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Management Learning Review: Study Question Summary Foundation in Management Learning By: Yulia Ratnasari 3124039

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Summary of Introduction to Management 11th Edition of John R. Schermerhorn, Jr.

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Page 1: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Management Learning Review: Study Question Summary

Foundation in Management Learning

By:

Yulia Ratnasari

3124039

INTERNATIONAL BUSINESS NETWORKING PROGRAM

UNIVERSITAS SURABAYA

2012

Page 2: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Management: in all business and organizational activities is the act of getting people together to

accomplish desired goals and objectives using available resources efficiently and effectively.

Management: a process of implementing these: Planning, Organizing, Leading/Actuating, and

Controlling (POAC) functions to all organization’s resources for realizing its organization goals.

Simply means: people handling people.

Management = Science + Art + Process + System

No success organization without good management implementation.

CHAPTER ONETHE MANAGEMENT PROCESS

1. The challenges of working in the new economy. Working today included several aspects,

such as: talent, technology, globalization, ethics, diversity, and careers.

Work in the new economy is increasingly knowledge based, and intellectual capital is the

foundation of organizational performance.

People and their talents what they:

1) Know,

2) Learn,

3) Do with it

Managers call it as intellectual capital.

YULIA RATNASARI / 3124039

Intellectual Capital

For organizations:

STRATEGIC ASSETS

pathway to performance through human

creativity, insight, and decision making

For individuals:PERSONAL

ASSETS

package of intellects, skills, and capabilities that differentiate us

from others + make us valuable to potential

employers

Intellectual Capital: the collective brainpower or shared knowledge of a

workforce, which can be used to create value.

The Intellectual Capital Equation states:Intellectual Capital = Competency *

Commitment

A knowledge worker: someone whose mind is a critical asset to employers.

Main foundations of organizational performance

Doing the right thingsGoal Attainment (output)

Effective

Doing things rightResource Usage (cost; sacrifice)

EfficiencyManagement strives for:

Low Resource Waste(High efficiency)

High Goal Attainment(High effectiveness)

Page 3: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Both are essential (one without another isn’t enough in careers and organization’s requirement).

Competency: talents or job-relevant

capabilities.

Commitment: willingness to work hard

in applying them to important tasks.

To be exceptional (remarkable), heights

of personal accomplishment must be reached in workplace, dominated by knowledge workers.

Conceptual Age belongs to people with “whole mind” competencies that are:

1) HIGH CONCEPT: creative and good with ideas;

2) HIGH TOUCH: joyful and good with relationship.

Creative economy knowledge itself is becoming a commodity. Where how fast something new can

be created is the most important differentiator.

Organizations must value the talents of a workforce whose members are increasingly diverse

with respect to gender, age, race and ethnicity, able-bodiedness, and lifestyles.

Diversity trends (tendency) of changing

demographics in society are well organized.

For example: That is, minorities now constitute

more than one-third of the population, whose

proportion is growing. The U.S. Census Bureau

predicts that by 2050, whites will be minors against

combined races.

Despite of the diversity of workforce, the dealing

way with diversity in workplace remains an issue.

Due to the reality, it shows diversity bias.

Diversity bias is developed from prejudice

discrimination the glass ceiling effect.

For example (in age discrimination)

1) There’s an opinion that a young-workers are less

qualified and less professional. Nowadays, the

figures shown up an increase profits which are

announced productivity from young-workers. However, the facts don’t enough to break society’s

YULIA RATNASARI / 3124039

Workforce diversity: describes differences among workers in gender,

race, age, ethnicity, religion, sexual orientation, and able bodiedness.

How diversity bias can occur in the workplace:

1) Prejudice: the display of negative, irrational attitudes, opinion toward

members of diverse population.

2) Discrimination: actively denies minority members the full benefits of

organizational membership.

3) The glass ceiling effect: an invisible barrier limiting career advancement of

women and minorities.

Commitment Competency Intellectual Capital

Page 4: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

mindset. 2) Then, a Human Resource Managers fabricate reasons not to interview minority candidates,

which young-workers are included there, without seeing their performance. On the subtle belief that

“They are still young, so they can get another business opportunities later; while older-workers need to

fund their family, the company should prior them”, they distinguish them. 3) In the company, there’re

woman workers and some young workers accepted, and most of them show a good performance. But,

there’re an obstacles which make they can’t be promoted.

Explanation:

1) Prejudice: judgments toward people or a person because of their multiculturalism.

*i.e. the young-workers classifications differentiate.

2) Prejudice becomes active discrimination when there’s an impartial action or distinguishing

treatment against individual against its membership.

*i.e. denies to interview young-workers and subtle reasons.

3) Discrimination becomes glass ceiling effect when there’s ‘glass’ (refer to: unseen or transparent)

barrier that keeps minorities and women from rising to the upper rungs of the corporate ladder,

regardless of their qualifications or achievements

*i.e. women workers and some young workers aren’t promoted even if they show a good

performance.

The forces of globalization are bringing increased interdependencies among nations and

economies, as customer markets and resource flows create intense business competition.

Globalization simply implies the process of

international integration arising from the

interchange of world views, products, ideas, and

other aspects of culture. In economy, it means the

national boundaries of world business have largely

disappeared (- Kenichi Ohmae).

Many companies from other countries exist domestically and serve customers and supplies wherever it

may be located, it hire talents from around the world available at lowest cost.

For example: McDonald; Toyota; Blackberry; Apple; GIA; Zara, which is assembled in other countries.

Communication and transportation

Deregulation of markets and open borders

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Globalization: the worldwide independence of resource flows,

product markets, and business competition.

Process = IMPROVEMENT IN TECHNOLOGY

Page 5: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Not only that, countries and people also interconnected trough:

1. Labor markets

2. Employment patterns

3. Financial and business dealings.

For example: A company assembled in Germany is now listed in NASDAQ exchange markets. Then, it

developed bigger. Then, agreement of joint venture made between Germany and Japan to open new

branches there, at the same time, Japan paid the contract from Bank in Singapore to Switzerland

(Germany’s).

There’s a value chain which is interact each work; and globalization offers both opportunities and

challenges.

Ever-present developments in information technology are reshaping organizations, changing the

nature of work, and increasing the value of knowledge workers

Technology is rapidly expanded from time to time. It’s

required in new ways of working as people spend least

time of their work time “telecommuting” without ever

meeting face to face.

Tech IQ is a person’s ability to use technology to stay informed:

1. Telecommuting

2. Virtual Teams

3. Effective use of online resources

(a) Databases

(b) Job searches

(c) Recruiting

(d) Social Media

The process of job seeking and employment screening is increasingly technology driven.

