Principles of Management

Rewards of Being an Exceptional Manager

• Managers and their employees can find fulfillment in their work.
• Managers can expand their capabilities and influence.
• Managers have the ability to create valuable products or services.
• They can also guide and support others.

Four Principles of Management Functions

• Planning involves defining goals and determining how to achieve them.
• Organizing includes arranging tasks, people, and resources to accomplish work.
• Leading involves motivating and directing people to work towards organizational goals.
• Controlling involves monitoring performance, comparing it to goals, and taking corrective action.

Levels and Areas of Management

• Functional managers are responsible for a single organizational activity, such as a director of finance.
• General managers are responsible for several organizational activities, such as an executive VP.

Levels of Management

• Top management makes long-term decisions about the organization's direction and establishes objectives and strategies.
• Middle managers implement top management's policies and plans, and supervise first-line managers.
• First-line managers make short-term operating decisions regarding daily tasks of non-managerial personnel.
• Team leaders facilitate team activities to achieve key results.

Roles of an Effective Manager

• Managers must play interpersonal, informational, and decisional roles.
• Interpersonal roles include figurehead, leader, and liaison.
• Informational roles include monitor, disseminator, and spokesperson.
• Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator.

Skills of an Outstanding Manager

• Technical skills are the job-specific knowledge needed to perform well in a specialized field.
• Conceptual skills are the ability to think analytically, visualize an organization as a whole, and understand how its parts work.
• Human skills (soft skills) are the ability to work well with others, motivate, inspire trust, and communicate effectively.

Seven Challenges Faced by Most Managers

• Managing for competitive advantage is a key challenge.
• Managing for technological advances is essential.
• Managing for diversity and inclusion is an important challenge.
• Adapting to globalization is necessary.
• Maintaining ethical standards is crucial.
• Managing for sustainable development is a growing concern.
• Promoting happiness and meaningfulness in the workplace is important.

Knowledge, Soft Skills, Attitudes, and Career Readiness

• Knowledge management involves implementing systems to increase the sharing of knowledge and information.
• Soft skills are interpersonal skills needed for success at all levels.
• Attitudes are learned predispositions toward a given object.
• Career readiness is the extent to which an individual possesses the knowledge, skills, and attributes desired by employers.

Terms

• Being efficient means using resources wisely and cost-effectively.
• Efficiency relates to minimizing or optimizing the use of time and resources.
• Being effective means achieving results and making the right decisions.
• Effectiveness relates to doing the right things to achieve desired results and goals.
• Management is the pursuit of organizational goals efficiently and effectively.
• Competitive advantage is the ability to outperform competitors
• Sustainable development focuses on meeting present needs while ensuring future generations can meet their needs.

Current Perspectives on Management

• Understanding management history enables the utilization of different management perspectives and techniques.

Classical View of Management

• Scientific management emphasizes studying work methods to improve productivity, concluding that people are rational.
• Administrative management focuses on managing the total organization.
  • It includes clearly defined hierarchy of authority and formal procedures and rules.
• Work activity can be managed by a rational approach, but it can be mechanistic, viewing workers as "cogs in a machine."

Behavioral View of Management

• Emphasizes the importance of understanding human behavior and motivating employees toward achievement.
• This view developed in three phases: early behaviorism, the human relations movement, and behavioral science.

Quantitative Approach to Solving Problems

• Involves applying quantitative techniques, such as statistics and computer simulations, to management.
• Operations management focuses on managing the production and delivery of an organization's products or services.
• Evidence-based management entails translating principles based on best evidence (from research) to organizational practice, bringing rationality to decision-making.

Systems View of Management

• The systems viewpoint sees organizations as open or closed systems with inputs, outputs, transformation processes, and feedback.
• This viewpoint has led to the development of complexity theory.
• Open systems interact with their environment, while closed systems have little interaction.

Managing in All Situations

• The contingency viewpoint emphasizes that a manager's approach should vary according to the individual and environmental situation.

Fostering Learning Organizations

• Three contemporary approaches include learning organizations, high-performance work practices, and sustainable management.
• Learning organizations actively create, acquire, and transfer knowledge and can modify their behavior to reflect new knowledge.
• High-performance work practices require investment in human resource systems.
• Sustainable management looks beyond short-term profits and focuses on environmental and social costs.

