in social actions in response to some popular social need ○ Social responsibility: a business’ intention, beyond its economic and legal obligations to pursue long-term goals that are good for the society ○ To determine whether organizations should be socially involved can be done by: - Looking at arguments for and against it - To assess the impact of social involvement on a company’s economic performance ● Evaluate the performance of SRI funds vs non-SRI funds A company’s social responsibility doesn’t appear to hurt its economic performance ● Explain green management and how organizations can go green ○ Green management: when managers consider the impact of their organization on the natural environment ○ Different approaches: ■ Light green: doing what is required legally (social obligation) ■ Market approach: organizations respond to the environmental preferences of their customers (social responsiveness) ■ Stakeholder approach: organizations respond to the environmental demand of multiple stakeholder (social responsiveness) ■ Activist or dark green approach: an organization look for ways to respect and preserve the earth and its natural resources (social responsibility) ○ Can be evaluated by: ■ examining reports that companies compile about their environmental performance ■ Looking for compliance with global standards for environmental management (ISO 14000) ■ ● Using the global 100 list of the most sustainable corporations in the world Discuss the factors that lead to ethical and unethical behavior. ○ Ethics: principles, values and beliefs that define right and wrong decisions and behavior ○ Factors that affect ethical and unethical behavior includes: ■ ■ ■ ○ An individual’s level of moral development - Preconventional - Conventional - Principled Individual characteristics - Ego strength - Locus of control Structural variables - Structural design - Use of goals - Performance appraisal system - Reward allocation procedure ■ Organizational culture ■ Issue intensity - Greatness of harm - Immediacy of consequences - Proximity to victims - Concentration of effect Important to recognize any cultural differences and to clarify ethical guidelines for employees working in different global locations ○ Managers should know about the principles of the Global Compact and the Anti-Bribery Convention ● Describe management’s role in encouraging ethical behavior. ○ The behavior of managers is the single most important influence on an individual’s decision to act ethically or unethically) ○ Nonprogrammed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. ○ Specific ways managers can encourage ethical behaviour: ■ Paying attention to employee selection ■ Creating an organizational culture that positively influences ethical behavior ■ Having and using a code of ethics ■ Recognizing the important ethical leadership role they play (what they do is more important than what they say) ■ Making sure that goals and the performance appraisal process don’t reward goal achievement without taking into account how those goals are achieved ■ ● Ethics training and independent social audits Discuss current social responsibility and ethics issues. ○ Ethical leaders also are honest, share their values, stress important shared values, and use the reward system appropriately ○ Managers can protect whistle-blowers (employees who raise ethical issues or concerns) by encouraging them to come forward ○ Social entrepreneurs ⟶ seek out opportunities to improve society by using practical, innovative and sustainable process REVIEW CHAPTER 6: MANAGING CHANGE ● Describe making the case for change ○ Organizational change: any alteration of people of people, structure or technology ○ Change agent: acts as a catalyst and assumes responsibility for the change process ○ External forces: create the need for change including changing consumer needs and wants, new governmental laws, changing technology and economic changes ○ Internal forces: create the need for change including a new organizational strategy, a change in the composition of workforce, new equipment and changing employee attitudes ● Compare and contrast views on the change process. ○ Calm water metaphor: change is an occasional disruption in the normal flow of events and can be planned and managed as it happens ○ White water rapids metaphor: change is ongoing and managing it is a continual process ○ Lewin’s three-step model: change can be managed by unfreezing the status quo, changing a new state and freezing the new behavior ● Classify areas of organizational change ○ Strategy: modifying the approach to ensure the organization’s process ○ Structure: structural components and structural design ● ○ Technology: work processes, methods and equipment ○ People: attitudes, expectations, perceptions and behavior–individual and group Explain how to manage change ○ People resist change because of uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization’s best interest ○ Techniques for reducing resistance to change include: ■ Education and communication to the need of change ■ Participation in the change process ■ Facilitation: giving employees the support they need to implement change ■ Negotiation: exchanging something of value to reduce resistance ■ manipulation and co-optation: exchanging something of value to reduce resistance ■ ● Coercion: using direct threats or force Discuss contemporary issues in managing change ○ ○ Managers lead the change process by: ■ Making organization change capable ■ Understanding own role ■ Giving employees a role in change process Managers must have a strategy for managing cultural change ■ Being positive role models ■ Creating new stories, symbols and rituals ■ Selecting, promoting and supporting employees who adopt new values ■ Redesigning socialization process ■ Changing the reward system ■ Clearly specifying expectations ■ Shaking up current subcultures ■ ○ ● Getting employees to participate in change Managers help employees deal with stress by: ■ Ensuring employees’ abilities match job ■ Improving organizational communication ■ Using a performance planning program ■ Redesigning jobs Describe techniques for stimulating innovation ○ Creativity: the ability to combine ideas in a unique way/to make unusual associations between ideas ○ Innovation: turning the outcomes of the creative process into useful products or work methods ○ ○ ○ Structural variables: ■ Organic-type structures ■ Abundant resources ■ Frequent communication between organizational units ■ Minimal time pressure ■ Support Cultural variables: ■ Accepting ambiguity ■ Tolerating the impractical ■ Keeping external controls minimal ■ Tolerating risk and conflict ■ Focusing on ends, not means ■ Using open-system focus ■ Providing positive feedback ■ Being an empowering leader Human resource variables: ■ High commitment to training and development ■ High job security ■ Encouraging individuals to be idea champions ○ Connection between design thinking and innovation ➝ knowing customers are real people with real problems and converting those insights into usable and real products ● Explain why managing disruptive technology is important. ○ Disruptive innovation exists when a smaller company with fewer resources is able to successfully challenge established incumbent businesses ○ Disruptive innovation presents an asset to organizations that recognize the market potential of the technology. CHAPTER 8: PLANNING AND GOAL-SETTING ● Define the nature and purposes of planning ○ Planning involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities ○ ● The four purposes of planning includes: ■ providing direction ■ reducing uncertainty ■ minimizing waste and redundancy ■ establishing the goals or standards used in controlling Classify the types of goals organizations might have and the plans they use Goals are desired outcomes, while plans are documents that outline how goals will be met. ○ Strategic/operational: strategic apply to the entire organization, operational apply to a particular functional area ○ Long-term (time frame >3 years) or short-term (time frame <1 year) ○ Specific (clearly defined; no room for interpretation) or directional (flexible and set out general guidelines) ○ Single-use (one-time plan designed to meet the needs of a unique situation) or standing (ongoing plans that provide guidance for activities performed repeatedly) ● Compare and contrast approaches to goal-setting and planning. ○ Traditional goal-setting and MBO (management by objectives) ■ Traditional goal setting: goals are set at the top of the organization and then become subgoals for each organizational area ■ Means-ends chain: an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level ■ MBO: process of setting mutually agreed-upon goals and using those goals to evaluate employee performance ○ Six characteristics of well-written goals 1. Written in terms of outcomes 2. Measurable and quantifiable 3. Clear as to time frame 4. Challenging but attainable 5. Written down 6. Communicated to all organizational members that need to know them ○ Five steps of goal-setting 1. Review the organization’s mission 2. Evaluate available resources 3. Determine the goals individually/ with input from others 4. Write down the goals and communicate them to all who need to know them 5. Review results and change goals as needed ○ ● Contingency factors ■ Manager’s level in the organization ■ The degree of environmental uncertainty ■ Length of future commitments Discuss contemporary issues in planning. ○ ○ Planning in dynamic environments ■ Develop plans that are specific, but flexible ■ Planning is an ongoing process Environmental scanning ■ ○ Screening information to detect emerging trends Competitive intelligence ■ Gathering information about competitions that allows managers to anticipate competitors’ actions rather than merely react to them ■ ○ Be careful to prevent ethical or legal issues Business intelligence ■ A variety of data that managers can use to make more effective strategic decisions ■ Digital tools: technology, systems or software that allow the user to collect, visualize, understand or analyze data
