Org. Structure & Management: Decision Making, Leadership & Motivation, Apuntes de Derecho Común

¡Descarga Org. Structure & Management: Decision Making, Leadership & Motivation y más Apuntes en PDF de Derecho Común solo en Docsity! TOPIC 1: INTRODUCTION TO MANAGEMENT An organization is a deliberate arrangement of people to accomplish some specific purpose. It has three characteristics: - Distinct purpose - People - Deliberate structure A firm is any profit-seeking organization that provides goods and services designed to satisfy customer’s needs. Every firm has a business model. This is a clear outline of how it intends to generate revenue and realize profit. 1) Revenue: money a firm brings in through the sale of goods and services 2) Profit: Money left over all the expenses have been deducted from revenues. A firm transforms inputs into outputs. It has three stages: input, conversion process and output. Each firm seeks a competitive advantage that makes its products or services more appealing to its customers. Theories 1) Neoclassical theory The firm is seen as a black box that transforms inputs into outputs. The goal is to maximize profit It doesn’t attempt to explain what goes on inside the black box 2) Transaction costs The are costs involved in carrying out a transaction (information deficiencies, monitoring and negotiation) The main goal is to minimize the transaction goals The make or buy decision depends on the transaction costs. This depends upon the asset. 3) Principal agent theory A firm is seen as a nexus between principals and agents. (A principal hires and agent to act on his behalf. If the interest of the principal and the agent differ, the agent wont put effort on his work) For the efficient functioning of the firm, the principals and agents interest should be the same 4) Resources based view of the firm A firm is seen as a bundle of resources and capabilities. The firm resources may lead to a competitive advantage if the are valuable rare and difficult to imitate. According to the RBV, the firm should retain in house all the competitive advantages Forms of business Sole Propietorship, Partnership and Corporation 1) Sole Proprietorship: The business is owned by a single person and has many employees The sole proprietorship has flexibility and control (can make decisions)
 The owner has unlimited liability (The owner and the business are inseparable and any damages incurred in the business are the owners personal responsibility.) 2) Partnership: The business is owned by two or more people. There are two types - General partnership: all partners have joint authority to make decisions and have unlimited liability - Limited partnership: one or more person act as a general partners who run the business and have unlimited liability. The remaining owners have limited liability - Limited liability: The maximum amount each owners is liable to whatever amount each invested in the business. 3) Corporation: Legal entity that has the power to own property and conduct business It is owned by shareholders ( these are investors who purchase shares of stocks). The are two types: - Private corporation: When the stock is owned by few individuals. Not available for the public. - Public corporation: When the stock is sold to anyone. Mananger A manager is someone who coordinates and oversees the work of other people so that they can achieve their goals.There are three leves of management. 1) First line managers: Manage the work of non-managerial employees 2) Middle managers: Manage the work of first line managers 3) Top managers: Responsible for making decisions and establishing plans and goals. Management involvers coordinating and overseeing the work so that they are completed efficiently and effectively. - Efficiency: Most output, less input - Effectiveness: Doing those activities that will help us achieve our goals Management functions -Planning: Setting goals, strategies and developing plans -Organizing: Structuring goals to achieve their goals -Leading: Working with and through people to achieve their goals -Controlling: Monitoring, comparing and correcting work Management roles Actions or behaviors expected by a manger. According to Mintzberg: - Interpersonal roles: Involve people and symbolic duties - Informational roles: Involve collecting, receiving and disseminating information - Decisional roles: Making decisions or choices Management skills According to Katz, managers need some skills: - Technical skills: knowledge and techniques - Interpersonal skills: Work well with other people - Conceptual skills: Think and conceptualize Globalization: The extent to which trade and investments information social and cultural ideas and flow between countries. MNC: Multinational Corporations is an international company that maintains operations in multiple countries 1) Multidomestic corporations. Descentralizes management and other decisions to the local country 2) Global company: Centralizes management and other decisions in the home country 3) Transnational organization: Artificial geographical barriers are eliminated, focus is on the efficiency and effectiveness in the global marketplace Forms of international business activity: - Global sourcing: Purchasing material or labor from around the world wherever it is cheapest - Exporting: Making products domestically and selling them abroad - Importing: Acquiring products made abroad and selling them domestically - Licensing agreements: Entitle one company to use some of another firm’s intellectual property in return for a royalty payment - Franchising: Selling the right to use a business system including brand names and business processes - Strategic alliance: A partnership between an organization and more foreign company partner in which both share resources and knowledges in developing new products or building production facilities - Joint venture: A specific type of strategic alliance in which the partners agree to form a separate independent organization for some business purpose - Foreign subsidiary: Directly investing in a foreign country by setting up a separate and independent production facility or or office.s TEMA 4: PLANNING AND GOAL SETTING Planning: A management function that involves setting goals, establishing strategies and developing plans. Plans are documents that outline how goals are going to be met. Goals are desired outcomes or targets. Criteria: - Need to be specific and measurable - Defined in a time period - Cover key result areas - Challenging - Linked to rewards Stretch goals: Highly ambitious goals which people have to be innovative to find ways to reach them. Types of plans 1) Strategic plans: Affect the entire organization and establish the goals 2) Operational goals: Affects a particular area 3) Long term plans: Beyond 3 years 4) Short term plans: 1 year or less 5) Directional: Flexible plans that set out guide lines 6) Specific plans: Specific plans that are clearly defined. No room for interpretation. 