ENGINEERING MANAGEMENT REVIEWER (PRELIMS TO FINALS)

KEY TERMS AND DEFINITIONS

PRELIMS

MODULE 1 - "Introduction to Management and Organizations"

Management and Managers

• Manager: An individual who works with and through others to coordinate work activities
to accomplish organizational goals.
• Management: The process of coordinating and integrating work activities efficiently and
effectively with and through other people.
• Engineering Management: Combines technical knowledge with the ability to organize
and coordinate resources (people, materials, machinery, and money).

Characteristics of Organizations
• Organization: A deliberate arrangement of people to achieve specific goals.
• Common Characteristics of Organizations:
o Have a distinct purpose (goal).
o Are composed of people.
o Have a deliberate structure.

Types of Managers
• First-line Managers: Manage the work of non-managerial employees.
• Middle Managers: Oversee the work of first-line managers.
• Top Managers: Responsible for making organization-wide decisions and establishing
goals.

Four Functions of Management

1. Planning: Defining goals, establishing strategies to achieve them, and developing plans
to coordinate activities.
2. Organizing: Arranging work to achieve organizational goals.
3. Leading: Working with and through people to accomplish goals.
 4. Controlling: Monitoring, comparing, and correcting work performance.

Essential Managerial Skills

• Technical Skills: Proficiency in a specific field.
• Human Skills: Ability to work well with others.
• Conceptual Skills: Ability to think about and solve complex organizational issues.

Efficiency and Effectiveness in Management

• Efficiency: Doing tasks correctly ("doing things right").
• Effectiveness: Completing activities that achieve organizational goals ("doing the right
things").

Challenges to Managing
1. Ethics: Emphasis on ethics education and the use of codes of ethics.
2. Workforce Diversity: Managing a heterogeneous workforce with varied gender, ethnic,
and other forms of diversity.
3. Globalization: Navigating political and cultural challenges in a global market.
4. E-business:
o Categories:
▪ E-business-enhanced organizations.
▪ E-business-enabled organizations.
▪ Total e-business organizations.
5. Customer Service: Delivering high-quality service and creating customer-responsive
organizations.
6. Innovation: Encouraging creativity, exploring new opportunities, and risk-taking.
7. Knowledge Management: Developing a learning culture to systematically gather and
share knowledge.
o Learning Organization: Continuously learns, adapts, and changes.

Types of Organizations
• Publicly held organizations
• Privately held organizations
• Public sector organizations
 • Crown corporations
• Subsidiaries of foreign organizations

Entrepreneurship
• Definition: Organized effort to create value and grow through innovation and
uniqueness.
• Process:
o Pursuing opportunities.
o Innovating in products, services, or business methods.
o Striving for continual organizational growth.

Why Study Management?

1. Universality of Management: Relevant in all organizations, regardless of size, type, or
location.
2. Reality of Work: Employees either manage or are managed.
3. Entrepreneurship: Necessitates management skills for innovation and growth.

MODULE 2 – "Social Responsibility and Ethics"

Social Responsibility
• Social Responsibility: A business’s obligation beyond legal and economic requirements
to pursue long-term goals beneficial to society.

Views of Social Responsibility

1. Classical View: Management’s primary responsibility is to maximize profits for
shareholders.
2. Socioeconomic View: Management’s responsibility extends beyond profits to include
protecting and improving society’s welfare.

Approaches to Social Responsibility

• Organizations adopt various strategies to balance social obligations and societal welfare.
These include minimally meeting legal requirements or radically transforming products
and processes to support societal well-being.
Green Management
• Green Management: When managers consider the environmental impact of their
organizations.
• Shades of Green:
o Legal Approach: Fulfilling legal obligations.
o Market Approach: Responding to customer preferences.
o Stakeholder Approach: Addressing stakeholders’ environmental concerns.
o Activist Approach: Actively promoting environmental sustainability.

Evaluating Green Management

• Global Reporting Initiative
• ISO 14000 Standards
• Global 100 Most Sustainable Corporations

Managerial Ethics
• Ethics: Principles, values, and beliefs defining right and wrong behavior.
• Values-Based Management: Establishing and promoting shared organizational values
to guide behavior.
• Shared Values: Fundamental beliefs that guide decisions and behavior.

Views of Ethics
1. Utilitarian View: Decisions should maximize benefits for the greatest number.
2. Rights View: Decisions should respect individual liberties and privileges.
3. Theory of Justice: Decisions should follow legal rules and protect stakeholders’
interests.
4. Integrative Social Contracts Theory: Decisions should align with societal ethical
norms and specific community agreements.

