Mgmt Final

  1. Organizational Control
    The systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets and standards of performance.
  2. balanced scorecard
    a comprehensive management-control system that balances traditional financial measures of customer service, internal business processes and the organization's capacity for learning and growth
  3. 4 key steps in the feedback control process
    • 1. Establish standards of performance
    • 2. Measure actual performance
    • 3. Compare performance to standards
    • 4. Take corrective action
  4. Hierarchial control
    the use of rules, policies, hiearchy of authority, reward systems, and other formal devices to influence employee behavior and assess performance
  5. Decentralized control
    the use of organizational culture, group norms, and a focus on goals rather than a focus on goals rather than on rules and procedures to foster compliance with organizational goals
  6. Open-Book Management
    sharing financial information and results with all employees in the organization

    Allows for employees to see for themselves - through charts, computer printouts, meetings, and so forth - the financial condition of the company
  7. Total Quality Management
    an organization-wide commitment to infusing quality into every activity through continuous improvement
  8. Quality circle
    a group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems that affect the quality of their work
  9. benchmarking
    the continuous process of the measuring products, services, and practices against major competitors or industry leaders
  10. Six Sigma
    a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs
  11. cycle time
    the steps taken to complete a company process
  12. Continuous improvement
    the implementation of a large number of small incremental improvements in all areas of the organization on an ongoing basis
  13. Economic Value-added
    a control system that measures performance in terms of after-tax profits minus the cost of capital inversted in tangibile assets
  14. ISO 9000 Standards
    a set of standards as outlined by the international organization for standardization that represent and international consensus of what constitutes effective quality management
  15. Management
    The attainment of organizational goals in an effective and effiecient manner through planning, organizing, leading and controlling organizational resources
  16. 4 Basic Functions of management
    • planning - select golas and ways to obtain them
    • organizing - assign responsibility for tasks
    • leading - use influence to motivate
    • controlling - monitor activites and make corrections
  17. Organization
    A formally structured collection of individuals working toward common/shared goals
  18. Efficiency
    the use of minimal resources(input) to produce a desired volume of profit
  19. Effectiveness
    the degree to which the organization acheives a stated goal
  20. Conceptual Skills
    cognitive ability to see the organization as a wwhole and the relationship among its parts

    top managers need this the most
  21. Human Skills
    Ability to work with and through other people and work effectively as a group member

    all managers need this skill
  22. Technical Skills
    understanding of and proficiency in the performance of specific tasks

    • lower managers -> Most
    • medium managers -> More
    • Top Managers -> least
  23. Roles of Managers
    Informational roles: develop and maintain information network (monitor, spokesperson)

    Interpersonal roles: pertain to relationships with others (figurehead, leader)

    Decisional Roles: to make choices requiring conceptual and human skills (entrepenuer, negotiator)
  24. Crisis Management Skills
    • Stay Calm
    • Be visible
    • put people before business
    • tell the truth
    • know when to get back to business
  25. Learning Organization
    • Continuously improves based on the lessons of experience manages knowledge,
    • workers must possess and use knowledge,
    • knowledge needed is increasing,
    • knowledge needs to be preserved and communicated continuous improvement through teams,
    • open book management of information and empowered workers
  26. Classical Perspective
    rational, scientific, approach to study of management and sought to make workers and organizations like efficient machines
  27. Scientific Management
    standard methods, careful selection, training, good working conditions, provide incentives
  28. Bureaucratic organizations
    defined authority and responsibility, set procedures, goals of fairness and efficiency, seperation of management and owners
  29. Administrative Management
    14 principles

    • unity of comand
    • division of work
    • unity of direction
    • scalar chain of command
    • authority = responsibility
  30. How did the Hawthorne studies lessen the influence of the classical perspective
    enlightened treatment of workers and powersharing between managers and employees, satisfaction of employees' social and physiological needs as key to increased worker productivity
  31. Theory X

