GMS Final Exam Notes PDF

**Global Management Notes** **Chapter 1: Management Today** **Talent:** - - - - **Tech** - - **Globalization** - - - **Ethics** - - - - - **Diversity** - - Careers and Connections - - **Organizations** - - - - - - - - - -...

**Global Management Notes** **Chapter 1: Management Today** **Talent:** - - - - **Tech** - - **Globalization** - - - **Ethics** - - - - - **Diversity** - - Careers and Connections - - **Organizations** - - - - - - - - - - **Managers** - - - **Levels of management:** - - - - **Types of managers** - - - - - **Managerial Performance** **Productivity** is a measure of the quantity and quality of work performance, with resource costs taken into account. **Accountability** is the requirement of one person to answer to a higher authority for performance results in his or her area of work responsibility How to measure performance? **Quality of work life (QWL):** An indicator of the overall quality of human experiences in the workplace  **How organizations work:** The upside-down pyramid view of organizations places operating workers at the top, serving customer needs while being supported from below by various levels of management. **The Management Process:** The ultimate "bottom line" in every manager's job is to help an organization achieve high performance by best utilizing its human and material resources. [This is accomplished through the four management process functions of planning, organizing, leading, and controlling.] **Planning:** the process of setting performance objectives and determining what actions should be taken to accomplish them. Through planning, a manager identifies desired results---goals and objectives, and ways to achieve them---action plans. **Organizing:** once plans are set, they must be implemented. This begins with organizing, the process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups to accomplish plans. **Leading**: the process of arousing people's enthusiasm and inspiring their efforts to work hard to fulfill plans and accomplish objectives. **Controlling:** the process of measuring work performance, comparing results with objectives, and taking corrective action as needed. Managers exercise control by staying in active contact with people as they work, gathering and interpreting performance measurements, and using this information to make constructive changes. **Manager's Roles** **Interpersonal roles:** How a manager interacts with other people (figurehead, leader, liaison) **Informational roles:** How a manager exchanges and processes information (monitor, disseminator, spokesperson) **Decisional roles:** How a manager uses information in decision making (Entrepreneur, negotiator, resource allocator) **Managerial agendas and networks** **Agenda setting:** Through agenda setting, good managers develop action priorities that include goals and plans spanning long and short time frames. These agendas are usually incomplete and loosely connected in the beginning, but they become more specific as the manager uses information from different sources. **Networking:** Good managers implement their agendas by networking--- building and maintaining positive relationships with people whose help may be needed to implement those agendas. **Social Capital:** Such networking creates social capital---the ability to attract support and help from others in order to get things done. **Learning:** Changing behavior through experience. **Lifelong learning:** The process of continuously learning from daily experiences and opportunities **Katz' Essential Managerial Skills** A skill is the ability to translate knowledge into action that results in desired performance. All three sets of skills necessary for management success: - - - **Chapter 2: Management Learning - Past to Present** **The Industrial Revolution:** a period of global transition of the human [economy](https://en.wikipedia.org/wiki/Economy) towards more widespread, efficient, and stable manufacturing processes that succeeded the [Agricultural Revolution](https://en.wikipedia.org/wiki/British_Agricultural_Revolution). Beginning in [Great Britain](https://en.wikipedia.org/wiki/Kingdom_of_Great_Britain), the Industrial Revolution spread to [continental Europe](https://en.wikipedia.org/wiki/Continental_Europe) and the [United States](https://en.wikipedia.org/wiki/United_States), from around 1760 to 1820--1840. [This transition included going from [hand production methods](https://en.wikipedia.org/wiki/Craft_production) to [machines](https://en.wikipedia.org/wiki/Machine)]; new [chemical manufacturing](https://en.wikipedia.org/wiki/Chemical_industry) and [iron production](https://en.wikipedia.org/wiki/Puddling_(metallurgy)) processes; the increasing use of [water power](https://en.wikipedia.org/wiki/Hydropower) and [steam power](https://en.wikipedia.org/wiki/Steam_engine); the development of [machine tools](https://en.wikipedia.org/wiki/Machine_tool); and the rise of the mechanized [factory system](https://en.wikipedia.org/wiki/Factory_system). **[Classical Management Approaches:]** Our study of management begins with a focus on the three major classical approaches: (1) scientific management, (2) administrative principles, and (3) bureaucratic organization. - 1. Frederick Taylor - - - **Core Idea:** Maximize prosperity for both employers and employees by improving efficiency and productivity. **Problems Identified:** Inefficient job motions and inconsistent work approaches. **Taylor\'s Four Guiding Principles of Scientific Management:** - - - - **Techniques and Legacy:** - - - - - - 2. Henri Fayol was a management theorist who developed a set of principles to improve organizational management. His ideas focused on the role of management in directing and controlling an organization. [Five "rules" or "duties" of management,] which support the four functions of management---planning, organizing, leading, and controlling---that we talk about today: - - - - - Fayol believed that management could be taught. He wanted to improve the quality of management and defined "principles" to help managers. 3. - - A bureaucratic organization is a structured, logical, and efficient form of management developed by Max Weber. It emphasizes clear roles, rules, and authority to ensure order and efficiency. [Characteristics of Bureaucratic Organizations: ] - - - - - - - - - - Today we recognize that bureaucracy works well sometimes, but not all of the time. **Possible disadvantages of bureaucracy:** - - - - - **[Behavioural Management Approaches]** **Follett's Organizations as Communities:** Mary Parker Follett\'s approach to management emphasized the importance of human relationships and collaboration in organizations. She viewed organizations as communities where employees and managers work together to achieve shared goals. Her ideas focused on the social aspects of work and the need for cooperation rather than control. **Key Ideas of Follett\'s Approach:** 1. - - 2. - 3. - - 4. - - 5. - - **The Hawthorne Studies** The Hawthorne Studies were a series of research experiments conducted in Chicago during the late 1920s. The studies were initially aimed at examining how different working conditions (like lighting, rest breaks, and work hours) affected employee productivity. However, the results of the studies revealed unexpected insights into human behavior in the workplace, which had a significant impact on management thinking. ### **Key Findings and Impact:** 1. - - 2. - 3. - - **Maslow's Theory (and hierarchy) of Needs**  Abraham Maslow, an American psychologist, developed a theory that suggests humans have a set of needs that must be fulfilled in a specific order, starting with basic physiological needs and progressing to higher-level psychological and self-fulfillment needs. ### **The Five Levels of Maslow's Hierarchy of Needs:** 1. - - - 2. - - - 3. - - - 4. - - - 5. - - - ### **Deficit Principle:** - - **Progression Principle:** - - ### **Both Principles Cease to Operate at Self-Actualization Level:** - - - **McGregor's Theory X and Theory Y** McGregor believed these assumptions create self-fulfilling prophecies. When managers behave consistent with the assumptions, he said, they end up encouraging employees to act in ways that confirm managers' original expectations **Theory X:** a management theory that outlines a negative view of human nature in the workplace. According to this theory, managers believe that employees are inherently lazy, lack ambition, and need constant supervision and direction. **Assumptions:** - - - - - Managers who follow Theory X believe that employees are lazy and need to be closely controlled. As a result, these managers tend to give strict orders and make all the decisions themselves, without asking for input from employees. These behaviors create passive, dependent, reluctant subordinates, who tend to do only what they are told to do or required to do, reinforcing the original Theory X viewpoint. **Theory Y:** Theory Y presents a more positive and optimistic view of employees, in contrast to Theory X. According to Theory Y, managers believe that workers are self-motivated, capable of taking responsibility, and willing to contribute to the success of the organization. This theory assumes that people will