MGMT 371: Principles of Management

ManagementTest One: Chapters 1, 1(History), 2, 3, & 4Notes

Chapter One:Learning Outcomes1.1 Explain why managers are important to organizations.1.2 Tell who managers are and where they work.1.3 Describe the functions, roles, and skills of managers.1.4 Describe the factors that are reshaping and redefining the managers job.1.5 Explain the value of studying managementChapter NotesDatapoints28 percent of workers surveyed said they could do a better job than their boss.76 percent of workers surveyed said they would not like to have their managers job27 percent of adults surveyed said working part time in a management position is possible. 45 percent of workers surveyed said their boss had taken credit for their work34 percent of workers surveyed said their boss had thrown them under the bus to save himself or herself.27 percent of employees surveyed said their horrible boss was a know-it-all.25 percent of employees surveyed said their horrible boss was a micromanager.12 percent of employees surveyed said their employer genuinely listens to and cares about its employees.Exhibit 1-1 Levels of ManagementTop ManagersMiddle ManagersFirst-Line ManagersNonmangerial EmployeesExhibit 1-2 Characteristics of OrganizationsDistinct PurposeDeliberate StructurePeopleExhibit 1-3 Efficiency and Effectiveness in ManagementEfficiency (Means)Resource UsageLow WasteEffectiveness (Ends)Goal AttainmentHigh Attainment

Management strives for:Low Resource Waste (high efficiency)High Goal Attainment (high effectiveness)Exhibit 1-4 Four Functions of Management Planning: setting goals, establishing strategies, and developing plans to coordinate activitiesOrganizing: determining what needs to be done, how it will be done, and who is to do it.Leading: Motivating, leading, and any other actions involved in dealing with peopleControlling: monitoring activities to ensure that they are accomplished as planned. Lead to:Achieving the organizations stated purpose.Exhibit 1-5 Mintzbergs Managerial RolesInterpersonal RolesFigureheadLeaderLiaisonInformational RolesMonitorDisseminatorSpokespersonDecisional RolesEntrepreneurDisturbance HandlerResource AllocatorNegotiatorExhibit 1-7 Important Managerial SkillsManaging human capitalInspiring commitmentManaging changeStructuring work and getting things doneFacilitating the psychological and social contexts of workUsing purposeful networkingManaging decision-making processesManaging strategy and innovation Managing logistics and technologyExhibit 1-8 Changes Facing ManagersChangeImpact of ChangeChanging Technology (Digitization)Shifting organizational boundariesVirtual WorkplacesMore mobile workforceFlexible work arrangements Empowered employeesWork life- personal life balanceSocial media challengesIncreased Emphasis on Organizational and Managerial EthicsRedefined valuesRebuilding trustIncreased accountabilitySustainabilityIncreased CompetitivenessCustomer serviceInnovationGlobalizationEfficiency/productivityChanging Security ThreatsRisk managementUncertainty over future energy sources/pricesRestructured workplaceDiscrimination ConcernsGlobalization ConcernsEmployee assistanceUncertainty over economic climateExhibit 1-9 Universal Need for ManagementManagement is needed inAll organizational areasManufacturing MarketingHuman Resources AccountingInformation Systems Etc.All Sizes of OrganizationsSmall LargeAll types of Organizations Profit Not-For-ProfitAll Organization LevelsBottom topExhibit 1-10 Rewards and Challenges of Being a ManagerRewardsCreate a work environment in which organizational members can work to the best of their ability.Have opportunities to think creatively and use imaginationHelp others find meaning and fulfillment in workSupport, coach, and nurture othersWork with a variety of peopleReceive recognition and status in organization and communityPlay a role in influencing organizational outcomesReceive appropriate compensation in the form of salaries, bonuses, and stock optionsGood managers are needed by organizationsChallengesDo hard workMay have duties that are more clerical than managerialHave to deal with a variety of personalitiesOften have to make do with limited resourcesMotivate workers in chaotic and uncertain situations Blend knowledge, skills, ambitions, and experiences of a diverse work groupSuccess depends on others work performance.

