<big><big>Site Seeing...</</big><big>big>Leadership and Managaement Notes</big>

Site Seeing. . . Leadershioand Manageement Notes

Professors Notes (Others are available on Site Seeing II and on reserve in Campus Library)O:

Chapter/Topic 1

O Objective 1 Define managers and management
I. Management and Managers
A. What is an Organization?
An organization is any structured group of people working together to acheive certain goals that individuals could not acheive.
B. What is a Manager?
A manager is a person who allocates human and material resources and directs the operations of a department( ie:unit, division, SBU,program) or and entire organization.

Chapter/Topic 3 Selected Notes

O One example is the North American Free Trade Agreement added new markets for a lot of organizations. Another example would be if the government put out a new human rights act about workers hours. Lay terms--If the government changes or adds a law or something similar, businesses will have to change also.
O Competitors, new entrants, substitute goods and services, customers and suppliers
Lay terms-- Other people in the same service or production as you, a person who has never had anything to do with the business you are in opens a business like yours, someone comes up with another way to get out a similar product or even the same product as you - for example, people can now e-mail instead of sending a letter through the post office, the people you cater to try to force price down and quality up, and suppliers can up their prices.
They have affected the competition in higher education by creating competitive forces among the students to get good grades, get jobs, and do better than each other.

Chapter/Topic Selected Summary
The main forces that affect the business environment and are external are economic conditions, political systems, the ecosystem, and cultural differences to name most.
The task environment is all external forces that directly influence an organization. They change frequently and are on a global scale.
The five competitive forces are: competitors, new entrants, substitute goods and services, customers, and suppliers.
Technology has become very important because a business cannot survive without it today and it is rapidly changing.
Five political strategies used to deal with external factors are: negotiation, lobbying, alliances, representation and socialization.

Chapter/Topic 7 This Topic deals with ethics and Responsibility. Ethics were defined as "set of values that define right and wrong conduct". They were broken down into: Societal Level, Legal Level, Organizational Level, and Individual Level. Each was then given a description for reference. Next were models for ethics. These were utilitarian, moral rights, and justice. The concept of Social Responsibility was discussed in regards to the fact that managers and employees both have an obligation to the groups that can be affected by their actions.
The differences from judging a decision from an individual level and a legal level in a system of ethics:
Managerial terms:
A decision from an individual level is what someone believes is right or wrong. The individual level includes values and behavior that reflect a persons stage of moral development: obedience and punishment, instrumental, interpersonal, law and order, social contract, or universal principles.
The legal level includes the enactment of new laws and interpretation of current laws that define ethical behavior. Lay terms: An individual level decision comes from that persons beliefs and morals. The legal level decision comes from the current system of laws for that city or state. So the difference between the two is that the individual level comes from the own persons ethics and values and in the legal level thedecision is based on the laws passed for that city or state. Know the Kolberg stages through the last and final stage of the universal principle stage. This is where one views appropriate conduct as determined by a person's conscience based on universal ethical principles.
Managerial terms: The vast majority of managers who accept the stakeholder concept endorse Peter Drucker.
The stakeholder responsibility is the belief that managers and other employees have obligations to identifiable groups that are affected by or can affect the achievement of an organization's goals. The arguments that oppose the statement is are the affirmative social responsibility concept. This says that managers and other employees are obligated to avoid problems by anticipating changes in their environment, blending the organization's goals with those of the public Lay terms: The stakeholder responsibility is the belief that managers have obligations that can be affected by what they decide to do. The argument that opposes it is that managers and employees should avoid problems by anticipating changes, blending their goals with those of the public.
Chap 7 Summary Stakeholders, such as customers, are increasingly holding organizations responsible for ethic decision making and conduct.
There are conflicting perspectives on what being ethical and socially responsible mean
The societal level includes shared values and how they affect individuals and groups standards for acceptable behavior. The legal level includes the enactment of new laws and interpretation of current laws that define ethical behavior. The organizational level includes decisions and actions going beyond those mandated by law that demonstrate the ethical standards of the organization. The individual level includes values and behavior that reflect a person's stage of moral development. Know Kohlberg's Approach (See chart)
The utilitarian model focuses on actions rather than motives and has 2 branches. The moral rights model holds the six fundamental rights to life, and safety, truthfulness, privacy, freedom of conscience, free speech, and private property.. The justice model advocates impartial, equitable distribution of benefits and costs among individuals and groups, according to three principles: distributive, justice, fairness, and natural duty.
The traditional concept is based primarily on the utilitarian ethical approach. The stakeholder concept broadens the focus by reflecting to some extent the moral rights and justice of ethics. Managers and other employees have moral obligations to stakeholders of the organization. The affirmative concept draws heavily on the moral right and justices models of ethics. It obligates the organization and its employees to the broadest focus of social responsibility.

