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• Management involves efficiently and effectively getting things done with and through people.
• Efficiency pertains to resource usage, while effectiveness concerns goal attainment.

Brief History of Management

• The hierarchy of management consists of top managers, middle managers, first-time managers, team leaders, and non-managerial employees.
• The reasons for the management hierarchy is due to complex goods and services, increased industrial production, and the growing influence of science on management practices.
• Managers bring increased oversight and control, specialization and clarity, functional expertise, and accountability.

Early Attempts at Maximizing Efficiency and Effectiveness

• Frederick Taylor is the father of scientific management and was concerned with productivity and efficiency.
• Taylor pioneered "time studies" to measure worker productivity and introduced the "science of shoveling."
• Gilbreths refined Taylor's principles by focusing on "motion studies" and they used motion picture cameras to analyze worker movements.
• Unnecessary motions were eliminated for more efficiency and less tiring work.

Limitations of the Classical View of Management

• The Classical View of Management has limitations such as an overemphasis on efficiency, a limited human perspective, inflexibility, and a lack of employee involvement.

Henri Fayol

• Henri Fayol proposed that management is based on four functions.
• The four functions of management are planning, organizing, leading, and controlling.

Modern Attempts at Maximizing Efficiency and Effectiveness

• Peter Drucker is the father of modern management and he took a humanistic approach.
• He is credited with management by objectives (MBO), "knowledge worker", decentralized management, and socially responsible businesses.

Henry Mintzberg

• Henry Mintzberg identified three types of managerial roles.
• The three roles are interpersonal, informational, and decisional.
• Interpersonal roles: leader, figurehead, liaison.
• Informational roles: monitor, disseminator, spokesperson.
• Decisional roles: entrepreneur, disturbance handler, resource allocator, negotiator.

Layers of Organizational Culture

• Observational artifacts are readily apparent symbols and manifestations of an organization's culture, like dress code and rituals like online meetings
• Basic assumptions are deeply ingrained, unconscious beliefs that influence behavior and decision-making.
• Espoused values are explicitly stated values and norms that an organization claims to uphold.
• Enacted values are values and norms that are actually exhibited in the organization.
• Socialization represents the process by which people learn the values, norms, and required behaviors.
• Story represents the narratives based on true events which are repeated to emphasize values
• Symbols represent objects or actions that convey an organization's most important values to others.

Internal Environment

• The internal environment influences employee behavior, including perceptions of psychological safety, norms of fairness, leadership styles, and organizational support.
• Organization culture is a system of shared beliefs, values, knowledge, shaping behavior

Organization Culture

• Organization culture influences attitudes, perceptions, and behavior.
• Organization culture provides a sense of identity and serves as a sense-making device
• Organization culture can serve as a control for shaping behavior and a substitute for formal rules and regulations.
• Strong cultures: shared and known values, and align with the planning, organizing, leading, and controlling that is in place.

Levels of Organizational Culture

• Artifacts: Visible aspects (office design, symbols, language, rituals, and stories).
• Values: Guiding principles (espoused or enacted).
• Assumptions: Deeply ingrained beliefs; shape decisions (human nature and reality).
• Organizational stories are social prescriptions of desired behavior and communicate core values
• Organizational language uses words to address people and leaders use phrases and metaphors.
• Values are judgments about what is important and worthwhile, which include espoused(what they say) or enacted (what they do) values

Competing Values Framework (CVF)

• Measures value and uses flexibility vs. control / internal vs. external focus axes.
• Internal focuses on employee well-being
• External focuses on the customer
• Clan culture is collaborative and people-oriented (do things together).
• Adhocracy culture is innovative and dynamic (do things first).
• Market culture is competitive and results-driven (do things right).
• Hierarchy culture is structured and process-oriented (do things fast).

Seven Dimensions of Culture

• Attention to details
• Outcome orientation
• People orientation
• Team orientation
• Aggressiveness
• Stability
• Innovative and risk-taking

Attraction-Selection-Attrition Theory

• Attraction-Selection-Attrition an organization's, culture becomes stronger through attraction, selection, and attrition.
• Attraction: applicants self-select companies that have compatible values
• Selection: applicants are selected because their values are congruent with the organization's culture
• Attrition: employees quit when their values conflict with the company's values.

Types of Decisions

• Programmed Decisions are repetitive, routine decisions that be handled using established procedures or rules.
• Nonprogrammed Decisions are unique, nonrecurring, and require careful analysis and conscious thought to determine the best course of action.

Rational Decision-Making Process

• Involves identification of a problem, decision criteria, allocation of weights to criteria, development, analysis, and selection, and the implementation and evaluation of alternatives
• Limitations: time, access, and assuming that people want to make optimal decisions (instead, they "satisfice").

Can AI Improve Creative Decision-Making

• One study demonstrated that AI allowed employees to focus on more engaging and meaningful work, enhancing job satisfaction and creativity
• AI boosted creativity for more higher-skilled employees, while lower-skilled employees faced tension, pressure, and reduced morale.

Intuition

• Intuitive (programmed) Decision Making:
• Does exposure to a variety of cultures make you a better decision-maker?

