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Dave Swanston

CHAPTER 1- MANAGEMENT Management- the art of getting things done through people. The Functions of management: 1. Planning and Strategizing- planning: a formal process whereby managers choose goals, identify actions to attain those goals, allocate responsibility for implementing actions to specific individuals or units, measure the success of actions by comparing actual results against the goals, and revise plans accordingly. Strategy: an action that managers take to attain the goals of an organization. Strategizing: The process of thinking through on a continual basis what strategies an organization should pursue to attain its goals. 2. Organizing- The process of deciding who within an organization will perform what tasks, where decisions will be made, who reports to whom, and how different parts of the organization will coordinate their activities to pursue a common goal. 3. Controlling- The process of monitoring performance against goals, intervening when goals are not met, and taking corrective action. 4. Leading and Development- leading: the process of motivating, influencing, and directing others in the organization to work productively in pursuit of organization goals. Developing employees: the task of hiring, training, mentoring, and rewarding employees in an organization, including other managers. Leading and developing employees are in many ways the core connection among planning and strategizing, organizing, controlling, and creating incentives. Skilled leaders •Drive strategic thinking (strategizing) deep within the organization while articulating their own vision for the organization. •Have a plan for their organization and push others to develop plans. •Structure the organization proactively to implement their chosen strategy. •Exercise control with a deft hand, never seeming too overbearing or demanding, while at the same time never taking their eyes off the ball. •Put the right kinds of incentives in place. •Get the best out of people by persuading them that a task is worthy of their effort. •Build a high-quality team of other managers and employees through which they can work to get things done. Without skilled leaders strategy may fail. The organization may become bureaucratic; control may be lost; employees will lack incentives and motivation; and the organization may suffer insufficient human capital. Human Capital- The knowledge, skills, and capabilities embedded in individuals. Incentives Afactor, monetary or nonmonetary, that motivates individuals to pursue a particular course of action. Types of Managers: Managers are found at multiple levels in an organization. They may lead an entire organization, or they may head functions, departments, or units. There are three main types of managers: general managers, functional managers, and frontline managers. General managers are responsible for the overall performance of an organization or one of its major self-contained subunits or divisions. Functional managers lead a particular function or a subunit within a function. They are responsible for a task, activity, or operation such as accounting, marketing, sales, R&D, production, information technology, or logistics. Frontline managers manage employees who are themselves not managers. They are found at the lowest level of the management hierarchy. Corporate-Level General Managers: The principal general manager at the corporate level is the chief executive officer (CEO), who leads the entire enterprise. In a multidivisional enterprise the CEO formulates strategies that span businesses deciding, for example, whether to enter new businesses through acquisitions or whether to exit a business area. The CEO decides how the enterprise should be organized into different divisions and signs off on major strategic initiatives proposed by the heads of divisions. The CEO exercises control over divisions, monitoring their performance and deciding what incentives to give divisional heads. Finally, the CEO helps develop the human capital of the enterprise. The CEO of a corporation also manages relationships with the people who own the company, its shareholders. The CEO reports to the board of directors, whose primary function is to make sure the strategy of the company is consistent with the best interests of shareholders. Business Level Corporate Managers: business-level general managers head the different divisions. Business-level general managers lead their divisions motivating, influencing, and directing their subordinates and are responsible for divisional performance. Business-level general managers translate the overall strategic vision for the corporation into concrete strategies and plans for their units. Business-level general managers organize operations within their division, deciding how best to divide tasks into functions and departments and how to coordinate those subunits so that strategy can be successfully implemented. Business-level general managers also control activities within their divisions, monitoring performance against goals, intervening to take corrective action when necessary, and developing human capital. Managerial Roles: • are specific behaviours associated with the task of management. • Managers adopt these roles to accomplish the basic functions of management just discussed—planning and strategizing, organizing, controlling, and leading and developing employees. Interpersonal roles: are roles that involve interacting with other people inside and outside the organization. Management jobs are people- intensive: Research suggests that managers spend somewhere between 66 and 80 percent of their time in the company of others.19 Seldom do managers work alone for long periods without