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Chapter 1 An Overview of MGMT

· Management: A set of activities designed to achieve organizations’ goal by using the available resources effectively and efficiently in a changing environment.

· Organization: Is a group of individuals working together to achieve a common goal.

· Resources: People, equipment, finances, and data used by the organizations in order to achieve their common goal.

· Stakeholders: All the individual that can affect or is affected by the organization’s goals or means of reaching the goal.

· Profit: The gains collected by the company after reaching their goal.

o Gross= total profit – the cost of goods (i.e. sold)

o Net= Total profit – Total cost

· Function of manager:  Planning: The process of deciding a common goal of the organization, and the process of reaching the common goal, Organizing: A set of activities involved in designing jobs for employees, putting together these jobs under department, and developing working environment between everyone within the organization. Leading: Influencing and motivating others activities to reach the common goal, Controlling: Ensuring that everything is going according to the plan to reach the common goal. 

Management Roles: a set of similar activities that serve a specific purpose to the organization. Interpersonal: Involves interacting with others within or outside the organization to gather information to help make decisions within an organization. Figurehead: attending important events.  Liaison: coordinating the production schedule. Leadership: maintaining the status of employee’s work Informational: Working on the data/information collected in implementing in the organization. Activities include reporting, preparing data analysis, briefing, emailing, websites etc. Monitor: making sure everything happening in the company is legal. Disseminator: connection between employees and the organization. Spokesperson: Representation of the organization (for consumers). Decisional: Dealing with the allocation of resources. Entrepreneur: Decimal. Disturbance handler: work when there is a change in the external environment Resource allocator: distribution of the resources available to different departments. Negotiator: Reaching agreements with different groups within the organization, and also with other agencies and the company

· Management Skills: Interpersonal Skills: Communication, listening, taking control/responsibility. Technical Skills: having the specific knowledge and ability to work on technology, on taxes, on accounting systems, human resources etc.  Conceptual Skills: Work on the information the organization has to make accurate decisions in order to reach the goal effectively and efficiently. Job Knowledge: similar to technical skills. Oral communication: Good communication skills. Persuasiveness: while dealing with other companies, or other ideas for the company.  Problem analysis: Ability to come up with solution. Cooperativeness. Tolerance of stress .Negotiation. Assertiveness: Ability to express one’s point of view clearly. initiative: Taking the initiative to come up with ideas, start the process

· Levels of Management: Upper Managers: Work on planning and leading the company, they make decisions (ultimate). Eg: CEO, CFO.  Middle Managers: Control a particular department. Receives orders from upper level, and executes them within a department. Eg: head of HR. Lower Managers: Direct relation with consumers and work on executing the planning decided by above. Eg: Store managers

· Functional Areas of Management:Human Resource: Employees selection, training, and compensation. Marketing: Promoting the organization and its product. Finance: Allocation of money, and where the money should be used. Production and operation: the making of the goods and services (maintains the quality of the product and the procedure of making those products). Information Technology: Maintains and controls technological application.  Sales: Selling the company’s product. Administrative: Overall company. Legal: Making sure the company is not involved in anything illegal. Ethics: Making sure all the process of the company is ethical. CSR: Making sure the organization has a positive impact on society. 

Profit Vs Non-profit Organization:Profit: Main purpose is to make a financial profit

o Non-Profit: Main purpose is not to make financial profit, but to serve a charitable, educational, or literary purpose.

· Jeff Bezos, Amazon:puts his consumers need first, plowing the profit money back to the company (close relation with the customer as we).  despite being in loss he does what the company needs, for instance buying warehouses, removing competition from the market etc. through having a close relationship with his company (every department of the company), he makes sure he is driving the optimum work from each and every employee in the company. Controlling function: making sure everything in the company is going according to the plan. If there is something not satisfying happening, he directly sends an email to the concerned party.

Chapter 4 Business Ethics/Social Responsibility

· Business Ethics: It refers to policies, practices and principles values that are acceptable in an organization.