    • People dislike work and prefer to be directed
    • must be coerced to work
    • want to avoid responsibility
    • have little ambition
    • want security above everything
  32. Theory Y
    Human resources

    • people will accept respnsibility
    • have intellect that could be apploed to organizational goals
    • only partially use their intellectual potential
  33. Total Quality Management
    emphasizes continuous improvement in all organizational processes, lead to the learning organization
  34. How are goals and plans interrelated?
    • Communicate legitimacy to external audiences such as investor’s customers and suppliers
    • A source of motivation and guidance for internal audiences
    • - Helps employees identify with the organization
    • - reduce uncertainty and clarify what employees should accomplish
    • - help minimize wasted resources
  35. Mission Statements
    • Most general purposes, goals and plans
    • Long run vision values
    • What distinguishes it from other organizations
    • focus on items such as market and customers
    • product quality
    • location on facilities
    • attitude towards employees
  36. Strategic Goals
    Top management

    • Organization
    • plan for several years
  37. Tactical goals
    Middle management

    • major units of the organization
    • plan for up to 2 years
  38. Operational Goals
    Lower Management

    • departments, individuals
    • plan mostly for under a year
  39. Characteristics of Effective Goals
    • Specific
    • Measureable
    • Attainable (and challenging)
    • Relevant (key result Ares)
    • Time-based
    • Rewards
  40. 4 goals of MBO
    • Setting goals
    • developing action plans (can be used to decentralize planning)
    • reviewing progress
    • Appraising overall performance
  41. Benefits of MBO
    • Clarity (people know what to do)
    • Commitment (are motivated and self-managed)
    • Coordination (work towards something)
    • Fairness
  42. Problems with MBO
    • difficulty choosing relevant measurable goals
    • rigidity
    • people skills required
    • time required
    • paperwork
    • frequently sold as a cure all
  43. Single use plans
    Aim at achieving a specific non-recurring goal

    to achieve an important one time organizational goal

    Project similar to a program but generally smaller in scope and complexity
  44. Standing Plans
    Provide guidance for recurring activities

    Policy in a general guide to action and provides direction for people

    Rules describe hos a specific action is to be preformed

    Procedures define a series of steps to be used in achieving a specific job
  45. Contingency Plans
    Define a company responses to be taken in case the plan implemented does not work as expected

    could also be used for unexpected positive results
  46. SWOT Analysis
    • Internal
    • - Strengths
    • - Weaknesses
    • External
    • - Opportunities
    • - Threats
  47. Cost Leadership
    the organization aggressively seeks efficient facilities , pursues cost reductions, and uses tight controls to produce products more efficiently than competitors

    • Strong central authority
    • maintains standard operating procedures
    • easy to use manufacturing technologies
    • highly efficient procurement and distribution systems
    • close supervision, finite employee empowerment
  48. Focus strategies
    the organization concentrates on a specific regional market or buyer group

    • frequent, detailed control reports
    • may use combination of above policies directed at a specific strategic target
    • values and rewards flexibility and customer intimacy
    • measures cost of providing service and maintaining customer loyalty
    • pushes empowerment to employees with customer contact
  49. New trends in strategy
    • Innovation from within
    • - dynamic capabilities - managers focus on leveraging and developing more front he firms assets, capabilities, and core competencies in a way that will provide a sustained competitive advantage

    Strategic partnership
  50. Organizational Chart
    is the visual representation of an organizations structure

    Vertical structure - coordination from top to bottom

    Horizontal structure - departmentalization - who works together
  51. Work Specialization
    • degree to which tasks are subdivided into individual jobs
    • a highly specialized job is narrow in scope
    • increases efficiency up to a point
    • with extreme specialization workers tend to become bored and alienated
  52. Chain of command
    the like of authority, shown in the organizational chart, that links all persons and shows who reports to whom
  53. Authority
    • Managers have authority because of the positions the hold - not who they are
    • to be effective, it must be accepted but subordinates
  54. Responsibility
    • duty to perform the task and employee has been assigned
    • Authority should be commensurate with responsibility
  55. Delegation
    • Process to transfer authority and responsibility to positions below
    • delegation does not reduce responsibility
    • benefits both the organization and the individual employee
  56. Line Authority
    means that people in management positions have formal authority to direct and control immediate subordinates
  57. Staff authority
    is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise

    a communication relationship
  58. Span of Management
    • number of employees reporting to a supervisor
    • tradition has recommended a span of management of four to seven subordinates
    • what is best depends on the situation

