Chapter 1

Introducing Modern Management: Concepts and Skills

1.1. The Importance of Management
• Organization
• A systematic arrangement of people brought together to accomplish
some specific purpose; applies to all organizations.
• Common Characteristics of Organizations
• Distinct purpose and goals
• Systematic structure
• People
• Differences between Operatives & Managers
• Operatives: People who work directly on a job or task and have no
responsibility for overseeing the work of others.
• Managers: Individuals in an organization who direct the activities of
others
 Management plays a crucial role in the success of any organization, regardless
of its size, industry, or goals
1.2. The Management Task
1.2.1. The Role of Management
Management moves an organization toward its purposes or goals
1.2.2. Defining Management
Management is the process of reaching organizational goals by working with
and through people and other organizational resources.
- Coordinating work activities so that they are completed efficiently and
effectively with and through other people
Efficiency: getting the most output from the least input; doing the things right
Effectiveness: completing activities so that the organization’s goals are
attained; doing the right things
1.2.3. The Management Process: Management Functions
The four basic management functions—activities that make up the
management process
1.2.4. Management Process and Goal Attainment
Management Process help an organization to achieve its goals
1.2.5. Management and Organizational Resources
• Resources include:
 Human
 Monetary
 Raw materials
 Capital
1.3. The Universality of Management
Management principles are universal: apply to all types of organizations and
organizational levels
1.4. Management Skill: The Key to Management Success
1.4.1. Defining Management Skill
Management skill is the ability to carry out the process of reaching
organizational goals by working with and through people and other organizational
resources.
1.4.2. Management Skill: A Classic View
Three types of skills are important for successful management performance:
technical, human, and conceptual skills
Conceptual skills: Ability to see the organization as a whole; Ability to
understand how the organization relates to its environment
Human skills: Ability to build cooperation within the team being led
Technical skills: Ability to apply specialized knowledge and expertise to work-
related techniques and procedures
1.4.3. Management Skill: A Contemporary View
 Communication skills: effectively sharing meaning with others
Critical thinking skills: assessing situations to identify and solve problems
Creativity skills: Generating new ideas that contribute to organizational success
Collaboration skills: understanding and working within the dynamics of a
group
Personal Ethic skills: Dealing with people, problems, and situations with
honesty and integrity
Adaptability skills: working independently or as part of a team
Socially responsible skills: Contributing to the welfare of the community
1.4.4. Management Skill: A Focus of This Book
See table 1.2
1.5. Management Careers
1.5.1. A Definition of Career
Definition: A career is a sequence of work-related positions occupied by a
person over the course of a lifetime
1.5.2. Career Stages, Life Stages, and Performance
 Career Stages, Life Stages, and Performance
Exploration Stage
Establishment Stage
Maintenance Stage
Decline Stage
1.5.3. Promoting Your Own Career
Career planing
1.5.4. Special Career Issues
Women managers
Dual-career couples
1.6. Management Skill Activities
Levels of Management
 Chapter 2 Managing: History and Current Thinking
2.1. The Classical Approach
- The classical approach to management can be broken down into two distinct
areas:
+ Lower-Level Management Analysis
+ Comprehensive Analysis of Management
- Limitations of the Classical Approach
2.2. The Behavioral Approach
- The Hawthorne Studies
- Recognizing the Human Variable
- The Human Relations Movement
2.3. The Management Science Approach
- The Beginning of the Management Science Approach
- Management Science Today
- Characteristics of Management Science Applications
2.4. The Contingency Approach
The contingency approach to management emphasizes that what managers
do in practice depends on, or is contingent upon, a given set of circumstances—a
situation
The main challenges of using the contingency approach are the following:
- Perceiving organizational situations as they actually exist
- Choosing the management tactics best suited to those situations
- Competently implementing those tactics
2.5. The System Approach
The main premise of the system approach is that, to understand the operation
of an entity fully, the entity must be viewed as a system
- Closed system
 - Open system
2.6. Learning Organization: A New Approach?
A learning organization is an organization that does well in creating,
acquiring, and transferring knowledge and in modifying its behavior to reflect new
knowledge.

