Principles of Management policies necessary to be followed in achieving regulation of the operation of an enterprise, in

those objectives.” the fulfillment of a given purpose or task.

Define Management - “Management on the other hand, is an - Administration is that part of management
- Management is the process of designing & maintaining executive function which is primarily which is concerned with the installation &
an environment in which individuals, working together concerned with carrying out broad policies laid carrying out the procedures by which it is laid
in groups, efficiently accomplish selected aims down by the administration.” down & communicated, & the process of
- As managers, people carry out the managerial functions - Difference between administration & activities regulated & checked against plans.
of planning, organizing, staffing, leading, & management
controlling. - Management & administration are same
- Management applies to any kind of organization. - Management & administration are synonymous;
Basis of Administration Management
- It applies to managers at all organizational levels. the difference between the two terms lies
difference
- The aim of all managers is the same: to create a mostly in their usage in different countries or
surplus. Level in Top level Middle & lower different fields of human organizations.
- Managing is concerned with productivity, this implies organization - The distinction between the two terms may be
effectiveness & efficiency drawn by analyzing the origin of the word
Major Focus Policy formulation Policy execution “administration”.
Define Organizations : & objective for objective - The government often uses the word
- Organizations which can be defined as a group of determination achievement administrator, instead of manager, to handle &
people working together to create a surplus. manage its affairs
- In business organizations, this surplus is profit. Nature of Determinative Executive
- In nonprofit organizations, such as charitable Functions Functions of Management
organizations, it may be the satisfaction of - Management can be break down into 5 managerial
needs. Scope of Broad & Narrow & functions : planning, organizing, staffing, leading &
Functions conceptual operational controlling
Features of Management : - Management as an essential for any organization
Factors Mostly external Mostly internal
- Organized activities
Affecting
- Existence of objectives Managerial functions at different organizational levels
decisions
- Relationship among resources - Functions of Top Management
- Working with & Through people Employer-Employ Entrepreneurs & Employees - To analyze, evaluate & deal with the external
- Decision- Making ee environmental forces
- To establish overall long-term goals, strategy &
policies of the company including the master
Management and Administration - Administration is part of management budget to allocate resources.
- Administration is above management - Management is a generic name for the total - To create an organizational framework
- “Administration is that phase of business process of executive control in industry or consisting of authority responsibility
enterprise that concerns itself with the overall commerce. relationships.
determination of institutional objectives & the - It is a social process entailing responsibility - To appoint departmental & other key
for the executive & economic planning & executives.
 - To provide overall leadership to the company. - Stability in the Society
- To represent the company to the outside world, - Management as an economic resource (or a factor
e.g. ; trade associations, government, trade Skills of Management : of production) .
unions, etc. - Technical skills - The economist has been all the time been
- To exercise overall review & control on the - Human skills speaking of 4 factors viz , land, labor, capital
company’s operations & - Conceptual skills & enterprise
- To coordinate the activities & efforts of - Design skills
different departments. Management science or Art :
Nature of Management : - Management science or art differ in the following
- Functions of Middle Management - Management as an activity (or a process ) ways :
- To interpret & explain the policies framed by - Planning - Commonsense is vague as compared to
top management . - Organizing scientific knowledge
- To compile & issue detailed instructions - Staffing - Flagrant inconsistency often appears in
regarding operations. - Directing commonsense whereas logical consistency is the
- To maintain close contacts with operating - Controlling basic of science
results so as to evaluate performance. - Science systematically seeks to explain the
- To participate in operating decisions - Management as a discipline events with which it deals, commonsense
- To cooperate among themselves so as to - Management education is gaining popularity in ignores the need for explanation
integrate or coordinate various parts of a the present –day-times. - The scientific method deliberately exposes
division or a department - Scholars are interested in study of claims to the critical evaluation of
management discipline, for purposes of experimental analysis, commonsense method
- Functions of Supervisory Management : conducting research studies & making new & fails to test conclusions in any scientific
- To plan day-to-day production within the goals valuable contributions to this discipline fashion
laid down by higher authorities. - Practitioners of management are much
- To assign jobs to workers to make interested in a study of management discipline Management as profession :
arrangements for their training & development. - Management discipline is growing into - “Profession is an occupation for which specialized
- To supervise & control workers & maintain specialized branches of management like knowledge, skills & training are required & the use of
personal contact with charge hands. production, marketing, personnel, finance & these skills is not meant for self-satisfaction but these
- To arrange materials & tools & to maintain several others are used for larger interests of the society & the
machinery. success of the use of these skills is measured not in
- To advise & assist workers by explaining work - Management as a group ( class or team or society) terms of money alone.”
procedures, solving their problems, etc - Micro-level : the economic results, in terms of
the attainment of common objectives, of the Characteristics of profession :
Importance of Management : group endeavor - Existence of knowledge
- Effective Utilization of Resources - Macro-level : the survival, growth & prosperity - Acquisition of knowledge
- Development of Resources of the economy would be determined by the - Professional association
- To Incorporate Innovations integrity, competence & efforts of the total - Ethical codes
- Integrating Various Interest Groups management class - Service motive
Objectives/ Advantages OR Significance of Management : - A more equal division of responsibility between
- Micro level Taylor & scientific management : management & workers
- Enterprise level - The concept of scientific management was introduced - Mental revolution on the part of management & workers
- Maximum results with minimum inputs by Frederick Taylor in the USA in the beginning of
- Securing results in terms of 20th century. Merits of scientific Management :
production, sales, employee - Scientific management was concerned essentially with - More production & higher profits
satisfaction improving the operational efficiency at the shop floor - Job-satisfaction
- Maintaining a balance between the level - Personality development
internal environment of the enterprise - “scientific management is concerned with knowing - Higher standard of living
& the external environment exactly what you want men to do & then see in that
- Ensuring maximum prosperity for both they do in the best & cheapest way” Fayol’s Administrative management :
employers & employees - Henry Fayol was a french mining engineer who turned
- Stability of employment Elements & Tools of scientific Management : a leading industrialist & a successful manager
- Satisfactory working conditions - Separation of planning & doing - Perhaps the real father of modern operational
- Fair remuneration - Functional Foremanship management theory is the French industrialist Henry
- Job-satisfaction - Job analysis Fayol.
- Justice & human treatment - Time study involves the determination of time a - Fayol found that activities of an industrial
- Ensuring survival, growth & prestige of the movement takes to complete organization could be divided into 6 groups such as :
enterprise - Motion study involves the study of movements - Technical (relating to production)
in parts which are involved in doing a job & - Commercial (buying, selling & exchange)
thereby eliminating the wasteful movements & - Financial (search for capital & its optimum use
- Macro level performing only necessary movements )
- To further the process of economic growth - Fatigue study shows the amount & frequency of - Security (protection of property & person)
- To ensure social welfare rest required in completing the work. - Accounting (including statistics ) &
- Generation of employment opportunities - Standardization - Managerial (planning, organization, command,
- Helping maintain healthy industrial relations - Scientific selection & training of coordination, & control )
- Conversion of challenges into opportunities workers
- Financial Incentives Managerial qualities & training :
Role of Management Principles : - Economy - Physical (health, vigour , & address )
- To increase efficiency - Mental Revolution - Mental (ability to understand & learn, judgment, mental
- To crystallize the nature of Management vigour, & capability)
- To carry on Researches Principles of scientific management : - Moral (energy, firmness, initiative, loyalty, tact, &
- To attain social objectives - Replacing rule of Thumb with science dignity)
- Harmony in Group Action - Educational (general acquaintance with matters not
Evolution of Management Thought : - Co-operation belonging exclusively to the function performed)
- Many different contributors of writers & practitioners - Maximum output - Technical (peculiar to the function being performed) &
have resulted in different approaches to management, - Development of workers - Experience (arising from the work )
& these make up a “management theory jungle”
General Principles of Management : - Decisional Role well as the provisions of the
- Division of work - Management Role Companies Act
- Authority & Responsibility - Formal authority & status + Personal skills & - Divided into 6 categories :
- Discipline characteristics - trusteeship, function implying
- Unity of Command - Interpersonal roles that board must use the
- Unity of Direction - Figurehead property of the company
- Subordination of Individual to General Interest - Leader - Determination of basic
- Remuneration of Personnel - Liaison objectives & policies of the
- Centralization - International roles organization
- Scalar chain - Monitor - Selection of top executives &
- Order - Disseminator determination of overall
- Equity - spokesperson organization structure
- Stability of Tenure - Decision roles - Approval of financial matters
- Initiative - Entrepreneur like
- Esprit de corps - Disturbance - Chairman
- Handler - Chief Executive
Role & Functions of a manager & activities of management - Resource allocator - Middle Management
- Functions of Manager : - Negotiator - Departmental HEads
- Planning - Divisional Heads
- Organizing - Functions at Various Levels of Management - Sectional Heads
- Staffing - Management - Supervisory Management
- Directing - Top Management - Senior Supervisors
- Controlling - Top management of an organization - Intermediate Supervisors
consists of board of directors, - Front-line Supervisors
- Nature Management Functions : chairman & chief executive officer
- Management functions are universal - BOD
- Management functions have interactive quality - Functions of Board of M1S1: Managing in a Global World
- Although management process suggests a Directors :
sequential arrangement of functions its not - A board is elected by the Management
always possible in the performance of owners (shareholders) & is - Management is the process of working with people and
managerial functions strictly in a sequence responsible to them as their resources to accomplish organizational goals.
- Since there are many managerial functions agent for managing the affairs - Good managers do those things both effectively and
often a question arises which management of the organization. efficiently:
function is more important so that managers - Board has authority to manage - To be effective is to achieve organizational
devote more time to that subject to the limitations goals.
- Roles Of Manager : imposed by the Memorandum of - To be efficient is to achieve goals with minimal
- Interpersonal Role Association & Articles of waste of resources.
- Informational Role Association of the company as
The Four Functions of Management Exhibit 1.1 Examples of Planning Activities Controlling means learning and changing
- Planning - Must include monitoring performance and making
- Systematically making decisions about which necessary changes.
goals and activities to pursue. - Now and in the future, key challenges involve
- Leading continually learning and changing. \
- Stimulating people to be high performers. → Controlling monitors progress and
- Organizing implements necessary changes.
- Assembling and coordinating the resources → This makes sure that organizational
needed to achieve goals. resources are used properly and goals are met
- Controlling for quality and safety.
Organizing Resources Achieves Goals
- Monitoring and reacting to performance.
- Goal is to build a dynamic organization.
Managing requires all four functions
- Effective managers using new forms of organizing;
Planning - Managing Today May involve all functions
consider people as their most valuable resource.
- Planning helps you deliver value simultaneously on a daily basis.
- Build organizations that are flexible and adaptive.
→ Sets the stage for action. - Managers should develop abilities with all four
→ Organizing is assembling and coordinating
→ Can also be described as delivering functions.
the human, financial, physical, informational,
strategic value. - Beneficial to career and life.
and other resources needed to achieve goals.
→ Traditionally top-down, now a dynamic and → Most managers have to perform all four
→Organizing activities include attracting
continual process throughout the organization. management functions more or less
people to the organization, specifying job
→ Creating value requires considering a new simultaneously.
responsibilities, grouping jobs into work units,
and changing set of factors.
marshaling and allocating resources, and
- Planning is specifying the goals to be achieved and Top managers strategize and lead
creating conditions so that people and things
deciding in advance the appropriate actions taken to - Top-level managers are senior executives of an
work together to achieve maximum success.
achieve those goals organization and are responsible for its overall
- Planning activities include analyzing current situations, management and effectiveness.
Leading mobilizes your people
anticipating the future, determining objectives, - Referred to as strategic managers, they focus on the
- Today’s leaders must be good at mobilizing and
deciding in what types of activities the company will survival, growth, and overall effectiveness of the
inspiring people to fully engage in work and contribute
engage, choosing corporate and business strategies, organization.
their ideas.
and determining the resources needed to achieve the - The chief executive officer (CEO) is one type of
- Great work must be done via great teamwork.
organization’s goals top-level manager. Others include the chief operating
→ Leading is stimulating people to be high
- The planning function can also be described as officer (COO), company presidents, vice presidents,
performers.
delivering strategic value. and members of the top management team.
→ Activities include motivating and
- Creating value requires considering a new and changing
communicating with employees, individually and
set of factors. Middle managers bring strategies to life
in groups.
- Middle-level managers are located in the organization’s
→ Leaders guide and inspire employees toward
hierarchy below top-level management and above
achieving team and organizational goals.
frontline managers.
 - Called tactical managers, they are responsible for - Decisional roles: Managers Need Three Broad Skills
translating the general goals and plans developed by - Entrepreneur - Managers need a variety of specific abilities that
strategic managers into more specific objectives and - Disturbance handler result from knowledge, information, aptitude, and
activities. - Resource allocator practice
- Traditionally, the middle manager was an - Negotiator - Technical skills
administrative controller bridging the gap between - A technical skill is the ability to perform a
higher and lower levels. Transformation of Management Roles and Activities specialized task that involves a certain method
- Today’s middle managers provide the operating skills or process
and practical problem solving that keep the company Roles and Team Frontline M iddle- Top-Level - Lower-level managers who possess technical
working. Activities Leaders M anagers Level M anagers skills earn more credibility from their
M anagers subordinates than comparable managers
Frontline managers are the vital link to employees without technical know-how
Changing From From From From
- Frontline managers are operational managers, Roles operational operational administrati resource - For example, web design.
lower-level managers who supervise the operations of implementer implementer ve allocators - Conceptual and decision skills
the organization. to s to controllers to - Conceptual and decision skills involve the
facilitator aggressive to institutional
- They successfully implement operations in support of manager’s ability to identify and resolve
of team entrepreneu supportive leaders.
company strategy. effectivene rs. controllers. problems for the benefit of the organization
- Frontline managers are increasingly called on to be ss. and everyone concerned.
innovative and entrepreneurial, managing for growth - For example, picking a location for a new
Key Structuring Attracting Linking Establishing
and new business development. office.
Activities teams and and dispersed high
defining developing knowledge performanc
- Interpersonal and communication skills
Team leaders facilitate team effectiveness their resources. and skills e standards. - Interpersonal and communication skills
- Team leaders engage in a variety of behaviors to purpose. across influence the manager’s ability to work well
Attracting units. Institutiona
achieve team effectiveness. with people.
Finding and lizing a set
- Team leaders are more like project facilitators or resources developing Managing of norms to
- Ability to lead, motivate, and communicate
coaches. and resources. the tension support effectively with others.
- Team leaders are expected to help their teams achieve removing between cooperation - These skills are often called people skills or
obstacles so Managing short-term and trust.
important projects and assignments. soft skills.
teams can continuous purpose and
accomplish improvemen long-term Creating an
- Emotional intelligence (EQ) involves managers’
Three roles that all managers perform their goals. t within the ambition. overarching ability to understand themselves, manage
- Interpersonal roles: unit. corporate themselves, and deal effectively with others.
Developing Developing purpose and
- Leader
team individuals ambition.
- Liaison members’ and
- Figurehead skills so supporting
- Informational roles: teams can their
be self activities.
- Monitor
managing.
- Disseminator
- Spokesperson
 Skill Importance at Different Managerial Levels - The speed and dependability with which an
Impact of Technology organization delivers what customers want.
- Reed Hastings, the Netflix chief, had a global vision - Continually meeting the changing needs of
Title Technical Conceptual/ Interpersona
that disrupted the television industry. customers to establish mutually beneficial long
Skills Decision l/
term relationships.
Skills Communicati
Knowledge Needs Managing - Speed
on Skills
- Knowledge management is a set of practices aimed at - Fast and timely execution, response, and
Top Low High High discovering and harnessing an organization’s delivery of results.
manager. intellectual resources. - Speed combined with quality is a measure that
a company is operating efficiently.
Middle Medium High High Collaboration Boosts Performance - Cost Competitiveness
manager - Collaboration requires communication among - Keeping costs low to achieve profits and be
departments, divisions, or other subunits. able to offer prices that are attractive to
Frontline High Medium High - Customers can also be collaborators. consumers.
manager - Requires efficiency.
Diversity Needs to Be Leveraged - Sustainability.
Team leader High Medium High - Labor force is becoming more diverse. - Reducing resource use and waste, especially
- Increase in diversity will accentuate differences in for polluting and nonrenewable resources.
employees’ values, attitudes, words work, and norms of - Addressing sustainability issues often
behavior. produces bottom-line benefits.
Major Challenges Facing Managers - Effective managers must also find ways to connect
- Globalization. with diverse customers, suppliers, and government
- Technological change. officials. The Best Managers Deliver All Six Advantages
- The importance of knowledge and ideas - Don’t assume that you can settle for delivering just one
- Collaboration across organizational boundaries. source of competitive advantage.
- Increasingly diverse labor force. Sources of Competitive Advantage - Trade-offs may occur among the sources of
- Innovation. competitive advantage, but this doesn’t need to be a
Business Operates on a Global Scale - The introduction of new goods and services. zero-sum game.
- Today’s enterprises are global, with offices and - Often the most important innovation is not the
production facilities all over the world. product itself, but how it is delivered.
- Globalization made possible by the Internet for both - Quality.
large and small firms - The excellence of your product (goods or
services)
Technology Is Advancing Continuously - Historically, quality referred to attractiveness,
- Complicates things and creates new opportunities. lack of defects, reliability, and long-term
- Impact felt by businesses, individual employees, and dependability.
managers. - Service
- Online sites allow development of social capital.
M1S2: The Organizational Environment and Culture Laws and Regulations Protect and Restrain Organizations Social Values Shape Attitudes Toward Your Company and
- United States Regulators Its Products
Open Systems - National Labor Relations Board (nlrb.gov). - Societal Trends
- Organizations that affect and are affected by their - Federal Communications Commission (fcc.gov). - Have major implications for management of the
environments and other systems. - Nuclear Regulatory Commission (nrc.gov). labor force, corporate social actions, and
- Inputs are goods and services that organizations take - Occupational Safety and Health Administration strategic decisions about products and
in and use to create products or services. (osha.gov). markets.
- Outputs are the products and services organizations - Environmental Protection Agency (epa.gov). - Companies introducing more supportive policies,
create. - Federal Reserve System (federalreserve.gov). including family leave, flexible working hours,
- Food and Drug Administration (fda.gov). and childcare assistance.
External Environment - Prominent issues related to natural resources.
- All relevant forces outside a firm’s boundaries. The Economy Affects Managers and Organizations - Companies’ responses to social issues may
- Gordon Logan, founder of Sport Clips, created the - Economic Factors affect their reputation.
successful business after conducting market research - Interest and inflation rates.
that showed there was little competition in the men’s - Unemployment rates.
haircut market. - Stock market.
- Venezuelan president Nicolás Maduro won reelection in The Competitive Environment
The Macroenvironment 2018 despite leading his oil-rich nation into a - The immediate environment surrounding a firm;
- The general environment; includes governments, shattering economic depression that has prompted one includes suppliers, customers, rivals, and the like.
economic conditions, and other fundamental factors of the worst migration crises in recent Latin American
that generally affect all organizations. history. Porter’s Five Forces
- Maybe uncontrollable. - Competition between existing rivals in the industry
Technology Is Changing Every Business Function - Impact of new competitors entering the market
Exhibit 3.1: Environments - Technological Advances - Power of suppliers
- Create new products. - Power of customers
- Provide more efficient ways to manage and - Impact of substitute or complement services or
Macro Competitive Internal
communicate. products
Environments Environment Environment

Laws and Rivals Culture Demographics Describe Your Employees and Customers Rivals Can Be Domestic or Global
regulations New Competitors Values - Statistical characteristics of a group or population
Economy Customers such as age, gender, and education level.
Identify the Competition Analyze How They
Technology Substitute - Factors that are affecting the size and composition of
Compete
Demographics Services or the labor force include:
Social Values Products - Population growth. Small domestic firms. Competitors use tactics
Suppliers - Education and skill levels of the workforce. Strong regional such as price reductions,
- Immigration. competitors. new-product
- Women Big new domestic introductions, and
companies exploring new advertising campaigns to
 Attractive and Unattractive Environments
markets. gain advantage over their
Global firms. rivals.
Suppliers
Newer ventures. Environmental Attractive Unattractive
- Provide the resources needed for production: people,
Factor
raw materials, information, and financial capital.
New Entrants Appear When Barriers to Entry Are Low - Switching costs are fixed costs buyers face when they Competitors Few; high industry Many; low
- Barriers to Entry change suppliers. growth; unequal industry growth;
- Conditions that prevent new companies from - Supply chain management is the managing of the size equal size;
entering an industry. Includes: network of facilities and people that obtain materials differentiated. commodity.
- Government policy. from outside the organization, transform them into
- Capital requirements. products, and distribute them to customers. Threat of entry Low threat; many High threat; few
- Brand identification. barriers. entry barriers.
- Cost disadvantages. Keeping Up with Changes in the Environment
- Distribution channels. - Environmental Uncertainty Substitutes Few Many
- When management lacks information to
understand or predict the future. Suppliers Many; low Few; high
Customers Determine Your Success (Customers) - Uncertainty arises from: bargaining power. bargaining power.
- Final consumers are those who purchase products in - Complexity—The number of issues a
Customers Many; low Few; high
their finished form. manager must attend to and the degree
bargaining power bargaining power.
- Intermediate consumers are customers who purchase to which they are interconnected.
raw materials or wholesale products before selling - Dynamism—The degree of
them to final customers (B2B companies). discontinuous change that occurs Scenarios, Forecasting, and Benchmarking
- Customer service means giving customers what they within an industry - Scenarios
want or need, the way they want it, the first time. - A narrative that describes a particular set of
Environmental Scanning Keeps You Aware future conditions.
Competitors’ Products Can Complement or Substitute for - Best-case, worst-case
Yours - Forecasting
Environmental Scanning Competitive Intelligence
- Substitutes - Method for predicting how variables will
- A potential threat; customers use it as an change the future.
Searching for and sorting Information that helps
alternative, buying less of one kind of product - Benchmarking
through information about managers determine how best
but more of another. - the process of comparing an organization’s
the environment. to manage in the competitive
- Firms can develop substitutes with practices and technologies with those of other
environment.
technological advances and economic companies.
efficiencies.
Environments can be
- Complements Responding to the Environment
attractive or unattractive
- A potential opportunity; customers buy more of - Effective Responses
a given product if they also demand more of - Adapting to the environment.
the complementary product - Influencing the environment.
 - Selecting a new environment. Influence Your Environment - Mergers happen when one or more companies
- Adapt to the External Environment - Independent Strategies combine with another.
- Empowerment shares power with employees at - Strategies that an organization acting on its - Acquisitions happen when one firm buys
all levels to enhance their contributions to the own uses to change some aspect of its current another.
organization. environment. - Divestiture is when a firm sells one or more
Four Structural Approaches for Managing Uncertainty - Competitive aggression. businesse
- Competitive pacification. - Prospectors
- Public relations. - Continuously change the boundaries of their
Stable Dynamic
- Voluntary action. task environment by seeking new products and
Complex Decentralized Decentralized - Legal action. markets, diversifying and merging, or acquiring
Bureaucratic Organic - Political action. new enterprises
(standardized (mutual - Defenders
skills) adjustment) - Cooperative Strategies - Stay within a stable product domain as a
- Strategies used by two or more organizations strategic maneuver
Simple Centralized Centralized working together to manage the external
Bureaucratic Organic environment. Three Criteria Help You Choose the Best Approach
(standardized (direct - Contracts. - Managers need to change what matters and can be
work processes) supervision) - Cooptation. changed.
- Coalition - Managers should use the most appropriate response.
- Managers should choose responses that offer the most
Four Structural Approaches for Managing Uncertainty
Ways That Managers Can Influence Their Environment benefit at the lowest cost
- ENVIRONMENT
Adapting at the Boundaries Adapting at the Core - Competitive Aggression Your Organization’s Internal Environment and Culture
- Competitive pacification - Internal Environment
Buffering is creating Flexible processes allow for - Public relations - All relevant forces inside a firm’s boundaries.
supplies of excess resources adaptation in the technical - Voluntary action - Managers, employees, resources, and
in case of unpredictable core to meet the varied and - Legal Action organizational culture.
needs. changing demands of - Political action
customers. What Is Organizational Culture?
Smoothing is leveling normal Change the Boundaries of the Environment - Organizational Culture
fluctuations at the - Strategic Maneuvering - The set of assumptions about the organization
boundaries of the - An organization’s conscious efforts to change and its goals and practices that members of the
environment. the boundaries of its task environment. company share.
- Domain selection is the entrance to a new - Strong Culture
market or industry with an existing expertise. - Everyone understands and believes in the
- Diversification is a firm’s investment in a firm’s goals, priorities, and practices
different product, business, or geographic - Weak Culture
area
 - Different people hold different values, there Competing-Values Model of Culture
is confusion about corporate goals, and it is Strategic emphasis: Strategic emphasis:
not clear from one day to the next what Flexible Processes
Toward stability, Toward competitive
predictability, smooth advantage and market
principles should guide decisions
superiority
Internal Type: Clan Type: External
Maintena (Collaborate) Adhocracy(CReate) Positioni
The three levels of organizational culture Control Oriented Processes
nce ng
- Visible artifacts Dominant Attributes: Dominant Attributes:
- Structure and behaviors like dress, office Cohesiveness, entrepreneurship,
Managers Can Leverage Culture to Meet External Challenges
espace, and organizational chart participation, adaptability,
teamwork, sense of dynamism - Approaches to Managing Culture
family - Craft an inspirational vision of “what can be”
- Values LEadership style: for the organizational culture.
- Under the surface, these are desirable LEadership style: Innovator,
- “Walk the talk” by actually doing the things you
qualities and behaviors Mentor, facilitator, entrepreneur, risk
parent figure taker, want others to do—and show that you are
- “Let’s become a ‘green’ company.”
serious about and committed to long-term
- Unconscious assumptions Bonding: Bonding: change.
- Deeply held beliefs that are taken for granted Loyalty, tradition, Flexibility, risk,
- Celebrate and reward members who behave in
- “Employees can be trusted” interpersonal entrepreneur
cohesion ways that exemplify the desired culture.
Strategic emphasis: - Also includes hiring, socializing newcomers,
Companies Give Clues About Their Culture Strategic emphasis: Toward innovation, and promoting employees on basis of the new
- Culture Clues Towards developing growth, new resouces
corporate values
- Corporate mission statements and official human resources,
commitment, and
goals.
morale Types of Organizational Structure in management
- Business practices.
- Business of all categories shapes and sizes use
- Symbols, rites, and ceremonies. Type: Hierarchy Type:
organizational structures for their growth
- The stories people tell (Control) Market(Compete)
- there is a specific hierarchy within an organization
Dominant Attributes: Dominant Attributes: - an eminent organizational structure defines each
Four Types of Organizational Cultures Order, rules and Goal achievement, employee's job and how it fits within the entire system
- Clan culture is internally oriented and flexible. regulations, environment
- not having a proper organizational structure can create
- Hierarchical culture is internally oriented by more uniformity, exchange,
efficiency competitiveness difficulties for certain organizations
focus on control and stability.
- in these types of situations employees may face
- Market culture is externally oriented and focused on LEadership style: LEadership style: difficulties while reporting having a great structure in
controls. Coordinator, Production and
an organization can provide clarity for everyone at
- Adhocracy is externally oriented and flexible organizer, achievement oriented
administrator decisive every level

Bonding: Bonding:
Rules, policies and Goal orientation,
procedures, clear production,
expectations competition
TYPES OF ORGANIZATIONAL STRUCTURES - it is quite simple and stretched like a network Divisional Organizational Structure
- divisional organizational structure is one of the
Bureaucratic Structures Hierarchical Organizational Structure smartest organizational structure ever
- Pre-Bureaucratic Structure - the hierarchy phenotype model of the organizational - in this structure an organization is separated into some
- this structure is the shortest organizational structure shows an organization having both community divisions and each division has control over their own
structure and is used to solve simple tasks such and hierarchy in the same structure resources and operations
as sales - a hierarchical organizational structure is a - this structure is specially designed for large companies
- it is a centralized structure most pyramid-shaped chart where the board of directors is
communication is done by one-on-one at the top position and workers are at the bottom level - Geographic Divisional Organizational Structure
conversations and the strategic leader makes - this is the most common type of organizational - divisions are separated by districts territories
all the important decisions structure and regions
- it is also called the entrepreneurial structure - it motivates employees with chances for promotion - it's offering more effective localization and
as it allows the founder to control growth and - above all it better defines levels of authority and logistics
development responsibility - companies might set up satellite offices around
- drawbacks of this type of structure are employees the country in order to stay close and
- Bureaucratic Structures show interest in their own departments rather than the connected to their customers
- the bureaucratic structure has some level of whole company - Market-Based Divisional Organizational Structure
standardization - it can make low-level employees think that they have - the divisions are separated by industry market
- this structure defined the clear roles and less authority to express their ideas for the company and customer types
responsibilities of every individual employee - the market-based structure is ideal for an
- it is a hierarchical structure with respect to Functional Organizational Structure organization that has product or services that
merit - a functional organizational structure consists of are incomparable to specific market segments
- it has many levels so decision-making authority activities like task allocation supervision and - this structure also keeps the business
has to pass through more layers than flatter coordination constantly conscious of demand changes among
organizations - Functional structure is also like a hierarchical its different audience segments
- a disadvantage of bureaucratic structures is structure - Product-Based Divisional Organizational Structure
that they can discourage innovation and - a person with the highest level of responsibility - in a product-based divisional organizational
creativity within the organization positioned at the top structure each division within the organization
- this type of structures is usually used in larger - an employee are positioned according to their skills is dedicated to a particular product
organizations and specialty only differences each department here is
managed independently Matrix Structure
- Post Bureaucratic Structures - functional organizational structure allows employees to - the matrix organizational structure groups employees
- this type of structures has a long and strict focus on their role help teams and departments to feel by both function and product at the same time
hierarchy with the flexibility in using modern self-determined - it doesn't follow the traditional hierarchical model
management techniques - it also encourages specialization and it is scalable - in this structure employees have dual reporting
- this structure is focused on how simple relationships
structures can be used to make organizational - the main objective of this structure is to provide both
adaptations flexibility and more balanced decision making
 - for example an engineer may regularly belong circular structure makes it difficult to find out whom - some disadvantages of this type of structure are
to the technical department under engineering to report and how they're meant to fit into the - it can become complex when dealing with an
director but work on a temporary project organization off-site process
under the project manager - it can be more difficult for employees to know
- matrix organizational structure shows the more kinetic whom to report
view of the organization and it inspires employees to Team-Based Organizational Structure
use their ability or skills in various capacities aside - the team is the newest organizational structure
from their original roles but sometime it can create a developed in the 20th century
conflict between project managers and departmental - in a small business the team-based structure defines
managers the entire organization
- it can be both horizontal and vertical M2S1 - Organizing for Success
Flat Or Horizontal Organizational Structure - a team-based organizational structure is meant to Fundamentals of Organizing
- a flat or horizontal organization has an organizational disrupt the traditional hierarchy giving employees more Organization Chart
structure with few or no levels of middle management control cooperation and focusing more on problem - The reporting structure and division of labor in an
between staff and executives solving organization.
- basically start-up businesses use this type of structure - advantages of this structure are - The chart on the next slide resembles those familiar to
to grow - it increases performance productivity and Max Weber when he wrote about bureaucracy in the
- this structure is completely free of hierarchy related transparency within an organization early 20th century.
pressure so that employees can be more productive - it requires minimal management and can fit
- a flat or horizontal structure gives employees more anywhere Exhibit 7.1 A Conventional Organization Chart
responsibility and provides a better opportunity to - disadvantage of this type of organizational structure is
grow but it can be difficult to maintain when the - the promotional path is less clear i this
company grows beyond the startup state structure and it goes against the traditional
- it can also create confusion between employees of hierarchical system
different level
Network-Based Organizational Structure
Circular Organizational Structure - network structure is a modern concept
- the appearance of circular organizational structure is - the network organization contract out any business
different from the rest of organizational structures function that can be done better and more cheaply
but it still relies on the hierarchy in which high-level - managers in this structure spend most of their time
employees occupying the inner rings of the circle while coordinating and controlling external relations
the lower level employees occupying outer rings - it makes sense of the spread of resources
- the advantages of circular organizational structure are - the advantages of this structure are
it meant to promote communication and free flow of - it focuses more on open communication rather
information between different parts of the than hierarchy and allows companies to be
organization more flexible
- circular organizational structure also has a - it gives all employees the power to collaborate
disadvantage that is unlike a hierarchical structure a and make decisions
Mechanistic Organization Integration Exhibit 7.3 The Optimal Span of Control Is a Balancing
- A form of organization that seeks to maximize internal - The degree to which differentiated units are put back Act
efficiency. together so that work is coordinated into an overall
Organic Structure product.
- An organizational form that emphasizes flexibility. - Integration Coordinates Employees’ Efforts
- Coordination
Characteristic M echanistic Organic - The procedures linking various parts of an
organization for the purpose of achieving the
Degree of formality Formal Informal organization’s overall mission. The more highly
differentiated the firm, the greater the need
Primary emphasis Efficiency Flexibility
for integration among its units.
Job responsibility Narrowly defined Broad and revolving - Vertical differentiation.
- Horizontal differentiation.
Communication Orders and Advice and - Structural differentiation.
instructions information
Delegation
Decision making Centralized Decentralized Vertical Structure - How managers use other’s talents
- A firm’s vertical structure—authority, span of control, - The assignment of new or additional responsibilities to
Expression of Obedience to Commitment to delegation, and centralization—shapes reporting a subordinate.
commitment authority organization
relationships, responsibility, and accountability. - The most fundamental process of management at all
Source of guidance Rules Personal judgment levels.
Authority (Authority is the Vertical Glue)
Employee Limited, when Employees feel - The legitimate right to make decisions and tell other Responsibility
Interdependence necessary interconnected
people what to do. - means that a person is assigned a task to carry out.
- In private enterprises, the owners have ultimate
authority. Accountability
Differentiation - In larger companies, top management has several - means the subordinate’s manager has the right to
- An aspect of the organization’s internal environment components. expect the subordinate to perform the job, and the
created by job specialization and the division of labor. - Board of directors. right to take corrective action if the subordinate fails
- Differentiation Creates Specialized Jobs - Chief executive officer. to do so.
- Organizational Structure - Top management team.
- Division of labor is the assignment of Managers remain responsible and accountable
different tasks to different people or groups. Span of Control Advantages of Delegation
- Specialization is a process in which different - The number of subordinates who report directly to an - LEVERAGES managers’ time and employees’ talent.
individuals and units perform different tasks. executive or supervisor. - CONSERVES managers’ most valuable asset: time.
- Differentiation is high when an organization - Narrow spans. - DEVELOPS subordinates’ managerial skills and
has many subunits and many specialists who - Tall organization with many reporting levels. knowledge.
think differently - Wide spans. - PROMOTES subordinates’ sense of importance and
- Flat organization with fewer reporting levels. commitment
 Exhibit 7.5 Steps in Effective Delegation Functional Organization Advantages of the Product Approach
- Departmentalization around specialized activities such as 1. Information needs are managed more easily.
production, marketing, and human resources. 2. People have a full-time commitment to a particular
product line.
Exhibit 7.6 The Functional Organization 3. Task responsibilities are clear.
4. Managers receive broader training.

Matrix Organization
- An organization composed of dual reporting
relationships in which some managers report to two
Advantages of the Functional Approach superiors—a functional manager and a divisional
1. Economies of scale can be realized. manager.
2. Monitoring of the environment is more effective.
Centralized Organization 3. Performance standards are better maintained. Exhibit 7.8 Matrix Organizational Structure
- An organization in which high-level executives make 4. There is greater opportunity for specialized training
most decisions and pass them down to lower levels for and in-depth skill development.
implementation. 5. Technical specialists are relatively free of
administrative
Decentralized Organization 6. work.
- An organization in which lower level managers make 7. Decision making and lines of communication are simple
important decisions. and clearly understood.
- Allows people to take faster action.
- Decentralizing Spreads Decision-Making Power Divisional Organization
- Departmentalization that groups units around products,
The Horizontal Structure customers, or geographic regions.

Subdivisions Exhibit 7.7 The Divisional Organization

- Line departments are units that deal directly with the Advantages of the Matrix Structure
organization’s primary goods and services. 1. Cross-functional problem solving leads to
- Staff departments are units that support line better-informed and more creative decisions.
departments. 2. Decision making is decentralized.
- Include research, legal, accounting, public 3. Extensive communications networks help process large
relations, and human resources departments. amounts of information.
4. Higher management levels are not overloaded with
operational decisions.
Three basic approaches to departmentalization: functional, 5. Resource utilization is efficient.
divisional, and matrix. 6. Employees learn collaborative skills.
7. More career options become available.
 - Violates the unity-of-command principle.

Network Organization Standardization Exhibit 7.10 Managing High Information-

- A collection of independent, mostly single-function - Establishing common routines and procedures that Processing Demands
firms that collaborate on a good or service. apply uniformly to everyone.
- Formalization: the presence of rules and regulations
Exhibit 7.9 Example of a Network Organization governing how people in the organization interact.
- Organizations of all types have established routines
and standard operating procedures so employees,
customers, and other stakeholders know how to act and
interact with one another.

Plans Set a Common Direction

Method of Coordination
With coordination by plan, interdependent units create
deadlines and objectives that contribute to a common goal.
Agility
- Allows some flexibility, as long as deadlines are met.
- Being able to act fast to meet customer needs and
respond to other outside pressures.
With coordination by mutual adjustment, units interact
- The best structures for agility depend on the
with one another to make accommodations to achieve
organization’s strategy, customers, and technology.
Modular Network flexible coordination.
Strategies
- Temporary arrangements among partners that can be - Simplest and most flexible method.
- Organize around core capabilities.
assembled and reassembled to adapt to the - Good method for teams.
- Develop strategic alliances.
environment. - Make it take more time.
- Create a learning organization.
- Also called a virtual network.
- Participate in a high-involvement organization.
- Broker is a person who assembles and coordinates Coordination Requires Communication
participants in a network. Managing High Uncertainty and Heavy Information
Total Quality Management (TQM).
- Roles of a broker include designing, process Demands
- An integrative approach to management that supports
engineering, and nurturing. 1. Reduce the need for information.
the attainment of customer satisfaction through a wide
- Create slack resources.
variety of tools and techniques that result in
Organizational Integration - Create self-contained tasks.
high-quality goods and services.
Integration and Coordination 2. Increase information-processing capability.
- Six sigma quality approach analyzes defects.
- The more differentiated the organization, the more - Invest in information systems.
- ISO 9001 is a series of voluntary quality standards
difficult the integration. - Engage in knowledge management.
developed by a committee working under the
- Division of labor causes different units to develop
International
different orientations.
- Managers can use a variety of approaches to foster
Exhibit 7.11 Deming’s 14 Points of Quality:
coordination among interdependent units and people.
 1. Create constancy of purpose—strive for long-term - System of organizational activities to attract, develop,
improvement (vs. short-term profit). and motivate an effective and qualified workforce.
2. Adopt the new philosophy—don’t tolerate delays and Organizing for Flexible Manufacturing - Also known as talent, human capital, or personnel
mistakes. Mass Customization management.
3. Cease dependence on mass inspection—build quality - It allows organizations to try to produce both - Plays a vital strategic role as organizations attempt to
into the process on the front end. high-volume and high-variety products at the same time. compete through people
4. End the practice of awarding business on price tag - Computer integrated manufacturing (CIM)
alone—build long-term relationships. helps make mass customization possible. Strategic Impact of HR
5. Improve constantly and forever the system of - Flexible factories provide more production - People create value.
production and service—at each stage. options and a variety of products. - Talent is rare.
6. Institute training and retraining—continually - Well-chosen, motivated people are difficult to imitate.
updating methods and thinking. Lean Manufacturing - People can be organized for success
7. Institute leadership—provide the resources needed - It strives for the highest possible productivity and
for effectiveness. total quality, cost effectively, by eliminating HR Planning Involves Three Stages
8. Drive out fear—people must believe it is safe to report unnecessary steps in the production process and HR Planning
problems or ask for help. continually striving for improvement. - Planning: HR managers must know the company’s
9. Break down barriers among departments—promote business plans.
teamwork. Organizing for Speed - Programming: HR managers implement specific
10. .Eliminate slogans and arbitrary targets—supply Just-in-time (JIT) activities.
methods, not buzzwords. - system calls for subassemblies and components to be - Evaluating: HR managers evaluate whether activities
11. Eliminate numerical quotas—they are contrary to the manufactured in very small lots and delivered to the are producing results needed to pursue business plans.
idea of continuous improvement. next stage of production process just as they are
12. Remove barriers to pride in work—allow autonomy needed. Exhibit 8.1 HR Planning Process
and spontaneity. - Companywide philosophy oriented toward eliminating
13. Institute a vigorous program of education and waste and improving materials throughout all Planning HR Programming HR Evaluating Results
retraining—people are assets, not commodities. operations. Environmental Activities • Productivity •
14. Take action to accomplish the - Many believe this practice will continue to grow as it is Scanning • Recruitment Quality
• Labor markets • Selection • Innovation
transformation—provide a structure that enables applied more to services, distribution, and new-product
• Technology • Diversity and • Satisfaction
quality. development. • Legislation inclusion • Turnover
• Competition • Training and • Absenteeism
Technology • Economy development • Health
• Performance
- The systematic application of scientific knowledge to a
HR Planning appraisal
new product, process, or service. • Demand forecast • Reward systems
- Basic technology configurations, according to research • Internal labor supply • Labor relations
by Woodward: M2S2 - Managing Human Resource • External labor
supply
- Small batch technologies.
• Job analysis
- Large batch technologies. Strategic Human Resources Management
- Continuous process technologies. Human Resources Management (HRM)
 - Internet job boards, company websites,
employee referrals, newspaper advertisements,
Demand Forecasts and college campus recruiting.
- Determining how many and what type of people are - Networking sites and employment agencies.
needed. Exhibit 8.2 Sample Measures of Cognitive Ability
Recruitment Through Networking
Labor Supply Forecasts - LinkedIn, the popular online professional networking
- Forecasting how many and what types of employees are site, has hundreds of million members in more than 100
available. countries.
- Includes projecting workforce demographic trends.
Selecting the Best Hire
Reconciling Supply and Demand Selection
- When managers need to hire, they can use fair and - Choosing from among qualified applicants to hire into
competitive compensation policies to attract talent. an organization.

