Chapter 1

What is Management? The art of getting things done through people The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization.

Efficiency vs. Effectiveness Effectiveness doing the right things to achieve the appropriate goal Efficiency doing things right What is an Organization? a group of individuals who work together toward common goals

4 Managerial Functions:
1. 2. 3. 4. Planning Setting goals and defining the actions necessary to achieve those goals. Organizing the process of determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. Leading motivating and directing the members of the organization so that they contribute to the achievement of the goals of the organization. Controlling monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary.

Roles of Managers
1. Interpersonal Roles the role of a manager that involves relationships with organizational members and other constituents. a. Figurehead appearing at community functions, attending social events, hosting luncheons b. Leader working with and through their employees to ensure that the goals are met. c. Liaisons coordinating the activities between individuals and work groups within the organization and develop favorable relationships with outside constituents. 2. Informational Roles the managers responsibility for gathering and disseminating information to the stakeholders of the organization. a. Monitors scanning internal and external environments of the organizations for useful info. b. Disseminators sharing and distributing information. c. Spokesperson communicating info to individuals outside their units and organization. 3. Decisional Roles the role in which a manager processes information and reaches conclusions. a. Entrepreneur initiating projects that capitalize on opportunities that have been identified. Developing new products, services and processes. b. Disturbance handler copes with conflict and resolve problems as they arise. c. Resource allocator manager determines which projects will receive organizational resources. d. Negotiator

Managerial Scope of Responsibility

Functional Manager a manager who is responsible for managing a work unit that is grouped based on the function served General Manager a manager who is responsible for managing several different departments that are responsible for different tasks.

Levels of Management
First-line Manager the manager who supervises the operational employees. (Production supervisor, line manager, section chief, account manager). The primary objective is to ensure that the products or services of their organization are

delivered to customers on day-to-day basis. o Use appropriate tools, techniques, procedures; instructing, guiding subordinates, managing individual performance. o Technical Skills (most important); human skills; conceptual skills. Middle Managers: linking groups planning and allocating resources; coordinating interdependent groups; managing group performance. (department head, product manager, marketing manager) o Involved in 3 basic activities planning and allocating resources, coordinating interdependent groups and managing group performance. o Human skills most important Top-Level Manager: an eye on the outside provides the strategic direction for the organization. (CEO, president, chief operations officer, chief financial officer, executive vice president) o Conceptual skills (the ability to analyze complex situations) most important. It requires ability to think and to analyze causes, effects and consequences.

Chapter 2
What is Organization Structure?
Pattern of jobs and groups of jobs in an organization An important cause of individual and group behavior Those features of the organization that serve to control or distinguish its parts The dominant feature of organization structure is its patterned regularity

Organizational design management decisions and actions that result in a specific organization structure.
4 key design decisions: first decision focuses on individual jobs, the next 2 decisions focus on departments or groups of jobs, and the 4 decision considers the issue of delegation of authority throughout the structure.
th

Division of labor process of dividing work into relatively specialized jobs to achieve advantages of
specialization. 3 ways of labor division: 1. Personal specialization think of specialization in the sense of occupational and professional specialties. 2. Horizontal specialization work divided into different activities caused by the natural sequence of the work. 3. Vertical specialization hierarchy of authority

Departmentalization process in which an organization is structurally divided by combining jobs in departments

according to some shared characteristic of basis.

1.

Functional Departmentalization. Ex. Manufacturing organizations functional departments are: engineering, manufacturing, reliability, distribution, finance, personnel, public relations and purchasing. Banking: Loans, investments, trust, marketing, operations. Advantage: efficiency - its logical to have a department that consists of experts in particular fields. Disadvantage: because specialists are working with and encouraging each other in their areas of expertise and interest, organizational goals may be sacrificed in favor of departmental goals. 2. Geographic Departmentalization establishing groups (and management as well) according to geographic area. 3. Product Departmentalization (divisional organization) all jobs associated with producing and selling a product or product line will be placed under the direction of one manager. 4. Customer Departmentalization examples are: hospitals (emergency rooms, intensive care units, operating rooms...), load departments (industrial, commercial, or agricultural loans).

Chapter 3
4 stages of Globalization: 1. Domestic Stage market potential is limited to the home country, will all production and marketing facilities located at home. 2. International stage the company adopts a multi-domestic approach, meaning that competition is handled for each country independently. Product design, marketing and advertising are adapted to the specific needs of each country. 3. Multinational stage the company has marketing and product facilities located in many countries. Adopt a globalization approach, meaning they focus on delivering a similar product to multiple countries (ex. coca-cola) 4. Global (stateless) stage operate in true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost. Top management is dispersed among several nationalities. Market Entry Strategies an organizational strategy for entering a foreign market 1. Global Outsourcing (offshoring) engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies. 2. Exporting the corporation maintains its production facilities within the home nation and transfers its products for sale in foreign countries. a. Countertrade the barter of products for other products rather than their sale for currency 3. Licensing a corporation (the licensor) in one country makes certain resources available to companies in another country (the licensee) which enable the licensee to produce and market a product similar to what the licensor has been producing. A licensee generally keeps its own company name and operating systems. 4. Franchising a form of licensing in which an organization provides its foreign franchisees with a complete package of materials and services. A franchise takes the name and systems of the franchisor. 5. Direct Investing an entry strategy in which the organization is involved in managing its production facilities in a foreign country. a. Joint venture a variation of direct investment in which an organization shares costs and risks with another firm to build a manufacturing facility, develop new products or set up a sales and distribution network. b. Wholly owned foreign affiliate a foreign subsidiary over which an organization has complete control. c. Greenfield venture the most risky type of direct investment, whereby a company builds a subsidiary from scratch in a foreign country. International Management the management of business operations conducted in more than one country.

Economic Environment economic conditions in the country where the international organization operates. 4 factors:
1. 2. Economic Development Infrastructure a countrys physical facilities that support economic activities

3. 4.

Resource and Product Markets Exchange rates

The Legal-Political Environment - major concerns affecting international business

5. 6. Political Risk and Instability Laws and Regulations

The Socio-cultural Environment Social Values

1. Hofstedes value Dimension: Power distance the degree to which people accept inequality in power among institutions, organizations and people b. Uncertainty avoidance a value characterized by peoples intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity c. Individualism and collectivism d. Masculinity/femininity Masculinity is a cultural preference for achievement heroism, assertiveness, work centrality and material success. Femininity is a cultural preference for relationships, cooperation, group decision making and quality of life. e. Long-term/short-term orientation (identified later) the long term orientation includes a greater concern for the future and highly values thrift and perseverance; the short-term orientation concerned with past and present and places a high value on tradition and meeting social obligations. 2. Globe project value dimensions a. Assertiveness b. Future orientation similar to Hofstedes time orientation c. Uncertainty avoidance d. Gender differentiation e. Power distance f. Social collectivism g. Individual collectivism looks at the degree to which individuals take pride in being members of family, close circle of friends, team, or organization h. Performance orientation i. Humane orientation refers to the degree to which a society encourages and rewards people for being fair, altruistic, generous and caring.
a.

Ethnocentrism a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other
cultural values.

Multinational Corporation (MNC) an organization that receives more than 25% of its total sales revenues from operations
outside the parent companys home country; also called global corporation or transnational corporation.

Cultural Intelligence (CQ) a persons ability to use reasoning and observation skills to interpret unfamiliar gestures and
situations and devise appropriate behavioral responses. It includes 3 components that work together: cognitive (persons observation and learning skills and the ability to pick up on clues to understanding), emotional (self-confidence and selfmotivation) and physical (ability to shift speech patterns, expressions, and body language to be in tune with people from a different culture).

Chapter 4
A team is a unit of two or more people who interact and coordinate their work to accomplish a specific goal The team concept implies a sense of shared mission and collective responsibility.

Work team effectiveness is based on three outcomes-productive output, personal satisfaction, and the capacity to adapt and learn.

TYPES OF TEAMS 1. Formal teams are created by the organization as part of the formal organization structure. Three common types of formal teams are vertical, horizontal and special-purpose team. Vertical team is composed of a manager and his or her subordinates in the formal chain of command. Horizontal team is composed of employees from about the same hierarchical level but from different areas of expertise. Special-purpose teams, sometimes called project teams, are created outside the formal organization structure to undertake a project of special importance or creativity. 2. Self-directed teams typically consist of 5 to 20 multiskilled workers who rotate jobs to produce an entire product or service or at least one complete aspect or portion of a product or service. Problem-solving teams typically consist of 5 to 12 hourly employees from the same department who voluntarily meet to discuss ways of improving quality, efficiency, and the work environment. 3.

Virtual team is made up of geographically or organizationally dispersed members who are linked primarily through advanced information and telecommunications technologies. Building: Select the right team members Manage socialization Foster trust Effectively manage communications Global teams are cross-border work teams made up of members of different nationalities whose activities span multiple countries. TEAM CHARACTERISTICS 1. Size - Teams need to be large enough to incorporate the diverse skills needed to complete a task, enable members to express good and bad feelings, and aggressively solve problems. However, they should also be small enough to permit members to feel an intimate part of the team and to communicate effectively and efficiently. In general, as a team increases in size, it becomes harder for each member to interact with and influence the others.

2. 3.

Diversity - diverse teams produce more innovative solutions to problems. Member Roles - For a team to be successful over the long run, it must be structured so as to both maintain its members' social well-being and accomplish its task. People who play the task specialist role spend time and energy helping the team reach its goal. Initiate ideas. Propose new solutions to team problems. Give opinions. Offer opinions on task solutions; give candid feedback on others' suggestions. Seek information. Ask for task-relevant facts. Summarize. Relate various ideas to the problem at hand; pull ideas together into a summary perspective. Energize. Stimulate the team into action when interest drops. People who adopt a socioemotional role support team members' emotional needs and help strengthen the social entity. Encourage. Are warm and receptive to others' ideas; praise and encourage others to draw forth their contributions. Harmonize. Reconcile group conflicts; help disagreeing parties reach agreement. Reduce tension. Tell jokes or in other ways draw off emotions when group atmosphere is tense. Follow. Go along with the team; agree to other team members' ideas. Compromise. Will shift own opinions to maintain team harmony. People with dual roles both contribute to the task and meet members' emotional needs.

TEAM PROCESSES
1. Stages of Team Development FORMING STORMING NORMING PERFORMING ADJOURNING

2. Team Cohesiveness Team cohesiveness is defined as the extent to which members are attracted to the team and motivated to remain in it. Determinants: Team interaction Shared goals Personal attraction to the team The outcome of team cohesiveness can fall into two categories-morale and productivity. 3. Team Norms A team norm is a standard of conduct that is shared by team members and guides their behavior. Norms are informal. Sources: Critical events Primacy Carryover Behaviors Explicit Statements 4. Conflict Resolution Conflict refers to antagonistic interaction in which one party attempts to block the intentions or goals of another. Abilene paradox is tendency to go along with others for the sake of avoiding conflict. Causes of Conflict: Scarce Resources Communication Breakdown Personality Clashes Goal Differrences Handling Conflict 1. The competing style reflects assertiveness to get one's own way, and should be used when quick, decisive action is vital on important issues or unpopular actions, such as during emergencies or urgent cost cutting. 2. The avoiding style reflects neither assertiveness nor cooperativeness. It is appropriate when an issue is trivial, when there is no chance of winning, when a delay to gather more information is needed, or when a disruption would be costly. 3. The compromising style reflects a moderate amount of both assertiveness and cooperativeness. It is appropriate when the goals on both sides are equally important, when opponents have equal power and both sides want to split the difference, or when people need to arrive at temporary or expedient solutions under time pressure. 4. The accommodating style reflects a high degree of cooperativeness, which works best when people realize that they are wrong, when an issue is more important to others than to oneself, when building social credits for use in later discussions, and when maintaining harmony is especially important. 5. The collaborating style reflects both a high degree of assertiveness and cooperativeness. The collaborating style enables both parties to win, although it may require substantial bargaining and negotiation. The collaborating style is important when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when the commitment of both sides is needed for a consensus. Subordinate Goals Mediation Negotiation Integrative Negotiation -> Win-Win Distributive Negotiation -> Win-Lose

WORK TEAM EFFECTIVENESS Productive Output Satisfaction of Members

Chapter 5
Leadership is the ability to influence people toward the attainment of goals. Level 5 Leadership A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled with a fierce resolve to do what is best for the organization. Level 5 leaders develop a solid corps of leaders throughout the organization, so that when they leave the company it can continue to thrive and grow even stronger. Women's Ways of Leading Interactive Leadership The focus on minimizing personal ambition and developing others is also a hallmark of interactive leadership, which has been found to be common among female leaders. Interactive leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority

LEADERSHIP VERSUS MANAGEMENT A primary distinction between management and leadership is that management promotes stability, order, and problem solving within the existing organizational structure and systems. Leadership promotes vision, creativity, and change. In other words, "a manager takes care of where you are; a leader takes you to a new place." LEADERSHIP TRAITS Traits are the distinguishing personal characteristics of a leader, such as intelligence, values, self-confidence, and appearance.

BEHAVIORAL APPROACHES Two basic leadership behaviors identified as important for leadership are task-oriented behavior and people-oriented behavior. 1. Ohio State Studies Consideration falls in the category of people-oriented behavior and is the extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust. Initiating structure is the degree of task behavior, that is, the extent to which the leader is task oriented and directs subordinate work activities toward goal attainment. Michigan Studies The Michigan researchers used the term employee-centered leaders for leaders who established high performance goals and displayed supportive behavior toward subordinates. The less-effective leaders were called job-centered leaders; these leaders tended to be less concerned with goal achievement and human needs.

2.

3.

The Leadership Grid University of Texas proposed a two-dimensional leadership theory called the leadership grid.

CONTINGENCY APPROACHES Several models of leadership explain the relationship between leadership styles and specific situations. 1. Hersey and Blanchard's Situational Theory The point of Hersey and Blanchard is that subordinates vary in readiness level. People low in task readiness, because of little ability or training, or insecurity, need a different leadership style than those who are high in readiness and have good ability, skills, confidence, and willingness to work.

2.

Fiedler's Contingency Theory The starting point for Fiedler's theory is the extent to which the leader's style is task oriented or relationship (people) oriented. The favorability of a leadership situation can be analyzed in terms of three elements: the quality of relationships between leader and followers, the degree of task structure, the extent to which the leader has formal authority over followers. A leader, then, needs to know two things in order to use Fiedler's contingency theory. the leader should know whether he or she has a relationship- or task-oriented style. the leader should diagnose the situation and determine whether leader-member relations, task structure, and position power are favorable or unfavorable. Path-Goal Theory The leader's responsibility is to increase followers' motivation and clarify the path to attain personal and organizational goals. Leader Behavior: Supportive Leadership Directive Leadership Participative Leadership Achievement-oriented Leadership

3.

Charismatic and Transformational Leadership Transactional leaders clarify the role and task requirements of subordinates, initiate structure, provide appropriate rewards, and try to be considerate to and meet the social needs of subordinates. The charismatic leader has the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice. Transformational leaders are similar to charismatic leaders, but are distinguished by their special ability to bring about innovation and change by recognizing followers' needs and concerns, helping them look at old problems in new ways, and encouraging them to question the status quo.

POWER AND INFLUENCE Power is the potential ability to influence the behavior of others. Types: Position Power Legitimate Power Reward Power Coercive Power Personal Power Expert Power Referent Power Interpersonal Influence Tactics 1. Use rational persuasion 2. Make people like you 3. Rely on the rule of reciprocity 4. Develop allies 5. Be assertive-ask for what you want 6. Make use of higher authority 7. Reward the behaviors you want