BUS 137 Principles of Management My Maria Rivera

3-5-V Which of the following is not protected by a U.S. Federal​ law?

GLBT U.S. Federal law does not prohibit discrimination against employees on the basis of sexual orientation.

Management Levels

Top Managers Middle Managers First-Line Managers Team Leaders

What Decision-Making Conditions Do Managers Face?

When making decisions, managers face three different conditions: certainty, risk, and uncertainty.

Common Errors 12

When managers make decisions, they not only use their own particular style but also may use "rules of thumb" or judgmental shortcuts called heuristics to simplify their decision making. However, rules of thumb are not necessarily reliable and can lead managers into error while processing and evaluating information. Exhibit 4-5 shows 12 common decision errors and biases: 1. Overconfidence - occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance 2. Immediate gratification describes decision makers who want immediate rewards but want to avoid immediate costs. For these individuals, decision choices that provide quick payoffs are more appealing than those with payoffs in the future. 3. The anchoring effect describes when decision makers fixate on initial information - such as first impressions ideas, prices, and estimates - and then fail to adequately adjust for subsequent information. 4. Selective perception occurs, when decision makers organize and interpret events based on their biased perceptions, which influence the information they pay attention to, the problems they identify, and the alternatives they develop. 5. Confirmation bias describes decision makers who seek out information that reaffirms their past choices and who discount information that contradicts past judgments. Such people tend to accept at face value information that confirms their preconceived views and are critical and skeptical of information that challenges these views. 6. The framing bias occurs when decision makers select and highlight certain aspects of a situation while excluding others. By drawing attention to specific aspects of a situation and highlighting them, they downplay or omit other aspects, distort what they see, and create incorrect reference points. 7. The availability bias occurs when decision makers focus on events that are the most recent and vivid in their memory. As a result, their ability to recall events objectively results in distorted judgments and probability estimates. 8. Representation bias describes how decision makers assess the likelihood of an event based on how closely it resembles other events and then draw analogies and see identical situations where they don't necessarily exist. 9. The randomness bias describes when decision makers try to create meaning out of random events. 10. The sunk costs error occurs when decision makers forget that current choices can't correct the past. They incorrectly fixate on past expenditures of time, money, or effort rather than on future consequences when they assess choices. 11. Decision makers exhibiting self-serving bias take credit for their successes and blame failures on outside factors. 12. Finally, the hindsight bias is the tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known. Awareness of these biases helps managers to avoid their negative effects and can encourage them to ask colleagues to identify weaknesses in their decision-making style that the managers can then self-correct.

mission

a statement of an organization's purpose

importing minimal investment and risk

acquiring products made abroad and selling them domestically

weaknesses

activities the organization doesn't do well or resources it needs but doesn't possess

23. Which demographic do managers pay closest attention to with respect to large-scale trends in the business world?

age

self-serving bias

decision makers who are quick to take credit for their successes and to blame failure on outside factors

What did the effect of a volcanic eruption in Iceland have on the production of Nissans in a plant in Japan illustrate?

how much organizations depend on their external environment

1-6 Jenny is well known throughout the organization for being a great motivator. She has mastered the art of building relationships and making her team feel empowered. Jenny is leveraging which of the following management​ skills?

interpersonal skills

decision criteria

once manager identifies problem needing attention the decision criteria that's important in solving the problem must be identified

Ch. 2 The Management Environment

organization's culture important indicator of "fit" of employee fit in/contribute organizational cultures differ so do people external environments organizations face dynamic external environment that surrounds it forces affecting way organizations managed today

3 Approaches Managers Can Use to Make Decisions?

plan lead org

specific plans

plans that are clearly defined and leave no room for interpretation

tactical plans

plans that specify the details of how the overall goals are to be achieved

long-term goals

plans with a time frame beyond three years

long-term plans

plans with a time frame beyond three years

short-term goals

plans with a time frame of one year or less

short-term plans

plans with a time frame of one year or less

32. Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore feels that success depends on the decisions that he and Janice make in the near future with respect to personnel. If they hire the "right" people, Theodore thinks the company will be successful. Which view of management does Theodore espouse?

the omnipotent view of management because success rides on the decisions of the managers

29. Marta has turned her attention to cultivating undergraduate students in the near future-three to five years from now. On which generation should she focus her attention?

the post-millennials, because they are of the age that is just beginning to enroll in college

Uncertainty avoidance

this dimension assesses the degree to which people in a country prefer structured over unstructured situations and whether people are willing to take risks

real goals

those goals an organization actually pursues as shown by what the organization's members are doing

focus strategy

when an organization competes in a narrow segment or niche with either a cost focus or a differentiation focus

cost leadership strategy

when an organization competes on the basis of having the lowest costs in its industry

How does concept of environmental complexity influence managers?

Degree of Change each of four cells represents different combinations of degree of complexity and degree of change

Bounded Rationality

Satisfice Escalation of commitment A more realistic approach Since most decisions that managers make don't fit the assumptions of perfect rationality, a more realistic approach to describing how managers make decisions is the concept of bounded rationality. This means that managers make decisions rationally but are limited (or bounded) by their ability to process information. Because they can't possibly analyze all information on all alternatives, managers satisfice, rather than maximize. That is, they accept solutions that are "good enough" Remember, that decision making is also influence by the organization's culture, internal politics, power considerations, and escalation of commitment, which is an increases commitment to a previous decision despite evidence that it may have been wrong.

risk

a situation which a decision maker is able to estimate the likelihood of certain outcomes

structured problem

a straightforward, familiar, and easily defined problem

decision criteria

factors that are relevant in a decision

3-1 When Montgomery Regional Hospital uses a radiologist in Egypt to read CAT​ scans, they are using what common​ practice?

global sourcing Global sourcing is purchasing materials or labor from around the​ world, whereever it is cheapest.

Factors Determine Ethical & Unethical Behavior

managers face ethical issues

directional plans

plans that are flexible and set general guidelines

standing plans

plans that are ongoing and provide guidance for activities performed repeatedly

opportunities

positive trends in the external environment

How much difference does a manager make in how an organization performs?

management theory proposes 2 perspectives in answering question * omnipotent view * symbolic view

Lab 1-1 Ross has taken a new job at a restaurant. He is now in charge of the lunch shift. He helps determine the​ menu, works on marketing the lunch​ specials, and leads a staff of 24. Which of the following best describes​ Ross's position?

manager

Types of Problems:

structured problem: straightforward, familiar, easily defined Unstructured problem: new or unusual for which information is ambiguous or incomplete

growth strategy

A corporate strategy in which an organization expands the number of markets served or products offered either through its current business(es) or through new business(es)

PROCEDURES

A procedure is a series of interrelated sequential steps that a manager can use when responding to a well-structured problem. The only real difficulty is identifying the problem. Once the problem is clear, so is the procedure. The decision-making process is merely executing a simple series of sequential steps.

RULES.

A rule is an explicit statement that tells a manager what he or she must—or must not—do. Rules are frequently used by managers who confront a structured problem because they're simple to follow and ensure consistency.

6. The first step for a manager to accomplish when setting goals is which of the​ following? A. Link rewards to goal B. Assess goal progress C. Review the​ organization's mission D. Communicate goals to all who need to know E. Work with others to set the goal

Correct. There are six steps in goal setting. The first step is to review the​ organization's mission and​ employees' key job tasks.

4-1 Describe the decision-making process

Decision making can be viewed as an eight-step process that involves identifying a problem, selecting an alternative, and evaluating the decision's effectiveness. This process can be used for making both individual and group decisions, and decisions that range from planning your spring break to complex planning for NASA. Process can used to describe both individual and group decisions.

Hofstede's Framework

Geert Hofstede's framework most widely used referenced approaches analyzing cultural variations work had major impact on what know about cultural differences among countries most data over 30 yrs old

Corporate Strategy Multibusiness Corporation

Specifies what businesses to be in and what to do with those businesses.

Planning

What are the organization's long-term objectives? What strategies will best achieve those objectives? What should the organization's short-term objectives be? How difficult should individual goals be?

Strategic Management

What managers do to develop an organization's strategies In the space of a week, here are a few headline makers: • • IBM reached a deal with The Weather Company to exploit opportunities for providing and distributing weather data. This type of data partnership is part of IBM's long-term strategy.

Decision Point: Becoming Organic: Selecting an Approach In Tri-State's region, "organic" is defined as lacking preservatives, pesticides, or other chemicals, and being non-destructive to the environment. What would be the best approach to becoming organic?

You selected that Tri-State products could be made entirely with organic ingredients. This was the best choice. It helps Tri-State products meet the definition of "organic."

Organization

a deliberate arrangement of people brought together to accomplish a specific purpose Common Characteristics of Organizations: * Goals * People * Structure Examples: your neighborhood convenience store The Dallas Cowboys football team Fraternities and sororities The Cleveland Clinic Global companies such as Nokia

13. Which of the following assets can be used as part of a sharing economy? cars, homes, skills, all

all of the above

transnational (borderless) organization

an MNC where artificial geographic boundaries are eliminated - country of origin or where business is conducted becomes irrelevant - increases efficiency and effectiveness in a competitive global marketplace i.e. sport utility vehicle Ford Escape made from common set components used in Ford cars around world

escalation of commitment

an increased commitment to a previous decision despite evidence that it may have been wrong

strengths

any activities the organization does well or any unique resources that it has

stakeholders

any constituencies in an organization's environment, that are affected by that organization's decisions and actions

Power Distance

as in original research GLOBE team defined this as degree to which members of a society expect power to be unequally shared High - Russia, Spain, Thailand Moderate - England, France, Brazil Low - Denmark, Netherlands, South Africa

confirmation bias

decision makers who seek out information that reaffirms their past choices and discount information that contradicts past judgments exhibit this - these people tend accept at face value information that confirms their preconceived views and are critical and skeptical of information that challenges these views

first dimension of uncertainty

degree of unpredictable change if components in an organization's environment change frequently = dynamic environment if change is minimal - stable

power distance

degree to which people in country accept that power in institutions and organizations distributed unequally. Ranges from relatively equal (low power distance) to extremely unequal (high power distance)

immediate gratification bias

describes decision makers who tend to want immediate rewards and to avoid immediate costs for these individuals, decision choices that provide quick payoffs are more appealing than those in future

3-6 A​ manager's ________ depends on their own​ morality, values,​ personality, and experiences.

ethical behavior Whether a manager behaves ethically depends on all of these variables.

Gender differentiation

extent to which a society maximizes gender role differences High - South Korea, Egypt, Morocco Moderate - Italy, Brazil, Argentina Low - Sweden, Denmark, Slovenia

2-1 What is external environment and why is it important

external environment refers to factors, forces, situations, events outside the organization that affect its performance One of the biggest mistakes managers make today is failing to adapt to the changing world i.e. Eyjafjallajokull volcano eruption Iceland shut down BMW Spartanburg plant & Nissan Motor auto assembly facility in Japan b/c volcanic ash grounded planes in Europe so tire-pressure sensors from Ireland couldn't be delivered on time to either plant live in "connected world" managers need to be aware of impact of external environment of their organization

3-2-V CH2M Hill seeks to put the best people on all of their project teams. You might well imagine that because engineering is often thought of as a stereotypical male​ profession, CH2M has difficulty with which of the following areas of​ diversity?

gender CH2M would be wise to consider the strengths brought to the international engineering firm by both males and females who represent the best engineers.

2-1 ​__________ is(are) an example of the external environment.

gender Gender is considered a demographic component of the external environment.

intuitive decision making

making decisions on the basis of experience, feelings, and accumulated judgment

Define what organizational culture is and explain why it's important

organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. It's important because of the impact it has on decisions, behaviors, and actions of organizational employees

long-term vss. short-term orientation

people in cultures with long-term orientations look to the future and value thrift and persistence. A short-term orientation values the past and present and emphasizes respect for tradition and fulfilling social obligations

Rudi's 1-2 Which of the following dimensions of organizational culture appears to be highest at​ Rudi's Organic​ Bakery?

people orientation The people orientation dimension of organizational culture refers to the degree to which management decisions take into account the effects of people in the organization. At​ Rudi's Organic​ Bakery, employees are a central part of the​ company's culture.

Nonmanagerial employees

people who work directly on a job or task and have no responsibility for overseeing the work of others may be called associates, team members, contributors, employee partners

Fayol - managers 5 functions POCCC

plan, organize, command, coordinate, control

code of ethics

popular tools for attempting to reduce employee ambiguity about what's ethical or not * formal document that states an organization's primary values and the ethical rules it expects managers and nonmanagerial employees to follow research shows 97% organizations w/ more than 10,000 have written codes of ethics even smaller organizations, nearly 93% have them Research by the Institute for Global Ethics says shared values such as honesty, fairness, respect, responsibility, and caring are embraced worldwide. effectiveness of codes depends whether management supports/ingrains them into corporate culture and how individuals who break the codes are treated

decision implementation

putting a decision into action

7. Global trade after the recent economic downturn has________

remained slow

What Are the Steps in the Strategic Management Process? strategic management process

six-step process that encompasses strategy planning, implementation, and evaluation. first four steps describe the planning that must take place, but implementation and evaluation are just as important! Even the best strategies can fail if managers don't implement or evaluate them properly.

1-10 Business decisions based on communicating openly with various stakeholders to understand their​ requirements, and factoring​ economic, environmental, and social aspects into how they pursue their​ goals, is more like to achieve​ __________.

sustainability

3-4 __________ is a​ company's ability to achieve its business goals and​ long-term shareholder value by integrating​ economic, environment, and social opportunities into its strategy.

sustainability Sustainability is a​ company's ability to achieve its business goals and increase​ long-term shareholder value by integrating​ economic, environment, and social opportunities into its business strategies.

33. Theodore and Janice have formed TH Soft entrepreneurial venture - games software - Janice loves the company but feels that the economy is too slow to expect any kind of overwhelming success this point in time , For now Janice just wants the company to survive. In a few years, the company perhaps can look forward to true success. Which view of management does Janice espouse?

symbolic view of management, because success rides on external factors such as the economy

2-3 Environmental ​________ refers to the degree of change and complexity in the​ organization's environment.

uncertainty The degree of change and complexity in an​ organization's environment is referred to as environmental uncertainty.

3-5 The​ _______ view is demonstrated by the​ phrase, "the ends justify the​ means."

utilitarian The utilitarian view says that ethical decisions are made solely on the basis of their outcomes.

Controlling Approach

- What activities in the organization need to be controlled? - How should those activities be controlled? - When is a performance deviation significant? - What type of management information system should the organization have?

Strong Cultures Can...

- substitute for formal rules and regulations - create predictability, orderliness, and consistency * The stronger an organization's culture, the less managers need to be concerned with developing formal rules and regulations. Instead, those guides will be internalized in employees when they accept the organization's culture. * If, on the other hand, an organization's culture is weak - if no dominant shared values are present - its effect on employee behavior is less clear.

Planning Approach

- what are the organization's long-term objectives? - what strategies will best achieve those objectives? - what should the organization's short-term objectives be? - how difficult should individual goals be?

Ch. 5 Learning Outcomes

- Discuss the nature and purposes of planning - Explain what managers do in the strategic management process - Compare and contrast approaches to goal setting and planning - Discuss contemporary issues in planning After studying this chapter, you will be able to: • Discuss the nature and purposes of planning. • Explain what managers do in the strategic management process. • Compare and contrast approaches to goal setting and planning. • Discuss contemporary issues in planning.

Learning Outcomes

- Discuss the nature and purposes of planning. - Explain what managers do in the strategic management process - Compare and contrast approaches to goal setting and planning - Discuss contemporary issues in planning

Describe how organizational culture affects managers How Does Organizational Culture Affect Managers

- Effect on what employees do and how they behave - Effect on what managers do * Organizational cultue affects managers in two primary ways - Through its effect on what employees do and how they behave and - Through its effect on what managers do as they plan, organize, lead, and control * Ambrosia Humphrey, vice-president of talent at Hootsuite, describes how the power of organizational culture affects her as a manager. She says that a top priority for her is to nurture and nourish the company's culture by continually creating employee experiences that reflect transparency, one of the company's important values

Leading Approach

- How do I handle unmotivated employees? - What is the most effective leadership style in a given situation? - How will a specific change affect worker productivity? - When is the right time to stimulate conflict?

Early Management Management has been practiced for a long time. Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years. Regardless of what these individuals were called, someone had to perform those functions. The Egyptian pyramids are proof that projects of tremendous scope, employing more than 100,000 workers for some 20 years, were completed in ancient times. In the 1400s at the arsenal in Venice, warships were floated along the canals in a "floating assembly line," with materials and riggings added at each stop. The Venetians also used warehouse and inventory systems, as well as human resource management and accounting systems. The 1800s saw the Industrial Revolution, which brought about the birth of the corporation. It is hugely significant due to both the organizational aspect of how things were done and because management became a necessary component of the enterprise.

- Management has been practiced for thousands of years * Organized projects were directed by people responsible for planning, organizing, leading, and controlling * Management has been practiced for a long time. Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years. Regardless of what these individuals were called, someone had to perform those functions. 3000-2500 BCE * The Egyptian pyramids are proof that projects of tremendous scope, employing more than 100,000 workers for some 20 years, were completed in ancient times. 1400s * In the 1400s at the arsenal in Venice, warships were floated along the canals in a "floating assembly line," with materials and riggings added at each stop. The Venetians also used warehouse and inventory systems, as well as human resource management and accounting systems. 1776 Adam Smith's Wealth of Nations published. - argued economic advantages of the division of labor (or job specialization) breaking down jobs into narrow, repetitive tasks. using division of labor, individual productivity could be increased dramatically. 1780s-Mid-1800s * The 1800s saw the Industrial Revolution, which brought about the birth of the corporation. It is hugely significant due to both the organizational aspect of how things were done and because management became a necessary component of the enterprise. Managers: historic event b/c 1- of all the organizational aspects (hierarchy, control, job specialization, and so forth) that became a part of the way work was done 2- management had become a necessary component to ensure the success of the enterprise beginning turn of the 20th century discipline of management began to evolve as unified body of knowledge w/ rules, principles developed could be taught, used variety of settings - early management proponents called classical theorists

Types of Competitive Strategies: **Porter's competitive strategies framework**

1. Cost leadership strategy * Highly efficient. * Overhead kept to a minimum. * Does everything it can to cut costs. * Product must be perceived as comparable in quality to that offered by rivals or at least acceptable to buyers. 2. Differentiation strategy - Offering unique products that are widely valued by customers and aimed at broad market. - Product differences: exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image. 3. Focus strategy A cost advantage (cost focus) or a differentiation advantage (differentiation focus) in a narrow segment or niche (which can be based on product variety, customer type, distribution channel, or geographical location). 4. Stuck in the middle What happens if an organization can't develop a cost or differentiation advantage—bad place to be. Use **strategic management** to get a **sustainable competitive advantage.**

Three common characteristics that organizations share:

1. goals - which express the distinct purpose of a particular organization 2. People - who make decisions and engage in work activities to reach the organization's goals 3. A deliberate structure, which systematically defines and limits its members' behavior

10. According to polls, which percent of adults believe that economic inequality is not a problem at all?

10%

Common decision-making errors and biases

12 common decision errors and biases managers ake

Frederick Winslow Taylor contributions how management practiced today

1911 - Taylor's book Principles of Scientific Management took business world by storm his ideas spread in US and other countries inspired others

Ch. 1 Summary

1.1 Tell who managers are and where they work. Managers are individuals who work in an organization directing and overseeing the activities of other people. Managers are usually classified as top, middle, first-line, or team leader. Organizations, which are where managers work, have three characteristics: goals, people, and a deliberate structure. 1.2 Define management. Management is the process of getting things done, effectively and efficiently, with and through other people. Efficiency means doing a task correctly ("doing things right") and getting the most output from the least amount of inputs. Effectiveness means "doing the right things" by doing those work tasks that help the organization reach its goals. 1.3 Describe what managers do. What managers do can be described using three approaches: functions, roles, and skills/competencies. The functions approach says that managers perform four functions: planning, organizing, leading, and controlling. Mintzberg's roles approach says that what managers do is based on the 10 roles they use at work, which are grouped around interpersonal relationships, the transfer of information, and decision making. The skills/competencies approach looks at what managers do in terms of the skills and competencies they need and use. Four critical management skills are conceptual, interpersonal, technical, and political. Additional managerial competencies include aspects such as dependability, personal orientation, emotional control, communication, and so forth. All managers plan, organize, lead, and control although how they do these activities and how often they do them may vary according to level in the organization, whether the organization is profit or not-for-profit, the size of the organization, and the geographic location of the organization. 1.4 Explain why it's important to study management. One reason it's important to study management is that all of us interact with organizations daily so we have a vested interest in seeing that organizations are well managed. Another reason is the reality that in your career you will either manage or be managed. By studying management you can gain insights into the way your boss and fellow employees behave and how organizations function. 1.5 Describe the factors that are reshaping and redefining management. In today's world, managers are dealing with changing workplaces, a changing workforce, global economic and political uncertainties, and changing technology. Four areas of critical importance to managers are delivering high-quality customer service, encouraging innovative efforts, using social media efficiently and effectively, and recognizing how sustainability contributes to an organization's effectiveness.

POLICIES.

A third guide for making programmed decisions is a policy. It provides guidelines to channel a manager's thinking in a specific direction. The statement that "we promote from within, whenever possible" is an example of a policy.

resources

An organization's assets that it uses to develop, manufacture, and deliver products to its customers

strategic business units (SBUs)

An organization's single businesses that are independent and formulate their own competitive strategies

A(n) __________ means lower organizational levels can set goals and develop plans more readily. A. flat hierarchy B. turbulent environment C. traditional organization D. ambiguous strategy E. strategic leader

Correct. A flat hierarchy means lower organizational levels can set goals and develop plans because organizations have little time for goals and plans to follow down from the top level.

Implementing the Decision Step 7

Decision implementation: putting a decision into action. Although the choice process is now complete, the decision may still fail if it's not implemented properly. Step 7 - decision implementation - involves the decision to those affected and to obtaining their commitment. The people who must carry out a decision are more likely to enthusiastically endorse the outcome if they participate in the decision-making process. Also as we'll discuss later in this chapter, groups or committees can help a manager achieve commitment.

Ch. 2 Summary The Management Environment Explain what the external environment is and why it's important

External environment refers to factors, forces, situations and events outside the organization that affect its performance. Includes economic, demographic, political/legal, sociocultural, technological, and global components. Important b/c it poses constraints and challenges to managers.

risk

Far more common is a situation of risk, conditions in which the decision maker is able to estimate the likelihood of certain outcomes. Under risk, managers have historical data from past personal experiences or secondary information that lets them assign probabilities to different alternatives.

Is the Manager's Job Universal? Size of the Organization

Importance of roles As seen in figure, managerial roles in small and large businesses differ. Roles played by managers in small firms: high: * For the purposes of our discussion, a small business is an independent business having fewer than 500 employees that doesn't necessarily engage in any new or innovative practices and has relatively little impact on its industry. * The most important role of a **small business** manager is that of spokesperson, performing **externally** in meeting with customers, arranging financing with bankers, searching for new opportunities and stimulating change. * The actions of a manager in a large organization, however, are directed **internally**, deciding which organizational units get which and how much of the available resources. * A small business manager is more likely to be a generalist in a less formal, less structured, and less complex environment than his counterpart in a large organization. * Again, as with organizational level, we see differences in degree and emphasis but not in the activities that managers do. Managers in both small and large organizations perform essentially the same activities, but how they go about those activities and the proportion of time they spend on each are different.

19. Experts predict that these two countries will be larger than the developed countries of the world by 2050

India and China

21. Which of the following identifies the best illustration of the phrase "demographics is destiny" ?

India is experiencing explosive growth partly because its population is growing rapidly

Individualism vs. collectivism

Individualism is the degree to which people in a country prefer to act as individuals rather than as members of groups. Collectivism is the equivalent of low individualism

Organizational Culture High

Innovation and Risk Taking - degree to which employees are encouraged to be innovative and to take risks Attention to Detail - degree to which employees are expected to exhibit precision, analysis, and attention to detail Outcome Orientation - degree to which managers focus on results or outcomes rather than on how tthese outcomes are achieved

Importance of Sustainability

Integrating economic, environmental, and social opportunities into business strategies. * Another twenty-first century challenge is managing in a sustainable way. This means not just managing efficiently and effectively, but also responding strategically to environmental and societal challenged. Sustainability can be defined as meeting the needs of people today without compromising the ability of future generations to meet their own needs. From a business perspective, sustainability refers to a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.

Intuitive Decision Making

Intuitive decision making involves making decisions on the basis of experience, feelings, and accumulated judgment, which can complement both rational and bounded rational decision making. Researchers have identified five different aspects of intuition, described here in Exhibit 4-7 Managers make decisions based on: * Past experience * Feelings and emotion * Skills, knowledge, and training * Data from the subconscious * Ethical values or culture

So what is big data?

It's the vast amount of quantifiable information that can be analyzed by highly sophisticated data processing. One IT expert described big data with "3V's: high volume, high velocity, and/or high variety information assets What does big data have to do with decision making? A lot, as you can imagine. With this type of data at hand, decision makers have very powerful tools to help them make decisions. However, experts caution that collecting and analyzing data for data's sake is wasted effort. Goals are needed when collecting and using this type of information.

Improving Group Decision Making

Make group decisions more creative by: - brainstorming - the nominal group technique - electronic meetings Brainstorming is an idea-generating process that encourages

Define management

Management is the process of getting things done, effectively and efficiently, with and through other people. Efficiency means doing a task correctly ("doing things right") and getting the most output from the least amount of inputs. Effectiveness means "doing the right things" by doing those work tasks that help the organization reach its goals.

Who are managers and where do they work?

Managers work in organizations, which we define as a deliberate arrangement of people brought together to accomplish a specific purpose under 18 over 80 men, women, all industries, all countries entrepreneurial businesses, lg corp, govt agencies, hospitals, museums, schools not for profit enterprises

Decision Point: Culture - Rules and Procedures Based on what you have seen so far, from which country would you expect employees to be more likely to be managed by rules and procedures and require less face-to-face time devoted to meetings?

NOT JAPAN You selected Germany. This was the best choice. Germany is a low context culture and encourages rules to help coordinate employee behavior.

Describe how organizational culture affects managers

Organizational culture affects managers in two ways: 1- through its effect on what employees do and how they behave 2- through its effect on what managers do as they plan, organize, lead, and control.

4.3 Describe the types of decisions and decision-making conditions managers face.

Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar, and easily defined (structured). Nonprogrammed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. Certainty involves a situation in which a manager can make accurate decisions because all outcomes are known. With risk, a manager can estimate the likelihood of certain outcomes in a situation. Uncertainty is a situation in which a manager is not certain about the outcomes and can't even make reasonable probability estimates.

Achievement vs. nurturing

Quantity of life is the degree to which values such as assertiveness, the acquisition of money and material goods, and competition are important. Quality of life is the degree to which people value relationships and show sensitivity and concern for the welfare of others

Rational Model

Rational decision making - choices that are consistent and value-maximizing within specified constraints Rationality is not a very realistic approach In a perfect world, being a rational decision maker means being fully objective and logical. The problem to be addressed would be clear-cut and the decision maker would have a specific goal and anticipate all possible alternatives and consequences. Ultimately, making decisions rationally would consistently lead to selecting the alternative that maximizes the likelihood of achieving that goal. For managerial decision making, we need to assume that decisions are made in the best interests of the organization.

3-3 ​Tom's practice of giving a pair of shoes to children in need for every pair of shoes that are purchased is which of the following business​ practices?

Social responsibility (CSR) Social responsibility​ (or CSR) is a business​ firm's intention, beyond its legal and economic​ obligations, to do the right things and act in ways that are good for society

Ch. 4 Lab 1. When picking out her new​ desk, Danielle would like one that is​ large, has 3​ drawers, and has blue tooth technology​ built-in. This represents which of the following steps of the​ decision-making process?

Step 2

How Does Culture Affect What Employees Do? Strong Cultures

Strong cultures: cultures in which the key values are deeply held and widely shared * The more employees accept the organization's key values and the greater their commitment to those values, the stronger the culture is. Most organizations have moderate to strong cultures; that is, there is relatively high agreement on what's important, what defines "good" employee behavior, what it takes to get ahead, and so forth. The stronger a culture becomes, the more it affects what employees do and the way managers plan, organize, lead, and control.

38. Organizational traditions should not be followed if they don't fit with the current demands of customers and shareholders

TRUE organizations that are too bound by tradition and don't (or refuse to) change are less and less likely to survive the turbulence in today's world

Global Findings Global Leadership and Organizational Behavior Effectiveness (GLOBE)

The Global Leadership and Organizational Behavior Effectiveness research program a program that studies cross-cultural leadership behaviors ongoing cross-cultural investigation of leadership and national culture data from 17,000 managers in 62 societies around world, GLOBE research team (led by Robert House) identified nine dimensions national cultures differ GLOBE studies confirm validity of Hofstede's dimensions, extend his research not replace it GLOBE's added dimensions provide expanded/updated measure of countries' cultural differences. likely cross-cultural studies of human behavior/organizational practices will increasingly use GLOBE dimensions assess country differences

certainty

The ideal situation for making decisions is one of certainty, which is a situation where a manager can make accurate decisions because the outcome of every alternative is known.

unstructured problems.

They are new or unusual. Information about such problems is ambiguous or incomplete. Examples of unstructured problems include the decision to enter a new market segment, to hire an architect to design a new office park, or to merge two organizations.

All managers share one common element

They work in an organizational setting

#3 Functional Strategy Research and Development Manufacturing Marketing Human Resources Finance

Those strategies used by an organization's various functional departments (marketing, operations, finance/accounting, human resources, and so forth) to support the competitive strategy.

3-4-V Not only does CH2M Hill believe in the value of a diverse​ workforce, they are also demonstrating compliance. Which of the following laws would prohibit age​ discrimination?

Title VII of the Civil Rights Act of 1964 prohibits discrimination based on age.

Controlling

What activities in the organization need to be controlled? How should those activities be controlled? When is a performance deviation significant? What type of management information system should the organization have?

focus strategy

When an organization competes in a narrow segment or niche with either a cost focus or a differentiation focus

How Do Groups Make Decisions?

