Chapter 1
Management: Attainment of organizational goals in an effective and efficient manner through
planning, organizing, leading, and controlling organizational resources.
Managers have three types of skills:
Human skills - managers ability with and through other people to work effectively as a group
member.
Conceptual skills - the cognitive ability to see the organization as a whole system and the
relationship amongst its parts.
Technical skills - the mastery of methods, techniques, equipment involved in specific functions
such as engineering, manufacturing or finance.
Major Roles of Management
Informational
Monitor – seek and receive information; scan web, periodicals, reports; maintain personal
contacts.
Disseminator – forward information to other organization members; send memos and reports,
make phone calls.
Spokesperson – transmit information to outsiders through speeches, and reports.
Interpersonal
Figurehead – perform ceremonial and symbolic duties such as greeting visitors and signing legal
documents.
Leader – direct and motivate subordinates; train, counsel, and communicate with subordinates.
Liaison -maintain information links inside and outside organization; use email, phone and
meetings.
Decisional
Entrepreneur – initiate improvement projects; identify new ideas, delegate idea responsibility to
others.
Disturbance Handler – take corrective action during conflicts or crises; resolve disputes among
subordinates.
Resource Allocator – decide who gets resources; schedule budget, set priorities.
Negotiator – represent team or department’s interests; represent department during negotiation of
budgets, union contracts purchase.
Management Functions
Set objectives – establish goals for the group and decide what must be done to achieve them.
Organize – divide work into manageable activities and select people to accomplish tasks.
Motivate and communicate – create teamwork via decisions on pay, promotions etc. and through
communication.
Measure – set targets and standards; appraise performance.
Develop people – recognize the value of employees and develop critical organizational assets.
Planning - managers set goals and find ways to attain the goals.
Organizing - assigning responsibility for task accomplishment.
Leading - managers use influence to motivate employees towards task accomplishment.
Controlling - the function that involves monitoring actions to ensure that the organization meets its
goals and making corrections.
Top causes of manager failure
1. Ineffective communication skills and practices. 81%
2. Poor work relationships/interpersonal skills. 78%
3. Person-job mismatch. 69%
4. Failure to clarify direction performance expectation. 64%
5. Failure to adapt and break old habits. 57%
6. Breakdown of delegation and empowerment. 56%
7. Lack of personal integrity and trustworthiness.52%
8. Inability to develop cooperation and teamwork. 50%
9. Inability to lead/motivate others. 47%
10. Poor planning practices/reactionary behavior. 45%
Chapter 2
Culture
Corporate culture: set of key values, beliefs, understandings, and norms shared by members of an
organization.
−Symbols
−Stories
− Heroes
−Slogans
− Ceremonies
Toxic culture: exists when persistent negative sentiments and infighting cause stress,
unhappiness, and lowered productivity among subgroups of employees.
Levels of corporate culture
Visible – culture that can be seen at the surface level.
Artifacts such as dress, office layout, symbols, slogans and ceremonies
Invisible – Deeper values and shared understandings held by organization members.
Types of Culture
Adaptability culture: highly responsive; values the ability to rapidly detect, interpret, and translate
signals from the environment into new behaviors.
Achievement culture: results-oriented; values competitiveness, aggressiveness, personal
initiative, cost cutting, and willingness to work long and hard to achieve results.
Involvement culture: internally focused; values meeting the needs of employees as well as
cooperation and equality.
Consistency culture: stable; values following the rules and thriftiness and rewards a methodical,
rational, orderly way of doing things.
External organizational environment: Task and General.
Task Environment - factors that affect organizations directly and the sectors that conduct daytoday transactions with the organization:
• Customers
• Competitors
• Suppliers
• Labor Market
General Environment - factors that affect organizations indirectly and equally and events do not
directly change day-to-day operations:
Technological dimension: scientific and technological advancements in a specific industry as well
as in society at large
• Advances drive competition and help innovative companies gain market share
• Industries that fail to adapt face decline
Sociocultural dimension – demographic characteristic, norms, customs, and values of
population.
• Important characteristics are geographical distribution, population density, age, and
education levels.
Economic dimension – economic health of the country/region in which the organization operates:
• Consumer purchasing power.
• Unemployment rate
• Interest rate
Legal-political dimension – government regulations at local, state, and federal levels, as well as
political activities.
Natural dimension – all elements that occur naturally on earth, including plants, animals, and
natural resources such as air, water, and climate.
International dimension - Managers must consider the international dimension:
• −Events originating in foreign countries
• −New opportunities for U.S. companies in other countries
• −New competitors, suppliers, and customers
• −New technological, social, and economic trend
Chapter 3
Competitive edge - what sets a company apart from its competitors.
Global mind-set: ability of managers to appreciate and influence individuals, groups,
organizations, and systems that possess different social, cultural, political, institutional,
intellectual, and psychological characteristics.
