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Study Guide for MGT 340 Final Exam, Fall 2011 Managerial functions and managerial roles Management

functions 1. Planning- defining goals, establishing strategies for achieving those goals, and developing plans to integrate & coordinate activities 2. Organizing- determine what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, & where decisions are to be made 3. Leading- motivate subordinates, help resolve work group conflicts, influence individuals/teams as they work, select the most effective communication channel, or deal in any way with employee behavior issues 4. Controlling- process of monitoring, comparing, & correcting Managerial roles 1. Interpersonal- figurehead, leader, liason 2. Informational- monitor, disseminator, spokesperson 3. Decisional- entrepreneur, disturbance handler, resource allocator, negotiator Management skills 1. Technical: the job-specific knowledge & techniques needed to proficiently perform work tasks, more so for first line managers 2. Human: the ability to work well with other people both individually & in groups, know how to communicate, motivate, lead, & inspire enthusiasm and trust 3. Conceptual: the skills managers use to think & to conceptualize about abstract & complex situations Scientific management: The use of scientific methods to define the one best way for a job to be done Administrative management: focused more on describing what managers do & what constitutes good management practice Behavioral approaches to management Organizational behavior (OB): the field of study that researches the actions (behavior) of people at work o Motivating, leading, building trust, working with a team, managing conflict

Hawthorne Studies: 1924, concluded that peoples behavior & attitudes are closely related, that group facts significantly affect individual behavior, group standards establish individual worker output, & that money is less a factor in determining

Contingency and systems approaches Contingency approach: if, then, AKA situational approach, says that organizations are different, face different situations(contingencies), and require different ways of managing Systems Theory: as managers coordinate work activities in the various parts of the organization, they ensure that all these parts are working together so that the organizations goals can be achieved, implies that decisions & actions in one organizational area will affect other areas, recognizes that organizations are not self-contained o Closed systems: are not influenced by & dont interact with their environment o Open systems: are influenced by & do interact with their environment Organizational culture including its meanings, its origins, its components, and its impact on individual and organizational outcomes Organizational culture defined: the shared values, principles, traditions, & ways of doing things that influence the way organizational members act Culture is a perception, its descriptive, & theres a shared aspect of culture Strong: the key values are deeply help & widely shared, the stronger the organization the more it affects the way managers plan, organize, lead, & control Weak: values limited to few people (top management), culture sends contradictory messages, employees have little knowledge of company history/heroes, have little identification with culture, little connection between shared values & behaviors Stories, rituals, symbols, language, and heroes Stories: contain a narrative of significant events/people, including things like the organizations founders, rule breaking, & reactions to past mistakes, they provide examples that people can learn from Rituals: repetitive sequences of activities that express & reinforce the important values & goals of the organization, acts as a motivator by publicly acknowledging outstanding sales performance , conveys that reaching their sales goals is important & through hard work & encouragement they too can achieve success Strong and weak cultures

Symbols: the layout of an organizations facilities, how employees dress, the types of automobiles provided to top executives, & the availability of corporate aircraft, size of offices, the elegance of furnishings, executive perks, employee fitness centers or on-site dining facilities, & reserved parking spaces for certain employees, convey to employees who is important & the kinds of behavior that are expected & appropriate

Language: a way to identify & unite members of a culture, members attest to their acceptance of the culture & their willingness to help preserve it, bonds members

Impact of culture on managers Planning: The degree of risk that plans should contain, whether plans should be developed by individuals/teams, the degree of environmental scanning in which management will engage Organizing: how much autonomy should be designed into employees jobs, whether tasks should be done by individuals/ in teams Leading: The degree to which managers are concerned with increasing employee job satisfaction, what leadership styles are appropriate, whether all disagreements-even constructive ones-should be eliminated Controlling: Whether to impose external controls/to allow employees to control their own actions, what criteria should be emphasized in employee performance evaluations, what repercussions will occur from exceeding ones budget Different types of cultures Ethical: Be a visible role model, communicate ethical expectations, provide ethics training, visibly reward ethical acts & punish unethical ones, provide protective mechanisms so employees can discuss ethical dilemmas & report unethical behavior without fear Innovative: Challenge & involvement, freedom, trust & openness, idea time, playfulness/humor, conflict resolution, debates, risk-taking Customer-responsive: o Type of employee: hire people with personalities & attitudes consistent with customer service o Type of job environment: design jobs so employees have as much control as possible to satisfy customers, without rigid rules & procedures o Empowerment: give service-contact employees the discretion to make day-to-day decisions on job-related activities o Role clarity: reduce uncertainty about what service-contact employees can & cannot do by continual training on product knowledge, listening, & other behavioral skills