Intuitive Action

• Exposure to a variety of cultures enhances trust, reduces bias toward outgroups, increases ability to learn and creativity.
• It also creates "Cognitive flexibility" = ability to think about multiple concepts simultaneously.
• It can create moral flexibility, and encourage unethical decision-making.
• Broad experiences can lead to cheating more than deep experiences

Abundance Effect

• Study: the presence of excess wealth motivates unethical decisions
• Participants cheated more in the presence of excessive wealth

Ego Depletion

• Self-control as a resource, motivation vs. ability
• Study: depleted self-control resources can decrease task persistence and increase unethical decisions

Moral Cleansing

• Individuals seek to maintain consistency in their view of themselves as a moral person (moral equilibrium)
• May experience distress when behaving in ways that jeopardize this self-image
• Immoral groups = recall words like “cleansing"

Heuristics and Cognitive Biases

• Heuristics are "rules of thumb"
• Judgmental shortcuts called heuristics to simplify their decision-making

Common Cognitive Biases

• Anchoring biases: fixation on an initial piece of information and allowing it to overly influence decisions.
• Availability biases
• Confirmation biases
• Sunk cost trap
• Framing effect

Anchoring And Adjustments Biases

• A tendency for individuals to rely too heavily on arbitrary numbers, irrelevant traits, or facts when making decisions
• The first piece of information offered is known as the "anchor”
• Once the anchor is set, there is a bias toward that value

Managing Anchoring Effects

• Dropping effective anchors by showing the zone of possible agreement (ZOPA)
• Frame anchor as flexible
• Defuse other party's anchor
• Quickly diffuse anchor (have a valid reason, express why)
• Propose and justify counteroffer

Availability Bias

• Assess frequency or probability of event based on how readily available instances are in memory
• Example: people think airplane crashes happen because of news
• Managers view situations relevant based on training (accounting, marketing, etc.)
• Example: Manager assumes all customers are dissatisfied due to customer complaint.

Confirmation Bias

• Describe decision-makers who seek out information that reaffirms their past choices and who discount information that contradicts past judgments (find ways to confirm one's thinking)

Confirmation Bias Actions

• Seek out info that can falsify your beliefs
• Challenge your own assumptions

Sunk Cost

• Cost that has already been incurred and cannot be recovered, regardless of future decisions

Sunk Cost Trap

• Our tendency to follow through with something that we've already invested heavily in
• One makes decision that occurs when people continue a project because of past investments, even when the costs outweigh the benefits
• Occurs because of fear of failure, discomfort with wasted resources, irrational belief
• Decisions made based on future value, not past investment

Framing Bias

• The tendency of decision-makers to be influenced by the way a situation or problem is presented
• Negative Framing (Risk-Averse Culture): "If this idea fails, we will have wasted $10.1000 and months of work."
• Positive Framing (Encouraging Risk-Taking): "Even if this idea doesn't work, we will have gained valuable insights that bring us closer to success.”

Organizational Structure

• How work is coordinated between individuals and teams within an organization
• Determines the nature of tasks and role assignment
• Explains reporting relationships and chain of command
• Describes communication channels and sets decision-making type

Elements of Organizational Structure

• Departmentalization
• Chain of Command
• Span of Control
• Centralization
• Formalization
• Work Specialization

Work Specialization

• Division of work activities into separate job tasks
• Cons: repetitive work, boredom, stress, lack of meaning or purpose

Departmentalization

• Group roles/tasks and how jobs/tasks/activities are grouped together
• Types: Functional, Product, Customer, Geographic, Process

Chain of Command and Line Authority

• How rigid should authority and reporting relationships be?
• Chain of command is the line of authority extending from upper to lower organizational levels

Chain Of Command Rigidity Factors

• Business goals/strategy
• Industry needs
• Size and complexity
• Need for consistency vs. adaptability

Line and Staff Authority

• How does an organization determine who has decision-making power versus who provides support and expertise?

Staff functions vs. Line functions

• Line function directs value (ex. production, sales, etc.)
• Staff function provides indirect value (ex. HR, public relations)
• Line authority: to direct and control those who report to them
• Staff authority: to advise line managers

Authority vs. Power

• Authority has legitimacy based on an authority figure's position in the organization, involves power
• Power: an individual's ability to influence decision, it can exist without authority

Types of Power

• Coercive power: Based on fear.
• Reward power: Distribute something that others value.
• Legitimate power: Position in the formal hierarchy.
• Expert power: Expertise, special skill, or knowledge.
• Referent power: The source of admiration, respect, or identification by others.
• Informational Power is power based on control over information.

Span of Control

• How many employees can I efficiently and effectively supervise?
• Traditional View: Typically, no more than 6 employees

Contemporary View

• Span of control is increasing which saves decision-making time and resources
• Partly due to self-sufficient “knowledge workers"

Supervision Effiency

• Depends on employees' motivation, experience, and training
• Also depends on Similarity of tasks, complexity, strength of culture, physical proximity, the importance placed on consistency

Centralization and Decentralization

• Centralization: Formal decision-making authority is held by a few people (McDonalds)
• Decentralization: Decision-making authority is dispersed throughout the organization (allow head chefs to determine the menu)
• Depends on employees' experience and training, dynamics, and Innovation
• Formalization is how standardized an organization's jobs are, and the extent to which employee behavior is guided by rules and procedures