BM 250 Fall 2017.pptx

BM 250-06
PRINCIPLES OF MANAGEMENT AND
ORGANIZATIONAL BEHAVIOR
Professor Marino

TODAY’S AGENDA
•Introduce Myself
•Introduce Course Syllabus
•Introduce Course Schedule
•How to Succeed in BM 250 Without Really Trying
•Assign Homework

WHO IS PROFESSOR MARINO?
• Adjunct Professor at Monmouth University
• High School Business and Computer Teacher
• President and Founder of Non-Profit Organization FAAET
• Owner of Web Design and Media Company FIBE
• Ambassador for Edmodo and SimpleK12
• Financial Blogger for The Street, Seeking Alpha, and Nasdaq

COURSE SYLLABUS
• Refer to eCampus
• Key Components:
• Textbook
• Graded Items
• Grade Scale
• Academic Honesty
• Please read through the entire syllabus

COURSE TEXTBOOK
•You do not need to purchase the course
textbook
•It is rather pricy
•I will provide you with all info

GRADED ITEMS
• Case Studies (23%) – 2 case studies at 11.5% each
• Group Projects (23%) – 2 group projects at 11.5% each
• Exams (32%) – 2 exams; highest exam score (20%) and lowest exam score (12%)
• Discussion Forums (6%) – 2 discussion forums at 3% each
• Participation (16%) – this grade includes in class discussions, attendance, and the
Introduction Post on eCampus

CASE STUDIES
• Case studies will be chosen individually
• Case study instructions will be on eCampus
• Case study submissions on eCampus will be run through Turnitin
• Case studies will be due:
• Case Study 1 Due Wednesday, October 11th, 2017 [prior to Fall Break]
• Case Study 2 Due Monday, November 20th, 2017 [prior to Thanksgiving
Break]

GROUP PROJECTS
• Group Project instructions will be on eCampus
• Group Project will have an associated rubric on eCampus
• 1st Group Project I will assign groups and topics
• 2nd Group Project you can pick your groups and your group’s topic

EXAMS
• Both exams will feature a take home section and an in-class section
• Exam Review will be posted on eCampus
• 1st Exam will be Wednesday, October 25th, 2017
• 2nd Exam will be during our scheduled final exam time; tentatively Wednesday, December
13th
• The higher exam score will count as 20% of your grade
• The lower exam score will count as 12% of your grade
• Rather than each exam being 16% of your grade

DISCUSSION FORUMS
• The two discussion forums will be open all semester
• You will be required to provide one post and two responses
• Instructions will be provided within the post itself
• Scoring rubric will be provided
• I will periodically respond to keep the discussion going

PARTICIPATION
• Introduction Post on eCampus – allows me to match a name to a face;
instructions on eCampus [10% of participation grade]
• Attendance – there is no explicit attendance policy, but being in class
can only benefit your participation grade [40% of participation grade]
• In-Class Discussions – some of the material in this class is “dry” so I will
assign fun things, so that we are able to discuss things as a class [50% of
participation grade]

ACADEMIC HONESTY
•Assignments will be reviewed via Turnitin
•Source all information that is not your own
•Refer to section VII of the syllabus for further
information
•Should you have any questions regarding this matter
throughout the course please ask questions before
submitting assignments

OTHER PIECES OF SYLLABUS
• Course Description
• Learning Outcomes
• Classroom Conduct Policy
• Students Needing Accommodations
• Assurance of Learning Statement
• Please read through these sections

COURSE SCHEDULE
• The Course Schedule provides all info on what we are doing in class each meeting,
when assignments are due, when exams are, and what has been assigned as
homework
• Items featured in the Reading/Assignment column are to be completed prior to the
start of the next class.
• If you have to miss a class refer to eCampus for link to Blog and Twitter

HOW TO SUCCEED IN BM 250 WITHOUT
REALLY TRYING
• Complete homework assignments; it will make class sessions more fun
• Submit all assignments on time
• Submit all assignments in accordance to instructions
• Ask questions if you are unsure
• Visit office hours or email me if you need extra help
• Bring a notebook and a folder to class for handouts and to take notes as
needed
• Keep Course Schedule with you and refer to it

HOMEWORK
• Introduction Post
• Watch the movie The Social Network
• Come up with 1 reason why Mark Zuckerberg, Eduardo Saverin, and the Winklevoss Twins are good
managers/leaders
• Come up with 1 reason why Mark Zuckerberg, Eduardo Saverin, and the Winklevoss Twins are bad
managers/leaders
• We will discuss your thoughts at the beginning of our next class, then see if your opinions change at
the end of the lecture

IS IT OVER?
•Yes, the old man at the front of the room is done talking
for today
•See you on Monday
•Class Dismissed

TODAY’S AGENDA 9/11/17
•The Social Network Manager Responses
•Define Management and Managers
•A History of Management
•Revisit The Social Network Thoughts
•Homework

THE SOCIAL NETWORK
•1 reason why Mark Zuckerberg, Eduardo Saverin, and
the Winklevoss Twins are good managers/leaders
•1 reason why Mark Zuckerberg, Eduardo Saverin, and
the Winklevoss Twins are bad managers/leaders

WHY STUDY MANAGEMENT?
•Investment in your future; you will be managed in the
job market and maybe even eventually manage others
•Helps you understand how organizations should [be]
run
•Your employment or interest in employment are
dependent on relationship and role management plays

MANAGERS AND MANAGEMENT
• Managers work in organizations
• Organizations work together for a common purpose
• Organizations have three primary characteristics:
• Goals – purpose of the organization
• People – those who act to meet the goals
• Structure – defines the people and goals

MANAGERS VS. NON-MANAGERS
•Generally, non-managers work on specific tasks
•Managers oversee non-managers; in addition to other
tasks
•Management Levels: Top Managers, Middle Managers,
First-Line Managers or Team Leaders
•Management Level can depend on organization type

MANAGEMENT LEVELS DEFINED
• Top Managers – make decisions
about the organization
• Middle Managers – oversee other
managers, but answer to above
• First-line Managers –
supervisorial role
• Team Leader – manage the work
of team members; often seen in
fast food industry

DEFINE MANAGEMENT
• The process of getting things done
effectively and efficiently; with and
through people.
• Effectiveness – ends; doing the right
things
• Efficiency – means; getting things done
right
• Both skills needed by managers

UNIVERSALITY?
• A manager’s level often determines the time given to decision making,
planning, leading, and organizing
• The size of an organization can also dictate what a manager does
• The type of company [non-profit vs. for-profit] influences management
requirements
• Scope or location of the organization can also influence management
[globalization]
• Therefore, there is not necessarily a universality to what managers do

WHAT DO MANAGERS DO?
• Four Functions Approach: Planning, Organizing, Leading, and
Controlling
• Mintzberg’s Management Roles Approach: interpersonal relationships,
informational transfer, and decision making
• The Four Functions Approach is preferred due to its clarity
• Management skills and competencies: conceptual, interpersonal,
political, and technical skills

MANAGEMENT HISTORY
• Frederick W. Taylor – Principles of Scientific Management
• One best way to do something
• Max Weber – ideal rational form of organization
• Henri Fayol – Fourteen Principles of Management
• Behaviorists – Robert Owen, Hugo Munsterberg, Mary Parker Follett,
Hawthorne Studies
• Additionally, Maslow, McGregor, and Herzberg who we will discuss at
length soon
• Their work helped create Organizational Behavior!

