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Summary - Fundamentals of Management Essential Concepts and Applications
1 Managers and management
Three characteristics of organizations
Nonmanagerial employees are people who work directly on a job or task and have no responsibility for overseeing the work of others
Managers oversee the activities of other people in the organization so organizational goals can be accomplished.
- Top managers; Responsible for making decisions about direction of organization, establishing policies and philosophies.
- Middle managers; Manage other managers, translate the goals top managers set into specific details
- First-line managers; Directing day-to- day activities of nonmanagerial employees
- Team leaders; managing and facilitating the activities of a work team
Titles of managers
- top managers: vice president, president, chancellor, managing director, chief operating officer, chief executive officer or chair person of the board
- Middle managers: department or agency head, project leader, unit chief, district manager, division manager or store manager
- First-line managers: supervisors, shift managers, office managers, department managers or unit coordinators.
- Team leaders:-
Managers and efficiency &effectiveness
- Concepts are different but interrelated
- It's easier to be effective if you ignore efficiency
- Poor management is often due to inefficiency and ineffectiveness or effectiveness achieved without efficiency
- Good management is concerned with both attaining goals and doing so as efficiently as possible
Four management functions
Mintzberg managerial rolesInterpersonal roles
- Disturbance handler
- Resource allocater
Four critical management skills
- Conceptual skills
- Interpersonal skills
- Technical skills
- Political skills
Small business have less than 500 employees and not a big impact on industry
Organisations can be commercial, non-profit, not-for profit or governmental
Why do we have different managers?
- Because of specialization
- Because of span of control
What are conceptual skills?Ability to analyze and diagnose complex situations
What are interpersonal skills?Ability to work with, understand, mentor, and motivate others both individually and in groups.
What are technical skills?Job-specific knowledge and techniques needed to perform work tasks
What are political skills?A manager's ability to build a power base and establish the right connection
2.1 What is the external environment and why is it important
Components of the External Environment
Economic Global Political Legal Sociocultural Technological Demographics (age)
Definition external environment:Factors, forces, situations and events outside the organization that affect its performance.
2.2 How Does the External Environment affect managers
How does the external environment affect managers?
- Changes on jobs and employment
- Amount of uncertainty in the environment
- Stakeholder relationships
To asses environmental uncertainty, what can a manager use?Evironmental uncertainty matrix
Degree of change: Stable ~ Dynamic
Degree of complexity: Simple ~ Complex
Stakeholders are any constituencies in an organization's environment that are affected by that organization's decisions and actions
What are different stakeholders from an organization?
- Social an political action groups
- Trade and Industry associations
Why should managers care about stakeholder relationships?
- Good relationships can positively affect organizational performance
- It's the right thing to do because an organization depends on external groups as sources of input.
- Create and reinforce a positive image of the organization among its stakeholders and community.
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Deming's 14 point for improving productivity
- Plan for the long-term future
- Never be complacent concerning the quality of your product
- Establish statistical control over your production processes and require your suppliers to do so as well
- Deal with the best and fewest number of suppliers
- Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself
- Train workers for the job that you are asking them to perform
- Raise the quality of your line supervisors
- Drive out fear
- Encourage departments to work closely together rather than to concentrate on departmental or divisional distinctions
- Do not adopt strictly numerical goals
- Require your workers to do quality work
- Train your employees to understand statistical methods
- Train your employees in new skills as the need arises
- Make top managers responsible for implementing these principles
What is the difference between service and manufacturing firms?
Manufacturing firms produce products, service firms produce nonphysical products in form of services
Why is operations management so important?
- It encompasses processes in services and manufacturing organizations
- It's important in effectively and efficiently managing productivity
- It plays a strategic role in an organization's competitive succes
Definition of operations management?
The transformation process of raw materials into goods and services that can be sold.
The balanced scorecard evaluates in four areas. Which ones?
- Internal processes
- People, innovation and growth assets
What areas need to be controlled?
- Finances (budgets& financial ratios)
- Company information (MIS)
- Organizational performance (Balanced scorecard)
A manager can implement controls before, during and after an activity. How are these called?
- Feedforward control
- Concurrent control
- Feedback control
If a manager want to correct actual performance, which decision must he first make?
- Immediate corrective action; corrects problems at once
- Basic corrective action; looks at how and why performance deviated before
After measuring and comparing with standards. Managers can choose among 3 possible courses of action:
- Do nothing
- Correct actual performance
- Revise standard
How do managers compare actual performance to planned goals?
They set a range of variation. This displays how much the result of the measurement may vary from the standard.