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Organizations. An organization is a collection of people brought together to accomplish a specific purpose. Three Common Characteristics A distinct purpose People or members Definite structure. Courtesy of U.S. Air Force. Organizations. Examples of organizations Your high school

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organizations
Organizations

An organization is a collection of people brought together to accomplish a specific purpose

Three Common Characteristics

  • A distinct purpose
  • People or members
  • Definite structure

Chapter 1 Lesson 1

Courtesy of U.S. Air Force

organizations1
Organizations

Examples of organizations

  • Your high school
  • Religious organizations
  • New England Patriots football team
  • Sprint corporation
  • Federal government
  • US Air Force

Chapter 1 Lesson 1

organizations2
Organizations

Chapter 1 Lesson 1

operatives
Operatives
  • Operatives are people who work directly on a job or task
  • They have no responsibility for overseeing others’ work

Managers

  • A manager is a person who directs the activities of other people in the organization
  • Managers supervise both operatives and lower-level managers
  • Managers may also work directly on tasks

Chapter 1 Lesson 1

Courtesy of Clipart.com

management classifications
Management Classifications
  • First-line managers direct the activities of operative employees
  • Middle managers serve in level between the first-line managers and the top management
  • Top managers make decisions about the organization’s direction and set policies

Examples:

Supervisors

Team Leaders

Coaches

Unit Coordinators

Chapter 1 Lesson 1

middle managers
Middle Managers

Top Managers

Department Head

Project Leader

District Manager

Division Manager

Directors

Dean

Bishop

Senior Managers

Presidents

Chief Executive Officers

Chief Financial Officers

Chief Operating Officers

Vice Presidents

Chapter 1 Lesson 1

Courtesy of Goodshoot Images

management
Management

Management is the process of getting things done, through and with other people, with efficiency and effectiveness

  • The process involves the main activities that managers perform
  • Efficiency is doing a task correctly using as few resources as possible
  • Effectiveness is doing the right task and reaching goals

Chapter 1 Lesson 1

efficiency and effectiveness

Ends

Effectiveness

R

E

S

O

U

R

C

E

U

S

A

G

E

G

O

A

L

A

T

T

A

I

N

M

E

N

T

Goals

Low

Waste

High

Attainment

Efficiency and Effectiveness

Means

Efficiency

Chapter 1 Lesson 1

Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 8Pearson Prentice Hall, 2005

management processes
Management Processes
  • Planning—defining goals, setting strategy, and coordinating activities
  • Organizing—deciding what to do and how to do it
  • Leading—motivating employees, directing others’ activities, and resolving conflicts
  • Controlling—monitoring tasks to see that they are finished as planned

Chapter 1 Lesson 1

management processes1
Management Processes

Achieving the organization’s stated purpose

Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. .9

Pearson Prentice Hall, 2005

Chapter 1 Lesson 1

management roles
Management Roles

Mintzberg’s Managerial Roles

  • Interpersonal relationships
  • Transferring information
  • Decision making

Is the Manager’s Job Universal?Level In the Organization

  • All managers plan, organize, lead, and control
  • But the time they give each activity changes with the manager’s level in the organization
  • As managers move up, they plan more and oversee others less

Chapter 1 Lesson 1

is the manager s job universal profit and not for profit
Is the Manager’s Job Universal?Profit and Not-for-Profit
  • A business firm measures its performance by the amount of profit it makes
  • But not-for-profit organizations don’t share a universal measure of effectiveness
  • Yet managers in these two types of organizations are more alike than different

Chapter 1 Lesson 1

is the manager s job universal size of the organization
Is the Manager’s Job Universal?Size of the Organization
  • Small-business manager’s most important role is that of spokesman with customers, suppliers, and others outside the company
  • Managers in a large organization mostly deal with issues inside the company

Chapter 1 Lesson 1

making decisions and dealing with change
Making Decisions and Dealing With Change
  • All managers make decisions
  • All managers are agents of change
  • Successful managers are aware of the rapid changes around them
  • They are flexible in adapting to deal with those changes
  • At the same time, they must help employees deal with the uncertainty change may bring

