I.

Organization
- A group of people working together in a structured and coordinated fashion
to achieve a set of goals.
a. Triple bottom line (3ps)
1. Profit
2. People
3. Planet
A. Organizational resources:
a. Human resources
- Managerial talent and labor.
b. Financial resources
- Capital investments to support ongoing and long – term operations.
c. Physical Resources
- Raw materials; office and production facilities, and equipment.
d. Information resources
- Usable date, information linkage.
i. Resource based View (RBV).
o Each organization has a set of (VRIO). Valuable, rare, inimitable, and
organized resources to make them competitive in business.
B. What is management
a. A set of activities (POLC)
- Planning and decision making, organizing, leading, and controlling.
b. Directed at an organization’s resources.
- Human, financial, physical, and information.
c. With the aim of achieving organizational goals in an efficient and effective manner.
C. Purpose of management
1. Efficiently using resources wisely and in a cost-effective way.
2. Effectively making the right decisions and successfully implementing them.
a. Effectiveness versus efficiency
i. Effectiveness
o Degree to which objects are achieved and the extent to which
targeted problems are resolved.
o Determined without reference to cost.
o Means “doing the right thing”.
ii. Efficiency
o Ability to produce a desired effect, product, etc. with a minimum of
effort, expense, or waste.
o Quality or fact of being efficient.
o The ratio of the effective or useful output to the total input in any
system.
o “Doing the thing right”
D. What is a manager
 a. Someone whose primary responsibility is to carry out the management
process.
- Plans and makes decisions, organizes, leads, and controls human, financial,
physical, and information resources
b. The manager’s job
i. Plan
 A manager cannot operate effectively unless he or she has
long range plans.
ii. Organize:
 When there is more than one employee needed to carry out a
plan, then organization is needed.
iii. Lead:
 Getting others to work together towards a shared goal.
iv. Control:
 Develop a method to know how well employees are
performing to determine what has been and what still must
be done.
c. The management process
i. Planning and decision making:
 Determining goals and course of action.
ii. Organizing:
 Coordinating activities and resources.
iii. Leading:
 Motivating and managing people.
iv. Controlling:
 Monitoring and evaluating activities.
II. Management theory
- Jethro advising Moses: First management consultant in human history.
A. Importance of theory
i. Why use theories?
a. Theories provide conceptual framework for organizing knowledge and blueprints
for actions.
b. Management theories are grounded in reality.
c. Managers develop their own theories about how they should run their
organizations.
ii. Why study history?
a. Understanding history aids managers in the development of managerial
practices avoiding the past mistakes of others.
B. Quality management theory
i. PCDA
a. Plan – identify issue and root cause.
b. Do – fix a problem
c. Act/adjust – fine-tune and fix.
d. Check – Asses if a problem is fixed.
 C. K.I.S.S.
-Keep is short and simple (communication)
D. Early management pioneers
i. Robert Owen (1771 – 1858)
o British industrialist who recognized the importance of human resources
and implemented better working conditions through reduced child labor,
meals, and shorter hours.
ii. Charles Babbage (1792 – 1871)
- English mathematician who focused on creating efficiencies of production
through the division of labor, management and labor cooperation, and
application of mathematics to management problems.
D. Classical Management Prospective
i. Two different viewpoints.
1. Scientific Management
 Concerned with improving the performance of individual
workers.
 Grew out of the industrial revolution’s labor shortage at the
beginning of the twentieth century.
a. Frederick Taylor (1856 – 1915)
 Father of scientific management
 Replaced rule of thumb methods with scientifically
based work methods to eliminate “soldering”.
 Believed in selecting, training, teaching, and
developing workers.
 Used time studies, standards, planning, exception rule,
slide-rules, instruction cards, and piece – work pay
systems to control and motivate employees.
d. Frank and Lillian Gilbreth
- Reduced the number of movements in bricklaying, resulting in increased
output of 200%.
b. Henry Gantt
 Was an early associate of Fredrick Taylor.
 Developed the Gantt chart to improve working
efficiency through planning and scheduling.
e. Harrington Emerson
- Advocated job specialization
1. Administrative Management
a. Theory that focuses on managing the total organization rather
than individuals.
b. Henry Fayol (French industrialist)
 Wrote “General and Industrial Management”.
 Helped to systemize the practice of management.
