Management Study Notes PDF

Inhoud {#inhoud.Kopvaninhoudsopgave} ====== [Management 1 2](#management-1) [Management 2 3](#management-2) [Management 3 10](#management-3) [Management 4 16](#management-4) [Management 5 22](#management-5) Management 1 ------------ 5 forces analysis Afbeelding met tekst, schermopname, Post-...

Inhoud {#inhoud.Kopvaninhoudsopgave} ====== [Management 1 2](#management-1) [Management 2 3](#management-2) [Management 3 10](#management-3) [Management 4 16](#management-4) [Management 5 22](#management-5) Management 1 ------------ 5 forces analysis Afbeelding met tekst, schermopname, Post-it-briefje, Lettertype Automatisch gegenereerde beschrijving Competitive strategies  **Stakeholders** Stakeholders are all actors that have an interest in the organization and can either affect or be affect by its goals decisions and actions. Stakeholder management steps: 1. Identifying relevant stakeholders and their interest 2. Evaluating stakeholders and their importance Management 2 ------------ **Problem identification** Comparison between current reality and some standard - Past performance - Previously set goals - Other organisations **Decision making process** 1. Identifying problem 2. Identifying criteria 3. Weighing criteria 4. Developing alternatives 5. Analysing alternatives 6. Selecting alternatives 7. implementing alternatives 8. evaluating decision **Common decision making errors and bias** 1. overconfidence 2. availability bias 3. immediate gratification 4. representation bias 5. anchoring effect 6. randomness bias 7. selective perception 8. sunk costs error 9. confirmation bias 10. self-serving bias 11. framing bias 12. hindsight **\ \ \ ** **Approaches: rational model & bounded reality** Rational model - Must act rationally - "Perfect world" - Logical an consistent choices to maximise value Bounded reality - Rational decisions but limited by ability to process information - Accept solutions are good enough rather than try to perfect **Approaches: intuition** 1. Experience-based decisions 2. Affect-initiated decisions 3. Cognitive-based decisions 4. Values or ethics-based decisions 5. Subconscious mental processing **Problems -- structured and unstructured** Structured - Straightforward and simple - Clear goal - Familiar problem - Information is well-defined and complete Unstructured - New and unusual - Unclear goal - Unfamiliar problem - Information is ambiguous and incomplete **Programmed and non-programmed decisions** Programmed - Repetitive decision that can be handled using a routine approach - Relies on previous solutions - Decision making process is much shorter - Example: purchasing new computers Non-programmed - Unique and non-recurring decision that requires a custom-made approach - At the top level, most problems managers face are non-programmed - Example: new organisational strategy **Group decision-making** Advantages - More complete information - Diverse experiences and perspectives - More alternatives generated - Increased acceptance (involvement) - Increased legitimacy Disadvantages - Time consuming - Minority domination - Ambiguous responsibility - Pressure to conform -\> groupthink **Why plan?** - Coordinated efforts - Reduces uncertainty - Reduced overlap - Goals and standards **Types of plans** Breadth -\> strategic / tactical Time frame -\> long / short term Specificity -\> specific / directional Frequency of use -\> single use / standing **Setting goals** - Mission and tasks - Resources - Determine goals - Write down - Feedback mechanism - Link rewards to achieving goals **Identifying missions, goals and strategies** - Vision: What do we want to be? - Mission: Our purpose - Goals: What we must achieve to be successful - Values: Our ethical terms - Objectives: Specific outcomes expressed in measurable terms - Targets: Desired level of performance **Organisational strategies & competitive advantage** - Corporate strategy: Specifies what businesses a company is in what it wants to do with those - Competitive strategy: How an organisation will compete in its business(es) - Functional strategy: Strategy used in functional departments (e.g., HR, marketing, finance) to support the competitive strategy What sets us apart from others? -\> Use strategic management to get a sustainable competitive advantage Corporate strategy: Growth, stability or renewal Competitive strategy - Cost leadership - Differentiation - Focus/niche - Stuck in the middle Strategical weapons - Customer service - Employee skills and loyalty - Innovation - Quality - Social media - Big data **Organisational change** **Structure** Authority relationships\ Coordination\ Departments and teams\ Job design **People** Attitudes\ Expectations\ Perceptions\ Behaviour **Technology** Processes and methods\ Equipment\ Software changes **Who initiates change** ANYONE can be a "change agent" -- managers and non-managers - Reach a shared understanding with stakeholders about source, content and direction of change - Engage stakeholders throughout devising and implementing the change strategy - Respect diversity of contribution and approach in handling and managing change - Build trusting relationships - Seek to learn continuously from the change and share new learning - Take responsibility for change process Three phase change process: Unfreezing, changing, refreezing **Why do people resist change?