Chapter 1 Lesson 1

general skills

Skills and Competencies of Successful Managers

General Skills
  • Conceptual Skills are the mental abilities to analyze and diagnose complex situations
  • Interpersonal Skills are the abilities to work with, understand, mentor, and motivate people
  • Technical Skills involve the ability to use tools, procedures, and techniques in the manager’s specialized field
  • Political Skillsare the abilities to build a power base and establish connections

Chapter 1 Lesson 2

specific skills
Specific Skills
  • Controlling the organization’s environment and resources
  • Organizing and coordinating
  • Handling information
  • Providing for growth and development
  • Motivating employees and handling conflict
  • Strategic problem solving

Chapter 1 Lesson 2

Courtesy of Clipart.com

management competencies
Management Competencies

Management competencies are a cluster of knowledge, skills, and attitudes related to effective managerial performance

Chapter 1 Lesson 2

management competencies1
Management Competencies

Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 17

Pearson Prentice Hall, 2005

Chapter 1 Lesson 2

the importance of managers in the marketplace
The Importance of Managers in the Marketplace
  • Good managers can turn straw into gold
  • Poor managers can ruin everything they touch
  • Organizations are willing to spend a lot to get and keep good managers

Chapter 1 Lesson 2

why management is worth studying
Why Management is Worth Studying
  • Everyone deals with organizations every day
  • In your career, you will either manage or be managed

Chapter 1 Lesson 2

Courtesy of Photos.com

how management relates to other disciplines of study
How Management Relates to Other Disciplines of Study
  • Anthropology is the study of societies
  • Economics is about the allocation and distribution of scarce resources
  • Philosophy looks into the nature of things, especially values and ethics

Chapter 1 Lesson 2

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how management relates to other disciplines of study1
How Management Relates to Other Disciplines of Study
  • Political science considers the behavior of individuals and groups within a political environment
  • Psychology is the science that seeks to measure, explain, and sometimes change human or animal behavior
  • Sociology is the study of people in relation to one another

Chapter 1 Lesson 2

how management relates to other disciplines of study2
How Management Relates to Other Disciplines of Study

Benefits of Studying Anthropology

  • Understand cultures and civilizations
  • Understand people better
  • Sheds light on differences in values, attitudes, and behaviors between people in different countries and organizations

Chapter 1 Lesson 2

how management relates to other disciplines of study3
How Management Relates to Other Disciplines of Study

Benefits of Studying Economics

  • Understand the changing economy
  • Understand the role of competition
  • Understand the free market
  • Understand protectionism
    • protecting American producers and manufacturers by limiting the import of foreign products

Chapter 1 Lesson 2

how management relates to other disciplines of study4
How Management Relates to Other Disciplines of Study

Benefits of Studying Philosophy

  • Understand the nature of things, especially values and ethics
    • John Locke proposed the liberty ethic that freedom, equality, justice, and private property are legal rights
    • John Calvin proposed the Protestant work ethic that encouraged people to be frugal (thrifty), to work hard, and to attain success
    • Adam Smith’s market ethic argued that competitive forces, not the government, should regulate the economy

Chapter 1 Lesson 2

how management relates to other disciplines of study5
How Management Relates to Other Disciplines of Study

Benefits of Studying Political Science

  • Understand the structure of conflict
  • Understand the allocation of power
  • Understand the manipulation of power for individual self-interest

Chapter 1 Lesson 2

how management relates to other disciplines of study6
How Management Relates to Other Disciplines of Study

Benefits of Studying Psychology

  • Understand motivation, leadership, and trust
  • Understand employee selection
  • Understand performance appraisal techniques
  • Understand training techniques

Chapter 1 Lesson 2

how management relates to other disciplines of study7
How Management Relates to Other Disciplines of Study

Benefits of Studying Sociology

  • Understand cultural diversity
  • Understand changing gender roles
  • Understand globalization
  • Understand new forms of family life

Chapter 1 Lesson 2

adam smith
Adam Smith
  • Division of labor—the breakdown of jobs into narrow, repetitive tasks
  • Workers become very skilled at the one task they are doing
  • Saves time because workers are not moving from one task to the next
  • Helped pave the way for mechanization of work
  • Led to automation and computerization

