Chapter 1: Management and Organizations

Transcription

1 MAN 320F Page 3 Chapter 1: Management and Organizations Tuesday, January 15, :42 AM I. II. III. Why Are Managers Important? a. 3 reasons why i. Managers play an important role in identifying critical issues and crafting responses ii. Managers are critical to getting things done iii. Managers matter to organizations 1) Single most important variable in employee productivity and loyalty 2) Managerial ability important in creating organizational value Who Are Managers and Where Do They Work? a. Who Is a Manager? i. A manager is someone who coordinates and oversees the work of other people so that organizational goals can be accomplished. ii. A manger's job is about helping others do their work iii. Managers are classified as first-line, middle, or top 1) At the lowest level of management, first-line managers manage the work of non-managerial employees who typically are involved with producing the organization's products o servicing the organization's customers. a) Supervisors, shift managers, district managers, department managers, or office managers 2) Middle managers manage the work of first-line managers and can be found between the lowest and top levels of the organization a) Regional manager, project leader, store manager, or division manager 3) At the upper levels of the organization are the top managers, who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. a) Vice president, president, managing director, chief operating officer or chief executive officer b. Where Do Managers Work? i. In organizations 1) An organization is a deliberate arrangement of people to accomplish some specific purpose. 2) Three common characteristics of organizations a) Distinct purpose b) Composed of people c) All organization develop some deliberate structure within which members do their work. What Do Managers Do? a. Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. b. Efficiency refers to getting the most output from the least amount of inputs. i. Efficient use of resources (people, money, equipment, etc) c. Effectiveness is described as "doing the right things"--doing those work activities that will help the organization reach its goals. i. Concerned with the ends, or attainment of organizational goals d. Management functions i. Planning--setting goals and establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities ii. Organizing--arranging and structuring work to accomplish the organization's goals.

2 MAN 320F Page 4 IV. iii. Leading--working with and through people to accomplish goals iv. Controlling--monitoring, comparing, and correcting work performance e. Mintzberg's Managerial Roles and a Contemporary Model of Managing i. Managerial roles refers to specific actions or behaviors expected of and exhibited by a manager. ii. Interpersonal roles are ones that involve people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature 1) Figurehead, leader, and liaison iii. Informational roles involve collecting, receiving, and disseminating information 1) Monitor, disseminator, and spokesperson iv. Decisional roles entail making decisions or choices. 1) Entrepreneur, disturbance handler, resource allocator, and negotiator. v. As managers perform these roles, Mintzberg proposed that their activities included both reflection and action. vi. Regardless of type of organization--managers perform similar roles vii. Emphasis managers given to various roles change with organizational level 1) Higher levels--disseminator, figurehead, negotiator, liaison, and spokesperson more important 2) Lower-levels--leader role more important viii. How managers influence action and help organizations get things done 1) By managing actions directly 2) By managing people who take action 3) By managing information that propels people to take action ix. Two roles--framing and scheduling f. Management Skills i. Technical skills -- job specific knowledge and techniques needed to proficiently perform work tasks. 1) More important for first-line managers ii. Human skills -- involve the ability to work well with other people both individually and in a group iii. Conceptual skills -- skills managers use to think and to conceptualize about abstract and conceptual situations. 1) Most important to top managers How Is the Manager's Job Changing? a. Importance of Customers to the Manager's Job i. Delivering consistent high-quality customer service is essential for survival and success in today's competitive environment and that employees are an important part of that equation. 1) Because the majority of employees in developed countries work service jobs that directly deal with customers b. Importance of Innovation to the Manager's Job i. "nothing is more risk than not innovating" ii. Innovation means doing things differently, exploring new territory, and taking risks. iii. Usually has remarkable impact on employee attitudes and commitment. iv. Critical to today's organizations and managers c. Importance of sustainability to the Manager's Job i. Emerging in 21st century = managing in a stainable way--concerned with meeting the needs of people without compromising the ability of future generations to meet their own needs. ii. Sustainability has been defined as a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. 1) Moving up in agenda of business leaders and boards of thousands of companies

