Summary of learning outcomes and key môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Principle of Management
SUMMARY OF LEARNING OUTCOMES AND KEY POINTS Chap 1:
1. Describe management and the kinds of managers found in organizations.
oManagement is a set of activities (planning and decision-making, organizing, leading, and
controlling) directed at using an organization’s resources (human, financial, physical, and
information) to achieve organizational goals efficiently and effectively.
oA manager is someone whose primary responsibility is to carry out the management process within an organization.
oManagers can be classified by level: top managers, middle managers, and first-line managers.
oManagers can also be classified by area: marketing, finances, operations, human resources,
administration, and specialized.
2. Explain the four basic management functions. (2ways)
The basic activities of the management process include:
Planning and decision-making (determining courses of action)
Organizing (coordinating activities and resources)
Leading (motivating and managing people)
Controlling (monitoring and evaluating activities) or
The four basic functions of management are planning, organizing, leading, and controlling. Planning
involves setting objectives and deciding how to achieve them. Organizing refers to arranging resources
and tasks in a structured way to accomplish objectives efficiently. Leading focuses on motivating and
directing team members to work towards organizational goals. Finally, controlling monitors progress
and makes necessary adjustments to stay on track. Each function is crucial and interconnected,
requiring a coordinated approach for effective management.
3. Describe the fundamental management skills and the concept of management
as both science and art.
- Management involves coordinating and overseeing the work activities of others so that their
efforts lead to the achievement of organizational goals efficiently and effectively. Fundamental
management skills are often categorized into the following skills: technical, human, conceptual,
diagnostic, communication, decision-making, and time management. - Management as a Science:
Systematic Knowledge: Management is based on a systematic body of knowledge comprising
principles, theories, and models that are developed through research and analysis.
Reproducibility and Prediction: Like other sciences, management principles can be applied
repeatedly in similar conditions to achieve predictable results.
Objective Methods: The practice of management uses objective methods and techniques
derived from data analysis, experiments, and empirical evidence. - Management as an Art:
Personal Skill and Creativity: Effective management, much like art, depends significantly on
the personal skill, intuition, wisdom, and creativity of the manager. Each situation can be
unique, requiring a personalized approach.
Practice and Continuous Improvement: As in artistic fields, managerial skills are honed
through continuous practice and learning from experiences. The more these skills are
practiced, the more proficient the manager becomes.
Influence and Inspiration: Managers, much like artists, must inspire and motivate their teams
to achieve optimal performance. This often requires an emotional connection and the ability to
craft compelling visions that resonate with employees.
4. Explain the evolution of management thought through classical, behavioral,
and quantitative perspectives.
The classical management perspective, which paid little attention to the role of workers, had
two major branches: scientific management (concerned with improving efficiency and work
methods for individual workers) and administrative management (concerned with how
organizations themselves should be structured and arranged for efficient operations).
The behavioral management perspective is characterized by a concern for the individual. and
group behavior emerged primarily because of the Hawthorne studies. The human relations
movement recognized the importance and potential of behavioral processes in organizations
but made many overly simplistic assumptions about those processes. Organizational behavior,
a more realistic outgrowth of the behavioral perspective, is of interest to many contemporary managers.
The quantitative management perspective, which attempts to apply quantitative techniques to
decision-making and problem-solving, has two components: management science and
operations management. These areas are also of considerable importance to contemporary
managers. Their contributions have been facilitated by the tremendous increase in the use of
personal computers and integrated information networks.
5. Discuss the key contemporary management perspectives represented by the
systems and contingency perspectives.
- The systems and contingency perspectives are two key contemporary approaches to management
that have developed as managers seek more effective strategies to navigate complex
organizational environments. Each perspective offers a unique way of understanding
organizations and how they should be managed.
- Integration of Systems and Contingency Perspectives
Both perspectives offer complementary insights into effective management:
The systems perspective provides a framework for understanding the complex
interdependencies within an organization and between the organization and its environment.
The contingency perspective adds a layer of situational responsiveness, suggesting that
managers need to continuously adapt systems based on changing internal and external conditions.
Together, these perspectives encourage managers to be both systematic in understanding
organizational dynamics and flexible in adapting to changing situations. This holistic
approach is essential in a modern business environment characterized by rapid change and high complexity.
6. Identify the major challenges and opportunities faced by managers today.
Managers today face significant challenges and opportunities shaped by technological advances,
globalization, and changing workforce dynamics. Major Challenges
Technological Change: Managers must adapt to rapid advancements in AI, robotics, and data analytics.
Globalization: Navigating diverse cultural, legal, and economic environments is crucial due to global operations.
Workforce Diversity: Managing an increasingly diverse workforce requires fostering
inclusivity to enhance performance.
Remote Work: Adapting management practices to accommodate remote work and maintaining team cohesion.
Regulatory Compliance: Ensuring adherence to complex regulations and maintaining high ethical standards.
Economic Uncertainty: Dealing with economic fluctuations and managing resources during downturns. Major Opportunities
Technological Innovation: Leveraging technology for improved efficiency and productivity.
