Organizational behavior is the study of actions that affect performance in the workplace. The goal of organizational behavior theorists is to explain and predict actions and how they will affect performance. The field of organizational behavior has three levels of focus: the individual, the group, and the organization.
Personality is a combination of behavioral, mental, and emotional traits that define an individual. Personality is based on genetics and environmental factors.
The Big Five Personality Traits
1. Extraversion
2. Agreeableness
3. Emotionalism
4. Conscientiousness
5. Openness to Experience
Perception is the process of selecting, organizing, and interpreting environmental information.
Attitudes are positive or negative evaluations of people, things, and situations.
Power is the ability to influence others’ behavior. Within an organization, power should be viewed in a positive sense. Without power, managers could not achieve organizational objectives.
Politics is the process of gaining and using power. Like power, politics often has a negative connotation due to people who abuse political power.
A conflict exists whenever people are in disagreement and opposition.
Source:
Management Fundamentals, (2006) by Lussier, R. N.,(3rd ed.). Thomson.
Tuesday, September 25, 2007
Thursday, September 20, 2007
Selecting A Form of Business
One of the most important decisions an entrepreneur must make when establishing a new business is the form of ownership. This chapter examines the major forms of business ownership and identifies ways investors can become owners of existing businesses.
A sole proprietorship is a business owned by a single owner. The owner is called the sole proprietor. About 70 percent of all firms in the United States are organized as sole proprietorships. However, since most sole proprietorships are small, they generate less than 10 percent of all business revenue.
A partnership is a business that is co-owned by two or more people. The owners of the business are called partners. About 10 percent of all firms are organized as partnerships.
A corporation is a state-chartered business entity that pays taxes and is legally distinct from its owners. The people who form a corporation must adopt a corporate charter and file it with the state government.
Obtaining Ownership of an Existing Business
1. Assuming Ownership of a Family Business
2. Purchasing an Existing Business
3. Franchising
Source:
1. Introduction to Business (2006) by Jeff Madura, (4th ed.). Thomson.
A sole proprietorship is a business owned by a single owner. The owner is called the sole proprietor. About 70 percent of all firms in the United States are organized as sole proprietorships. However, since most sole proprietorships are small, they generate less than 10 percent of all business revenue.
A partnership is a business that is co-owned by two or more people. The owners of the business are called partners. About 10 percent of all firms are organized as partnerships.
A corporation is a state-chartered business entity that pays taxes and is legally distinct from its owners. The people who form a corporation must adopt a corporate charter and file it with the state government.
Obtaining Ownership of an Existing Business
1. Assuming Ownership of a Family Business
2. Purchasing an Existing Business
3. Franchising
Source:
1. Introduction to Business (2006) by Jeff Madura, (4th ed.). Thomson.
Tuesday, September 18, 2007
Organization Structure & Design
Organizing, the second function of management, is defined as the process of delegating and coordinating tasks and resources to achieve objectives. The four resources managers organize are human, physical, financial, and information.
The principle of unity of command requires that each employee should report to only one boss. The principle of unity of direction requires that all activities be directed toward the same objectives.
Coordination ensures that all departments and individuals within an organization should work together to accomplish the strategic and operational objectives. Responsibility is the obligation to achieve objectives by performing required activities.
Authority is the right to make decisions, issue orders, and use resources.
Accountability is the evaluation of how well individuals meet their responsibilities.
Delegation is the process of assigning responsibility and authority for accomplishing objectives. Delegation is covered in detail later in this chapter.
Flexibility means that there will always be exceptions to the rule.
Organizational design refers to the internal structure of an organization or the arrangement of positions in the organization into work units or departments and the interrelationships among them.
Job design is the process of identifying tasks that each employee is responsible for completing.
Job simplification is the process of eliminating or combining, and/or changing the sequence of work to increase performance.
Job expansion is the process of making jobs less specialized. Jobs can be expanded through rotation, enlargement, and enrichment.
Job rotation involves performing different jobs in some sequence, each one for a set period of time.
Job enlargement involves adding tasks to broaden job variety.
Job enrichment is the process of building motivators into the job itself to make it more interesting and challenging.