3 MAN 320F Page 5 Chapter 2: Understanding Management's Context: Constraints and Challenges Monday, January 21, :26 PM I. II. The Manager: Omnipotent or Symbolic? a. Omnipotent view of management--the view that managers are directly responsible for an organization's success or failure. b. Symbolic view of management--the view that much of an organization's success or failure is due to external forces outside c. The Omnipotent View i. The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who overcomes any obstacle in seeing that the organization achieves its goals. ii. Explains turnover among college and professional sports coaches. d. The Symbolic View i. The symbolic view says that a manager's ability to affect performance outcomes is influenced and constrained by external factors. ii. Its unreasonable to expect managers to significantly affect an organization's performance. iii. Other factors affect performance = economy, customers, governmental policies, competitors' actions, industry conditions, and decisions made by previous managers. iv. Called "symbolic" because its based on belief that managers symbolize control and influence. v. Constraints of managerial discretion--organizational environment, organizational culture. The External Environment: Constraints and Challenges a. External environment--those factors and forces outside the organization that affects its performance. b. Factors/Forces: i. Economic 1) Interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages. ii. Demographic 1) Trends in population characteristics: age, race, gender, education level, geographic location, income, and family composition. iii. Political/Legal 1) Federal, state, and local laws. Global laws, laws of other countries. iv. Sociocultural 1) Values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior v. Global 1) Issues associated with the globalization and a world economy c. The Economic Environment i. The economic crisis--"great Recession"--began with turmoil in home mortgage markets in the US when many homeowners found themselves unable to make payments. 1) Caused by: low interest rates for a long period of time, flows in US housing market, etc. ii. Even as global economies began the slow process of recovery, most experts believed that the economic environment facing managers and organizations would not be as it was and would cotinue to constrain organizational decisions and actions. d. The Demographic Environment i. Baby boomers 1) Born between ) Lots of them 3) Significantly affect every aspect of the external environment as they cycle through various life stages. ii. Gen Y 1) Born between

4 MAN 320F Page 6 III. 2) Children of baby boomers 3) Also in large number, and also making its imprint on external environment 4) GEN Y affecting organizational workplaces. iii. Post-Millennials 1) Teens and middle-schoolers 2) igeneration 3) Grown up with a lot of customizable technology iv. Important because Large numbers of people at certain stages in the life cycle can constrain decisions and actions taken by businesses, governments, educational institutions, and other organizations. e. How the External Environment Affects Managers i. Jobs and Employment 1) One of the most powerful constraints managers face is the impact of such changes on jobs and employment--both in poor and good conditions 2) Create challenges for managers who must balance work demands and having enough of the right types of people with the right skills to do the organization's work. 3) Affect how jobs are created and managed a) Flexible work arrangements are harder when less jobs are available f. Managing Stakeholder Relationships i. Stakeholders--any constituencies in the organization's environment that are affected by an organization's decisions and actions ii. Why should managers care about stakeholders? 1) It can lead to desirable organizational outcomes such as improved predictability of environmental changes, more successful innovations, greater degree of trust among stakeholders, and greater organizational flexibility to reduce impact of change. 2) It is the "right" thing to do b/c organization depends on external groups as sources of inputs and as outlets for outputs. Organizational Culture: Constraints and Challenges a. What is Organizational Culture? i. Personality of organization. Culture influences the way employees act and interact with ech other. ii. Organizational culture has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. iii. Culture is perception iv. Organizational culture is descriptive v. It is shared vi. Dimensions of Orgazational culture 1) IMPORTANT 2) CHART ON PAGE 52 3) KNOW ALL OF THEM FOR TEST b. Strong Cultures i. Strong cultures--those in which the key values are deeply held and widely shared--have a greater influence on employees than do weaker cultures. ii. Organizations with strong cultures, employees are more loyal than in organizations with weak cultures. iii. Strong cultures are associated with high organizational performance. c. Where Culture Comes From and How It Continues i. Philosophy of Organization's Founders--->Selection Criteria-->Top management Organization's Culture d. -->Socialization ii. Organizations help employees adapt to the culture through socialization, a process that helps new employees learn the organization's way of doing things. How Employees Learn Culture i. Stories