New Markets: Exploring global markets opens new revenue streams and growth opportunities.
Talent Management: Utilizing diverse global talents for innovation and improved decision-making.
Corporate Social Responsibility (CSR): Building brand loyalty through sustainability and social initiatives.
Communication Tools: Using modern tools for better communication and collaboration across teams.
Learning and Development: Promoting continuous learning to adapt to changes and enhance skills.
Managers need to be proactive, adaptable, and committed to continuous learning to navigate
these complexities effectively. Chap 3:
1. Think about the many big businesses that impact your life today, such as
technology, automotive, and retail. Which type of strategy do you think the
founders of these types of companies started with? - Technology Sector
Innovation and Differentiation Strategy: Founders in the technology sector often focus on
creating highly innovative and unique products or services that stand out from the competition.
This strategy involves developing new technologies or applying existing technologies in novel
ways to meet unfulfilled customer needs. For example, companies like Apple and Microsoft
leveraged this strategy by introducing revolutionary products that reshaped markets.
Speed to Market Strategy: Another common approach is prioritizing rapid development and
deployment of technology solutions to gain a first-mover advantage in the market. This
strategy can help set industry standards and build a strong customer base quickly. Early internet
companies, such as Amazon and Google, successfully employed this strategy by scaling their
operations rapidly to dominate their respective sectors. - Automotive Sector
Cost Leadership Strategy: Many founders in the automotive industry, such as Henry Ford with
Ford Motor Company, initially pursued a cost leadership strategy. This involves optimizing
production processes to reduce costs below those of competitors, thus allowing for lower
pricing or higher margins. The introduction of assembly line production is a classic example of this strategy in action.
Focused Differentiation Strategy: Some automotive companies choose to target specific market
segments with tailored offerings that appeal to tastes or requirements. Luxury car
manufacturers like BMW and Tesla have adopted this approach, focusing on high quality,
brand prestige, and advanced technology to attract a niche market willing to pay a premium. - Retail Sector
Customer-Centric Strategy: Founders in the retail sector often prioritize understanding and
meeting the needs of their customers above all else. This can involve tailoring product
assortments, creating unique shopping experiences, or providing exceptional service.
Walmart’s strategy of offering the lowest prices every day to attract budget-conscious
consumers exemplifies this approach.
Omnichannel Strategy: As digital technology has evolved; new retail companies have emerged
with a strategy that integrates physical and online shopping experiences to serve customers
more effectively. This approach allows for broad accessibility and convenience. Modern
retailers like Warby Parker and Amazon have successfully utilized this strategy to capture significant market share.
2. Can an organization have too much diversification? Are there disadvantages to diversification?
Research suggests that unrelated diversification usually does not lead to high performance.
Unrelated diversification often underperforms because it involves significant challenges. Firstly,
managers may lack a deep knowledge of new industries, leading to suboptimal strategic decisions
and poor capital allocation. Secondly is missed synergies, unlike related diversification, unrelated
diversification fails to exploit cost, revenue, and strategic synergies, which can hinder efficiency
and competitive advantage. Therefore, companies considering diversification should focus on areas
where they can leverage existing competencies and achieve synergies. Opting for related
diversification is generally more effective as it utilizes the firm's established strengths and market
presence, thus providing a more strategic and cohesive growth path.
Ex: Kodak, once a giant in the photographic film industry, attempted to diversify into various
unrelated businesses during the 1980s and 1990s. This included ventures into pharmaceuticals,
household chemicals, and digital technology, among others. The diversification strategy was
intended to mitigate the risks associated with its core photography business, which was facing
potential disruption from digital photography. By the time Kodak tried to refocus on digital
photography, it had lost significant ground to competitors who had been more focused and
aggressive in adopting new technologies. Kodak’s struggle with its diversified portfolio contributed
to its eventual filing for bankruptcy in 2012.
3. What is contingency planning? How is it similar to and different from crisis management?
Contingency planning is a proactive strategy that involves creating a detailed roadmap for dealing
with potential emergencies, unexpected events, or disruptions in business operations. It aims to
prepare an organization to respond effectively to significant future events or changes that could harm
its performance, reputation, or existence. Contingency plans typically identify potential risks or
scenarios, assess their impact, and outline specific steps to take when these situations occur. The goal
is to minimize disruption and ensure stability and continuity of operations.
Contingency planning and crisis management are essential strategies to protect your organization.
