Principles of Management: An Overview

Chapter 1: Pre-Lecture

• Career growth stems from doing novel tasks.
• Management involves achieving organizational goals efficiently and effectively through people by planning, organizing, leading, and controlling resources.
• Efficiency involves using resources wisely and cost-effectively.
• Effectiveness involves achieving results and successfully executing organizational goals.
• Being efficient and effective simultaneously is challenging.
• The multiplier effect refers to a manager's influence being amplified beyond individual results.

Payoffs of Studying Management:

• Involves a deeper understanding of external organizations, supervisor relations, co-worker interactions, self-management skills, and potential for higher earnings.

Rewards of Practicing Management:

• Includes experiencing a sense of accomplishment for oneself and employees.
• Stretching abilities, creating successful products/services, and mentoring others.

Four principle functions of management:

• Planning involves setting goals and deciding how to achieve set goals.
• Organizing includes arranging tasks, people, and resources to accomplish work.
• Controlling requires monitoring performance, comparing it to goals, and taking corrective actions.
• Leading means motivating and directing people to work towards organizational goals.

Levels of Management

• Top managers make long-term decisions and set objectives, policies, and strategies.
• Middle managers implement policies and plans from top managers while overseeing first-line managers.
• First-line managers deal with short-term operating decisions and daily tasks.
• Team leaders facilitate team member activities to help them achieve goals.
• Non-managerial employees work independently and provide task assistance.
• Functional managers are responsible for one activity.
• General managers are responsible for several activities.
• For-profit organizations aim to make money.
• Non-profit organizations aim to offer services.
• Mutual-benefit organizations aim to aid members.

Manager's Roles:

• Managers always work with constant demand who spend work time communicating and proactively managing time.

Three Types of Managerial Roles:

• Interpersonal roles include figurehead, leader, and liaison duties.
• Informational roles involve monitoring, disseminating, and acting as a spokesperson.
• Decisional roles consist of being an entrepreneur, disturbance handler, resource allocator, and negotiator.
• Figurehead role involves representing the company at events and presenting ethical guidelines.
• Leadership roles include responsibility for subordinates' actions.
• Liaison role includes networking outside the organization to form alliances.
• Monitor role requires staying alert for useful information.
• Disseminator role requires sharing information with employees.
• Spokesperson role requires representing the organization positively to the public.
• Entrepreneur role includes initiating and encouraging innovation.
• Disturbance handler role includes fixing problems.
• Resource allocator role involves prioritizing resource use.
• Negotiator role involves working with internal and external parties to achieve goals.

Skills for Managers:

• Technical skills include performing specific jobs.
• Conceptual skills include analytical thinking.
• Human skills (soft skills) include the ability to interact with people.
• Other skills include motivation, communication, international work experience, and high energy levels.
• Challenges for managers include staying ahead of rivals, managing technology, inclusion, diversity, globalization, ethical standards, sustainable development, and employee well-being.

Chapter 1: In-Class

• Career readiness includes the knowledge, skills, and attributes employers want.
• Management involves achieving tasks through others.
• Most managers act effectively, know how to achieve goals, and understand people.

Deming's 4 Kinds of Knowledge:

• Knowledge of systems: understanding consequences.
• knowledge of variation: distinguishing common vs. special causes.
• knowledge of knowledge: understanding what one knows.
• knowledge of psychology: understanding how people think.
• As a manager, the plan is to predict outcomes

Management:

• Is the effective and efficient pursuit of organizational goals.
• Involves integrating others' work, planning, organizing, leading, and utilizing resources.
• Efficiency means using resources wisely.
• Effectiveness means achieving set goals.
• The multiplier effect means economy of scale.
• There are key interactions with organizations, supervisors, coworkers, and oneself.

Four Levels of Management:

• top level managers make long-term decisions.
• middle managers focus on policy, planning, and implementation.
• first-line managers focus on daily tasks.
• Team leaders ensure tasks are completed.

