Management Learning Review: Study Question Summary

Foundation in Management Learning

By:

Yulia Ratnasari 3124039

INTERNATIONAL BUSINESS NETWORKING PROGRAM UNIVERSITAS SURABAYA 2012

Management: in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management: a process of implementing these: Planning, Organizing, Leading/Actuating, and Controlling (POAC) functions to all organizations resources for realizing its organization goals. Simply means: people handling people. Management = Science + Art + Process + System No success organization without good management implementation.
Management strives for:

Efficiency

Doing things right Resource Usage (cost; sacrifice) Doing the right things Goal Attainment (output)

Low Resource Waste (High efficiency)

Effective

High Goal Attainment (High effectiveness)

CHAPTER ONE THE MANAGEMENT PROCESS

1. The challenges of working in the new economy. Working today included several aspects, such as: talent, technology, globalization, ethics, diversity, and careers. Work in the new economy is increasingly knowledge based, and intellectual capital is the foundation of organizational performance.
Intellectual Capital STRATEGIC ASSETS For organizations:

pathway to performanc through human creativity, insight, and decision making

Intellectual Capital: the collective brainpower or shared knowledge of a workforce, which can be used to create value. The Intellectual Capital Equation states: Intellectual Capital = Competency * Commitment A knowledge worker: someone whose mind is a critical asset to employers.

For they: People and their talents what skills, and capabilities individuals: that differentiate us 1) Know, from others + make us PERSONAL valuable to potential 2) Learn, ASSETS Main foundations employers of organizational performance 3) Do with it

package of intellects,

Managers call it as intellectual capital.

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Both are essential (one without another isnt enough in careers and organizations requirement). Competency: talents or job-relevant capabilities. Commitment: willingness to work hard in applying them to important tasks.

Commitment

Competency

Intellectual Capital

To be exceptional (remarkable), heights of personal accomplishment must be reached in workplace, dominated by knowledge workers. Conceptual Age belongs to people with whole mind competencies that are: 1) HIGH CONCEPT: creative and good with ideas; 2) HIGH TOUCH: joyful and good with relationship. Creative economy knowledge itself is becoming a commodity. Where how fast something new can be created is the most important differentiator.

Organizations must value the talents of a workforce whose members are increasingly diverse with respect to gender, age, race and ethnicity, able-bodiedness, and lifestyles. Workforce diversity: describes differences among workers in gender, race, age, ethnicity, religion, sexual orientation, and able bodiedness. How diversity bias can occur in the workplace: 1) Prejudice: the display of negative, irrational attitudes, opinion toward members of diverse population. 2) Discrimination: actively denies minority members the full benefits of organizational membership. 3) The glass ceiling effect: an invisible barrier limiting career advancement of women and minorities. Diversity trends (tendency) of changing demographics in society are well organized. For example: That is, minorities now constitute more than one-third of the population, whose proportion is growing. The U.S. Census Bureau predicts that by 2050, whites will be minors against combined races. Despite of the diversity of workforce, the dealing way with diversity in workplace remains an issue. Due to the reality, it shows diversity bias. Diversity bias is developed from prejudice discrimination the glass ceiling effect. For example (in age discrimination) 1) Theres an opinion that a young-workers are less qualified and less professional. Nowadays, the figures shown up an increase profits which are
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announced productivity from young-workers. However, the facts dont enough to break societys mindset. 2) Then, a Human Resource Managers fabricate reasons not to interview minority candidates, which young-workers are included there, without seeing their performance. On the subtle belief that They are still young, so they can get another business opportunities later; while older-workers need to fund their family, the company should prior them, they distinguish them. 3) In the company, therere woman workers and some young workers accepted, and most of them show a good performance. But, therere an obstacles which make they cant be promoted. Explanation: 1) Prejudice: judgments toward people or a person because of their multiculturalism. *i.e. the young-workers classifications differentiate. 2) Prejudice becomes active discrimination when theres an impartial action or distinguishing treatment against individual against its membership. *i.e. denies to interview young-workers and subtle reasons. 3) Discrimination becomes glass ceiling effect when theres glass (refer to: unseen or transparent) barrier that keeps minorities and women from rising to the upper rungs of the corporate ladder, regardless of their qualifications or achievements *i.e. women workers and some young workers arent promoted even if they show a good performance.

The forces of globalization are bringing increased interdependencies among nations and economies, as customer markets and resource flows create intense business competition.

Globalization: the worldwide independence of resource flows, product markets, and business competition.

Globalization simply implies the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. In economy, it means the national boundaries of world business have largely disappeared (- Kenichi Ohmae).

Many companies from other countries exist domestically and serve customers and supplies wherever it may be located, it hire talents from around the world available at lowest cost. For example: McDonald; Toyota; Blackberry; Apple; GIA; Zara, which is assembled in other countries. Communication and transportation Deregulation of markets and open borders

Process = IMPROVEMENT IN TECHNOLOGY

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Not only that, countries and people also interconnected trough: 1. Labor markets 2. Employment patterns 3. Financial and business dealings. For example: A company assembled in Germany is now listed in NASDAQ exchange markets. Then, it developed bigger. Then, agreement of joint venture made between Germany and Japan to open new branches there, at the same time, Japan paid the contract from Bank in Singapore to Switzerland (Germanys). Theres a value chain which is interact each work; and globalization offers both opportunities and challenges.

Ever-present developments in information technology are reshaping organizations, changing the nature of work, and increasing the value of knowledge workers Technology is rapidly expanded from time to time. Its required in new ways of working as people spend least time of their work time telecommuting without ever meeting face to face.

Tech IQ: ability to use technology and commitment to stay informed on the latest technological developments.

Tech IQ is a persons ability to use technology to stay informed: 1. Telecommuting 2. Virtual Teams 3. Effective use of online resources (a) Databases (b) Job searches (c) Recruiting (d) Social Media The process of job seeking and employment screening is increasingly technology driven. For instance: therere many sites that connected supplies and demands of labors, like: www.jobstreet.co.id; www.karir.com; www.jobs.accor.com; www.indonesianstudentjob.com; and so on. Also, therere many companies open recruitment or announcement in their websites, such as: www.career.garuda-indonesia.com; www.unilever.co.id/careers/vacancies; www.lionjobs.com; and so on.

