CHAPTER 1 Management is the process of working with and through others to achieve organizational objectives in a changing environment.

t. Management entails the effective and efficient use of limited resources.

Management is a social process in which managers get things done by working with and through others. Shortcomings of derailed managers !roblems with interpersonal relationships "ailure to meet business objectives "ailure to build and lead a team #nability to change and adapt during a transition $ffectiveness $ntails promptly achieving a stated organizational objective Managers are held responsible for attaining objectives. $fficiency $ntails balancing the amount of resources used to achieve an objective against what was actually accomplished Managers must not waste scarce and costly resources.

FUNCTIONS IN THE MANAGEMENT PROCESS !lanning

"ormulating plans and setting objectives to provide direction for future courses of action by the organization %ecision Making &hoosing among the alternative courses of action 'rganizing %eciding on the human resources structure of the organization Staffing (ecruiting) training) and developing people who can contribute to the organization &ommunicating !roviding information) direction) and feedback Motivating !roviding meaningful work and valued rewards to individuals pursuing collective objectives *eading Serving as role models and adapting management styles as the situation demands &ontrolling &omparing desired results with actual results and taking corrective action as needed

WILSONS MANAGERIAL SKILLS Skill category+ Technical: applying your education) training and e,perience to effectively organize a task) job or project. Skills+ Technical expe !i"e: skills you have ac-uired by education and e,perience. to understand and communicate key technical details. Cla i#ica!i$n $# %$al" an& $'(ec!i)e": your ability to organize or schedule the work of your unit so it is achieved when e,pected) and meets established standards. P $'le* "$l)in%: your ability to resolve issues you confront in the day/s work. to develop team collaboration in facing problems. I*a%ina!i$n an& c ea!i)i!+: you demonstrate an ability to originate ideas) to correct and develop ways to improve productivity. Skill category+ Tea*',il&in%: listening carefully and communicating clearly to develop and coordinate an effective group or team. Skills+ Li"!enin% #$ in"i%h!": keeping aware of activities of your team and units close to you. underpinning your ability to continue being a manager. -i ec!in% an& c$achin%: meeting your goals and standards. keeping your team/s skills up to target levels. S$l)in% p $'le*" a" !ea*": an important role is helping your team contribute ideas to improve their performance.

C$$ &ina!in% an& c$$pe a!in%: demonstrating a willingness to work with others+ your group) individuals) and units close to you.

Skill category+ - i)e: setting goals) maintaining standards) and evaluating performance to achieve effective outcomes involving costs) output) product -uality) and customer service. Skills+ S!an&a &" $# pe #$ *ance: your effort to keep your part of the organization moving) your willingness to be busy and keep aimed toward new accomplishments. C$n! $l $# &e!ail": overseeing the performance of work at a close level) to meet performance goals and standards. Ene %+: demonstrating to your team and colleagues a readiness and willingness to work and that you e,pect their cooperation. Exe !in% p e"", e: urging others to perform) by shaping your activity to be perceived as teamwork) not domination. Min!.'e % $n Mana%e " &haracteristics of 0ypical Managers 'verburdened with obligations &annot easily delegate tasks %riven to overwork "orced to do many tasks superficially 1ork pace characterized by brief interactions) fre-uent interruptions) and a high reliance on verbal communication

S$*e Mana%e ial Fac!" $# Li#e /0i!h N$ S,%a C$a!in%1 1hat Managers *ose the (ight to %o *ose their temper 2e one of the gang 2ring personal problems to work 3ent frustrations and e,press opinions at work (esist change !ass the buck on tough assignments 4et even with adversaries !lay favorites 1hat Managers *ose the (ight to %o 5cont/d6 !ut self7interests first 8sk others to do what they wouldn/t do $,pect to be immediately recognized and rewarded for doing a good job The H$ne+0ell S!,&+: H$0 Mana%e " Lea n !$ Mana%e

 Wha! I" a S*all 2,"ine""3 8n independently owned and managed profit7seeking enterprise with fewer than 9:: employees En! ep ene, "hip 0he process by which individuals either on their own or inside organizations pursue opportunities without regard to the resources they currently control

CHAPTER 4 Fa+$l published Administration Industrielle et Gnrale in 9;9<. =e divided a manager/s job into five functions+ !lanning 'rganizing &ommand &oordination &ontrol =e developed 9> universal principles of management. F e&e ic5 Ta+l$ =is ideas+ Specific worker roles 0ime ? motion studies (educe employee laziness Uni)e "al P $ce"" App $ach 8ssumes all organizations re-uire the same rational management process

&ore management process remains the same regardless of the purpose of the organization. 0he management process can be reduced to a set of separate functions and related principles.

