MGMT 150

Unit 1: Introduction to Organization and Management

1) Organization
- People: Make decisions to set up these goals and purpose and they strive to
achive them.
- Structure: Organization develop a systematic structure that defines and limits the
behaviors of its members.
- Goals: The purpose of an organization is expressed in terms of a goal or set of
goals.
2) What is management?
- Management is the process of coordinating work activities that completed
efficiently and effectively with and through other people.
 Efficiency: Doing things right: Getting the most output for the least inputs
 Effectiveness: Doing the right things: Attaining organizational goals
3) Who are managers?
* Excellent managers:
 Peter Drunker
 Jack Welch
 Bill Gates
 Philip Kotler
- Emloyee is the person work directly on a job or task and had no subordinates.
- Manager is the person can coordinate and oversees the work of other people and
organization to the goals.
* 3 levels of manager
Top: President (CEO, GM, Chair)
Middle: (Head of HR, Marketing, …)
  Faculty: Dean and Vice Dean
 Centre
 Department: Head
First-line: Head of division and Team leader (Supervisor)
4) What do the managers do?
4.1 Management functions
Planning  Organizing  Leading  Controlling
- Planning: defining goals, establishing strategy, and developing plans to
coordinate activities.
- Organizing: Determining what needs to be done, how it will be done, and who is
to do it.
- Leading: Motivating leading and any other actions involved in dealing with
people.
- Controlling: Monitoring activities to ensure that they are accomplished as
planned.
4.2 Management skills
- Technical: Deal with things
 Proficient to a specific type of work
 Ability to work with things
 Based on specific knowledge
 Necessary at lower/middle management
 Less used by upper/senior management
- Human: Deal with people
 Ability to work with people
 Openess to inputs to others
 Adapt ideas based on input
 Create atmosphere of trust
 Important at all the three levels
- Conceptual: Deal with ideas
 Ability to work with ideas and concepts
 Strategic plans and setting direction
 Cognitive, business and strategic skills
 Most important for top managers
 Necessary skill to climb the career ladders
4.3 Management roles
 Interpersonal roles: Figurehead, leader, liasion
 Information roles: Monitor, disseminator, spokesperson
 Decisional roles: Entreperneur, disturbance handler, resource allocator,
negotiator
 Unit 2: Organization behaviors, culture and environment
* Internal environment:
A. Resource: Overall
1. Marketing
2. Finance
3. R&D
4. Operations
5. Human resource
6. Information Systems
B. Organizational Culture
C. Organizational Structure
 Identify the Strengths and Weakness of organization
1) Organizational Behaviour
- Behaviour refers to what people do in organization, that their attitudes are, how
they perform.
- Organizational Behaviour is concerned with the study of the behaviour if the
poepl within an organizational setting. It involves the understanding, prediction
and the control of human behaviour.
- Organizational behaviour focuses on three levels of behaviour in organization:
1. Individuals – learning, attitude development and perception, motivation.
2. Group – group structure and processes, interperonal communication and
conflict.
3. The larger organizational environment – leadership, power, organizational
structure, work design and change processes.
* Why study organizational behaviour?
- The main reason is that most of us work in orgnaizations so we need to
understand, predict and influence (UIP) the behaviour of others in organizational
settings.
- Marketing students learn marketing concepts and computer science students learn
about circuitry and software code. But everyone needs organizational behaviour
knowledge to address the people issues that we face when trying to apply
marketing, computer and other ideas.
2) Organizational Culture
- Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations.
- Seven primary characteristics:
 Innovation: Experimenting, opportunity seeking, risk taking, few rules, low
cautiousness
 Stability: Predictability, security, rule-oriented
 Respect for people: Fairness, tolerance
 Outcome orientation: Action oriented, high expectations, results oriented
 Attention to detail: Precise, analytic
 Team orinetation: Collaboration, people-oriented
 Aggressiveness: Competitive, low emphasis on social responsibility
* How a culture begins
- Ultimate source of an organization’s culture is its founders.
- Founders have vision of what the organization should be.
- Unconstrained by previous ideologies or customs.
- New organizations are typically small; facilitates the founders’ imparting of their
vision on all organizational members.
* Culture creation occurs in three ways:
 Founders hire employees who feel the way they do.
 Employees are indoctrinated and socialized into the founders’ way of
thinking.
 Founders’ behaviors act as role models.
- Sustain through selection: The explicit goal of the selection process is to identify
and hire individuals with the knowledge, skills, and abilities to perform
successfully.
- Top management: The actions of top management also have a major impact on
the organization’s culture.
- Culture is transmitted to employees through:
 Stories
 Rituals
 Material symbols
 Language
3) National culture
- National culture: is a system of values and norms that are shared among a group
of people and that what taken together constitute a design for living there.
