MLB Management Principles PDF

lMLB Contents Workshop 1....................................................................................................................... 1 Workshop 2....................................................................................................................... 2 Workshop 3...............

lMLB Contents Workshop 1....................................................................................................................... 1 Workshop 2....................................................................................................................... 2 Workshop 3....................................................................................................................... 3 Workshop 4....................................................................................................................... 4 Workshop 5....................................................................................................................... 5 Workshop 7....................................................................................................................... 6 Workshop 9....................................................................................................................... 7 Chapter 1: Managing Today................................................................................................. 8 Chapter 2: The Manager as Decision Maker........................................................................... 9 Chapter 3: Important Managerial Issues............................................................................. 11 Chapter 4: The Management Environment.......................................................................... 12 Chapter 5: Managing Change and Innovation...................................................................... 14 Chapter 7: Structuring and Designing Organizations............................................................ 15 Chapter 12: Understanding Leadership.............................................................................. 17 Workshop 1 LEARNING OBJECTIVES: Explain the concept of globalization and its impact on organizations Globalization is the integration of markets, resources, and talent across borders. It impacts organizations by: 1. Expanding Markets: Access to international markets increases growth potential but also intensifies competition. 2. Cost Reduction: Global sourcing allows organizations to cut costs by finding cheaper resources and labor abroad. 3. Diverse Talent: Access to a global workforce fosters innovation but requires managing cultural differences. 4. Economic Sensitivity: Global events can disrupt operations, making adaptability crucial. Describe different types of global organizations  1. Multidomestic Corporation: Decentralized, allowing local branches to make key decisions to cater to local markets. 2. Global Corporation: Centralized operations focused on efficiency, with strategies and products standardized worldwide. 3. Transnational or Borderless Organization: Combines global efficiency with local responsiveness, often erasing geographic boundaries. 4. Foreign Subsidiary: Establishes an independent operation in a foreign country, owned and operated by the parent company. Discuss social responsibility and how it influences managers Social responsibility (or CSR) means that an organization acts beyond its economic and legal duties to benefit society. Managers are influenced by CSR in several ways: 1. Broader Decision-Making: Managers consider societal impacts, balancing profit goals with actions like environmental sustainability. 2. Enhanced Reputation: CSR often improves an organization’s public image, helping to attract customers and talent. 3. Shaping Culture: Managers foster a culture focused on ethical practices, guiding employee behavior toward socially responsible actions. Explore ethical behavior in leadership and its importance in global business Ethical behavior in leadership is critical in global business, as leaders set the standard for conduct across diverse regions and cultures. Managers can promote ethical behavior by modeling integrity, being transparent, and consistently communicating the organization's ethical values. This type of leadership fosters trust, a key element for success and cohesion in global operations, where different laws, cultures, and expectations can complicate ethical standards. Workshop 2 1. What Managers Do and Where They Work Managers oversee activities within organizations, which are structured collections of people working toward specific goals. Managers can be found at various levels across industries, from small businesses to multinational corporations, executing tasks across planning, organizing, leading, and controlling. 2. Define Management Management is the process of getting work done effectively and efficiently through others. This involves coordinating and overseeing work activities so that organizational goals are met. 3. Factors Redefining Management Modern management is influenced by factors like globalization, technological advancements, increased focus on innovation, and changing workplace dynamics. These elements push managers to adapt to a rapidly evolving environment to maintain organizational relevance and competitiveness. 4. Define Leader and Leadership A leader is someone with the authority to influence others, while leadership is the act of guiding a group toward achieving its objectives. Leadership is integral to management as it involves motivating and directing teams toward organizational goals. 