For instance: there’re many sites that connected supplies and demands of labors, like:

www.jobstreet.co.id; www.karir.com; www.jobs.accor.com; www.indonesianstudentjob.com; and so on.

Also, there’re many companies open recruitment or announcement in their websites, such as:

www.career.garuda-indonesia.com; www.unilever.co.id/careers/vacancies; www.lionjobs.com; and so

on.

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Tech IQ: ability to use technology and commitment to stay informed on the

latest technological developments.

Page 6: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Society has high expectations for organizations and their members to perform with commitment

to high ethical standards and in socially responsible ways.

Ethical expectations for modern businesses:

a. Integrity and ethical leadership at all

levels

b. Sustainable development

c. Natural environment protection

d. Consumer protection

e. Human rights

Laws and Values as Determinants of Ethical Behavior

1. Legal behavior is not necessarily ethical behavior.

Ethical behavior is more necessary than legal behavior. What’s legal doesn’t define as ethics.

Most occupations have ethics that come along with the job. They are not written done; they are

unspoken rules of conduct that people adhere to.

For example: an electrician has an ethical responsibility to repair your house wiring correctly

so that it works correctly and is not a safety hazard for you. But there’s no regulation that the

electrician should repair the house wiring correctly.

2. Ethics is different with law.

A key difference is in terms of the sanctions which apply if these are violated.

For example: If unethical way is done, they may face disapproval from peers, not being

professional works and so on. Break the law and they could face a police investigation, a court

appearance, and various penalties.

3. Personal values help determine individual ethical behavior.

Personal values mean individuals’ own perception between which is ethical and which is

unethical. It might be difference from one to another.

For example: slavery may seem ethical for someone; but the other sees it as violation.

Careers in the new economy require great personal initiative to build and maintain skill

"portfolios" that are always up-to-date and valuable in a free agent economy.

Today’s career challenge isn’t just finding your first job; it’s also about successful career planning.

Charles Handy (British scholar and consultant) uses the analogy of Shamrock Organization to describe

implication.

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Ethics: code of moral principles that set standards of conduct of what is good and right.

Ethical behavior: what is accepted as good and right in the context of the governing moral code.

Page 7: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

First leaf: The permanent full time workers, whose

work is following standard career paths and the

numbers, are shrinking. It’s replaced by the

second leaf: The freelancers and independent

contractors, who provide specialized skills and

talents on a contract basis. It’s also being replaced

by the third leaf: the part-time workers. The

temporary part-timers often work without benefit

and they are the first to be laid off.

If current trends continue, a free-agent economy

will be succeeding. Flexible contracts and shifting mix of employers over time means skills must be up-

to-date, portable and always of value portfolio workers.

That job skills are:

Early career survival skills

Mastery Needing to be good at something, able to

contribute something of value to the employer.

Networking Needing to know people; links with peers and

others within.

Networking Acting like running own business (opportunities;

spotting ideas and act to embrace)

Love Technology Embrace and utilize technology

Marketing Promote self, communicate own successes and

progress, both personally and work-team

Passion for renewal Continuous learning and changing, always

updating yourself to best meet future demands.

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Careers: organizations consist of three types of workers, sometimes referred to as a shamrock organization: operates with a core group of full-time long-term workers supported by others who work on contracts and part-time.

In a free agent-economy people change jobs more often, and many work on independent contracts with a shifting mix of employers.

Portfolio worker: up-to-date skills that allow for job and career mobility.

Self-management: the ability to understand one self, exercise initiative, accepts responsibility, and learns from experience.

Permanent full time workers

Freelance or contract

workers

Temporary part-time workers

Page 8: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Job-skills can’t be gained once and forgotten, they must be carefully maintained and upgrade all time.

That’s implying self-management should be able to realistically assess workers and actively manage

personal development.

What are organizations like in the new workplace?

Organizations are collections of people working together to achieve a common purpose.

In other words, Organization is a social entity that has a

collective goal and is linked to an external environment.

Organization is a unique social phenomenon that enables its

members to perform tasks far beyond the reach of individual

accomplishment division of labor.

Purpose: organizations provide useful goods or services that

return value to society:

1. Quality products and services

2. Customer satisfaction

3. Social responsibility.

For example:

Usakti is an organization who gives education (a university). Under the initiative of Mr. R.Soekotjo,

Chairman, Foundation of Usakti Surabaya as well as Mayor of Surabaya, the name for Usakti was

altered to UNIVERSITAS SURABAYA. The aims of Ubaya:

Ubaya Vision: To be the First University in Heart and Mind

Ubaya Mission: To advance business and industrial society by developing three services of the

Three services of University activities (Tri-Dharma Ubaya) continuingly for the welfare of

human being

Then, all the staffs and lecturers give the students, who were an external environment hence become part

of Ubaya, to provide education and developing the society.

As open systems, organizations interact with their environments in the process of transforming

resource inputs into product and service outputs.

All organizations are open systems—interact with their environment—and do a continual process.

Costumer and client feedback indicate how well an organization provides opportunities for

constructive adjustment.

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Organization: a collection of people working together to achieve a common purpose.

Division of labor: the specialization of cooperative labor in specific, circumscribed tasks and like roles

Page 9: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Consumer feedback means consumer satisfaction. In a

competitive marketplace where social media (surveys) has

given the customer voice center stage, now more than ever

it's critical to know exactly what your customers think.

For example: Ford motor attains consumers’ feedback using its website:

http://fordmotorcompany.suggestionbox.com to improve its performance.

Gathering and listening to consumer’s feedback is important, thus, they can change for the better. Stark

testimonies: without loyal customers, a business can’t survive.

Productivity is a measure of the quantity and quality of work performance, with resource costs

taken into account.

Organizational performance: “Value creation” is a very important

notion (idea) for organizations.

Operations add value to the original cost of resource inputs.

(Total Revenue = Total Cost – Profit). Adding value simply means

valuing profit. That occurring:

1. Businesses organization: earn a profit

2. Nonprofit organizations: add wealth to society

Productivity is a ratio of production output to what is required to produce it (inputs). The measure of

productivity is defined as a total output per one unit of a total input.

For example: TC of good X is 500 USD. It is sold as 700 USD. Hence, the profits is 200 USD.

To sum up, productivity is a measure of the efficiency of production (while efficiency is related with the

resource cost).

YULIA RATNASARI / 3124039

An open system: transforms resource inputs from the environment into product outputs.

Inputs: factors or resources of production (land, labor, capital and entrepreneurship).

Output: the final good or service produced using the factors of production through a production process.

Productivity: overall measure of the quantity and quality of work performance, with resource utilization considered.

Page 10: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

High-performing organizations achieve both performance effectiveness in terms of goal

accomplishment, and performance efficiency in terms of resource utilization.