While contingency planning is proactive, preparing detailed responses to potential future disruptions,
crisis management is reactive, focusing on minimizing damage after a crisis has occurred. By
implementing both, your organization can ensure it is well-prepared to prevent, respond to, and
recover from disruptions. Contingency planning allows you to anticipate and mitigate risks before
they unfold, maintaining stability and operational continuity. On the other hand, effective crisis
management enables swift, strategic responses to manage and recover from unforeseen events,
preserving your organization's reputation and stakeholder trust. Together, these strategies provide a
comprehensive defense against the unpredictable, safeguarding your organization’s interests in
today’s volatile business environment. Chap 5
1. In what way has the nature of the workforce changed in recent years?
In recent years, the workforce has undergone profound changes driven by increased diversity,
technological integration, and shifting employee expectations. Work environments now embrace
more remote and flexible work arrangements, amplified by the COVID-19 pandemic, and there's a
noticeable rise in gig and freelance opportunities. Employees today prioritize meaningful work,
work-life balance, and organizational values, steering companies to adapt their HR practices
accordingly. Additionally, as populations age and industries evolve, continuous learning and
professional development have become crucial for maintaining workforce relevance and
productivity. These transformations require organizations to be flexible and innovative in their
approach to workforce management.
2. Managerial ethics is an important element of business, but who determines
what is ethical and what is not? Who are managers ethically responsible to?
Employees, consumers, and other stakeholders? How do these groups affect the
ethical decision-making process for managers?
We define ethics as an individual’s personal beliefs about whether a behavior, action, or decision is
right or wrong. Note that we define ethics in the context of the individual—people have ethics,
whereas organizations do not. Likewise, what constitutes ethical behavior varies from one person to another.
Managerial ethics consists of the standards of behavior that guide individual managers in their
work. One important area of managerial ethics is the treatment of employees by the organization. It
includes, for example, hiring and firing, wages and working conditions, and employee privacy and
respect. Numerous ethical issues stem from how employees treat the organization, especially
regarding conflicts of interest, secrecy and confidentiality, and honesty. Managerial ethics also come
into play in the relationship between the firm and its employees with other economic agents. The
primary agents of interest include customers, competitors, stockholders, suppliers, dealers, and unions. Một cách lí giải khác:
Managerial ethics, pivotal in business, revolves around principles guiding managers in their conduct.
The determination of what is ethical is influenced by a blend of societal norms, legal standards,
organizational culture, and individual values. Managers hold ethical responsibilities to a wide array
of stakeholders, including employees, consumers, investors, and the community at large. Each group
directly impacts ethical decision-making as managers must balance diverse and often competing
interests. Employees may demand fair treatment and safe working conditions, consumers expect
honesty and integrity in products and services, while investors seek transparency and adherence to
governance standards. Community expectations might include environmental stewardship and social
responsibility. Navigating these demands requires managers to integrate ethical considerations into
strategic decision-making, ensuring sustainable and socially responsible outcomes.
3. Which do you feel is the most compelling argument for social responsibility by organizations?
One of the most compelling arguments for social responsibility by organizations is the long-term
financial sustainability that it can foster. Engaging in socially responsible practices often leads to a
positive corporate reputation, which can attract and retain both customers and employees who are
increasingly choosing to associate with ethically conscious companies. This reputational capital not
only helps differentiate the brand in competitive markets but also builds customer loyalty and trust,
which are critical for long-term success.
Moreover, companies that prioritize social responsibility are better positioned to anticipate and adapt
to regulatory changes regarding environmental and social issues. This proactive approach can
mitigate risks, reduce costs related to compliance penalties, and even foster innovation in products
and services, leading to new business opportunities. Therefore, by embedding social responsibility
into their core strategies, companies not only contribute positively to society and the environment
but also enhance their sustainability and profitability. This alignment of ethical practices with
business objectives effectively creates a virtuous circle that benefits all stakeholders, making it a
compelling case for social responsibility. Chap 14
1. Which type of control helps the organization transform resources such as raw
materials into products or services that are then sold in the market?
The type of control that helps an organization transform resources such as raw materials into
products or services that are then sold in the market is typically referred to as operational control.
This form of control focuses on the day-to-day execution of organizational operations and is
concerned with ensuring that the various aspects of production processes are efficient, effective,
and aligned with the organization’s goals.
Operational control involves the following key activities:
Resource Management: Efficiently managing resources like raw materials, labor, and
machinery to maximize productivity and minimize waste.
Quality Control: Implementing standards and procedures to ensure that products or
services meet required quality benchmarks.
Process Monitoring: Continuously monitoring and evaluating production processes to
ensure they are running smoothly and to quickly address any issues that may arise.
Cost Control: Keeping track of costs related to production to ensure they stay within
budget and contribute to profitability.
By effectively implementing operational controls, organizations can enhance their ability to
efficiently convert inputs into outputs, thereby optimizing the production process and improving
the marketability of their products or services.
2. Why is the control of financial resources considered to be the most important
area of control? How might a controller support this function at various levels of the organization?
The control of financial resources is considered crucial for organizational success primarily because
it ensures efficient resource allocation, effective cash flow management, and robust risk
management, all while ensuring regulatory compliance and aiding in performance evaluation. A
controller plays a vital role in this by overseeing accounting and financial reporting functions across
various organizational levels. At the operational level, they manage day-to-day financial activities
and maintain accurate records. At the tactical level, controllers aid in budgeting and forecasting to
enhance cost efficiency. Strategically, they provide key financial insights that guide long-term
investment decisions and financial planning. Furthermore, at the governance level, controllers ensure
adherence to financial policies and compliance with regulatory standards, crucial for maintaining
organizational integrity and transparency. This comprehensive oversight helps solidify the
foundation for a financially stable and strategically agile organization.
