Management Final Revision PDF

Lecture 7 ========= Decision making and specific tools Decision making process includes - Identifying a problem/task - Sales manager needs a new computer - Identifying decision criteria - Memory - Display - Battery life - E.T.C - Allocating the weights t...

Lecture 7 ========= Decision making and specific tools Decision making process includes - Identifying a problem/task - Sales manager needs a new computer - Identifying decision criteria - Memory - Display - Battery life - E.T.C - Allocating the weights to criteria - Memory-10 - Display-8 - Battery life-6 - Developing alternatives - HP probook - Macbook - Lenovo Idea - Analyzing alternatives - HP probook-90 - Macbook-78 - Lenovo Idea-54 - Selecting an alternative - HP probook - Implementing an alternative - Hp probook - Evaluating the decision effectiveness There are multiple approaches to decision making. The following being: - Rational Decision-making: [decisions which are logical and consistent to maximize value] - Bounded Rationality: [decision making which is rational but limited/bounded to the individual's ability in processing information] - Intuitive Decision-making: [decisions based on the basis of experience, feelings, accumulated judgement] - Evidence-Based Management: [the systematic use of the best available evidence to improve management practice] Types of decisions, decision-making conditions and styles - Structured problems: Straightforward, familiar or easily defined problems - Programmed decision: Repetitive decision that can be handled by a routine approach - Procedure: A series of steps used by managers to respond to structured problems - Rule: An explicit statement that tells the manager what can and can not be done - Policy: A guideline for decision-making - Unstructured problems: new or unusual problems, where information is ambiguous or incomplete - Non-programmed decision: Unique and non-recurring decisions, which require custom solutions - Decision-Making conditions: - Certainty: Decisions can be made accurately, because all outcomes are known - Uncertainty: Decisions where managers neither have certainty or probability estimates for the outcomes - Risk: Likelihood of certain outcomes of decisions can be estimated by managers. - Decision-Making styles - Linear thinking style: Usage of external data and the processing of its facts through rational, logical thinking is preferred - Non-linear thinking style: Managers prefer internal data processing (intuition and feelings) when processing info and making decisions Case study approach and tools Case study approach: detailed and in-depth examination of a particular case within the real-word containing context, which helps managers make decisions Swot Analysis: A method for analysis by identifying Internal, External factors, as well as, Positive and Negative Trends of the latter. **S**trengths **W**eaknesses **O**pportunities **T**hreats SWOT characteristics - Identification of factors showing the internal and external environment of an object - Assessment and ranking of the latter factors - Strategy development based on combination of these factors - Strengths - Opportunities (SO) , (Strategy of Power): Using strengths to take advantage of opportunities - Weaknesses - Opportunities (WO), (Strategy of improvement): Using opportunities to mitigate weaknesses - Strengths - Threats (ST), (Strategy of Defense): Using strengths to negate the the impact of threats - Weaknesses - Threats (WT), (Strategy of Prevention): Combining weaknesses and threats to mitigate damages and avoid losses Lecture 9 ========= Foundations of planning and strategic management Planning: A management function, which involves setting the organization's goals, strategy establishment, and achieving said goals, as well as, developing plans to incorporate them in work activities; [Planning establishes the basis for organization, leading and control e.t.c.] Why planning is important: - Provides Direction - Reduces Uncertainty - Minimizes waste and redundancy - Establishes goals or standards in controlling Plans: Documents that outline how the goals are going to be met; They include resource allocations, schedules and other related attributes Goals/Objectives: Represent desired outcomes or targets. They guide management decisions and form the criterias against which work results are measured Stated Goals: Official statements of what an organization says, and what it wants its shareholders to believe its goals are Real Goals: Goals which the organization pursues, as defined by the actions of its members Types of Plans: - **Breath** - Strategic: Applies to the entire organization and establishes its overall goals - Operational: Encompasses a particular operational area of the organization - **Time Frame** - Long Term: Plans with time beyond 3 years - Short Term: Plans covering a year or less - **Specificity** - Directional: Plans, which are flexible, and have set out general guidelines - Specific: Plans, which are clearly defined and have no room for interpretation - **Frequency of Use** - Single use: One-time plan specifically designed to meet the needs of a specific/unique situation - Standing: Ongoing plans, which provide guidance for activities performed repeatedly Approaches to setting goals: Traditional Goal setting: Goals set by top managers, which then get passed down the organization, eventually becoming sub goals for each area of the organization respectively. Management by Objectives: A process of setting mutually agreed goals and using those goals to evaluate employee performance; an example follows: 1. Organization's objectives and strategies are formulated 2. Major objectives are allocated among divisional and departmental units 3. Unit managers, through collaboration, set specific objectives for their units with their managers 4. Specific objectives are collaboratively set with all departmental members 5. Action plans are specified and agreed upon by managers and employees 6. Action plans are implemented 7. Objective progress is periodically reviewed with the providing of feedback 8. Successful achievement of objectives is reinforced by performance-based rewards [Contemporary issues in planning ] Effective planning in dynamic and changing environments can be challenging, for example, because of: - Unforeseen global factors (Sanctions, Wars, Pancemics e.t.c) - Increased global political and business interconnections - Spread of new technologies (A.I, Digital tools, e.t.c) - Risks and opportunities related to social media Due to the latter, every plan should be flexible and should serve as a road map; The destination may change due to unforeseen external conditions, but managers should always be ready to change the direction if need be. Why The **USSR** Failed: - Centralized government planning Attempted to build an entire economic