** - Uncertainty - Habit - Concern over personal loss - Not in an organisations best interest **Managers can reduce resistance** Manager must be a role model for flexibility and adaptability - As an employee, the manager is also likely to be (equally) affected by the change - Manager should minimise the negative reactions of the work group, raise morale and ensure continued productivity - Manager who can adapt as circumstances change stands a much greater chance of success:\ (1) Tell employees what to do\ (2) convince them of the necessity for doing it\ (3) involve them in planning for the change **Techniques to reduce resistance** 1. Education and communication - to clear up misunderstandings 2. Participation - to involve acceptance of important resisters 3. Facilitation and support - to make needed adjustments 4. Negotiation - to "buy" commitment 5. Manipulation - as an easy way to gain support when a powerful group is needed 6. Coercion - to force those resisting against the change Management 3 ------------ **Innovation** is a change that create a new dimension of performance - Includes both improvements in technology and better methods or ways to do things.  Why innovation? - Creates change and opportunity - Creates profit and sustains competitive advantage - Key to market entry, growth and survival of an organisation  - Changes industries over time, occasionally it may even create entirely new ones There is a strong correlation between market performance and new products/services - Sales growth does not only come from low prices but also from a variety of non price factors **Shifts** in the economic field, is what people feel, believe, expect and earn. An economic shift in the field creates opportunities and constraints. **Legislation** may open new pathways, or close down others  **Competitors** may introduce new products that you don\'t have which represent a major threat.  **Potential strategic advantages** 1. **Novel product/service,** offer something that nobody else can offer, introducing the first in the world 2. **Novel process,** offer something in a better way(fasten, cheaper etc), internet banking and online shopping 3. **Complexity,** offering something others find difficult to master, aircraft engines etc  4. **Legal protection,** offer something others cannot do unless they pay a license/fee 5. **Competitive factors,** move basis of competition (price to price and quality of price) 6. **Timing,** the first mover advantage can be worth significant market share  7. **Platform Design,** creating a platform on which other generations can be built  8. **Disruption,** offers a completely new product making old ones redundant 9. **Reconfiguration,** rethinking the way in which the system works together 10. **Application context,** taking a already consisted product and with that product apply in different markets Private organisations tend to engage more in the later stages of commercializing the innovations than public organisations.  - Much of the risk of innovation is taken by the public sector  **Innovation is not about inventing,** invention is coming up with good ideas but making those inventions work both technically and commercially  - Innovation is about making those ideas work and exploiting the idea  **Incremental improvements** improve on something that already exist, but expand opportunities and solve existing problems  - Continuous quality improvement  **Disruptive / radical innovations create new players and markets while marginalizing old ones,** game changers, dramatic value for those who successfully implement and adapt to the innovation  **Types of innovation (4p's)** - **Product innovation** improvement of an existing products or a completely new product or improvements in its design and functional qualities - Often new sources of revenue  - **Process innovation** changes in the ways which they are created and delivered, change the process - Often cost optimising  - **Position/marketing innovation** improvements in the marketing of an existing product  - **Paradigm innovation** changes in established market conventions associated with the creation of radically new markets  Small organisations move quicker from market to market, play crucial in introducing radical disruptive innovations Large organisations have a resource advantage and can absorb high cost better, but can\'t move quickly to another market.  