outside communication. Informational roles: are concerned with collecting, processing, and disseminating information. Managers collect information from various sources both inside and outside the organization, process that information, and distribute it to others who need it Competencies: To fulfill the roles that were just described, managers need to have the “right stuff.” They must possess several competencies—skills, values, and motivational preferences—that allow them to perform their jobs effectively and become proficient at planning and strategizing, organizing, controlling, developing, and leading. Managerial Skills: conceptual skill: the ability to see the “big picture,” to understand how the various parts of the organization affect each other, and to conceptualize how those parts can be organized to improve the performance of the overall organization. In other words, conceptual skills are the foundation for strategizing and organizing. Technical skills : enable managers to perform specific activities involving methods, processes, or techniques. The human skills that managers need include the abilities to communicate, persuade, manage conflict, motivate, coach, negotiate, and lead. Effective managers understand the needs of their subordinates and act on this knowledge to improve employee well-being while also achieving organizational objectives. Human skills include working with other units, not just with employees within the manager’s own unit. In other words, successful managers use their human skills to reconcile the needs and goals of their own team members with people in other work units, as well as with the needs of customers, suppliers, and others outside the organization. Managerial values: Another important characteristic of successful managers is the values they hold and the strength of those values. Values: Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. enacted values:Values that actually guide behaviour. espoused values: What people say is important to them. shared values: Values held in common by several people Managerial Motivation: • Along with the right combination of managerial skills and values, truly great managers also possess needs that motivate them to manage others effectively. Desire to Compete for Management Jobs • Managers are more successful when they are motivated to compete for their jobs. Even in collegial firms, managers vie for promotion to positions farther up the hierarchy. Desire to Exercise Power • Successful managers are motivated to seek power. However, they don’t want this power for personal gain or for the thrill they might experience from wielding power over others (called personalized power orientation). • good managers have a socialized power orientation. They do not seek power for its own sake; rather, they accumulate power to accomplish organizational objectives. personalized power orientation-Seeking power for personal gain. socialized power orientation Accumulating power to achieve social or organizational objectives. Desire to Be Distinct or Different • Successful managers need to be or at least feel comfortable being—different from the people they lead. • managers need to broker the interests of many stakeholders, so the need to be distinct or different from others allows them to act neutrally. • effective managers have a moderately low need for affiliation—they have less concern about being liked and are less sensitive to the pressure others impose to conform to their wishes. • managers need to take centre stage to communicate and sym-bolize the organization’s or work unit’s future direction. • Employees look to managers as guides and role models of future behaviour. • Managers who feel uncomfortable with standing out from the group have difficulty leading people in new directions. Desire to Take Action • One of the most important challenges for managers is to create momentum motivating employees (as well as suppliers and other stakeholders) to achieve the organization’s ambitions for the future. Stakeholders and Stakeholders Management • Astakeholder is an individual, institution, or community that has a stake in the opera- tions of an organization and in how it does business. • Stakeholders include those who regularly transact directly with the organization, most notably employees, customers, sup- pliers, distributors, shareholders, and creditors. • Stakeholders also include institutions that are more remote but still have a stake in how the organization operates and does business, including government, local communities, and the general public. Stakeholders and the organization: • All stakeholders are in an exchange relationship with an organization. • Each stakeholder group supplies the organization with important resources and in exchange each expects its interests to be satisfied. • Employees provide labour and skills and expect commensurate income, job satisfaction, job security, and good working conditions. • Customers provide revenues and want reliable products that represent value for money. • Suppliers provide inputs to the organization and seek prompt payment and dependable buyers. • Distributors help sell an organization’s output, and in return they seek favourable payment terms and products that will sell well. Shareholders provide a corporation with risk capital. • They are also its legal owners. In exchange they expect management to maximize the return on their investment in the corporation. • Creditors such as bondholders provide the organization with capital in the form of debt, and they expect to be repaid on time with interest. • Governments provide an organization with rules and regulations that govern business practice and maintain fair competiti
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