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based approach)
The managerial effectiveness refers to man`s use of organizational resources in meeting organizational goals.
The managerial efficiency is the proportion of total organizational resources that contribute to productivity.
a. Inefficient – small proportion of total resources contribution
b. Efficient – large proportion of total resource contribution
An ability to explain and illustrate the transformation model
Transformation of organizational resources into finished products through the process of combining and using
resources as well as designing and assigning activities.
- An appreciation for the work of Frederick W. Taylor, Frank and Lillian Gilbreth, and Henri
Fayol
- An understanding of the studies at the Hawthorne Works and the human relations
movement
A system is a number of interrelated and interdependent parts functioning as a whole for some purpose
Types of systems:
a. closed: does not interact with its environment, nor it is influenced by them
b. open: constantly interact with their environments
The firm viewed as a system: open, complex, dynamic, goal-oriented, market-oriented, partially
autonomous, structured, communicative, productive, social
Systems must be viewed as a whole and modified only through changes in its parts
Management system approach (triangular management) = classical approach + behavioral approach +
management science
Biological feature used as a basis for thinking about complex things such as systems
What does it mean to draw analogies (biology – organizations)
a. you focus on the whole and what it does and the context of the environment in which it does it and
despite which it remains in balance (dynamic rather than static view)
b. you look at what is going on as a system or indeed as a series of systems; you are using ideas about
interrelationships, purpose, adaptation, influence, and environment to help you construct mental models
or aspects of the situation; you are instead seeing how helpful it is to look at it as a system
c. you look for multiple causes rather than single causes for the things you observe, since organizations
seldom do interesting things for a single and simple reason
System: a set of parts that are interrelated to the extent that a part is changed by being part of the
systems and the system would change if that part were to be removed
Environment: those things outside the system that significantly affect it or are affected by it
Boundary: that which separates the system from its environment; rules for deciding whether something
is part of the system or not
Subsystem: a part of a system that can be seen as a system in its own right (notion of hierarchies)
Goal: the desired outcome or state for the system whether ongoing/final; control is exercised in order to
achieve or maintain the goal state
- An understanding of the contingency approach to management
What managers do in practice depends on, or is contingent upon, a given set of circumstances – a
situation
Attempts to outline the conditions or situations in which various management methods have the best
chance of being successful
Not one best way of solving a managerial problem in all organizations, but one best way for a certain
situation
Contingency variables: organization size, environmental uncertainty, technology requirements,
individual differences (culture)
If → then
Challenges
a. perceive organizational situations as they exist
b. choosing the main tasks best suited to these situations
c. competently implementing those tactics
An organization that does well in creating, acquiring, and transferring knowledge, and in modifying
behavior to new knowledge
An ability to identify, discuss and apply the main driving forces for internationalization and the
different modes of market entry
Exploit market opportunities in different countries: new markets, economies of scale, synergies, power
and prestige, tax opportunities, protect home market, etc.
Exploit production opportunities by establishing production activities where they can be conducted
most efficiently: additional resources (natural resources, technologies, personnel), lowered costs
(materials, labor, financing), incentives (from host or home governments).
Market entry:
a. exporting – a company supplies foreign demand from home production
b. acting through agents – hiring foreign representation or contracting with foreign manufacturers
c. licensing – a company grants the right on some intangible property to a foreign company for an
agreed compensation
d. franchising – a company grants the use of a trade mark or other essential asset to a foreign company
for an agreed compensation
e. joint ventures – two or more partners sharing in a project
f. FDI (foreign direct investment) – commitment of capital in a foreign location
An understanding of and the ability to explain and apply the dimensions of national culture
(Reading Hofstede)
- how society deals with the fact that people are unequal in physical/intellectual capabilities
- some let inequalities grow over time into inequalities in power and wealth
- others play down inequalities as much as possible
- no society has ever reached complete equality
- small to large power distance
- in organization: related to degree of centralization of authority and of autocratic leadership rooted in
the metal programming of the members of a society
- societies in which power is distributed unequally remain because the psychological need for
dependence of the people without power is satisfied
- autocracy exists as much in the members as in the leaders – the value system of the 2 groups are
usually complementary
- how society deals with the fact time runs only one way: we are all caught in the reality of past,
present, and future, and we have to live with uncertainty because the future is unknown and will always
be
- some society socialize their members into accepting in and not being upset about it, accept each day
as it comes, take risks easily, don`t work as hard, tolerant of different opinions and behavior because
they do not feel threatened – weak uncertainty avoidance, feel relatively secure
- other socialize their people to beat the future, high level of anxiety, greater nervousness and
aggressiveness – strong uncertainty avoidance, have institutions to create security and avoid risk
(technology vs. nature and war); ways of creating security: 1. laws – intolerance of deviations, 2.
