MGT 600 Exams Notes

MOPP Exams Notes : Iftikhar Ahmed
MGT 600 EXAMS NOTES

Management Is
Getting
Getting work
work
Efficiency
Efficiency
done
done through
through
Effectiveness
Effectiveness
others
others
Efficiency entails minimum waste, effort and expense
Effectiveness is accomplishing tasks that help fulfill organizational objectives
Management Functions
Planning
Organizing
Leading
Controlling
Planning
Determining organizational goals and a means for achieving them.
Meta-Analysis: is a study of studies that shows what works and when.
Organizing
Deciding where decisions will be made

Who will do what jobs and tasks
Who will work for whom
Leading
Inspiring
Inspiring
Leading
Leading Motivating
Motivating
Controlling
Monitoring progress toward goal achievement and taking corrective action when needed.
The Control Process
Set standards to achieve goals

Make changes to return performance to standards
Compare actual performance to standards
Effective managers plan, Organize, Lead and Control better.
Old versus New Management Styles
Manager as boss versus managers as sponsors/team leaders / internal consultants

Reporting relationships versus managers open to anyone anywhere in hierarchy
Individual decisions versus participative decision making
Long hours versus results
Keeping proprietary company information secret versus sharing with others
Management functions Old and New

Making things Happen
Planning
Decision making
Managing information
Controlling
William End CEO of Lands End (a successful retailer) introduced latest management techniques such as
performance appraisals based on peer reviews; production teams, training courses, effective
communication. Lost or undelivered orders were result. Why?
Meeting the competition
Global Management
Organizational Strategy
Innovation and Change
Designing adaptive organizations
IBM once market leader lost its share from 80 to 8% because of stiff competition
from COMPAQ Dell etc in 1980s.
Organizing people , projects and processes
Managing individual and diverse workforce
Managing Teams
Managing Human Resource Systems
Managing service and Manufacturing Operations
Free trade agreements, falling entry barriers, shorter product life cycles
When FORD purchased Jaguar.
Leading
Motivation
Leadership
Managing communication
Herb Kelleher Founder SouthWest Airlines: Jokester and storyteller
Kinds of Managers
Top Managers
Middle Managers
First-Line Managers
Team Leaders
Top Managers
Chief Executive Officer (CEO)

Chief Operating Officer (COO)
Chief Financial Officer (CFO)
Chief Information Officer (CIO)
Responsibilities of Top Managers
Creating a context for change (Vision) - CEO of GM and Kodak

Developing commitment and ownership in employees - Herb Kelleher at 4
Creating a positive organizational culture through language and action -Memo writing -David
Glass and stories of Thriftiness of Sam Walton
Monitoring their business environments - David Glass and KMart
Middle Managers
Plant Manager
Regional Manager
Divisional Manager
Responsibilities of Middle Managers
Plan and allocate resources to meet objectives

Coordinate and link groups, departments, and divisions
Monitor and manage the performance of subunits and managers who report to them
Implement changes or strategies generated by top managers
Andy Wilson Regional Vice President of Wal-Mart visits Stores to see product placement,
replacement of products, keeps a check on prices
First-Line Managers
Office Manager
Shift Supervisor
Department Manager
Responsibilities of First-Line Managers
Manage the performance of entry-level employees
Encourage, monitor, and reward the performance of workers

Managers tracking phone calls of telemarketing reps
Teach entry-level employees how to do their jobs
Make detailed schedules and operating plans
Responsibilities of Team Leaders
Facilitate team performance

Manage external relations
Facilitate internal team relationships
Managerial Roles
Interpersonal
Figurehead : Managers perform ceremonial duties

Leader : Managers motivate and encourage workers to accomplish objectives
Liaison : Managers deal with people outside their units
Informational
Monitor : Managers scan their environment for information

Disseminator : Managers share information with others in their company
Spokesperson : Managers share information with others outside their departments/companies
Decisional
Entrepreneur : Managers adapt to incremental change