o Consistent desire to satisfy & delight customers: clarify organizations commitment to doing whatever it takes, even if its outside an employees normal job requirements Spirituality & organizational: where organizational values promote a sense of purpose through meaningful work taking place in the context of community, recognize that people have a mind & a spirit, seek to find meaning & purpose in their work, & desire to connect with other human beings & be part of a community o 5 Cultural Characteristics: 1. Strong sense of purpose: profits may be important, but theyre not the primary values of the organization 2. Focus on individual development: seek to create cultures in which employees can continually grow & learn 3. Trust & Openness: mutual trust, honesty, & openness 4. Employee empowerment: managers trust employees to make thoughtful & conscientious decisions 5. Toleration of employee expression: they allow people to be themselves & to express their moods & feelings without guilt or fear of reprimand Knowledge of the value of diversity within the organization and awareness of the unique contributions of all individuals Definitions of diversity: a workforce thats heterogeneous in terms of gender, race, ethnicity, age, & other characteristics that reflect differences Workforce demographics: gender, age, level of education, geographic location, income, & family composition, can constrain how managers plan, organize, lead, & control Business case for diversity: Managers must show that they value diversity through their decisions & actions, managers can look for ways to reinforce employee behaviors that exemplify inclusiveness Diversity contributes to more creative solutions & enhances employee morale Prejudice: Discrimination: Stereotypes: when we judge someone on the basis of our perception of a group to which he or she belongs were using a shortcut Ethnocentrism and pluralism Ethnocentrism: Prejudice, discrimination, and stereotypes

Pluralism:

Sexual harassment: any unwanted action/activity of a sexual nature that explicitly/implicitly affects an individuals employment, performance, or work environment, unwelcome sexual advances, requests for sexual favors, & other verbal/physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly/implicitly affects an individuals employment, unreasonably interferes with an individuals work performance, or creates an intimidating, hostile, or offensive work environment Glass ceiling issues: barrier that separates women & minorities from top management positions Diversity training and multicultural teams: The behavioral implications and complexities involved in international business especially as it regards perception, motivation, group dynamics, leadership, and organizational cultures Ethnocentric, parochial, polycentric, and geocentric attitudes Ethnocentric: the parochialistic belief that the best work approaches & practices are those of the home country (the country in which the companys main offices are located) Parochial: viewing the world solely through ones own eyes & perspectives Polycentric: the view that employees in the host country (the foreign country in which the organization is doing business) know the best work approaches & practices for running their business Geocentric: world-oriented view that focuses on using the best approaches & people from around the globe Regional trading alliances: European Union (EU): 27 democratic European countries, accounts for about 31% of the worlds total economic output North American Free Trade Agreement (NAFTA): Mexico, United States, & Canada Other Latin American nations: o Central America Free Trade Agreement (CAFTA): United States & Costa Rica, El Salvador, Guatemala, Honduras, & Nicaragua o Free Trade Area of the Americas (FTAA): 34 countries in the Western Hemisphere Association of Southeast Asian Nations (ASEAN): 10 southeast asian nations African Union (AU) South Asian Association for Regional Cooperation (SAARC): 8 member states, India, Pakistan, Sri Lanka, Bangladesh, Bhutan, Nepal, the Maldives, & Afghanistan Multinational, multidomestic, transnational, and global companies

Multinational: any type of international company that maintains operations in multiple countries Multidomestic: decentralizes management & other decisions to the local country, reflects the polycentric attitude, local employees are typically hired to manage the business & marketing strategies are tailored to that countrys unique characteristics