 Was first to identify the specific management functions of
POLC.
 c. Lyndall Urwick
 Focused on synthesizing and integrating the work of other
classical management theorists.
d. Max Weber
 His theory of bureaucracy posits a rational set of guidelines for
structuring organizations.
e. Chester Barnard
 Wrote “The Functions of the Executive”.
 Proposed the theory of the acceptance of authority (by
subordinates) as the source of power and influence for
managers.
ii. Classical management today
a. Contributions
o Laid foundation for later theoretical developments.
o Identified management processes, functions, and skills.
o Focused attention on management as a valid subject of scientific
inquiry.
b. Limitations
o More appropriate approach for use in traditional, stable, simple
organizations.
o Prescribed universal procedures that are not appropriate in some
settings.
o Employees viewed as tools rather than as resources.
E. Behavioral Management Perspective
i. Behavioral Management
- Emphasized individual attributes and behaviors, and group processes.
- Recognized the importance of behavioral processes in the workplace.
ii. Hugo Munsterberg (1863 – 1916)
- Father of industrial psychology.
- Wrote Psychology and industrial efficiency.
iii. Behavioral Management evolves
a. Human relations movement
- Grew out of Hawthorne Studies.
- Proposed workers respond primarily to the social context of work, including
social conditioning, group norms, and interpersonal dynamics.
- Assumed the manager’s concern for workers would lead to increased worker
satisfaction and improved worker performance.
F. The Hawthorne Studies
- Conducted by Elton Mayo/ Associates at Western electric.
- Intended as a group study of the effects of a piecework incentive plan on
production workers.
- Workplace lighting changes unexpectedly affected both control and
experimental groups.
 Know Maslow’s hierarchy of needs.
G. Theory X and Y
- Douglas McGregor
a. Theory X – Assumes that employees dislike work, lack ambition, avoid
responsibility, and must be directed and coerced to perform.
b. Theory Y – Assumes that employees like work, seek responsibility, are
capable of making decisions, and exercise self-direction and self-control
when committed to a goal.
c. Theory Z – combination of theories X & Y.
H. Emergence of Organizational Behavior
a. Focuses on behavioral perspectives of management.
- Draws on psychology, sociology, anthropology, economics, and medicine.
b. Important organizational behavior topics.
- Job satisfaction and job stress.
- Motivation and leadership.
- Group dynamics and organizational politics.
- Interpersonal conflict
- The design of organizations.
I. Quantitative Management Perspective
a. Quantitative
- Focuses on decision making, uses mathematical models, computers to solve
quantitative problems.
b. Management Science
- Focuses on the development of representative mathematical models to
assist with decisions.
c. Operation Management
- The practical application of management science to efficiently manage the
production and distribution of products and services.
III. Chapter three
A. The organization’s environments
i. External
a. General environment – PESTLEEG
- Everything outside an organization’s boundaries – political, economic, social-
cultural, technological, legal, ethical, environmental, geographical/global
forces.
- PESTLEEG factors:
o Political – Democracy, Dictatorship, mixed
o Economic – Capitalism, Socialism, communism
o Social Cultural
o Technological
o Legal
o Ethical
o Environmental
 o Geographical/global
b. Task environment
- Specific groups and organizations that affect the firm.
- Dimensions of task environment – Specific groups affecting the organization.
o Competitors, Customers, suppliers, regulators, strategic partners.
iii. Internal environment
- Conditions and forces present and at work within an organization.
o Owners, board of directors, employees, physical work environment,
culture.
B. Organization’s Culture
- Set of internal values, beliefs, behaviors, customs, and attitudes the
determines the “feel” of the organization.
- Is not necessarily the same throughout the organization.
- Must be managed so that its strength benefits the firm’s overall effectiveness
and long-term success.
- Can be dysfunctional if it becomes strongly resistant to change.
a. P.R.A.S (Greek) – Power, Role, Achievement, SUPPORT.
C. Diversity and Multiculturism
a. Multiculturalism
- The broad issue associated with differences in values, beliefs, behaviors,
customs, and attitudes held by people in different cultures.
- Multicultural differences
o Increased globalization of business, immigration affect labor force.
b. Diversity
- When members of a group differ from one another along dimensions such as
age, gender, or ethnicity.
- Other dimensions of Diversity
o More handicapped people in the workforce.
o Religion, political beliefs, and viewpoints, lifestyles, and various other
characteristics.
c. Sources of conflict
- Personal actions being attributed to diversity status.
- Misunderstanding between people/groups.
- Cultural differences in lifestyle/work life.