Disturbance Handler : Managers respond to problems that demand immediate action
Resource Allocator : Managers decide who gets what resources
Negotiator : Managers negotiate schedules, projects, goals, outcomes, resources, and raises
What Companies Look for in Managers
Technical Skills : the ability to apply the specialized procedures, techniques and knowledge
required to get the job done
Human Skills : the ability to work well with others
Conceptual Skills: the ability to see the organization as a whole; how the different parts affect
each other; how well company is working in relation to environment
Motivation to Manage : an assessment of how enthusiastic employees are about managing work
of others
Mistakes Managers Make
Mistakes Managers Make

Cold, aloof, arrogant
Betrayal of trust
Overly ambitious
Specific performance problems with the business
Over managing: unable to delegate or build a team
Unable to staff effectively
Unable to think strategically

Unable to adapt to boss with different style
Over dependent on advocate or mentor
Competitive Advantage through People

Management Practices in Top Performing Companies
Employment Security
Selective Hiring
Promotion from within
High Wages Contingent on Organizational Performance
Training and Skill Development
Reduction of Status Differences
Sharing Information
Participation and Empowerment
Major Purpose of Human Resource Development

A major goal of HRD interventions is to assist employees and organizations in achieving their
goals.
HRD Professionals help employees by designing and developing programs that promote
individual development.
HRD also improves organizational performance.
Another goal of HRD interventions is an effort to change employee behavior.
HRD provides skills and behaviors to employees which assist in increasing their performance
which leads to great accomplishments.
Types of Behavior
Task Performance Behavior
Organizational Citizenship Behavior
Model of Employee Behavior

Forces that influence behavior:
External to the employee:
External environment (economic conditions, laws and regulations, etc.)
Work environment (supervision, organization, coworkers, outcomes of

performance)
Within the employee:
Motivation, attitudes, knowledge/skills/abilities (KSAs)
Factors in the External Environment

Economic conditions
Technological changes
Labor market conditions
Laws and regulations
Labor unions
Factors in the Work Environment
Outcomes
Supervision and leadership
Organization
Coworkers
Outcomes Can Influence Employee Behavior
Personal outcomes are those that have value to the individual, such as pay, recognition or reward
etc.
Organizational outcomes are things valued by the organization, such as teamwork, productivity or
quality etc.
Employee perception of outcomes are important determinants of employee behavior.
Expectancy Theory: This theory states that employees will perform behaviors that they perceive
will bring valued outcomes.
Equity Theory: This theory states that outcomes are evaluated by comparing them to the
outcomes received by others.
Supervisors and Leaders still continue to play an important role in the success of organizations.
Self-Fulfilling Prophecy: The pygmalion effect describes that how the expectations of a
supervisor can influence the behavior of the subordinates.
LMX Theory: Suggests that supervisors tend to develop different quality relationships
with their subordinates.
Motivation
Psychological processes that initiates, directs, and persists voluntary actions that are goaldirected.
Motivation Characteristics
Focuses on processes affecting behavior such as:
Energizing of effort generation of mobilization of effort
Direction of effort towards one goal or another
Persistence of effort = continue to put in effort
An individual phenomenon all people have unique needs, desires, attitudes and goals.
Need Activation-Need Satisfaction Process
Maslows Hierarchy of Needs
Herzbergs Theory
Job disatisfaction and job satisfaction not oppostite feelings as they have various determinents
Hygeine Versus motivation factors
Motivation factors ; Enrich the jobs rather then enlatging them.
Job loading leads to jon enlargement : 20 bulbs instead of 10 adding meanningless tasks
to make the job challenging = 0+0
Rotating jobs = dishwashing or mopping = one 0 instead of another!
Enrichment strategy
Vertical job loading is important :
Remove some controls while retain responsibility (accounatbility)
Task identity and significance ( giving responiobility for whole task, feeling of
accomplishment, recognition)
Job freedom
Peridoc reports directly avaialble to employees than supervisors ( internal recongnition)
Introducing new and more diffciult tasks not previously handled ( growth and learning)
Assigning specialized tasks enabling them to become experts ( advancement)
Goal Setting Theory