5. Four Contemporary Views of Leadership ➔ Leader-Member Exchange (LMX): Leadership theory that says leaders create in- groups and out-groups and those in the in-group will have higher performance ratings, less turnover and greater job satisfaction. Transformational-Transactional Leadership: Transformational leaders inspire change, while transactional leaders focus on routine tasks and rewards. Charismatic-Visionary Leadership: Charismatic leaders inspire with personal appeal; visionary leaders set a compelling direction for the future. Team Leadership: Emphasizes the leader's role in fostering collaboration and guiding team members to achieve shared objectives. Workshop 3 1. Components of the External Environment: The external environment consists of factors outside the organization that affect its performance, including: o Economic (interest rates, inflation) o Demographic (population characteristics like age, gender) o Political/Legal (laws, regulations) o Sociocultural (values, lifestyle changes) o Technological (new innovations) o Global (international events and conditions). 2. Environmental Uncertainty: Uncertainty is defined by how predictable the external environment is: o Degree of Change: A dynamic environment has frequent changes, while a stable one does not. o Complexity: Complexity increases with the number of factors an organization must manage, such as customers or suppliers. 3. Stakeholders of a Company: Stakeholders are groups affected by or affecting an organization, including:  o Internal Stakeholders (employees, managers, shareholders) o External Stakeholders (customers, suppliers, communities). 4. Dimensions of Organizational Culture: Organizational culture is shaped by key values that guide behavior, including: o Innovation and Risk-Taking o Attention to Detail o Outcome Orientation o People Orientation o Team Orientation o Aggressiveness o Stability. Workshop 4 1) Six Key Elements in Organizational Design Work Specialization: Division of tasks into specific jobs. Departmentalization: Grouping jobs by function, product, geography, or customer. Authority and Responsibility: Clear definition of who has the power to make decisions and who reports to whom. Span of Control: Determines how many employees a manager can effectively oversee. Centralization vs. Decentralization: Decides where decision-making power is concentrated. Formalization: Degree to which rules and procedures govern job roles. 2) Contingency Factors Favoring Mechanistic or Organic Models Mechanistic Model: (structured, efficient and stable) Suited for stable environments, high specialization, centralized decision-making, and many formal rules. Organic Model: (adaptable, collaborative and flexible) Works well in dynamic environments, with decentralized authority, minimal formalization, and adaptable roles. Contingency factors include strategy (efficiency favors mechanistic; innovation favors organic), size (larger organizations lean mechanistic), technology, and environmental uncertainty. 3) Traditional vs. Contemporary Organizational Designs  Traditional Designs: Include simple, functional, and divisional structures, generally more rigid and mechanistic. Contemporary Designs: Include team-based, matrix, project, and boundaryless structures, which are more flexible and adaptive to change. 4) Impact of Design Choices on Organizational Effectiveness Design choices impact efficiency, adaptability, and employee satisfaction. Mechanistic designs support efficiency in stable environments, while organic structures foster flexibility and responsiveness in changing conditions. 5) Design Challenges Faced by Today’s Organizations Key challenges include keeping employees connected, managing global structures, building learning organizations, and creating flexible work arrangements to adapt to modern workforce needs and technological advances. Workshop 5 1. The 8 Steps in the Decision-Making Process 1. Identify a problem. 2. Identify decision criteria. 3. Allocate weights to criteria. 4. Develop alternatives. 5. Analyse alternatives. 6. Select an alternative. 7. Implement the alternative. 8. Evaluate decision effectiveness. 2. Decision-Making Biases Common biases in decision-making include overconfidence, immediate gratification, anchoring, selective perception, confirmation, framing, availability, and sunk costs. 3. Three Approaches to Making a Decision Rational Model: Logical, step-by-step approach aiming for optimal decisions. Bounded Rationality: Recognizes limitations in processing information, leading to "satisficing" (good enough) solutions. Intuitive Decision-Making: Relies on experience and instincts rather than structured analysis. 4. Programmed and Non-Programmed Decisions Programmed Decisions: Routine and repetitive, used for well-structured problems. Non-Programmed Decisions: Unique and unstructured, requiring tailored solutions. 5. Group Decision-Making Group decision-making provides more ideas and broader perspectives but can be time- consuming and prone to conformity pressures. Techniques include brainstorming and the nominal group technique. 