7) Single use plans: Designed for a unique situation 8) Standing plans: Provide guidance for activities performed repeatedly. Approaches to setting goals The are two types of setting goals: Traditionals goals setting and management by objectives - Traditional goals setting: Top managers set the goals that then flow down and become sub- goals for each area - Management by objetives (MBO): A process of setting agreed goals and using those goals to evaluate employee’s performance. The process is: set goals, develop the action, review progress and appraise performance TOPIC 5: MANAGING STRATEGY - Strategic management: What managers do to develop the organizations strategies - Strategy: A plan of how the organization will compete successfully, attract and satisfy the customers and achieve its goals - Business model: How the company is going to make money. - Mission: A statement of the purpose of an organization. It normally describes the company business activities and purpose, as well as the values SWOT analysis: An analysis of the organization’s strengths , weakness, opportunities and threats. 1) Strengths: Unique resources and activities that the firm does well (Internal environment) 2) Weaknesses: Lack of resources that the firm does not do well (Internal environment) 3) Opportunities: Positive trends (External environment) 4) Threats: Negative trends (External environment) Levels of organizational strategies - Corporate strategy: An organizational strategy that determines whats businesses a company is in and what it wants to do with those businesses. - Competitive strategy: An organizational strategy that determines how a company competes in each of its businesses - Functional Strategy: A strategy used by the departments of a company to support the competitive strategy Types of growth strategies 1) Concentration: A firm grows by focusing in its primary line of business, increased the number of products offered. 2) Backward Vertical Integration: The organization becomes its own supplier. Controls its inputs 3) Forwards vertical integration: The organization becomes its own distributor. Controls outputs. 4) Horizontal integration: A company grows by combining operations with competitors. 5) Related diversification: A firm grows by moving into a new business in related industries 6) Unrelated diversification: A firm grows by moving into a new business in unrelated industries BCG: A strategy tool that guides resource allocation decisions on the basis of market share and anticipate market growth rate. (A strategy tool that is used to make decisions in function to the market share and the market growth) -Stars: High market share high market growth -Cash cows: High market share low market growth -Question marks: Low market share high market growth -Dogs: Low market share low market growth International strategies 1) International strategies -Multidomestic strategy: High need for local responsiveness and low need for global integration. Decisions are decentralized. -Global strategy: Low need for local responsiveness and high need for global integrations. Decisions are centralized. Transnational strategy: High need for local responsiveness and high need for global integration 2) Competitive strategy: Strategies of how an organization will compete in its business - strategic business units (SBU’s): Single independent business that formulate their own competitive strategies. - Competitive advantage: Sets and organization apart, its distinctive edge Competitive strategies that identify Porter: 1) Cost leadership strategy: the organization competes on the basis of having the lowest cost 2) A differentiation strategy: The company offers unique products 3) Focus strategy: the company purses a cost advantage or a differentiation advantage. In a narrow industry segment or niche Innovation strategies: - First mover: An organization that is first to bring a product innovation Advantages: Being innovative and industry leader Cost and learning benefits Resources Opportunity to build loyalty Disadvantages: Uncertainty over technology and market Risk of imitating Financial and strategic risks High development costs TOPIC 6: DECISION MAKING A decision is a choice among alternatives. Process: 1) Identify a problem 2) Identiy decision crteria 3) Allocate weights to the criteria 4) Develop alternatives 5) Analyze alternatives 6) Select an alternative 7) Implement the alternative 8) Evaluate the decision effectiveness Rational decision making: Choices that are logical and consistent and maximize value. Centralization High formalization 2) Organic organization: An organization design that’s highly adaptive and flexible and typically has the following elements. Cross functional teams Cross hierarchical teams Free flow of information Wide spans of control Decentralization Low formalization Organization designs - Simple structure: An organizational design with low departmentalization, wide spans of control, centralized authority and little formalization - Functional structure: Groups positions into departments based on similar skills, expertise, work activities - Divisional structure: An organization structure made up of separate, semiautonomous units or divisions - Matrix structure: Assigns specialists from different functional departments to work on one or more projects being led by a