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Martin Hendrikx – Management Handbook

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For my handbook, I decided not to just pick out key points from every chapter, but I decided to
choose the things from each chapter that I found interesting or pertinent to being a good manager or
to have to be a successful company. Other things I picked were just things in the chapter that I
found to be interesting. Because of this, some chapters have more points than others do.

Chapter 1 – The Exceptional Manager

1. Competitive advantage
a. Ability of an organization to produce goods or services more efficiently than their
competitors do
2. Challenges of being a great manager
a. Managing for competitive advantage
b. Managing for diversity
c. Managing for globalization
d. Managing for information technology
e. Managing for ethical standards
f. Managing for your own happiness and life goals
3. Four functions of managers
a. Planning
i. Setting goals and deciding how to achieve them
b. Organizing
i. Arranging tasks, people, and other resources to accomplish work
c. Leading
i. Motivation, directing, and influencing people to work hard to achieve the
organization’s goals
d. Controlling
i. Monitoring performance, comparing it with goals, and taking corrective action
as needed
4. The roles of managers
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a. Interpersonal roles – managers interact with employees and people outside the
organization
b. Informational roles – managers act as monitors, disseminators, and spokesperson for
the company as they receive and transmit information
c. Decisional roles – managers use information to solve problems and make decisions.
5. Skills that good managers need to have
a. Technical skills – job specific knowledge needed to perform well in a specialized
field
b. Conceptual skills – ability to think analytically, to visualize an organization as a
whole and understand how the parts of the organization work
c. Human skills – ability to work well with other people to get things done

Chapter 2 – Management Theory

1. Closed systems
a. Has little interaction with its environment so it doesn’t receive feedback from the
environment
2. Open systems
a. Continually interacts with its environment so it receives feedback about its problems
3. Hawthorne Effect
a. The concept that every change results in increased productivity
4. Theory X and Theory Y
a. Theory X says that management assumes employees are inherently lazy and will
avoid work if they can. This is where managers have a negative view or employees.
b. Theory Y says that management assumes employees may be ambitious, self-
motivated, and anxious to accept greater responsibility, and exercise self-control, self-
direction, autonomy, and empowerment. This is where managers have a positive
view or employees.

Chapter 3 – The Manager’s Changing Work Environment

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1. Stakeholders – people who are affected by an organizations activities
a. Internal Stakeholders
i. Employees
ii. Owners
iii. Board of directors
b. External Stakeholders
i. Task Environment
1. Customers
2. Competitors
3. Suppliers
4. Distributors
5. Strategic allies
6. Employee organizations - Unions and associations
7. Local communities
8. Financial institutions
9. Government regulators
10. Special interest groups
11. Mass media
ii. General environment
1. Economic forces
2. Technological forces
3. Sericultural forces
4. Demographic forces
5. Political/legal forces
6. International forces
2. Ethics
a. Standards of right and wrong
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3. Values
a. Relatively permanent and deeply held beliefs and attitudes that help determine a
person’s behaviour
4. Diversity
a. This represents all the ways that people are unlike and alike. These ways include,
age, gender, race, sexual orientation, capabilities, and socio-economic beackground.

Chapter 4 – Global Management

1. Globalization
a. The trend of the world economy toward becoming a more interdependent system.
2. Ethnocentric Managers
a. Believe that their country, culture, language, and behaviour are superior to all others
3. Polycentric Managers
a. Take the view that managers in foreign offices best understand native personnel and
practices and so the home office should leave them alone
4. Geocentric Managers
a. Accept that there are differences and similarities between home and foreign personnel
and practices and that they should use whatever techniques are most effective
5. Why do companies expand internationally?
a. Availability of supplies
b. New markets
c. Lower labour costs
d. Access to finance capital
e. Avoidance of import tariffs and import quotas
6. How do companies expand internationally?
a. Global outsourcing
b. Importing, exporting, and countertrading
c. Licensing and franchising
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d. Joint ventures
e. Wholly owned subsidiaries

Chapter 5 – Planning

1. How does planning help you?

a. Planning helps you check your progress
b. Planning helps you coordinate activities
c. Planning helps you think ahead
d. Planning helps you cope with uncertainty
2. Mission statement
a. Statement that expresses the purpose of the organization
3. Vision statement
a. Statement which says what the company wants to become
4. SMART goals
a. Specific

b. Measurable

c. Attainable

d. Results Oriented

e. Target Dates

Chapter 6 – Strategic Management

1. Why is strategic management important?

a. Is the process that involves managers from all parts of the organization in the
formulation and the implementation of strategies and strategic goals
2. Five Steps in the strategic management process
a. Establish the mission and the vision
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b. Establish the grand strategy using a SWOT analysis
c. Formulate strategic plans
d. Carry out strategic plans
e. Mmaintain strategic control
3. SWOT analysis
a. Analysis of a companies strengths, weaknesses, opportunities and threats
4. Balanced Scorecard
a. Gives fast but comprehensive view of the organization via four indicators:
i. Customer satisfaction
ii. Internal processes
iii. Organizations innovation and improvement activities
iv. Financial measures