· The role of ethics in business: Helps to attract customers. It makes employees want to stay with the organization. Attracts other employees

· Some ethical issues in Management:  Discrimination, Harassment, Employee theft, False advertisement, Compliance and governance, Misuse of organization’s resource,  Bribe Fairness and honesty

· The role of… in Ethical behavior: Individual Factor: Based off of one’s’ personal values, they decide what to do, how to do. Organizational Factor: How does an employee perform/achieve goals is shaped by the environment of an organization. Managers sets the standards for employees to maintain ethical behavior. (influence, motivate)Opportunity: Greedy, more success, can lead to unethical behavior for higher profit. It refers to conditions that limit unfavorable behavior (punishment), and reward for favorable behavior.

· Steps for effective ethics and compliance program: in order to develop an ethical culture in an organization: Ethics: Maintenance of culture in the company. Compliance: Rewards for ethical behavior/ punishment for unethical behavior. Code of ethics: Formalized rules and standards that describe the expectations of their employees.

· Corporate Citizenship and dimensions of social responsibility: Corporate Citizenship: The social responsibility of businesses and the extent to which they meet legal, ethical, and economic responsibilities, as established by the shareholder.  Social Responsibility: The obligation a business assumes to maximize its positive impact and minimize its negative impact on society

§ Requirement: it is important for long term profit/ economic survival  Stage1: Financial Viability (economic) Stage 2: Compliance with legal (legal) Stage 3: Ethics, principles and values (ethical) Stage 4: Corporate citizenship (philanthropic)

· Social Responsibility Issue: Employees: compensation and benefits, diversity, occupational benefit, health benefit, employees’ safety, communication. Customer: product safety and quality, customer satisfaction, complaints, truthful sales/promotion, handicapped customer service. Investors: Transparency of financial information, shareholder rights, return/benefits of investment. Environment: following the EPA guide/rules, minimizing energy use, maximizing efficiency, minimizing pollution. Community: public health/safety, corporate citizen, economic contribution. How do Ethics relate to SR: Ethics have a micro effect, whereas SR has a macro effect, ethical behavior leads to impact on society. Ethics: involvement of stakeholders only, SR: affects everyone, even people who are not involved with the organization.

 Volkswagen and Nissan Case: Volkswagen: dubbing of defect device, made emission look less than what it really was. Many societal consequences.Nissan Case: Misuse of the company’s resources by the CEO of the company Mr. Ghosn.

CHAPTER 6 Planning of Strategic MGMT

· The nature and steps in planning: Planning is asset of activities intended to achieve a goal, whether for an entire organization, department or an individual.  Make mission statement: a statement indicates who the organization is, what they do and what they stand for. Assessing the current situation: knowing what the company can do with their current available resources.  Stating goal: three types of goals- different level, long term, mid-term and short term. Assuming the environment: external environment cannot be anticipated

· Types of goals and setting them: Strategic goal: leaders decide, long term effect  Tactical goal: more specific, designed to stimulate actions necessary for achieving strategic goal (changing price, technology change)  Operational goal: helps to perform day to day activity, set by lower level managers

· Strategic management process: All the process an organization undertakes to develop and implement their strategic plan to achieve their goals: Mission Statement and Goal Identification,  SWOT Analysis, Strategy Formulation: done by top management, Strategy Implementation & Evaluation: involvement of the entire organization. Strategic Control: management needs to ensure that it is being followed

· SWOT Analysis: The evaluation of the organization’s internal strengths and weaknesses and the opportunities and threats associated with the business’ external environment. SWOT emphasizes that an organization’s strategy should be built around their own capabilities as well as the environment they are in.

·Flanagan Corporation Case: change in demand by consumers, had to change the strategy of the company accordingly. Goal changed

CHAPTER 8 Designing Jobs, Department and Overall Organization 

· Organization Culture: the adopted shared beliefs, values, norms and rules that the organization uses to implement their vision. Blueprint of the firm- identity of the firm. Culture can be expressed formally or informally:  Formal Relationship: the relationships among positions are connected by the organizational chart. Informal Organization: the relationships among positions are not connected by the organizational chart. Organizational Structure: Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities

· Elements of Organizational Structure:Departmentalization: charts of departments,  Span of control: The actual number of subordinates over which a position has authority. Who all are under you, a number of ppl who directly reports to the next level. Delegation: assigning work and authority to a subordinate with a specific goal stated. Decentralization: increases as companies grow, power is distributed amongst many people. Centralization: Formal decision-making authority is held by a few people, usually at the top. Formalization: rules, procedure, training – standardizing behavior. When there is a change in the environment, then the employees cannot work accordingly. Because they are not trained to work on a different environment.