Exporting: strategy in which the corporation maintains its production facilities within the home
nation and transfers its products for sale in foreign countries.
Global outsourcing (offshoring): engaging in the international division of labor so that work
activities can be done in countries with the cheapest sources of labor and supplies.
Partnerships
• Represent a higher level of involvement in international trade.
• Often the fastest, cheapest, and least risky way to get into global business.
• Joint venture: a company shares costs and risks with another firm, typically in the host
country, to develop new products, build a manufacturing facility, or set up a sales and
distribution network.
Negatives doing business internationally:
Legal-Political Challenges
Political risk: the risk of loss of assets, earning power, or managerial control due to political
changes or instability in a host country.
• Includes internal conflicts such as social unrest, ethnic violence, social activism, and
politically motivated terrorisms and cyberthreats.
• −Also, government actions such as changes in laws, taxes, and other regulations.
Political instability: includes riots, revolutions, civil disorders, and frequent changes in
government.
Sociocultural Challenges
Ethnocentrism: natural tendency of people to regard their own culture as superior and to
downgrade or dismiss other cultural values.
Chapter 7
Mission: the organization’s reason for existence.
Mission statement: a formal and broadly stated definition of purpose that distinguishes the
organization from others of a similar type.
• Provides basis for development of all subsequent goals and plans.
• Often focuses on the market and customers and identifies desired fields of endeavor.
• Can describe company characteristics such as corporate values, product quality, location
of facilities, and attitude toward employees.
Goal: desired future circumstance or condition that the organization attempts to realize.
Plan: blueprint for goal achievement specifying the necessary resource allocations, schedules,
tasks, and other actions.
Planning: determining the organization’s goals and defining the means for achieving them
Strategic goals – official goals; broad statements describing where the organizations wants to be in
the future
Strategic plans – define the action steps by which the company intends to attain strategic goals
▪ Blueprint that defines organizational activities and resource and resource allocations
▪ Tend to be long term.
Tactical goals: the results that major divisions and departments within the organization intend to
achieve.
• Apply to middle management.
Tactical plans: define what major departments and organizational subunits will do to implement
the organization’s strategic plan.
• Tend to be short term.
Operational goals: results expected from departments, work groups, and individuals.
• Precise and measurable.
Operational plans: developed at the lower levels of the organization to specify action plans toward
achieving operational goals and to support tactical plans.
• Goals stated in quantitative terms.
• Schedules are an important component
Chapter 9
Certainty: situation in which all information the decision maker needs is fully available.
Risk: decision has clear-cut goals and good information is available, but future outcomes
associated with each alternative are subject to chance of loss or failure
Uncertainty: goals are known, but information about alternatives and future events is incomplete.
Ambiguity: goals to be achieved or problems to be solved are unclear, alternatives are difficult to
define, and information about outcomes is unavailable
CAP - Models of decision making
Classical model: based on rational economic assumptions and manager beliefs about what ideal
decision making should be.
Normative: how a decision maker should make a decision.
Assumptions:
• Decision maker operates to accomplish known goals; problems are defined.
• Decision maker strives for certainty and gathers information; results are calculated.
• Criteria for evaluation of alternatives are known; selects alternative that maximizes
economic return.
• Decision maker is rational and uses logic; decision maximizes attainment of organizational
goals.
Administrative model: use of a rational decision-making process within the limits of human and
environmental factors.
Assumptions
• Goals are often vague and conflicting.
• Managers often unaware of problems or opportunities
• Rational procedures are not always used; simplistic view of problems.
• Managers’ searches for alternatives are limited.
• Most managers settle for satisficing.
Political Model - Useful for nonprogrammed decisions when conditions are uncertain, information
is limited, and there is manager conflict about goals to pursue or action to take − Resembles the
real environment.
Coalition: informal alliance among managers who support specific goal − Without a coalition,
powerful groups can derail the decision-making process.
Assumptions
• Organizations are made up of groups with diverse interests, goals, and values.
• Information is ambiguous and incomplete.
• Managers do not have the time, resources, or mental capacity to identify all dimensions and
process all information regarding a problem.
• Decisions are the result of bargaining and discussion among coalition members.
The classical model seeks rationality and certainty, the administrative model acknowledges human
limitations, and the political model involves bargaining among different interests.
Chapter 11
Organizational innovation: creation of a new idea, solution, or behavior by an organization
Disruptive innovation: innovations in products or services that typically start small and end up
completely replacing an existing product or service technology for products and consumers.
Reverse innovation: creating innovative low-cost products for emerging markets and then quickly
and inexpensively repackaging them for sale in developed countries.
Product innovation: a change in the organization’s product or service outputs
Process innovation: a change in the organization’s production processes.
Technology change: a change in the organization’s production process
Three innovation strategies for products and processes
• Discovery – the creativity and initiation of new ideas. is the stage where ideas for new products
and technologies are born.
