MGMT 309 Exam 1 Study Guide Chapter 1 Managing and the Manager s Job Resources Human Talent and labor Financial capital investments Physical raw materials offices equipment and production facilities Information data and information useful to the business Efficiency vs Effectiveness Efficiency is cost effective production Effectiveness is making smart decisions about production Example a computer sized calculator can be produced efficiently but it is not effective because nobody will want a calculator that big Management Process Planning Decision Making goals and how to reach them Organization managing activities and resources effectively Leading People oriented Controlling watching and fixing activities to achieve set goals Levels of Management Top Managers Small group of executive who create goals strategy and policies Middle Managers Must enforce decisions of top managers while overseeing first line managers First Line Managers Directly overseeing workers This requires more technical knowledge to ensure workers are doing job correctly Areas of Management Marketing Works to entice customers to buy products Involved in developing and selling new products Financial Managers Manages financial resources including accounting bills investments Operations Managers Creates and oversees systems and develops products This includes everything from quality control to facility layout Human Resource Managing hiring firing and other HR dept activities Administrative General Managers who don t have a particular specialty Other Any other type of manager not listed above This is often industry specific Managerial Roles Interpersonal figurehead dealings with other people Informational Watches process and gives out business information Decisional Makes decisions to benefit business Managerial Skills Technical deals with specifics for production Ex Fluent in computer languages for a programming company Interpersonal Communicates understands and ability to motivate workers Conceptual Ability to think outside the box Diagnostic Visualizes solutions Communication Can receive and disseminate information Decision Making Intelligently makes good decisions for group Time Management prioritize and effectively use limited time Organizations For profit any size business spanning any location Not for profit No owner is making profits Any business where profits are being invested back into business Employees can be paid by business Chapter 2 Traditional and Contemporary Issues and Challenges Scientific Management Deals with individual performance Administrative Management Deals with organizational performance Behavioral Management Focused on individual attitudes processes and group processes Hawthorne Studies Demonstrated with incentive plan that workers will create within their own groups acceptable levels of production Human group behavior is prevalent in workplace Looks into personal issues such as motivation stress satisfaction conflict Quantitative Management Uses numerical data such as economic effectiveness models and computers to maximize production Perspectives Systems related parts working together Open systems works with external environment Closed system doesn t work with external environment Subsystems interdependence of smaller systems within the group Synergy subsystems work best together than separate Entropy group s system fails due to failure to adapt to changing external forces Contemporary Issues and Challenges Changing economy that hinders growth Managing diversity in workplace Employee s privacy Advancing technology in telecommuting How internet affects business Working and competing in diverse global economy Corporate ethics and social responsibilities Competition is based on quality increased productivity and lower costs Movement towards service economy Chapter 3 The Environment and Culture of Organizations Business Environment External Environment General environment everything outside the organization s direct control economy politics legal etc Forces around the group that affect its overall context Economic dimension overall condition of the economy that pertains to the organization Technological dimension concerned with the end production or services Sociocultural dimension culture and diversity of the external environment that influences the organization Political legal dimension relationship between business and government International dimension The effect of international businesses on the organization Task environment specific external groups that affect the organization Internal Environment Conditions and other forces that are affecting the group internally Culture Made up of the founder s values As well as the symbols stories slogans and ceremonies that contributes to the organization s unique spirit Strengthened by rewarding those who contribute to the culture A culture can be changed by bringing in new leadership or changing the symbols slogans ceremonies etc Organizations and their Environment Competitive Forces Porter s Five Competitive Forces How easily can new companies enter the market Rivalry between competitors Can substitute products or replace existing products How much buyers can influence the market How much suppliers can influence the market Information Management within Organizations Boundary spanner employee who gains information through external contacts Environment scanning monitoring the environment through reading published articles and looking at external activities Information systems condenses information to better help the manager Strategic Response Changing a current strategy or keeping the current one Mergers Acquisitions Alliances Combining merger purchasing acquisition or forming a partnership with other businesses Organizational Design and Flexibility Mechanistic comprised of formal and rigid policies procedures Organic more flexible and based more on managerial discretion This allows a faster change to environmental influences Direct Influence on the Environment Changing competitive conditions to benefit the organization Changing relationships in the supply chain to benefit the organization Models of Organizational Effectiveness System Resources approach can the organization acquire resources Internal processes approach focus on production efficiency Goal approach focused on end products Strategic constituencies approach focused on customer response Chapter 4 The Ethical and Social Environment Ethics A person s beliefs about what is good or bad