Chapter 2 Lesson 1

the industrial revolution
The Industrial Revolution

The advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century

  • Machine Power
  • Mass Production
  • Relatively Cheap Transportation
  • Lack of Governmental Regulation
  • Large Organizations

Chapter 2 Lesson 1

Courtesy of Photos.com

the industrial revolution1
The Industrial Revolution
  • John D. Rockefeller – Standard Oil
  • Andrew Carnegie – Carnegie Steel

Chapter 2 Lesson 1

Taken from Wikipedia.com

the industrial revolution2
The Industrial Revolution
  • Large Labor Forces
  • New-Style Corporations
  • Formal Structures
  • Formal Management Practices

Chapter 2 Lesson 1

frederick taylor
Frederick Taylor

Classical Contributions to Modern Management

  • Published The Principles of Scientific Management in 1911
  • Used the scientific method to determine the “one best way” to do a job, and to train workers to do it that way
  • Demonstrated to workers and managers that both would benefit by improved production efficiency

Chapter 2 Lesson 1

frank lillian gilbreth
Frank & Lillian Gilbreth
  • Students of Frederick Taylor
  • Studied work arrangements to eliminate wasteful hand and body motions
  • Examined the design and use of tools and equipment to determine how these could contribute to work performance

Chapter 2 Lesson 1

henry gantt
Henry Gantt
  • Devised a bonus system that gave workers extra money if they finished their work in less time than the standard
  • Studied the efficiency of managers and workers
  • Created the Gantt chart ~ a graphic device managers use to plan and control work

Chapter 2 Lesson 1

a gantt chart

1 2 3 4

Copy/edit manuscript

Design sample pages

Draw Artwork

Print Galley Proofs

Print Page Proofs

Design Cover

A Gantt Chart

Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 474Pearson Prentice Hall, 2005

Chapter 2 Lesson 1

why scientific management
Why Scientific Management?
  • Productivity was low in the world of work in the early twentieth century
  • Better productivity by manual laborers could make a real difference

Chapter 2 Lesson 1

henri fayol
Henri Fayol
  • Designated management as a universal set of activities
  • Looked at the activities of all kinds of managers
  • Wrote from personal experience as a manager
  • Stated 14 principles of management—fundamental or universal truths of management practice

Chapter 2 Lesson 1

fayol s 14 principles
Fayol’s 14 Principles
  • Divison of work
  • Authority of managers to give orders
  • Discipline of employees
  • Unity of command
  • Unity of direction
  • Subordination of individual interests to the general interest

Chapter 2 Lesson 1

fayol s 14 principles1
Fayol’s 14 Principles
  • Remuneration of workers
  • Centralization of decision-making
  • Scalar Chain ~ authority from top to bottom
  • Order of people and materials
  • Equity of treatment
  • Stability of tenure of personnel
  • Initiative of employees encouraged
  • Esprit de Corps

Chapter 2 Lesson 1

max weber
Max Weber
  • Described bureaucracy ~ an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships
  • Model of the way work could be done in large groups
  • Model used in many large organizations today

Chapter 2 Lesson 1

today s applications
Today’s Applications
  • Matching people to jobs and training workers to be more effectiveare ideas Taylor introduced
  • Industrial engineering, which is all about the details of processes, is a field with its roots in scientific management

Chapter 2 Lesson 1

today s applications1
Today’s Applications

Football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea the Gilbreths introduced

Chapter 2 Lesson 1

Courtesy of BrandX Images

robert owen
Robert Owen

Human Resources Approach to Management

  • Successful Scottish Businessman
  • Early Industrial Revolution
  • Saw practices that repulsed him
    • Children working in factories
    • Workers not making living wage
  • Sought to reduce suffering of workers

Chapter 2 Lesson 2

Courtesy of Library of Congress

hugo munsterberg
Hugo Munsterberg
  • Founder of Industrial Psychology
  • Called for psychological tests to better match people with jobs
  • Today’s knowledge built on his ideas
    • Choosing, training, and motivating employees
    • Designing jobs