Work teams are common at Amazon. Jeff Bezos, founder and CEO, uses a "two-pizza" philosophy—that is, a team should be small enough that it can be fed with two pizzas.

global village

a boundaryless world where goods and services are produced and marketed worldwide to be effective, managers need adapt to changed environment, be more understanding of cultures, systems, techniques different from their own Global Sales outside U.S. Avon 89% McDonald's 63% IBM 58% Coke 56% GE 52% Apple 52%

16. Which kind of company would be less likely to fire its CEO after a poor performance?

a company with a symbolic view of management

17. Which kind of company would you expect to pay its CEO the most?

a company with an omnipotent view of management

renewal strategy

a corporate strategy for how an organization will compete in its businesses

policy

a guideline for making decisions

global corporation

an MNC that centralizes management and other decisions in the home country - world market is treated as an integrated whole - focus is on control and global efficiency i.e. Sony strengths product innovation Walkman, Handycam, PlayStation - new products developed/launched globally under guidance/oversight of corporate headquarters

rule

an explicit statement that tells employees what can or cannot be done

1980s - present

dawn of information age said began w/ Samuel Morse's telegraph in 1837 most dramatic changes in information technology occurred in latter part of 20th century have directly affected the manager's job now everyone in organization connected wired or wireless whether working from home or working halfway around world

goals (objective)

desired outcomes or targets

plans

documents that outline how goals are going to be met

What Is Organizational Culture

each of us has a unique personality that influences the way we act and interact an organization has a personality too = culture

Future Orientation

extent to which a society encourages and rewards future-oriented behavior such as planning, investing in the future, delaying gratification High - Denmark, Canada, Netherlands Moderate - Slovenia, Egypt, Ireland Low- Russia, Argentina, Poland

Society's expectations influence managers/organizations

i.e. Toms founder Blake Mycoskie saw Argentinian children injured feet no shoes blends charity/commerce - shoe donations central to success of TOMS

What common errors are committed in the decision-making process?

managers make decisions, use their own particular style - "rules of thumb" or heuristics to simplify their decision making rules of thumb can be useful b/c help make sense of complex, uncertain, ambiguous information. Doesn't mean rules are reliable. Why? Because may lead to errors and biases in processing and evaluating information

1-9 Linda is ready to take her business to the next level. She wants to build her​ customer-community beyond her walls. Which of the follow should she​ try?

social media

Zane's 1-4 Zane emphasizes the importance of​ ________ in that his company tries to be a strong community​ citizen, supports​ non-profit organizations, and has used green technology in its building.

sustainability Sustainability is defined as​ "a company's ability to achieve its business goals and increase​ long-term shareholder value by integrating​ economic, environmental, and social opportunities into its business​ strategies."

hindsight bias

tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known

Individualism/ collectivism

term similarly to original research as degree to which individuals are encouraged by societal institutions to be integrated into groups within organizations and society- a low score is synonymous with collectivism High - Greece, Hungary, Germany Moderate - Hong Kong, US, Egypt Low - Denmark, Singapore, Japan

28. Marta is currently focusing her efforts on fundraising. She sees this generation as the cohort on which to focus most of her attention.

the Baby Boomers, because they are the largest and wealthiest generation

31. Marta is worried that the facilities at Linden State are not as up-to-date they could be with respect to wi-fi access and the availability of classes on-demand using podcasts, social networking, and other digital advances.

the Post-Millennials

creativity

the ability to produce novel and useful ideas

demographic

the characteristics of a population used for purposes of social studies

SWOT analysis

the combined external and internal analyses

environmental uncertainity

the degree of change and complexity in an organization's environment refers to the degreeof change and complexity in an organization's environment

Which components of the external environment of the BMW plant in Spartanburg, SC were disrupted by the volcanic eruption in Iceland?

the economic and global components

15. Which view of management describes a situation in which managers are directly responsible for a company's success or failure?

the omnipotent view of management

24. How are "Post-Millennials" likely to be different from previous generations?

they require products that are completely customized to the individual

Management Levels

top managers mdidle managers first-line managers team leaders Managers in an organization can have a variety of titles. Managers are usually classified as top, middle, first-line, or team leaders.

How Do Employees Learn From the Culture? corporate rituals material symbols or artifacts language

* organizational stories: narrative tales of significant events or people * corporate rituals: repetitive sequenes of activities that express and reinforce important organizational values and goals * material symbols or artifacts: layout of facilities, how employees dress, size of offices, material perks provided to executives, furnishings, and so forth * language: special acronyms; unique terms to describe equipment, key personnel, customers, suppliers, processes, products

What Determines the Best Choice?

**Step 6** - time to choose best alternative from those assessed. - determined all pertinent factors in decision, weighted them appropriately, identified & assessed the viable alternatives, step is fairly simple. chose alternative generated highest score in step 5

**Steps in Setting Goals**. Managers should follow six steps when setting goals.

1. **Review the organization's mission and employees' key job tasks**. The mission statement provides an overall guide to what's important, and goals should reflect that mission. In addition, it's important to define what you want employees to accomplish as they do their tasks. 2. **Evaluate available resources**. Don't set goals that are impossible to achieve given your available resources. Goals should be challenging, but realistic. After all, if the resources you have to work with won't allow you to achieve a goal no matter how hard you try or how much effort is exerted, you shouldn't set that goal. 3. **Determine the goals individually or with input from others.** Goals reflect desired outcomes and should be congruent with the organizational mission and goals in other organizational areas. These goals should be measurable, specific, and include a time frame for accomplishment. 4. **Make sure goals are well-written and then communicate them to all who need to know.** Writing down and communicating goals forces people to think them through. Written goals become visible evidence of the importance of working toward something. 5. **Build in feedback mechanisms to assess goal progress**. If goals aren't being met, change them as needed. 6. **Link rewards to goal attainment**. Employees want to know "What's in it for me?" Linking rewards to goal achievement will help answer that question. **Once the goals have been established, written down, and communicated, managers are ready to develop plans for pursuing the goals**.

Managing in a Global Organization

A person with a parochial attitude cannot succeed in today's world. * A global world presents cultural challenges for managers, especially U.S. managers who hold a parochial view of the business world. * **Parochialism** is a narrow focus in which managers see things only through their own eyes and from their own perspectives - not recognizing that countries have different values, morals, customs, political, and economic systems, and laws - which can affect how a business is managed. * The most important differences for managers to understand relate to a country's social context or culture. For example, status is perceived differently in different countries. In France, status is often the result of factors important to the organization, such as seniority, education, and the like. In the United States, status is more a function of what individuals have accomplished personally.

What Types of Goals Do Organizations Have and How Do They Set Those Goals?

Although it might seem that organizations have a single goal—for businesses, to make a profit, and for not-for-profit organizations, to meet the needs of some constituent group(s)—an organization's success can't be determined by a single goal. an organization's success can't be determined by a single goal. In reality, **all organizations have multiple goals.**

How Does Organizational Culture Affect Managers?

Ambrosia Humphrey VP talent Hootsuite - power of organizational culture/ affects her as manager - nurturing/nourishing company's culture top priority does by continually creating employee experiences that reflect important company value - transparency "Ask Me Anything" for staff ask CEO employee "hackathons" - staff get together tack problems social media for transparency to employees, customers, community tweet about perspectives re: work at Hootsuite

HOW CAN ELECTRONIC MEETINGS ENHANCE GROUP DECISION MAKING?

Another approach to group decision making blends the nominal group technique with information technology and is called the **electronic meeting**. The major advantages of electronic meetings are **anonymity, honesty, and speed** It allows people to be brutally honest with no penalty. And it's fast—chitchat is eliminated, discussions do not digress, and many participants can "talk" at once without interrupting the others. Electronic meetings are significantly faster and much cheaper than traditional face-to-face meetings.4 However, as with all other forms of group activities, electronic meetings have some drawbacks. Those who type quickly can outshine those who may be verbally eloquent but lousy typists; those with the best ideas don't get credit for them; and the process lacks the informational richness of face-to-face oral communication. However, group decision making is likely to include extensive usage of electronic meetings. A variation of the electronic meeting is the videoconference. Using technology to link different locations, people can have face-to-face meetings even when they're thousands of miles apart.

What is Sustainability?

Being green at the world's largest retailer - $482.2 billion in revenues - 2.2 million employees - 11,400+ stores Sustainability goal: Remove 20 million metric tons of greenhouse gas emissions from supply chains - the equivalent of removing more than 3.8 million cars from the road for a year * Considering its size, Walmart is probably the last company that you'd think about in a section describing sustainability. However, it recently announced that it now reuses or recycles more than 80 percent of the waste produced in its domestic stores and in other U.S. operations. This corporate action affirms that sustainability is a mainstream issue for managers.

Ethics Training

Can ethics be taught? Critics: value systems learned in youth Proponents: values can be learned and ethical problem solving increases ethical behavior, moral development, awareness. * An increasing number of organizations are setting up seminars, workshops, and ethics training programs to encourage ethical behavior. However, such training raises the question, "Can ethics be taught?" * Critics maintain that people establish their individual value systems when they're young, so later training is pointless * However, proponents note studies that show that: * It's never too late to learn values. * Teaching ethical **problem solving** increases: - Instances of better ethical behaviors - Individuals' level of moral development; and - Awareness of ethical issues in business

Why Are Customers Important?

Consistent, high-quality customer service is essential to survival. * Organizations depend on their customers to exist in the marketplace. Until recently, customer focus was thought to be the responsibility of marketing, but organizations are now discovering that employee attitudes and behaviors play a big role in customer satisfaction. * Managers are recognizing that delivering consistent high-quality customer service is essential for survival and success in today's competitive environment. They recognize that employees are an integral part of creating a customer-responsive organization where employees are friendly, courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what's necessary to please the customer.

3. If the digital marketing team at CH2M Hill had pulled everyone together and generated several ideas on how to deal with the international web​ pages, it would be an example of which of the​ following? A. Brainstorming B. Risk C. Centralization D. Groupthink E. Satisficing

Correct. Brainstorming is the process of generating ideas and alternatives while withholding criticism.

5. Lori is facing a new dilemma. She must decide whether Joanne or Dawn will be able to move into the vacant office. This kind of thing​ doesn't happen often around here. Lori is facing what kind of​ problem?

Correct. Unstructured problems are new or unusual. Information is ambiguous or incomplete.

6. Top managers of McDoogals decided to put their new restaurant on the campus of City University. This is the first new restaurant for McDoogals in 25 years. This is an example of what type of​ decision?

Correct. When problems are​ unstructured, managers must rely on nonprogrammed decisions in order to develop unique solutions.

4. Should​ Rudi's Organic Bakery look at entering the vegan​ market? This decision would be classified into which​ decision-making category? A. Uncertainty B. Probability C. Risk D. Satisficing E. Certainty

Correct.​ Rudi's Organic Bakery would be making the decision under a condition of uncertainty. Under such​ conditions, the choice of alternatives is influenced by the limited amount of information available and by the psychological orientation of the decision maker.

How Do Groups Make Decisions?

Decisions are often made by groups representing the people who will be most affected by those decisions. * Committees * Task forces * Review panels * Work teams Many decisions in organizations, especially important decisions that have far-reaching effects on organizational activities and personnel, are typically made in groups such as committees, task forces, review panels, or work teams In many cases, these groups represent the people who will be most affected by the decisions being made because they are often the best qualified to make decisions that affect them.

What Are the Advantages and Disadvantages of Group Decision Making?

Decisions can be made by individuals or by groups—each approach has its own set of strengths and neither is ideal for all situations.

Contemporary Issues (contd) Design Thinking

Design Thinking: approaching management problems as designers approach design problems. More organizations are beginning to recognize how design thinking can benefit them. Apple's approach: "We try to develop products that seem somehow inevitable. That leave you with the sense that that's the only possible solution that makes sense." The design thinking approach begins with the first step of identifying problems. Design thinking says that managers should look at problem identification collaboratively and integratively with the goal of gaining a deep understanding of the situation. Then invariably, of course, design thinking would influence how managers identify and evaluate alternatives. Design thinking means opening up your perspective and gaining insights by using observation and inquiry skills, and not relying simply on rational analysis.

3 Intuition and Managerial Decision Making

Diego Della Valle chairman Tod's luxury shoe empire doesn't use common decision-making tools like focus groups or poll testing - he wears the shoes for a few days not to his liking - NO! **His intuitive decision approach has helped make Tod's a successful multinational company**

3-7 __________ represents ways in which people in an organization are different from one another.

Diversity Diversity is the collection of differences represented in the people of the organization.

Ch. 3 Integrative Managerial Issues

EXPLAIN globalization and its impact on organizations DISCUSS how society's expectations are influencing managers and organizations DISCUSS the factors that lead to ethical and unethical behavior in organizations DESCRIBE how the workforce is changing and its impact on the way organizations are managed. * Today's managers are concerned with such integrative managerial issues as diversity, globalization, and ethics and social responsibility throughout many aspects of what they do and how they manage. After studying this chapter, you will be able to: Explain globalization and its impact on organizations Discuss how society's expectations are influencing managers and organizations Discuss the factors that lead to ethical and unethical behavior in organizations Describe how the workforce is changing and its impact on the way organizations are managed

Ch. 2 The Management Environment

EXPLAIN what the external environment is and why it's important DISCUSS how the external environment affects managers DEFINE what organizational culture is and explain why it's important DESCRIBE how organizational culture affects managers

3-3 Discuss the factors that lead to ethical and unethical behavior in organizations.

Ethical Behavior **Ethics**: a set of rules or principles that defines right and wrong conduct * Ethics commonly refers to a set of rules or principles that defines right and wrong conduct. * While most people recognize that something illegal is also unethical, what about questionable "legal" areas or strict organizational policies? * Suppose you managed an employee who worked all weekend on a rush project. You told the employee to take two days off sometime later and mark the days as "sick days" because your company had a clear policy that overtime would not be compensated for any reason. Would that be wrong? As a manager, how will you handle such situations?

37. Holding on tightly to organizational habits is one of the foundations of long-term success.

FALSE one constant all organizations face, regardless of their size, is the need to change and adapt to today's business environment

Is the Manager's Job Universal?

First we'll examine how a manager's level in the organization impacts the role. Although a supervisor and the CEO of a company may not do exactly the same things, it doesn't mean that their jobs are inherently different. The differences are of **degree** and **emphasis** but not of **activity**. That is, the decisions of a top manager will have greater ramifications than those of a middle manager due to the content of the decision. All managers regardless of level, make decisions and plan, lead, organize, and control. But the amount of time a manager gives to each activity is not **necessarily constant** Also, the **content of the managerial activities also changes with the manager's level**. The figure illustrates this variability.

Is the Manager's Job Universal? First-Level Managers level

First-Level Managers organizing 24% planning 15% controlling 10% leading 51% Middle Managers organizing 33% planning 18% controlling 13% leading 36% Top Managers organizing 36% planning 28% controlling 14% leading 22%

1-2 Ross does enjoy managing the lunch shift at Chez​ le'Steak. It is a fine dining establishment that Ross is very proud of. Ross manages the lunch staff on an every day basis. Which type of manager best describes​ Ross's position?

First-line manager

1911 - Classical Approaches: Scientific Management 1911 theory of scientific management - "one best way" for job to be done

Fredrick W. Taylor described scientific management as a method of scientifically finding the: one best way to do a job * At the beginning of the twentieth century, the discipline of management began to evolve as a unified body of knowledge * Frederick W. Taylor known as the father of scientific management, developed a method of scientifically finding the "one best way to do a job" in his 1911 groundbreaking book, Principles of Scientific Management. * Other major contributors to scientific management were Frank and Lillian Gilbreth (early proponents of time-and-motion studies and parents of the large family described in the original book Cheaper by the Dozen. ) and Henry Gantt (whose work on scheduling charts was the foundation for today's project management).

27. Marta sees an opportunity for her school in increasing the enrollment in individuals who were born in the 1980s and early 1990s Which term describes these prospective students?

Gen Yers

Globe Findings

Global Leadership and Organizational Behavior Effectiveness (GLOBE) * Geert Hofstede's widely-referenced framework on cultural variations has provided insight into much of what we know about cultural differences among countries. A more recent research program - called **Global Leadership and Organizational Behavior Effectiveness (or GLOBE)** - continues the ongoing cross-cultural investigation of leadership and national culture. GLOBE's findings both extend Hofstede's research and confirm the validity of his original dimensions.

Organizing

How many employees should I have report directly to me? How much centralization should there be in an organization? How should jobs be designed? When should the organization implement a different structure?

What Contemporary Planning Issues Do Managers Face? 5.4 Discuss contemporary issues in planning.

In an uncertain environment, **managers should develop plans that are specific, but flexible**. Although this may seem contradictory, it's not. To be useful, plans need some specificity, but the plans should not be set in stone. Managers need to **recognize that planning is an ongoing process** Managers need to **stay alert to environmental changes that may impact implementation and respond as needed**. Keep in mind, also, that even when the environment is highly uncertain, it's important to **continue formal planning in order to see any effect on organizational performance.** Finally,**make the organizational hierarchy flatter to effectively plan in dynamic environments**.

Management Roles Approach Mintzberg's Managerial Roles

In the late 1960s, Henry Mintzberg dispelled long-held notions that managers were reflective thinkers who carefully processed information before making decisions. His empirical study of 5 chief executives showed that managers perform ten different but highly interrelated roles. He categorized these actions around the following three general categories. 1. Interpersonal relationships: Figurehead, leader, liaison 2. Informational transfer: Monitor, disseminator, and spokesperson 3. Decision-making: Entrepreneur, disturbance handler, resource allocator, and negotiator

Zane's 1-3 Zane strives to have the same relationship with his employees that he does with his customers. He thinks it is essential to have​ employees' trust just as it is essential to have the trust of customers. Which category of roles identified by Mintzberg would this likely​ demonstrate?

Interpersonal roles According to​ Mintzberg, interpersonal roles are ones that involve people​ (subordinates and persons outside the​ organization). The three interpersonal roles include​ figurehead, leader, and liaison.

Do you fit in company's culture?

Know the workplace values and whether you fit if don't fit can: - sabotage your career advancement - affect your work relationships

How Are Problems, Types of Decisions, and Organizational Level Integrated?

MANAGERIAL DECISIONS: Real World—Real Advice Few managerial decisions are either fully programmed or fully nonprogrammed. Most fall somewhere in between. At the top level, most problems that managers face are unique—that is, nonprogrammed. Programmed routines may help even in situations requiring a nonprogrammed decision. Top-level managers often create policies, standard operating procedures, and rules—that is, programmed decision making—for lower-level managers in order to control costs and other variables. Programmed decision making can facilitate organizational efficiency—maybe that's why it's so popular! Programmed decisions minimize the need for managers to exercise discretion. Discretion—the ability to make sound judgments—costs money because it's an uncommon and valuable quality and managers who have it are paid more. Even in some programmed decisions, individual judgment may be needed.

Steps in Goal Setting

Managers should follow six steps when setting goals: 1. Review the organization's mission and the employees' key job tasks. Goals should reflect the mission, and managers need to clearly define what they want employees to accomplish as they do their tasks. 2. Evaluate available resources. Goals should be challenging but realistic with regards to available resources. 3. Determine the goals individually or with input from others. The goals reflect desired outcomes and should be congruent with the organizational mission and goals in other organizational areas. These goals should be measurable, specific, and include a time frame for accomplishment. 4.Make sure goals are well-written and then communicate them to all who need to know. 5.Build in feedback mechanisms to assess goal progress. If goals aren't being met, change them as needed. 6.Link rewards to goal attainment. ● Once the goals have been established, written down, and communicated, managers are ready to develop plans for pursuing them.

Why Should Managers Formally Plan?

McDonald's—with over 35,000 restaurants in approximately 120 countries serving over 68 million customers every day— key is its Plan to Win built on three components: - operational excellence, - being the leader in marketing, and - continual product innovation McDonald's managers—from corporate to individual stores—know that planning is vital to the company's continued success.

Behavioral Approaches 1960s - Today

Organizational Behavior (OB) * The field of study that researches the actions (behaviors) of people at work is called **organizational behavior (OB)**. OB researchers do empirical research on human behavior in organizations. Much of what managers do today when managing people - motivating, leading, building trust, working with a team, managing conflict, and so forth - has come out of OB research.

What is Planning?

Planning: the primary management function Planning establishes the basis for all the other things managers do as they organize, lead, and control. Planning is deciding on the organization's objectives or goals and getting the job done by establishing an overall strategy for achieving those goals and developing a comprehensive hierarchy of plans to integrate and coordinate activities. Planning can be informal or formal. Smaller businesses often use informal planning where little is verbalized or written down and the planning is general and lacks continuity. Formal planning, however, defines specific goals that are to be met in a specific time period. They are written down and made available to organization members. Then managers develop specific plans that clearly define what the organization will do to move from where it is to where it wants to be.

Identifying Decision Criteria Step 2

Relevant Factors: price model size manufacturer options repair record Once a manager has identified a problem that needs attention, he or she must identify the decision criteria that will be important in solving the problem. This is Step 2 in the decision-making process. In the case of replacing one's car, the car's owner assesses the relevant criteria, which might include price, model (two-door or four-door), size (compact or intermediate), manufacturer (Japanese, South Korean, German, or American), optional equipment (navigation system or side-impact protection), fuel economy, and repair records. Note that in this step in the decision-making process, what is not identified is as important as what is. Therefore, if a decision maker doesn't identify a particular factor in Step 2, that factor is deemed irrevelant.

The Strategic Management Process

STEP 1: Identifying the organization's current mission, goals, and strategies. Every organization needs a mission—a statement of its purpose. It's also important for managers to identify current goals and strategies. Why? So managers have a basis for assessing whether they need to be changed. STEP 2: Doing an external analysis. Analyzing that environment is a critical step in the strategic management process. In an external analysis, managers should examine all components of the environment (economic, demographic, political/legal, sociocultural, technological, and global) to see the trends and changes. **Opportunities are positive trends in the external environment; threats are negative trends.** STEP 3: Doing an internal analysis. important information about an organization's specific resources and capabilities. organization's **resources** are its assets—financial, physical, human, and intangible—that it uses to develop, manufacture, and deliver products to its customers - They're ** "what"** the organization has. its **capabilities** are the skills and abilities needed to do the work activities in its business—**"how"** it does its work. The major value-creating capabilities of the organization are known as its **core competencies.** Both resources and core competencies determine the organization's competitive weapons. After completing an internal analysis, managers should be able to identify organizational strengths and weaknesses **strengths**- Any activities the organization does well or any unique resources that it has **Weaknesses** are activities the organization doesn't do well or resources it needs but doesn't possess. The combined external and internal analyses are called the **SWOT analysis** because it's an analysis of the organization's strengths, weaknesses, opportunities, and threats. STEP 4: Formulating strategies. - The combined external and internal analyses are called the SWOT analysis because it's an analysis of the organization's **strengths, weaknesses, opportunities, and threats.** - Managers typically formulate three main types of strategies: corporate, business, and functional. STEP 5: Implementing strategies - formulate then implement - No matter how effectively an organization has planned its strategies, performance will suffer if the strategies aren't implemented properly. STEP 6: Evaluating results How effective have the strategies been at helping the organization reach its goals? What adjustments are necessary: Do assets need to be acquired or sold? Does the organization need to be reorganized?

6 Components of the External Environment political/legal demographics economic sociocultural technological global

The Organization: The **External Environment** includes 6 components: * The **economic component** encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages. * The **demographic component** includes trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition * The **technological component** focuses on scientific and industrial innovations * The **sociocultural component** is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior. * The **political/legal component** looks at federal, state and local laws, as well as other countries' laws and global laws. It also includes a country's political conditions and stability. * The **global component** encompasses issues associated with globalization and a world economy

Management

The process of getting things done effectively and efficiently, with and through people Effectiveness: doing the right things Efficiency: Doing things right PROCESS of getting things done EFFECTIVELY and EFFICIENTLY, with and through people Efficiency and effectiveness have to do with the work being done and how it's being done. Efficiency means doing a task correctly ("doing things right") and getting the most output from the least amount of inputs. It's not enough, however, just to be efficient. Managers are also concerned with completing activities. In management terms, we call this effectiveness. Effectiveness means "doing the right things" by doing those work tasks that help the organization reach its goals.

Developing Plans

The process of plan development is influenced by three contingency factors and by the kind of planning approach followed. Three contingency factors that affect the choice of plans are: 1. Organizational level. 2. Degree of environmental uncertainty. 3. Length of future commitments. Exhibit 5-8, shown here, illustrates the relationship between a manager's level in the organization and the type of planning that a manger does. For the most part, lower-level managers do operational (or tactical) planning while upper-level managers do strategic planning. The second contingency factor is environmental uncertainty. When uncertainty is high, plans should be specific but flexible. Managers must be prepared to change or amend plans as they're implemented. The third contingency factor relates to the time frame of plans. The commitment concept says that plans should extend far enough to meet commitments made when the plans were developed. But planning for too long or too short a time period is inefficient and ineffective. For example, when organizations increase their computing capabilities, many have found their "power-hungry computer" generated so much heat that the electric bills have skyrocketed because of the increased need for air conditioning. This illustrates the commitment concept: When organizations expand their computing technology, they're "committed" to whatever future expenses are generated by that plan.

What are an organization's strategies?

They're the plans for how the organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.

Functional Strategy

Those strategies used by an organization's various functional departments to support the competitive strategy Research and Development Manufacturing Marketing Human Resources Finance Those strategies used by an organization's various functional departments (marketing, operations, finance/accounting, human resources, and so forth) to support the competitive strategy.

Setting Goals and Developing Plans

Types of goals * Financial versus strategic * Slated versus real Planning = Goals + Plans Planning involves two important aspects: goals, which are objectives, and plans, which are desired outcomes or targets. Plans guide managers' decisions and form the criteria against which work results are measured. They usually include resource allocations, budgets, schedules, and other necessary actions to accomplish multiple goals. Most company's goals can be classified as either strategic or financial. Financial goals are related to the financial performance of the organization, while strategic goals are related to all other areas of an organization's performance. Stated goals are official statements of an organization's goals, which it wants its stakeholders to believe. But if you want to know an organization's real goals—those goals an organization actually pursues—observe what organizational members are doing. Actions define priorities.

2-2 How does the external environment affect managers? discuss how the external environment affects managers

WHAT the various components of the external environment are and examining certain aspects of that environment are important for managers understanding HOW the environment affects managers is equally as important

Describe what managers do

Ways to look at what managers do: * Four Functions Approach * Management Roles Approach * Skills and Competencies No two organizations are alike, and neither are managers' jobs. But managers' jobs do share some common elements. We'll discuss three approaches to describing what managers do.

Competitive Advantage

What sets an organization apart; its distinctive edge that comes from its: core competencies and resources Developing an effective competitive strategy requires an understanding of the organization's competitive advantage, which is whatever sets it apart from the competition. That distinctive edge comes from the organization's core competencies. Competitive advantage also can come from the company's resources—something that the organization has that its competitors don't. 1. Cost leadership strategy 2. Differentiation strategy 3. Focus strategy—involves a cost advantage (or "cost focus") 4. Stuck in the middle Use strategic management to get a sustainable competitive advantage.

What Determines Ethical Behavior?

Whether a manager or employee acts ethically or unethically depends on several factors: - morality - values - personality ? - experience - the organization's culture - ethical issue being faced * Ambiguity over what is ethical can be a problem for managers. * For example, how would you respond in the following situation? Someone in your class stole the final exam and is selling a copy for $50 each. You need to do well on the exam or risk failing the course. You suspect that some classmates have bought copies, which could affect any results because your professor grades on a curve. Do you buy a copy because you fear that without it, you'll be disadvantaged, do you refuse to buy a copy and try to do your best, or do you report your knowledge to your instructor?

Decision Point: Corporate Strategy: Stability Which corporate stability strategy will work best for Country Comfort? Select an option from the choices below and click Submit. Focus on becoming more efficient and "smart" in the way Country Comfort conducts new business, as well as on maintaining the company's current customer base. Focus on resisting change of any kind and return to the way things were when Country Comfort first hit the ground coffee market in 1981. Focus on staying the course and strengthening the name of parent company Holden Evans only—that way Country Comfort can maintain its loyal customer base without introducing a new product.