Terms

• Contingency viewpoints emphasize decisions should be made on a case-by-case basis.
• Contemporary approaches include learning organization, high-performance, and sustainable management.

Role of Strategic Management

• Strategic management involves finding a distinctive element that attracts customers and differentiates from competitors.

Mission, Vision, and Value Statements

• A mission statement expresses the purpose of the organization.
• A vision statement provides a clear sense of the future.
• A value statement defines what the company stands for, including priorities and values.

Types and Purposes of Goals and Plans

• Goals are specific commitments to achieve measurable results within a stated period.
• Short-term goals are tactical or operational, spanning up to 12 months.
• Long-term goals are strategic, spanning one to five years.

SMART Goals

• Specific: Goals should be stated in specific rather than vague terms
• Measurable: Whenever possible, goals should be measurable or quantifiable
• Attainable: Goals should be challenging, but they should be realistic and attainable
• Results-oriented: Only a few goals should be chosen for any work unit and should support the organization’s vision
• Target Dates: Goals should specify deadlines for when they are to be obtained

Planning/Control Cycle

• The cycle includes making the plan, carrying out the plan, and controlling the direction.
• Control involves correcting deviations or improving future plans.

Components of a Business Model

• It includes a customer value proposition and a profit formula.

Customer Value Proposition

• Summarizes the benefits and value of a product or service.
• It describes the business approach to satisfying customer needs and the price point.
• Elements include operational excellence, product leadership, and customer intimacy.

Strategic Vision vs. Mission

• Vision is future-oriented and aspirational.
• Mission is present-oriented and focused on purpose.

Terms

• Planning is setting goals and deciding how to achieve them.
• A plan outlines a proposed firm's goals and strategy.
• A business model describes how its strategy will create value and generate profit.
• A customer value proposition is the company's approach to satisfying buyer needs at a price customers consider good value.
• A strategy or strategic plan sets long-term goals and direction.

Objective of MBO

• Performance Objective: Express the objective as an outcome or end-result
• Behavioral Objectives: Express the objective as the behavior needed to achieve an outcome
• Learning Objectives: Express the objective in terms of acquiring knowledge or competencies

Principles Underlying Strategic Positioning

• Strategy involves creating unique and valuable positions.
• Strategy requires trade-offs in competing.
• Strategy involves creating "fit" among activities.

Steps in the Strategic Management Process

• Establish the mission, vision, and values statements.
• Assess the current reality (SWOT analysis).
• Formulate corporate, business, and functional strategies.
• Execute the strategies.
• Maintain strategic controL

Assessing the Competitive Landscape

• Assesses the threats of new entrants, the bargaining power of suppliers and buyers.
• It Also assessed the threat of substitute products or services.
• Includes the level of rivalry among competitors.

Corporate-Level Strategy

• Growth strategy involves expansion, often through innovation.
• Stability strategy involves little or no significant change.
• Defensive strategy involves a reduction in the organization's effort.

Porter's Five Competitive Forces

• Cost-leadership (wide), differentiation strategy (wide).
• Cost-focus strategy (narrow), focused-differentiation strategy (narrow).

Role of Strategic Management

• Provides managers with a roadmap to achieve objectives.

Strategy Defined

• Sets long term goals and direction for the organization

SWOT Analysis

• A company assesses its strengths, weaknesses, opportunities, and threats.

VRIO Framework

• Framework for analyzing a firm's resource/capability to determine competitive strength or power
• Value, Rarity, Imitability and Organization

Terms

• Forecasting is a vision or projection of the future.
• Trend analysis is a hypothetical extension of past events.
• Contingency planning involves creating alternative hypothetical scenarios.
• Benchmarking is a process of comparing performance with high-performance organizations.

Corporate Strategies

• Business strategies & Functional strategies
• Diversification strategies involve moving into new lines of business.
• Vertical integration involves expanding into businesses that supply or distribute its products.

Aligning Organizational Culture, Structure, and HR Practices

• Alignment is needed for successful strategic execution as companies grow.

