Administrative management theory
The management approach of _ was one of the first to recognize that enriching the lives of organizational and community family was just as important as a company making a profit?
Spaulding
What three individuals helped pioneer administrative management theory?
Spaulding, Weber, Fayol
According to Henri Fayol, the major functions of management are:
leading
controlling
organizing
planning
As a pioneer of administrative management, Max Weber contended that bureaucracies were
rational
Frederick Taylor believed that more efficient workers should be paid higher wages than their lower-performing coworkers, a system referred to as the _ system.
differential rate
Today, the word bureaucracy is associated with inflexibility. But to Max Weber, a bureaucracy was an efficient and ideal organization based on principles of _.
logic
Charles Clinton Spaulding, one of the pioneering theorists of administrative management, proposed eight _ of management based in part on his childhood experiences working at his father’s fields.
necessities
The _ studies are credited with drawing attention to the importance of the social nature of workers and the need for good human relations in fostering employee productivity.
Hawthorne
Identify the two theorists who contributed the most to the human relations movement.
Mcgregor (X and Y) and Maslow (hierarchy)
Which approach to management relies upon research in psychology, sociology, anthropology, and economics in order to develop theories about human behavior that can be used to provide practical tools for managers?
behavioral science
Management science is sometimes known as _.
operations research
What are the three viewpoints of the contemporary perspective of management?
systems
contingency
quality-management
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According to the systems viewpoint, what are three types of inputs?
People, Equipment, Money
_ management stresses continuous improvement, employee involvement, learning from customers and employees, and accurate standards for identifying and eliminating problems.
total quality
Deming
constancy of purpose, statistical measurement and lack of variation in process
Juran
fitness for use
what are three examples of demographic forces that can affect an industry
a decline in population size, a rise n church attendance, a decrease in marriage rates
triple bottom line
planet, people, profit
Forward-thinking organizations consider who as their most valuable resource
employees
what are the two functions of the board of directors in a company
set overall strategic goals for the firm
approve salaries of top management
a social audit is a systematic assessment of a companies performance at implementing
socially responsible programs
statements that accurately represents Hurleys views on the most important crisis in business today
companies may think that certain organizations are ethical but that does not mean they should trust them
what is important is that organizations deliver every day on what they promise
in businesses today, there is a crisis of trust
Heather reports to the front desk manager. Heather is responsible for directing the team activities of four cashiers who are responsible for developing a plan to improve customer service. Heather does NOT have authority over other team members, but she provides guidance, instruction, and direction to them. Heather is a(n)
advisory manager
Emma, the marketing manager, is constantly seeking information about her competition while looking online or speaking to people. Emma is playing the __ role.
…
Rochelle, the CEO of a Fortune 500 company, met with business leaders from the local community. Afterwards, she spent time informally answering their questions about the company. In answering these questions, which managerial role was Rochelle playing?
leadership figurehead
A national sales organization has implemented a set of training courses on its intranet, with a link that allows employees to find and share answers to questions that arise with customers. __ is the system that allows the sharing of knowledge and information throughout an organization.
knowledge management
Which of the following jobs in a high-tech company would be considered a “high-touch job”?
traveling sales reps who meet with the owners or managers of electronics stores
You have just taken a job as an entry-level manager for a company that provides rug-cleaning services. The company has a large national presence, with offices in 40 U.S. states. You know you are starting at the bottom of the management ladder, but you hope to grow and rise through the ranks to become a senior manager. What is your likely salary range when you first take the job?
$35,000-$60,000
According to Robert Katz, which three skills do managers develop through education and experience?
technical, conceptual, human
__ refer to interpersonal or people skills needed for success at work.
soft skills
What are the four principal functions of management?
planning, controlling, leading, organizing
Adrianne is a package delivery service manager. She is interested in implementing _, the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers. In this particular case, Adrianne will study the routes that drivers take through a congested to city in order to identify ways that delivery staff can make the most deliveries in each two-hour period.
scientific management
Maslow’s hierarchy of human needs included
physiological, safety, love, esteem, and self-actualization.
Samir does not understand how his manager, Betsy always knows how much of what product to order and how to schedule employee shifts. Which approach would help him?
clues to managers decisions
Paul English of Kayak.com uses new employees as an excuse for altering an existing open-office seating arrangement. English’s action is an application of __ to management.
behavioral science approach
_ believed that quality stemmed from “constancy of purpose,” and that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions.
