Chapter One What is Management? Managers and Managing All managers work in organizations Organizations collections of people who work together and coordinate their actions to achieve a wide variety of goals 1-2 What is Management? Four Functions of Management Management The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently Figure 1.2 1-3 1-4 Steps in the Planning Process Organizing 1. Deciding which goals the organization will pursue 2. Deciding what courses of action to adopt to attain those goals 3. Deciding how to allocate organizational resources Involves grouping people into departments according to the kinds of job-specific tasks they perform Managers lay out lines of authority and responsibility Decide how to coordinate organizational resources 1-5 1-6 1
Leading Controlling Leadership involves using power, personality, and influence, persuasion, and communication skills It revolves around encouraging all employees to perform at a high level Outcome of leadership is highly motivated and committed workforce The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness Managers must decide which goals to measure 1-7 1-8 Managerial Skills Building Competitive Advantage Conceptual skills The ability to analyze and diagnose a situation and distinguish between cause and effect. Human skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical skills Job-specific skills required to perform a particular type of work or occupation at a high level. Competitive Advantage ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors 1-9 1-10 Building Blocks of Competitive Advantage Chapter Two The Evolution of Management Thought Figure 1.6 1-11 2
F.W. Taylor and Scientific Management Administrative Management Theory Scientific Management The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Administrative Management The study of how to create an organizational structure that leads to high efficiency and effectiveness. 1-13 1-14 Weber s Principles of Bureaucracy Fayol s Principles of Management Division of Labor: allows for job specialization. Authority and Responsibility Unity of Command Line of Authority Centralization Unity of Direction Equity Order Figure 2.2 1-15 1-16 Behavioral Management Theory Behavioral Management The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. The Hawthorne Studies Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. Worker productivity was measured at various levels of light illumination. 1-17 1-18 3
The Hawthorne Studies Theory X vs. Theory Y Human Relations Implications Hawthorne effect workers attitudes toward their managers affect the level of workers performance Figure 2.3 1-19 1-20 Management Science Theory Quantitative management utilizes mathematical techniques, like linear programming, modeling, simulation and chaos theory Operations management provides managers a set of techniques they can use to analyze any aspect of an organization s production system to increase efficiency Organizational Environment Theory Organizational Environment The set of forces and conditions that operate beyond an organization s boundaries but affect a manager s ability to acquire and utilize resources 1-21 1-22 Contingency Theory Chapter Three Values, Attitudes, Emotions and Culture: The Manager as a Person Figure 2.5 1-23 4
Personality Traits Big Five Personality Traits Personality Traits Particular tendencies to feel, think, and act in certain ways that can be used to describe the personality of every individual Extraversion tendency to experience positive emotions and moods and feel good about oneself and the rest of the world Manager s personalities influence their behavior and approach to managing people and resources Personality traits that enhance managerial effectiveness in one situation may actually impair it in another 1-25 1-26 Big Five Personality Traits Big Five Personality Traits Negative affectivity tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others Agreeableness tendency to get along well with others Conscientiousness tendency to be careful, scrupulous, and persevering 1-27 1-28 Big Five Personality Traits Values, Attitudes, and Moods and Emotions Openness to Experience tendency to be original, have broad interests, be open to a wide range of stimuli, be daring and take risks Values Describe what managers try to achieve through work and how they think they should behave Attitudes Capture managers thoughts and feelings about their specific jobs and organizations. Moods and Emotions Encompass how managers actually feel when they are managing 1-29 1-30 5
Values Emotional Intelligence Terminal Values A personal conviction about life-long goals Instrumental Values A personal conviction about desired modes of conduct or ways of behaving Emotional Intelligence The ability to understand and manage one s own moods and emotions and the moods and emotions of other people. Helps managers carry out their interpersonal roles of figurehead, leader, and liaison. 1-31 1-32 Organizational Culture Factors Affecting Organizational Culture Organizational Culture Shared set of beliefs, expectations, values, norms, and work routines that influence how members of an organization relate to one another and work together to achieve organizational goals Figure 3.9 1-33 1-34 Chapter Four The Nature of Ethics Ethics and Social Responsibility Ethics The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave 1-36 6
Ethical Decision Making Practical Decision Model 1. Does my decision fall within the acceptable standards that apply in business today? 2. Am I willing to see the decision communicated to all people and groups affected by it? 3. Would the people with whom I have a significant personal relationship approve of the decision? Figure 4.3 1-37 1-38 Sources of Ethics Societal Ethics Societal Ethics Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual People behave ethically because they have internalized certain values, beliefs, and norms Figure 4.5 1-39 1-40 Occupational Ethics Occupational Ethics Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities Medical & legal ethics Individual Ethics Individual Ethics Personal standards and values that determine how people view their responsibilities to other people and groups How they should act in situations when their own self-interests are at stake 1-41 1-42 7
Organizational Ethics Approaches to Social Responsibility Organizational Ethics Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders Top managers play a crucial role in determining a company s ethics Figure 4-6 1-43 1-44 Chapter Five Managing Diverse Employees in a Multicultural Environment The Increasing Diversity of the Workforce and the Environment Diversity Dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities 1-46 Major EEO Laws Critical Managerial Roles Insert Table 5.1 Top-management commitment and rewards for the support of diversity are critical ingredients for the success of diversity management initiatives 1-47 1-48 8
The Ethical Imperative to Manage Diversity Effectively Distributive Justice A moral principle calling for the distribution of organizational resources to be based on meaningful contribution that individuals have made and not personal characteristics over which they have no control. The Ethical Imperative to Manage Diversity Effectively Procedural Justice A moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members. 1-49 1-50 Perception Perception Perception The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them. Factors that Influence Managerial Perception Schema An abstract knowledge structure stored in memory that allows people to organize and interpret information about a person, event, or situation Gender Schema Preconceived beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences 1-51 1-52 How to Manage Diversity Forms of Sexual Harassment Steps in Managing Diversity Effectively Secure top management commitment Strive to increase the accuracy of perceptions Increase diversity awareness Increase diversity skills Encourage flexibility Pay close attention to how organizational members are evaluated Consider the numbers Quid pro quo Asking of or forcing an employee to perform sexual favors in exchange for some reward or to avoid negative consequences. 1-53 1-54 9