MAN 3025 Exam 1 — Complete Study Hub

Management Defined

• Efficiency = doing things right (means)
• Effectiveness = doing the right things (ends)

Four Functions of Management (POLC)

Levels of Management

• Top (CEO, VP) — strategic, long-range, organization-wide
• Middle (dept heads) — tactical, implement top's strategies
• First-line (supervisors) — operational, day-to-day, manage nonmanagers

Mintzberg's 10 Roles

Three Skills

• Technical — job-specific; most important for first-line
• Human — working with people; important at ALL levels
• Conceptual — big picture; most important for top managers

Entrepreneur vs. Intrapreneur

Entrepreneur = starts own business. Intrapreneur = innovates inside an existing company (e.g., Post-it Notes at 3M).

Classical Viewpoint (1890s-1940s)

Scientific Management — Frederick Taylor

"Father of scientific management." Fought soldiering (workers deliberately slowing down). 4 principles: scientifically study each task, select & train workers, cooperate with workers, divide work between managers and workers.

Frank & Lillian Gilbreth — motion studies, filming bricklayers to eliminate waste.

Administrative Management — Henri Fayol

First to identify management functions (POLC + coordinating). Created 14 principles.

Bureaucracy — Max Weber

Rational structure: hierarchy, formal rules, division of labor, impersonal relationships, merit-based advancement.

Behavioral Viewpoint

Hugo Munsterberg — father of industrial psychology.

Mary Parker Follett — organizations as communities; resolve conflict through integration (both sides win), not domination or compromise.

Hawthorne Studies — Elton Mayo

Maslow's Hierarchy (bottom → top)

1. Physiological (food, water)
2. Safety (security)
3. Belongingness (connection)
4. Esteem (respect, recognition)
5. Self-Actualization (full potential)

McGregor's Theory X vs Y

Contemporary Viewpoints

Quantitative — math/statistics for decisions. Management Science + Operations Management.

Systems — Inputs → Transformation → Outputs → Feedback. Open (interacts with environment) vs. Closed.

Contingency — "It depends." No single best way; approach varies by situation.

Quality Management (TQM)

W. Edwards Deming — blame systems, not workers. 14 quality objectives.

Joseph Juran — quality = fitness for use; satisfy customer's real needs.

TQM: (1) continuous improvement, (2) everyone involved, (3) listen to customers & employees, (4) use accurate standards.

Learning Organization — actively creates, acquires, transfers knowledge and changes behavior accordingly.

Ethics & Values

Ethics = standards of right/wrong. Values = deeply held beliefs underlying behavior. Ethical dilemma = two options both have ethical consequences.

Something can be legal but unethical (price gouging) or illegal but ethical (stealing bread for a starving child).

Four Ethical Approaches

Kohlberg's Moral Development

1. Preconventional — avoid punishment / gain rewards (child's level)
2. Conventional — follow society's rules (most adults)
3. Postconventional — follow internal principles even against rules (highest)

Corporate Social Responsibility

Carroll's CSR Pyramid (bottom → top)

1. Economic — be profitable (foundation, required)
2. Legal — obey the law
3. Ethical — do what's right beyond law
4. Philanthropic — give back (top, desired)

Milton Friedman — only CSR is to maximize profits for shareholders.

Stakeholders

Internal: employees, owners, board. External: customers, suppliers, government, unions, community, media, etc.

Key Laws

Sarbanes-Oxley (2002) — after Enron/WorldCom. Stricter financial reporting, whistleblower protection.

Sustainability = meeting present needs without compromising future generations. Triple bottom line: People + Planet + Profit.

Strategy Basics

Strategy = large-scale action plan setting direction. Mission = "why we exist now." Vision = "what we aspire to become."

Five Steps

1. Establish mission & vision
2. Assess current reality (SWOT, VRIO)
3. Formulate grand strategy
4. Implement
5. Strategic control (feedback loop)

SWOT Analysis

VRIO Framework

All four must be YES for sustained competitive advantage:

• Valuable — exploits opportunity or neutralizes threat?
• Rare — few firms have it?
• Imitable — costly to copy?
• Organized — firm set up to exploit it?

Grand Strategies & Porter

Growth (expand), Stability (stay course), Defensive (retrench/divest/liquidate).

Porter's Five Forces

1. Threat of new entrants
2. Supplier power
3. Buyer power
4. Threat of substitutes
5. Rivalry among competitors

Porter's Four Strategies

BCG Matrix

• Stars — high growth + high share (invest)
• Cash Cows — low growth + high share (generates cash)
• Question Marks — high growth + low share (risky)
• Dogs — low growth + low share (divest)

Three Levels of Strategy

Corporate ("what businesses?") → Business ("how to compete?") → Functional ("how to support?")

Decision Types

Rational vs. Nonrational Models

Rational (prescriptive — how decisions SHOULD be made): Identify problem → Think up alternatives → Evaluate & select → Implement & evaluate.

Bounded Rationality (Herbert Simon) — rationality is limited by time, info, cognitive capacity.

Satisficing — choosing first "good enough" option. Intuition — gut feeling from experience.

Nine Decision-Making Biases

Group Decision Making

Advantages: more knowledge, perspectives, buy-in, creativity.

Disadvantages: slower, peer pressure, domination, groupthink.

Five Techniques