The Ope a!i$nal App $ach "rederick 1. 0aylor/s Scientific Management 7 %eveloping performance standards on the basis of systematic observations and e,perimentation Standardization of work practices and methods to reduce waste and increase productivity 0ime and task study of workers/ efforts to ma,imize productivity and output Systematic selection and training of workers to increase efficiency and productivity %ifferential pay incentives based on established work standards The Phil$"$ph+ $# In&,"! ial H,*ani"* %ouglas Mc4regor %eveloped 0heory @ and 0heory A The$ + 6: Management/s traditionally negative view of employees as unmotivated and unwilling workers The$ + 7: 0he positive view of employees as energetic) creative) and willing workers

O %ani.a!i$nal 2eha)i$ 'rganizational 2ehavior

8 modern research7oriented approach seeking to discover the causes of work behavior and to develop better management techni-ues *essons from the 2ehavioral 8pproach !eople are the key to productivity. Success depends on motivated and skilled individuals committed to the organization. Managerial sensitivity to employees is necessary to foster the cooperation needed for high productivity.

The S+"!e*" App $ach 1hat #s a SystemB 8 collection of parts operating interdependently to achieve a common purpose Systems 8pproach !osits that the performance of the whole is greater than the sum of the performance of its parts 8nalytic versus synthetic thinking+ 'utside7in thinking versus inside7out thinking Seeks to identify all parts of an organized activity and how they interact Gene al S+"!e*" The$ + 4eneral Systems 0heory 8n interdisciplinary area of study based on the assumptions that everything is part of a larger) interdependent arrangement *evels of systems $ach system is a subsystem of the system above it. #dentification of systems at various levels helps translate abstract systems theory into more concrete terms. &losed 3ersus 'pen Systems &losed system+ 8 self7sufficient entity 'pen system+ Something that depends on its surrounding environment for survival Cew %irections in Systems 0hinking 'rganizational learning and knowledge management 'rganizations are living and thinking open systems that learn from e,perience and engage in comple, mental processes. &haos theory $very comple, system has a life of its own) with its own rule book. &omple, adaptive systems &omple, systems are self7organizing.

The C$n!in%enc+ App $ach &ontingency 8pproach

8 research effort to determine which managerial practices and techni-ues are appropriate in specific situations. 8n open7system perspective =ow subsystems combine to interact with outside systems 8 practical research orientation 0ranslating research findings into tools and situational refinements for more effective management 8 multivariate approach Many variables collectively account for variations in performance. *essons from the &ontingency 8pproach 8pproach emphasizes situational appropriateness rather than rigid adherence to universal principles 8pproach creates the impression that an organization is captive to its environment

CHAPTER 8 -e*$% aphic" 7 &hanges in the statistical profiles of population characteristics The ne0 "$cial c$n! ac! 7 &hanges in the employer7employee relationship Ine9,ali!ie" 7 !ersistent barriers encountered by women) minorities) and others in the workplace Mana%in% &i)e "i!+ 7 &reating organizational cultures that enable all employees to realize their potential In! ap ene, 7 8n employee who takes personal responsibility for pushing an innovative idea through a large organization The Inn$)a!i$n P $ce"" 7 0he systematic and practical application of a new idea

The Ec$n$*ic En)i $n*en! 2usiness cycles 8lternating periods of economic e,pansion and recession 0he up7and7down movement of an economy/s ability to generate wealth 1orldwide convergence

CHAPTER :

C,l!, al in!elli%ence /C;1: ability to interpret and act in appropriate ways in unfamiliar cultural surroundings E!hn$cen! ic A!!i!,&e 0he view that assumes the home country/s personnel and ways of doing things are best P$l+cen! ic A!!i!,&e 0he view that assumes local managers in host countries know best how to run their own operations Ge$cen! ic A!!i!,&e 8 world7oriented view that draws upon the best talent from around the world The In!e na!i$nali.a!i$n P $ce"" Stage 9+ *icensing 8uthorizing companies in foreign countries to produce andDor market a given product within a specified territory in return for a fee Stage E+ $,porting 4oods produced in one country are sold to customers in foreign countries. Stage F+ *ocal warehousing and selling 4oods produced in one country are shipped to the parent company/s storage and marketing facilities located in overseas countries. Stage >+ *ocal 8ssembly and !ackaging &omponents) rather than finished products) are shipped to company7owned foreign facilities for final assembly and sales. Stage G+ Hoint 3entures 5also Strategic 8lliances or Strategic !artnerships6 8 company in one country pools its resources with another foreign company or companies to create and market products and jointly share profits and losses. Stage <+ %irect "oreign #nvestment 0he production and marketing of products through a wholly owned subsidiary in a foreign country #nvolves cross7border mergers The C,l!, al I*pe a!i)e &ulture 8 population/s taken7for7granted assumptions) values) beliefs) and symbols that foster patterned behavior Societal culture Corms) values) attitudes) role e,pectations) taboos) symbols) heroes) beliefs) morals) customs) and rituals 8re I.S. &orporations 0urning the 1orld into a Single 8mericanized &ultureB &ultural roots run deep) have profound effects on behavior) and are not easily altered. Pe "$n an& C,l!, e