Most common ways to assess organization’s performance

is productivity.

Performance efficiency input measure (cost,

sacrifice)

Efficient: do the things right.

Performance effectiveness output measure

(goal)

Effective: do the right things.

For example: Suppose that two new companies, X and Y, are trying to produce cars.

X starts by deigning the cars by trial and error and wastes a lot of time and resources doing it. After a

year, X finally fixes to use a design and announce the production to the mass.

Y, on the other hand, starts by cleaning and applauding its design before produce the cars. Y is very

applauding of its design by redraw the design even the production can produce it perfectly without the

redrawing process.

Now if we had a third company, Z, who could produce the cars with desiring designs and do it quickly

without any unimportant steps, Z do it effectively and efficiently.

Explanation from example: X is attaining the goal but it is not efficient resources wasted.

(Doing the right thing, but it was doing it poorly)

Y is efficient, but it is not effective redrawing the design is not required in the process of

producing. (Doing things right but not doing the right things)

FOR DISCUSSION is it ever acceptable to sacrifice performance efficiency for performance

effectiveness?

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Performance effectiveness: an output measure of task or goal accomplishment.

Performance efficiency: an input measure of resource cost associated with goal accomplishment.

Page 11: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

In some issues, it's better to sacrifice performance efficiency to attain its performance effectiveness.

Because as it defines, efficiency means low cost. Low quantity and quality mean lower cost. But, it

should be defined in addition of goal attainment. When the goal is in x quantity and x quality,

performance efficiency can’t be sacrificed due to the goal of production.

2. Who are managers and what do they do?

Managers directly support and facilitate the work efforts of other people in organizations.

Manager handling people

In every organization, there’re managers, whose works are variety

of job titles, such as: team leader, department head, supervisor,

project manager, president, and so on.

They are essential human resources whose contributions represent

real work of the organization.

Managers may direct workers directly, or they may direct several supervisors who also direct the

workers. The manager must be familiar with the work of all the groups he/she supervises, but does not

need to be the best in any or all of the areas. It is more important for the manager to know how to

manage the workers than to know how to do their work well.

A manager's title reflects what he/she is responsible for.

For example: Accounting Manager supervises the Accounting function.

An Operations Manager is responsible for the operations of the company. The Manager of Design

Engineering supervises engineers and support staff engaged in design of a product or service.

Explanation from example: There are many management functions in business and, therefore, many

manager titles. Regardless of title, the manager is responsible for planning, directing, monitoring and

controlling the people and their work.

Top managers scan the environment, create strategies, and emphasize long-term goals; middle

managers coordinate activities in large departments or divisions; team leaders and supervisors

support performance of front-line workers at the team or work-unit level.

First: Board of directors (profit) members elected by stockholders to

(Represent their ownership interest).

Board of trustees (non-profit) members elected by local citizen

Appointed by government bodies

Invited by existing members

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Manager: a person who supports, activates and is responsible for the work of others

Page 12: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Both of responsibilities are the same: oversee the performance run right or not.

Second: Top managers are:

Constitute an executive team that reports to the board

Responsible for the whole organization.

Set strategy; lead the organization consistent with its

purpose and mission

Pay attention to external environment

Alert to potential Long Run problems and opportunities.

Best top managers are strategic thinkers who able to make

good decisions under highly competitive and uncertain

condition.

Third: Middle managers: in charge of divisions which contains several smaller work units. They are:

Work with top managers

Coordinate with peers

Support lower levels to develop and pursue action plans that implement organizational strategies

to accomplish key strategies.

Forth: Team leader or Supervisor: in charge to supervise non managerial workers.

In Addition: Title: in a profit organization

1. Top-level managers, or top managers, are also called senior management or executives. Chief

Executive Officer (CEO), Chief Financial Officer (CFO), President, Vice president, Corporate head.

YULIA RATNASARI / 3124039

Members of a board of directors (profit) or board of trustees (non-profit): supposed to make sure an organization run right.

Top managers: guide the performance of the organization as a whole or of one of its major parts.

Middle managers: oversee large departments or divisions

First line managers: Team leaders or Supervisor: report to middle managers and supervise non-managerial workers.

Page 13: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

2. Middle-level managers, or middle managers: General Manager (GM), Plant manager, Regional

manager, and Divisional manager.

3. First-level managers are also called first-line managers or supervisors. Office manager, Shift

supervisor, Department manager, Foreperson, Crew leader, Store manager.

For example (in governor hierarchy in Indonesia)

Broad of directors: President and Vice President

Top Managers: DPR, MPR, MA, MK, MY, BPK

Middle Managers: Gubernur, Wali Kota

First-line Managers: Lurah, Camat

Functional managers work in specific areas such as finance or marketing; general managers are

responsible for larger multifunctional units; administrators are managers in public or nonprofit

organizations.

Serving different levels of authority, managers work

in different capacities within organization.

Line authority

Flows down the chain of command. For example,

line authority gives a production supervisor the right

to direct an employee to operate a particular

machine, the vice president of finance the right to

request a certain report from a department head.

Therefore, line authority gives an individual a

certain degree of power relating to the performance

of an organizational task.

*e.g. president, retail manager department

supervisors.

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Types of managers:

Line managers are responsible for work activities that directly affect organization’s outputs: producing goods or services

Staff managers use technical expertise to advise and support the efforts of line workers

Functional managers are responsible for a single area of activity; such as: finance, marketing, production, personnel, accounting, or sales.

General Managers are responsible for more complex units that include multifunctional areas

Administrators work in public and nonprofit organizations

Page 14: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Staff authority

It’s the right to advise or counsel those with

line authority. Only for advising and don’t have

any right command the subordinates.

For example, market forecaster advises the

sales manager to improve the organization;

legal advisor; and so on.

Functional authority

Regard to limited line authority; only for

particular functions, which specific to staff

personnel with expertise in a certain area.

For example: division, such as manager

engineering; marketing; sales; and project

managers. Emphasize on the certain variety

of functions.

General Managers: responsible for activities covering many functional areas.

That is, commanding each function: finance, marketing, production, HRM, and so on.

Administrators: only in public and non-profit organization.

For example: hospital administrators, public administrators, and city administrators.

Brief differences about type of managers:

Line Authority Staff Authority Functional Authority

Characteristics Clear; simple Staff are created to assist

sales managers

Specialist has authority

Advantages Inexpensive More efficient Functional managers can

optimize performance in

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Page 15: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Accountability Manager has specialists to

advise

their areas

Disadvantages No specialists

Limited growth potential

Can get expensive

conflicts between line and

staff

Lots of potential conflict

Potential breakdown in

unity of command

(responsible to many

bosses)

Strategic

Implications

Good for small firms

Territories (regions) may be

introduced

Manager has freedom to

work with line people

Does not occur too often

The upside-down pyramid view of organizations shows operating workers at the top, serving

customer needs while being supported from below by various levels of management.