You selected to focus on becoming more efficient and "smart" in the way Country Comfort conducts new business, as well as on maintaining the company's current customer base. This was the best choice. If you are interested in pursuing a stability strategy, you want to maintain the company's current customer base while introducing new products slowly. You also want to look for ways that you can make your company more efficient in the way it does business.

problem

a discrepancy between the current state of affairs and some desired state

formal planning department

a group of planning specialists whose sole responsibility is helping to write organizational plans

single-use plan

a one-time plan specifically designed to meet the needs of a unique situation

global strategic alliance

a partnership between an organization and foreign company partner (s) in which both share resources and knowledge in developing new products or building production facilities i.e. Honda Motor & General Electric teamed up produce new jet engine when organization has been doing business internationally for a while , gained experience in international markets, decides to make more direct investment i.e. Honda Motor and General Electric teamed up make new jet engine

management by objectives (MBO)

a process of setting mutually agreed upon goals and using those goals to evaluate employee performance

decision-making process

a set of eight steps includes identifying a problem, selecting a solution, and evaluating the effectiveness of the situation

decision-making process

a set of eight steps that includes identifying a problem, selecting a solution and evaluating the effectiveness of the solution

certainty

a situation in which a decision maker can make accurate decisions because all outcomes are known

uncertainty

a situation in which a decision maker has neither certainty nor reasonable probability estimates available

What role do demographics play?

age is a particularly important demographic for managers

franchising

an agreement in which an organization gives another organization the right, for a fee, to use its name and operating methods

licensing

an agreement in which an organization gives another the right, for a fee, to make or sell its products, using its technology or product specifications

sharing economy

an economic environment in which asset owners share with other individuals through a peer-to-peer service, for a set fee, their underutilized physical assets or their knowledge, expertise, skills, or time

brainstorming

an idea-generating process that encourages alternatives while withholding criticism

escalation of commitment

an increased commitment to a previous decision despite evidence that it may have been a poor decision

whether manager or employee acts ethically or unethically will depend on several factors

an individual's morality, values, personality, experience, the organization's culture, ethical issue being faced

means-end chain

an integrated network of goals in which high-level goals are linked to lower-level goals, which serve as the means for their accomplishment

means-end chain

an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level

capabilities

an organization's skills and abilities in doing the work activities needed in its business

Types of Workplace Diversity

age, gender, race and ethnicity, disability/abilities, religion, GLBT, other * People in a workforce are similar to and different from one another in terms of gender, age, race, sexual orientation, ethnicity, cultural background, and physical abilities. * For example: - **Age** of the population is shifting critically in the workforce. With many baby boomers still employed and active, managers must ensure that those employees do not face discrimination. - **Gender**diversity issues are still prevalent as women and men now each make up almost half of the workforce, especially with regards to gender pay gap, career start and progress, and misconceptions about women's performance as compared with men's - Race is the biological heritage (including physical characteristics such as one's skin color and associated traits) that people use to identify themselves. - Ethnicity refers to social traits, such as one's cultural background or allegiance, that are shared by a human population. Ethnicity is related to race, but it refers to social traits - such as one's cultural background or allegiance - that are shared by a human population race/ethnic diversity in US population increasing exponential rate - Disabilities/abilities includes adherence to the 1990 Disabilities Act (ADA) which prohibits discrimination against persons with disabilities and requires employers to make reasonable **accommodations** so their workplaces are accessible to people with physical or mental disabilities. With the law's enactment, individuals w/ disabilities became a more representative and integral part of the US workforce. - Title VII of the Civil Rights Act prohibits discrimination on the basis of religion, race, or ethnicity, country of origin, and gender. In accommodating religious diversity, managers need to recognize and be aware of different religions, their beliefs, religious holidays, and more. - Next let's look at sexual orientation and gender identity. The acronym GLBT refers to gay, lesbian, bisexual, and transgender people. U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation, although many states and municipalities do. In Europe, the Employment Equality Directive required all European Union member states to introduce legislation making it unlawful to discriminate on grounds of sexual orientation, but much more needs to be done. Managers need to look at how best to meet the needs of their GLBT employees and respond to employees' concerns while creating a safe and productive work environment for all. * Other types of diversity include issues arising from socioeconomic backgrounds, team members from different functional areas or organizational units, physical attractiveness, obesity, job seniority, or intellectual abilities. Managers need to ensure that all employees are treated fairly and given the opportunity and support to do their jobs to the best of their abilities. sexual orientation is called the last acceptable bias and US federal law does not prohibit discrimination against employees on the basis of sexual orientation although many states/municipalities do one study found 40%+ gay/lesbian employees been unfairly treated/denied promotion, pushed to quit job b/c sexual orientation - managers look best meet needs/ respond to employee concerns while also creating safe, productive work environment for all other workplace diversity: socioeconomic background (social class/income-related factors), team members different functional areas, or organizational units, physical attractiveness, obesity/thinness, job seniority, intellectual abilities

1. Rational Model Approach Rationality is not a very realistic approach

assumes: Decision makers must act rationally How? use rational decision making - make logical and consistent choices to maximize value Rational Decision- maker Should be: - fully objective and logical - problem is clear unambiguous - clear and specific goal regarding decision - all possible alternatives and consequences known - alternative selected maximizes likelihood of achieving goal - organization's best interests are considered Can Ever Be? - can we ever be fully objective and logical? - can problems ever be totally clear and unambiguous? - can a goal ever be made that clear and specific? - can all possible alternatives and consequences ever be known? - can any alternative ever really do that? - managers should do this but may face factors beyond their control

family-friendly benefits

benefits that provide a wide range of scheduling options that allow employees more flexibility at work, accommodating their need for work-life balance - on-site day care, summer day camps, flextime, job sharing, time off for school functions, telecommuting, part-time employment

Electronic meeting

blends nominal group technique with computer technology. Numerous people sit around a table with a computer terminal. Issues are presented to the participants ,who anonymously type their responses onto their computer screens that are displayed on a projection screen. The major advantages of electronic meetings are anonymity, honesty, speed, and cost effectiveness. Discussions do not digress, and many participants can "talk" at once without interrupting the others. The video conference is a variant, linking media and people from different locations, increasing the efficiency with which decisions are made.

3. After working for three days on a client​ presentation, Michael determined that it was good enough for his clients. This is an example of​ ____________ decision making.

bounded

Why should managers care abut managing stakeholder relationships?

can lead to desirable organizational outcomes i.e. improved predictability of environmental changes, more successful innovations, greater degree of trust among stakeholders, greater organizational flexibility to reduce impact of change i.e. Facebook spending money on lobby/meeting govt officials b/c looking at changes to online privacy law - FB working on shape image on Capital Hill/avert measures potentially damaging to information sharing business

**SWOT analysis**

combined external and internal analyses because it's an analysis of the organization's strengths, weaknesses, opportunities, and threats. After completing the SWOT analysis, managers are ready to formulate appropriate strategies strategies that (1) exploit an organization's strengths and external opportunities, (2) buffer or protect the organization from external threats, or (3) correct critical weaknesses.

technological component

concerned w/ scientific or industrial innovations

demographic component

concerned w/ trends in population characteristics such as age, race, gender education level, geographic location, family composition

Importance of Social Media

connecting with customers managing human resources * More than a billion people use social media platforms like Facebook, Twitter, You Tube, Linkedin, etc. Managers need to understand and manage the power of social media, because employees use them for both personal and work purposes. More and more businesses are turning to social media not just as a way to connect with customers but also as a way to manage their human resources and tap into their innovation and talent. But it's not without its perils. Managers need to remember that social media is a tool that needs to be managed to be beneficial.

organization

deliberate arrangement of people brought together to accomplish some specific purpose i.e. college is organization, United Way, neighborhood convenience store, New Orleans Saints football team, fraternities, soroities, Cleveland Clinic, Nestle, Lego, Samsung

randomness bias

describes when decision make try to create meaning out of random events - they do this b/c most decision makers have difficulty dealing w/ chance even though random events happen to everyone and there's nothing that can be done to predict them.

anchoring effect

describes when decision makers fixate on initial information as starting point and then, once set, fail to adequately adjust for subsequent information - first impressions, ideas, prices, & estimates carry unwarranted weight relative to information received later.

goals (objectives)

desired outcomes or targets

Managers one source says word manager originated in 1588 to describe who manages

direct and oversee the activities of others may have work duties not related to overseeing others who direct and oversee the activities of the people in the organization. A manager's job isn't about person achievement - it's about helping others do their work. This distinction doesn't mean however, that managers don't ever work directly on tasks

first-line managers

direct nonmanagerial employees are responsible for directing the day-to-day activities of nonmanagerial employees titles include: agency head, unit chief, division manager, or project leader those individuals responsible for directing the day-to-day activities of nonmanagerial employees titles i.e. supervisors, shift managers, office managers, department managers, unit coordinators

5. This component of an organization's external environment is concerned with interest rates and employment levels

economic

1-7 John's team is not very excited by the work he has assigned to them. He has not done such a great job challenging his team in a positive way. For this​ reason, many people on his team are looking for another job. It seems John may not be aware that managers play a crucial role in​ ________.

employee satisfaction

ethical misconduct

employees witness - low 41% organizations quick penalize or fire (even managers) found act unethically won't be tolerated lg companies conscientious improving ethical standards 97% have codes of ethics examples: insider trading, lying, bribery, conflicts of interest, sexual harassment, product deficiency cover-ups, expense account abuse, environmental violations seems unethical practices are increasing but may be more media outlets today online and physical actively competing for your attention media gives readers what they want "juicy" negative stuff - highlight managers who lie, cheat or rigged system employees behaving ethically important for managers factors like globalization, diversity, ethics/social responsibility integrated

global component

encompasses those issues (like volcano eruption, political instability, terrorist attack, etc.) associated with globalization and a world economy

economic component

encompassses factors such as interest rates, inflation, employment/unemployment rates, disposable income levels, stock market fluctuations, business cycle stages

Organizational Stakeholders

figure notes most common stakeholders organization might deal with - include internal and external groups both can affect what an organization does and how it operates

3-2 When the University of Burgsville built three plants in Northeast Asia to manufacture seat​ cushions, they were using what common​ practice?

foreign subsidiary A foreign subsidiary is a separate and independent facility or office.

Country's social context or culture

i.e. status perceived differently different countries i.e. France - status often result of seniority, education, etc. U.S. status function of what individuals accomplished personally managers need understand societal issues (such as status) might affect business operations in another country/recognize organizational success can come from variety managerial practices - can turn to research

SETTING GOALS. **traditional goal setting**

goals provide the direction for all management decisions and actions and form the criterion against which actual accomplishments are measured. **Traditional Goal Setting** In traditional goal setting** goals set by top managers flow down through the organization and become subgoals for each organizational area. Clarity is often lost as the goals make their way down from the top of the organization to lower levels This traditional perspective assumes that top managers know what's best because they see the "big picture." And the goals passed down to each succeeding level guide individual employees as they work to achieve those assigned goals. Turning broad strategic goals into departmental, team, and individual goals can be a difficult and frustrating process. Another problem with traditional goal setting is that when top managers define the organization's goals in broad terms—such as achieving "sufficient" profits or increasing "market leadership"—these ambiguous goals have to be made more specific as they flow down through the organization. Managers at each level define the goals and apply their own interpretations and biases as they make them more specific. Clarity is often lost as the goals make their way down from the top of the organization to lower levels. When the hierarchy of organizational goals is clearly defined, as it is at dj Orthopedics, it forms an integrated network of goals, or a **means-ends chain.** Higher-level goals (or ends) are linked to lower-level goals, which serve as the means for their accomplishment In other words, the goals achieved at lower levels become the means to reach the goals (ends) at the next level. **Management by Objectives**. Instead of using traditional goal setting, many organizations use management by objectives (MBO), a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance. If a manager were to use this approach, he or she would sit down with each member of his or her team and set goals and periodically review whether progress was being made toward achieving those goals. **MBO programs have four elements:** 1. goal specificity, 2. participative decision making, 3. an explicit time period, and 4. performance feedback The appeal is that **it focuses on employees working to accomplish goals they've had a hand in setting**. Studies of actual MBO programs have shown that it can increase employee performance and organizational productivity. one review of MBO programs found productivity gains in almost all of them. is MBO relevant for today's organizations? Yes, if it's viewed as a way of setting goals, because research shows that **goal setting can be an effective tool in motivating employees** **Characteristics of Well-Written Goals.** * Written in terms of outcomes rather than actions * Measurable and quantifiable * Clear as to a time frame * Challenging yet attainable * Written down * Communicated to all necessary organizational members

In-group collectivism

in contrast to focusing on societal institutions, this dimension encompasses the extent to which members of a society take pride in membership in small groups such as their family and circle of close friends and the organizations in which they are employed High - Egypt, China Morocco Moderate - Japan, Israel, Qatar Low - Denmark, Sweden, New Zealand

9. Which of the following has been identified as a significant risk to business leaders in the next decade?

income disparity

Brainstorming

is an idea-generating process that encourages any and all alternatives while withholding any criticism of those alternatives. The group leader states the problem clearly and members then "freewheel" as many alternatives as they can in a given time and all alternatives are recorded for later discussion.

Is the Manager's Job Universal?

level in the organization size of the organization profit vs. not-for-profit national borders Until now, we've looked at management as a generic activity. If management is truly a generic discipline, then what a manager does should be essentially the same whether he or she is a top-level executive or a first-line supervisor, in a business firm or a government agency; in a large corporation or a small business; or located in Paris, Texas, or Paris, France. In reality, a manager's job varies depending on several factors.

8. The majority of growth in the US employment recently has been in this area

low paying jobs

top managers

make decisions about the direction of an organization are those at or near the top of an organization who make decisions about the direction of the organization and establish policies and philosophies that affect all organizational members. Titles include: president, vice president, chancellor, managing director, or chief executive officer those at or near the top of an organization usually responsible for making decisions about direction of the organization and defining policies and values that affect all organizational members titles i.e vice president, president, chancellor, managing director, chief operating officer, chief executive officer, or chairperson of the board

ethics

refers to a set of rules or principles that defines right and wrong conduct right/wrong behavior difficult to determine something illegal is unethical questionable "legal" areas or strict organizational policies?

From past to present

terms management and manager centuries old some say manager originated in 1588 to describe one who manages specific use of word as person who oversees a business or public organization is believed to have originated in early part of 18th century. used in way we're defining it in terms of overseeing and directing organizational members, management and manager are more appropriate to early 20th century time period word management first popularized by Frederick Winslow Taylor - "biggie" in management history

organizational culture

the shared values, principles, traditions, and ways of doing things that influence the way organizational members act i.e. Google created a creative/innovative culture at headquarters California - android googleplex, bikes, bringing your dog to work

34. TJ Soft - Theodore just gotten wind from a highly reliable source that games involving animals and ecosystems are likely to be extremely "hot" in the coming year. He's excited because TJ Soft has two games in development that fit the animal/eco niche perfectly. Which component of the external environment will affect TJ Soft the most in this situation?

the sociocultural component

generational differences

unique challenges esp. for baby boomers and Gen Y. Conflicts, resentment can arise over issues - appearance, technology, management style appropriate work attire? depends on type of work being done technology? Gen Y grown up w/ ATMS, DVDs, cell phones, email, texting, laptops, Internet Baby Boomers complain Gen Y inability to focus one task Gen Y see nothing wrong w/ multitasking Key - flexibility and understanding work together effectively and efficiently Gen Y want bosses open-minded, experts in their field, even if aren't tech savvy, organized, teacher, trainers, mentors, not authoritarian or paternalistic, respectful of their generation, understanding of their need for work-life balance, providing constant feedback, communicating in vivid and compelling ways, and providing stimulating and novel learning experiences.

What titles do managers have?

variety of titles broad sense - classified -top -middle -first-line -team leaders

differentiation strategy

when an organization competes on the basis of having unique products that are widely valued by customers

Managing stakeholder relationships

why MTV popular young adults yr after yr? MTV understands the importance of buildng relationships with its various stakeholders - viewers (the network is relentless in monitoring its target-audience preferences), reality show participants, celebrities, advertisers, affiliate TV stations, public service groups, others *nature of stakeholder relationships is another way in which the environment influences managers more obvious/secure relationships are, more influence managers have over organizational outcomes

Discuss how the external environment affects managers.

3 ways external environment affects managers; 1- its impact on jobs and employment 2- the amount of environmental uncertainty 3- the nature of stakeholder relationships

26. Which generation is predicted to be the most diverse and multicultural of any generation in the US?

Generation Z

stability strategy

a corporate strategy in which an organization continues to do what it is currently doing

strategic management process

a six-step process that encompasses strategy planning, implementation, and evaluation

competitive intelligence

a type of environmental scanning that gives managers accurate information about competitors

Rudi's 1-5 Jane​ Miller, CEO of​ Rudi's Organic​ Bakery, believes that culture change​ doesn't happen​ overnight, but does require everyone to be onboard. This represents which of the​ following?

culture is shared Even though individuals may have different​ backgrounds, they tend to describe the organizational culture in similar terms. This is one way to tell if the culture is shared.

stable environment

if change is minimal a stable environment might be one there no new competitors, few technological breakthroughs by current competitors, little activity by pressure groups to influence the organization, etc i.e. Zippos lighters - few competitors - little technological change main external concern maybe declining tobacco use music industry dynamic highly uncertainunpreditable environment - digital formats, apps, music-streaming sites, artists releasing selected song on personal social media accounts have turned industry upside down/brought high levels of uncertainty

1-4 Steve has been given a team that he now leads with the expectation that he can reach the new sales goal for the southeast area.​ Steve's position is best described as which of the​ following?

management

strategies

plans for how the organization will do what it's in business to do, how it will compete successfully and how it will attract its customers in order to achieve its goals

strategic planning

plans that apply to the entire organization and encompass the organization's overall goals

MNC (multinational corporation)

any type of international company that maintains operations in multiple countries

How Does Culture Affect What Employees Do?

"I think of culture as guardrails... what you stand for, essentially the ground rules so that people know how to operate Ten percent of executives say they HAVE NOT identified or communicated an organizational culture Apache Corp one of best performers in independent oil drilling business b/c fashioned culture that values risk taking/quick decision making potential hires judged on initiative shown completing projects other companies employees rewarded meet profit/production goals B/c organization's culture constrains what can do/cannot do/how they manage - particularly relevant to managers. Such constraints rarely explicit not written down unlikely spoken but they're there all managers learn what to do and not to do in their organization ex of values - look busy even if you're not - if you take risks and fail around here, you'll pay dearly for it - before you make a decision, run it by your boss so that he or she is never surprised - we make our product only as good as the competition forces us to do - what made us successful in the past will make us successful in the future - if you want to ge tto the top here, you have to be a team player

Why Is Innovation Important?

"Nothing is more risky than not innovating" * Innovation means doing things differently, exploring new territory, and taking risks * In today's challenging environment, **innovation** is critical and managers need to understand what, when, where, how, and why innovation can be fostered and encouraged throughout an organization. Managers need to be personally innovative and to encourage their employees to be innovative.

What can the design thinking approach teach managers about making better decisions? Big data is changing the way managers make decisions.

(1) the first step in the decision-making process of identifying problems. (2) influence how managers identify and evaluate alternatives—steps 2 through 5 in the decision-making process.

Learning Organizational Culture

* An organization's culture generally reflects the vision or mission of its founders, who establish the early culture by projecting an image of what the organization should be and what its values are * Employees most commonly learn an organization's culture through its stories, rituals, material symbols, and language

Managerial Decisions Influenced by Culture

* As shown here in Exhibit 2-5, a manager's decisions are influenced by the culture in which he or she operates. An organization's culture, especially a strong one, influences and constrains the way managers plan, organize, lead, and control. * For example, the culture influences managerial **planning** about the degree of risk that plans should contain, whether plans should be developed by individuals or teams, or the amount of environmental scanning in which management will engage. * With **organizing activities**, culture influences how much autonomy should be designed into employees' jobs, whether tasks should be done by individuals or in teams, and the degree to which department managers interact with each other. * When it comes to **leading**, organization culture helps determine the degree to which managers try to increase employee job satisfaction, appropriate leadership styles, and whether all disagreements - even constructive ones - should be eliminated * Finally, the culture influences managers' **controlling** activities; for example, whether they impose external **controls** or to allow employees to control their own actions which criteria should be emphasized in employee performance evaluations, and the repercussions for exceeding one's budget.

Decision-Making Conditions

* Certainty * Risk * Uncertainty The ideal situation for making decisions is one of certainty, which is a situation where a manager can make accurate decisions because the outcome of every alternative is known However, a far more common situation is one of risk, in which the decision maker is able to estimate the likelihood of certain outcomes based on data from past personal experiences or secondary information that lets the manager assign probabilities to different alternatives. Uncertainty means that decision maker is not certain about the outcomes and can't even make reasonable probability estimates. The choice of alternatives is influenced by the limited amount of information and by the psychological orientation of the decision maker.

Social Responsibility

* Corporate social responsibility (CSR) * Social obligations * Social responsiveness * **Social responsibility** refers to a business's intention, beyond its legal and economic obligations to do the right things and act in ways that are good for society Social responsibility adds an ethical imperative to do those things that make society better and to avoid those things that could make it worse. * **Social obligations** are activities a business engages in to meet certain economic and legal responsibilities. It does the minimum that the law requires and only pursues social goals to the extent that they contribute to its economic goals. * **Social responsiveness** is characteristic of the business firm that engages in social actions in response to a popular social need. Managers in these companies are guided by social norms and values and make practical, market-oriented decisions about their actions.

Strategic Weapons

* Customer service * Employee skills & loyalty * Innovation * Quality * Social media * Big data In today's intensely competitive and chaotic marketplace, organizations are looking for whatever "weapons" they can use to do what they're in business to do and to achieve their goals. We think six strategic "weapons" are important in today's environment: customer service, employee skills and loyalty, innovation, quality, social media, and big data. We've covered customer service in previous chapters and now we'll look at quality, social media, and big data. Many organizations employ quality practices to build competitive advantage and attract and hold a loyal customer base. If implemented properly, quality is a way for an organization to create a sustainable competitive advantage. If a business is able to continuously improve the quality and reliability of its products, it may have a competitive advantage that can't be taken away. Incremental improvement is something that becomes an integrated part of an organization's operations and can develop into a considerable advantage. To promote quality, managers in diverse industries—such as health care, education, and financial services—are discovering the benefits of benchmarking, which is the search for the best practices among competitors and noncompetitors that lead to their superior performance. Successful social media strategies should (1) help people—inside and outside the organization—connect; and (2) reduce costs or increase revenue possibilities or both. As managers look at how to strategically use social media, it's important to have goals and a plan. Big data can be an effective counterpart to the information exchange generated through social media. All the enormous amounts of data collected about customers, partners, employees, markets, and other quantifiables can be used to respond to the needs of these same stakeholders. With big data, managers can measure and know more about their businesses and "translate that knowledge into improved decision making and performance." Case in point: When Walmart began looking at its enormous database, it noticed that when a hurricane was forecasted, not only did sales of flashlights and batteries increase, but so did sales of Pop-Tarts. Now, when a hurricane is threatening, stores stock Pop-Tarts with other emergency storm supplies at the front entrance. This helps them better serve customers and drive sales.

Module 2 Ch. 4 Foundations of Decision Making

* Describe the decision-making process * Explain the three approaches managers can use to make decisions * Describe the types of decisions and decision-making conditions managers face * Discuss group decision making * Discuss contemporary issues in managerial decision making

2-3 Define what organizational culture is and explain why it's important

* Each of us has a unique personality that influences the way we act and interact. An organization has a personality too - we call it CULTURE * Google has created a creative and innovative culture at their headquarters in California with an android googleplex, bikes, and bringing your dog to work.

Management by Objectives

* Goal specificity * Participative decision making * Explicit time period * Performance feedback Instead of using traditional goal setting, many organizations use management by objectives (MBO), a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance. A manager using this approach would sit down with each member of his or her team to set goals and periodically review whether progress is being made toward achieving those goals. MBO programs have the four elements listed on the slide. MBO uses goals to both make sure employees are doing what they're supposed to be doing and to motivate them. Studies show that actual MBO programs can increase employee performance and organizational productivity, and that goal setting can effectively motivate employees.

Organizational Stakeholders

* Herein Exhibit 2-3 we see the most common stakeholders in an organization. * Note that these stakeholders include both internal and external groups because both groups can affect what an organization does and how it operates * Managers benefit from good management of stakeholder relationships because stronger relationships can improve the predictability of environmental changes, lead to more successful innovations, foster a greater degree of trust among stakeholders, and increase organizational flexibility to reduce the impact of change.

organizational culture is? why is it important?

* culture is perceived - not somehting that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization * culture is descriptive - concerned w/ how members perceive or describe the culture, not with whether they like it * culture is shared - even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar ways

The Importance of Strategic Management

* It has a positive impact on organizational performance * It prepares managers to cope with changing situations * It guides managers to examine relevant factors in planning future action Strategic management is important to avoid weakening one's position due to poor economic conditions and myriad external and interval variables. Two strategies that helped clothing chain retailer Buckle Inc. were its location strategy of not placing the majority of its 400-plus stores in states falling on hard times and a differentiation strategy of offering customer perks, such as custom pants fittings and free hemming of its jeans. Reasons why strategic management is so important include: 1. It can make a difference in how well an organization performs. Research has found a generally positive relationship between strategic planning and performance. 2. It prepares managers in organizations of all types and sizes to cope with continually changing situations and to examine relevant factors in planning future actions. 3. Each part of an organization needs to work together to achieve the organization's goals; strategic management helps accomplish this. For example, with more than 2.1 million employees worldwide working in various departments, functional areas, and stores, Walmart uses strategic management to help coordinate and focus employees' efforts on what's most important. Strategic management isn't just for business organizations. Organizations such as government agencies, hospitals, educational institutions, and social agencies also need strategic management. For example, the skyrocketing costs of a college education, competition from for-profit companies offering alternative educational environments, cuts to state budgets, and cutbacks in federal aid for students and research have led many university administrators to assess their colleges' aspirations and identify a market niche in which they can survive and prosper.

Welcome to the New World of Management Changing Workplaces + Changing Workforce

* Managers today are dealing with changing workplaces, a changing workforce, global economic and political uncertainities, and changing technology. Distributed labor companies are changing the face of temporary work. Some 30-45 percent of the world's work force works from home or are virtual employees. More and more businesses are relying on apps and mobile-enhanced Websites to run their businesses. * Managers everywhere are likely to have to manage in changing circumstances, which means that how managers manage is changing. We will now look at four specific changes that are increasingly important to organizations and managers everywhere: customers, innovation, social media, and sustainability.

3-2 Discuss how society's expectations are influencing managers and organizations

* Many managers believe that society expects organizations and managers to be responsible and ethical. However, judging from recent financial scandals at Enron, Bernard Madoff Investment Securities, HealthSouth, and others, managers don't always act responsibly or ethically. * This photo is part of Artsana's global 'Happiness Goes from Heart to Heart' project aimed at treating childhood heart disease. The Italian baby care product maker views the project as an important component of its mission to make children happy and give them something to smile about.

Criticisms of Formal Planning

* May create rigidity * Can't replace intuition and creativity * Focuses attention on today's success, not tomorrow's survival * Reinforces success, which may lead to failure Although it makes sense for an organization to establish goals and direction, critics have challenged some of the basic assumptions of planning. Planning may create rigidity with goals and a timetable that are set under the assumption that the environment won't change. Managers need to remain flexible and not be tied to a course of action simply because it's the plan. 1. Formal plans cannot replace intuition and creativity. Planning should enhance and support intuition and creativity, not replace it. 2. Planning focuses managers' attention on today's competition, not on tomorrow's survival. Formal planning tends to focus on how best to capitalize on existing business opportunities instead of ways to reinvent the industry. Instead of focusing on today, managers should plan with an eye to untapped opportunities. 3. Formal planning reinforces success, which may lead to failure. It's difficult to shift from the comfort of what works to the uncertainty of the unknown. However, managers may need to face that unknown and do things in new ways to be even more successful.

Advantages of Group Decisions

* More complete information.27 * Diversity of experiences and perspectives brought to the decision process.28 * More alternatives generated due to greater quantity and diversity of information, especially when group members represent different specialties. * Increased acceptance of a solution by having people who will be affected by a certain solution and who will help implement it participate in the decision.29 * Increased legitimacy because the group decision-making process is consistent with democratic ideals, and decisions made by groups may be perceived as more legitimate than those made by a single person, which can appear autocratic and arbitrary.

Weighing Criteria Step 3

* Most important criterion assigned a weight of 10 * Other weights assigned against this standard Criterion Weight Price 10 Interior comfort 8 Durability 5 Repair record 5 Performance 3 Handling 1 In many decision-making situations, the criteria are not equally important, so it's necessary to allocate weights to the items listed in Step 2 to factor their relative priority into the decision. Step 3: This is Step 3 of the decision-making process. A simple approach is to give the most important criterion a weight of 10 and then assign weights to the rest of the criteria against that standard to indicate their degree of importance. Thus, a criterion that you gave a 5 is only half as important as the highest-rated criterion. As shown in Exhibit 4-2 lists the criteria and weights that were developed for the car purchase decision. Price is the most important criterion in this person's decision, performance and handling having low weights in comparison.

Contemporary Approaches Systems Approach

* Most of the early approaches to management focused on managers' concerns inside the organization. Beginning in the 1960s, management researchers began to look at what was happening in the environment outside the organization. See Chart: Environment Organization - Inputs: raw materials, human resources, capital, technology, information - Transformation Process: Employees' work activities, Management activities, Technology and operations methods - Outputs: Products and services, Financial results, Information, Human results The **systems approach** views systems as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Organizations function as **open systems**, which means they are influenced by, and interact with, their environments. Exhibit HM-2 illustrates an organization as an open system. A manager must efficiently and effectively manage all parts of the system to achieve established goals.

7 Dimensions of Organizational Culture

* range from low (not typical of the culture) to high (especially typical of the culture) * provide a composite picture of the organization's culture - an organization's culture may be shaped by one particular cultural dimension more than the others, thus influencing the organization's personality and the way organizational members work i.e. Apple - product innovation focus (innovation and risk taking - company lives breathes new product development - employees work behaviors support that goal i.e. Southwest Airlines made employees central part of culture - people orientation - shows this through way treats them

Contemporary Issues

* Planning in dynamic environments * Environmental scanning Dynamic Environments= Planning Challenges Two issues currently affecting planning are: 1. Planning effectively in dynamic environments, and 2. How managers can use environmental scanning, especially competitive intelligence. • In today's changing and uncertain environment, managers should develop plans that are specific but flexible. Managers need to recognize that planning is an ongoing process and that plans serve as a road map—although the destination may change due to dynamic market conditions. The flexibility to change direction is particularly important as plans are implemented. Even when the environment is highly uncertain, it's important to continue formal planning to improve organizational performance. Persistence and practice in planning contributes to significant performance improvement. In dynamic environments, making a flatter hierarchy means lower organizational levels can set goals and develop plans because organizations have little time for goals and plans to flow down from the top. Managers should teach their employees how to set goals and to plan, and then trust them to do it. A manager's analysis of the external environment may be improved by environmental scanning, which involves screening large amounts of information to detect emerging trends. One of the fastest-growing forms of environmental scanning is competitive intelligence, which is accurate information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. Much of the competitor-related information managers need to make crucial strategic decisions is available and accessible to the public. In other words, competitive intelligence isn't organizational espionage. Advertisements, promotional materials, press releases, reports filed with government agencies, annual reports, want ads, newspaper reports, information on the Internet, and industry studies are readily accessible sources of information. Managers do need to be careful about the way information, especially competitive intelligence, is gathered to prevent any concerns about whether it's legal or ethical. Competitive intelligence becomes illegal corporate spying when it involves the theft of proprietary materials or trade secrets by any means.

Four Functions Approach

* Planning** * Organizing** * Leading** * Controlling** Managers perform certain activities, tasks, or functions as they direct and oversee others' work. This approach was first proposed by French Industrialist Henri Fayol. He said managers engaged in five management activities: plan, organize, command, coordinate, and control (POCCC). His choice of these five functions was based on his own observations of the mining industry, not from a formal survey. Today, those management functions have been condensed to the following four: 1. Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. 2. Organizing includes determining which tasks need to be done and by whom, how tasks are to be grouped, who reports to whom, and who will make decisions. 3. Leading includes motivating employees, selecting the most effective communication channel, and resolving conflicts. 4. Controlling includes monitoring performance, comparing it with goals, and correcting any significant deviations.