Types of Organizations:

• For-profit organizations aim to make money.
• Non-profit organizations aim to offer services.
• Mutual benefit organizations support member interests.
• The role of the manager is to communicate information and manage time.

Chapter 2: Management Theory

• Peter Drucker created and invented of modern management

Important Ideas of Management:

• Workers should be assets
• Corporations are human communities.
• Business requires customers.
• Institutionalized practices are better than charismatic leaders.

Six Practical Reasons for Studying Management Theory:

• To understand the present
• To guide action
• To generate new ideas
• Decipher managerial decisions
• Understand events outside the organization
• To produce good results
• Scientific management applies scientific methods to improve individual worker productivity.
• Fredrick Taylor is the father of scientific management.

Taylor's Four Principles of Science:

• Scientifically evaluate tasks instead of using old methods to create realistic goals.
• Carefully select workers with appropriate abilities.
• Train workers and provide incentives with proper methods.
• Use scientific principles to plan work methods and aid workers.
• Frank and Lillian Gilbreth reinforced the link between studying physical movements and worker efficiency.
• Therblig is one of 17 basic motions considered when streamlining work processes.
• Administrative management focuses on managing the entire organization.
• Fayol was the first to identify the major functions of management; planning, organizing, leading, and controlling.
• Max Weber advocated for bureaucracy and sought a well-defined hierarchy of authority.

Weber's Five Bureaucratic Features:

• Well defined hierarchy of authority
• Careers based on merit.
• There should be formal rules, procedures, clear division of labor, and impersonality.
• The classical perspective may be mechanistic.
• The behavioral viewpoint emphasizes understanding and motivating employees.
• Hugo Munsterberg is known as the "father of industrial psychology".

Munsterberg Believed People Can:

• Study jobs to find suitable employees.
• Identify psychological conditions for optimal work.
• Create strategies to align employee interests with management.
• Mary Parker Follett advocated for cooperative management.
• Organizations should be operated as a community
• Conflict should be resolved with integration
• Work process should be controlled by collaborative workers

Douglas McGregor:

• Maslow identified a hierarchy of needs on behavioral science.
• Elton Mayo is known for the Hawthorne studies and effect.
• Douglas McGregor developed Theory X and Y viewpoints.
• Theory X suggests a pessimistic view of workers,
• Theory Y suggests an optimistic view
• The behavioral science approach uses research to develop practical tools for managers.
• Quantitative management applies quantitative techniques to management.
• Operations management focuses on the production and delivery of products or service.
• Supply chain is the process of creating the product
• Evidence-based management translates principles derived from evidence into organizational practice.
• The systems viewpoint understands the organization as interrelated parts.

Four Parts of the System:

• Inputs include capital, people, and information.
• Transformational processes transform inputs into outputs.
• Outputs are the products, services, profits, and employee experiences.
• Feedback informs about the environment's reaction to outputs.
• A closed system interacts little with its environment.
• An open system interacts continually with its environment.
• Synergy is the idea that combined forces produce a greater effect.
• Quantitative management and Complexity theory studies order and pattern in complex systems.
• The contingency viewpoint tailors the manager's approach to the situation.
• Contemporary management embraces the learning and shared values of sustainable development.

Learning Organization:

• Actively creates, acquires, and transfers knowledge.
• Modifies its behavior to reflect new knowledge.
• High-performance work practices enhance employee ability, motivation, and opportunity.
• Shared value of sustainable development focuses on the environment and sustainability.
• To manage career readiness managers must know the business's values and mission.

Chapter 2 In-Class:

• Management theory consists of differing approaches.