perform better if they are trusted, given the freedom to make decisions, and encouraged to grow and develop in their roles. ### **Key Assumptions of McGregor's Theory Y:** - - - - - Managers with Theory Y assumptions tend to behave in ways that engage workers, giving them more job involvement, freedom, and responsibility. This creates opportunities for employees to satisfy esteem and self-actualization needs, and they respond by performing with initiative and high performance, creating a positive self-fulfilling prophecy. **Argyris's Theory of Adult Personality** Classical management principles and practices restrict worker development and are incompatible with the needs and characteristics of a mature adult personality. Chris Argyris developed a theory of adult personality that focuses on how the characteristics of individuals change as they mature and how these traits affect their behavior in the workplace. Argyris\'s theory suggests that adults have certain psychological needs and preferences that influence their behavior and effectiveness in work settings. His work was particularly focused on how organizations can better align with these adult needs to foster a more productive and satisfying work environment. Argyris\'s theory emphasizes the need for organizations to recognize the mature psychological traits of adult employees, such as a desire for autonomy, responsibility, and personal growth. When organizations treat adults as capable and self-directed individuals, they can create a work environment that encourages motivation, productivity, and job satisfaction. **[Modern Management Foundations ]** **Quantitative Analysis and Tools** - - - **Organizations as Systems** - - - - **Contingency Thinking** - - - **Quality Management** - - - - - **Evidence-Based Management** - **Note**: Summaries and examples of test questions are at the end of every chapter! **Chapter 7: Information (Data) and Decision Making** Managers must have: - - - **Data:** Raw facts and observations **Information:** is data made useful and meaningful for decisionmaking Information drives management decision-making **5 Characteristics of useful information:** - - - - - People and organizations perform best when they have available to them the right information at the right time and in the right place. This is the function served by **[management information systems] that use the latest technologies to collect, organize, and distribute data.** **Data Mining, Big Data, and Analytics** **Data mining** is the process of analyzing data to produce useful information for decision-makers. **Big Data:** data collected in huge quantities and are difficult to mine without using sophisticated mathematical and analytical techniques. UPS, for example, spends over \$1 billion per year on technology. **Management Analytics:** systematic evaluation and analysis of data to make informed decisions (the findings from the data that help the business) **Business Intelligence and Data Visualization** **Business intelligence** is the process of tapping or mining information systems to extract data that are most potentially useful for decision-makers. - - One of the trends in business intelligence is the use of data visualization in the form of **executive dashboards** that visually display and update key performance metrics in the form of graphs, charts, and scorecards in real-time. - **Managers and Problem Solving** **Problem-solving** is the process of identifying a discrepancy between an actual and a desired state of affairs, and then taking corrective action to resolve the problem. **Decisions**---choices among alternative possible courses of action. **Performance threat** (ex of a problem): A performance threat happens when something isn\'t going well or might go wrong. This could be when results are worse than expected or heading in the wrong direction (ex. team member struggling to keep up with their tasks). **Performance Opportunity:** A performance opportunity is a chance to improve results and do even better in the future. It happens when things are going better than expected or when there\'s potential to achieve more if the right actions are taken. For example, it could be when sales are higher than predicted, or a new idea has the potential to boost success. **Problem-solving Approaches and Styles** **Problem Avoiders:** They ignore signs of problems or opportunities. They don't actively look for information and avoid making decisions or solving issues. **Problem Solvers:** Problem solvers make decisions and try to fix problems, but only when they have to. They react to problems after they happen rather than