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Management Study Guide . Management Levels. Goals of Management . Getting things done efficiently & effectively. High Attainment Of Goal. Low Resource Usage/ Use resource efficiently. Effective. Efficient. Management Functions. Components of External Environment.
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Goals of Management • Getting things done efficiently & effectively High Attainment OfGoal Low Resource Usage/ Use resource efficiently Effective Efficient
Components of External Environment • Factors OUTSIDE organization that affect performance
Stakeholders • Factors in the environment that are affected by the organization (i.e. stock holders)
Organizational Culture • Shared values, principles, and traditions • “Way of doing things around here” • Shows how members & employees act Examples: Ritz Carlton is 5-star hotel known for exceptional service Employees are very nice & Accommodating Apple is for tech savvy, younger People Employees design sleek products With features that young people Want in their products
Types of Global Organizations • Multinational Corporation (MNC) is an international company with operations in multiple countries • Multi-domestic Corporation • Management is specific to local culture with many different “home bases” • Global Corporation • Management & decisions are made in home country • Transnational/Borderless Organization • No geographical barriers, no “home base”
Important “Global” Terms • Franchising: agreement in which organization gives another organization the right to use its name • Global Strategic Alliance: partnership between an organization and a foreign company to share resources and develop products TOGETHER • Joint Venture: strategic alliance between two organizations to form a separate company for some purpose • Foreign Subsidiary: direct investment in foreign country that involves setting up a separate office • Global Sourcing: purchasing materials from around the world, wherever it is cheapest • Parochialism: narrow focus in which manager sees things only through their own eyes & own perspective
Hofstede’s Study • Study of the differences in cultural environments • Power distance: degree to which culture accepts power is distributed unequally • (low = low power distance, extremely unequal = high power distance) • Individualism vs. Collectivism: degree to which people choose to act as individuals rather than members of group • (collectivism = more group oriented) • Quantity of life vs. Quality of life • (Quantity = importance of money, assertiveness, & material goodsQuality = importance of relationships and concern for others) • Uncertainty avoidance: degree to which people prefer structured situations as opposed to being unstructured and taking risks • Long term vs. Short term • Long-term: people look to future and persistence • Short-term: people value past and present & emphasize upon respecting tradition and fulfilling social obligations
Ethical Behavior • Ethics: set of rules & principles that defines right and wrong conduct Code of ethics: formal documentthat states an organization’s primary values and ethical rules it expects managers and employees to follow
Diversity • Workforce diversity: ways in which people are similar and different than each other in terms of: • Age • Gender • Race & Ethnicity • Religion • Contingent workers: part-time, temporary workers who are available on as-needed basis • May not be as committed to organization
Decision Making Process • Evaluate the result of the decision to whether the problem was resolved
Decision Making Errors • Heuristics: shortcuts or “rules of thumb” • Anchoring Effect: decision makers fixate on initial event as starting point and compare all other events to it. • Selective perception bias: selectively interpret and organize events based on biased perception • Confirmation bias: look for information that validates their past beliefs or choices and ignore information that contradicts beliefs • Availability bias: use events in memory to make judgment about certain event • Representation bias: assess the likelihood of an event based on how closely it represents other events.
Strategic Management Process • Evaluate how effective strategy helped organization reach its goals • Strategic management: what managers do to develop an organization’s strategies • Strategic Management Process: encompasses strategy, planning, implementation, and analysis SWOT: Strengths, Weakness, Opportunities, Threats Internal External
Goals Goals: desired outcomes or targets; guide managers decisions & formcriteria against which work results are measured
Plans • Plans: documents that outline how goals are going to be met; include resource allocation, budgets, schedules, & other necessary actions
Contemporary Planning Issues • Dynamic Environments: developing plans that are specific but flexible • Environmental Scanning: analysis of external environment involving screening large amounts of information to detect emerging trends • Scenarios allow firms to identify and account for multiple possibilities, then plan for them • Competitive Intelligence: environmental scanning that gives managers accurate information about competitors • Who are they? What do they do? How will they affect us?