Effective managers fulfill performance accountability by helping others to achieve high

performance outcomes and experience satisfaction in their work

All managers help people, working individually and

in teams, to perform. They do this while being

personally “accountable” for results achieved. In

traditional: flows upwards

Corporate governance is "the system by which

companies are directed and controlled” It YULIA RATNASARI / 3124039

Accountability is the requirement of one person to answer to a higher authority for relevant performance results

Corporate Governance: when a board of directors holds top management responsible for organizational performance

An effective manager: helps other achieve high performance and satisfaction at work

Quality of work life (QWL): An indicator of the overall quality of human experiences in the workplace

Financial performance

Ethical performance

Sustainability

Page 16: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

involves regulatory and market mechanisms, and the roles and relationships between a company’s

management, and stakeholders.

Effective Managers: meet both performance and satisfaction goals.

Performance relates to achieving organizational goals

Satisfaction relates to QWL (quality of work life)

QWL is not some notion of frivolous luxury.

A better QWL for employees leads to a higher productivity for the employer.

QWL surrounding:

Payment (compensation)

Open Communication

Job Security

Fun at workplace

Health is wealth

Alternative Work Schedules

Recognition and Rewards

And so on

For example:

Company X was too strict for its own workers by force them to work until midnight. Not only the

salaries are below the standard, but also the first-line managers don’t want to hear any suggestion from

the workers. Later on, the workers start to resist to work. Then, the board managers ask the

accountability from the subordinates managers (corporate governance). Afterwards, all of the functional

managers help the Human Resource managers (effective manager) to handle the workers resistance.

They settled to change the regulation by increasing the tolerance, ensure their security, increase wages,

and providing insurance (QWL).

Hence, the workers become loyal and their works satisfied all stakeholders.

The changing nature of managerial work emphasizes being good at "coaching" and "supporting"

others, rather than simply "directing" and "order-giving."

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If all high, it can increase individual’s sustainability and performance

Page 17: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

The changing mindset of managerial

work: notice that the operating and front-

line workers are at the top of the upside –

down pyramid.

Upside-down pyramid the whole

organization devote to serving customers

Simply means customers and clients below any managers and workers.

Managers not just order givers, they are there to mobilize and support workers to do their jobs. While

workers are supported, they are serving the customers.

4. What is the management process?

The management process consists of the four functions of planning, organizing, leading, and

controlling.

Every

organization,

regardless of

size, has

developed and

implemented

its own

management

concepts in

order for it to

run smoothly

and accomplish

the goals and objectives. It’s not a stage, but the four functions is a process.

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The upside-down pyramid: view of organization shows customers at the top being served by workers who are supported by managers.

Planning: the process of setting performance objectives and determining what actions should be taken to achieve them.

Organizing: the process of assigning tasks, allocating resources and coordinating the activities of individuals and groups.

Leading: the process of arousing people’s enthusiasm to work hard and inspiring their efforts to fulfill plans and accomplish objectives.

Controlling: the process of measuring work performance, comparing results to objectives and taking corrective action.

Page 18: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

For example:

Controlling means comparing work

performance with the results’ desired earlier on

the planning function. When Company A

realizes that his plans don’t suit anymore with

the technology according to the labors. It is

going to change its planning and organizing.

Henceforth, the function is not permanent, but

it is influenced by other function.

Planning sets the direction; organizing assembles the human and material resources; leading

provides the enthusiasm and direction; controlling ensures results.

1. Planning

A manager must determine what the organizations goals are

and how to achieve those goals. Much of this information will

come directly from the vision and mission statement for the

company.

2. Organizing

After plans set, they must be implemented. Managers are

responsible for organization of the company and this includes

organizing people and resources.

3. Leading

Leading means encourage workers, keeping them motivated, inspiring and arousing enthusiasms, thus

they can achieve the goals. Managing and leading are not the same activity.

4. Controlling

The controlling function involves monitoring the firm’s performance to make sure goals are being

implemented. Plans sometimes are modified and redefined to best for new circumstances.

For example: Planning: John is the marketing manager and has a goal to increasing sales during the

month. Hence, he made a plan to advertise in a particular region, placing some items on sale, and door-

to-door marketing.

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Planning direction

Organizing the human and material resources

Leading enthusiasm and direction

Controlling ensures results

Page 19: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Organizing: John determined how he will distribute resources and organize his employees according to

the plan. He set different roles and ensure that he have delegated authority, assign work, and provide

direction so his team can work towards higher sales numbers.

Leading: John spends time connecting with his employees on an interpersonal level. Managing tasks;

rather, it involves communicating, motivating, inspiring, and encouraging employees towards a higher

level of productivity.

Controlling: Afterwards, John noticed that his team was only half selling of the goal; John is going to

speak with each of his subordinates individually to review their performances.

Managers implement the four functions in daily work that is often intense and stressful, involving

long hours and continuous performance pressures.

Mintzberg managers can never be free to forget the job,

and never has the pleasure of knowing, even temporarily;

and that there’s nothing else to do”.

Nevertheless, successful managers are those who can control

the activities that they choose to get involved in on a day-to-

day basis.

Managers work long hours.

Managers work at an intense pace.

Managers work at fragmented and varied tasks.

Managers work with many communication media.

Managers work largely through interpersonal relationships

Managerial success requires the ability to perform well in interpersonal, informational, and

decision-making roles.

A role is an organized set of behaviors. Henry Mintzberg (1973) has identified ten sub roles common to

the work of all managers. The ten roles are divided into three groups: interpersonal, informational, and

decisional

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Managerial activities: not only mastering the four management functions and roles; but also implement them in intense and complex work setting.

Managerial activities and roles:

Interpersonal roles: involve interactions with persons inside and outside the work unit.

Informational roles: involve giving, receiving, and analyzing of information.

Characteristics of

managerial work

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The interpersonal roles link all managerial work together. Manager fulfills interpersonal roles will be a:

Description of action Example

Figurehead: Modeling and setting forth key

principles and policies

Symbolic leader

Attending ribbon cutting

ceremonies, hosting receptions.

Leader: Providing direction,

enthusiasm, motivating,

selection and training of

employees

Virtually all managerial

operation which involves

subordinates: interview, support.

Liaison: Coordinating with others

(managers and specialist

divisions, also the subordinates)

Participation in meetings with

the other representative of

divisions’ internal.