Chapter One History:Learning OutcomesMH 1 Describe contemporary organizational designs.MH 2 Discuss how organize for collaboration.MH 3 Explain flexible work arrangements used by organizations. MH 4 Discuss organizing issues associated with a contingent workforce. MH 5 Describe todays organizational design challenges. Chapter NotesExhibit 12-3 Benefits and Drawbacks of Collaborative WorkBenefitsIncreased communication and coordinationGreater innovative outputEnhanced ability to address complex problems. Sharing of information and best practicesDrawbacksPotential interpersonal conflictDifferent views and competing goalsLogistics of coordinatingExhibit 12-4 Making Communities of Practice WorkHave top management support and set clear expectations.Create an environment that will attract people and make them want to return for advice, conversation, and knowledge sharing.Encourage regular meetings of the community, whether in person or online. Establish regular communication among community members. Focus on real problems and issues important to the organization.Have clear accountability and managerial oversight.Exhibit 12-5 Benefits and Drawbacks of Open InnovationBenefitGives customers what they want a voiceAllows organizations to respond to complex problems.Nurtures internal and external relationshipsBrings focus back to marketplaceProvides way to cope with rising costs and uncertainties of product development.DrawbackHigh demands of imagining the processExtensive support needed Cultural challengesGreater need for flexibilityCrucial changes required in how knowledge is controlled and challenged.Datapoints84 percent of employees who work remotely did so at least once a week62 percent of workers want the option to telecommute.67 percent of respondents said they want greater flexibility at work. 32 percent of orgnaizations have ad hoc alternative workplace programs such as mobil work, hoteling, and telecommuting.69 percent of human resource consultants say that the use of a flexible workforce is a permanent change and not a temporary response to economic conditions.48 percent of respondents to a survey say that compared with now, the office of 2021 will have disappeared and employees will work from wherever they are.32 percent of workers say the biggest advantage of working from home is no commute. 50 percent if adults surveyed said they preferred a traditional 9 to 5 shift for their workday; 50 percent said theyd like some other option.33 percent of employees say they often receive emails from their bosses during the weekend. Chapter ThirteenLearning Outcomes13.1 Explain the importance of the human resource management process and the external influences that might affect that process.13.2 Discuss the tasks associated with identifying and selecting competent employees. 13.3 Explain the different types of orientation and training. 13.4 Describe strategies for retaining component, high-performing employees. 13.5 Discuss contemporary issues in managing human resources. Chapter NotesExhibit 13-1 High-Performance Work PracticesSelf-managed teamsDecentralized decision-makingTraining programs to develop knowledge, skills, and abilitiesFlexible job assignmentsOpen CommunicationPerformance-based compensationStaffing based on person-job and person-organization fitExtensive employee involvementGiving employees more control over decision makingIncreasing employee access to informationExhibit 13-2 HRM ProcessHuman Resource PlanningDerecruitmentRecruitment Selection (Identify and select competent employees)OrientationTraining (Provide employees with up-to-date skills and knowledge)Performance ManagementCompensation and benefitsCareer Development (Retain competent and high-performing employees)Datapoints83 percent of companies cite a shortage of talent as their number one hiring challenge.91 percent of recent college graduates say that if they started a job and didnt like it, they would stay in that job for up to a year. 52 percent of HR professionals say they dont use social networking sites to research job candidates.85 percent of survey respondents said the top reason for why an employee should be terminated is sexually harassing a co-worker.6.25 seconds is the time recruiters spend looking at a resume before deciding whether the candidate is a good fit for a job.61 percent of workers surveyed say theyre never late for work.15 percent of employers say they have fired a worker for calling in sick without a legitimate excuse.36 percent of respondents say the top reason why someone hired would not work out in a position (other than poor performance) is a mismatched skill set.39 percent of HR managers say that annual performance reviews are not an accurate appraisal of employees work38 percent of senior managers say the most common mistake candidates make during job interviews is having little or no knowledge of the company.82 percent of employees say they give up more than 5 percent of their salary to get a guaranteed retirement income.Exhibit 13-3 Major HRM LawsEqual Employment Opportunity and DiscriminationEqual Pay Act 1963Prohibits pay differences for equal work based on genderCivil Right Act, Title VII 1963 (amended in 1972)Prohibits discrimination based on race, color, religion, national origin, or gender.Age Discrimination in Employment Act 1967 (amended in 1978)Prohibits discrimination against employees 40 years and older.Vocational Rehabilitation Act 1973Prohibits discrimination on the basis of physical or mental disabilitiesAmericans with Disabilities Act 1990Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals. Compensation/BenefitsWorker Adjustment and Retraining Notification Act 1990Requires employers with more than 100 employees to provide 60 days notice before a mass layoff or facility closing.Family and Medical Leave Act 1993Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons.Health Insurance Portability and Accountability Act 1996Permits portability of employees insurance from one employer to anotherLilly Ledbetter Fair Pay Act 2009Changes the statue of limitations on pay discrimination to 180 days from each paycheck Patient Protection and Affordable Care Act 2010Health care legislation that puts in place comprehensive health insurance reformsHealth/SafetyOccupational Safety and Health Act (OSHA) 1970Establishes mandatory and health standards in organizations.Privacy Act 1974Gives employees the legal right to examine personnel files and letter of referenceConsolidated Omnibus Reconciliation Act (COBRA) 1985Requires continued health coverage following termination (paid by employee)Exhibits 13-4 Recruiting SourcesInternetAdvantages Reaches large numbers of