+ Values are abstract ideas about what a group believes to be good, right and
desirable
+ Norms are the socail rules and guidelines that prescribe appropriate bahavior in
particular situations
+ Society refers to a group of people who share a common set of values and norms.
- Values:
+ Basic convictions that people have
 Right and wrong
 Good and bad
 Important and unimportant
+ Learned from the culture in which the individuals is reared
+ Influence one’s behavior
- Differences in cultural values may result in varying management practices
4) The External Environment
a. Specific environment
* Substitutes:
- Types of substitutes:
 Product for product substitution
 Sibtitution of needs
* Suppliers
- Suppliers provide the raw materials the organization uses to produce its output.
* Customers
* Competitors
- Other organizations in the same industry or type of business that provide goods or
services to the same set of customers.
* New entrants
- Firms are not in the industry but could easily overcome entry barriers.
- Barriers ro entry are facroes that need to be overcome by new entrants if they are
to compete succesfully.
* SWOT Ananlysis
- SWOT is an analysis of the Strengths and Weaknesses present internally in the
organization, coupled with the Opportunities and Threats that the organization
faces externally.
- A SWOT analysis should enable you to make strategic decisions by considering:
♦ internal strengths and weaknesses
♦ external opportunities and threats.
b. General environment
- Components of the General (Macro) Environment (PEST analysis)
 Political/Legal trends
 Economic trends
  Socio-cultural trends
 Technological trends
- The purpose of External Analysis (PEST): to understand what may affect the
future of the enterprise as a whole from outside itself.
 UNIT 3: MANAGERIAL DECISION MAKING &
PLANNING
* Problem solving vs Decision making
- Problem solving is a set of activities designed to analyze a situatuon
systematically and generate, implement, and evaluate solutions.
- Decision making is a mechanism for making choices at each step of the problem-
solving process.
- Decision macking is part of problem solving, and decision making occurs at
every step of the problem-solving process.
* 4 steps of solving a problem
Step 1: Identify the problem
1. Identifying a problem
- A problem becomes a problem when a manager becomes aware of it.
- There pressure to solve the problem
- The manager must have the authority, information, or resources needed to solve
the problem.
2. Identifying decision criteria
- Costs that will be incurred (invesments required)
- Risks likely to be encourtered (chance of failure)
- Outcomes that are derised (growth of the firm)
3. Allocating weights to the criteria
- Assigning a weight to each item places the items in the correct priority order of
their importance in the decision-making process.
Step 2: Generate alternative solutions
4. Developing alternatives
Step 3: Evaluate and choose an alternative
5. Ananlyzing alternatives
6. Selecting an alternative
Step 4: Implement and monitor the chosen solution
7. Implementing the alternative
8. Evaluating decision effectiveness
* Planning
Outline
1) Goals and plans in organization
- Planning means determining the organization’s goals and defining the means for
achieving them.
a. Definition of goals and plans
- A goal is a desired future statement that the organization attempts to realize.
- A plan is a blueprint for goal achievement: it specifies the necessary resource
allocations, schedules, tasks and other actions.
* Organizational misson
- The mission decribes the organization’s value, aspirations and reason for being-
the organization’s reason for existence.
- A well-defined mission:
+ The basis for development of all subsequent goals and plans
+ A clear mission
+ Short and straightforward
+ Describing basic business activities and purposes as well as the values that guide
the organization
b. Types of goals and plans
* Types of Goals
- Strategic goals: Broad statements decribing where the organization wants to be in
the future.
- Tactical goals: The results that major divisions and departments within the
organization intend to achieve.
- Operational goals: The specific results expected from departments, work groups
and individuals.
* Types of Plans
Breadth of use Time frame Specificity Frequency of use
Long term
Stragetic Direcional Single use
(Beyond 5 years)
Short term
Tactical Specific Standing
(Less than 1 year)
Operational Short term Specific Standing
* SMART
Specific: Your goal is direct, detail, and meaningful.
Measurable: Your goal is quantifiable to track progress or success
Attainable: Your goal is realistic and you have the tools and/or resources to attain it
Relevant: Your goal aligns with your company mission
Time-based: Your goal has a deadline
2) Planning types and models
a. Traditional approaches to planning
- Central Planning: has been done entirely by top executives, consulting firms or
most commonly, by central planning departments.
b. Modern approaches to planning
- Decentralized Planning: assigned to major departments and divisions to help
managers develop their own stragetic plan.
- Management by objectives (MBO): is a method whereby managers and
employees define goals foe every department, project and person, and use them to
monitor subsequent performance.
