Chapter 1: Managing today

1. 3 characteristics of organization:
- Goals
- People
- Structure
2. Management levels:
- Top managers
- Middle managers
- First line managers
+ Top managers are usually responsible for making decisions about the direction of the
organization and defining policies and values that affect all organizational members. E.x:
vice president, president, chancellor, managing director, chief operating officer (COO),
chief executive officer (CEO), or chairperson of the broad.
+ Middle managers are those managers found between the lowest and top levels of the
organization. Middle managers may have such titles as department or agency head,
project leader, unit chief, district manager, division manager, or store manager.
+ First - line manager are those individuals responsible for directing the day-to-day
activities of nonmanagerial employees and/or team leaders.
3. The management process: Efficiency vs Effectiveness
- Efficiency: Doing things right, or getting the most output from the least amount of
inputs
- Effectiveness: Doing the right things, or completing work activities so that
organizational goals are attained
4. Managerial skills:
- Conceptual skills: A manager’s ability to analyze and diagnose complex situations
- Interpersonal skills: A manager's ability to work with, understand mentor, and
motivate others, both individually and in groups.
- Technical skills: Job – specific knowledge and techniques needed to perform work
tasks.
- Political skills: A manager’s ability to build a power base and establish the right
connections
5. Mangament Roles Approach
- Managerial roles: Specific categories of managerial behavior; often grouped around
interpersonal relationships. information transfer, and decision making
- Interpersonal roles: Involving people (subordinates and persons out- side the
organization) and other duties that are ceremonial and symbolic in nature
- Decisional roles: Entailing making decisions or choices
- Informational roles: Involving collecting, receiving, and disseminating information
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 Chapter 2: The manager as decision maker
1. Definition of decision making
- Decision making is the essence of management.
- Everyone in an organization makes decisions, but its particularly important to
managers.
- Managers make decisions – mostly routine ones like which employee will work what
shift, what information to include in a report, how to resolve a customer’s complaint,
etc. – as they plan, organize, lead, and control.
2. Types of problems/ types of decisions
- Unstructured problem: A problem that is new or unusual for which information is
ambiguous or incomplete
- Structured problem: A straightforward, familiar, and easily defined problem
- Non – programmed decision: A unique and nonrecurring decision that requires a
custom-made solution
- Programmed decision: A repetitive decision that can be handied using a routine
approach
3. The decision making process
- Decision – making process as a set of eight steps.
 Chapter 6: Planning and Goal setting
1. Definition of planning
- Planning is often called the primary management function because it
establishes the basis for all the other things managers do as they organize, lead,
and control
- Planning - involves defining the organization's objectives or goals, establishing
an overall strategy for achieving those goals, and developing a comprehensive
hierarchy of plans to integrate and coordinate activities. It's concerned with
what is to be done, as well as how it's to be done.
- Informal planning
 Very little, if any is written down. What is to be accomplished is in the
heads of a few people. The organization's goals are rarely verbalized.
Informal planning generally describes the planning that takes place in
smaller businesses. The planning is general and lacks continuity.
- Formal Planning
 defining specific goals covering a specific time period,
 writing down these goals and making them available to organization
members,
 using these goals to develop specific plans that clearly define the path
the organization will take to get from where is is to where it wants to
be.
2. Types of plans

- breadth (strategic versus tactical)

 strategic plans: those that apply to the entire organization and encompass the
organization's overall goals
 tactical plans: specify the details of how the overall goals are to be achieved
- time frame (long term versus short)
 long-term plans: plans with a time frame beyond 3 years
 short-term plans: plans with a time frame of 1 year or less
- specificity (directional versus specific)
 specific plans: plans that are clearly defined and leave no room for interpretation
 directional plans: plans that are flexible and set general guidelines
- frequency of use (single-use versus standing).
  single-use: plan a one-time plan specifically designed to meet the needs of a
unique situation
 standing plans: plans that are ongoing and provide guidance for activities
performed repeatedly
3. Steps in the strategic management process

