CHAPTER 1:

Takeaway 1:

There are 6 elements are critically considered across industries: talent, technology, globalization,
ethics, diversity and careers

Talent: human resource is one of the advantages that every company want to achieve. Talented
people are able to deliver efficient outcomes in competing with rivals.

- Intellectual capital equation: Intellectual Capital = Competency x Commitment.

Competency is your advantage, your ability or talent that needed for your job

Commitment is your willingness to work hard, to apply them to your tasks.

 Both are required to meet career needs and performance requirements.

Knowledge workers: persons whose minds are critical assets. It relates to the knowledge, the information
you acquire and your mindset.

Technology:

- Tech IQ: your ability to use technology in all your life aspects and stay informed on the latest
technological developments. High TechIQ is important, because it helps adapting quickly to new
innovations.
- Ex: LinkedIn.com as online career sites used by job hunters and employers. Filling your online
profile with the right key words. Employers use special software to scan online profiles for
indicators of real job skills and experiences that fit their needs.

Globalization: indicates worldwide interdependence of resource flows, product markets, and business
competition that characterizes our economy.

- Job migration, the shifting of jobs from one country to another.

Ethics: set of moral standards for what behavior is right and what is wrong. It depends on individual
being responsible for conducting right ethical business at all levels. Leaders are supposed to conduct
things right so that their followers can follow.

Diversity: a group of workers or a workforce that have differences in gender, age, race, ethnicity,
religion, sexual orientation, and ablebodiedness. Since society is diverse, the way we deal with diversity
in the workplace is an issue. Some major problems are:

- Prejudice: the holding of negative, irrational opinions and attitudes regarding members of
diverse populations.
- Discrimination: minority members are unfairly treated and denied the full benefits of
organizational membership.
 - Glass ceiling effect: an invisible barrier that prevents women and minorities from rising above a
certain level regarding organizational responsibility.

Careers:

- Shamrock organization is a core group of permanent, full-time employees, freelancers and part-
time staff.
- Free- agent economy: you can change jobs often and work on flexible contracts with a mix of
employers over time.
- Self-management: realistically assess yourself, make constructive changes, and manage your
personal development.

Takeaway 2:

An organization is a collection of people working together to achieve a common purpose. Its members
perform tasks not only for their accomplishment but also for the final goal of the organization.

Organization as an open system that interact with their environments: Obtaining resource inputs—
people, information, resources, and capital—and transforming them into outputs in the form of finished
goods and services for customers.

- Productivity: measures the quantity and quality of outputs relative to the cost of inputs.
- Performance effectiveness is an output measure of task or goal accomplishment.
- Performance efficiency is an input measure of the resource costs against goal accomplishment.

There are changes in organizations:

- Focus on valuing human capital: work settings that create the knowledge, experience, and
commitment of all members.
- Demise of “command-and-control”: instead of “do as I say”, managers treat people with respect.
- Emphasis on teamwork: Organizations are driven by teamwork that consists of talents for creative
problem solving.
- Preeminence of technology: New developments change the way organizations operate and how
people work.
- Importance of networking: members are networked for intense, real-time communication and
coordination.
- New workforce expectations: A new generation is less tolerant of hierarchy, more informal,
attentive to performance merit, and concerned for work–life balance.
- Priorities on sustainability: more attention to natural resources and understanding how work
affects human well-being.

Takeaway 3:

Manager: supports, supervises, and helps motivate the work efforts and performance accomplishments of
staff, followers, team members.

If classifying by levels, we have 4 levels of managers.

 - Board of directors whose members are elected by stockholders to represent their ownership
interests. The basic responsibilities of board members is to make sure that the organization is
always being run right
- Top managers are an executive team that reports to the board and is responsible for the
performance of an organization as a whole.
- Middle managers are in charge of relatively large departments consisting of several smaller
work units.
- Team leader is in charge of a small work group composed of nonmanagerial staff.

If classifying by levels, we have 4 types of managers.

- Line managers are responsible for work that makes a direct contribution to the organization’s
outputs.
- Staff managers use technical expertise to advise and support line workers.
- Functional managers have responsibility for a single area of activity such as finance, marketing,
production, human resources, accounting, or sales.
- General managers are responsible for activities covering many functional areas.
- Administrators are used in non-profit org.

Managerial Performance

- Accountability is the requirement of one person to answer to a higher authority for performance
results in his or her area of work responsibility.
- Quality of work life (QWL) indicating the quality of staff experience with their job.

