Management 200

Chapter 1
Points to Remember
Define the term Management
Management: The planning, organizing, leading, and controlling of human and other
resources to achieve organizational goals effectively and efficiently
Know & understand the four managerial tasks
Planning: Process of identifying and selecting appropriate goals and courses of action
o Includes 3 steps, collectively called a Strategy
Deciding which goals to pursue
Deciding what course of action to adopt to retain those goals
Deciding how to allocate organizational resources
o Choose appropriate organizational goals and courses of action to best achieve
those goals
Organizing: Structuring working relationships so organizational members interact and
cooperate to achieve organizational goals
o Establish task and authority relationships that allow people to work together to
achieve organization goals
o Organizational structure: A formal system of task and reporting relationships that
coordinates and motivates organizational members so that they work together to
achieve organizational goals.
Leading: Articulating a clear vision and energizing and enabling organizational members
so they understand the part they play in attaining organizational goals
o The outcome of leadership is highly motivated and committed workforce
o Motivate, coordinate, and energize individuals and groups to work together to
achieve organizational goals
Controlling: Evaluating how well an organization is achieving its goals and taking action
to maintain or improve performance
o Outcome of the control process is the ability to measure performance accurately
and regulate efficiency and effectiveness
o Controlling helps managers evaluate how well they are performing the other 3
tasks of managementplanning, organizing, and leading
o Establish accurate measuring and monitoring systems to evaluate how well the
organization has achieved its goals
What is an Organization
What are the typical levels of management in an organization?
First-line manager: Responsible for the daily supervision of nonmanagerial employees
Middle manager: Supervises first-line managers and is responsible for
finding the best way to use resources to achieve organizational goals

Top manager: Establishes organizational goals, decides how departments

should interact, and monitors the performance of middle managers
CEO
What are the managerial skills necessary to be an effective manager?
Conceptual skills: Ability to analyze and diagnose situation and
distinguish between cause and effect
Human skills: Ability to understand, alter, lead, and control the behavior
of other individuals and groups
Technical skills: The job-specific knowledge and techniques required to
perform an organizational role
o Core competency: Specific set of skills, abilities, and experiences
that allows one organization to outperform its competitors
o
Know & understand the terms:
Restructuring: Downsizing an organization by eliminating the jobs of large numbers of
top, middle, and first-line managers and non-managerial employees
o Modern IT has increased each persons ability to process information and make
decisions more quickly and accurately
Outsourcing: Contracting with another company, usually abroad, to have it perform an
activity the organization previously performed itself
o Increases efficiency because it lowers operating costs, freeing up money and
resources that can be used in more effective ways
Empowerment: The expansion of employees knowledge, tasks, and decision-making
responsibilities
o Companies use their reward systems to promote empowerment
o IT is being increasingly used to empower employees because it expands
employees job knowledge and increases the scope of their job responsibilities
Self-Managed Team(s): A group of employees who assume responsibility for organizing,
controlling, and supervising their own activities and monitoring the quality of the goods
and services they provide
o Assume many tasks and responsibilities previously performed by first-line
managers, so a company can better utilize its workforce
o
What does it mean if/when we say that a company has a Competitive Advantage
Competitive Advantage: The ability of one organization to outperform other
organizations in producing goods or services more efficiently and effectively
Companies can win or lose the competitive race depending on their speed and flexibility
Innovation: Process of creating new or improved goods and services or developing better
ways to produce or provide them
Managing a Diverse Workforce these 4 words are very important in todays
Environment
History of Management Thought Appendix A, pgs. 35-42

Management 200
Chapter 2
Points to Remember
The Big Five Personality Traits
No single trait is right or wrong
1 Extraversion: Tendency to experience positive emotions and moods and feel good about
oneself and the rest of the world
o Managers high in extraversion tend to be sociable, affectionate, outgoing and
friendly
o Managers low in extraversion tend to be less inclined toward social interaction
and have a less positive outlook
2 Negative Affectivity: Tendency to experience negative emotions and moods, feel
distressed, and be critical of oneself and others
o It is more pleasant to work with a manager who is low on negative affectivity
o Cultivating good working relationships is an important asset to a manager
3 Agreeableness: Tendency to get along well with others
o Managers high in agreeableness are likable, affectionate and care about others
o Managers with low agreeableness may be distrustful, unsympathetic,
uncooperative and antagonistic
4 Conscientiousness: Tendency to be careful, scrupulous, and persevering
o Managers high in this trait are organized and self-disciplined
o Managers low in this trait lack direction and self-discipline
5 Openness to experience: Tendency to be original, have broad interests, be open to a wide
range of stimuli, be daring and take risks
o Managers who are high on this trait are likely to take risks and be innovative in
their planning and decision making
Locus of Control
Internal vs. External
Internal locus of control: Tendency to locate responsibility for ones fate within oneself
o Own actions and behaviors are major and decisive determinants of job outcomes
o It helps to ensure ethical behavior and decision making in an organization
External locus of control: Tendency to locate responsibility for ones own fate in outside
forces and to believe that ones own behavior has little impact on outcomes
Needs for Achievement, Affiliation and Power
Need for achievement: Extent to which an individual has a strong desire to perform
challenging tasks well and to meet personal standards for excellence
Need for affiliation: Extent to which an individual is concerned about establishing and
maintaining good interpersonal relations, being liked, and having other people get along
Need for power: Extent to which an individual desires to control or influence others