- Identify the organization's current mission, goals, and strategies

- Do an external analysis
 Mission: a statement of an organization's purpose
 Identifying goals and strategies give managers a basis for assessing whether they need
to be changed.
- Do an internal analysis
 Opportunities: positive trends in the external environment
 Threats: negative trends in the external environment
- Formulate strategies
 Resources: An organization's assets that it uses to develop, manufacture, and deliver
products to its customers
 Capabilities: An organization's skills and abilities in doing the work activities needed
in its business
 Core competencies: The major value-creating capabilities of an organization
- Implement strategies
 Strengths: Any activities that the organization does well or any unique resources
that it has
 Weaknesses: Activities that the organization does not do well or resources it
needs but does not possess.
 SWOT analysis: The combined external and internal analysis
 An analysis of the strengths, weaknesses, opportunities, and threats
 S-trenghts
 W-eaknesses
 O-pportunites
 T-rends
- Evaluate results
 Chapter 7: Structuring and Designing Organization
1. The elements of structure:
- The six basic elements of organizational structure: work specialization,
departmentalization, authority and responsibility, span of control, centralization vs
decentralization and formalization.
+ Work specialization: Dividing work activities into separate job tasks; also called
division of labor
+ Departmentalization: How jobs are grouped together
+ Authority: The rights inherent in a managerial position to give orders and expect the
orders and expect the orders to be obeyed
+ Responsibility: An obligation to perform assigned duties
+ Span of control: The number of employees a manager can efficiently and effectively
supervise
+ Centralization: The degree to which decision making takes place at upper levels of
the organization
+ Decentralization: The degree to which lower – level managers provide input or
actually make decisions
+ Formalization: How standardized an organization’s
2. Types of power:
- Coercive power: Power based on fear
- Reward power: Power based on the ability to distribute something that others value.
- Legitimate power: Power based on one’s position in the formal hierarchy.
- Expert power: Power based on one’s expertise, special skill, or knowledge.
- Referent power: Power based on identification with a person who has desirable
resources or personal traits.
3. Types of departmentalization:
- Functional: Groups employees based on work performed (e.g., engineering, accouting,
information systems, human resources)
- Product: Group employees based on major product areas in the corporation (e.g.,
women’s footwear, men’s footwear, and apparel and accessories)
- Customer: Groups employees based on customers’ problems and needs (e.g.,
wholesale, retail, government)
 - Geographic: Groups employees based on location served (e.g., North, South, Midwest,
East)
- Process: Groups employees based on the basis of work or customer flow (e.g., testing,
payment)
4. Organization design applications
- Simple structure: An organizational design with low departmentalization wide spans
of control, authority centralized in a single person, and little formalization
- Functional structure: An organizational design that groups similar or related
occupational specialties together
- Divisional structure: An organzational structure made up of separate business units or
divisions
- Matrix structure: A structure in which specialists from different functional
departments are assigned to work projects led by a project manager
- Team structure: A structure in which the entire organization is made up of work teams
- Boundaryless organization: An organization whose design is not defined by, or limited
to, boundaries imposed by a predefined structure.
 Chapter 8: Managing Human Resources and Diversity
1. Strategic human resource planning
- HRM is the management function concerned with getting, training, motivating,
and keeping competent employees.
- Core functions of HRM 4 functions:
 Identifying and selecting employees
 Employee development and retraining
 Employee compensation and motivation
 Employee maintenance

2. Recruitment and downsizing

- Recruitment process of locating, identifying, and attracting capable applicants.
- Downsizing - the permanent reduction of a company's labor force by removing
unproductive workers or divisions.
3. Selection
- Selection process: Screening job applicants to ensure that the most appropriate
candidates are hired
4. Orientation
Orientation: Introducing a new employee to the job and the organization
- Job orientation, 3 functions
 expands on the information obtained during the recruitment stage;
 clarifies specific duties and responsibilities;
 corrects any unrealistic expectations about the job
- Work unit orientation, 2 functions
 Familiarizes an employee with the goals of the work unit;
 Provides introduction to his/her coworkers
- Organization orientation, 3 functions
 Overall goals, philosophy, and rules;
 HR policies, work hours, pay procedures, benefits;
 Physical tour of facilities. Training and development
5. Training and development
Employee training: A leaming experience that seeks a relatively permanent change in
employees by improving their ability to perform on the job
6. Performance management
Performance management system: A system that establishes performance standards
that are used to evaluate employee performance Compensation and benefits
- WRITTEN ESSAY: descriptions of employee's strengths and weaknesses
- CRITICAL INCIDENTS: examples of critical behaviors that were especially
effective or ineffective
- ADJECTIVE RATING SCALES: lists descriptive performance factors (work
quantity and quality, knowledge, cooperation, loyalty, attendance, honesty,
initiative, and so forth) with numerical ratings
- BARS: rating scale + examples of actual job behaviors38,39
- MBO (management by objectives): evaluation of accomplishment of specific
goals
- 360-degree appraisal: feedback from full circle of those who interact with
employee
- MULTIPERSON: evaluation comparison of work group
7. Compensation and benefits

