Chapter 1: Introduction to Management

Chapter 1: Management

• Management entails pursuing organizational goals efficiently and effectively.
• The management process includes planning, organizing, leading, and controlling.
• Planning involves setting goals and deciding how to achieve them.
• Organizing involves arranging tasks, people, and resources to accomplish work.
• Leading involves motivating and directing people to achieve organizational goals.
• Controlling involves monitoring performance, comparing it to goals, and taking corrective actions.
• The order of the management process is planning, organizing, leading, and controlling.
• Top managers make long-term decisions.
• Middle managers implement top management's policies and supervise activities.
• First-line managers make short-term operating decisions.
• Team leaders facilitate team activities.
• Nonmanagerial employees work alone or in teams.
• Managerial areas include R&D, Marketing, Finance, Production, and Human Resources.
• Three managerial roles are interpersonal, informational, and decisional.
• Interpersonal roles: figurehead, leader, and liaison.
• Informational roles: monitor, disseminator, and spokesperson.
• Decisional roles: entrepreneur, disturbance handler, resource allocator, and negotiator.
• Seven challenges include managing for competitive advantage, diversity, ethics, and happiness.

Chapter 2: Management Viewpoints

• Management viewpoints progressed through classical, behavioral, quantitative, systems, contingency, and contemporary approaches.
• The behavioral viewpoint includes human relations, with Maslow and McGregor.
• The Hawthorne effect: employees work harder if they feel cared for and receive attention.
• Maslow's hierarchy of needs includes physiological, safety, love/belonging, esteem, and self-actualization.
• McGregor's Theory X: a pessimistic view of workers who are irresponsible and resistant to change.
• McGregor's Theory Y: an optimistic view of workers who are capable and creative.
• Behavioral science includes psychology, sociology, anthropology, and economics.
• The quantitative viewpoint includes operations and evidence-based management.
• Operations management includes scheduling work, planning production, designing services, and managing inventory.
• The supply chain is the process of creating a product from raw materials to delivery.
• The systems viewpoint sees organizations as a collection of subsystems within a larger environment.
• A closed system has little interaction with its environment.
• An open system continually interacts with its environment, creating synergy.
• Three parts of a learning organization: creating knowledge, transferring knowledge, and modifying behavior.

Chapter 3: Organizational Environment and Ethics

• Internal stakeholders include employees, owners, and the board of directors.
• External stakeholders include the general and task environments.
• The general environment includes economic, technological, sociocultural, demographic, political-legal, and international forces.
• The task environment includes customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, and special-interest groups.
• Four approaches to resolving ethical dilemmas exist: the utilitarian, individual, moral-rights, and justice approaches.
• Kohlberg's three levels of personal moral development are preconventional, conventional, and postconventional.
• Preconventional: follows rules to avoid unpleasant consequences.
• Conventional: follows others' expectations.
• Postconventional: guided by own values.

Chapter 4: Global Management

• The global village is the "shrinking" of time and space due to worldwide communication advancements.
• International management involves multinational corporations and organizations operating in several countries.
• A geocentric view focuses on effectiveness regardless of origin.
• A polycentric view believes the host country knows best.
• An ethnocentric view believes the home country knows best.
• Companies expand internationally for supplies, new markets, low labor costs, finance capital, and to avoid tariffs.
• Expansion methods include global outsourcing, importing/exporting, licensing/franchising, joint ventures, and wholly-owned subsidiaries.
• Barriers to international trade include tariffs, import quotas, sanctions, and embargoes.
• A tariff is a tax on imports.
• An import quota limits the quantity of imported products.
• A sanction prohibits trade with another country for specific reasons.
• An embargo bans trade with another country.
• BRICS economies: Brazil, Russia, India, China, South Africa hold 40% of the world’s population.
• Cultural variations exist in language, interpersonal space, communication, time orientation, religion, and law.
• Polychronic cultures multitask and are more flexible.
• Monochronic cultures do things one at a time.

Chapter 5: Planning

• Mission statement: "What is our reason for being?"
• Vision statement: "What do we want to become?"
• Values statement: "What values do we want to emphasize?"
• Strategic planning: done by top managers for 1-5 years.
• Top Management: CEO, president, VP, division heads
• Tactical planning: done by middle managers for 6-24 months.
• Middle Management: functional, product-line and department managers
• Operational planning: done by first-line managers for 1-52 weeks.
• First-Line Managers: Unit managers, first-line supervisors
• Short-term goals span 12 months, related to strategic goals
• Long-term goals span 1-5 years, focus on strategic plan achievement.
• SMART goals are Specific, Measurable, Attainable, Results-oriented, and have a Target date.
• Cascading goals align lower-level goals with top goals.
• Top and middle management must be committed.
• Goals must "cascade" consistently down through the organization.

Chapter 10: Managing Change and Innovation

• Reactive change: Changes in response to problems or opportunities as they arise.
• Proactive change: Making carefully thought-out changes in anticipation of possible or expected problems or opportunities.
• Adaptive change: Easiest to implement, "We've seen stuff like this before."
• Innovative change: Moderately difficult to implement, "This is something new for this company."
• Radically innovative change: Difficult to implement, "This is a brand-new thing in our industry."
• Approaches to Innovation focuses on type and focus.
• Type: Product or process
• Focus: Making small changes at a time