peopleCan get immediate feedbackDisadvantagesGenerates many unqualified candidates Employee ReferralsAdvantages Knowledge about they organization provided by current employeeCan generate strong candidates because a good referral reflects on the recommenderDisadvantagesMay not increase the diversity and mix of employeesCompany Web SiteAdvantages Wide distributionCan be targeted to specific groupsDisadvantagesGenerates many unqualified candidatesCollege RecruitingAdvantages Large centralized body of candidates DisadvantagesLimited to entry-level positionsProfessional Recruiting OrganizationsAdvantages Good knowledge of industry challenges and requirementsDisadvantagesLittle commitment to specific organizationExhibit 13-5 Derecruitment OptionsFiring: permanent involuntary terminationLayoffs: temporary involuntary termination; may last only a few days or extend to yearsAttrition: Not filling openings created by voluntary resignations or normal retirements.Transfers: Moving employees either laterally or downward; usually does not reduce costs but can reduce intraorganizational supply-demand imbalancesReduced Workweeks: having employees, work fewer hours per week, share jobs, or perform their jobs on part-time basisEarly Retirements: providing incentives to older and more senior employees for retiring before their normal retirement dateJob Sharing: having employees, share one full-time positionExhibit 13-7 Selection ToolsApplication FormsAlmost universally usedMost useful for gathering informationCan predict job performance but not easy to create one that doesWritten TestsMust be job relatedInclude intelligence, aptitude, ability, personality, and interest testsAre popular (e.g., personality test; aptitude tests)Relatively good predictor for supervisory positionsPerformance-Simulation TestsUse actual job behaviorsWork sampling test applicants on tasks associated with that job; appropriate for routine or standardized workAssessment center stimulate jobs; appropriate for evaluating managerial potentialInterviewsAlmost universally usedMust know what can and cannot be askedCan be useful for managerial positionsBackground InvestigationsUsed for verifying application data valuable source of informationUsed for verifying reference checks not a valuable source of informationPhysical ExaminationsAre for jobs that have certain physical requirementsMostly used for insurance purposesExhibit 13-8 Types of TrainingGeneralCommunication skills, computer systems application and programming, customer service, executive development, management skills and development, personal growth, sales, supervisory skills, and technological skills and knowledgeSpecificBasic lifework skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership, product knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, and othersExhibit 13-9 Traditional Training MethodsOn the job: employees learn how to do tasks simply by performing them, usually after an initial introduction to the taskJob Rotation: employees work at different jobs in a particular area, getting exposure to a variety of tasks.Mentoring and Coaching: Employees work with an experienced worker who provides information, support, and encouragement; also called apprenticeships in certain industries.Experiential Exercises: employees participate in role playing, simulations, or other face-to-face types of trainingWorkbooks/Manuals: employees refer to training workbooks and manuals for informationClassroom Lectures: employees attend lectures designed to convey specific informationTechnology-Based Training MethodsCD-ROM/DVD/Videotapes/Audiotapes/Podcasts: Employees listen to or watch selected media that convey information or demonstrate certain techniques.Videoconferencing/Teleconferencing/Satellite TV: employees listen to or participate as information is conveyed or techniques demonstratedE-Learning: Internet-based learning where employees participate in multimedia simulations or other interactive modules.Mobile Learning: learning delivered via mobile devicesExhibit 13-10 Performance Appraisal MethodsWritten EssayEvaluator writes a description of employees strengths and weaknesses, past performance, and potential; provide suggestions for improvement.+Simple to use-- May be better measure of evaluators writing ability than of employees actual performanceCritical IncidentEvaluator focuses on critical behaviors that separate effective and ineffective performance.+ Rich examples, behaviorally based-- Time-consuming, lacks quantificationGraphic Rating ScalePopular method that lists a set of performance factors and an incremental scale; evaluator goes down the list and rates employee on each factor + Provides quantitative data; not time-consuming-- Doesnt provide in-depth information on job behaviorBARS (Behaviorally Anchored Rating Scale)Popular approach that combines elements from critical incident and graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors.+ Focuses on specific and measurable job behaviors-- Time-consuming; difficult to developMultiperson ComparisonEmployees are rated in comparison to others in work group+ Compares employees with one another-- Difficult with large number of employees; legal concernsMBOEmployees are evaluated on how well they accomplish specific goals+ Focuses on goals; results oriented-- Time-consuming360-Degree AppraisalUtilizes feedback from supervisors, employees, and coworkers+ Thorough-- Time-consumingExhibit 13-11 What Determines Pay and BenefitsLevel of Compensation and BenefitsKind of Job PerformanceDoes job require high levels of skills?Kind of BusinessWhat industry is job in?UnionizationIs business unionized?Labor or Capital IntensiveIs business labor or capital intensive?Management PhilosophyWhat is management philosophy toward pay?Geographical LocationWhere is organization located?Company ProfitabilityHow profitable is the business?Size of CompanyHow large is the organization?Employees Tenure and PerformanceHow long has employee been with organization and how has he or she performed?Exhibit 13-12 Tips for Managing DownsizingTreat everyone with respect Communicate openly and honestly:Inform those being let go as soon as possibleTell surviving employees the new goals and expectationsExplain impact of layoffsFollow any laws regulating severance pay or benefitsProvide support/counseling form surviving (remaining) employees Reassign roles according to individuals talents and backgroundsFocus on boosting morale:Offer individualized reassuranceContinue to communicate, especially one-on-oneRemain involved and availableHave a plan for the empty office spaces/cubicles so it isnt so depressing for surviving employees.

