Margins Study Assistant

Chapter 1

Managing and Performing

Summary

Virtually every study of managers in action has found that they “switch frequently from task to task, changing their focus of attention to respond to issues as they arise, and engaging in a large volume of tasks of… He found, for instance, that they averaged 36 written and 16 verbal contacts per day, almost every one of them dealing with a distinct or different issue. Most of these activities were brief, lasting less than nine minutes. Kotter studied a number of successful general managers over a five-year period and found that they spend most of their time with others, including subordinates, their bosses, and numerous people from outside the…

Key terms

executive managers: Generally, a team of individuals at the highest level of management of an organization
middle management: The managers in an organization at a level just below that of senior executives
Decisional role: One of the three major roles that a manager assumes in the organization
first-line management: The level of management directly managing nonmanagerial employees

Chapter 2

Managerial Decision-Making

Read chapter 2 in the book

Summary

Stakeholders are all the individuals or groups that are affected by an organization (such as customers, employees, shareholders, etc.) Decision-making is the action or process of thinking through possible options and selecting one It is important to recognize that managers are continually making decisions, and that the quality of their decision-making has an impact—sometimes quite significant—on the effectiveness of the organization and its… Members of the top management team regularly make decisions that affect the future of the organization and all its stakeholders, such as deciding whether to pursue a new technology or product line.

Key terms

Decision-making: The action or process of thinking through possible options and selecting one
Stakeholders: Individuals or groups who are impacted by the organization. These include owners, employees, customers, suppliers, and members of the community in which the organization is located
Heuristics: Mental shortcuts that allow a decision maker to reach a good decision quickly. They are strategies that develop based on prior experience
Process conflict: Conflict about the best way to do something; conflict that is task-oriented and constructive, and not focused on the individuals involved
Relationship conflict: Conflict between individuals that is based on personal (or personality) differences; this type of conflict tends to be destructive rather than constructive
Programmed decisions: Decisions that are repeated over time and for which an existing set of rules can be developed

Chapter 3

The History of Management

Read chapter 3 in the book

Summary

Table 3.1 traces the development of management thought from the ancient world until the 19th century’s Industrial Revolution Sumer, located in what is today southern Iraq and the first urban-based civilization, contained the genesis of management. Sumer had a flourishing merchant culture in which goods such as grains, livestock, perfumes, and pottery were sold to customers. Rather than bartering (using one good or service, not money, to pay for another good or service), the ancient Sumerians used ancient clay coins to pay.

Key terms

Industrial Revolution: The Industrial Revolution occurred between roughly 1760 and 1900 and saw the emergence of the modern factory
Compromise: In a compromise, neither side gets what it wants. The best each side could get is what each can agree too
Frederick Winslow Taylor: Taylor is known as the father of scientific management
Chester Barnard: Chester Barnard (1886-1961) argued that the executive purpose was to gain resources from members within the organization by ensuring that they perform their jobs and that…
Contingency school: The contingency school explained that there were no universal laws in management, due to a wide variety of variables that influence relationships and create unique situations…
Elton Mayo: Elton Mayo (1880-1949) researched, theorized, and developed human relations theory based on an experiment at the Hawthorne plant on how to manage workers and to improve production
Hammurabi: The Code of Hammurabi was a listing of 282 laws that regulated conduct on a wide variety of behaviors, including business dealings, personnel behavior, interpersonal relations…
Joan Woodward: A British scholar who did her work in the 1950s and 1960s. She argued that contingencies, such as technology, play a role in how much training workers should receive

Chapter 4

External and Internal Organizational Environments and Corporate Culture

Read chapter 4 in the book

Summary

To succeed and thrive, organizations must adapt, exploit, and fit with the forces in their external environments. Organizations are groups of people deliberately formed together to serve a purpose through structured and coordinated goals and plans. As such, organizations operate in different external environments and are organized and structured internally to meet both external and internal demands and opportunities. Different types of organizations include not-for-profit, for-profit, public, private, government, voluntary, family owned and operated, and publicly traded on stock exchanges.