Chapter 3: Corporate Social Responsibility, Ethics and Sustainability

3.1. Fundamentals of Social Responsibility
- Social responsibility is the managerial obligation to take action that protects
and improves both the welfare of society as a whole and the interests of the
organization
- The area that is arguably receiving the most attention currently is the area of
ecology conservation, popularly called “going green.”; Other areas of CSR:
 urban affairs
 consumer affairs
 community volunteerism
 employment practices
- There are Varying Opinions on Social Responsibility
- Conclusions About the Performance of S.R. Activities by Business:
• Performing Required S.R. Activities
• Voluntarily Performing S.R. Activities
• Communicating the Degree of S.R. Involvement
3.2. Social Responsiveness
3.2.1. Determining whether a Social Responsibility (S.R.) Exists
3.2.2. Social Responsiveness and Decision Making
 - The socially responsive organization that is both effective and efficient meets
its social responsibilities without wasting organizational resources in the
process
- Determining exactly which social responsibilities an organization should
pursue and how to pursue them
3.2.3. Approaches to Meeting Social Responsibilities
A desirable and socially responsive approach to meeting social obligations does
the following:
1. Incorporates social goals into the annual planning process.
2. Seeks comparative industry norms for social programs.
3. Presents reports to organization members, the board of directors, and
stockholders on social responsibility progress.
4. Experiments with different approaches for measuring social performance.
5. Attempts to measure the cost of social programs as well as the return on
social program investments.
3.3. Social Responsibility Activities and Management Functions
3.3.1. Planning Social Responsibility (S.R.) Activities
• The Overall Planning Process
3.3.2. Organizing Social Responsibility (S.R.) Activities
3.2.3. Influencing Individuals Performing S.R. Activities
3.3. 4. Controlling S.R. Activities
• Areas of Measurement
1. The economic function area
2. The quality-of-life area
3. The social investment area
4. The problem-solving area
• The Social Audit: A Progress Report
 3.4. Business Ethics
3.4.1. A Definition of Ethics
- the capacity to reflect on values in the corporate decision making process, to
determine how these values and decisions affect various stakeholder groups, and to
establish how managers can use these observations in day-to-day company
management
3.4.2. Why Ethics Is a Vital Part of Management Practices
• Productivity
• Stakeholder relations
• Government regulation
3.4.3. A Code of Ethics
A code of ethics is a formal statement that acts as a guide for the ethics of how
people within a particular organization should act and make decisions
3.4.4. Creating an ethical workplace
Creating, distributing, and continually improving a company’s code of ethics is
one common step managers can take to establish an ethical workplace.
3.4.5. Following the Law: Sarbanes–Oxley Reform Standards
(There is NO exam question on Sarbanes–Oxley Reform Standards)
3.5. Sustainability
3.5.1. Defining Sustainability
Sustainability is the degree to which a person or entity can meet its present
needs without compromising the ability of other people or entities to meet needs.
3.5.2. Defining a Sustainable Organization
A sustainable organization is an organization that has the ability to meet its
present needs without compromising the ability of future generations to meet their
needs
3.5.3. Why Sustainability
• Increased profit
 • Increased productivity
• Increased innovation
3.5.4. Steps for achieving sustainability
• Set sustainability goals
• Hire expertise
• Reward employees
• Track progress
Chapter 4: Managing in the Global Arena
4.1. Managing Across the Globe: Why?
- Great opportunities in the international marketplace
4.2. Fundamentals of International Management
• International management is simply the performance of management
activities across national borders
• International management can take several different forms, from simply
analyzing and fighting competition in foreign markets to establishing a formal
partnership with a foreign company.
4.3. Categorizing Organizations by International Involvement
4.3.1. Domestic Organizations
- Domestic Organizations :organizations that essentially operate within a
single country
4.3.2. International Organizations
- International Organizations: based primarily within a single country but
have continuing, meaningful international transactions - such as making sales and
purchases of materials—in other countries.
4.3.3. Multinational Organizations: The Multinational Corporation
Defining the Multinational Corporation :- Multinational Organizations: The
Multinational Corporation: significant operations in more than one country
 - Transnational organizations: also called a global organization – transcends
any single home country, with ownership, control, and management located in many
different countries.
4.3.5. Complexities of Managing the Multinational Corporation
International management involves operating:
1. Within different national sovereignties
2. Under widely disparate economic conditions
3. Among people living within different value systems and institutions
4. In places experiencing the industrial revolution at different times
5. Often over greater geographical distance
6. In national markets varying greatly in population and area
Figure 5.5 shows some of the more important management implications of these six
variables and some of the relationships among them
4.3.6. Risk and the Multinational Corporation
1. Reduce or eliminate high transportation costs
2. Allow participation in the rapid expansion of a market abroad
3. Provide foreign technical, design, and marketing skills
4. Earn higher profits
4.3.7. The Workforce of Multinational Corporations
• Types of Organization Members Found in Multinational Corporations
 Expatriates
 Host-Country Nationals
 Third-Country Nationals
• Workforce Adjustments
 • Adjusting to a New Culture
• Repatriation
Three types of Organization Members Found in Multinational Corporations (or three
types of workers)
Expatriate—An organization member who lives and works in a country where he or
she does not have citizenship
Host-country national—An organization member who is a citizen of the country in
which the facility of a foreign-based organization is located.
