CHAPTER 1

I. What is Management?
Management is the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and
efficiently.
A. Achieving High Performance: A Manager's Goal
1. Organizational performance is the measure of how efficiently and effectively managers use resources to satisfy customers and achieve
organizational goals.
2. Effectiveness is how well the organization has achieved its goals.
3. Efficiency is how productively the resources are used.
II. Managerial Functions
A. Planning the process of identifying and selecting goals and ways to accomplish these goals.
1. Deciding goals
2. Analyzing the environment for threats and opportunities
3. Deciding courses of action (strategy)
4. Allocating resources to implement the plan
5. Evaluating effectiveness
Outcome: strategy (cluster of decisions of items 1-3 above)
B. Organizing structuring workplace relationships so organizational members work together to achieve organizational goals.
1. Grouping people by tasks
2. Establishing authority and responsibility
3. Deciding how best to coordinate resources (especially human)
Outcome: organizational structure (formal system of task & reporting relationships that coordinates and motivates)
C. Leading energizing and enabling workers toward the organization's goals.
1. Using power and influence
2. Articulating visions
3. Communicating effectively
Outcome: highly motivated and committed organizational members
D. Controlling evaluating the organization's performance and taking actions to improve its performance.
1. Monitoring individuals and departments
2. Monitoring the organization as a whole
3. Maintaining standards
Outcome: accurate measures and regulation of performance
III. Types and Levels of Managers
A. Managers grouped into departments (groups of people who work together using similar skills, knowledge, tools, or techniques to perform their jobs.)
B. Managers differentiated by their level in organization's hierarchy of authority
1. First-line managers (also called supervisors) daily supervise non-managerial employees.
2. Middle managers find best ways to use resources to achieve goals.
3. Top managers have cross-departmental responsibility. Establish goals, integrate departments, monitor performance of middle managers.
IV. Recent Changes in Managerial Hierarchies
1. Restructuring flattening or downsizing by eliminating jobs.
2. Outsourcing -- contracting with other companies to perform activities the organization previously performed itself. (often to low-cost countries)
3. Empowerment expanding employee's tasks and responsibilities. Facilitated by new information technologies.
4. Self-managed teams groups who supervise their own activities and monitor the quality of the goods and services they provide.
V. Managerial Skills and Roles
A. Managerial Skills
1. Conceptual skills analyzing and diagnosing a situation
2. Human skills understanding, leading, and controlling the behaviour of individuals and groups
3. Technical skills job-specific knowledge and techniques
B. Managerial Roles Identified by Mintzberg
- A role is a set of tasks a manager is expected to perform based on that manager's position in the organization.
1. Interpersonal roles
a. Figurehead explains the organization's goals to employees
b. Leader encourages, trains and coaches employees
c. Liaison coordinates activities of people both inside and outside of the organization
2. Informational roles
a. Monitor analyzes information from inside & outside organization
b. Disseminator informs workers about changes in the internal and external environment
c. Spokesperson informs the local community about the organization's activities
3. Decisional roles
a. Entrepreneur decide on projects or programs
b. Disturbance handler dealing with both internal and external crises of the organization
c. Resource allocator sets budgets
d. Negotiator works with other managers or organizations to establish agreements
C. Managerial Skills
1. Conceptual skills analyzing and diagnosing a situation
2. Human skills understanding, leading, and controlling the behaviour of individuals and groups
3. Technical skills job-specific knowledge and techniques

