BUSI310 Test 5
econ viability
Good financial incentive must be in place Even if costs are brought down you still need to have a supporting infastructure New technologies require long term commitment and management time Patents and copyrights can help orgs recoup the costs of their investments Companies can lose money through fakery
feedback control-v-
control that focuses on the use of infromation about previous results to correct deviations from acceptable standard
sender
conveys info that has meaning, encode the meaning
motivate people to change: misunderstanding
- even when mgmt promises an change that will benefit everyone, people may resist bc they dont understand
fundamental budgetary considerations
-Estimate of sales and expected income, actual income. -Each budget for one period -Enterprise's complete normal cycle of activity -Usually handled by CFO- the final budget and budgetary procedures
resistance to control
-comprehensive controls increase the accuracy of perform data -controls change expertise and power structure -can change an orgs social structure -may be seen as an invasion of privacy -people afraid of losing decision making authority
How to overcome resistance to change
-educate and communicate -involve key stakeholders -provide support and resources -offer incentives -use covert tactics -force the change
clan control relies on empowerment and culture because
-employee's jobs have changed -management has changed -employment realtion shop has changed
how to learn and lead the way:
-explore current reality -discover a deeper understanding of current reality -act by testing solutions
managers and employees often lack information bc
-information overload -lack of openness -filtering
key driving forces for innovation
-need or demand for tech -meeting the need must be possible and people must know how to do it -must be able to convert relevant sci knowldge into practice in engineering and econ terms -necesscary funding, labor, time, space, and other resources -entreprenuraial iniative
market controls use economic forces to regulate performance
-price indicates the value of the good or the service -price competition controls productivity and performance
leading change:
-requires a guiding coaliion, -change leaders develop a vision -communicating the change vision -empowering broad based action
tactical behavior is a downside to bureaucratic control
-try to beat the system -reporting false preformance data -people can produce invalid info amount about what has been done and what can be done -falsify predictions about future
richness in mediums list
1 face to face 2 phone 3 electronic mail, written
three stages of budgetary control
1. Establish expectancies-starts with the broad plan for the company and a sales estimate, and ends with the budget approval and publication 2. Perform budgetarty operations- deals with identifying what is being accomplished and comparing results with expectations 3. Take action- respond appropriately
current ratio
current assets to current liab, ratio indicates the extent to which current assets can decline and still be adaquate to pay current liab
For an airline company, frequent reliable departures are a measurable objective for which perspective on balanced scorecard
customer
six sigma
designed to reduce defects in all organizational processes, not just product defects, but anything that may result in customer dissatisfaction, inadequate service, delayed delivery, and high prices due to costs or ineffeciency -the higher the sigma number, the lower the amount of defects
control systems-v
detect and correct signifigant variations or discrepencies in the results of plans and activities.
internal development
developing a new tech within a company can be proprietary and offer competitive advantage, but is expensive
technical innovator
develops new technology and has the skills needed to operate and build tech
coaching
dialogue with a goal of helping someone become more effective and achieve his or her full potential on the job
upward communication-v-
information that flows from lower to higher levels in the org's hierarchy -managers learn what is going on -employees get opportunity to communicate upward -effective upward comm facilitates downward comm
OD interventions: human process
inproving conflict resoulution, team building, and communication
2. moving-v-
institiuting the change
web 3.0
integrate an blend relationship between machiene and human
noise
interference in the communication system
Replacing Starbucks' baristas with automated coffee-making machines would fall under what perspective of balanced scorecard?
internal business processes
product champion
often at risk of his or her position and reputation, promotes the idea throughout the org, searching for support and acceptance
motivate people to change: peer pressure
often work teams resist changes coming from above, espically ifthey are cohesive and have anti mgmt norms
low cost leadership
operates at lower cost than competitors
specialist control-
operators of computer numerical control, CNC machienes must notify enginering specialists of malfunctions. specialist takes corrective action
boundaryless organization-v-
organization in which there are no barriers to information flow -info is available as needed, move quickly and easily -turns walls into membranes of info.
