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Chapter 2: Managing in a
Global Environment
Chapter 1
Management and Its Evolution
Management Challenges
Explain the major elements of classical and behavioral management perspectives. Describe the significance of the Hawthorne studies and their application to the human relations approach to management. Explain the key components of systems theory and contingency theory. Describe the basic concepts of the learning organization approach.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-4
The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions. Successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment.
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A firm can be efficient by making the best use of people, money, physical plant, and technology. It is ineffective if its goals do not provide a sustained competitive advantage. A firm with with excellent goals would fail if it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-6
Traditionally, the term management referred only to individuals responsible for making resource allocation decisions and with the formal authority to direct others.
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Levels of management:
Strategic Managers
Tactical Managers
Operational Managers
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Strategic Managers
The firms senior executives with overall responsibility for the firm.
Developing
the companys goals Focus on long-term issues Emphasize the growth and overall effectiveness of the organization
Concerned primarily with the interaction between the organization and its external environment.
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-9
Tactical Managers
Responsible for translating the general goals and plans developed by strategic managers into specific objectives and activities.
Shorter
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Operational Managers
Lower-level managers who supervise the operations of the organization. Directly involved with non-management employees
Implementing
the specific plans developed with tactical managers. This is a critical role to the organization. Operational managers are the link between management and non-management staff
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-11
Leading
Controlling
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Planning:
The management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives. To be effective, the objectives of individuals, teams, and management should be coordinated to support the firms mission.
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Organizing:
The management function that determines how the firms human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals. The deployment of resources to achieve strategic goals.
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Leading:
The management function that energizes people to contribute their best individually and in cooperation with other people. This involves:
Clearly
communicating organizational goals Inspiring and motivating employees Providing an example for others to follow Guiding others Creating conditions that encourage management of diversity
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-15
Controlling:
The management function that measures performance, compares it to objectives, implements necessary changes, and monitors progress. Many of these issues involve feedback or identifying potential problems and taking corrective action.
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The four basic management functions require a set of skills to be carried out properly. Because most managerial tasks are unique, ambiguous, and situation-specific, there is seldom one best way to approach them.
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Four major categories of skills will help you become a good manager:
Strategizing
Skills
Task-Related
Skills
Skills Skills
People-Related Self-Awareness
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Strategizing Skills
on key objectives without getting mired in details Sense what is happening inside and outside the company Respond in an appropriate and timely fashion
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Task-Related Skills
Involve the ability to define the best approach to accomplish personal and organizational objectives. They include consideration of all resources, including:
Time Organizational
In contemporary organizations, task-related skills are demanded of most employees from factory workers to top executives.
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People-Related Skills
Involve getting work done through others and with others. People skills include the ability to:
Delegate
tasks Share information Resolve conflicts Be a team player Work with people from very different backgrounds
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-22
Self-Awareness Skills
Being aware of your personal characteristics can help you adapt to others.
To
also help you understand why you react to them the way you do.
Avoid
rushed judgments Appreciate the nuances of particular situations Size up opportunities Capitalize on your personal strengths Avoid situations in which you are likely to fail
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-23
Task Skills
Environmental assessment scanning Strategy formulation Mapping strategic intent and defining mission Strategy implementation Human resource congruency
Setting and prioritizing objectives Developing plan of action and implementation Responding in a flexible manner Creating value Working through the organizational structure Allocating human resources Managing time efficiently
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Self-Awareness Skills
Delegating Influencing Motivating Handling conflict Win-win negotiating Networking Communicating Verbal Nonverbal Listening Cross-cultural management Heterogeneous teamwork
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Behavioral Perspective
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division
Classical Perspective
Scientific Management
Frederick
W. Taylor
Bureaucratic Management
Max
Weber
Fayol
Administrative Management
Henri
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Specialization of labor Formal rules and procedures Impersonality Well-defined hierarchy Career advancement based on merit
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10. Order 11. Equity 12. Stability and tenure 13. Initiative
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Behavioral Perspective
motivation
Maslow
Abraham
Leadership
Douglas
style
McGregor
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Hawthorne Effect:
The discovery that paying special attention to employees motivates them to put greater effort into their jobs.
(from the Hawthorne management studies, performed from 1924 1932 at Western Electric Companys plant near Chicago)
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Leaders and managers who hold Theory X assumptions believe that employees are inherently lazy and lack ambition.
Leaders and managers who hold Theory Y assumptions believe that most employees do not dislike work and want to make useful contributions to the organization.
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Systems Theory
Contingency Theory
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Systems Theory
Views the organization as a system of interrelated parts that function in a holistic way to achieve a common purpose. Systems theory concepts that affect management thinking:
Open
Contingency Theory
what works for one organization may not work for another Situational characteristics (contingencies) differ Managers need to understand the key contingencies that determine the most effective management practices in a given situation
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 1-38
An organization-wide approach that focuses on quality as an overarching goal. The basis of this approach is the understanding that all employees and organizational units should be working harmoniously to satisfy the customer.
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The management approach based on an organization anticipating change faster than its counterparts to have an advantage in the market over its competitors. There are two ways organizations can learn:
Experimental
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