Deming
The three contemporary management perspectives are the __ viewpoints.
systems, contingency, quality management
Which disciplines does the field of behavioral science include?
psychology, sociology, anthropology, and economics
What is a plan
a document that outlines how goals are going to be met
what is a strategy or strategic goal
a large-scale action plan that sets the long-term goals and direction for an organization
definition of strategic management
a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals
what is the mission statement
expresses the purpose of the organization
reason for being
why are we here
vision statement
clear sense of the future and the actions needed to get there
what do we want to become
where do we want to go
values statement
what the company stands for
core priorities
values employees embody
what the products contribute to the world
Top management does what type of planning
strategic (1-5 years)
middle management does what type of planning
tactical (6-24 mo)
policies and plans, coordinate activities
make decisions
first-line management does what type of planning
operational (1-52 weeks)
direct daily tasks
Danny is participating with other managers in a discussion about what his organization’s goals should be for the next decade. He is participating in:
strategic planning
strategy types for dealing with uncertainty
defenders
prospectors
reactors
analyzers
uncertainty strategy defenders
expert and producing and selling narrowly defined products. don’t take risks
prospectors (uncertainty strategy)
develop new products and seek new markets
analyzers (uncertainty strategies)
let others take risks and then imitate what seems to work best
reactors (uncertainty strategies)
make adjustments when forced by outside forces
Planning/control cycle
2 planning steps:
make the plan, carry out the plan
2 control steps
control direction by comparing the results with the plan, where you can a. correct deviations or b. improve/redo
Project Planning at IDEO
stage 1: definition of problem and assessment
Stage 2: planning
stage 3: execution
stage 4: project is accepted by client
definition of organization (ch 6)
a group of people who work together to achieve some specific purpose
definition of strategic plan
determines where the organization is going in the next 1-5 years
how it going to get there
how it will know it got there
definition of strategic management
process that involves managers from all parts of the organization in the formulation and implementation of strategies
why does strategy matter?
to distinguish yourself: Nordstrom and Ridderstrale
similar, similar, similar
5 steps in strategic management process
Establish the mission and the vision
Assess the current reality
Formulate the grand strategy (strategic, tactical and operational)
Implement the strategy
Maintain strategic control
Step 1 of strategic management process
mission, vision, values
Step 2 of the Strategic Management Process
asses current reality:
where the organization stands internally and externally
what can/should be changed
done by using tools of SWOT, forecasting, benchmarking…
tools used to asses current reality
SWOT, benchmarking, competitive intelligence, forecasting
Step 3 of the Strategic Management Process
Formulate grand strategy
decide growth, stability, or defense
Step 4 of the Strategic Management Process
implementation
execution
Consists of using questioning, analysis, and
follow through in order to mesh strategy with
reality, align people with goals and achieve
results promised
Step 5 of the Strategic Management Process
maintain strategic control
engage people
keep it simple
stay focused
keep moving forward
definition of culture
a set of shared, taken-for-granted implicit assumptions that a group holds that determines how it perceives, thinks and reacts to its various environments
aka corporate culture or personality of the corporation
what determines culture
founders values
industry and business environment
national culture
organization vision and strategies
behavior of leaders
Kotter and Heskett
corporate culture and performance
revenue 166% vs 682%
work force 36% vs 282%
stock price 74% vs 901%
Net income 1% vs 756%
3 levels of understanding culture
observable artifact (dress, office layout, symbols)
espoused values (explicitly stated values and norms)
basic assumptions (underlying actions/assumptions)
Competing Values Framework (CVF)
a spectrum of 4 different cultures that businesses can adopt
clan, create, compete, control
facets of how to learn culture
symbols, stories, heroes, rites + rituals, organizational socialization
in the mary k cosmetic co, the best salespeople receive a pink cadillac in special awards ceremonies. this is an example of
both a symbol and a rite
changing culture
secondary reinforcement mechanisms
primary anchory mechanisms
the behavior of leaders
“leadership and culture are two slides of the same coin”
edgar schein
overall idea of structure and design
a formal system of task and reporting relationships that coordinates and motivates an organizations members so that they can work together to achieve the organization’s goals.
informal definition of structure and design
who reports to whom and who specializes in what work
common elements of organizations
common purpose
coordinated effort
division of labor
hierarchy of authority/unity of command
definiton of organizational design
the process of creating, selecting or changing the structure of an organizaton
approaches to organizational design
simple
functional
divisional
matrix
horizontal
hollow modular
simple structure
has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization
functional structure
people with similar occupational specialties are put together in formal groups
divisional structure
people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions
matrix structure
combines functional and divisional approaches to emphasize project or program teams. you direct people functionally and by project. both horizontal and vertical chains of command
Horizontal Design
teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
Hollow Structure
the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
Modular Structure
a firm assembles product chunks, or modules, provided by outside contractors
Virtual Organization
members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections
virtual structure
a company outside a company that is created “specifically to respond to an exceptional market opportunity that is often temporary”
considerations for creating structure
environment: mechanistic vs organic
differentiation(dispersing and fragmenting) or integration(drawing together)
is link between strategy culture and structure self-sustaining?