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Society has high expectations for organizations and their members to perform with commitment to high ethical standards and in socially responsible ways.

Ethics: code of moral principles that set standards of conduct of what is good and right. Ethical behavior: what is accepted as good and right in the context of the governing moral code.

Ethical expectations for modern businesses: a. Integrity and ethical leadership at all levels b. Sustainable development c. Natural environment protection d. Consumer protection e. Human rights

Laws and Values as Determinants of Ethical Behavior 1. Legal behavior is not necessarily ethical behavior. Ethical behavior is more necessary than legal behavior. Whats legal doesnt define as ethics. Most occupations have ethics that come along with the job. They are not written done; they are unspoken rules of conduct that people adhere to. For example: an electrician has an ethical responsibility to repair your house wiring correctly so that it works correctly and is not a safety hazard for you. But theres no regulation that the electrician should repair the house wiring correctly. 2. Ethics is different with law. A key difference is in terms of the sanctions which apply if these are violated. For example: If unethical way is done, they may face disapproval from peers, not being professional works and so on. Break the law and they could face a police investigation, a court appearance, and various penalties. 3. Personal values help determine individual ethical behavior. Personal values mean individuals own perception between which is ethical and which is unethical. It might be difference from one to another. For example: slavery may seem ethical for someone; but the other sees it as violation.

Careers in the new economy require great personal initiative to build and maintain skill "portfolios" that are always up-to-date and valuable in a free agent economy.

Todays career challenge isnt just finding your first job; its also about successful career planning. Charles Handy (British scholar and consultant) uses the analogy of Shamrock Organization to describe implication.

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Careers: organizations consist of three types of workers, sometimes referred to as a shamrock organization: operates with a core group of full-time long-term workers supported by others who work on contracts and part-time. In a free agent-economy people change jobs more often, and many work on independent contracts with a shifting mix of employers. Portfolio worker: up-to-date skills that allow for job and career mobility. Self-management: the ability to understand one self, exercise initiative, accepts responsibility, and learns from experience.

Permanent full time workers

Temporary part-time workers

Freelance or contract workers

First leaf: The permanent full time workers, whose work is following standard career paths and the numbers, are shrinking. Its replaced by the second leaf: The freelancers and independent contractors, who provide specialized skills and talents on a contract basis. Its also being replaced by the third leaf: the part-time workers. The temporary parttimers often work without benefit and they are the first to be laid off.

If current trends continue, a free-agent economy will be succeeding. Flexible contracts and shifting mix of employers over time means skills must be upto-date, portable and always of value portfolio workers. That job skills are: Early career survival skills Mastery Networking Networking Love Technology Marketing Passion for renewal Needing to be good at something, able to contribute something of value to the employer. Needing to know people; links with peers and others within. Acting like running own business (opportunities; spotting ideas and act to embrace) Embrace and utilize technology Promote self, communicate own successes and progress, both personally and work-team Continuous learning and changing, always updating yourself to best meet future demands.

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Job-skills cant be gained once and forgotten, they must be carefully maintained and upgrade all time. Thats implying self-management should be able to realistically assess workers and actively manage personal development. What are organizations like in the new workplace? Organizations are collections of people working together to achieve a common purpose. In other words, Organization is a social entity that has a collective goal and is linked to an external environment. Organization is a unique social phenomenon that enables its members to perform tasks far beyond the reach of individual accomplishment division of labor. Purpose: organizations provide useful goods or services that return value to society: 1. Quality products and services 2. Customer satisfaction 3. Social responsibility.

Organization: a collection of people working together to achieve a common purpose.

Division of labor: the specialization of cooperative labor in specific, circumscribed tasks and like roles

For example: Usakti is an organization who gives education (a university). Under the initiative of Mr. R.Soekotjo, Chairman, Foundation of Usakti Surabaya as well as Mayor of Surabaya, the name for Usakti was altered to UNIVERSITAS SURABAYA. The aims of Ubaya: Ubaya Vision: To be the First University in Heart and Mind Ubaya Mission: To advance business and industrial society by developing three services of the Three services of University activities (Tri-Dharma Ubaya) continuingly for the welfare of human being Then, all the staffs and lecturers give the students, who were an external environment hence become part of Ubaya, to provide education and developing the society. As open systems, organizations interact with their environments in the process of transforming resource inputs into product and service outputs.

All organizations are open systemsinteract with their environmentand do a continual process. Costumer and client feedback indicate how well an organization provides opportunities for constructive adjustment.

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Consumer feedback means consumer satisfaction. In a An open system: transforms resource inputs from the environment into product outputs. Inputs: factors or resources of production (land, labor, capital and entrepreneurship). Output: the final good or service produced using the factors of production through a production process. competitive marketplace where social media (surveys) has given the customer voice center stage, now more than ever it's critical to know exactly what your customers think.

For example: Ford motor attains consumers feedback using its website: http://fordmotorcompany.suggestionbox.com to improve its performance. Gathering and listening to consumers feedback is important, thus, they can change for the better. Stark testimonies: without loyal customers, a business cant survive. Productivity is a measure of the quantity and quality of work performance, with resource costs taken into account. Organizational performance: Value creation is a very important notion (idea) for organizations. Operations add value to the original cost of resource inputs. (Total Revenue = Total Cost Profit). Adding value simply means valuing profit. That occurring: 1. Businesses organization: earn a profit 2. Nonprofit organizations: add wealth to society

Productivity: overall measure of the quantity and quality of work performance, with resource utilization considered.

Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input. For example: TC of good X is 500 USD. It is sold as 700 USD. Hence, the profits is 200 USD. To sum up, productivity is a measure of the efficiency of production (while efficiency is related with the resource cost).
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High-performing organizations achieve both performance effectiveness in terms of goal accomplishment, and performance efficiency in terms of resource utilization.

Performance effectiveness: an output measure of task or goal accomplishment. Performance efficiency: an input measure of resource cost associated with goal accomplishment.