Factors Influencing Ethical and Unethical Behavior

1. Stages of Moral Development:
o Preconventional: Decisions based on personal consequences.
o Conventional: Decisions based on societal expectations.
o Principled: Decisions based on individual moral values.
 2. Individual Characteristics:
o Values: Convictions about right and wrong.
o Personality:
▪ Ego Strength: Strength of personal convictions.
▪ Locus of Control: Belief in personal control over outcomes.
3. Structural Variables:
o Performance appraisal systems.
o Reward allocation systems.
o Managerial behavior.
4. Organizational Culture:
o High tolerance for risk, control, and conflict promotes ethical standards.
5. Issue Intensity: Importance of the ethical issue to the individual.

Enhancing Ethical Behavior

• Code of Ethics: Formal statement of values and rules guiding employee behavior.
• Effective Use:
o Develop and communicate the code regularly.
o Ensure management commitment.
o Discipline violators consistently.
• Ethical Leadership:
o Lead by example.
o Reward ethical behavior and discipline unethical behavior.
o Protect whistleblowers.
• Ethics Training:
o Enhances awareness of ethical issues.
o Reinforces standards of conduct.
o Builds confidence in ethically correct decisions.

Current Issues in Social Responsibility and Ethics

• Ethical questions related to bribery, use of company resources, and accepting gifts.
• Need for organizations to balance profitability with ethical and sustainable practices.
MODULE 3 – "Decision-Making"

Decision-Making
• Decision: A choice among two or more alternatives.
• Problem: An obstacle that makes achieving a desired goal or purpose difficult.
• Decision-Making: The process of choosing among alternatives by evaluating options to
select the most logical choice.

Steps in the Decision-Making Process

1. Identifying a Problem: Recognizing the discrepancy between an existing and a desired
condition.
2. Identifying Decision Criteria: Defining the standards or factors relevant to resolving the
problem (e.g., cost, quality).
3. Allocating Weights to Criteria: Assigning importance to each criterion.
4. Developing Alternatives: Creating a list of viable options.
5. Analyzing Alternatives: Evaluating each option based on the criteria and assigned
weights.
6. Selecting an Alternative: Choosing the option with the highest total evaluation.
7. Implementing the Alternative: Putting the decision into action, involving relevant
stakeholders.
8. Evaluating Decision Effectiveness: Assessing the decision outcome to determine if
the problem was resolved.

Types of Decisions
Programmed Decisions (for Structured Problems)
• Structured Problems: Clear, familiar, and easily defined.
• Types:
1. Procedure: Sequential steps to address the problem.
2. Rule: Explicit statements about what can or cannot be done.
3. Policy: General guidelines for decision-making, allowing interpretation by the
decision-maker.
Nonprogrammed Decisions (for Unstructured Problems)
• Unstructured Problems: New or unusual problems with ambiguous or incomplete
information.
 • Nonprogrammed Decisions: Custom-made solutions for unique problems.

Decision-Making Conditions
1. Certainty: Outcomes are known, enabling accurate decisions.
2. Risk: Probabilities can be assigned to outcomes based on historical data.
3. Uncertainty: Outcomes are unknown, and probabilities cannot be determined.
o Maximax: Maximizing the maximum possible payoff.
o Maximin: Maximizing the minimum possible payoff.
o Minimax Regret: Minimizing the maximum regret of a decision.

Decision-Making Styles
1. Linear Thinking: Using external data and facts to make rational decisions.
2. Nonlinear Thinking: Relying on internal insights, feelings, and intuition.

Ways Managers Make Decisions

1. Rational Decision-Making: Logical and consistent choices that maximize value.
2. Bounded Rationality: Accepting "good enough" solutions due to limitations in
processing information.
3. Intuitive Decision-Making: Using experience and judgment to make decisions.
4. Evidence-Based Management (EBMgt): Systematic use of reliable evidence to
improve decisions.

Decision-Making Biases and Errors

1. Overconfidence Bias: Overestimating knowledge and abilities.
2. Immediate Gratification Bias: Preferring immediate rewards over long-term benefits.
3. Anchoring Effect: Fixating on initial information.
4. Selective Perception Bias: Interpreting events based on personal biases.
5. Confirmation Bias: Favoring information that supports past choices.
6. Framing Bias: Highlighting certain aspects of a situation while excluding others.
7. Availability Bias: Giving undue weight to recent or vivid events.
8. Representation Bias: Assessing likelihood based on similarity to other events.
9. Randomness Bias: Attributing meaning to random events.
 10. Sunk Costs Error: Focusing on past expenditures rather than future consequences.
11. Self-Serving Bias: Attributing success to oneself and failure to external factors.
12. Hindsight Bias: Believing one could have predicted an outcome after it is known.

Managerial Decision-Making Techniques

• Use logical frameworks and structured approaches to improve decision quality.
• Apply evidence-based practices to ensure reliability and effectiveness.

MIDTERMS

MODULE 4 – “Planning”

1. What is Planning?
• Definition: Planning is the process of defining an organization’s goals, establishing
strategies to achieve those goals, and developing plans to coordinate and integrate work
activities.
• Purpose: It provides direction, purpose, and ensures efficient resource allocation
(people, capital, etc.).
• Scope: Planning deals with both ends (goals) and means (methods).

2. Types of Plans
Plans can be classified based on:
A) According to Breadth:
• Strategic Plans: Broad plans that apply to the entire organization and set its overall
goals.
• Operational Plans: Specific to particular operational areas, detailing goals and
responsibilities.
B) According to Time Frame:
• Long-Term Plans: Plans that extend beyond three years.
• Short-Term Plans: Plans that cover a period of one year or less.
C) According to Specificity:
• Specific Plans: Detailed and clearly defined with no room for interpretation.
 • Directional Plans: Flexible and provide general guidelines.
D) According to Frequency of Use:
• Single-Use Plans: Designed for one-time, unique situations or events.
• Standing Plans: Ongoing plans for recurring activities.
Other Types of Plans:
• Tactical Plans: Short- to medium-term plans to address specific opportunities or threats.
• Unit Plans: Departmental or team-based plans.
• Contingency Plans: Plans addressing possible future events with significant impact.
• Crisis Management Plans: Plans designed specifically to handle crises.
• Scenario Planning: Based on "what if" scenarios to prepare for uncertain future events.

3. Steps in Planning
1. Choose Goals: Set organizational goals.
2. Identify Actions: Determine the actions necessary to achieve the goals.
3. Allocate Responsibilities: Assign tasks to individuals or teams.
4. Review Performance: Evaluate progress towards goals.
5. Make Adjustments: Adjust plans based on performance review.

4. Steps in Scenario Planning

• Identify possible future scenarios and plan responses.
• Consider different external factors like market trends and global events.
Common Scenario Planning Traps:
• Treating scenarios as forecasts.
• Focusing on too narrow a scope.
• Treating scenarios as informational rather than strategic.

5. The Strategic Planning Process

Key Components:
• Mission: The organization's purpose.
• Vision: The desired future state of the organization.
• Values: The guiding principles of the organization.
 • Goals: Desired outcomes or targets to be achieved.
Characteristics of Well-Written Goals:
• Precise and measurable.
• Address important issues.
• Realistic but challenging.
• Include a time period for completion.
• Written in terms of outcomes rather than actions.
• Communicated to all relevant members.
Steps in Goal Setting:
1. Review the organization’s mission.
2. Evaluate resources.
3. Set individual or group goals.
4. Document and communicate goals.
5. Review progress and results.

6. Why Care About Planning?

• Importance: Good planning can improve organizational performance, while poor
planning can lead to significant issues.
• Without Planning:
o Lack of purpose and strategy.
o Disjointed efforts and conflicting strategies.
o Inefficient resource allocation.
o Difficulty in controlling and assessing performance.

7. Limitations of Planning
• Planning does not guarantee perfect outcomes.
• Unforeseen circumstances may require adjustments to plans.
• Many decisions are made in response to unexpected events, but coordinated action is
still necessary.
MODULE 5 – “Organizing”

1. What is Organizing?
• Definition: The management function of arranging and structuring work to achieve
organizational goals.
• Purpose:
o Divides work into jobs and departments.
o Coordinates diverse tasks.
o Clusters jobs into units.
o Establishes relationships and formal authority lines.
o Allocates resources.

2. Key Terms and Concepts

• Organizational Structure: The formal arrangement of jobs within an organization.
• Organizational Chart: A visual representation of the organizational structure.
• Organizational Design: The process of developing or changing an organization’s
structure, focusing on six key elements:
o Work Specialization: Division of tasks into specific jobs.
o Departmentalization: Grouping jobs to achieve goals. Types:
1. Functional: By job functions (e.g., marketing, finance).
2. Product: By product line.
3. Geographical: By location.
4. Process: By production or customer flow.
5. Customer: By customer types or needs.
o Chain of Command: Clarifies reporting relationships.
▪ Authority: Rights to make decisions and command.
▪ Responsibility: Obligation to perform tasks.
▪ Unity of Command: Each employee reports to one manager.
o Span of Control: Number of employees a manager supervises.
o Centralization and Decentralization:
▪ Centralization: Decision-making concentrated at the top.
▪ Decentralization: Decision-making distributed to lower levels.
 ▪ Influenced by environment, organizational size, and complexity.
o Formalization: Standardization of jobs and employee behavior.

3. Organizational Models
Traditional Designs
1. Simple Structure:
o Low departmentalization, centralized authority, minimal formalization.
2. Functional Structure:
o Departmentalization by functions (e.g., HR, finance).
3. Divisional Structure:
o Composed of semi-autonomous units or divisions.
Contemporary Designs
1. Team Structures:
o Work groups or self-managed teams.
2. Matrix Structures:
o Employees report to both functional and project managers.
3. Project Structures:
o Employees continuously work on projects.
4. Boundaryless Organization:
o Removes traditional barriers within and outside the organization.
o Includes Virtual, Network, and Modular organizations.
5. Learning Organization:
o Focused on adaptability, innovation, and knowledge sharing.

4. Contrasting Mechanistic and Organic Organizations

• Mechanistic Organizations:
o Rigid and hierarchical.
o Suitable for stable environments.
• Organic Organizations:
o Flexible and adaptive.
o Effective in dynamic and uncertain environments.
5. Contingency Factors Affecting Structure
1. Strategy:
o Innovation favors organic structures.
o Cost minimization suits mechanistic structures.
o Imitation blends both models.
2. Size:
o Larger organizations tend towards mechanistic designs.
3. Technology:
o Routine tasks: Mechanistic structures.
o Non-routine tasks: Organic structures.
4. Environment:
o Stable environments: Mechanistic structures.
o Dynamic environments: Organic structures.

6. Characteristics of Organizational Design Types

Line vs. Staff Authority:
• Line Managers: Directly involved in essential activities (e.g., production, sales).
• Staff Managers: Advisory roles without direct command outside their departments.
Acceptance Theory of Authority:
• Authority is accepted when:
1. Orders are understood.
2. Orders align with the organization’s goals.
3. Orders do not conflict with personal beliefs.
4. Orders are achievable.
Span of Control Influencers:
• Task complexity and standardization.
• Manager and employee skills.
MODULE 6 – "Human Resources Management"

1. What is Human Resource Management (HRM)?

• Definition: HRM involves activities for staffing the organization, sustaining high
employee performance, and making human resources a competitive advantage.
• Importance:
o Ensures the organization has competent and high-performing employees.
o Helps establish sustainable competitive advantages.
o Leads to high individual and organizational performance.

2. Key Processes in HRM

A. HR Planning
• Definition: Ensuring the right people are in the right roles at the right time.
• Steps:
1. Assess current human resources.
2. Assess future needs and develop a program to address them.
• Key Terms:
o Human Resource Inventory: Database of employee details like skills and
experience.
o Job Analysis: Assessment of job roles and required skills.
o Job Description: Written duties and responsibilities of a role.
o Job Specification: Minimum qualifications needed for a role.
B. Staffing the Organization
• Recruitment: Locating and attracting capable candidates (e.g., e-recruiting).
• Decruitment: Reducing surplus staff through layoffs, attrition, or job sharing.
• Selection: Screening and hiring the most suitable candidates.
o Selection Devices:
▪ Application forms, written tests, performance simulations, interviews.
o Selection Validity: Proven link between the selection method and job
performance.
o Selection Reliability: Consistency of results from the selection method.
C. Orientation
• Definition: Introducing new employees to the job and organization.
• Types:
1. Work-Unit Orientation: Focuses on work-unit goals and team integration.
2. Organization Orientation: Provides an overview of company objectives and
operations.
D. Training and Development
• Definition: Activities aimed at improving employee performance or knowledge.
• Types of Training:
o Interpersonal, technical, business, mandatory, performance management,
problem-solving, personal skills.
E. Performance Management
• Definition: Establishing and appraising employee performance.
• Appraisal Methods:
o Written essays, critical incidents, graphic rating scales, BARS, multi-person
comparisons, MBO, 360-degree feedback.
F. Compensation and Benefits
• Components:
o Base Wage/Salary: Fixed pay for work performed.
o Add-Ons: Overtime, night shift differentials, holiday pay.
o Incentives: Performance-based rewards like bonuses.
o Skill-Based Pay: Compensation based on skills demonstrated.
G. Career Development
• Definition: Helping employees plan and progress in their careers.
• Boundaryless Career: Focused on individual-defined progression and skills.