Chapter 2 Lesson 2

mary parker follett
Mary Parker Follett
  • One of first to consider organizations in terms of individual and group behavior
  • Believed that the manager’s job was to coordinate group efforts
  • Stressed the manager’s power with employees, rather than power over them
  • Her ideas about motivation, leadership, power, and authority remain current today

Chapter 2 Lesson 2

chester barnard
Chester Barnard
  • President of the New Jersey Bell Telephone Company
  • Saw organizations as social systems that needed human cooperation to work rather than being impersonal
  • A company, in Barnard’s view, was a set of people with interacting social relationships

Chapter 2 Lesson 2

chester barnard1
Chester Barnard
  • Suggested that the manager’s job was to communicate and to get workers to put out top effort
  • Realized that a successful business has to win and keep the support of investors, suppliers, customers, and other outside stakeholders

Chapter 2 Lesson 2

the hawthorne studies
The Hawthorne Studies
  • A series of studies during the 1920s and 1930s that provided new insights into group norms and behaviors
  • Researchers studied the influence of factors such as lighting intensity, job redesign, length of the work day and work week, rest periods, and pay systems on productivity

Chapter 2 Lesson 2

the hawthorne studies1
The Hawthorne Studies
  • Discovered that group influences, group standards, and group acceptance and security affect behavior more than other factors
  • Brought renewed attention to human factors
  • Helped business owners get away from the idea that workers were just like machines

Chapter 2 Lesson 2

the human relations movement
The Human Relations Movement
  • Members of this group felt that a satisfied worker would be a productive worker
  • Dale Carnegie, Abraham Maslow, and Douglas McGregor were three people leading the human relations movement
  • Views were rooted more in their personal philosophies than in objective research

Chapter 2 Lesson 2

Courtesy of Library of Congress

carnegie s four points
Carnegie’s Four Points
  • Make others feel important by sincerely appreciating their efforts
  • Make a good first impression
  • Win people over to your way of thinking by letting them do the talking, being sympathetic, and never telling a man that he is wrong
  • Change people by praising their good traits and letting offenders save face

Chapter 2 Lesson 2

mcgregor on human nature
McGregor on Human Nature
  • Theory X is a negative view that assumes people have little ambition, dislike work, shun responsibility, and need close supervision to get anything done
  • Theory Y, on the other hand, assumes human beings like to work and can accept responsibility and direct themselves

Chapter 2 Lesson 2

behavioral science theorists
Behavioral Science Theorists
  • Used the scientific method to study organizational behavior
  • Tried to keep their personal beliefs out of their work
  • Tried to do research others could replicate

Chapter 2 Lesson 2

human resources approach today
Human Resources Approach Today
  • Hundreds of different approaches
  • Researchers have generated a wealth of studies that fairly accurately predict behavior in organizations
  • Work affects the current understanding of issues such as leadership, motivation, job design, organizational culture, and performance appraisal

Chapter 2 Lesson 2

management by the numbers
Management by the Numbers

Quantitative Approach to Management

  • Began during World War II
  • Efforts to find mathematical and statistical solutions to military problems
  • After the war, businesses began to use these number-crunching techniques on their own problems

Chapter 2 Lesson 2

Courtesy of Comstock Images

quantitative techniques
Quantitative Techniques
  • Computer simulation ~ analyze the effect on a company’s payroll if everyone receives a 10 percent pay increase every year for 10 years
  • Optimization model ~ analyze the best price the company can charge for its new product, to maximize profit but not scare away potential customers
  • Critical path analysis ~ examine how long it will really take to get a new product to market, with separate teams working on different parts of the project all at the same time

Chapter 2 Lesson 2

what stimulated the classical approach
What Stimulated the Classical Approach

How Social Events Shape Management Approaches

  • Industrial revolution created a need to improve productivity by making work places more efficient
  • Developing efficiencies reduced the cost of making products ~ allowed prices to go down and sales to go up
  • Selling more products allowed markets to grow and companies to hire more people
  • As more people were earning a living wage and product prices went down more people could afford to purchase products like stoves and refrigerators
  • Scientific management raised the entire country’s standard of living