Nominate experts, 3. Religion/ideologies – something bigger that transcends personal reality
Unless companies are ethical, they cannot be competitive in national or international markets
Productivity: employees are a major stakeholder group, affected by management practices; when
management acts ethically towards them, then they are positively affected which enhances productivity.
Stakeholder relations: a second area in which ethical management practices can enhance corporate
health by positively affecting “outside” stakeholders such as suppliers and customers (a positive public
image)
Government regulation: the third area in which ethical management practices can enhance corporate
health is in minimizing government regulation.
Managers can feel confident that a potential action will be considered ethical by the general public if it is
consistent with one or more of the following standards:
The golden rule: act in a way you`d expect others to act towards you
The utilitarian principle: act in a way that results in the greatest good for the greatest number of people
Kant`s categorical imperative: act in a way that the action taken under circumstances can be a universal
law
The professional ethic: take actions that would be viewed as proper by a disinterested panel of
professional peers
The TV test: take actions you would be comfortable to explain on the TV
The legal test: take legal actions only
The four way-test: take truthful, fair to all, goodwill, and beneficial to all actions
An understanding of how ethics can be incorporated into management practice through a code of
ethics
Managers can take responsibility for creating and sustaining conditions in which people are likely to
behave ethically, and minimizing conditions in which people might be tempted to behave unethically.
Six steps to effective implementation of a code of ethics:
1. distribute the code of ethics comprehensively to employees, subsidiaries, and associated companies
2. assist employees in interpreting and understanding the application and intent of the code
3. specify management`s role in the implementation of the code
4. inform employees of their responsibility to understand the code, and provide them with the overall
objectives of the code
5. establish grievance procedures
6. provide a conclusion or closing statement
An basic understanding of the basic principles underlying a best practice code of ethics (Reading
Paine)
An ability to define stakeholders, understand how they are identified evaluate their contributions
to and expectations from the organization and how to balance their interests
A stakeholder is any group or individual who can affect or is affected by the achievement of the firm`s
objectives
HILFE BITTE!!!
An ability to explain the factors used to identify and classify stakeholders (Reading Mitchell et al.)
HILFE BITTE!!!
Planning is the systematic development of action programs aimed at reaching agreed-upon business
objectives by the process of analyzing, evaluating, and selecting among opportunities that are foreseen.
It is the process of determining exactly what the organization will do accomplished its objectives
Purposes of planning
o Protective purpose: is to minimize risk by reducing the uncertainties surrounding business
conditions and clarifying the consequences of related management actions
o Affirmative purpose: is to increase the degree of organizational success
The fundamental purpose of planning is to help the organization reach its objectives.
According to Koontz and O’Donnel the primary purpose of planning is to facilitate the accomplishment
of enterprise and objectives. All other purposes of planning are spin-offs of this fundamental purpose.
Insights into how the major steps of the planning process are related
1. The decision makers: These are the individuals or groups who actually make the choice
between the alternatives.
According to Ernest Dale there are 4 types of weak decision makers:
a. Receptive orientation: believe that the source of all good is outside themselves, and
therefore they rely heavily on suggestions from other organization members.
Basically they want others to make their decisions for them
b. Exploitive orientation: also believe that the source of all good is outside themselves,
and they are willing to steal ideas as necessary to make good decisions. They build
their organizations on other’s ideas and typically hog all the credit, extending little or
none to the originators of the idea
c. Hoarding orientation: is characterized by the desire to preserve the status quo as much
as possible. Decision makers with this orientation accept little outside help, isolate
themselves from others, and are extremely self-reliant. They are obsessed with
maintaining their present position
d. Marketing oriented: decision makers look on themselves as commodities that are only
as valuable as the decisions they make. Thus they try to make decision that will
enhance their value, and they are highly conscious of what others think of their
decisions
2. Goals to be served: This involves goals that decision makers seek to attain. In case of
managers these goals are usual organizational objectives.
3. Relevant Alternatives: The decision situation is usually composed of at least two relevant
alternatives. A relevant alternative is one that is considered feasible for implementation and
also for solving an existing problem. Alternatives that will not solve an existing problem or can
not be implemented are irrelevant and should be excluded from the decision-making process
4. Ordering of alternatives: This requires a process or mechanism that ranks alternatives from
most desirable to least desirable. This process can be objective, subjective, or a combination of
the two.
5. Choice of alternatives: This is the actual choice between the available alternatives. This choice
establishes the decision. Typically managers choose the alternative that maximizes long-term
return for the organization
An appreciation for the various situations in which decisions are made and the appropriate strategies for
those situations
An understanding of the idea of and the ability to discuss the concept of the learning organization and
its building blocks (Reading Garvin)