8. Safety and health

- Sexual harassment: Any unwanted action or activity of a sexual nature that
explicitly or implicitly affects an individuals employment, performance, or
work environment
- Family – friendly benefits: Benefits that provide a wide range of scheduling
options and allow employees more flexibility at work, accommodating their
needs for work/ life balance
 Chapter 11: Motivating & rewarding employees
Motivation: The process by which a person's efforts are energized, directed, and sustained
toward attaining a goal. (Energy, Direction, and Persistence.) It is not a personal trait.
1. Maslow’s hierarchy of needs theory
- It states that within every person there is a hierarchy of five human needs. As each
need is substantially satisfied, the next need becomes dominant.
- The five are:
 Physiological - basic food, drink, water, shelter, sexual needs.
 Safety -security and protection from physical and emotional harm.
 Social -affection, belongingness, acceptance, and friendship.
 Esteem -internal factors such as self-respect, autonomy, and achievement, and
external factors such as status, recognition, and attention.
 Self-actualization -a person's drive to become what he or she is capable of
becoming. (Early theory of motivation.
- Psychological and safety needs are considered lower-order needs and are satisfied
externally. Social, Esteem, and Self-actualization are higher-order needs are are
satisfied internally.
2. McGregor: theory X,Y
- Theories describing two distinct views of human nature.
 Theory X: The assumption that employees dislike work, are lazy, seek to avoid
responsibility, and must be coerced to perform. (assumes lower order needs
dominate.)
 Theory Y: The assumption that employees are creative, seek responsibility, and
can exercise self-direction.(assumes higher-order needs dominate.)
 Early theory of motivation.
3. Herzberg: Motivation-Hygiene theory
- It suggests that intrinsic factors are related to job satisfaction and motivation, and
extrinsic factors are associated with job dissatisfaction. Removing dissatisfying
characteristics from a job would not necessarily make the job satisfying.
- Hygiene factors are factors that eliminated dissatisfaction but don't motivate.
They include factors associated with job context, or those things surrounding a
job.
- Motivators were factors that increased job satisfaction and motivation. They
include intrinsic factors associated with job content or those things within the job
itself. (Early theory of motivation.)
4. McClelland: Three-need theory
Major motives in work are three acquired needs:
- The need for achievement (nAch) -the drive to succeed and excel in relation to a
set of standards;
- The need for power (npow) -The need to make others behave in a way that they
would not have behaved otherwise;
- The need for affiliation (nAff) -The desire for friendly and close interpersonal
relationships. (Early motivation theory.)
5. Stacey Adams: Equity theory
- This theory states that an employee compares his or her job's input-outcomes ration
with that of relevant others and then corrects any inequity.
6. Robert House: Path-goal theory
- This theory states that it is the leader's job to assist his or her followers in attaining
their goals and to provide the direction or support needed to ensure that their goals are
compatible with the overall goals of the organization.
- Identified four leadership behaviors: directive, participating, supportive, and
achievement-oriented.(Robert House)
7. Vroom: Expectancy theory
- The most comprehensive explanation of how employees are motivated.
- It is the theory that an individual tends to act in a certain way based on the expectation
that the act will be followed by a given outcome and on the attractiveness of that
outcome to the individual.
- The relationship between effort and performance (-expectancy), performance and
rewards (-instrumentality), and rewards and individual goals (-valence).
8. Motivation and compensation
- Pay-for-performance programs
- Competency-based compensation
- Broad-banding
- Stock options
 Chapter 14: Foundations of control
1. Definition of control
- Management function that involves monitoring activities to ensure that they’re being
accomplished as planned and correcting any significant deviations
2. Types of control system
a) Feed – forward control
- Control that takes place before a work activity is done
b) Concurrent control
- Control that takes place while a work activity is in progress
c) Feedback control
- Control that takes place after a work activity is done.
3. The process of control