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Organizations

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People working together and coordinate their actions to achieve specific goals

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Goal

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A desired future condition that the organization seeks to achieve

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Management

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The process of using organizational resources to achieve the organization's goals

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Assets

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People, Machinery, Raw materials, Information, skills, and Financial capital

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Organizational Performance

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Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals

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Efficiency

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A measure of how well resources are used to achieve a goal.

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Effectiveness

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A measure of the appropriateness of the goals chosen and the degree to which they are achieved

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Henri Fayol

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Managers control planning, organizing, leading, and controlling

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Planning

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Is the process used by managers to identify and select appropriate goals and courses of action for an organization

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Organizing

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Managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals

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Organizational Structure

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The outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals

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Leading

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Managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals

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Controlling

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Managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance

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First-line Managers

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Responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service

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Middle Managers

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Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals

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Top Managers

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Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers

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Restructuring

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Top Management have sought methods to restructure their organizations and save costs

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Downsizing

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Eliminates jobs at all levels of management. Can lead to higher efficiency. Often results in low morale and customer complaints about service

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Empowerment

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Expand the tasks and responsibilities of workers

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Self-Managed Teams

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Give a group of employees responsibility for supervising their own actions

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Mintzberg on "Managerial Roles"

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A role is a set of specific tasks a person performs because of the position they hold 1. Interpersonal 2. Informational 3. Decisional

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Interpersonal Roles

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Roles managers assume to coordinate and interact with employees and provide direction to the organization

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Figurehead Role

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Symbolizes the organization and what it is trying to achieve

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Leader Role

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Train, counsel, mentor and encourage high employee performance

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Liaison Role

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link and coordinate people inside and outside the organization to help achieve goals

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Informational Roles

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Associated with the tasks needed to obtain and transmit information for management of the organization

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Monitor Role

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Analyzes information from both the internal and external environment

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Disseminator Role

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Manager transmits information to influence attitudes and behavior of employees

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Spokesperson Role

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use of information to positively influence the way people in and out of the organization respond to it

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Decisional Roles

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Associated with the methods managers use to plan strategy and utilize resources to achieve goals

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Entrepreneur Role

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Deciding upon new projects or programs to initiate and invest

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Disturbance Handler Role

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assume responsibility for handling an unexpected event or crisis

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Recourse Allocater Role

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assign resources between functions and divisions, set budgets of lower managers

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Negotiator Role

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Seeks to negotiate solutions between other managers, unions, customers, or shareholders.

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Conceptual Skills

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The ability to analyze and diagnose a situation and find the cause and effect

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Human Skills

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The ability to understand, alter, lead, and control people's behavior

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Technical Skills

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The job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing

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Job Specialization

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process by which a division of labor occurs as different workers specialize in specific tasks over time

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F.W. Taylor on "Scientific Management"

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The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

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Scientific Management Principle #1

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Time-and-motion study

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Scientific Management Principle #2

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Codify the new methods of performing tasks into written rules and standard operating procedures

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Scientific Management Principle #3

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Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures

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Scientific Management Principle #4

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Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

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Problems with Sci. Man.

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-Workers did not share in the increased output -Workers could purposely under-perform -Specialized jobs became very boring, dull

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The Gilbreths

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-Break up and analyze every individual action necessary to perform a particular task into each of its component actions -Find better ways to perform each component action -Reorganize each of the component actions so that the action as a whole could be performed more efficiently-at less cost in time and effort

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Administrative Management Theory

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The study of how to create an organizational structure that leads to high efficiency and effectiveness

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Max Weber

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Developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.