Important People in Management

• Peter Drucker workers should be treated as assets
• Frederick Taylor applied scientific principles
• Frank and Lillian Galbreth- performed motion studies and "therbligs."
• Charles Clinton Spaulding provided administrative management.
• Fayol came up POLC

Max Weber:

• Had an organizational based on logical principles five features:.
  • well defined hierarchy
  • formal rules
  • clear division of labor
  • impersonality
  • careers based on merit
• Was Too mechanistic
• Hugo Munsterberg applied industrial psychology
• Mary Parker stressed organizational family.
• Elton Mayo discovered the Hawthorne effect.
• Better human relations = increased productivity
• Abraham Maslow created a hierarchy of needs
• Douglas McGregor developed the theories X and Y
• George Dantzig created the simplex method
• Morgan Walker + James Kelley - critical path method
• You must use models to base your evidence.
• You must understand that your Systems view effects.
• A contingency view depends on situations.

Chapter 3: Ethical Responsibilities

• The triple bottom line represents people, planet, and profit.
• You can measure organizations using social audits of companies to implement socially responsible programs
• Millennials and Gen Z care about the triple bottom line.
• Stakeholders are individuals affected by an organization's activities including the The General & Task Environment.

Task Environment

• The main 10: groups consist of:
  • customers
  • competitors
  • suppliers
  • distributor
  • strategic allies
  • employee organizations
  • local communities
  • financial institutions
  • government regulars
  • special interest groups

Who are Employees:

• Employees are 'the talent."
• Owners legally claim organization as a sole proprietorship, partnership, private investors, employee owners, and stockholders.
• The Board is elected to oversee firm activities.
• Clawbacks occur when don't deliver promised jobs,
• Venture capital is an investment with high risks

General Environment

• is set from a broad force impacting orgainzations
  • Economy
  • Technology
  • Socioculture
  • Demography
  • Politics and legalities
  • Internationality

Common Ethics:

• There must be ethics depending on the circumstance.
  • Utilitarianism
  • Individualism -Morality and Justice

Kohlberg created the levels for internal moral development:

• Level 1 we follow rules
• Level 2 is like a common managers we follow others expectations and follow
• Level 3 We internalize our values

To support a ethical climate:

• Foster ethics
• Screening
• Train
• Provide time for employees to make decisions based on ethics.
• One must avoid Milton Friedman's CSR, it's unlikely it is not good.

Chapter 3 In-Class

• Social audits provide an assessment of social responsibility to see if your bottom line is profits, environment, & people.
• There are certain generations more aware such as gen z & millennials.
• One must watch ethical standards and if a corporation should have power.

Chapter 4: Global Management

• U.S. Is second in world for competitiveness.
• Globalization becomes a more independent system due to the shift in the global economy.
• This causes globalization rise due to the more electronic commerce & the world has mega firms.
• Moving communication from transport to exchange for information is a "global village".
• E-Commerce involves buying and selling products through computer networks.
• In a Global Economy the interactions between nations is high!

One can see some positives:

• Companies can move up quicker
• But some negatives can appear though- such us a
• Job lose: so keep up! One must move cross cultures

It is important that you should be geocentric where it works.

• Global expansion is done to either make or safe some money.
• This is done to gain supply and find capital with less tariffs.
• With more capital/investment there's generally high risks.
• The opposite occurs with less investment you gain more protectionism.

One can prevent international trade by:

• Creating tariffs and placing product embargos
• Creating a world trade agreement to prevent products to move around nations.

Globalization:

• Culture sets shared beliefs with different behaviors.

• Understanding other languages is important for law and space.

• Most think ethnocentrically

• With less capital and investment you gain Protectionism against your product

4 Main Dimensions of Globalization:

• Individualism
• Power Distance
• Uncertanity
• Masculintiy

Chapter 5: Planning

• A Business Model sets and achieves the standards that ensure success by long term goals.

Strategic management

• Involves managers formulating the implementation and organization of strategies,

You can measure organizations with various factors like:

• Mission
• Vision
• Values
• Fundamentals
• This all helps build long term and short term goals. So it can turn strategic plans,

This involves Smart goals:

• Specific
• Measurable
• Attainable
• Results
• Target
• One must always plan and control their work.