BCOR 370 1st Edition Exam 1 Study Guide Managing Teams and Individuals Organization A systematic arrangement of people to accomplish some specific purpose o Why do we have organizations Accomplish specific objectives Serve society Provide careers o How do organizations accomplish their objectives Plan Divide tasks specialize Motivate Direct Control Management p 17 in text The process of achieving goals effectively and efficiently through and with other people o Planning o Organizing o Leading o Controlling Key selling points You need to understand management to help your organization succeed You need to be an effective manager for long term success in an organization You need to understand management to be effective in achieving goals in your own personal life Historical Foundations of Management First managers were just overseers didn t really know what else to do Henry Ford Brought about the assembly line Standardized parts Was very savvy Model T took 12 hours to make next model took 90 minutes to make He was very efficient Combined division of labor interchangeable parts and the assembly line Demonstrated the earliest approach to management Scientific management The use of the scientific method to determine the one best way to perform a job or task Frederick Taylor The Father of Scientific Management o Time studies o Differential rate systems o Measure employees in a quantifiable way Frank and Lillian Gilbreth Motion Studies Bricklaying example They had a dozed children o Cheaper by the Dozen Henry Gant P 41 in text Legacy of Scientific Management Fast efficient assembly lines Techniques used from fast food to surgery Job design selection training 1920s and 1930s Management is dominated by efficiency experts concentrating on efficiency and productivity above all else Emphasis of productivity and profitability resulted in unhappy workers labor unions and strikes Modern Times Released by 1936 Scientific management principles concepts and theories Shortcomings exposed through the film Scientific Management Bureaucracy and organization design marked by specialization division of labor authority hierarchies and formal rules and procedures Max Weber German Sociologist who observed that the bureaucracy was the dominant organization type because it was the most efficient Human resource approach Focus on human behavior Mary Parker Follet o Wrote about understanding behavior organization Elton Mayo The Hawthorne studies o Best level of light The Hawthorne Effect Money is less of a factor in determining output than group standards sentiment and security Realized the importance of individual needs goals and expectations Began to apply techniques from psychological and sociological to understanding individuals in the work place Decision Making A process of identifying and selecting a course of action to solve a problem What is a problem A situation that occurs when a state of affairs differs from the ideal state of affairs o When things are not what you want them to be In the problem solving process problems must be accurately identified and defined Creativity Ability to produce novel and useful ideas Key issue in problem solving and decision making Innate creativity is often stifled by society schools institutions and organizations Self imposed constraint Rational Decision Making Model pp 172 173 Define problem investigate situation and determine cause Identify decision criteria Weight the criteria Generate alternatives Rate the alternatives on each criterion Choose implement and evaluate the best alternative Decision Making in Reality Bounded rationality Satisfying Intuition Escalation of commitment Group decision making Moon survival exercise Advantages Broader perspective More alternatives Clarification of ambiguities More satisfaction and support Disadvantages Time consuming Compromise may satisfy no one Groupthink p 182 in text Overkill for simple decisions No clear decision responsibility Planning and Goal Setting Goals The end toward which efforts is directed A desire future state or condition Plan A blueprint specifying the actions necessary for ataining goals Planning The act of determining goals and the means for achieving them Goals and Planning Specific and challenging goals produce beter results than vague easy goals Long term goals broad statements of what you want to be and do Short term goals what you need to do now in order to progress toward your long term goals Strategic Management Mission Statement If you don t have a destination you ll never get there Harvey Mackay A broad statement which defines the basic purpose of the person s or organizations existence Strategy A broad plan of action for pursuing objectives and satisfying a mission Strategic management The process of formulation and implementing the most appropriate strategies SWOT Analysis S Strengths W Weakness O Opportunities T Threats Levels of Strategy Corporate level Strategies Business level strategies Functional level strategies Corporate level strategies What business are we in The BCG matrix o Question Marks o Star o Cash Cow o Dog Proctor and Gamble o Annual net sales 40 billion o Diverse range of products o Tide Cash Cow o Biz Cinch and Oxydol dogs Business level strategies How do we compete Cost leadership o Walmart o Generic Brands o Old Navy Differentiation o Coke vs Pepsi o Valvoline o Jif o Target Focus o Runner s World Magazine o Volvo o FAOSchwarz Competitive Strategies Examples o Purity Milk Differentiation Yellow container blocked UV rays You re worth the difference o Kroger Sold milk at a loss o GAP Banana Republic Old Navy Focus Differentiation and Cost leadership Functional level strategies How do we support the business level strategies Majestic Management MM Majestic Management IOS Identification of Strengths BOS Buyer of Strengths HW Hard Work SMART Goals P 204 in text Five forces that shape competition P 234 in text Stages of Moral Development Kohlberg P 146 Stretch Goal P 214 Core Capabilities competency P 240 Ethics Why study ethics Two reasons to be concerned about ethics Prudence It s the smart thing to do self interest Virtue It s the right thing to do Ethics Moral principles of duty and virtue that prescribe how we should behave Three classic views of ethical decision making Utilitarian Approach Rights Approach Justice Approach Six Pillars of Character Trustworthiness Respect Responsibility Fairness Caring Citizenship Ethical decision making Take into account interests and well