FAYOL’S FOURTEEN
 Division of work
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of individual
interests to the general interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure personnel
 Initiative
 Esprit de corps

OTHER APPROACHES
• Quantitative approach
• Total quality management (TQM)
• Systems approach (see picture)
• Contingency approach [if
something happened, then
something else would happen]

NEW WORLD OF MANAGEMENT
• Workplace and workforce in flux
• Customers are the lifeblood of organizations; so customer
service is key
• Need for innovation
• Social Media
• Sustainability

THE SOCIAL NETWORK REVISITED
•Did your opinions change based on today’s lecture?
•If so, why?

IS IT OVER?
for today
•See you on Wednesday
•Class Dismissed

•Define Motivation
•Motivation Theories
•Motivation in the Workplace
•Homework

DEFINE MOTIVATION
• The process which a person’s efforts are energized, directed and sustained toward a
specific goal.
• As you know if you are motivated to do something; you are generally exerting
yourself in some way.
• Primary theorists:
• Maslow
• McGregor
• Herzberg

HERZBERG’S TWO FACTORY THEORY

HERZBERG SATISFACTION VS.
DISSATISFACTION

MCGREGOR'S THEORY X AND THEORY Y
• Theory X
 Little ambition
 Dislike work
 Avoid responsibility
 Must be closely
controlled
• Theory Y
 Enjoy work
 Seek and accept
responsibility
 Exercise self-direction

MCCLELLAND'S THREE NEEDS THEORY
•Acquire 3 needs to be motivated in the workplace
•Need for achievement – achievement over
rewards
•Need for power – managers want power
•Need for affiliation - managers tend to avoid
establishing relationships with everyone

GST AND JOB PERFORMANCE
INFLUENCES
•Feedback – directs future progress
•Goal commitment – self-set goals; committed to
complete
•Self-efficacy – belief you can do it
•National culture – some countries do not
implement Goal Setting Theory

DESIGN JOBS TO MOTIVATE
•Internal rewards are obtained when an employee
learns that he or she personally has performed
well on a task he or she cares about.

INTEGRATION OF MOTIVATION THEORY

MOTIVATION CAN VARY
• Professional vs. nonprofessionals
• Professionals are experts in their field; more commitment and motivation to
complete their job
• Nonprofessionals are not experts in a field; therefore not committed, but can be
motivated
• Workplace diversity – people are different [such a broad topic an entire class
meeting devoted to it]
• The way the think
• The way the act
• The way they were trained in previous jobs
• The way they were taught

CULTURAL DIFFERENCES
•Due to differences in culture one
motivational tool or theory will not work
everywhere
•Two factor theory may be the only universally
applied motivation tool

OTHER WORKPLACE STRATEGIES
•Contingent workers – temporary or
contract
•Rewards programs
•Pay for performance – not commission,
but being paid extra for reaching defined
goals

HOMEWORK
•Maslow and Herzberg
Worksheet

•External Environments in Business
•Stakeholders
•Group Notes

DEFINING EXTERNAL ENVIRONMENT
• Factors, forces, situations, and events outside the organization
that affect its performance.
• Can apply to individuals; as well as the organization.
• Individuals may be influenced by external events and bring
them into the organization.

A FEW COMPONENTS
There can be other external forces acting on the organization,
but these are general components

ECONOMIC COMPONENTS
• Economic Inequality
• Sharing Economy
• Asset owners share with other individuals through peer-to-peer
service, for a set fee, their underutilized physical assets or their
knowledge, expertise, skills, or time.

DEMOGRAPHIC COMPONENTS
• Demographics refers to the characteristics of a population used for purposes of
social studies. It has a significant impact on how managers manage and include such
factors as age, income, sex, race, education level, ethnic makeup, employment
status, geographic location, and more.
• Age is a particularly important demographic for managers because the workplace
often encompasses different age groups.
• Baby Boomers (1946-1964) – your parents; struggle with technology
• Generation X (1965-1977) – have some tech know how
• Generation Y (1978-1994) – me; have some tech know how, but did not grow up with tech
• Millennials (1994-Present) – most of you; grew up with technology

EXTERNAL ENVIRONMENT AND
MANAGERS
Jobs and employment – can they afford to pay new employees or
keep current employees?
Assessing environmental uncertainty – how will the company
change?
Managing stakeholder relationships – stakeholders may change;
people get promoted, some have voting power

ASSESSING ENVIRONMENTAL
UNCERTAINTY

WHAT ARE STAKEHOLDERS?
• Stakeholders: any constituencies in an organization’s environment that
are affected by that organization’s decisions and actions.
• Stakeholders can be both external and internal groups
• Think of stakeholders as simply individuals or groups that have a stake
in the success of the company

DEFINING THESE STAKEHOLDERS
• Employees – want to keep job and earn more;
need organizational stability
• Customers – purchase products or obtain
services
• Unions – groups of employees that can dictate
practice
• Social and Political Action Groups – can bring
down a company if they do something wrong
• Competitors – can influence what the
organization does
• Shareholders – earn and lose money based on
company success
• Communities – need to be in agreement with
organizational missions
• Trade and Industry Associations – regulations
according to the type of organization
• Suppliers – provide the supply as demanded;
price cost
• Governments – laws associated with what the
organization does
• Media – can present the organization in a
certain way

WHY GOOD RELATIONS?
Can lead to desirable organizational outcomes – some
stakeholders have financial interest and allow for progress
Can affect organizational performance – all stakeholders
considered
Demonstrate doing the “right” thing – transparency; dependent
on stakeholders

GROUP NOTES
•Meet in your groups to start
discussing the option you will
choose for your group project,
brainstorm on what you will do,
and ask me questions as
appropriate

•Internal Environments in Business
•Culture

INTERNAL ENVIRONMENT
• External Environment – outside forces/factors impacting the
organization
• Internal Environment – forces/factors within the organization impacting
the organization
• Biggest Internal Environment factor is CULTURE
• Dictates how people act, behave, and complete their job

ORGANIZATIONAL CULTURE
•Defined as
•Shared values, principles, traditions, and ways of
doing things that influence the way an organization’s
members act.
•Perceived – cannot be touched or seen
•Descriptive – concern with how culture is described
•Shared – described in similar terms

LEARNING ORGANIZATIONAL CULTURE

CULTURE ON MANAGERS
Effect on what employees do and how they behave
- unwritten rules of an organization
- actions in accordance with organizational culture
Effect on what managers do
- planning
- organizing
- leading
- controlling

MANAGERIAL DECISIONS AND CULTURE

CULTURE ON EMPLOYEES
•Strong cultures: cultures in which the key values
are deeply held and widely shared.
•Strong Cultures Can:
•Substitute for formal rules and regulations
•Create predictability, orderliness, and
consistency

•Define Globalization
•Why Does Globalization Matter?

