BOH4M Final Exam Review
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1 Unit 1: Foundations of Management Four Functions of Management: BOH4M Final Exam Review Management Functions Planning setting objectives and determining what actions should be taken to accomplish them Organizing assigning tasks, allocating resources, and arranging activities to implement plans Controlling measuring work performance, comparing results to objectives, and taking corrective action as needed Leading arousing people s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives Levels and Types of Management Levels of Management: 1) Top Managers responsible for the performance of the organization as a whole or one of its larger parts 2) Middle Managers in charge of relatively large departments or divisions 3) Team Leaders / Supervisors in charge of small work groups of non-managerial workers Types of Management: 1) Line Managers responsible for work activities that directly affect outputs 2) Staff Managers use technical expertise to advise and support the efforts of line workers 3) Functional Managers responsible for a single area of activity 4) General Manager responsible for complex units that include many functional areas Katz s Essential Managerial Skills Which managerial skills are most important at each level of management? 5) Administrators work in public and nonprofit organizations
2 Management Theories Traditional: 1) Scientific Management / Motion Studies Analyze and design jobs to be as efficient as possible by eliminating wasted motion, time, effort, etc. Behavioural: 1) Organization as Community Organization is a cooperating community of managers and workers that help each other to achieve common goals 2) Hawthorne Studies Social and human concerns are keys to productivity and individuals need special attention to perform as expected 2) Administrative Principles Clearly set rules that everyone in the organization has to follow 3) Bureaucracy A highly structured organization with set roles within a strict hierarchy 3) Maslow s Theory of Human Needs Humans have different levels of needs and managers should use these as motivators 4) Theory X and Theory Y Theory X assumes workers are irresponsible, don t like to work, lack ambition, resist change, and prefer to be led by others Theory Y assumes workers are creative, willing to work and accept responsibility, capable of self-control and self-direction 5) Theory of Adult Personality Managers should accommodate mature adult personalities by increasing task responsibility, increasing task variety, and use participative decision-making Maslow s Hierarchy of Needs How can managers use each level to motivate its workers?
3 Business Ethics Four Alternative Ethical Views: 1) Utilitarian View of Ethics greatest good to the greatest number of people 2) Individualism View of Ethics primary commitment is to one s long-term self-interests 3) Moral-Rights View of Ethics respects and protects the fundamental rights of all people 4) Justice View of Ethics fair and impartial treatment of people according to rules and standards Cultural Relativism vs. Cultural Universalism: 1) Cultural Relativism ethical behaviour is always determined by a cultural context 2) Cultural Universalism behaviour that is unacceptable in one s home environment should not be acceptable anywhere else Criteria for Evaluating CSR: Corporate Social Responsibility
4 Corporate Social Responsibility Strategies: 1) Obstructionist meets only economic responsibilities 2) Defensive meets economic and legal responsibilities 3) Accommodative meets economic, legal, and ethical responsibilities 4) Proactive meets economic, legal, ethical, and discretionary responsibilities ********** Unit 2: Planning What is benchmarking? Benchmarking Using external and internal comparisons to better evaluate current performance and identify possible actions for the future Competitive Advantage What are the key attributes that allow organizations to gain competitive advantage? Cost and quality Knowledge and speed Barriers to entry Financial resources Competitive Advantage What is competitive advantage? Operating with an attribute or set of attributes that allows an organization to outperform its rivals Goal Setting Great goals are SMART: Specific target key results Measurable results can be assessed Attainable challenging yet realistic Referred to keep on the task at hand Timely linked to specific due dates
5 SWOT Analysis Porter s Five Forces Model
6 Unit 3: Organizing and Controlling Functional Structure Organizational Structures Divisional Structure Matrix Structure Structure People with similar skills and performing similar tasks are grouped together into formal work units Use works well for small organizations producing few products or services Structure People are grouped together to work on the same product or process, serve similar customers, and/or are located in the same area or geographical region Use common in complex organizations Structure Combines functional and divisional structures to gain advantages and minimize disadvantages of each Use commonly used in multinational corporations Advantages: Disadvantages: Advantages: Disadvantages: Advantages: Disadvantages: Economies of scale High-quality technical problem solving In-depth training and skill development Difficulty determining responsibilities Break down in cooperation Flexible in responding to environmental changes Clear delegation of responsibilities Improved coordination Easier to restructure Duplication of resources and efforts across divisions Competition across divisions Emphasis on divisional goals over organizational goals Better cooperation across functions Improved decisionmaking Better customer service Improved strategic management Two-boss system leads to power struggles Two-boss system creates task confusion and priority conflicts Increased costs