3. Which type of operations control focuses on the quality and quantity of
resources such as financial, material, human, and information?
The type of operations control that focuses on the quality and quantity of resources such as financial,
material, human, and information is known as resource control. This control mechanism is crucial
for ensuring that resources are used efficiently and effectively within an organization. Resource
control involves monitoring and managing the input side of the operations process to optimize the
use of assets and reduce waste.
Resource control covers several key aspects:
Financial Resources: Managing capital and operational budgets, ensuring that funds are allocated
appropriately, and financial resources are used efficiently.
Material Resources: Overseeing the procurement, storage, and utilization of materials needed for
production or service delivery. This includes managing inventory levels to meet production
demands without excessive stock.
Human Resources: Monitoring labor productivity and ensuring that the workforce is effectively
utilized. This includes managing staffing levels, scheduling, and workload distribution to
optimize performance and minimize labor costs.
Information Resources: Controlling the flow and quality of information within the organization.
This involves ensuring accurate data collection, processing, and dissemination to support decision-making processes.
By effectively controlling these resources, organizations can enhance operational performance,
minimize costs, and improve productivity and profitability.
4. Where could a manager find information about financial performance for the past six months?
Financial Statements: The primary and most detailed sources are the financial statements,
including the income statement, balance sheet, and cash flow statement. These documents
provide a comprehensive view of the organization's financial health, showing revenue,
expenses, profitability, assets, liabilities, and cash flows.
Management Reports: These are internal reports prepared by the accounting or finance
department, providing regular updates on financial performance. They often include monthly
or quarterly performance reviews, budget comparisons, and variance analyses.
Budgetary Reviews: Budget reports compare actual financial outcomes against the budgeted
figures for the period. These reviews help managers understand where the finances deviate from expectations and why.
Dashboard and Financial Software: Many organizations use financial management software or
dashboards that provide real-time data on key financial metrics. These tools can show trends,
forecasts, and performance metrics updated continuously.
Board of Directors Meetings Minutes: For corporate managers, minutes from board meetings can
provide insights into the financial discussions and decisions that impact the company's performance.
Departmental Reports: Specific department reports might also contain relevant financial
information, particularly concerning departmental budgets, expenditures, and contributions to revenue.
By utilizing these resources, managers can gain a detailed understanding of the financial
performance over the past six months, allowing for informed decision-making and strategic planning
5. During times of uncertainty and rapid change, which type of organizational
control would allow an organization to manage change better? Why? What
characteristics of other types of control might prevent an organization from
successfully managing uncertainty? Why?
During times of uncertainty and rapid change, adaptive control or flexible control systems are
typically the most effective for organizations. These types of control mechanisms allow for greater
agility and responsiveness, which are crucial in dynamic environments.
Why Adaptive Control is Effective: -
Responsiveness: Adaptive control systems are designed to quickly respond to changes in the
environment. They enable organizations to adjust strategies, operations, and processes as
conditions evolve, without the delay often involved in more rigid control frameworks. -
Continuous Learning: These systems often incorporate mechanisms for continuous feedback and
learning, which help organizations better understand and react to new information or unexpected events. -
Decentralization: Adaptive control usually involves some degree of decentralization, allowing
decision-making power to be spread across different levels of the organization. This can speed up
response times and enhance the organization’s ability to deal with local or specific changes effectively.
Adaptive control systems, with their focus on flexibility and responsiveness, are better suited for
managing change in uncertain and rapidly evolving environments. In contrast, more traditional forms
of control such as bureaucratic, financial, and quality controls, while important in stable conditions,
may inhibit quick decision-making and flexibility, thus impeding effective management of
uncertainty. Organizations must balance these control mechanisms, incorporating more flexibility
while maintaining enough structure to ensure coherence and alignment with long-term goals.
6. Why do some people resist control? Are managers partly to blame for this
resistance? Why or why not? How can managers help overcome resistance?
People often resist organizational control due to perceived threats to autonomy, lack of
understanding, fear of negative consequences, and aversion to change, with managerial approaches
sometimes exacerbating these issues. Managers can inadvertently contribute to resistance through
poor communication, inflexible implementation, and a lack of trust. To overcome resistance,
managers must involve employees in the development and rollout of control measures, clearly
communicate the reasons and benefits of these systems, provide adequate training and support, show
flexibility by adapting based on feedback, and build a foundation of trust by making fair and
transparent decisions. These strategies help in fostering acceptance and minimizing resistance to
control systems, enhancing both their effectiveness and the overall organizational performance.
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1.ChatGPT has appeared and caused some changes in the way management works.
What do you think about ChatGPT? Will it help or hinder organizational
performance? List out some possible advantages and disadvantages you might
think of. Don’t forget to provide examples to clarify your points.
ChatGPT and similar AI technologies can significantly impact organizational performance, offering
both potential advantages and disadvantages depending on how they are implemented and managed.