3. Contemporary Issues in HRM

A. Managing Downsizing
• Open communication and reassurance for remaining employees.
B. Workforce Diversity
• Emphasizing diverse recruitment and fair selection processes.
C. Sexual Harassment
 • Preventing unwelcome sexual advances and maintaining a safe work environment.
D. Work-Life Balance
• Providing family-friendly benefits like flextime, job sharing, and personal leave.

4. Environmental Factors Affecting HRM

• Labor Unions: Protect workers’ interests via collective bargaining.
• Legislation:
o Employment standards and anti-discrimination laws.
• Economic Trends:
o Influence on job stability, skill upgrades, and employment types.
• Demographics:
o Managing a workforce with diverse age groups (e.g., Baby Boomers, Gen X, Gen
Y).

MODULE 7 – “Communications Information Technology”

1. Communication: The transfer and understanding of meaning.

o Interpersonal Communication: Communication between two or more people.
o Organizational Communication: Patterns, networks, and systems of
communication within an organization.
2. Functions of Communication:
o Control: Regulates individual behavior.
o Motivation: Clarifies tasks and improves performance.
o Emotional Expression: Allows self-expression.
o Information: Facilitates decision-making and work execution.
3. Seven Elements of Communication Process:
o Sender, Message, Encoding, Channel, Decoding, Receiver, Feedback.
4. Barriers to Effective Communication:
o Filtering, Emotions, Information Overload, Selective Perception, Defensiveness,
Language, National Culture.
5. Organizational Communication:
 o Types: Formal and Informal.
o Flow Directions: Downward, Upward, Lateral, Diagonal.
6. Types of Communication Networks:
o Chain Network, Wheel Network, All-Channel Network.
o Grapevine: An informal organizational communication network.

Interpersonal Communication Methods:

• Verbal: Spoken or written words.
• Non-Verbal: Body language, gestures, facial expressions, and verbal intonation.
Overcoming Communication Barriers:
• Active listening, clarifying messages, and adapting to cultural differences.
Evaluating Communication Methods:
Criteria include feedback speed, confidentiality, cost, and formalities.

Information Technology (IT)

Benefits of IT:
• Improved monitoring, decision-making, collaboration, and accessibility.
Types of Network Systems:
1. Intranet: Internal network for employees.
2. Extranet: Internal network for external authorized users.
3. Wireless Capabilities: Includes signals like radio waves and satellite communication.
How IT Affects Organizations:
• Eliminates time/distance constraints, facilitates information sharing, and integrates
decision-making.

Ethical Concerns with IT:

• Lack of privacy in email/voice mail usage and the need for clear company policies.

Current Issues in Communication:

1. Customer Service Communication:
o Recognize the roles of customers, service providers, and service organizations.
o Personalize service and listen/respond effectively.
 2. Politically Correct Communication:
o Avoid stereotyping, intimidation, or offending language.
o Ensure clarity in word choices.

FINALS

MODULE 8 – “Motivation”

1. Motivation:
o The process of energizing, directing, and sustaining efforts to achieve
organizational goals while satisfying individual needs.
2. Three Elements of Motivation:
o Effort: Intensity or drive.
o Direction: Alignment with organizational goals.
o Need: Personalized reasons for persistence.

Early Theories of Motivation

1. Maslow's Hierarchy of Needs:
o Five levels:
▪ Physiological: Basic needs (food, water, shelter).
▪ Safety: Security and protection.
▪ Social: Relationships, belonging.
▪ Esteem: Respect, recognition.
▪ Self-actualization: Personal growth, fulfillment.
o Lower-order needs (external): Physiological, Safety.
o Higher-order needs (internal): Social, Esteem, Self-actualization.
2. McGregor's Theory X and Theory Y:
o Theory X: Negative view; assumes employees dislike work, avoid responsibility,
need supervision.
o Theory Y: Positive view; assumes employees enjoy work, seek responsibility,
self-direct.
 3. Herzberg's Two-Factor Theory:
o Hygiene Factors: External factors that prevent dissatisfaction.
o Motivators: Internal factors that drive satisfaction and motivation.
4. Three-Needs Theory (McClelland):
o Need for Achievement (nAch): Drive to succeed.
o Need for Power (nPow): Influence behavior of others.
o Need for Affiliation (nAff): Desire for relationships.