The informational roles ensure information is provided. Manager fulfills informational roles will be a:

Description of action Example

Monitor: Scanning and collecting

information, both from inside

and outside

Attending seminars and

exhibitions to collect

information. Surveys

Disseminator: Sharing information to

organizational members (from

internal and external)

Dissemination of information

letters and digest, interviewing

informing subordinates about

agreement settled.

Spokesperson: Representing the

organization’s plan, situation

and achievement to outsiders.

Compiling and disseminating

information in meeting in

presentation.

The decisional roles make significant use of the information. Manager fulfills decisional roles will be a:

Description of action Example

Entrepreneur (initiator of

change)

Developing new ideas to

improve organizational

performance:

seeking opportunities

implementation of innovation

Find new innovation and

discoveries to improve the

company’s performance.

Disturbance handlers: Dealing with conflicts. (taking Debating and decision making

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Managerial activities and roles:

Interpersonal roles: involve interactions with persons inside and outside the work unit.

Informational roles: involve giving, receiving, and analyzing of information.

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corrective action) on strategies concerning and

issue to overcome conflicts.

Resource allocators: Handling budgets, allocating

(human, physical, and monetary)

resources

Estimate budget, approving

schedules, allocate input and

outputs. Distribution of

production.

Negotiator (mediator) Making deals and forging

agreement

Conducting negotiation

establish link between

organization and other

companies.

Managerial success also requires the ability to build interpersonal networks and use them to

accomplish well selected task agendas.

Agenda setting usually incomplete and loosely

connected in the beginning more specific as

the manager utilized information. This agenda

represent manager’s mind which occurs when

there’s opportunity.

Networking good implement of agenda setting by

working with inside and outside members. It’s created a

good relationship with people whose help may be

needed to implement agendas.

Social capital is created by networking symbiosis

mutualism.

For example: (inside organization)

A General Manager bumped into staff member who didn’t report to him. Using this opportunities the

GM (1) asked question and received information he need; (2) using a sincerely words and good

relationship, he motivate the staff to do what he must done; (3) the staff do what the GM needed to be

done.

(Outside organization)

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Agenda setting: development of action priorities for accomplishing goals and plans.

Networking: process of creating positive relationships with people who can help advance agendas.

Social capital: capacity to get things done with the support and help of others.

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A General Manager saw an opportunity with the organization’s peer to expand its performance. Once

they met, the GM used opportunity to (1) ask the peers’ director about some information he needed; (2)

then, the GM told some advantages if the peer would agree to create a bond using a good analysis and

positive relationship; (3) hence, the peers agreed to join.

5. How do you learn the essential managerial skills and competencies?

Careers in the new economy demand continual attention to lifelong learning from all aspects of

daily experience and job opportunities.

The learning in management is focus on:

Developing skills

Competencies to deal with

The complexities of human behavior

Problem solving

The difference in career success in long-term may well rest with

lifelong learning.

Skills considered essential for managers are broadly described as technical—ability to use

expertise; human—ability to work well with other people; and conceptual—ability to analyze and

solve complex problems.

Technical skill: “This is what I can do for you”

School taught technology and talents. All jobs require some specialized expertise, and many people

develop their technical skills on the job. Vocational and on the job training programs can be used to

develop this type of skill.

*e.g. accountants, financial planners, engineers

and so on.

Human Skill: This is the ability to work with,

understand and motivate other people (both

individually and a group).

People, who are proficient in technical skill, but

not with interpersonal skills, may face difficulty to

manage their subordinates,

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Learning: a change in behavior that results from experience.

Lifelong learning: continuously learning from daily experiences.

Skill: the ability to translate knowledge into action that results in desired performance.

Technical skill: the ability to apply a special proficiency or expertise to perform particular tasks.

Human skill: the ability to work well in cooperation with others.

Emotional intelligence: the ability to manage ourselves and our relationship effectively.

Conceptual skill: the ability to think

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*i.e. capacity to communicate, collaborate, network, and engage others: trust, enthusiasm, and positive

relationship.

That creates something called emotional intelligence: “just how well do I relate with and work with

others”. Strength or weakness in EI is reflecting on how well you recognize, understand, and manage

feelings when interacting with others.

Conceptual Skill: This is an ability to critically analyze, and overcome problems. It requires creative

thinking, generating options and choosing the best available option. Breaking problems into smaller

parts, see the relation between parts, and recognize the implication of any one problem to others.

A diagnostic skill based on cognitive intelligence “Am I developing the strong critical thinking and

problem-solving capabilities I will need for long0term career success?”

Problems: ambiguous, unstructured, complicated and interconnection, and long-term consequences.

Human skills are equally important for all management levels; while conceptual skills gain

importance at higher levels and technical skills gain importance at lower levels.

Technical skills lower levels of management

Because first-line managers are closer to the production process (technical expertise is highest demand)

Human skills require strength EI. As it

defined, managers mean people handling

people. For middle management

Conceptual skills top managers

because the plans, policies, and

decisions developed at this level.

Requiring the ability to understand

cause and effect and need high

responsibility; due to the complexity of

problems may be faced.

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Skill: the ability to translate knowledge into action that results in desired performance.

Technical skill: the ability to apply a special proficiency or expertise to perform particular tasks.

Human skill: the ability to work well in cooperation with others.

Emotional intelligence: the ability to manage ourselves and our relationship effectively.

Conceptual skill: the ability to think

Technical skill expertise

A Human skill or Interpersonal skill emotional intelligence

A conceptual skill cognitive intelligence

Managerial competency: a skill-based capability that contributes to high performance in a management job.

Page 24: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

This emphasis does

not imply that

technical skills are

believed to be less

worthy, but simply

that they are more

easily developed

than human and

conceptual skills.

For example:

Lower level managers high IQ, cum laude in university, but can only work individually and can’t

analyze situation.

Middle level managers standard IQ, easy to interact with people, can work in team, and knowing if

there’s a problem. Five Facets of Emotional Intelligence:

1. Self-awareness—understanding moods, emotions

2. Self-regulation—thinking before acting, controlling disruptive impulses

3. Motivation—working hard and persevering

4. Empathy—understanding emotions of others

5. Social skills—gaining rapport and building good relationships

Top level manager standard IQ, can dealing with people, can analyze problems and overcome it

vastly. Good managerial competency, which implicit in:

Planning, organizing, leading, and controlling.

Informational, interpersonal, and decisional roles.

Agenda setting and networking.

Many organizations provide in-house training programs to develop the technical skills that are need to be

done in operation. While to be placed at higher management, ones require EI (human skills) to interact

and manage people. IQ and technical skills will get you hired, but emotional intelligence will help you

excel.