5 MAN 320F Page 8 Chapter 9: Strategic Management Thursday, February 07, :00 PM I. II. Strategic Management a. What Is Strategic Management? i. Strategic management--what managers od to develop the organization's strategies ii. Strategies--the plans for how the organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals. iii. Business model--how a company is going to make money 1) Focuses on: a) Whether customers will value what company is providing b) Whether company can make any money doing that b. Why Is Strategic Management Important? i. 3 reasons: 1) It can make a difference in how well an organization performs 2) Managers in organizations of all types and sizes face continually changing situations and they use strategic management process to examine relevant factors and decide what actions to take. 3) Organizations are complex and diverse. Each part needs to work together toward achieving goals; strategic management helps do this. The Strategic Management Process a. Strategic management process--six step process that encompasses strategic planning, implementation, and evaluation. b. Step 1--Identifying the organization's Current Mission, Goals an Strategies i. Mission--a statement of an organization's purpose c. Step 2--Doing an External Analysis i. Managers do external analysis so they know, for instance, what the competition is doing, what pending legislation might affect the organization, or what the labor supply is like in locations where it operates. ii. Examining: economic, demographic, political/legal, sociocultural, technological and global components to see trends and changes. iii. Opportunities--positive trends in the external environment d. Step 3--Doing an Internal Analysis i. Provides important information about an organization's specific resources and capabilities. ii. Resources--an organization's assets that are used to develop, manufacture, and deliver products to its customers. iii. Capabilities--an organization's skill and abilities in doing the work activities needed in its business iv. Core competencies--the organization's major value-creating capabilities that determine its competitive weapons v. Identify organizational strengths/weaknesses 1) Strengths--any activities the organization does well or any unique resources that it has 2) Weaknesses--activities the organization does not do well or resources it needs but does not possess. vi. SWOT analysis--an analysis of organization's strengths, weaknesses, opportunities, and threats 1) Combination of external and internal analyses e. Step 4--Formulating Strategies

6 MAN 320F Page 9 III. IV. i. Formulate strategies, and consider the realities of external environment and their available resources and capabilities. f. Step 5--Implementing Strategies i. After formulation, implement strategies properly. g. Step 6--Evaluating Results i. Measure how effective strategies have been in helping organization reach its goal and adjust if necessary. Corporate Strategies a. What is Corporate Strategy? i. Corporate strategy--one that determines what business a company is in or wants to be in, and what it wants to do with those businesses. b. What Are the Types of Corporate Strategy? i. Growth strategy--a corporate strategy that's used when an organization wants to expand the number of markets served or products offered, either through its current business(es) or through new business(es). 1) Concentration = focus on primary line of business and increase in number of products offered or markets served in primary business, 2) Vertical integration = a) Backward--becomes its own supplier so it can control its input b) Forward--becomes its own distributor and is able to control its outputs 3) Horizontal integration = a company growns by combining with competitors 4) Diversification = a) Related--when a company combines with other companies in different, but related, industries. b) Unrelated--company combines with firms in different and unrelated industries ii. Stability strategy--a corporate strategy in which an organization continues to do what is currently doing 1) Doesn't grown, doesn't fall behind iii. Renewal strategy--a corporate strategy designed to address declining performance 1) Retrenchment--short-run renewal strategy used for minor performance problems. Helps organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again 2) Turnaround strategy--cut costs and restructure operations. For more major problems. Measures more extensive. c. How Are Corporate Strategies Managed? i. SKIP--using tool she mentioned in class. Don't have to know. Competitive Strategies a. Competitive strategy--an organizational strategy for how an organization will compete in its business b. Strategic business unit (SBU)--the single independent businesses of an organization that formulate their on competitive strategy c. The Role of Competitive Advantage i. Competitive advantage--what sets an organization apart, its distinctive edge ii. Quality as a Competitive Advantage 1) Emphasis on quality 2) Can be a way for an organization to create a sustainable competitive advantage iii. Sustaining Competitive Advantage 1) Organization must be able to sustain advantage 2) Effectively exploiting resources and developing core competencies iv. Porter's Five Forces Model 1) Threat of new entrants 2) Threat of substitutes