Attitudes, Job Satisfaction, Organizational Commitment

Attitudes: Capture managers thoughts and feelings about their specific jobs and
organizations
Job satisfaction: Collection of feelings and beliefs that managers have about their current
jobs
o Managers high on job satisfaction like their jobs, feel that they are being fairly
treated, and believe that their jobs have many desirable features
Organizational commitment: Collection of feelings and beliefs that managers have about
their organization as a whole
Emotional Intelligence
Emotional Intelligence: Ability to understand and manage ones own moods and
emotions and the moods and emotions of other people
o Helps managers carry out their interpersonal roles of figurehead, leader, and
liaison
o For managers, understanding the feelings of subordinates is central to developing
strong interpersonal bonds with them
Organizational Culture How it influences an innovative approach to managing
Shared set of beliefs, expectations, values, norms, and work routines that influence how
individuals, groups, and teams interact with one another and cooperate to achieve
organizational goals
When organizational members are intensely committed to a shared system of values,
beliefs, and routines, a strong organizational culture exists
Managers determine and shape organizational culture through the kinds of values and
norms they promote in an organization

Management 200
Chapter 3
Points to Remember
Define Ethical Dilemma

Ethical Dilemma: Quandary people find themselves in when they have to decide if they
should act in a way that might help another person or group even though doing so might
go against their own self-interest

Stakeholders every organization has them!

Stakeholders: People and groups that supply a company with its productive resources and
so have a claim on and stake in the company
o Stakeholders can directly benefit or be harmed by an organizations actions, the
ethics of a company and its managers are important to them

Rules for Ethical Decision Making

1
2
3
4

Utilitarian Rule: An ethical decision should produce the greatest good for the greatest
number of people
Moral Rights Rule: An ethical decision should maintain and protect the fundamental
rights and privileges of people
Practical Rule: An ethical decision should be one that a manager has no hesitation about
communicating to people outside the company because the typical person in a society
would think the decision is acceptable
Justice Rule: An ethical decision should distribute benefits and harm among people in a
fair, equitable, and impartial manner

Reputation

Reputation: Esteem or high repute that individuals or organizations gain when they
behave ethically
A safeguard against unethical behavior

Sources of an organizations Code of Ethics

Societal ethics: The values and standards embodied in a societys laws, customs,
practices, and norms and values
Professional ethics: The values and standards that groups of managers and workers use
to decide how to behave appropriately

Individual ethics: Personal values and standards that result from the influence of family,
peers, upbringing, and involvement in significant social institutions

Diversity
Components of . . .

Managerial Roles in Diversity Management

Managers have more influence than rank-and-file employees

When managers commit to diversity, it legitimizes diversity management efforts of others
Diverse organizational members can be a source of competitive advantage when managed
efficiently
Variety of points of view and approaches to problems and opportunities that diverse
employees provide can improve managerial decision making

Sexual Harassment
Legally-recognized types of harassment

Quid pro quo: Asking or forcing an employee to perform sexual favors in exchange for
some reward or to avoid negative consequences
Hostile work environment: Telling lewd jokes, displaying pornography, making sexually
oriented remarks about someones personal appearance, and other sex-related actions that
make the work environment unpleasant

Steps any organization should take to reduce this harassment

Develop and clearly communicate a sexual harassment policy endorsed by top

management
Use a fair complaint to investigate charges
of sexual harassment
When it has been determined that sexual harassment has taken place, take corrective
action as soon as possible
Provide sexual harassment education and training to all organizational members,
including manager

Management 200
Chapter 5
Points to Remember
Types of Decision Making

Programmed: Routine, virtually automatic decision making that follows established rules
or guidelines
o Managers have made these decisions many times before
o Define rules or guidelines to follow based on experience with past decisions
o Little ambiguity involved
Non-Programmed: non-routine decision making that occurs in response to unusual,
unpredictable opportunities and threats
o In the absence of decision rules manages may rely on their intuition
Intuition: feelings, beliefs, and hunches that come readily to mind
o Require little effort and information gathering
o Result in on-the-spot decisions