Here’s a breakdown of some possible benefits and drawbacks:
Advantages of ChatGPT in Organizations
Efficiency Improvements: ChatGPT can automate routine tasks such as responding to
customer inquiries, scheduling appointments, or generating reports. This automation frees up
employees’ time for more complex and creative tasks, potentially increasing overall
productivity. For example, a customer service department could use ChatGPT to handle
standard queries, allowing human agents to focus on resolving more complex issues that require human intervention.
Enhanced Decision-Making: By integrating ChatGPT with big data analytics, organizations
can gain insights more quickly and make informed decisions based on data-driven analysis.
ChatGPT can process large volumes of data and provide summaries or recommendations,
assisting managers in industries like finance or marketing where rapid data analysis is crucial.
Cost Reduction: Implementing AI like ChatGPT can lead to significant cost savings by
reducing the need for human labor in certain tasks and improving the speed and accuracy of
those tasks. For instance, automating data entry or analysis tasks in accounting can reduce
errors and the manpower needed for these activities.
Improved Customer Experience: ChatGPT can provide instant customer service across various
platforms 24/7, ensuring that customer queries are handled promptly at any time. This
constant availability can enhance customer satisfaction and loyalty.
Disadvantages of ChatGPT in Organizations
Job Displacement: One major concern is the potential for AI to displace jobs, particularly in
roles focused on routine or repetitive tasks. This displacement could lead to job losses or
require significant reskilling of staff, which could be disruptive and costly.
Dependency and System Failures: Over-reliance on AI technologies like ChatGPT can lead
organizations to become vulnerable to system failures or cyber-attacks. If these systems go
down or are compromised, it could paralyze essential functions that have become dependent on AI.
Ethical and Privacy Concerns: The use of AI in managing personal data raises concerns about
privacy and data protection. There is also the risk of AI systems making decisions that could
be seen as unethical or biased if the data they are trained on is not properly vetted.
Loss of Human Touch: In roles that benefit from personal interaction, such as HR or customer
service, relying too much on AI can lead to a loss of personal touch. Customers and
employees might feel less engaged or valued, potentially harming brand reputation and employee satisfaction.
2. Compare and contrast the relative importance of the four characteristics that
companies look for in managers as they rise through the management hierarchy.
That is, describe the similarities and differences in these characteristics among
lower, middle, and upper-level managers and explain the reasons for the differences.
As individuals progress through the management hierarchy from lower-level to middle and upper-level
managerial positions, the relative importance of the characteristics they need to exhibit can vary significantly. - Technical Skills
Lower-Level Managers: Technical skills are crucial at this level because these managers are often
directly involved in day-to-day operations. They need to understand specific, operational tasks
and how to execute them efficiently.
Middle-Level Managers: While still valuable, technical skills are less critical for middle managers
compared to lower-level managers. Middle managers need a good understanding of the technical
aspects but are more focused on coordinating these tasks rather than executing them directly.
Upper-Level Managers: At this level, technical skills are less emphasized. Upper managers need
to understand the broad technical aspects of the organization, but they are not typically involved
in the direct application of these skills. - Human Skills
Lower-Level Managers: Essential for managing teams directly and handling operational employee
issues. Human skills are crucial at this level for motivating employees and handling day-to-day management challenges.
Middle-Level Managers: Equally, if not more, important at this level as middle managers act as a
bridge between lower-level managers and upper management. They must effectively manage both
upward and downward communications and relationships.
Upper-Level Managers: Human skills remain critical, as upper-level managers need to inspire and
lead the entire organization, manage change, and influence various internal and external stakeholders. - Conceptual Skills
Lower-Level Managers: Less important at this level. Lower managers focus more on applying
specific rules and procedures rather than on understanding complex organizational interrelations.
Middle-Level Managers: More important, as these managers must see beyond day-to-day
operations and understand how different parts of the organization fit together and affect each other.
Upper-Level Managers: Most critical at this level. Upper-level managers need a strong ability to
conceptualize the organization as a whole and how changes in one part affect others. They must
understand global trends, industry changes, and how the organization must strategically position itself. - Strategic Thinking
Lower-Level Managers: Not a primary focus, as their decisions typically concern day-to-day
operational issues within a defined framework set by higher management levels.
Middle-Level Managers: Begins to take on greater importance. Middle managers need to align
departmental goals with the organization's strategy and manage resources accordingly.
Upper-Level Managers: Absolutely crucial at this level. Strategic thinking is a core characteristic
of upper management, involving long-term planning, industry analysis, competitive strategy, and
making decisions that shape the entire organization's future.
Reasons for Differences: The differences in these characteristics across management levels are largely
due to the scope and impact of decision-making at each level. Lower-level managers are most involved
with immediate, operational concerns, requiring a hands-on approach and specific technical and human
skills. As managers rise, the focus shifts from operational to strategic, requiring more conceptual
understanding and strategic foresight. This shift necessitates a change in skill sets to effectively guide
the organization towards long-term goals while maintaining day-to-day operations.
