Flashcards in Condensed Information for learning (All chapters) Deck (76):
What is management?
Management is the pursuit of organizational goals effectively and efficiently by integrating the work of people through planning, organising, leading and controlling.
Using resources wisely/ cost effectively
How are we using the resources?
To make the right decisions successfully to eventually achieve the goals of the organisation.
What objectives have we chosen?
What are the challenges of being a manager?
1. Competitive Advantage
Ability to outperform the competitors
Maximising the value of workers with different backgrounds/ages.
Maximising the utility of increased accessibility towards global economy
4. Information Technology
Far-ranging and accelerated decision making through IT, as well as increased communication.
5. Ethical standards
Regarding to moral issues and righteousness in decision making
Reaching current demands without compromising the ability of future generations to use resources and reach their demands
7. Individual's own happiness
Fulling one's own life objectives as a manager
What are the principle functions of managers?
Setting goals and deciding to achieve them
Arranging the tasks, people, and resources effectively to accomplish the work
Motivating, directing and influencing people to achieve the goals
Monitoring performances, comparing and taking corrective action
What are the three levels of management?
Come up with and execute the overall strategy for the organisation
Implement the the competitive strategies as outlines by top managers and organise resources for front line managers
Front- line managers
Implement the operational strategies and make short term, task specific decisions.
What is a competitive strategy?
Competitive strategy defines is used to show 'what makes you different from the rest'
2. Cost leadership
What is an operational strategy?
Operational strategies direct the day to day activities.
What are the roles managers can fulfil?
Mintzberg's Roles - Think - I.I.D
Interpersonal - figure head, leader, laison
Informational - monitor, disseminator and spokesperson
Decisional - Entrepreneur, disturbance handler, resource handler and negotiator.
Define: General manager
Is responsible for several organisational activities
Define: Functional manager
Is responsible for just one organisational activity.
What skills are required to be a manger?
Technical skills - specific knowledge required for the industry or to complete tasks
Conceptual skills - Ability to think analytically, to visualise the business as a whole and understand all of its interconnected parts
Human skills - Ability to work well in cooperation with other people
Political skills - Ability to connect and create networks
What are the five hallmarks of a good manager?
1. Gives employees challenging tasks
2. Empowers employees to demonstrate their capacity to do their job.
3. Provides support and feedback
4. Gives recognition and praise
5. Makes touch decisions
What are the 2 approaches we can have when making decisions?
Assumptions of rational decision making
- We are a fully objective and rational decision maker
- We have clear goals and objectives
- The problems we face are clear and unambiguous
- We know all the possible alternatives and consequences of our decision
- We continuously and consistently make rational decisions to maximise our position
What are the 4 stages of the rational decision making model?
1. Identify the problem or opportunity
2. Think up alternatives.
3. Evaluate the alternatives and select a solution.
4. Implement and evaluate the solution chosen
What are some of the issues with decision making?
- Complexity of the problem
- Business environment uncertainty
- Time and money constraints
- Personal limitations in cognitive skills and capacities
- Information overload
- Competing priorities
- Incomplete information
What non-rational decision models are there?
Explain bounded rationality
Bounded rationality suggests that a decisions- makers ability to be rational is limited by a number of constraints.
these include but are not limited to;
- Environment uncertainty
- Constraints (time and money)
- Information overload
- Incomplete information
- Personal limitations etc etc..
Explain the satisficing model
Managers seek alternatives until they find one that is satisfactory not optimal
"It's good enough"
Explain the incremental model
Managers make small decisions which lead them towards bigger alternatives.
This can sometimes help the organisation move towards their goals or move them away from them.
Explain intuition model
When managers make a choice without the use of conscious thought or logical inference.
They use their feelings and expertise as sources instead.
What are some of the advantages of group decision making?
(When the team is functioning optimally)
1. Greater pool of knowledge
2. Different perspectives
3. Intellectual stimulation
4. Better understanding of decision rationale
5. Deeper commitment to the decision and acceptance of it
What are some of the disadvantages of group decision making?
1. A few people can dominate/intimidate and bully
4. Goal displacement
5. Time consuming
6. Less responsibility for outcomes
When members of a group strive to agree for the sake of agreeing.
