a measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals. Organizational performance increases in direct proportion to increases in efficiency and effectiveness.

Efficiency- a measure of how well or how productively resources are used to achieve a goal (minimizing amount of input resources)

Effectiveness- a measure of the appropriateness of the gaols that managers have selected for the organization to pursue and of the degree to which the organization achieves those goals. Effective when managers choose appropriate goals and achieve them. 

Planning- deciding which goals the organization will pursue, what courses of action to adopt to attain those goals and how to allocate organizational resources to attain those goals.

Organizing- structuring working relationships in a way that allows organizational members to work together to achieve organizational goals

Leading- articulating a clear vision and energizing and enabling organizational members so that they understand the part they play in achieving organizational goals

Controlling- evaluating how well an organization is achieving its goals and taking action to maintain or improve performance

First-line Manager- a manager who is responsible for the daily supervision of nonmanagerial employees (aka supervisors)

Middle Managers- a manger who supervises first-line managers and is responsible for finding the best way to use resources to achieve organizational goals.  Developing and fine-tuning skills and know-how.

Top Manager- a manager who establishes organizational goals, decides how departments should interact, and monitors the performance of middle managers. Report to the CEO and COO 

Managerial Skills

(acquired through education and experience) 

conceptual skills- the ability to analyze and diagnose a situation and to distinguish between cause and effect. Today there is continuted management education and training.

Human Skills- the ability to understand, alter, lead and control the behavior of other individuals and groups.

Technical skills- the job-specific knowledge and techniques required to perform an organizational role. 

simplifying, shrinking, or downsizing and organiztion's operations to lower operating costs

Outsourcing- contracting with another company, usually in a low-cost country abroad, to have it perform a work activity the organization previously performed itself, such as manufacturing, marketing or customer service. 

Empowerment- expansion of employees' knowledge, tasks and decision making responsibilities. Can lead to many types of performance gains.

Self managed team- a group of employees who assume responsibility for organizing, controlling, and supervising their own activities and monitoring the quality of the goods and services they provide.

(both are made easier and possible through IT) 

The ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do.

Four building blocks:

efficiency

quality

speed, flexibility and innovation

responsiveness to customers 

Three main categories: nautral causes, man-made causes (polution, global warming, etc) and international terrorism/geopolitical conflicts

Crisis management- making important choices about how to create teams to facilitate rapid decision making and communication, establish the organizational chain of command and reporting relationships necessary to mobilize a fast response, recruit and select the right people to lead and work in such teams, and develop bargaining and negotiating strategies to manage the conflicts that arise whenever people and groups have different interests and objectives. 

1. Study the way workers perform their tasks, gather all the informal job knowledge that workers possess, and experiment with ways of improving the way tasks are performed.

2. Codify the new methods of performing tasks into written rules and standard operating procedures.

3. Carefully select workers so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures.

4. Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level. 

1. In a bureaucracy, a manager's formal authority derives from the position he or she holds in the organization.

2. In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts.

3. The extent of each position's formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified.

4. Authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them.

5. Managers must create a well-defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization. 

the mother of management thought

pointed out managers often overlook the ways employees can contribute to the organization when allowed to participate and exercise initiative in their everyday work lives.

Since they know the most about their jobs, workers should be involved in job analysis and participate in the work development process.

Advocated cross-functioning-diff departments working together to accomplish projects

the attitudes of workers toward their managers affect the level of workers' performance

spurred the human relations movement which advocated that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity. 

Theory X- the average worker is lazy, dislikes work and will try to do as little as possible. Manager's task is to counteract workers' natural tendencies to avoid work. Must supervise closely and control behavior through rewards and punishments.

Theory Y- assumes that workers are not inherently lazy, do not naturally dislike work, and if given the opportunity, will do what is good for the organization. Manager's task to crease a work setting that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to exercise initiative and self-direction. 

clusters of firms that share similar strategies.

In industry analysis: no two firms are totally different and no two firms are exactly the same

Values of strategic grouping:

1. helps a firm identify barriers to mobility that protect a group from attacks by other groups.

2. helps a firm identify groups whose competitive position may be marginal or tenuous

3. helps chart the future directions of firm's strategies

4. helpful in thinking through the implications of each industry trend for the strategic group as a whole 

posits that motivation is high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes. Focuses on all three parts of the motvation equation: inputs, performance and outcomes.

Identifies three major factors that determine a person's motivation: expectancy, instrumentality and valence.

Expectancy- a person's perception about the extent to which effort (an input) results in a certain level of performance. If expectancy is low, motivation will be low.

Instrumentality- a person's perception about the extent to which performance at a certain level results in the attainment of outcomes. Instrumentalities must be high for motivation to be high.

Valence- how desirable each of the outcomes available from a job or organization is to a person. Managers need to determine which outcomes have high valence for employees and make sure those outcomes are provided when members perform at a high level. 

All people seek to satisfy five basic kinds of needs: psychological needs, safety needs, belongingness needs, esteem needs and self-actualization needs.

In the hierarchy, the most basic/compelling needs (physiological and safety) are at the bottom. 

The lowest level of unmet needs in the hierarchy is the prime motivator of behavior; if and when this level is satisfied, needs at the next highest level in the hierarchy motivate behavior.  

a theory of motivation that concentrates on people's perceptions of the fairness of their work outcomes relative to, or in proportion to, their work inputs. Motivation is influenced by the comparison of one's own outcome-input ratio with the outcome-input ratio of a referent.

