MGT 300-Exam 1 Lecture Notes
Module 1-Lecture 1
We want to be an exceptional manager-not average
Organization-a group of people who work together to achieve some specific purpose
1. Exist to do things individuals cannot do by themselves
2. Peter Drucker-“The purpose of an organization is to enable common people to do
uncommon things.”
1. Considered to be founder of professional management
New management-new group better than old group
Management-The pursuit of organizational goals efficiently and effectively by integrating the
work of people through planning, organizing, leading, and controlling the organization’s
resources
2. Managers are task oriented, achievement oriented and people oriented
1. The pursuit of organization goals-we want to be focused on something in efficient
and effective way
2. Integrate work of people
3. Do so by planning, organizing, leading and controlling resources
Organization goals-the mission or strategy
3. Purpose-what were doing
4. Direction-how were doing it
5. Control-how well were doing it
Smart managers: doing things right
6. Efficient-means of attaining goals, don’t waste recourses (time, material, $)
7. Effective-organization’s ends-the goals, achieving results, make right decisions, focus on
high priority goals
1. Ex. Burger king adds breakfast hours to increase customers-efficiency-goal is to add
more customers
People plan, organize, lead and control resources
4 step process of management: (the functions of management)
1. Planning-setting goals
2. Organizing-arranging people and work
3. Leading-influencing people to get these things done
4. Controlling-is performance what your goals were-corrective action is needed
1. Multiplier effect-make everyone around them better
8. Exceptional managers-very good managers-always in demand-increase profit
2. Rewards for exceptional managers-opportunity for $, growth, accomplishments
3. Competitive advantage-ability of an organization to produce goods or services more
effectively than competitors do-outperforming
1. Being responsive to customers, innovation, quality, efficiency
Module 1-Lecture 3
4. 3 levels of management:
1. Top management: (executive management or senior management)
1. Chief executive-#1 leader of organization-can also be president
2. President
3. Chief operating officer-can also be president
4. Executive, senior, VP
1. Make long-term strategic decisions about overall direction of organization
2. Monitor environment
3. Notice challenges/opportunities
4. 3-5 years=long-term
2. Middle management:
1. Director
2. Regional manager
1. Take strategies from top managers and figure out what to do with them-
implement plans and coordinate the activities of the first line managers below
them
2. 6-18 months
3. First line manager:
1. Supervisor
2. Forman
3. Team leader
1. Operational decisions-day to day routine work-working with employees
2. 1-3 months
Functional manager-responsible for 1 organizational activity
4. Finance, marketing, customer service, therapeutic services
General manager-responsible for several organizational activities
5. Higher management roles
Non-managerial personnel
6. Exceptional managers recognize non-managerial personnel
7. Success of manager influenced by non-managerial employees
Module 1-Lecture 4
What do managers do?
Henry Mintzberg-concluded that:
8. Expected to see a lot of planning/organizing
9. CEO’s were planning/organizing but in short bursts
10. CEO’s relied on verbal communication rather than written communication
11. CEO’s worked long hours at intense pace
12. CEO’s constantly being interrupted (fragmentation, brevity, variety)
13. 3 roles managers need to be good at
1. Interpersonal-people related
1. Figurehead-social, ceremonial duties
2. Leader-work with individuals to accomplish goals-train, develop, discipline
3. Liaison-work with individuals outside of organization
2. Informational-managing by information
4. Monitor-scans environment for important info
5. Disseminator-decides who to share info with inside unit
6. Spokesperson-deciding when to share info outside unit
3. Decision-managing through action
7. Entrepreneur-deciding what to change, when to change, how to change
1. High energy level and action orientation
2. Self confident and tolerance for risk
8. Disturbance handler-responding to problems
9. Resource allocator-sets priorities, budgeting, when it’s time to hire new
employees
10. Negotiator-working to move things forward
No differences in organizational level roles-all managers at all 3 levels need to be involved in
3 roles
14. May differ in time and emphasis
What skills do managers need?
Robert Katz-concluded that:
15. 3 basic skills every manager needs
1. Technical-ability to perform certain jobs
2. Conceptual-ability to analyze and think-what causes what
3. Human-ability to work with people
4. Soft-motivate, inspire, trust, communicate with others
Are there differences in the importance of skills across levels?
16. There are differences
17. Top managers-need to be more experiences in conceptual skills compared to other
levels
18. No differences for technical and human skills
19. Human skills are most important
Roles and skills can be learned
Companies seek:
-The ability to motivate and engage others
-Communicate
-Work experience outside US
-High energy levels to meet the demands of global travel-24/7 world
Module 2-Lecture 1
Value of management theory:
The Living Company
20. Some companies last hundreds of years-most do not
21. Commercial corporations last about 40 years
22. High mortality rate-dramatic failures-underachievers
23. Churches, universities last longer
Those who ignore history are condemned to repeat it.