Most common ways to assess organizations performance is productivity. Performance efficiency input measure (cost, sacrifice) Efficient: do the things right. Performance effectiveness output measure (goal) Effective: do the right things.

For example: Suppose that two new companies, X and Y, are trying to produce cars. X starts by deigning the cars by trial and error and wastes a lot of time and resources doing it. After a year, X finally fixes to use a design and announce the production to the mass. Y, on the other hand, starts by cleaning and applauding its design before produce the cars. Y is very applauding of its design by redraw the design even the production can produce it perfectly without the redrawing process. Now if we had a third company, Z, who could produce the cars with desiring designs and do it quickly without any unimportant steps, Z do it effectively and efficiently. Explanation from example: X is attaining the goal but it is not efficient resources wasted. (Doing the right thing, but it was doing it poorly) Y is efficient, but it is not effective redrawing the design is not required in the process of producing. (Doing things right but not doing the right things) FOR DISCUSSION is it ever acceptable to sacrifice performance efficiency for performance effectiveness? In some issues, it's better to sacrifice performance efficiency to attain its performance effectiveness. Because as it defines, efficiency means low cost. Low quantity and quality mean lower cost. But, it
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should be defined in addition of goal attainment. When the goal is in x quantity and x quality, performance efficiency cant be sacrificed due to the goal of production. 2. Who are managers and what do they do? Managers directly support and facilitate the work efforts of other people in organizations. Manager handling people In every organization, therere managers, whose works are variety of job titles, such as: team leader, department head, supervisor, project manager, president, and so on. They are essential human resources whose contributions represent real work of the organization.

Manager: a person who supports, activates and is responsible for the work of others

Managers may direct workers directly, or they may direct several supervisors who also direct the workers. The manager must be familiar with the work of all the groups he/she supervises, but does not need to be the best in any or all of the areas. It is more important for the manager to know how to manage the workers than to know how to do their work well. A manager's title reflects what he/she is responsible for. For example: Accounting Manager supervises the Accounting function. An Operations Manager is responsible for the operations of the company. The Manager of Design Engineering supervises engineers and support staff engaged in design of a product or service. Explanation from example: There are many management functions in business and, therefore, many manager titles. Regardless of title, the manager is responsible for planning, directing, monitoring and controlling the people and their work. Top managers scan the environment, create strategies, and emphasize long-term goals; middle managers coordinate activities in large departments or divisions; team leaders and supervisors support performance of front-line workers at the team or work-unit level.

First: Board of directors (profit) members elected by stockholders to (Represent their ownership interest). Board of trustees (non-profit) members elected by local citizen Appointed by government bodies Invited by existing members Both of responsibilities are the same: oversee the performance run right or not.

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Second: Top managers are: Constitute an executive team that reports to the board Responsible for the whole organization. Set strategy; lead the organization consistent with its purpose and mission Members of a board of Pay attention to external environment directors (profit) or board of Alert to potential Long Run problems and opportunities. trustees (non-profit): supposed to make sure an organization run right. Top managers: guide the performance of the organization as a whole or of one of its major parts. Middle managers: oversee large departments or divisions First line managers: Team leaders or Supervisor: report to middle managers and supervise non-managerial workers. Best top managers are strategic thinkers who able to make good decisions under highly competitive and uncertain condition.

Third: Middle managers: in charge of divisions which contains several smaller work units. They are: Work with top managers Coordinate with peers Support lower levels to develop and pursue action plans that implement organizational strategies to accomplish key strategies.

Forth: Team leader or Supervisor: in charge to supervise non managerial workers. In Addition: Title: in a profit organization 1. Top-level managers, or top managers, are also called senior management or executives. Chief Executive Officer (CEO), Chief Financial Officer (CFO), President, Vice president, Corporate head. 2. Middle-level managers, or middle managers: General Manager (GM), Plant manager, Regional manager, and Divisional manager.

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3. First-level managers are also called first-line managers or supervisors. Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager. For example (in governor hierarchy in Indonesia) Broad of directors: President and Vice President Top Managers: DPR, MPR, MA, MK, MY, BPK Middle Managers: Gubernur, Wali Kota First-line Managers: Lurah, Camat

Functional managers work in specific areas such as finance or marketing; general managers are responsible for larger multifunctional units; administrators are managers in public or nonprofit organizations. Serving different levels of authority, managers work in different capacities within organization. Line authority Flows down the chain of command. For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, the vice president of finance the right to request a certain report from a department head. Therefore, line authority gives an individual a certain degree of power relating to the performance of an organizational task.

Types of managers:

Line managers are responsible for work activities that directly affect organizations outputs: producing goods or services
Staff managers use technical expertise to advise and support the efforts of line workers Functional managers are responsible for a single area of activity; such as: finance, marketing, production, personnel, accounting, or sales. General Managers are responsible for more complex units that include multifunctional areas Administrators work in public and nonprofit organizations

*e.g. president, retail manager department supervisors.

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Staff authority Its the right to advise or counsel those with line authority. Only for advising and dont have any right command the subordinates. For example, market forecaster advises the sales manager to improve the organization; legal advisor; and so on.

Functional authority Regard to limited line authority; only for particular functions, which specific to staff personnel with expertise in a certain area. For example: division, such as manager engineering; marketing; sales; and project managers. Emphasize on the certain variety of functions. General Managers: responsible for activities covering many functional areas. That is, commanding each function: finance, marketing, production, HRM, and so on.

Administrators: only in public and non-profit organization. For example: hospital administrators, public administrators, and city administrators.