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CHAPTER TWOHISTORY OF MANAGEMENT THOUGHT

1. What can be learned from classical management thinking?

Frederick Taylor's four principles of scientific management focused on the need to carefully

select, train, and support workers for individual task performance.

“The principal object of management should be to secure maximum prosperity for the employer ,

coupled with the maximum prosperity for the employee ” – Taylor (Father of Management)

Historically problems: many employee inefficiency + low performance.

Solution: workers are taught and helped by supervisor to give direction in right ways.

Goal: improve productivity of people at work. Using time study.

He linked jobs requirements to both training and support from the supervisor; aiming proper direction,

work assistance; monetary incentive.

According to Frederick Taylor, scientific management includes four guiding action principles:

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Science management (1991): emphasizes careful selection and training of workers and supervisory support

Time study (Taylor): analyze the motions and tasks required in any job and to develop the most efficient ways to perform them.

Motion study (Frank Gilbert and wife: Lilian): the science of reducing a task to its basic physical motions

Page 26: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

1. Develop for every job a “science”:

1) rules of motion,

2) standardized work implements, and

3) proper working conditions for every job

2. Carefully select workers with the right abilities for the job.

3. Carefully train workers and provide proper incentives to corporate with the job “science”.

4. Support workers by carefully planning their work and removing obstacles (smoothing the way as they

go as their job).

Brief differences between Time Study and Motion Study

Time Study Motion Study

Direct and continuous observation of a task, using

a timekeeping device (e.g., decimal minute

stopwatch, computer-assisted electronic

stopwatch, and videotape camera)

The actions taken by workers at certain task with

the aim of streamlining the processes involved.

Jobs simplification; Works standards; and

incentive wage plans

Recording the time taken to accomplish a task

ones can do better

Benefited both employer (increased productivity)

and employee (decreased fatigue).

For example: Delivery routes using GPS (stops

are timed). Another example, Fashion

management: catwalk individual stop: ads up to

increase productivity.

For example: goal attainment by set the standard:

Locating time goal 20 minutes (the actual time

accomplishment is 23 minutes)

(not only time empathize on reduction.)

Henri Fayol suggested that managers should learn what are now known as the management

functions of planning, organizing, leading, and controlling.

Administrative principles (Henri Fayol):

1. Scalar chain there should be a clear and unbroken line

of communication from the top to the bottom of the

organization

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Administrative Theory (1916): emphasized management functions and attempted to generate broad administrative principles that would serve as guidelines for the rationalization of organizational activities

Page 27: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

2. Unity of command each person should receive orders from only one boss

3. Unity of direction one person should be in charge of all activities with the same performance

objective

Max Weber described bureaucracy

with its clear hierarchy, formal rules,

and well-defined jobs as an ideal

form of organization.

Historically problems: organization failed to reach their

performance potential. People were in the positions of authority because of social standing or privilege

status in German society without any capabilities

Solution: a bureaucracy specific form of organization. (STRUCTURED)

The defining characteristics of Weber’s bureaucratic organization are:

• Clear division of labor: Jobs are well defined and workers become skilled at performing

• Clear hierarchy of authority: Authority and responsibility are well defined for each position

• Formal Rules and procedures: written guidelines direct behavior and decisions in job and

written files are kept for historical report.

• Impersonality: rules and procedures are impartially and uniformly applied

• Careers based on merit: Workers are selected and promoted on ability and performance

Advantage of bureaucracy Possible disadvantages of bureaucracy

1. Efficiency in utilizing resources

2. Fairness or equity in treatment employees and

clients

1. Excessive paperwork or “red tape”

2. Slowness in handling problems

3. Rigidity in the face of shifting needs

4. Resistance to change

5. Employee apathy

Must be: Flexible, and adaptable in changing

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A bureaucracy (late 19th): a rational and efficient form of organization founded on logic, order, and legitimate authority.

Foresight

to complete a plan of action for the future

Organization

to provide and

mobilize resources to implement the plan

Command

to lead, select, and evaluate

workers to get the best work

toward the plan

Coordination

to fit diverse efforts

together and ensure

information is shared and problems

solved

Control

to make sure things happen according to plan and to

take necessary corrective

action

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circumstances.

2. What are the insights of the behavioral management approaches?

The behavioral approaches shifted management attention toward the human factor as a key

element in organizational performance.

Historically, During 1920s, an emphasis on human side

of the workplace began to influence management

thinking.

The behavioral approaches maintain that people are

social and self-actualizing.

People at work are assumed to seek satisfying social relationship, respond to group pressures, and search

for personal fulfillment.

Hence, after their needs are fulfilled, workers show better performance.

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Organizational behavior: the study of individuals and groups in organizations.

Human resource approachesAssumption:

People are social and self-

actualizing

Theory of human needs

Abraham Maslow

Hawthorne studies

Elton Mayo

Organizations as communities

Mary Parker Follett Theory X and

Theory YDouglas

McGregor

Personality and organizationChris Argyris

Page 29: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Mary Parker Follett describes organizations as communities within which people combine talents

to work for a greater good.

Groups which are diverse

could combine their

talents greater good

managers’ job to

integrate them.

Follet believed that business

problems involve wide variety

of factors that must be considered

in relationship to one another.

As a system; contingency thinking

(possibility)

Follet also believed that business

were service organizations and

those private firms should be considered vis-à-vis (regarding, about on) the public good.

Managerial ethics; corporate social responsibility

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Organization as community: which managers and workers should labor in harmony, without one party dominating the other and with the freedom to talk over and truly reconcile conflicts and differences.

Employee ownership; Profit sharing; Gain-sharing plans: making employees an owner responsibility feelings

System: An organized set of interrelated ideas or principles.

Corporate Social Responsibility: a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders.

precursor of employee ownership, profit sharing, and gain-sharing

Making every employee an owner creates a sense

of collective responsibility

precursor of systems thinkingBusiness problems

involve a variety of inter-related factors

precursor of managerial ethics and social responsibility

Private profits relative to public good

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The Hawthorne studies suggested that work behavior is influenced by social and psychological

forces and that work performance may be improved by better "human relations."

Historically: Western Electric Company pay

research program to study about individual

productivity.

Initial Hawthorne: using scientific management to

determine how economic incentive and physical

conditions affect the output’s production.

Illumination experiment

Better lighting: better performance

Conclusion of research: “psychological

factors”

Afterwards: Hawthorne pay more attention

toward better understanding on human

interaction in workplace

Employee attitudes, interpersonal relations and group processes:

Some things satisfied some workers but not others

People restricted output to adhere to group norms

HAWTHORNE STUDIES SUPPORTED BY ELTON MAYO:

SOCIAL SETTING AND HUMAN RELATION

Examine the effect of workers’ fatigue on output.