GLOBE: Dimensions of Cultural Difference Global Leadership and Organizational Behavior Effectiveness **Assertiveness Future Orientation Gender Differentiation Uncertainty Avoidance Power Distance Individualism/Collectivism In-group Collectivism Performance Orientation Humane Orientation**

* The GLOBE research team, using data from more than 17,000 managers in 62 societies around the world, has identified nine 9 dimensions in which national cultures differ: * Asssertiveness is the extent to which a society encourages people to be tough, confrontational, assertive, and competitive versus modest and tender. (The United States ranks high; Egypt ranks moderate; and Sweden ranks low) * Future orientation: indicates the extent to which a society encourages and rewards future-oriented behavior such as planning, investing in the future, and delaying gratification. (Canada ranks high; Slovenia ranks moderate; and Russia ranks low) * Gender differentiation captures the extent to which a society maximizes gender role differences. (South Korea ranks high; Italy ranks moderate; and Denmark ranks low) * Uncertainty avoidance is a society's reliance on social norms and procedures to alleviate the unpredictability of future events. (Germany ranks high; Israel ranks moderate; and Hungary ranks low) * Power distance is the degree to which members of a society expect power to be unequally distributed. (Thailand ranks high; England ranks moderate; and South Africa ranks low) * Individualism and collectivism is the degree to which individuals are encouraged to integrate into groups within organizations and society. (Greece is highly individualist; Hong Kong is moderately individualistic; and Singapore is collective) * In-group collectivism encompasses the extent to which members of a society take pride in their membership in small groups such as their family and circle of close friends and the organizations by which they are employed. (China ranks high; Qatar ranks moderate; and New Zealand ranks low) * Performance orientation refers to the degree to which a society encourages and rewards group members for performance improvement and excellence. (Taiwan is high; Spain is moderate; and Greece is low) * Humane orientation is the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. (Indonesia ranks high; Hong Kong ranks moderate; and France ranks low)

Should Organizations be Socially Involved? 3-2 exhibit

* The importance of corporate social responsibility surfaced in the 1960s when social activists questioned the singular economic objective of business. Even today, good arguments can be made for and against businesses being socially responsible, as shown here in Exhibit 3-2 * Managers regularly confront decisions that have a dimension of social responsibility, such as philanthropy, pricing, employee relations, resource conservation, product quality, and doing business in countries with oppressive governments.

Is the Manager's Job Universal? Profit vs. Not-for-profit National Borders

* The most important difference between the two is how performance is measured. Profit, or the "bottom line," is an unambiguous measure of a business organization's effectiveness. Not-for-profit organizations don't have such a universal measure, making performance measurement more difficult. But even not-for-profit organizations need to make money to continue operating. * If management concepts were transferable across countries, they would apply universally in all parts of the world. However, research shows that while concepts transfer easily among many English-speaking countries, management concepts will likely need to be modified when dealing with India, China, Chile, or other countries with economic, political, social, or cultural environments that differ from those of the so-called free-market democracies.

Disadvantages of Group Decisions

* Time-consuming—assembling the group, getting decisions made. * Minority domination can unduly influence final decision because group members are never perfectly equal—they differ in rank, experience, knowledge about the problem, influence on other members, verbal skills, assertiveness, etc.30 * Ambiguous responsibility. Group members share responsibility, BUT who is actually responsible for final outcome?31 Individual decision—it's clear. Group decision—it's not. * Pressures to conform. Have you ever been in a group where your views didn't match the group's consensus views and you remained silent? Maybe others felt the same way and also remained silent. This is what Irving Janis called groupthink, a form of conformity in which group members withhold deviant, minority, or unpopular views in order to give the appearance of agreement.3

Approaches to Planning

* Top-down traditional approach * Development by organizational members Organization plans can best be understood by looking at who does the planning. In the traditional approach, planning is done entirely by top-level managers who often are assisted by a formal planning department, which is a group of planning specialists whose sole responsibility is to help write the various organizational plans. Then the plans flow down through other organizational levels and are tailored to the particular needs of each level. Although this approach makes managerial planning thorough, systematic, and coordinated, too often the focus is on developing "the plan" which is later not implemented. Another planning approach involves the input of organizational members at the various levels and in the various work units who participate in developing the plans to meet their specific needs.

Where Does Culture Come From? mission of founders

* usually reflects the vision or missionof founders *founders project an image of what the organization should be and what its values are * founders can "impose" their vision on employees because of new organization's small size * organizational members create a shared history that binds them into a community and reminds them of "who we are"

Company Values Affect Managers' Behavior

**"Ready-aim-fire" versus "Ready-fire-aim"** * The link between values such as these and managerial behavior is fairly straightforward. Take, for example, a so-called "ready-aim-fire" culture. In such an organization, managers will study and analyze proposed projects endlessly before committing to them. However, in a "ready-fire-aim" culture managers take action and then analyze what has been done * If an organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings, managers are unlikely to pursue programs that are innovative, risky, long-term, or expansionary. * In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an authoritarian leadership style than a democratic one * The culture establishes for managers appropriate and expected behavior

Which Approach Takes the Prize?

***Functions Roles **Both approaches seem to do a good job of describing what managers do, BUT the function approach wins! Its clarity and simplicity in describing what managers do make it continually popular. But, don't ignore Mintzberg's roles approach; it does offer another way to describe what managers do**.

Decision Point: Corporate Strategy Goal Which of the corporate strategy goals should you pursue for Holden Evans? Select an option from the choices below and click Submit. A corporate strategy that focuses on growth by developing new products or seeking out new markets for Holden Evans' existing products. A corporate strategy that focuses on stability by defending Holden Evans' current market share and maintaining Country Comfort as an industry-leading brand. A corporate strategy that focuses on renewal, in case Holden Evans' products go into a decline and start to lose market share.

***MISSED You selected a corporate strategy that focuses on stability by defending Holden Evans' current market share and maintaining Country Comfort as an industry-leading brand. This was one of the best choices. A stability strategy would require that Holden Evans focus on protecting the core brand of Country Comfort Coffee instead of growing any new ventures, such as the pod coffee concept. Sometimes it is more important to focus your resources on protecting what you have instead of chasing growth opportunities. You might have chosen a growth strategy instead, but your choice was reasonable.

Why Is Strategic Management Important?

**1 - reason is that it can make a difference in how well an organization performs 2 - managers in organizations of all types and sizes face continually changing situations 3- organizations are complex and diverse and each part needs to work together to achieve the organization's goals** **strategic management isn't just for business organizations.** organizations such as government agencies, hospitals, educational institutions, and social agencies need it. Research has found a generally positive relationship between strategic planning and performance. better financial results than those organizations that don't. i.e. Buckle Inc. suffered from weak sales only during the last stages of the most recent economic downturn.strategy was offering customer perks such as custom pants fittings and free hemming on its jeans customer service enhancements like this helped differentiate

Ch. 5 Foundations of Planning What Is Planning and Why Do Managers Need to Plan? 5.1 Discuss the nature and purposes of planning.

**All managers plan**. **Planning is often called the primary management function because it establishes the basis for all the other things managers do as they organize, lead, and control.** planning involves defining the organization's objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. **It's concerned with ends (what is to be done) as well as with means (how it's to be done).**

What Contemporary Decision-Making Issues Do Managers Face?

**Bad decisions can cost millions.** three important issues— 1. national culture, 2. creativity and design thinking, and 3. big data—that managers face in today's fast-moving and global world.

What Are Some Criticisms of Formal Planning and How Should Managers Respond?

**Criticism**: Planning may create rigidity. can lock an organization into specific goals to be achieved within specific timetables Formal planning efforts can lock an organization into specific goals to be achieved within specific timetables. Such goals may have been set under the assumption that the environment wouldn't change. Forcing a course of action when the environment is random and unpredictable can be a recipe for disaster.

Does Formal Planning Improve Organizational Performance?

**DOES it PAY to PLAN?** Contrary to what the critics of planning say, the evidence generally supports the position that organizations should have formal plans. can't say that organizations that formally plan always outperform those that don't **Formal planning generally means higher profits, higher return on assets, and other positive financial results. **The quality of the planning process and the appropriate implementation of the plan probably contribute more to high performance than does the extent of planning. **In those organizations where formal planning did not lead to higher performance, the environment—for instance, governmental regulations, unforeseen economic challenges, and so forth—was often to blame. Why? Because managers have fewer viable alternatives. **One important aspect of an organization's formal planning is strategic planning, which managers do as part of the strategic management process.**

Demographcs

**Demography is destiny** Age Cohorts - Baby Boomers - Gen X - Gen Y - Gen Z * Demographics refers to the characteristics of a population used for purposes of social studies. It has a significant impact on how managers manage and include such factors as age, income, sex, race, education level, ethnic makeup, employment status, geographic location, and more * Age is a particularly important demographic for managers because the workplace often encompasses different age groups * Baby Boomers are those individuals born between 1946 and 1964. The sheer number of people in that cohort means they've had significant impact on every aspect of the external environment (from the educational system to entertainment/lifestyle choices to the Social Security system and so forth) as they've gone through various life cycle stages. * Gen X is used to describe those individuals born between 1965 and 1977. It followed the baby boom and is one of the smaller age cohorts * Gen Y (or the "Millennials") encompasses those individuals born between 1978 and 1994. From technology to clothing styles to work attitudes, Gen Y is impacting organizational workplaces. helping shape today workplace majority age group in workforce Then there is Gen Z - the youngest identified age group, basically teens and middle-schoolers. This group has always been digitally connected - their primary means of social interaction is online. * Demographic age cohorts are important to our study of management because large numbers of people at certain stages in the life cycle can constrain decisions and actions taken by businesses, governments, educational institutions, and other organizations. Studying demographics involves looking at current statistics and future trends. For instance, recent analysis of birth rates shows that more than 80 percent of babies being born worldwide are from Africa and Asia. And here's an interesting face: India has one of the world's youngest populations - by 2020, the median age will be 29. And by 2050, it's predicted that China will have more people age 65 and older than the rest of the world combined.

UNDERSTANDING DESIGN THINKING.

**Design thinking** has been described as "approaching management problems as designers approach design problems." The way managers approach decision making—using a rational and analytical mindset in identifying problems, coming up with alternatives, evaluating alternatives, and choosing one of those alternatives—may not be the best and certainly not the only choice in today's environment.

The Changing Workforce

**Diversity** is visible in age, gender, race, physical attributes, styles of dress, and personality type. * Today's domestic and global organizational workplaces reflect tremendous diversity and managers in those workplaces are looking for ways to value and develop that diversity. * Whether in a workplace or classroom, diversity is visible in age, gender, race, physical attributes, styles of dress, and even personality type

Management by objectives (MBO)

**Management by objectives (MBO)** isn't new—it was a popular management approach in the 1960s and 1970s. The concept can be traced back to Peter Drucker, who first popularized the term in his 1954 book The Practice of Management.29 Its appeal lies in its emphasis on converting overall objectives into specific objectives for organizational units and individual members. How Is MBO Used? MBO makes goals practical and operational as they "cascade" down through the organization. Overall broad objectives are translated into specific objectives for each succeeding organizational level—division, departmental, and individual. Result: a hierarchy that links objectives at one level to those at the next level. For each individual employee, MBO provides specific personal performance objectives. If all individuals achieve their goals, then the unit's goals will be attained. If all units attain their goals, then the divisional goals will be met until . . . BOOM . . . the organization's overall goals are achieved! Does MBO Work? Assessing MBO effectiveness is not easy! Research on goal-setting gives us some answers: + Specific, difficult-to-achieve goals—an important part of MBO—produce a higher level of output than do no goals or generalized goals such as "do your best." + Feedback—also an important part of MBO—favorably affects performance because it lets a person know whether his or her level of effort is sufficient or needs to be increased. − Participation—also strongly advocated by MBO—has not shown any consistent relationship to performance. ***ABSOLUTELY CRITICAL TO SUCCESS of MBO program: ***Top management commitment to the process. When top managers have a high commitment to MBO and are personally involved in its implementation, productivity gains are higher than without that commitment.

TYPES OF GOALS.

**Most company goals can be classified as either strategic or financial** Financial goals are related to the financial performance of the organization, while strategic goals are related to all other areas of an organization's performance. These goals are **stated goals**—official statements of what an organization says, and what it wants its stakeholders to believe, its goals are. However, stated goals—which can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers—are often conflicting and influenced by what various stakeholders think organizations should do. Such statements can be vague **Stated vs. Real Goals** an organization's **real goals** —those goals an organization actually pursues—observe what organizational members are doing. **Actions define priorities** Knowing that real and stated goals may differ is important for recognizing what you might otherwise think are inconsistencies.

How Do Managers Set Goals and Develop Plans? 5.3 Compare and contrast approaches to goal setting and planning.

**Planning = Goals + Plans** Planning involves two important aspects: goals and plans. **Goals (objectives)** are desired outcomes or targets. They guide managers' decisions and form the criteria against which work results are measured. **Plans are documents** that outline how goals are going to be met. They usually include resource allocations, budgets, schedules, and other necessary actions to accomplish the goals. As managers plan, they develop both goals and plans.

What Happens in Decision Implementation?

**Step 7** choice process completed step 6 = decision may fail if not properly implemented - **decision implement** involves putting decision into action if others affected by decision, implementation also includes conveying decision to those affected and getting their commitment to it **Want your people to be committed to a decision? :Let them participate in decision making process

What is last step in the decision process?

**Step 8** managers appraise outcome of decision to see whether problem was resolved. Did alternative chosen step 6 and implemented step 7 accomplished desired result?

What Is Strategic Management?

**Strategic management is what managers do to develop an organization's strategies.**

Workplace Diversity - one of the most popular business topics over the last two decades. ranks with modern business disciplines such as quality, leadership, ethics also one of the most controversial and least understood topics

**Workplace Diversity** - the ways in which people in an organization are both different from and similar to one another. * Workplace diversity is defined as the ways in which people in an organization are different from and similar to one another. * Diversity has been one of the foremost business topics over the last two decades, along with such modern business disciplines as quality, leadership, and ethics. * Based in civil rights legislation and social justice, the word "diversity" has traditionally been associated with fair hiring practices and the prevention of discrimination and inequality. * today, diversity focuses on both the differences and similarities of employees, which reinforces the belief that managers and organizations should view employees as having qualities in common as well as differences, and find ways to develop strong relationships with and engage their entire workforce.

Efficiency and Effectiveness

**efficiency is concerned with the means of getting things done - resource usage** **effectiveness is concerned with the ends, or attainment of organizational goals goal attainment** The **concepts are different, but interrelated**. It's easier to be effective if you ignore efficiency. Poor management is often due to both inefficiency and ineffectiveness OR effectiveness achieved without regard for efficiency Good management is concerned with both attaining goals (effectiveness) and doing so as efficiently as possible

HOW DOES THE NOMINAL GROUP TECHNIQUE WORK?

**nominal group technique** helps groups arrive at a preferred solution by restricting discussion during the decision-making process.38 Group members must be present, as in a traditional committee meeting, but they're required to operate independently. They secretly write a list of general problem areas or potential solutions to a problem. The chief advantage of this technique is that it permits the group to meet formally but does not restrict independent thinking or lead to groupthink, as can often happen in a traditional interacting group.

Formal planning

**the term planning in this book, we're referring to formal planning.** (1) defining specific goals covering a specific time period, (2) writing down these goals and making them available to organization members, and (3) using these goals to develop specific plans that clearly define the path the organization will take to get from where it is to where it wants to be.

2. Bounded Rationality "a. more. realistic. approach"

- **bounded rationality**: managers make rational decisions, but are limited (bounded) by their ability to process information. - most decisions managers make don't fit the assumption of perfect rationality - no one can possibly analyze *all* that information on *all* alternatives so they... - **satisfice** - that is, accept solutions that are "good enough," rather than spend time and other resources trying to maximize i.e. financial planner job $55K w/in 100 miles home - accept job 50 miles away $52K **BUT** if you **maximized** search all alternatives - found job 25 miles away w/ starting salary $57K first job **satisfactory** "good enough" decision making rational w/in bounds of abilities process information

Organizing Approach

- How many employees should I have report directly to me?? - How much centralization should there be in an organization? - How should jobs be designed? - When should the organization implement a different structure?

informal planning

- In informal planning, very little, if anything, is written down - What is to be accomplished is in the heads of one or a few people - the organization's goals are rarely verbalized. - describes the planning that takes place in many smaller businesses. - idea of where he or she wants to go and how he or she expects to get there. - planning is general and lacks continuity - informal planning in some large organizations, while some small businesses will have sophisticated formal plans.

Disadvantages of Group Decision Making

- Time-consuming - Minority domination - Ambiguous responsibility - Pressures to conform Disadvantages: - Time-consuming - assembling the group, getting decisions made - Minority domination can unduly influence final decision because group members are never perfectly equal - they differ in rank, experience, knowledge about the problem, influence on other members, veral skills, assertiveness, etc. - Ambiguous responsibility. Group members share responsibility BUT who is actually responsible for final outcome? Individual Decision - it's clear. Group decision - it's not. - Pressures to conform: groupthink, a form of conformity in which group members withhold deviant, minority, or unpopular views in order to give the appearance of agreement

Different Views of Ethics

- Utilitarian view of ethics - Rights view of ethics - Theory of justice view of ethics * To better understand what's involved in managerial ethics, let's look at three different perspectives on how managers make ethical decisions. * The **utilitarian view of ethics** says that ethical decisions are made solely on the basis of their outcomes or consequences. The goal of utilitarianism is to provide the greatest good for the greatest number of people. * In the **rights view of ethics**, individuals are concerned with respecting and protecting individual liberties and privileges such as the right of free consent, the right to privacy, and the right of free speech. Under this view, making ethical decisions is simple because the goal is to avoid interfering with the rights of others who might be affected by the decision. * Lastly, under the **theory of justice view of ethics**, an individual is equitable, fair, and impartial in making decisions. For instance, such a manager would pay individuals of similar skill, performance, or responsibility level the same wage and wouldn't base that decision on gender, personality, or favoritism.

Adapting to a Changing Workforce

- Work-life balance programs, - contingent workforce, and - generational differences * Managers are adapting to changes taking place in the workforce with such diversity initiatives as work-life balance programs, contingent jobs, and recognition of generational differences. * Due to 24/7 global business and technological access and dual-career families, many organizations now offer **family-friendly benefits** that provide flexible scheduling options, on-site child care, flextime, job sharing, telecommuting, part-time employment and more. anytime on any day, consult w/ colleagues 8-10 time zones away "on call" 24 hrs a day communication technology allows work from home, in cars, Tahiti do work anywhere, anytime means no escaping from work * The labor force has begun shifting away from traditional full-time jobs toward a **contingent workforce** of part-time, temporary, and contract workers who are hired on an as-needed basis. Supervising and motivating such independent contractors has its own set of challenges and expectations for managers. * **Generational differences** present challenges ranging from appearance to technology and management style, which can be accommodated by flexibility. For example, Gen Y employees want bosses who are open-minded; experts in their field even if they aren't tech savvy; organized; and want teachers who respect their need for work-life balance, provide constant feedback, communicate in compelling ways, and provide stimulating learning.

Well-Written Goals

- Written in terms of outcomes rather than actions - Measurable and quantifiable - Clear as to a time frame - Challenging yet attainable - Written down - Communicated to all necessary organizational members No matter which approach is used, goals have to be written and clearly indicate what the desired outcomes are, and some goals more clearly indicate what the desired outcomes are. Exhibit 5-6 lists the characteristics.

Encouraging ethical behavior

- code of ethics - ethical leadership - ethics training * Managers can do a number of things if they're serious about encouraging ethical behavior: hire employees with high ethical standards, establish codes of ethics, lead by example, link job goals and performance appraisal, provide ethics training, and implement protective mechanisms for employees who face ethical dilemmas. * Three ways in which managers can encourage ethical behavior and create a comprehensive ethics program include: 1. Establishing a code of ethics 2. Providing ethical leadership 3. Offering ethics training A **code of ethics** should be specific enough to guide organizational members in what they're supposed to do, yet loose enough to allow for freedom of judgment. - The effectiveness of such codes depends heavily on whether management supports them and ingrains them into the corporate culture, and on how individuals who break the codes are treated. - If management considers the codes to be important, regularly reaffirms their content, follows the rules themselves, and publicly reprimands rule breakers, ethics codes can be a strong foundation for an effective corporate ethics program.

What Does it Mean to Be "Global"?

- exchanging goods and services with consumers in other countries - using managerial and employee talent from other countries - using financial sources and resources outside home country * organizations are considered global if they exchange goods and services with consumers in other countries. Capital globalization is the most common approach to being global. * Many organizations are considered global because they use managerial and technical employee talent from other countries. One factor that affects talent globalization is immigration laws and regulations. Managers must be alert to changes in those laws. * An organization can be considered global if it uses financial sources and resources outside its home country, which is known as financial globalization. As might be expected, the global economic slowdown severely affected the availability of financial resources globally

What is the economy like today?

- global productivity still slow - global trade is sluggish - U.S. employment is up - Is the American dream still a possibility? * The economic crisis that gripped the United States and other countries in 2008 appears to finally be over, though growth and productivity in Europe is still behind that of the United States. Global trade is also sluggish, prompting some analysts to ask whether the world is becoming less connected. * With an unemployment rate of just 5.5 percent, U.S. employment is up, but much of that is related to low-wage jobs. Further complicating the picture is the fact that some seven million Americans are trapped in part-time jobs, unable to find full-time positions. Moreover, just 64 percent of Americans still believe that the so-called American dream that hard work leads to success and riches is real.

how managers can encourage ethical behavior

- hire employees w/ high ethical standards - establish codes of ethics - lead by example - link job goals and performance appraisal - provide ethics training - implement protective mechanisms for employees who face ethical dilemmas if organization has comprehensive ethics program in place it can potentially improve an organization's ethical climate - key variable potentially - well-designed ethics program does not guarantee the desired outcomes - sometimes mostly public relations gestures that do little to influence managers/employees

2-2 Discuss how the external environment affects managers How Does External Environment Affect Managers?

- jobs and employment - assessing environmental uncertainity - managing stakeholder relationships * There are three ways that the **external environment** affects managers: 1. Its impact on **jobs and employment** 2. The amount of **environmental uncertainty** 3. The nature of **stakeholder relationships** As external environmental conditions change, managers face the impact of these changes on jobs and employment. Economists predict that about one quarter of the 8.4 million U.S. jobs eliminated during the most recent economic downturn won't be reinstated Such readjustments create challenges for managers who must balance work demands with having enough people with the right skills to do the organization's work. Changes in external conditions not only affect the types of jobs available but they also affect how the jobs are created and managed. For example, many employers use flexible work arrangements and contact freelancers or temporary workers

Does Social Involvement Affect Economic Performance?

- positive ? - negative? - neutral? * Numerous studies have examined this issue and though most found a small positive relationship, no generalizable conclusions can be made because these studies have shown that the relationship is affected by various contextual factors such as firm size, industry, economic conditions, and regulatory environment. * Other researchers have questioned causation. If a study showed that social involvement and economic performance were positively related, this didn't necessarily mean that social involvement caused higher economic performance. It could simply mean that high profits afforded companies the "luxury" of being socially involved. * One study found that if the flawed empirical analyses in these studies were "corrected," social responsibility had a neutral impact on a company's financial performance. Another found that participating in social issues not related to the organization's primary stakeholders had a negative effect on shareholder value. * Despite all these concerns, after reanalyzing several studies, other researchers have concluded that managers can afford to be (and should be) socially responsible.

1924 - Mid-1930s The Hawthorne Studies - most important contribution to the behavioral approach to management

- studies conducted at the Hawthorne Works of the Western Electric Company - provided new insights into individual and group behavior at work - concluded that group pressures can significantly impact individual productivity * From 1924 to the mid-1930s, the Hawthorne Studies - conducted at the Hawthorne Works of the Western Electric Company in Illinois - were the most important contribution to the behavioral approach to management. * Initially designed as a scientific management experiment to measure the effect of various lighting levels on worker productivity, these studies revealed that pressures significantly (group pressures) affect individual productivity and that people behave differently when being observed called in Harvard professor Elton Mayo * The Hawthorne Studies had a dramatic impact on management beliefs about the role of people in organizations and led to a new emphasis on the human behavior factor in organizational management.

Managers want

- to be good decision makers - exhibit good decision-making behaviors so they appear competent and intelligent to their boss, employees, coworkers

1940-1950s The Quantitative Approach

- used quantitative techniques to improve decision making - W. Edwards Deming and Joseph M. Juran total quality management (TQM) * During the 1940s and 1950s, the **quantitative approach** provided tools for managers to make their jobs easier. The quantitative approach to management - which is the use of quantitative techniques to improve decision making - evolved from mathematical and statistical solutions developed for military problems during World War II. After the war was over, many of these techniques used for military problems were applied to businesses. Quality experts W. Edwards Deming and Joseph M. Juran's ideas became the basis for **total quality management, or TQM**, a management philosophy devoted to continual improvement and response to customer needs and expectations.

Good Stakeholder Relationships

-Can lead to desirable organizational outcomes -Can affect organizational performance -Demonstrate doing the "right" thing * Good stakeholder relationships can lead to desirable organizational outcomes such as improved predictability of environmental changes, more successful innovations, greater degree of trust among stakeholders, and greater organizational flexibility to reduce the impact of change. * Stakeholder management can affect organizational performance. Management researchers who have looked at this issue are finding that managers of high performing companies tend to consider the interests of all major stakeholder groups as they make decisions. * Another reason for managing external stakeholder relationships is that it's the:"right" thing to do. Because an organization depends on these external groups as sources of inputs (resources) and as outlets for outputs (goods and services), managers should consider the interests of stakeholders as they make decisions. We'll address this issue in more detail in the next chapter when we look at corporate social responsibility.

Why would anyone - especially managers - escalate commitment to a bad decision?

-hate to admit that initial decision may have been flawed. - don't want to search for new alternatives

Ch. 3 Integrative Managerial Issues Explain globalization and its impact on organizations

-organizations considered global if they exchange goods and services w/ consumers in other countries, if they use managerial and technical employee talent from other countries, or if they use financial sources and resources outside their home country. Businesses going global are usually referred to as multinational corporations (MNCs) As an MNC, may operate as multidomestic corporation, a global corporation, or a transnational or borderless organization When a business goes global, it may start w/ global sourcing, move to exporting or importing, use licensing or franchising, pursue a global strategic alliance or set up a foreign subsidiary. In doing business globally, managers need to be aware of different law and political and economic systems. Biggest challenge is in understanding the different country cultures. Two cross-cultural frameworks that managers can use are Hofstede's and GLOBE

4 Management Functions

1 - Planning - includes defining goals, establishing strategy, and developing plans to coordinate activities 2- Organizing - includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and who will make decisions 3- Leading - includes motivating employees, directing the activities of others, selecting the most effective communicaiton channel, and resolving conflicts 4- Controlling - includes monitoring performance, comparing it with goals, and correcting any significant deviations.

Explain why it's important to study management

1- all of us interact with organizations daily so we have a vested interest in seeing that organizations are well managed. 2- in your career you will either manage or be managed. 3- studying management you can gain insights into the way your boss and fellow employees behave and how organizations function.

How can managers avoid the negative effects of these decision errors and biases?

1- be aware of them, don't use them 2- pay attention to "how" decisions are made, try to identify heuristics being used, critically evaluate how appropriate those are. 3- ask colleagues to help identify weaknesses in decision-making style and then work on improving those weaknesses.

2 main ways an organization's culture affects managers

1- its effect on what employees do and how they behave 2- its effect on what managers do

Managers should plan for at least four reasons.

1- planning establishes coordinated effort. gives direction to managers and nonmanagerial employees. all organizational members understand where the organization is going and what they must contribute to reach the goals, they can begin to coordinate their activities, thus fostering teamwork and cooperation. **not planning can cause organizational members or work units to work against one another and keep the organization from moving efficiently toward its goals.** 2- planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. It also clarifies the consequences of the actions managers might take in response to change. Planning, then, is precisely what managers need in a changing environment. 3- planning reduces overlapping and wasteful activities. Coordinating efforts and responsibilities before the fact is likely to uncover waste and redundancy. Furthermore, when means and ends are clear, inefficiencies become obvious. 4- planning establishes the goals or standards that facilitate control. If organizational members aren't sure what they're working towards, how can they assess whether they've achieved it? When managers plan, they develop goals and plans. When they control, they see whether the plans have been carried out and the goals met **If significant deviations are identified, corrective action can be taken. Without planning, there are no goals against which to measure or evaluate work efforts.**

3 ways external environment constrains and challenges managers

1-through its impact on jobs and empoyment 2- through the environmental uncertainty that is present 3- through the various stakeholder relationships that exist between an organization and its external constituencies

All Organizations Share 3 three common characteristics

1. it has a distinct purpose which is typically expressed as a goal or set of goals. i.e. Bob Iger, Walt Disney's president CEO said his company's goal is to create amazing family entertainment and to provide customers extraordinary experiences, which will lead to increasing shareholder value 2. is that people in an organization work to achieve these goals. How? By making decisions, engaging in work activities to make the desired goal(s) a reality i.e. Disney - employees work to create content/experiences so important to company's business - others provide supporing services, interact w/ guests (customers) directly 3. is that an organization is structured in some way that defines and limits the behavior of its members. i.e. Disney like most lg. corps. has fairly complex structure w/different businesses, depts, functional areas. w/in structure, rules, regulations, policies might guide what people can/can't do, some members supervise others, work teams might formed or disbanded, job descriptions might be created or changed so organizational members know what supposed to do. that structure is the setting within which managers manage

Ways Ethics Viewed

3 different perspectives how managers make ethical decisions

globalization and how affects organizations

Hewlett-Packard's senior VP compared Japan earthquake/tsunami to being in ER triage global supply chains like interconnected biological systems - can respond, heal quickly but also susceptible to weakness - disaster strikes i.e. natural or labor unrest =fragility of global supply chain

Three main corporate strategies #1 **Corporate Strategy**

1. **Growth Strategy.** Organization expands the number of markets served or products offered, either through its current business(es) or through new business(es). WAYS to grow: * Concentration: Growing by focusing on primary line of business and increasing the number of products offered or markets served in this primary business. * Vertical integration: Growing by gaining control of inputs or outputs or both. - Backward vertical integration—organization gains control of inputs by becoming its own supplier. - Forward vertical integration—organization gains control of outputs by becoming its own distributor. * Horizontal integration: Growing by combining with competitors. * Diversification: Growing by moving into a different industry. - Related diversification—different, but related, industries. "Strategic fit." - Unrelated diversification—different and unrelated industries. "No strategic fit." 2. **Stability Strategy.** Organization continues—often during periods of uncertainty—to do what it is currently doing; to maintain things as they are. - Examples: continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining current business operations. **The organization doesn't grow, but doesn't fall behind, either.** 3. **Renewal Strategy.** Organization is in trouble and needs to address declining performance. - Retrenchment strategy: Minor performance problems—need to stabilize operations, revitalize organizational resources and capabilities, and prepare organization to compete once again. - Turnaround strategy: More serious performance problems requiring more drastic action. In both renewal strategies, managers can (1) cut costs and (2) restructure organizational operations, but actions are more extensive in turnaround strategy.