Specific, difficult, and understood goals generally lead to higher performance
Keys to performance are the level of difficulty and the clearness of goals Social Learning Theory
Self-efficacy judgment of what you think you can do with the skills you have
Major prediction of the theory is that expectations determine:
Whether a behavior will be performed
How much effort will be expended
How long you will perform the behavior
Equity Theory
Major assumptions:
If you are treated fairly, you will keep working well
If you think you are being treated unfairly, you will change your behavior in order to be treated
fairly
A Noncognitive Theory
Reinforcement theory:
Overlooks inner state of individual behavior is defined as a function of consequences following it.
Behavior Modeification:
Reinforcement: Immediately praising an employee for coming early or discouraging for coming
late
Punishment: suspending an employee for breaking organziational rules
Extinction: May unintentionally lower desirable behavior. E.g. absence of recognition on good
work
Self Determination Theory
Motivation a multidimensional construct defined in terms of autonomous and controlled
motivation
Flourishes in the presence of autonomy, feelings of competence (promoted thorugh recognition
and feedback) whcih directly influences LOC and Need of Relatedness (involve relationships
with significant others
IM : inherently interested doing an activity
EM: Tied to external factors
Amotivation: Absence of regulation: lack of motivation
Knowledge, Skills and Abilities (KSAs)
Abilities general capacities related to the performance of specific tasks

Skills combines abilities and capabilities (developed through training programs etc)
Knowledge understanding of the factors or principles related to a specific subject
HRD programs mostly focus on changing skills and knowledge
Attitudes
Attitudes determine behavior but not directly.
Attitudes combine with perecieved social pressure ( norms) to form intentions
Intentions directly predict behavior
Reactions to feedback or other employee attitudes can have implications for HRD interventions
such as training and career porograms.
Types of Attitudes
Job Satisfaction
Job Involvement
Organizational Commitment
Perceived Organizational Support (POS)
Employee Engagement
Bona fide occupational qualification (BFOQ)

o
Requirement that an employee be of a certain religion, sex, or national origin where that
is reasonably necessary to the organizations normal operation. Specified by the 1964
Civil Rights Act.
Age
Religion
Gender
National Origin
McDonnell-Douglas test
o
A test for disparate (intentional) treatment situations in which the applicant was qualified
but the employer rejected the person and continued seeking applicants.
Conditions for applying McDonnell-Douglas

o
The person belongs to a protected class.
The person applied and was qualified for the job.
The person was rejected despite qualification.
After rejection, the position remained open and the employer continued seeking
applications from persons with the complainants qualifications.
Diversity Management
Managing diversity
Provide strong leadership.
Assess the situation.
Provide diversity training and education.
Change culture and management systems.
Evaluate the diversity management program.
Boosting workforce diversity
Adopt strong company policies advocating the benefits of a culturally, racially, and
sexually diverse workforce.
Take concrete steps to foster diversity at work.
What Is collective bargaining?
Both management and labor are required by law to negotiate wage, hours, and terms and
conditions of employment in good faith.
What Is good faith bargaining?
Both parties communicate and negotiate.
They match proposals with counterproposals in a reasonable effort to arrive at an

agreement.
It does not mean that one party compels another to agree to a proposal or make any
specific concessions.
What Causes Accidents?
Reducing Job Stress: Personal

Build rewarding, pleasant, cooperative relationships
Dont bite off more than you can chew.
Build an effective and supportive relationship with your boss.
Negotiate with your boss for realistic deadlines on projects.
Learn as much as you can about upcoming events and get as much lead time as you can to
prepare for them.
Find time every day for detachment and relaxation.
Take a walk to keep your body refreshed and alert.