Goals of innovation management is developing an organisational structure that facilitates innovation at low cost and high speed - Increase and accelerate return on investments of innovations efforts  - Create corporate climate that facilitates innovation  - Identify and deal with barriers Innovation management can fail due to: - Poor goal definition - Poor alignment of goals to actions - Poor participation in teams - Poor monitoring of results - Poor communication and access to information  Creativity is important to: - Seek out a business opportunity - Identifying unmet needs in the marketplace - Finding innovative ways to meet these needs **Measuring creativity:** - **Conceptual fluency** than you are able to produce many ideas  - **Mental flexibility** adapt at thinking - **Originality** able to produce atypical responses to problems - **Suspension of judgment** do not analyze too quickly - **Impulsive** act impulsively to an idea, expressing god feeling  - **Anti-authority** always willing to challenge authority  - **Tolerance** high tolerance towards the ideas of others  **Barriers to Creativity and Innovation** **Belief in a Single Solution:** The mindset that only one correct solution exists limits the creative process. Creativity thrives when multiple approaches are explored and considered. **Practical and Logical Approaches Dominate:** While logic and practicality are valuable, over-relying on them can stifle creativity. Innovation often requires the freedom to experiment and consider unconventional ideas. **Narrow or Over-Focused Thinking:** Creativity benefits from open-mindedness and exploring different perspectives. Excessive focus can restrict \"outside-the-box\" thinking. **Unquestioned Acceptance of Problem Assumptions:** Failing to question the underlying assumptions of a problem can limit creative solutions. Critical analysis of the problem itself can often reveal new directions. **Strict Adherence to Rules:** Rules and norms can be useful, but when accepted without question, they limit creative potential. Creative thinking often requires bending or reinterpreting established guidelines. **Discomfort with Uncertainty and Ambiguity:** Creativity and innovation frequently involve risk and unknown outcomes. Reluctance to embrace uncertainty can hinder exploration and idea generation. **Fear of Appearing Unconventional:** Worrying about being judged for unusual ideas can prevent people from suggesting innovative solutions. Creativity often demands boldness in proposing ideas that may seem "crazy" at first. **Risk Aversion:** Innovation involves stepping outside comfort zones. A reluctance to take risks can hinder the development of groundbreaking ideas. **Doubt in One's Own Creativity:** Believing that creativity is an inherent trait, rather than a skill that can be developed, can prevent individuals from attempting to think creatively. **Echo chamber** are people surround them self with people who think the same so their dominant logic is reinforcing - Ideas that are commonplace for one group might spark inspiration for another Discovery skills:  Networking, Actively seek out new information and knowledge from others Observing, Observe phenomena and behaviour to gain insights Questioning,Be curious and challenge conventional wisdom Associating, Make connections between things that do not appear connected Experimenting, Try out new ideas - take risk Management 4 ------------ **Entrepreneurship** Entrepreneurship is not: 1. Only one idea 2. Easy 3. A risky gamble 4. Only found in small businesses 5. Entrepreneurial ventures and small businesses are the same Entrepreneurs create entrepreneurial ventures (EV): Organisations that pursue opportunities, are characterised by innovative practices\ and have growth and profitability as their main goals Although EVs start small, they pursue growth. Some new firms may grow, but many remain small businesses, by choice or by default **Types of entrepreneurs** 1. Opportunity based 2. Necessity based 3. Serial: sold/closed a business, founded another one 4. Portfolio: builds a portfolio of additional businesses **Entrepreneurial mindset** 1. Need for independence: doing things differently 2. Internal locus of control: believe in luck, not faith. Control your own destiny 3. Need for achievement 4. Drive and determination 5. Creativity and optimism 6. Accept risk & uncertainty: willing to make decisions based on incomplete information **What do entrepreneurs do?** **A social entrepreneur seeks out opportunities to improve society by using\ practical, innovative and sustainable approaches** **Why be more socially and environmentally responsible?