Specific to individual
PERSONALITY

Inherited and learned

Specific to group or category

CULTURE

Learned

Universal

HUMAN NATURE

Inherited

H$#"!e&e<" C,l!, al -i*en"i$n" surveyed #2M employees in GF countries from 9;<J to 9;JK. Culture by Geert Hofstede: the collective programming of the human mind that distinguishes the members of one human group from those of another.

Individualism Low Power Distance Achievement riented !"asculinit#$ Low %ncertaint# Avoidance

Collectivism High Power Distance Nurturing Oriented (Femininity High !ncertainty "voidance

In&i)i&,ali"* = C$llec!i)i"*

 Individualism emphasizes pursuit of individual goals) needs) and success. &ollectivism emphasizes group need) satisfaction) and performance. P$0e -i"!ance 0he degree to which members of a society accept differences in power and status among themselves. =igh power distance+ those that allow ine-ualities to grow over time into ine-uality of wealth and power. *ow power distance+ those that play down these ine-ualities Unce !ain!+ A)$i&ance 0he degree to which people are comfortable with ambiguous situations) and with the inability to predict future events with accuracy. Ma"c,lini!+ = Fe*inini!+ =igh masculinit# in a culture designates assertiveness) dominance) and interdependence. =igh femininit# in a culture designates inter7dependence) compassion) and emotional opinions. H$#"!e&e<" a&&e& !he #i#!h &i*en"i$n

A-LER N>

Phase1 Domestic firms

Phase2 Multidomestic firms

Phase3 Multinational firms

Phase4 Global firms

Wha! i" c,l!, e3 &ollective ways of acting) thinking) and feeling+ collective programming of the mind distinguishing the members of one group or category of people from another =ofstede 4eert Na!i$nal c,l!, e: collective programming of mind distin-uishig the members of one nation from another C $""?c,l!, al *ana%e*en! e,plains the behavior of people in organizations around the world and shows people how to work in organizations with employees and client population from many different cultures. C $""?C,l!, al T ainin% 8 guided e,perience that helps people live and work in foreign cultures Hi%h?C$n!ex! C,l!, e" &ultures in which nonverbal and situational messages convey primary meaning 7 Status of an individual is of tantamount importance in determining relationships. L$0?C$n!ex! C,l!, e" &ultures in which words convey primary meaning 7 Converbal messages are secondary to spoken words. 7 0he terms of the deal are more important than building a business relationship. Ti*e Monochronic time+ 8 perception of time as a straight line broken into standard units 0imely arrivals and keeping appointments are considered important. !olychronic time+ 8 perception of time as fle,ible) elastic) and multidimensional 8ppointment schedules are considered appro,imations and are not kept precisely. #n the GLO2E study) the charismaticDvalue7based and team7oriented leadership styles were found to be widely applicable. 0he self7protective leadership style was not acceptable in any culture.

CHAPTER @ C$ p$ a!e S$cial Re"p$n"i'ili!+ /CSR1 0he idea that business has+ Social obligations above and beyond making a profit Social obligations to constituent groups in society other than stockholders and beyond that prescribed by law. 'rganizations include financial) environmental) and social responsibility in their core business strategies. S$cial Re"p$n"i'ili!+ S! a!e%ie" (eactive Strategy %enying responsibility while striving to maintain the status -uo by resisting change %efensive Strategy (esisting additional social responsibilities with legal and public relations tactics 8ccommodation Strategy 8ssuming social responsibility only in response to pressure from interest groups or the government !roactive Strategy 0aking the initiative in formulating and putting in place new programs that serve as role models for industry The S$ci$ec$n$*ic M$&el 2usiness has an obligation to meet the needs of the many groups in society besides stockholders in its pursuit of profit. S!a5eh$l&e a,&i!: Systematically identifying all the parties that could possibly be affected by the company/s performance