    • Factors
    • Work performed but subordinates is stable and routine
    • subordinates perform similar work tasks
    • concentrated in a single location
    • highly trained and need little direction in performing tasks
    • rules and procedures defining task activities are available
    • support systems and personnel re available for the manager
    • little time is required in nonsupervisory activities such as coordination with other departments or planning
    • managers personal preferences and styles favor a large span
  59. Centralization
    Authority at the top - little delegation
  60. Decentralization
    Authority is pushed down to the lower levels, much delegation
  61. Functional Approach
    departments based on similar activities, skills and resource use

    Advantages: efficient use of resources, Economies of scale, in depth skill specialization

    Disadvantages: poor communication, among departments, slow response to external changes, loyalty more to function than customer of the whole organization
  62. Divisional Approach
    • departments are grouped together based on organizational outputs( product, geography, customer)
    • functions (eg. marketing) are split between the divisions
    • its advantages and disadvantages tend to be the opposite of those of the functional approach

    advantages: quicker changes in unstable environment, more in touch with customers

    disadvantages: duplication (competition for resources among divisions), less professional specialization
  63. Matrix approach
    • functional and divisional chains of command simultaneously
    • violates the unity of command concept

    advantages: sophisticated technology, fast-changing environment, to get the advantages of both functional and divisional structures, diverse products and geographical areas

    disadvantages: many meetings to coordinate activities, high conflict between two sides of matrix, need for extensive human relations training
  64. Team approach
    • cross functional teams (clusters) consist of employees from various functional departments
    • teams typically have more decision making power than previously held by workers at their levels

    advantages: quicker response time, better morale, reduced administrative overhead

    disadvantages: conflict, time and resources spent on meetings
  65. Network Approach
    • virtual
    • organization divides major functions among separate companies brokered by a small headquarters organization
    • somewhat like a functional organization

    advantages: increases competitiveness, especially of small firms, flexibility, reduced costs

    disadvantages: no hands- on control, loyalty weakened
  66. General Goals of human resource management
    Attract, Develop, and maintain an effective work force
  67. Attitudes: ABC Model
    An Evaluation either positive or negative that predisposes a person to act in a certain way

    • Affect - feelings for an object
    • Behavioral Intentions - potential behavior towards an object
    • Cognition - beliefs about an object
  68. Attitude Change Techniques
    • Persuasion - cognition -> behavior : if you change your beliefs then your behavior will change
    • Conditioning - affect -> Cognition -> behavior : change feelings, then change beliefs, then change behavior
    • Cognitive Dissonance Production - behavior -> cognition : change beliefs in order to justify behavior
  69. Perception
    the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment

    "the link between the person and the environment"

    includes social perception - impressions of people
  70. Selectivity
    perceiving only part of environment or attending to some parts more than others

    • external factors - similarity, size, nearness, motion
    • internal factors - experience, motivation
  71. Closure
    Adding to your perception

    • stereotyping
    • halo effects
    • attribution - judging the causes of someone’s behavior

    perceive a whole when only parts are there
  72. Fundamental Attribution Error
    We perceive others behaviors as more internally caused than they are
  73. Self-serving bias
    we perceive our own

    • success as internal
    • failure as external
  74. Personality
    Is the set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment

    • Internal state - can't observe personality
    • Uniqueness - all different than everyone else
    • consistency
    • stability - consistency across time