Find ways to reduce unnecessary noise.
Reduce trivia in your job; delegate routine work.
Limit interruptions.
Dont put off dealing with distasteful problems.
Make a worry list that includes solutions for each problem.
Reducing Job Stress: Organizational
Provide supportive supervisors
Ensure fair treatment for all employees
Reduce personal conflicts on the job.
Have open communication between management and employees.
Support employees efforts, for instance, by regularly asking how they are doing.
Ensure effective jobperson fit, since a mistake can trigger stress.
Give employees more control over their jobs.
Provide employee assistance programs including professional counseling.
Leadership
The ability to influence a group toward the achievement of goals.
Management
Use of authority inherent in designated formal rank to obtain compliance from organizational
members.
Traits Theories of Leadership
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders
from nonleaders.
Trait Approach
Traits (examples)
Extraversion
Conscientiousness
Openness
Assumption: Leaders are born

Goal: Select leaders
Problems
Traits do not generalize across situations
Better at predicting leader emergence than leader effectiveness
Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.
Fiedler Model
Leader: Style is Fixed (Task oriented vs. Relationship oriented)
Considers Situational Favorableness for Leader
Leader-member relations
Task structure
Position power
Key Assumption
Leader must fit situation; options to accomplish this:

Select leader to fit situation
Change situation to fit leader
Cognitive Resource Theory

A theory of leadership that states that the level of stress in a situation is what impacts whether a
leaders intelligence or experience will be more effective.
Contingency Approach: Hersey & Blanchard Situational Model
Considers Leader Behaviors (Task & Relationship)
Assumes Leaders CAN change their behaviors
Considers Followers as the Situation
Follower Task maturity (ability & experience)
Follower Psychological maturity (willingness to take responsibility)
Assumptions
Leaders can and should change their style to fit their followers degree of readiness
(willingness and ability)
Therefore, it is possible to TRAIN leaders to better fit their style to their followers.
Hersey and Blanchards Situational Leadership Theory

Situational Leadership Theory (SLT)
A contingency theory that focuses on followers readiness; the more ready the followers (the more
willing and able) the less the need for leader support and supervision.
LeaderMember Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders select certain followers to be in (favorites)
Based on competence and/or compatibility & similarity to leader
Exchanges with these In followers will be higher quality than with those who are Out
RESULT: In subordinates will have higher performance ratings, less turnover, and greater job
satisfaction
Path-Goal Theory
Premise
Leader must help followers attaining goals and reduce roadblocks to success
Leaders must change behaviors to fit the situation (environmental contingencies & subordinate
contingencies)
Charismatic Leadership Theory
Followers make attributions of heroic or extraordinary leadership abilities when they observe
certain behaviors.
Key Characteristics of Charismatic Leaders

1. Vision and articulation. Has a visionexpressed as an idealized goalthat proposes a future
better than the status quo; and is able to clarify the importance of the vision in terms that are
understandable to others.
2. Personal risk. Willing to take on high personal risk, incur high costs and engage in self-sacrifice
to achieve the vision.
3. Environmental sensitivity. Able to make realistic assessments of the environmental constraints
and resources needed to bring about change.
4. Sensitivity to follower needs. Perceptive of others abilities and responsive to their needs and
feelings.
5. Unconventional behavior. Engages in behaviors that are perceived as novel and counter to norms.
Transactional Leaders
Leaders who guide or motivate their followers in the direction of established goals by clarifying
role and task requirements.
Transformational Leaders
Leaders who provide the four Is (individualized consideration, inspirational motivation, idealized
influence, and intellectual stimulation
Dependency: The Key To Power
The General Dependency Postulate
The greater Bs dependency on A, the greater the power A has over B.
Possession/control of scarce organizational resources that others need makes a manager