6. Contemporary Decision-Making Issues Big Data: Enhances decision-making by providing vast amounts of information. Creativity and Design Thinking: Helps generate innovative solutions. Decision-Making Under Uncertainty: Managers must often make decisions with incomplete information, balancing risks with available insights. Workshop 7 1. Organizational Change (Structure, Technology, People) Structure: Changes in authority relationships, job redesign, and span of control. Technology: Modifications to work processes, methods, or equipment. People: Adjustments in employee attitudes, expectations, and behaviors. 2. External and Internal Forces for Change External Forces: Marketplace shifts, technological advancements, economic changes, and legal requirements. Internal Forces: Changes in organizational strategy, workforce changes, and employee attitudes. 3. Change Metaphors: ‘Calm Waters’ vs. ‘White-Water Rapids’ Calm Waters: Change is seen as occasional and predictable, managed in stages. White-Water Rapids: Change is constant and unpredictable, requiring ongoing adaptation. 4. Planning Change with Organizational Development (OD) OD: A systematic approach focused on aligning employee attitudes and values with organizational goals through methods like survey feedback, team-building, and process consultation. 5. Resistance to Change Common reasons include uncertainty, habit, fear of personal loss, and beliefs that change may harm the organization. Techniques to reduce resistance include education, communication, participation, and support. 6. Encouraging Innovation & Design Thinking Managers can foster innovation by creating a supportive culture, providing resources, encouraging experimentation, and rewarding creative ideas. 7. Disruptive Innovation This type of innovation upends traditional markets and disrupts established industries, often requiring organizations to adapt quickly to new technologies or business models to remain competitive. Workshop 9 1. Strategic Planning in Management Strategic planning sets the direction for achieving long-term goals and is foundational to the broader management planning process, coordinating all organizational efforts toward strategic objectives. 2. Phases and Steps of the Strategic Management Process Six Steps: 1. Identify mission, goals, and current strategies. 2. Conduct an external analysis. 3. Conduct an internal analysis (steps 2 and 3 form the SWOT analysis). 4. Formulate strategies. 5. Implement strategies. 6. Evaluate results. 3. Strategic Management Models and Strategies SWOT Analysis: Examines strengths, weaknesses, opportunities, and threats. PESTLE Analysis: Analyzes external factors like political, economic, social, technological, legal, and environmental influences. Porter’s 5 Forces: Assesses industry competition through buyer power, supplier power, competitive rivalry, threat of new entrants, and threat of substitutes. 4. Classification of Strategies By Organizational Level: Corporate (overall direction), competitive (business-level strategies), and functional (specific departments). By Industry Positioning: Cost leadership, differentiation, and focus.  By Competitive Approach: Broad-based strategies versus niche or focused strategies. Chapter 1: Managing Today Management: Coordinating work activities to achieve goals effectively and efficiently. Organization: A structured group of people working together to achieve goals. Efficiency: Getting work done with minimum input. Effectiveness: Achieving goals and accomplishing tasks. Planning: Determining organizational goals and the means to achieve them. Organizing: Arranging resources and tasks to achieve the organization’s goals. Leading: Motivating, influencing, and directing others to work effectively. Controlling: Monitoring and evaluating progress toward goals. Managerial Roles: Roles classified by Mintzberg, including interpersonal, informational, and decisional.  Interpersonal Roles: Roles involving interaction with people (e.g., figurehead, leader, liaison). Informational Roles: Roles involving processing and disseminating information (e.g., monitor, disseminator, spokesperson). Decisional Roles: Roles involving decision-making (e.g., entrepreneur, disturbance handler, resource allocator, negotiator). Skills and Competencies: Technical, human, and conceptual skills that managers need. Technical Skills: Knowledge of specific tasks and processes. Human Skills: The ability to work with people effectively. Conceptual Skills: The ability to think abstractly and solve complex problems. First-Line Managers: Managers responsible for overseeing production and operations. Middle Managers: Managers who oversee the work of lower-level managers. Top Managers: Senior leaders responsible for overall organization strategy and decision-making. Chapter 2: The Manager as Decision Maker +P69-70  Decision-Making Process: A systematic process of identifying and solving problems. Problem: A gap between the current state and desired goals. Rational Model: Assumes logical, step-by-step decision-making aimed at optimizing outcomes. Bounded Rationality: The limitation of decision-makers' capacity for processing information, leading to satisfying decisions. Intuition: Decision-making based on experience and gut feeling rather than formal analysis. Programmed Decisions: Routine decisions made using established procedures. Nonprogrammed Decisions: Decisions made for unique or complex problems that require novel solutions. Structured Problems: Routine problems that can be solved through established procedures. Unstructured Problems: Problems that are novel and require creative solutions. Decision-Making Conditions: Certainty (clear information), risk (probabilities), and uncertainty (lack of information). Decision-Making Biases: Cognitive biases that affect decisions, such as overconfidence and anchoring. Groupthink: A situation where group members prioritize consensus over critical thinking. Chapter 3: Important Managerial Issues Globalization: The increasing interconnectedness of businesses worldwide, influencing management practices. Ethics: Standards for judging what is right and wrong. Social Responsibility: An organization’s obligation to contribute to society and its environment. Sustainability: The ability to meet current needs without compromising future generations' needs.  