Decision-Making Process Steps

1. Identification of a problem 2. Identification of Decision Criteria 3. Allocation of Weights to Criteria 4. Development of Alternatives 5. Analysis of Alternatives 6. Selection of an Alternative 7. Implementation of the Alternative 8. Evaluation of Decision Effectiveness

Fayol's Fourteen Principles of Management

1. division of work 2. authority 3. discipline 4. unity of command 5. unity of direction 6. subordination of individual interests to the general interest 7. remuneration 8. centralization 9. scalar chain 10. order 11. equity 12. stability of tenure personnel 13. initiative 14. Esprit de corps 1. Division of Work - this principle is the same as Adam Smith's "division of labor". Specialization increases output by making employees more efficient. 2. Authority - managers must be able to give orders. Authority gives them this right. Along with authority, however, goes responsibility. Whenever authority is exercised, responsibility arises. 3. Discipline - employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules. 4. Unity of Command - Every employee should receive orders from only one superior. 5. Unity of Direction - Each group of organizational activities that have the same objective should be directed by one manager using one plan. 6. Subordination of individual interests to the General Interest - The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration - Workers must be paid a fair wage for their services. 8. Centralization - Centralization refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralization for each situation. 9. Scalar Chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and if superiors are kept informed. Also called chain of command 10. Order - People and materials should be in the right place at the right time. 11. Equity - Managers should be kind and fair to their subordinates. 12. Stability of Tenure of Personnel - High employee turnover is inefficient. Management should provide orderly personnel and ensure that replacements are available to fill vacancies. 13. Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de Corps - Promoting team spirit will build harmony and unity within the organization.

means to be global 1- marketplace globalization (most common approach) 2- managerial/technical employee talent from other countries 3- financial globalization - uses financial sources & resources outside its home country

3 different ways organizations considered global -exchange goods/services w/ consumers in other countries 1- marketplace globalization most common approach to being global many organizations (esp. high-tech) considered global b/c use 2- use managerial and technical employee talent from other countries one factor affects talent globalization is immigration laws & regulations - managers must be alert to changes in laws 3- financial globalization - uses financial sources/resources outside its home country,

Ethical Workplaces today

41% 2013 * leaders serve as good role models * supervisors reinforce ethical behavior * colleagues support each other in doing right * employees participate in ethics training and are encouraged to know and follow the organization's code of ethics

UNDERSTANDING CREATIVITY. A study of lifetime creativity of 461 men and women found that: Fewer than 1 percent were exceptionally creative 10 percent were highly creative About 60 percent were somewhat creative.

A decision maker needs **creativity**: the ability to produce novel and useful ideas. These ideas are different from what's been done before but are also appropriate to the problem or opportunity presented. Why is creativity important to decision making? It allows the decision maker to appraise and understand the problem more fully, including "seeing" problems others can't see. However, creativity's most obvious value is in helping the decision maker identify all viable alternatives.

How Can Managers Use Environmental Scanning?

A manager's analysis of the external environment may be improved by **environmental scanning**, which involves screening large amounts of information to detect emerging trends One of the fastest-growing forms of environmental scanning is **competitive intelligence**, which is accurate information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. It seeks basic information about competitors: Who are they? What are they doing? How will what they're doing affect us? The Economic Espionage Act makes it a crime in the United States to engage in economic espionage or to steal a trade secret. Difficult decisions about competitive intelligence arise because often there's a fine line between what's considered **legal and ethical** and what's considered **legal but unethical**. Although the top manager at one competitive intelligence firm contends that 99.9 percent of intelligence gathering is legal, there's no question that some people or companies will go to any lengths—some unethical—to get information about competitors.49

unstructured problem

A problem that is new or unusual for which information is ambiguous or incomplete

Developing Alternatives Step 4

Alternatives: Jeep Compass Ford Focus Hyundai Elantra Ford Fiesta SES Volkswagen Golf Toyota Prius Mazda 3 MT Kia Soul BMW i3 Nissan Cube Toyota Camry Honda Fit Sport MT In Step 4, the decision maker lists the alternatives that could resolve the problem. The decision maker only lists the alternatives and does not attempt to appraise them in this step. Let's assume that our subject has identified 12 cars as viable choices: Jeep Compass, Ford Focus, Hyundai Elantra, Ford Fiesta SES, Volkswagen Golf, Toyota Prius, Mazda 3 MT, Kia Soul MW 335, Nissan Cube, Toyota Camry, and Honda Fit Sport MT.

Decisions Managers Make

Although everyone makes decisions in an organization, decision making is particularly important to managers and is part of all four managerial functions, as seen here in Exhibit 4-6 Most decision making is routine, such as deciding which employee will work which shift or how to resolve a customer's complaint. Managers can use three approaches to making decisions: 1. Rational decision making 2. Bounded rational decision making, and 3. Intuition

environmental scanning

An analysis of the external environment, which involves screening large amounts of information to detect emerging trends

4.5 Discuss contemporary issues in managerial decision making.

As managers deal with employees from diverse cultures, they need to recognize common and accepted behavior when asking them to make decisions. Some individuals may not be as comfortable as others with being closely involved in decision making, or they may not be willing to experiment with something radically different. Also, managers need to be creative in their decision making because creativity allows them to appraise and understand the problem more fully, including "seeing" problems that others can't see. Design thinking also influences the way that managers approach decision making, especially in terms of identifying problems and how they identify and evaluate alternatives. Finally, big data is changing what and how decisions are made, but managers need to evaluate how big data might contribute to their decision making.

Growth Strategy

An organization expands the number of markets served or products offered * Concentration * Vertical Integration * Horizontal integration * Diversification Growth strategy is a corporate strategy in which an organization expands the number of markets served or products offered, either through its current business or through new business. Because of its growth strategy, an organization may increase revenues, number of employees, or market share. Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. •An organization that grows by using concentration increases the number of products offered or markets served in its primary business. •A company can also grow by vertical integration, either backward, forward, or both. In backward vertical integration, the organization becomes its own supplier. In forward vertical integration, the organization becomes its own distributor. •In horizontal integration, a company grows by combining with competitors. Horizontal integration may be regulated so that one company does not monopolize the market. •Finally, an organization can grow through diversification, either related or unrelated. Related diversification is when a company combines with other companies in different, but related, industries. Unrelated diversification is when a company combines with firms in different and unrelated industries.

Assessing Environmental Uncertainty

Another constraint posed by external environments is the amount of uncertainty that exists, which can affect organizational outcomes. **Environmental uncertainty** refers to the degree of change and complexity in an organization's environment. This matrix shows these two aspects. * The first dimension of uncertainty is the degree of unpredictable change; that is a stable environment experiences minimal change and a dynamic environment experiences frequent change. For example, a stable environment might have no new competitors, few technological breakthroughs by current competitors, little pressure from groups trying to influence the organization, and so on. * The other dimension of uncertainty describes the degree of **environmental complexity**, which looks at the number of components in an organization's environment and the knowledge that the organization has about those components. * Therefore, an organization with few competitors, customers, suppliers or government agencies to deal with, or an organization that needs little information about its environment, has a less complex and more certain, stable environment, as seen in Cell 1. * So how does the concept of environmental uncertainty influence managers? As illustrated here, each of the four cells represents different combinations of degree of complexity and degree of change. * Cell 1 (a stable-simple environment) represents the lowest level of environmental uncertainty and Cell 4 ( a dynamic and complex environment) represents the highest level of environmental uncertainty. * Not surprisingly, managers have the greatest influence on organizational outcomes in Cell 1 and the least influence in Cell 4 * Because uncertainty is a threat to an organization's effectiveness, managers try to minimize it * Most industries today face more dynamic change, and consequently, their environments are more uncertain.

What Skills Do Managers Need? Skills and Competencies - Conceptual Skills - Interpersonal Skills - Technical Skills - Political Skills

Another way to describe what managers do is by looking at the skills they need for managing. Management researcher Robert L. Katz and others describe four critical skills: 1. **Conceptual skills** Analyzing and diagnosing complex situations to see how things fit together and to facilitate making good decisions. 2. **Interpersonal skills**: Working well with other people both individually and in groups by communicating, motivating, mentoring, and delegating. 3. **Technical skills**: Job-specific knowledge, expertise and techniques needed to perform work tasks. (For top-level managers - knowledge of the industry and a general understanding of the organization's processes and products; For middle- and lower-level managers - specialized knowledge required in the areas where they work - finance, human resources, marketing, computer systems, manufacturing, information technology). 4. **Political skills**: Building a power base and establishing the right connections so they can get needed resources for their groups.

Evaluating the Decision Step 8

Appraising the outcome of the decision - Was the problem resolved? In Step 8, the last step in the decision-making process, managers appraise the result of the decision to see whether the problem was resolved. Did the alternative chosen in Step 6 and implemented in Step 7 accomplish the desired result? Evaluating the results of a decision is part of the managerial control process, which we'll discuss in more detail in Chapter 14.

The Sharing Economy

Asset owners share with other individuals through peer-to-peer service, for a set fee, their underutilized physical assets of their knowledge, expertise, skills, or time * Airbnb, Uber, Zipcar, and SnapGoods are just a few examples of a fast-growing phenomenon called the **sharing economy**, in which asset owners share with other individuals through peer-to-peer service, for a set fee, their underutilized physical assets or their knowledge, expertise, skills, or time

5. ​Rudi's Bakery's decision to expand into​ gluten-free markets was part of its​ ________ plan; deciding how to produce for the selected market would be the result of its​ ________ plans. A. ​tactical; strategic B. ​strategic; tactical C. ​operational; strategic D. ​tactical; operational E. ​tactical; operational

B. ​strategic; tactical

25. Which popular name has been assigned to those individuals born between 1946-1964?

Baby Boomers

Learning Objectives At the end of this exercise, you should be able to demonstrate: LO 4.1: Describe the decision-making process. Scenario TriState Dairies is a food processor that packages and sells dairy products. At present their core business is selling 1) pasteurized, skimmed, and plain milk, and 2) yogurts and yogurt drinks. You are the Production Manager for the milk line and report to the Vice President of Production. You make sure the production line meets the required output each week, and you create budgets and forecasts for the department.

Background On the milk line, the first shift is composed of full-time workers and the second shift part-time workers. Their weekly shifts are scheduled to meet their availability to work and the changing demands of the milk market. You have always scheduled the first shift, and your assistant has always scheduled the second shift. You learn that your assistant is injured and will be out for six weeks. The second shift schedule is only created for one more week, and a new schedule is due out on Friday. You meet with Human Resources, and they assign an intern from their department to work for you for the next six weeks. The intern is studying business management at the local university. TriState Dairies has a long history of employing interns and hiring them into management positions after graduation. Since you once interned with TriState, you are looking forward to your role as a mentor.

Module 1 Ch. 1-2-3- History

Ch. 1-2-3- History

Contemporary Issue (cont.) Big Data

Big Data: the vast amounts of quantifiable information that can be analyzed by highly sophisticated data processing. Changing the way managers make decisions. With this type of data at hand, decision makers have very powerful tools to help them make decisions. However, experts caution that collecting and analyzing data for data's sake is wasted effort. Goals are needed collecting and using this type of information. As one individual said, "Big data is a descendant of Taylor's 'scientific management' of more than century ago." While Taylor used a stopwatch to time and monitor a worker's every movement, big data is using math modeling, predictive algorithms, and artificial intelligence software to measure and monitor people and machines like never before. But managers need to really examine and evaluate how big data might contribute to their decision making before jumping in with both feet - benefits of capturing the perspectives and strengths that a diverse workforce offers.

BIG DATA AS A STRATEGIC WEAPON **By helping a business do what it's in business to do, compete successfully, and attract and satisfy its customers in order to achieve its goals, big data is a critical strategic weapon.**

Big data can be an effective counterpart to the information exchange generated through social media. All the enormous amounts of data collected about customers, partners, employees, markets, and other quantifiables can be used to respond to the needs of these same stakeholders. With big data, managers can measure and know more about their businesses and "translate that knowledge into improved decision making and performance." hurricane threat - Walmart noticed flashlights batteries, Pop-Tart sales - now stock at front of store w/ flashlights/batteries when threat hurricane

WHAT IS BRAINSTORMING?

Brainstorming is a relatively simple idea-generating process that specifically encourages any and all alternatives while withholding criticism of those alternatives.36 In a typical brainstorming session, a half-dozen to a dozen people sit around a table. Of course, technology is changing where that "table" is. The group leader states the problem in a clear manner that is understood by all participants. Members then shout out, offer up, fire off, "freewheel" as many alternatives as they can in a given time. No criticism is allowed, and all the alternatives are recorded for later discussion and analysis.

Competitive Strategy

Competitive Strategy: a strategy for how an organization will compete in its business. A competitive strategy is a strategy for how an organization will compete in its business. For a small organization in only one line of business or a large organization with little product or market diversification, the competitive strategy describes how the organization will compete in its primary market. For organizations in multiple businesses, each business has its own competitive strategy that defines its competitive advantage, the products or services it will offer, the customers it wants to reach, and so on. When an organization engages in several different businesses, those single businesses that are independent and formulate their own competitive strategies are often called strategic business units (SBUs).

4. If CH2M Hill considers going deeper into the Asian​ market, this decision would be made under which type of​ decision-making condition? A. Risk B. Certainty C. Satisficing D. Uncertainty E. Probability

Correct. CH2M Hill would be making the decision under a condition of uncertainty. Under such​ conditions, the choice of alternatives is influenced by the limited amount of information available and by the psychological orientation of the decision maker.

7. Michael gives his sales team time every week to walk through the​ competitor's stores and look for any new changes. This is a form of​ __________. A. change evaluation B. competitive information C. environmental scanning D. competition scanning E. strategic competition

Correct. Environmental scanning involves screening large amounts of information to detect emerging trends.

10. Creativity requires which of the​ following? A. Expertise B. Group process C. The right amount of time D. Incentives E. Competition

Correct. Expertise is the foundation of all creative work.

2. To determine how to handle the international portion of the company​ website, CH2M Hill took the decision to the website team. Which of the following would be an advantage of having the team help with this​ decision? A. Appearance of agreement B. Groupthink C. Ambiguous responsibility D. Increased legitimacy E. Vetting the process

Correct. Group decision making is consistent with democratic ideals. Decisions made by groups are seen as more legitimate.

8. The idea that individuals tend to arrive at the same conclusion in group decision making is called​ __________.

Correct. Groupthink is a form of conformity in which group members withhold​ deviant, minority, or unpopular views in order to give the appearance of agreement.

4. Rudi's Bakery top management established a goal of expanding into new markets. Managers then needed to determine the new markets in which they would choose to do business. Once these locations were​ selected, other managers were charged with setting up the infrastructure in those locations and developing marketing campaigns to make​ Rudi's Bakery presence known. This interconnected network or hierarchy of goals is referred to as​ ________. A. the​ means-end chain B. management by objectives C. SWOT D. a SWOT analysis E. environmental scanning

Correct. In a​ means-end chain,​ higher-level goals​ (or ends) are linked to​ lower-level goals, which serve as the means for their accomplishment. In other​ words, a goal achieved at a lower level​ (for example, setting up the infrastructure or launching a marketing campaign in a new​ location) become the means to reach the goal at the next level​ (for example, expanding to selected cities in the​ U.S.), and accomplishment of the goals at this level becomes the means to achieve the goals at the next level​ (for example, expanding to North​ America).

5. What type of decision did Doug​ Rati, VP of​ Marketing, have to make to conclude it was rational to take the risk to enter the gluten free​ market? A. Centralized B. Programmed C. Rational D. Bounded Rationality E. Intuitive decision making

Correct. Intuitive decision making is making decisions on the basis of​ experiences, feelings, and accumulated judgement.

5. While there was some data pointing at the use of the website by an international​ audience, much of what influenced the decision to recalibrate the website was a hunch. This type of decision making is referred to as which of the​ following? A. Bounded rationality B. Intuitive decision making C. Programmed D. Rational E. Centralized

Correct. Intuitive decision making is making decisions on the basis of​ experiences, feelings, and accumulated judgment.

9. Because the German culture is one of order and​ structure, German organizations often have many rules and regulations. Decisions in this environment often are​ __________.

Correct. National culture does impact decision making. Managerial styles in Germany reflect the need for structure and order.

7. Which of the following is an advantage of group decision​ making? A. Employees are energized B. Less time is used C. Everyone sees the issue in the same way D. The right decision is determined E. Increased acceptance of the decision

Correct. One of the major advantages of group decision making is that the process often leads to a greater acceptance of the decision itself.

Ch. 5 Lab 1. __________ is often called the primary management function.

Correct. Planning is often called the primary management function because it establishes the basis for all the other things managers do as they​ organize, lead, and control.

Ch. 4 Rudi's Bakery 1. Doug​ Radi, VP of Marketing for​ Rudi's Organic​ Bakery, compares decision making to the scientific method. He encourages looking at all the data to find insight before decision making. Based on​ this, which type of decision making process did they​ follow?

Correct. Rational decision making is the process of making logical and consistent choices to maximize value.

4. Maria is a very logical person and is facing what she feels is a very important decision. For that​ reason, Maria will be following the model of​ __________ decision making.

Correct. Rational decision making requires making logical and consistent choices to maximize value.

4. The part of the SWOT analysis that examines the activities an organization does well is​ __________. A. opportunities B. strengths C. structure D. threats E. weaknesses

Correct. SWOT analysis includes looking at an​ organization's strengths,​ weaknesses, opportunities, and threats.

5. ​Ford's strategic goal of developing a car that​ rival's Porsche's 911 Turbo is what kind of​ goal? A. Stated B. Super C. ​Mean-ends D. Traditional E. Real

Correct. Stated goals include official statements of what an organization​ says, and what it wants its stakeholders to believe its goals are.

3. All good strategic management processes start with​ __________. A. evaluating ideas B. doing an internal analysis C. measuring capabilities D. doing an external analysis E. articulating the mission and vision

Correct. The first step in the strategic management process is to identify the current​ mission, goals, and strategies of the organization.

3. Rudi's Organic Bakery was faced with a problem concerning how to grow the business.​ Rudi's took a chance when they entered the gluten free market. Knowing that​ Rudi's was a small niche bakery that was not known at the time for gluten free​ products, leadership looked at the gluten free market as a new direction. This market offered potential growth. How could this problem be BEST​ categorized? A. Unstructured B. Satisficing C. Programmed D. Structured E. Centralized

Correct. The opportunity that has been identified is an unstructured problem. Unstructured problems are new or​ unusual, and information about such problems is ambiguous or incomplete. In​ contrast, structured problems are​ familiar, and information about the problem is easily defined and complete.

Module 2 Chapter 4 Watch It: Video - CH2M H (Copy) 1. The decision to change the international pages of the CH2M Hill website was a decision that took a great deal of thought and discussion with the website team. This type of decision is best described as which of the​ following? A. Unstructured B. Programmed C. Centralized D. Structured E. Satisficing

Correct. The problem that has been identified is an unstructured problem. Unstructured problems are new or​ unusual, and information about such problems is ambiguous or incomplete. In​ contrast, structured problems are​ familiar, and information about the problem is easily defined and complete. It should be noted that problems are either structured or​ unstructured; decisions are programmed or nonprogrammed.

2. Which of the following is not a reason that managers need to​ plan? A. Reduces uncertainty B. Establishes goals C. Establishes a coordinated effort D. Minimizes timing E. Lessens wasteful activities

Correct. There are several reasons managers should plan. These​ include: establishing coordinated​ efforts, reducing​ uncertainty, reducing wasteful​ activities, and establishing the goals.

Module 2 Ch 5 Watch It: Video - Rudi's Bake (Copy) 1. Part of​ Rudi's Bakery plans includes expansion into different product lines that allows the company to leverage their baker reputation. A SWOT analysis would identify these new markets as​ a(n) ________. A. strength B. opportunity C. strategy D. weakness E. threat

Correct. ​ New, untapped markets represent an opportunity for​ Rudi's Bakery. A SWOT analysis involves both an internal and external analysis. An internal analysis identifies strengths​ (activities the organization does well or any unique resources it​ has) and weaknesses​ (activities the organization does not do well or resources it needs but does not​ possess). An external analysis identifies opportunities​ (positive trends in the external environment upon which the organization can​ capitalize) and threats​ (negative trends in the external​ environment).

3. Based upon the information presented in the​ video, which competitive strategy does​ Rudi's Bakery appear to be​ pursuing? A. Cost leadership B. Focus C. Growth D. Functional E. Differentiation

Correct.​ Rudi's Bakery is pursuing a focus​ strategy; it has targeted a narrow segment or market nichelong dash—​gluten-free consumers.

2. Based upon the information presented in the​ video, which corporate strategy does​ Rudi's Bakery appear to be​ pursuing? A. Growth B. Stability C. Renewal D. Focus E. Retrenchment

Correct.​ Rudi's Bakery is pursuing a growth strategy. In a growth​ strategy, the organization expands the number of markets served or products​ offered, either through its current businesses or through new businesses. Next Question

2. ​Rudi's Organic Bakery took a very strategic approach to their decision concerning the gluten free market. They first had to do which of the following before a solution could be​ found?

Correct.​ Rudi's Organic​ Bakery's strategic approach to decision making required them to first identify and articulate the problem with their system of seat selection.

Porter's Competitive Strategies Network

Cost Leadership Strategy Having the lowest costs in its industry and aimed at broad market * highly efficient * overhead kept to a minimum * does everything it can to cut costs * product must be perceived as comparable in quality to that offered by rivals or at least acceptable to buyers Differentiation strategy Offering unique products that are widely valued by customers and aimed at broad market * Product differences: exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image Focus strategy A cost advantage (cost focus) or a differentiation advantage (differentiation advantage (differentiation focus) in a narrow segment or niche (which can be based on product variety, customer type, distribution channel, or geographical location) Stuck in the middle What happens if an organization can't develop a cost or differentiation advantage - bad place to be

Contemporary Issues (cont) Creativity

Creativity: lets the decision maker: * understand a problem more fully * see problems others can't * identify all viable alternatives Creativity allows the decision maker to appraise and understand a problem more fully, "see" problems others can't see, and identify all viable alternatives. Most people have the capacity to be at least moderately creative, so individuals and organizations can stimulate employee creativity by adhering to the creativity model, which proposes that individual creativity essentially requires expertise, creative-thinking skills, and intrinsic task motivation.

Criticism/Manager's Response:

Criticism:Planning may create rigidity. Manager's Response:Managers need to remain flexible Criticism:Formal plans can't replace intuition and creativity. Manager's Response: Planning should enhance and support intuition and creativity, not replace it. Criticism: Planning focuses managers' attention on today's competition, not on tomorrow's survival. Manager's Response: When managers plan, they should be open to forging into uncharted waters if there are untapped opportunities. Criticism: Formal planning reinforces success, which may lead to failure. Manager's Response: Managers may need to face that unknown and be open to doing things in new ways to be even more successful.

Important Role of Competitive Advantage:

Developing an effective competitive strategy requires understanding **competitive advantage**, which is what sets an organization apart; that is, its distinctive edge, which comes from: The **organization's core competencies**—doing something that others cannot do or doing it better than others can do it. The **company's resources**—having something that its competitors do not.

Advantages of Group Decision Making

Diversity of experiences/perspectives More complete information More alternatives generated Increased acceptance of solution Increased legitimacy Decisions can be made by individuals or by groups - each approach has its own set of strengths and neither is ideal for all situations Advantages: - more complete information - diversity of experiences and perspectives brought to the decision process - more alternatives generated due to greater quantity and diversity of information, especially when group members represent different specialties - increased acceptance of a solution by having people who will be affected by a certain solution and who will help implement it participate in the decision - increased legitimacy because the group decision-making process is consistent with democratic ideals, and decisions made by groups may be perceived as more legitimate than those made by a single person which can appear autocratic and arbitrary.

Formal Planning and Organizational Performance

Does it pay to plan? * Higher profits * Higher return on assets * Improved quality of planning * Appropriate implementation Does it pay to plan? In a nutshell, yes. First, the data generally support the position that organizations should have formal plans and that these plans generally translate into higher profits, higher return on assets, and other positive financial results. Second, the quality of the planning process and appropriate implementation of the plan probably contribute more to high performance than the extent of planning does. Finally, in organizations in which formal planning did not lead to higher performance, the constraints of the environment—such as governmental regulations and unforeseen economic challenges—reduced the impact of planning on the organization's performance.

Zane's 1-5 In which of the following ways would​ Zane's Cycles demonstrate its commitment to employee​ engagement? A. Zane's offers lifetime service for all of its products. B. Zane's supports of employee interests. C. Zane's supports nonprofit organizations and strives to be a good community citizen. D. The​ company's building was built using green technology. E. Zane's offers flextime and strives to meet​ employees' important needs.

E. Zane's offers flextime and strives to meet​ employees' important needs. Employee engagement occurs when employees are connected​ to, satisfied​ with, and enthusiastic about their jobs. Chris Zane​ states, "We want them to be as engaged when​ they're here as they can​ be, and be passionate about the relationship that they have with our​ organization."

Late 1700s - Early 1900s Behavioral Approach

Early management writers included: - Robert Owen - who was concerned about deplorable working conditions. - Hugo Munsterberg - a pioneer in the field of industrial psychology - Mary Parker Follett - who recognized that organizations could be viewed from both individual and group behavior perspectives. * Managers get things done by working with people. From the late 1700s to the early 1900s, several management writers recognized the importance of people to an organization's success. * Some examples are: * Robert Owen - who was concerned about deplorable working conditions, proposed an idealistic workplace. * Hugo Munsterberg - a pioneer in the field of industrial psychology, suggested using psychological tests for employee selection, learning theory concepts for employee training, and studies of human behavior for employee motivation * Mary Parker Follett - recognized that organizations could be viewed from both individual and group behavior perspectives, and argued that organizations should be based on a group ethi rather than on individualism.

1-3 __________ means doing a task correctly.

Efficiency

Managers Matter!

Employee productivity, loyalty, and engagement hinge on employee/manager relationships * The Gallup Organization, which has polled millions of employees and tens of thousands of managers, has found that the single most important variable in employee productivity and loyalty isn't pay or benefits or workplace environment; it's the quality of the relationship between employees and their direct supervisors. * Gallup also found that the relationship with their manager is the largest factor in employee engagement - which is when employees are connected to, satisfied with, and enthusiastic about their jobs - accounting for at least 70 percent of an employee's level of engagement.

Discuss factors that lead to ethical and unethical behavior to organizations

Ethics can be viewed from the utilitarian view, the rights view, or theory of justice view Whether manager acts ethically or unethically depends on his or her morality, values, personality, and experiences; the organization's culture; and the ethical issue being faced. Managers can encourage ethical behavior by hiring employees with high ethical standards: * establishing a code of ethics * leading by example * linking ethical behavior to job goals and performance appraisal * providing ethics training * implementing protective mechanisms for employees who face ethical dilemmas

Problems, Decision Types, and Organizational Levels

Exhibit 4-8 describes the relationship among types of problems, types of decisions and one's level in the organization. * Structured problems are handled with programmed decision making. * Unstructured problems require nonprogrammed decision making Lower-level managers usually confront familiar and repetitive problems and typically rely on programmed decisions, such as standard operating procedures. As managers move up the organizational hierarchy, problems are likely to become less structured. However, few managerial decisions are either fully programmed or fully nonprogrammed. This means that few programmed decisions eliminate individual judgment completely and even the most unusual situation requiring a nonprogrammed decision can often be helped by programmed routines. Note that programmed decision making facilitates organizational efficiency and minimizes the need for managers with sound judgment and experience, who come at considerable cost.

Explain what the external environment is and why it's important

External Environment - factors, forces, situations, events outside the organization that affect its performance * One of the biggest mistakes managers make today is failing to adapt to the changing world. No successful organization, or its managers, can operate without understanding and dealing with the dynamic environment - external and internal - that surrounds it. * The term **external environment** refers to factors, forces, situations, and events outside the organization that affect its performance For example, a volcanic eruption in Iceland in 2010 prevented delivery of auto parts that led to a shutdown at a BMW plant in South Carolina and a Nissan Motors facility in Japan

39. A major cause of the shutdown of a BMW assembly plant in SC was a bank crisis in Iceland.

FALSE a volcanic eruption in Iceland was the cause of the shutdown preventing deliveries to the plant

Types of Plans

Flexibility <---> Clarity Managers need plans to help them clarify and specify how goals will be met. As we see here in Exhibit 5-7, strategic plans are usually long-term, directional, and single-use, while tactical plans are short-term, specific, and standing. Now let's look at each type of plan and what it means: 1. Breadth involves strategic plans, which are those that apply to an entire organization and encompass the organization's overall goals, versus tactical plans (also referred to as operational plans), which specify the details of how the overall goals are to be achieved. 2. Time frame refers to the number of months or years used to define short-term and long-term plans. 3. Specificity refers to whether a plan is specific or more general. Due to current environmental uncertainty, managers must be flexible in responding to unexpected changes, so they're more likely to use directional plans that set general guidelines. Managers who engage in planning must weigh the flexibility of directional plans against the clarity that specific plans offer. 4. Frequency of use describes whether plans are ongoing or used only once. Standing plans are ongoing plans that provide guidance for activities performed repeatedly, whereas single-use plans are one-time plans specifically designed to meet the needs of a unique situation.

30. Marta wants to increase visibility for graduate programs in such areas as public health that are specialized for professionals who have already worked in their field for ten years or more. On which generation should she focus her efforts?

Gen X

1916-1947 - Classical Approaches: General Administrative Theory

General administrative theory - what constituted good management - Henri Fayol identified five management functions and 14 principles of management - Max Weber: bureaucracy, an ideal rational form of organization * Unlike Taylor, who focused on an individual production worker's job, Henri Fayol and Max Weber looked at organizational practices by focusing on what managers do and what constituted good management. This approach is known as general administrative theory. Fayol first identified five management functions and fourteen principles of management that could be applied to all organizations. Weber (see pic) is known for his description and analysis of bureaucracy, which he believed was an ideal form of organization structure, especially for large organizations.

what can individuals and organizations do to stimulate employee creativity?