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Weber's Bureaucracy Rules

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1) A manager's formal authority derives from the position he holds in the organization. 2) People should occupy positions because of their performance, not because of their social standing or personal contacts. 3) The extent of each position's formal authority and task responsibilities and it's relationship to other positions should be clearly specified. 4) Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and who reports to them. 5) Managers must create a well-defined system of rules, standard operating procedures, and norms so they can effectively control behavior

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Rules

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Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals

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Standard Operating Procedures (SOPs)

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Specific sets of written instructions about how to perform a certain aspect of a task

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Norms

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unwritten, informal codes of conduct that prescribe how people should act in particular situations

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Fayol's Prin. of Management

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-Division of Labor -Authority and Responsibility -Unity of Command -Line of Authority -Centralization -Unity of Direction -Equity

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Division of Labor

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allows for job specialization. jobs can have too much specialization leading to poor quality and worker dissatisfaction

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Authority and Responsibility

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both formal and informal authority resulting from special expertise

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Unity of Command

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Employees should have only one boss

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Line of Authority

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A clear chain of command from top to bottom of the firm

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Centralization

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The degree to which authority rests at the top of the organization

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Unity of Direction

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A single plan of action to guide the organization

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Equiy

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The provision of justice and the fair and impartial treatment of all employees

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Order

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The arrangement of employees where they will be of the most value to the organization and to provide career opportunities

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Initiative

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The fostering of creativity and innovation by encouraging employees to act on their own.

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Discipline

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Obedient, applied, respectful employees are necessary for the organization to function

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Remuneration of Personnel

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An equitable uniform payment system that motivates contributes to organizational success

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Stability of Tenure of Personnel

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Long-term employment is important for the development of skills that improve the organization's performance

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Subordination of Individual Interest to the Common Interest

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The interest of the organization takes precedence over that of the individual employee

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Esprit de corps

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Comradeship, shared enthusiasm foster devotion to the common cause (organization).

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Behavioral Management

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The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals

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Mary Parker Follett

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Concerned that Taylor ignored the human side of the organization -Suggested workers help in analyzing their jobs -If workers have relevant knowledge of the task, then they should control the task

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The Hawthorne Studies

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Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932 -Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased

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Hawthorne effect

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workers' attitudes toward their managers affect the level of workers' performance

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Human relations movement

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advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity

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Implications Of Hawthorne effect

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Behavior of managers and workers in the work setting is as important in explaining the level of performance as the technical aspects of the task

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The Hawthorne Studies Demonstrated:

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the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance

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Douglas McGregor

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proposed the two different sets of assumptions about workers

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Theory X

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assumes the average worker is lazy, dislikes work and will do as little as possible

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Theory Y

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assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work

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William Ouchi

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researched the cultural differences between Japan and USA FOUND: -USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model. -Japan culture expects worker committed to the organization first and thus behave differently than USA workers

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Theory Z

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Combines Theory X and Y to make for long term employment

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Management Scientific Theory

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Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

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Quantitative Management

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utilizes linear and nonlinear programming, modeling, simulation, queuing theory and chaos theory.

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Operations management

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techniques used to analyze any aspect of the organization's production system

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Total Quality Management (TQM)

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focuses on analyzing input, conversion, and output activities to increase product quality

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Management Information Systems (MIS)

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provides information vital for effective decision making

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Organizational Environment Theory

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The set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources

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The Open-System View

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A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers

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OSV: Inputs

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the acquisition of external resources to produce goods and services

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OSV: Converstions

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transforms the inputs into outputs of finished goods and services

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OSV: Output

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the release of finished goods and services to its external environment

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Closed System

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A self-contained system that is not affected by changes in its external environment "There is no one best way to organize"

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Structures: Mechanistic

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Authority is centralized at the top. (Theory X)

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Structures: Organic

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Authority is decentralized throughout employees. (Theory Y)

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Mechanistic Structure

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-Authority is centralized at the top. -Emphasis is on strict discipline and order -Employees are closely monitored and managed. -Can be very efficient in a stable environment.

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Organic Structure

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-Authority is decentralized throughout the organization. -Departments are encouraged to take a cross-departmental or functional perspective -Works best when environment is unstable and rapidly changing

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