    Managers who appreciate the ways their employees personalities differ have insight into what kinds of leadership behavior will be most influential
  75. Emotional Intelligence
    • 1. knowing one's own emotions
    • 2. controlling one's emotions
    • 3. recognizing other's emotions - empathy
    • 4. Social Skill - controlling others emotions

    Incompetence in management occurs more often from lack of EQ than lack of IQ

    Essential in managing conflict
  76. Locus of Control
    People who believe that individuals are in control of their own lives have an internal locus of control

    people that think that forces beyond their control dictate what happens to them have an external locus of control
  77. Type A Behaviors
    • Highly competitive
    • impatient
    • high job involvement
    • aggressiveness

    • more stress related illnesses
    • high energy
    • seek positions of power and responsibility

    • determinants
    • - sensitive nervous system
    • - demanding parents (love contingent upon achievement)
  78. Level 5 Leadership
    • a leader with a combination of personal humanity and resolve
    • more ambitious for their companies than for themselves
  79. interactive leadership
    a leader who is concerns with consensus building, is open and inclusive, and encourages participation

    seems to be more prevalent among females
  80. Leadership Grid
    • Concern for production measured from 1 to 9
    • concern for people measured on a scale of 1 to 9
    • team management (9,9) is often considered the most effective style for all managers
  81. Transactional Leader
    this is the traditional view of leadership that the new approaches are contrasted with

    A leader who clarifies subordinates' role and task requirements, initiates structure, provides rewards, and displays consideration for subordinates
  82. Charismatic Leader
    a leader whose personality motivates subordinates to transcend their expected performance
  83. Visionary leader
    a leader who is able to imagine how the future could be and inspire others to work toward creating that future
  84. Transformational Leader
    A leader distinguished by a special ability to bring about innovation and change
  85. Servant Leader
    A leader who works to fulfill subordinates' needs and goals - as a means to achieve the organizations larger mission
  86. Substitutes
    accomplish by other means what leaders do
  87. neutralizers
    prevent leader from leading - lack of power to control rewards, physical separation
  88. Organizational behavior
    an interdisciplinary field dedicated to the study of human attitudes, behavior and performance in organizations
  89. Organizational Citizenship
    refers to the tendency of people to help one another and put in extra effort that goes beyond job requirements to contribute to the organizations success

    being helpful to coworkers and customers, doing extra work when necessary, looking for ways to improve products and procedures
  90. Cognitive component
    include the beliefs, opinions and information the person has about the object of the attitude
  91. Affective component
    the persons emotions about the object of the attitude
  92. behavioral component
    the persons intention to behave toward the object of the attitude in a certain way
  93. Perceptual selectivity
    is the process by which individuals subconsciously screen and select the various objects and stimuli that vie for their attention
  94. Stereotyping
    the tendency to assign an individual to a group or broad category and then to attribute widely held generalizations about the group to the individual
  95. halo effect
    occurs when the perceiver develops an overall impression of a person or situation based on one characteristic either favorable or unfavorable
  96. projection
    the tendency of perceivers to see their own personal traits in other people, project their own needs, feelings, values and attitudes into their own judgment of others
  97. perceptual difference
    the tendency of perceivers to protect themselves against objects, ideas or people that are threatening
  98. attributions
    judgments about what caused a person’s behavior

    • internal - says characteristic of person lead to behavior
    • external - says something about the situation caused the persons behavior
  99. Distinctiveness
    whether the behavior is unusual for that person
  100. consistency
    whether the person being observed has a history of behaving in the same way
  101. consensus
    whether other people tend to respond to similar situations in the same way
  102. Authoritarianism
    the belief that power and status differences should exist in the organization
  103. Machiavellianism
    is characterized u the acquisition of power and the manipulation of other people for purely personal gain
  104. Type B
    Less of Type A

    experience less conflict with other people and a more balanced relaxed lifestyle
  105. Stress
    and individuals physiological and emotional response to external stimuli that place physical or physiological demands on the individual and create uncertainty and lack of personal control when important outcomes are at stake

