What is the most useful management theory?
Expectancy theory
What is the equation of motivation?
M = E x i x V
What does E stand for?
Expectancy
- How effort results in performance
What does m stand for?
Motivation
What does V stand for?
Valence
- How desirable each of the available outcomes from the job is to the person
What does the i stand for?
Instrumentality
- A person’s perception about if performance relates with attainment of outcomes
What does SMART stand for?
Specific Measurable Assignable Realistic Time Related
What is organizational control?
When managers monitor and regulate how efficiently and effectively an organization and its members are performing to achieve goals
What is a Management by Objectives (MBO) strategy?
- a goal setting process that managers set
- periodically evaluate the extent to which the subordinates are achieving these goals
What are the activities that managers engage in to attract and retain employees and to ensure that they perform at a high level?
Human Resource Management (HRM)
What are the components of a human resource management system? (steps)
1) job design
2) recruiting and selection
3) training/development
4) performance management
5) workforce management
What is the most effective way of interviewing someone?
Situation-based interview
- Gives you a situation and expects you to figure out how to deal with it
What is the behavior that is performed for its own sake?
Intrinsically Motivated Behavior
What is the behavior that is performed to acquire material or social rewards or to avoid punishment?
Extrinsically Motivated Behavior
What is the behavior performed to benefit or help others?
Prosocially motivated behavior
What is the theory of motivation that focuses on people’s perceptions of fairness of work?
Equity Theory
A person’s perception of the fairness of the distribution of outcomes in an organization
Distributive justice
A person’s perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization
Procedural justice
A person’s perception of the fairness of the interpersonal treatment he or she receives from whoever they interact with
Interpersonal justice
A person’s perception of the extent to which his or her manager provides explanations for decisions and the procedures used to arrive at them
Informational justice
What is efficiency?
Utilizing resources to their full potential
What is effectiveness?
How well they are achieving the mission
What are control systems?
Formal, target-setting, monitoring, evaluation and feedback systems
- Provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively
What is the problem with feedback control?
It’s already occurred – wasted time, product, etc.
What are the three types of control?
Feedforward control - allows anticipation of problems before they arise, gives product specifications to suppliers in advance Concurrent control - manage problems as they occur Feedback control - manage problems after they arise
Feedforward control
- Allows managers to anticipate problems before they arise
- Gives product specifications to suppliers in advance
Concurrent control
- Gives managers immediate feedback on how efficiently inputs are being transformed into outputs
- managers can correct problems as they arise
Feedback control
- Gives managers information about customers’ reactions to goods and services
- Corrective action can be taken if necessary
What are things that might be evaluated in feedback control if things are bad?
- There might be a problem with the leader
- Might be individual problems (ineffective employees)
- Employees might not have the resources necessary
- Wrong processes
What are profit ratios?
Measure how efficiently managers are using the organization’s resources to generate profits
What are returns on investments (ROI’s)?
- Organization’s net income before taxes divided by its total assets
- Most commonly used financial performance measure
What are operating margins?
- calculated by dividing a companies operating profit by sales revenue
- Provides managers with information about how efficiently an organization is utilizing resources
What are days sales outstanding?
Reveals how efficiently manager are collecting revenue from customers to pay expenses
What are operating budgets?
- Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently
- includes staffing plans
What are the problems with output control?
- Managers must create output standards that motivate at all levels
- Should not cause managers to behave in inappropriate ways to achieve organizational goals
What are the problems with direct supervision?
- Very expensive
- can demotivate subordinates
What is bureaucratic control?
- Control by means of a comprehensive system of rules and standard operating procedures (SOPs)
- shapes and regulates the behavior of the system
What are problems with bureaucratic control?
- Rules easier to make than discarding them
- People might stop thinking for themselves
What is organizational change?
Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
What is the MBWA (Management by walking around) strategy?
- it is an empowering approach
- replacing MBO strategy
- involvement, coaching
- get a first-hand look at the problems
Why do you not want to use bureaucracies too much?
- if you go too far, you will lose creativity