CHAPTER II
I. What is the Organizational Environment?
A. The organizational environment is a set of forces and conditions that have the potential to affect the way the organization operates.
B. As these forces change, they present opportunities and threats that managers must perceive and respond to.
C. Consider both the internal environment (within the organization, from structure and culture) and the external environment (outside the organization).
The stakeholders are all those people, groups and institutions that are affected by the environment.
D. Major categories of external environment: task and general environment.
II. a The Task Environment set of forces that have a direct, and often daily, effect on the organizations ability to obtain inputs, sell its outputs,
and other short-term decisions.
A. Suppliers provide the organization with input resources (raw materials, component parts, workers) to produce goods and services.
B. Distributors help organizations to sell their goods and services
C. Customers people and groups that buy the organizations goods and services
D. Competitors organizations that produce similar goods and services (that provide same benefit) and compete for the same customers.
Barriers to entry can result from:
1. Economies of scale cost advantages associated with large-scale operations.
2. Brand loyalty customers prefer the organizations products
3. Government regulations such as provincial or import restrictions
II. b The General Environment
A. Economic Forces interest rates, inflation, unemployment, and economic growth.
B. Technological Forces caused by changes in technology (which is the skills and equipment used to design, produce, and distribute goods and
services).
C. Demographic Forces outcomes of changes in (or changing attitudes toward), the characteristics of people such as age, gender, ethnic origin, and
social class
D. Sociocultural forces pressure coming from the social structure of a country
1. Social structure the relationships between individuals and groups
2. National culture the values & norms considered important by the society
E. Political and Legal Forces changes in laws and regulations, (such as deregulation, privatization, environmental protection, Competition Act)
F. Global Forces -- falling trade barriers and increasing economic integration of countries create opportunities and pose threats.
1. shaped by flow of capital (human, financial, resource and political) as it moves through companies and world regions seeking where it can
earn the greatest returns (wealth)
III. Impact of National Culture
A. National culture includes values, norms, knowledge, beliefs, moral principles, laws, customs, and other practices that unite the citizens of a country
B. Effective global managers can understand and work with diverse cultures
C. Hofstede provides five dimensions to define how national cultures differ:
1. individualism (worldview that values individual freedom, expression and achievement) vs. collectivism (values goals of the group more);
2. power distance: (determines degree to which inequalities in power and well-being are accepted in a society);
3. achievement orientation (where assertiveness, success, results are valued ) vs. nurturing orientation (value quality of life, personal
relationships, and caring for the weak)
4. uncertainty avoidance; (degree to which societies are willing to tolerate uncertainty and risk).
5. long-term orientation (worldview that values thrift and persistence in achieving goals) vs. short-term orientation (values personal stability
or current happiness
D. A culturally diverse management team that can adapt practices to cultural differences can be a source of strength.
IV. Managing the External Environment managing opportunities and threats in the organizations environment
A. Managers measure 1) environmental complexity (number and impact of forces) and 2) rate of environmental change and then choose the best
strategy
B. Reducing the Impact of Environmental Forces Managers at all levels contribute to gathering information and finding ways to reduce the negative
impact of environmental forces as they evolve over time
C. Managers as Agents of Change change in the environment is a two-way process as the choices managers make also affect the system as a whole.
V. Challenges for Management in a Global Environment
A. Building a competitive advantage
1. Increasing efficiency reducing the resources needed to produce goods
2. Increasing quality total quality management (TQM)
3. Increasing innovation creating new goods, services and processes
4. Increasing responsiveness to customers
B. Maintaining ethical standards avoiding bribes and other unethical behaviour
C. Utilizing new information systems and technologies to increase performance