motivate people to change: timing
people often resist a change bc of poor timing
licensing
permits firms to access unique tech for a fee, more economical than deveopment, firm does not own or control the unique tech, it depends on another firm
production budget-v-
physical units, like types and compacities of machienes, quantity to produce and mateirals
open book managment
practice of sharing with employees at all levels of the org vital information previously meant for managments eyes only
transfer price-
price charged by one unit for a good or service provided to another org unit
market controls let supply and demand determine ______ and ___
prices and profits
prospector firms-v-
proactive technology, push innovators, have cultures that are outward looking and opportunistic
accounting audits-v-
procedures used to verify accounting reports and statements
Early on in its history, Southwest Airlines did not assign a seat number. Instead they issued a letter that placed passengers in a boarding queue. Southwest Airlines' method of not assigning passengers a specific seat number would be considered a _____________ innovation.
process
reflection-v-
process by which a person states what he or she believes the other is saying
New Zealand Air offers a family couch seating arrangement. A family couch is a row of three economy class seats that can be adjusted to form a flat flexible space. New Zealand Air's family couch is a ____________ innovation.
product
key technologies
proved effective, but offer strategic advantage bc not everone uses them
force the change
punishment or threat to change
"Boss, we will need to integrate a timer as a new technology into our control system. However, as you know, we don't manufacture timers. If you agree, I will arrange to ______________; that will be the simplest, easiest, and most cost-effective way to acquire this new technology," said Stan Brown, engineering manager.
purchase it
roi/return on investment
ratio of profit to capital used, or rate of return from capital
1. unfreezing
realizing that current practices are inappropriate and new behavior is necessary People must understand the rationale for changing
business model innovation
refers to a change in the way the organization uses existing technologies to deliver its current products in a more productive and profitable manner
Assume the change at one of Bergman's locations works out well, and Harry begins to convert many or all of the company's locations to being automated. What stage of the Three-Stage Change Model would he be exhibiting?
refreezing
"We take pride in our progressive organization," said Ralph Reyes, owner of Sierra Products. "Because our employees are empowered, and because we manage in an empowered world, I am going to implement a change in our incentive system to
reinforce responsiveness and teamwork
research partnerships and joint ventures
research partnership jointly develops a particular new technology. Typically each member contributes a unique set of resources. Joint ventures similar, except the companies aim to establish entirely new companies, but coordination costs can be hi
reactive change-v-
responding to pressure after a problem has arisen
the adaptation of tech has a ___ shaped curve
s
tech in the long run should:
satsify market needs
a product champion
secures sponsorship for new ideas, or an innovative within organization
enviromental scanning-v-
seeks new technologies by reading cutting edge research journals and attending conferences and seminars
downward communicaiton
information that flows from higher levels to lower levels in the orgs hierarchy. (like the game telephone, message loses effectiveness with each layer it is passed down to)
Control systems include these steps: step 1
setting performance standards, which is the level of expected performance for a given goal
purchase technology
simple to implement and cost effective but does not provide competitive advantage
technology trading
some companies are willing to share tech, speeds learning curve and eliminates trial and error, but some info is not directly applicable
motivate people to change: management tactics
sometimes a change that succeeds elsewhere is undertaken in a new location, and problems may arise during the transfer
skunkworkers
special creative units set free from the normal structure for the purpose of innovation
executive champion-v-
status and authority, and financial resources to support and protect product champion
emerging technologies-v-
still under development but signifigantly can alter the rules of competition in the future
3. refreezing-v-
strengthing behaviors that SUPPORT THE CHANGE =Permanently installs behaviors that maintain essential core values like a focus on important business results and values maintained by companies built to last =Locking key values, capabilities, and strategic mission and don't lock in any specific mgmt practice
sustainable advantage
sustaining the lead depends on competitors ability to duplicate the tech and the firm's ability to keep improving quickly enough to outpace competitors, the first mover
technology-v-
systematic application of scientifc knowledge to a new product, process, or service
Control systems include these steps: step 4
taking action to correct problems and reinforce successes: take appropriate action when there are signifigant deviations
written communication-v