Given that most people have the capacity to be at least moderately creative, hree-component model of creativity based on an extensive body of research.47 This model proposes that individual creativity essentially requires 1. expertise, 2. creative-thinking skills, and 3. intrinsic task motivation. Studies confirm that the higher the level of each of these three components, the higher the creativity 1. **Expertise** is the foundation of all creative work 2. **creative-thinking skills**It encompasses personality characteristics associated with creativity, the ability to use analogies, as well as the talent to see the familiar in a different light.. the following individual traits have been found to be associated with the development of creative ideas: intelligence, independence, self-confidence, risk taking, internal locus of control, tolerance for ambiguity, and perseverance in the face of frustration. The effective use of analogies allows decision makers to apply an idea from one context to another 3. **intrinsic task motivation**the desire to work on something because it's interesting, involving, exciting, satisfying, or personally challenging. This motivational component is what turns creative potential into actual creative ideas.It determines the extent to which individuals fully engage their expertise and creative skills.

Explain globalization and its impact on organizations

Globalization and its Impact Global village: a boundaryless world where goods and services are produced and marketed worldwide * "It's like being in an emergency room doing triage" said Hewlett-Packard's senior vice president after the tsunami hit Japan Normally, the global flow of goods routinely adapts, day in and day out, to all kinds of glitches and setbacks. However, when a major disaster strikes like the earthquake in Japan, the fragility of the global supply chain becomes more apparent. * Although the world is still a global village, how managers do business in that global village is changing. To be effective in this boundaryless world, managers need to adapt to this changed environment, as well as continue to foster an understanding of cultures, systems, and techniques that are different from their own.

4.4 Discuss group decision making.

Groups offer certain advantages when making decisions—more complete information, more alternatives, increased acceptance of a solution, and greater legitimacy. On the other hand, groups are time-consuming, can be dominated by a minority, create pressures to conform, and cloud responsibility. Three ways of improving group decision making are brainstorming (utilizing an idea-generating process that specifically encourages any and all alternatives while withholding any criticism of those alternatives), the nominal group technique (a technique that restricts discussion during the decision-making process), and electronic meetings (the most recent approach to group decision making, which blends the nominal group technique with sophisticated computer technology).

Economic Inequality

Harris Interactive Poll: **Only 10 percent of adults think economic inequality is "not a problem at all."** * Most survey respondents believed that it is either a major problem (57%) or a minor problem (23%) Why has this issue become so sensitive? Those who worked hard and were rewarded because of their hard work or creativity have long been admired. In the United States, that gap between the rich and the rest has been much wider than in other developed nations for decaded and was accepted as part of our country's values and way of doing things. * As economic growth has languished and sputtered, and as people's belief that anyone could grab hold of an opportunity and have a decent shot at prosperity has wavered, social discontent over growing income gaps has increased. The bottom line is that business leaders need to recognize how societal attitudes in the economic context may also create constraints as they make decisions and manage their businesses.

Why?

His theory of scientific management - the use of scientific methods to define the "one best way" for a job to be done Taylor - mechanical engineer in Pennslyvania steel companies observed workers & continually shock by inefficient they were * employees used vastly different techniques to do same job * often "took it easy" on job * few if any work standards existed

#2 Competitive Strategy Strategic Business Unit 1 Strategic Business Unit 2 Strategic Business Unit 3

How an organization will compete in its business(es). - A small organization in only one line of business OR a large organization that has not diversified: - Competitive strategy describes how it will compete in its primary or main market. - Organizations in multiple businesses: **Each business will have its own competitive strategy.** Those single businesses that are independent and formulate their own competitive strategies are often called **strategic business units (SBUs).**

Leading

How do I handle unmotivated employees? What is the most effective leadership style in a given situation? How will a specific change affect worker productivity? When is the right time to stimulate conflict?

When Are Groups Most Effective?

Individual: - faster decision making - more efficient use of work hours Group: - more accurate decisions - more creative - more heterogeneous representation - greater acceptance of final solution Whether groups are more effective than individuals depends on the criteria used for defining effectiveness, such as accuracy, speed, creativity and acceptance - Individuals are faster at decision making - Groups tend to be more accurate, make better decisions, be more creative, and be more effective in terms of acceptance of the final solution - With few exceptions, group decision making consumes more work hours than individual decision making does Ultimately primary consideration must be given to assessing whether increases in effectiveness outweigh the losses in efficiency

zane's 1-1 Zane's leadership style includes delegating tasks to his employees and giving them the freedom to perform the tasks using any strategy they see fit. This demonstrates which of the critical management skills suggested by​ Katz?

Interpersonal skills involve working well with other people both individually and in groups by​ communicating, motivating,​ mentoring, and delegating.

ringisei

Japanese consensus-forming group decisions

Technology and the Manager's Job Can technology improve the way managers manage?

Jobs and employment

heuristics

Judgmental shortcuts or "rules of thumb" simplify decision making

Culture Is?

Perceived Descriptive Shared * 1. Culture is perceived. It's not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization. * 2. Culture is descriptive. It's concerned with how members perceive or describe the culture, not with whether they like it. * 3. Culture is shared. Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms.

Types of Global Organizations

MNC (multinational corporation) - Multidomestic corporation - Transnational organization - Global corporation * **MNC** - any type of international company that maintains operations in multiple countries. Three types are: 1. **Multidomestic corporation**: Management and other decisions are decentralized to the local country in which it is operating. Relies on local employees to manage the business, tailors strategies to each country's unique characteristics, and is used by many consumer product companies. 2. **Transnational (borderless) organization**: An MNC where artificial geographical boundaries are eliminated. Country of origin or where business is conducted becomes irrelevant; increases efficiency and effectiveness in a competitive global marketplace. 3. **Global corporation**: An MNC in which management and other decisions are centralized in the home country. World market is treated as an integrated whole; focus is on control and global efficiency.

global organizations types MNC multinational corporation multidomestic corporation transnational (borderless) organization global corporation

MNC - that decentralizes management and other decisions to the local country where it's doing business multidomestic corporation - is an MNC in which management and other decisions are decentralized to the local country in which it is operating - rely on local employees to manage the business - tailor strategies to each country's unique characteristics - used by many consumer product companies i.e. John Deere's green/yellow tractors once struggled selling overseas, line of highly customizable products made the company ton of profits Transnational (borderless) organization an MNC where artificial geographical boundaries are eliminated - country of origin or where business is conducted becomes irrelevant - increases efficiency and effectiveness in a competitive global marketplace i.e. Ford Escape made from a common set of components used in Ford cars around the world

2 views of management omnipotent symbolic

Management theory proposes two perspectives in answering this question: the omnipotent view and the symbolic view. Omnipotent view of management: Managers are directly responsible for an organization's success or failure. Differences in performance are due to decisions and actions of managers. Good managers: anticipate change, exploit opportunities, correct poor performance, lead their organizations. Profits ↑. Managers get the credit and rewards. Profits ↓. Managers often get fired. Someone—the manager—is held accountable for poor performance. This view helps explain turnover among college and professional sports coaches. Managers: All-powerful or helpless? Symbolic view of management: Manager's ability to affect performance outcomes is constrained by external factors. Managers don't have a significant effect on organization's performance. Performance is influenced by factors over which managers have little control (economy, customers, governmental policies, competitors' actions, etc.). Managers symbolize control and influence by developing plans, making decisions, and engaging in other managerial activities to make sense out of random, confusing, and ambiguous situations. Manager's part in organizational success or failure is limited. In reality, managers are neither all-powerful nor helpless. But their decisions and actions are constrained. External constraints come from the organization's external environment and internal constraints come from the organization's culture.

CH. 1 Summary Managers and Management Who managers are and where they work?

Managers are individuals who work in an organization directing and overseeing the activities of other people. Usually classified as : top, middle, first-line, or team leader. Organizations (where managers work) have 3 characteristics: 1- goals 2-people 3-deliberate structure

What Types of Plans Do Managers Use and How Do They Develop Those Plans? Flexibility ↔ Clarity

Managers need plans to help them clarify and specify how goals will be met. TYPES OF PLANS The most popular ways to describe plans are in terms of their **breadth (strategic versus tactical)**, **time frame (long term versus short)**, **specificity (directional versus specific)**, and **frequency of use (single-use versus standing).** strategic plans are usually long term, directional, and single-use. Let's look at each type of plan. **Breadth**. **Strategic plans** are those that apply to an entire organization and encompass the organization's overall goals. **Tactical plans (sometimes referred to as operational plans)** specify the details of how the overall goals are to be achieved. **Time Frame**. The number of years used to define short-term and long-term plans has declined considerably due to environmental uncertainty **Long term** used to mean anything over seven years. **long-term plans** are now defined as plans with a time frame beyond **three years**. **Short-term plans cover one year or less** **Specificity.** Intuitively, it would seem that specific plans would be preferable to directional, or loosely guided, plans. **Specific plans** are plans that are clearly defined and leave no room for interpretation. **Directional plans**, flexible plans that set general guidelines **Frequency of Use**. Some plans that managers develop are ongoing, while others are used only once. **A single-use plan** is a one-time plan specifically designed to meet the needs of a unique situation In contrast, **standing plans** are ongoing plans that provide guidance for activities performed repeatedly **DEVELOPING PLANS**The process of developing plans is influenced by three contingency factors and by the planning approach followed Contingency Factors in Planning. Three contingency factors affect the choice of plans: (1) organizational level, (2) degree of environmental uncertainty, and (3) length of future commitments. The **commitment concept** says that plans should extend far enough to meet those commitments made when the plans were developed **Approaches to Planning **- **How**an organization plans can best be understood by looking at **who**does the planning. In the traditional approach, planning is done entirely by top-level managers who often are assisted by a **formal planning department**, a group of planning specialists whose sole responsibility is to help write the various organizational plans A common complaint was that "plans are documents that you prepare for the corporate planning staff and later forget Another approach to planning is to involve more organizational members in the process. In this approach, plans aren't handed down from one level to the next, but instead are developed by organizational members at the various levels and in the various work units to meet their specific needs. When organizational members are more actively involved in planning, they see that the plans are more than just something written down on paper. They can actually see that the plans are used in directing and coordinating work.

Reasons for Planning

Managers should plan for at least four reasons, as seen here in Exhibit 5-1. 1. Planning establishes coordinated effort. It gives direction to both managers and nonmanagerial employees so each knows what he or she must contribute— individually and as a group—to reach the organization's goals. Planning stimulates intra- and inter-department coordination of activities, which fosters teamwork and cooperation. 2. Planning reduces uncertainty. It forces managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. It also clarifies the consequences of the actions managers might take in response to change. 3. Planning reduces overlapping and wasteful activities. Coordination before the fact is likely to uncover waste and redundancy. 4. Finally, planning establishes the goals or standards that facilitate managerial control. To ensure that the plans are carried out and the goals are met.

Decision Point: Resolving the Conflict, Luis Based on your understanding, what action do you recommend to Luis to resolve his problems at the Austrian plant? Review Hofstede's cultural values by nation before you make any decision. Click the table icon below. A high-context culture relies on implicit communication and nonverbal cues. High-context cultures will use communication that focuses on underlying context, meaning, and tone in the message, and not just the words themselves. Examples of high context cultures include: Japanese, South American, Spanish, Italian A low-context culture relies on explicit communication. In low-context communication, more of the information in a message is spelled out and defined. Examples of a low context culture include: German, Austrian

NONONOYou advised Luis that the workers are in a culture with higher power distance and to commit to the policy changes in order to earn their respect. This was not the best choice. You may want to revisit the power distance information and reassess your decision. You selected that the workers are in a culture with lower power distance. They expect authority to be approachable. This was the best choice. Austria has lower power distance than Portugal.

Contemporary Issues National Culture

National Culture: influences the way decisions are made and the degree of risk involved. Research show that decision-making practices differ from country to country and two examples of decision variables that reflect a country's national cultural environment are: * Managers who deal with employees from diverse cultures need to recognize common and accepted behavior when asking them to make decisions. Those who accommodate the diversity in decision- making philosophies and practices can reap the benefits of capturing the perspectives and strengths that a diverse workforce offers.

Types of Decisions cont.

Non programmed: repetitive decisions that can be handled using a routine approach. Examples of nonprogrammed decisions include deciding whether to acquire another organization or to sell off an unprofitable division. Such decisions are unique and nonrecurring so when a manager confronts an unstructured problem, no cut-and-dried solution is available. The creation of a new organizational strategy is a nonprogrammed decision. It is different from previous organizational decisions because the issue is new, a different set of environmental factors exists, and other conditions have changed.

Types of Decisions

Programmed: repetitive decisions that can be handled using a routine approach Decisions can be divided into two categories, just as problems can. Programmed, or routine, decision making is the most efficient way to handle structured problems. For example, what does a manager do if an auto mechanic damages a customer's rim while changing a tire? Because the company probably has a standardized method for handling this type of problem, it's considered a programmed decision, which tends to rely heavily on previous solutions - such as replacing the rim at the company's expense. Managers can use three guides for making programmed decisions: 1. Procedures 2. Rules 3. Policies A procedure is a series of interrelated sequential steps that a manager can use when responding to a well-structured problem A rule is an explicit statement that tells a manager what can or cannot be done. A policy is a guideline for making decisions.

How Does National Culture Affect Managers' Decision Making? **Managers who accommodate the diversity in decision-making philosophies and practices can expect a high payoff if they capture the perspectives and strengths that a diverse workforce offers**.

Research shows that, to some extent, decision-making practices differ from country to country.45 The way decisions are madewhether by group, by team members, participatively, or autocratically by an individual managerand the degree of risk a decision maker is willing to take are just two examples of decision variables that reflect a country's cultural environment. For example, in India, power distance and uncertainty avoidance (see Chapter 3) are high There, only very senior-level managers make decisions, and they're likely to make safe decisions In contrast, in Sweden, power distance and uncertainty avoidance are low. Swedish managers are not afraid to make risky decisions. Senior managers in Sweden also push decisions down to lower levels. They encourage lower-level managers and employees to take part in decisions that affect them. In countries such as Egypt, where time pressures are low, managers make decisions at a slower and more deliberate pace than managers do in the United States. And in Italy, where history and traditions are valued, managers tend to rely on tried and proven alternatives to resolve problems. Decision making in Japan is much more group oriented than in the United States.46 The Japanese value conformity and cooperation. Before making decisions, Japanese CEOs collect a large amount of information, which is then used in consensus-forming group decisions called **ringisei**. Because employees in Japanese organizations have high job security, managerial decisions take a long-term perspective rather than focusing on short-term profits, as is often the practice in the United States. Senior managers in France and Germany also adapt their decision styles to their countries' cultures. In France, for instance, autocratic decision making is widely practiced, and managers avoid risks. Managerial styles in Germany reflect the German culture's concern for structure and order. Consequently, German organizations generally operate under extensive rules and regulations. Managers have well-defined responsibilities and accept that decisions must go through channels.

Step 1: Identify Mission, Goals and Strategies

STEP 1 of the strategic management process is to identify the organization's current mission, goals, and strategies. The mission is a statement of the organization's purpose. Defining the mission forces managers to identify what the organization is in business to do. For instance, the mission of Avon is "To be the company that best understands and satisfies the product, service, and self-fulfillment needs of women on a global level." The mission of the National Heart Foundation of Australia is to "reduce suffering and death from heart, stroke, and blood vessel disease in Australia." The components of a mission statement, seen here in Exhibit 5-3, includes target customers, markets, and goals and strategies, and each should be assessed to see if managers should change any of them. Customers: Who are the firm's customers? Markets: Where does the firm compete geographically? Concern for survival, growth, and profitability: is the firm committed to growth and financial stability? Philosophy: What are the firm's basic beliefs, values, and ethical priorities? Concern for public image: How responsive is the firm to societal and environmental concerns? Products or services: What are the firm's major products or services? Technology: Is the firm technologically current? Self-concept: What are the firm's major competitive advantage and core competencies? Concern for employees: Are employees a valuable asset of the firm?

How Does Culture Affect What Managers Do?

Say What? Ten percent of executives say they have not identified or communicated an organizational culture * Because an organization's culture constrains what they can and cannot do and how they manage, it's particularly relevant to managers. Such constraints are rarely explicit. They're not written down. It's unlikely they'll even be spoken. But they're there, and all managers quickly learn what to do and not to do in their organization. For instance, you won't find the following values written down, but each comes from a real organization: - look busy even if you're not - if you take risks and fail around here, you'll pay dearly for it - before you make a decision, run it by your boss so that he or she is never surprised - we make our product only as good as the competition forces us to - what made us successful in the past will make us successful in the future - if you want to get to the top here, you have to be a team player

Behavioral Approaches 1930s - 1950s Abraham Maslow humanistic psychologist hierarchy of five needs - said once a need was substantially satisfied, it no longer served to motivate behavior

Self-Actualization Esteem Social Safety Physiological * The human relations movement that took place between the 1930s and 1950s is important to management history because its supporters never wavered from their commitment to making management practices more humane. They believed in the importance of employee satisfaction - so they offered suggestions like employee participation, praise, and being nice to people to increase employee satisfaction. *For instance, **Abraham Maslow**, a humanistic psychologist who's best known for his description of a **hierarchy of five needs** (shown) said that once a need was substantially satisfied, it no longer served to motivate behavior. * **Douglas McGregor developed Theory X and Theory Y**assumptions, which related to a manager's beliefs about an employee's motivation to work. Even though both Maslow's and McGregor's theories were never fully supported by research, they're important because they represent the foundation from which contemporary motivation theories were developed.

7 Dimensions of Culture

Seven dimensions * Range from low (not typical of the culture) to high (especially typical of the culture) * Provide a composite picture of the organization's culture * May emphasize one cultural dimension more than the others, essentially shaping the organization's personality and the way organizational members work - Apple's focus is product innovation (innovation and risk taking). The company "lives and breathes" new product development and employees' work behaviors support that goal - Southwest Airlines has made it employees a central part of its culture (people orientation) and shows this through the way it treats them

Organizational Culture

Shared values, principles, traditions, and ways of doing things that influence the way an organization's members act. * **Organizational culture** has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act.

Discuss how society's expectations are influencing managers and organizations

Society expects organizations and managers to be responsible and ethical. An organization's social involvement can be from the perspective of social obligation, social responsiveness, or social responsibility After much analysis, researchers concluded managers can afford to be (and should be) socially responsible Sustainability has become an important societal issue for managers and organizations.

structured problems.

Some problems are straightforward. The goal of the decision maker is clear, the problem familiar, and information about the problem easily defined and complete. Examples might include a supplier who is late with an important delivery, a customer who wants to return an Internet purchase, a TV news team that has to respond to an unexpected and fast-breaking event, or a university that must help a student who is applying for financial aid.

Organizational Culture Low

Stability - degree to which organizational decisions and actions emphasize maintaining the status quo Agressiveness - degree to which employees are agressive and competitive rather than cooperative Team Orientation - degree to which work is organied around teams rather than individuals People Orientation - degree to which management decisions take into account the effects on peple in the organization

Strategies Managers Use

Strategies need to be formulated for the three organizational levels: corporate, business, and functional, as seen here in Exhibit 5-4. A corporate strategy is an organizational strategy that specifies what businesses a company is in—or wants to be in—and what it wants to do with those businesses. The second part of corporate strategy is when top managers decide what to do with those businesses. The three main types of corporate strategies are growth, stability, and renewal.

Stability and Renewal Strategies

Stability strategy - organization continues to do what it's doing Renewal Strategy- organization addresses declining organizational performance * Retrenchment * Turnaround During times of economic uncertainty, many companies choose a stability strategy in which the organization continues to do what it is currently doing, such as serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations. When an organization is in trouble, however, managers need strategies called renewal strategies, which address declining performance. There are two main types of renewal strategies: 1. A retrenchment strategy is a short-run strategy used for minor performance problems. This strategy helps it stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again. 2. When an organization's problems are more serious, they need to use the turnaround strategy. While managers cut costs and restructure organizational operations in either renewal strategy, these measures are more extensive than in a retrenchment strategy. ● In both renewal strategies, managers can (1) cut costs and (2) restructure organizational operations but actions are more extensive in turnaround strategy.

Degree of Change

Stable: Cell 1 - stable-simple - represents the lowest level of environmental uncertainty * stable and predictable environment * few components in environment * components are somewhat similar and remain basically the same * minimal need for sophisticated knowledge of components Cell 3 * stable and predictable environment * many components in environment * components are not similar to one another and remain basically the same * high need for sophisticated knowledge of components Dynamic - cell 4 - dynamic and complex environment highest level of environmental uncertainty uncertainty is a threat to an organization's effectiveness, managers try to minimize it - given choice, managers prefer to operate in lease uncertain environments, rarely control that choice nature of external environment today is most industries facing more dynamic change, making their environments more uncertain Dynamic Cell 2 * dynamic and unpredictable environment * few components in environment * components are somewhat similar but are continually changing * minimal need for sophisticated knowledge of components Cell 4 * dynamic and unpredictable environment * many components in environment * components are not similar to one another and are continually changing * high need for sophisticated knowledge of components

Managing Stakeholder Relationships

Stakeholders: any constituencies in an organization's environment that are affected by that organization's decisions and actions * The nature of stakeholder relationships is another way in which the environment influences managers. The more obvious and secure these relationships, the more influence managers will have over organizational outcomes. * **Stakeholders** are any constituencies in an organization's environment that are affected by that organization's decisions and actions. These groups have a stake in, or are significantly influenced by what the organization does. In turn, these groups can influence the organization. * For example, think of the groups that might be affected by the decisions and actions of Starbucks - coffee bean farmers, employees, specialty coffee competitors, loal communities, and so forth. Some of these stakeholders also, in turn, may impact decisions and actions of Starbucks' managers.

What defines a decision problem?

Step 1 begins with the identification of a problem - **a discrepancy between an existing and a desired state of affairs** sales manager for Pfizer - discrepancy between manager's need for working car and fact her current one doesn't

Identifying a Decision Problem: Problem: a discrepancy between an existing and a desired state of affairs.

Step 1 in the decision-making process begins with the identification of a problem - that is, a discrepancy between an existing state of affairs and the desired state of affairs. How do managers become aware of such a discrepancy? They have to compare the current state of affairs with some standard, which can be past performance, previously set goals, or the performance of another unit within the organization or in another organization. If, for example, a car is no longer worth repairing, then the best decision may be to purchase another car.

External and Internal Analyses

Step 2: External Analysis * Competition * Components of environment * Threats and opportunities Step 3: Internal Analysis * Resources * Capabilities * Core competencies * Organizational strengths and weaknesses In STEP 2, managers conduct an external analysis so they can: 1. Know what the competition is doing, how pending legislation might affect the organization, and how stable the local labor supply is in locations where it operates. 2. Examine all components of the environment—that is, economic, demographic, political/legal, sociocultural, technological, and global—to see the trends and changes. 3. Pinpoint opportunities that the organization can exploit and threats that it must counteract. In STEP 3, managers conduct an internal analysis, which provides critical information about an organization's specific resources and capabilities. An organization's resources are its assets—financial, physical, human, and intangible—that it uses to develop, manufacture, and deliver products to its customers. In comparison to assets, its capabilities are its skills and abilities in doing the work activities needed in its business. The major value-creating capabilities of the organization are known as its core competencies. Both resources and core competencies determine the organization's competitive weapons. After completing an internal analysis, managers should be able to identify organizational strengths and weaknesses. Any activities the organization does well or any unique resources that it has are called strengths. Weaknesses are activities the organization doesn't do well or resources it needs but doesn't possess. The combined external and internal analyses are called the SWOT analysis because, together, they are an analysis of the organization's strengths, weaknesses, opportunities, and threats. After completing the SWOT analysis, managers are ready to formulate appropriate strategies that: (1) Exploit an organization's strengths and external opportunities, and (2) Buffer or protect the organization from external threats.

Formulating, Implementing and Evaluating Results

Step 4: Formulate Strategies * Corporate * Business * Functional Step 5: Implement Strategies Step 6: Evaluate Results * How effective have strategies been? * What adjustments are necessary? STEP 4 is formulating strategies. As managers formulate strategies, they should consider the realities of the external environment and their available resources and capabilities to design strategies that will help their organization achieve its goals. Managers typically formulate three main types of strategies: corporate, business, and functional. We'll describe each shortly. STEP 5 involves implementing strategies. Once strategies are formulated, they must be implemented. No matter how effectively an organization has planned its strategies, performance will suffer if the strategies aren't implemented properly. STEP 6 is evaluating results. This is the final step in the strategic management process, where managers ask, "How effective have the strategies been at helping the organization reach its goals? What adjustments are necessary?"

2. It is only after ordering and picking up her new desk that Danielle realizes the desk is too big for her office. This is an example of a failure in which​ step?

Step 7

SOCIAL MEDIA AS A STRATEGIC WEAPON.

Successful social media strategies should (1) help people—inside and outside the organization—connect; and (2) reduce costs or increase revenue possibilities or both. As managers look at how to strategically use social media, it's important to have goals and a plan. **52 percent of managers say social media are important/somewhat important to their business.** Red Robin Gourmet Burgers launched its Tavern Double burger line, utilized social media social media tools can boost productivity. Using an internal social network resembling Facebook, managers in the 460-restaurant chain were taught everything from the recipes to tips on efficiently making the burgers. That same internal network has been a great feedback tool. Company chefs have used tips and suggestions from customer feedback and from store managers to tweak the recipe.

Being an Ethical Leader

Suggestions for being an ethical leader: - be a good role model by being ethical and honest - tell the truth always - don't hide or manipulate information - be willing to admit your failures - share your personal values by regularly communicating them to employees - stress the organization's or team's important shared values - use the reward system to hold everyone accountable to the values * Of critical importance is **ethical leadership**, which sets the tone for employee behavior. Managers must be good ethical role models both in words and more importantly, in actions, which send even stronger signals to employees. Therefore, if managers take company resources for their personal use, inflate their expense accounts, or give favored treatment to friends, they imply that such behavior is acceptable from all employees. When an employee does something unethical, managers must punish the offender and make the outcome visible to everyone in the organization. Here we see suggestions for being an ethical leader (see above)

Sustainability

Sustainability: a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. * From a business perspective, **sustainability** has been defined as a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. * The idea of practicing sustainability affects many aspects of business, from the creation of products and services to their use and subsequent disposal by consumers. Following sustainability practices is one way in which organizations can show their commitment to being responsible. In today's world where many individuals have diminishing respect for businesses, few organizations can afford the bad press or potential economic ramifications of being seen as socially irresponsible.

40. The external environment of an organization includes factors and forces that can affect how the organization operates

TRUE the external environment includes any

36. Today's managers must learn to cope with a greater level of change than those of the past

TRUE Dynamic forces are sweeping across the globe, reshaping our lives and creating a wave of opportunities.... this quote shows that change is the new normal for organizations and the need to adapt to those changes is greater than ever before

Technology and the Manager's Job

Technology and the Manager's Job Making Better Decisions With Technology Information technology is providing managers with a wealth of decision-making support.22 Two decision-making tools include: Expert systems and Neural networks. Expert Systems: Encode relevant expert experience using software programs. Act as that expert in analyzing and solving unstructured problems. Guide users through problems by asking sequential questions about the situation and drawing conclusions based on answers given. Make decisions easier for users through programmed rules modeled on actual reasoning processes of experts. Allow employees and lower-level managers to make high-quality decisions normally made only by upper-level managers. Neural Networks: Use computer software to imitate the structure of brain cells and connections among them. Can distinguish patterns and trends too subtle or complex for human beings. Can perceive correlations among hundreds of variables, unlike our limited human brain capacity, which can only easily assimilate no more than two or three variables at once. Can perform many operations simultaneously, recognizing patterns, making associations, generalizing about problems not exposed to before, and learning through experience. Example: banks using neural network systems to catch fraudulent credit card activities in a matter of hours, not days.

4 ReviewChapter Summary 4.1 Describe the decision-making process.

The decision-making process consists of eight steps: (1) identify a problem, (2) identify decision criteria, (3) weight the criteria, (4) develop alternatives, (5) analyze alternatives, (6) select alternative, (7) implement alternative, and (8) evaluate decision effectiveness. As managers make decisions, they may use heuristics to simplify the process, which can lead to errors and biases in their decision making. The 12 common decision-making errors and biases include overconfidence, immediate gratification, anchoring, selective perception, confirmation, framing, availability, representation, randomness, sunk costs, self-serving bias, and hindsight.

4.2 Explain the three approaches managers can use to make decisions.

The first approach is the rational model. The assumptions of rationality are as follows: the problem is clear and unambiguous; a single, well-defined goal is to be achieved; all alternatives and consequences are known; and the final choice will maximize the payoff. The second approach, bounded rationality, says that managers make rational decisions but are bounded (limited) by their ability to process information. In this approach, managers satisfice, which is when decision makers accept solutions that are good enough. Finally, intuitive decision making is making decisions on the basis of experience, feelings, and accumulated judgment.

core competencies

The major value-creating capabilities of an organization

Decision-Making Process

The process of choosing between two or more alternatives or options; most logical way to make a decision. begins with the identification of a problem or **a discrepancy between an existing and a desired state of affairs** begins with identifying a problem, moves through selecting an alternative can alleviate the problem, moves through selecting an alternative that can alleviate the problem and concludes w. evaluating the decision's effectiveness. Process can be used to describe both individual and group decisions. **Identifying problems is important and challenging** Not all problems are obvious - real world, most don't come w/ neon signs identifying such - problem solving is subjective ** A manager mistakenly solves wrong problem perfectly is just as likely to perform poorly as manager who fails to identify right problem and does nothing.

Steps in the Strategic Management Process

The strategic management process, seen here in Exhibit 5-2, is a six-step process that encompasses: • Strategy planning • Implementation • Evaluation The strategic management process, seen here in Exhibit 5-2, is a six-step process that encompasses: • Strategy planning • Implementation • Evaluation

What Types of Decisions and Decision-Making Conditions Do Managers Face?

The types of problems managers face in decision-making situations often determine how it's handled. In this section, we describe a categorization scheme for problems and types of decisions and then show how the type of decision making a manager uses should reflect the characteristics of the problem.

How Do Nonprogrammed Decisions Differ from Programmed Decisions?