Chapter 7 – Individual and Group Decision Making

1. Decision and decision-making

a. A decision is a choice made from available alternatives and decision making is the
process of identifying and choosing the proper alternative
2. Programmed decisions
a. Repetitive and routine decisions that have to be made often
3. Non-programmed decisions
a. Decisions that need to be made that occur under non-routine unfamiliar circumstances
4. Decision making styles
a. Directive
b. Analytical
c. Conceptual
d. Behavioural
5. Availability bias
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a. Decisions are made based on the available information and information from their
past experiences
6. Representativeness bias
a. Tendency to generalize from a single event or small collection of events
7. Adjustment Bias
a. Tendency to make decisions based on initial figures
8. Escalation of commitment
a. Tendency to escalate one’s level of commitment to a project despite any negative
information about it

Chapter 8 – Organizational Culture, Structure and Design

1. Organizational culture
a. System of shared beliefs and values that develops within an organization and guides
behaviour of its members
2. Invisible culture
a. Consists of values, beliefs and assumptions
3. Observable culture
a. Symbols
b. Stories
c. Heroes
4. Why is culture important
a. It gives members an organizational identity
b. It facilitates collective commitment
c. It promotes social system stability
d. It shapes behaviour by helping employees make sense of their surroundings
5. Division of labour
a. Deals basically with specializations that people have
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6. Span of control
a. The amount of people who someone has reporting to them
7. Functional structure
a. When a company’s structure it divided according to the functions of employees
8. Organic organizations
a. Authority is decentralized, there are fewer rules and procedures, and networks of
employees are encouraged to cooperate and respond quickly to unexpected tasks
9. Mechanistic organizations
a. Authority is centralized , tasks and rules are clearly specified and employees are
closely supervised
10. Four stages of the life of an organization
a. Birth stage
i. When the organization is created
b. Youth stage
i. Stage of growth and expansion
c. Midlife stage
i. Period of growth to stability when company becomes bureaucratic
d. Maturity stage
i. Stage when organization becomes very bureaucratic, large, and mechanistic

Chapter 9 - Human Resource Management

1. Human resource management

a. Consists of the activities managers form to plan for, attract, develop, and retain an
effective workforce
2. Job analysis
a. Determine by observation and analysis, the basic elements of a job
3. Job description
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a. Summarizes what the holder of the job does and how or why he or she does it
4. Orientation
a. Period when employees are introduced to the business and how things work
5. Training
a. Educating employees to help them perform better in their jobs
6. Appraisals
a. Assessing employees about their performance in the workplace and providing them
with feedback

Chapter 10 – Organizational Change and Innovation

1. Reactive change
a. Making changes in response to problems or opportunities as they arise
2. Proactive change
a. Making changes or plans for in response to problems or opportunities in anticipation
of them arising
3. Causes of need for change
a. Inside
i. Employee problems
ii. Managers behaviour
b. Outside
i. Demographic characteristics
ii. Market changes
iii. Technological advancements
iv. Social and political pressures
4. Organizational development and its characteristics
a. Set of techniques for implementing planned changes to make people and
organizations more effective
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Chapter 11 – Managing Individual Differences and Behaviour

1. Organizational behaviour
a. Behavioural patterns and characteristics that are held by all members of an
organization
2. Values
a. Abstract ideals that guide one’s thinking and behaviour across all situations
3. Job Satisfaction
a. Extent to which one feels positively or negatively about the organization for which
they work
4. Job involvement
a. Extent to which one identifies or is personally involved with their job
5. Organizational Commitment
a. Extent to which an employee identifies with an organization and its goals
6. Five personality Dimensions
a. Extroversion
i. How outgoing, talkative, social and assertive someone is
b. Agreeableness
i. How trusting, good-natured, cooperative and soft hearted someone is
c. Conscientiousness
i. How dependable, responsible, achievement oriented, and persistent one is
d. Emotional stability
i. How relaxed, secure, and unworried one is
e. Openness to experience
i. How intellectual, imaginative, curious, and broadminded one is
7. Important traits in an organization
a. Locus of control
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i. How much people feel in control of their fate through their own efforts
b. Self-Efficacy
i. One’s belief that they can do a task
c. Self Esteem
i. The extent to which someone likes or dislikes themselves
d. Self-Monitoring
i. Extent to which people are able to observe their own behaviour and adapt it to
external situations
8. Perception and things that can distort it
a. Perception is the process or interpreting and understanding ones environment
b. Some things that distort perception are
i. Selective perception (seeing or hearing only the things you want to see or
hear)
ii. Stereotyping
iii. Halo effect (generalizing based on one or little events)
9. Pygmalion effect
a. Phenomenon in which peoples expectations of themselves or others leads them to
behave in ways that make those expectations come true
10. Stress and its sources
a. Stress is the tension people feel when they are facing or enduring extraordinary
demands, constraints, or opportunities and are uncertain about their ability to handle
them effectively

