Chapter 1

Why we need managers?

Businesses need managers to control and direct their businesses. They managers have the ability to act and take decisions under pressure. They push employees to get things done. Maintain relationships with the employees.

Who is a manager?

Someone who arranges and supervise the work of other people so that the goals of a business can be accomplished.

Classifications of managers
Top managers

Middle managers
First line managers

Non-managerial Employees

 Top managers
*like the president of a company, managers who are responsible to take major decisions regarding the whole company.

Middle managers
*managers who manage the first line managers such as a store manager.

First line managers

*manages the work of non-managerial employees, such as a sales manager.

Non-managerial Employees
*employees who are not managers such as waiters in restaurants.

 An organization is a group of organized people who work together to achieve goals. An organization must contain 3 things: 1- Purpose: The goals of the business that they work to achieve. 2- People: Employees in an organization who work together to achieve the purpose (goal) of the business. 3- Structure: The way employees are organized inside a company, such as managers and employees.

What is an organization?

Distinct Purpose

Deliberate Structure

People

What do managers do?

Management is arranging and monitoring the work of employees so that everything is done efficiently and effectively. Efficiency: Getting the most output from the least input, which means, getting the best result out of each department by using fewer people.

Effectiveness: Doing the activities of the company in the right way.

Management functions

Mintzbergs managerial roles

Henry Mintzberg is a management researcher who concluded that what managers do can best be described by looking at the managerial roles they work with. Managerial roles are the things that a manager is supposed to do.

3 types of managerial roles

Interpersonal Figurehead Leader Liaison Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator Negotiator

Interpersonal roles
1-Figurehead - A manager is expected to be a role model and a source of inspiration for the employees, people look at managers as the one in control of everything (figurehead). 2-Leader A manager is supposed to lead his team to success. 3-Laison- Managers must be able to communicate with employees and customers. (Laison means communication)

Informational roles
1-Entrepreneur- Solve problems, creates ideas, and builds these news ideas. 2-Disturbance Handler Handles any disturbance that occurs. (disturbance means problems) 3-Resource Allocator Locate resources for the company and plans the resources. (resources is also employees) 4-Negotiator Be able to communicate and negotiate with his company. (negotiate means discuss or debate)

Managerial skills Skills that a manager should have

Technical Skills or knowledge about the services or products of a company Technical skills are mostly needed by first line managers as they face customers usually Employees with good technical skills become first line managers Human Soft Skills (communication skills) Dealing with people skills E.g. Presentation skills and Communication skills Conceptual Mental and thinking skills A view of the organization as a whole and the relations of subunits and how the organization fits in a broader environment

How is the managers job changing?

Customers Customer is King Customer is my life High quality product and service Design a customer responsive organization Innovation Innovation is put creativity into action The world is changing Apple versus Samsung Sustainability The ability to achieve its business goals by integrating economical, environmental and social opportunities into business strategies Corporate Social Responsibility CSR

Chapter 2

Omnipotent vs. Symbolic view of management

1.Omnipotent view: Managers are

directly responsible for an organizations failure or success

2.Symbolic view: Organizations success

or failure is due to external forces outside managers control.

Omnipotent view
The manager is responsible for the success and failure of the organization When profits are high managers are rewarded with bonuses

When profits are down, top managers are often fired Business and sports organizations often use this view

Symbolic view
Organization performance is not the responsibility of a manager. The manager is only a symbol of control and influence. External factors play the greater role in an organizations success or failure, for example, a state of war.

Organizational Culture
Each person has a personality, we describe a person as funny, loving, friendly, and so on. Companies as well have personalities, we call them culture.

 Organization culture is the values in a company, principles, traditions, and ways of doing things. Culture means three things: 1- It is a perception, means it is not something you can physically touch or see. 2- It is descriptive, it is how employees describe the culture and history of a company, NOT whether they like it or not.

3- It is shared, all employees have different backgrounds since they come from different countries or have different traditions, however, they describe the culture of the company theyre working in together in the SAME way.

Strong vs. Weak Culture

Strong
Values widely shared Convey consistent messages about whats important to organization Most employees can tell stories about companys history or heroes Employees strongly live with culture Strong connection between shared values and behaviors

Weak
Values limited to a few people Culture sends contradictory messages about whats important Employees have little knowledge of history or heroes Employees are not strongly living the culture Weak connection

Where does culture come from?

Founders philosophy

Selection criteria

Top Management

Socialization

Organizationa l culture

How employees learn culture?

Stories: Narrative of all events and or people Rituals: Something that happens regularly (Facebooks painting of children taking over the world with laptops) Material Artifacts and symbols: layout and decoration and furniture Language: Vocabulary

Chapter 7

Process of taking a decision

Identify a problem Implementing an alternative Identify decision criteria

Selecting an alternative

Allocating weights to criteria

Analyzing alternatives

Developing alternatives

 1- Identifying a problem My sales team needs a new computer!

2- Identifying the decision criteria Memory and storage, display, warranty! 3- Allocating weights to criteria Memory and storage gets an importance of 5 out of 5, display gets an importance of 3 out of 5, warranty gets an importance of 3 out of 5.

 4- Developing alternatives HP, Sony, Toshiba 5- Analyzing alternatives HP is not good, Sony is great, Toshiba is not good 6- Selecting an alternative I choose Sony! 7- Implementing an alternative Installing the computer

Managers making decisions (theories)

Rationality: Logical decisions to add value. Bounded rationality: Logical decisions but being bounded by limited information. Intuition: Intuition means feelings, or sense, intuition decision making is making decisions based on experience. Evidence based: Making decisions based on expertise, judgment, external elements and internal elements

Types of decisions
1. Structured Problems and programmed decisions: - Structured problems: Straight forward familiar and easily defined problems. ( coat example) - Programmed Decision: A repetitive decision that can be handled by a routine approach. - Procedure: A series of sequential steps used to respond to a structured problem. a. Rule: An explicit statement that tells managers what can or cannot be done. b. Policy: A guidance for making decisions. Customer always come first

2. Unstructured problem and nonprogrammed decisions: - Unstructured problems: Problems that are new or unusual and for which information is ambiguous or incomplete. - Non-programmed decisions: Unique and nonrecurring decisions that require a custom made solution.

Conditions of decision making

1. Certainty: A situation in which a manager can make accurate decisions because all outcomes are known. 2. Risk: A situation in which the decision maker is able to estimate the like hood of certain outcomes. Under risk, managers use historical data, experiences to assign probabilities. 3. Uncertainty: A situation in which a decision makes has neither certainty nor reasonable probability estimates available. It then depends on the managers character. If he is optimistic he will follow a maximax choice, a pessimistic manager will follow a minimax choice.

Styles of decision making

1. Linear thinking style: A decision style characterized by a persons preference for using external data and facts and processing this information through rational logical thinking. 2. Non- Linear thinking style: A decision style characterized by a persons preference for internal sources of information and processing it with internal insights, feelings and hunches.

Biases and errors of decision making

Overconfidence: Immediate gratification= immediate results Anchoring effect= dependency on initial information only Selective perception Confirmation Framing= select specific aspects and neglecting others Availability= remember recent events Representation Randomness Sunk Costs= Forget that current choices cant correct the past Self-serving Hindsight= Over confidence of accurately predicting an event

Chapter 8

What is planning?
What is planning?: Defining an organizations goals, establish strategies for achieving those goals and developing plans to integrate and coordinate work activities. Why planning?:
It provides direction to managers and non managers. It reduces uncertainty It minimizes waste and redundancy It establishes goals and standards used in controlling

Types of goals
Goals are desired outcomes 1. Strategic or Financial goals: - Financial goals: Goals that are related to the financial performance of the organization - Strategic goals: Related to all the other areas of the business. 2. Stated or Real goals: - Stated goals: Official statements of what an organization says, and what its various stakeholders to believe, its goals are. - Real goals: Goals that an organization actually pursues, defined by the actions of its members.

Types of plans
1. Strategic plans and operational plans: - Strategic plans: Plans that apply to the entire organization and establish the organizations overall goals. - Operational plans: Plans that encompass a particular operational area of the organization 2. Short- term and long-term plans: - Short term plans: Plans covering one year or less. - Long term plans: Plans with a time frame beyond three years

Types of plans cont.

3. Specific plans and directional plans: - Specific plans: Plans that are clearly defined and leave no room for interpretation. - Directional plans: Plans that are flexible and set out general guidelines. 4. Single-use plans and standing plans: - Single use plans: A one-time plan specifically designed to meet the needs of a unique situation. - Standing plans: Ongoing plans that provide guidance for activities performed repeatedly.

Approaches to setting goals

1. Traditional goals setting: An approach to setting goals in which top managers set goals that then flow down through the organization and become sub goals for each organizational area. 2. Means-end chain: An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. 3. Management by objectives: A process of setting mutually agreed-upon goals and using those goals to evaluate employee performance.

Steps in setting goals

1. Review organizations mission, or purpose. 2. Evaluate available resources. 3. Determine the goals individually or with input from others. Well written goals
1. 2. 3. 4. 5. 6. Written in terms of outcomes rather than actions Measurable and quantifiable Clear as to a time frame Challenging yet attainable Written down Communicated to all necessary organizational members

Developing plans
There are 3 contingency factors to develop a plan: 1. The organizational level: The top management does strategic planning. The middle does both and the first does operational. 2. The degree of environmental uncertainty: When uncertainty is high plans should be specific, but flexible. 3. The length of future commitments: Plans should extend for enough to meet those commitments when the plans were developed.

Contemporary issues
1. Formal planning department: A group of planning specialists whose sole responsibility is helping to write organizational plans. 2. Environmental scanning: Screening information to detect emerging trends 3. Competitor intelligence: Gathering information about competitors actions rather than merely react to them.

Management History

Examples of early management

1- The pyramids- It took more than 100,000 workers and 20 years to finish the pyramids, who directed workers and told them what to do? Managers.

2- Adam Smith in 1776 published a book called The Wealth of Nations, he stated that, job specialization, is more efficient in production. For example, in a factory that builds computers, 10 employees would produce a lot if each one of them is responsible for one stage of production. However, they would produce much less if each one works alone to produce a computer.

Management theories
There are four management theories 1- Classical approach

2- Behavioral approach
3- Quantitative approach 4- Contemporary approach

Classical approach

Fredrick W. Taylor discovered the term scientific management, that is, there is only one way of doing things right.

General administrative theory

Henri Fayol developed 14 principles of management, which are rules that any organization can follow.

14 principles of management
1- Division of work: Specialization increases output by making employees only focus on one part.

2- Authority: Managers must be able to give orders. 3- Discipline: Employees must respect the rules on a company.

4- Unity of command: Each employee should receive orders from only one manager.
5- Unity of direction: Each company should have only one plan of action to guide managers. 6- Subordination of individual interest to general interest: The interests of one employee should not affect the company as a whole. 7- Remuneration: Employees must be paid a fair salary.

8- Centralization: A measurement of whether employees can affect a decision or not.

9- Scalar chain: The line of authority from top managers to lowest employees. 10- Order: Employees and materials should be in the right place at the right time. 11- Equity: Equality between employees.

12- Stability of tenure of personnel: Managers should provide a personnel planning and insure that replacements are available to fill vacancies. 13- Initiative: Employees who are allowed to begin a project will make a big amount of effort.
14- Esprit de corps: Build team spirit.

Bureaucracy
Weber was a German sociologist who studied organizations. He wrote that bureaucracy is a form of organization characterized by Division of Labor, Authority Hierarchy, Rules and Regulations, and Impersonal Relationships.

 Division of labor: Jobs broken down into simple, easy tasks. Authority Hierarchy: Positions in a company are arranged with a clear chain of command. Rules and Regulations: System of written rules.

Impersonal Relationships: Equal treatment to all employees based on work, not personalities.
Qualifications: People selected for a job based on qualifications not personal connections. Career orientation: Managers are career professionals, not owners of the depa

Behavioral approach
Organizational Behavior: study focus on the behavior and actions of people in an organization. The early OB advocates believed that people, employees, are the most valuable assets of an organization.

Quantitative approach
It is using quantitative techniques to solve or manage a problem, that is, applying statistics or computer stimulations in management activities. Total quality management: It is a management philosophy that aims at continual improvement and responding to the customer.

Contemporary approaches
System approach: A company takes resources from the environment (input) and processes them to transform them to products and services (output). Closed system: Not influenced by the environment. Open system: Influenced the environment.

Contingency approach
It states that each organization is different and therefore each manager should take a decision based on the situation as there are no universal rules for dealing with problems in all companies.

Chapter 10

Organizational structure & organizational design

Organizational structure is the arrangement of people and employees in an organization.

Organizational design is the act of changing the structure and re-designing it.

Organizational design components

There are six elements that make up the organizational design 1- Work specialization: As mentioned earlier, it is dividing work activities into specific separate job tasks.

2- Departmentalization: Categorizing the different tasks into departments.

3- Chain of command: The line of authority that runs from top managers to employees. It shows us who to report to, for example, the chain of command states that non-managerial employees are supposed to report ONLY to their first line managers.

4- Span of control: It is the number of employees can a manager efficiently and effectively manage.
5- Centralization and decentralization: Centralization is that managers make most of the decisions at a company; decentralization is when employees have an opinion about the decision.

6- Formalization: That employees are strictly controlled and monitored.

Mechanistic and organized structures

Mechanistic organizations are organizations where the design of the structure is rigid and tough. 1- High specialization 2- Rigid departmentalization 3- Clear chain of command 4- Narrow spans of control 5- Centralization 6- High formalization

 Organic organizations are organizations where the design of the structure is flexible. 1- Cross-functional teams 2- Cross-hierarchical teams 3- Free flow of information 4- Wide spans of control 5- Decentralization 6- Low formalization

contingency factors
The factors that managers depend on or use when designing an organizational structure. 1- Strategy and structure: Facilitate or define goals. 2- Size and structure: The bigger the organization, the more departments and rules it has. 3- Technology and structure: The use of technology in an organization 4- Environmental uncertainty and structure: Some companies are affected by environmental uncertainty, such as oil company ( it is uncertain when oil is going to finish); while other companies are not affected by the environmental uncertainty.

Traditional organizational designs

When designing the structure of the organization, managers choose one of the 3 traditional designs. 1- Simple structure: Low departmentalization, wide spans of control, centralized authority, and little formalization. 2- Functional structure: A design that groups similar or related departments together. For example, if I have an accounting department and a finance marketing, I would join them together into one department. 3- Divisional structure: A structure made up of separate business units or divisions.

Chapter 16

 Motivation is the process by which a persons efforts are energized. - Three elements: Energy- The energy element is a measurement of intensity, will, and drive. An energized person is a motivated person who is willing to work. Direction- The energy and motivation is useless unless it is directed by the manager. Persistence- Continuity of putting effort in the company.

Motivation

There is a part in this chapter that discusses motivation theory, however, it is not mentioned in the outline, so Im not sure whether it is necessary or not.

Current issues in motivation

1- Motivating in Tough Economic Circumstances: Keeping your employees motivated in harsh economic circumstances, for example, a company had to fire some of the employees because of the economic crisis since it couldnt afford to pay salaries for all employees, however, the owner gave those people who got fired things to keep them motivated, such as: he gave them some extra money and he kept their health insurance coverage going on.

 2- Managing cross-cultural motivational challengers:

Some companies have employees from different cultures, they would not all be motivated the same way since they have different traditions. *Motivating factors more important than money are: - Recognition among peers for achievement. - Recognition outside immediate work environment. - Opportunities for continuous learning.

- Involvement in crucial decision-making.

- Suitable challenges move people occasionally outside their comfort zones.

Motivating unique groups of workers

Motivating a specific group of workers in the same way.

Chapter 17

Who are leaders?

Someone who can influence others and has authority. Leadership is the process of leading, the process of influencing others.

Early Leadership Theories

Leadership Trait Theories: Identify traits that all leaders have. For example, a study once showed that leaders who are tall are more successful than those who are short, it was noticed to be a common trait among successful leaders.

 Leadership Behavior Theories: Identifies the behavior, personality, of leaders. For example, a leadership behavior is the way a leader reacts to something

Leadership Styles: Autocratic vs. democratic.

An autocratic leader is a leader who does not allow employees to participate and he tells them what to do without taking their opinions. A democratic leader is a leader who involves his employees in taking decisions and asks them to participate.

Seven traits associated with leadership

Honesty - A good leader is honest.

Competence Knows all the tasks assigned to his employees.

Commitment Committed to the company means loyal to the company and its goals.

Motivating Knows how to motivate his employees.

Reliable A leader must be a person where employees can count on or rely on. Courage He has courage and he is brave and knows how to decide in hard times. Visionary Has a plan, a vision and new ideas.

Contemporary views associated with leadership

Transactional leaders - Leaders who lead mostly by using social exchanges, social transactions, such as an exchange of a bonus for a good employee.
Transformational leaders Leaders who inspire and transform their employees to achieve more in company.

 Charismatic-Visionary Leadership A charismatic and influential leader whose actions force people to behave in a certain way.

Team leadership A leader who leads a specific team and directs them to certain goals.

Leadership issues in the 21st century

The issues facing leaders now are managing power, developing trust, empowering the employees, leading across different cultures, and becoming an effective leader.

Managing power
Leaders must have managing power, there are five sources of management powers: 1- Legitimate power: Legal power, when the manager is authorized to have power by the rules of a company. 2- Coercive power: The power to punish or control.

3- Reward power: The power to reward good employees.

4- Expert power: Power that is based on experience and knowledge. 5- Referent power: Power that arises due to the persons behavior or traits. For example: An employee might allow the manager to have power in specific situations because he likes or trusts the manager.

Developing trust
Credibility: When a person is known to be honest. Trust: The act of trusting a person. Trust can be developed by honesty of the manager, his knowledge, his flexibility with employees, his openness with his employees (How he accepts opinions from his employees).

Empowering employees
Empowering employees is simply giving power to the employees through trainings and teachings, as well as directing. It also means that a leader gives the employee the power to participate in decisions and give their opinions.

Leading across culture

Leading employees with different cultures and backgrounds depending on their traditions and cultures. For example, treating them all fairly and equally so that he would be an effective and efficient manager who does not differentiate between people.

Becoming an effective leader

Becoming an effective leader means that you should have enough knowledge and experience for employees to trust and follow you. Leader training can be an effective method in becoming an effective leader.

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