Chapter FifteenLearning Outcomes15.1 Identify the focus and goals of individual behavior within organizations.15.2 Explain the role that attitudes play in job performance.15.3 Describe different personality theories.15.4 Describe perception and factors that influence it.15.5 Discuss learning theories and their relevance in shaping behavior.15.6 Discuss contemporary issues in organizational behavior.Chapter NotesExhibit 15-1 Organization as Iceberg Visible AspectsStrategiesObjectivesPolicies and ProceduresStructureTechnologyFormal AuthorityChain of Command Hidden AspectsAttitudesPerceptionsGroup NormsInformal InteractionsInterpersonal and Intergroup Conflicts

Exhibit 15-2 Sample Employee Attitude SurveyHere are some sample statements from an employee attitude survey:I have ample opportunities to use my skills/abilities in my job. My manager has a good relationship with my work group.My organization provides me professional development opportunities.I am told if Im doing good work or not.I feel safe in my work environment.My organization is a great place to work. Exhibit 15-3 Examples of MBTI Personality TypesI-S-F-P (Introversion, Sensing, Feeling, Perceiving)Sensitive, kind, modest, shy, and quietly friendly. Such people strongly dislike disagreements and will avoid them. They are loyal followers and quite often are relaxed about getting things done.E-N-T-J (Extraversion, Intuition, Thinking, Judging) Warm, friendly, candid, and decisive; also skilled in anything that requires reasoning and intelligent talk, but may sometimes overestimate what they are capable of doing. Data points60 percent of workers are dissatisfied with their job; however, 70 percent of those unhappy employees plan to stay put.62 percent of older workers say they were happiest in their career at some time in the past. 50 percent of college students say the longest they can go without using digital technology is up to 30 minutes.29 percent of employees are inspired by or engaged with their job. 59 percent of employers say theyre very loyal to their employees; only 32 percent of employees feel their employer is loyal to them.79 percent of chief financial officers say a sense of humor is important in the workplace.80 percent of campus recruiters say students ways of communicating are too casual for the recruiting process.41 percent of Millenials (and only 30 percent of baby boomers) agree or strongly agree that employers should do what their manager tells them, even when they cant see the reason for it. 48 percent of workers say being courteous to coworkers helps with career advancement.71 percent of adults say flip-flops are inappropriate for the workplace.41 percent of chief financial officers said the most annoying coworker behavior is sloppy work.Exhibit 15-4 Hollands Personality Job FitTypePersonality CharacteristicsSample OccupationsRealistic. Prefers physical activities that require skill, strength, and coordination.Shy, genuine, persistent, stable, conforming, and practicalMechanic, drill press operator, assembly-line worker, farmerInvestigative. Prefers activities involving thinking, organizing, and understanding.Analytical, original, curious, independentBiologist, economist, mathematician, news reporterSocial. Prefers activities that involve helping and developing others.Sociable, friendly, cooperative, understandingSocial worker, teacher, counselor, clinical psychologistConventional. Prefers rule-regulated, orderly, an unambiguous activities.Conforming, efficient, practical, unimaginative, inflexibleAccountant, corporate manager, bank teller, file clerkEnterprising. Prefers verbal activities that offer opportunities to influence others and attain power.Self-confident, ambitious, energetic, domineeringLawyer, real estate agent, public relations specialist, small business managerArtistic. Prefers ambiguous and unsystematic activities that allow creative expression.Imaginative, disorderly, idealistic, emotional, impracticalPainter, Musician, Writer, Interior, decorator

Exhibit 15-5 What do you see?Old woman or young woman?A knight on a horse?

Exhibit 15-6 Attribution TheoryObservationInterpretationAttribution of CauseDoes person behave this way in other situation?Yes: High DistinctivenessInternal AttributionNo: Low ConsistencyExternal DistinctivenessDo other people behave the same way in similar situations?Yes: High ConsensusExternal AttributionNo: Low ConsensusInternal AttributionDoes person behave this way consistently?Yes: High ConsistencyInternal AttributionNo: Low ConsistencyExternal Attribution18