· Benefit of Centralization: do not need to consult with anyone, faster implementation. Small size do better with centralized power

· Benefit of Decentralization: many ideas, can choose the best input (various different perspectives). Large sized companies do better with decentralized power

· Developing organizational structure: Departmentalization: grouping of related jobs to form an administrative unit- department, area or center. Functional Structure: small company producing one or several closely related goods and services- for instance focusing on marketing, finance etc. Adv: high level of specialization, employees become expert. Dis adv: unhealthy competition with other areas, tired of doing the same thing, no innovation, decrease flexibility. Multidivisional Structure: a group of several divisions that is under the same organization. This usually happens when a firm grows so big that functional structure cannot look after every aspect of the organization. Adv: eases the work of top managers, more perspective. Dis adv: managers feel they are losing power, have own practices, can hide important information.  Matrix Structure: A structure in which members of different functional department within a multidivisional structure organization are chosen to work together temporarily on a specific contract or project. Adv: diff perspective, avoids duplication of function. Dis adv: have to work under two-three managers, have to satisfy everyone, creates confusion. Outsourcing: A structure which does not necessarily produces goods and services, but works with other organizations to produce, distribute and sell products. Eg oil companies

· Two Broader Organizational forms: Mechanistic structures: narrow span of control- centralized. Organic Structure: wider span of control – decentralized. These structures are more competitive, highly complex, and changing all the time.

· CASE: GE – Matrix Structure and multidivisional

CHAPTER 9 Human Resource MGMT

· Human resources management: All the activities that forecasts the number and type of employees an organization will need and then find and develop employees with the necessary skills. Main Activities: developing employee’s skills/ training session, forecasting human capital, recruiting employees, orientation, making sure the employees comply with rules and regulation, promotion, raise.

· Job Analysis KSA: forecasting the demand future demand of employees

· Planning for human resource needs: job analysis, job description, job specification, Publicizing the availability of position

· Recruiting: Internal (recommendation within organization- promotion) and external (applicants) source, and selecting. collecting systematic information from the applicants. using these data to decide whom to select.  Interview. reference checking. select

· Developing the workforce:  Orientation: familiarizing newly hired to the company and its policy, culture, other employees. Training: instructing/ guiding the employees in their job tasks and socializing them into organization’s value, attitude and culture. Professional development: education,

· Assessing performance: testing employees’ ability to work in the company, also done before hiring new employees through various tests. While working, they are assessed on how well they work

· Compensating the workforce: the basis on which organization gives goods, services, or money to its employees in exchange of their work- can also be due to performance appraisal- bonuses, benefit (health, security), salary (determining compensation)

· Workforce diversity: in terms of race, sex, age, education, ability. Diversity improves company’s operation, different perspectives, attracts diverse consumers- profit increases. Also helps employees be more tolerant amongst one another, as they continually interact with ppl from different backgrounds.

CHAPTER 11 Leadership VS Management

· Leadership Vs Management: Leadership is a process of influencing the activities of an individual or a group toward the achievement of a goal. Whereas management is the activities such as planning, organizing, controlling and leading to achieve a goal.

· Leaders and managers: Leaders develop a vision; managers work on implementing and achieving the vision (goal)

· Autocratic, democratic, free rein leaders:Autocratic leaders has control over all the decisions and takes little input from group members. They typically make choices based on their ideas and judgments and rarely accept advice from followers. Democratic leaders encourages members of the group to take a more participative role in the decision-making process. Free rein leaders are hands-off and allow group members to make the decisions. They set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

· Sources of power and examples: Power is the ability of a manager to influence behavior and attitudes of others. leaders can use several sources of power: Legitimate power- Jeff Bezo- having the authority. Reward power- Indra Nooyi- person’s ability to give reward. Coercive power- control over punishment or the capacity to deny rewards. Expert power- having special knowledge or expertise in a particular area. Referent power- personal power of admiring other.  Charisma – ability to inspire admiration, respect, loyalty through good work. Information power- having access to important information. Affiliative power- association with important people

· Transactional vs transformational leadership: Transactional leadership are more traditional, promote compliance by followers through both rewards and punishments. Whereas transformational leadership are modern, they inspire employees to look beyond their own self-interest, works with the employees together.

