Principles of Management Chapters 1-3

18 November 2023
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Management
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the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
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Four core management functions
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planning, organizing, leading, and controlling
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Planning
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set goals and ways to attain them
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Organizing
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assign responsibility for task accomplishment
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Leading
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use influence to motivate employees
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Controlling
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monitor activities and make corrections
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Organization
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a social entity that is goal directed and deliberately structured
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Effectiveness
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refers to the degree to which the organization achieves a stated goal
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Efficiency
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pertains to the amount of resources- raw material, money, and people- used to produce a desired volume of output
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performance
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the organization's ability to attain its goals by using resources in an efficient and effective manner
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Conceptual skills
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the cognitive ability to see the organization as a whole and the relationship among its parts
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Human skill
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manager's ability to work with and through other people and to work effectively as part of a group
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Technical skill
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the understanding of and proficiency in the performance of a specific task
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Top manager
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vertical difference; one who is at the apex of the organizational hierarchy and it responsible for the entire organization
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Middle manager
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vertical difference; work at the middle level of the organization and are responsible for major divisions or departments
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Project manager
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a manager who is responsible for a temporary project that involves people from various functions and levels of organization
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First-line managers
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vertical difference; managers who are at the first or second level of the hierarchy and are directly responsible for overseeing groups of production employees
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Functional managers
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horizontal difference; responsible for a department that performs a single functional task, such as finance or marketing
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General managers
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horizontal difference; responsible for several departments that perform different functions, such as the manger of Macy's or Ford
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Role
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a set of expectations for one's behavior
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Classical perspective
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study of modern management began in the late nineteenth century with this; took a rational, scientific approach to management and sought to make organizations efficient operating machines
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Scientific management
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a subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity
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Frederick Winslow Taylor
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known as the father of scientific management
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Bureaucratic organization
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a subfield of the classical perspective that emphasizes management on an interpersonal, rational basis through elements such as clearly defined authority and responsibility, formal record-keeping, and separation of management ownership
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Max Weber
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introduced most of the concepts on bureaucratic organization
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Administrative principles
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a subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling
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Henri Fayol
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major contributor to the administrative principles approach; outlined 14 general principles of management, several of which are part of management philosophy today
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Humanistic perspective
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emphasized understanding human behavior, needs, and attitudes in the workplace
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Mary Parker Follett and Chester Bernard
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early advocates of a more humanistic approach to management
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Human relations movement
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stresses the satisfaction of employees' basic needs as the key to increased productivity
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Hawthorne studies
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important in shaping ideas concerning how managers should treat workers
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Human resources perspective
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suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential; jobs should be designed so that tasks are not perceived as dehumanizing or demeaning; note: Abraham Maslow and the hierarchy of needs
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Behavioral sciences approach
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draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting
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Quantitative perspective
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became popular in World War II; uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems
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Three subsets of quantitative perspective
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research, operations management, and information technology
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System
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a set of interrelated parts that function as a whole to achieve a common purpose; an organization is one of these
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Systems thinking
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means looking not just at discrete parts of an organizational situation but also at the continually changing interactions among the parts
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Subsystems
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parts of a system that depend on one another for their functioning
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Synergy
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says that the whole is greater than the sum of its parts; the organization must be managed as a whole
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Contingency view
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tells managers that what works in one organizational situation might not work in others
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W. Edwards Deming
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father of the quality movement
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Total quality management
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focuses on managing the total organization to deliver quality to customers
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Social forces
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influence of culture that guides people and relationships; shape what is known as the social contract
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Political forces
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influence of political and legal institutions; example is the increased role in government in a business if it collapses financially
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Economic forces
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the availability, production, and distribution of resources
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Customer relationship management
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systems use information technology to keep in close touch with customers, collect and manage large amounts of customer data, and provide superior customer value
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Outsourcing
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contracting out selected functions or activities to other organizations that can do the work more efficiently, has been one of the fastest growing trends in years
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Supply chain management
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managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers
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Organizational environment
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consisting of general and task environments, includes all elements existing outside the boundary of the organization that have the potential to affect the organization
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General environment
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indirectly influences all organizations within an industry and include five dimensions
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Task environment
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includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance
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International environment
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of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries
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Technological dimension
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of the general environment includes scientific and technological advances in society
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Sociocultural dimension
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includes demographic characteristics, norms, customs, and values of a population within which the organization operates
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Economic dimension
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represents the general economic health of the country or region in which the organization operates
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Legal-political dimension
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includes government regulation at the local, state, and federal levels, as well as political activities designed to influence company behavior
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Pressure groups
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work within the legal-political framework to influence companies to behave in socially responsible ways
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Internal environment
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includes the environment within the organization's boundaries such as employees, management, and corporate culture; includes the task environment and the general environment
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Natural dimension
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includes all the elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as water, air, and climate
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Customers
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part of the task environment and include people and organizations that acquire goods and services from the organization
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Competitors
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organizations within the same industry or type of business that compete for the same set of customers
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Suppliers
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provide the raw materials the organization uses to produce its output
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Labor market
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represents the people available for hire by the organization
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Task environment
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customers, competitors, suppliers, labor market
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General environment
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technological, natural, sociocultural, economic, legal/political, international
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Merger
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occurs when two or more organizations combine to become one
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Joint venture
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strategic alliance or program by two or more organizations
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Culture
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the set of key values, beliefs, understandings, and norms shared by members of an organization
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Visible culture
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artifacts, such as dress, office layout, symbols, slogans, ceremonies
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Invisible culture
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values, underlying assumptions, and deep beliefs
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Symbol
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an object, act, or event that conveys meaning to others
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Hero
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a figure who exemplifies the deeds, character, and attributes of a strong culture
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Slogan
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expresses the key corporate value
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Ceremonies
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planned activites at special events, to reinforce company values