DEFINE GLOBALIZATION
• What Does it Mean to Be “Global”?
• Exchanging goods and services with consumers in other countries.
• Using managerial and employee talent from other countries.
• Using financial sources and resources outside home country.
Global village: a boundaryless world where goods and services are
produced and marketed worldwide.

TYPES OF GLOBAL ORGANIZATIONS
• MNC or Multinational Corporation: Any type of international company that maintains
operations in multiple countries. Three types are:
1. Multidomestic corporation: Management and other decisions are decentralized to the
local country in which it is operating. Relies on local employees to manage the business,
tailors strategies to each country’s unique characteristics, and is used by many consumer
product companies.
2. Transnational (borderless) organization: An MNC where artificial geographical boundaries
are eliminated. Country of origin or where business is conducted becomes irrelevant;
increases efficiency and effectiveness in a competitive global marketplace.
3. Global corporation: An MNC in which management and other decisions are centralized in
the home country. World market is treated as an integrated whole; focus is on control and
global efficiency.

MANAGING GLOBALLY
• A person with a parochial attitude cannot succeed in today’s world.
• A global world presents cultural challenges for managers, especially U.S.
managers who hold a parochial view of the business world.
• Parochialism is a narrow focus in which managers see things only
through their own eyes and from their own perspectives—not
recognizing that countries have different values, morals, customs,
political and economic systems, and laws—which can affect how a
business is managed.

GLOBE
• Global Leadership and Organizational Behavior Effectiveness (GLOBE)
• Geert Hofstede’s widely-referenced framework on cultural variations
has provided insight into much of what we know about cultural
differences among countries. A more recent research program—called
Global Leadership and Organizational Behavior Effectiveness (or
GLOBE)—continues the ongoing cross-cultural investigation of
leadership and national culture. GLOBE’s findings both extend
Hofstede’s research and confirm the validity of his original dimensions.

GLOBE – 9 DIFFERENCES
Assertiveness
Future orientation
Gender differentiation
Uncertainty avoidance
Power distance
Individualism/ Collectivism
In-group collectivism
Performance orientation
Humane orientation

•Social Responsibility
•Sustainability
•Ethics

SOCIAL EXPECTATIONS AND
RESPONSIBILITY
• Many managers believe that society expects organizations and managers to be responsible and
ethical.
• Social responsibility refers to a business’s intention, beyond its legal and economic obligations, to do
the right things and act in ways that are good for society. Social responsibility adds an ethical
imperative to do those things that make society better and to avoid those things that could make it
worse.
• Social obligations are activities a business engages in to meet certain economic and legal
responsibilities. It does the minimum that the law requires and only pursues social goals to the
extent that they contribute to its economic goals.
• Social responsiveness is characteristic of the business firm that engages in social actions in response
to a popular social need. Managers in these companies are guided by social norms and values and
make practical, market-oriented decisions about their actions.

SOCIAL INVOLVEMENT AND
PERFORMANCE
• Numerous studies have examined this issue, and though most
found a small positive relationship, no generalizable
conclusions can be made because these studies have shown
that the relationship is affected by various contextual factors
such as firm size, industry, economic conditions, and
regulatory environment.

SUSTAINABILITY
•a company’s ability to achieve its business goals and
increase long-term shareholder value by integrating
economic, environmental, and social opportunities into
its business strategies.

ETHICS
• Ethics commonly refers to a set of rules or principles that defines right and wrong
conduct.
• What determines ethical behavior?
• Morality
• Values
• Personality
• Experience
• Organization’s culture
• Issue being faced

DIFFERING ETHICAL VIEWS
The utilitarian view of ethics says that ethical decisions are made solely on the basis of
their outcomes or consequences. The goal of utilitarianism is to provide the greatest good
for the greatest number of people.
In the rights view of ethics, individuals are concerned with respecting and protecting
individual liberties and privileges such as the right of free consent, the right to privacy,
and the right of free speech. Under this view, making ethical decisions is simple because
the goal is to avoid interfering with the rights of others who might be affected by the
decision.
Lastly, under the theory of justice view of ethics, an individual is equitable, fair, and
impartial in making decisions. For instance, such a manager would pay individuals of
similar skill, performance, or responsibility level the same wage and wouldn’t base that
decision on gender, personality, or favoritism.

ENCOURAGING ETHICS
• Three ways in which managers can encourage ethical behavior and
create a comprehensive ethics program include:
Establishing a code of ethics
Providing ethical leadership
Offering ethics training
• A code of ethics should be specific enough to guide organizational
members in what they’re supposed to do, yet loose enough to allow for
freedom of judgment.

ETHICAL LEADERSHIP
• Of critical importance is ethical leadership, which sets the tone for
employee behavior.
• Managers must be good ethical role models both in words and, more
importantly, in actions, which send even stronger signals to employees.
• Therefore, if managers take company resources for their personal use,
inflate their expense accounts, or give favored treatment to friends,
they imply that such behavior is acceptable from all employees.
• When an employee does something unethical, managers must punish
the offender and make the outcome visible to everyone in the
organization.

ETHICAL TRAINING
•Can ethics be taught?
•Critics: value systems learned in youth.
•Proponents: values can be learned and ethical problem
solving increases ethical behavior, moral development,
awareness.

•Workplace Diversity
•Equal Opportunity Employment
•Answer Individual Q’s on Case Studies
•Homework

GENERIC DIVERSITY
• Diversity is visible in age, gender, race, physical attributes,
styles of dress, and personality type.
• Workplace diversity applies to diversity within the workplace
• Whether in a workplace or classroom, diversity is visible in age,
gender, race, physical attributes, styles of dress, and even
personality type.

WORKPLACE DIVERSITY
•Today’s domestic and global organizational workplaces
reflect tremendous diversity and managers in those
workplaces are looking for ways to value and develop
that diversity.
•Workforce diversity is defined as the ways in which
people in an organization are different from and similar
to one another.

WORKPLACE DIVERSITY CONT.
• Diversity has been one of the foremost business topics over the last two decades, along
with such modern business disciplines as quality, leadership, and ethics.
• Based in civil rights legislation and social justice, the word “diversity” has traditionally been
associated with fair hiring practices and the prevention of discrimination and inequality.
• Today, diversity focuses on both the differences and similarities of employees, which
reinforces the belief that managers and organizations should view employees as having
qualities in common as well as differences, and find ways to develop strong relationships
with and engage their entire workforce.

WORK-LIFE BALANCE
• Managers are adapting to changes taking place in the workforce
with such diversity initiatives as work-life balance programs,
contingent jobs, and recognition of generational differences.
• Due to 24/7 global business and technological access and dual-
career families, many organizations now offer family-friendly
benefits that provide flexible scheduling options, on-site child care,
flextime, job sharing, telecommuting, part-time employment, and
more.