Classical & Administrative Models

Bounded Rationality
Incomplete Information
Satisficing: Searching for and choosing an acceptable, or satisfactory response to
problems and opportunities, rather than trying to make the best decision
Steps in the Decision-Making Process (6)
1. Recognize the need for a decision.
Sparked by stimuli such as changes in the organizational environment
Managers who actively pursue opportunities to use these competencies create the
need to make decisions.
2. Generate alternatives.
Managers must develop feasible alternative courses of action
i. Failure to properly generate and consider different alternatives sometimes
leads to bad decisions
ii. It is hard to develop creative alternative solutions
3. Assess alternatives.
Key to a good assessment of the alternatives
i. Define the opportunity or threat exactly
ii. Specify the criteria that should influence the selection of alternatives

4. Choose among alternatives.

Rank the various alternatives and make a decision
i. There is a tendency for managers to ignore critical information, even when
available
5. Implement the chosen alternative.
Managers must now implement the selected course of action
Implementing the chosen course of action would require making subsequent
decisions
Managers should take up the responsibility for making the follow-up decisions
necessary to achieve the goal
6. Learn from feedback.
Compare what happened to what was expected to happen
Explore why any expectations for the decision were not met
Derive guidelines that will help in future decision making
Group Decision-Making

In most organizations, group decision-making is superior to individual efforts

Groupthink:
o Pattern of faulty and biased decision making that occurs in groups
o Members strive for agreement among themselves at the expense of accurately
assessing information relevant to a decision
Devils Advocate: Critical analysis of a preferred alternative to ascertain its strengths and
weaknesses before it is implemented.

Group Creativity

Brainstorming: group members share their ideas and generate alternatives

Nominal Group Technique: Decision-making technique in which group members write
down ideas and solutions, read their suggestions to the whole group, and discuss and then
rank the alternatives
Delphi Technique: Decision-making technique in which group members do not meet
face-to-face but respond in writing to questions posed by the group leader

Characteristics of Entrepreneurs

High on the personality trait of openness to experience

Are daring and willing to take risks
Have an internal locus of control
Possess a high level of self-esteem
Have a high need for achievement

Have a strong desire to perform challenging tasks and meet high personal standards of
excellence

Intrapreneurship

Product Champions: A manager who takes ownership of a product and provides the
leadership and vision that take a product form the idea stage to the final customer
Skunkworks: A group who is deliberately separated from normal operations to encourage
them to devote all their attention to developing new products

Management 200
Chapter 6
Points to Remember

Planning & Strategy

Mission Statement: Broad declaration of an organizations purpose that identifies the

organizations products and customers and distinguishes the organization from its
competitors
Formulating Strategy: Analyze current situation and develop strategies
The Planning Process

Where are we now

Where do we want to be in the future?
Decide how to move it forward to reach that future state

Reasons why Planning is important

Planning is necessary to give the organization a sense of direction and purpose

Planning is a useful way of getting managers to participate in decision making about the
appropriate goals and strategies for an organization
A plan helps coordinate managers of the different functions and division of an
organization to ensure that they all pull in the same direction and work to achieve its
desired future state
A plan can be used as a device for controlling managers within an organization

Levels of Planning within organizations

Corporate: A plan of action to manage the growth and development of an organization so

as to maximize its long-run ability to create value
Business/Division: A plan of action to take advantage of favorable opportunities and find
ways to ways to counter threats so as to compete effectively in an industry
Functional: A plan of action to improve the ability of an organizations departments to
create value
Time horizons of Planning

Long term: plans are usually 5 years or more

Intermediate: plans are 1 to 5 years
Short-term: plans are less than 1 year

Formulating Strategy

SWOT Analysis: Planning exercise in which managers identify:

o Organizational strengths and weaknesses
o Environmental opportunities and threats
Low Cost vs. Differentiation
o Low-Cost strategy: Driving the organizations total costs down below the total
costs of rivals
o Differentiation strategy: Distinguishing an organizations products form the
competitors products on dimensions such as product design, quality, or after-sales
service
o Focused low-cost: Serving only one segment of the overall market and trying to
be the lowest cost organization serving that segment
o Focused differentiation: Serving only one segment of the overall market and
trying to be the most differentiated organization serving that segment
Diversification: Expanding a companys business operations into a new industry in order
to produce new kinds of valuable goods or services
Standing Plans vs. Single-use

Standing Plans:
o Used in situations when programmed decision-making is appropriate
o When the same situations occur repeatedly, managers develop policies, rules, and
standard operating procedures (SOPs)
Single-use Plans:
o Developed to handle non-programmed decision-making in unusual or one-of-akind situations
Programs: Integrated sets of plans for achieving certain goals
Projects: Specific action plans created to complete various aspects of a
program

Licensing & Franchising