Historically: confounded study of illumination. Six workers assembled in a small electrical relay in a

small isolated room. There’s given various work days, work week and rest pauses. However,

productivity keeps increasing regardless of changes made.

Conclusion new “social setting” which factors are:

1. Group atmosphere

The workers shared pleasant relationship

Good job

2. More participative supervision

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Hawthorne Studies (1942): determine how economic incentives and the physical conditions of the workplace affected the output of workers.

The Hawthorne effect: tendency of persons singled out for special attention to perform as expected.

The human relations movement: suggested that managers using good human relations will achieve productivity.

Good Human Relation in the test room

Better productivity

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Test-room was made workers feel important. They

were given information and asked for opinions.

EMPLOYEE ATTITUDE AND GROUP PROCESSES

Mayo (1932) people would restrict their output in order to avoid displeasure of the group, even

if it meant sacrificing pay that could otherwise be earned by increasing output.

Group can have negative and positive influences on individual productivity.

LESSONS OF THE HAWTHORNE STUDIES

Bringing visibility to the notion that people’s feelings and relationships with coworkers affected their

work and those groups were important influences on individual. Hawthorne effect.

In 1950s and 1960s, human relation movement was largely implemented in managerial.

Abraham Maslow's hierarchy of human needs introduced the concept of self-actualization and the

potential for people to experience self-fulfillment in their work.

Suggesting that needs

create tensions that can

influence a person’s work

attitudes and behaviors.

Maslow’s theory is based on two underlying principle:

1. Deficit Principle:

People act to satisfy deprived needs (certain needs), those for which satisfaction deficit exist.

2. Progression Principle:

Fulfilling in sequence (order from bottom to up). The five needs he identified exist in a

hierarchy, which means that a need at any level only comes into play after a lower-level need has been

satisfied. Step by step from the lowest to the highest.

The five needs hierarchy and example:

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A need: a physiological or psychological deficiency a person feels compelled to satisfy

Deficit principle: a satisfied need is not a motivator of behavior

Progression principle: a need becomes a motivator once the preceding lower-level need is satisfied.

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At the level of self-actualization needs, the deficit and progression principles cease to operate. More

need is satisfied, operation improving.

Managers with human relations thinking can help people satisfy their important needs will achieve

productivity.

Douglas McGregor urged managers to shift away from Theory X and toward Theory Y thinking,

which views people as independent, responsible, and capable of self-direction in their work.

Hawthorne studies + Maslow = McGregor Theory X and Theory Y

Managers who hold either assumption can create self-

fulfilling prophecy (where others act in ways that confirm

the original expectation)

For example:

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Theory X assumes that workers:

Dislike work Lack ambition Are irresponsible Resist change Prefer to be led

Theory Y assumes that workers:

Willing to work Capable of self-control

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Adult Personality:

1) Managers who treat people positively and as responsible adults will achieve productivity.

2) Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality

Theory X managers: act very directive (command and control).

Thus create situations where workers become passive, dependent and reluctant. They do what they are

told to do.

Theory Y managers: act in participative way.

Thus create situations where workers respond with initiative and high performance; satisfy self-esteem

and self-actualization. They are allowed in more job involvement, freedom, and responsibility.

Chris Argyris pointed out that people in the workplace are adults and may react negatively when

constrained by strict management practices and rigid organizational structures.

He concludes that practices which influence by classical management are inconsistent with the mature

adult personality:

Classical approaches How it works Results

Scientific People work more efficiently to

become better defined

Limits opportunities for self-

actualization

Bureaucracy Working in clear hierarchy of

authority; higher levels direct

and control lower ones.

Dependent, passive workers who

feel they have only little control.

Administrative (POLC) Unity direction efficiency

will increase when works are

planned and directed by

supervisor.

Psychological failure.

Conversely psychological

success occurs when ones define

their own.

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Theory X assumes that workers:

Dislike work Lack ambition Are irresponsible Resist change Prefer to be led

Theory Y assumes that workers:

Willing to work Capable of self-control

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The scientific applications of mathematical techniques to management

problems

Value chain analysis

Supply chain management

Inventory management

Quality control

Queuing theory

Linear programming

Network models

Hence, Management should accommodate the mature adult personality

- Increasing task responsibility

- Increasing task variety

- Using participate decision making (allow more participation)

- Promote better human relation

3. What are the foundations of modern management thinking?

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Page 35: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Analytics that use advanced quantitative analysis techniques in decision sciences and operations

management can help managers solve complex problems.

Background: Vast computing power; easy to

collect; storage of data make better

management decision analytics.

Due to the respect of analysis, managers can

conduct quantitative application (using

numbers)

It can apply in examining organization

manufacturing most efficiently and

effectively.Such as: value chain analysis,

quantity control, supply chain management.

It also can be applied in problem solving. Such as: problem encountered systematically analyzed appropriate mathematical models computations are applied optimum solution

For example: Google using math formula to aid in talent planning: pool information; surveys;

promotions; pay histories to check whether workers is underutilized or not.

Another example: Problems: grocery store is being complained as the queue is too long for cashier

waiting.

Solution: quantitative approach queuing theory: help to allocate service personnel based on

alternative workload demands; thus can minimize both customers times and cost of workers.

Organizations are open systems that interact with their external environments, while consisting of

many internal subsystems that must work together in a coordinated way to support the

organization's overall success.

Organization described

as cooperative systems that

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Analytics: systematic use and analysis of data to solve problems and make informed decision.

Quantitative application, known as:

1) Management science and operations research use quantity analysis and applied mathematics to solve problems.

2) Operations management: the study of how organizations produce goods and services.

System: collection of interrelated parts that function together to achieve a common purpose

Subsystem: a smaller component of a larger system

Open systems: organizations that interact with their environments in the continual process of transforming resource inputs into outputs

Page 36: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

achieve great things by integrating the contribution of many individuals to achieve common

purpose.

However in reality, the

contribution is often imperfect

and can be improved upon.

Thus, it needs to understand the

complexity of organization as

system.

High performance only

occur when every subsystem

works well in corporation with

others

Contingency thinking avoids "one best way" arguments, instead recognizing the need to

understand situational differences and respond appropriately to them.

Modern management is situational in orientation

attempts to identify practices that are best

fits with demands of unique situations.

Need contingency thinking

There’s no “one best way” to manage, but the

contingency perspective tries to understand all the situational differences and respond them in

appropriate ways depends on their unique characteristic.

Quality management focuses on making a total commitment to product and service quality

throughout an organization, maintaining continuous improvement and meeting worldwide quality

standards such as ISO certification.

Historically: Edward Deming (1951) invited to Japan to explain what quality control technique

developed in US.

