GMS 200 Chapter Notes - Chapter 1,2,3,5,6,7,11,13,16: Homeostasis, High High
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Chapter 1: Introducing Management
What are the challenges of working in the new economy?
People and their talents – what they know, what they learn, and what they do with it – are the ultimate
foundations of organizational performance. Intellectual capital is the collective brainpower or shared
knowledge of a workforce than can be used to create value (Intellectual Capital = Competency x
Commitment). A knowledge worker is someone whose mind is a critical asset to employers and adds to the
intellectual capital of the organization.
Workforce diversity is the composition of a workforce in terms of differences among people whether it be
their gender, age, race, ethnicity, religion, sexual orientation or able-bodiedness. Prejudice, or the holding of
negative opinions and attitudes to a diversified population, sets the stage for diversity bias. A subtle form of
discrimination is called the glass ceiling effect – an invisible barrier or “ceiling” that prevents minorities from
rising above a certain level of organizational responsibility.
Globalization is the worldwide interdependence of resource flows, product markets, and business
competition that characterizes our new economy. It is a process in which improvements of technology
combine with the deregulation of markets to bring out flows of people, goods, services and money.
The forces of globalization ride on the foundation of the Internet and the growth of communication
technologies. Bar codes, automatic tellers, email, blogs, text messaging, online media and social networks are
some of the technologies driving the world.
Ethics is a code of moral principles that sets standards of what is “good” and “right” as opposed to “bad” and
The Shamrock Organization is an analogy to discuss career patterns characteristic of the new economy. The
three leaves of the shamrock structure include full time core workers, independent contractors and part time
temporaries. A portfolio worker is someone who always has the skills needed to readily shift jobs or even
What are organizations like in the new workplace?
An organization is a collection of people working together to achieve a common purpose. All organizations
share a broad purpose-providing goods or services of value to customers and clients. Organizations are open
systems, meaning it transforms resource inputs from the environment into product outputs. Productivity
measures the quantity and quality of outputs relative to the cost of inputs. Performance effectiveness is an
output measure of task or goal accomplishment (eg. meeting a daily target). Performance efficiency in an
input measure of the resource costs associated with goal accomplishment.
What is the makeup of the external environment of organizations and how is an organization linked to its
The general environment of organizations consists of all external conditions that set the context for managerial
decision-making. Forces that keep an organization in existence and help make important decisions include
economic (growth, unemployment rate), legal-political (laws, political trends), technological (Internet access,
IT systems), socio-cultural (population demographics, education system) and natural environment conditions
(recycling infrastructure, “green” values).
Managers must be concerned with economic conditions in the general environment, particularly those that
influence customer spending, resource supplies and investment capital. They must also understand the legal-
political conditions, as represented by existing and proposed laws and regulations, government policies, and the
philosophy and objectives of political parties. Internet censorship is the deliberate blockage and denial of
public access to information posted on the Internet. Also, not only should managers stay abreast of the latest
technologies for their work applications, they must also be aware of their work implications. The socio-cultural
conditions of a society or region take meaning as norms, customs, and social values on such matters such as
ethics, human rights, gender roles and lifestyles. They also include environmental trends in education and
related social institutions as well as demographic patterns. Lastly, when it comes to natural environment
conditions, there are public concerns for global warming, carbon emissions, and protection of the natural
environment. Sustainable businesses are firms that operate in ways that both meet the needs of customers
and protect or advance the well-being of our natural environment. Sustainable innovation creates new
products and production methods that have reduced environmental impact.
The specific environment consists of the actual organizations, groups and people with whom an organization
interacts and conducts business. Members of the specific environment are called stakeholders. Value creation
is an analysis of the extent to which the organization is creating value for and satisfying the needs of its
A competitive advantage refers to something that an organization does extremely well, a core competency
that clearly sets it apart from other competitors thus giving it an advantage over others in the marketplace.
Competitive advantage is linked with strategic positioning – helping one’s firm or organization do different
things or the same things in different ways from one’s major competitors. As mangers pursue competitive
advantage, decision making is often complicated by uncertainty. Environmental uncertainty means that there
is a lack of complete information regarding what exists and what development occurs.
Organizational effectiveness is sustainable high performance in using resources to accomplish a mission
and/or objective. The system resource approach looks at the input side and defines organizational effectiveness
in terms of success in acquiring needed resources from the environment. The internal process approach looks at
the transformation process and defines organizational effectiveness. The goal approach looks at the output side
and defines organizational effectiveness in terms of how to measure achievement of key operating objectives.
The strategic constituencies approach looks at the external environment and defines organizational effectiveness
in terms of the organization’s impact on stakeholders.
Who are managers and what do they do?
A manager is a person who supports, activates, supervises and is responsible for the work of others. They are
responsible for not just their own work but for the overall performance accomplishments of a team, work
group, department or sometimes, the entire organization.
3 Levels of Managers: Top managers are responsible for the performance of an organization as a whole or for
one of its larger parts (CEO, Pres., Vice Pres.). Middle managers report to top managers, and they are in
charge of relatively large departments or divisions consisting of several smaller units (division manager, plant
manager). A team leader or a supervisor is examples first line managers who are in charge of a small work
group composed of nonmanagerial workers.
Types of Managers: Line managers are responsible for work that makes a direct contribution to the
organization’s outputs. Staff managers use speial technical expertise to advise and support the efforts of line
workers. Functional managers have responsibility for a single area such as finance, marketing, production, HR
etc. General managers are responsible for activities covering many functional areas. Administrators are the
name for managers in nonprofit or public organizations.
Accountability is the requirement of one person to answer to a higher authority for performace results in his
or her area of work responsibility. Effective managers successfully help others achieve both high performance
and satisfaction in their work. Quality of work life is an indicator of the overall quality of human experiences
in the workplace. A high QWL offers fair pay, safe working conditions, opportunities for growth, etc.
The concept of the upside-down pyramid reflects the changing nature of managerial work today. Operating
workers are at the top, serving customers, while managers are at the bottom serving them.
What is the management process and how do you learn managerial skills and competencies?
The process of management involves planning, organizing, leading, and controlling the use of resources to
accomplish goals. Planning is the process of setting performance objectives and determining what actions
should be taken to accomplish them. Organizing is the process of assigning tasks, allocating resources, and
coordinating the activities of individuals and groups to implement plans. Leading is the process of arousing
people’s enthusiasm to work hard and inspiring their efforts to fulfill plans accomplish objectives. Controlling
is the process of measuring work performance, comparing results with objectives and taking corrective action
A manager’s informational roles involve the giving, receiving and analyzing of information. A manager is a
monitor, scanning for information, a disseminator, sharing information, and a spokesperson, acting as official
communicator. Through agenda setting, good managers develop action priorities that include goals and plans
spanning long term and short term frames.
Networking is the process of creating positive relationships with people who can help advance agendas.
Social capital is a capacity to get things done with support and help of others. Learning is a change in
behavior that results from experience. Lifelong learning is continuous learning from daily experiences. A skill
is the ability to translate knowledge into action that results in desired performance.
ESSENTIAL MANAGERIAL SKILLS
Conceptual skills – the ability to think analytically and achieve integrative problem solving
Human skills – the ability to work well in cooperation with other people (emotional intelligence is the ability
to manage ourselves and our relationships effectively)
Technical skills – the ability to apply expertise and perform a special task with proficiency
Managerial Competency – a skill based capability for high performance in a management job (this includes
teamwork, communication, self-management, leadership, critical thinking and