Management

• Formal- Specific Objectives and Goals
• Informal- little written down

• Provides Direction
• Reduces impact of change
• Minimizes waste and redundancy and sets standards to facilitate control

• 1) Goals must be specific
• 2) Manager and subordinates must agree on goals
• 3) Each objective must have time constraint
• 4) Provide constant feedback on progress on goals

• 1) Identify Problem
• 2) ID decision criteria
• 3) Develop alternatives
• 4) Analysis of alternatives
• 5) Selection of alternative
• 6) Implement
• 7) Evaluation

• Available- decisions based on readily available information/internet
• Representative- look at others who are successful and attach better than average odds.

• Programmed- decisions made on well structured routine problems that occur every day
• Un-programmed- once a while decisions

• Directive-Low Tolerance for Indefinite, Rational (men)
• Analytic- High tolerance for Indefinite, Rational
• Conceptual- Many alternatives, High tolerance for Indefinite, Long term Solution, Intuitive
• Behavioral- Intuitive, Low tolerance for Indefinite

• -Advantages-
• more complex info
• different points of view
• generate alternatives
• Higher acceptance of decision
• Higher legitimacy

• -Disadvantages-
• Time
• Group think
• Ambiguous responsibility
• Minority domination

10 student experiment on Group Conformity

• Work Specialization- each discrete step of a job done by diff. individual rather than 1 indiv. do whole job.
• Unity of Command- Principle that no employee should report to more than one boss
• Span of Control - # of employees a manager can effectively and efficiently manage
• Authority- rights for manager to give orders and expect them to be followed
• Responsibility- obligation to perform assigned activities
• Centralization- higher the level where decisions are made
• Decentralization - decision making authority to lowest levels in organization
• Departmentalization- grouping of activities in organization by function, product, customer, geography, or process

Functional- Group of people who all perform the same function in the same department (Acct. & Fin.)

Product- Departmentalization focuses on different products within an organization.

Geographic- Divide area into territories

Process- Links units around certain skills to complete task

• Customer- Group organization around certain customers
• The Matrix

Mechanist- looks for stable environment; Routine; Efficiency;Change is Slow

Organic-Always Changing; Loose Structure

Formalization- Deals w amount of rules; Formal; standard operating procedures Ex. Military

Strategy is to raise revenue or lower your cost to increase profits

• Unit Production- Organic
• -Production of Single Units
• Mass production- Mechanistic
• Continuous Process Production- Machinery

• Creates Rigidity-no freedom to experience better ways
• Tough to Plan- for a dynamic environment

• 1) Member Identity-employee 2 organization
• 2) Group Emphasis- work activities organized around groups
• 3) People Focus- Management decisions are focused on employees
• 4) Unit integration- encouraged to operate in a coordinated, interdependent manner
• 5) Control- rules, regulations, and direct supervision used to oversee and control employee behavior
• 6) Risk Tolerance-encouraged to be aggressive, innovative, and risk seeking
• 7) Reward Criteria- allocation of salary increases/promos, on performance rather than seniority, favoritism, or any other non performance factors
• 8) Conflict Tolerance- employees encouraged to air conflicts and criticisms openly
• 9) Means End Orientation-
• 10) Open Systems Focus-Monitoring and respond 2 changes in external environment

• Construct simplified models that extract features from problems w/o capturing complexity.
• Act rational within the simplified model.

• Well-structured and Ill-Structured.
• Well-Structured- straightforward, familiar, easily defined, and solved using Programmed decisions such as procedures, rules, and policies.

Ill Structured are new, unusual or incomplete information that are solved using Nonprogrammed decisions.