MGTA03 Master Exam Notes Week 7 [Chapter 6: Business Strategy] Week 8 [Chapter 7: Managers and Managing] Management: the

e process of planning, organizing, leading and controlling in order to achieve goals Planning: determining what the business needs and the best way to achieve it Organizing: the portion of management which concerned with mobilizing the necessary resources/factor of production in order to accomplish a task Leading: refers to the portion of management where managers interact and motivate employees Controlling: portion of the managers job which focuses on monitoring performance and activity and making necessary decisions to ensure the firms goals Senior Managers: Managers responsible for directing the overall performance of an organizations/long term plans/goals Middle managers: managers responsible for implementing the plans of the senior managers First line managers: managers responsible for directing employees Conceptual skills: ability to think and analyze different situations beyond the present situation Decision making skills: ability to define problems and selecting the best course of action o Defining the problem, gathering facts and identifying alternative solutions Evaluate each alternative and select the best one Implement the selected alternative and follow up and evaluate the effectiveness of the choice

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Week 9 [Chapter 8: Organizing the Business] Structure of business o Accountability: liability of subordinates to accomplish tasks set out by

managers o o Responsibility: the duty to perform a task Authority: the power to make decisions necessary to complete a task

Canada is a market economy Organizational structure: the specification of jobs and how those jobs interact with each other Chain of command: the flow of decision making within a business Specialization: the process of identifying jobs and designating individuals for each job Departmentalization: process of separating jobs into logical units Centralized organizations: top level managers have the majority of decision making authority Decentralized organization: middle level management are allowed to make significant decisions Span of control: the number of people managed by an individual Downsizing: reducing the amount of workers and managers as well as the production within an organization Functional structure: type of organizational structure where units are separated based on functions (HR, Sales, Finance) Divisional structure: separates into divisions, separate individual tasks Functional structure advantages o o o o Focuses on key activities Expertise within that activity Clearly defined career path and the structure is easy to understand Eliminates the duplicity of activities

Disadvantages to functional structure o o Conflicts may arise within those functional areas No single overall performance overseer

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Each function has a narrow view of the organization Coordinating specialized functions is difficult Decision making process slowed down due to chain of approval

Advantages of divisional structure o o o o Accommodates for expansion Increases accountability Develops expertise within various divisions Encourages training for top management

Disadvantages of divisional structure o o o o Activities may be duplicated within divisions Lack of communication may occur Having many divisions may blur the goals of the organization Company politics may affect the allocation of resources

Project organization: organization using a team of specialized individuals to perform specific projects Accountability: liability of subordinates for accomplishing tasks Fear of delegation o This is due to ego and the belief that subordinates cannot perform as well as managers can Delegation: assignment of a task a responsibility between manager and subordinate Fear that subordinates will outdo the managers

Week 10 [chapter 9: Managing Human Resources] Human resource is the most important factor of production (others being: entrepreneurs, capital, and natural resources) Most important factor of production Other factors do not seek retribution when wasted

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Contrary to HR that will continually seek retribution

Canada was previously an industrial economy (economy focused on production of goods/factory) 80% of production is focused on knowledge service (70% of GDP) Recruitment: the phase of staffing a company based on a pool of resources thus gaining applications for a position o o Ensures that the applicant pool is as large as possible Advertisements can be found in newspapers, specialist magazines, jobs fairs etc.

Appropriate candidates are selected based on application, references, tests and interviews o Interviews are the most common form of recruitment screening

Validation: process of determining the value of information given by applicants Individual incentive plan: compensation based on performance shortly after the performance occurs Gain sharing programs: increase in pay due to increased productivity Profit sharing program: increase in pay due to increased performance/profits Bona fide occupational requirement: applicants are chosen based on overriding job characteristics

Week 11[Chapter 10: Motivating Human Resource] Attempts to manage labour resource o Most difficult factor of production to control (over entrepreneur, capital and natural resources)

Classical theory of motivation o o Is wrong (In Canada) That salary and payment is the sole means of motivation and reasoning for workers

Scientific Management (Fred Taylor) Taylorism (Good in theory, bad in practice)

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How to optimize workers more efficiently piece rate system: for every extra unit, higher wages are given forces individual workers to attempt to be more efficient Paid extra for the amount for each product produced in a sequence Workers are partially motivated by money

Time motion studies Breaks the job into many smaller jobs (assembly line style) Many individuals performing a single task exceptionally well Increases efficiency and reduces time required to produce Designated jobs within the production (individual specialists) Specialists can be paid more Productivity drastically increased Productivity then decreased drastically following this due to lack of appeal within the tasks, workplace

Boring repetitive jobs, taylorism treats workers like machines

Hawthorn Experiments o o o How to become more efficient Increase appeal and physical environment within the workplace Measure productivity when physical factors within the workplace were changed The change in lights optimized productivity Null hypothesis states whether the opposite effect will occur when opposite changes occur within the environment

Hawthorn effect: when people or treated with respect, and management focus attention to them, then productivity maximizes Environmental factors do not change productivity

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Management individuals paying attention to subordinates will optimize productivity

Theory X (McGregor) o o o Individuals are motivated solely by money Workers perform best under controlled environments People must be told what to do o Individuals are naturally lazy and not willing to work

Command and control style of philosophy People need to be controlled and told exactly what to do Punished when rules outlined are not followed

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Businesses manage workers as theory X individuals Individuals see themselves as theory Y individuals Managing individuals as theory Y will maximize productivity

Theory Y o o o o Individuals are selfless and motivated to work People are intelligent and willing to work Individuals will act as theory Y describes them Businesses SEEK theory Y individuals

Maslows Hierarchy of Needs (Abraham Maslow) [SAQ] o Physiological needs o The need for survival This includes shelter and food Translates to salary and pay

Security needs Securing individual survival despite external and internal

conditions Reassurance that an individual will be able to survive Translates to a pension plan o Social needs Being in relations with friends and other kind acquaintances The need for relationships and correlation with other people, to not be alone and to be liked Translates to having friends at work This includes health insurance and other benefits

Esteem needs Being placed at a high ranking position/ a sense of belonging Being well respected by everyone within your internal/external organization Acknowledgement from others within society Motivated by perks (executive parking, company banquets, corner office)

Self Actualization Learning new skills and knowledge within your job Can only be achieved after gaining the other needs Enjoying your job due to all the challenges that are given Performing new, different and cool stuff

Motivation-Hygiene Theory (Fredrick Herzberg) o o Enjoying a sense of achievement What people disliked about their jobs did not juxtapose what they did like

Motivating factors

What people enjoyed about their jobs Provide more of the aspects they enjoyed about their jobs Give them responsibility, recognition, wages etc.

Hygiene factors Aspects of an individuals job that they disliked These aspects usually cannot be removed An alternative is to reduce the negative factors

In order to motivate employees, emphasize the positive aspects of a job and reduce the negative aspects People will always complain about the negative aspects (hygiene factors)