Step 1: Set goals
- Corporate strategic goals
- Department goals
- Individual goals
Step 2: Develop action plan
Step 3: Implementation
Step 4: Review progress
- Review progress
- Take corrective action
 Feedback
Step 5: Appraise overall performance
 UNIT 4: ORGANIZING
I, Organizational structure
- The formal arrangement of jobs within an organization
* Six key questions for Organizational Structure
 To what degree are tasks subdivided into separate jobs? – Work
specialization
 On what basis will jobs be grouped together? – Departmentalization
 To whom do individuals & groups report? – Chain of command
 How many individuals can a manager efficiently and effectively handle? –
Span of control
 Where does decision-making authority lie? – Centralization and
decentralization
 To what degree will there be rules and regulations to direct employees and
managers? – Formalization
1. Work specialization
- Sometimes called division of labor, is the degree to which organizational tasks
are subdivided into separate jobs.
- The rationale for specialization
 Necessary in every organization because the “job” of most organizations is
too large for one
 A worker learning one specific, highly specialized task, can learn it quickly
and perform it efficiently
 A worker repeating the same job does not lose time changing operations
 The more specialized the job:
+ The easier it is to design specialized equipment
+ The easier the job training
2. Departmentalization
2.1. Functional approach
2.2. Divisional approach
- Geographical departmentalization
- Product departmentalization
- Process departmentalization
- Customer departmentalization
2.3. Cross-functional approach
- Consist of employees from various functional departments who are responsible
for meetings as a team and resolving mutual problems.
3. Chain of command
- The chain of command is the continuous line of authority that extends from the
upper levels to the lowest levels and clarfires who report to whom.
- Staff authority
- Line authority (quyền hạn trực tiếp)
 Level of authority that entitles manager to direct the work of an employee
 Contributes directly to the achievement of organizational objectives
4. Span of control
- The number of subordiantes a manager can efficienly and effectively direct.
- Width of span is affected by:
 Skills and abilities of the manager
 Employee characteristics
 Physical proximity of subordinates
 Standardization of tasks
 Supporting by technology
 Leadership style
5. Centralization and decentralization
- Centralized decision making:
+ Decision-making is concentrated at a single point in the organizations
+ Top managers make all the decisions and lower-level employees simply carry out
those orders
- Decentralized decision making:
+ Decision-making is pushed down to the managers who are closest to the action
+ Increasing the decision-making authority (power) of employees- Employee
Empowerment
6. Formalization
- High formalization means employees have little discretion
- Low formalization means employees have more freedom.
II, Organizational design
1. Mechanistic and organic organization
 UNIT 5: LEADING
Leading consists of motivating employees and influencing their behavior to
achieve organizational objectives.
I, Understanding and managing individual differences at work
* Demographic Diversity
- Difference in background factors shape worker attitudes and behaviors
+ Key sources of diversity include gender, age, race, ethic, physical disability
+ Advantage of understanding diversity:
 Capitalizing on differences
 Avoiding negative stereotyping
* Sex and Gender differences
- Sex differences are actual biological differences in males and females.
- Gender differences are based on perceptions of male and female roles.
* Personality differences
- Is the persistent and enduring behavior patterns of an individual as expressed in
wide variety of situations.
- Is regarded as the core of who a person is.
- A relatively stable set of characteristics that influences an individual’s behavior.
- Personality factors are improtant to performance on the job and performance as a
team member
- Behavior is determined (moderated) by the interactive effects of the person and
the environment.
* Consequences of individual differences
- Variations in productivity: The more complex the job, the larger the impact of
individual productivity differences on work output.
- Ability and talent: Having the right skills and abilities directly affects job
performance.
- Prioensity for achieving high-quality results: Some workers take pride and pursue
excellence in their work while others do not.
- Empowerment and involvement: Workers differ in their desires to be self-fulfilled
by and involved in their work.
- Preferred leadership style: Some workers prefer or require more supervision than
others.
- Need for contact with other people: Workers differ in their need to relate to others
on the job.
* Abilities and skills
- Ability or attitude is a stable natural talent for doing something mental or
physical.
- A skill is an acquired talent that a person develops related to a specific task.
* Values
- Basic convictions that people have
 Right and wrong
 Good and bad
 Important and unimportant
- Learned from the culture in which the individual is reared
- Influence one’s behavior
- Differences in cultural values may result in varying management practices
II, Personnality and individual behavior
* Emotions & Moods
- Emotions: Intense feelings that are directed at someone or something
- Moods: Feelings that tend to be less intense than emotions and that lack a
contextual stimulus
* Identify the Sources of emotions and moods
- Personality: There is a trait component – affect intensity
- Day and time of the week
- Weather: illusory correlation – no effect
- Stress: Even low levels of constant stress can worsen moods
- Social activities: Physical, informal and dining activities increase positive moods
- Sleep: Poor sleep quality increase negative affect
- Exercise: Does somewhat improve mood, especially for depressed people
- Age: Older folks experience fewer negative emotions
- Sex: Women tend to be more emotionally expressive, feel emotions more
intensely, have longer-lasting moods, and express emotions more frequently than
do men
* Personality and Organizations
- Emotional Intelligence (EQ): The extent to which people are self-aware, can
manage their emotions, can motivate themselves, express empathy for others and
possess social skills
- Dimensions of EQ:
 Self-awareness
 Managing emotions
 Motivating oneself
 Empathy
 Social skills
III, Motivating employees
1) What is motivation ?