They fail to accurately asses their decision and the situation/environment.
What things managers should keep in mind when there are group decision making tasks?
- They are less efficient
- Group size affects decision quality. (Optimal size of groups?)
- Can become too confident
- Knowledge counts
What is participative management?
A process in which employees are involved in setting goals, making decisions, solving problems and making changes in an organisation.
Explain some group problem solving techniques.
Everyone expresses their opinion until a everyone reaches agreement and supports the final decision.
Groups generate multiple ideas and alternatives for solving problems.
3. Delphi -technique
Questionnaires are physically dispersed and participants are asked to answer anonymously to generate ideas
4. Computer aided decision making
Is IT aided decision making which is good a quickly collecting information
Name two types of computer aided decision making
Chauffeur driven systems
Ask people predetermined questions (like polling) use keypad or dial to respond.
When groups of people meet and express their ideas anonymously on a computer network
What are the ineffective responses to decision making?
Relaxed avoidance - take no action in the belief that there will be no great negative consequences
Relaxed change - opts of the first alternative with the perceived lowest risk associated.
Defensive avoidance - when a good solution cannot be found they start to procrastinate, pass the buck or deny the risk of the negative consequences
Panic - when manager is frantic and can't deal with the situation realistically
What are three effective ways to respond to a decision?
1. Importance - how high priority is it?
2. Credibility - how believable is the information about the situation?
3. Urgency - how quickly must I act?
List some common decision making biases.
Think - ROHAS FACE
Representative bias -
Escalation of commitment
How can you help people make decisions?
Program decisions - structured and repetitive responses. good when environment is stable
Mindfulness - encourage them to be in the moment.
Nudge - provide information and requirements
What are ethics and values?
Standards of right and wrong that influence our behaviour.
- Absolute views
- Relative views
What are the 5 dimensions ethical issues can be mapped to?
What are the 4 approaches to ethical dilemma's?
Briefly explain them.
What will result in the greatest good for the greatest number of people
Guided by the individuals self interest and long term interests.
Reflecting the fundamental rights of human beings
Respect for impartial standards fairness and equity
How does Kohlberg suppose people learn ethics?
Kohlberg suggests three levels of increasing development.
1. Pre-conventional - follows rules
2. Conventional - follows the expectations of others
3. Post conventional - guided by internal values
Identify some factors that can affect employees ethics
- Performance appraisal system
- Rules and regulations
- Rewards system
- Time pressures
- Cost restraints
- Competitive pressures
What behaviours can encourage ethical behaviour?
2. Creating a strong ethical climate
3. Screening prospective employees
4. Training programs
5. Rewarding ethical behaviour - protecting whistle blowers
6. Job goals and performance appraisal
7. Independent social audits
What is CSR?
Corporate social responsibility is the idea that corporations should go beyond following the law and making a profit.
Define: Human Resource Management
It is the activities managers perform to plan for, attract develop and train an effective workforce.
Outline the strategic human resource management process.
1. Establish mission and vision of organisation.
2. Establish the 'grand strategy'.
3. Formulate the strategic plans.
4. Plan human resources needed.
5. Recruit and select people.
6. Orient, train and develop.
7. Perform appraisals of people
8. Get optimal work performance to help realise the company's vision and mission.
What is strategic human resource planing?
Consists of developing a systematic, comprehensive
strategy for understanding current employee's needs and predicting the needs of future employees.
- human capital
- social capital
how do we understand employees current needs?
how do we predict future employee needs?
Human resource inventory
What are the different types of interviews people could encounter when getting hired?
Realistic job preview
What does the selection processes involve?
Screening of job applicants to hire the best candidate.
- Background information is gathered, interviewing and employment tests.
What are the 5 steps in the training process?
1. Assesment - is training needed?
2. Objectives - what should training achieve?
3. Selection - Which training methods should be used?
4. Implementation - how should training be effected?
5. Evaluation - is the training working?
What is the difference between training and development?
Training = educating technical and operational employees in how to do better in their current jobs.
Development - educating professionals and mangers in the skills they need to do their jobs better
What is performance management?
The continuously cycle of improving job performance through goal setting, feedback and coaching as well as rewards and positive reinforcement.