Contemporary Theories of Motivation

1. Goal-Setting Theory:
o Specific and challenging goals enhance performance.
o Conditions: Goal commitment, self-efficacy, and cultural context.
2. Reinforcement Theory:
o Behavior is shaped by its consequences.
o Reinforcers: Positive outcomes that encourage repetition of behavior.
3. Job Design Theory:
o Job Enlargement: Increasing task variety.
o Job Enrichment: Adding responsibility and autonomy.
o Job Characteristics Model (JCM): Five elements—Skill variety, Task identity,
Task significance, Autonomy, Feedback.
4. Equity Theory:
o Focus on fairness in input-output ratio compared to others.
o Includes Distributive Justice (fair rewards) and Procedural Justice (fair
processes).
5. Expectancy Theory:
o Performance depends on:
▪ Expectancy: Effort → Performance.
▪ Instrumentality: Performance → Outcome.
▪ Valence: Attractiveness of outcome.

Current Issues in Motivation

1. Cross-Cultural Challenges:
 o Differences in value systems affect motivational strategies.
2. Motivating Unique Groups:
o Flexible work arrangements (compressed workweek, flextime, telecommuting).
o Motivating professionals: Focus on challenges and career growth.
o Motivating contingent and low-skilled workers: Recognition and equitable
rewards.
3. Reward Systems:
o Open-Book Management: Employees access financial info for better decision-
making.
o Pay-for-Performance: Rewards tied to performance.
o Stock Option Programs: Financial incentives through company shares.

Practical Suggestions for Motivation

1. Recognize individual differences in needs and preferences.
2. Match jobs to employees' skills and goals.
3. Individualize rewards based on employee values.
4. Ensure fairness and equity in reward systems.
5. Use recognition as a cost-effective motivator.
6. Link rewards directly to performance outcomes.

Basic Principles of Motivation

• Start by motivating yourself.
• Align organizational goals with employee goals.
• Understand and support what motivates each employee.
• Treat motivation as an ongoing process.
• Leverage organizational systems for consistency.

MODULE 9 – “Leadership”
1. Leader: A person who influences others and possesses managerial authority.
2. Leadership: The process of leading and influencing a group to achieve goals.
Early Leadership Theories
1. Trait Theories:
o Attempt to identify traits that distinguish leaders from non-leaders.
o Seven Traits Associated with Leadership:
▪ Drive, Desire to Lead, Honesty and Integrity, Self-confidence, Intelligence,
Job-relevant Knowledge, Extraversion.
2. Behavioral Theories:
o Focus on behaviors that differentiate effective leaders.
o Four Main Studies:
▪ University of Iowa: Leadership styles (Autocratic, Democratic, Laissez-
faire).
▪ Ohio State: Initiating Structure and Consideration.
▪ University of Michigan: Employee-Oriented vs. Production-Oriented.
▪ Managerial Grid: Concern for People vs. Concern for Production.

Contingency Theories of Leadership

1. The Fiedler Model:
o Effectiveness depends on matching leadership style to situational control.
o Situational Factors:
▪ Leader-Member Relations: Trust and respect.
▪ Task Structure: Clarity of job assignments.
▪ Position Power: Authority level.
2. Hersey and Blanchard’s Situational Leadership Theory (SLT):
o Leadership style should match followers’ readiness.
o Leadership Styles:
▪ Telling, Selling, Participating, Delegating.
o Follower Readiness Levels:
▪ R1 (Unable and Unwilling) to R4 (Able and Willing).
3. Path-Goal Model:
o Leaders assist followers to achieve their goals while aligning with organizational
objectives.
o Leadership Behaviors:
 ▪ Directive, Supportive, Participative, Achievement-Oriented.

Contemporary Views of Leadership

1. Leader-Member Exchange (LMX) Theory:
o Leaders form in-groups and out-groups, influencing performance and
satisfaction.
2. Transformational-Transactional Leadership:
o Transactional: Goal-focused; rewards for productivity.
o Transformational: Inspires extraordinary outcomes.
3. Charismatic-Visionary Leadership:
o Charismatic Leaders: Visionary, risk-takers, influential.
o Visionary Leaders: Create and articulate a compelling future.
4. Team Leadership:
o Focus on collaboration, boundary management, and team facilitation.