• Horizontal collaboration and open innovation - creating systems and conditions
• Innovative roles and structures - Being sure that the new ideas are being carried out
Communication – the process by which information is exchanged and understood by two or more
people, usually with the intent to influence or motivate behavior. (Managers consider this a critical
skill and a top responsibility
Large-group intervention: brings together participants from all parts of the organization to discuss
problems or opportunities and plan for change
Organization development (OD): planned, systematic process of change that uses behavioral
science techniques to create a positive corporate culture and improve the way people and
departments relate to one another.
Lewin’s Three-Stage Model for Implementing Change.
Three-stage model for implementing change: (Slide 30-31)
− Unfreezing: making individuals aware of problems and motivating them to change
− Changing: individuals experiment with new behavior and learn new skills to use in the workplace
− Refreezing: individuals acquire new attitudes or values and are rewarded for them by the
organization
Chapter 13
Diversity – all the ways in which people differ.
Inclusion – the degree to which an employee feels like an esteemed member of a group in which.
Glass ceiling – an invisible barrier that exists for woman that limits their upward mobility in
organizations.
Coaching: engaging in regular conversations with an employee that facilitates learning and
development by supporting strengths and overcoming obstacles to improve behavior and
performance.
An important aspect of coaching is personal feedback.
Chapter 15
Motivation: the forces either within or external to a person that arouse enthusiasm and persistence
to pursue a certain course of action.
Power: potential ability to influence the behavior of others.
Influence: the effect that a person’s actions have on the attitudes, values, beliefs, or
behavior of others
Hard position power
Legitimate power: power that comes from a manager’s formal position in an organization
and the authority granted by that position.
Reward power: results from the authority to bestow rewards.
Coercive power: stems from the authority to punish or recommend punishment.
Personal soft power
Expert power: power that results from a leader’s special knowledge or skill in the tasks
performed by subordinates.
Referent power: results from characteristics that command subordinates’ identification
with respect and admiration for, and desire to emulate the leader. Influence a leader has
due to their likability.
Situational model - originated with Hersey and Blanchard, focuses a great deal of attention on the
characteristics of followers in determining appropriate leadership behavior.
•
•
•
•
•
Telling (S-1): It involves the leader defining the roles and tasks of the ‘follower’ and supervising
them closely. Communication is largely one-way.
Selling (S-2): While the leader still provides the direction, he or she is now using two-way
communication and providing support that will allow the individual to buy into the process.
Participating (S-3): The leader and follower make decisions together using two-way
communication, and the leader provides less direction. The main role of the leader is
facilitating and communicating.
Delegating (S-4):. Turns over the responsibility for decision making to the individual.
Chapter 16
Types of rewards
Intrinsic rewards: the internal satisfactions and positive feelings that a person receives in the
process of performing a particular action. (Intangible)
Extrinsic rewards: something given by another person, typically a manager; include promotions,
praise, and pay increases. (Tangible)
Effective managers want people to receive both intrinsic and extrinsic rewards.
Herzberg Two-factor theory
Motivators – influence levels of satisfaction and they include:
• Achievement
• Recognition
• Responsibility
•
•
Work itself.
Personal growth
Hygiene factors – influence level of dissatisfaction and they include:
• Working conditions
• Pay and security
• Company policies
• Supervisors
• Interpersonal relationships
Maslow’s hierarchy of needs from lower needs to higher needs are:
1. Physiological needs – heat, air, base salary
2. Safety needs – safe work, fringe benefits, job security
3. Belongingness needs – work groups, clients, coworkers, supervisors.
4. Esteem needs – recognition, approval, high status, increased responsibilities.
5. Self-actualization needs – opportunities for advancement, autonomy, growth, creativity.
Equity theory: focuses on individuals’ perceptions of how fairly they are treated compared to
others.
Chapter 18
Team cohesiveness: the extent to which members are attracted to the team and motivated to
remain in the team.
Work team effectiveness is based on three outcomes:
• Satisfaction: the team’s ability to meet the personal needs of its members and hence
maintain their membership and commitment
• Productive output: performance and the quality and quantity of task outputs as defined by
team goals.
• Capacity to adapt and learn: the ability of teams to bring greater knowledge and skills to
job tasks and enhance the organization’s ability to respond to new threats or opportunities
in the environment.
Team: a unit of two or more people who interact and coordinate their work to accomplish a
common goal to which they are committed and hold themselves mutually accountable.
Size
− Best performing teams range in size from three to six members
Diversity
− A variety of diverse skills, knowledge, and experience produces innovative solutions
Member roles
− Focus on both task performance and social satisfaction
Five Stages of Team Development are:
1. Forming – Orientation, breaking the ice.
2. Storming - conflict, disagreement
3. Norming - establishment of order and cohesion
4. Performing - cooperation, problem solving
5. Adjourning – task completion