Characterizing an Organization's Culture

• Four types of organizational cultures: Clan, adhocracy, market, and hierarchy.
• Clan culture emphasizes employee collaboration.
• Adhocracy culture emphasizes innovation.
• Market culture emphasizes competition and delivering results.
• Hierarchy culture emphasizes process management and reliability.

Cultural Change in an Organization

• It is a long and complex process.

Major Features of an Organization

• Common purpose unifies members
• Coordinated effort- working together for a common purpose
• Division labor: work specialization for greater efficiency
• Hierarchy of Power: The Command Chain

Organizational Structures

• Include Simple, functional, divisional (by product, customer, or geography), and matrix (combines functional and divisional).
• Horizontal structures use teams to improve collaboration.
• Hollow structures outsource certain functions.
• Modular firms assemble product "chunks" from outside contractors.
• Virtual companies respond to market opportunities.

Achieving Vision and Strategy

• Build the right Company Culture and support.
• Establish effective human resources practices.

Terms

• Organizational culture is the shared assumptions that determine how an organization perceives and reacts to its environment.
• Organizational structure is a formal system that coordinates and motivates members.
• Human resources practices manage human capital, including staffing, training, and compensation.
• Organization is a group of people working together for a specific purpose.

Importance of Strategic Human Resource Management

• It focuses on strategic human resources management processes and goals
• Improves their strategic advantage.

Recruiting and Hiring the Right People

• Internal recruiting, external recruiting, realistic job previews (RJP).
• Hybrid approaches: referrals and boomerangs.
• The Selection and background info, interviews, employment test.
• Unstructured Interview (Casual interviews) and the structured Interview. Resume verification.

Forms of Compensation

• Base pay- wages.
• Incentives are important
• benefits are also important

Onboarding, Learning, and Development Processes

• Assessment.
• Objectives.
• Selection.
• Implementation.
• Evaluation.

Effective Performance Management and Feedback

• define performance and monitor and evaluate performance.
• Review Performance-provide consequenses

Guidelines for Handling Promotions, Transfers, Discipline, and Dismissals

• Promotion and transfer is very important, for reasons like organizational problem-solving, broadening experience, retaining motivation, and addressing employee problems.

Disciplining and Demotion

• Laid off is temporary, downsizing is permanent.
• Exit interviews find out why the employee is leaving.
• No disparagement agreements prevent criticism.

Legal Considerations for Managers

• Sarbanes-Oxley Act prohibits demoting or firing employees who raise fraud accusations.
• Family and Medical Leave Act requires 12 weeks of unpaid leave for family reasons.
• Civil Rights Act, Title VII prohibits discrimination based on race, color, religion, national origin, sex, or sexual orientation.
• The Age Discrimination in Employment Act (ADEA). prohibits discrimination in employees over 40.
• Americans with Disabilities Act (ADA) prohibits discrimination against qualified employees with disabilities.
• Civil Rights Act amends laws and permits suits for punitive damages in cases of intentional discrimination.

Labor-Management Issues

• Relate to how workers organize and form unions.
• Unions can petition the NLRB to become the bargaining unit to represent workers
• Management representatives take collective bargaining results back to the members for ratification when an agreement is reached

Approaches to Strategic HRM

• Talent management and High performance work systems

Two Types of Performance Appraisals

• Objective- based on facts subjective- based on managers opinion

Terms

• Objective appraisals are based on facts and are often numerical.
• Subjective appraisals are based on a manager's perception of an employee's traits or behaviors.
• Performance appraisal (review) is a management process assessing performance and providing feedback.
• Human resource management is the process of planning for, attracting, developing, and retaining an effective workforce.
• Human capital is the economic potential of employee knowledge and experience.
• Social capital is the economic potential of trusting relationships.
• Recruiting involves attracting qualified applicants.
• Internal recruiting involves making current employees aware of job openings.
• External recruiting involves attracting applicants from outside the organization.
• Selection is the process of screening applicants and choosing the best candidate.
• Base pay is the basic wage or salary.
• Incentives are financial rewards to induce performance.
• Benefits are nonmonetary forms of compensation to improve employees' lives.

Explore the rewards and functions of exceptional management. Learn about planning, organizing, leading, and controlling. Understand the roles of functional and general managers in achieving organizational goals.