Brief differences about type of managers:

Line Authority
Characteristics Clear; simple

Staff Authority
Staff are created to assist sales managers More efficient Manager has specialists to advise

Functional Authority
Specialist has authority

Advantages

Inexpensive Accountability

Functional managers can optimize performance in their areas

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Disadvantages

No specialists Limited growth potential

Can get expensive conflicts between line and staff

Lots of potential conflict Potential breakdown in unity of command (responsible to many bosses) Does not occur too often

Strategic Implications

Good for small firms Territories (regions) may be introduced

Manager has freedom to work with line people

The upside-down pyramid view of organizations shows operating workers at the top, serving customer needs while being supported from below by various levels of management. Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work

Accountability is the requirement of one person to answer to a higher authority for relevant performance results Corporate Governance: when a board of directors holds top management responsible for organizational performance An effective manager: helps other achieve high performance and satisfaction at work Quality of work life (QWL): An indicator of the overall quality of human experiences in the workplace

All managers help people, working individually and in teams, to perform. They do this while being personally accountable for results achieved. In traditional: flows upwards

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Financial performance

Ethical performance

Sustainability

Corporate governance is "the system by which companies are directed and controlled It involves regulatory and market mechanisms, and the roles and relationships between a companys management, and stakeholders.

Effective Managers: meet both performance and satisfaction goals. Performance relates to achieving organizational goals Satisfaction relates to QWL (quality of work life) QWL is not some notion of frivolous luxury. A better QWL for employees leads to a higher productivity for the employer. QWL surrounding: Payment (compensation) Open Communication Job Security Fun at workplace Health is wealth Alternative Work Schedules Recognition and Rewards And so on If all high, it can increase individuals sustainability and performance

For example: Company X was too strict for its own workers by force them to work until midnight. Not only the salaries are below the standard, but also the first-line managers dont want to hear any suggestion from the workers. Later on, the workers start to resist to work. Then, the board managers ask the accountability from the subordinates managers (corporate governance). Afterwards, all of the functional managers help the Human Resource managers (effective manager) to handle the workers resistance. They settled to change the regulation by increasing the tolerance, ensure their security, increase wages, and providing insurance (QWL). Hence, the workers become loyal and their works satisfied all stakeholders.

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The changing nature of managerial work emphasizes being good at "coaching" and "supporting" others, rather than simply "directing" and "order-giving."

The upside-down pyramid: view of organization shows customers at the top being served by workers who are supported by managers.

The changing mindset of managerial work: notice that the operating and frontline workers are at the top of the upside down pyramid. Upside-down pyramid the whole organization devote to serving customers Simply means customers and clients below any managers and workers. Managers not just order givers, they are there to mobilize and support workers to do their jobs. While workers are supported, they are serving the customers.

4. What is the management process? The management process consists of the four functions of planning, organizing, leading, and controlling. Planning: the process of setting performance objectives and determining what actions should be taken to achieve them. Organizing: the process of assigning tasks, allocating resources and coordinating the activities of individuals and groups. Every organization, regardless of size, has developed and implemented its own management concepts in order for it to run smoothly and accomplish the goals and objectives. Its not a stage, but the four
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Leading: the process of arousing peoples enthusiasm to work hard and inspiring their efforts to fulfill plans and accomplish objectives.
Controlling: the process of measuring work performance, comparing results to objectives and taking corrective action.

functions is a process. For example: Controlling means comparing work performance with the results desired earlier on the planning function. When Company A realizes that his plans dont suit anymore with the technology according to the labors. It is going to change its planning and organizing. Henceforth, the function is not permanent, but it is influenced by other function.

Planning sets the direction; organizing assembles the human and material resources; leading provides the enthusiasm and direction; controlling ensures results. 1. Planning

Planning direction Organizing the human and material resources Leading enthusiasm and direction

A manager must determine what the organizations goals are and how to achieve those goals. Much of this information will come directly from the vision and mission statement for the company. 2. Organizing After plans set, they must be implemented. Managers are responsible for organization of the company and this includes organizing people and resources.

Controlling ensures results

3. Leading Leading means encourage workers, keeping them motivated, inspiring and arousing enthusiasms, thus they can achieve the goals. Managing and leading are not the same activity. 4. Controlling The controlling function involves monitoring the firms performance to make sure goals are being implemented. Plans sometimes are modified and redefined to best for new circumstances.

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For example: Planning: John is the marketing manager and has a goal to increasing sales during the month. Hence, he made a plan to advertise in a particular region, placing some items on sale, and doorto-door marketing. Organizing: John determined how he will distribute resources and organize his employees according to the plan. He set different roles and ensure that he have delegated authority, assign work, and provide direction so his team can work towards higher sales numbers. Leading: John spends time connecting with his employees on an interpersonal level. Managing tasks; rather, it involves communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity. Controlling: Afterwards, John noticed that his team was only half selling of the goal; John is going to speak with each of his subordinates individually to review their performances.

Managers implement the four functions in daily work that is often intense and stressful, involving long hours and continuous performance pressures. Mintzberg managers can never be free to forget the job, and never has the pleasure of knowing, even temporarily; and that theres nothing else to do. Nevertheless, successful managers are those who can control the activities that they choose to get involved in on a day-today basis.

Managerial activities: not only mastering the four management functions and roles; but also implement them in intense and complex work setting.

Managers work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Managers work largely through interpersonal relationships Characteristics of managerial work

Managerial success requires the ability to perform well in interpersonal, informational, and decision-making roles.
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A role is an organized set of behaviors. Henry Mintzberg (1973) has identified ten sub roles common to the work of all managers. The ten roles are divided into three groups: interpersonal, informational, and decisional Managerial activities and roles: Interpersonal roles: involve interactions with persons inside and outside the work unit. Informational roles: involve giving, receiving, and analyzing of information. Decisional roles: involve using information to make decisions in order to solve problems or address opportunities

The interpersonal roles link all managerial work together. Manager fulfills interpersonal roles will be a: Description of action Figurehead: Modeling and setting forth key principles and policies Symbolic leader Providing direction, enthusiasm, motivating, selection and training of employees Coordinating with others (managers and specialist divisions, also the subordinates) Example Attending ribbon cutting ceremonies, hosting receptions. Virtually all managerial operation which involves subordinates: interview, support. Participation in meetings with the other representative of divisions internal.

Leader:

Liaison:

The informational roles ensure information is provided. Manager fulfills informational roles will be a: Description of action Monitor: Scanning and collecting information, both from inside and outside Sharing information to organizational members (from internal and external) Spokesperson: Representing the Example Attending seminars and exhibitions to collect information. Surveys Dissemination of information letters and digest, interviewing informing subordinates about agreement settled. Compiling and disseminating
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Disseminator:

organizations plan, situation and achievement to outsiders.

information in meeting in presentation.