3. Describe the key management skills that are essential for management success.
What is the importance of each type of skill to different levels of management and
why? As a student, what type of skills should you concentrate on most and why?
Successful management relies on a balanced set of skills, typically categorized into three main types:
technical skills, human skills, and conceptual skills. Each of these plays a vital role at various levels of
management, and their relative importance can shift depending on the specific managerial position. Technical Skills
Definition: Technical skills involve specialized knowledge, analytical ability, and proficiency in
tools and techniques specific to a particular field or industry.
Importance at Different Levels:
Lower-Level Management: Most critical at this level, as these managers are often directly
involved in operations and need a strong understanding of how specific tasks are performed.
Middle-Level Management: Important but less so than for lower-level managers, as the focus
shifts more toward coordination and integration rather than hands-on application.
Upper-Level Management: Least critical at this level, as the focus is on strategic decision-
making rather than operational details. Human Skills
Definition: Human skills involve the ability to interact effectively with people. These include
skills related to communication, conflict resolution, motivation, and team building.
Importance at Different Levels:
All Levels: Equally important across all levels of management. Effective communication and the
ability to work well with others are indispensable for managing teams, influencing stakeholders,
and leading entire organizations. Conceptual Skills
Definition: Conceptual skills involve the ability to work with ideas and concepts. These skills
enable managers to understand and integrate various organizational dynamics, strategize, and solve complex problems.
Importance at Different Levels:
Lower-Level Management: Less important at this level, with a more focused scope of work.
Middle-Level Management: Increasingly important, as managers need to see how different parts
of the organization fit together and affect each other.
Upper-Level Management: Most critical at this level, where broad strategic thinking and
decision-making that affect the entire organization are required.
What Skills Should a Student Concentrate on Most and Why?
As a student preparing for a future in management, focusing on developing human skills should be a
priority. While technical skills are specific to your field and will naturally develop through your
academic and professional training, human skills are universally beneficial regardless of your career
path. These skills enhance your ability to communicate effectively, work well in teams, resolve conflicts,
and lead others—capabilities that are crucial in any managerial role. Additionally, fostering good human
skills early can help in building professional networks and in personal development, both of which are
beneficial throughout your career. Furthermore, it is advantageous to start developing strong conceptual
skills, especially if you aspire to reach upper-level management positions. Being able to think
strategically, understand complex organizational structures, and foresee industry trends are capabilities
that will set you apart in more senior roles.
4. Describe the management by objectives (MBO) process. Which type of manager
would be responsible for MBO? What is the probable value of MBO to managers?
Management by Objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both management
and employees. The MBO process encourages participation and commitment among employees,
enhancing alignment and performance across all levels of the organization. While MBO can be
implemented by managers at various levels, it is typically most relevant to middle and upper-level
managers. Middle-level managers are crucial in bridging the gap between the strategic objectives set by
upper management and the operational activities performed by lower-level managers and their teams.
They play a key role in setting specific departmental or team objectives that align with the broader
strategic goals of the organization. Value of MBO to Managers:
Clarity and Focus: MBO provides a clear direction by aligning team goals with organizational
objectives, enhancing focus on what needs to be achieved.
Employee Engagement: Involving employees in goal setting increases motivation and
commitment, directly impacting productivity and job satisfaction.
Performance Improvement: Focused on measurable outcomes, MBO helps in precisely
evaluating and driving performance.
Enhanced Communication: Regular reviews foster better communication, addressing issues
promptly and enhancing coordination.
Personal Development: MBO facilitates professional growth by aligning personal goals with organizational needs.
5. Compare and contrast the planning done at the top, middle, and bottom levels of an organization.
Planning within an organization varies significantly across different levels: top, middle, and bottom,
each tailored to specific roles and responsibilities.
Top-Level Planning: Executed by senior executives, this strategic planning sets the organization’s
long-term direction, focusing on broad, long-range goals and market positioning. It is
comprehensive, dealing with high-risk decisions that affect the entire organization and
emphasizing sustainability and competitive advantage.
Middle-Level Planning: Conducted by department heads and regional managers, tactical planning
translates top-level strategies into specific, actionable objectives for segments of the organization.
These plans, typically spanning 1-3 years, aim to bridge strategic visions with operational realities
and focus on the effective implementation of higher-level strategies.
Bottom-Level Planning: Frontline managers and supervisors engage in operational planning, which
is highly detailed and focuses on the daily activities necessary for the organization’s functioning.
These short-term plans are aimed at efficient resource use and meeting immediate operational goals. Differences Across Levels:
Scope and Focus: Strategic at the top, tactical in the middle, operational at the bottom.
Time Horizon: Long-term at the top, medium-term in the middle, short-term at the bottom.
Detail and Specificity: Least detailed at the top, increasing in specificity and detail moving downwards.
Risk and Impact: Highest risk and impact at the top, decreasing as it moves toward bottom-level operations.
This hierarchical structuring ensures that each level's planning activities are aligned with the
organization's overall objectives, facilitating effective management and coherent organizational
functioning. Managers at each level need to understand not only their specific planning requirements but
also how these integrate with other levels to support the entire organization's goals.