Third-country national—An organization member who is a citizen of one country
and works in another country for an organization headquartered in still another
country
4.4. Management Functions and Multinational Corporations
 Planning in Multinational Corporations
Plans for multinational organizations could include:
1. Establishing a new sales force in a foreign country
2. Developing new manufacturing plants in other countries
3. Financing international expansion
4. Determining which countries are most suitable
• Components of International Plans
 Imports/Exports
 License Agreements
 Direct Investing
 Joint Ventures
• Planning and International Market Agreements
 The European Union (EU)
 North American Free Trade Agreement (NAFTA)
 Asian-Pacific Economic Cooperation (APEC)
 Organizing Multinational Corporations
 • Organization Structure
• Selection of Managers
• Managerial Attitudes Toward Foreign Operations
• Advantages and Disadvantages of Each Management Attitude
 Influencing People in Multinational Corporations
• Culture
1. Acquire a working knowledge of the languages
2. Understand the attitudes of people
3. Understand the needs that motivate people
 Controlling Multinational Corporations
• Special Difficulties
• Improving Communication
 Transnational Organizations
4.5. International Management: Special Issues
 Maintaining Ethics in International Management
• Respecting Core Human Rights
• Respecting Local Traditions
• Determining Right from Wrong by Examining Context
 Preparing Expatriates for Foreign Assignments
• Culture profiles: expatriates learn about the new culture in which they
will be working.
• Cultural adaptation: expatriates learn how to survive the difficulties of
adjusting to a new culture.
• Logistical information: expatriates learn basic information, such as
personal safety, who to call in an emergency, and how to write a check.
• Application: expatriates learn about specific organizational roles they
will perform.
Chapter 5 Planning
5.1. General Characteristics of Planning
- Definitions of planning
The systematic development of action programs aimed at reaching agreed-upon
business objectives by the process of analyzing, evaluating, and selecting
among the opportunities which are foreseen.
- Purposes of planning:
The fundamental purpose of planning is to help the organization reach its
objectives.
- Advantages and potential disadvantages of planning
- Primacy of planning
Planning is the foundation function and the first one to be performed
5.2. Steps in the Planning Process
Step 1. State organizational objectives.
Step 2. List alternative ways of reaching objectives
Step 3. Develop premises on which to base each alternative
Step 4. Choose the best alternative for reaching objectives
Step 5. Develop plans to pursue the chosen alternative
Step 6. Put the plans into action
5.3. The Planning Subsystem
The purpose of this subsystem is to increase the effectiveness of the overall
management system
5.4. Organizational objectives: Planning’s foundation
- Defining organizational objectives:
An organizational objective is a target toward which the open management
system is directed
- Pinpointing areas in which organizational objectives should be established: 8
Areas to set management system objectives:
 1. Market standing
2. Innovation
3. Productivity
4. Physical and financial resources
5. Profitability.
6. Managerial performance and development
7. Worker performance and attitude
8. Public responsibility
- Illustrating how managers work with organizational objectives:
three types of objectives:
1. Short-term objectives—targets to be achieved in one year or less
2. Intermediate-term objectives—targets to be achieved in one to five
years
3. Long-term objectives—targets to be achieved in five to seven years
an organizational objective must be broken down into subobjectives
5.5. Management by objectives
The MBO process consists of five steps:
1. Review organizational objectives
2. Set worker objectives
3. Monitor progress
4. Evaluate performance
5. Give rewards
5.6. Planning and the Chief executive
Chief executives have the final responsibility for organizational planning
As planners, chief executives seek answers to the following broad
questions:
1. In what direction should the organization be going?
2. In what direction is the organization going now?
 3. Should something be done to change this direction?
4. Is the organization continuing in an appropriate direction?
5.7. The Planner
Qualifications of Planners
Primary should have four primary qualifications:
1) Considerable practical experience within their organization
2) Know how all parts of the organization function and interrelate
3) Defining trends and posses the expertise determine how the organization
should react to those trends
4) Able to work well with others
5.8. Strategic planning
5.8.1. Fundamentals of Strategic Planning
Strategic planning is long-range planning that focuses on the organization as a
whole.
Strategy is defined as a broad and general plan developed to reach long-term
objectives.
Strategic management is the process of ensuring that an organization possesses and
benefits from the use of an appropriate organizational strategy.
5.8.2. Strategic management
5 steps of strategic managemnt process:
1. Environmental analysis
2. Establishment of an organizational direction
3. Strategy formulation
4. Strategy implementation
5. Strategic control
Tactical planning is short-range planning that emphasizes the current operations of
various parts of the organization.
 Chapter 6 Organizing
6.1. Definitions of Organizing and Organizing Skill
- Organizing is the process of establishing orderly uses for resources within
the management system
- Organizing skill: the ability to establish orderly uses for resources within the
management system
6.1.1. The Importance of Organizing
Responsibilities of an organizing department would include:
1. Reorganization plans to make management system more effective and
efficient
2. Plans to improve managerial skills to fit current management system
needs
3. An advantageous organizational climate within the management
system
6.1.2. The Organizing Process
The five main steps of the organizing process:
1. Reflect
2. Establish
3. Divide
4. Allocate
5. Evaluate
Explain with example:
In the first step, reflect on plans and objectives, the restaurant manager
reflects on the restaurant’s plans and objectives. For example, the
restaurant manager starts to organize by understanding planning.
 In the second step, establishing a major task, the manager must
designate major tasks or jobs to be done within the restaurant. For
example, serving customers and cooking food.
In the third step, divide major tasks into subtasks. For example, the
manager might decide that serving customers includes the subtasks of
taking orders and clearing tables.
In the fourth step, allocate resources and directives for subtasks, For
example, determining who will take orders, who will clear the tables,
and what the details of the relationship between these individuals will be.
In the fifth step, evaluating the results of organizing strategy, the
manager gathers feedback on how well the strategy is working. For
example, the manager may find that a particular type of table is not large
enough and that larger ones must be purchased if the restaurant is to
attain its goals
6.2. Classical Organizing Theory
- Classical organizing theory comprises the cumulative insights of early
management writers on how organizational resources can best be used to enhance
goal attainment. Three major components of classical organizing theory:Weber’s
bureaucratic model, division of labor, and structure.
6.2.1. Weber’s Bureaucratic Model
- Weber’s most notable contribution to classical organizing theory was his
concept of bureaucracy.
- Weber used the term bureaucracy to label the management system that
includes three primary components: detailed procedures and rules, a clearly outlined
organizational hierarchy, and impersonal relationships among organization members.
6.2.2. Division of Labor
- Division of labor is the assignment of various portions of a particular task
among a number of organization members
6.2.3. Structure
- Structure refers to the designated relationships among resources of the
management system
- Formal structure is defined as the relationships among organizational
resources as outlined by management; formal structure is represented primarily by the
organization chart.
- Informal structure is defined as the patterns of relationships that develop
because of the informal activities of organization members
6.3. Responsibility
- Responsibility is the obligation to perform assigned activities
6.3.1. The Job Description
- A job description—a list of specific activities that must be performed by
whoever holds the position
6.3.2. Dividing Job Activities
- Some method of distributing these job activities:
+ The Functional Similarity Method, the method suggests that management
should take four basic interrelated steps to divide job activities in the following
sequence:
1. Examine management system objectives
2. Designate appropriate activities that must be performed to reach those
objectives
3. Design specific jobs by grouping similar activities
4. Make specific individuals responsible for performing those jobs
+ Functional Similarity and Responsibility, additional guides can be used to
supplement the functional similarity method:
• Overlapping responsibility refers to a situation in which more than one
individual is responsible for the same activity.
 • A responsibility gap exists when certain tasks are not included in the
responsibility area of any individual organization member
• Management should avoid creating job activities for accomplishing tasks
that do not enhance goal attainment
6.3.3. Clarifying Job Activities of Managers
- Management Responsibility Guide: helps management to describe the various
responsibility relationships that exist in the organization and to summarize how the
responsibilities of various managers relate to one another.
- Responsible Managers can be described as responsible if they perform the
activities they are obligated to perform.
6.4. Authority
- Authority is the right to perform or command
6.4.1. Authority on the Job
- The relationship between job activities and authority: The manager has the
authority necessary to perform both his/her task and deligation
6.4.2. Acceptance of Authority
- The positioning of individuals on an organization chart indicates their relative
amount of authority.
- Authority will be accepted only under the following conditions:
1. The individual can understand the order being communicated.
2. The individual believes the order is consistent with the purpose of the
organization.
3. The individual sees the order as compatible with his or her personal interests.
4. The individual is mentally and physically able to comply with the order.
- To increase acceptance of a manager’s commands:
1. Manager uses formal channels of communication
2. Each member has an assigned formal channel for orders
 3. Line of communication, between manager and subordinate is as direct as
possible
4. Complete chain of command is used to issue orders
5. Manager possesses adequate communication skills
6. Manager uses formal communication lines only for organizational business
7. Command is authenticated as coming from a manager
6.4.3. Types of Authority
- Three main types of authority can exist within an organization: line authority,
staff authority, and functional authority.
- Line authority, the most fundamental authority within an organization,
reflects existing superior–subordinate relationships
- Staff authority consists of the right to advise or assist those who possess line
authority as well as other staff personnel.
- Functional authority consists of the right to give orders within a segment of
the organization in which this right is normally nonexistent
6.4.4. Accountability
- Accountability refers to the management philosophy whereby individuals are
held liable, or accountable, for how well they use their authority and live up to their
responsibility of performing predetermined activities
6.5. Delegation
- Delegation is the actual process of assigning job activities and corresponding
authority to specific individuals within the organization.
6.5.1. Steps in the Delegation Process
- Newman and Warren: the delegation process consists of three steps
• The first step is assigning specific duties to the individual
• The second step of the delegation process involves granting
appropriate authority to the subordinate
 • The last step involves creating the obligation for the subordinate to
perform the duties assigned
6.5.2. Obstacles to the Delegation Process
1. Obstacles related to the supervisor
2. Obstacles related to subordinates
3. Obstacles related to organizations
6.5.3. Eliminating Obstacles to the Delegation Process
- continually strive to uncover any obstacles to delegation => approach taking
action to eliminate these obstacles with the understanding that they may be deeply
ingrained and therefore require much time and effort to overcome
6.5.4. Centralization and Decentralization
- The terms centralization and decentralization describe the general degree to
which delegation exists within an organization.
- Centralization implies that a minimal number of job activities and a minimal
amount of authority have been delegated to subordinates by management, whereas
decentralization implies the opposite.

Chapter 7 Leadership
7.1. Defining Leadership and approaches to leadership
- Leadership is the process of directing the behavior of others toward the
accomplishment of some objectives
7.1.1. Leader Versus Manager
- Management consists of the rational asessment of a situation, focuses on
broader in scope; focuses on non-behavioral issues (they focus on what is to be done).
- Leadership, is a subset of management. Leading emphasizes mainly
behavioral issues
7.1.2. The Trait Approach to Leadership
 The trait approach to leadership is based on early leadership research that
assumed a good leader is born, not made.
Successful leaders tend to possess the following characteristics:
1. Intelligence, including judgment and verbal ability
2. Past achievement in scholarship and athletics
3. Emotional maturity and stability
4. Dependability, persistence, and a drive for continuing achievement
5. The skill to participate socially and adapt to various groups
6. A desire for status and socioeconomic position
7.1.3. The Situational Approach to Leadership: A Focus on Leader Behavior
The more modern situational approach to leadership is based on the
assumption that each instance of leadership is different and therefore requires a
unique combination of leaders, followers, and leadership situations.
- Tannenbaum and Schmidt stress situations in which a leader makes decisions
(continuum)
Managers displaying leadership behavior toward the right of the model are
more democratic, and they are called subordinate-centered leaders. Managers
displaying leadership behavior toward the left of the model are more autocratic, and
are called boss-centered leaders.
Each type of leadership behavior in this model is explained in more detail in
your text book.
- The Vroom–Yetton–Jago Model built on two important premises:
1. Organizational decisions should be of high quality (should have a beneficial
impact on performance).
2. Subordinates should accept and be committed to organizational decisions
that are made.
+ The Vroom-Yetton-Jago Model suggests five different decision styles. These
styles range from autocratic (the leader makes the decision) to consultative (the leader
makes the decision after interacting with the followers) to group-focused (the
manager meets with the group, and the group makes the decision.
- Studies conducted to identify leadership behavior: the Bureau of Business
Research at Ohio State University (referred to as the OSU studies), and the University
of Michigan (referred to as the Michigan studies).
- Effectiveness of Various Leadership Styles
- The Hersey–Blanchard Life Cycle Theory of Leadership
- Fiedler’s Contingency Theory
- The path–goal theory of leadership
7.2. Leadership Today
Five leadership styles have emerged in recent years: transformational
leadership, coaching, “superleadership,” servant leadership, and entrepreneurial
leadership.