7 MAN 320F Page 10 V. 3) Bargaining power of buyers 4) Bargaining power of suppliers 5) Current rivalry d. Choosing a Competitive Strategy i. Cost leadership strategy 1) A strategy that will give the organization a competitive advantage, either from having lower costs or by being significantly different form competitors. 2) Low-cost leader is highly efficient a) Doesn't emphasize "frills" ii. Differentiation strategy 1) Competes by offering products that are widely valued iii. Focus strategy 1) Involves a cost advantage (cost focus) or a differentiation advantage in narrow segment or niche iv. If you can't find strategy--you're stuck in the middle v. Functional strategy--strategies used by an organization's various functional departments to support the competitive strategy Current Strategic Management Issues a. Intense global competitive and high performance expectations by investors and customers b. The Need for Strategic Leadership i. Strategies usually developed by top managers ii. Strategic leadership--the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that wil create a viable and valuable future for the organization. iii. Eight key dimensions 1) (chart on page 235) c. The Need for Strategic Flexibility i. Strategic flexibility--the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake. d. Important Organizational Strategies for Today's Environment i. E-business strategies 1) Use to develop a sustainable competitive advantage 2) Cost leader uses to lower costs in variety of ways 3) Differentiator needs to offer products or services that customers perceive and value as unique 4) Focuser targets a narrow market segment with customized products, laders to more customer interaction 5) Clicks and bricks strategy a) Using both online and traditional locations ii. Customer Service Strategies 1) Customer service need strategies that cultivate from top to bottom a) Giving customers what they want, communicating effectively, providing employees with customer service training. iii. Innovation Strategies 1) May Include applying existing technology to new uses a) Managers first decide where the emphasis of their innovation efforts will be. b) Most resource commitment 2) Others depend on product development strategies 3) Focus on process development 4) First mover--an organization that's first to bring a product innovation to the market or t ouse a new process innovation

8 MAN 320F Page 11 Chapter 13: Managing Teams Tuesday, February 05, :21 PM I. II. Groups and Group Development a. What is a Group? i. A group is two or more interacting and interdependent individuals who come together to achieve specific goals. ii. Formal groups--work groups defined by organization's structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. iii. Informal groups--social groups b. Stages of Group Development i. Forming--the first stage of group development in which people join the group and then define the group's purpose. 1) Complete when members begin to think of themselves as part of a group ii. Storming--the second stage of group development characterized by intragroup conflict. iii. Norming--the third stage of group development characterized by close relationships and cohesiveness 1) Strong sense of group identity and camaraderie. 2) Complete when group structure solidifies, and group has assimilated a common set of expectations regarding member behavior. iv. Performing--the fourth stage of group development when the group is fully functional and works on group task v. Adjourning--the final stage of group development for temporary groups during which group members are concerned with wrapping up activities rather than task performance. Work Group Performance and Satisfaction a. External Conditions Imposed on the Group i. External Conditions imposed on groups---organization's strategy, authority relationships, formal rules and regulations, availability of resources, employee selection criteria, performance management system and culture, and general physical layout of group's work space. b. Group Member Resources i. Include: knowledge, abilities, skills, and personality traits. i.e. Interpersonal Skills. ii. Determine what members can do and how effectively they will perform in a group. Also effects how they interact with other group members. c. Group Structure i. Roles 1) Role--behavior patterns expected of someone occupying a given position in a social unit. 2) Roles in group oriented around getting work done or keeping group members happy. 3) A problem that arises is that individuals play multiple roles and adjust their roles to the group to which they belong at the time, however, differing expectations of these roles often often crease role conflicts. ii. Norms 1) Norms--standards or expectations that are accepted and shared by a group's members 2) Dictate things such as work output levels, absenteeism, promptness, and amount of socializing on the job. 3) Negative=group norms can increase an individual's antisocial actions

9 MAN 320F Page 12 iii. iv. v. vi. vii. viii. ix. Conformity 1) Because individuals want to be accepted by groups to which they belong, they're susceptible to pressures to conform. 2) i.e. Asch Experiments (covered in slides) 3) The group often exerts intense pressure on the individual to align his or her opinion to conform to others opinions--groupthink. Status Systems 1) Status--a prestige grading, position, or rank within a group. 2) Group members have no problem placing people into status categories and usually agree about who has high or low status. Group Size 1) A team should be small enough that it can be fed with two pizzas. 2) 5-7 people 3) Large groups are good for getting diverse input. Finding facts. 4) Small groups are better at doing something productive with those facts. 5) Social loafing--the tendency for individuals to expend less effort when working collectively than when working individually Group Cohesiveness 1) Group cohesiveness--the degree to which group members are attracted to on e another and share the group's goal. 2) High cohesiveness & high support=more effective Group Process 1) Processes that go on within a work group such as communication, decision making, conflict management, and the like. Group Decision Making 1) Groups generate more complete information and knowledge 2) Bring diversity of experience and perspectives to the decision process 3) Groups increase acceptance of a solution 4) Disadvantage a) Timely b) Dominant & vocal minority can heavily influence decision c) Groupthink can occur 5) If accuracy, creativity, and degree of acceptance are important, then group decision may work best. Conflict management 1) Conflict--perceived incompatible differences that result in interference or opposition. 2) There views on conflict a) Traditional view of conflict--the view that all conflict is bad and must be avoided b) Human relations view of conflict--the view that conflict is a natural state and inevitable outcome in any group c) Interactionist view of conflict--the view that same conflict is necessary for a group to perform effectively. Can be a positive force. i) Functional conflicts--conflicts that support a group's gals and improve its performance ii) Dysfunctional conflicts--conflicts that prevent a group from achieving its goals 3) Types of Conflicts a) Task conflict--conflict over content and goals of the work i) Low-to-moderate = functional b) Relationship conflict--conflict based on interpersonal relationships i) Almost always dysfunctional

10 MAN 320F Page 13 III. IV. c) Process conflict--conflict over how work gets done i) For this to be functional, it must be minimal x. Group Tasks 1) The impact that group processes have on group performance and member satisfaction is modified by the task the group is doing. It's complexity and interdependence of tasks influence a group's effectiveness. 2) Simple tasks = routine or standardized 3) Complex tasks = novel or non-routine Turning Groups into Effective Teams a. What Is a Work Team? i. Work teams--groups whose members work intensely on a specific, common goal using their positive synergy, individual and mutual accountability and complementary skills. b. Types of Work Teams i. Problem-solving team--a team from the same department or functional area that is involved in efforts to improve work activities or to solve specific problems ii. Self-managed work team--a type of work team that operates without a manager and is responsible for a complete work process or segment iii. Cross-functional team--a work team composed of individuals from various functional specialties iv. Virtual team--a type of work team that uses technology to link physically dispersed members in order to achieve a common goal c. Creating Effective Work Teams i. A team must be harmonious and friendly to be effective ii. Clear Goals 1) Clear understanding of the goal iii. Relevant Skills 1) Composed of competent individuals who have the necessary technical and interpersonal skills to achieve the desired goals while working well together. iv. Mutual Trust 1) Must exhibit intense loyalty and dedication to the team v. Good Communication vi. Negotiating Skills 1) Flexibility requires team members to possess negotiating skills. vii. Appropriate Leadership 1) Effective leaders are important. viii. Internal and External Support 1) Internally, team should have sound infrastructure, i.e. proper training & such 2) Externally, managers should provide team with resources needed to get job done Current Challenges in Managing Teams a. Group Member Resources in Global Teams i. In global teams understanding relationship between group performance and group member resources is more challenging because of the unique cultural characteristics represented by the members. b. Group Structure i. Conformity 1) Asch's finding culture-bound 2) Less problems with groupthink ii. Status 1) Varies between cultures iii. Social Loafing 1) Western bias

