MGMT 100 (1)

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MGMT 100 (1)
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2013-08-12 06:25:49
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UC MGMT 100
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MGMT 100 Lec weeks Lectures 1-6 (12 lectures)
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  1. Organisation
    Collection of people working together to achieve a common purpose
  2. Why do we need an organisation?
    Organisations provide a wayfor people to achieve goals within:

    • •Political systems - form organised societies
    • •Economic systems - societies achieve growth
    • •Social systems - human interaction
  3. Omnipotent view of management
    • When profits (or some other measure of success) are up…..
    • •Management takes the credit and rewards itself with bonuses and share options
    • When profits (or some other measure of success) are down….

    •Top management staff are often replaced, or in the case of smaller businesses they simply go out of business.
  4. Symbolic view of management
    • Failure of an organisation maybe influenced by:
    • •The economy
    • •Market (customer) changes
    • •Government policies
    • •Competitor’s actions
    • •The state of the industry
    • •Decisions made by previousmanagers
  5. Managerial discretion components
    Organisational culture/structure (internal)

    Organisational environment (external)

  6. Management
    • • A goal-orientated process that involves the allocation of resources and the co-ordination of the talents and efforts of a group of people.
    • • Develop, align, and integrate purpose, people, and process.

    • Management is a process of achieving organisational goals through:
    • Planning• Organising• Leading• Controlling
  7. Planning
    involves setting goals and deciding how best to achieve them.
  8. Organising
    focuses on allocating and arranging human and nonhuman resources so that plans can be carried out successfully.
  9. Leading
    involves influencing others to engage in the work behaviour necessary to reach organisational goals
  10. Controlling
    is aimed at regulating organisational activities so that actual performance conforms to expected organisational standards and goals.
  11. Four Functions of the Managerial Process
  12. What do Managers Actually Do?
    • (Mintzberg)
    • • Work long hours
    • • Work at an intense pace
    • • Work is fragmented and varied
    • • Work with many communication media (but prefer verbal)
    • • Work largely through interpersonal relationships
  13. Levels of Managers
    • Top Managers
    • • Responsible for the performance of the whole organisation e.g. CEO, president, executive director

    •  Middle Managers
    • • In charge of relatively large departmentse.g. department head, manager

    • Lower (First-line) Managers
    • • In charge of small work groups, e.g. team leaders, supervisors, shift manager

    All levels of management have accountability
  14. Types of Managers
    Staff managers – support efforts of line workers

    Functional Managers – responsible for a specific area

    General manager – responsible for the overall running of an organisation

    Administrators – a term often used when referring to managers of public or non-profit organisations
  15. Managerial Skills
    • 1. Technical Skills
    • 2. Human Skills
    • 3. Conceptual Skills
    • (KATZ, 1956)
  16. Conceptual Skills
    - are skills related to the ability to visualise the organisation as a whole, discern interrelationships between organisational parts, and understand how the organisation fits into the wider context of the industry, community, and world.
  17. Human Skills
    are skills associated with a manager’s ability to work well with others both as a member of a group and as a leader who gets things done through others.
  18. Technical Skills
    are skills that reflect both an understanding of and a proficiency in a specialised field
  19. Skills/ Management Level
  20. Effectiveness vs. Efficiency
    -Performance effectiveness is the ability to choose appropriate goals and achieve them - doing the right thing.

    • – Performance efficiency is the ability to make the best use of available resources in the process of achieving goals - doing things right
    • DRUCKER, 1967
  21. The Environment
    General belief that there is a close relationship between an organisation and its environment

    • A common theme in organisation theory is that organisations must adapt to their environments if they are to maintain or increase their effectiveness
  22. General Environment
    Specific example?
    • • Encompasses conditions that may have an impact on the organisation, but their relevance is not particularly clear.
    • • These environmental issues may be a distant concern.

    e.g Exchange rates to Jim’s Mowing
  23. Componenets of General Environment
    PEST