CONTINGENT WORKERS
• The labor force has begun shifting away from traditional full-
time jobs toward a contingent workforce of part-time,
temporary, and contract workers who are hired on an as-
needed basis.
• Supervising and motivating such independent contractors has
its own set of challenges and expectations for managers.

GENERATIONAL DIFFERENCES
• Generational differences present challenges ranging from
appearance to technology and management style, which can
be accommodated by flexibility.
• For example, Gen Y employees want bosses who are open-
minded; experts in their field, even if they aren’t tech savvy;
organized; and want teachers who respect their need for work-
life balance, provide constant feedback, communicate in
compelling ways, and provide stimulating learning.

EOE HANDOUT
•Discuss main points in class
•Have students read EOE Handout for homework

HOMEWORK
•Ethics Worksheet
•Read EOE Handout
•Case Study 1 due next Wed

•Decision Making
•How do Managers Make Decisions
•Decision Making Conditions
•Group Decision Making
•Contemporary Issues in Decision Making
•Homework

WHAT IS DECISION MAKING?
•Decision making can be viewed as an eight-step process
that involves identifying a problem, selecting an
alternative, and evaluating the decision’s effectiveness.
•Managers use an 8 step approach that can help you
come to individual or group decisions

MANAGERS’ DECISION MAKING
PROCESS

STEP 1 – IDENTIFYING A DECISION
PROBLEM
Step 1 in the decision-making process begins with the identification of a
problem—that is, a discrepancy between an existing state of affairs and
the desired state of affairs.
• How do managers become aware of such a discrepancy? They have to
compare the current state of affairs with some standard, which can be
past performance, previously set goals, or the performance of another
unit within the organization or in another organization. If, for example, a
car is no longer worth repairing, then the best decision may be to
purchase another car.

STEP 2 – IDENTIFYING DECISION
CRITERIA
• Once a manager has identified a problem that needs attention, he or
she must identify the decision criteria that will be important in solving
the problem.
• Note that in this step in the decision-making process, what is not
identified is as important as what is. Therefore, if a decision maker
doesn’t identify a particular factor in Step 2, that factor is deemed
irrelevant.
• The decision criteria is dependent on the situation

STEP 3 – WEIGHTING CRITERIA
• In many decision-making situations, the criteria are not equally
important, so it’s necessary to allocate weights to the items listed in
Step 2 to factor their relative priority into the decision. This is Step 3 of
the decision-making process.
• A simple approach is to give the most important criterion a weight of 10
and then assign weights to the rest of the criteria against that standard
to indicate their degree of importance. Thus, a criterion that you gave a
5 is only half as important as the highest-rated criterion.

STEP 4 – DEVELOP ALTERNATIVES
• In Step 4, the decision maker lists the alternatives that could resolve the
problem. The decision maker only lists the alternatives and does not
attempt to appraise them in this step.
• Let’s assume that our subject has identified 12 cars as viable choices:
Jeep Compass, Ford Focus, Hyundai Elantra, Ford Fiesta SES, Volkswagen
Golf, Toyota Prius, Mazda 3 MT, Kia Soul, BMW 335, Nissan Cube, Toyota
Camry, and Honda Fit Sport MT.

STEP 5 – ANALYZING ALTERNATIVES
• Once the alternatives have been identified, the decision maker moves
to Step 5—that is, critically analyzing each alternative by appraising it
against the criteria. The strengths and weaknesses of each alternative
become evident when compared with the criteria and weights
established in Steps 2 and 3.
• Most decisions contain judgments and these judgments are reflected in
which criteria is chosen in Step 2, the weights given to those criteria,
and the evaluation of alternatives.

STEP 6 – SELECTING THE BEST
ALTERNATIVE
•Step 6 is the critical act of choosing the best alternative
from among those assessed. Since we determined all
the pertinent factors in the decision, weighted them
appropriately, and identified the viable alternatives, we
choose the alternative that generates the highest score
in Step 5.

STEP 7 – IMPLEMENTING THE DECISION
• Although the choice process is now complete, the decision may still fail if it’s not
implemented properly.
• Step 7—decision implementation—involves conveying the decision to those
affected and to obtaining their commitment. The people who must carry out a
decision are more likely to enthusiastically endorse the outcome if they participate
in the decision-making process. Also, as we’ll discuss later in this chapter, groups or
committees can help a manager achieve commitment.
• This step includes putting your decision into action

STEP 8 – EVALUATING THE DECISION
•In Step 8, the last step in the decision-making process,
managers appraise the result of the decision to see
whether the problem was resolved.
•Did the alternative chosen in Step 6 and implemented
in Step 7 accomplish the desired result?

THREE MANAGERIAL DECISION MAKING
APPROACHES
•Managers use three approaches to making
decisions:
1. Rational decision making
2. Bounded rational decision making, and
3. Intuition.

RATIONAL DECISION MAKING
• Rational decision making: choices that are consistent and value-maximizing within
specified constraints.
• Rationality is not a very realistic approach. Bounded rationality is more realistic.
• Since most decisions that managers make don’t fit the assumptions of perfect rationality, a
more realistic approach to describing how managers make decisions is the concept of
bounded rationality. This means that managers make decisions rationally but are limited
(or bounded) by their ability to process information. Because they can’t possibly analyze all
information on all alternatives, managers satisfice, rather than maximize. That is, they
accept solutions that are “good enough.”
• Remember that decision making is also influenced by the organization’s culture, internal
politics, power considerations, and escalation of commitment, which is an increased
commitment to a previous decision despite evidence that it may have been wrong.

DECISION MAKING CONDITIONS
• The ideal situation for making decisions is one of certainty, which is a situation where a
manager can make accurate decisions because the outcome of every alternative is known.
• However, a far more common situation is one of risk, in which the decision maker is able to
estimate the likelihood of certain outcomes based on data from past personal experiences
or secondary information that lets the manager assign probabilities to different
alternatives.
• Uncertainty means that the decision maker is not certain about the outcomes and can’t
even make reasonable probability estimates. The choice of alternatives is influenced by the
limited amount of information and by the psychological orientation of the decision maker.

TYPES OF PROBLEMS
Structured problem: straightforward, familiar, easily
defined.
Unstructured problem: new or unusual for which
information is ambiguous or incomplete.

TYPES OF DECISIONS
For example, what does a manager do if an auto mechanic damages a
customer’s rim while changing a tire? Because the company probably has a
standardized method for handling this type of problem, it’s considered a
programmed decision, which tends to rely heavily on previous solutions—such
as replacing the rim at the company’s expense.
Examples of nonprogrammed decisions include deciding whether to acquire
another organization or to sell off an unprofitable division. Such decisions are
unique and nonrecurring so when a manager confronts an unstructured
problem, no cut-and-dried solution is available.

TYPES OF DECISIONS – A VISUAL

GROUP DECISIONS
• What types of groups make decisions? Committees, task forces, review panels, and
work teams are some examples
• Many decisions in organizations, especially important decisions that have far-
reaching effects on organizational activities and personnel, are typically made in
groups such as committees, task forces, review panels, or work teams.
• In many cases, these groups represent the people who will be most affected by the
decisions being made because they are often the best qualified to make decisions
that affect them.

