Itm summary.docx.pdf

Itm summary Chapter 1 Introduction to Management - The definition of management Management = the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. Efficiency: the am...

Itm summary Chapter 1 Introduction to Management - The definition of management Management = the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. Efficiency: the amount of resources that is used to achieve a organizational goal. Based on how much raw materials, money and people are necessary for producing a given volume of product The amount of resources to produce a product or service Effectiveness: the degree to which organization achieves a stated goal or succeeds in accomplishing what it tries to do. Organizational effectiveness: providing a product or service that customers value ⮚ Higher effectiveness comes with lower efficiency; higher efficiency comes with lower effectiveness. So companies have to make a choice for higher effectiveness at the cost of efficiency or higher efficiency at the cost of the effectiveness; a so called “trade off”. ⮚ Good management is important because organizations contribute so much to the society ⮚ Performance is defined as the organizations ability to attain its goals by using resources in a efficient and effective manner - The four management functions 1. Planning = identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them. In other words, managerial planning defines where the organization wants to be in the future and how to get there. 2. Organizing = following the planning and reflecting how the organization tries to accomplish the plan. This involves assigning tasks, grouping tasks into departments, delegating authority and allocating resources across the organization. 3. Leading = the use of influence to motivate employees to achieve organizational goals. This means creating a shared culture and values, communicating goals to people  throughout the organization and infusing employees with the desire to perform at a high level. 4. Controlling = monitoring employees’ activities, determining whether the organization is moving towards its goals and making corrections as necessary. - Management skills Although some management theorists propose a long list of skills, the necessary skills for managing a department or an organization can be placed in three categories: conceptual, human and technical. Conceptual skills: the cognitive ability to see the organization as a whole system and the relationships among its parts. This involves knowing where one’s team fits into the total organization and know how the organization fits into the industry, the community and the broader business and social environment. ⮚ Conceptual skills are needed by all managers but mostly managers at the top. Many of the responsibilities op top-managers such as decision making, resource allocation and innovation require a broad view Human skills: the ability to work with and through other people and to work effectively as a group member. This is demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate and resolve conflicts. ⮚ Human skills are essential for frontline managers who work with employees on a daily basis. But also all managers need them Technical skills: the understanding and proficiency in the performance of specific tasks. This includes mastery of the methods, techniques and equipment involved in specific functions such as engineering, manufacturing or finance. It also includes specialized knowledge, analytical ability’s and the competent use of tools and techniques to solve problems in that specific area - What do managers do? 1. Set Objectives: establish goals for the group and decide what must be done to achieve them 2. Organize: divide work into manageable activities and select people accomplish tasks 3. Motivate and Communicate: create teamwork via decisions on pay, promotions etc and through communication 4. Measure: set targets and standards; appraise performance 5. Develop people: recognize the values of employees and develop the critical organisational asset - Manager levels Top management: president, CEO, executive, vice presidents Middle management: business unit head, department managers First – line management: team leaders, functional head, supervisors - Management types vertical Top manager: Responsible for the entire organization Middle manager: Responsible for major divisions or departments First-line manager: Responsible for production of goods and non-management employees - Management types horizontal Functional managers: Responsible for departments that perform specific tasks General managers: Responsible for several departments - Manager roles Informational: describe the activities used to maintain and develop an information network. ⮚ Monitor: seek and receive information; scan Web, periodicals, reports; maintain personal contacts ⮚ Disseminator: forward information to other organization members; send memos and reports, make phone calls ⮚ Spokesperson: transmit information to outsiders through speeches, reports Interpersonal: pertain to relationships with others, related to the human skills; figurehead, leader, liaison ⮚ Figurehead: perform ceremonial and symbolic duties such as greeting visitors, signing legal documents ⮚ Leader: direct and motivate subordinates; train, counsel and communicate with subordinates ⮚ Liaison: maintain information links inside and outside the organization; use e-mail, phone, meetings Decisional: must make choices and take action ⮚ Entrepreneur: initiate improvement projects; identify new ideas, delegate idea responsibility to others ⮚ Disturbance handler: take corrective action during conflicts or crises; resolve disputes among subordinates ⮚ Resource allocator: decide who gets resources; schedule, budget, set priorities ⮚ Negotiator: represent team or department’s interests; represent department during negotiation of budgets, union contracts, purchases - 4 challenges for new managers 1. The Increased Workload 2. The Challenge of Supervising former peers 3. The headache of responsibility for other people 4. Being caught in the middle: Being caught between upper management and the workforce - Shift in approach in Today's World From traditional to new competencies Controller-> Enabler Supervising-> Leading Autocratic -> Empowerment ⮚ Organization: social entity that is goal directed and deliberately structured Social entity: being made up by two or more people Goal directed: designed to meet some outcome (ex: making profit)  Deliberately structured: task are divided and responsibility for their performance is assigned to organization members ⮚ Managers fail because of poor communication and poor interpersonal skills ⮚ A managers weaknesses becomes more apparent during stressful times op uncertainty, change or crisis Chapter 3 The Organization and Corporate Culture - Internal environment: the environment that includes the elements within the organization's boundaries - External organizational environment: includes all elements existing outside the boundary of the organization that have the potential to affect the organization - External environment: includes competitors, resources, technology and economic conditions that influence the organization General Environment: mostly affects organizations indirectly, including social, economic, legal-political, international, natural and technological factors that can influence all organizations with differing impacts Dimensions: ⮚ International: Portion of the external environment that represents events originating in foreign countries ⮚ Technological: dimension of the general environment that includes scientific and technological advancement in a specific industry as well in society as large ⮚ Socio-cultural: dimension of the general environment representing the demographic characteristics, norms, customs and values of the population within which the organization operates. ⮚ Economic: dimension of the general environment representing the overall economic health of the country or region in which the organization operates. ⮚ Legal-political: dimension of the general environment that includes federal, state and local government regulations and political activities designed to influence company behaviour. ⮚ Natural: dimension of the general environment that includes all elements that occur naturally on earth including plants, animals, rocks and natural resources such as air, water and climate. Task Environment: is closer to the organization itself and includes the sectors that conduct day to-day transactions with the organization and directly influence its basic operations and performance. Includes competitors, suppliers, consumers and labour market ⮚ Consumers: people and organizations in the environment that acquire goods or services from the organization. They determine the organizations success ⮚ Competitors: organizations in the same industry or type of business that provide goods or services to the same set of consumers ⮚ Suppliers: provide the raw materials that the organizations uses to produce there output ⮚ Labour market: represents people in the environment who can be hired for the organization - Organizational ecosystem: includes organizations in all sectors of the task and general environment that provide resource and information transactions, being flows and linkages necessary for an organization to thrive - Organization-Environment Relationship: The reason for why organizations care so much about factors in the external environment is that the environment often creates great uncertainty for organization managers, and they must be willing and able to response by designing the organization to be adaptable to the environment. Environmental uncertainty: Uncertainty means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes. Environmental characteristics that influence uncertainty are the number of factors that affect the organization and the extent to which those factors change Adapting to the environment: Environmental changes may evolve unexpectedly, such as shifting customer tastes for social media sites, or they may occur violently, such as the devastating Japanese earthquake and tsunami. The level of turbulence created by an environmental shift will determine the type of response that managers must make in order for the organization to survive - The international environment: corporate culture Organizational culture: the set of key values, beliefs, understandings and norms shared by member of an organization Symbol: an object, act or event that conveys meanes to other Story: a narrative based on true events and is repeated frequently and shared among organizational employees Hero: a figure who exemplifies the deeds, character and attributes of a strong culture Steve jobs was a hero at apple, representing the creativity, risk-taking and striving for excellence values that define the company’s culture Slogan: such as Disney’s “the happiest place on earth” expresses a key corporate value Managers hold ceremonies, planes activities at special events, to reinforce company values - Types of culture: adaptability culture: A culture characterized by values that support the company's ability to interpret and translate signals from the environment into new behaviour responses. achievement culture: A results-oriented culture that values competitiveness, personal initiative and achievement involvement culture: A culture that places high value on meeting needs of employees and values cooperation and equality. consistency culture: A culture that values and rewards a methodical, rational, orderly. - Managers emphasize both values and business results to create a high-performance culture high-performance culture: A culture based on a solid organizational mission or purpose that uses shared adaptive values to guide decisions and business practices Culture enables solid business performance trough the alignment of motivated employees with the mission and goals of the company - Managers create and sustain adaptive high-performance cultures through cultural leadership - Cultural leaders: define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions ⮚ Strategic issues: events and forces that alter a organizations ability to achieve its goals. As environmental turbulence increases, strategic issues emerge more frequently ⮚ Interorganizational Partnerships: An increasingly popular strategy for adapting to the environment is to reduce boundaries and increase collaboration with other organizations. ⮚ boundary-spanning roles: Roles assumed by people and/or departments that link and coordinate the organization with key elements in the external environment. They detect and process information about changes in the environment, and they represent the organization interest to the environment. ⮚ Merger: The combining of two or more organizations into one. ⮚ Joint venture: A strategic alliance or programme by two or more organizations. Chapter 7 Managerial Planning and Goal setting - Goal setting and Planning overview Goal (future): a desired future circumstance or condition that the organization attempts to realize. Goals are important because organizations exist for a purpose, and goals define and state that purpose. Plan (now): a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions. Planning: the act of determining goals and defining the means of achieving them Levels of goals and plans 1. Planning starts with defining a formal mission that defines the basic purpose of the organization, especially for external audiences. 2. Strategic goals/plans get established by top managers, those reflect a commitment to both organizational efficiency and effectiveness. 3. Tactical goals/plans get established by middle managers that focus on the major actions the division must take to fulfill it part in the strategic plan set by top management. 4. Operational plans identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees. - Planning process - Goal setting in Organizations Goals are socially constructed, which means they are defined by an individual or group. Managers typically have different ideas about what goals should be, so they discuss and negotiate which goals to pursue. Organizational mission Organizational mission – the organization’s reason for existence At the top of the foal hierarchy is the mission being the organization’s primary reason for existence. The mission describes the organization’s values, aspirations and its reason for being. A well-defined mission is the basis for development of all subsequent goals and plans. Without a mission clarity, goals and plans may be developed haphazardly and are unlikely to take the organization in the direction it needs to go. The formal missions statement is a broadly stated definition of purpose that distinguishes the organization from others of a familiar type. Too often they can be rhetoric and have low impact on employee behaviour or how the organization really behaves with its public. The difference between the espoused values and the real values if made public can be very damaging to corporate reputations Goals and Plans Strategic goals: broad statements describing where the organization wants to be in the future. These goals pertain to the organization as a whole rather than to specific divisions or departments. Strategic plans: define the action steps by which the company intends to attain strategic goals. The strategic plan is the blueprint that defines the organizational activities and resource allocations – in the form of cash, personnel, space and facilities. Tactical goals: the results that major divisions and departments within the organization intend to achieve. These goals apply to middle management and describe what major subunits must do for the organization to achieve its overall goals. Tactical plans: designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy. Operational goals: precise and measurable goals, and the results expected from departments, work groups and individuals. Operational plans: the department manager’s tool for daily and weekly operations. Goals are stated in quantitative terms, and the department plan describes how goals will be achieved - Operational planning Managers use operational goals to direct employees and resources towards achieving specific outcomes than enable the organization to perform efficiently and effectively. One consideration is how to establish effective goals. Then managers use a number of planning approaches, including management by objectives (MBO), single-use plans and standing plans. Some companies use disaster planning so they are better prepared for dealing with crises that may arise in the future Criteria for effective goals Research has identified certain factors that characterize effective goals: 1. Effective goals must be specific and measurable; 2. Effective goals must have a defined time period;  3. Effective goals must cover key result areas; 4. Effective goals must be challenging but realistic; 5. Effective goals must be linked to rewards ⮚ Strategy map: a visual representation of the key drivers of an organizations success, showing the cause-effects relationship among goals and plan - Benefits and limitations of planning Benefits of planning: Goals and plans provide a source of motivation and commitment; Goals and plans guide resource allocation; Goals and plans are a guide to action; Goals and plans set a standard of performance. Limitations of planning: Goals and plans can create a false sense of certainty; Goals and plans may cause rigidity in a turbulent environment; Goals and plans can get in the way of intuition and creativity. - Planning for a Turbulent Environment One way managers can gain benefits from planning and control its limitations is by using innovative planning approaches that are in tune with today’s turbulent environment. Three approaches that help brace the organization for unexpected events are contingency planning, building scenarios and crisis planning Contingency planning: define company responses to be taken in case of emergencies, setbacks or unexpected conditions. To develop contingency plans, managers identify important factors in the environment, such as economic downturns, declining markets, increases in cost of supplies etc. Building scenario’s: involves looking at current trends and discontinuities and visualizing future possibilities. Rather than looking only at history and thinking about what could be. The events that cause the most damage to companies are those that no one even conceived of. Crisis planning: enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren’t prepared with a quick and appropriate response Chapter 13 Leadership - Leadership: The ability to influence people toward the attainment of goals - 3 aspects of leadership: people, influence and goals - Humility: being unpretentious and modest rather than arrogant and prideful - Contemporary Leadership (only two types): The concept of what is appropriate leadership should evolve as the need of organizations change. Leadership has evolved with technology, economic, labor, social, and cultural changes. A significant influence on leadership styles has been and will continue to be the turbulence and uncertainty of the environment. Servant leadership: A leader who serves other by working to fulfil followers needs and goals, as well as to achieve the organizations larger missions Servant leaders give away power, ideas, information, recognition, credit and money Authentic leadership: Type of leadership that refers to individuals who know and understand themselves, who espouse and act consistent with higher-order ethical values, and who empower and inspire others with their openness and authenticity. - From Management to leadership (no leadership traits) Good management is essential in organizations, yet managers have to be leaders too, because distinctive qualities are associated with management and leadership that provide different strengths for the organization. Management promotes stability and order within the existing organizational structure Leadership motivates toward vision and change Leadership cannot replace management, there should be a balance of both - Behavioural approaches Task versus people bias 2 Leadership behaviors (ohio state studie) 1. Consideration; people oriented Mindful of subordinates Respects ideas and feelings Establishes mutual trust 2. Initiating structure; task behavior Task oriented Directs work activities toward goals Compared the behavior of effective and ineffective supervisors (Michigan studies) Employee-centered leaders (most effective) ◦ Establish high performance goals ◦ Display supportive behavior Job-centered leaders (not effective) ◦ Less concerned with goal achievement/human needs ◦ Focus on meeting schedules, cost-management, and efficiency Leadership grid each axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high concern. Team management = (9,9) often is considered the most effective style and is recommended for leaders because organization members work together to accomplish tasks.  Country club management = (1,9) occurs when primary emphasis is given to people rather than to work outputs. Authority-compliance management = (9,1) occurs when efficiency in operations is the dominant orientation. Middle-of-the-road management = (5,5) reflects a moderate amount of concern for both people and production. Impoverished management = (1,1) the absence of a management philosophy; managers exert little effort towards interpersonal relationships or work accomplishment. - Contingency approaches- Only the concept (no Situational Model, no Fiedler’s contingency theory, no situational substitutes for leadership) (wel of geen situational model? Contingency approach: a model of leadership that describes the relationship between leadership styles and specific situations How can two people with widely different styles both be effective leaders? The answer lies in understanding contingency approaches to leadership, which explore how the organizational situation influences leader effectiveness. - Charismatic and Transformational Leadership Transformational versus Transactional leadership (no Charismatic leadership, no Followership) Transformational leadership: innovative, recognize employees needs, inspire employees, create a better future, promote significant change Transactional leadership: clarify tasks, initiate structure, provide awards, improve productivity, hard working, tolerant and fair-minded, focus on management - Power and Influence Power: the potential ability to influence the behavior of others Influence: the effect that a person’s actions have on the attitudes, values, believes or behavior of others. Position Power Legitimate power, reward power and coercive power are all form of position power used by managers to change employee behavior. Legitimate power: power coming from a formal management position in an organization and the authority granted to it. Once a person has been selected as a supervisor, most employees understand that they are obligated to follow his or her direction with respect to work activities. Reward power: stems from the authority to bestow rewards on other people. Managers may have access to formal rewards such as pay increases or promotions. They also have their disposal rewards such as praise, attention and recognition. Coercive power: refers to the authority to punish or recommend punishment. Managers have coercive power when they have the right to fire or demote employees, criticize them or withhold pay increases Personal Power (no other sources of power, no interpersonal influence tactics) Personal power most often comes from internal sources, such as an individual’s special knowledge or personal characteristics. Two types of personal power are expert power and referent power. Expert power: power resulting from a person’s special knowledge or skill regarding the tasks being performed. Referent power: comes from an individual’s personal characteristics that command other’s identification, respect and admiration so they wish to emulate that individual. Chapter 14 Managing Human Resources - The strategic role of Human Resource Management The strategic approach to HRM recognizes three key elements: 1. All managers are human resource managers; 2. Employees are viewed as assets. Employees, not buildings and machinery, give a company its workforce; 3. HRM is a matching process, integrating the organization’s strategy and goals with the correct approach to managing the firm’s human capital. Current strategic issues of particular concern to managers include hiring and retaining the right people with the following competencies: Becoming more competitive on a global basis; Improving quality, innovation and customer service; Applying new information technologies for e-business. All these strategic decisions determine a company’s need for skills and employees. - The influence of globalisation on HRM (no determining and attracting an effective workforce, no Rewarding and developing an effective workforce) An issue of significant concern for today’s organizations is competing on a global basis, which brings tremendous new challenges for HRM. Most companies are still in the early stages of developing effective HRM policies, structures and services that respond to the current reality of globalization. International human resource management (IHRM): a subfield that specifically addresses the added complexity that results from coordination and managing diverse people on a global scale. Research in IHRM has revealed that, as the world becomes increasingly interconnected, some human resource practices and trends are converging - Maintaining an effective workforce How do managers maintain a workforce that has been recruited and rewarded and developed? Maintenance of the current workforce involves motivation, job design and occasional terminations. Motivation: refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Employee motivation affects productivity, and part of a manager’s job is to channel motivation towards the accomplishment of organizational goals. The study of motivation helps managers understand what prompts people to initiate action, what influences their choice of action and why they persist in that action over time - Content perspectives on motivation Hierarchy of needs theory (no ERG theory) Hierarchy of needs theory: one of the early management theories proposed by Abraham Maslow. It proposes that people are motivated by multiple needs and that these needs exist in a hierarchical order  Two Factor theory Herzberg (no Acquired needs theory) Motivatiors: focus on high-level needs and include achievement, recognition, responsibility and opportunity for growth Hygiene factors: involves the presence or absence of job dissatisfier, such as working codintions, pay, company policies and interpersonal relationships. - Process perspectives on motivation Process theories: explain how people select behavioral actions to meet their needs and determine whether their choices were successful. The most popular process theory is probably equity theory. Equity theory (adams) Equity theory: focuses on individuals’ perceptions of how fairly they are treated compared with others. Compared to this, if people perceive their compensation as equal to what other receive for similar contributions, they will believe that their treatment is fair and equitable. People evaluate equity by a ratio of inputs to outcomes. Inequity occurs when the input-to-outcome ratios are out of balance. The most common methods for reducing a perceived inequity are: Change inputs: a person may choose to increase or decrease his or her inputs to the organization; Change outcomes: a person may change his or her outcomes; Distort perceptions: research suggests that people may distort perceptions of equity if they are unable to change inputs or outcomes; Leave the job: people who feel inequitably treated may decide to leave their jobs rather than suffer the inequity of being under- or overpaid Goal-setting theory (locke and latham) goal-setting theory: proposes that manager can increase motivation by setting specific, challenging goals that are accepted as valid by subordinates, then helping people track their progress towards goal achievement by providing timely feedback. Four key components of goal-setting theory:  Goal specificity: the degree to which goals are concrete and unambiguous; In terms of foal difficulty: hard goals are more motivating that easy ones; Goal acceptance: employees have to ‘buy into ‘the foals and be committed to them; Feedback: people get information about how well they are doing in progressing towards goal achievement. - Reinforcement perspective on motivation Reinforcement theory: looks at the relationship between behaviour and its consequences. It focuses on changing or modifying employees’ on-the-job behaviour through the appropriate use of immediate rewards and punishments Reinforcement tools (no schedules for reinforcement) ⮚ Behaviour modification: the set of techniques y which reinforcement theory is used to modify human behaviour. The basic assumption underlying behaviour modification is the law of effect ⮚ Law of effect: states that behaviour that is positively reinforced tends to be repeated, and behaviour that is not reinforced tends not to be repeated. ⮚ Reinforcement: anything that causes a certain behaviour to be repeated or inhibited Four types of reinforcement (Glenview et all)