Management fads-new, simple, latest, easy, fast
24. MBO-management by objective
25. Accountability management
26. Performance based management
Management fad detectors
27. Management theory-a collection of ideas which set forth general rules on how to
manage a business or organization
28. Evidence-based management-translating principles based on best evidence
(experience) into organizational practice, bringing rationality (logic) to the decision-
making process
29. Few very new ideas-usually repackaged old ideas
30. True better than new
31. Doing well dominates
Drucker’s Management Principles The Practice of Management:
32. Workers should be treated as assets
33. The corporation could be considered a human community
34. No business without a customer
35. Institutionalized management practices are preferable to charismatic leaders
5 practical reasons for learning management theories
1. Understanding of the present
2. Guide to action
3. Source of new ideas
4. Clues to meaning of your managers decisions
5. Clues to meaning of outside events
6. Producing positive results
Module 2-Lecture 2
Classical viewpoint—1911–1947
Behavioral viewpoint—1913–1950s
Quantitative viewpoint—1940s–1950s
Classical viewpoint:
People behave in a rational way
Increase efficiency
Closed system
9. Scientific management-emphasized the scientific study of work methods to improve
productivity of individual workers
1. Frederick Taylor-Taylorism
1. Soldiering-loafing, wasting time at work
2. Solution:
1. Scientifically study each part of the task
2. Carefully select workers with the right abilities
3. Give workers the training and incentives to do the task
4. Use scientific principles to plan the work methods
2. Gilbreths-Therblig
1. Analyzing the motions in performing a task
2. Early motion study technique (bricklaying)-pictures/notes
3. Later used photography and motion picture filming
4. Goal to reduce unnecessary tasks
10. Administrative management-concerned with managing the total organization
1. Henry Fayol-first contributor to what used to be 5 functions of management
1. Planning, organizing, coordinating, commanding, controlling
2. Coordinating dropped, commanding changed to leading
2. Max Weber-value of bureaucracy
1. Organization should have hierarchy of authority
2. Formal rules/procedures
3. Clear division of labor
4. Impersonality-shouldn’t be based on who you know
5. Careers based on merit-not relationships/friendships
Cons-view humans as cogs within a machine-not taking into account the importance of
human needs
Work activity-open to rational approach
Through scientific methods, time and motion studies, job specialization-possible to boost
productivity
Behavioral viewpoint:
11. Focused on understanding human behavior to be able to motivate employees to
achievement
12. 3 phases of behaviorism:
1. Early behaviorism
1. Munsterberg-father of industrial psychology
1. We should study jobs and find the people who are best suited for these jobs
2. Identify psychological conditions where employees do their best work
3. Strategies to influence employees to follow management’s interests
2. Follett-social philosopher
1. Organizations should be operated as communities
2. Conflicts should be resolved by having managers and workers talk over
differences and find solutions that would satisfy both parties
3. Work process should be under control of workers with relevant knowledge-more
knowledge than management
3. Mayo-researcher
1. Lighting would change work ethic
2. Hawthorne effect-employees worked harder if they received added attention and
managers cared and payed special attention
3. Gave rise to human relations movement
2. The human relations movement
4. Better human relationships could increase worker productivity
5. Maslow’s hierarchy of needs:
1. Self-actualization
2. Esteem
3. Social
4. Safety
5. Physiological
6. Douglas McGregor:
1. Theory X-pessimistic, negative view of workers-workers are irresponsible,
resistant to change
2. Theory Y-optimistic, positive view of workers-workers are responsible, self-
direction
3. Helps managers understand how their beliefs affect their behavior
4. Managers can be more effective by considering how their behavior is shaped by
their expectations about human nature
3. Behavioral science
7. Relies on scientific research for developing theories about human behavior that can
be used to provide practical tools for managers
8. 1950s/1960s-human relations movement
Quantitative viewpoint
13. Management science (operations research)
1. Stresses use of rational, science-based techniques and mathematical models to
improve decision making and strategic planning
2. WW1
14. Operations management
1. Focuses on production and delivery of an organization’s products or services more
effectively
2. Work scheduling, production planning, facilities location
Module 2-Lecture 3
The Contemporary Perspective:
The systems viewpoint
15. Organization as a system of interrelated parts
16. Collection of subsystems
17. Part of the larger environment
18. Inputs-transformation process-outputs-if feedback is + process continues
19. Open system-continually interacts with its environment
20. Closed system-has little interaction with environment
1. Management science perspective, classical management viewpoint
21. Entropy-the tendency for a system to decay if not receiving inputs from environments
22. Synergy-the whole organization is greater than the sum of its parts
23. Complexity theory-order and pattern arise form very complicated, chaotic systems
1. The contingency viewpoint
1. Acknowledges needs for managers to be flexible at times
2. Case-by-case basis
1. It depends
2. The quality-management viewpoints
3. Total ability of a product or service to meet customers needs
4. Quality control-finding and correcting defects, production process focus (not design)
5. Quality assurance-zero defects, build in quality, responsibility of all employees to
monitor for defects
6. TQM-Edwards Deming-led by top management and supported throughout the
organization-continuous quality improvement, training and customer satisfaction
1. Make continuous improvement a priority
2. Get every employee involved
3. Listen to and learn from people
4. Accurate standards to identify and eliminate problems
3. Learning organization-an organization that actively creates, acquires, and transfers
knowledge within itself and is able to modify its behavior to reflect that new knowledge
24. When a mistake is made-organization learns and doesn’t makes mistake again
1. Build a commitment to learning
2. Work to generate ideas with impact
3. Work to generalize ideas with impact-expand on ideas and share with others to
make more appropriate and useful
Peter Senge-major contributor to learning organization-where people continually expand their
capacity to create the results they truly desire, where new and expansive patterns of thinking are
nurtured, where collective aspiration is set free, and where people are continually learning how
to learn together.