6. The daughter of a well-known financier is currently in her first year of college but
has decided that she wants to earn an MBA as soon as possible after earning her
four-year college degree. Outline the five steps in effective planning and use these
planning guidelines to develop an appropriate plan for her.
To effectively achieve her goal of earning an MBA immediately after her undergraduate degree, the
daughter of the financier can follow these five steps in effective planning:
Step 1: Set Clear, Specific Goals
Objective: To earn an MBA immediately after completing a four-year undergraduate degree.
She should specify which field of business interests her most to target relevant MBA programs.
Determine the specific business schools that align with her career aspirations.
Step 2: Establish Commitment to the Goals Commitment:
She needs to be committed to the academic rigor and admission requirements of top MBA programs.
Involve family and mentors in her plans to strengthen her commitment and gain their support and guidance. Step 3: Develop Action Steps Action Steps:
Research: Conduct thorough research on potential MBA programs, focusing on those that best fit
her career goals and academic interests.
Academic Excellence: Maintain a high GPA in her undergraduate studies to meet the stringent
academic requirements of prestigious MBA programs.
Gain Experience: Seek internships or part-time jobs relevant to her field of interest to enhance her
resume and gain practical experience.
Networking: Engage in networking with professionals in the business field, attend business-
related events, and join relevant clubs and societies in college.
Prepare for Exams: Start preparing for the GMAT or GRE exams early to achieve a competitive score.
Application Preparation: Begin drafting personal statements, gathering recommendation letters,
and preparing other required application materials well in advance.
Step 4: Perform Periodic Follow-Up Monitoring Progress:
Regularly reviews her academic performance and adjusts her study habits as necessary.
Keep track of internship experiences and reflect on the learning outcomes and skills developed.
Periodically reassess her list of targeted MBA programs based on her academic progress and professional experiences.
Regular meetings with a career advisor or mentor to discuss progress and make necessary adjustments to her strategy. Step 5: Maintain Flexibility Adaptability:
Stay informed about any changes in MBA admission trends or requirements.
Be prepared to take additional courses or gain further experience if feedback from advisors or
changes in the industry indicate it would be beneficial.
Be open to reassessing her top choices of MBA programs as she gains more insight and
experience throughout her undergraduate years.
By following these steps, she can systematically approach her goal of entering an MBA program right
after her undergraduate degree. This structured plan not only sets a clear path but also incorporates
flexibility and regular evaluations to adapt to changing circumstances or insights gained during her journey.
7. Describe the key management skills that are essential for managerial success.
What is the importance of each type of skill to different levels of management and
why? As a student, what type of skills should be concentrated on most and why?
Key management skills essential for managerial success include technical skills, human skills, and conceptual skills:
Technical Skills: Important for lower-level managers who need to understand and oversee day-to-
day operations. These skills help managers understand specific processes and work directly with tools or equipment.
Human Skills: Crucial at all levels but especially for middle managers who bridge the gap
between upper management and front-line employees. These skills involve effective
communication, conflict resolution, and the ability to motivate and lead a team.
Conceptual Skills: Most important for upper-level managers who must make strategic decisions
that affect the entire organization. These skills involve thinking abstractly, planning strategically,
and understanding complex situations holistically.
As a student, focusing on human skills is particularly beneficial because they are universally applicable
across various management levels and essential for leading effectively, regardless of the specific field or
industry. Additionally, developing strong conceptual skills early can set a foundation for strategic
thinking and problem-solving, which are valuable for future leadership roles.
8. Define contingency thinking and give an example of how it might apply to management.
Contingency thinking refers to the management principle that there is no one universally best way to
manage or make decisions in organizations. Instead, the effectiveness of a specific approach is
contingent upon the internal and external conditions at the time. This concept emphasizes the need for
flexibility and adaptability in management practices, allowing managers to tailor their strategies to
best fit the specific circumstances they face.
Ex: In a scenario where a company operates in both stable and volatile markets, contingency thinking
guides managerial strategy. For a stable market, a traditional top-down management approach might
be utilized to promote efficiency. However, in a volatile market, the same approach could hinder
responsiveness. Here, adopting a decentralized management style could be more effective,
empowering lower-level employees to make quick decisions in response to rapid market changes. This
demonstrates how contingency thinking allows managers to tailor strategies to the specific conditions
of each environment, enhancing overall organizational agility and effectiveness.
9. Explain why the external environment is so important in the open systems view of organizations.
The external environment is crucial in the open systems view of organizations because it
fundamentally influences all aspects of organizational operations and strategies. In an open systems
perspective, organizations are seen as dynamic entities that continuously interact with their
environments. This interaction is vital for obtaining resources, understanding market demands, and
adapting to external changes. The external environment shapes opportunities and threats that
organizations must respond to to survive and thrive.
Ex: Consider Apple, which operates in the dynamic tech industry. Its external environment includes
rapidly evolving technology, consumer preferences, regulatory changes, and economic conditions.