CHAPTER III
I. What are Ethics?
A. Ethics are moral principles about what is right or wrong. They help people to choose a course of action, especially when facing an ethical dilemma.
B. Making Ethical Decisions.
1. Society passes laws based on the ethics of the majority, both of which change over time. Without absolute standards, ethical choices are
needed.
II. Ethics and Stakeholders
A. Stakeholders are those with an interest or claim in the organization
1. Stockholders want to maximize returns, and many are concerned about the social impact of the business and having transparent
accountability.
2. Managers want to be rewarded for the human capital they invest, and their compensation, along with many other decisions, requires them
to juggle conflicting interests of different stakeholders.
3. Employees expect equitable rewards consistent with performance.
4. Suppliers expect fair payment and distributors expect agreements to be upheld. Contract terms, and regulations, can involve ethical issues.
5. Customers are protected by many laws that are often broken.
6. Community, Society, and Nation are also affected by company decisions
B. An ethical decision is one acceptable to stakeholders, and an unethical decision is one preferably hidden from others as it benefits one at the expense
of society or other stakeholders.
1. Can use three sets of principles to analyze effects of decisions:
a. Utilitarian - greatest good for the greatest number
b. Moral rights best protects individual rights
c. Justice - distribute benefits and harm fairly and equitably
2. A practical guide is to answer three questions:
a. Is it within accepted values and standards?
b. Am I willing to see it in the newspaper or on television?
c. Would people significant to me approve of it?
C. Codes of ethics are formal standards and rights, based on beliefs about right or wrong, that are used to help guide appropriate decisions. Derived
from:
1. Societal ethics - standards that govern issues such as fairness, justice, poverty, and the rights of the individual, based on a society's laws,
customs, and practices, unwritten attitudes, values, and norms of interaction.
a. Ethics vary among societies. Bribery is standard in many poor countries, but is unethical in Canada.
2. Professional Ethics govern how doctors, lawyers, accountants, and other professions should behave. They often become internalized and
followed automatically.
3. Individual Ethics - personal values and attitudes influenced by family, peers, and an individual's personality and experience.
D. Ethical behaviour is emphasized by incorporating ethical values and norms into the organizational culture
1. Managers must be role models of ethical values and standards
2. Can appoint ethics ombudsman to monitor ethical practices & procedures
E. Regular training helps employees learn ethical values, but is not widespread
III. Social Responsibility - a manager's duty or obligation to make decisions that promote the well-being of stakeholders and society as a whole
A. Approaches to Social Responsibility by Traditional Businesses
1. Obstructionist approach - disregard for social responsibility; might act illegally or unethically
2. Defensive approach - minimal commitment to social responsibility; follow the law only
3. Accommodative approach - moderate commitment to social responsibility; may do more than law requires if asked
4. Proactive approach - strong commitment to social responsibility; go beyond the law and promote interests of stakeholders
B. Why Be Socially Responsible?
1. many advantages to socially responsible behaviour, including better reputation, improved quality of life, sustainability
2. social audits allow analysis of both private and social effects of decisions
IV. Diversity in Canada - differences among people (could be age, gender, race, religion, sexual orientation, socio-economic status, ability, position,
seniority, etc.)
A. The Ethical Need to Manage Diversity Effectively
1. Distributive justice distribute positive outcomes in a fair way based on meaningful contributions.
2. Procedural justice use fair procedures to distribute outcomes.
B. Effectively Managing Diversity Makes Good Business Sense
1. a variety of viewpoints improves decision making
2. diverse members relate to diverse issues of employees, customers & suppliers
3. consumer and civil rights organizations are demanding that companies think about diversity issues
C. Increasing Diversity Awareness
1. awareness programs strive to increase awareness of people's attitudes and of differing perspectives with goals such as:
a. providing accurate information about diversity
b. uncovering personal biases and stereotypes
c. improving understanding of others who are different
2. films, role-plays, discussions or outside consultants can be used
D. The Importance of Top-Management Commitment to Diversity
1. spread the message that diversity can be a source of competitive advantage, deal effectively with diverse employees, and be willing to
commit organizational resources to managing diversity
2. must be role models not just financiers
3. the main reasons for managing diversity are to:
a. improve productivity and remain competitive,
b. form better work relationships among employees,

c. enhance social responsibility

d. address legal concerns.
V. Harassment in the Workplace is both illegal and unethical Workplace harassment is behaviour directed toward an employee that is
offensive/unwelcome
A. Forms of Sexual Harassment
1. Quid pro quo a harasser asks or forces an employee to perform sexual favours to keep a job, receive a promotion or a raise, or
avoid dismissal.
2. Hostile work environment the organization creates or allows an intimidating, hostile, or offensive work environment based on
sex.
B. Steps Managers Can Take to Eradicate Sexual Harassment
1. Develop and clearly communicate a sexual harassment policy endorsed by top management
2. Use a fair complaint procedure to investigate charges
3. Take corrective actions quickly
4. Provide education and training to organizational members