texts and email and written documents, they can be revised before they are sent. They keep a permanent record. Message stays the same if relayed. Sender has no control over when it is read and lacks immediate feedback and person may not understand part of the message
stockholders equity-v-
the amount accruing to the corporation owners
liabilities-v-
the amounts that a corporation owes to various creditors
feedforward control-v-
the contorl process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly -Prevent problems before they arise -Formal rules and procedures prescribe peoples actions before they occur -Sometimes emp will be involved in error proofing- workshops that teach them how to identify and correct errors -Controls aimed at preventing such problems include training in appropriate behavior, like how to deal with harassment and enforcing workplace policies
concurrent control-v-
the control process used while plans are bieng carried out, including directing, monitoring, fine tuning activities as they are preformed -like information tech provides powerful concurrent controls, giving managers immediate access to data from the remotest corners of their companies
media richness-v
the degree to which a communication channel conveys information
performance gap-v-
the difference between actual performance and desired performance
motivate people to change: intertia
the old way of doing things is comfy and easy, people dont want something new
reciever
the person for whom the message is intended, they decode the message and attempt to interpret the meaning (may provide feedback)
technology audit-v-
the process of clarifying the key technologies on which the org depends
budgeting-v-
the process of investigating what is bieng done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences (budgetary controlling)
perception-v-
the process of recieving and interpreting information
filtering-v-
the process of withholding, ignoring, or distorting information
organizational development-v-
the systemwide application of behavioural science knowledge to develop, improve, and reinforce the strategies, structures, processes that lead to organizational effectiveness
communication-v-
the transmission of information and meaning from one party to another through the use of shared symbols
strat for control-bureaucratic control
the use of rules, regulations, and authority to guide performance
assets-v-
the values of the various item the corporation owns
A disadvantage of oral communication is that
there is no permeant record of a message
when the words on the slide are too small to be read from the back of the room during a presentation, an error in the _____ stage of comm process has occurred
transmission
At the beginning of the video, Priya ends her presentation by asking her colleagues to imagine "a world where you never have to wait in line for your groceries again!" What stage of the Three-Stage Change Model is Priya exhibiting?
unfreezing
differentiation leadership
unique good or service for customers that sets them apart and customers are willing to pay
cost budget
used for areas or org that incur expense, but no revenues, like support staf
capital budget
used for the cost of fixed assets, like plants and equip bc of their longterm nature
vanity
using measures that make managers and the org look good
offer incentives
when necesscary, mgmt can offer concrete incentives for cooperating with the change
A logical extension of the sociotechnical philosophy of work design is
workforce empowerment
E-mails, memos, letters, reports, and computer files are examples of
written communication
managing in empowered world
1. Put control where operation is 2. Use real time rather than after the fact controls 3. Rebuild assumptions underlying mgmt;s control to build on trust rather than distrust- empowerment, not just obedience 4. Move to control based on peer norms- guidelines of peer influence 5. Rebuild incentive systems to reinforce responsiveness and teamwork- add value to customer and team performance
grapevine-v-
informal communication network
management audits
an evaluation of the effectiveness and efficiency of various systems within an organization
profit and loss statement
an itemized financial statement of the income and expenses of a company's operations
proactive change-v-
anticipating and preparing for an uncertian future
innovation-v-
any new way of working that creates value
control-v-
any process that directs the activities of individuals towards the achievement of company goals
Sociotechnical Systems Theory
approach redesigns tasks in a way that jointly optimizes the social and technical efficiencies of work
OD interventions:Human resource management
attracting good people, setting goals, appraising and rewarding performance
balanced scorecard-v-
control system combining four sets of performance measures, financial, customer satisfaction, business processes, learning and growth
horizontal communication-v-
information shared among people on the same hierarchal level
technology life cycle
1. early progress can be slow as competitors continually experiment with product design. Product innovation is the highest. 2. Once early problems are resolved and more dominant design emerges, improvements come more form process innovations to refine the tech. Process efficiencies and lower cost 3. Upper limits of performance capabilities, development slows as market becomes saturated.
control systems include these steps
1. setting performance standards 2. measuring performance standards 3. comparing performance against the standards and determining deviations 4. taking action to correct problems and reinforce success
innovation will spread quickly if
=Great advantage over predecessor =Compatible with existing systems =Less complex =Tested easily =Observed easily
certain mgmt practices make orgs great
=Strategy that is focused on customers, continually fine tuned based on marketplace changes, clearly communicated to employees =Execution by good people, given decision making authority =Culture- that motivates and empowers people to innovate, rewards people appropriately, and has strong values =Structure-v- makes the org easy to work in and easy to work with, characterized by cooperation and the exchange of info throughout the org.
base tech decisions on relevant criteria, like
=anticipated market reciptiveness =tech feasability =economic viability =anticipated capability development =org suitability
Advantages of electronic media at work
Allows information to be shared rapidly with large numbers of stakeholders Enables routine messages to be delivered with speed and efficiency Reduces time and expenses related to travelling, photocopying, and mailing Encourages more people to participate and share ideas Leaves a permanent record of communication
Control systems include these steps: step 3
Comparing performance with the Standard: manager evaluates the performance, small deviations standard in some aspects and huge in other companies =
managers must lead a change based upon an established sense of urgency
Examine realities and pressures in the marketplace and identify threats and opportunities Manager can talk candidly about org weaknesses relative to competitors making a point to back up statements with data
innovators
First adopters of new products
managing informal communication
If you hear a story, talk to the key people involved and get facts To prevent rumors from starting, you can explain events that are important but have not been explained, dispel uncertianties by providing facts, and establish open communication and trust over time You should neutralize rumors once they have started.
total organizational change
Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.
signs a company lacks controls:
Lax top managment-v- senior managers do not emphasize need for controls Absence of expectations and policies Lack of agreed upon standards- org members not sure about what needs to be achieved Shoot the messenger management- employees that feel at risk if they reported bad news Lack of periodic reviews- managers do not assess performance on a timely basis Bad information systems- key data not measured in a timely, regular way Lack of ethics in the culture- org members have not internalized a commitment to integrity
Tech Feasibility
Managers need to consider whether technological innovations are feasible. Sometimes restricted by combined forces of physics and economics
Anticipated Market Receptiveness
Many innovations are stimulated by demand for new goods and services In the short run it should be immediate and valuable In the long run it must satisfy market need or needs
disadvantages of electronic media at work
May not be effective for solving some types of complex problems Prevents interpretation of subtle nonverbal cues conveyed by the sender Engenders less trust among users than face to face comm Messages can hurt feelings be insensitive, or be intentionally hurtful Sensitive or private information can be leaked or sent to the wrong recipient For social media -Avoid content that could embarass -Present opinons in a professional manner -Clarify whose opinion is being expressed
strat for control-clan control
control based on the norms, values, shared goals, and trust among group members, based on common values and goals and interpersonal processes
process innovation-v-
a change in the way outputs are produced (more efficient way of doing something
triple bottom line-v-
a company's financial performance, enviromnental impact, and impact on people in a company
agile design-v-
a flexible and interactive deveoment process characterized by collaboration with customers, fast deployment, continuous improvement, and collaborative communication
development project-v
a focused organizational effort to create a new product or process via technological advances
debt to equity ratio
a leverage ratio that indicates the company's ability to meet its long term financial obligations (if ratio is less than 1.5 it is not considered excessive)
principle of exception: comparing performance with the standard
a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard.