Leadership Issues
1. Managing Power:
o Sources of Power:
▪ Legitimate, Coercive, Reward, Expert, Referent.
2. Developing Trust:
o Five Dimensions: Integrity, Competence, Consistency, Loyalty, Openness.
3. Empowering Employees:
o Increase decision-making discretion and support employee initiatives.
4. Leading Across Cultures:
o Adapt leadership styles to national culture; focus on universal traits like vision
and trust.
5. Gender Differences:
o Women often adopt participative and transformational styles, while men prefer
transactional leadership.
6. Becoming an Effective Leader:
o Develop through training and recognizing when leadership may not be
necessary.
MODULE 10 – “Controlling”

1. Controlling:
The process of monitoring, comparing, and correcting work performance to ensure
organizational goals are achieved.
2. Purpose of Control:
o To ensure activities align with organizational goals.
o Provides feedback to managers on progress and employee performance.
o Enhances workplace security and reduces disruptions.
3. Control Process:
A three-step process:
o Measuring Actual Performance: Gathering information on what has been
achieved.
o Comparing Performance to Standards: Identifying variances from goals.
o Taking Managerial Action: Correcting deviations or adjusting standards as
necessary.
4. Range of Variation:
Acceptable levels of deviation between actual performance and the standard.
5. Corrective Actions:
o Immediate Corrective Action: Fixes problems on the spot.
o Basic Corrective Action: Identifies root causes before addressing problems.
6. Organizational Performance:
o Performance: The end result of an activity.
o Organizational Performance: The cumulative outcomes of all organizational
activities.
7. Types of Control:
o Feedforward Control: Anticipates problems before activities begin.
o Concurrent Control: Monitors activities as they happen (e.g., direct
supervision).
o Feedback Control: Evaluates outcomes after activities are completed.
8. Financial Ratios (Control Tools):
o Liquidity Ratios: Assess the ability to meet short-term debts.
o Leverage Ratios: Measure the extent of debt used to finance assets.
o Activity Ratios: Evaluate the efficiency of asset use.
 o Profitability Ratios: Indicate how effectively assets are used to generate profit.
9. Balanced Scorecard:
A tool that evaluates performance across four perspectives:
o Financial
o Customer
o Internal Processes
o People/Innovation/Growth
10. Management Information System (MIS):
A system that provides managers with organized and relevant information for decision-
making.
11. Benchmarking:
The process of comparing organizational practices with those of industry leaders to
identify areas for improvement.
12. Corporate Governance:
The system by which a corporation is directed to protect shareholders' interests.

Types of Control
1. Feedforward Control:
o Focuses on preventing problems by addressing them before work begins.
o Example: Ensuring materials meet quality standards before production.
2. Concurrent Control:
o Takes place during work activities.
o Includes techniques like direct supervision or "management by walking around."
3. Feedback Control:
o Focuses on outcomes and evaluates results after completion.
o Example: Conducting a performance review at the end of a project.

Case Studies and Key Concepts

1. Deepwater Horizon Case:
o Illustrates the critical need for robust controls to prevent catastrophic failures.
o Failures in feedforward, concurrent, and feedback controls led to significant
environmental and financial damage.
2. Organizational Performance:
o Effective control systems improve productivity and organizational effectiveness.
 o Example: A company increasing efficiency by analyzing and improving
operational bottlenecks.
3. Workplace Issues in Control:
o Workplace Privacy: Monitoring employee use of company resources.
o Employee Theft: Implementing controls to reduce unauthorized taking of
company property.
o Workplace Violence: Identifying and addressing contributing factors like poor
communication and unresolved grievances.
4. Controlling Customer Interactions:
o The Service Profit Chain links employee satisfaction to customer loyalty and
profitability.
o Emphasizes creating a positive work environment to ensure excellent customer
service.

Contemporary Issues in Control

1. Cross-Cultural Differences:
o Controls must adapt to varying laws, regulations, and technological
advancements across countries.
2. Workplace Challenges:
o Managing privacy, theft, and violence.
o Ensuring transparency and ethical practices through strong corporate
governance (e.g., Sarbanes-Oxley Act).

MODULE 11 – “Operations Management”

1. Operations Management:
The transformation process that converts resources into finished goods and services.
2. Importance of Operations Management:
o Encompasses both services and manufacturing.
o Manages productivity effectively and efficiently.
o Plays a strategic role in achieving an organization’s competitive success.
3. Operations System:
The structure and flow of activities involved in transforming inputs (e.g., labor, materials)
into outputs (goods and services).
 4. Types of Organizations:
o Manufacturing Organizations: Produce physical goods.
o Service Organizations: Produce non-physical products (services).