Source:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
The principle of unity of command requires that each employee should report to only one boss. The principle of unity of direction requires that all activities be directed toward the same objectives.
Coordination ensures that all departments and individuals within an organization should work together to accomplish the strategic and operational objectives. Responsibility is the obligation to achieve objectives by performing required activities.
Authority is the right to make decisions, issue orders, and use resources.
Accountability is the evaluation of how well individuals meet their responsibilities.
Delegation is the process of assigning responsibility and authority for accomplishing objectives. Delegation is covered in detail later in this chapter.
Flexibility means that there will always be exceptions to the rule.
Organizational design refers to the internal structure of an organization or the arrangement of positions in the organization into work units or departments and the interrelationships among them.
Job design is the process of identifying tasks that each employee is responsible for completing.
Job simplification is the process of eliminating or combining, and/or changing the sequence of work to increase performance.
Job expansion is the process of making jobs less specialized. Jobs can be expanded through rotation, enlargement, and enrichment.
Job rotation involves performing different jobs in some sequence, each one for a set period of time.
Job enlargement involves adding tasks to broaden job variety.
Job enrichment is the process of building motivators into the job itself to make it more interesting and challenging.
Source:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
Friday, September 14, 2007
Business Ethics & Social Responsibility
Companies have a social responsibility when producing and selling products. All production should be completed with customer safety in mind. For example, warning labels on prescription drugs should be used to prevent accidents that could result from misuse. Full information on side effects should be listed for public safety. Responsibility extends into the sales process as well. For example,
a common problem is that product may be overpriced because the salesperson is more interested in making a higher commission (rather than saving the customer money). Salespeople may also be inclined to withhold information just to make the sale.
Responsibility to Customers
Firms have a social responsibility to ensure that their products, services, and actions affect society in a beneficial way.
Responsibility to Employees
Employee safety can be improved upon by closely monitoring the production process to provide a safe working environment. Equal opportunity for all prospective employees regardless of their national origin, race, gender, or religion.
Responsibility to Stockholders
In an effort to ensure responsibility to stockholders, employee decisions are monitored to determine that they are made in the best interests of the owners (i.e., maximizing the firm’s value).
Responsibility to Creditors
Firms must meet their financial obligations to their creditors, those who have provided loans to the firm. Firms violate their responsibility to creditors when they provide misleading financial information about their financial condition.
Responsibility to the Environment
To prevent air pollution, firms have implemented changes in their production processes in order to minimize airborne emissions. As a result of the production techniques used by certain firms, nearby land has been polluted by toxic waste.
Responsibility to the Community
This is demonstrated by firms sponsoring local events and donating to local charities.
Source:
Introduction to Business,(2006) by Jeff Madura (4th ed.). Thomson.
a common problem is that product may be overpriced because the salesperson is more interested in making a higher commission (rather than saving the customer money). Salespeople may also be inclined to withhold information just to make the sale.
Responsibility to Customers
Firms have a social responsibility to ensure that their products, services, and actions affect society in a beneficial way.
Responsibility to Employees
Employee safety can be improved upon by closely monitoring the production process to provide a safe working environment. Equal opportunity for all prospective employees regardless of their national origin, race, gender, or religion.
Responsibility to Stockholders
In an effort to ensure responsibility to stockholders, employee decisions are monitored to determine that they are made in the best interests of the owners (i.e., maximizing the firm’s value).
Responsibility to Creditors
Firms must meet their financial obligations to their creditors, those who have provided loans to the firm. Firms violate their responsibility to creditors when they provide misleading financial information about their financial condition.
Responsibility to the Environment
To prevent air pollution, firms have implemented changes in their production processes in order to minimize airborne emissions. As a result of the production techniques used by certain firms, nearby land has been polluted by toxic waste.
Responsibility to the Community
This is demonstrated by firms sponsoring local events and donating to local charities.
Source:
Introduction to Business,(2006) by Jeff Madura (4th ed.). Thomson.
Motives and Functions of Business
A business (or firm) is an organization that provides products or services that customers desire. This topic describes the goal of a business, the resources available to a business, key business functions, and the business environment.
The goal of a business is to provide a product or service that is desired by customers, enabling it to make a profit. The difference between the revenue and expenses is the profit. Profit depends on the demand for the product or service, the ability to attract customers (competitiveness), and keeping expenses low. A nonprofit organization serves a specific cause and is not intended to make profits, but is run like a business.
Key Stakeholders in a Business
A. Owners:
B. Creditors
C. Employees
D. Suppliers
E. Customers
F. Interaction among Stakeholders
Source:
Introduction to Business,(2006) by Jeff Madura (4th ed.). Thomson.
The goal of a business is to provide a product or service that is desired by customers, enabling it to make a profit. The difference between the revenue and expenses is the profit. Profit depends on the demand for the product or service, the ability to attract customers (competitiveness), and keeping expenses low. A nonprofit organization serves a specific cause and is not intended to make profits, but is run like a business.
Key Stakeholders in a Business
A. Owners:
B. Creditors
C. Employees
D. Suppliers
E. Customers
F. Interaction among Stakeholders
Source:
Introduction to Business,(2006) by Jeff Madura (4th ed.). Thomson.
Strategic Management
Strategic planning is the process of developing a mission and long-range objectives and determining in advance how they will be accomplished. Operational planning is the process of setting short-range objectives and determining in advance how they will be accomplished. The difference between strategic planning and operational planning are primarily the time frame and management level involved. Long-term generally means that it will take longer than one year to achieve the objective. Operational plans have short-term objectives that will be met in one year or less.
The steps in the strategic planning process are (1) developing the mission, (2) analyzing the environment, (3) setting objectives, (4) developing strategies, and (5) implementing and controlling strategies.
A strategy is a plan for pursuing a mission and achieving objectives. The three strategic levels are corporate, business, and functional. The corporate-level strategy is the plan for managing multiple lines of businesses. The business-level strategy is the plan for managing one line of business. The functional-level strategy is the plan for managing one area of the business.
References:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
The steps in the strategic planning process are (1) developing the mission, (2) analyzing the environment, (3) setting objectives, (4) developing strategies, and (5) implementing and controlling strategies.
A strategy is a plan for pursuing a mission and achieving objectives. The three strategic levels are corporate, business, and functional. The corporate-level strategy is the plan for managing multiple lines of businesses. The business-level strategy is the plan for managing one line of business. The functional-level strategy is the plan for managing one area of the business.
References:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
Problem Solving & Decision Making
When your objectives are not being met, you have a problem. A problem exists whenever objectives are not being met. Problem solving is the process of taking corrective action in order to meet objectives. Decision-making is the process of selecting a course of action that will solve a problem. Decisions must be made when you are faced with a problem.All managers perform the same four functions: planning, organizing, leading, and controlling. While performing these functions, managers must make decisions.
The decision-making model is a six-step process for arriving at a decision and involves (1) classifying and defining the problem or opportunity, (2) setting objectives and criteria, (3) generating creative and innovative alternatives, (4) analyzing alternatives and selecting the most feasible, (5) planning and implementing the decision, and (6) controlling the decision.
References:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
The decision-making model is a six-step process for arriving at a decision and involves (1) classifying and defining the problem or opportunity, (2) setting objectives and criteria, (3) generating creative and innovative alternatives, (4) analyzing alternatives and selecting the most feasible, (5) planning and implementing the decision, and (6) controlling the decision.
References:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
Managing
The study of management also helps you to communicate with and interact with people every day, make personal plans and decisions, set goals, and prioritize.
There are three levels of management: top, middle, and first-line managers. The three levels relate to each other as described below.
Ten roles managers play
Managers have a set of distinct roles. A role is a set of expectations of how one will behave in a given situation. Henry Mintzberg identified ten roles that managers embody as they accomplish management functions. They are: figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, and negotiator.
The four management functions are: Planning, Organizing, Leading and Controlling.
Reference:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
There are three levels of management: top, middle, and first-line managers. The three levels relate to each other as described below.
Ten roles managers play
Managers have a set of distinct roles. A role is a set of expectations of how one will behave in a given situation. Henry Mintzberg identified ten roles that managers embody as they accomplish management functions. They are: figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator, and negotiator.
The four management functions are: Planning, Organizing, Leading and Controlling.
Reference:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
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