    Political
    – Legal Conditions

    Economic Conditions

    Sociocultural Conditions

    Technological Conditions

    Natural Conditions
  24. Political – Legal Conditions
    • General state of the prevailing philosophy and objectives of the political party or parties running the government as well as laws and government regulations
  25. Economic Conditions
    State of the economy in terms of inflation, income levels, gross domestic product, unemployment and other indicators of economic health e.g boom/bust cycle
  26. Sociocultural Conditions
    • General state of prevailing social values on such matters as human rights, trends in education and related social institutions, as well as demographic patterns. For example:
    • • Values change
    • • Healthy lifestyle
    • • Aging population
  27. Technological Conditions
    • General state of the development and availability of technology, including scientific advancements
    •  Starting entirely new industries
    •  Radically altering or virtually destroying existing industries
    •  Stimulate industries not related to the new technology
  28. Specific Environment
    Specific Example?
    • • Is the part of the environment that is directly relevant to the organisation in achieving its goals.
    • • At any given moment it is the part of the environment managers are concerned with as it can positively or negatively effect the organisation’s effectiveness.

    E.g oil prices to Air New Zealand
  29. Specific Environment: Common stakeholders
    • Customers 
    • Suppliers
    • Competitors
    • Regulators
  30. Customers
    • Customers can choose to purchase an organisations product or services (or not).• Without customers an organisation would cease to exist: i.e. no customers – no revenue.
  31. Suppliers
    • You cannot produce or sell a product or services if you cannot obtain the raw resources first.• Suppliers’ prices, consistency of supply and services are a significant influence on any company’s activities
  32. Competitors
    • Competition is rivalry among organisations with respect to customers (market share), resources, reputation, innovation and in many cases survival
  33. Regulators
    • Specific government agencies and representatives, at the local and national levels, that enforce laws and regulations affecting the organisations operations
  34. Relationship between specific environment and general environment
  35. Domain
    • • Refers to the claim that the organisation stakes out for itself with respect to the range of products or services offered and markets served.
    • • The organisation’s niche. (e.g. BMW and Suzuki; UC and CPIT)
    • • The domain determines the points at which the organisation is dependent on its specific environment - change the domain and you change the specific environment
  36. Environmental Uncertainty
    • Lack of complete information regarding what developments will occur in the external environment
  37. Preclassical contributors
    • Robert Owen (1771-1858)
    • Henry R. Towne (1844-1924)
  38. Henry R. Towne (year)
    (1844-1924) Delivered a paper calling for the establishment of the science of management and developing of management principles.
  39. Robert Owen (year)
    • (1771-1858)
    • pioneered ideas about better treatment of workers.
    • • He proposed: – Limiting employment in factories to workers over age 10 – Reducing the workday to 10 and a 1/2 hours – Prohibiting night work for children.
  40. Scientific Management Contributer
    Frederick Taylor (1856-1915)
  41. Frederick Taylor (year)
    • (1856-1915)
    • The Father of Scientific Management
    • • Addressed the question of howto increase productivitygiven a shortage of labour.
  42. Classical Viewpoint: Four Principles of Scientific Management
    • 1. Study task and work out best method.
    • 2. Select workers with right abilities.
    • 3. Carefully train workers and give the proper incentives
    • 4. Support workers through careful planning
  43. Example of Scientific Management
    Bethlehem Steel Mill

    • Before (12.4 tonnes shovelled / $1.15 per day).• All the workers owned their own shovel.• Same shovel used for whatever job worker did.
    • After (47.5 tonnes shovelled / $1.85 per day).• Workers issued with correct shovel for the job.• 8-10 specialist shovels were created.• Centralised planning was introduced and each man was taught how to shovel.
  44. Classical Viewpoint: Administrative Management
    Focuses on the principles that can be used by managers to co-ordinate the internal activities of the organisation.
  45. Classical Viewpoint: Administrative Management Contributor
    Henry Fayol (1841-1925)
  46. Henry Fayol (year)
    • (1841-1925)
    •  developed theories about management that could be taught.
    • • Fayol defined the major managerial functions–
    • Planning (Foresight)–
    • Organising (Organisation)–
    • Leading (Commanding and Co-ordinating)– Controlling (Control)
  47. Classical Viewpoint: Bureaucratic Management
    • Emphasises the need for organisations to operate in a rational manner rather than relying on the arbitrary whims of owners and managers.
  48. Bureaucratic Management Contributor
    Max Weber (1864-1920)
  49. Max Weber (year)
    • (1864-1920)
    • coined the term ‘Bureaucracy’ to apply to the idea of large organisations operating on a rational basis.
  50. Bureaucratic Viewpoint Setting (3 points)
    • • During this period, very large organisationscomprising thousands of employees were inexistence, but there was no managementtraining.
    • • Social class was the main criteria used whenselecting employees!
    • • There was also a high incidence of corruption,misuse of power, nepotism and discrimination against certain groups.
  51. Major characteristics of Weber’s idea bureaucracy
    • • Clear division of labour.
    • • Well-defined hierarchy.
    • • Formal rules and procedures.
    • • Impersonality.
    • • Career advancement based on merit.
  52. Behavioural Viewpoint
    • • Scientific management approach frustrated managers because people were found to be unpredictable and irrational.
    • • The viewpoint started to take into account the individuals and groups who work in organisations.
  53. The Hawthorne effect
    The possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from researchers, rather than because of any specific factors being tested.
  54. Hawthorne studies Assessment
    - Despite this the impact of the studies was immense: In contrast to the impersonal classical approach, Hawthorne studies demonstrated the importance of the job’s social aspects to productivity.
  55. 1920 Hawthorne studies (2 points)
    • • The Western Electric Company had adopted modern scientific management techniques -but the workers were dissatisfied and productivity decreased.
    • • Experiments were conducted to try and find a casual relationship between the physical environment and productivity.
  56. Human Relations Movement
    • • The key to productivity  at that point, appeared to be demonstrating greater concern for workers.
    • • Emphasis on building more collaborative and co-operative relationships between supervisors and workers.
  57. Human Relations Movement: Example of theory
    • Douglas McGregor developed the ‘Theory X/Theory Y’ dichotomy.
    • • Theory X managers tend to assume workers:are lazy, need to be coerced, have little ambition.
    • • Theory Y managers tend to assume workers:like work, capable of self control, creative and innovative
  58. • Theory X
    managers tend to assume workers:are lazy, need to be coerced, have little ambition.
  59. • Theory Y
    managers tend to assume workers:like work, capable of self control, creative and innovative
  60. Behavioural Science Approach (6)
    The most studied areas of behaviour are:
    • • Job satisfaction.
    • • Motivation
    • • Interpersonal behaviour.
    • • Group dynamics
    • • Communication.
    • • Leadership.
  61. Quantitative Viewpoint
    • • This was a movement back to a rational, scientific approach, and was adopted because of the need to solve complex problems in business.
    • • This approach focuses on the use of Mathematics, Statistics, and Information Systems to assist and support managerial decision making and thereby enhancing organisational effectiveness.
  62. Management science
    is an approach aimed at increasing decision effectiveness through the use of sophisticated mathematical models and statistical methods.– (e.g. Trend analysis, forecasts, what if)
  63. • Operations management
    is the function or field of expertise that is primarily responsible for managing the production and delivery of an organisation’s products and services.– (e.g. Inventory management, production planning)
  64. • Management information systems
    the field of management that focuses on designing and implementing computer based information systems for use by management.
  65. Contemporary Viewpoint (Modern approaches)
    • This viewpoint grew from recognising that no one model or universally theory fits all organisations.
    • • People and situations are complex and variable, and can change over time.
    • Variances must be taken into account.
  66. Modern approaches: Systems Theory (main elements)
  67. Modern approaches: Systems Theory
    Inputs
    various resources including human, material, financial, equipment and informational, required to produce goods and services.
  68. Modern approaches: Systems Theory
    Transformation processes -
    the organisation’s managerial and technological abilities used to convert inputs into outputs.
  69. Modern approaches: Systems Theory
    Outputs
    products, services and other outcomes produced by the organisation.
  70. Feedback 
    information about results and organisational status within the environment.
  71. Modern approaches: Contingency Theory
    • • Classical theorists attempted to find ‘the one best way’ or set of universal principles for managers.
    • • Unfortunately things are not so simple.
    • • Consequently, Contingency Theory began to develop.
  72. Ethics
    The individuals (or groups) recognition of right and wrong actions, and moral obligations to society, beyond straightforward legal consideration.
  73. • Social Responsibility
    Ethical behaviour at an organisational level.
  74. • Corporate social responsibility
    • an obligation of the organisation to act in ways that serve both its own interests and the interests of its many stakeholders
    • Designed to improve the quality of life
  75. Who are the Stakeholders?
    • Shareholders/Stockholders
    • Employees
    • Customers
    • Community
    • Society
    •      • Anti-freeloader argument
    •      • Capacity argument
    •      • Enlightened self-interest argument
  76. anti-freeloader argument
    indicates that since businesses benefit from a better society, they should bear part of the costs by actively working to bring about solutions to social problems.
  77. capacity argument
    states that the private sector, because of its considerable economic and human resources, must make up for recent government cutbacks in social programs.
  78. enlightened selfinterest argument
    holds that businesses exist at society’s pleasure and that, for their own legitimacy and survival, businesses should meet the expectations of the public regarding social responsibility
  79. Perspectives on Social Responsibility (2)
    • Classical view
    • • Management’s only responsibility is to maximise profits.
    • Socioeconomic view
    • • Management must be concerned for the broader social welfare, not just profits.
  80. What is organisational social responsibility?
    • Criteria for evaluating corporate social performance. This asks whether the following have been met in an organisation:
    • - discretionary responsibility met?
    • - ethical responsibility met? 
    • - legal responsibility met?
    • - economic responsibility met?
  81. Social ResponsibilityPerspectives
    • Hand of Management
    • • managers act to serve society and company
    • • Can act beyond legal and economic obligations
    • Hand of Government
    • • interests of society best served by the law
    • • Regulations, not managerial decisions
    • Invisible Hand
    •  make profits and obey the law.
    •  Customers (free market focus) will eventually prevail
  82. The social responsibility argument 
    (against and for)
  83. How do organisations and Government work together in society?
    • How Government influences organisations:
    • Common examples of government regulation of business affairs
    • • Employment law
    • • Occupational safety and health
    • • Consumer protection
    • • Environmental protection
  84. How organisations influence Government:
    •  Personal contacts and networks
    •  Public relations campaigns
    •  Lobbying
    •  Political action committees.
  85. Does Social Responsibility Pay?
    • No real evidence.
    • However, Rosebeth Moss Kanter’s share market study showed that ethical companies did perform better on US stock market.
    • Public perception of a company’s social responsibility is sometimes linked to its philanthropy. (corporate)
  86. Vanguard Companies
    • • Although there may be no direct relationship between social responsibility and financial performance, research points to a number of firms scoring highly on both social responsibility and success.
    • O’Toole (1985) calls these organisations ‘vanguard’ corporations.
    • • They try to satisfy all their stakeholders.
    • • They are committed to higher purpose.
    • • They value continuous learning.
    • • They aim high.
  87. Ethics
    An individual (or groups) recognition of right and wrong actions, and moral obligations to society, beyond straightforward legal consideration.
  88. Social Responsibility
    Ethical behaviour at an organisational level.
  89. Legal requirements tend to be ______(forbidding acts), whereas morality tends to be ________ (encouraging acts)
    Laws are the legal embodiment of ethical behaviours. Thus laws can lag behind morality

    Legal requirements tend to be negative(forbidding acts), whereas morality tends to be positive (encouraging acts)
  90. Law versus Morality
    LaRue Hosmer (1991) drew three conclusions regarding the relationship between legal requirements and moral judgement
    • Some laws have no moral content(e.g. driving on the left side of the road)
    • Some laws are morally unjust(e.g. laws that re-enforce discrimination)
    • Some moral standards have no legal basis(e.g. telling a lie to your children)
  91. Ethical Behaviour and Economic Trade-Offs
  92. Alternative Views of Ethical Behaviour-Theorists
    (in the test)
    • Andrew Carnegie (Classical School, 1835-1919)
    • Milton Friedman (‘Laissez-Faire’, 1912-2006)
  93. Milton Friedman (‘Laissez-Faire’, 1912-2006)
    A firm should use all its resources to increase profits, as long as it stays within the rules of the game.

    A manager’s job is not to decide on who should benefit from social responsibility —their job is to make the best economic decisions and society as a whole will benefit from this.
  94. Other Views of Ethical Behaviour (4)
  95. Andrew Carnegie (Classical School, 1835-1919)
    Two basic premises:
    • 1. The Charity Principle
    • The more fortunate should help the less fortunate, but this should not be dictated by Government policy (Paternalism).

    • 2. The Stewardship Principle
    • Holders of wealth are stewards/caretakers of their property — they have a duty to increase its value for the benefit of society as a whole.
  96. Types of Management Ethics
    three types
    • Managerial ethics fit into three types:
    • Immoral Management.
    • Moral Management.
    • Amoral Management.
    •  Intentional.• Unintentional.
  97. Immoral Management
    both lacks ethical principles and is actively opposed to ethical behaviour, all in the pursuit of profit.
  98. MoralManagement
    strives to follow ethical principles in making a profit.
  99. Amoral management
    stance ignores or is oblivious to ethical considerations.
  100. 1.Intentional amoral
    managers do not include ethical concerns in their decision-making, actions, or behaviour, because they think that general ethical standards are more appropriate to other areas of life than to business.
  101. Unintentional amoral
    managers are insensitive to the moral implications of their decision-making, actions, and behaviour.
  102. Situational Factors influencing unethical behaviour 
    (2 factors)
    • External
    • Internal
  103. External Situational Factors (Factors influencing Unethical behaviour) (3)
    • • Environmental Competitiveness
    • May lead to unethical behaviour e.g. price fixing
    • • Low Environmental Munificence
    • An environment where opportunities for success are limited
    • • Extreme dependency of one organisation on another
    • Can create pressures for bribes and payoffs
  104. Internal Situational Factors (3) Examples?
    • • Pressure for higher performance
    • Induces individuals to take shortcuts
    • -Releasing unsafe products
    • • Poor internal financial performance
    • Falling profits or indebtedness may influence unethical acts
    • • Labour dissatisfaction
    • Anger can replace logical behaviour
    • -Theft of materials, intellectual property or simply time
  105. Factors influencing ethical behaviour on 3 types of individuals and examples
    Manager as a person; e.g. family, personal standards and needs

    Employing organisation; e.g. policies and codes of conduct

    External environment; e.g. values of society
  106. Ethical Dilemmas
    What should managers do?
    • Managers need to assess their values and to protect themselves.

    • When seeking employment, managers may research organisations to determine what issues may arise.
  107. Personal Ethical Guidelines
    (6 points) (in the test)
    • • Obey the law.
    • • Tell the truth.
    • • Show respect for all people.
    • • Stick to the golden rule: “Do unto others as you would have them do unto you”
    • • Above all, do not harm.
    • • Always act when you have responsibility.
  108. Personal Ethical Guidelines
    Managers should
    • • Seek expertise and support from a wide network of people whom they trust.
    • • Take internal actions to bring about change.
    • • Take internal actions to protect themselves before they become scapegoats for actions explicitly condoned by higher management e.g. if faced with an instruction to take action considered unethical, get the instruction in writing.
  109. Managerial Roles (3)
  110. Interpersonal Role
    • How a manager interacts with people.
    •  Figurehead, leader, liason
  111. Informational  Role
    • How a manager exchanges and processes information
    •  Monitor, Disseminator, Spokesperson
  112. Decisional Role
    • How a manager uses information in decision making
    • Entrepreneur, Disturbance handler, Resource allocator, Negotiator.

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