The decisional roles make significant use of the information. Manager fulfills decisional roles will be a: Description of action Entrepreneur (initiator of change) Developing new ideas to improve organizational performance: seeking opportunities implementation of innovation Dealing with conflicts. (taking corrective action) Resource allocators: Example Find new innovation and discoveries to improve the companys performance.

Disturbance handlers:

Debating and decision making

on strategies concerning and issue to overcome conflicts. Handling budgets, allocating Estimate budget, approving (human, physical, and monetary) schedules, allocate input and resources outputs. Distribution of Making deals and forging agreement production. Conducting negotiation establish link between organization and other companies.

Negotiator (mediator)

Managerial success also requires the ability to build interpersonal networks and use them to accomplish well selected task agendas.

Agenda setting: development of action priorities for accomplishing goals and plans.

Agenda setting usually incomplete and loosely connected in the beginning more specific as the manager utilized information. This agenda represent managers mind which occurs when theres opportunity. Networking good implement of agenda setting by working with inside and outside members. Its created a good relationship with people whose help may be needed to implement agendas.
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Networking: process of creating positive relationships with people who can help advance agendas.
Social capital: capacity to get things done with the support and help of others.

Social capital is created by networking symbiosis mutualism.

For example: (inside organization) A General Manager bumped into staff member who didnt report to him. Using this opportunities the GM (1) asked question and received information he need; (2) using a sincerely words and good relationship, he motivate the staff to do what he must done; (3) the staff do what the GM needed to be done. (Outside organization) A General Manager saw an opportunity with the organizations peer to expand its performance. Once they met, the GM used opportunity to (1) ask the peers director about some information he needed; (2) then, the GM told some advantages if the peer would agree to create a bond using a good analysis and positive relationship; (3) hence, the peers agreed to join. 5. How do you learn the essential managerial skills and competencies? Careers in the new economy demand continual attention to lifelong learning from all aspects of daily experience and job opportunities. The learning in management is focus on: Developing skills Competencies to deal with The complexities of human behavior Problem solving The difference in career success in long-term may well rest with lifelong learning.

Learning: a change in behavior that results from experience.

Lifelong learning: continuously learning from daily experiences.

Skills considered essential for managers are broadly described as technicalability to use expertise; humanability to work well with other people; and conceptualability to analyze and solve complex problems.

Technical skill: This is what I can do for you

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School taught technology and talents. All jobs require some specialized expertise, and many people develop their technical skills on the job. Vocational and on the job training programs can be used to develop this type of skill. *e.g. accountants, financial planners, engineers and so on. Human Skill: This is the ability to work with, understand and motivate other people (both individually and a group). People, who are proficient in technical skill, but not with interpersonal skills, may face difficulty to manage their subordinates, *i.e. capacity to communicate, collaborate, network, and engage others: trust, enthusiasm, and positive relationship. That creates something called emotional intelligence: just how well do I relate with and work with others. Strength or weakness in EI is reflecting on how well you recognize, understand, and manage feelings when interacting with others.

Skill: the ability to translate knowledge into action that results in desired performance.

Technical skill: the ability to apply a special proficiency or expertise to perform particular tasks.
Human skill: the ability to work well in cooperation with others. Emotional intelligence: the ability to manage ourselves and our relationship effectively. Conceptual skill: the ability to think critically and analytically to solve complex problems. Cognitive intelligence: the ability to think systematically and identify cause-effect patterns in data and events.

Conceptual Skill: This is an ability to critically analyze, and overcome problems. It requires creative thinking, generating options and choosing the best available option. Breaking problems into smaller parts, see the relation between parts, and recognize the implication of any one problem to others. A diagnostic skill based on cognitive intelligence Am I developing the strong critical thinking and problem-solving capabilities I will need for long0term career success? Problems: ambiguous, unstructured, complicated and interconnection, and long-term consequences.

Human skills are equally important for all management levels; while conceptual skills gain importance at higher levels and technical skills gain importance at lower levels.

Technical skills lower levels of management Because first-line managers are closer to the production process (technical expertise is highest demand)
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Technical skill expertise A Human skill or Interpersonal skill emotional intelligence A conceptual skill cognitive intelligence

Human skills require strength EI. As it defined, managers mean people handling people. For middle management Conceptual skills top managers because the plans, policies, and decisions developed at this level. Requiring the ability to understand cause and effect and need high responsibility; due to the complexity of problems may be faced. This emphasis does not imply that technical skills are believed to be less worthy, but simply that they are more easily developed than human and conceptual skills.

Managerial competency: a skill-based capability that contributes to high performance in a management job.

For example: Lower level managers high IQ, cum laude in university, but can only work individually and cant analyze situation. Middle level managers standard IQ, easy to interact with people, can work in team, and knowing if theres a problem. Five Facets of Emotional Intelligence: 1. Self-awarenessunderstanding moods, emotions 2. Self-regulationthinking before acting, controlling disruptive impulses 3. Motivationworking hard and persevering 4. Empathyunderstanding emotions of others 5. Social skillsgaining rapport and building good relationships Top level manager standard IQ, can dealing with people, can analyze problems and overcome it vastly. Good managerial competency, which implicit in:
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Planning, organizing, leading, and controlling.

Informational, interpersonal, and decisional roles. Agenda setting and networking. Many organizations provide in-house training programs to develop the technical skills that are need to be done in operation. While to be placed at higher management, ones require EI (human skills) to interact and manage people. IQ and technical skills will get you hired, but emotional intelligence will help you excel.