powerful.
Access to optional resources (e.g., multiple suppliers) reduces the resource holders
power.
What Creates Dependency
Importance of the resource to the organization
Scarcity of the resource
Nonsubstitutability of the resource
Boundaries
Constraints
Policies set
Limits
Policies facilitate solving recurring problems and guide the implementation of strategy
Policy Manuals
Resource Allocation
Four types of resources
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Strategic business unit
Distinct external market for goods or services that is different from another SBU.
If each product and each geographical branch is considered to be an independent SBU such
immense variety of competitive strategies for a single organization would create a lack of focus
and inefficiency.
The concept of the SBU is important in properly reecting the diversity of products and markets
that actually exist
IDENTIFYING STRATEGIC BUSINESS UNITS
Following two broad criteria which can help in avoiding these two pitfalls
External criteria
Two parts of an organization should only be regarded as the same SBU if they are targeting the
same customer types, through the same sorts of channels and facing similar competitors.
Internal criteria
Two parts of an organization should only be regarded as the same SBU if they have similar
products/services built on similar technologies and sharing a similar set of strategic capability
Kodak-film based and digital products
BASES OF COMPETITIVE ADVANTAGE:
THE STRATEGY CLOCK
Assuming that there are a number of providers customers will choose which offering to accept on
their perception of value-for-money.
This consists of the combination of price and customer-perceived product/service benets
of each offering.
Integration Strategies
Guidelines for Forward Integration
Present distributors are expensive, unreliable, or incapable of meeting firms needs
Availability of quality distributors is limited
When firm competes in an industry that is expected to grow markedly
Organization has both capital and human resources needed to manage new business of
distribution
Advantages of stable production are high
Present distributors have high profit margins
Backward Integration
Seeking ownership or increased control of a firms suppliers
Guidelines for Backward Integration
Suppliers are expensive
Number of suppliers is small and number of competitors large
High growth in industry sector
Capital and human resources to manage new business
Advantages of stable prices are important
Present supplies have high profit margins
Horizontal Integration
Seeking ownership or increased control over competitors
Guidelines for Horizontal Integration
Firm can gain monopolistic characteristics without being challenged by federal

government
Competes in growing industry
Increased economies of scale provide major competitive advantages
Intensive strategies
Require intensive efforts to improve a firms competitive position with existing /new products
and markets
Diversification strategies
Becoming less popular as organizations are finding it more difficult to manage diverse
business activities
Related Diversification
Adding new, but related, products or services
P&G and Unilever range of consumer goods
Forward and backward integration to diversify
Diversify within strategic capabilities and value network
Car manufacturers forward integrated to repairs and service but failed
Synergies may be harder to identify built around economies of scope
Guidelines for Related Diversification

Competes in no- or slow-growth industry
Adding new & related products increases sales of current products
New & related products offered at competitive prices
Current products are in decline stage of the product life cycle
Strong management team
Guidelines for Conglomerate Diversification
Declining annual sales and profits
Capital and managerial talent to compete successfully in a new industry
Exiting markets for present products are saturated
Forces for Change
Kotters Eight-Step Plan for Implementing Change

1. Establish a sense of urgency by creating a compelling reason for why change is needed.
2. Form a coalition with enough power to lead the change.

3. Create a new vision to direct the change and strategies for achieving the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to change and encouraging risk taking
and creative problem solving.
6. Plan for, create, and reward short-term wins that move the organization toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary adjustments in the new
programs.
8. Reinforce the changes by demonstrating the relationship between new behaviors and
organizational success.
Organizational Development (OD)
A collection of planned interventions, built on humanistic-democratic values, that seeks to
improve organizational effectiveness and employee well-being.
Sensitivity Training / Techniques
Training groups (T-groups) that seek to change behavior through unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening skills, greater openness, and increased
tolerance for others.
Leader acts only as a moderator to enhance interactive learning
Process Consultation (PC)
A consultant gives a client insights into what is going on around the client, within the client, and
between the client and other people; identifies processes that need improvement.
Team Building
High interaction among team members to increase trust and openness.
Intergroup Development
OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.
Change Strategies
Force Change Strategy
Giving and fulfilling orders, low commitment and morale
Educative Change Strategy
Greater commitment but slow implementation
Rational or Self-Interest Change Strategy
Attempts to convince that change is to self interest of employee seldom so
Organizational Culture
A common perception held by the organizations members; a system of shared meaning.
Dominant Culture
Expresses the core values that are shared by a majority of the organizations members.
Subcultures
Minicultures within an organization, typically defined by department designations and

geographical separation.
Strong Culture
A culture in which the core values are intensely held and widely shared.

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MOPP Exams Notes : Iftikhar Ahmed