25.
Module 3-Lecture 1
Triple bottom line-people, planet, profit-measures social, environmental and financial
performance
Social audit-assessment of a company’s performance in implementing socially responsible
programs-based on predefined goals
26. Influence-ability to get others to do what you want
27. Corporate governance-running a company to protect the interest of owners and other
stakeholders-oversight designed to ensure that the interests of the owners and
stakeholders are protected
28. Stakeholders-the people whose interests are affected by an organization’s activities
1. Managers job is the influence stakeholders
4. External stakeholders-outside ring is general environment
Hammer & Champy’s View-Three C’s
1. Change is constant
2. Competition increases
3. Customers take charge
Tom Peter’s view of the business environment
-Were in a brawl with no rules-were unclear with what will work and what will not in the
future
Richthofen-Red Barron
-Squadron painted planes colors
-Really good at making decisions off assessing what was going on in his environment
-Situational awareness-knowing what’s going on around you
Economic forces-unemployment, inflation, interest rates
Technological forces-new development in methods for transforming resources into goods
and services-most common changes in IT
Sociocultural forces-influences and trends-country, society, culture
Demographic forces-changes in population, age, gender, ethnicity
-More women than men in workforce
Political-legal forces-changes in politics
International forces-changes in economic, political, legal, technological
External stakeholders-middle ring is task environment
-Customers, competitors, suppliers, distributors, media
-Strategic allies-2 organizations who join forces to achieve advantages neither can
perform as well alone
-Influence on our ability to get tasks done
Internal stakeholders-employees, owners, board of directors
-Owners-all those who can claim organization as their legal property
Clawbacks-rescinding the tax breaks when firms don’t deliver promised jobs
Module 3-Lecture 2
29. Ethics-standards of right and wrong that influence behavior
1. Accepted as proper according to a society’s prevailing values
30. Values-relatively permanent and deeply held underlying beliefs and attitudes that help
determine a person’s/organization’s behavior
31. Code of ethics/values-a formal written set of ethical standards or values guiding an
organization’s actions
32. Ethical dilemma-situation where you decide whether to pursue a course of action that
may benefit you or your organization but is unethical or illegal
33. Ethical climate-employees’ perceptions about the extent to which work environments
support ethical behavior
Kohlberg-how people learn ethics
1. Preconventional-follows rules out of fear of punishment-do what they’re told
2. Conventional-follows expectations of others-standard and most common-compliance is
expected
3. Postconventional-guided by internal values-stricter standards-you do something because
it is the right thing to do
Sarbanes-Oxley-requirements for proper financial record keeping for public companies-most
senior members are personally responsible to verify and sign records to verify that financial
records are accurate
Ponzi scheme-using cash from newer investors to pay off older ones
Followers want from management:
1. Honesty
2. Forward-looking
3. Inspiring
4. Competent
GLOBE researchers-leadership skills not liked-face saving, self centered, asocial
4 ways for approaching ethical dilemmas:
1. Utilitarian-what will result in the greatest good for the greatest number of people
2. Individual-what will result in the individual’s best long term interest-will ultimately serve
everyone else’s self interest
1. Assumption that people will act ethically in the short run to avoid others harming
them in the long run
3. Moral rights-respect for the fundamental rights of human beings-dignity and respect
4. Justice-respect for impartial standards of fairness and equity
Promoting ethics in the organization:
2. Creating strong ethical climate
3. Screening of prospective employees
4. Ethics codes and training programs
5. Rewarding ethical behavior-protecting whistle-blowers
34. Government regulators-regulatory agencies that establish ground rules under which
organizations may operate
Module 3-Lecture 3
35. Social responsibility-manager’s duty to take actions that will benefit the interests of
society as well as of the organization
36. Corporate social responsibility-corporations are expected to go above and beyond
following the law and making profit
37. Carroll’s global corporate social responsibility pyramid:
1. Economic responsibility-what is required by global capitalism-profitable
2. Legal responsibility-what is required by global stakeholders-obey the law
3. Ethical responsibility-do what is expected by global stakeholders-be ethical
4. Philanthropic responsibility-do what is desired by global stakeholders-be a good global