Chapter/Topic 8 Selected Summary
Management terms: Three activities or problems that would result in the use of objective probability could be purchasing stocks, purchasing a vehicle; or for businesses, planning a budget. Purchasing stocks would require that you acquire the history of the stock and how well it has done in the past. When purchasing an automobile you look at how well the cars of performed in the past and what kind of ratings they have received from safety inspections, and just the cars overall approval rating in the past. The last problem being determining a budget is mainly concerned with businesses. When determining their new budgets they look at past years budgets to have something to compare to and then they make a decision.
Lay terms: Buying stocks, buying a new car, and planning a budget are three problems that could be solved with objective probability. Buying stocks would be easier with a stock that has done well in the past. Buying a car you look at past approval ratings and safety features that have made the car a good buy in the past. Businesses use the budgets of years past to plans for the upcoming budgets to be made. 4. Why can individuals, whose rationality is limited according to the bounded rationality model, be expected to make reasonably rational decisions at times?
Management terms: The gambler's fallacy bias is often used by individuals to make rational decisions. After seeing a number of similar events occur, an individual can choose a different outcome to make the right decision. For example if you flip a coin and it lands on heads five times in a row, a rational decision would be to choose tails, next. Others make rational decisions when given concrete information on what should be done. They might also use satisficing to make rational decisions. This is when you are given a lot of alternatives and you choose the best one. 1. Define decision making: Decision making includes identifying problems, getting info, and choosing from alternatives found.
2. State four preconditions for meaningful decision making: The preconditions required for the decision making process are (1) existence of gap between the current situation and desired goals, (2) awareness of the significance of the gap, (3) motivation to close the gap, and (4) access to the needed resources.
3. Explain the conditions of certainty, risk, and uncertainty under which decisions are made: Decisions are made under conditions that reflect that there is a chance that developments and events will occur. These conditions may be characterized as a continuing thing from certainty to risk uncertainty.
4. Descrive framework for understanding the three main categories of decisions: There are three general categories of decisions, (1) routine, (2) adaptive, (3) innovative.
5. Apply goals to decision making: There are four benefits gotten from setting goals, (1) Focusing decisions and efforts, (2) aiding the planning process, (3) motivating people and stimulating performance, (4) assisting performance evaluation and control.
6. Describe the rational, bounded rationality, and political models of decision making: The are seven steps in the rational model for making decisions, (1) Define and diagnose the problem, (2) set goals, (3) seek alternative solutions, (4) compare and evaluate the alternative solutions, (5) choose one of those solutions, (6) implement the chose solution, (7) follow up and control the results. The three constraints of the bounded rationality model are (1) satisficing, (2) limited search, (3) and inadequate or misinterpreted info.

The four functions of management is 1) planning 2) organizing 3) directing and 4) controlling. There are three major reasons why management is changing: one of them is global competition, another is that the need to satisfy customers is rising and finally, technology is changing.
2. Goals are a broad statement of what you want to accomplish and they are usually long term where as objective are more specific and they are specific about what you wish to accomplish. Strategic planning is very broad which outlines the goals that you are trying to accomplish. Tactical planning is specific and to the point. Contingency planning is where you come up with an alternative because your current plan is not working. Goals are things that you want to accomplish in the future but they may not be able to be done in the near future unlike objectives which are strategies for reaching your goals.
3. An organization chart simply lists who is responsible for what and it describes all levels of management. Since organizations are becoming smaller they have to be able to respond to something quicker to be more effective and they can do this by assigning someone at the top to make sure that things are done quickly and properly.
4. The directing function of a management is giving assignments, explaining how they want things to be done, and explaining policies that the company might have, and when they are finished with a project they are supposed to tell them how they did so they will not make the some mistakes the next time.>br> 5. The 5 steps of the control function of management are 1) setting clear standards 2) monitoring adn recording performance, 3) comparing performance with plans and standards, 4) communicating results and deviations to employees, and 5) taking corrective action if necessary.
6. The difference between a manager and a leader is that a manager sees that organization runs smoothly and that order is maintained, and a leader has a vision and wants others to see that vision also. The most effective leadership style is that the person that is in charge leads the situation.7. There are three things that a manger needs and they are: 1) technical skills 2) human relation skills 3) conceptual skills.
8. There are 6 basic skills that you will need to be a good manager and they are:

1) verbal skills 2) writing skills 3) computer skills 4) human relation skills 5) time management skills 6) technical skills.Chapter/Topic 8 Selected Notes 2. Identify three issues or problems that are likely to involve the use of objective probabilities by a decision maker. Explain the basis for your selection. BM There are many problems that are likely to involve the use of objective probabilities. One example is a life insurance company. They are not able to determine when their policy holders are going to die, but they can calculate objective probabilities that specific numbers of policyholders will die in a particular year. They are using facts based on past records to come up with very good estimates. Another example where objective probabilities are used is in a hospital. They do not know exactly how many people are going to need medical treatment in a given year but they can use past years records and come up with an accurate estimate. A third example could be a airport. They don't know exactly how many travelers they are going to have during the Christmas season but they can estimate pretty accurately using past years numbers. LM Objective probability involves making an educated guess on what is going happen by using some sort of past records. You are using hard facts and numbers to decide how likely it is that a certain outcome will occur. 4. Why can individuals, whose rationality is limited according to the bounded rationality model, be expected to make reasonably rational decisions at times? BM The bounded rationality model refers to an individual's tendencies to (1) select a less than best goal or alternative solution (2) to engage in a limited search for alternative solutions, and (3) to have inadequate information and control over external and internal environmental forces influencing the outcomes of decisions. At times an individual using this model can be expected to make reasonably rational decisions at times because they are satisficing. They may not always please every department or area but they may do what is best for the group as a whole. They are choosing a safer and less controversial goal. The adequate goal at times is a very reasonable one. LM By using the bounded rationality model an individual makes a decision that is just good. It isn't the best, they don't have the most knowledge on the subject, but they make the decision that will make the least amount of noise or cause the least amount of problems.

Chapter/Topic 9 Selected Notes
Managerial Terms:
A rule specifies a course of action that must be followed in dealing with a particular problem. A Standard Operating Procedure (SOP) is a series of rules that employees must follow in a particular sequence when dealing with a certain type of problem. Artificial Intelligence (AI) is the ability of a properly programmed computer system to perform functions normally associated with human intelligence.
(Layman Terms:) Rules tell you what to do if a particular problem arises. Standard o perating procedures are a group rules that working class must follow in a certain way when stuff happens. Artificial Intelligence is a computer doing stuff that people do.
Managerial Terms
Break even analysis examines the various relationships among sales and costs in order to determine the point where total sales equal total costs. You consider variable costs and fixed costs associated with the problem. A payoff matrix is a table of figures or symbols used to identify the possible states of nature, probabilities, and outcomes associated with alternative strategies.Lay Terms
O The break even analysis and payoff matrix have similarities such as they both look at pricing and costs to determine payoffs.
Lay Terms: Possible approach-
Managerial Terms
Osborn's creativity model is a three-phase decision making process that involves finding facts, ideas, and solutions. The cause and effect diagram helps team members display, categorize, and evaluate all possible causes of an effect, which is generally expressed as a problem.
Layman's Terms
O Osborn's plan involves searching for facts, ideas, solutions; while cause and effect diagrams help people display, catergorize, and evaluate all causes of the problem.
(BM)terms:
A rule is a specification of a course of action that must be followed in dealing with a particular problem.
SOP's are rules that employees mustfollow in a certain sequence. A Properly programed computer system performs functions usually associated with human intelegence know as artificial intelengence. Laymen: Rules are things that must be done, Sop's are the order of things that mustbe done, and AI is the process of a computer doing the process.3. Managerial: Break-even Analysis is the examination of the various relationships amoung sales and costs in order to derermine the point where total sales equal total cost. A payoff Matrix is a table of figuress or symbols used to identiy thepossible states of nature, probabilities, and outcomes associated with alternativestrategies.
Laymen: Break-even analysis and Payoff Matrix both try to find the ideal profit situation.
Managerial Terms:
O An Osborn creativity model is a 3-phase decision-making process that involves facts and ideas, and solutions, while the Cause and Effect diagram used achart to display, catagorize, and evaluate possible causes of a problem.Laymen: The Osborn model is a before plan that deals with the problem before it happens while a Cause amd effect diagram just evaluates the problems past. Chapter/Topic Summary O This chapter discusses the benifits and limitations of normative decision making. It also discusses the rules and standards of operating procedures and artificial intelligence as aids to routine decision making. The chapter covers the break-even analysis, the payoff matrix, and pareto analysis as aids to adaptive decision making. This Topic nine also deals with the Osborn creativity model and thecause effect diagram as aids to innovate decision making.
Chapter/Topic 10 Selected Notes
O Functional Departmentalization groups employees according to their areas of expertise and resources they draw on to perform a common set of tasks. The advantages of functional departmentalization it is often the best form for organizations that sell a narrow range of goods and/or services mainly in one market. This structure keeps administrative expenses low because everyone in a department shares training, experience, and resources.