CHAPTER TWO HISTORY OF MANAGEMENT THOUGHT

1. What can be learned from classical management thinking? Frederick Taylor's four principles of scientific management focused on the need to carefully select, train, and support workers for individual task performance. Science management (1991): emphasizes careful selection and training of workers and supervisory support Time study (Taylor): analyze the motions and tasks required in any job and to develop the most efficient ways to perform them. Motion study (Frank Gilbert and wife: Lilian): the science of reducing a task to its basic physical motions

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The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee Taylor (Father of Management) Historically problems: many employee inefficiency + low performance. Solution: workers are taught and helped by supervisor to give direction in right ways. Goal: improve productivity of people at work. Using time study. He linked jobs requirements to both training and support from the supervisor; aiming proper direction, work assistance; monetary incentive. According to Frederick Taylor, scientific management includes four guiding action principles: 1. Develop for every job a science: 1) rules of motion, 2) standardized work implements, and 3) proper working conditions for every job 2. Carefully select workers with the right abilities for the job. 3. Carefully train workers and provide proper incentives to corporate with the job science. 4. Support workers by carefully planning their work and removing obstacles (smoothing the way as they go as their job). Brief differences between Time Study and Motion Study Time Study Direct and continuous observation of a task, using a timekeeping device (e.g., decimal minute stopwatch, computer-assisted electronic stopwatch, and videotape camera) Recording the time taken to accomplish a task ones can do better For example: Delivery routes using GPS (stops are timed). Another example, Fashion management: catwalk individual stop: ads up to increase productivity. Motion Study The actions taken by workers at certain task with the aim of streamlining the processes involved. Jobs simplification; Works standards; and incentive wage plans Benefited both employer (increased productivity) and employee (decreased fatigue). For example: goal attainment by set the standard: Locating time goal 20 minutes (the actual time accomplishment is 23 minutes) (not only time empathize on reduction.)

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Henri Fayol suggested that managers should learn what are now known as the management functions of planning, organizing, leading, and controlling. Administrative principles (Henri Fayol):

Administrative Theory (1916): emphasized management functions and attempted to generate broad administrative principles that would serve as guidelines for the rationalization of organizational activities

1. Scalar chain there should be a clear and unbroken line of communication from the top to the bottom of the organization 2. Unity of command each person should receive orders from only one boss 3. Unity of direction one person should be in charge of all activities with the same performance objective

Foresight

Organization
to provide and mobilize resources to implement the plan

Command
to lead, select, and evaluate workers to get the best work toward the plan

Coordination
to fit diverse efforts together and ensure information is shared and problems solved

Control

to complete a plan of action for the future

to make sure things happen according to plan and to take necessary corrective action

Max Weber described bureaucracy with its clear hierarchy, formal rules, and well-defined jobs as an ideal form of organization. Historically problems: organization failed to reach their performance potential. People were in the positions of authority because of social standing or privilege status in German society without any capabilities Solution: a bureaucracy specific form of organization. (STRUCTURED)

A bureaucracy (late 19th): a rational and efficient form of organization founded on logic, order, and legitimate authority.

The defining characteristics of Webers bureaucratic organization are: Clear division of labor: Jobs are well defined and workers become skilled at performing
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 Clear hierarchy of authority: Authority and responsibility are well defined for each position Formal Rules and procedures: written guidelines direct behavior and decisions in job and written files are kept for historical report. Impersonality: rules and procedures are impartially and uniformly applied Careers based on merit: Workers are selected and promoted on ability and performance

Advantage of bureaucracy 1. Efficiency in utilizing resources 2. Fairness or equity in treatment employees and clients

Possible disadvantages of bureaucracy 1. Excessive paperwork or red tape 2. Slowness in handling problems 3. Rigidity in the face of shifting needs 4. Resistance to change 5. Employee apathy Must be: Flexible, and adaptable in changing circumstances.

2. What are the insights of the behavioral management approaches?

Hawthorne studies Elton Mayo

Organizations as communities Mary Parker Follett

Theory X and Theory Y Douglas McGregor

Theory of human needs Abraham Maslow

Human resource approaches Assumption: People are social and selfactualizing

Personality and organization Chris Argyris

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The behavioral approaches shifted management attention toward the human factor as a key element in organizational performance. Organizational behavior: the study of individuals and groups in organizations. Historically, During 1920s, an emphasis on human side of the workplace began to influence management thinking. The behavioral approaches maintain that people are social and self-actualizing.

People at work are assumed to seek satisfying social relationship, respond to group pressures, and search for personal fulfillment. Hence, after their needs are fulfilled, workers show better performance.

Mary Parker Follett describes organizations as communities within which people combine talents to work for a greater good. Groups which are diverse could combine their talents greater good managers job to integrate them. Follet believed that business problems involve wide variety of factors that must be considered in relationship to one another. As a system; contingency thinking (possibility)

Organization as community: which managers and workers should labor in harmony, without one party dominating the other and with the freedom to talk over and truly reconcile conflicts and differences. Employee ownership; Profit sharing; Gain-sharing plans: making employees an owner responsibility feelings

System: An organized set of interrelated ideas or principles.

Corporate Social Responsibility: a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders.

Follet also believed that business were service organizations and those private firms should be considered vis--vis (regarding, about on) the public good. Managerial ethics; corporate social responsibility

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Making every employee an owner creates a sense of collective responsibility Business problems involve a variety of interrelated factors

precursor of employee ownership, profit sharing, and gain-sharing

precursor of systems thinking

Private profits relative to public good

precursor of managerial ethics and social responsibility

The Hawthorne studies suggested that work behavior is influenced by social and psychological forces and that work performance may be improved by better "human relations."

Hawthorne Studies (1942): determine how economic incentives and the physical conditions of the workplace affected the output of workers.

Historically: Western Electric Company pay research program to study about individual productivity. Initial Hawthorne: using scientific management to determine how economic incentive and physical conditions affect the outputs production. Illumination experiment Better lighting: better performance Conclusion of research: psychological factors Afterwards: Hawthorne pay more attention toward better understanding on human interaction in workplace

The Hawthorne effect: tendency of persons singled out for special attention to perform as expected.
The human relations movement: suggested that managers using good human relations will achieve productivity.