When problems are unstructured, managers must rely on **nonprogrammed** decisions in order to develop unique solutions. Examples of nonprogrammed decisions include deciding whether to acquire another organization, deciding which global markets offer the most potential, or deciding whether to sell off an unprofitable division The creation of a new organizational strategy is a nonprogrammed decision. When a manager confronts an unstructured problem, no cut-and-dried solution is available. A custom-made, nonprogrammed response is required. The creation of a new organizational strategy is a nonprogrammed decision. This decision is different from previous organizational decisions because the issue is new; a different set of environmental factors exists, and other conditions have changed

Traditional Goal Setting

Top Management = "We need to improve the company's performance" Division Manager's Objective = "I want to see a significant improvement in this division's profits" Department Manager's Objective= "Increase profits regardless of the means" Individual Employee's Objective = "Don't worry about quality, just work fast" Goals provide the direction for all management decisions and actions, and form the criterion against which actual accomplishments are measured. Everything members of the organization do should be oriented toward achieving goals, which can be set either through a process of traditional goal setting or by using management by objectives. In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area, as seen in Exhibit 5-5, and are passed down to each succeeding organizational level. Then, at some later time, performance is evaluated to determine whether the assigned goals have been achieved. A problem with traditional goal setting is that when top managers define the organization's goals in broad terms—such as achieving "sufficient" profits—these ambiguous goals have to be stated more specifically as they flow down through the organization. Managers at each level define the goals and apply their own interpretations and biases as they make them more specific. When the hierarchy of organizational goals is clearly defined, it forms an integrated network of goals, or a means-ends chain. Higher-level goals (or ends) are linked to lower-level goals, which serve as the means for their accomplishment.

How Can You Improve Group Decision Making?

Use these techniques to make group decisions more creative: (1) brainstorming, (2) the nominal group technique, and (3) electronic meetings.

How important is innovative IT to a company's strategy? **When an organization's innovative IT "works," it can be a very powerful strategic tool!**

Very important . . . as two examples will illustrate! Caesars Entertainment (formerly Harrah's Entertainment) is fanatical about customer service, and for good reason. Company research showed that customers who were satisfied with the service they received at a Harrah's casino increased their gaming expenditures by 10 percent, and those who were extremely satisfied increased their gaming expenditures by 24 percent. At Prada's Manhattan flagship store, store designers were hoping for a totally different shopping environment that combined "cutting-edge architecture and twenty-first-century customer service." Or at least that was the strategy. Prada invested almost one-fourth of the new store's budget into IT, including wireless networks linked to an inventory database. The equipment malfunctioned and the staff was overwhelmed with trying to cope with crowds and equipment that didn't work.

QUALITY AS A STRATEGIC WEAPON. **Benchmark the best!**

W. K. Kellogg started manufacturing cornflake cereal in 1906, his goal was to provide customers with a high-quality, nutritious product **emphasis on quality is still important today** Many organizations use quality practices to build competitive advantage and attract and hold a loyal customer base. **If implemented properly, quality can be a way for an organization to create a sustainable competitive advantage** **f a business is able to continuously improve the quality and reliability of its products, it may have a competitive advantage that can't be taken away**

1-4 Explain why it's important to study management? - all of us have vested interest in improving the way organizations are managed - either manage or be managed

We all have a vested interest in improving how organizations are managed. * Why? Because we interact with them every day of our lives and an understanding of management offers insights into many organizational aspects. Understanding management offers insights into why some companies get our orders right the first time, why once-thriving organizations no longer exist, and which companies continue to prosper during challenging economic times. * Studying management provides knowledge about manager skills and responsibilities, how organizations function, and how people behave in the workplace. Most people will either manage or be managed. * If you plan to be a manager, you'll form a foundation on which to build your management skills and abilities. Even if you don't see yourself managing, you're still likely to have to work with managers. And the reality is, that if you plan to work for a living, you'll probably have some managerial responsibilities even if you're not a manager. Studying management provides knowledge about managerial skills and responsibilities, how organizations function, and how people behave in the workplace.

When Are Groups Most Effective? Bottom Line on Groups or Individuals: Do increases in effectiveness offset losses in efficiency?

Well, that depends on the criteria you use for defining effectiveness, such as accuracy, speed, creativity, and acceptance. - Group decisions tend to be more accurate. - On average, groups tend to make better decisions than individuals, although groupthink may occur.34 - -- - However, if decision effectiveness is defined in terms of speed, individuals are superior. - If creativity is important, groups tend to be more effective than individuals. - And if effectiveness means the degree of acceptance the final solution achieves, the nod again goes to the group. The effectiveness of group decision making is also influenced by the size of the group. The larger the group, the greater the opportunity for heterogeneous representation - On the other hand, a larger group requires more coordination and more time to allow all members to contribute - This means that groups probably shouldn't be too large: - A minimum of five to a maximum of about fifteen members is best. - Groups of five to seven individuals appear to be the most effective (remember Amazon's "two-pizza" rule!). - - Because five and seven are odd numbers, decision deadlocks are avoided. - You can't consider effectiveness without also assessing efficiency. Groups almost always stack up as a poor second in efficiency to the individual decision maker. Yet, with few exceptions, group decision making consumes more work hours than does individual decision making

uncertainty

What happens if you face a decision where you're not certain about the outcomes and can't even make reasonable probability estimates? We call this condition uncertainty. Managers do face decision-making situations of uncertainty. Under these conditions, the choice of alternative is influenced by the limited amount of available information and by the psychological orientation of the decision maker.

Describe what managers do.

What managers do can be described as using three approaches: functions, roles, and skills/competencies Functions approach says managers perform four functions: * planning * organizing * leading * controlling Mintzberg's roles approach says that what managers do is based on the 10 roles they use at work, which are grouped around interpersonal relationships, the transfer of information, and decision making. The skills/competencies approach looks at what managers do in terms of the skills and competencies they need and use. Four critical management skills are conceptual, interpersonal, technical, and political. Additional managerial competencies include aspects such as dependability, personal orientation, emotional control, communication, so forth. All managers plan, organize, lead, and control although how they do these activities and how often they do them may vary according to level in the organization, whether the organization is profit or not-for-profit, the size of the organization, and the geographic location of the organization.

Why Are Creativity and Design Thinking Important in Decision Making?

When Apple, Facebook, and Instagram wanted to make this process easier and better, someone making decisions about future products had to **be creative** and they had to **use design thinking**. Both are important to decision makers today.

Groupthink

When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement * What it does * How it occurs * How to minimize it Groupthink hinders decision making and can jeopardize the quality of the decision by: - Undermining critical thinking in the group - Affecting a group's ability to objectively appraise alternatives - Deterring individuals from critically appraising unusual, minority, or unpopular views. How does groupthink occur? - group members rationalize resistance to asumptions. - members directly pressure those who express doubts or question the majority's views and arguments - members who have doubts or differing points of view avoid deviating from what appears to be group consensus. - an illusion of unanimity prevails. Full agreement is assumed if no one speaks up. How can groupthink be minimized? - encourage cohesiveness - foster open discussion - have an impartial leader who seeks input from all members

How Do Organizations Go Global? Significant: Foreign Subsidiary Strategic Alliance - Joint Venture Franchising Licensing Exporting and Importing Minimal Global Sourcing Global Investment

When organizations go global, they often use different approaches, as we see here: * Managers who want to enter a global market with minimal investment usually start with **global sourcing** (also called **global outsourcing**), which means purchasing materials or labor from the cheapest source in order to maintain a competitive edge. For instance, Massachusetts General Hospital uses radiologists in India to interpret CT scans * Moving beyond global sourcing involves more investment and risk for the organization. **Exporting and importing** entail less investment and risk than other steps in globalization * **Exporting** an organization's products involves making products domestically and selling them abroad * **Importing** involves acquiring products made abroad and selling them domestically. * Managers may also choose **licensing and franchising** to further their global penetration. Both licensing and franchising involve one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee that is usually based on sales. * **Licensing** is most often used by manufacturing organizations that make or sell another company's products. For example, Anheuser-Busch licenses the right to brew and market Budweiser beer to foreign brewers such as Labatt in Canada and Kirin in Japan. * **Franchising** is primarily used by service organizations that want to use another company's name and operating methods, such as KFC and Dunkin' Donuts. * With experience in international markets, managers may next make a more direct investment through a **global strategic alliance**, which is a partnership between an organization and a foreign company partner created to share resources and knowledge in developing new products or building production facilities. Honda Motor and General Electric, for example, teamed up to produce a new jet engine. * A **Joint venture** is a type of strategic alliance in which the partners form a separate, independent organization for a business purpose. For example, Hewlett-Packard has initiated joint ventures with various global suppliers to develop different components for its computer equipment. * Managers may also directly invest in a foreign country by setting up a **foreign subsidiary** as a separate and independent facility or office. For example, United Plastics Group built three injection-molding facilities in China to become a global supplier to its global accounts.

Describe how the workforce is changing and its impact on the way organizations are managed

Workforce continues to reflect increasing diversity Type of workforce diversity: - age - gender - race/ethnicity - disability/abilities - religion - sexual orientation & gender identity Organizations and managers are responding to the changing workforce w/ - work-life balance programs - contingent jobs - recognition of generational differences

Backstory on BENCHMARKING What: First known benchmarking effort by an American company When: 1979 Who: Xerox

Xerox's managers couldn't figure out how Japanese manufacturers could sell copiers in the United States for considerably less than Xerox's production costs. Xerox's head of manufacturing took a team to Japan to do a detailed study of its competitors' costs and processes. The team found their Japanese rivals light years ahead of Xerox in efficiency. Xerox benchmarked those efficiencies and began its strategic turnaround in the copier market.

Decision Point: Which Competitive Strategy? Which competitive strategy will you choose for Country Comfort? Select an option from the choices below and click Submit. A competitive strategy that focuses on core competencies—the activities that can deliver competitive advantage in the short term and into the future, thus allowing Country Comfort to do something better than its competitors. A competitive strategy that focuses on innovatio

You chose to focus on core competencies. This allows you to emphasize the past success of Country Comfort. The brand has long been an industry leader and remains a popular product that should remain a viable high-quality alternative to the super-premium products such as Starbucks.

Decision Point: Culture - Recognition Finally, workers from which country would be likely to value a recognition program that singles out the employee most responsible for promoting quality improvements?

You selected The United States. This was the best choice. The United States is the country with the highest score on the scale of individualism and collectivism.

Decision Point: Top Management Support You know that it is going to take a lot to persuade upper management to accept your position and the idea of becoming more socially responsible. You have heard talk of scrapping both and plowing more profits back into updating production facilities. What would be the best argument for what you are trying to do at Tri-State?

You selected arguing that social responsibility aids long-term profitability. This was the best choice. There are many reasons why social responsibility is a great path for organizations, and in this situation, this is the most appropriate argument.

Decision Point: Enforcing the Code of Ethics Now that the code of ethics has been revised, how do you intend to measure how well employees are conforming to the code of ethics?

You selected performance reviews. This was the best choice. By making the ethics code part of the performance review process, you are demonstrating that ethics matter, and each employee is accountable for honoring the code.

Tri State

You selected social responsiveness. This was the best choice. Currently, it doesn't appear that Tri-State has reached the highest level of social action, but it is farther along than the classical approach. Social responsiveness fits between those two levels of social action.

Decision Point: Internal Analysis: Weaknesses Now that you have looked at the company's internal strengths, you turn your attention to its weaknesses. Which of the following would suggest that Holden Evans is not well positioned to enter the pod coffee market? Select an option from the choices below and click Submit. Paris Roast, another coffee supplier owned by parent company Holden Evans, recently came out with a poorly received instant coffee. Country Comfort has been known for decades as the coffee for conservative, "middle-brow" drinkers, who are less likely to be interested in new products. Large corporations such as Holden Evans can attract the highest-quality growers with long-term contracts. Decision Point: Internal Analysis: Weaknesses Now that you have looked at the company's internal strengths, you turn your attention to its weaknesses. Which of the following would suggest that Holden Evans is not well positioned to enter the pod coffee market? Select an option from the choices below and click Submit. Paris Roast, another coffee supplier owned by parent company Holden Evans, recently came out with a poorly received instant coffee. Country Comfort has been known for decades as the coffee for conservative, "middle-brow" drinkers, who are less likely to be interested in new products. Large corporations such as Holden Evans can attract the highest-quality growers with long-term contracts.

You selected that Country Comfort has been known for decades as the coffee for conservative, "middle-brow" drinkers, who are less likely to be interested in new products. This was the best choice. Country Comfort's current customer base is more conservative and less likely to try new things such as the pod coffee concept, which means your new venture might fail with current customers.

Decision Point: Conflict, Brazilian Workers Now that you have identified the problem between the CEO and the Brazilian workers as a conflict between individualistic and collectivistic cultures, what do you tell the CEO?

You selected that compared to Americans, Brazilians have a collectivistic culture, where group well-being is important. This was the best choice. According to Hofstede's research, Brazil has more of a collectivistic culture.

Decision Point: Internal Analysis: Strengths The strategic management team thinks entering the pod coffee market is the best choice for the company, but asks you to think about the company's internal strengths and weaknesses before they make a final decision. First you decide to look at the company's strengths. Which two of the following four options suggests that Holden Evans has an advantage in this market? Decision Point: Internal Analysis: Strengths The strategic management team thinks entering the pod coffee market is the best choice for the company, but asks you to think about the company's internal strengths and weaknesses before they make a final decision. First you decide to look at the company's strengths. Which two of the following four options suggests that Holden Evans has an advantage in this market? Select two options from the choices below, and then click Submit. Country Comfort's ground coffee won the "Coffee of the Year" award from Consumer Reports magazine last year. Holden Evans' Country Comfort Coffee acquired its strong market share through effective advertising in 1986. Holden Evans is very well known globally as a market leader in cosmetics and skin care products. Because Holden Evans is a large company, it can utilize economies of scale. Because of this, a new product such as pod coffee could compete on price. Submit You

You selected that Country Comfort's ground coffee won the "Coffee of the Year" award from Consumer Reports magazine last year. You also selected that because Holden Evans is a large company, it can utilize economies of scale. Because of this, a new product such as pod coffee could compete on price. These were the best choices. You have selected the two strongest options pinpointing Holden Evans' advantages. Country Comfort's excellence in the ground coffee market is a good selling point that might increase the likelihood of commercial success of a new pod coffee product. And, Holden Evans' economies of scale can only help in the venture into the pod coffee market. If they can produce a good, quality product for a lower cost, that's a great strength. ** MISSED You selected that Holden Evans is very well known globally as a market leader in cosmetics and skin care products. You also selected that Country Comfort's ground coffee won the "Coffee of the Year" award from Consumer Reports magazine last year. These were an OK choice. But remember, you want to look for the organization's greatest strengths. Only one of these fits that bill.

Decision Point: Whistleblowing Dilemma Jane, a Tri-State employee, speaks to you privately and says: "I'm concerned about the fact that the barns aren't being kept clean and that the animals aren't being checked for disease and infection. I'm not sure what the rules are about this, but I thought you should know because I think it's a problem." Because your position also covers any instances of whistleblowing within the company, how should you handle this information?

You selected that Jane's concerns should be taken seriously and investigated. This was the best choice. This choice promotes an ethical culture. Furthermore, Tri-State now has the opportunity to alleviate the issue and better protect customers and employees.

Decision Point: Swedish Manager, Japanese Plant Finally, you talk to Oscar, the Swedish manager of the plant in Japan. He has been forceful with the Japanese workers (and flirtatious with the female workers), but they do not respect him. He has even tried to bribe the workers to get them to perform. Based on what you have learned so far, what do you think is the problem here?

You selected that Oscar's own behavior is at fault. It doesn't align with universal standards of leadership and also goes against Holden-Evan's company policies. This was the best choice. Integrity is a universal leadership quality, regardless of culture or nationality.

Decision Point: Defending Social Responsibility Activities Tri-State has come off a very good year financially and has plans to do more for the community. You discuss with the CEO your plan to do the most good at the lowest cost. The CEO asks, "Why don't we just make a financial donation to a worthy cause?" What is the best response?

You selected that Tri-State could simply donate money, but there are additional ways that Tri-State could achieve the same positive impact at a lower cost. This was the best choice. This was the best argument in favor of social responsibility activities. While donations can do good, a company in Tri-State's position can likely find other ways to have a greater impact at lower costs.

Decision Point: Testing the Code of Ethics Tri-State is selling a high-fat, high-sugar yogurt snack called Lactose Defiant. Which of the following, if true, would argue that selling the product violates Tri-State's code of ethics?

You selected that Tri-State is responsible for foreseeable misuses of its products. This was the best choice. Misuse of this product - overeating - is clear and easy to predict.

Decision Point: External Analysis: Opportunities You share with Jessica your thoughts on what some of the external threats are for the company and express concern that perhaps you shouldn't seek out new products/opportunities at this juncture. Your advisor reminds you that you also need to consider what external opportunities exist that would aid in moving forward with this new venture. Which of the following suggests an opportunity for Country Comfort? Select an option from the choices below and click Submit. Erudite Beans is charging more for its regular ground coffee found in supermarkets, but customers don't seem to mind the high price of the market leader. According to the review of Erudite Beans' pod coffee, the company is charging more for its new pod product. Customers are not happy about the higher cost and are beginning to hesitate at the price. Starbucks has just introduced its new "virtual delivery" service, which brings customers' orders directly to their cars after placing the order via an app. Although well received, this service has a premium charge that customers are not happy with.

You selected that according to the review of Erudite Beans' pod coffee, the company is charging more for its new pod product. Customers are not happy about the higher cost and are beginning to hesitate at the price. This was the best choice. You rightly determined that the high cost of your competitors can be turned into an opportunity for Holden Evans' new venture. By offering a lower-cost alternative, Country Comfort can fill a perceived need of consumers.

Decision Point: External Analysis: Threats In your research on external threats, you read a report that the sales of one of your competitors, Erudite Beans, has been on the rise. In addition, Erudite Beans has also indicated in their PR releases that they are planning to move into the pod coffee market. Based on this information, some team members believe that Erudite Beans is likely to be the primary external threat to Holden Evans' new venture. Which of the following, if true, would be the strongest evidence supporting that position? Select an option from the choices below and click Submit. Erudite Beans has indicated that they are forming a partnership with Starbucks, and together they will offer a very high-end, premium ground coffee available only at standalone Starbucks locations. An industry insider has already published a glowing review of a pod coffee prototype from Erudite Beans in a local trade publication. Erudite Beans has indicated they are challenging Starbucks by opening high-end coffee shops

You selected that an industry insider has already published a glowing review of a pod coffee prototype from Erudite Beans in a local trade publication. This was the best choice. Because your competitor, Erudite Beans, already has a pod coffee prototype, it is the primary external threat to Holden Evans.

Decision Point: Weaken Claim to Assign Schedule to Intern Which of the following facts, if true, would weaken your claim that you should assign the scheduling task to the new intern? Select an option from the choices below and click Submit. You think the new intern has time in his schedule to take on this task, but aren't sure. You are concerned that assigning this task to this short-term intern might signal to your supervisor that you are unable to complete all of your job duties by the required deadlines. Doing the schedule yourself would take much less time than training the intern to do it

You selected that doing the schedule yourself would take much less time than training the intern to do it. This was the best choice. The time you save can be used for your other necessary tasks.

Companies across the United States and around the world have announced plans to move to more environmentally sustainable products and services. These companies are practicing green management, which considers the company's impact on the natural environment. Approaches include the legal (or light green) approach, the market approach, the stakeholder approach, and the activist (or dark green) approach. Decision Point: Code of Ethics: Finding Its Flaw While you are waiting on the top management team to present your recommendations to the board of directors, you take a look at updating Tri-State's current code of ethics. In summary, it states that customers and employees should be treated with respect, that all business should be carried out in accordance with all applicable laws, and that any violation of Tri-State's ethical guidelines is cause for disciplinary action. What is the best criticism of this code of ethics?

You selected that it covers no ethical responsibilities beyond conforming to law and supporting employees. This was the best choice. A code of ethics should cover responsibility to the public.

Decision Point: Strengthen Claim to Assign Schedule to Intern Which of the following facts, if true, would strengthen your claim that you should assign the scheduling task to the new intern? Select an option from the choices below and click Submit. The HR manager raves about the intern's abilities to learn quickly and to self-manage. Each of your previous interns has created the weekly second shift schedule. Your supervisor, the VP of Production, mentored you when you were an intern and your mentoring of this new intern could earn you the promotion you desire.

You selected that the HR manager raves about the intern's abilities to learn quickly and to self-manage. This was the best choice. The HR manager has supervised the intern recently and has first-hand knowledge of his abilities and need for guidance.

Decision Point: Should You Accept Budget Help from the Intern? Which of the following, if true, would support a decision to accept the help of the intern? Select an option from the choices below and click Submit. The VP of Production will review the budget once it's complete. The intern has budget knowledge gained from coursework at the local university. The intern's past experience in HR included creating budgets for the dairy's VP of sales

You selected that the intern's past experience in HR included creating budgets for the dairy's VP of sales. This was the best choice. If your intern has previous experience creating budgets, he likely will be helpful to you now.

Decision Point: Portuguese Manager, Austrian Plant You talk to Luis, the Portuguese manager of the Austrian plant. He says the workers are uncooperative and do not carry out the instructions that he conveys to them. He shows you several emails in which they complain that he is too dominating, and that they find it hard to tell what he is thinking. What is your response to this situation?

You selected that there may be cultural differences between the Portuguese manager and the Austrian workers. Further analysis is required. This was the best choice. It is best to assume that cultural differences exist until similarity is proven. Delay judgment until you've had time to observe the situation from everyone's perspective.

Decision Point: Enforcing Policies Next, you talk to Gabriela, manager of the plant in Brazil. She objects to the CEO's decision to enforce restrictions on regular celebrations. Retirement parties have been cut from a monthly to a quarterly schedule as a way of saving money. Gabriela has done her best to enforce this new policy, and has harshly reprimanded anyone who questions it, but she complains that she is caught between two conflicting loyalties. What recommendation will you give to the CEO regarding Gabriela's situation?

You selected that this is a conflict between an individualistic culture and a collectivistic culture. This was the best choice. The CEO needs to take this into account before deciding on a course of action.

Decision Point: Evaluating the Conflict, Luis Based on the available data, you try to determine the primary cultural reason why Luis seems dominating and unreadable to the Austrian workers, whereas the Austrian workers seem uncooperative and disobedient to Luis. Review Hofstede's cultural values by nation before you make any decision. Click the table icon below. Hofstede's Cultural Values by Nation: CountryPower distance (index)Power distance (rank)Individualism vs Collectivism (index)Individualism vs Collectivism (rank)Austria36535518Brazil69143826-27Japan54334622-23Portugal6324-252733-35Sweden3147-487110-11US4038911 A high-context culture relies on implicit communication and nonverbal cues. High-context cultures will use communication that focuses on underlying context, meaning, and tone in the message, and not just the words themselves. Examples of high context cultures include: Japanese, South American, Spanish, Italian A low-context culture relies on explicit communication. In low-context communication, more of the information in a message is spelled out and defined. Examples of a low context culture include: German, Austrian

You selected that this is primarily a conflict between a high-context culture and a low-context culture. This was the best choice. The problem at the Austrian plant is a conflict between a high-context culture and a low-context culture.

Decision Point: How Do You Allow the Intern to Help with Your Budget? Given this information, do you accept the intern's help with your budget? Select an option from the choices below and click Submit. You thank him, but reject his help. You gladly accept his help and have him complete the budget while you turn your attention to other important tasks. You allow the intern to help with the budgeting areas with which he is familiar

You selected that you allow the intern to help with the budgeting areas with which he is familiar. This was the best choice. You will receive some help with your budget crisis, and your intern will expand his managerial skills by learning how to create budgets.

Decision Point: Weaken Decision to Assign Changes to Intern Which of the following, if true, would weaken the claim that you should assign the changes to the intern? Select an option from the choices below and click Submit. You have a full schedule, which leaves you little time for training, and the changes need to be made and posted on the production floor immediately. The production manager for the yogurt line always makes these kinds of changes herself. If the intern makes more scheduling mistakes, it might be held against you when you apply for an upcoming promotion.

You selected that you have a full schedule, which leaves you little time for training, and the changes need to be made and posted on the production floor immediately. This was the best choice. Your time constraints and the immediate need for schedule changes made this the best choice. However, it would be wise to plan time for some additional training before the intern creates the next schedule.

Decision Point: Strengthen Decision to Assign Changes to Intern Which of the following, if true, would strengthen the claim that you should assign the changes to the intern? Select an option from the choices below and click Submit. You're too busy to do the revision yourself. You want to demonstrate your trust in the intern and know that he is eager to learn and correct any mistakes. The changes needed are large in scope and will necessitate significant additional training time with the intern.

You selected that you want to demonstrate your trust in the intern and know that he is eager to learn and correct any mistakes. This was the best choice. The intern's eagerness to learn the entire scheduling process made this the best choice.

Decision Point: Providing Feedback to Your Intern How will you provide feedback to your intern? Select an option from the choices below and click Submit. You hold off on providing feedback until you see how well the following week's schedule is created. You want to help the intern grow, so you send him a quick email with feedback on how you think he did with his first schedule and with notes for improvement. You want to help your intern grow and to improve your own skills, so you take the time to meet with the intern. You provide him with feedback on how you think he did with his first schedule, and you ask him to give you feedback on your management of the task.

You selected that you want to help your intern grow and to improve your own skills, so you take the time to meet with the intern. You provide him with feedback on how you think he did with his first schedule, and you ask him to give you feedback on your management of the task. This was the best choice. Your interactive management style improved the intern's understanding of the scheduling process. His next schedule was completed on time and was error-free. It also improved your working relationship and, ultimately, your management skills. How will you provide feedback to your intern? You hold off on providing feedback until you see how well the following week's schedule is created. You want to help the intern grow, so you send him a quick email with feedback on how you think he did with his first schedule and with notes for improvement. You want to help your intern grow and to improve your own skills, so you take the time to meet with the intern. You provide him with feedback on how you think he did with his first schedule, and you ask him to give you feedback on your management of the task. 3 out of 5 points earned: You selected that you want to help the intern grow, so you send him a quick email with feedback on how you think he did with his first schedule and with notes for improvement. This was an OK choice. Your email provided the feedback your intern needed to improve when he created the next second shift schedule. Unfortunately, it did not provide the intern the opportunity to make any comments on the process. Because of this, it took him weeks to approach you with information that might have helped you create a better working environment and improve your management skills. LO 4.1 Describe the decision-making process. pp. 91-97

Decision Point: Manage Personnel and Maintain Relationships You have been impressed with the intern's eagerness to learn and want to build trust between him and the line workers, but you are the one responsible for making sure the appropriate changes are made to the schedule. How should the necessary schedule changes be made? Select an option from the choices below and click Submit. You make no changes to the schedule because you don't want to hurt the intern's feelings. You will ask the intern to join you in talking to the shift workers and then let the shift workers know that the intern will take care of changes. You will make the necessary changes to the schedule yourself.

You selected that you will ask the intern to join you in talking to the shift workers and then let the shift workers know that the intern will take care of changes. This was the best choice. Involving both the intern and the line workers in handling the scheduling changes is an excellent way to build trust.

Decision Point: Analyze or Formulate a Strategy? After discussing the options, the strategic management team has agreed that the pod coffee idea works well with the company's mission statement and decides that the company should move forward in exploring the pod coffee idea. In order to make sure that the pod coffee idea is a good one, and to see if there are other potential future endeavors to pursue, you must analyze the market situation and formulate a strategy. Your boss asks you to start working on the pod coffee idea. What is your first step? Select an option from the choices below and click Submit. Your first step is to formulate a strategy for how to market the pod coffee concept. Your first step is to analyze the organization's strengths, weaknesses, opportunities, and threats. Your first step is to do some research to find out what your competitors are doing.

You selected that your first step is to analyze the organization's strengths, weaknesses, opportunities, and threats. This was the best choice. This SWOT analysis must be performed before you can formulate any type of strategy for a new product. It helps you identify the strong and weak areas of your organization as well as what opportunities and threats are surrounding your new product idea.

Decision Point: Gather Information for Decision You must decide whether or not to delegate the scheduling task to the new intern. What do you need to know before making the decision? Select an option from the choices below and click Submit. What specific management courses the intern has taken at the local university. The intern's experience with schedules and his need for guidance. Whether or not the yogurt production manager delegates schedule preparation to her intern.

You selected the intern's experience with schedules and his need for guidance. This was the best choice. Knowing the intern's experience with schedules and how much training he might need from you will allow you to make a well-reasoned delegation decision.

Decision Point: You Make the Delegation Decision Given the information your intern has provided, will you delegate the scheduling task to him? Select an option from the choices below and click Submit. You assign the scheduling task to the new intern. You choose to create the second shift schedule yourself. You assign the scheduling task to the yogurt production manager's experienced intern

You selected to assign the scheduling task to the new intern. This was the best choice. Your intern's experience and confidence makes the decision to delegate the scheduling responsibility to the intern now a good one. It also will free up your time for other necessary tasks.

Decision Point: Choosing a Social Responsibility Initiative After some great discussions with the CEO and Vice Presidents, you now feel that you have a majority of the top management team on board. Although resources are limited, you feel that the most pressing need is to become more sustainable. This is an important issue not just in the milk industry, but worldwide. Success here could lead to important impacts down the road. For now, management wants your recommendation: Which project is most likely to lead Tri-State into becoming more sustainable, but also provide a significant return to Tri-State?

You selected to begin a line of organic products. This could make Tri-State's products healthier and have a big impact on the environment. This was the best choice. By offering an organic line, the company could become more sustainable and capitalize on a new product line.

Decision Point: Determining Ethical Responsibilities How will you determine Tri-State's ethical responsibilities?

You selected to determine Tri-State's core values, and specify goals based on those core values. This was the best choice. A code of ethics should be based on core values.

Decision Point: Decide How Much Training to Provide Given what you've just learned about his abilities and experience, how much time should you plan to spend training the intern on how to create the second shift schedule? Select an option from the choices below and click Submit. You spend an hour conducting a brief training of the basics and encourage the intern to check in with you when he has questions. You spend a few hours in training and end by saying, "Just tell me when you're done." You spend several hours in training, walking the intern through each step

You selected to spend an hour conducting a brief training of the basics and encourage the intern to check in with you if he has questions. This was the best choice. This choice takes your time constraints and the intern's needs into consideration. Your willingness to answer questions will put the intern at ease as he begins his new task.