· Trait approach to leadership: drive, motivated, honest and having integrity ( will do what they said will do), self-confidence, cognitive ability (analytical ability, good judgment), business knowledge (technical expertise)

*criticism* there is no certainty that having these traits will make a good leader, every leadership strategy is different, and which strategy will succeed highly depends on the situation

· Steps for effective leadership: Role model. Great/clear communication skills. Encourage participation. Core values. Listen.  Empower to make a decision. Maintain ethics. Relationship- maintain. Evaluation of employees. Engage- improvement

*There are no definable traits that make a leader successful at what they do, however there are a few traits that increase the likelihood of a leader to be effective – some of them are having self-confidence, being driven, motivating employees, taking risks, and being honest*

· Gender and leadership: both genders equally effective, but recent studies show that female score higher on interpersonal skills, teamwork, empathy, and mentoring. However, they remain underreported.


o Being boss in diff countries: diff countries have different ways of running a country, some may find the ways odd, making decision – involvement of employees, decentralized or centralized, attitude towards authority

o Indra Nooyi: business knowledge, took risks, reward power, charisma, expert power

CHAPTER 12 Motivating People

· Motivation and morale: motivation is having the drive to reach your goal without any external factors affecting people’s behavior. Morale is the suman of employees’ attitudes toward their jobs, employer and colleague

· Intrinsic and Extrinsic motivation and rewards: the reason for doing something. If people engage in an activity for its pure enjoyment, they are acting on intrinsic motivation. If they do it for a separable outcome rather than the inherent enjoyment, they are acting on extrinsic motivation- extrinsic motivation relates to getting reward

· Three categories of motivation theories: Content (internal): focus on variables with the individual that motivates them towards certain behavior. Process: emphasize the nature of interaction between individual and the environment. External (context): focus on the environmental elements to explain motivation

· Theory of Employee motivation: Maslow’s needs hierarchy theory: it tells us the order of needs that needs to be satisfied- starts from basic needs to self-actualization needs. Maslow’s model lacks empirical support: a needs hierarchy isn’t universal to everyone. But Maslow generated a more holistic, humanistic, positive perspective of motivation. (Check slides). Learned Needs: Needs can be learned. Amplified or suppresses through self-concept, social norms and past experience. Three learned needs are needs for achievement, need for affiliation, need for power. Expectancy Theory: How much effort is put into and what was the outcome of this, but also consider how much value does the outcome has to a person and how much effort needs to be put in the performance (check slides).  Equity Theory: motivation is affected by comparison of our outcome to input ratio to somebody else’s’. Job Characteristic Model: Tries to determine how managers can motivate workers by helping them to achieve higher-level needs (i.e. a job that provides personal challenges, a sense of accomplishment, and personal growth). Reinforcement Theory: Assumes that behavior may be reinforced by relating it to its consequences. Positive reinforcement, avoidance, punishment, extinction

· Strategies for motivating employees: designing job (structuring the jobs in order to increase productivity), flexible scheduling strategies- job sharing (two ppl work on one job), teleworking and flextime (choosing when you work), pay for performance. (check book)

· The fun Theory: something as simple as fun is the easiest way to change people’s behavior for the better- video showed in class to use staircase rather than escalator.

· CASES: Indra Nooyi- same as last chapter. Wyndham, Happy employees=happy customers

CHAPTER 13 Groups VS Teams

· Groups Vs Team: Group is two or more individuals who communicate with one another, share a collective identity, and have a common goal. Whereas Team is a small number of people with complementary skills who are committed to a common purpose, set of performance goals, they hold themselves mutually accountable.

Group Team: Individual accountability.  Indiv and group accountability. Work is delegated . Everyone does work together. One leader of shared leadership goals

· Types of teams: Top management team: high executives, set goals. Task Force: temporary employee.  Committee: permanent formal team, specific task. Project team: similar to task force, but totally in control. Product dev team: special type of project team. R&D team: discover new approaches.  Quality assurance team: of product Self-directed work team: good service to customer Virtual Team: diff region, communicate through technology

· Benefits and challenges of teams:

o Benefits:  Motivate each other. Quality efforts. Innovative.  Enhances productivity. Enhance workers’ involvement

o Challenges: Uncertainty of role. Lack of trust. Disagreement. Talent differences.  Unclear goals

· Team Size: small teams do better, because less process loss, better coordination, resolving differences, more engagement, faster implementation. But teams must be large enough to accomplish a task.