Job Analysis Selection Methods

- A tool for determining what is done on a given job and Applications and résumés.
what should be done on that job. Interviews.
- Two elements: - Unstructured or nondirective interview: interviewer
- Job description—describes the essential tasks, asks different interviewees different questions. Reliability and Validity Are Essential
duties, and responsibilities involved in - Structured interview: interviewer asks all applicants Reliability
performing the job. the same questions and compares their responses to a - The consistency of test scores over time and across
- Job specification — describes the knowledge, standardized set of answers alternative measurements.
skills, abilities, and other characteristics - Two basic types are a situational interview and a
(KSAOs) needed to perform the job. behavioral description interview Validity
Selection Methods continued - The degree to which a selection test predicts or
Staffing the Organization - Reference checks. correlates with job performance.
- Background checks. - Criterion-related validity is the degree to which a test
Recruitment - Personality tests. actually predicts or correlates with job performance.
- The development of a pool of applicants for jobs in an - Drug testing. - Content validity concerns the degree to which selection
organization. - Cognitive ability tests. tests accurately measure a representative sample of
- Internal recruiting has the advantage that employers - Performance tests. the knowledge, skills, and abilities required for the job
know their employees, and employees know their - May utilize an assessment center.
organization. - Integrity tests. Sometimes Employees Must Be Let Go
- External recruiting brings in “new blood” and can Layoffs
inspire innovation. - May involve downsizing or restructuring.
- Outplacement helps dismissed people regain
employment elsewhere.
 neutral employment practice has a disproportionately
Termination negative effect on a protected group.
- May involve poor performance or other reasons. - Many companies have procedures to ensure compliance Management Development Programs
- Employment-at-will: legal concept that an employee may with labor and equal opportunity laws. - Training for new or experienced managers, often
be terminated for any reason. focused on leadership and other “people skills.”
- Termination interview: the manager discusses a Training and Development
dismissal decision with the employee. Training Performance Appraisal (PA)
- Teaching lower-level employees how to perform their - Assessment of an employee’s job performance.
Exhibit 8.3 Practical Guidelines for Conducting a current jobs. Purposes:
Termination Interview - Administrative.
Development - Developmental.
- Do provide written explanations of severance benefits. - Helping managers and professional employees learn the
- Do provide outplacement services away from company broad skills needed for their present and future jobs. What Do You Appraise?
headquarters. Programs Include Four Phases - Three Basic Categories of Employee Performance
- Do be sure the employee hears about the termination - Trait appraisals.
from a manager, not a colleague. Needs assessment. - Behavioral appraisals.
- Do express appreciation for what the employee has - Analysis identifying the jobs, people, and departments - Results appraisals.
contributed, if appropriate. that need training. - Management by objectives (MBO) involves a
- Don’t leave room for confusion when firing. Tell the - Design the program. subordinate and a supervisor agreeing in
individual in the first sentence that he or she is - Delivery methods decisions. advance on specific performance goals
terminated. - Evaluate effectiveness. (objectives).
- Don’t allow time for debate during a termination
session. Common Objectives and Topics Exhibit 8.6 Example of BARS Used for Evaluating Quality
- Don’t make personal comments when firing someone; Orientation Training
keep the conversation professional. - Training designed to introduce new employees to the
- Don’t rush a fired employee off site unless security is company and familiarize them with policies,
an issue. procedures, culture, and the like.
- Don’t fire people on significant dates, like the 25th
anniversary of their employment or the day their Team Training
mother died. - Training that provides employees with the skills and
perspectives they need to collaborate with others.
Legal Issues and Equal Employment Opportunity
Laws Governing Employment Diversity Training
- Managers must be familiar with Equal Employment - Programs that focus on identifying and reducing
Opportunity laws to follow best practices and avoid hidden biases against people with differences and
punishments for noncompliance. developing the skills needed to manage a diversified
- One common reason employers are sued for workforce.
discrimination is adverse impact—when a seemingly
 - Unemployment insurance.

Who Should Do the Appraisal? Exhibit 8.7 Pay Structure Cafeteria or Flexible Benefit Programs
- Employees choose from a menu of options to create a
Several Sources benefit package tailored to their needs.
- Managers and supervisors traditionally. - Employees are given credits to spend on benefits that
- Peers and team members fit their unique needs.
- Subordinates.
- Internal and external customers. It’s More Than Salary
- Self-appraisals. - Workers consider not only salary, but also
- 360-degree appraisal: process of using multiple environment, culture, and benefits in making their
sources of appraisal to gain a comprehensive employment decisions.
perspective on one’s performance.
Pay and Benefits Must Meet Legal Requirements
How Do You Give Employees Feedback? Legal Requirements
Giving Performance Feedback - The Equal Pay Act (EPA) of 1963 prohibits unequal pay
- Be specific and constructive. Designing Reward Systems for men and women who perform equal work.
- Allow employee to ask questions and respond. - Incentive Pay Encourages Employees to Perform - Some states have considered developing comparable
- Individual incentive plans compare a worker’s worth laws.
When employee performance is below standards: performance against an objective standard. - Some laws regulate benefit practices.
1. Summarize the employee’s specific performance. - Group incentive plans are based on group performance.
2. Describe expectations and standards. - Gainsharing and profit-sharing plans.
3. Determine causes for low performance. - Merit pay bases raises and bonuses on merit ratings.
4. Discuss solutions to the problem. Employers Must Protect Health and Safety
5. Agree to a solution. Executive Pay Is Controversial Occupational Safety and Health Act (OSHA)
6. Agree to a timetable. CEO Compensation - Requires employers to pursue workplace safety by
7. Document the meeting - Wide gap between executives’ pay and average maintaining records of injuries and deaths caused by
employee pay. workplace accidents and submitting to onsite
Designing Reward Systems - Bigger differences relate to stronger firm inspections.
- Pay Decisions Consider the Company, Position, and performance in the short term but worse performance - Safety of young workers is of particular concern.
Individual in the long run.
- Structure considerations: - Fastest-growing part of executive compensation comes Labor Relations
- Internal factors. from stock grants and stock options. - The system of relationships and interactions between
- External factors. workers and management.
- These basic decisions: Employees Get Benefits, Too
- Pay level. Three Benefits Required by Law What Labor Laws Exist?
- Pay structure. - Workers’ compensation. - National Labor Relations (Wagner) Act.
- Individual pay decisions - Social Security. - Labor-Management Relations (Taft-Hartley) Act.
 - Labor-Management Reporting and Disclosure - When companies recognize that success depends on the
(Landrum-Griffin) Act talents and energies of employees, the interests of
unions and managers begin to converge.
How Do Employees Form Unions?
Unionization
- Begins when a union organizer or local rep describes to
workers benefits they may receive by joining.
- If 30 percent or more of workers agree, the National
Labor Relations Board (NLRB) conducts an election by
secret ballot.

Why do workers join a union?

- Economic factors.
- Job dissatisfaction.
- Belief that union has power to obtain desired benefits.
- Image of the union.

How Is Collective Bargaining Conducted?

Collective Bargaining
- Periodic negotiation concerning wage, benefits, hours
and working conditions.
- After agreement is signed, parties may disagree over
its interpretation, and settle through arbitration.
- A union shop is an organization with a union and a
union security clause specifying that workers must join
the union after a set period of time.
- A right-to-work state has legislation that allows
employees to work without having to join a union.

What Does the Future Hold?

The Future of Unions
- Union membership has declined to about 10.5 percent
overall of the U.S. labor force.
- Down from a peak of over 33 percent at the
end of World War II.
- May be attributable partly to improved
effectiveness of the HR function.