Employee attitudes, interpersonal relations and group processes: Some things satisfied some workers but not others People restricted output to adhere to group norms
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HAWTHORNE STUDIES SUPPORTED BY ELTON MAYO: SOCIAL SETTING AND HUMAN RELATION Examine the effect of workers fatigue on output. Historically: confounded study of illumination. Six workers assembled in a small electrical relay in a small isolated room. Theres given various work days, work week and rest pauses. However, productivity keeps increasing regardless of changes made. Conclusion new social setting which factors are: 1. Group atmosphere The workers shared pleasant relationship Good job 2. More participative supervision Test-room was made workers feel important. They were given information and asked for opinions. EMPLOYEE ATTITUDE AND GROUP PROCESSES

Good Human Relation in the test room Better productivity

Mayo (1932) people would restrict their output in order to avoid displeasure of the group , even if it meant sacrificing pay that could otherwise be earned by increasing output. Group can have negative and positive influences on individual productivity. LESSONS OF THE HAWTHORNE STUDIES Bringing visibility to the notion that peoples feelings and relationships with coworkers affected their work and those groups were important influences on individual. Hawthorne effect. In 1950s and 1960s, human relation movement was largely implemented in managerial.

Abraham Maslow's hierarchy of human needs introduced the concept of self-actualization and the potential for people to experience self-fulfillment in their work.

A need: a physiological or psychological deficiency a person feels compelled to satisfy Deficit principle: a satisfied need is not a motivator of behavior Progression principle: a need becomes a motivator once the preceding lower-level need is satisfied.

Suggesting that needs create tensions that can influence a persons work attitudes and behaviors.

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Maslows theory is based on two underlying principle: 1. Deficit Principle: People act to satisfy deprived needs (certain needs), those for which satisfaction deficit exist. 2. Progression Principle: Fulfilling in sequence (order from bottom to up). The five needs he identified exist in a hierarchy, which means that a need at any level only comes into play after a lower-level need has been satisfied. Step by step from the lowest to the highest. The five needs hierarchy and example:

At the level of self-actualization needs, the deficit and progression principles cease to operate. More need is satisfied, operation improving. Managers with human relations thinking can help people satisfy their important needs will achieve productivity.
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Douglas McGregor urged managers to shift away from Theory X and toward Theory Y thinking, which views people as independent, responsible, and capable of self-direction in their work. Hawthorne studies + Maslow = McGregor Theory X and Theory Y

Theory X assumes that workers: Dislike work Lack ambition Are irresponsible Resist change Prefer to be led

Managers who hold either assumption can create selffulfilling prophecy (where others act in ways that confirm the original expectation) For example: Theory X managers: act very directive (command and control). Thus create situations where workers become passive, dependent and reluctant. They do what they are told to do. Theory Y managers: act in participative way. Thus create situations where workers respond with initiative and high performance; satisfy self-esteem and selfactualization. They are allowed in more job involvement, freedom, and responsibility.

Theory Y assumes that workers: Willing to work Capable of self-control Willing to accept responsibility Imaginative and creative Capable of self-direction

A self-fulfilling prophecy: occurs when a person acts in ways that confirm another expectation

Chris Argyris pointed out that people in the workplace are adults and may react negatively when constrained by strict management practices and rigid organizational structures. Adult Personality:

1) Managers who treat people positively and as responsible adults will achieve productivity. 2) Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality

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He concludes that practices which influence by classical management are inconsistent with the mature adult personality: Classical approaches Scientific Bureaucracy How it works People work more efficiently to become better defined Working in clear hierarchy of authority; higher levels direct and control lower ones. Unity direction efficiency will increase when works are planned and directed by supervisor. Results Limits opportunities for selfactualization Dependent, passive workers who feel they have only little control. Psychological failure. Conversely psychological success occurs when ones define their own.

Administrative (POLC)

Hence, Management should accommodate the mature adult personality - Increasing task responsibility - Increasing task variety - Using participate decision making (allow more participation) - Promote better human relation 3. What are the foundations of modern management thinking? Quality control

Inventory management

Queuing theory

Supply chain management

Linear programming

Value chain analysis

The scientific applications of mathematical techniques to management problems

Network models

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Analytics that use advanced quantitative analysis techniques in decision sciences and operations management can help managers solve complex problems.

Analytics: systematic use and analysis of data to solve problems and make informed decision.

Background: Vast computing power; easy to collect; storage of data make better management decision analytics. Due to the respect of analysis, managers can conduct quantitative application (using numbers) It can apply in examining organization manufacturing most efficiently and effectively.Such as: value chain analysis, quantity control, supply chain management.

Quantitative application, known as:

1) Management science and operations research use quantity analysis and applied mathematics to solve problems. 2) Operations management: the study of how organizations produce goods and services.

It also can be applied in problem solving. Such as: problem encountered systematically analyzed appropriate mathematical models computations are applied optimum solution For example: Google using math formula to aid in talent planning: pool information; surveys; promotions; pay histories to check whether workers is underutilized or not. Another example: Problems: grocery store is being complained as the queue is too long for cashier waiting. Solution: quantitative approach queuing theory: help to allocate service personnel based on alternative workload demands; thus can minimize both customers times and cost of workers.

Organizations are open systems that interact with their external environments, while consisting of many internal subsystems that must work together in a coordinated way to support the organization's overall success. Organization described as cooperative systems that achieve great things by integrating the contribution of many individuals to achieve common purpose.

System: collection of interrelated parts that function together to achieve a common purpose Subsystem: a smaller component of a larger system Open systems: organizations that interact with their environments in the continual process of transforming resource inputs into outputs

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However in reality, the contribution is often imperfect and can be improved upon. Thus, it needs to understand the complexity of organization as system. High performance only occur when every subsystem works well in corporation with others

Contingency thinking avoids "one best way" arguments, instead recognizing the need to understand situational differences and respond appropriately to them. Modern management is situational in orientation attempts to identify practices that are best fits with demands of unique situations. Need contingency thinking

Contingency thinking: tries to match managerial responses with problems and opportunities unique to different situations

Theres no one best way to manage, but the contingency perspective tries to understand all the situational differences and respond them in appropriate ways depends on their unique characteristic.

Quality management focuses on making a total commitment to product and service quality throughout an organization, maintaining continuous improvement and meeting worldwide quality standards such as ISO certification.