CHAPTER A Plannin% &oping with uncertainty by formulating courses of action to achieve specified results. A Plan: #s a specific documented intention consisting of an objective 5end6 and an action statement 5means6 States what) when) and how something is to be done E""en!ial" $# S$,n& Plannin% 'rganizational mission 0ypes of planning 'bjectives !riorities 0he planningDcontrol cycle

O %ani.a!i$nal Mi""i$n 8 clear) formally written) and publicized statement that guides the organization by+ %efining the organization for key stakeholders &reating an inspiring vision of the organization 'utlining how the vision will be accomplished $stablishing key priorities Stating a common goal and fostering togetherness &reating a philosophical anchor for the organization 4enerating enthusiasm and a can do attitude $mpowering organization members T+pe" $# Plannin% Strategic planning+ %etermining how to pursue long7term goals with available resources #ntermediate planning+ %etermining subunits/ contribution with allocated resources 'perational planning+ %etermining how to accomplish specific tasks with available resources Plannin% H$ i.$n 0he elapsed time between the formulation and the e,ecution of a planned activity !lanning horizon length corresponds to the type of plan with which it is associated. lengths shorten as the planning process evolves from strategic to intermediate to operational plans.

O'(ec!i)e" 8n objective is a commitment to achieve a measurable result within a specified period.

1riting 4ood 'bjectives 'bjectives should be e,pressed in -uantitative) measurable) and concrete terms. 1hat specific result is to be achievedB 1hen is the result to be achievedB =ow is the result to be measuredB 1ho will be responsible for achieving the resultB 0he #mportance of 'bjectives 5Ises of6 0arget+ Sets specific goals to achieve Measuring stick+ 4auges how much was achieved &ommitment+ $ncourages pursuit of the objective Motivation+ !rovides a challenge for achievement 0he Means7$nds &hain of 'bjectives 8chievement of lower7level objectives creates a means for achieving higher7level objectives.

P i$ i!ie" !riorities are a ranking of goals) objectives) or activities in order of importance to guide the order and timing of decisions. Management looks at its priorities when deciding how to allocate resources. Mana%e*en! '+ O'(ec!i)e" an& P $(ec! Plannin% Management by 'bjectives 5!eter %rucker6 8 comprehensive management system based on measurable) participatively set objectives 0he M2' &ycle Step 9+ Setting objectives Step E+ %eveloping action plans Step F+ !eriodic review Step >+ !erformance appraisal P $(ec! Plannin% an& Mana%e*en! !roject 8 temporary endeavor to achieve a particular aim 0he !roject *ife &ycle &onceptualization+ Setting project goals and objectives !lanning+ 'rganizing facilities and e-uipment) personnel and task assignments) and scheduling $,ecution+ 2eginning actual work on the project 0ermination+ 0urning the project over to the end user and phasing out project resources G aphic Plannin%BSche&,lin%BC$n! $l T$$l" Fl$0 Cha !" 8rrange events in the order of their actual or desired occurrence 5flow6

$liminate wasted steps and activities 5work simplification6 8re useful for identifying task components and in 0LM !otential problems+ 0hey do not indicate the time dimension of tasks. 0hey are not practical for comple, operations where several activities occur at once. P $(ec! Mana%e*en! G,i&eline" !rojects are schedule7driven and results7oriented. 0he big picture and the little details are of e-ual importance. !roject planning is a necessity) not a lu,ury. !roject managers know the motivational power of a deadline.

2 ea5?E)en P$in! 0he level of sales at which there is no loss or profit 0he point at which the total of fi,ed and variable costs is e-ual to total sales revenues CHAPTER C S! a!e%ic Mana%e*en! 0he ongoing process of ensuring a competitively superior fit between an organization and its changing environment #ncludes budget control) long7range planning) and strategic planning Merges strategic planning) implementation) and control to create a dynamic process (e-uires every employee to consider the big picture #nvolves strategy innovation in rethinking the basis for competition 5business model6 in the industry Strategy 8n integrated e,ternally oriented perception of how to achieve the organization/s mission Strategic !lanning 0he process of determining how to pursue the organization/s long7term goals with resources e,pected to be available

P$ !e " Gene ic C$*pe!i!i)e S! a!e%ie" Model/s &ompetitive 3ariables &ompetitive advantage+ =ow to compete in a market &ompetitive scope+ =ow broad of a market to target &ost *eadership Strategy =aving the lowest overall cost in a market to provide a competitive advantage in pricing over competitors %ifferentiation Strategy