corporate citizen
Friedman-increase profits (economic responsibility)
Ben & Jerry-organizations have a philanthropic responsibility
Module 4-Lecture 1
38. Globalization-the trend of the world economy toward becoming a more interdependent
system
1. Demographics
2. Access to info
The global village-shrinking of time and space-media makes it easier to communicate
Global mind set-combines an openness to awareness of diversity across cultures and markets
and a propensity and ability to see common patterns across countries and markets
E-commerce-buying and selling of services through computer networks
E-business-using the internet to facilitate every aspect of running a business
Global economy-increasing tendency for economies of the world to interact with one another
as 1 market instead of many international markets
Internet
3. Small companies can get started more easily
4. Small companies can maneuver faster
BRIC companies-Brazil, Russia, India, China-fastest growing/largest emerging market
economies
Our biggest trading markets are Canada and Mexico
5 reasons why companies expand internationally:
1. Availability of supplies
2. New markets
3. Lower labor costs
4. Access to financial capital
5. Avoidance of tariffs & important quotas
Maquiladora-employs international citizens for favorable tax treatment by international
government
5 ways companies expand internationally:
Lowest risk
Global outsourcing-using suppliers outside US to provide labor, goods services
Importing, exporting, countertrading
- Countertrading=bartering goods for goods without $
Licensing & franchising
Joint ventures (strategic alliance)-when US & foreign country form enterprise in foreign
country
Wholly-owned subsidiaries-when operation is totally owned by outside organization-outside
country
- If subsidiary is built from scratch-called greenfield venture
Highest risk
WTO
- 153 countries involved
- Monitor and enforce trade agreements
- Agreements based on GATT
World Bank
- Low-interest loans to developing nations for improving transportation, education, health
and telecommunication
IMF
- Designed to assist in smoothing the flow of money between nations
Trading blocs (economic community)-a group of nations within a geographic region that
have agreed to remove trade barriers with one another
- NAFTA-U.S., Canada, Mexico
- European Union-27 trading partners
Tariffs-customs duty, tax, levied mainly on imports
- Revenue tariff-raise money for the government such as a tax on oil imports
- Protective tariff-raise the price of imported goods to make the prices of domestic
products more competitive
Import quotas-limits the # of a product that can be imported
Embargoes-complete ban on the import or export of certain products
Sanctions-trade prohibition on certain types of products, services, or technology for specific
reasons
Dumping-practice of a foreign company’s exporting products abroad at lower price than the
price in the home market-drives down the price of the domestic product
Trade protectionism-the use of government regulations to limit the import of goods and
services
Module 4-Lecture 2
39. Ethnocentric-believe their native country, culture or language is superior to all others
1. Parochialism-narrow view in which people see things solely through their own
perspective
Polycentric-native managers in the foreign offices best understand native personnel and
practices-home office should leave them alone
Geocentric-accept that there are differences and similarities between home and foreign
personnel and practices and that they should use whatever techniques are most effective
Culture-shared set of beliefs, values, knowledge and patterns of behavior that are common to
a group of people
Low-context culture-shared meanings are primarily derived from written and spoken words
High-context culture-rely heavily on situational cues for meaning when communicating with
others
Power distance-how power is shared or not shared
Uncertainty avoidance-avoiding unpredictability, not being willing to take risks
Institutional collectivism-how loyal you should be to group or self
In-group collectivism-how much pride is okay to have
Gender egalitarianism-has to do with gender and how the culture treats men and women-are
they equal or is there discrimination
Assertiveness-how confrontational or competitive it’s okay to be
Future orientation-plan and prepare for future-ex. saving
Performance orientation-how society honors achievement and excellence
Human orientation-how important it is to be a good, kind, caring, fair person
Interpersonal space-how close you are to people
Time orientation
2. Monochromic-1 thing at a time
3. Polychromic-multitasking
Expatriates-people living or working in a foreign company
4. 10-20% return early because of job dissatisfaction or adjustment difficulties
40. Expropriation-government’s seizure of a domestic or foreign company’s assets