Equity exists when a person perceives his or her own outcome-input ratio to be equal to a referent's outcome-input ratio.

Inequity- exists when a person's outcome-input ratio is not perceived to be equal to a referent's. 

Underpayment inequity- when a person's own outcome-input ratio is perceived to be less than that of a referent. Overpayment inequity- when a person perceives that his or her own outcome-input ratio is greater than that of a referent. 

focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects. Goals must be specific and difficult.

Goal- what a person is trying to accomplish through his or her efforts and behaviors. 

Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desires behaviors and the attainment of goals.

Learning- a relatively permanent change in knowledge or behavior that results from practice or experience. 

(a learning theory) People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. By linking the performance of specific behaviors to the attainment of specific outcomes, managers can motivate organizational members to perform in ways that help an organization achieve its goals.

 Tools:

Positive reinforcement- gives people outcomes they desire when they perform organizationally functional behaviors.

Negative reinforcement- eliminating or removing undesired outcomes when people perform organizationally functional behaviors.

Extinction- curtailing the performance of dysfunctional behaviors by eliminating whatever is reinforcing them.

Punishment- administering an undesires or negative consequence when dysfunctional behavior occurs. 

a theory that takes into account how learning and motivation are influenced by people's thoughts and beliefs and their observations of other people's behavior.

 Vicarious learning- learning that occurs when the learner becomes motivated to perform a behavior by watching another person perform it and be reinforced for doing so; also called observational learning.

Self-reinforcer- any desired or attractive outcome or reward that a person gives to himself or herself for good performance.

Self-efficacy- a person's belief about his or her ability to perform a behavior successully. 

Extraversion- the tendency to experience positive emotions and moods and feel good about onself and the rest of the world. Managers high on extraversion tend to be sociable, affectionate, outgoing, and friendly.

Negative Affectivity- the tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others. Managers high on this trait may often feel angry and dissatisfied and complain about their own and others' lack of progress.

Agreeableness- the tendency to get along well with others. Managers who are high on the agreeableness continuum are likable, tend to be affectionate, and care about other people.

Conscientiousness- the tendency to be careful, scrupulous, and perservering. Mangers who are high on this are organized and self-disciplined.

Openness to Experience- the tendency to be original, have broad interests, be open to a wide range of stimuli, be daring and take risks. Managers high on this continuum may be especially likely to take risks and be innovative in their planning and decision making. Likely to initiate major changes in organizations. 

Other Personality Traits

Locus of Control, Self-Esteem and Needs for Achievement, Affiliation and Power 

Locus of control:

Internal locus of control- the tendency to locate responsibility for one's fate within oneself. See the success of a whole organization resting on their shoulders.

External locus of control- the tendency to locate responsibility for one's fate in outside forces and to believe that one's own behavior has little impact on outcomes.

Self-Esteem- the degree to which individuals feel good about themselves and their capabilities. People with high self-esteem believe they are competent, deserving and capable of handling most situations. Tend to choose activities/goals consistent with their levels of self-esteem.

Need for achievement- the extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards of excellence. Often set clear goals for themselves and like to receive performance feedback.

Need for affiliation- the extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked and having the people around him or her get along with one another.

Need for power- the extent to which an individual desires to control or influence others. 

Values- what managers are trying to achieve through work and how they think they should behave.

Attitudes- their thoughts and feelings about their specific jobs and organizations. A collection of feelings and beliefs.

 Mood- a feeling or state of mind

Emotions- more intense feelings than moods, are often directly linked to whatever caused the emotion, and are more short-lived. 

Terminal value- a personal conviction about lifelong goals or objectives

Instrumental Value- a personal conviction about desired modes of conduct or ways of behaving. Terminal values often lead to the formation of norms (informal rules of conduct, for behaviors considered important by most members of a group or organization) 

the collection of feelings and beliefs that managers have about their current jobs. Managers who have high levels of job satisfaction generally like their jobs, feel that they are being fairly treated, and believe that their jbos have many desirable features or characteristics.

Levels of job satisfaction tend to increase as one moves up the hierarchy in an organization 

The ability to understand and manage one's own moods and emotions and the moods and emotions of other people.

Managers with a high level of emotional intelligence are more likely to understand how they are feeling and why, and they are more able to effectively manage their feelings. Will make sure feelings/emotions do not get in the way of effective decision making. 

the process by which newcomers learn an organization's values and norms and acquire the work behaviors necessary to perform jobs effectively. They think that these values and norms describe the right and proper way to behave.

Most organizations have some kind of socialization program to help new employees learn the ropes- the values, norms and culture of the organization. 

Formal events that recognize incidents of importance to the organization as a whole and to specific employees.

Rites of passage- determine how individuals eneter, advance within, or leave the organization.

Rites of integration- reinforce common bonds among organizational members

Rites of enhancement- let organizations publicly recognize and reward employees' contributions and thus strengthen their commitment to organizational values. 

Stories about organizational heroes and villains and their actions provide important clues about values and norms. Can reveal the kinds of behaviors that are valued by the organizaiton and the kinds of practiced that are frowned on.

Language- the characteristic slang or jargon that people use to frame and describe events provides important clues about norms and values. Concept of organizational language encompasses not only spoken language but how people dress, the offices they occupy, the cars they drive and the degree of formality they use when they address one another.