Results: lifelong relationship epitomize in Deming Application Price (up to now, it’s still exist to reward

companies which achieve extraordinary excellence in quality.

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Contingency thinking: tries to match managerial responses with problems and opportunities unique to different situations

Page 37: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Deming’s approaches: emphasize constant innovation; using

statistical method; commitment to train base of quality assurance

(guarantee) emergence total quality management (TQM)

Joseph Guran’s 3 guiding principles: Plan; Control; Improve.

Continuous improvement

Indicator of importance of quality objective has given by ISO

certification (International Standards Organization) in Geneva,

Switzerland.

To get ISO, they must refine and upgrade quality in all

operation if they want to compete as “world class companies”

undergo an assessment by outside auditors to determine they

meet ISO requirement or not.

Example of ISO:

ISO 31000 Risk management

ISO 9000 Quality management

ISO 26000 Social responsibility

ISO 14000 Environmental management

ISO 50001 Energy management

Knowledge management is a process for developing, organizing, sharing, and using knowledge

to facilitate organizational performance and create an environment for ongoing organizational

learning.

Peter Drucker issues “knowledge constantly makes itself obsolete” (worn; ancient)

His message suggests that neither people nor organization

can rest on past laurels (glories); success in future only

earned by those who continually build and use knowledge

to extend possible. Knowledge management.

Knowledge achieves to perform success. Knowledge

management can be spotted by job title.

Emphasize on knowledge management learning

organization.

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Total quality management (TQM): an organization-wide commitment to continuous improvement, product quality, and customer needs for a total organization

Continuous improvement: involves always searching for new ways to improve quality and performance.

ISO certification: indicates conformance with a rigorous set of international quality standards

Knowledge management: the process of using intellectual capital for competitive advantage

Learning organizations: organizations that continually changes and improves using the lesson of experience

Page 38: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

It can be learned from many resources: experiences, from members and employees, peers, and other

individuals. Sharing is expected. The criteria:

For example:

1) Knowledge management: Chief Technology Officer or CTO: responsible for technology of the

company. Therefore, the managers should focus on this position is typically overseeing the development

of technology to be commercialized. Hence, development of technology need accumulated knowledge

and understanding of all evolution and the works of technology.

2) Learning organization: the CTO shared and taught all of his subordinates and other Chief to

understand about the technologies; how it works and how it related to the planning of organization.

Evidence-based management uses findings from rigorous scientific research to identify

management practices for high performance.

Historically, flaw foundation of management is being

criticized by scholars rigor; the results is based on

weak evidence. no limited to distant past

improvement.

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Evidence-Based Management: making management decisions on “hard facts” about what really works

Mental models:

set aside from old

ways thinking

Personal mastery:

self-aware and open to

others

Systems thinking:

learns how the hole

organization works

Shared vision:

undestand and agree to

plan of action

Team learning:

works together to accomplish

the plan

Page 39: Foundation in Management Learning, John. R. Schermerhorn, Jr, 11th Edition

Jeffry Pfeffer + Robert Sutton makes EBMgt based on what really work (hard facts) rather

than on thing that sound good but flawing (dangerous half-truth)

EBMgt pursuing solid research using scientific method then reporting case studies based on practitioner

experinces.

For example: Pfeffer studied the link between HRM and organization’s performance. Using sample of

1000 firms, the positive HRM, included security, selective hiring, high wages based on merit, skill

development, no discrimination, and sharing information high performance

ANSWERMULTIPLE CHOICE QUESTIONS

CHAPTER ONE

1. The process of management involves the functions of planning, (d) organizing, leading, and controlling.

2. An effective manager achieves both high-performance results and high levels of (c) satisfaction among people doing the required work.

3. Performance efficiency is a measure of the (a) resource costs associated with task accomplishment.4. The requirement that a manager answer to a higher-level boss for results achieved by a work team

is called (b) accountability.5. Productivity is a measure of the quantity and (a) quality of work produced, with resource

utilization taken into account.6. (a) Top managers pay special attention to the external environment, looking for problems and

opportunities and finding ways to deal with them.7. The accounting manager for a local newspaper would be considered a (c) staff manager, whereas

the plant manager in a manufacturing firm would be considered a line manager.8. When a team leader clarifies desired work targets and deadlines for a work team, he or she is

fulfilling the management function of (a) planning.9. The process of building and maintaining good working relationships with others who may help

implement a manager's work agendas is called (b) networking.10. In Katz's framework, top managers tend to rely more on their (b) conceptual skills than do first-line

managers.11. The research of Mintzberg and others concludes that managers (c) always live with the pressures

of performance responsibility12. When someone with a negative attitude toward minorities makes a decision to deny advancement

opportunities to a Hispanic worker, this is an example of (a) discrimination13. Among the trends in the new workplace, one can expect to find (b) more valuing people as human

assets14. The manager's role in the "upside-down pyramid" view of organizations is best described as

providing (c) support so that operating workers can directly serve customers.15. The management function of (c) controlling is being performed when a retail manager measures

daily sales in the women's apparel department and compares them with daily sales targets.

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CHAPTER TWO

1. The assumption that people are complex with widely varying needs is most associated with the (c) behavioral management approaches.

2. The father of scientific management is (b) Taylor3. Deals with students by an identification number rather than a name, which characteristic of

bureaucracy is being displayed and what is its intended benefit? (d) impersonality ... fairness4. If an organization was performing poorly and Henri Fayol was called in as a consultant, what would

he most likely suggest to improve things? (a) teach managers to better plan and control 5. One example of how scientific management principles are applied in organizations today would be:

(a) a results-based compensation system.6. The Hawthorne studies are important because they raised awareness of the important influences of

(b) human factors on productivity.7. Advice to study a job, carefully train workers to do that job, and link financial incentives to job

performance would most likely come from (a) scientific management 8. The highest level in Maslow's hierarchy includes (c) self-actualization needs.9. Conflict between the mature adult personality and a rigid organization was a major concern of (a)

Argyris 10. When people perform in a situation as they are expected to, this is sometimes called the (a)

Hawthorne effect.11. Resource acquisition and customer satisfaction are important when an organization is viewed as an

(c) open system12. When your local bank or credit union is viewed as an open system, the loan-processing department

would be considered a (a) subsystem13. When a manager notices that Sheryl has strong social needs and assigns her a job in customer

relations, while also being sure to give Kwabena lots of praise because of his strong ego needs, the manager is displayin (d) contingency thinking

14. In a learning organization, as described by Peter Senge, one would expect to find (c) employees who are willing to set aside old thinking and embrace new ways

15. When managers try to avoid hearsay and make decisions based on solid facts and information, this is known as (b) evidence-based management

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