ADVANTAGES OF GROUP DECISIONS
• Decisions can be made by individuals or by groups—each approach has its own set of strengths and neither is ideal for all
situations.
• Advantages:
More complete information.
Diversity of experiences and perspectives brought to the decision process.
More alternatives generated due to greater quantity and diversity of information, especially when group members represent
different specialties.
Increased acceptance of a solution by having people who will be affected by a certain solution and who will help implement it
participate in the decision.
Increased legitimacy because the group decision-making process is consistent with democratic ideals, and decisions made by
groups may be perceived as more legitimate than those made by a single person, which can appear autocratic and arbitrary.

DISADVANTAGES OF GROUP DECISIONS
• Disadvantages:
Time-consuming—assembling the group, getting decisions made.
Minority domination can unduly influence final decision because group members are never
perfectly equal—they differ in rank, experience, knowledge about the problem, influence on
other members, verbal skills, assertiveness, etc.
Ambiguous responsibility. Group members share responsibility BUT who is actually responsible
for final outcome? Individual Decision—it’s clear. Group decision—it’s not.
Pressures to conform: groupthink, a form of conformity in which group members withhold
deviant, minority, or unpopular views in order to give the appearance of agreement.

GROUPTHINK
Groupthink hinders decision making and can jeopardize the quality of the
decision by:
Undermining critical thinking in the group.
Affecting a group’s ability to objectively appraise alternatives.
Deterring individuals from critically appraising unusual, minority, or unpopular
views.

GROUP OR INDIVIDUAL
• Whether groups are more effective than individuals depends on the criteria used for
defining effectiveness, such as accuracy, speed, creativity, and acceptance.
• Individuals are faster at decision making.
• Groups tend to be more accurate, make better decisions, be more creative, and be
more effective in terms of acceptance of the final solution.
• With few exceptions, group decision making consumes more work hours than individual
decision making does.
• Ultimately, primary consideration must be given to assessing whether increases in
effectiveness outweigh the losses in efficiency.

IMPROVING GROUP DECISION MAKING
Brainstorming
The nominal group technique
Electronic meetings

CONTEMPORARY ISSUES
• National culture - influences the way decisions are made and the degree of risk involved.
• Creativity lets the decision maker: Understand a problem more fully, See problems others
can’t, and Identify all viable alternatives
• Design Thinking - approaching management problems as designers approach design
problems.
• Big Data - the vast amounts of quantifiable information that can be analyzed by highly
sophisticated data processing.

HOMEWORK
•Decision Scenarios
Worksheet

•Planning
•Why Plan?
•Strategic Management
•Goal Setting
•Contemporary Issues in Planning
•Homework

WHAT IS PLANNING? WHY PLAN?
• Planning: the primary management function.
• Planning establishes the basis for all the other
things managers do as they organize, lead, and
control.
• Planning is deciding on the organization’s
objectives or goals and getting the job done by
establishing an overall strategy for achieving
those goals and developing a comprehensive
hierarchy of plans to integrate and coordinate
activities.

NEGATIVES OF FORMAL PLANNING
• May create rigidity
• Can’t replace intuition and creativity
• Focuses attention on today’s success, not
tomorrow’s survival
• Reinforces success, which may lead to failure

DOES IT PAY TO PLAN?
Higher profits
Higher return on assets
Improved quality of planning
Appropriate implementation

STRATEGIC MANAGEMENT
• What managers do to develop an organization’s strategies
It has a positive impact on organizational performance
It prepares managers to cope with changing situations
It guides managers to examine relevant factors in planning
future action

6 STEPS
• STEP 1 of the strategic management process is to identify the
organization’s current mission, goals, and strategies.
• In STEP 2, managers conduct an external analysis
• In STEP 3, managers conduct an internal analysis
• STEP 4 is formulating strategies.
• STEP 5 involves implementing strategies.
• STEP 6 is evaluating results.

STRATEGIES
• Growth strategy
• Stability and Renewal Strategies
• Competitive Strategy
• Functional Strategy - Those strategies used by an
organization’s various functional departments (marketing,
operations, finance/accounting, human resources, and so
forth) to support the competitive strategy.

STRATEGIC WEAPONS
• Customer service
• Employee skills & loyalty
• Innovation
• Quality
• Social media
• Big data

COMPETITIVE ADVANTAGE
• Developing an effective competitive strategy requires an understanding of the
organization’s competitive advantage, which is whatever sets it apart from the
competition. That distinctive edge comes from the organization’s core
competencies. Competitive advantage also can come from the company’s
resources—something that the organization has that its competitors don’t.
1. Cost leadership strategy
2. Differentiation strategy
3. Focus strategy—involves a cost advantage (or “cost focus”)
4. Stuck in the middle
• Use strategic management to get a sustainable competitive advantage.

SETTING GOALS
• Planning involves two important aspects: goals, which are objectives, and plans, which are desired outcomes or
targets.
• Plans guide managers’ decisions and form the criteria against which work results are measured. They usually
include resource allocations, budgets, schedules, and other necessary actions to accomplish multiple goals.
• Most company’s goals can be classified as either strategic or financial. Financial goals are related to the financial
performance of the organization, while strategic goals are related to all other areas of an organization’s
performance.
• Stated goals are official statements of an organization’s goals, which it wants its stakeholders to believe.
• But if you want to know an organization’s real goals—those goals an organization actually pursues—observe
what organizational members are doing. Actions define priorities.

MANAGEMENT BY OBJECTIVES
• Goal specificity
• Participative decision making
• Explicit time period
• Performance feedback

STEPS IN GOAL SETTING
1. Review the organization’s mission and employees’ key job
tasks.
2. Evaluate available resources.
3. Determine the goals individually or with input from others.
4. Make sure goals are well-written and communicate to all who
need to know.
5. Build in feedback mechanisms to assess goal progress.
6. Link rewards to goal attainment.

APPROACHES TO PLANNING
Top-down traditional approach
Development by organizational members

CONTEMPORARY ISSUES
•Two issues currently affecting planning
are:
1. Planning effectively in dynamic
environments, and
2.How managers can use environmental
scanning, especially competitive
intelligence.

HOMEWORK
•Goal Setting Worksheet
•Case Study 1 – Dropbox on
eCampus by 6PM Wednesday

•Organization Design
•Authority vs. Power
•Structure
•Challenges
•Homework

ELEMENTS OF ORGANIZATIONAL
STRUCTURE
• Work specialization
• Departmentalization
• Authority and responsibility
• Span of control
• Centralization vs. decentralization
• Formalization

TYPES OF AUTHORITY RELATIONSHIPS

UNITY OF COMMAND
• But this structure begs the question, “How many bosses does an
employee report to?” Traditionally, the unity of command structure, in
which each employee reports to only one manager, was the norm. In
instances when the unity of command had to be violated, a clear
separation of activities and a supervisor responsible for each was
always explicitly designated.
• Today, advances in technology allow employees access to company
information and communication company-wide without going through
the formal chain of command.

