What Is Management?

CH-1

Management involves coordinating and overseeing the work activities of others so their
activities are completed efficiently and effectively.
Management Function:
1. Planning 2. Organizing 3. Leading 4.Controlling

Management Roles:
1. Interpersonal, 2. Informational, 3. Decisional

Management Skill:

Approaches to Decision Making

01.Rational decision making

Describes choices that are logical and consistent and maximize value.
02.Bounded rationality
Decision making that’s rational but limited (bounded) by an individual’s ability to process
information.
03.Intuitive decision making
Making decisions on the basis of experience, feelings, and accumulated judgment
1. Structured Problems
straightforward, familiar, and easily defined. For instance, a restaurant server spills a drink on a customer’s
coat. The customer is upset and the manager needs to do something. Because it’s not an unusual occurrence,
there’s probably some standardized routine for handling it. For example, the manager offers to have the coat
cleaned at the restaurant’s expense.
02.Unstructured Problems
new or unusual problems for which information is ambiguous or incomplete.
01.Programmed Decisions
a repetitive decision that can be handled by a routine approach. The spilled drink on the customer’s coat
doesn’t require the restaurant manager to identify and weigh decision criteria or develop a long list of
possible solutions.
02. Nonprogrammed Decisions
Unique and nonrecurring decisions that require a custom-made solution

A procedure is a series of sequential steps a manager uses to respond to a structured

problem.
A rule is an explicit statement that tells a manager what can or cannot be done.
Policy A guideline for making decisions.
Characteristic Progra

What Is Workplace Diversity? CH-5

variety of attitudes and emotional responses in people.

Surface-level diversity
Easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways
people think or feel.
race as physical characteristics, such as bone structure, skin, or eye color.
Ethnicity is the social and culture factors—including nationality, regional culture, and ancestry
Deep-level diversity
Differences in values, personality, and work preferences.
CH-6
SOCIAL RESPONSIBILITY
Classical view
The view that management’s only social responsibility is to maximize profits.

Socioeconomic view
The view that management’s social responsibility goes beyond making profits to include
protecting and improving society’s welfare.

How Organizations Go Green

The Calm Waters Metaphor
Lewin’s three-step process treats change as a move away from the organization’s current
equilibrium state. It’s a calm waters scenario where an occasional disruption (a “storm”)
means planning and implementing change to deal with the disruption. Once the disruption
has been dealt with, however, things continue on under the new changed situation. This type
of environment isn’t what most managers face today.
The White-Water Rapids Metaphor
An expert on weather patterns has said, “There are some times when you can predict weather well for the next fifteen
days. Other times, you can only really forecast a couple of days. Sometimes you can’t predict the next two hours.”
Today’s business climate is turning out to be a lot like that two-hour weather scenario.

Calm Waters Metaphor:

This metaphor refers to a tranquil, peaceful state. It implies a sense of ease, stability, and serenity. In
life, "calm waters" might symbolize periods of smooth sailing, where everything seems to be going
well without much turbulence or difficulty. It can represent a time of peace, contentment, and
harmony.
Example Usage: "After years of struggle, she finally found herself in the calm waters of retirement,
where she could relax and enjoy life."

White-Water Rapids Metaphor:

In contrast, this metaphor describes turbulent, fast-moving waters typically found in rivers. White-
water rapids symbolize challenges, obstacles, and unpredictable situations. Navigating white-water
rapids requires skill, courage, and adaptability. In life, "white-water rapids" represent times of
chaos, adversity, and change.
Example Usage: "Entering the job market during an economic recession felt like navigating white-
water rapids, with constant twists and turns and no clear path forward."
Some common reasons why change is resisted?
Parochial self interest
* Individuals are concerned with the implications for themselves; their view is often biased by their
perception of a particular situation
Habit
* Habit provides both comfort and security
* Habits are often well-established and difficult to change Misunderstanding of the need for or
purpose of change
* Communications problems
* Inadequate information
Low tolerance of change
* Sense of insecurity
Different assessment of the situation
* Disagreement over the need for change
* Disagreement over the advantages and disadvantages
Economic implications
* Employees are likely to resist change which is perceived as affecting their pay or other rewards
* Established patterns of working and reward create a vested interest in maintaining the status quo
Fear of the unknown
* Proposed changes which confront people tend to generate fear and anxiety
* Introducing new technology or working practices creates uncertainty

CH-8
What is Planning?
* Management function that involves setting goals, establishing strategies for achieving those goals,
and developing plans to integrate and coordinate work activities.
* Why planning?
- Provide direction
- Reduce uncertainty
- Minimize waste and redundancy
-Establishes the goals or standards

Mission & Vision

* Mission: A mission is a broad statement of an organization's purpose that provides an overall
guide to what organizational members think is important. It is the purpose of an organization.
Example: "Tesla: To accelerate the world's transition to sustainable energy."
Vision: A vision statement describes what a company desires to achieve in the long-run, generally
in a time frame of five to ten years, or sometimes even longer.
Example: Microsoft: A computer on every desk and in every home.
Microsoft
 Approaches of Goal Setting
Traditional Objective Setting : traditional objective setting is often largely nonoperational. If top
management defines the organization’s objectives in broad terms such as achieving “sufficient
profits” or “market leadership,” these ambiguities have to be turned into specifics as the objectives
filter down through the organization. At each level, managers supply operational meaning to the
goals. Specificity is achieved by each manager applying his or her own set of interpretations and
biases.