!roviding uni-ue and superior value for the customer that builds brand loyalty &ost "ocus Strategy 8ttempting to gain a competitive edge in a narrow 5or regional6 market segment by controlling 5competitively dominating6 the segment "ocused %ifferentiation 8chieving a competitive edge by delivering a superior product andDor service to a limited audience

2,"ine"" Ec$"+"!e*" 2usiness $cosystem 8 business ecosystem is an economic community of organizations and all their stakeholders) including suppliers and customers. 'rganizations need to be as good at cooperating as they are at competing if they are to succeed. &oevolving+ Mey organizations selectively cooperate and compete to achieve both their individual and collective goals) which they could not achieve on their own. 4reater strategic cooperation is needed to foster the the spread of realized innovation. E?2,"ine"" S! a!e%ie" #$ !he In!e ne! #nternet Strategy *essons 0he #nternet is not static. #nternet technologies are still emerging. &orporate strategist and entrepreneurs are challenged to build business models based on where they e,pect these technologies to be @ years down the road. 0here is no one7size7fits7all #nternet strategy. #nternet Strategy *essons 5cont/d6 &ustomer loyalty is built with reliable brand names and sticky web sites. 2ricks and clicks+ 2lending the best of two worlds $7business partnering should not dilute strategic control or ethical standards.

The S! a!e%ic Mana%e*en! P $ce"" "our Steps in the Strategic Management !rocess "ormulation of a grand strategy "ormulation of strategic plans #mplementation of strategic plans Strategic control

G an& S! a!e%+ 8 general e,planation of how the organization/s mission is to be accomplished

Situational 8nalysis "inding the organization/s niche by performing a S1'0 5Strengths) 1eaknesses) 'pportunities) and 0hreats6 analysis to match unfolding opportunities with resources being ac-uired &apability profile+ #dentifying the organization/s strengths and weaknesses 0he need for speed Speed has become an important competitive advantage. Speed involves more than just doing the same old things faster. (eengineering+ (adically redesigning the entire business cycle for greater strategic speed

F$ eca"!in% "orecasts !redictions) projections) or estimates of future situations 0ypes of "orecasts $vent outcome forecasts+ !redictions of the outcome 5effects6 of highly probable future events $vent timing forecasts+ !redictions of when a given event will occur 0ime series forecasts+ $stimates of future values in a statistical se-uence 5e.g.) sales forecast6

CHAPTER D -eci"i$n Ma5in% %ecision making is the process of identifying and choosing alternative courses of action to meet the demands of a situation. Hudgment and discretion are fundamental to decision making. T+pe" /C$n&i!i$n"1 $# Unce !ain!+ Ce !ain!+: $,ists when a solid factual basis allows prediction of a decision/s outcome (isk+ $,ists when a decision is made on the basis of incomplete but reliable information

 'bjective probabilities are based on reliable data. Subjective probabilities are based on judgment. Unce !ain!+: $,ists when no reliable data e,ist on which to base a decision T+pe" $# -eci"i$n" !rogrammed decisions+ repetitive and routine decisions Conprogrammed decisions 7 decisions made in comple, and nonroutine situations (ational 5*ogical6 %ecision Model Steps o Scan the situation. identify a signal that a decision should be made. (eceipt of authoritative communications from superiors &ases referred for decision by subordinates &ases originating from the manager o &lassify the decision. #f it is routine) apply the appropriate decision rule. if it is not) generate a nonprogrammed decision through problem solving. o Monitor and follow7up as necessary. Kn$0le&%e Mana%e*en! o %eveloping a system to improve the creation and sharing of knowledge critical for decision making o Taci! 5n$0le&%e: !ersonal) intuitive) and undocumented private information o Explici! 5n$0le&%e: (eadily sharable public information in verbal) te,tual) visual) or numerical form C$lla'$ a!i)e C$*p,!in% 0eaming up to make decisions via a computer network programmed with groupware

Wha! I" C ea!i)i!+3 0he reorganization of e,perience into new configurations &reativity is a function of knowledge) imagination) and evaluation. 0hree domains of creativity+ 8rt %iscovery =umor P $'le* "$l)in% !roblem solving is the conscious process of bringing the actual situation closer to the desired situation. Steps in &reative !roblem Solving #dentifying the problem

4enerating alternative solutions Selecting a solution #mplementing and evaluating #dentifying the !roblem 1hat is a problemB %efined by the gap between the actual and the desired state of affairs