looking for them ahead of time. They may deal reasonably well with performance threats, but they are likely to miss many performance opportunities. **Problem Seekers:** They constantly process information and proactively look for problems to solve, even before they occur. True problem-seekers are forward-thinking. They anticipate performance threats and opportunities, and they take pre-emptive action to generate an advantage. **Systematic and Intuitive Thinking:** - Systematic Thinking - - - Intuitive Thinking - - - **Multidimensional Thinking**: applies both systematic and intuitive thinking. **Cognitive styles**: the ways individuals deal with information while making decisions. **Types of Problems (and decisions to solve them):** - - - - - - **The Decision-Making Process** Step 1 --- Identify and Define the Problem Step 2 --- Generate and Evaluate Alternative Courses of Action Step 3 --- Choose a Preferred Course of Action - - - Step 4 --- Implement the Decision Step 5 --- Evaluate Results At All Steps---Check **Ethical Reasoning** - ask these questions: - - - - **Issues in Managerial Decision Making** **Heuristics:** strategies for simplifying decision-making -- lead to common decision making errors. - - - - - - **Creativity in Decision Making** - - - **Chapter 5: Global Management and Cultural Diversity** **Global economy:** in which resources, supplies, product markets, and business competition have a worldwide---rather than a local or national---scope. **Globalization**: defined as the growing interdependence among the components of the global economy (borderless world and economic integration). **World 3.0**: Balancing cooperation in the global economy with national identities and interests. **Deglobalization:** A movement toward a less connected world, characterized by powerful nation-states, local solutions, and border controls rather than global institutions, treaties, and free movement. **Global Management:** Management in businesses and organizations with interests in more than one country. **Global managers:** Managers who have a strong global perspective, are culturally aware, and are informed about current international issues and events. **International businesses:** Conducting for-profit transactions of goods and services across national boundaries. **Benefits of Internation Business (why companies go global):** - - - - - - **Market-entry strategies** (how business usually become international): - - - - - ### **Direct Investment Strategies** - - - - **Global Business Environments** Legal and Political Systems **Trade Agreements and Trade Barriers** - - - - **Regional Economic Alliances:** One of the characteristics of globalization is the growth of regional economic alliances, where nations agree to work together for economic gains. - - - - - - - **[Global Businesses ]** **Types of Global Businesses** - - - - **Benefits for host-country and global corporation/MNC (MUTUAL BENEFITS)** - - - - **Host-Country Complaints** - - - - - - **MNCs complaints about host countries** - - - - - **Ethics Challenges for Global Businesses** - - - - - - - **[Culture and Global Diversity ]** **Culture:** The shared set of beliefs, values, and patterns of behaviour common to a group of people **Culture shock:** Confusion and discomfort a person experiences in an unfamiliar culture **Cultural intelligence:** Ability to adapt and adjust to new cultures **Ethnocentricism:** Tendency to consider one's own culture as superior to others **Silent languages of cultur**e - - - - - - - - - - **Tight and Loose cultures** - - - - **Chapter 8: Planning Processes and Techniques** **Why and How Managers Plan** **Planning:** The process of setting objectives and determining how best to accomplish them **Objectives and Goals**: specific results or desired outcomes. **Plan:** A statement of action steps to be taken in order to accomplish the objectives **Stretch goals:** performance targets that we have to work extra hard and really stretch to reach **Steps in the Planning Process:** - - - - - **Benefits of Planning** - - - - **Time Management: Tips** - - - - - - - **Types of Plans** - - #### **Types of Organizational Plans** 1. - - 2. - 3. - - - - - - - 4. - - - - **Planning Tools and Techniques** - ### **Forecasting:** Forecasting involves predicting future events or trends to aid in decision-making. - - - - - - #### **Benchmarking:** A process that involves comparing the organization's performance with industry standards or best practices. Benchmarking can be both **internal** (within the company) and **external** (comparing with other companies). - - ### **Implementing Plans to Achieve Results** #### **Characteristics of Effective Goals** 1. 