7.2.1. Transformational Leadership
Transformational leadership is leadership that affecting followers’ beliefs,
and using that to inspire organizational success.
7.2.2. Coaching
Coaching is leadership that instructs followers on how to meet the special
organizational challenges they face.
7.2.3. Super leadership
Superleadership is leading by showing others how to lead themselves.
7.2.4. Servant Leadership
Servant leadership is an approach to leading in which leaders view their
primary role as helping followers in their quests to satisfy personal needs, aspirations,
and interests.
7.2.5. Entrepreneurial Leadership
Entrepreneurial leadership is leadership that is based on the attitude that the
leader is selfemployed.
7.3. The Motivation Process
7.3.1. Defining Motivation
Motivation is the inner state that causes an individual to behave in a way that
ensures the accomplishment of some goal (motivation explains why people act as
they do)
7.3.2. Process Theories of Motivation
Four important theories describe how motivation occurs:
1. Needs-goal theory
2. Vroom expectancy theory
3. Equity theory
4. Porter–Lawler theory
(The needs-goal theory of motivation is the most fundamental of the
motivation theories discussed in this chapter)
7.3.3. Content Theories of Motivation: Human Needs
Content Theories of Motivation have been developed to help managers better
understand human needs:
1. Maslow’s hierarchy of needs
2. Alderfer’s ERG theory
3. Argyris’s maturity-immaturity continuum
4. McClelland’s acquired needs theory
7.4. Motivating Organization Members
7.4.1. The Importance of Motivating Organization Members
- Unsatisfied needs can lead organization members to perform either
appropriate or inappropriate behavior.
7.4.2. Strategies for Motivating Organization Members
These managerial motivation strategies are as follows:
1. Managerial communication
2. Theory X–Theory Y
 3. Job design
4. Behavior modification
5. Likert’s management systems
6. Monetary incentives
7. Nonmonetary incentives

Chapter 8 Controlling, Information, and Technology

8.1. The Fundamentals of Controlling
8.1.1. Defining Control
- Control is making something happen the way it was planned
- Planning and control are virtually inseparable functions
8.1.2. Defining Controlling
- The Controlling Subsystem:
• controlling can be viewed as a subsystem of the overall management system.
• this subsystem is to help managers enhance the success of the overall
management system through effective controlling
- The Controlling Process: 3 steps:
1. Measuring performance
2. Comparing measured performance to standards
3. Taking corrective action
8.2. Power and Control
8.2.1. A Definition of Power
Authority is the right to command or give orders
Power is the ability to influence others so they take orders
8.2.2. Total Power of a Manager
The total power a manager possesses is made up of two different kinds of power:
• Position power: derived from the organizational position a manager holds
• Personal power: derived from a manager’s relationships with others
8.2.3. Steps for Increasing Total Power
To increase personal power, a manager should attempt to develop the following
attitudes and beliefs in other organization members:
1. Sense of obligation toward the manager
2. Belief that the manager possesses a high level of expertise
3. Sense of identification with the manager
4. Perception that they are dependent on the manager
8.2.4. Making Controlling Successful
To increase the quality of the controlling subsystem, managers should make sure
controlling activities take all the following factors into account.
• Specific Organizational Activities Under Focus
• Different Kinds of Organizational Goals
• Timely Corrective Action
• Communication of the Mechanics of the Control Process
8.3. Essentials of Information
8.3.1. Factors Influencing the Value of Information
Four primary factors determine the value of information:
1. Information appropriateness
2. Information quality
3. Information timeliness
4. Information quantity
8.3.2. Evaluating Information
Evaluating information is the process of determining whether the acquisition of
specified information is justified.
• Identifying and Evaluating Data
• Evaluating the Cost of Data
8.4. Information Technology
Technology
 Consists of any type of equipment or process that organization members use in
the performance of their work
Information technology (IT)
Computers and telecommunication devices that focus on the use of information
in the performance of work
8.5. The Information System (IS)
8.5.1. Describing the IS
- Operating the IS: one way to begin determining management information needs is to
analyze the following:
1. Decision areas in which management makes decisions
2. Specific decisions within these decision areas
3. Alternatives that must be evaluated
- Different Managers Need Different Kinds of Information
8.5.2. Managing Information Systems
Three activities that improve IS effectiveness are:
1. Managing User Satisfaction
2. Managing the IS Workforce
3. Managing IS Security