Transnational: or borderless, uses an arrangement that eliminates artificial geographic barriers Global: purchasing materials/labor from around the world based on lowest cost, the goal is to take advantage of lower costs in order to be more competitive

Exporting, importing, licensing, and franchising Exporting: making products domestically & selling them abroad Importing: acquiring products made abroad & selling them domestically Licensing: primarily used by manufacturing organizations that make/sell another companys products, & franchising is primarily used by service organizations that want to use another companys name & operating methods Franchising: an agreement in which an organization gives another organization the right to use its name & operating methods Foreign subsidiaries, strategic alliances, and joint ventures Foreign subsidiaries: to directly invest in a foreign country by setting up this as a separate & independent facility/office, can be managed as a multidomestic organization (local control) or as a global organization (centralized control) Strategic alliances: a partnership between an organization & a foreign company partner/partners in which both share resources & knowledge in developing new products/building production facilities Joint ventures: specific type of strategic alliance in which the partners form a separate, independent organization for some business purpose Frameworks for assessing cultures (i.e., Hofstedes) Hofstedes: pg. 82 Exhibit 4-5 GLOBE: 9 dimensions 1. Power distance 2. Uncertainty avoidance 3. Assertiveness 4. Human orientation 5. Future orientation 6. Institutional collectivism

7. Gender differentiation 8. In-group collectivism 9. Performance orientation Employee rights and responsibilities in the workplace including privacy rights, health and safety, ethical treatments, job rights, etc....Awareness of the obligation to and importance of treating all organizational members and stakeholders with respect and dignity Anti-discrimination laws: Sexual harassment: any unwanted action/activity of a sexual nature that explicitly/implicitly affects an individuals employment, performance, or work environment Workplace privacy issues Equity: developed J. Stacey Adams, proposes that employees compare what they get from a job (outcomes) in relation to what they put into it (inputs) & then compare their inputs:outcomes ratio w/ the inputs:outcomes ratios of relevant others Procedural justice and distributive justice: Procedural justice: the perceived fairness of the process used to determine the distribution of rewards Distributive justice: the perceived fairness of the amount & allocation of rewards among individual

Knowledge of business ethics and value-based management. Understanding different views towards and levels of social responsibility and the relationship between social responsibility and organization outcomes Models/views of managerial ethics (utilitarian, moral rights, legal views, etc.) Utilitarian: suggests that decisions should be based on their outcomes or consequences Theory of justice (legal view of ethics): based on the imposition Socioeconomic view: to do the right thing

Classical and socially responsive views of social responsibility Classical view of social responsibility: managements sole responsibility is to maximize profits Socially responsive view: means that a company engages in social actions in response to some popular social need Factors impacting ethics Stage of moral development o Preconventional: based on personal consequences from outside sources

o Conventional: ethical decisions rely on maintaining expected standards & living up to the expectations of others o Principled: individuals define moral values apart from the authority of the groups to which they belong or society in general Individual characteristics o Ego strength: measures the strength of a persons convictions o Locus of control: degree to which people believe they control their own fate Structural Variables: goals, performance appraisal systems, & reward allocation procedures Organizations culture: one thats high in risk tolerance, control, & conflict tolerance Issue intensity: greatness of harm, consensus of wrong, probability of harm, immediacy of consequences, proximity to victim(s), & concentration of effect Ethical dilemmas Concepts of organizational missions and objectives, and planning Types of goals and plans (strategic/operational, short-term/long-term) Strategic plans: plans that apply to an entire organization & establish the organizations overall goals Operational plans: plans that encompass a particular operational area of the organization Short-term: 1 year or less Long-term: 3 years & above Stated: official statements of what an organization says & what it wants its stakeholders to believe its goals are Real: goals an organization actually pursues Traditional goal setting: goals set by top managers flow down through the organization & become subgoals for each organizational area MBO: management by objectives, a process of setting mutually agreed upon goals & using those goals to evaluate employee performance Contingency plans: Benchmarking: the search for best practices among competitors or noncompetitors that lead to their superior performance Traditional goal setting and MBO