Value Chain Management (VCM)

1. Value:
The performance characteristics, features, and attributes of goods or services for which
customers are willing to pay.
2. Value Chain:
The entire series of activities that add value at each step, from raw materials to the
finished product.
3. Value-Chain Management:
Managing the sequence of activities and information throughout the value chain.
4. Goal of Value-Chain Management:
To create strategies that exceed customer needs and seamlessly integrate all members
of the chain.
5. Benefits of Value-Chain Management:
o Improved procurement.
o Enhanced logistics.
o Better product development.
o Improved customer order management.

Current Issues in Managing Operations

1. Technology’s Role:
o Enhances efficiency through predictive maintenance, remote diagnostics, and
cost savings.
2. Quality Initiatives:
o Definition: The ability of a product or service to reliably meet expectations.
o Achieving Quality:
▪ Quality Planning: Setting goals, strategies, and plans.
▪ Organizing and Leading for Quality: Ensuring employees work toward
these goals.
▪ Controlling for Quality: Monitoring and evaluating progress.
3. Quality Goals:
 o ISO 9000: International standards for processes to ensure products meet
customer requirements.
o Six Sigma: A quality program aiming for no more than 3.4 defects per million
units.
4. Mass Customization and Lean Organization:
o Mass Customization: Providing products tailored to customer preferences.
o Lean Organization: Streamlining processes to eliminate activities that do not
add value from the customer’s perspective.

MODULE 12 – “Entrepreneurship”

1. Entrepreneurship:
The process of starting new businesses, generally in response to opportunities by
innovating, transforming, or introducing new products or services.
2. Entrepreneurial Ventures vs. Small Business:
o Entrepreneurial Ventures: Organizations focused on opportunities, innovation,
growth, and profitability.
o Small Business: Independently owned and operated, fewer than 100
employees, minimal innovation, and limited industry impact.
3. Innovation:
The process of experimenting, transforming, and revolutionizing, often serving as the
foundation for entrepreneurial activity.
4. Feasibility Study:
An analysis designed to determine the viability of a proposed entrepreneurial venture by
evaluating critical elements.
5. Business Plan:
A written document summarizing a business opportunity, including goals, strategies, and
financial projections.

Importance of Entrepreneurship
1. Innovation: Entrepreneurs act as agents of change, bringing untapped ideas to life.
2. New Start-Ups: Entrepreneurship is measured by the number of businesses started
over time.
3. Job Creation: Small businesses contribute significantly to net job creation.
The Entrepreneurial Process
1. Exploring the Context:
Understanding economic, political, social, and work environments.
2. Identifying Opportunities:
Finding competitive advantages and business potential.
3. Starting the Venture:
Researching, planning, organizing, and launching the business.
4. Managing the Venture:
Overseeing processes, people, and growth, and responding to challenges.

What Entrepreneurs Do
1. Assess venture potential and resolve start-up issues.
2. Research feasibility by analyzing competitors and financial options.
3. Develop a business plan, including mission, strategies, and projections.
4. Launch the venture with clear goals, marketing plans, and financial systems.
5. Manage growth, tackle crises, and explore exit strategies if necessary.

Issues and Challenges in Entrepreneurship

1. Social Responsibility and Ethics:
Balancing business goals with community and environmental responsibility.
2. Start-Up and Planning Issues:
o Identifying environmental opportunities and competitive advantages.
o Seven Sources of Opportunities (per Peter Drucker):
▪ Unexpected success or failure.
▪ Incongruities in appearances.
▪ Process needs and technological discoveries.
▪ Shifts in market structures.
▪ Changing demographics.
▪ Changes in perception.
▪ New knowledge.
3. Organizing Issues:
o Determining ownership structures:
▪ Sole Proprietorship
 ▪ General Partnership
▪ Limited Liability Partnership (LLP)
▪ Corporation (C Corporation, S Corporation)
▪ Limited Liability Company (LLC)
o Structuring the organization:
▪ Mechanistic: Efficient, stable environments.
▪ Organic: Innovative, dynamic environments.
4. Human Resource Management Issues:
o Recruiting and retaining employees.
o Empowering employees and developing leadership.
5. Controlling Issues:
o Planning, organizing, and managing growth.
o Recognizing crises and responding to downturns.
o Business valuation methods:
▪ Asset valuations.
▪ Earning valuations.
▪ Cash flow valuations.