CHAPTER 4: PLANNING

Definition
- Primary management function because it establishes the basis
for all other things managers do
- Concerned with ends (what is to be done) as well as means
(how its to be done)
Managers should plan for at least four reasons
- planning establishes coordinated effort
- planning reduces uncertainty
- planning reduces overlapping and wasteful activities
- planning establishes the goals or standards that facilitate control

*STRATEGIC MANAGEMENT PROCESS

Step 1: Identify current mission, goals and strategies
Step 2: External analysis (SWOT)
Step 3: Internal analysis (SWOT)
Step 4: Formulate strategies
Step 5: Implementing strategies
Step 6: Evaluate results

SWOT
- The combined external and internal analyses
- Strength/weakness (Inner)
- Opportunities
Positive trends in the external environment
- Threats
Negative trends in the external environment

TYPES OF STRATS
1. Corporate Strat
- specifies what businesses a company is in or wants to be in and
what it wants to do with those businesses
- The three main types of corporate strategies are growth,
stability, and renewal
2. GROWTH STRAT
- organization expands the number of markets served or products
offered either through its current business(es) or through new
business(es).
include:
1. Concentration:
focuses on its primary line of business and increases the number
of products offered or markets served in this primary business
2. Vertical Integration
In backward vertical integration, the organization becomes its own
supplier so it
can control its inputs.
In forward vertical integration, the organization becomes its own
distributor and is able to control its outputs
3. Horizontal Integration
combining with competitors
4. Diversification
Related diversification happens when a company combines with
other companies in different, but related, industries.
Unrelated diversification is when a company combines with firms
in
different and unrelated industries

3. OTHER STRATS
- STability strat: continues what its doing
- Renewal strat: Address declining org. perf
- Competitive strat: How an org will compete
- Strategic Business units (SBUs): An organization’s single
businesses that are independent and formulate their own
competitive strategy

COMPETITIVE STRATS
- Cost Leadership Strategy
lowest costs in the industry
- Differentiation Strategy
unique products that are widely valued by customers
Focus Strategy
a narrow segment or niche with either a cost focus or a
differentiation focus

TYPES OF PLANS
- Breadth (strategic versus tactical)
- time frame (long term versus short term),
- specificity (directional versus specific), and frequency of use
(single use versus standing).

- Single-use Plan
A one-time plan specifically designed to meet the needs of a
unique situation
- Standing Plans
Plans that are ongoing and provide guidance for activities
performed repeatedly

ENTREPRENEURSHIP
- The process of starting new businesses, generally in response
to opportunities
- Must have proactive personality

CHAPTER 6: ORG STRUCTURE AND CULTURE

DEPARTMENTALIZATION
- Departmentalization
How jobs are grouped together
- Functional Departmentalization
Grouping activities by functions performed
- Product Departmentalization
Grouping activities by major product areas
- Customer Departmentalization
Grouping activities by customer
- Geographic Departmentalization
Grouping activities on the basis of geography or territory
- Process Departmentalization
Grouping activities on the basis of work or customer flow
- Cross-functional Teams
Teams made up of individuals from various departments and that
cross traditional departmental lines

SPAN OF CONTROL
The number of employees a manager can efficiently and
effectively supervise

FORMALIZATION
- How standardized an organization’s jobs are and the extent to
which employee behavior is guided by rules and procedures
- Centralization
The degree to which decision making takes place at upper levels
of the organization
- Decentralization
The degree to which lower-level managers provide input or
actually make decisions

TECHNOLOGY AFFECT STRUCTURE

Unit Production
- The production of items in units or small batches
Mass Production
- Large-batch manufacturing
Process Production
- Continuous flow of products being produced

SIMPLE STRUCTURE
An organizational design with low departmentalization, wide
spans of control, authority centralized in a single person, and little
formalization
+ Strength: Fast, flexible, inexpensive to maintain, clear
accountability
+ Weakness: Not appropriate as org grows. One person reliance
is risky

FUNCTIONAL STRUCTURE
groups similar or related occupational specialties together
- Strengths: Cost-saving advantages from specialization
(economies of scale, minimal duplication of people and
equipment); employees are grouped with others who have similar
tasks.
- Weaknesses: Pursuit of functional goals can cause managers to
lose sight of what's best for the overall organization; functional
specialists become insulated and have little understanding of
what other units are doing.

DIVISIONAL STRUCTURE
made up of separate business units or divisions
- Strengths: Focuses on results-division managers are
responsible for what happens to their products and services.
- Weaknesses: Duplication of activities and resources increases
costs and reduces efficiency.

TEAM STRUCTURE
entire organization is made up of work groups or teams.
+ Strength: Employees are more involved and empowered.
Reduced barriers among functional areas.
+ W: No clear chain of command. Pressure on teams to perform.

MATRIX-PROJECT STRUCTURE
Matrix is structure that assigns specialists from different functional
areas to work on projects but who return to their areas when the
project is completed.
Project is a structure in which employees continuously work on
projects. As one project is completed, employees move on to the
next project
+S: Fluid and flexible design that can respond to environmental
changes. Faster decision making.
+W: Complexity of assigning people to projects. Task and
personality conflicts.
BOUNDARYLESS STRUCTURE
A structure that is not defined by or limited to artificial horizontal,
vertical, or external boundaries; includes virtual and network types
of organizations.
+ S: Highly flexible and responsive. Utilizes talent wherever it's
found.
+ W: Lack of control. Communication difficulties.
Complexity of assigning people to projects. Task and personality
conflicts.