Apple's ability to innovate—demonstrated by regularly introducing advanced iPhone models—reflects
its response to technological advancements and consumer demands. Additionally, global regulations
and economic factors influence its operational strategies and pricing. This example shows how Apple's
engagement with its external environment is essential for securing resources, meeting market
demands, and maintaining its competitive edge in a constantly changing industry.
10.Who and/or what should be considered as key stakeholders by a business
executive when mapping the task environment for his/her organization?
Key stakeholders to be considered by a business executive when mapping the task environment
include customers, suppliers, competitors, and regulatory agencies. Each of these groups has a direct
impact on the organization's operational success and strategic planning.
Example: A restaurant owner must consider:
Customers for their preferences and satisfaction to tailor menu offerings.
Suppliers for sourcing quality ingredients at competitive prices.
Competitors to understand the local dining market landscape and differentiate the restaurant.
Regulatory agencies to ensure compliance with health and safety standards, significantly affecting operations.
These stakeholders collectively influence the restaurant's operational strategies and its ability to thrive in the market.
Example 2: Consider a technology startup focused on developing renewable energy solutions. The
key stakeholders that a business executive should consider when mapping the task environment include:
Investors, who provide the necessary capital and expect a return on their investment.
Government entities, which can impact operations through regulations and can also provide
subsidies for renewable energy initiatives.
Competitors, to identify market gaps and positioning.
Customers, including both businesses and consumers, who demand effective and efficient renewable energy solutions.
These stakeholders directly influence the startup’s strategic choices, funding opportunities,
compliance requirements, and market positioning, shaping its ability to innovate and compete in the renewable energy sector.
11. Why do host countries sometimes complain about how global corporations
operate within their borders?
Host countries sometimes complain about the operations of global corporations for several reasons:
Economic Impact: Multinational corporations can dominate local markets and minimize their
tax contributions through international profit shifting, potentially harming domestic businesses
and reducing local tax revenues.
Labor Issues: Global companies might employ labor practices that fall below the host country's
standards, such as offering low wages or poor working conditions.
Environmental Concerns: These corporations can cause significant environmental damage if
they do not adhere to local regulations, leading to pollution and natural resource degradation.
Cultural Impact: The presence of global brands can overshadow local traditions and businesses, threatening cultural identity.
Political Influence: Large companies may lobby for regulatory changes that favor their
interests, potentially at the expense of local businesses and consumers.
Economic Dependency: Dependence on multinational corporations can make a country
vulnerable to their business decisions, such as relocating operations, which can disrupt the local economy.
12.Why is the power-distance dimension of national culture important in management?
The power-distance dimension of national culture is vital in management because it shapes
organizational dynamics, including leadership, communication, and decision-making:
Leadership Styles: High power-distance cultures expect a top-down approach with clear
hierarchies, while low power-distance cultures prefer collaborative and participative leadership.
Communication Practices: Power distance affects openness in communication. In low power-
distance settings, communication is direct and informal, whereas in high power-distance
environments, it tends to be more formal and reserved.
Decision-Making: In high power-distance cultures, decision-making is often centralized among
senior leaders, whereas low power-distance cultures support a more democratic approach.
Conflict Resolution: High power distance may lead to conflicts being resolved by authority
figures, while low power distance cultures encourage direct negotiation.
Motivation and Incentives: Motivation strategies differ; high power-distance cultures value status
and recognition from superiors, whereas low power-distance places emphasize intrinsic rewards.
Adapting management practices to align with the cultural expectations of power distance can enhance
effectiveness, employee satisfaction, and organizational productivity.
13.Distinguish differences and similarities between Eastern and Western cultures in work culture.
Distinguishing between Eastern and Western cultures in terms of work culture involves considering
broad generalizations that may not apply uniformly across all countries or contexts within these
regions. However, certain predominant cultural differences and similarities do often influence workplace behaviors and norms. Differences Hierarchy and Authority:
Eastern Cultures: Tend to emphasize hierarchical structures and respect for authority. It's
common for employees to defer to their superiors and less likely for lower-ranking staff to challenge decisions openly.
Western Cultures: Often have more egalitarian views of workplace authority. Flat
organizational structures are more common, and employees are generally encouraged to
participate in decision-making and express dissenting opinions. Communication Style:
Eastern Cultures: Indirect communication is prevalent, where maintaining harmony and
saving face is important. Feedback is often given less instantly.
Western Cultures: More direct communication is common, where explicitness and clarity in
conveying thoughts and feedback are valued. Work-Life Balance:
Eastern Cultures: There may be a stronger emphasis on work, with longer working hours and
greater expectations of loyalty to the company. Work often takes precedence over personal life.
Western Cultures: Generally, there is a greater emphasis on maintaining a balance between
work and personal life. Policies promoting work-life balance are more common.
Group Orientation vs. Individualism:
Eastern Cultures: Work tends to be more group-oriented with a focus on collective success and harmony within the group.
Western Cultures: There's a stronger focus on individual achievement and autonomy in the
workplace. Individual goals and accomplishments may be more emphasized. Similarities Globalization: