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LECTURE NOTES

I. Basic management functions have been around “forever.” However, we learn more about management as time goes on and things change that require adjustments, or sometimes, quite different ways of doing things. This chapter studies past management thought and practice so that we can learn the things that work well, in which situations, and the reasons that they do. The chapter also encourages us to keep looking for changes that will require adjustments so that we can continue to improve our knowledge about management.

II. Environmental Factors Influencing Management Thought. Major factors that influence management thought are:

A. Economic influences related to the availability, production, and distribution of resources within society.

B. Social influences. These are the factors that relate to the aspects of a culture that influence interpersonal relationships.

C. Political influences; the factors that relate to the impact of political institutions on individuals and organizations.

D. Technological influences relate to advances and refinements in any of the devices used in conjunction with conducting business.

E. Global influences; those that relate to the pressures to improve quality, productivity, and costs as organizations attempt to compete in a worldwide marketplace.

Note: Refer to both UPS (Facing the Challenge/Meeting the Challenge) and Harley-Davidson (At the Forefront) for examples of how organizations have changed, essentially forced to change in Harley-Davidson’s case, as factors in the overall environment have changed. To update this idea, refer to the major changes taking place now in how businesses are reporting their financial activities and how Boards of Directors have had to change as a result of the problems that were highlighted by companies such as Enron,

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