Organization design is concerned with:
designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies
types of organizational design
traditional
horizontal
open boundary
Burns and Stalker
mechanistic organization and organic organization
different between modular and hollow structures
Modular: outsourcing peices of a product Hollow: outsourcing processes
Definition of Human Resource Management
the activities managers perform to plan for, attract, develop, and retain an effective workforce
3 ways HR plays into strategic management
mission and vision
establish and grand strategy
formulate strategic plan
other planning steps that involve HR
plan human resources needed
recruit and select people
orient, train and develop
perform appraisals of people
definition of human capital
economic productive potential of employees
knowledge worker
someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor
Social Capital
economic potential for strong trusting and mutually beneficial business relationships
Job analysis
to determine, by observation and analysis, the basic elements of a job
job decription
a summary of the essential functions of the position — what the job holder does, why and how
this is the product of a job analysis
Job specification aka minimum qualifications
a description of the minimum qualifications a person must have to perform the job successfully
Internal Recruiting
candidates are solicited using formal job postings
linked in
organizations career page
online job boards
this type of recruiting doesn’t usually happen with entry-level
External Recruiting
Recruiters: HR employees tasked with staffing open positions
Sourcers: seek out qualified candidates and sell the position to them, then feed them to recruiters
Adv and Disadv with internal recruiting
employees like it
less risks
creates new vacancies
types of interviews
unstructured and sturctured
tests for employment
ability test, personality test
two criteria for employment tests
validity (does it measure what it says it measures)
reliability (consistent outcomes)
three types of compensation
wages + salaries, incentives, benefits
what is onboarding
not orientation! the 30-90 days after orientation. here the employee is integrating and getting familiar (JOB focused)
what is accomplished in orientation
going through policies, handbooks, establishing 401k, etc. core expectations (COMPANY focused)
what is accomplished in job training
education in technical or procedural aspects
measurable growth
what is accomplished in job development
to develop someone into their next role
what is micro-learning
on the ro off the job learning that segments learning into bite-size content enabling the student to master one peice of learning before advancing to anything else
Performance management cycle
define performance
monitor
review
provide consequences
how often should appraisals be done
frequently/monthly, not annually
objective appraisals
based on performance metrics
tangible aspects of performance
very defensible
only tell half the story
360-degree assement
getting feedback from all areas that the employee touches
forced ranking performance review systems
all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve
formal appraisal
specific times throughout the year based on measures established in advance
informal appraisal
conducted casually on an unscheduled basis
other term for downsizing
reduction in force (RIF)
difference between retiring and firing
voluntary vs involuntary
exit interviews
done to gather the opinions of leaving employees to hear about the business, why they left, etc
tends to be more blunt
stay interviews:
formal conversation between manager, the managers, manager ,HR team to discuser emplyees opionions ont he compant
can be sugar coatedSeverance agreement
severance agreement
contract between exiting employee and the organization where terms of separation and other things are formalized
usually inlcudes monetary incentive
basically to make sure there is no critcism in the future
Family and medical leave act
a requirement that employers provide 12 weeks unpaid leave for employees that meet criteria
Fair minimum wage act
federal minimum of 7.25 an hour, state minimums vary
OSHA
minimum health and safety conditions
afforable care act
everyone can afford health insurance
emplyers must provide health insurance for 50+ employees
COBRA
?
equal pay act
everyone must be paid equally for the same job
Civil rights act
EEOC was created from the civil right act to enforce anti-discrimination
definiton of discrimination
suffering a tangible loss due to protected facotrs
definition of adverse impact
an action that is brough upon everyone equally uet unintentionally discriminates against a particualr group of people
this can happen when grading or test systems arent soley focused on merit
disparate treatment
intentional mistreatment
affirmitive action
focus on achieving equal opportunity in an organization or institution
required for government entities or deferal contractors
rrequires inentionality
what makes something unlawful harassment
has to be based on a protected characteristic and creates a hostile work environment (cannot be quid pro quo)
sexual harassment
similar as based on protected characterisitc, but can also by quid pro quo
what are labor unions
organization of employees formed with the intention of protecting and advancing their interests
closed shop
an employer can only hire from a certain labor union (illegal)
union shop
if you are hired, you must become a memeber