7 Job Design Alternatives Job Simplification employs people in clearly defined and specialized tasks with narrow job scope Job Rotation increases task variety by periodically shifting workers between jobs involving different task assignments Job Enlargement increases task variety by combining into one job two or more tasks previously done by separate workers Job Enrichment increases job depth by adding work planning and evaluating duties normally performed by the supervisor What factors influence job satisfaction? Experienced meaningfulness of work Experienced responsibility for the outcomes of the work Knowledge of actual results of work activities What are the 5 core characteristics that influence job performance? Skill variety Task identity Task significance Autonomy Feedback from the job itself Initial Stages in Developing a Quality Workforce Orientation set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization Socialization the process of influencing the expectations, behaviours, and attitudes of a new employee in a way considered desirable by the organization Maintaining a Quality Workforce How does work-life balance influence your performance as a student at MISA?
8 Performance Appraisal Methods How could Behaviourally Anchored Rating Scale (BARS) be used to evaluate employee performance? Labour-Management Relations In what ways can unions and managers make things difficult for each other?
9 Unit 4: Leading Types of Power Position Power Based on a manager s official status in the organization s hierarchy of authority Personal Power Based on the unique personal qualities that a person brings to leadership situation Sources of Position Power: 1) Reward Power capable of offering something of value Sources of Personal Power: 1) Expert Power capacity to influence others because of one s knowledge and skills 2) Coercive Power capable of delivering punishment or withholding positive outcomes 3) Legitimate Power organizational position or status confers the right to control those in subordinate positions 2) Referent Power capacity to influence others because they admire you and want to identify positively with you 3) Relational Power ability to function well as part of a team working toward a common goal Leadership Traits and Responsibilities What are some common leadership traits? Drive Self-confidence Creativity Cognitive ability Business knowledge Motivation Flexibility Honesty Integrity What is visionary leadership? A leader who brings a clear and compelling sense of the future to any situation, as well as an understanding of the actions needed to get there successfully How do effective leaders empower others through servant leadership? Provide information Assign more responsibility Increase authority Demonstrate trust
10 Leadership Behaviours What are the two basic dimensions of leadership behaviour? Task Concerns: Plans and defines the work to be done Assigns task responsibilities Sets clear work standards Urges task completion Monitors performance results People Concerns: Acts warm and supportive toward followers Develops social rapport with followers Respects the feelings of followers Is sensitive to followers needs Shows trust in followers Classic Leadership Styles Blake-Mouton s Leadership Grid: Classic Leadership Styles: Autocratic (Authority-Obedience Manager) emphasizes work over people, keeps authority and information within the leader s tight control, and acts in a unilateral commandand-control fashion Human Relations (Country Club Manager) emphasizes people over work Laissez-faire (Impoverished Manager) shows little concern for task at hand, lets the group make decisions, and acts with a do the best you can and don t bother me attitude Democratic (Team Manager) committed to task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop skills and competencies
11 Fiedler s Contingency Model: Contingency Approaches to Leadership Hersey-Blanchard Situational Leadership Model:
12 House s Path-Goal Leadership Model: Directive Leadership Supportive Leadership Achievement- Oriented Leadership Participative Leadership Communicate expectations Make work pleasant Set challenging goals Involve subordinates in decision making Give directions and schedule work Treat group members as equals Expect high performance levels Consult with subordinates Maintain performance standards Be friendly and approachable Emphasize continuous improvement Ask for subordinates suggestions Clarify leader s role Show concern for subordinates wellbeing Display confidence in meeting high standards Use subordinates suggestions Use directive leadership when job assignments are ambiguous Use supportive leadership when worker selfconfidence is low Use achievementoriented leadership when task challenge is insufficient Use participative leadership when performance incentives are poor Vroom-Jago Leader-Participation Model:
13 According to Vroom-Jago, a leader should use authority-oriented decision methods when: The leader has greater expertise to solve a problem The leader is confident and capable of acting alone Others are likely to accept and implement the decision Little or no time is available for discussion According to Vroom-Jago, a leader should use grouporiented and participative decision methods when: The leader lacks sufficient information to solve a problem by himself/herself The problem is unclear and help is needed to clarify the situation Acceptance of the decision and commitment by others is necessary for implementation Adequate time is available for true participation What is involved in a psychological contract? Perception & Personality What kind of things can you do to inspire a positive influence of how others perceive you? Dress to convey favourable appeal Flatter others to generate positive feelings When conversing, make eye contact and smile Display a high level of energy What are the big five personality traits? 1) Extroversion the degree to which someone is outgoing, sociable, and assertive 2) Agreeableness the degree to which someone is goodnatured, cooperative, and trusting 3) Conscientiousness the degree to which someone is responsible, dependable, and careful 4) Emotional Stability the degree to which someone is relaxed, secure, and unworried 5) Openness the degree to which someone is curious, receptive to new things, and open to change
14 Maslow s Hierarchy of Human Needs: Extrinsic Reward Theories of Motivation Deficit Principle a satisfied need is not a motivator of behaviour Progression Principle a need at one level does not become activated until the next lower-level need is satisfied Alderfer s ERG Theory: Existence Needs desires for physiological and material wellbeing Relatedness Needs desires for satisfying interpersonal relationships Growth Needs desires for continued psychological growth Frustration-Regression Principle an already satisfied lower level need becomes reactivated when a higher-level need is frustrated
15 Herzberg s Two-Factor Theory: McClelland s Acquired Needs Theory: Need for Achievement Desire to do something better or more efficiently, to solve problems, or to master complex tasks Prefer work that: involves individual responsibility for results involves achievable but challenging goals provides feedback on performance Need for Power Desire to control other persons, to influence their behaviour, or to be responsible for other people Prefer work that: involves control over other persons has an impact on people and events brings public recognition and attention Need for Affiliation Desire to establish and maintain friendly and warm relations with other persons Prefer work that: involves interpersonal relationships provides for companionship brings social approval
16 Team Roles for Managers Supervisor serving as the appointed head of a formal work unit Network Facilitator serving as a peer leader and network hub for a special task force Participant serving as a helpful contributing member of a project team External Coach serving as external convenor/sponsor of a problem-solving team staffed by others What are the seven deadly sins in meetings? People arrive late, leave early, and don t take things seriously The meeting is too long People don t stay on topic The discussion lacks candor The right information isn t available, so decisions are postponed No one puts decisions into action The same mistakes are made meeting after meeting What is the difference between formal and informal groups? Formal Groups Teams that are officially recognized and supported by the organization for specific purposes Specifically created to perform essential tasks Managers and leaders serve linking pin roles Informal Groups Not recognized on organization charts Not officially created for an organizational purpose Emerge as part of the informal structure and from natural or spontaneous relationships among people Include interest, friendship, and support groups Can have positive performance impact Can help satisfy social needs
17 All Units: Management Processes BOH4M Final Exam Review Steps in the Decision-Making Process What are the 5 steps in the decision-making process? Steps in the Control Process What are the 4 steps in the control process? The Life Cycle of a Team What are the 5 stages of team development? 1) Forming initial orientation and interpersonal testing 2) Storming conflict over tasks and ways of working as a team 3) Norming consolidation around task and operating agendas 4) Performing teamwork and focused task performance 5) Adjourning task accomplishment and eventual disengagement Steps in the Planning Process What are the 5 steps in the planning process? 1) Define your objectives. 2) Determine where you stand in relation to your objectives. 3) Develop premises regarding future conditions. 4) Analyze alternatives and make a plan. Steps in the Delegation Process What are the 3 steps in delegation? 1) Assign Responsibility explain tasks and expectations 2) Grant Authority allow others to make decisions and act 3) Create Accountability require others to report back on results 5) Implement the plan and evaluate results.
18 Steps in the Human Resource Planning Process What are the 5 steps in the HR planning process?
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