plan for the whole country - Price control implemented on the entire range or goods and services - State ownership of means of production, industrial means and collective farming - Absence of political and economic competition Strategic management Strategic management: What managers do to develop the organization's strategies. Strategies: Plans for how the organization will do its business, how it will compete successfully, and how it will attract satisfied customers. Business model: How the company is going to make money; The focus is on: - If the customers will value what the company provides - Whether the company can make any money doing the latter **Strategic management process**: - Identify the organization's goals - **SWOT** - [External Analysis ] - Opportunities - Threats - [Internal Analysis] - Strengths - Weaknesses - Formulate strategies - Implement strategies - Evaluate results Corporate strategy: Strategy which determines what business a company or organization wants to be in and what it wants to do in those businesses. The latter is a concern for top-level managers only - Growth Strategy: Applied when an organization wants to expand the number of markets served or products offered, either through current or future businesses - Growth based on concentration: focuses on its primary line and increases the number of products offered or markets served - Growth based on integration: - Horizontal: Integration involves a company in the same line of business - Vertical: Integration happens when a company takes control over one or more stages in the production or distribution in its products - Growth based on diversification: focuses on venturing into a new business distinct from the existing one, creating new products within the new areas - Related: Diversification happens when a company combines with other companies in different, but related industries - Unrelated: Diversification happens when a company combines with firms in different and unrelated industries - Stability Strategy: A strategy where the organization continues doing what it is currently doing; maintaining market share and sustaining the organization's current business operations - Renewal Strategy: Strategy designed to address declining performance; The latter helps organizations cut costs and restructure organizational operations Lecture 10 ========== Organizing: A managerial function, which involves arranging and structuring work to accomplish the organization's goals Organizational structure: The formal arrangement of jobs within an organization. - Divides work into specific jobs and departments - Assigns tasks and responsibilities associated with individual jobs - Coordinates diverse organizational tasks - Clusters jobs into units - Establishes relationships among individuals, groups and departments - Establishes formal lines of authority - Allocates and deploys organizational resources Organizational design: Creating or changing an organization's structure. Involves decisions around the following elements: - Work specialization: Dividing work activities into separate job tasks - Departmentalization: The basis by which jobs are grouped - Chain of command: The line of authority expanding from upper organizational levels to the lowest points - Span of control: The number of employees a manager can efficiently and effectively manage - Centralization/Decentralization: The degree of which decision making takes place at upper-levels of the organization and the degree of which lower-level employees provide input to make decisions - Formalization: The extent to which employee behaviour is guided by rules and procedures **Mechanistic vs Organic Organizations** Mechanistic Organization: Rigid and Tightly controlled - High specialization - Rigid departmentalization - Clear chain of command - Narrow spans of control - Centralization - High Formalization Organic Organization: Highly adaptive and Flexible - Cross-functional teams - Cross-hierarchical teams - Free flow of information - Wide spans of control - Decentralization - Low formalization **Latest research conclusions** - Changes in corporate strategy led to changes in the organization's structure that supports the strategy - Organic structure favours innovation, while Mechanistic values stability - Large organizations (\>2000 employees) are more likely to be Mechanistic - Mechanistic suits best for routine production, whereas Organic favoures non-routine production  **Human resource management (HRM)** HRM: Organizing, coordinating and managing an organization's employee force to carry out organizational mission, vision and goals. This includes: Hiring, Training, Compensating, Retraining and motivating employees. HRM process: 1. Human resource planning 2. Recruitment/Decruitment 3. Selection 4. Orientation a. Work unit orientation b. Organization orientation 5. Training c. Profession/job training d. Promotion training 6. Performance management 7. Compensation and benefits 8. Career development Lecture 11 ========== Communication: Transfer and understanding of meaning Interpersonal communication: Communication between two or more people Organizational communication: All the patterns, networks and systems of communication within an organization  Formal communication: communication that takes place within prescribed organizational work arrangements - Downward communication: Flows downward from manager to employee - Upward communication: Flows upward from employee to manager - Lateral communication: Communication among employees - Diagonal communication: Communication that crosses across work areas and organizational levels Formal Business Communication - Answering inquiries, providing requested information, reporting according to the laws e.t.c - Informing your counterpart about your position, expressing opinions, clarifying taken decisions e.t.c - Sending proposals for cooperation, expressing interest in participating in projects, inviting to an event e.t.c Leader, Leadership Traits Leader: Someone who can influence others and can take up managerial authority, as well as, responsibilities. Leadership: process of leading a group and influencing it to reach its goals Leadership traits: - Drive - Desire to lead - Honesty and integrity - Self-confidence - Intelligence - Job-relevant knowledge - Extraversion - Proneness to guilt  Path Goal model: A leader's job is to assist subordinates in attaining their goals and to provide direction or support needed to ensure their goals are compatible to the organization's **4 types of leaderships** - Directive: Providing clear instructions, expectations, specific guidance to the team - Supportive: Creating a friendly and supporting work environment - Participative: Involving team members in the decision-making process - Achievement-oriented: Setting challenging goals, and having high expectations for the team