· Team Development:  Forming- become familiar. Storming- decide roles, goals, process – conflicts occur. Norming- conflicts resolved. Performing- task development. Adjourning- completion of the task

· Effective team members: all members willing and able to work together, engagement of every member, good communication, coordinating, conflict handling, comforting, cooperating, if a person lag, not effective

· Conflict management Styles: Competing: aggressive management tactics.  Avoiding: ignore others’ concerns. Accommodating: encouragement. Compromising: letting go, adjusting, negotiation. Collaborating: joint venture, work together

· Characteristics of high performing teams: Clear and compelling goal.  Appropriate structure and processes – communication, accountability, feedback.  Competent members – having different skills. Positive culture – trust and commitment. Support and recognition- rewards

· CASE: Zappos Have very informal team communication

CHAPTER 14. Communicating in Organization 

· Importance and definition of communication in organizations: process by which information is transmitted and understood between people. Importance: (engaging in planning, organizing, leading and controlling, improve performance). Coordinating work activities. Organizational learning. Better decision making. Changing others behavior.  Employee well being

· Communication process: senders— (relay/share information) —use a medium to share inf—(prescribes the info) —receiver (receives inf) —-decoding (perception)—-feedback (notification that the receiver has received the message)

· Channel of communication: verbal, written, digital, nonverbal (action and behavior), listening. Channel richness- face to face. Low channel richness- formal report

· Communication barriers: referred to as noise, occurs during the process of coding and encoding, misinterpret inf, couldn’t portray what one was trying to say. Language problem, information overload

· Formal and informal Communication:  Formal: intentionally defined and designed by the organization (organizational structure) upward and downward, horizontal, diagonal communication (see notes).  Informal: not deliberately designed by the organization. Grape vine: gossip and cluster chain. Management by walking around: employees and manager on a day to day basis

· The impact of technology in organizational communication: Better: reduces status difference, stereotypes. More upward communication, better relations with management.  Problems: miscommunication, lack of clarity, no emotion

· Improving communication: feedback, empathy, good listeners, repeat the message, clarity

CHAPTER 15 MGMT Control Systems

· Control in an organization: activities in an organization that ensures that its action lead to the achievement of its objective. Helps managers to readily asses where the firm actually is relative to where it wants to be.

· Control Process: establishing performance standard—-measuring performance—-comparing performance against standard—-evaluation and correction action.

· Forms of Management control: Organizational: all organizational activities; bureaucratic control (hierarchical, strict, formal), clan control (informal, self-controlled, extensive employees’ input). Operation: regulates operating system, quality and quantity of organization’s inputs. Regulate transformation of input. Feedback of the output, employee’s performance evaluation. Strategic: ensures that org understand and responds to environment, work acc to change in the env. Financial: making budgets, analyzing the balance sheet and income statement, examining firm’s financial record. Non-financial: work on ethics, compliance activities and sustainability. Focus on social, environmental, and economic impact of a company’s operation.

· Managing the control process: control system should be customized, flexible to change in env, accurate acc to current needs, timely, objective

· Resistance to control: overcontrol- in everything an employee does- every step, inappropriately focused control, inefficiency in employees work, too much accountable – monitoring every move of an employee. To resist this manager should involve employee

· CASE: Home Depot – strict manager, strict rules. One manager used bureaucratic control, other used planned control (decentralized). Nardelli was over controlling- employee dissatisfaction. Frank Blake turned the pyramid upside down- customs at the top, managers at the bottom.

Chapter 16 Operations and Increasing Productivity

Operations MGMT: The development and administration of the activities involved in transforming resources into good and services

Inputs: land, labor, capital, time, knowledge, raw materials, energy, information

Transformations/Conversion: Procedures, equipment, facilitates, and technology

Outputs: goods, services, ideas

Types of Products: Goods and services, Tangible and Intangible 

Planning Operations: Plan the product, design operations product, planning capacity, plan facility, and technology

Supply Chain MGMT: Purchase→ inventory control→ outsourcing→ routing→ scheduling mgmt

Productivity: measures the relationship between outputs produced and the inputs used to produce them. Productivity= outputs/inputs