POWER VS AUTHORITY IN WORDS
•Authority: a right whose
legitimacy is based on an
authority figure’s position
in the organization; it goes
with the job.
•Power: an individual’s
ability to influence
decisions.

POWER VS AUTHORITY IN PICTURES

SPAN OF CONTROL
•Effective and efficient span depends on:
Employee experience and training (more they have, larger span)
Similarity of employee tasks (more similarity, larger span)
Complexity of those tasks (more complex, smaller span)

CENTRALIZATION AND
DECENTRALIZATION
•Centralization: decision
making takes place at
upper levels of the
organization.
•Decentralization: lower-
level managers provide
input or actually make
decisions.

FORMALIZATION
•How standardized an organization’s jobs
are and the extent to which employee
behavior is guided by rules and
procedures

STRATEGY AND STRUCTURE
•Certain structural designs work best with different
organizational strategies:
•Simple strategy = Simple structure
•Elaborate strategy = More complex structure

SIZE AND STRUCTURE
•Organic: less than 2,000 employees
•Mechanistic: more than 2,000 employees

OTHER STRUCTURES
•Technology
•Environment
•Functional
•Divisional
•Team
•Project

TRADITIONAL ORGANIZATIONAL
DESIGNS

CONTEMPORARY ORGANIZATIONAL
DESIGN

BOUNDARYLESS ORGANIZATIONS
•An organization whose design is not
imposed by a predefined structure

ORGANIZATIONAL DESIGN CHALLENGES
Keeping employees connected
Managing global structural issues
Building a learning organization
Designing flexible work arrangements

HOMEWORK
•Dropbox on eCampus your Group
Project 1 article for review by 10/18
•I may need to advise you on
changes before you present on
10/23

IS IT OVER?
for today
•See you on Wednesday 10/18. No class on Monday for
Fall Break
•Class Dismissed

•Human Resource Management
•What is Involved
•Homework

HUMAN RESOURCE MANAGEMENT
• The quality of an organization is, to a large degree, determined by the
quality of the people it employs. Staffing and HRM decisions and
actions are critical to ensuring that the organization hires and keeps the
right people. Getting that done is what human resource management
(HRM) is all about.

AFFIRMATIVE ACTION
•Programs that ensure that decisions and practices
enhance the employment, upgrading, and retention of
members of protected groups

GETTING EMPLOYEES
•HRM Process:
1. Employment planning
2. Recruitment and downsizing
3. Selection

ASSESSING EMPLOYEES
• Human Resource Inventory
• Job Analysis
• Job Description
• Job Specification

FUTURE NEEDS
•Demand for human resources (employees) is a result of
the demand for the organization’s products or services

RELIABILITY VS VALIDITY
•Reliability: the
degree to which a
selection device
measures the same
thing consistently.
•Validity: the proven
relationship
between a
selection device
and some relevant
criterion.

SELECTION DEVICES
•Selection devices help reduce potential errors
•Performance-simulation tests
•Work Sampling
•Assessment Centers

TYPES OF ORIENTATION
Job orientation
Work unit orientation
Organization orientation

PROVIDING SKILLS AND KNOWLEDGE

ISSUES WITH PERFORMANCE
EVALUATION
Systems may be outdated due to:
Downsizing
Project teams
When An Employee’s Performance is Not Up to Par

WORKFORCE DIVERSITY
Nontraditional recruitment sources
Non-discriminatory selection
Accommodation of diverse needs
Diversity consciousness workshops
Mentoring programs

SEXUAL HARASSMENT
•Any unwanted action or activity of a
sexual nature that explicitly or implicitly
affects an individual’s employment,
performance, or work environment

CONTROLLING HR COSTS
• Since 2002, health care costs have risen, hitting $3.2 trillion in 2013, and in 2014
rising 5 percent over the previous year. The new federal health care mandates are
expected to add to those costs. As a result, some organizations are instituting
wellness programs and initiatives aimed at reducing obesity and smoking and
promoting fitness through incentives.
• Employee pension plans are the other area where organizations are looking to
control costs. Pension commitments have become such an enormous burden that
most companies can no longer afford them. Obviously, the pension issue is one that
directly affects HR decisions when organizations want to attract talented, capable
employees by offering them desirable benefits.

HOMEWORK
•Be prepared for group
presentations on Monday
•Begin working on the take
home portion of Exam 1

•1st Group Presentation/Project
•Homework – Take Home Part of Exam [see
eCampus]

•Submit Take Home Part of Exam
Before Class
•Exam 1
•No Homework

•Organizational Change
•Resistance Change
•Stress
•Innovation
•Homework

FACTORS
External Factors:
 Marketplace
 Government laws and
regulations
 Technology
 Labor markets
 Economic changes
Internal Factors:
 Strategy
 Composition of
workforce
 Employee attitudes

CHANGE
• Change agent: people who acts as catalysts and assume responsibility
for managing the change process.
“Calm waters” metaphor
“White-water rapids” metaphor

CALM WATERS
• Two metaphors representing
distinctly different approaches to
understanding and responding to
change are used.
• The “calm waters” metaphor
envisions the organization as a large
ship crossing a calm sea.
• Change appears as the occasional
storm, a brief distraction in an
otherwise calm and predictable trip.

WHITE WATER RAPIDS
• In the “white-water rapids” metaphor,
the organization is seen as a small raft
navigating a raging river with
uninterrupted white-water rapids.
• Aboard the raft are half a dozen people
who have never worked together
before, who are totally unfamiliar with
the river, and who are unsure of their
eventual destination.
• In this metaphor, change is the status
quo and managing change is a
continual process.
•Leading a company
in change, in an
industry in change

IMPLEMENTING CHANGE
Organizational
Development (OD)
•efforts that assist
organizational members
with a planned change by
focusing on their attitudes
and values.
OD Efforts:
1. Survey feedback
2. Process consultation
3. Team-building
4. Intergroup
development

CREATIVITY VS. INNOVATION
•Creativity: the ability to
produce novel and useful
ideas.
•Innovation: the process of
taking a creative idea and
turning it into a useful
product, service, or
method of operation.

INNOVATION
The Process:
Perception
Incubation
Inspiration
Innovation

INNOVATION VARIABLES
Structural Variables:
1. Organic structures
2. Abundant resources
3. High interunit
communication
4. Minimal time pressure
5. Work and nonwork support
Cultural Variables:
 Acceptance of ambiguity
 Tolerance of the impractical
 Low external controls
 Tolerance of risks
 Tolerance of conflict
 Focus on ends
 Open-system focus
 Positive feedback

HR AND INNOVATION
Innovative organizations
• (1) actively promote the training and development of their members so
the members’ knowledge remains current,
• (2) they offer their employees high job security to reduce the fear of
getting fired for making mistakes, and
• (3) they encourage individuals to become idea champions by actively
and enthusiastically supporting new ideas, building support,
overcoming resistance, and ensuring that innovations are implemented.