Chapter 2 Lesson 2

what stimulated the human resources approach
What Stimulated the Human Resources Approach
  • The classical view of workers as machines and the Great Depression stimulated the human resources approach
  • The human resource approach encouraged employers to treat people like people, not machines
  • Encouraging workers was very important during the tough times of the Depression

Chapter 2 Lesson 2

Courtesy of Library of Congress

what stimulated the quantitative approach
What Stimulated the Quantitative Approach
  • World War II was the force behind the quantitative approach
  • There was a need to develop mathematical and statistical tools to apply to military problems
  • When these efforts scored some impressive successes, they soon found applications in civilian life

Chapter 2 Lesson 2

management approaches today
Management Approaches Today

Taken from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 42Pearson Prentice Hall, 2005

Chapter 2 Lesson 2

the process approach
The Process Approach

Process approachconsiders the performance of planning, organizing, leading, and controlling as circular and continuous

Chapter 2 Lesson 2

Courtesy of Photos.com

the systems approach
The Systems Approach
  • The systems approachdefines a system as a set of related and interdependent partsarranged in a manner that produces a unified whole
  • An organization, with its management, is a system that interacts with and depends on its environment

Chapter 2 Lesson 2

the systems approach1
The Systems Approach
  • Managers deal with an organization’s stakeholders who are any group affected by the organization’s decisions and policies
  • Government agencies, labor unions, competing companies, employees, suppliers, customers and clients, local community leaders, and public interest groups can all be stakeholders in the system

Chapter 2 Lesson 2

the systems approach2
The Systems Approach
  • The manager’s job is to coordinate all these parts (stakeholders) to achieve the organization’s goals
  • In the global economy, “environment” has a broader meaning than ever, including broad labor-market trends (e.g., Asian workers receiving more education and competing against American workers), new technologies, changes in energy and oil prices, and political developments are all part of the global environment

Chapter 2 Lesson 2

a contingency approach
A Contingency Approach
  • The contingency approachreplaces simpler principles of management and integrates much of management theory
  • In management theory, contingency means something like “variable”
  • How a manager manages depends (is contingent) on the “variables” in a particular organizational environment

Chapter 2 Lesson 2

what is credit
What Is Credit?
  • Credit is providing or loaning money with the expectation of future repayment
  • The creditor makes the payment for you
  • Interest is a charge on borrowed money
  • An annual percentage rate, or APR, is the yearly interest rate
  • Finance charge is another term for interest and APR

Chapter 4, Lesson 1

basic credit terms
Basic Credit Terms
  • The money you borrow is the principal
  • A direct loan has a maturity date, which is the date by which you must repay the loan
    • You make monthly payments of principal and interest
  • Credit card loans have no maturity date
    • You pay a minimum amount each month
  • If you never borrow, you won’t establish a credit rating, or an assessment of how trustworthy you are in paying your bills

Chapter 4, Lesson 1

the credit dictionary
The “Credit Dictionary”
  • The “Credit Dictionary” defines some words that often come up in discussions of credit
  • Keep the list handy and refer to it when you need it

Chapter 4, Lesson 1

positive aspects of using credit
Positive Aspects of Using Credit
  • You can buy something you need, even if you don’t have the money right now
  • Credit makes day-to-day purchases more convenient
  • You don’t have to carry a lot of cash with you
  • Credit can be useful in emergencies

Chapter 4, Lesson 1

negative aspects of using credit
Negative Aspects of Using Credit
  • If you borrow too much money, you may have difficulty making your payments
  • Having credit can tempt you to make impulse purchases that you really don’t need or can’t afford
  • Many people make only the minimum payment–the smallest amount due to keep their credit in good standing

Chapter 4, Lesson 1

Photo courtesy of Tony Hopewell/Getty Images

sources of credit
Sources of Credit
  • Charge account–lets you buy goods or services at a specific store, for example, Sears, on credit
  • Credit card–lets you buy good or services at any business establishment that accepts the card
  • Charge card–similar to a credit card, but requires you to pay the entire balance quickly

Chapter 4, Lesson 1

sources of credit1
Sources of Credit
  • Installment loan–enables you to make a major purchase, such as a car or a home
  • Layaway plan–the store holds your item for you until you have paid for it in full