Chapter 12 – Motivating Employees

1. Motivation
a. Psychological processes that arouse and direct goal-directed behaviour
2. Extrinsic rewards
a. Payoffs such as money that people receive for performing certain tasks
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3. Intrinsic rewards
a. Satisfaction employees receive from accomplishing a certain task or from performing
it
4. Maslow’s Hierarchy of needs
a. Maslow proposes that humans are motivated by 5 needs
i. Physiological needs
ii. Safety needs
iii. Belonging needs
iv. Esteem needs
v. Self actualization needs
5. McCleland’s Acquired needs Theory
a. Proposes that humans have three needs in the workplace which include the need for
achievement, affiliation and power
6. Expectancy Theory
a. People are motivated by how much they want things and how likely they are think
they are going to get it
7. Equity Theory
a. How employees perceive they are being treated in comparison to other employees
8. Goal setting Theory
a. Suggests that employees can be motivated by goals that are specific and challenging
but attainable
9. Five job characteristics
a. Skill variety
b. Task identity
c. Task significance
d. Autonomy
e. feedback

Chapter 13 – Groups and Teams

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1. Conflict
a. A process in which one person or entity sees that his or its interests are being opposed
or negatively affected by the other’s interests and disagreement occurs
2. Types of conflict
a. Negative conflict – conflict that hinders or negatively affects an organization’s
progress or interests
b. Constructive conflict – conflict that helps or benefits an organization’s progress or
interests
3. Causes of conflict
a. Competition for resources
b. Time pressure
c. Inconsistent goals or reward systems
d. Ambiguous jurisdictions
e. Status differences
f. Personality clashes
g. Communication failure
4. Programmed conflict
a. Designed to get peoples different ideas without involving personal feelings
5. Devils advocacy
a. Assigning someone to oppose ideas so as to stir up different ideas
6. Importance and benefits of teamwork
a. Teamwork can help to achieve the following things which are all beneficial to the
organization for which the teams are a part of:
i. Increased productivity
ii. Increased speed
iii. Reduced costs
iv. Improved quality
v. Reduced destructive internal competition
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vi. Improved workplace cohesiveness
7. Groups
a. Two or more freely interacting individuals who share collective norms and goals and
have a common identity (e.g. - employees meeting to discuss company policies)
8. Teams
a. Small group of individuals with complementary skills who are committed to a
common purpose, performance goals, and approach for which they hold themselves
accountable. (e.g. - employees meeting to stuffy pay scales with the goal of
presenting recommendations to adjust pay levels)
9. Quality control circles
a. Small groups of volunteers or workers and supervisors who meet intermittently to
discuss workplace and quality related problems.
10. Groupthink
a. A cohesive group’s blind unwillingness to discuss or consider alternatives

Chapter 14 – Power, Influence, and Leadership

1. Leadership
a. Ability to influence employees to voluntarily pursue organizational goals
2. Sources of Power
a. Legitimate power
i. Power that managers have from simply being the manager
b. Reward power
i. Power that managers have from the ability to reward employees who perform
well
c. Coercive power
i. Power that all managers have by being able to coerce or punish employees for
poor performance
d. Expert power
i. Power that managers have from having degrees or qualifications.
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e. Referent power
i. Power that people have from being well liked by their employees
3. Leadership Theories
a. Trait Theory
b. Behavioural Theory
c. Contingency theory
d. Emerging Theory

Chapter 15 – Interpersonal and Organizational Communication

1. Communication
a. Transfer of information and misunderstanding from one person to another
2. Communication process

3. Physical Barriers
a. Noise, time (if its late, people may not respond or hear well), space (large rooms)
4. Semantic Barriers
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a. When words are incomplete or wrongly used, the wrong message may be conveyed
5. Personal Barriers
a. Discrimination
b. Ability to process information
c. Ability to encode message
d. Bad listening skills
6. Information Overload
a. When individuals are given too much information to process they are overloaded with
information