Key terms

Corporate culture: Defines how motivating employees’ beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in
Competing Values Framework: Developed by Kim Cameron and Robert Quinn this model is used for diagnosing an organization’s cultural effectiveness and examining its fit with its environment
Complex-Stable environments: Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly
Domain: The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise’s purpose
Geographic structure: An Organizational option aimed at moving from a mechanistic to more organic design to serve customers faster and with relevant products and services; as such, this structure is…
Simple-Stable environments: Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly
Simple-Unstable environments: Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably

Chapter 5

Ethics, Corporate Responsibility, and Sustainability

Read chapter 5 in the book

Summary

Ethics and business ethics continue to gain influence in corporations, universities, and colleges nationally and internationally. No longer considered a luxury but a necessity, business ethics has awakened a need in the public consciousness due to crises in many areas. Ethics essentially involves how we act, live, lead our lives, and treat others. Our choices and decision-making processes and our moral principles and values that govern our behaviors regarding what is right and wrong are also part of ethics.

Key terms

ethics: The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong
business ethics: The area of applied ethics that focuses on real-world situations and the context and environment in which transactions occur
justice: Four major tenets: (1) All individuals should be treated equally; (2) Justice is served when all persons have equal opportunities and advantages; (3) Fair decision practices…
rights: Legal rights are entitlements that are limited to a particular legal system and jurisdiction, while moral rights are universal and based on norms in every society
stakeholder: Any group or individual who can affect or is affected by the achievement of an organization’s objectives. The use of the term stakeholder has become commonplace in organizations
instrumental values: The preferred means of behavior used to obtain desired goals
corporate culture: The beliefs and behaviors that determine how a company’s employees and management interact inside an organization and also handle outside business transactions. Corporate culture…

Chapter 6

International Management

Read chapter 6 in the book

Summary

International management is a critical area for any serious student of management because of globalization , the worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade… Globalization is being facilitated by several key factors, and companies that want to succeed in this environment must understand the key factors that are making the business world more globally connected The first critical factor is the lowering of trade barriers through trade agreements , government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration. To understand the importance of trade agreements, it is necessary to note that countries have long used tariffs to protect local industries and companies.

Key terms

Globalization: Worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing
Tariffs: Extra charges that are added to the price of international products in the form of additional taxes or higher prices as a way to give domestic companies a price advantage while…
Trade agreements: Popular policy instruments that countries agree on to eliminate cross-border barriers to trade and to promote global integration
first critical factor: the lowering of trade barriers through trade agreements , government policies through which countries agree to eliminate cross-border barriers to trade and to promote glo
countries of the world: becoming more interconnected and where trade…
Emerging market multinationals: Influential companies from emerging markets that are competing head-on with established multinationals and rewriting the rules of competition by using new business models
High-rigor cross-cultural training: Methods of training where participants are much more actively engaged in the training process and can learn some tacit aspects of cross-cultural differences

Chapter 7

Entrepreneurship

Read chapter 7 in the book

Summary

Brothers Fernando and Santiago Aguerre exhibited entrepreneurial tendencies at an early age. At 8 and 9 years old respectively, they sold strawberries and radishes from a vacant lot near their parents’ home in Plata del Mar on the Atlantic coast of Argentina. At 11 and 12, they provided a surfboard repair service from their garage. As teenagers, Fer and Santi, as they call each other, opened Argentina’s first surf shop, which led to their most ambitious entrepreneurial venture of all

Key terms

entrepreneurs: People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an…
small business: A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its…
Small Business Investment Company (SBIC): Privately owned and managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses
angel investors: Individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds
business plan: A formal written statement that describes in detail the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications…
intrapreneurs: Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own
Small Business Administration (SBA): A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management…
venture capital: Financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in…

Chapter 8

Strategic Analysis: Understanding a Firm’s Competitive Environment

Read chapter 8 in the book

Summary

Strategic analysis is the process that firms use to study and understand the many different layers and aspects of their competitive environment. The external environment is continually changing, and the most successful firms are able to prepare for and adapt to environmental changes because they have done their homework and understand how external forces impact… To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning —the systematic and intentional analysis of both a firm’s internal state and its external… From a local coffee shop to an international corporation, firms of all sizes benefit from strategic analysis.

Key terms

competitive environment: Factors and situations both inside the firm and outside the firm that have the potential to impact its operations and success
strategic analysis: Process that firms use to study and understand their competitive environment
environmental scanning: The systematic and intentional analysis of a firm’s internal state and its external environment
external environment: The aspects of the world at large and of a firm’s industry that can impact its operations
differentiation strategy: A generic business-level strategy in which firms add value to their products and services in order to attract customers who are willing to pay a higher price
macro environment: The outermost layer of elements in a firm’s external environment that can impact a business but are generally beyond the firm’s direct control, such as the economy and political…
primary activities: Firm activities on the value chain that are directly responsible for creating, selling, or servicing a product or service, such as manufacturing and marketing
support activities: Value chain activities that a firm performs to sustain itself; do not directly create a product or service but are necessary to support the firm’s existence, such as accounting…

Chapter 9

The Strategic Management Process: Achieving and Sustaining Competitive Advantage

Read chapter 9 in the book

Summary

While it is useful to discuss the strategic management process in a stepwise fashion, it’s important to point out that the cycle occurs such that everything is being done at once In this chapter, we see how the information strategic analysis provides gets put to work. The strategic management process is the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace. In the previous chapter we focused on analyzing and understanding a firm’s competitive environment.

Key terms

strategic management process: the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace
strategic analysis: the systematic examination of a firm’s internal and external situation that informs managerial decision-making
benchmarking: a performance evaluation technique where the standard for a firm’s performance is based on another firm’s superior performance
goal: something that a firm is trying to accomplish; can also be called an objective
business-level strategy: ways that single-product firms organize their activities to succeed against rivals; at this level, include cost leadership and differentiation
growth strategy: a grand strategy to increase the size of the firm in terms of revenue, market share, geographic reach, or a combination of these elements
implementation: the execution of a strategy by planning and assigning actions to employees to carry out in order to accomplish the company’s strategic objectives

Chapter 10

Organizational Structure and Change

Read chapter 10 in the book

Summary

Second, organizational design is the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives Finally, organizational development (OD) is the label for a field that specializes in change management. First, an organizational structure is a system for accomplishing and connecting the activities that occur within a work organization. Next, organizational change refers to the constant shifts that occur within an organizational system—for example, as people enter or leave the organization, market conditions shift, supply sources change, or…

Key terms

organizational structure: The system of task and reporting relationships that control and motivate colleagues to achieve organizational goals
managed change: How leaders in an organization intentionally shape shifts that occur in the organization when market conditions shift, supply sources change, or adaptations are introduced in the…
organizational design: The process by which managers define organizational structure and culture so that the organization can achieve its goals
understanding of OD practices: essential for leaders who want to maximize the potential of their organizations over a long period of time
Organizational change: The movement that organizations take as they move from one state to a future state
organizational development (OD): Specialized field that focuses on how to design and manage change
change management: The process of designing and implementing change
conventional mindset: Leaders assume that most people are inclined to resist change and therefore need to be managed in a way that encourages them to accept change

Chapter 11

Human Resource Management

Read chapter 11 in the book

Summary

These are tools that may be used in talent development Training—a forum for learning in person or online Stretch assignments—challenge roles for high-potential employees Individual assessments—personality and work style inventories of employees

Key terms

Human resource management: The management of people within organizations, focusing on the touchpoints of the employee life cycle
Talent development: Integrated HR processes that are created to attract, develop, motivate, and retain employees
Performance management: The process by which an organization ensures that its overall goals are being met by evaluating the performance of individuals within that organization
Society for Human Resource Management: The world’s largest HR professional society, with more than 285,000 members in more than 165 countries. It is a leading provider of resources serving the needs of HR professionals
Talent review calibration process: The meeting in which an organization’s 9-box matrix is reviewed and discussed, with input and sharing from organizational leadership
Employer-employee relationship: The employment relationship; the legal link between employers and employees that exists when a person performs work or services under specific conditions in return for payment
Succession planning: The process of identifying and developing new leaders and high-potential employees to replace current employees at a future time
Talent acquisition: The process of finding and acquiring skilled candidates for employment within a company; it generally refers to a long-term view of building talent pipelines, rather than…

Chapter 12

Diversity in Organizations

Read chapter 12 in the book

Summary

The term managing diversity is commonly used to refer to ways in which organizations seek to ensure that members of diverse groups are valued and treated fairly within organizations 2 in all areas including hiring… 3 Inclusion , which represents the degree to which employees are accepted and treated fairly by their organization, 4 is one way in which companies demonstrate how they value diversity. The term valuing diversity is often used to reflect ways in which organizations show appreciation for diversity among job applicants, employees, and customers. Diversity refers to identity-based differences among and between two or more people 1 that affect their lives as applicants, employees, and customers.

Key terms

diversity: Identity-based differences among and between people that affect their lives as applicants, employees, and customers
managing diversity: Ways in which organizations seek to ensure that members of diverse groups are valued and treated fairly within organizations
term managing diversity: commonly used to refer to ways in which organizations seek to ensure that members of diverse groups are valued and treated fairly within organizations 2 in all areas incl
inclusion: The degree to which employees are accepted and treated fairly by their organization
term valuing diversity: often used to reflect ways in which organizations show appreciation for diversity among job applicants, employees, and customers
identity group: A collective of individuals who share the same demographic characteristics such as race, sex, or age
access discrimination: A catchall term that describes when people are denied employment opportunities because of their identity group or personal characteristics such as gender, race, or age

Chapter 13

Leadership

Read chapter 13 in the book

Summary

Some definitions consider leadership an act or behavior, such as initiating structure so group members know how to complete a task. The many definitions of leadership each have a different emphasis. 4 Some look at leadership in terms of the management of group processes. Leadership is frequently defined as a social (interpersonal) influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation.

Key terms

leadership: A social (interpersonal) influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation
initiating structure: A “task-oriented” leader behavior that is focused on goal attainment, organizing and scheduling work, solving problems, and maintaining work processes
consideration: A “relationship-oriented” leader behavior that is supportive, friendly, and focused on personal needs and interpersonal relationships
contingency theory of leadership: A theory advanced by Dr. Fred E. Fiedler that suggests that different leadership styles are effective as a function of the favorableness of the leadership situation least preferred
path-goal theory of leadership: A theory that posits that leadership is path- and goal-oriented, suggesting that different leadership styles are effective as a function of the task confronting the group
formal leader: That individual who is recognized by those outside the group as the official leader of the group
great man theory of leadership: The belief that some people are born to be leaders and others are not
visionary leader: A leader who influences others through an emotional and/or intellectual attraction to the leader’s dreams of what “can be.”

Chapter 14

Work Motivation for Performance

Read chapter 14 in the book

Summary

This includes the goals (outcomes) the person is expected to achieve and the process by which the goals will be achieved. An employee who has accurate role perceptions knows both their expected outcomes and how to go about making those outcomes a reality. Incomplete or inaccurate role perceptions limit employees’ capacity to meet expectations, regardless of their abilities and motivation Ability refers to the knowledge, skills, and receptiveness to learning that a person brings to a task or job.

Key terms

motivation: A force within or outside of the body that energizes, directs, and sustains human behavior. Within the body, examples might be needs, personal values, and goals, while an…
work motivation: The amount of effort a person exerts to achieve a level of job performance
role perceptions: The set of behaviors employees think they are expected to perform as members of an organization
outcome: Anything a person perceives as getting back from an organization in exchange for the person’s inputs
ability: The knowledge, skills, and receptiveness to learning that an individual brings to a task or job
goals (outcomes) the person: expected to achieve and the process by which the goals will be achieved
equity theory: States that human motivation is affected by the outcomes people receive for their inputs, compared to the outcomes and inputs of other people
input: Any personal qualities that a person views as having value and that are relevant to the organization

Chapter 15

Managing Teams

Read chapter 15 in the book

Summary

Whether you work in a manufacturing environment and utilize self-directed work teams, or if you work in the “ knowledge economy ” and derive benefits from collaboration within a team structure, you are harnessing the… This is very different from the classic working group in an organization (usually organized by functional area) in which there is a focused leader, individual accountabilities and work products, and a group purpose… Teamwork has never been more important in organizations than it is today. A team, according to Katzenbach and Smith in their Harvard Business Review (HBR) article “The Discipline of Teams,” is defined as “people organized to function cooperatively as a group”.

Key terms

working group: Group of experts working together to achieve specific goals; performance is made up of the individual results of all members
knowledge economy: The information society, using knowledge to generate tangible and intangible values
collaboration: The action of working with someone to produce or create something
real-time permission: A technique for recognizing when conflict is uncomfortable, and giving permission to continue
Storming: The second stage of team development—when people are pushing against the boundaries
head, body, and heart: Techniques for becoming more adept in cross-cultural skills—learning about cultures (head), physical manifestations of culture (body), and emotional commitment to new culture…
boundaries: Lines that make the limits of an area; team boundaries separate the team from its external stakeholders

Chapter 16

Managerial Communication

Read chapter 16 in the book

Summary

Understand and describe the communication process Interpersonal communication is an important part of being an effective manager It influences the opinions, attitude, motivation, and behaviors of others It expresses our feelings, emotions, and intentions to others

Key terms

receiver: The individual, group, or organization for which information is intended
communicator: The individual, group, or organization that needs or wants to share information with another individual, group, or organization
figurehead role: A necessary role for a manager who wants to inspire people within the organization to feel connected to each other and to the institution, to support the policies and decisions…
encoding: Translating a message into symbols or language that a receiver can understand
decoding: Interpreting and understanding and making sense of a message
noise: Anything that interferes with the communication process

Chapter 17

Organizational Planning and Controlling

Read chapter 17 in the book

Summary

Plans have two basic components: outcome or goal statements and action statements. Understand the importance of planning and why organizations need to plan and control Planning is the process by which managers establish goals and specify how these goals are to be attained. Outcome or goal statements represent the end state—the targets and outcomes managers hope to attain.

Key terms

controlling: Monitoring the behavior of organizational members and the effectiveness of the organization itself to determine whether organizational goals are being achieved and taking…
planning: The process by which managers establish goals and specify how these goals are to be attained
action statements: The means by which an organization moves forward to attain its goals
outcome or goal statements: End states—the targets and outcomes that managers hope to attain
noncybernetic control: Control systems that operate independently from the work system that is being monitored; a monitoring system that is external to the target of control
official goals: The aims of an organization that are expressed in highly abstract and general terms, generally employed for the organization’s external constituents
concurrent controls: Controls intended to prevent deviation from a planned course of action while work is in progress
postaction controls: Controls employed after a product or service is complete

Chapter 18

Management of Technology and Innovation

Read chapter 18 in the book

Summary

Management of technology and innovation is critical to the organization. The changes in structure are innovations in the technology of how work is accomplished; the innovations brought on by the invention of new products influence the technology we use and how we use it Today, we see the innovations in information technology changing structures to more network based with people being able to work remotely. Because of innovations and new technologies, we have historically seen the emergence of innovative organizational structures and new ways of performing work.

Key terms

technology: The branch of knowledge that deals with the creation and use of technical means and the application of this knowledge for practical ends
innovation: Invention, new product development, and process-improvement methods are all examples of innovation
management of technology: The planning, implementation, evaluation, and control of the organization’s resources and capabilities in order to create value and competitive advantage
changes in structure: innovations in the technology of how work is accomplished; the innovations brought on by the invention of new products influence the technology we use and how we use it
organizational learning: The acquisition of knowledge through the collection of data that is analyzed to gather information, which is then transferred and shared through communication among members of…
research and development (R&D): Involves the seeking and developing of new technologies, products, and/or processes through creative efforts within the firm
joint ventures: Long-term alliances that involve the creation of a new entity to specifically carry out a product/process innovation