    - peoples responses to stress vary according to their personalities
  106. Leadership
    the ability to influence people toward the attainment of goals
  107. Humility
    being unpretentious and modest rather than arrogant and prideful
  108. Differences between a manager and leader
    manager - promotes stability, order, and problem solving within the existing organizational structure

    leader - promotes vision, creativity, and change. questioning the status quo so that outdated, unproductive or socially irresponsible norms can be replaced to meet new challenges - move organization into the future
  109. consideration
    people oriented behavior, the extent to which leadership is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust
  110. initiating structure
    degree of task behavior, the extent to which the leader is task oriented and directs subordinate work activities toward goal attainment
  111. situational theory
    an interesting extension of the behavioral theories summarized in the leadership grid

    - subordinates vary in readiness level
  112. Fiedlers Contingency Theory
    highly favorable/ unfavorable situation - task oriented is best

    moderate favorability - relationship oriented is best
  113. Power
    potential ability to influence the behavior of others
  114. influence
    the effect a person’s actions have on the attitudes values and beliefs or behavior of others
  115. sensation - thinking
    • emphasizes details facts certainty
    • is a decisive applied thinker
    • focuses on short term realistic goals
    • develops rules and regulations for judging performance
  116. intuitive - thinking
    • prefers dealing with theoretical or technical problems
    • is creative, progressive, perceptive thinker
    • focuses on possibilities using impersonal analysis
    • is able to consider a number of options and problems simultaneously
  117. sensation - feeling
    • shows concern for current, real-life human problems
    • is pragmatic, analytical, methodical and conscientious
    • emphasizes detailed facts about people rather than tasks
    • focuses on structuring organizations for the benefit of people
  118. intuitive - feeling
    • avoid specifics
    • is charismatic, participative, people oriented and helpful
    • focuses on general views, broad themes and feelings
    • decentralizes decision making, develops few rules and regulations
  119. alienated follower
    a person who is an independent, critical thinker but is passive in the organization
  120. conformist
    a follower who participates actively in the organization but does not use critical thinking skills
  121. passive follower
    a person who exhibits neither critical independent thinking nor active participation
  122. effective follower
    a critical, independent thinker who actively participates in the organization
  123. Legitimate power
    power that stems from a formal management position in an organization and the authority granted to it
  124. reward power
    power that results from the authority to bestow rewards on other people
  125. expert power
    power that stems from special knowledge of or skill in the tasks performed by subordinates
  126. referent power
    power that results from characteristics that command subordinates' identification with respect and admiration for and desire to emulate the leader
  127. Moral Leadership
    distinguish right from wrong and choosing to do right in the practice of leadership
  128. Motivation
    refers to the forces either within or external to a person that arouse enthusiasm and persistence to peruse a certain course of action
  129. Intrinsic rewards
    are the satisfactions a person receive in the process of performing a particular action
  130. Extrinsic Rewards
    are given by another person typically a manager, and include promotions, pay increases and bonuses
  131. Content theories
    a group of theories that emphasize the needs that motivate people
  132. Hierarchy of needs theory
    A content theory that proposes that people are motivated by 5 categories of needs that exist in a hierarchal order

    low order needs take priority over high level needs

    • Physiological needs
    • safety needs
    • esteem needs
    • belongingness needs
    • self-actualization needs
  133. Physiological needs
    these most basic human physical needs include food water and oxygen
  134. Safety needs
    these needs include a safe and secure physical and emotional environment
  135. Esteem needs
    reflect the desire for a positive self-image and to receive attention, recognition, and appreciation from others
  136. Belongingness needs
    relate to the desire to be accepted by one’s peers, have friendships, be a part of a group, and be loved
  137. self-actualization needs
    these needs include the need for self-fulfillment, which is the highest need category

    concern for developing ones full potential , increasing ones competence and becoming a better person
  138. ERG Theory
    identifies only three categories of needs

