summary for introduction to management chapter 1,2 & 3
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Hogeschool van Amsterdam (HvA)
International Business
Introduction to Management (1000ITM_22)
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Summary ITM resit
Chapter 1
Management is the attainment of organizational goals in an effective and efficient manner
through planning, organizing, leading, and controlling organizational resources.
This definition includes two important ideas:
1. The four functions of planning, organizing, leading, and controlling.
2. The attainment of organizational goals in an effective and efficient manner.
Efficiency: Pertains to the amount of resource- raw materials, money, and people- used to
produce a desired volume of output.
Effectiveness: Refers to the degree to which the organization achieves a stated goal.
The four management functions:
- Planning is the management function concerned with defining goals for the future
performance and how to attain them.
- Organizing involves assigning tasks, grouping tasks into departments, and allocating
resources.
- Leading means using influence to motivate employees to achieve the organization’s
goals.
- Controlling is concerned with monitoring employees’ activities, keeping the
organization on track towards meeting its goals and making corrections as necessary.
Management skills
- Conceptual skill is the cognitive ability to see the organization as a whole and the
relationship among its parts.
- Human skill refers to manager’s ability to work with and through other people and
to work effectively as part of a group.
- Technical skill is the understanding of and proficiency in the performance of specific
tasks.
,Management roles
- Interpersonal role
figurehead, leader, and liaison
- Informative role
monitor, disseminator, and spokesperson.
- Decisional role
Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator
Chapter 2
Management and organisation are shaped by forces in the larger society. Social, political,
and economic forces have influenced organizations and the practice of management.
- Social forces are aspects of a society that guide and influence relationships among people,
such as their values, needs, and standards of behaviour / What do people need? What are
the standards of behaviour among people?
- Political forces relate to the influence of political and legal institutions on people and
organizations / The increased role of government in business is one example of a political
force.
- Economic forces affect the availability, production, and distribution of a society’s
resources / A economic trend that affects managers worldwide is the growing economic
power of countries such as China, India, and Brazil.
Classical perspective
Managers are always on the lookout for new techniques and approaches to meet shifting
organizational needs. Looking at history gives managers a broader perspective for
interpreting and responding to current opportunities and problems.
The study of modern management began in the late nineteenth century with the classical
perspective, which took a rational, scientific approach to management and sought to turn
organizations into efficient operating machines. This perspective contains two subfields.
- Scientific management: Emphasizes scientifically determined changes in management
practices as the solution improving labour productivity / Frederick Winslow Taylor is known
as ‘the father of scientific management’. Scientific management is considered one of the
most significant innovations influencing modern management. Some supermarket chains
are using computerized systems based on scientific management principles to schedule
employees for maximum efficiency.
- Bureaucratic organizations approach: Emphasizes management on an impersonal level
(not family based), rational basis through elements such as clearly defined authority and
responsibility, formal recordkeeping, and separation of management and ownership / Max
Weber introduced most of the concepts about bureaucratic organizations.
,Humanistic perspective
The humanistic perspective on management emphasized the importance of understanding
human behaviours, needs, and attitudes in the workplace, as well as social interactions and
group processes.
The human relations management: Stresses the satisfaction of employees’ basic needs as
the key to increased productivity / The Hawthorne studies were important in shaping ideas
concerning how managers should treat workers.
Recent historical trends
Recent historical trends are systems thinking, the contingency view, and total quality
management.
System thinking means looking not just at discrete parts of an organizational situation, but
also at the continually changing interactions among the parts.
When managers think systemically and understand subsystem interdependence and
synergy, they can get a better handle on managing in a complex environment. Subsystems
are parts of a system that depend on one another for their functioning.
The concept of synergy says that the whole is greater than the sum of its parts. The
organization must be managed as a whole.
The contingency view tells managers that what works in one organizational situation might
not work in others. Managers can identify important contingencies that help guide their
decisions regarding the organization.
Total quality management focuses on managing the total organization to deliver quality to
customers.
Four significant elements of TQM are employee involvement, focus on the customer,
benchmarking, and continuous improvement.
W. Edwards Deming is known as the ‘father of the quality movement’.
, Chapter 3
The external environment
The external environment includes all elements existing outside the boundary of the
organization that have the potential to affect the organization.
A new view of the environment argues that organizations are now evolving into business
ecosystems. An organizational ecosystem is a system formed by the interaction among
community of organizations in the environment. An ecosystem includes organizations in all
the sectors of the task and general environments that provide the resource and information
transactions, flows, and linkages necessary for an organization to thrive.
The general environment
The general environment indirectly influences all organizations within an industry and
includes five dimensions.
The international dimension of the external environment represents events originating in
foreign countries, as well as opportunities for U.S. companies in other countries.
The technological dimension of the general environment includes scientific and
technological advances in society.
The sociocultural dimension includes demographic characteristics, norms, customs, and
values of a population within which the organization operates.
The economic dimension represents the general economic health of the country or region in
which the organization operates.
The legal-political dimension includes government regulations at the local, state, and federal
levels, as well as political activities designed to influence company behaviour.
(The internal environment includes elements within the organization’s boundaries, such as
employees, management, and corporate culture)
(The natural dimension includes all elements that occur naturally on Earth, including plants,
animals, rocks, and natural resources such as air, water, and climate)
The task environment
The task environment includes the sectors that conduct day-to-day transactions with the
organization and directly influence its basis operations and performance. The task
environment includes those sectors that have a direct working relationship with the
organization, among them customers, competitors, suppliers, and the labour market.
Customers are part of the task environment and include people and organizations that
acquire goods or services from the organization.
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