project. Dual chain of command: Employees in a matrix structure have two managers: their functional area manager and their product or project manager - Team: A unit of two or more people who share a mission and collective responsibility as they work together to achieve a goal Cross functional team: Draws together employees from different functional areas and expertise Virtual team uses communication technologies to bring together geographically - Boundaryless organization: An organization whose design is not defined by boundaries imposed by a predefined structure Virtual organization: organization that consists of a small core of full time employees and outside specialists temporarily hired as need to work on projects Network organization: organization that uses its own employees to do some work activities and contracts out a network of outside suppliers to provide other need product components. Flexible work arrangement 1) Telecommuting: Work arrangement in which employees work at home and are linked to the workplace by a computer 2) Compressed workweek: a workweek where employees work longer hours per day but fewer days per week 3) Flextime: A scheduling system in which employees are required to work a specific number of hours a week but are free to vary those hours with certain limits 4) Job sharing: the practice of having two or more people split a full time job TOPIC 8: EMPLOYEE MOTIVATION AND LEADERSHIP Leading The management function of guiding, influencing and motivating people to work effectively Management vs leadership -Management is the rational and practical side whereas leadership is the inspirational and emotional side. -Management involver position power whereas leadership involves personal power. Sources of a leaders power 1. Legitimate power: the power a leader has as a result of his position in the organization 2. Coercive power: power to punish or control 3. Reward power: the power to give positive benefits or rewards 4. Expert power: the influence a leader can exert asa result of his or her expertise, sills or knowledge 5. Referent power: the power of a leader that arises because of a persons desirable resource or admired personal traits. Leadership Styles 1. Autocratic leader: work methods, makes decision and limits employees participation 2. Democratic leader: involves employees in decision, delegates authority and uses feedback to coach employees 3. Laissez-faire leader: lets the group make decision and complete the work. Motivation Motivation is the process by which a persons efforts are energized, directed, and sustained toward attaining a goal. There are five theories: 1. Maslow´s hierarchy of need theory: People are motivated in different ways. This ways have a hierarchical order: lower order needs take priority and must be satisfied before higher order needs: -Physiological needs -Safety needs -Social needs -Esteem needs -Self-actualization needs 2. Herzberg´s two factor theory: This theory says that intrinsic factors are related to job satisfaction while extrinsic factors are associated with job dissatisfaction. -Instrinct factors: arise from the job itself -Extrinsic factors: arise from the job context When extrinsic factors are adequate, people won´t be dissatisfied but they won´t be satisfied either. 3. Goal-setting theory: Managers can increase motivation by setting specific and challenging goals and providing feedback. There are some key elements while setting a goal: -Goal Specifity: specific goals are motivating -Goal Difficulty: challenging but achievable goals -Goal acceptance: individuals need to be committed to the goal -Feedback: people get information on a regular basis of how they are doing. 4. Equity theory: How fairly they are treated compared with others. People evaluate equity by a ratio of inputs to outcomes. Perceived inequity creates tensions within individuals and motivate them to bring equity into balance. 5. Expectancy theory: The effort employees put forth depends on: -Their expectations regarding the level of performance they are able to achieve -Their expectations regarding the reward in response to that performance -The attractiveness of those rewards This theory emphasizes on the effort performance, the performance reward and the attractiveness of reward. ROWE Results only work environment Employees are rewarded for outcomes not for the amount of hours they spend working Motivating jobs In order to create motivating jobs: 1. Job rotation: accept multiple jobs and rooting them through jobs to combat boredom 2. Job enlargement: horizontally expanding the job by increasing the number of different tasks required in a job 3. Job enrichment: making jobdmore challenging and interesting by expanding their skills. TOPIC 9: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human resource management (HRM): Activities undertaken to attract, develop and maintain an effective workforce Human resource planning: Ensuring the organization has the right number and kinds of people in the right places and at the right times. It entails assessing current human resources and meeting future HR needs. - Job analysis: Defines the nature of the job and the behaviors necessary to perform it - Job description: Written statement that describes a job (content, environment and conditions) -Job specification: Written statement of the minimum qualifications a person must posses to perform a given job successfully Recruitment: Locating, identifying and attracting capable applicants Recruiting sources: Internet, employee referrals, company web site, college recruiting and professional recruiting organizations Decruitment: Reducing an organization’s workforce Decruitment options: firing, reduced workweeks, job sharing and early retirement Selection: Screening job applicants to ensure that the most appropriate candidates are hired Selection tools: Application form, interviews, written tests, performance test, physical examinations and background investigations Orientation: Introducing a new employee to his or her job and the organization Training: A planned effort by an organization to facilitate employee’s learning of job related skills and behaviors