Corporate Social Responsibility (CSR): Companies' efforts to contribute positively to the environment and society. Stakeholders: Individuals or groups who affect or are affected by an organization’s actions. SWOT Analysis: A strategic planning tool for identifying strengths, weaknesses, opportunities, and threats. PESTLE Analysis: A tool used to analyze external factors: Political, Economic, Social, Technological, Legal, and Environmental. Competitive Advantage: A firm’s ability to produce goods or services more efficiently than competitors. Porter’s Five Forces: A model that analyzes industry competition through five forces: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and industry rivalry. Ethical Decision-Making: The process by which managers make decisions that align with ethical standards. Chapter 4: The Management Environment  External Environment: Factors outside an organization that can influence its performance. Internal Environment: Factors within an organization that affect its ability to achieve goals. Environmental Uncertainty: The degree to which external factors are unpredictable or stable. Organizational Culture: Shared values, beliefs, and norms that guide behavior within the organization. Organizational Culture Types: Includes strong and weak cultures, where strong cultures are widely shared and adhered to by employees. Stakeholders: Individuals or groups that are impacted by or can impact an organization’s activities. Corporate Social Responsibility (CSR): Actions by organizations to promote social good and improve societal well-being. Political-legal Environment: Factors such as government regulations that affect business operations. Technological Environment: External influences related to technology and innovation affecting industries. Sociocultural Environment: Cultural values, beliefs, and societal norms that influence business practices. Chapter 5: Managing Change and Innovation Organizational Change: Modifications to an organization’s structure, processes, or people. Change Agent: An individual who facilitates and leads change within an organization. Organizational Development (OD): Interventions designed to improve organizational effectiveness. Innovation: The process of creating new ideas and turning them into valuable products, services, or processes. Creativity: The generation of new, original ideas. Resistance to Change: The reluctance or refusal to accept changes within an organization. Disruptive Innovation: Innovations that disrupt industries by creating new markets or value networks, often displacing established leaders. Calm Waters Metaphor: Describes an environment where change is seen as a predictable, manageable event. White-Water Rapids Metaphor: Suggests that organizations are constantly facing unpredictable, dynamic changes. Lewin’s Three-Step Model: Unfreezing, changing, and refreezing to implement change. Chapter 7: Structuring and Designing Organizations  Organizational Design: The process of structuring an organization to align with its strategy and environment. Departmentalization: The process of grouping tasks based on function, product, geography, or customer. Work Specialization: The division of labor into specific tasks to improve efficiency. Authority: The right to make decisions and direct the activities of others. Responsibility: The obligation to perform assigned tasks and duties.  Centralization: The concentration of decision-making authority at the top levels of management. Decentralization: The distribution of decision-making authority to lower levels of management. Mechanistic Structure: A rigid, hierarchical organizational structure. Organic Structure: A flexible, decentralized organizational structure. Chain of Command: The hierarchy of authority within an organization. Span of Control: The number of employees a manager can effectively supervise. Chapter 12: Understanding Leadership Leader: An individual who influences and motivates others to achieve goals. Leadership: The process of influencing others toward achieving organizational goals. Transformational Leadership: Leaders who inspire followers to transcend self- interests for the good of the organization. Transactional Leadership: Leaders who focus on exchanges and rewards for performance. Charismatic Leadership: Leaders who inspire and energize followers through their personal qualities. Visionary Leadership: Leaders who provide a clear and compelling vision of the future. Contingency Theory of Leadership: The idea that the best leadership style depends on the situation. Trust: Essential for leadership effectiveness, fostering openness and cooperation. Empowerment: Giving employees the authority, resources, and confidence to make decisions. Leader-Member Exchange (LMX): The quality of the relationship between a leader and their subordinates.