Changing Nature of Managerial Work

The concept of the upside-down pyramid fits with the changing mindset of managerial today.

Takeaway 4: these are the 4 basic functions of a manager

- Planning: is the process of setting performance objectives and determining what actions should
be taken to accomplish them. Through planning, a manager identifies desired results and ways to
achieve them.
- Organizing: Once plans are set, they must be implemented. The process of assigning tasks,
allocating resources, and coordinating the activities to accomplish plans.
- Leading: is the process of arousing people’s enthusiasm and motivating their efforts to work
hard to accomplish objectives. Managers build commitments, encourage activities and
influencing others to do their work.
- Controlling: is the process of measuring performance, comparing results to objectives, and
taking corrective action as needed. Managers control by staying in contact with people as they
work, gathering and interpreting measurements and make constructive changes.

Managerial Roles

Mintzberg identified a set of 10 roles commonly filled by managers:

- Interpersonal roles involve interactions with people inside and outside of org.
 - A manager’s informational roles involve the giving, receiving, and analyzing of information.
- The decisional roles involve using information to make decisions to solve problems or address
opportunities.

There are Essential Skills for a manager

- Technical Skills: the ability to use a special proficiency or expertise to perform particular tasks.
Technical skills are very important at job entry and early career levels.
- Human and Interpersonal Skills: the ability to work well in cooperation with others.
o Emotional intelligence: how well you recognize, understand, and manage feelings while
interacting and dealing with others.
- Conceptual and Analytical Skills: the capacity to break problems into parts, see the relations
between the parts, and recognize the implications of each problem for others. Conceptual skills
are important in high levels of management.

