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Unformatted text preview: Principles of Management BA 115 Cerritos College, Lumen Learning Copyright: by Lumen Learning. Developed in conjunction with Cerritos College. Except where expressly noted otherwise, the contents of this course are based on materials originally published by authors, whose publisher desires the works to be attributed to anonymous authors, under a Creative Commons Attribution NonCommercial ShareAlike License: CC BY-NC-SA 3.0 US. Download the original material for free at . Cover image: “Jim Shelton” by Justin Knight, available CC BY from .” Principles of Management BA 115 by Lumen Learning is licensed under a Creative Commons AttributionNonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Contents Chapter 1: Introduction to Principles of Management ........................................................... 2 1 Chapter 1 Overview ................................................................................................................ 3 2 Case in Point: Doing Good as a Core Business Strategy .......................................................... 5 3 Who Are Managers? ................................................................................................................ 7 4 Leadership, Entrepreneurship, and Strategy ......................................................................... 11 5 Planning, Organizing, Leading, and Controlling ..................................................................... 16 6 Economic, Social, and Environmental Performance .............................................................. 20 7 Performance of Individuals and Groups ................................................................................. 25 8 Your Principles of Management Survivor's Guide .................................................................. 29 Chapter 2: History, Globalization, and Values-based Leadership ...................................... 9 Chapter 2 Overview .............................................................................................................. 10 Case in Point: Hanna Andersson Corporation Changes for Good ......................................... 11 Ancient History: Management Through the 1990s .............................................................. 12 Contemporary Principles of Management ........................................................................... 13 Global Trends ...................................................................................................................... 14 Globalization and Principles of Management ....................................................................... 15 Developing Your Values-Based Leadership Skills ................................................................ 38 39 41 44 49 53 58 62 Chapter 3: Personality, Attititudes and Work Behavior ....................................................... 16 Chapter 3 Overview ............................................................................................................ 17 Case in Point: SAS Institute Invests in Employees ............................................................... 18 Personality and Values ........................................................................................................ 19 Perception ........................................................................................................................... 20 Work Attitudes .................................................................................................................... 21 The Interactionist Perspective: The Role of Fit .................................................................... 22 Work Behaviors ................................................................................................................... 23 Developing Your Positive Attitude Skills .............................................................................. 66 67 69 71 80 86 90 92 99 Chapter 4 Developing Mission, Vision, and Values ............................................................. 24 Chapter 4 Overview .......................................................................................................... 25 Case in Point: Xerox Motivates Employees for Success ..................................................... 26 The Roles of Mission, Vision, and Values ........................................................................... 27 Mission and Vision in the P-O-L-C Framework ................................................................... 28 Creativity and Passion ....................................................................................................... 29 Stakeholders ..................................................................................................................... 30 Crafting Mission and Vision Statements ............................................................................ 31 Developing Your Personal Mission and Vision ................................................................... Principles of Management BA 115 101 102 105 107 111 117 125 131 137 Chapter 5: Strategic Management ......................................................................................... 32 Chapter 5 Overview .......................................................................................................... 33 Strategic Management in the P-O-L-C Framework ............................................................ 34 How Do Strategies Emerge? .............................................................................................. 35 Strategy as Trade-Offs, Discipline, and Focus ................................................................... 36 Developing Strategy Through Internal Analysis ................................................................ 37 Developing Strategy Through External Analysis ............................................................... 38 Formulating Organizational and Personal Strategy With the Strategy Diamond ............... 144 145 147 153 156 164 172 181 Chapter 6: Goals and Objectives ............................................................................................ 39 Chapter 6 Overview .......................................................................................................... 40 Case in Point: Nucor Aligns Company Goals With Employee Goals ................................... 41 The Nature of Goals and Objectives .................................................................................. 42 From Management by Objectives to the Balanced Scorecard ........................................... 43 Characteristics of Effective Goals and Objectives ............................................................. 44 Using Goals and Objectives in Employee Performance Evaluation .................................... 45 Integrating Goals and Objectives with Corporate Social Responsibility ............................ 46 Your Personal Balanced Scorecard .................................................................................... 188 189 190 192 196 203 209 214 220 Chapter 7: Organizational Structure and Change ............................................................... 47 Chapter 7 Overview .......................................................................................................... 48 Case in Point: Toyota Struggles With Organizational Structure ......................................... 49 Organizational Structure ................................................................................................... 50 Contemporary Forms of Organizational Structures ........................................................... 51 Organizational Change ...................................................................................................... 52 Planning and Executing Change Effectively ...................................................................... 53 Building Your Change Management Skills ......................................................................... 227 228 229 231 238 242 251 256 Chapter 8: Organizational Culture ......................................................................................... 54 Chapter 8 Overview .......................................................................................................... 55 Case in Point: Google Creates Unique Culture .................................................................. 56 Understanding Organizational Culture .............................................................................. 57 Measuring Organizational Culture ..................................................................................... 58 Creating and Maintaining Organizational Culture .............................................................. 59 Creating and Maintaining Organizational Culture .............................................................. 60 Creating Culture Change ................................................................................................... 61 Developing Your Personal Skills: Learning to Fit In ........................................................... 258 259 261 264 268 277 290 303 307 Chapter 9: Leading People and Organizations ..................................................................... 62 Chapter 9 Overview .......................................................................................................... 63 Case in Point: Indra Nooyi Draws on Vision and Values to Lead ........................................ 64 Who Is a Leader? Trait Approaches to Leadership ............................................................ 65 What Do Leaders Do? Behavioral Approaches to Leadership ............................................ 66 What Is the Role of the Context? Contingency Approaches to Leadership ........................ 67 Contemporary Approaches to Leadership ......................................................................... 