Stated versus real goals

Stretch goals: Decision making process, decision making styles, and threats to rational decision making Decision-making process: 1. Identification of a problem 2. Identification of decision criteria 3. Allocation of weights to criteria 4. Development of alternatives 5. Analysis of alternatives 6. Selection of an alternative 7. Implementation of the alternative Rational decision making: making logical & consistent choices to maximize value Bounded rationality and intuition Bounded rationality: managers make decisions rationally but are limited (bounded) by their ability to process information Intuition: making decisions on the basis of experience, feelings, & accumulated judgment Structured problems: straightforward, familiar, & easy to define Programmed decisions: repetitive that can be handled using a routine approach Rules: explicit statement that tells a manager what can/cannot be done, simple to follow & ensure consistency Procedures: series of sequential steps a manager uses to respond to a structured problem Certainty: where a manager can make accurate decisions because the outcome of every alternative is known Risk: conditions in which the decision maker is able to estimate the likelihood of certain outcomes, managers have historical data from past personal experiences/secondary info that lets them assign probabilities to different alternatives Uncertainty: what faced with a decisions that youre not certain about the outcomes & cant make reasonable probability estimates Decision-making styles Decision making under certainty, risk, and uncertainty Structured problems, programmed decisions, rules, and procedures

Linear thinking: a persons preference for using external data & facts & processing this info through rational, logical thinking to guide decisions & actions Nonlinear thinking: a preference for internal sources of info (feelings & intuition) & processing this info with internal insights, feelings, & hunches to guide decisions & actions

Judgmental heuristics and decision-making errors Heuristics: rules of thumb, to simplify their decision making Decision-making errors o Overconfidence o Immediate gratification o Anchoring effect o Selective perception o Confirmation o Framing o Availability o Representation o Randomness o Sunk costs o Self-serving o Hindsight Concepts of organizational structures and the impact of different types of designs and structures on organizational outcomes Organizational structure and design Structure: formal arrangement of jobs within an organization Design: process that involves decisions about 6 key elements: work specialization, departmentalization, chain of command, span of control, centralization, decentralization, & formalization Work specialization: dividing work activities into separate job tasks Concepts of administrative management (span of control, unity of command, etc..) Chain of command: line of authority extending from upper organization levels to lower levels, which clarifies who reports to whom, who do I report to?, who do I go to if I have a problem? Span of control: how many employees a manager can efficiently & effectively manage

Unity of command: states a person should report to only one manager Centralization: degree to which decision making takes place at upper levels of the organization Decentralization: degree to which lower-level employees provide input or actually make decisions Mechanistic: rigid & tightly controlled structure characterized by high specialization, rigid departmentalization, narrow spans of control, high formalization, a limited information network, & little participation in decision making by lower-level employees

Centralization and decentralization

Mechanistic and organic organizations

Organic: structure thats highly adaptive & flexible

Organizational chart: visual representation of an organizations structure Functional structures: organizational design that groups similar or related occupational specialties together Divisional structures: organization structure made up of separate business units or divisions Matrix, project, boundaryless, and virtual structures Matrix: specialists from different functional departments work on projects that are led by a project manager, creates a dual chain of command Project: employees continually work on projects, no formal departments where employees return at the completion of a project Boundaryless: organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure Virtual: consists of a small core of full-time employees & outside specialists temporarily hired as needed to work on projects Performance measurement, individual performance evaluation, and performance feedback Defining performance dimensions and standards Performance standards: used in the management system that evaluate employee performance Performance dimensions: Performance appraisal o Written essay o Critical incident o Graphic rating scale o BARS (Behaviorally Anchored Rating Scale)

Performance appraisal and graphic rating scales

o Multiperson Comparison o MBO o 360-degree appraisal Graphic rating scales: popular method that lists a set of performance factors & an incremental scale; evaluator goes down the list & rates employee on each factor Critical incidents and BARS Critical incidents: evaluator focuses on critical behavior that separate effective & ineffective performance BARS: Behaviorally Anchored Rating Scale, poular approach that combines elements from each critical incident & graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors Forced distribution and comparison measures Forced distribution: Comparison measures:

MBO: Management by objective, process of setting mutually agreed upon goals & using those goals to evaluate employee performance, contains 4 elements: 1. goal specificity 2. participative decision making 3. an explicit time period 4. performance feedback 360-degree feedback: Balanced scorecard approaches: to evaluate organizational performance from more than just a financial perspective, managers should develop goals in each of the four areas & then measure whether the goals are being met, looks at 4 areas: 1. finances 2. customers 3. interal processes 4. people/innovation/growth assets Employee training program development, including techniques of assessment and evaluation Designing training programs Training methods

Traditional training methods: o On-the-job: employees learn how to do tasks simply by performing them, usually after an initial intro to the task o Job rotation: employees work at different jobs in a particular area, getting exposure to a variety of tasks o Mentoring & coaching: employees work with an experienced worker who provides info, support, & encouragement; also called apprenticeships in certain industries o Experiential exercises: employees participate in role playing, simulations, or other face-to-face types of training o Workbooks/manuals: employees refer to training workbooks & manuals for info o Classroom lectures: employees attend lectures designed to convey specific info

Technology-based training methods: o CD-ROM/DVD/videotapes/audiotapes/podcasts: employees listen to/watch selected media that convey info or demonstrate certain techniques o Videoconferencing/teleconferencing/satellite TV: employees listen to/participate as info is conveyed/techniques demonstrated o E-learning: internet-based learning where employees participate in multimedia simulations or other interactive modules

Employment planning, job analysis, job descriptions, and job specifications Employment planning, supply and demand analysis Employment planning: managers ensure that they have the right number & kinds of capable people in the right places & at the right times, 2 steps: 1. Assessing current human resources 2. Meeting future HR needs Supply & demand analysis Internet Employee referrals Company web site College recruiting Professional recruiting organizations Recruiting techniques

Job analysis: an assessment that defines a job & the behaviors necessary to perform it Job descriptions: written statement that describes a job-typically job content, environment, & conditions of employment Job specifications: states the minimum qualifications that a person must possess to successfully perform a job, identifies the knowledge, skills, & attitudes needed to do the job effectively Staffing principles including recruiting, screening, and selection techniques and tools Employment discrimination and affirmative action Affirmative action: trying to balance the shoulds & should-nots of many laws, seeks to enhance the status of members of protected groups

Selection reliability and validity Validity: there must be a proven relationship between the selection device & some relevant criterion Reliability: measures the same thing consistently Application forms Written tests Performance-Simulation tests Interviews Background Investigations Physical examinations

Selection techniques

Compensation basic principles including internal and external equity, job-based and skill-based systems, pay for performance issues, and benefit systems and programs Job-based pay and job evaluation Skill- and knowledge-based pay Skill-based pay: reward employees for the job skills & competencies they demonstrate

Principles of group behavior and work team dynamics Group development 1. Forming o 2 phases: while people join the group, defining the groups purpose, structure, & leadership

2. Storming: intragroup conflict 3. Norming: close relationships develop & the group becomes cohesive 4. Performing: energies have moved from getting to know & understand each other to working on the groups task 5. Adjourning: focused on wrapping up activities instead of task performance Group norms and roles Norms: standards/expectations that are accepted & shared by a groups members Roles: refers to behavior patterns expected of someone occupying a given position in a social unit Group cohesiveness: degree to which members are attracted to a group & share the groups goals Groupthink: exerts intense pressure on the individual to align his/her opinion to conform to others opinions, occurs when theres a clear group identity Group decision-making: generate more complete info & knowledge, bring a diversity of experience & perspectives to the decision process, generate more diverse alternatives Group conflict (functional and dysfunctional) Functional: constructive & support the goals of the work group & improve its performance Dysfunctional: destructive & prevent a group from achieving its goals Teams o Problem-solving: involved in efforts to improve work activities/solve specific problems o Self-managed work: formal group of employees who operate without a manager & are responsible for a complete work process/segment o Cross-functional: composed of individuals from various specialties o Virtual: uses technology to link physically dispersed members in order to achieve a common goal The dynamics of the process of organizational change including sources of resistance to change and methods and techniques for effectively implementing change. The basic concepts of organizational development including philosophies, techniques and methods, and its relationship to continued effectiveness Forces for change External: changing consumer needs & wants, new governmental laws, changing technology, economic changes Internal: new organizational strategy, change in composition of workforce, new equipment, changing employee attitudes