Historically: Edward Deming (1951) invited to Japan to explain what quality control technique developed in US. Results: lifelong relationship epitomize in Deming Application Price (up to now, its still exist to reward companies which achieve extraordinary excellence in quality.

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Total quality management (TQM): an organization-wide commitment to continuous improvement, product quality, and customer needs for a total organization Continuous improvement: involves always searching for new ways to improve quality and performance. ISO certification: indicates conformance with a rigorous set of international quality standards ISO 31000 Risk management ISO 9000 Quality management

Demings approaches: emphasize constant innovation; using statistical method; commitment to train base of quality assurance (guarantee) emergence total quality management (TQM) Joseph Gurans 3 guiding principles: Plan; Control; Improve. Continuous improvement Indicator of importance of quality objective has given by ISO certification (International Standards Organization) in Geneva, Switzerland. To get ISO, they must refine and upgrade quality in all operation if they want to compete as world class companies undergo an assessment by outside auditors to determine they meet ISO requirement or not. Example of ISO:

ISO 26000 Social responsibility ISO 14000 Environmental management ISO 50001 Energy management

Knowledge management is a process for developing, organizing, sharing, and using knowledge to facilitate organizational performance and create an environment for ongoing organizational learning. Peter Drucker issues knowledge constantly makes itself obsolete (worn; ancient)

Knowledge management: the process of using intellectual capital for competitive advantage Learning organizations: organizations that continually changes and improves using the lesson of experience

His message suggests that neither people nor organization can rest on past laurels (glories); success in future only earned by those who continually build and use knowledge to extend possible. Knowledge management. Knowledge achieves to perform success. Knowledge management can be spotted by job title. Emphasize on knowledge management learning organization.

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It can be learned from many resources: experiences, from members and employees, peers, and other individuals. Sharing is expected. The criteria:

Mental models:
set aside from old ways thinking

Personal mastery:
self-aware and open to others

Systems thinking:
learns how the hole organization works

Shared vision:
undestand and agree to plan of action

Team learning:
works together to accomplish the plan

For example: 1) Knowledge management: Chief Technology Officer or CTO: responsible for technology of the company. Therefore, the managers should focus on this position is typically overseeing the development of technology to be commercialized. Hence, development of technology need accumulated knowledge and understanding of all evolution and the works of technology. 2) Learning organization: the CTO shared and taught all of his subordinates and other Chief to understand about the technologies; how it works and how it related to the planning of organization.

Evidence-based management uses findings from rigorous scientific research to identify management practices for high performance. Historically, flaw foundation of management is being criticized by scholars rigor; the results is based on weak evidence. no limited to distant past improvement.

Evidence-Based Management: making management decisions on hard facts about what really works

Jeffry Pfeffer + Robert Sutton makes EBMgt based on what really work (hard facts) rather than on thing that sound good but flawing (dangerous half-truth)
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EBMgt pursuing solid research using scientific method then reporting case studies based on practitioner experinces. For example: Pfeffer studied the link between HRM and organizations performance. Using sample of 1000 firms, the positive HRM, included security, selective hiring, high wages based on merit, skill development, no discrimination, and sharing information high performance

ANSWER MULTIPLE CHOICE QUESTIONS CHAPTER ONE

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. The process of management involves the functions of planning, (d) organizing, leading, and controlling. An effective manager achieves both high-performance results and high levels of (c) satisfaction among people doing the required work. Performance efficiency is a measure of the (a) resource costs associated with task accomplishment. The requirement that a manager answer to a higher-level boss for results achieved by a work team is called (b) accountability. Productivity is a measure of the quantity and (a) quality of work produced, with resource utilization taken into account. (a) Top managers pay special attention to the external environment, looking for problems and opportunities and finding ways to deal with them. The accounting manager for a local newspaper would be considered a (c) staff manager, whereas the plant manager in a manufacturing firm would be considered a line manager. When a team leader clarifies desired work targets and deadlines for a work team, he or she is fulfilling the management function of (a) planning. The process of building and maintaining good working relationships with others who may help implement a manager's work agendas is called (b) networking. In Katz's framework, top managers tend to rely more on their (b) conceptual skills than do first-line managers. The research of Mintzberg and others concludes that managers (c) always live with the pressures of performance responsibility When someone with a negative attitude toward minorities makes a decision to deny advancement opportunities to a Hispanic worker, this is an example of (a) discrimination Among the trends in the new workplace, one can expect to find (b) more valuing people as human assets The manager's role in the "upside-down pyramid" view of organizations is best described as providing (c) support so that operating workers can directly serve customers. The management function of (c) controlling is being performed when a retail manager measures daily sales in the women's apparel department and compares them with daily sales targets.

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CHAPTER TWO
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. The assumption that people are complex with widely varying needs is most associated with the (c) behavioral management approaches. The father of scientific management is (b) Taylor Deals with students by an identification number rather than a name, which characteristic of bureaucracy is being displayed and what is its intended benefit? (d) impersonality ... fairness If an organization was performing poorly and Henri Fayol was called in as a consultant, what would he most likely suggest to improve things? (a) teach managers to better plan and control One example of how scientific management principles are applied in organizations today would be: (a) a results-based compensation system. The Hawthorne studies are important because they raised awareness of the important influences of (b) human factors on productivity. Advice to study a job, carefully train workers to do that job, and link financial incentives to job performance would most likely come from (a) scientific management The highest level in Maslow's hierarchy includes (c) self-actualization needs. Conflict between the mature adult personality and a rigid organization was a major concern of (a) Argyris When people perform in a situation as they are expected to, this is sometimes called the (a) Hawthorne effect. Resource acquisition and customer satisfaction are important when an organization is viewed as an (c) open system When your local bank or credit union is viewed as an open system, the loan-processing department would be considered a (a) subsystem When a manager notices that Sheryl has strong social needs and assigns her a job in customer relations, while also being sure to give Kwabena lots of praise because of his strong ego needs, the manager is displayin (d) contingency thinking In a learning organization, as described by Peter Senge, one would expect to find (c) employees who are willing to set aside old thinking and embrace new ways When managers try to avoid hearsay and make decisions based on solid facts and information, this is known as (b) evidence-based management

14. 15.

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