68 Developing Your Leadership Skills .................................................................................... 309 310 312 314 320 323 330 338 Chapter 10: Decision Making .................................................................................................. 342 69 Chapter 10 Overview ........................................................................................................ 343 Principles of Management BA 115 70 71 72 73 74 Case in Point: Bernard Ebbers Creates Biased Decision Making at WorldCom .................. Understanding Decision Making ........................................................................................ Faulty Decision Making ..................................................................................................... Decision Making in Groups ................................................................................................ Developing Your Personal Decision-Making Skills ............................................................. 344 347 357 362 368 Chapter 11: Communication in Organizations ..................................................................... 75 Chapter 11 Overview ........................................................................................................ 76 Case in Point: Edward Jones Communicates Caring .......................................................... 77 Understanding Communication ......................................................................................... 78 Communication Barriers .................................................................................................... 79 Different Types of Communication .................................................................................... 80 Communication Channels ................................................................................................. 81 Developing Your Personal Communication Skills .............................................................. 370 371 372 374 379 388 395 402 Chapter 12: Managing Groups and Teams ............................................................................ 82 Chapter 12 Overview ........................................................................................................ 83 Case in Point: General Electric Allows Teamwork to Take Flight ....................................... 84 Group Dynamics ................................................................................................................ 85 Understanding Team Design Characteristics .................................................................... 86 Organizing Effective Teams ............................................................................................... 87 Barriers to Effective Teams ............................................................................................... 88 Developing Your Team Skills ............................................................................................. 405 406 408 411 419 433 439 441 Chapter 13: Motivating Employees ........................................................................................ 89 Chapter 13 Overview ........................................................................................................ 90 Case in Point: Zappos Creates a Motivating Place to Work ............................................... 91 Need-Based Theories of Motivation ................................................................................... 92 Process-Based Theories .................................................................................................... 93 Developing Your Personal Motivation Skills ....................................................................... 443 444 446 448 454 467 Chapter 14: The Essentials of Control ................................................................................... 94 Chapter 14 Overview ........................................................................................................ 95 Case in Point: Newell Rubbermaid Leverages Cost Controls to Grow ................................ 96 Organizational Control ...................................................................................................... 97 Types and Levels of Control .............................................................................................. 98 Financial Controls .............................................................................................................. 99 Nonfinancial Controls ........................................................................................................ 100 Lean Control .................................................................................................................... 101 Crafting Your Balanced Scorecard ................................................................................... 469 470 471 473 479 484 491 497 501 Chapter 15: Strategic Human Resource Management ........................................................ 505 102 Chapter 15 Overview ...................................................................................................... 506 103 Case in Point: Kronos Uses Science to Find the Ideal Employee ..................................... 508 104 The Changing Role of Strategic Human Resource Management in Principles of Management .......................................................................................................................................... 510 105 The War for Talent .......................................................................................................... 515 106 Effective Selection and Placement Strategies ................................................................. 519 107 The Roles of Pay Structure and Pay for Performance ...................................................... 524 Principles of Management BA 115 108 Designing a High-Performance Work System .................................................................. 529 109 Tying It All Together; Using the HR Balanced Scorecard to Gauge and Manage Human Capital, Including Your Own ............................................................................................. 534 Principles of Management BA 115 Principles of Management BA 115 1 Chapter 1: Introduction to Principles of Management 2 Principles of Management BA 115 Chapter 1 Overview Introduction to the Principles of Management What’s in It for Me? Reading this chapter will help you do the following: Learn who managers are and about the nature of their work. Know why you should care about leadership, entrepreneurship, and strategy. Know the dimensions of the planning-organizing-leading-controlling (P-O-L-C) framework. Learn how economic performance feeds social and environmental performance. Understand what performance means at the individual and group levels. Create your survivor’s guide to learning and developing principles of management. We’re betting that you already have a lot of experience with organizations, teams, and leadership. You’ve been through schools, in clubs, participated in social or religious groups, competed in sports or games, or taken on full- or part-time jobs. Some of your experience was probably pretty positive, but you were also likely wondering sometimes, “Isn’t there a better way to do this?” After participating in this course, we hope that you find the answer to be “Yes!” While management is both art and science, with our help you can identify and develop the skills essential to better managing your and others’ behaviors where organizations are concerned. Before getting ahead of ourselves, just what is management, let alone principles of management? A manager’s primary challenge is to solve problems creatively, and you should view management as “the art of getting things done through the efforts of other people.” Follett was an American social worker, consultant, and author of books on democracy, human relations, and management. She worked as a management and political theorist, introducing such phrases as “conflict resolution,” “authority and power,” and “the task of leadership.” The principles of management, then, are the means by which you actually manage, that is, get things done through others—individually, in groups, or in organizations. Formally defined, the principles of management are the activities that “plan, organize, and control the operations of the basic elements of [people], materials, machines, methods, money and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise.”The fundamental notion of principles of management was developed by French management theorist Henri Fayol (1841–1925). He is credited with the original planning-organizing-leading-controlling framework (P-O-L-C), which, while undergoing very important changes in content, remains the dominant management framework in the world. For this reason, principles of management are often discussed or learned using a framework called P-O-L-C, which stands for planning, organizing, leading, and controlling. Managers are required in all the activities of organizations: budgeting, designing, selling, creating, financing, accounting, and artistic presentation; the larger the organization, the more managers are needed. Everyone employed in an organization is affected by management principles, processes, policies, and practices as they are either a manager or a subordinate to a manager, and usually they are both. Managers do not spend all their time managing. When choreographers are dancing a part, they are Principles of Management BA 115 3 not managing, nor are office managers managing when they personally check out a customer’s credit. Some employees perform only part of the functions described as managerial—and to that extent, they are mostly managers in limited areas. For example, those who are assigned the ...
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