CHAPTER 2
1. Classical management approaches
a. Scientific management
b. Administrative principles
c. Bureaucratic organization
2. Behavioral Management Approaches
a. Follett’s organizations as communities
b. The Hawthorne studies
c. Maslow’s theory of human needs
d. McGregor’s Theory X and Theory Y
e. Argyris’s theory of adult personality
3. Modern Management Foundations
a. Quantitative analysis and tools
b. Organization as systems
c. Contingency thinking
d. Quality management
e. Knowledge management and organizational learning
f. Evidence-based management
CLASSICAL MANAGEMENT APPROACHES: assumes that people are rational in taking opportunities to
achieve personal and monetary gain
I. Sciencetific management: emphasizes careful selection and training of workers and supervisory
support.
It comes with 4 guiding principles:
- A “science” that includes rules of motion, standardized work implements, and proper working
conditions.
- Carefully selection of workers with the right abilities.
- Carefully training workers to do the job and proper incentives to cooperate with job “science.”
- Supporting workers by planning and by smoothing the jobs.
Motion study means reducing a task to its basic physical motions. It is encourage that wasted activities
in a task should be eliminated in order to improve efficiency
Insights from scientific management approach:
- Advances of job design,
- Work standards, and incentive wage plans.
II. Administrative Principles
Fayol identifies the five “rules” of management:
1. Foresight—to complete a plan for the future
2. Organization—to provide and allocate resources to implement the plan
3. Command—to lead and evaluate workers to get the best work
4. Coordination—to fit diverse efforts and to ensure information is shared and problems are solved
5. Control—to make sure things happen according to plan and to take necessary corrective action
 The foundation for the 4 functions of management
Principles to guide managers including:
- Scalar chain principle—a clear and unbroken line of communication from the top to the bottom
in the organization. So that information can be shared and transparency of a business is secured
- Unity of command principle—each person should receive orders from only one boss in order to
avoid confusion and power overlapping
- Unity of direction principle—one person should be in charge of all activities that have the same
performance objective
III. Bureaucratic Organization: a rational and efficient form of organization founded on logic, order,
and legitimate authority. His ideas developed after noticing organizations performed poorly since
people holding positions of authority not because of their capabilities, but because of their
“privileged” social status. So according to Weber’s approach, people with ability will take authority
and be in charge. A whole organization will be run based on a hierarchy structure where managers
give out order to their lower level and then it is passed on to the subordinates.
The characteristics of bureaucratic organization are:
- Clear division of labor: Jobs are well defined, and workers become highly skilled at performing
them
- Clear hierarchy of authority: Authority and responsibility are well defined for each position, and
employees know who they report to
- Formal rules and procedures: established written guidelines and written files are kept for
historical record
- Impersonality: Rules and procedures are impartially and uniformly applied, with no one
receiving special treatment
- Careers based on merit: Workers are selected and promoted on ability, competency, and
performance
BEHAVIORAL MANAGEMENT APPROACHES: assume that people are social and self-actualizing,
responding to group pressures, and searching for personal fulfillment.
- Follett’s notion of organizations as communities
- The Hawthorne studies
- Maslow’s theory of human needs
 - Douglas McGregor
- Chris Argyris
I. Follett’s Organizations as Communities
Organizations as “communities”: managers and workers labor in harmony without one party dominating
the other, and with the freedom reconcile conflicts and differences, the respect for the experience and
knowledge of workers, warned against the dangers of too much hierarchy
Based on Follet’s study, there are insights that are still helpful:
- Emphasis on employee ownership in order to enhance their commitment
- Business problems involve a variety of factors that are in relationship to one another
- And private profits should always be considered vis-à-vis the public good: ethics and CSR
II. The Hawthorne Studies: people’s feelings, attitudes, and relationships with coworkers affected their
work, and that groups were important influences on individuals
Social setting and human relation affect productivity: pleasant social interactions with one another and
received special attention that made employees feel important
Members would restrict their output to avoid the displeasure of the group -> groups have strong
negative/ positive influences on individual productivity
Hawthorne effect: the tendency of people who are singled out for special attention to perform as
anticipated because of expectations created by the situation
III. Maslow’s Theory of Human Needs
Maslow’s theory is based on two underlying principles:
- Deficit principle—a satisfied need is not a motivator of behavior. It means people act to satisfy
“desired” needs, a deficit
- Progression principle—a need at any level is activated only when the next-lower-level need is
satisfied
IV. McGregor’s Theory X and Theory Y
managers holding Theory X assumes that those who work for them generally dislike work, lack ambition,
are irresponsible, are resistant to change, and prefer to be led rather than to lead
Theory Y assumes that manager believes people are willing to work, capable of self-control, willing to
accept responsibility, imaginative and creative, and capable of self-direction
V. Argyris’s Theory of Adult Personality
Managers who treat people positively and as responsible adults will achieve the highest productivity.
Theory is contradict to the classical management approaches:
- In scientific management, people will work more efficiently as tasks become simpler and better
defined. Argyris believes that this limits opportunities for self-actualization
- In Weber’s bureaucracy, people work in a clear hierarchy of authority. Argyris worries that this
creates dependent, passive workers
- In Fayol’s administrative principles, the concept of unity of direction assumes that efficiency will
increase when a person’s work is planned and directed by a supervisor. Argyris suggests that this
creates conditions for psychological failure.
MODERN MANAGEMENT FOUNDATIONS
I. Quantitative Analysis and Tools
Managers mine data in order to make decisions --> analytics: the systematic analysis of large databases
to solve problems and make informed decisions.

Organizations as Systems

One company achieves great things by combining resources and the contributions of many individuals to
achieve a common purpose.

Subsystems are formed which are interrelated to each other

 High performance occurs only when each subsystem both performs its tasks well and works well
in cooperation with others

II. Contingency Thinking

Contingency thinking matches responses with problems and opportunities specific to different people
and settings

 The contingency perspective tries to help managers understand situational differences and
respond to them in ways that fit their characteristics.

III. Quality Management

TQM makes quality principles part of the organization’s strategic objectives, applying them to all aspects
of operations. TQM approaches begin with the total quality commitment applies to every subsystem in
an organization

 Measure and control the quality of the whole open system from the inputs to outputs as well as
the feedback which contributes to the improvement of input resources

Continuous improvement: always looking for new ways to improve on current performance.

ISO certification is a global quality benchmark that businesses want to achieve in order to define their
quality level

IV. Knowledge Management and Organizational Learning

Knowledge management describes the processes through which organizations use information
technology to develop, organize, and share knowledge to achieve performance success

Intellectual assets such as patent, intellectual property rights, trade secrets, etc. need to be well
managed and continually enhanced
A learning organization is the one that people, values, and systems continuously change and improve its
performance based upon experience

 Help all members to learn through information sharing, teamwork, empowerment, and
participation.

V. Evidence-Based Management

Evidence-based management means making management decisions based on what really works rather
than on things that sound good but lack of empirical proof.

Four sources of information:

- Practitioner expertise and judgment: knowledge and past experience

- Evidence from the local context
- Critical evaluation of the best available evidence
- Perspectives of those people who might be affected by the decision