- Prejudice/bias.
d. Cute model
- Understanding, empathy, tolerance, willingness to communicate.
D. Porters five forces framework
1. Rivalry
2. New entrants
3. Suppliers power
4. Buyer’s power
5. Substitute
IV. Chapter Four
A. Ethics
- Studies morality and values, also called moral philosophy, dealing what is
right and wrong, good and bad, virtue and vice.
a. Four types of ethics
1. Descriptive: Studying and describing morality of people, culture, and
society.
2. Applied: Drawing upon theory in order to ask what person is
obligated to do.
3. Meta: Dealing with moral terms, logic of moral reasoning.
4. Normative: Seeking to uncover, develop, and justify the basic moral
principle.
B. Individual in Ethics
a. Ethic’s
- An individual’s personal beliefs or behavior that conforms to generally
accepted social norms.
b. Ethical behavior
- Behavior that conforms to generally accepted social norms.
C. Social Responsibility and Organizations
a. Organizational Stakeholders
- People and organizations directly affected by the behaviors of an
organization and that have a stake in its performance.
b. Social responsibility
- The set of obligations an organization has to protect and enhance the
societal context which it functions.
c. Areas of social responsibility
- Stakeholders
- Natural environment
- Social welfare
i. Social responsibility approaches
a. Obstructionist stance
o Do as little as possible
b. Defensive stance
o Do only what is legally required and nothing more.
c. Accommodative Stance
o Meet legal and ethical obligations and go beyond that in selected
cases.
d. Proactive Stance
o Organization views itself as a citizen and proactively seeks
opportunities to contribute to society.
ii. Whistle Blowing
- Organizational response to the disclosure by an employee of illegal or
unethical conduct on the part of others within the organization is indicative
of the organization’s stance on social responsibility.
V. Chapter Five
A. Globalization
- Everyone is part of the global village.
- All organizations are affected by competition in the global economy
- Firms are reshaping themselves for international competition and discovering
new ways to exploit markets.
- Failure to take a global perspective is one of the biggest mistakes.
B. Meaning of international business
a. Domestic business
- Acquires all of its resources and sells all of its products or services within a
single country.
b. International business
- Based in a single country yet acquires a meaningful share of its resources
and/or revenue from other countries.
c. Multinational
- Transcends national boundaries and buys raw materials, borrows money, and
manufactures and sells its products in a world-wide marketplace.
d. Global
- Transcends the national boundaries and is not committed to a single home
country.
C. L.E.A.D.
- Licensing, exporting and importing, strategic alliance/joint venture, direct
investment.
D. Key concepts
a. Tariffs
- Taxes on goods shipped across national boundaries.
b. Quotas
- Limited on the number or value of goods that can be traded as exports or
imports
c. Export Restraint Agreements
- Voluntary limits on the volume or value of goods exported to or imported
from another country.
d. Subsidies and buy national laws
- Protection for domestic businesses from foreign competition.
E. World Trade Organization (WTO)
- Replaced GATT, goals of:
a. Promoting trade flows by encouraging nations to adopt
nondiscriminatory and predictable trade policies.
b. Reducing trade barriers through multilateral negations.
c. Establishing impartial procedures for resolving trade disputes among
members.
F. Hofstede six Dimensions
- P.M.I (I).U.
a. Power – attitudes towards power/authority.
 b. Individualism vs collectivism – Attitude towards groups.
c. Masculinity vs Femininity – attitudes towards success.
d. Uncertainty avoidance – attitude towards uncertainty.
e. Long term orientation – Attitude towards time.
f. Indulgence restraint – attitude towards gratification.
VI. Chapter six
A. POLC – a set of activities.
- Planning, decision making, Organizing, leading and controlling.
a. Directed at an organization’s resources
- Human, financial, physical, information.
- Aims to achieve double E ( basic purpose of management).
B. Decision making and planning
a. Decision making:
- Cornerstone of planning.
- Catalyst that drives the planning process.
- Underlies every aspect of setting goals/formulating plans.
b. Planning
- All organizations plan, but not in the same fashion.
- All planning occurs within environmental context.
- All goals require plans to guide in their achievements.
- All goals are tied higher goals and plans.
c. Every plan has pros and cons.
C. Purposes of goals.
a. Guidance and unified direction.
b. Promotion of good planning.
c. Source of motivation.
d. Evaluation and control.
D. Kinds of plans
a. Strategic (upper management)
b. Tactic (middle management)
c. Operational (lower-level managers)