HOMEWORK
•Read Change and Stress
Worksheet

•Organizational Behavior
•Attitudes
•Contemporary Issues

OB GOALS
1. Employee productivity
2. Absenteeism
3. Turnover
4. Organizational citizenship behavior
5. Job satisfaction
6. Workplace misbehavior

ATTITUDES AND JOB PERFORMANCE
•Job satisfaction
•Job involvement
•Organizational commitment
•Employee engagement

ATTITUDES AND CONSISTENCY
Cognitive dissonance: any incompatibility
or inconsistency between attitudes or
between behavior and attitudes.

UNDERSTANDING ATTITUDES
Satisfied employees have lower rates of turnover and
absenteeism
Satisfied employees perform better on the job
Survey employees about their attitudes
Employees will try to reduce dissonance.

CONTEMPORARY ISSUES
Negative Behavior
in the Workplace:
Survey of U.S. Employees:
10% witnessed rudeness daily
20% were targets of incivility
at least once/week

•Personality Theories
•Perception
•Learning Theories
•Homework

PERSONALITY THEORIES
Personality:
a unique combination of emotional, thought, and
behavioral patterns that affect how a person reacts to
situations and interacts with others.

BIG 5 OF PERSONALITY
The Big Five factors are:
1. Extraversion
2. Agreeableness
3. Conscientious
4. Emotional stability
5. Openness to experience

EMOTIONAL INTELLIGENCE
Five dimensions:
• Self-awareness
• Self-management
• Self-motivation
• Empathy
• Social skills

UNDERSTANDING PERSONALITY
1. Job-person compatibility
2. Understanding different approaches to work
3. Being a better manager

DISTORTED ATTRIBUTIONS
Fundamental attribution error:
the tendency to underestimate the influence of external factors and
overestimate the influence of internal factors when making judgments
about the behavior of others.
Self-serving bias:
the tendency for individuals to attribute their successes to internal
factors while putting the blame for failures on external factors.

UNDERSTANDING PERCEPTION
•Employees react to perception, not reality
•The potential for perceptual distortion
exists

SOCIAL LEARNING THEORY
Learning both through:
observation and direct experience

SHAPING BEHAVIOR
1. Positive reinforcement
2. Negative reinforcement
3. Punishment
4. Extinction

MANAGING LEARNING
• Watch what you reward
• Watch what you do
• Employees are going to learn on the job.
• If managers want behavior A, but reward behavior B, they shouldn’t be
surprised to find employees learning to engage in behavior B.
• Similarly, managers should expect that employees will look to them as
models.

HOMEWORK
•Submit Group Project 2 for
feedback

•Group Development
•Group Behavior
•Group Effectiveness
•Contemporary Issues
•Homework

GROUP EFFECTIVENESS
• The assumption that a group becomes more effective as it progresses
through the first four stages may be generally true, but what makes a
group effective is complex.
• Under some conditions, high levels of conflict are conducive to high
levels of group performance.
• There might be situations in which groups in the storming stage
outperform those in the norming or performing stages.

GROUP BEHAVIOR
• The basic foundation for understanding group behavior
includes:
• Roles
• Norms and conformity
• Status systems
• Group size
• Group cohesiveness

NORMS
• Norms are acceptable standards shared by the group’s members.
• Although each group has its own unique set of norms, common classes
of norms appear in most organizations. These norms focus on:
• Effort and performance. This is probably the most widespread norm
and it can be extremely powerful in affecting an individual employee’s
performance.
• Dress codes dictate what’s acceptable to wear to work.

CONFORMITY
Does the desire to be accepted as a part of a group leave
one susceptible to conforming to the group’s norms or
exert pressure that’s strong enough to change a
member’s attitude and behavior?

STATUS SYSTEMS
Status:
a prestige grading, position, or rank within a group.

TYPES OF WORK TEAMS
• Problem solving teams
• Self-managed work teams
• Cross-functional teams
• Virtual teams

WORK DESIGN
Key work design elements:
• Autonomy
• Using a variety of skills
• Completing a whole and identifiable task
• Impact of task/project on others

TEAM PROCESSES
Variables related to effectiveness:
• Common plan/purpose
• Specific goals
• Team efficacy
• Task conflict
• Minimal social loafing

TEAM BEHAVIOR AND REWARDS
External rewards
Promotions
Pay raises
Other forms of
recognition
Inherent rewards
Camaraderie
Personal
development
Helping
teammates

GLOBAL TEAM STRUCTURE
• Conformity
• Status
• Social loafing
• Cohesiveness

GLOBAL TEAM PROCESSES
• Communication issues
• Managing conflict
• Virtual teams

TEAM TESTS: ARE TEAMS NEEDED?
Three Questions:
1.Can the work be done better by more than one person?
2.Does the work create a common purpose that’s more than the
sum of individual goals?
3.Is there interdependence between tasks?

HOMEWORK
•Group Assessment
Worksheet
•Be ready to present Group
Project 2 on Monday

•2nd Group Project/Presentation
•No Homework

•Leadership
•Leadership Theories
•Trust
•Homework

LEADERS AND LEADERSHIP
Leader: someone who can influence others and who has
managerial authority.
Leadership: the process of leading a group and
influencing that group to achieve its goals.

SITUATIONAL LEADERSHIP
•Which leadership styles might be suitable
in different situations, and what are those
different situations?

LEADER-MEMBER EXCHANGE THEORY
•A leadership theory that says leaders
create in-groups and out-groups and
those in the in-group will have higher
performance ratings, less turnover, and
greater job satisfaction.

TYPES OF LEADERS
•Transactional Leaders: lead primarily by using social exchanges (or
transactions).
•Transformational Leaders: stimulate and inspire (transform) followers to
achieve extraordinary outcomes.
•Charismatic leaders
•Visionary leaders

CONTEMPORARY ISSUES
•Employee Empowerment
•National culture
•Emotional Intelligence

TRUST
Building trust:
 Practice openness
 Be fair
 Speak your feelings
 Tell the truth
 Be consistent
 Fulfill your promises
 Maintain confidences
 Demonstrate confidence

•Communication
•Managerial Communication
•Homework

EFFECTIVE COMMUNICATION
• Communication: a transfer of understanding and meaning from one person to
another.

ENCODING, DECODING AND FEEDBACK
Decoding: translating a received message.
Feedback: checking to see how
successfully a message has been
transferred.

COMMUNICATION CHANNELS
• Formal channels
• Informal channels
• Written communication
• Verbal communication
• The “grapevine”
• Nonverbal cues

TECH AND COMMUNICATION
•Networked communication
•Wireless communication
•Applications

CONTEMPORARY ISSUES
• Communication issues
• Legal issues
• Security issues
• Lack of personal interaction
• Knowledge management
• Customer service
• Strong service culture

ETHICAL COMMUNICATION
•Presented material that contains all the relevant
information, is true in every sense, and is not deceptive
in any way.

HOMEWORK
•No homework
•No class Wednesday; enjoy
Thanksgiving

•Control
•Control Process
•Types of Control
•Homework

MEASURING PERFORMANCE
• Sources of information:
• Personal observation
• Statistical reports
• Oral reports
• Written reports
• What managers measure is probably more important to the control
process than how they measure.