What Is MBO?
“Management by objectives” is not new. Its appeal lies in its emphasis on converting overall
objectives into specific objectives for organizational units and individual members.

Porters Five Forces Model

In any industry, five competitive forces dictate the rules of competition. Together, these five
forces determine industry attractiveness and profitability, which managers assess using these
five factors:
1. Threat of new entrants: How likely is it that new competitors will come into the industry?
2. Threat of substitutes: How likely is it that other industries’ products can be substituted for
our industry’s products?
3. Bargaining power of buyers: How much bargaining power do buyers (customers) have?
4. Bargaining power of suppliers: How much bargaining power do suppliers have?
5. Current rivalry: How intense is the rivalry among current industry competitors

What are the strategic implications of the BCG matrix?

* The dogs should be sold off or liquidated as they have low market share in markets with
low growth potential.
* Managers should "milk" cash cows for as much as they can, limit any new investment in
them, and use the large amounts of cash generated to invest in stars and question marks with
strong potential to improve market share. Heavy investment in stars will help take advantage
of the market's growth and help maintain high market share.
* The stars, of course, will eventually develop into cash cows as their markets mature and
sales growth slows.
* The hardest decision for managers relates to the question marks. After careful analysis,
some will be sold off and others strategically nurtured into stars.

SWOT analysis
An analysis of the organization’s strengths, weaknesses, opportunities, and threats.
Strengths:
Internal factors that give an organization or project an advantage over others.
Examples may include a strong brand reputation, unique expertise or technology, talented
workforce, loyal customer base, or efficient processes.
Weaknesses:
Internal factors that place the organization or project at a disadvantage compared to others.
Examples may include lack of resources, outdated technology, poor management, limited
market presence, or high employee turnover.
Opportunities:
External factors that the organization or project could exploit to its advantage.
Examples may include emerging markets, technological advancements, changes in consumer
behavior, partnerships or collaborations, or favorable regulatory changes.
Threats:
External factors that could potentially harm the organization or project.
Examples may include competition, economic downturns, legal or regulatory changes,
disruptive technologies, or shifts in market trends.
The Two-Factor Theory, also known as Herzberg's Motivation-Hygiene Theory, is a
psychological theory developed by Frederick Herzberg in the 1950s. The theory suggests
that there are two distinct sets of factors that influence employee motivation and satisfaction
in the workplace: hygiene factors and motivators.

Hygiene Factors: Hygiene factors are elements in the work environment that, if absent or
inadequate, can lead to dissatisfaction among employees. However, improving these factors
does not necessarily lead to increased motivation or satisfaction; they simply help prevent
dissatisfaction.

Examples of hygiene factors include:

 Working conditions
 Company policies
 Salary and benefits
 Job security
 Quality of supervision
When hygiene factors are satisfactory, employees are not dissatisfied, but their absence does
not necessarily lead to increased motivation or job satisfaction.
Motivators: Motivators are factors intrinsic to the job itself that can lead to higher levels of
motivation and job satisfaction when present. These factors relate to the nature of the work
and the opportunities for personal growth, achievement, and recognition.
Examples of motivators include:
 Achievement
 Recognition
 Responsibility
 Advancement opportunities
 The work itself (e.g., interesting tasks, challenging projects)
Motivators are directly related to job content and can lead to increased satisfaction and
motivation when enhanced.

The X and Y Theory is a management theory proposed by Douglas McGregor in the 1960s,

Theory X: Theory X is based on the assumption that employees inherently dislike work and
will avoid it if possible. It suggests that people have an inherent aversion to work and will try
to avoid it whenever possible.
 Employees are inherently lazy and need to be closely supervised and controlled to
ensure productivity.
 They lack ambition, avoid responsibility, and prefer to be directed rather than take
initiative.
 Employees prioritize security and avoid change or risk-taking.

Theory Y: Theory Y, in contrast, is based on the assumption that employees are inherently
motivated and enjoy work. It suggests that people can be self-motivated and creative if given
the right conditions.
 Employees are capable of self-direction and self-control and will seek out
responsibility and challenges.
 They are inherently motivated by factors beyond just financial rewards, such as
personal growth, achievement, and meaningful work.
 Employees possess creativity and problem-solving abilities that can be harnessed for
the benefit of the organization.