activity based costing-v-
a method of cost accounting designed to identify streams of activity and then allocate costs across a particular business proceses according to time employees devote to particular activities
virtual office
a mobile office in which people can work anywhere as long as they have the tools to communicate with customers and colleagues
internal audit-v-
a periodic assessment of a company's own planning, organizing, leading, and controlling processes -list desired qualifications and rank them -list undesireable qualifications -inside the company
disruptive innovation-v-
a process by which a product, service or business model takes root initally in simple applications at the bottom of the market and then moves up market, displacing competitors
two way communication-v
a process in which information flows in 2 directions, reciever provides feedback and the sender is receptive to the feedback
one way communication
a process in which information flows only in one direction, from the sender to the reciever, with no feedback loop
balance sheet-v
a report that shoes the financial picture of a company at a given time and itemizes assets, liabilities, and stockholder's equity
web 2.0
a set of internet based applications that encourage user provided content and collaboration
strat for control-market control
control based on the use of pricing mechanisms and economic information to regulate activities within organizations
_____ starts with the assumption that organizations are collections of people performing many different but related activities to satisfy customer needs.
activity based costing
contracted development
allows a firm without internal development capabilities to aquire the technology by contracting it out to other companies, higher costs on monitoring the contractor
force field analysis-v- (moving)
an approach to implementing lewin's unfreeze freeze model that involves identifying the forces that prevent people from changing and those that will drive people towards change
external audit-v
an evaluation conducted by one organization, like CPA firm or another -outside the org
Anticipated Capability Development
Research and dev lead to tech innovations Managers must have the internal capability to execute their technology strategies
bureaucratic control has downsides
Rigid Bureaucratic behavior ==People want to look good on control systems measures, so they only do what is required of them Therefore, innovation slows down. You want to be efficient and creative ==Rigid B behavior occurs when control systems prompt employees to stay out of trouble by sticking strictly to every single outdated rule. Leads to poor customer service. ==Bu control has a - conotaton
world class
being world class requires applying the best and latest knowledge to operate at the highest standards.
_______ control is the use of rules, regulations, and authority to guide performance.
bureaucratic
The _____ budget is used for the cost of fixed assets like plants and equipment.
capital
product innovation-v-
change in the outputs that the organization produces
adapters-v-
comanies that take the current industry structure and its evolution as givens and choose where to compete
base technologies
commonplace in the industry, everyone must have them
defender firms-v-
companies adopt a more circumspective posture towards innovation, tend to operate in stable enviroments
shapers-v-
companies that try to change the structure of industries by creating a future compeititve landscape of their own design
The purpose of using a balanced scorecard is for
companies to make sure their business activities align with strategy
benchmarking-v-
compares the org's practices and technologies with those of other companies
Strategy maps utilize the ______________ viewpoint of management theories.
contingency
_____ detect and correct significant variations, or discrepancies, in the results of plans and activities.
control systems
cash budget-v
do this after everything else is completed, shows recipts and expenditures
"We must improve our ____________ communication," said Massie Jones, department manager. "By the time the CEO's message gets to my workers, the message has been terribly garbled."
downward
educate and communicate
educate people about the nature of the change and the logic
the ____ of the communication channel depends on the situation
effectiveness
motivate people to change: different assessments
employees receive different and less info than mgmt receives
OD interventions: technostructural
enhancing organizational structure and design, employee involvement and work design
learning orgs
excel at solving problems, seeking and finding new approaches, and sharing new knowledge.
learning leader
exchange knowledge freely, commit to their own continuous learning and well as to others and recognize that orgs are human systems.
standard-v-
expected performance for a given goal, a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed
innovation either:
exploits existing capabilities or explores new knowledge
oral communication-v-
face to face discussion, telephone conversations, formal presentations, speeches. Immediate and direct. Can read sincerity and oral is more persuasive. Can lead to spontaneous, ill considered statements.
inanity-
failing to consider the ways that standards will effect real world human behavior and company performance
The human tendency to _____ underlies much of the ineffective communication and demonstrates the need for more effective managerial communication practices.
filter
"Yikes! In my meeting with my boss, I can't tell her exactly what just happened! I will have to withhold some of the facts and skew the results a bit," thought Peggy. Peggy is planning to use ____________ when meeting with her manager.
filtering
acquisition of a tech owner
firm gains control and ownership, but purchase can be expensive.
using financial ratios can be limited in scope and lead to mgmt myopia which is:
focusing on shrot term earnings and profits at the expense of longer term strategic obligations
sales budget
forecasts of sales for month, sales area, or product
pacing technologies
have yet to prove their full value, but have the potential to alter rules of competition
OD interventions: strategic
help orgs conduct mergers and acquisitions, change strategies, and develop alliances
analyzer firms-v-
hybrid orgs that need to stay tech competitive but will let others demonstrate solid demand before responding, a early follower strategy
motivate people to change: surprise
if change is sudden, resistance may be inital reaction
tech in the short run should be:
immediate and valuable
innovation and learning perspective of the balanced scorecard focuses on
improvement of knowledge sharing mechanisms
master budget-v-
includes all major activities of business, coordinates all activities of other budgets
liquidity ratio
indicate a company's ability to pay short term debts
profitability ratio
indicates mgmt's ability to generate a financial return on sales or investment
"I am implementing a boundaryless organization—an organization without significant barriers to information flow," said Jill Smart, Chief Information Officer. "This free flow does not imply a random free-for-all of unlimited communication and information overload. Rather, it means
info will be available as needed
___________ is about creating a new product while __________________ is the transformation of an idea into something useful.
invention, innovation
Organization development (OD)
involves an actual process of changing for the better and for the long term
laggards
isolated and conservative
Larry McLeod, Chief Financial Officer, told the CEO, "Paydown of our two largest debts this past year really helps our financial picture. Our investors will appreciate that we no longer have these ___________ on our balance sheet."
liabilities
assets=
liabilities + stockholders equity
provincialism
limiting measures to functional/departmental responsbilities rather than the org's overall objectives
An ineffective way to manage the grapevine within organizations is to
make false denials about gossips
provide support and resources
make the change as easy as possible, facilitation will involve prvoding training and other resources
frivolity
making excuses for poor perfromance rather than taking performance standards seriously
use covert tactics when needed
managers need subtle, covert tactics to implement change
innovators dilemma-v-
many good managers miss transformative shifts bc they are focused on making incremental improvements to their core profitable businesses
pettiness
measuring just one component of what affects business performance
Control systems include these steps: step 2
measuring performance: -written reports-v- include computer printouts and on screen reports. -oral reports-v-allow 2 way communication. like when a sales person contacts supervisor each evening to go over the day -personal observation-v- involves going into the area and watching what occurs
narcissism-
measuring the employee's, managers, or company's viewpoint rather than listening to the customers
late majority-v
members of this group more skeptical of tech change and approach with caution
Early majority-v-
more deliberate, take longer to decide, and are important members of community. Once they adopt, it is in the main stream
informal communication
more unofficial, like gossip
motivate people to change: self-interest
most people will resist a change if they think it will cause them to lose something of value
provide adaquate information by feedback becasue it:
motivates people and provides information that enables them to correct their own deviations from performance standards
Harry grants permission for Priya to start automated sales at one of Bergman's locations. What stage of the Three-Stage Change Model is Harry exhibiting?
moving
operator control-v-
multiskilled operators can rectify their own problems as they occur.
early adoptors
nect group, crucial and well respected opinion leaders. Those to whom others look towards for suggestions
laziness
neglecting to expend the effort to identify what is important to measure
Phone interruptions, thoughts about other things, and fatigue and stress may block perfect understanding between the communicating parties. These are examples of _____ in the communication process.
noise
_____ cues often make a greater impact than other signals; hence managers must remember that their actions often speak louder than their words.
nonverbal
formal communication
official, managmenet sanctioned episodes of information transmission. They can move upward, downward, or horizontally and are often necesscary for preforming a task