2. 3. #### **Goal Alignment and Hierarchies** - #### **Participatory Planning** - - #### **Benefits of Participation** 1. 2. 3. **Chapter 10: Strategy and Strategic Management** ### **Strategic Management** ### **Competitive advantage** describes an organization's ability to use resources in such a way that it performs better than the competition **Sustainable competitive advantage**: competitive advantage that is enduring and difficult or costly for others to copy or imitate **Typical sources of competitive advantage are:** - - - - - **Strategy**: A comprehensive plan that guides resource allocation to achieve long-term organizational goals. **Strategic Intent**: Focusing all organizational energies on a unifying and compelling goal. ### **The Three Levels of Strategy in Organizations** 1. - 2. - 3. - ### **Strategic Management Process** **Steps**: 1. 2. 3. **Essentials of Strategic Analysis** ------------------------------------ ### **Key Strategic Questions** 1. 2. 3. 4. 5. ### **Mission Analysis** - - - - - - **Stakeholders in Strategy** - - **External Stakeholders**: - **Chapter 14: Leading and Leadership Development** **The Nature of Leadership** ---------------------------- ### **Leadership and Management** - ### **Power in Leadership** - - #### **Two Sources of Power:** 1. - - - 2. - - - ### **Visionary Leadership** - - ### **Servant Leadership** - - - - - ### **Empowerment** - - - **Leadership Traits and Behaviors** ----------------------------------- ### **Key Traits for Leadership Success:** - ### **Leadership Behavior** - 1. - 2. - #### **Classic Leadership Styles:** - - **Visual**: (Refer to leadership behavior chart on Slide 15). **Contingency Approaches to Leadership** ---------------------------------------- ### **Fiedler's Contingency Model** - - - - #### **Situational Control Factors:** 1. 2. 3. - - ### **Hersey-Blanchard Situational Leadership Model** - #### **Leadership Styles:** 1. 2. 3. 4. **Visual**: Leadership implications chart on Slide 20. ### **House's Path-Goal Leadership Theory** - #### **Leadership Styles:** 1. 2. 3. 4. ### **Leader-Member Exchange (LMX) Theory** - - - **Visual**: LMX diagram on Slide 27. ### **Vroom-Jago Leader-Participation Model** - - - - #### **Benefits:** - #### **Disadvantages:** - **Visual**: Model diagram on Slide 29. **Personal Leadership Development** ----------------------------------- ### **Superleaders** - ### **Transformational Leaders** - ### **Emotional Intelligence (EI)** - - - - - - - ### **Gender and Leadership** - - - - - ### **Moral Leadership** - - ### **Peter Drucker's Leadership Principles** 1. 2. 3. 4. 5. 6. **Chapter 6: Entrepreneurship and New Ventures** **The Nature of Entrepreneurship** ---------------------------------- ### **Entrepreneurship** - ### **Types of Entrepreneurs** 1. - 2. - 3. - ### **Personality Traits of Entrepreneurs** (Refer to Slide 6 Chart for Visual).\ Key Traits: - - - - - - - ### **Diversity in Entrepreneurship** - - - - - ### **Social Entrepreneurship** - - - - **Entrepreneurship and Small Business** --------------------------------------- ### **Small Business Statistics (Canada, 2018):** - - - ### **Starting a Small Business** 1. - 2. - 3. - 4. - ### **Survival Rates** - ### **Common Reasons Why Businesses Fail** 1. 2. 3. 4. 5. 6. 7. 8. ### **Family-Owned Small Businesses** - - - - - - - - ### **Small Business Development** 1. - - 2. - - **New Venture Creation** ------------------------ ### **Stages in the Life Cycle of an Entrepreneurial Firm** - ### **Business Plan** - - ### **Sample Business Plan Outline** 1. 2. 3. 4. 5. 6. **Continued**:\ 7. **Operations Description\ **8. **Staffing Description\ **9. **Financial Projections\ **10. **Capital Needs\ **11. **Milestones** ### **Forms of Ownership** 1. - - 2. - 3. - 4. - - 5. - - ### **Financing New Ventures** 1. - 2. - - 3. - 4. - **Summary** ----------- 1. 2. 3. 4. 5. **Chapter 11: Organization Structures and Design** ### **1. Organizing as a Management Function** - - - - - - - - - - - - - - - - ### **2. Informal Structures** - - - - - - - - - ### **3. Traditional Organizational Structures** #### **a. Functional Structures** - - - - - - - - - #### **b. Divisional Structures** - - - - - - - - - - #### **c. Matrix Structures** - - - - - - - - - ### **4. Horizontal Organizational Structures** #### **a. Team Structures** - - - - - - - #### **b. Network Structures** - - - - - - - - #### **c. Boundaryless Organizations** - - - - - ### **5. Organizational Designs** - - - - - #### **Bureaucracy:** - - - - ### **6. Trends in Organizational Design** 1. - - 2. - 3. - - 4. -