COMPARING AND CORRECTING
PERFORMANCE

REVISING STANDARDS
• If performance consistently exceeds the goal, then the goal may need to
be raised.
• If the variance results from an unrealistic standard—one that is set too
low or too high—the standard, not the performance, needs corrective
action. For example, if performance consistently exceeds the goal, then
a manager should look at whether the goal is too easy and needs to be
adjusted.

OTHER TYPES OF CONTROL
•Concurrent control - Control that takes place while a
work activity is in progress.
•Feedback control - Control that takes place after a work
activity is done.

KEEPING TRACK
• Budgets are used for both planning and controlling.
• Management information system (MIS): a system used to provide management with needed information on a
regular basis
• It’s also important to keep track of employee performance. This includes assessing whether employees are doing
their jobs as planned and meeting goals that have been set. If not, employee counseling or employee discipline
may be needed.
• The balanced scorecard approach looks at more than the financial perspective by typically looking at four areas
that contribute to a company’s performance: financial, customer, internal processes, and
people/innovation/growth assets.
• According to this approach, managers are supposed to develop goals in each of the four areas and then
measure whether the goals are being met.

CONTEMPORARY ISSUES
•Cross-cultural differences
•Workplace concerns
•Controlling technology usage
•Controlling theft
•Controlling violence

•Operations Management
•Chain Management
•Value Chain Management

FIRMS
•Manufacturing firms produce physical goods, such as
cars or food products.
•Service firms produce nonphysical outputs in the form
of services, such as medical and transportation services.

PRODUCTIVITY
•The truly effective organization will increase
productivity by successfully integrating people into the
overall operations system.

OPS MGMT. AND COMPANY STRATEGY
•Successful organizations recognize the
crucial role that operations management
plays as part of the overall organizational
strategy to achieve and maintain global
leadership.

ORGANIZATIONAL PROCESSES AND
LEADERSHIP
 Better demand forecasting
 Select functions done collaboratively with other partners in
the chain
 New measures needed for evaluating the performance of
various activities along the chain

EMPLOYEES AND HR
Flexible job design
Effective hiring process
Ongoing training

PROJECT MANAGEMENT
•The task of getting project activities done on time,
within budget, and according to specifications.
•GANTT
•LOAD
•PERT

•Quantitative Decision Making

QUEUING THEORY
• n = 3 customers
• arrival rate = 2 per minute
• service rate = 4 minutes per customer

•Career
•Entrepreneurship

CAREER
Career: a sequence of work positions held by a person
during his or her lifetime.
Boundaryless career: when an individual takes personal
responsibility for his or her own career.

CAREER SUCCESS
You’re already doing the most important thing: getting a
college education!
Assess your personal strengths and weaknesses: play to
your strengths

PROACTIVE AND ACTIVE
Proactive:
 Identify tomorrow’s job
opportunities
 Manage your own career
 Develop your interpersonal
skills, especially
communication
Active:
 Work harder and smarter
 Stay up-to-date
 Make learning a lifetime
commitment
 Keep networking
 Increase your visibility
 Seek a mentor

LEVERAGE
 Leverage your competitive advantage
 Don’t be afraid to take risks
 It’s OK to change jobs
 Be prepared and willing when opportunity knocks

ENTREPRENEURS
Entrepreneurship: the process of starting new businesses, generally in response to
opportunities.
• Assess the potential of the venture
• Research the venture’s feasibility
• Plan the venture
• Organize the venture
• Launch the venture
• Manage the venture
• Manage the venture’s growth

BUSINESS PLANS
•Executive summary
•Synopsis business plan
•Summary business plan
•Full business plan
•Operational business plan

FULL BUSINESS PLAN
• Executive summary
• Analysis of opportunity
• Analysis of the context
• Description of the business
• Financial data and projections
• Supporting documentation

LEGAL ORGANIZATIONS
• Sole proprietorship
• General partnership
• Limited liability partnership (LLP)
• C corporation
• S corporation
• Limited liability company (LLC)

STRUCTURE AND HRM ISSUES
Structure:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Amount of centralization or
decentralization
• Amount of formalization
HRM Issues:
• Employee recruitment
• Employee retention

ENTREPRENEURIAL PERSONALITY
Some Common Traits:
• High motivation
• Abundant self-confidence
• High energy level
• Great persistence
• Moderate risk taker
The proactive personality

MOTIVATING
Empowering employees by:
•Using participative decision making
•Delegating decisions or duties
•Giving them discretion over how they do their work

ENTREPRENEURIAL LEADERS
•Drawing out the best in people
•Creating a vision for the organization
•Developing teams that are empowered, self-directed,
and cross-functional

CONTROL ISSUES
•Managing growth
•Managing downturns
•Exiting the venture
•Managing personal life choices and challenges

PERSONAL CHALLENGES
Entrepreneurs manage personal challenges by:
• Becoming pros at time management
• Identifying competent business advisors
• Dealing with conflicts as they arise
• Developing a network of trusted friends/peers
• Recognizing when stress levels are too high

•Final Exam Review
•Homework

10-30-17
• What three are external factors to organizational change?
• Which three are internal factors to organizational change?
• Which two types of Innovation Variables exist?

11-1-17
• Which appropriately defines cognitive dissonance?

11-6-17
• Which of the following is one of the Big Five Factors of Personality?
• Perception is ?
• Operant Conditioning relates to which of the following?

11-8-17
• Identify two types of groups and two types of teams
• What are norms?
• Which is true as it relates to Group Effectiveness?
• Why is social loafing more common in the US and Canada?

11-15-17
• When studying leadership researchers focus on?
• Which is another name for the Situational Leadership Theory?
• Which of the following is a type of Leadership?
• Which two characteristics tie to Trust?

11-20-17
• Which of the following is involved in the Communication Process?
• Which type of Communication Channels are there?
• Why is ethical communication important?

11-27-17
• Which of the following is a step in the Control Process?
• How can someone measure performance?
• Which of the following is not a type of control?
• Which two things are important to control in an organization?

11-29-17
• What is the difference between Ops Mgmt and Value Chain Mgmt?
• Which of the following three are obstacles to Value Chain Mgmt?
• Which of the following are charts associated with Project Mgmt?

EXTRA CREDIT – FROM 12/6
• Define entrepreneurship
• Describe what entrepreneurs do
• List the types of Business Plans an entrepreneur may need to create
• List the types of legal organizations an entrepreneur might form

HOMEWORK
•Discussion 1 and 2
•Take Home portion of Exam
•STUDY!!!!!

•Three Secrets of Life
•Final Exam
•Grades should be posted fairly quickly

Brick Walls Are There for a Reason

People Change People
• https://www.youtube.com/watch?v=wJlblKmSLIk

Don’t Be Afraid to Be a Fool for a Good
Cause
• https://www.youtube.com/watch?v=WSdAdqRoYSw

BM 250 Fall 2017.pptx

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BM 250 Fall 2017.pptx