    • Existence needs - the needs for physical well being
    • Relatedness needs - the need for satisfactory relationships with others
    • Growth needs - the needs that focus on the development of human potential and the desire for personal growth and increased competence

    movement up the hierarchy is more complex
  139. Frustration- Regression principle
    the idea that failure to need a high order need may cause a regression to an already satisfies lower need

    used in ERG theory
  140. Two factor theory
    work characteristics associated with dissatisfaction were quite different from those pertaining to satisfaction

    • Hygiene factors
    • motivators
  141. Hygiene factors
    involve the presence or absence of job satisfiers include working conditions, pay, company policies, and interpersonal relationships
  142. Motivators
    factors that influence job satisfaction based on fulfillment of highest level needs such as achievement, recognition, responsibility and opportunity for growth
  143. Acquired needs theory
    proposes that certain types of needs are acquired during the individuals lifetime

    • 1. need for achievement - the desire to accomplish something difficult, attain a high standard of success, master complex tasks and surpass others
    • 2. need for affiliation - the desire to germ close personal relationships, avoid conflict and establish warm friendships
    • 3. needs for power - the desire to influence or control others, be responsible for others, and have authority over others
  144. Process Theories
    a group of theories that explain how employees select behaviors with which to meet their needs and determine whether their choices were successful.
  145. Goal-Setting Theory
    a motivation theory in which specific challenging goals increase motivation and performance, when the goals are accepted by subordinates and these subordinates receive feedback to indicate their progress toward goal achievement
  146. Equity
    A situation that exists when the ratio of one person's outcomes to inputs equals that of others
  147. Equity Theory
    A Process theory that focuses on individuals' perceptions of how fairly they are treated relative to others
  148. Reduce feeling of equity
    • change work effort - a person may choose to increase or decrease his/her inputs to the organization
    • change outcomes
    • change perceptions - research suggests that people are able to change perceptions of equity if they are unable to change inputs or outcomes
    • leave the job - people who feel inequitably treated may decide to leave their jobs rather than suffer the inequity of being under/over paid
  149. Expectancy Theory
    a process theory that proposes that motivation depend on individuals expectations about their ability to perform tasks and receive desired awards
  150. E -> P expectancy
    expectancy that putting effort into a given task will lead to high performance
  151. P -> O expectancy
    expectancy that successful performance of a task will lead to a desired outcome.
  152. Valence
    the value or attraction an individual has for an outcome
  153. reinforcement theory
    a motivation theory based on the relationship between a given behavior and its consequences
  154. behavior modification
    the set of techniques by which reinforcement theory is used to modify human behavior
  155. positive reinforcement
    the administration of pleasant and rewarding consequence following a desired behavior
  156. Avoidance learning
    negative reinforcement

    the removal of unpleasant consequence when an undesirable behavior is corrected
  157. Extinction
    the withdrawal of a positive reward
  158. Punishment
    the imposition of an unpleasant outcome following undesirable behavior
  159. Job rotation
    a job design that systematically moves employees from one job to another to provide them with variety and stimulation
  160. job enlargement
    a job design that Comines a series of tasks into one new broader job to give employees variety and challenge
  161. job enrichment
    a job design that incorporated achievement, recognition, and other high-level motivators into the work
  162. Core Job Dimensions
    Determine a jobs motivation potential

    • Skill variety
    • task identity
    • task significance
    • Autonomy
    • Feedback
  163. Skill variety
    - the number of diverse activities that compose a job and the number of skills used to perform it
  164. Task Identity
    - the degree to which an employee performs a total job with a recognizable beginning and ending
  165. Task Significance
    the degree to which the job is perceived as important and having an impact on the company or customers
  166. Autonomy
    The degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks
  167. feedback
    the extent to which doing the job provides information back to the employee about his/her performance
  168. Empowerment
    Is power sharing, the delegation of power or authority to subordinates in an organization?
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Mgmt Final