- Motivation refers to the processes that account for an individual’s willingness to
exert high levels of effort to reach organizational goals, conditioned by the effort’s
ability to satisfy some individual need.
* Science of motivation
- Extrinsic Motivation
+ Rewards
+ Punishment
- Intrinsic Motivation
+ Autonomy – The desire to direct our own lives
+ Mastery – The urge to make progress and get better at something that matters
+ Purpose – The yearning to do what we do in service of something larger than
ourselves
2) Early theories of motivation
a. Maslow’s hierarchy of needs theory
 Physiological: Food, drink, shelter, …
 Safety: Physical, emotional, …
 Social: Affection, belongingness, …
 Esteem: Self-respect, autonomy (internal); status, attention (external), …
 Self-actualisation: Growth, achievement, …
- Needs were categorized as five levels of lower-to higher-order needs.
+ Individuals must satisfy lower-order needs before they can satisfy higher order
needs.
+ Satisfied needs will no longer motivate.0
+ Motivating a person depends on knowing at what level that person is on the
hierarchy.
- Hierarchy of needs
+ Lower-order (external): Physiological, safety
+ Higher-order (internal): social, esteem, self-actualization
b. Two factor theory
 Motivators Hygiene Factors
These factors address issues that can
lead to dissatisfaction. While getting
These can lead to greater employee
them right doesn’t necessarily mean a
satisfaction. When present in the
worker will love their job, getting them
workplace, they often result in better
wrong does mean that employees will
employee performance
probably be frustrated and, as a result,
less engaged

• Rectify petty and bureaucratic

company policies.
• Ensure each team member feels
• Job Enrichment
supported without feeling
giving them more challenging or
micromanaged.
complex tasks to perform. It should
• Ensure the day to day working culture
make the job more interesting.
is supportive. No bullying. No cliques.
• Job Enlargement
Everyone treated with equal respect.
giving a team member a greater variety
• Ensure that salaries are competitive
of tasks to perform. This variety can
within the industry. Ensure there are no
also make a job more interesting.
major salary disparities between
• Employee Empowerment
employees doing similar jobs.
deligating increasing responsibility to
• To increase job satisfaction and
each team member.
status, aim to construct jobs in such a
way that each team member finds their
job meaningful.

c. ERG theory – Clayton Alderfer

* Three categories of needs
- Existence needs: These are the needs for physical wellbeing
- Relatedness needs: These relate to the need for satisfactory relationships with
others.
- Growth needs: These focus on the development of human potential and the
desire for personal growth and increased competence.
d. Acquired needs theory – David Mcclelland
- Implications studied by McClelland for management:
+ People with a high need for achievement to tend to be entrepreneurs. They like
to do something better than competitors and take sensible business risks.
+ People who have a high need for affiliation are successful ‘integrators’, whose
job is to coordinate the work of several departments in an organization
+ A high need for power often is associated with successful attainment of top
levels in the organizational hierarchy.
* Summary
- Maslow: Enjoys wide recognition among practising managers. Most managers
are familiar with it.
- Herzberg: The popularity of giving workers greater responsibility for planning
and controlling their work can be attributed to his findings. Shows that more than
one need may operate at the same time.
- Alderfer: Seen as a more valid version of the need hierarchy. Tells us that
achievers will be motivated by jobs that offer personal responsibility, feedback,
and moderate risks.
- McClelland: Tells us that high need achievers do not necessarily make good
managers, since high achievers are more interested in how they do personally.
 UNIT 6: CONTROLLING
I, What is control?
- Control is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting any significant deviations.
- Purpose of controlling: ensures that activities are completed in ways that lead to
the attainment of the organizational goals.
II, The control process
1. Meansuring
2. Comparing
- The comparing step determines the degree of variation between actual
performance and the standard
- Acceptable range of variation: Khoảng dao động chấp nhận được (+-3%)
3. Taking managerial action
* To correct deviations or inadequate standards
- Immediate corrective action: Correcting a problem at once to get performance
back on track
- Basic corrective action: Determining how and why performance has deviated and
then correcting the source of deviation
- Revising the standard: Adjusting the performance standard to reflect current and
predicted future performance capabilities
III, Tools for controlling organizational performance
- Feed-forward control: Control that prevents anticipated problems
- Concurrent control: Control that takes place while an activity is in progress
- Feedback control: Control that takes place after an action
 Provides evidence of planning effectiveness
 Provides motivational information to employees