** - Protect environment - Cut costs - Enhance brand identity - Create commercial opportunity - Improve staff motivation **Intrapreneurship** - Change - continuous and unpredictable, often turbulent and disruptive, has so far characterised the 21^st^ century - Big companies find it increasingly difficult to deal with this new age of uncertainty and super-competition - Smaller businesses react by innovating -\> larger companies react by downsizing, concentrating and subcontracting - Cost savings through scale efficiencies rather than differentiation (large business) Real contribution entrepreneurs make to innovation can be overestimated -\> 22/30 of the innovations were conceived by employees. **Environments where entrepreneurial firms thrive** - Markets where new technologies are important - Markets that value creativity - New or changing markets - Interconnected markets - Markets where information and knowledge are important - Price-sensitive markets - Markets coming to an end of their life-cycle **\ ** **Building an entrepreneurial firm** - Leadership and management, culture, structure and strategies should allow flexibility to change and to maximise commercial opportunities like an entrepreneur could. - Motivate people to achieve, offer rewards and give them a sense of ownership in the organisation - Encourage a culture that empowers staff to make decisions - Encourage open communication, knowledge and information sharing and mutual learning **Human resource management** **The HRM process** - Recruitment & selection - Training & development - Employee relations - Compensation - Performance appraisal **Strategic importance of HRM** - HRM evolved from administrative to strategic partner - Aligns HRM with organisational goals for workforce agility, skill, and motivation - Effective training programs and performance incentives drive individual and corporate success **Environmental influences of HRM** **Recruitment and selection** - Attracting candidates - Finding the best fit - Interviews, tests, and background checks - Aligning hiring with organisational goals - Sourcing, screening, selecting, and hiring **Onboarding** 1. Job orientation 2. Unit orientation 3. Organisation orientation **Training and development** - Training focuses on helping employees acquire job-specific skills - Development prepares employees for future roles - Methods include on-the-job training, mentoring, and e-learning - Training addresses skill gaps and boosts productivity - Development supports succession planning and retention **Performance management** - Evaluates and improves employee contributions - Tools include appraisals, feedback, and goal-setting - Managers provide regular feedback and set clear expectations - Performance appraisals are conducted annually or biannually **Compensation and benefits** - Includes wages/salaries, bonuses, and benefits like health insurance and retirement plans - Attracts top talent and motivates employees - Benefits contribute to job satisfaction and work-life balance - Variable pay or performance-based compensation aligns employee goals with organisational success, rewarding productivity and achievement - Strategies for retaining high-performing employees include fair pay, development opportunities, and work-life balance **Employee relations and well-being** - Focuses on positive work environment and conflict resolution - Implements well-being initiatives like stress management, flexible hours, and assistance programs - Enhances job satisfaction and reduces turnover - HR manages conflicts, disciplinary actions, and fosters fair workplace culture **Legal aspects** - Covers discrimination, health and safety, wages, and working conditions - Can lead to legal issues and reputational damage - Key laws include Civil Rights Act - HR professionals need to stay updated on legal changes **Diversity and inclusion** Diversity encompasses race, gender, age, and cultural background - Inclusion ensures all employees feel valued and respected - HR promotes diversity through recruitment, training, and anti-discrimination policies - A diverse and inclusive workforce brings varied perspectives, fostering innovation and improving decision-making - Strong D&I initiatives lead to higher engagement, reduced turnover, and enhanced reputation - Fostering inclusion involves Diversity Training, encouraging respect, and supporting open communication **Technology and HRM** - Utilisation of HRIS (Human Resource Information Systems) for recruitment, performance management, and payroll automation - Support for remote work and collaboration - AI and analytics enabling data-driven hiring, retention, and development decisions - Management of concerns like data privacy and technology\'s impact on job roles **Trends in HRM** - Rise of gig economy (contingent freelance work), remote work, and employee wellness - Rapid technological advances necessitate upskilling and reskilling\ HRM must adapt policies, rethink engagement strategies, manage diverse workforce - Modern HRM challenges include downsizing, workforce diversity, and sexual harassment Management 5 ------------ **Internal organization** Work specialization = Dividing work activities into separate job tasks; also called division of labour Vertical division of labour in firms =\> delegation = Transfer of decision-making authority from a higher-level to a lower-level organizational unit (department, position) in the firm  Simple structure =\> has a low departmentalization, wide spans of control, authority centralized in a single person, and little formalization Vertical division of labour: the example of delegation in a large farm  Departmentalization =\> formation of equal organizational units in the company, which to a certain extent work independently of each other to cope with the companies tasks Afbeelding met tekst, schermopname, Lettertype, nummer Automatisch gegenereerde beschrijving **Different types of departmentalization** - Functional: Groups employees based on the work function performed - Product: Groups employees based on major product areas in the cooperation - Customer: Groups employees based on customers' problems and needs - Geographic: Groups employees based on location served - Process: Groups employees based on basis of work or customer flow **Authority =\>** The rights inherent in a managerial position to give orders and expect the orders to be obeyed **Responsibility =\>** When receiving authority employees must also have corresponding responsibility to perform and must be held accountable for this performance **Power =\>** Refers to an individuals capacity to influence decisions - Legitimate power: Power based on one's position in the formal hierarchy - Reward power: Power based on the ability to distribute something that others value - Coercive power: Power based on fear - Expert power: Power based on one's expertise, special skill, or knowledge - Referent power: Power based on identification with a person who has resources or traits **Span of control:** Contingency variables to be considered when defining the most efficient and effective number of employees to be managed by a manager =\> The number of employees a manager can efficiently and effectively supervise. - Employees' managerial experience and training - Similarity of employee tasks - Complexity of employee tasks - Physical proximity of employees - Amount and type of standardized procedures - Sophistication of the organizations' management information system - Strength of the organizations' value system - Preferred managing style of the particular manager **Centralization (top down):** The degree to which decision making takes place at upper\ levels of the organization **Decentralization (bottom up):** The degree to which lower-level managers provide input or actually make decisions  - Managers need to choose the degree of (de)centralization that allow them to best implement their decisions and achieve organizational goals **Formalization** =\> Refers to how standardized an organization's jobs are and the extent to which employee behaviour is guided by rules and procedures **Contemporary organizational design** - **Team structure** =\> Is a structure in which the entire organization is made up of work teams that do the organization's work. - **Matrix structure** =\> Is a structure that assigns specialists from different functional areas to work on projects who then return to their areas when the project is completed. - **Project structure** =\> Is a structure in which employees continuously work on projects. As one project is completed, employees move on to the next project. - **Boundaryless structure** =\> Is a structure not defined by or limited to artificial horizontal, vertical, or external boundaries. - **Learning structure** =\> Is a structure in which employees continually acquire and share new knowledge and apply that knowledge **Managing groups and teams** Afbeelding met tekst, schermopname, Lettertype, Parallel Automatisch gegenereerde beschrijving **Managing groups and teams -\> difference between work teams & work groups** **Managing groups and teams -\> team effectiveness model** Afbeelding met tekst, schermopname, Lettertype, nummer Automatisch gegenereerde beschrijving **Managing groups and teams -\> The five dysfunctions of a team**  **Managing groups and teams** **Social loafing:** Deliberate, mostly hidden performance reduction in connection\ with a decrease in the motivation of the employees of a team **Leader activities for avoiding social loafing** - Selection of team-members with a high level of team-orientation - Limited number of members (8-10) - Formulation of measurable goals for individual team members - Creation of transparency and comparability of team-member\ performance - Clarification of the uniqueness of