What is performance appraisal?
Assessing an employee's performance and providing them with feedback.
Can be informal or formal
Who can make performance appraisals?
- Peers and subordinates
- Customers and clients
Disciplining and demotion
A promotion = moving up
A transfer = moving sideways
Disciplining and demotion = threat of moving downward
Dismissal = moving out of the organisation
What are the advantages of front-line managers performing HR responsibilities?
- Fit for job
- Understand the individuals strengths and weaknesses
- Understand how they might work with a unit
What are disadvantages of front line mangers performing HR responsibilities?
- They can have little knowledge of HR policies, practices and legal obligations
- Conflict of HR goals vs. managers goals
- Discrimination or favouritism
What are some common trends drving change in organisations?
1. The marketplace is becoming more segmented. There are more and more niche products available than ever before.
2. There are more competitors offering targeted products, requiring faster speed to market.
3. Some traditional companies may not survive radically innovative change. Specifically when technological advancements drastically change an industry's landscape.
4. China, India and other offshore suppliers are changing the way we work. Through the opening up of markets and globalisation.
5. Knowledge not information, is becoming the new competitive advantage. We need to have problem solving and abstract thinking skills.
Outline Collin's 5 stages for recognising the need to change
Stage 1: Hubris born of success
When an arrogance (hubris) develops in a company attributing its success to their superior qualities. Forgetting about other underlying factors.
Stage 2: Undisciplined pursuit of more
Overconfidence drives the company to do more, achieve more. In places where it does not have core competencies.
Stage 3: Denial of risk and peril
Explain away internal warning signs that continually appear
Stage 4: Grasping for Salvation
Company starts to experience sharp decline and mangers start making desperate leaps or actions to salvage it.
Stage 5: Capitulation to irrelevance or death
Company can be left to be sold, go bankrupt or become irrelevant.
What are the two types of change?
- making changes in response to problems or opportunities
- carefully thought out changes in anticipations of possible opportunities or problems
- can be called planned change
What are some outside sources of change?
- skill level
- mergers and acquisitions
- domestic and international competition
- manufacturing automation
- office automation
Shareholder and customer demands
Social and political pressures
What are some inside sources of change?
- unmet needs
- job dissatisfaction
- absenteeism and turnover
- participation and suggestions
- reward systems
- structural reorganisation
What area's is change most often needed?
1. Changing people - perceptions, attitudes, performance, skills.
2. Changing technology
3. Changing structure
4. Changing strategy
What are the three main forces that are resistant to change?
Change agent characteristics
Change agent employee relationship
Describe three types of change and their threat level
Adaptive change - least threatening
Reintroduction of a familiar practice
Innovative change - somewhat threatening
Introduce a practice that is new to the organisation
Radically innovative change - very threatening
Introduce a practice that is new to the industry
List the 10 reasons employees resist change
1. Individuals predisposition towards change
2. Surprise and fear
3. Climate mistrust
4. Fear of failure
5. loss of status or job security
6. Peer pressure
7. Disruption of cultural relationships
8. Personality conflicts
9. Lack of tact or poor timing
10. Non-reinforcing rewards system
List ways managers can overcome resistance to change
Education and communication
Facilitation and support
Negotiation and rewards
Manipulation and co-potation
Outline Lewin's change model
- create the motivation to change
- learn new ways of doing things
- making the new ways normal
Outline Kotter's 8 steps for leading organisational change.
1. Establish a sense of urgency so the organisation understands why change is important and why it is needed.
2. Build coalitions among a team that will lead the change and have the power to implement it.
3. Have a clear vision and strategy as the basis for implementing change
4. Have a communication strategy that ensures the vision and strategic plan are understood by all.
5. Enable and empower employees to make change.
6. Plan short-term goals. Reward and celebrate these small milestones as it reinforces that change is valued.
7. Build on any changes that are made, to continue momentum and flow throughout the organisation.
8. Embed new ways of behaving in the organisations culture. Ensure people know how these processes and practices have changed to create success.
What is the organisational development process?
1. Diagnosis - What is the problem?
2. Intervention - what shall we do about it?
3. Evaluation - how well has the intervention worked?
4. Feedback - how can the diagnosis be further refined?