Decision Point: Competitive Strategy: Core Competency Which competitive strategy best utilizes Country Comfort's core competencies (which include a large and efficient network for obtaining and processing quality coffee beans)? Select an option from the choices below and click Submit. Use Country Comfort's core competencies to pursue a cost leadership strategy in which Country Comfort can deliver better quality at a lower price than competitors. Use Country Comfort's core competencies to pursue a focus strategy in which Country Comfort focuses on a narrow segment of the market: older coffee drinkers. Use Country Comfort's core competencies to pursue a differentiation strategy in which Country Comfort differentiates its coffee products by packaging them in neon orange packages that consumers can't miss.

You selected to use Country Comfort's core competencies to pursue a cost leadership strategy in which Country Comfort can deliver better quality at a lower price than competitors. This was the best choice. Using the company's core competencies to pursue a cost leadership strategy allows Country Comfort to deliver a better quality at a lower price; a win-win solution.

Decision Point: Mission Statement Country Comfort Coffee's strategic management team is reviewing the company's mission statement—to produce the world's best-tasting coffee—to determine whether or not their new idea to produce pod coffee matches with the company's core values. Does the pod coffee idea fit with Holden Evans' mission statement? Select an option from the choices below and click Submit. Yes—you think pod coffee fits well with the company's mission statement. Maybe—you think that it somewhat fits but suggest rewording the company's mission statement to include the pod coffee concept. No—you don't think it matches the company's mission statement. Submit You selected yes—you think pod coffee fits well with the compan

You selected yes—you think pod coffee fits well with the company's mission statement. This was the best choice. Holden Evans' mission is "To produce the world's best-tasting coffee." This encompasses all forms of coffee, including the pod coffee concept. As long as the pod coffee is equal in quality and taste to the other forms of coffee, then the concept is in line with the mission statement.

sustainability

a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies Leader: Walmart - sustainability goal: remove 20 million metric tons of greenhouse gas emissions from supply chains - equivalent of removing more than 3.8 million cars from the road for a year. reuses/recycles more than 80% waste produced stores/other US operations 75% workplaces have at least one green technology practice those committed to being sustainable discovering running organization in more sustainable way means making informed decisions based on through/ongoing communication w/ various stakeholders, understanding their requirements, factoring economic, environmental, social aspects into how they pursue their business goals In today's world where many individuals have diminishing respect for businesses, few organizations can afford the bad press or potential economic ramifications of being seen as socially irresponsible.

nominal group technique

a decision-making technique in which group members are physically present but operate independently

foreign subsidiary

a direct investment in a foreign country that involves setting up a separate and independent facility or office can be managed as multidomestic organization (local control) or global organization (centralized control) **greatest commitment found of resources and poses greatest amount of risk i.e. United Plastics Group of Westmont, Ill. built 3 injection-molding facilities in Suzhou, China - VP for business dev. level of investment necessary b/c fulfilled mission being global supplier to global accounts

problem

a discrepancy between an existing and a desired state of affairs

groupthink

a form of conformity in which group members withhold deviant, minority, or unpopular views in order to give the appearance of agreement.32 The Tragedy of Groupthink What It Does Hinders decision making, possibly jeopardizing the quality of the decision by: - Undermining critical thinking in the group. - Affecting a group's ability to objectively appraise alternatives. - Deterring individuals from critically appraising unusual, minority, or unpopular views. How Does It Occur? Here are some things to watch out for: - Group members rationalize resistance to assumptions. - Members directly pressure those who express doubts or question the majority's views and arguments. Members who have doubts or differing points of view avoid deviating from what appears to be group consensus. - An illusion of unanimity prevails. Full agreement is assumed if no one speaks up. What Can Be Done to Minimize Groupthink? - Encourage cohesiveness. - Foster open discussion. - Have an impartial leader who seeks input from all members.33

parochialism

a narrow focus in which managers see things only through their own eyes and from their own perspective some had still have parochial view of world of business don't recognize people from other countries have different way doing things live differently than Americans view can't succeed in global village - not dominant view today requires understanding countries have different cultures, different environments

management by objectives (MBO)

a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance

programmed decision

a repetitive decision that can be handled using a routine approach

procedure

a series of interrelated, sequential steps used to respond to a structured problem

joint venture

a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose. i.e. Hewlett- Packard numerous joint ventures w/ various suppliers around globe develop different components for computer equipment - easy way compete globally

electronic meeting

a type of nominal group technique in which participants are linked by computer

nonprogrammed decision

a unique and nonrecurring decision that requires a custom-made solution

11. In the US the gap between the rich and poor is

accepted

satisfice

accepting solutions that are "good enough"

assessing environmental uncertainty

another constraint posed by external environments is the amount of uncertainty found in that environment can affect organizational outcomes

stakeholders

any constiuencies in an organization's environment that are affected by that organization's decisions and actions these groups have a stake in or are significantly influenced by what organization does and these groups can influence the organization i.e. who aaffected by decisions/actions of Starbucks? coffee bean farmers, employees, specialty coffee competitors, local communities, etc. some stakeholders may impact decisions/actions of Starbucks' managers * the idea that organizations have stakeholders is now widely accepted by management and academics and practicing managers

potential to influence manager's planning, organizing, leading, controlling

all components potentially constrain managers' decisions and actions - economic and demographic

3. theory of justice view of ethics

an individual imposes and enforces rules fairly and impartially goal is to be equitable, fair, impartial in making decisions

competitive strategy

an organizational strategy for how an organization will compete in its businesses

corporate strategy

an organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses

design thinking

approaching management problems as designers approach design problems

Uncertainty avoidance

as defined in Hofstede's research GLOBE team defined term society's reliance on social norms and procedures to alleviate the unpredictability of future events. High - Austria, Denmark, Germany Moderate - Israel, US, Mexico Low - Russia, Hungary, Bolivia

Performance orientation

dimension refers to the degree to which a society encourages and rewards group members for performance improvement and excellence High - US, Taiwan, New Zealand Moderate - Sweden, Israel, Spain Low - Russia, Argentina, Greece

2-5 Culture most readily impacts all of the following except​ ________.

competitor actions Culture is the shared​ values, principles,​ traditions, and ways of doing things that influence the organizational members. Organizational culture does not readily influence competitor actions.

sociocultural component

concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior

Humane orientation

cultural aspect is degree to which a society encourages and rewards individuals for being fair, altruistic, caring, kind to others High - Indonesia, Egypt, Malaysia Moderate - Hong Kong, Sweden, Taiwan Low - Germany, Spain, France

strong cultures

cultures in which the key values are deeply held and widely shared have greater influence on employees than weaker cultures the more employees accept organization's key values, greater their commitment to those values, stronger culture is most organizations have moderate to strong cultures, relatively high agreement what's important - what defines "good" employee behavior, what takes to get ahead, etc. stronger culture becomes, more affects what employees do and way managers plan, organize, lead, control strong culture org. culture can substitute for rules/regulations formally guide employees create predictability, orderliness, consistency w/o need for written documentation stronger culture - less managers need concerned w/developing formal rules/regulations - guide internalized in employees whn accept organization's culture

18. _____is the study of population characteristics

demographics

All countries have____ affect how a business is managed

different values, morals, customs, political and economic systems, laws, i.e.U.S. has laws guard against employers taking action against employees basis of age - not found in all countries - managers must be aware of country's laws

3-8 When Ross is sensitive to the culturally based holidays of his​ employees, he is focused on his​ employees' ________.

ethnicity Ethnicity is related to​ race, but it refers to social traitslong dash—such as cultural background or allegiancelong dash—that are shared by a human population.

over-confidance bias

exhibiting when decision makers think know more than do or hold unrealistically positive views of themselves/their performance

Five organizational factors have been found that can impede your creativity:

expected evaluation—focusing on how your work is going to be evaluated surveillance—being watched while you're working external motivators—emphasizing external, tangible rewards competition—facing win-lose situations with your peers constrained choices—being given limits on how you can do your work.

Assertiveness

extent to which a society encourages people to be tough, confrontational assertive, competitive vs modest/tender High - Spain, US, Greece Moderate - Egypt, Ireland, Philippines Low - Sweden, New Zealand, Switzerland

external environment

factors, forces, situations and events outside the organization that affect its performance refers to factors, forces, situations, and events outside the organization that affect its performance

Approaches going global

global market w/ minimum investment global sourcing (global outsourcing) - purchasing materials or labor from around world (cheapest) goal: take advantage of lower costs in order to be competitive i.e. Mass Gen hospital uses radiologists in India interpret CT scans **offers competitive advantages last economic crisis - Dell, Apple, Am Express scaled back some offshore customer service ops. others brought manufacturing back home political pressure i.e. Apple Mac computers in US built in a decade and hire US workers reduce reliance foreign subcontractors whose treatment of workers criticized each successive step beyond global requires more investment and entails more risk for organization

traditional goal setting

goals set by top managers flow down through the organization and become subgoals for each organizational area

framing bias

happens when decision makers select and highlight certain aspects of a situation while excluding others by drawing attention to specific aspects of situation/highlighting them, while same time downplaying or omitting other aspects, they distort what they see and create incorrect reference points.

Nominal group technique

helps groups arrive at a preferred solution.It restricts discussion during the decision-making process: Group members gather but are required to operate independently. They secretly list general problem areas or potential solutions to problems.

dynamic environment

if components in organization's environment change frequently

if culture is weak

if no dominant shared values present - its effect on employee behavior less clear

2. rights view of ethics

individuals are concerned with respecting and protecting individual liberties and privileges such as the right of free consent, the right to privacy, the right of free speech, and so forth under this view, making ethical decisions fairly simple b/c goal is to avoid interfering with the rights of others who might be affected by the decision

managers

individuals in an organization who direct and oversee the activities of other people in the organization so organizational goals can be accomplished. manager's job isn't about personal achievement, it's about helping others do their work i.e. coordinating work of departmental group, leading entire organization, or supervising single person could involve coordinating work activities of team w/people from different depts or others outside organization i.e. temp employees/ind. who work for organization's suppliers Doesn't mean managers don't work directly on tasks, some have duties not directly related to overseeing activities of others. i.e. insurance claims supervisor might process claims in addition to coordinating work activities of other claims employees

2-6 Google is known as a company that is constantly moving to the​ "edge" with new ways of leveraging technology in their operations and products. Which cultural dimension does this​ represent?

innovation and risk taking Google would be shaped by one particular cultural dimension. By always focusing on new ways of working and by new​ products, they are leveraging their culture of innovation and risk taking.

political/legal component

looks at federal, state, and local laws, as well as laws of other countries and global laws also looks at federal, state, and local laws, as well as laws of other countries and global laws includes country's political conditions and stability

20. What will cause countries such as Denmark to shrink with respect to the size of their economy, relative to other nations?

low birth rate

Intuitive decision making

making decisions on the basis of experience, feelings, and accumulated judgment - described as "unconscious reasoning" - five different aspects of intuition **Almost half of managers rely on intuition more often than formal analysis to make decisions about their companies** Suggestions for using intuitive decision making: - use it to complement, not replace, other decision-making approaches - look to act quickly with limited information because of past experience with a similar problem - pay attention to the intense feelings and emotions experienced when making decisions. **Better decisions**

bounded rationality

making decisions that are rational within the limits of a manager's ability to process information

exporting minimal investment and risk

making products domestically and selling them abroad

team leaders, managers

manage activities of a work team are a special category of lower-level managers that have become more common as organizations have moved to using employee work teams to do work. They typically report to a first-line manager. special type of manager become more common as organizations use employee work teams are individuals who are reponsible for managing and facilitating the activities of a work team

middle managers

manage other managers fall between the lowest and highest levels of the organization. They often manage other managers and sometimes nonmanagerial employees, and are responsible for translating the goals set by top managers into specific detailed tasks that lower-level managers oversee. Titles include: agency head, unit chief, division manager, or project leader those managers found between the lowest and top levels of the organization often manage other managers and maybe some nonmanagerial employees typically responsible for translating goals set by top managers into specific details that lower-level managers will see get done titles i.e. department or agency head, project leader, unit chief, district manager, division manager, or store manager

Describe the factors that are reshaping and redefining management

managers deal w/ changing workplaces, changing workforce, global economic/political uncertainties, changing technology. 4 areas of critical importance to managers are: * delivering high-quality customer service * encouraging innovative efforts * using social media efficiently and effectively * how sustainability contributes to an organization's effectiveness

reality

managers neither all-powerful nor helpless their decisions and actions are constrianed External constraints come from the organization's external environment Internal constraints come from the organization's culture

22. Which of the following provides the best illustration of technology transforming how managers manage in the workplace?

managers oversee very small clerical and secretarial staffs

"ready-aim-fire" culture

managers will study and analyze proposed projects endlessly before committing to them in "ready-aim-fire" culture managers take action, then analyze what has been done culture supports belief profits increased by cost cutting/ company's best interess served by achieving slow but steady increases in quarterly earnings

How Are Managers Different from Nonmanagerial Employees?

managers work in organizations, not everyone who works in organization is manager members of an organization can be divided into two categories: nonmanagerial employees managers

Steps 3,4,5

many decision-making situations criteria not all equally important - allocate weights to items **step 2** give them relevant priority in decision **step 3** simple approach is give most important criterion weight of 10, then assign weights to rest against that standard contrast to criterion gave you a 5 - highest-rated factor twice as important the idea is to use your personal preference to assign priorities to relevant criteria in your decision and indicate degree of importance by assigning weight to each then decision maker lists the alternatives that could successfully solve the problem - just list not evaluate once alternatives identified, decision maker critically analyzes each one **Step 5** by evaluating it against the criteria **Most decisions involve judgments** personal judgments by decision maker reflected in **1** criteria chosen **step 2** *2 the weights given to to the criteria *3 the evaluation of alternatives **Step 6** - time to choose best alternative from those assessed. - determined all pertinent factors in decision, weighted them appropriately, identified & assessed the viable alternatives, step is fairly simple. chose alternative generated highest score in step 5

Rudi's Bake 1-1 ​Rudi's most recent​ CEO, Jane​ Miller, determined that​ Rudi's Organic Bakery needed a VW bus that would be driven around the country to all the tastings they attended. This represents what part of the​ culture?

material symbols The VW bus represents the values of the organization when it was created in the 1970s. This is a symbol of​ Rudi's Organic Bakery culture.

Rudi's 1-4 If Jane​ Miller, CEO of​ Rudi's Organic​ Bakery, sits in a cubicle just like everyone else instead of having a large office like many other​ CEOs, this would demonstrate which of the following ways that employees at​ Rudi's learn the​ culture?

material symbols The most common ways employees learn about an​ organization's culture are​ stories, rituals,​ language, and material symbols. Material symbols include such visible elements like the layout of an​ organization's facilities, how employees​ dress, the size of​ offices, the elegance of​ furnishings, and so on.

Zane's 1-2 Tom Girard is the Director of Retail Operations for​ Zane's Cycles. How would his position likely be classified within the​ organization?

middle manager In his​ role, Tom manages retail operations for​ Zane's Cycles. This suggests that he is a middle manager. Middle managers manage the work of​ first-line managers and can be found between the lowest and top levels of the organization. They might have titles such as regional​ manager, project​ leader, or division manager.

threats

negative trends in the external environment

unstructured problem

new or unusual for which information is ambiguous or incomplete However, many situations that managers face are unstructured problems - that is, situations that are new or unusual and for which information is ambiguous or incomplete. Entering a new market segment or deciding to invest in an unproven technology are examples of unstructured problems.

Rudi's 1-3 Jane​ Miller, CEO of​ Rudi's Organic Bakery indicates that it has taken more than two years for the culture that she is introducing to permeate. This would suggest that​ Rudi's Bakery now has a​ _________ culture as compared to two years ago.

strong Strong cultures are those in which the key values are deeply held and widely shared. These cultures have a greater influence on employees than do weaker cultures. The more employees accept the​ organization's key values and the greater their commitment to those​ values, the stronger the culture is.

2-2 The idea that a​ manager's ability to affect performance is constrained by external factors represents a​ _______ view of management.

symbolic There are two theoretical views in understanding how much difference a manager makes in how an organization performs. The symbolic view allows for management outcomes to be constrained by external factors.

14. Which of the following views of management would agree with the statement that managers should not be held accountable for changing global economic conditions?

symbolic view

social responsibility defined different ways (CSR)

profit maximization, going beyond profit making, voluntary activities, concern for the broader social system 2 camps - classical/purely economic -view that management's only social responsibility is to maximize profits - socioeconomic position - holders management's responsibility goes beyond making profits to include protecting and improving society's welfare. AKA corporate social responsibility = mean a business firm's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society ASSUMES: a business - obeys the law - pursues economic interests - (this definition) views a business as a moral agent In its effort to do good for society, it must differentiate between right and wrong.

availability bias

occurs when decision makers tend to remember events that are the most recent and vivid in their memory - result? it distorts their ability to recall events in an objective manner and results in distorted judgments and probability estimates.

stated goals

official statement of what an organization says, and what it wants its various stakeholders to believe, its goals are

stated goals

official statements of what an organization says, and wants its stakeholders to believe, its goals are

important issue is globalization

one component of external environment major events such as catastrophic natural disasters, global economic meltdowns, or terrorist threats create challenges for managers doing business globally

What is meant by the term planning?

planning involves defining the organization's objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. **It's concerned with ends (what is to be done) as well as with means (how it's to be done).** **Planning can be further defined in terms of whether it's formal or informal.** **ends - what is to be done & means - how it's to be done**

strategic plans

plans that apply to the entire organization and encompass the organization's overall goals

1-5 Sammy is really enjoying her new job. She loves having the autonomy and responsibility that comes at her new level. She has a vision to move her department to the next​ level, but she is having trouble connecting with the right people in the organization to make it happen. Which of the skills and competencies is Sammy having trouble​ with?

political skills

components of organization external environment

political/legal demographics economic sociocultural technological global

35. Theodore Janice - TJ Soft - Theodore has just gotten wind from a highly reliable source that Congress is likely to take action in the coming year to ban violent games. TJ Soft has several games that could be considered violent. Which component of the external environment will affect TJ Soft the most in this situation

political/legal component

How Does a Manager Make Programmed Decisions?

programmed and nonprogrammed (described in the next section). Programmed, or routine, decisions are the most efficient way to handle structured problems.standardized method for handling this type of problem, it's considered a **programmed decision** .Decisions are programmed to the extent that (1) they are repetitive and routine and (2) a specific approach has been worked out for handling them. Because the problem is well structured, the manager does not have to go to the trouble and expense of an involved decision process. Programmed decision making is relatively simple and tends to rely heavily on previous solutions. The develop-the-alternatives stage in the decision-making process is either nonexistent or given little attention. Why? Because once the structured problem is defined, its solution is usually self-evident or at least reduced to only a few alternatives that are familiar and that have proved successful in the past. In many cases, programmed decision making becomes decision making by precedent. For structured problems, use: — Procedures — Rules — Policies

global sourcing

purchasing materials or labor from around the world, wherever it is cheapest goal: take advantage of lower costs in order to be more competitive ex: Mass Gen uses radiologists in India to interpret CT scans

Ch. 3 Video CH2M Hill 3-1-V It is likely that CH2M Hill would face which of the following type of diversity when working with the locals on the Guatemala​ project?

race and ethnicity It is highly likely that the diversity CH2M Hill was dealing with on the Guatemala project was one of race and ethnicity. Race represents biological heritage. Ethnicity refers to social traits.

1. utilitarian view of ethics

says that ethical decisions are made solely on the basis of their outcomes or consequences - goal of utilitarianism is to provide the greatest good for the greatest number

Analyzing Alternatives Step 5

see chart Once the alternatives have been identified, the decision maker moves to Step 5 - that is critically analyzing each alternative by appraising it against the criteria. The strengths and weaknesses of each alternative become evident when compared with the criteria and weights established in Steps 2 and 3. Here in Exhibit 4-3. we see the assessed values that the subject put on each of her 12 alternatives after having test-driven each car. Some assessments can be achieved objectively, such as the best purchase price from local dealers and the frequency of repair data as reported by the owners in consumer magazine reports. However, the assessment of how the car handles is clearly a personal judgment. Most decisions contain judgments and these judgments are reflected in which criteria is chosen in Step 2, the weights given to those criteria, and the evaluation of alternatives. Exhibit 4-3 shows only an assessment of the 12 alternatives against the decision criteria; it does not reflect the weighting done in Step 3. If one choice had scored 10 on every criterion, you wouldn't need to consider the weights. Similarly, if the weights were all equal - that is, all the criteria were equally important to you - each alternative would be evaluated merely by summing up the appropriate lines in Exhibit 4-3. For instance, the Ford Fiesta SES would have a score of 38, and the Toyota Camry a score of 43.

Selecting the Best Alternative Step 6

see diagram chart If you multiply each alternative assessment against its weight you get the figures in Exhibit 4-4. For instance, the Kia Soul scored a 40 on durability, which was determined by multiplying the weight given to durability (5) by the manager's appraisal of Kia on the criterion (8). The sum of these scores represents an evaluation of each alternative against the previously established criteria and weights. Notice that the weighting of the criteria has changed the ranking of alternatives in our example. The Volkswagen Golf, for example, has gone from first to third. Looking at the analysis, both initial price and interior comfort worked against the Volkswagen. Step 6 is the critical act of choosing the best alternative from among those assessed. Since we determined all the pertinent factors in the decision, weighted them appropriately, and identified the viable alternatives, we choose the alternative that generates the highest score in Step 5. In our vehicle example - shown here in Exhibit 4-4 - the decision maker would choose the Toyota Camry. On the basis of the criteria identified, the weights given to the criteria, and the decision maker's assessment of each car based on the criteria the Toyota scored highest with 224 points and thus, became the best alternative.

12. The use of peer-to-peer services such as Uber is an example of this type of economy?

sharing

contingent workforce

shift away from traditional full-time jobs - part-time, temporary, contract workers available for hire on an as-needed basis. predicted by end of next decade number contingent employees grown to about 40% of workforce, it's 30% today present managers w/ set of challenges and expectations b/c they aren't employees

licensing or franchising

similar approaches involving one organization giving another organization right to use brand name, technology, or product specifications in return for lump-sum payment or fee usually based on sales difference - licensing primarily used by manufacturing organizations make or sell another company's products franchising primarily used by service organizations want to use another company's name and operating methods Franchises: i.e. Nambians enjoy KFC Russians - Dunkin New Delhi - Subway Anheuser-Busch inBev licenses right to brew/market Budweiser beer brewers in Labbatt in Canada Modelo - Mexico Kirin - Japan

What Strategic Weapons Do Managers Have? **"weapons" they can use to do what they're in business to do and to achieve their goals.**

six strategic "weapons" are important in today's environment: 1. customer service, 2. employee skills and loyalty, 3. innovation, 4. quality, 5. social media, and 6. big data.

2 similar concepts w/ social responsibility 1 - social obligations 2 - social responsiveness

social obligations - those activities a business firm engages in to meet certain economic and legal responsibilities. It does the minimum that the law requires and only pursues social goals to the extent that they contribute to its economic goals social responsiveness - characteristic of the business firm that engages in social actions in response to some popular social need. these managers guided by social norms and values and make practical, market-oriented decisions about their actions. if provides on-site childcare for employees or pkgs products recycled paper, being socially responsive to working parents/environmentalists voiced social concerns/demanded actions - better viewed as being socially responsive rather than socially responsible = both good for society Social responsibility add ethical imperative to do things make society better & not do things make it worse importance of CSR surfaces in 1960s managers confront decisions dimension of social responsibility - philanthropy, pricing, employee relations, resource conservation, product quality, doing business w/countries oppressive govt. etc. research: questioned causation, studies show relationship affected by various contextual factors firm size, industry, economic conditions, regulatory environment - if social involvement/economic performance positively related doesn't show social resp. caused higher econ. performance - maybe company had "luxury" being socially involved some researchers concluded managers can afford to be (and should be) socially responsible

6. Court rulings allowing gay marriage is an example of a change in which components of an organization's external environment?

sociocultural and political/legal

2-4 The environment is said to be​ ________ when there are few new​ competitors, little activity from outside​ groups, and minimal technological breakthroughs.

stable In a stable​ environment, change is minimal. There might be no new​ competitors, few technological​ breakthroughs, and little activity from external groups.

structured problem

straightforward, familiar, easily defined In a structured problem, the goal of the decision maker is clear the problem familiar, and information about the problem easily defined and complete. Examples include a customer who wants to return an online purchase or a TV news team that has to respond to a fast-breaking event. These situation are called structured problems because they align closely with the assumptions that underlie perfect rationality However, many situations that managers face are unstructured problems - that is, situations that are new or unusual and for which information is ambiguous or incomplete. Entering a new market segment or deciding to invest in an unproven technology are examples of unstructured problems.

functional strategy

strategy used in an organization's various functional departments to support the competitive strategy

2-7 When employees focus their behavior on the key values of the​ organization, the organization is said to have a​ ________ culture.

strong Strong cultures are those in which the key values are deeply held and widely shared. These cultures have a great influence on employee behavior. Next Question

1960s Contemporary Approaches: Contingency Approach

systems approach - views systems as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole organizations function as open system - means they are influenced by and interact with their environment a manager has to efficiently and effectively manage all parts of the system in order to achieve established goals. If..... Then * Early management theorists proposed management principles that they generally assumed to be universally applicable. Later research found exceptions to many of these principles. If.... then * **The contingency approach (or situational approach)** says that organizations, employees, and situations are different and require different ways of managing. A good way to describe contingency is "if......then" If this is the way my situation is, then this is the best way for me to manage in this situation. One of the earliest contingency studies was done by Fred Fiedler and looked at what style of leadership was most effective in what situation. Popular contingency variables have been found to include organization size, the routineness of task technology, environmental uncertainty, and individual differences. Since the 1980s, dramatic changes in information technology have directly affected the manager's job. Nearly everyone in an organization is connected via technology and managers may manage employees working from home or halfway around the world. Just like the impact of the Industrial Revolution in the 1700s on the emergence of management, the information age has brought dramatic changes that continue to influence the way organizations are managed.

sunk costs error

takes place when decision makers forget that current choices can't correct the past. - incorrectly fixate on past expenditures of time, money, or effort in assessing choices rather than on future consequences. Instead of ignoring sunk costs, they can't forget them.

2-8 In a culture described as​ "ready-fire-aim," managers would spend most of their time doing which of the​ following?

taking action Culture impacts the behavior choices that managers make. In a culture that can be described as​ "ready-fire-aim," managers take action​ first, then analyze the situation

4. This component of an organization's external environment is concerned with scientific and industrial innovations

technological

commitment concept

the idea that plans should extend far enough to meet those commitments made when the plans were developed

environmental complexity

the number of components in an organization's environment and the extent of knowledge that the organization has about those components looks at the number of components in an organization's environment and the extent of the knowledge that the organization has about those components. organization w/few competitors, customers, suppliers, or govt agencies to deal w/ or needs little info about its environment has less complex, thus less uncertain environment

benchmarking

the search for the best practices among competitors or noncompetitors that lead to their superior performance

functional strategy

the strategies used by an organization's various functional departments to support the competitive strategy

omnipotent view of management

the view that managers are directly responsible for an organization's success or failure * managers are directly responsible for an organization's success or failure * differences in performance are due to decisions and actions of managers * good managers: anticipate change, exploit opportunities, correct poor performance, lead their organizations * profits (up) managers get the credit and rewards * profits (down) managers often get fired * someone - the manager - is held accountable for poor performance * this view helps explain turnover among college and professional sports coaches

symbolic view of management

the view that much of an organization's success or failure is due to external forces outside managers' control * manager's ability to affect performance outcomes is constrained by external factors * managers don't have a significant effect on organization's performance * performance is influenced by factors over which managers have little control (economy, customers, governmental policies, competitors' actions, etc.) * managers symbolize control and influence by developing plans, making decisions, and engaging in other managerial activities to make sense out of random, confusing, and ambiguous situations * manager's part in organizational success or failure is limited

How do managers become aware they have a problem

they have to make a comparison between current reality and some standard, which can be: 1. past performance 2. previously set goals 3. or the performance of some other unit within the organization or in other organizations every decision maker has criteria - whether explicitly stated or not - that guide his or her decision making. what's not identified can be as important as what is b/c still guiding the decision

Doing business ethically requires a commitment from managers - why?

they're the ones who uphold the shared values and set the cultural tone should be ethical role model in words AND in actions also set tone with reward/punishment practices i.e. reward for ethically questionable behavior sets tone for others - send message - punish offender, publicize fact outcomes visible - be a good role model by being ethical and honest - tell the truth always - don't hide or manipulate information - be willing to admit your failures - share your personal values by regularly communicating them to employees - stress the organization's or team's important shared values - use the reward system to hold everyone accountable to the values make ethics training apply to your company - like Yahoo learned - not one size fits all

3. Which of the following is not involved with the demographic component of an organization's external environment? gender, values, race, income

values

1-8 By studying management we can expect to learn which of the​ following?

what good managers do

strategic management

what managers do to develop an organization's strategies

competitive advantage

what sets an organization apart, its distinctive edge

groupthink

when a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement

representation bias

when decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events - managers exhibiting this bias draw analogies and see identical situations where they don't exist

selective perception bias

when decision makers selectively organize and interpret events based on their biased perceptions - influences info they pay attention to, problems they identify, alternatives they develop

benefits of **benchmarking**

which is the search for the best practices among competitors or noncompetitors that lead to their superior performance. The basic idea of **benchmarking** is that managers can **improve quality by analyzing and then copying the methods** of the leaders in various fields.

Herbert A. Simon When faced with too many choices, we SATISFICE!

won Nobel Peace Prize economics his work on decision making primary concern how people use logic and psychology to make choices and proposed individuals limited in their ability to "grasp the present and anticipate the future" This bounded rationality made it difficult for them to "achieve the best possible decisions, "but they made "good enough" or "satisficing" choices Most managerial decisions don't fit the assumptions of perfect rationality, but can still be influenced by 1- the organization's culture 2- internal politics 3- power considerations, and 4- a phenomenon called: **escalation of commitment**

nonmanagerial employees

work directly on tasks not responsible for overseeing others' work work directly on a task and do not oversee the work of others Ex: cashier in department store or someone who processes your course registration at the registrar's office They may be called associates, team members, or contributors

3-3-V As a global engineering firm with work sites all over the​ world, CH2M Hill must constantly be blending both​ "home office" employees as well as local employees. This would require CH2M Hill to leverage​ __________.

workplace diversity Workforce diversity is the way in which people in an organization are different from and similar to one another.