team-members individual\ contribution to the team-performance - Increasing team-cohesion **Managing groups and teams -- composition and work design** Afbeelding met tekst, schermopname, Lettertype, cirkel Automatisch gegenereerde beschrijving **\ ** Management 6 ============ **Organizational culture** - Dimensions - Individual culture - Effect on managers and employees - Measuring and changing culture **Organizational culture at Google** - Flexibility - Skilled colleagues - Fostering creativity - Trust - Shared values - Constant innovation - Employee focussed - Clear purpose **What is organisational culture** Web of unspoken, prevalent norms, basic beliefs and assumptions about the "right" way to behave "How it is around here" - Perceived - Descriptive - Shared **Dimensions of culture** - Invidualism vs collectivism - Degree to which people prefer to act as individuals rather than groups - Power distance - Degree of inequality among people that the community is willing to accept - Uncertainty avoidance - Degree to which people prefer to avoid ambiguity, resolve uncertainty and prefer structured situations - Masculinity vs femininity - Masculine: achievement, assertiveness, competition, success - Feminine: modesty, compromise and cooperation **Measuring an individual's culture** - Communicating - simple, clear and precise vs nuanced, more interpretable - Evaluating - Preference for direct vs indirect criticism - Persuading - Principles-first (theory) vs application-first (practice) - Leading - Degree of respect for authority and hierarchy - Deciding - Consensual group decision-making vs one person - Trusting - Task-based (from the head) with relationship-based (heart) - Disagreeing - View on confrontation -- does it improve or harm relationhips - Sceduling - Time and time-keeping is expected or flexible **Organisation cultures -- four types** - Power culture - Power is concentrated on the centre (manager) - Role culture - Clearly defined roles & procedures (bureaucracy) - Task culture - Allocating people & resources most efficiently - Personal culture - Management and power is shared -- freedom is key **\ ** **Culture that enhances learning** **+** - Balances interest of all stakeholders - Focuses on people rather than systems - Makes people believe they can change things - Makes time for learning - Takes an holistics approach to problems - Encourages open communication - Believes in teamwork - Has approachable leaders **-** - Believes tasks are more important than people - Focuses on systems rather than people - Allows change only when absolutely necessary - Is preoccupied with short-term coping and adapting - Compartmentalises problem-solving - Restricts information flow - Believes in competition between individuals - Has controlling leaders **Entrepreneurial vs bureaucratic cultures**  **\ ** **Cultural iceberg** - Physical artifacts - Intangible activities and routines - Underlying values, assumptions and belief Much of the culture is below the surface... **Effects of organisational culture** Organisational culture impacts decisions, behaviours and actions of the organisation's employees - Employees -\> affects their actions and behaviour - Managers -\> affects how they plan, organise, lead and control **Changing culture** Afbeelding met tekst, schermopname, Lettertype, logo Automatisch gegenereerde beschrijving **Individual behaviour** - Attitude - Personality - Motivation theories **\ ** **Organisational behaviour (OB)** Individual behaviour - Attitudes - Personality - Perception - Learning - Motivation Group behaviour - Norms - Roles - Team building - Leadership - Conflict Organisational aspects - Structure - Culture - HR policies - Procedures - Practices **Attitude** Evaluative statement - favourable or not -concerning objects, people or events Examples: job satisfaction -- involvement -- organisational commitment - Cognition - Affect - Behaviour **\ ** **Employee engagement** - Respect - Type of work - Work-life balance - Providing good service to customers - Base pay **Personality -- Big five (OCEAN)**  **Motivation** - Extrinsic and intrinsic motivators - Motivation theories - Pas as a motivator Motivation: the will and desire that a person has to engage in a particular behaviour or perform a particular task - Extrinsic: Reward that is given by someone else (e.g. the employer) Example: pay, company car, promotion - Intrinsic (tends to be more powerful): Reward that a person senses for themselves, rather than it being provided by someone else Example: sense of achievement **Hierarchy of needs (Maslow)** **Theory X and Y** McGregor -- based on two assumptions about human nature **X Y** - Workers have little ambition - Workers want to work - Want to avoid responsibility - Take responsibility - Need to be closely controlled - Will direct themselves **Pay as a motivator**