O Customer departmentalization involves organizing around the type of customer served. It is used when management wants to ensure a focus on the customer's's needs rather than on the organization's skills or the brands it produces and sells. This form of departmentalization indicates that management is sensitive to the needs of each customer segment and that it has identified segments that have substantial sales potential.

O Delegation of authority is the process by which managers assign the right to act and make decisions in certain areas to subordinates. In addition to assigning a task to a subordinate, the manager also gives the subordinate adequate decision-making power to carry out the task effectively. A manager may be afraid that if subordinates don't do the job properly, the manager's own reputation will suffer. Failing to delegate can be justified only if subordinates are untrained or poorly motivated.
Chapter/Topic 10 Summary:
O In this chapter they highlighted the traditional ways of structuring organizations. As organizations get more involved in global activities, incorporate new information technology, compete for customers, and respond to new employee expectations, the need will be to fundamentally rethink organizational structure. These are some of the points the chapter covers: the main elements of organizational structure and how they're shown on a chart, the most common types of departmentalization, the basic principles of coordination, the authority structure of an organization, the factors that affect the centralization or decentralization of decision making, and the differences between line and staff authority.
Chapter/Topic 11 Selected Notes O The main features of stable environment are: products that have not changed much in recent years, little technology innovation, a fixed set of competitors, customers, and constant government policies. Feature of a changing environment includes continuously changing products, products with obsolete hardware, competitors and customers that change continually, and government actions. Laymen: The features of stable environments consist of any environmental feature that does not change. A changing environment consisted of kinetic or changing features.
O A mechanistic structure is an organization design in which activities are broken down into specialized tasks. Organic structures are designed to stress teamwork, open communication, and decentralizing decisions. PETsMARTs structure reflects many aspects of an organic structure for it stresses all stores working together equally and individual decision making.
Laymen: A mechanistic structure is made up of the use of specialized tasks, while organic is designed to use teamwork and the group. PETsMART models after the organic structure for its use of team beliefs.
O The strengths of Black and Deckers network include the ability to manufacture, conduct research, and raise capital wherever it is convenient. The great spans between plants increased missed communication. Laymen: Black and Deckers network helped with the ease of a global company while it hurt them by stringing them out so.
O The information processing strategy is chosen by using the effects of customers, competitors, suppliers, etc. The technology that is used also regulates the information processing strategy by including more necessary planning for an enlarged network.
Laymen: The Information processing strategy is picked by taking into account of competitors, customers and suppliers while also considering the technological properties of the firm.
Chapter/Topic 11 Summary This chapter covers the area of organization design. It also explains how different environments influence an organizations design and the differences between mechanistic and organic organizational structures. The chapter also covers the effects of technology on the design of manufacturing and service organizations. The amount of organization that must be processed according to environment and technology is also covered, as is the factors that affect the design of an organization.Chapter/Topic 15 Selected Notes 1. The three most commonly used information channels in organizations are downward, upward and horizontal. Downward is a communication path that managers use to send messages to employees or customers. It is most effective when one knows how to handle special promotional items, job descriptions detailing duties and responsibility, etc. Upward channels is by which subordinates send information to superiors and is effective when feedback is provided on how well the employees understand the message they received and enables them to voice their opinions and ideas. Horizontal channels is a communication path that managers and other employees use when communicating across departmental lines and is effective to maintain effective communication amoung customers, suppliers, and employees in various divisions of functions.
Lay terms: Managers most frequently downward channels to send messages to the various levels of the organizations. Upward channels allow employee participation in decision making and provide feedback to management. Horizontal channels are used between piers in different departments and are especially important in network organizations.
3. The information technology effects Charles Chaser's job by staffing because new systems and processes have eliminated management layers and cut employment levels. Less costly computers and communication devices are used to create "virtual offices" from workers in far-flung locations.
Lay terms: Information technology now permits communication that enables employess to make decisions traditionally reserved for managers.
5. Communication difficulties arise in organizations because the difficulty of efficiently controlling and coordinating a firm's operation as it becomes a large scale producer. In large scale production they have different management heirarchy which leads to bureacratic red tape and decision making is slowed down.
Lay terms: In a large scale production, one manager can't assemble, digest, and understand all information to decision making like a smaller firm.
Chapter 15 Summary The Chapter starts out by defining the main elements of the communication process which are the sender, receiver, message, channels, feedback, and perception. Then goes on to describe the formal and informal channels of communications. New technology and the internet are examples by which information technology effects the communications process in an organization. The chapter continues to define the barriers to communication and describes ways to overcome them. The remainder of the chapter discusses the guidelines for effective communication.
This page was last updated 5 December,1998