Group cohesiveness, group decision-making and groupthink

Types of teams and groups

Resistance to change 1. Education & communication 2. Participation 3. Facilitation & support 4. Manipulation 5. Co-optation 6. Selecting people who accept change 7. Coercion Implementation tactics Accept ambiguity: dont wanna constrain creativity Tolerate the impractical: what may seem impractical might lead to innovative solutions Keep external controls minimal: ex. Rules, regulations, policies, & similar organizational controls Tolerate risk: mistakes are treated as learning opportunities Tolerate conflict: diversity of opinions is encouraged Focus on ends rather than means: goals are made clear Use an open-system focus: managers closely monitor the environment & respond to changes as they occur Provide positive feedback: to make employees feel that their creative ideas receive attention

Principles of perception and how perception impacts attitudes, judgment behaviors, and workplace decisions Work attitudes such as job satisfaction and organizational commitment Job satisfaction: persons general attitude toward his/her job, has a positive attitude toward their job Organizational commitment: degree to which an employee identifies with a particular organization & its goals & wishes to maintain membership in that organization Job involvement: degree to which an employee identifies with his/her job, actively participates in it, & considers his/her job performance to be important to his/her self-worth Employee engagement: employees being connected to, satisfied with, & enthusiastic about their jobs Antecedents: Relationships: Consequences: Antecedents/relationships/consequences

Cognitive dissonance: any incompatibility/inconsistency between attitudes/between behavior & attitudes

Perceptual distortions, social perception and stereotyping Stereotyping: judging someone on the basis of our perception of a group to which he/she belongs Social perception: process by which we give meaning to our environment by organizing & interpreting sensory impressions Attributions: developed to explain how we judge people differently, depending on what meaning we attribute to a given behavior Personality: unique combination of emotional, thought, & behavioral patterns that affect how a person reacts to situations & interacts with others Locus of control: degree to which people believe they are masters of their own fate Internal: believe they control their own destiny External: believe that their lives are controlled by outside forces

Self-monitoring: refers to a persons ability to adjust behavior to external, situational factors MBTI: Personality assessment consists of 100+ questions that ask people how they usually act/feel in different situations 1. Social interaction: extrovert or introvert (E or I) 2. Preference for gathering data: sensing or intuitive (S or N) 3. Preference for decision making: feeling or thinking (F or T) 4. Style of making decisions: perceptive or judgmental (P or J) Emotional intelligence: ability to notice & to manage emotional cues & info, 5 dimensions: 1. Self-awareness: to be aware of what youre feeling 2. Self-management: manage your own emotions & impulses 3. Self-motivation: persist in the face of setbacks & failures 4. Empathy: sense how others are feeling 5. Social skills: handle the emotions of others

Work motivation principles and theories


intrinsic/extrinsic rewards content models -Maslow=s Hierarchy of Needs -Alderfer=s ERG Theory -Herzberg=s Two-Factor theory -McCellend=s Acquired Needs process models -goal-setting -equity theory -expectancy theory reinforcement theory

Impact of reward systems on behavior and effectiveness


merit pay systems individual incentives team-based incentives

Different forms of job design and the impact of job design on motivation and efficiency
job enlargement. job enrichment Job simplification Job Characteristics Model

Principles of conflict and power within organizations types of conflict conflict-handling styles
functional and dysfunctional sources and uses of power

influence tactics Principles of negotiation


types of disputes types of bargaining and negotiations arbitration and mediation

Basic approaches to models of leadership and leader behavior


Trait theories of leadership behavioral approaches to leadership contingency leadership theories The Hersey and Blanchard SIT model Transformational leadership charismatic leadership transactional leaders

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