Chapter 4, Lesson 1

tips for using credit responsibly
Tips for Using Credit Responsibly
  • Pay all your bills on time
  • Don’t think of a credit card as extra cash
  • Never borrow more than your budget allows
  • Never borrow money to pay credit debts
  • Always pay your other monthly bills on time
  • Limit yourself to no more than two credit cards

Chapter 4, Lesson 1

be a smart credit shopper
Be a Smart Credit Shopper
  • Are you a person who pays off your bills each month?
  • Which kind of credit is appropriate for your purchase?
  • What kind of maturity period do you want?
  • Do you have to pledge collateral?
  • Does one credit card have a higher annual fee than another?

Chapter 4, Lesson 1

requirements for applying for a credit card
Requirements for Applying for a Credit Card
  • Minimum age of 18
  • Steady employment
  • A checking or savings account
  • A history of paying your bills on time
  • An income that exceeds your budgeted expenses
  • A permanent residence

Chapter 4, Lesson 1

how a creditor evaluates your application
How a Creditor Evaluates Your Application
  • Character: Are you reliable? Do you pay your bills on time?
  • Capacity: Is your income enough to pay off the debt? Do you have a job? Do you have other debts?
  • Collateral: Do you have enough assets? A car? A savings account?

Chapter 4, Lesson 1

Photo courtesy of Clipart.com

building your credit history
Building Your Credit History
  • Borrow a small amount of money from a bank and pay it back quickly
  • If you have a savings account, use it as collateral for your first loan
  • Apply for a credit card or charge account at a local business
  • Have someone cosign your loan
  • Purchase something on the installment plan

Chapter 4, Lesson 1

using a credit bureau
Using a Credit Bureau
  • You have a right to request a copy of your credit report
  • If you find errors in the report, write the credit bureau giving proof of the error
  • Three main credit bureaus:
    • Trans Union
    • Experian
    • Equifax

Chapter 4, Lesson 1

how to reduce your risk of credit card fraud
How to Reduce Your Risk of Credit Card Fraud
  • Sign a new credit card as soon as you get it
  • Save your receipts and compare them with your account statements
  • Never give out your card number on the phone
  • Make sure you’re using a secure site on the Internet
  • Destroy any preapproved credit offers
  • Destroy any old or canceled credit cards

Chapter 4, Lesson 1

what if your credit card is stolen
What If Your Credit Card Is Stolen?
  • Federal law protects you
  • Contact the credit card company immediately

Chapter 4, Lesson 1

Photo courtesy of Clipart.com

identity theft
Identity Theft
  • Stealing your identity by getting access to your personal information from:
    • a job application
    • a credit card application
    • an online transaction

Chapter 4, Lesson 1

Photo courtesy of Clipart.com

how to discourage identity theft
How to Discourage Identity Theft
  • Regularly check your account statements and credit report
  • Never give out your Social Security number unless you are sure the person or company requesting it is reliable
  • If you need to create a password, make it unique. Don’t use your initials, date of birth, or part of your Social Security number
  • Contact your creditors immediately if your bills don’t arrive on time
  • Visit www.consumer.gov/idtheft

for more information

Chapter 4, Lesson 1

how to avoid deficit spending
How to Avoid Deficit Spending
  • Stop borrowing money. Leave your credit cards at home
  • Carry just enough cash to get through the day
  • Cut expenses both big and small
  • Talk to your creditors and see if you can work out an easier payment schedule
  • Learn from your mistakes, and revise your budget

Chapter 4, Lesson 1

bankruptcy
Bankruptcy
  • If a bankruptcy court approves a person’s request to file for personal bankruptcy, the person’s debts are eliminated or severely reduced
  • Bankruptcy has serious long-term disadvantages:

– The court may seize your property

– A record of bankruptcy will stay on your credit report for up to 10 years

Chapter 4, Lesson 1

importance of a financial plan
Importance of a Financial Plan
  • It’s up to you to make sure your credit decisions fit your financial plan
  • Ask yourself, “How will buying something through credit affect my future?”
  • By making proper decisions, you can increase the amount of money you have available now and be able to buy the things you need

Chapter 4, Lesson 1