ORG CULTURE
The shared values, principles, traditions, and ways of doing things
that influence the way organizational members act

ASA FRAMEWORK
Attraction
Selection
Attrition

CHAPTER 7: LEADERSHIP&TRUST

TRAITS GREAT LEADER

Drive, Desire to lead, Honesty and integrity, self-confidence,
intelligence, job-relevant knowledge, extraversion

LEADERSHIP BEHAVIORS
Autocratic Style
- A leader who centralizes authority, dictates work methods,
makes unilateral decisions, and limits employee participation
Democratic Style
- A leader who involves employees in decision making, delegates
authority, encourages participation in deciding work methods, and
uses feedback to coach employees

Laissez-Faire Style
- A leader who generally gives employees complete freedom to
make decisions and to complete their work however they see fit

MANAGERIAL GRID
A two-dimensional grid for appraising leadership styles based on

Identified five styles for management

- impoverished management
- task management
- middle-of-the-road management
- country club
- team management

READINESS LEVEL
R1: People are both unable and unwilling to take responsibility for
doing something. Followers aren’t competent or confident.
R2: People are unable but willing to do the necessary job tasks.
Followers are motivated but lack the appropriate skills.
R3: People are able but unwilling to do what the leader wants.
Followers are competent, but don’t want to do something.
R4: People are both able and willing to do what is asked of them

FOUR SITUATIONAL STYLES

Telling (high task–low relationship)
- The leader defines roles and tells people what, how, when, and
where to do various tasks
Selling (high task–high relationship)
- The leader provides both directive and supportive behavior
Participating (low task–high relationship)
- The leader and followers share in decision making; the main role
of the leader is facilitating and communicating
Delegating (low task–low relationship)
- The leader provides little direction or support

Credibility
The degree to which followers perceive someone as honest,
competent, and able to inspire
Trust
The belief in the integrity, character, and ability of a leader

CHAPTER 8: MOTIVATING AND REWARDING

Motivation?
- The process by which a person’s efforts are energized, directed,
and sustained toward attaining a goal
- Individuals differ in motivational drive
- Overall motivation varies from situation to situation

This definition has three key elements:

1. Energy - a measure of intensity or drive.
2. Direction - effort channeled in a direction that benefits the
organization.
3. Persistence - when employees persist in putting forth effort to
achieve those goals.
MASLOWS HIERARCHY OF NEEDS
1. Physiological needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self-actualization needs

McGregor’s Theory X and Theory Y?

two assumptions about human nature:
* Theory X
The assumption that employees dislike work, are lazy, avoid
responsibility, and must be coerced to work
* Theory Y
The assumption that employees are creative, enjoy work, seek
responsibility, and can exercise self-direction

Herzberg’s Two-Factor Theory

- Intrinsic factors are related to job satisfaction
- Extrinsic factors are associated with job dissatisfaction
* Hygiene Factors
Factors that eliminate job dissatisfaction but don’t motivate.
* Motivators
Factors that increase job satisfaction and motivation

Equity Theory
The theory that an employee compares his or her job’s
input-outcomes ratio with that of relevant others and then corrects
any inequity
Referent
The persons, systems, or selves against which individuals
compare themselves to assess equity

Expectancy Theory on motivation

An individual tends to act in a certain way, based on:
- the expectation that the act will be followed by a given outcome
- the attractiveness of that outcome to the individual

MOTIVATE DIVERSE WORKFORCE

1. Compressed Workweek
A workweek in which employees work longer hours per day but
fewer days per week
2. Flexible Work Hours (flextime)
A scheduling system in which employees are required to work a
certain number of hours per week but are free, within limits, to
vary the hours of work
3. Job Sharing
When two or more people split (share) a fulltime job
4. Telecommuting
A job approach in which employees work at home but are linked
by technology to the workplace

REWARD PROGRAMS
1. Open-Book Management
An organization’s financial statements are shared with all
employees
2. Employee Recognition Programs
Programs that consist of personal attention and expressions of
interest, approval, and appreciation for a job well done
3. Pay-for-Performance Programs
Variable compensation plans that pay employees on the basis of
some performance measurement

CHAP 9: CONTROL
Control Process
A three-step process of measuring actual performance,
comparing actual performance against a standard, and taking
managerial action to correct deviations or to address inadequate
standards

Four common sources of information frequently used to measure

actual performance are
- personal observation
- statistical reports
- oral reports
- written reports

Management By Walking Around (MBWA)

When a manager is out in the work area interacting with
employees

MANAGEMENT ACTION
1. Immediate Corrective Action
Corrective action that addresses problems at once to get
performance back on track
2. Basic Corrective Action
Corrective action that looks at how and why performance deviated
before correcting the source of deviation
WHEN CONTROL
1. Feedforward Control
Control that takes place before a work activity is done
2. Concurrent Control
Control that takes place while a work activity is in progress
3. Feedback Control
Control that takes place after a work activity is done

INFORMATION CONTROL
Managers deal with information controls in two ways:
1. as a tool to help them control other organizational activities
2. as an organizational area they need to control

Management Information System (MIS)

A system used to provide management with needed information
on a regular basis