11 MAN 320F Page 15 Chapter 14: Understanding Individual Behavior Sunday, February 03, :37 PM I. II. Focus and Goals of Organizational Behavior a. Behavior--actions of people b. Organizational behavior--study of the actions of people at work i. Like iceberg, small visible dimensions and larger hidden portion c. Focus of Organizational Behavior i. Three major areas: 1) Individual behavior--includes such topics as attitudes, personality, perception, learning, and motivation. 2) Group behavior--includes norms, roles, team building, leadership, and conflict. 3) Organizational aspects--structure, culture, and human resource policies and practices d. Goals of Organizational Behavior i. Goals: 1) Explain why employees engage in some behaviors rather than others 2) Predict how employees will respond to various actions and decisions 3) Influence how employees behave ii. 6 important employee behaviors: 1) Employee productivity--performance measure of both efficiency and effectiveness a) Managers want to know what factors will influence efficiency 2) Absenteeism--the failure to show up for work a) Big loss for organizations, have to figure out how to reduce it 3) Turnover--voluntary and involuntary permanent withdrawal from an organization a) Also loss for organization because of he money involved recruiting and training new employees, have to figure out how to reduce it 4) Organizational citizenship behavior--discretionary behavior that is not part of an employee's formal job requirements, but which promotes the effective functioning of the organization. a) i.e. helping others on one's work team, volunteering for extended job activities, avoiding unnecessary conflicts, and making constructive statements about one's group and organization. b) Drawbacks: work overload, stress, and work-family life conflicts 5) Job satisfaction--an employees general attitudes toward his or her job a) Managers have to make sure employees are satisfied so they will do their best work possible 6) Workplace misbehavior--any intentional employee behavior that is potentially harmful to the organizations in four ways: deviance, aggression, antisocial behavior, and violence. a) Have to keep this from happening to stop havoc in any organization Attitudes and Job Performance a. Attitudes are evaluative statements--favorable or unfavorable--concerning objects, people, or events. b. Made up of 3 components: i. Cognitive component--beliefs, opinions knowledge, or information held by a person. ii. Affective component--emotional or feeling part of an attitude. iii. Behavioral component--an intention to behave a certain way toward someone or

12 MAN 320F Page 16 c. d. e. f. something. The term attitude usually refers only to the affective component Most interested in: job satisfaction, job involvement, and organizational commitment. Job Satisfaction i. High=positive attitude towards job ii. Low=negative attitude towards job iii. How Satisfied are Employees? 1) In the US, it's been declining since the 1990s. Only about 45% are satisfied with their job. 2) European countries had higher job satisfaction than the US 3) The global recession has likely had an impact on global job satisfaction rates. iv. Satisfaction and Productivity 1) Correlation between satisfaction and productivity is fairly strong. 2) More satisfied employees = more effective than organizations with fewer satisfied employees. v. Satisfaction and Absenteeism 1) Correlation isn't strong. 2) b/c some organizations with satisfied employees might encourage them to take sick leaves, etc. vi. Satisfaction and Turnover 1) Correlation much stronger 2) Satisfied employees = lower levels of turnover 3) Level of satisfaction is less important in predicting turnover for superior performers because the organization typically does everything it can to keep them vii. Job Satisfaction and Customer Satisfaction 1) In service organizations, customer retention and defection are highly dependent on how frontline employees deal with customers. 2) Employees who have regular contact with customers report that rude thoughtless, or unreasonably demanding customers adversely affect their job satisfaction. viii. Job Satisfaction and OCB 1) There is a modest overall relationship between job satisfaction and OCB. 2) Things that influence individual OCB a) Tempered by perceptions of fairness. b) The type of citizenship behavior a person's work group exhibits 3) Can have positive benefits for organization ix. Job Satisfaction and Workplace Misbehavior 1) Employees who are dissatisfied usually sometimes respond with misbehavior in workplace. Job Involvement and Organizational Commitment i. Job involvement--degree to which an employee identifies with his or her job, actively participates in it and considers his or her job performance to be important to selfworth 1) High = few absences, low resignation rates, higher employee engagement with their work. ii. Organizational commitment--degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in that organization 1) Leads to lower levels of both absenteeism and turnover and is a better indicator of turnover than job satisfaction 2) Perceived organizational support--employees general belief that their organization values their contribution and cares about their well being.